LEOB

Watercraft Inc. employs Vern as a sales agent for a trial period. At the end of the period, Watercraft and Vern disagree on the amount of the commissions Vern is due for sales that he made. Vern may demand

an accounting.

Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be because their relationship is

an agency by estoppel.

Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely

an agent.

Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one-year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

an offer and an acceptance.

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for

any legal purpose.

Vera is a purchasing agent for Wild-Caught Fish Inc., with the authority to buy a sea fisher's catch up to a certain quantity. After the fish is bought, the agency relationship terminates

automatically.

Raul uses social media to post links that, when clicked, secretly install software on others' computers without the owners' knowledge. Raul's software is designed to harm or disrupt the computers. This program is

malware.

Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent

no more.

Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by

no one because it is oral

Ilene, an accountant, and Jerry enter into a contract under which Ilene agrees to perform audits for Jerry's Plastics Company. Ilene can delegate the duty to perform the audits to

no other party.

Mix Restaurant Corporation owns the trademark "Mix." Remix Café Company begins to use the mark without authorization as their domain name. Mix files a suit against Remix on a theory of trademark dilution. This claim requires proof that:

no proof is necessary.

Employees, clients, and others with authorization, use World Transport Corporation's network around the globe to share computer files. This is: (choose all applicable answers)

peer-2-peer (P2P) networking. a distributed network.

On May 1 Ralph offers to harvest Sam's corn crop and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives the letter on May 5 and responds on May 6. Ralph's revocation of the offer became effective on

May 6.

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Miklos's death or incapacity.

Daredevil Rides, Inc., owes debts to Equipment Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil's debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by

Daredevil, Equipment, or Food.

______ does not prevent an injured party from bringing civil charges against a defendant once they are found innocent in a criminal case.

Double jeopardy

Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,

Efron understood the legal consequences.

The measure of compensatory damages does not vary by type of contract.

False

The standard measure of compensatory damages is the value of the breaching party's actual performance.

False

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must click "I agree" to a provision stating that she will not make and sell copies of the music. This provision is

a click-on agreement.

The requirements of a novation are as follows (choose all applicable answers)

a new, valid contract. an agreement by all the parties to a new contract. a previous, valid obligation.

Main St. Market, Inc., and Natural Food Corporation discuss the terms of a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Between these parties, the e-mails are

a written contract.

Quint, an employee of Reservations Inc. pays Sienna, an employee of Reservations' competitor Travel Inc., for a list of Travel's clients. This is most likely

commercial bribery.

Sara enters into a contract to sell her condo to Ted for a certain price on a specific day. On that day, Sara unconditionally offers to perform. Sara's offer

constitutes tender of performance.

Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dian in that territory under the duty of

cooperation.

Kohl receives from Lily a camera stolen from Mark. Kohl knows that the camera is stolen, and he intends to keep it. Kohl is

criminally liable.

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is

effective.

Olinda, an employee of People's Bank, deposits into her account checks entrusted to the bank through its ATM system by customers to deposit into their accounts. This is

embezzlement.

Quay, the owner of RV Park, trusts Sara to manage the resort's daily cash flow. One night, without Quay's knowledge or consent, Sara takes and keeps $1,000 from the receipts. This is most likely

embezzlement.

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.

Bud works at a Cheap Stuff Store from which, without authorization, he takes merchandise that he has not paid for home for his own use. This is

larceny.

EcoEnergy LLC files a suit against Fiber Optics, Inc., claiming that the consideration for their contract is inadequate—that the plaintiff will not realize sufficient financial benefit from the deal to make it worthwhile. Most likely, the court will

not question the adequacy of consideration.

Zoey is accused of auto theft. She refuses to give information related to her alleged criminal activities because she suspects it will be used to prosecute her. This is

the privilege against self-incrimination

Lon says to Misty, "I would like to sell you my vinyl records." This statement is

an invitation to negotiate, not an offer.

Skye posts excerpts from comics and graphic novels on social networking sites without the permission of the owners of the copyrights. She says her reason is to promote the artists' work. This is an example of:

copyright infringement.

Romero employs Supply Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is

express authority.

Bruno buys and sells stocks and bonds. Bruno may be subject to penalties under the Racketeer Influenced and Corrupt Organizations Act

for the commission of securities fraud.

Erica, a police officer, wants to search the offices of Debit & Credit, Accountants. She asks Judge Bern to issue a warrant. No warrant for a search can be issued without

probable cause

Bern, a salesperson at a Carpet & Tile store, tells Dan, a customer, "Buy your flooring here, and I'll install it for less than the store would charge." Dan buys carpeting, which Bern installs for half the store's price. Bern keeps the money. With respect to the store, Bern has breached

the duty of loyalty.

Energy Company employs Fred to negotiate the purchase of mineral rights for future mining projects. Fred secretly buys some of the property and sells it to Energy at a profit. Fred has breached

the duty of loyalty.

