Blaw Final

Eminent Domain

Government takes private land for the use of public, condemnation

Shipment contract

In a shipment contract, the seller is required or authorized to ship goods by carrier, such as a trucking company. The seller is required only to deliver the goods into the hands of the carrier, and title passes to the buyer at the time and place of shipment

Stare decisis

Let the decision stand; decisions are based on precedents from previous cases

Abandoned property

Property that has been discarded by the true owner, who has no intention of reclaiming title to it, is abandoned property

Mislaid property

Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is mislaid property. A person who finds mislaid property does not obtain title to the goods. Instead, the owner of the place where the property was mislaid becomes the caretaker of the property, because it is highly likely that the true owner will return.

Lost property

Property that is involuntarily left is lost property. A finder of lost property can claim title to the property against the whole world—except the true owner

What does fiduciary mean?

A legal obligation of one party to act in the best interest of another party

T/F: An agreement that includes an option to purchase real property must be in writing for the option to be enforced.

True

T/F: Consequential damages are foreseeable damages that arise from a party's breach of a contract.

True

Negligence

someone suffers injury because of another's failure to live up to a required duty of care

Personal Jurisdiction

the power of a court to force a person to appear before it

Any collateral promise falls outside the Statute of Frauds and does not need to be in writing to be enforceable.

False

Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties.

False

T/F: A contractual obligation may not be discharged through novation.

False

T/F: An action in strict product liability requires that a product be in a defective condition caused by its purchaser.

False

T/F: An occurrence or event that makes performance temporarily impossible operates to discharge the parties' contractual duties.

False

T/F: Any breach discharges the non breaching party from the contract.

False

T/F: Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract.

False

T/F: If a minor can return only damaged goods, the minor cannot disaffirm the contract and obtain a full refund of the purchase price.

False

T/F: Rescission is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

False

T/F: The most common way to discharge one's contractual duties is by breach of contract.

False

T/F: Under the doctrine of comparative negligence, only the plaintiff's negligence is computed and the liability for damages is distributed accordingly.

False

The Convention on Contracts for the International Sale of Goods incorporates the UCC's Statute of Frauds provision.

False

The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract.

False

True or False: A jury's good sense and careful consideration of consequences is known as jurisprudence

False

True or False: U.S. district courts have concurrent jurisdiction with state courts in matters involving federal questions

False

True or false: In mediation, the mediator proposes a solution and makes a decision resolving the dispute

False

Dave and Ellen enter into a contract via e-mail. When a dispute arises over the performance of the deal, Dave files a suit against Ellen. The emerging body of law that governs transactions conducted via the Internet is referred to by the term a. cyberlaw .b. civil law. c. equitable maxims. d. IRAC.

A

Apples & Pears Orchards contracts to hire Brigit for one year to tend the fruit in its commercial orchards but reserves the right to cancel the employment on thirty days' notice at any time after Brigit begins work. This promise is a. enforceable. b. illusory. c. unliquidated .d. unforeseen.

A

Bob's Big Burgers n' Shakes Restaurant brings a suit, seeking a remedy at law. A remedy at law is a. monetary damages .b. a decree of specific performance. c. a judicial proceeding for the resolution of a dispute .d. an injunction.

A

Business Computer's repudiation of its contract to employ Chandra is most likelya. a material breach. b. a minor breach. c. a condition subsequent. d. not a breach.

A

Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is a gold mine. Byron can a. not rescind the contract. b. rescind the contract on the basis of fraud. c. rescind the contract on the basis of mistake. d. rescind the contract on the basis of undue influence.

A

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. a settlement agreement.

A

Drake enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Drake learns that Eve does not have access to any unique software and files a suit against her, alleging fraud. Proof of an injury is required to a. recover damages. b. rescind the contract. c. undo Eve's influence. d. punish the defendant.

A

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable a. only if it is in writing .b. only if the amount of the investment is more than $500. c. only if Glenn agrees to marry Flossy. d. under no circumstances.

A

Following negotiations, Office Park, Inc., enters into an informal contract with Quality Janitorial Company for custodial services for Office Park's buildings. This means that the parties' contract a. requires no special form .b. is freely open to either party's interpretation. c. is subject to change by either party, within reason. d. is not yet completely formed.

