Legal Environment of Business Final
Clay offers to pay Dian $50 for a golf lesson for Ewan. They agree to meet on Friday to exchange the cash for the lesson. These parties have
a bilateral contract
Hal's Hardware Inc. and Ideal Tools Corporation sign a written contract for a sale of goods. To be enforceable, this written contract must include
a quantity term, such as "50 hammers" or "100 boxes of assorted nails."
Ren offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ren and Sara will have
a unilateral contract
Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have
an express contract
Sun-Hi, who operates a Pan-Asian restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. The standard of proof to find a defendant who has been charged with a crime guilty is
beyond a reasonable doubt
Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to
damages
Gilda is accused of conspiracy to defraud. She is given an opportunity to object to the charge before a judge. She is also given the opportunity to confront and cross-examine witnesses and to present her own witnesses. These procedures represent
due process of the law
Berry enters into a contract with Clyde for a guided tour of Deep Canyon. Clyde represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Berry is most likely a victim of
fraud
Lee applies to Marketing Corporation for a position as a software engineer. Lee has no training in computers or programming and no background as an engineer. After Lee is hired, Marketing learns the truth. The employer can rescind the contract on the basis of
fraud
Reese, driving while intoxicated, causes a car accident that results in the death of Sanyo. Reese is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for
more than one year
Lewis tells a representative of Musical Instruments, Inc., that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract
only if it is in writing.
Ossie enters a convenience store and points a gun at the clerk Pico. Ossie forces Pico to open the cash register and give him all the money. Ossie will most likely be charged with
robbery
Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. The intent to enter into a contract is determined with reference to
the objective theory of contracts
Ryan is accused of auto theft. Ryan refuses to give information related to his alleged criminal activities because he suspects it will be used to prosecute him. This is
the privilege against self incrimination
Terms in a shrink-wrap agreement have been enforced in the same way as the terms of other contracts.
true
Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least
$500.
Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject to
Article 2A of the UCC.
Chet, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of
Chet only.
Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the contract
Guido must return the $100 and Hal must return the bike.
Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue
Jake or Leon.
Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when
Steve promised to pay Ray for the iPod.
Rose questions whether there is consideration for her contract to perform with Saxophone Symphony. To constitute consideration, there must be
a bargained-for exchange.
Khan offers to buy Lonnie's 1967 Mustang only if an appraiser estimates that it can be restored for less than a certain price. This requirement is
a condition precedent.
Brock enters into a contract with Casey's Coin-op Laundry to move a suite of dryers from one of Casey's locations to another. Brock subsequently transfers this duty to Darin. Darin is
a delegatee.
Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, he asks Otis to do the cutting and trimming. This transfer of duties is
a delegation.
Copper Circuit, Inc., and Direct Electric LLC sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is
a liquidated damages clause.
Jeff is seventeen years old. Legally, Jeff is considered
a minor.
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 mitigation of damages.
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 novation.
Leslie pays Mobile Electronics $600 for a new phone. Under the UCC, this is
a sale.
Rally Corporation enters into a contract to sell ski gear to Sno-Sports Inc., which sells a pair of the skis to Tyra, a consumer, who later sells them to Upton, another consumer. Article 2 of the UCC applies to the sales transactions between
all of the buyers and sellers.
Faye makes and sells furniture. Faye and Glen enter into a contract for the delivery of Faye's products to Glen's Gear retail locations for which he agrees to pay the invoiced price. Faye transfers her right to payment under the contract to Haulers Trucking Company. This transfer is
an assignment.
Simone offers Thom a dozen piano lessons for a certain price per lesson but conditions the deal on Thom accepting the offer by April 1. Simone may revoke the offer
before Thom accepts the offer.
Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit
can no longer be brought.
Kevin obtains a loan from Liberty Credit Bank at an interest rate that exceeds the state's maximum. Liberty has
committed usury.
Laredo advertises a reward for the return of his lost dog. Miguel, who does not know of the reward, finds and returns the dog, without asking for reward. Miguel cannot recover the reward, because he
did not know of the reward when he returned the dog.
Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is
discharged.
Dim threatens physical harm to force Ed to sell his business, Flowers, Inc., to Dim for a below-market price. This is
duress.
