LAw 231 Final

What rules are included in an agent's duty of loyalty? Choose 2 answer choices.

An agent cannot share or use confidential information. An agent cannot secretly deal with the principal.

What is the difference between legal remedies and equitable remedies for breach of contract?

Legal remedies are monetary while equitable remedies are non-monetary.

Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices.

Lilly's silence is acceptance because of the parties' past dealings. Lilly's silence is acceptance because the offeree accepted the benefit offered.

You attend a university in a city that has four colleges. You buy your lunches at your university cafeteria. You think the prices at the cafeteria are high. You recently saw in the news that the food vendors at your university and the other three colleges in the area are being prosecuted by the Department of Justice for the antitrust violation of market division. You wonder what they allegedly did wrong. What is market division and is it a per se violation of the Sherman Act?

Market division means dividing up or allocating territories or customers among competitors. The outcome is that each competitor is freed from competition in its assigned area. It is a per se violation.

Which type of lack of capacity is easiest to prove?

Minor status

In which situation does an agent have the least exposure to liability?

Fully disclosed principal

The Sherman Antitrust Act has been modified by which of the following two Acts?

The Clayton Act The Robinson-Patman Act

Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices.

The contract is void if Samuel has been previously determined to be mentally incompetent. The contract is voidable if Samuel was incompetent at the time the contract was formed.

The Clayton Act prohibits which of the following anticompetitive behaviors (choose 3 answers)?

Tying arrangements Mergers Exclusive dealing contracts

Which of the following are examples of restraint of trade? Choose 2 answer choices.

Tying arrangements Price fixing

What type of acceptance requires an affirmative action for the offeree to accept that offer?

Unilateral contracts

A salesperson says to a customer, "The battery on this leaf blower will last for one hour of use." May the customer sue on an express warranty if the leaf blower dies after 30 minutes of use?

Yes, because an express warranty may be in writing or may be a statement verbally given to the buyer at the time of the sale.

You own a lawn care service. A new customer calls and asks that you mow and weed eat her lawn. You tell her the price will be $150 and she agrees. You show up while she is at work and get the lawn mowed and the weed eating done by the time she gets home. Unfortunately, when she gets home, you discover that you have serviced the lawn of your customer's next-door neighbor instead of hers! Do you think you have any chance of getting any money from the neighbor for the services you have provided?

Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work.

You are shopping for a new car. You find the perfect vehicle and are now applying for a loan from your local bank. Unfortunately, the bank rejects your application. You are surprised, because you have always paid your bills on time. You decide to examine your credit report. You discover that the credit agency is wrongly reporting that you are delinquent on a credit card bill. You have asked the agency to remove the inaccurate entry, but it has failed to do so. What liability does the credit agency face for its incorrect reporting?

Your actual damages, plus an additional amount not to exceed $1,000, plus attorney's fees.

What types of contracts violate public policy? Choose 3 answers.

a candidate for public office paying his competitor to retire conducting trade with a country that is an enemy to the United States employment contracts that forbid membership in a union

Which of the following qualifies as a "good" under Article 2 of the Uniform Commercial Code?

a commercial freezer unit

What is the term for when a merchant gives a written, signed assurance that he or she will not revoke an offer for a stated period of time?

a firm offer

In order for an individual to bring a claim for a private nuisance, they must show:

a harm separate and distinct from that of the public.

Horizontal restraints of trade are:

agreements between parties who are in competition at the same distribution level.

What are the elements of consideration? Choose 2 answer choices.

an exchange to which the parties agree something of value from each party

Which of the following is an equitable remedy for breach of contract?

an order for specific performance

How may an agency relationship be formed? Choose 3 answers.

by express oral agreement between agent and principal implied by the conduct of the principal by express written agreement between agent and principal

What is the most common way that duties under a contract are discharged?

by performance

In environmental law, the best available technology

constantly changes.

What is the term for the legal ability to enter into a binding contract?

contractual capacity

Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called:

duress

A contract for a purpose that causes the parties to violate a law is:

illegal and void.

If someone is found to be a potentially responsible party under CERCLA, they:

may be liable for the cost of cleanup of the site.

If a credit reporting agency fails to remove known errors in a consumer's credit report after request by the consumer, the agency:

may be required to pay damages to the consumer.

What factors may cause a person to lack contractual capacity? Choose 3 answers.

mental incompetence severe intoxication being under the age of majority (usually 18)

What are the fiduciary duties of an agent to her principal? Choose 3 answers.

obedience accounting loyalty

Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers.

promises made in consideration of marriage collateral promises to pay the debt of another person

The innocent landowner defense under CERCLA requires: (Choose 2 answers.)

reasonable inquiries into the history of the property. that at the time the property was acquired the landowner had no reason to know it had been used for hazardous waste disposal.

What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers.

reformation rescission

The Sherman Antitrust Act prohibits: (Choose 2 answer choices)

restraints of trade. monopolization.

The Clean Air Act regulates air pollution from: (Choose 2 answers.)

stationary sources mobile sources

When two products are the same, pricing discrimination with an anticompetitive effect is prohibited under the Robinson-Patman Act unless: (Choose 2 answer choices.)

the costs of serving the buyer are lower. the seller is meeting competition

RCRA protects the environment by regulating

the packing, labeling, and transport of hazardous waste.