A

Garage Magic, Inc., contracts for the sale of a certain number of garage door openers to Home & Yard Hardware stores. Ian buys one of openers. The applicable statute of limitations prescribes a period of four years. To bring a product liability claim against Garage Magic, Ian must file a suit within four years of a. Ian's discovery of an injury caused by the opener .b. Garage Magic's sale of the opener to Home & Yard. c. Garage Magic's design of the opener. d. Home & Yard's sale of the opener to Ian.

A

Garden Tool Company makes chain saws. Hadrian is injured while using a Garden Tool saw and sues the company for product liability based on negligence. To win, Hadrian must show that a. Garden Tool did not use due care with respect to the trimmer. b. Garden Tool used puffery in its advertising. c. Hadrian was not experienced in the use of trimmers. d. Hadrian was in privity with Garden Tool.

A

Hayley is injured in an incident precipitated by Isolde. Hayley files a tort action against Isolde, seeking to recover for the damage suffered. Damages that are intended to compensate or reimburse a plaintiff for actual losses are a. compensatory damages .b. reimbursement damages. c. actual damages .d. punitive damages.

A

HoneyBee Foods, Inc., in Illinois, and Jelly Roll Pastries, in Kentucky consent to have their dispute resolved in arbitration according to the law of Illinois. This is a ground for a court to a. compel arbitration. b. review the merits of the dispute. c. review the sufficiency of the evidence. d. set aside any award.

A

Ileana orally agrees to pay Jaime to plant and harvest a quarter of Ileana's farm acreage for four corn-planting seasons. After Jaime prepares the land and plants the first crop, Ileana says that their deal is off. Jaime can most likely recover a. in quasi contract. b. in reformation .c. in restitution. d. on the parties' existing contract.

A

In the case of Retail Sales Corp. v. Trucking Delivery Co., the court may rule contrary to a precedent if the court decides that the precedent a. is incorrect or inapplicable. b. is not in line with the judge's personal values .c. would lead to unintended consequences. d. would not bring about the result the judge prefers.

A

Jonah tells Levi he will give him an Xbox if Levi does Jonah's chores for a month. Levi promises to do the chores. Jonah and Levi have formed a a. a bilateral contract. b. a formal contract. c. a unilateral contract. d. no contract.

A

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's estate a. is discharged from any contractual liability. b. must find a competent assistant to fulfill the contract. c. must pay damages. d. must refund any money paid to Lana on the contract.

A

Lydia, a minor, charges the cost of a smartphone at a Mobile Devices & Minutes store. Two nights later, Lydia loses the phone at Natural Foods restaurant. She disaffirms the phone's purchase. Lydia owes Mobile Devices the reasonable value of the phone a. if it is deemed a necessary .b. if it is deemed a luxury. c. if it is deemed unique. d. under no circumstances.

A

Lyn files a suit against Karl. Karl denies Lyn's charges and sets forth his own claim that Lyn breached their contract and owes Karl money for the breach. Karl's claim is a. counterclaim. b. motion for judgment on the pleadings. c. motion for summary judgment. d. motion to dismiss.

A

Maggie and Nate enter into a contract for the sale of a car, but Nate later refuses to deliver the car. Maggie asks a court to order Nate to perform as promised. Ordering a party to perform what was promised is a. specific performance .b. damages. c. rescission. d. beyond the court's authority

A

Mark is creating Nu2U.com, a Web site through which he will enter into contracts over the Internet. Important terms to include in his offers include a. provisions specifying the remedies if the contract is breached. b. a detailed history of his business. c. glowing reviews from former customers. d. his educational background.

A

Special warranty deed

A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time, generally using the language, "by, through, or under the grantor but not otherwise."

Nora enters into a contract with Oceanic Transport, Inc., to insure and ship a painting from France to the United States for a certain price. But Oceanic makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court woulda. allow the parties to rescind the contract. b. award damages to Nora for the mistake. c. award damages to Oceanic for the mistake. d. enforce the contract as is.

A

Orson files a suit against Portia. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who imposes a resolution on the parties. This is a. arbitration. b. mediation. c. negotiation .d. not a legitimate form of dispute resolution.

A

Ray buys a rural vineyard from Sergio, who claims that it would be a prime site for a housing subdivision. Ray later learns that the law does not permit the land to be used for housing. Ray may a. not rescind the contract. b. rescind the contract only if Ray did not know the law before the deal. c. rescind the contract only if Sergio knew about the law before the deal .d. rescind the contract only if the law is not common knowledge.