Lou offers to service Millie's heating and air conditioning system for one year for $500. Under the mirror image rule, Millie's response will be considered an acceptance if the terms of the acceptance
exactly mirror those of the offer.
Francie drives into Gage's Auto Service and asks Gage to replace a tire on her car. After Gage replaces the tire, but before Francie pays for it, any contract between them is
executory.
Rudy files a suit against Shakes & Shingles, Roofing Contractor, Inc., under the doctrine of promissory estoppel. Rudy must show that
he justifiably relied on Shakes & Shingles' promise to his detriment.
Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's estate
is discharged from any contractual liability.
Orin signs a covenant not to compete with his employer, Product Distribution, Inc. The covenant will be enforced if it
is reasonable with respect to geographic area and duration.
Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump
is the consideration that creates Kim's obligation to pay Leo.
Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be
legally sufficient.
Bob wants to sell his recreational vehicle (RV) for $21,000. He e-mails Curt with an offer, but mistakenly types that the price is $20,100. Curt accepts the offer and pays Bob $20,100. Bob
must deliver the RV.
Juan and Isidro enter into a contract to buy, restore and reopen the Coastal Park Carousel. Before either party begins to perform, they agree to cancel their deal. This is
mutual rescission.
Maya tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nero, a passerby who owns Nero's Motors, hands Maya $10. This is
not a valid acceptance because Maya does not seriously intend to sell.
Intoxicated and not aware of the consequences, Grady agrees to a two-year phone service contract with Horizon, Inc., at more than the average market price. This contract is
not enforceable if Grady was intoxicated enough to lack mental capacity.
Carlos and David contract for the sale of five hundred head of Carlos's cattle for $95 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is
not required to pay due to the bilateral mistake.
In selling a 300 acres of rural land to Organic Farms, Peyton tells the buyer that the land "will be worth twice as much by next year." This is
opinion.
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
performed.
Pico, a famous chef, agrees to give ten culinary lessons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be
prohibited if Pico and Sven have different skill levels.
Global Enterprise enters into a contract with HealthCare Insurance to obtain insurance for Global employees. HealthCare breaches the contract and Global is awarded compensatory damages. The purpose is to
provide Global with funds for its loss of the bargain.
Meatpackers, Inc., enters into a contract with Nevada Ranch for the delivery of a certain number of beef cattle on a set schedule. The ranch 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
provide the buyer with funds for a foreseeable loss beyond the contract.
Forest Lumber Company orally contracts with Gail for the purchase of five acres of Gail's timberland. Gail makes the transfer but Forest Lumber does not pay the price. Gail could most likely recover on a theory of
quasi contract.
Lauren files a suit against Moving Service for breach of contract, based on what Lauren claims was Moving's offer. For a court to determine if a contract has been breached, under the common law, the offer must include terms that are
reasonably definite.
Ross promises to pay Sara, his niece, $5,000 if she obtains her degree at Tech University, where she is in her third year. Sara graduates. Ross is
required to pay because Sara obtained a degree at Tech.
Stitches Corporation enters into a contract to sell denim clothing to Trend Fashion Company, which in turn sells the clothing to consumers. In contrast to standards that apply to consumers, the UCC imposes on merchants
special business standards.
Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek
specific performance.
At an auction, Benny bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Benny estimated, and thus is worth less as is, Benny is
still liable on the bid.
Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be
substantial.
Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches the contract, Scrub n' Dry can
sue Ready Repair for damages.
In an exchange of e-mails, Rob, a landlord, and Sam agree to a lease of a certain apartment for one year. Under the Statute of Frauds, this lease is enforceable provided
the e-mail is signed by the party against whom enforcement is sought.
Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for
the employment agreement.
Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs
the sale of the goods.
Maya and Nick enter into a contract. To be enforceable, the contract must include
the signature of the party against whom enforcement is sought.
Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of
the tablet only.
Edwin is charged with a crime. Almost all federal courts and some state courts would not hold him liable if, at the time of the offense, as a result of a mental disease or defect, he lacked substantial capacity to obey the law and to appreciate
the wrongfulness of his conduct.
