BUS&201 Business Law Test 2 (Sample)

A contract to sell three typewriters with a combined value of $400 must be written to be enforceable?

False

A limited warranty gives the consumer the right to free repair or replacement of a defective product?

False

A says to B, "If you bring in my paper when I am on vacation, I will pay you $5.: B says nothing, but brings in the paper. There is no contract because there was no offer and acceptance.

False

All contract must be writing?

False

BONUS QUESTION: A contract hiring a painter to paint your house for $1500 must be in writing.

False

BONUS QUESTION: Article 2 of the Uniform Commercial Code governs all contract transactions?

False

BONUS QUESTION: Statutes of Limitations limit the amount of damages recoverable in tort cases?

False

BONUS QUESTION: Under the UCC, the presence of additional or different terms in an acceptance automatically bars contract formation?

False

If Abbie decides to have a garage sale and sells an old toy which ultimately injures her neighbor from a defect in the design, Abbie may be held strictly liable?

False

PENZOIL (PENNZOIL) v TEXACO is a famous case involving the tort of;

Interference with contractual relations.

BONUS QUESTION: The 1985 directive adopted by the European Union is quite similar to the strict liability doctrine prevalent in the United States?

True

BONUS QUESTION: The U.S. tort system costs five times as much to operate and fund as systems in other similar developed countries?

True

BONUS QUESTION: Washington State has adopted a pure comparative negligence system?

True

Bilateral contracts are promises for promises?

True

Disparagement is defamation of business interest or product?

True

Intrusion, public disclosure of private facts, and appropriation are all forms of the invasion of privacy tort?

True

The Statute of Frauds requires that contracts that cannot be fully performed with one year must be in writing?

True

The giving of an engagement ring is a conditional gift?

True

The law does not impose a general duty to rescue another person?

True

The traditional concept of "meeting of the minds" requires that what the offeree accepts must be a mirror image of what the offeror offers?

True

Throwing something, such as trash, on your neighbor's land is a form of trespass even though you were never physically present on the land?

True

An implied warranty of merchantability automatically applies to every sale of goods by a merchant?

True

BONUS QUESTION: A federal Product Liability Law is pending in Congress?

True

BONUS QUESTION: A statement, description, or sample of goods may constitute an express warranty that the goods will have certain qualities?

True

BONUS QUESTION: Laws are just starting to be written to cover electronic commerce on the Internet?

True

Referring to the facts above, assume Steve was more negligent than Bill. In a pure comparative negligence state:

A: Bill may collect from Steve a portion of his damages. B: Steve may collect from Bill a portion of his damages. C: Neither Bill nor Steve may recover damages. D: Both (A) and (B) are correct. Answer: D

In the above case, what must Sally prove to win her case?

A: Her hair falling out was caused by a defect in the mayonnaise. B: The defect existed at the time it left the defendant's hands, and there were no substantial changes afterwards. C: Sally's hair did indeed fall out. D: All of the above Answer: D

Offers and acceptances must be;

A: In Writing B: Verbal C: Implied by Actions D: None of the above Answer: D

Which of the following are necessary to form a valid contract?

A: Offer and acceptance B: Consideration C: Competent Parties D: All of the above Answer: D

Which of the following contracts need not be in writing?

An agreement to sell a $5 pen.

Acceptance may be made by:

Any reasonable means in light of the specifications of the offer.

Referring to the facts above (previous question), assume Steve was more negligent than Bill. In an ordinary comparative negligence state;

Bill may collect from Steve a portion of his damages

Sally bought a jar of mayonnaise from Grocer. Grocer had bought the jar from Manufacturer. When Sally ate the mayonnaise, it contained a contaminant that caused her hair to fall out. Sally may sue;

Both Manufacturer and Grocer under strict liability.

Which state court was the first to adopt a strict products liability?

California

A tort is a(n)_________resulting in injury to a person of his property.

Civil wrong.

Liquidated damages are;

Damages that are agreed upon by the parties in anticipation of a breach.

"I'll buy all that I require" is a example of an illusory promise under the UCC?

False

Insulting, embarrassing, profane, or abusive language is usually sufficient to prove intentional infliction of emotional distress?

False

Oral contracts involving loans of money in excess of $1 million dollars must be in writing?

False

In HADLEY v. BAXENDALE, the court found that damages incurred as a result of delayed shipment of a broken mill crankshaft were;

Limited to foreseeable consequences.

Intentional torts require the plaintiff to prove all but which of the following elements?

Malice.

A defense to the liability of a manufacturer or seller of a defective product prior to World Ware II was?

Privity of contract.

Mary says, "I'll sell you my bird for $100. Acceptance must be by regular mail." Mike, who has always loved Mary's bird, immediately notes "I accept" on a piece of paper and mails it in a box where the mail will be picked up in approximately four hours. One hour later, while strolling in the mall, Mike sees an identical bird for $50 and buys it. Within the hour, Mike phones Mary and says, " I reject your offer."

Mike accepted the offer before he rejected it, and therefore is liable to Mary for the $100.

Bill was injured when his car collided with Steve's car. Bill was traveling 15 mph over the speed llimit. Steve ran a red light. In a contributory negligence state;

Neither Bill nor Steve would be able to collect for the damages he sustained.

Sally hates her sister Sue. One day she gets so made at Sue that she says, " If you weren't my sister, I'd punch you!" Sally is liable for:

Not liable for any tort.

Unconscionable contracts are those that are:

One sided contracts that are fundamentally unfair or oppressive.

Richard went to the public pool on a hot sunny day in June. The lifeguard was on duty and the pool was very crowded. Richard noticed a little boy who jumped into the deep end and could not swim.

Only the lifeguard has a duty to rescue the little boy.

Tom offered to sell his house in the newspaper. John came to see the house and wanted to buy it, but wanted his wife to see it. John paid Tom $20 to hold the offer open for 48 hours, enough time for John's wife to see the house. Tom and John have a (n);

Option contract.

Another name for oral defamation is:

Slander

Which classification of a tort does not involve fault?

Strict Liability

Susan sells motor oils. Ashley comes into Susan's store with a brand new chainsaw. Ashley indicated that she knows nothing about motor oils and needs the type appropriate for the saw. Susan recommends a particular type of oil.

Susan has created an implied warranty for a particular purpose.

In the above situation (Sally), what can Manufacturer prove to escape liability?

That Sally let the mayonnaise spoil.

Section 2-207 of the UCC calls a truce to the battle of forms by effectively abolishing ____________.

The mirror-image rule.

Annie and Sandy are merchants. Annie agreed to purchase 10 units of Sandy's product at $1.00 per unit. Sandy wrote the agreement on a piece of paper with preprinted information.

There has been an offer and acceptance, with the terms included in the contract, as long as they don't materially alter the original terms and Annie does not object to the term in a reasonable amount of time.

A product may be dangerous because of an inadequate warning label or instruction booklet?

True

A promise which does not meet the requirements for consideration may still be enforceable under the doctrine of promissory estoppel?

True

A tort case is (can be) brought to compensate the victim for a wrong done?

True

Under what theory is one person liable for the misconduct of another person?

Vicarious liability

In the above facts (previous question), assume that the person that fell in the hole was a neighbor child.

You are liable because it was foreseeable that a child may fall in the hole.

You are a property owner. You have a hole in your backyard that you are aware of. There are also children in your neighborhood. You post a sign in your front yard that says "beware of hole." An adult unknown to you walks across your yard, without permission, and falls in the hole.

You are not liable because the adult is a trespasser.