A

Rebecca hires Samson to perform at Becca's Bistro, but he breaches the agreement to accept a higher-paying job at Three Courses Dinner Theater. Rebecca files a suit against him. The court will most likely a. award damages to Rebecca. b. cancel Samson and Three Courses' contract. c. order Samson to perform the contract with Rebecca. d. reform Rebecca and Samson's contract.

A

Sara believes that she has a strong case against Tom for the breach of an employment contract. Despite this belief, Sara cannot file a suit against Tom after the expiration of the time allowed for the filing under a. a statute of limitations. b. the doctrine of laches. c. an equitable maxim. d. the remedy at law.

A

Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1. Signe may revoke the offer a. before Thomas accepts the offer. b. before March 1, whether or not Thomas has accepted the offer. c. only after Thomas accepts the offer. d. only after March 1.

A

The Bay City Planning Department, the Coastal County Zoning Commission, the Delaware Environmental Quality Agency, and the U.S. Bureau of Land Management issue regulations. These rules constitute a. administrative law. b. case law .c. stare decisis. d. statutory law.

A

The parties' belief about the adjacency of the property is a. a bilateral mistake. b. a fraudulent misrepresentation. c. a unilateral mistake. d. unconscionable.

A

While a minor, Uri misrepresents his age as twenty-one to purchase a motorbike from Van's Dirt Bikes & Scramblers. Ordinarily, Uri can a. disaffirm the contract but must return the motorbike. b. ratify the contract, keep the motorbike, and recover any payments that he made to Van's. c. reject the contract, keep the motorbike, and recover any payments that he made to Van's. d. none of the above.

A

With a bill of lading, Interstate Transport Company acknowledges possession of certain goods and contracts to deliver them. Interstate Transport is a. a bailee. b. a buyer in the ordinary course of business. c. a good faith purchaser for value. d. an F.O.B.

A

Bill of Sale

A document used to transfer ownership of personal property.

Interrogatories

A series of written questions for which written answers are prepared by a party to a lawsuit, usually with the assistance of the party's attorney, and then signed under oath.

Incontestability Clause

An incontestability clause provides that after a policy has been in force for a specified length of time—usually two or three years—the insurer cannot contest statements made in the application.

Corporate Security Company provides other firms with security services. Questions of what is ethical involve the extent to which Corporate Security has a. a legal duty beyond those duties mandated by ethics. b. an ethical duty beyond those duties mandated by law. c. any duty beyond those mandated by both ethics and the law. d. any duty when it is uncertain whether a legal duty exists.

B

Diverse Diversions, Inc., makes computer, video, and mobile device games. Ember buys a hard copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if a. Ember does not read it. b. Ember learns of it after contracting .c. Ember learns of it before contracting. d. None of the above.

B

Francie drives into Gage's Auto Service and asks Hong, a Gage's employee, to replace a tire on Francie's car. After Hong replaces the tire, but before Francie pays for it, any contract between Francie and Gage's is a. executed .b. executory .c. void. d. unenforceable.

B

A contract for a sale of land from Bayside Properties, Inc., to City Development Corporation contains an erroneous legal description. The most appropriate remedy for these parties is a. quasi-contractual recovery. b. reformation. c. rescission. d. specific performance.

B

An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Keely, a patron, is injured. Jack's has committed a. a violation of a dram shop act. b. negligence per se. c. res ipsa loquitur. d. a violation of a Good Samaritan statute.

B

Arnold loses his suit against Buffy in a Colorado state trial court. Arnold appeals to a state intermediate court of appeals and loses again. Arnold would appeal next to a. a U.S. district court. b. the Colorado Supreme Court. c. the United States Supreme Court. d. the U.S. Court of Appeals for the Ninth Circuit.

B

Gustaf and Hilltop Country Club disagree as to the exact amount Hilltop owes Gustaf for his landscaping work. They form a new agreement that, on fulfillment, will discharge the prior obligation. This is a. a covenant not to sue .b. an accord and satisfaction. c. a release. d. promissory estoppel.

B

Gustaf and Hilltop Country Club disagree as to the exact amount Hilltop owes Gustaf for his landscaping work. They form a new agreement that, on fulfillment, will discharge the prior obligation. This is a. a covenant not to sue. b. an accord and satisfaction. c. a release. d. promissory estoppel.