Gene, an accountant, convinces his client Hazel to sign a contract to invest her savings in 2Gether, a nonexistent social-networking Web site. There is clear and convincing evidence that Hazel did not act out of her free will. This is
undue influence.
Under a contract with Valley Vineyard, Walsh begins grading a terraced hillside for the planting of grapes. Halfway through the project, Walsh asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." Valley agrees but later refuses to pay. Valley's agreement to pay more is
unenforceable because Walsh's performance was a preexisting duty.
A court adjudicates Henry mentally incompetent and appoints Inez to be his guardian. Later, without Inez's knowledge, Henry signs a contract to sell his farm to Jason for its real market value. The contract is
void.
Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty
without continuing to be potentially liable.
Fresh Service, Inc., offers to deliver produce to Growers' Market's customers for a certain price. Fresh's intent to extend a serious offer to Growers' Market is determined by reference to Fresh's
words and conduct.
John Doe was driving his car lawfully and safely down the street when suddenly he was struck from the side by another vehicle which was changing lanes. Mr. Doe received multiple injuries. The police report indicated Mr. Doe was not wearing his seat belt at the time of impact. Which of the following rules of law would apply?
Contributory negligence
Judges use several types of reasoning when applying the law to the facts of a particular case. One type of reasoning involves a logical relationship of major premise, a minor premise, and a conclusion. This type of reasoning involves the notion that if the premises are true, then the conclusion must follow necessarily. Which of the following best identifies this type of reasoning?
Deductive reasoning
A condition that must be fulfilled before a party's promise becomes absolute is a condition subsequent.
False
A contract entered into by an intoxicated person is always valid.
False
A covenant not to sue is against public policy.
False
A delegation relieves the party making it of the obligation to perform.
False
A liquidated damages provision specifies that a certain amount is to be paid on a breach of contract when the nonbreaching party elects to receive cash.
False
A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.
False
A right cannot be assigned if the assignment will significantly alter the risks or duties of the obligor.
False
An acceptance can materially change or add to the terms of the original offer without rejecting it.
False
An innocent party does not need to suffer an injury to collect damages as a result of a misrepresentation.
False
An offer does not need to be communicated to the offeree to become effective.
False
Both intended and incidental beneficiaries acquire legal rights in a contract.
False
Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.
False
Falsifying public records or altering a legal document is larceny.
False
If a promise is made, it will be enforced.
False
In an employment contract, a covenant not to compete is unenforceable.
False
In contract law, "consideration" refers to the time that a party takes to evaluate a deal.
False
In contract law, intent is determined by the secret, subjective intent, or belief, of a party.
False
In general, a court will question the adequacy of consideration based solely on the comparative value of the things exchanged.
False
No federal statute specifically addresses cyber crime.
False
Ordinarily, "ignorance of the law" or a mistaken idea about what the law requires is a valid defense to criminal liability.
False
Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.
False
There are no revocable offers
False
Under the "partial performance" exception to the UCC, an oral contract for goods worth more than $500 is enforceable if the goods are designed to partially perform a specific function.
False
Under the Statute of Frauds, all contracts must be in writing to be enforceable except those involving insignificant transactions.
False
Under the UCC, if a contract for a sale of goods does not specify the quantity, a court will objectively determine what is a reasonable quantity.
False
When a change in the law renders the performance of a contract illegal, the nonperforming party is normally held in breach of contract.
False
When both parties to a contract are mistaken about the same material fact, the contract cannot be rescinded.
False
The most common way to discharge contractual duties is by breach of contract.
False
A murder in which premeditation and deliberateness are the primary requirements is which of the following
First degree murder
Mia offers Nevin, a building inspector, money to overlook the violations in her new warehouse. Nevin accepts the money and overlooks the violations. Mia is charged with the crime of bribery. The crime occurred when
Mia offered the bride
A police officer came to Mr. Innocent's door without a warrant. He knocked, gained entry, and began asking Mr. Innocent questions. The officer told him he was merely making a routine inquiry. The officer asked where Mr. Innocent was the previous evening at 8:00 PM; when he arrived there; when he arrived home and who was with him. After answering, the officer told him he was under arrest. Such a set of facts possibly renders Mr. Innocent's statement inadmissible into evidence at trial under which of the following:
Miranda
Erica, a police officer, wants to search the offices of Debit & Credit, Accountants. She asks Judge Bernie to issue a warrant. Under the Fourth Amendment, no warrant for a search can be issued without
Probable cause
Mr. John Homeowner contracts with two bricklayers to build a fence around his front yard. They construct one portion in good order, on returning the following day they built another portion which is not in line with the property line and is also crooked. Mr. Homeowner orders them off the property and terminates the contract. The two bricklayers are entitled to compensation for the good quality portion of the work completed under which of the following theories?