What is the term for the doctrine under which a seller must deliver goods that conform exactly to the terms of the contract?

the perfect tender rule

When determining whether a remedy is a liquidated damage or a penalty, a court will review: (Choose 2 answers.)

whether at the time of contracting damages where difficult to estimate. whether the amount set was a reasonable and not excessive amount.

What factors influence the remedies available to a seller when the buyer breaches a contract? Choose 3 answers.

whether the buyer has rejected or accepted the goods whether or not the goods are in transit which party has possession of the goods

What remedies are available to a seller when the buyer breaches a contract before the goods are delivered to the buyer? Choose 3 answers.

The seller may cancel the contract. The seller may withhold delivery of the goods. The seller may resell the goods and sue to recover damages.

What is the difference between deceptive advertising and puffery? Choose 2 answer choices.

Reasonable people realize puffery is not meant to be taken literally, but they could be fooled by deceptive advertising. Deceptive advertising is prohibited; puffery is allowed.

Which act or statement is a valid offer?

A detailed advertisement

You worked this past summer at a furniture manufacturing plant. Among the products used in making chairs and couches are glues, paint thinners, varnishes, and stains. Residuals of these products were discharged by the company through a pipe into a nearby pond. The pond is a tributary of a lake popular with boaters and people who like to fish. Now that you are back at school, you read in the paper that the company has pled guilty to the crime of knowingly discharging industrial pollutants into the waters of the United States, a violation of the Clean Water Act. You wonder what consequences will result. What are the various penalties that can be imposed by the judge on the furniture company for its violation of the Clean Water Act? Include all that apply.

A fine of up to $2,500 for each day the Act was violated up to $1 million, an injunction mandating the company stop polluting, and a requirement that the company clean up the pollution it caused or pay for the cost of doing so.

The Palace Restaurant purchases goods from Pluto Restaurant Supply House on a regular basis. Pluto breaches the contract with Palace when Pluto runs out of the cooking equipment Palace agreed to purchase. What remedy is NOT available to Palace?

Reclaim the goods from Pluto's other customers

What is the difference between a material breach and an immaterial breach?

A material breach results in damages to the non-breaching party, while an immaterial breach is minor.

What does the ratification of an agency relationship include?

A party affirms the contract another person made with a third party.

Manuel contracts to sell a painting that was painted by his deceased grandmother, then has a change of heart and decides to hang it in his own bedroom. He notifies Nadine, the person who had planned to buy it. Can Nadine have the contract enforced?

Yes, it can be enforced under the equitable remedy of specific performance.

Puffery includes what kinds of activities?

Ads with exaggerated statements

What are the possible remedies for a contract formed under duress? Choose 3 answer choices.

Allow duress as a defense for breach of contract. Rescind the contract. Make the contract voidable.

Which mistake is likely to be voidable?

Bilateral mistake

How do agency relationships affect businesses and the business world? Choose 2 answer choices.

Businesses can grow by hiring employees. Workers can specialize and become experts.

Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices.

Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect.

How do parties determine which is the appropriate law for a mixed contract? Choose 2 answer choices.

Common law is appropriate for some mixed contracts. The predominant-factor test dictates the proper choice of law.

A sales representative sells products from two competing companies without disclosing to either company. Which agent duty owed to a principal applies to this situation?

Conflict of Interest

The Uniform Commercial Code applies to what types of contract?

Contracts for goods over $500

What legal limitations are imposed on parties to assignments and delegations? Choose 3 answers.

Contracts that are for a service that depends on a particular skill or talent may not be delegated. The assignee obtains only the rights that the assignor had under the contract. A contract cannot prevent an assignment of the right to receive funds.

What remedies can consumers get from a debt collection agency for illegal treatment? Choose 3 answer choices.

Court Costs Attorney's Fees Damages

Which of the following is a valid offer?

Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

A golf course using pesticides as part of their daily business must be compliant with:

FIFRA

Which consumer protection law specifically provides for punitive damages?

Fair Credit Reporting Act

What are TWO remedies a plaintiff may seek from the court when bringing a nuisance claim?

Financial compensation Injunction

Marathon Shoe Store Inc. gives notice to HighFlyer Shoe Co. that Marathon cannot pay for its current shoe order and would like to cancel. HighFlyer has not yet finished making the shoes. What options does HighFlyer have to address the breach of contract by Marathon? Choose 2 answer choices.

HighFlyer can complete manufacturing and sell the goods, and can sue for any difference between the contract price and the sales price. HighFlyer can cease manufacturing any unfinished goods and sell the goods for salvage value.

What are the two types of actual authority? Choose 2 answer choices.

Implied authority Express authority

What characteristics must an item possess to be classified as a "good"? Choose 2 answers.

It must be tangible. It must be moveable.

LaVon contracts with Nathan for Nathan to sing at her comedy club every Friday night in July. The first Friday, the crowd loved Nathan. The second Friday, they booed him. The next week, Nathan got a better offer, so he hired his twin brother Ethan to fill in for him at LaVon's club. Can LaVon compel Nathan to perform?