B

Intoxicated but still capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Downloads, Inc. This contract is a. unenforceable because Cricket was intoxicated. b. enforceable. c. unenforceable if Cricket disaffirms it. d. unenforceable if Downloads disaffirms it.

B

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents a. a breach of contract .b. a mitigation of damages. c. liquidated damages. d. a quasi contract.

B

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents a. a breach of contract. b. a mitigation of damages. c. liquidated damages. d. a quasi contract.

B

Jenna files a civil suit against Keshia. To succeed, Jenna must prove her case a. beyond a reasonable doubt. b. by a preponderance of the evidence. c. by indisputable proof. d. to the extent promised in her attorney's opening statement.

B

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony a. agree to sign a bill of sale. b. exchange the car for the $3,000. c. sign a receipt. d. shake hands and go their separate ways.

B

Karen is a judge hearing the case of Local Dispatch Co. v. National Transport Corp. Applying the relevant rule of law to the facts of the case requires Karen to find cases on point—previously decided cases that, in relation to the case under consideration, are a. as different as possible. b. as similar as possible. c. at odds. d. exactly identical.

B

Larue buys an iPod for $150 and a new laptop for $1,200, and signs a one-year employment contract for a $4,800 monthly salary to start at the beginning of the next month. The Statute of Frauds covers a. the employment contract, and the laptop and iPod purchases .b. the employment contract and the laptop purchase only. c. the employment contract only. d. the laptop and iPod purchases only.

B

Lewis wants to file a suit against Mikayla. Before any court can hear the case a. the parties to the dispute must agree. b. the court must have jurisdiction. c. the court must issue a deposition. d. the parties must own property.

B

Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Mikayla buys a Lipstik product and suffers an injury. Lipstik is most likely liable for a. product misuse. b. fraud. c. privity. d. puffery.

B

Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not decide to adopt. This is a. arbitration. b. mediation. c. negotiation. d. not a legitimate form of dispute resolution.

B

Lowell runs Medical Debt Collection Agency. He collects debts by misrepresenting the facts and pretending to be licensed to perform various occupations. Lowell's conduct most likely warrants a. an admonition for unethical behavior but no other sanctions. b. an injunction plus other sanctions. c. no sanctions but no praise. d. praise for the aggressive approach to collecting debts.

B

Lucy, a minor, disaffirms a contract for necessaries without returning the goods. To Manny's Food Mart, the seller, Lucy is required to pay a. nothing. b. the reasonable value of the goods. c. the sales price of the goods. d. the ultimate worth of the goods.

B

Meatpackers, Inc., enters into a contract with Nemiah's Ranch for the delivery of a certain number of beef cattle on a set schedule. Nemiah's delays the first delivery for five days, aware that Meatpackers loses a certain percentage of profit each day. An award to Meatpackers of consequential damages would a. establish, as a matter of principle, that Nemiah's acted wrongfully. b. provide Meatpackers with funds for a foreseeable loss beyond the contract. c. provide Meatpackers with funds for its loss of the bargain. d. punish Nemiah's and set an example to deter other suppliers from similar acts.

B

Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes for $4.50 per month. Nate accepts. If a dispute arises, a court would likely a. enforce the deal after questioning the adequacy of the consideration. b. not question the adequacy of the consideration. c. rewrite the deal after questioning the adequacy of the consideration. d. set aside the deal after questioning the adequacy of the consideration.

B

Service Employees International Union and Timberline Products, Inc., have their dispute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to a. none of the choices. b. review the merits of the dispute. c. review the sufficiency of the evidence. d. set aside the award.

D

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Overseas Bank through Newt's investment firm. Unknown to Mona, Newt realizes ongoing commissions from the investment. Most likely, Mona may a. not rescind the contract .b. rescind the contract on the basis of undue influence. c. rescind the contract on the basis of mistake. d. rescind the contract on the basis of unconscionability.

B

Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Price-Lo Mart files a suit to block the law's enforcement. The court would likely hold that this law violates a. no clause in the U.S. Constitution. b. the establishment clause. c. the free exercise clause. d. the supremacy clause

B

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by a. a mutual agreement to rescind. b. an accord and satisfaction .c. a novation. d. an alteration of the original contract.

B

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra, in whose state Omni is not licensed to sell insurance. As a member of the class of persons protected by the statute, Petra can a. do nothing with respect to the policy. b. enforce the policy or recover the amount of the premiums paid. c. only enforce the policy. d. only recover the amount of the premiums paid.