Quantum Meruit
Jim offered to sell to Sam his horse Smokey, which is stabled in another state. Sam agreed and a bilateral agreement was formed for the animal's sale and purchase. However, unknown to either of them, Smokey died in a stable fire just a few hours before the agreement was entered into. Under these conditions, which of the following is a correct statement of law?
Sam need not pay anything because the death of the horse terminated Jim'm s offer resulting in the creation of a void agreement.
Judge Ironsides, in making his decision was presented with an old case, Williams vs. State of Mississippi, by one of the Attorneys. The facts in this case were similar to the facts of the pending case presently before the court. The practice of deciding new cases with references to former decisions or precedents is a corner stone of the English and American judicial systems. This practice forms which of the following doctrines?
Stare decisis
Joe Whiteacre met with his friend Mike Blackwater and orally contracted to sell him his one acre fishing cabin on Sardis Lake for $35,000.00 cash. Mr. Blackwater tendered a $100.00 bill to Mr. Whiteacre to seal the deal Mr. Whiteacre said he would meet with Mr. Blackwater within two weeks and on presentation of his check, he would sign over a deed. Four days later Mr. Whiteacre sent a check for $100.00 and a letter to Mr. Blackwater, stating that he had decided not to sell the cabin. This contract is unenforceable under what theory of law?
Statute of Frauds.
"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights. . ." Which school of jurisprudential thought would claim this statement as an essential part of its beliefs?
The Natural Law School
A bilateral contract comes into existence at the moment promises are exchanged.
True
A contract entered into under undue influence is voidable.
True
A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract
True
A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.
True
A party seeking to recover in quasi contract must show that the other party has been unjustly enriched.
True
A quasi contract is a fictional contract.
True
A transfer of contract rights to a third party is an assignment.
True
A unilateral contract is formed at the moment when the contract is performed.
True
After a contract is made, a supervening event may make performance impossible and discharge the contract.
True
All states require certain types of contracts to be in writing.
True
All states require that members of certain professions obtain licenses allowing them to practice.
True
An "assignment of all rights" creates an assignment of rights and a delegation of duties.
True
An e-contract must meet the same basic requirements as those required of a paper contract.
True
An executed contract is one that has been fully performed.
True
An express contract must be in writing
True
An illusory promise is an unenforceable promise.
True
Any contract to commit a crime is unenforceable.
True
Consequential damages are foreseeable damages that arise from a party's breach of a contract.
True
Contract duties are not assigned—they are delegated.
True
Contractual capacity refers to the legal ability to enter into a contract.
True
Corporations, like persons, can be liable for crimes.
True
If no time for acceptance is specified in an offer, the offer terminates after a reasonable length of time.
True
If no time for performance is stated in a contract, a reasonable time is implied.
True
In a criminal case, the state must prove its case by a preponderance of the evidence.
True
Intent to deceive is an element of fraud.
True
Reformation occurs when a court alters the terms of a contract to reflect the true intent of the parties.
True
Some promises are not legally binding
True
The Fourth Amendment protects against unreasonable searches by the government.
True
The most common remedies available to a nonbreaching party include damages, rescission and restitution, and specific performance.
True
To be characterized as a "good" under the UCC, an item of property must be movable.
True
UCC Article 2 applies to sales transactions between all buyers and sellers.
True
When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.
True
A local band known as the Screaming Five was under contract to perform for the Ace Music Agency for six months. A Mr. Weasel, who knew of this contract, nonetheless "enticed" the Screaming Five to refuse to carry out their agreement, and the group began performing for Mr. Weasel. Mr. Weasel is guilty of which of the following intentional torts?
Wrongful interference of a contract