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 purchase.

Gusher Irrigation, Inc., and Heartland Farm enter into a contract for a sale of irrigation equipment for $50,000. To be enforceable, the contract should be in writing and identify

the quantity.

Ross registers a domain name—sweetfriedpotatos.com—that is a misspelling of a popular brand of sweet fried potatoes that has a domain name of sweetfriedpotatoes.com. This is an example of:

typosquatting.

Via the Internet, Britta enters false code into the computer control system of Chicken Company, a food maker, to alter the levels of ingredients so that consumers of the food become ill. Britta is

a cyberterrorist

Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps and dictates their schedules. With respect to third parties, Nora is

an employee and agent.

Web Invest Inc. buys and sells domain names with the click of a mouse. The high rate at which domain names change hands, and the difficulty in keeping track of mass automated registrations, have created a situation where:

cybersquatting can easily flourish.

Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to

do whatever is reasonable to minimize the damages.

BeFriends Corporation uses the trademark of Community Life Inc., a social media site, as a meta tag without Community Life's permission. This may be permissible:

if it is shown to be reasonably necessary for BeFriend's business.

Nina is induced by her guardian Ollie to sign a contract to invest funds in Penny Stocks, Inc., through Ollie's investment firm. Unknown to Nina, Ollie realizes a commission from the investment. Most likely, Nina may rescind the contract on the basis of

undue influence.

If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.

False

In an agency relationship, one party called the principal agrees to represent or act for another called the agent.

False

It is not a crime to use income obtained from a racketeering activity to buy an interest in a legitimate enterprise, as long as the deal is otherwise legal.

False

Normally, a court will evaluate the adequacy of consideration based solely on the comparative value of the things exchanged as part of the agreement.

False

The Computer Access Device and Computer Fraud and Abuse Act prohibits cyber theft.

True

Employees are protected under antidiscrimination laws, and independent contractors are not.

True

Employees who use social media in a way that violates their employers' stated policies, may be disciplined, or even fired.

True

Federal guidelines allow a company to disclose material information about itself through social media, such as those that may affect stock prices, as long as investors are notified in advance

True

Under the Lanham Act, the federal law protecting trademarks, having a domain name that is identical or confusingly similar to the trademark of another is one element of a claim of illegal cybersquatting.

True

Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of the store.

True

Basso includes in his song "Chords" a few seconds of Dante's copyrighted sound recording "Etudes" without permission. Some federal courts have found that such digital sampling could be: (choose all applicable answers)

a "fair use" exception to the act. a violation of copyright law.

Jan tells Lee she will pay him to babysit her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

a bilateral contract.

The lack of a license in certain occupations bars the enforcement of work-related contracts.

True

Insider trading is a violation of _______.

securities law

Shep offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable's acceptance by e-mail will be considered effective when

sent from Reliable's email.

With respect to different types of transactions, including ordinary loans, the purpose of a usury statute is to

set a maximum rate of interest.

Sal is mentally incompetent but has not been adjudged by a court to be incompetent. Sal enters into a contract with Tony for the cleaning and maintenance of Uptown Office building. Most likely, the contract is

voidable if Sal did not comprehend the consequences.

These basic types of situations may qualify as grounds for the discharge of contractual obligations based on impossibility of performance (choose all applicable answers)

when the specific subject matter is destroyed. when an essential party to the completion of the contract dies. when a change in the law renders performance illegal.

Odell is an employee of Packing Corporation. She uses social media in a way that violates her employer's stated social media policies. Packing Corporation disciplines Odell, and then fires her after a second transgression. This is:

within the employer's rights.

A court will only impose a quasi-contract if the parties originally had a contract with one another.

False

A seller who places goods at the disposal of a buyer has tendered delivery, but cannot yet demand payment.

False

An independent contractor is, by definition, an employee

False

Apparent authorityin an agency relationship arises when the principal causes the agent to reasonably believe that he or she has the authority to act.

False

Choice of law provisions in e-contracts have been found to be invalid.

False

Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach.

False

When a covenant not to compete is unreasonable in its essential terms, a court will refuse to reform the covenant.

False

______ states that all evidence derived from illegal means, normally must be excluded from the trial proceedings.

Fruit of the poisonous tree

Discuss three of the property crimes in detail and how they differ. (burglary, larceny, obtaining goods by false pretenses, receiving stolen goods, arson, and forgery)

Larceny is taking property from a owner. Burglary is stealing anything from a owner, more than likely breaking and entering. Arson is intentionally setting someone's property on fire.

Under the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act, which of these would be allowed?

Mailing a seasonal coupon out to a previous customer.

A court usually will enforce a covenant not to compete provided its restrictions are reasonable.

True

A mistake of fact can often excuse criminal responsibility.