B

Polly agrees to buy Quinn's Cycle World store business on the express condition that Ridgeline Credit Union approves the financing. This approval is a. not a condition. b. a condition precedent. c. a concurrent condition. d. a condition subsequent.

B

Renew Turf, Inc., enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is a. meant to pay for additional liquid sealant in the event of damage .b. a reasonable estimate of the loss on a breach. c. designed to penalize the breaching party. d. intended to quickly provide cash to the non-breaching party.

B

Renew Turf, Inc., enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is a. meant to pay for additional liquid sealant in the event of damage. b. a reasonable estimate of the loss on a breach .c. designed to penalize the breaching party. d. intended to quickly provide cash to the non-breaching party.

B

Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell. Regarding this agreement, a court would likely a. enforce it. b. not enforce it. c. reform it to reflect the true market value of the property. d. order the parties to renegotiate the price.

B

The Iowa Supreme Court rules against Jennifer in a case against Kut-Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of a. appeal. b. certiorari .c. jurisdiction. d. summons.

B

To prepare for a trial between SmartPhones, Inc., and TechApps Company, TechApps' attorney places SmartPhones' chief executive officer (CEO) under oath. A court official makes a record of the attorney's questions and the CEO's answers. This is a. a cross-examination. b. a deposition. c. voir dire. d. an interrogatory.

B

Vijay enters into a contract to sell his laptop to Winnie. Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority. Winnie has a. expressly ratified the contract. b. impliedly ratified the contract. c. disaffirmed the contract. d. none of the choices

B

Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for a a. bilateral contract .b. unilateral contract. c. void contract. d. unenforceable contract.

B

Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery.Refer to Fact Pattern 19-B1. If Ambrose breaches the contract, Belle Vista's remedy would most likely be a. a certain ratio of the amount that Ambrose expected to invest in the project. b. a percentage of Ambrose's unrealized profit. c. the difference between the land's contract and market prices. d. specific performance.

C

Bean House Coffees and Java Distributors, Inc., have a long-standing business relationship that they would like to continue. For this reason, they may prefer to settle any dispute between them through mediation because a. the case will be heard by a mini-jury. b. the dispute will eventually go to trial. c. the process is not adversarial. d. the resolution of the dispute will be decided an expert.

C

Forest & Field Company makes and leases a backhoe to Gallagher. Due to a defect attributable to Forest & Field's negligence, Gallagher is injured in an accident in which his neighbor Helga is also hurt. In a product liability suit based on negligence, Forest & Field may be liable to a. Gallagher only. b. no one. c. Gallagher and Helga. d. Helga only.

C

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is a. a mutual agreement to rescind. b. an accord and satisfaction .c. a novation. d. a settlement agreement.

C

Henry promises not to open his Hank's Lunchbox Café before 10:00 A.M. if Isis, who owns Isis's Danish & Donuts next door, promises to close by 4:00 P.M. Henry's consideration is a. the destruction of a legal relationship. b. the creation of a legal relationship. c. a forbearance. d. an exchange of money.

C

Herb's Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb's competitors, which Idris delivers on August 1. Herb's offer, on the same date, to pay Idris is a. a concurrent condition. b. a novation. c. tender. d. mutual rescission.

C

In Fuel Injection Products & Service Corporation's suit against Gears & Cylinders, Inc., the jury returns a verdict in Fuel Injection's favor. Gears & Cylinders files a motion asking the judge to set aside the verdict and begin new proceedings. This is a motion for a. a judgment in accordance with the verdict. b. a judgment on the pleadings. c. a new trial. d. judgment n.o.v.

C

In Hazel's suit against Ingrid, the court issues a judgment in Ingrid's favor. If the case is appealed to an appropriate court of appeals, the appellate court will hear a. all of the evidence. b. most of the evidence .c. none of the evidence. d. select pieces of evidence.

C

Larry enters into a contract with Motivational Education Services to host a panel discussion at a sales conference. When the conference is postponed indefinitely, Larry asks a court to cancel the contract and return the parties to the positions that they held before its formation. This request involves a. specific performance .b. an injunction. c. rescission. d. an action that the court cannot order.

C

Luke is playing a video game on a defective disk that melts in his game player, starting a fire that injures his hands. Luke files a suit against Mystic Maze, Inc., the game's maker under the doctrine of strict liability. A significant application of this doctrine is in the area of a. cyber torts. b. intentional torts. c. product liability. d. unintentional torts.