No, because you cannot compel performance of personal services under specific performance.

You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle?

No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated.

Which of the following behaviors is prohibited under the FDCPA? Choose 2 answer choices.

Notifying a consumer's neighbor that they are in debt Calling a consumer at 3 a.m.

What is the evaluation standard for a personal satisfaction contract? Choose 2 answer choices.

Objective, reasonable person standard Subjective personal taste

Which situation would be considered sufficient consideration for a contract to exist?

Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.

What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers.

Promises must be made with voluntary consent. Promises exchanged may not be a preexisting duty.

What is an exception to the statute of frauds?

Promissory Estoppel

How is substantial performance involved with the classification of material breaches versus immaterial breaches?

Substantial performance involves an immaterial breach.

In what situations does the UCC overrule common law?

The UCC applies to contracts that sell goods.

What is required to form an agency relationship?

The agent and principal must agree to enter the relationship.

What must a party show to win a substantial performance lawsuit? Choose 2 answer choices.

The breach was not intentional. He or she acted in good faith.

What remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract? Choose 3 answers.

The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy. The buyer may buy other goods and recover damages from the seller. The buyer may cancel the contract.

What is the result of a contract in which both parties are wrong about a material fact of the contract?

The contract is voidable.

What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices.

The contract is voidable. The parties can complete the contract.

What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule?

The contract must be objectively impossible to perform within one year.

You have a small business supply store. You order fifty boxes of paper from Hammerhill Paper Supply and tell them you need the paper delivered within four days, and Hammerhill agrees to provide the paper within four days. Neither you nor Hammerhill mentions the price of the paper, though. How do you think the price of the paper will be determined if you get into a legal dispute with Hammerhill about it?

The court will determine a reasonable price at the time of delivery.

What must a plaintiff prove to show duress in the formation of a contract? Choose 2 answer choices.

The defendant committed a wrongful or illegal act. The plaintiff was incapable of voluntarily agreeing to the contract.

Breeze Manufacturing agrees to purchase goods from Hawkins Inc. In what situation could Breeze reject a shipment of goods from Hawkins under the perfect tender rule?

The goods do not meet the specifications detailed in the contract.

What actions are valid exceptions to the perfect tender rule? Choose 3 answers.

The seller has the right to cure nonconforming goods within the contract time for performance. The seller may choose a different means of delivery if the agreed upon means becomes unavailable or impractical. The contract is unenforceable if the goods which had been identified to the contract are destroyed.

What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices.

The level of the performance of the contractual obligations Whether the court will discharge the contract

What key factor determines what remedies are available for a seller in a sales contract when there is a breach by the buyer?

The location of the goods involved in the breach

What elements are required for an offer to be effective under the common law? Choose 3 answers.

The offer must be communicated to the offeree. The terms of the offer must be reasonably definite so that all parties understand them. The offeror must intend to be bound by the offer.

How may a revocable offer effectively be revoked? Choose 2 answers.

The offeror may take an action that contradicts the offer and make that known to the offeree. The offeror may withdraw the offer with a clear expression.

Which of the following scenarios illustrates a business world without agency relationships?

The owner prepares the tax returns.

What does the law require for a personal service contract?

The personal service requirement must be stated.

What does agency by ratification require? Choose 2 answer choices.

The principal affirms the agent's entire act, not just a portion The principal must have the legal capacity to contract.

What is the key factor in apparent authority?

The principal's actions

How does a principal become liable to third parties on contracts?

The principal's agent has the authority to bind the principal in a contract with a third party.

You and a friend are taking a road trip during summer break and decide to stop for lunch. You choose your favorite fast food restaurant. You both order a burger, fries, and a soft drink and chow down. In the afternoon, as you are continuing your journey, both of you begin to feel stomach cramps. They get worse so you decide to go to an urgent care clinic. The doctor there diagnoses you both with food poisoning and prescribes medication. You fill the prescription, check into a hotel, and experience several days of agony. You later discover the cook at the restaurant undercooked the beef in your burger, which caused your food poisoning. You sue the restaurant. Is the restaurant liable to you or is only the employee liable?

The restaurant is liable.

What rights does the perfect tender rule give buyers of goods? Choose 2 answer choices.

The right to reject the seller's goods if the goods are not exactly as described in the contract The right to accept delivery of all of the goods

Which of the following must a plaintiff prove when suing based on an express warranty for a defective product? Choose 3 answers.

The seller breached the warranty. One of the buyer's reasons for the purchase is the product warranty. The seller made a statement of fact to the buyer about the quality or uses of the product.

What are some good reasons to refrain from disclosing an agency or a principal's identity? Choose 2 answer choices.

When a principal wishes to remain anonymous for privacy reasons When a principal wishes to enter into transactions, but is concerned that if third parties knew his or her identity they would be less likely to enter into the agreement

In what situation could a party enforce strict performance?

When the parties specifically agree to it in the contract When the requirement is reasonable

What factors are important for a buyer to determine when deciding which remedies apply when a seller breaches a sales contract? Choose 2 answer choices.

Whether the seller delivered nonconforming goods Whether the seller failed to deliver the goods