C

Odina signs a covenant not to compete with her employer, Penultimate Sales Corporation. A court decides that the covenant is overly restrictive. Depending on the jurisdiction, the court will likely a. enforce it as written so as not to undercut the freedom of contract. b. enforce it but evaluate its effects over time. c. reform its terms to prevent any undue burden. d. refuse to enforce it unless Penultimate pays a fine to the court.

C

Oliver slips and falls on Port Harbor's Tour Boat and is injured. Oliver files a suit against Port Harbor for $500,000. If Oliver is 20 percent at fault and Port Harbor is 80 percent, under the "50 percent rule" comparative negligence principles, Oliver would recover a. $0 .b. $250,000. c. $400,000. d. $500,000.

C

On April 1, Construction Contractors, Inc., contracts to build a store for Discount Retail, Inc., at a specific location in Electro City. On April 10, Electro changes its zoning law to prohibit the construction of a commercial building at that location. Discount Retail files a suit against Construction Contractors. In this situation a. Construction Contractors is in breach of contract. b. Discount Retail is in breach of contract. c. the contract is discharged. d. the contract is suspended.

C

Qiana writes a check to Payday Loans, Inc., in an amount that represents half of her debt to the lender. On the back of the check, Qiana includes the words "payment in full." Payday agrees to accept the lesser sum and cashes the check. This discharges the entire debt a. if the debt is liquidated. b. if the debt is past due. c. if the debt is unliquidated. d. under no circumstances.

C

Quentin questions whether there is consideration for his contract with Rainey to exchange his performance with the Symphonic Saxophone Sextet for her payment of a certain amount. To constitute consideration, there must be a. a payment. b. a performance. c. a bargained-for exchange. d. serious thought underlying each party's intent to contract.

C

Street Bikes, Inc., makes and sells a bicycle to Theo. Street Bikes fails to exercise "due care" to make the bicycle safe, however, and Theo is injured as a result. Street Bikes is most likely liable for a. market-share liability. b. none of the choices .c. negligence. d. product misuse

C

Valley Paragliders Association files a suit against Wing Designers, Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if a. there is a large disparity in the amount of consideration exchanged .b. the consideration involves the performance of services. c. something of value passed between the parties. d. the consideration is worth less than $100.

C

Tenancy in common

Co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death.

In rem jurisdiction

Court jurisdiction over a defendant's property.

A decision by the federal Environmental Protection Agency (EPA) on the amount of carbon that can be emitted from a car's exhaust system conflicts with a California state law. In this situation, under the supremacy clause, a. both the decision and the law are invalid. b. both the decision and the law apply concurrently. c. California's law takes precedence. d. the EPA's decision takes precedence.

D

Becca is a minor. As a minor, Becca a. is not usually legally bound by a contract. b. has the right to avoid liability under a valid contract. c. has the capacity to enter into a valid contract. d. all of the above

D

Belle Vista breaches the contract, Ambrose's remedy would most likely be a. a certain ratio of the amount that Ambrose expected to invest in the project. b. a percentage of Belle Vista's unrealized profit. c. the difference between the land's contract and market prices. d. specific performance.

D

Bernadette enters into a contract to operate a Caramel Coffee franchise, which Caramel Coffee agrees to support as long as Bernadette maintains her business license. Caramel Coffee's duty to perform is a. not a condition. b. a condition precedent. c. a concurrent condition. d. a condition subsequent.

D

Casey offers to sell a certain used forklift to DIY Lumber Outlet, but Casey dies before DIY accepts. Most likely, Casey's death a. did not affect the offer. b. shortened the time of the offer but did not terminate it. c. extended the time of the offer. d. terminated the offer.

D

Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse. Dex completes the installation. The act of installing the pump a. imposes a moral obligation on Chicken & Egg to pay Dex. b. imposes no obligation on Chicken & Egg unless it is satisfied with the job. c. is not sufficient consideration because it is not goods or money. d. is the consideration that creates Chicken & Egg's obligation to pay Dex.

D

Dharma enters into a contract to manage the operations of Esther's dental office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be a. canceled. b. breached. c. altered. d. performed.

D

Dry Gulch Farms hires Elliot to repair its irrigation system on-site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot a. nothing. b. compensatory damages. c. consequential damages. d. nominal damages.

D

Duffy is a passenger in a car that Caleb is driving when an accident occurs. Both Caleb and Duffy are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dufy on a negligence theory because a. both parties were emotionally rattled. b. Caleb apparently did not intend to cause an accident. c. Duffy must have been comparatively negligent. d. Duffy was not injured.

D

First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics' representative being present. If this meeting substantially prejudices General Hydraulics' rights, a court will most likely a. compel arbitration .b. review the merits of the dispute. c. review the sufficiency of the evidence .d. set aside any award.

D

Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale Distributors. When Genovese runs into the types of difficulties that contractors ordinarily confront, Hawthorne agrees to pay extra compensation to overcome them. Regarding the agreement to pay more, a court would likely a. enforce it. b. rescind it. c. order the parties to renegotiate it. d. not enforce it.

D

Gilbert wants to initiate a suit against Healthways Insurance Company by filing a complaint. The complaint should include a. an explanation of the proof to be offered at trial. b. a statement refuting any defense that the defendant might assert. c. a motion for judgment on the pleadings. d. a statement alleging the facts showing the court has jurisdiction.

D

Island Breeze Company designs and makes desk, window, and ceiling fans. In a product liability suit based on negligence, Island Breeze could be liable for violating its duty of care with respect to all of the following except a. the design of the fans. b. the production process used to make the fans. c. the warnings on the labels of the fans. d. a consumer's unforeseeable misuse of a fan.

D

Lon says to Milli, "I would like to sell you my comic book collection." This is not an offer because it a. does not describe the subject matter specifically. b. does not include a price term. c. only expresses an opinion. d. only invites Milli to negotiate

D

Metro Facilities, Inc., contracts to sell a parking garage to Nouveau Property Company. The contract provides that if Metro does not close the deal by September 15, it must pay Nouveau one-half of the contract price. This provision is not enforceable because it is a. a liquidated damages clause. b. a waiver of breach clause. c. a limitation-of-liability clause. d. a penalty clause.

D

Nonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Piper and sends $1,500 as a down payment. When Nonny sends Piper the rest of the price, she refuses to ship the collection. Nonny should seek a. damages .b. quasi-contractual recovery. c. rescission. d. specific performance.

D

Nonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Piper and sends $1,500 as a down payment. When Nonny sends Piper the rest of the price, she refuses to ship the collection. Nonny should seek a. damages. b. quasi-contractual recovery. c. rescission. d. specific performance.

D

Precision Crafted Tools, Inc., makes tools for consumers and construction professionals. While using a Precision Crafted tool to replace an electrical fixture, Quinn neglects to shut off the power and is electrocuted. Quinn's heirs file a suit against Precision Crafted. In a contributory negligence jurisdiction, the plaintiffs could recover a. only if both parties were equally at fault .b. only if Quinn was less than 50 percent at fault. c. only if Precision Crafted was more than 51 percent at fault. d. nothing.

D

Readymade Credit Company loans Start-Up Enterprise, Inc., $150,000 to invest in new equipment. If Start-Up fails to pay the loan within a specified period, Readymade's recovery of the debt will be barred by a. the preexisting duty rule. b. the doctrine of promissory estoppel. c. a statute of limitations. d. none of the above.

D

Under the Statute of Frauds, all contracts must be in writing to be enforceable.

False

The Montana Supreme Court rules against Natural Grocery Mart in a case against One Stop 2 Shop Stores, Inc. Natural Grocery files an appeal with the United States Supreme Court. The Court does not hear the case. This a. is a decision on the merits that has value as a precedent. b. indicates agreement with the Montana court's decision. c. means nothing. d. means that the Montana court's decision is the law in Montana.

D

Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may a. monitor any arbitration until it concludes. b. order an arbitrator to rule in a particular way. c. order a party to bring the dispute to court. d. order a party to submit to arbitration.

D

A contract that can, by its own terms, be performed within one year from the day after the contract is formed must be in writing to be enforceable under the Statute of Frauds.

False

A contract that cannot, by its own terms, be performed within one year from the day after the contract is formed does not need to be in writing to be enforceable under the Statute of Frauds.

False

A contract that has been fully performed by the parties is called an executory contract

False

Bread & Bagels Bakery enters into a contract with Cineplex for discounted tickets for Bread & Bagels' employees. Cineplex breaches the contract and Bread & Bagels enters into a contract with DigiMovies for the same service at a lower price. Bread & Bagels might be awarded nominal damages to a. establish, as a matter of principle, that Cineplex acted wrongfully. b. provide Bread & Bagels with funds for a foreseeable loss beyond the contract. c. provide Bread & Bagels with funds for its loss of the bargain .d. punish Cineplex and set an example to deter others from similar acts.

S

Posy brings a lawsuit against Quisa over a sale of 350 acres of farmland. During the trial, Quisa's attorney asks questions of the plaintiff's witness Raina. This is a. a cross-examination. b. a deposition. c. a direct examination. d. an interrogatory.

S

T/F: When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.

T

Fiduciary duties

The duties of obedience, care, and loyalty owed by directors and officers to their corporation and its shareholders.

T/F: A product liability action based on negligence does not require privity of contract between the injured plaintiff and the defendant-manufacturer.

True

/F: A contract will be discharged if supervening circumstances make it impossible to attain the purpose both parties had in mind when they made the contract.

True

A court's review of an arbitrator's award may be restricted

True

A liquidated damages provision specifies that a certain amount is to be paid in the event of a future default or breach of contract.

True

A prenuptial agreement must be in writing to be enforceable under the Statute of Frauds.

True

A statute or court decision that makes an offer illegal automatically terminates the offer

True

Any written material, including information stored electronically, can be the object of a discovery request

True

Discovery is the process of obtaining information from an opposing party before trial

True

Liquidated damages provisions usually are enforceable.

True

Mandatory arbitration clauses in employment contracts are generally enforceable

True

Substantive due process limits what the government can do in its legislative and executive capacities

True

T/F: Every state has a statute that stipulates what types of contracts must be in writing.

True

T/F: Generally, a seller must warn those who purchase its product of the harm that can result from the foreseeable misuse of the product.

True

T/F: Judges use proximate cause to limit the scope of a defendant's liability to a subset of the total number of potential plaintiffs that might have been harmed by the defendant's negligence.

True

T/F: Manufacturers must use due care in inspecting and testing any purchased components used in a product.

True

T/F: Negligence per semay occur if an individual violates a statute or an ordinance providing for a criminal penalty and the violation causes another to be injured.

True

T/F: The United States Supreme Court can review any case decided by any of the federal courts of appeals.

True

T/F: The entrustment rule basically allows innocent buyers to obtain legitimate title to goods purchased from merchants even if the merchants do not have good title.

True

T/F: The law allows an innocent party to be discharged when the other party has materially altered a written contract without consent.

True

T/F: To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

True

The Statute of Frauds operates as a defense to the enforcement of an oral contract for the sale of land.

True

Warranty Deed

a deed that guarantees a clear title to the buyer of real property.

Profit

the right to go onto land owned by another and take away some part of the land itself or some product of the land

Bailee

acknowledges possession of goods and/or contracts to deliver them

Breach of duty

failure to meet the standard of care

Grant deed

grantor simply states, "I grant the property to you" or "I convey, or bargain and sell, the property to you."

What is real property

land and anything attached to it

What is a deed?

legal instrument that transfers ownership of real property

Caveat emptor

let the buyer beware

What is an administrator?

personal representative appointed by the court for a decedent who dies without a will. The court will also appoint a representative if the will does not name an executor or if the named person lacks the capacity to serve as an executor

What is an executor

personal representative named in a will

Easement

right of a person to make limited use of another persons real property without taking anything from the property. Ex: right to walk across someone else's yard

Penalties

specifies a certain amount to be paid in the event of a default or breach of contract. Unlike liquidated damages, it is designed to penalize the breaching party, not to make the innocent party whole.

Liquidated damages

specifies that a certain dollar amount is to be paid in the event of a future default or breach of contract. (Liquidated means determined, settled, or fixed.)

Deposition

sworn testimony by a party to the lawsuit or by any witness, recorded by an authorized court official

Bailment

temporary delivery of personal property, without passage of title, into the care of another, called a bailee

Destination shipment

the seller is required to deliver the goods to a particular destination, usually directly to the buyer, but sometimes to another party designated by the buyer. Title passes to the buyer when the goods are tendered at that destination. Tender of delivery occurs when the seller places or holds conforming goods at the buyer's disposal (with any necessary notice), enabling the buyer to take possession

Quitclaim deed

transfers only whatever interest the grantor has in the property and does not warrant that the grantor has any interest

Property deeds

useful legal tools that transfer the ownership of real property from one party to another