True

A party to a contract who has no reason to know that the contract is illegal, can often obtain restitution on a partially executed contract.

True

Posting on social media can affect: (choose all applicable answers)

damages awarded in a lawsuit. prior settlement agreements. criminal investigations.

Barry purchases some goods online from Acme Corp. He had clicked the accept terms box on the website when purchasing, which included a dispute resolution agreement that all disputes be sent to arbitration. He is unhappy with the product and injured by it. He brings a lawsuit in court against Acme Corp, and Acme files to dismiss based on the arbitration agreement. Barry will:

have to pursue arbitration for his dispute.

Dale's Uncle Ed tells Dale, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Ed's promise is

illusory.

Emmett, an agent for Fridley, signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is

liable, because notice to Emmett is notice to Fridley.

Online contracts may be formed not only for the sale of goods and services, but also for:

licensing.

Armand orally agrees to pay Borges to seed and harvest a quarter of Armand's farm acreage for four planting seasons. After Borges prepares the land and plants the first crop, Armand says that the deal is off. Borges can most likely recover on a theory of

quasi contract.

In selling a warehouse, Riley, a real estate broker, tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building. Sam's best course of action is most likely to

recover damages or rescind the contract to buy the building.

Under ______, parties are restored to their original position prior to loss or injury, or placed in the position they would have been in had the breach not occurred. This often involves returning goods, property, or funds.

restitution

Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

the contract is not enforceable

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that

Ernie is under twenty-one.

A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party.

True

A truck driver who drives a company truck on a regular basis is most likely an employee.

True

An e-offer might include an arbitration clause specifying that any dispute arising under the contract will be arbitrated in a designated forum.

True

Any electronic communication having to do with business, made on a device that an employer provides to an employee for use in the "ordinary course of business," is subject to employer discovery.

True

Any person can be an agent, regardless of whether he or she has the capacity to contract.

True

As a general rule, any duty can be delegated.

True

Because of the potential for punitive damages, plaintiffs often include a claim for fraudulent misrepresentation in their contract disputes.

True

BitTorrent is an example of a website that promotes illegal copying of movies without downloading them from their original site.

True

Daisy enters into a contract with Evan for the construction of a Fast-Food Café, according to a certain schedule. The parties perform some preparatory steps, but Evan materially and willfully fails to begin work on the specified date. To rescind the contract, Daisy must show that the parties can

be restored to the status quo.

In response to combatting spam, thirty-seven states have:

enacted laws to prohibit or regulate it.

By using agents, a principal can conduct multiple business operations simultaneously in various locations.

True

Cybersquatting is illegal if a domain name is identical to the trademark of another, as well as if the name is confusingly similar

True

For mutual rescission of a contract to take place, the parties must make another agreement that satisfies the legal requirements for a contract.

True

For the doctrine of promissory estoppel to be applied, there must be a clear and definite promise.

True

If a condition to a lease for university housing that the tenant must be a student is not satisfied, then the landlord's obligations under the lease are discharged.

True

If a contract is not enforceable under the Statute of Frauds, promissory estoppel may be another remedy.

True

Once the agency relationship between a principal and an agent has ended, the agent loses the right to bind the principal.

True

Online defamation is a huge problem in today's legal environment.

True

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

True

Sam, driving under the influence, causes a car accident that results in the death of Tanya. Sam is arrested and charged with a crime punishable by imprisonment for more than a year. This crime is

a felony.

Andy causes a disturbance at Brew Pub. He is arrested and charged with disorderly conduct; a crime punishable by imprisonment up to one year. This crime is

a misdemeanor.

Kit hires Lanie to manage Kit's Cattle Ranch. Lanie agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Lanie to so act. Their relationship is

a principal and an agent.

Grain Mill Company brings a suit against Milled Grain Company under the Anticybersquatting Consumer Protection Act (ACA), alleging that Milled Grain is profiting from a domain name that is confusingly similar to Grain Mill's trademark. If Grain Mill is successful, their recovery may include:

actual damages and profits.

Without authorization, Lars contracts on behalf of Mina to have Nemo paint Mina's Boutique. If Mina decides to ratify the contract, she must affirm

all of the contract.

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now, instead of $5,000 later. This is

an accord and satisfaction.

Marketing, Inc., offers to create a campaign to increase N'Ice Cream, Inc.'s online business. N'Ice agrees to pay for the service. These parties have

an express contract.

Apps LLC enters into a contract with Birk, the chief executive officer of Corporate Sales, Inc., to create an app for the firm. To fulfill the contract, Apps hires Dave as a student intern. With respect to the app contract, Dave is

an incidental beneficiary.

Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot. The discount is legally sufficient consideration

because it is a promise of something of value.

Dean solicits investors for a nonexistent business, eApps. Dean is arrested and charged with "mail fraud." This requires intent to

defraud the public.

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

discharged.

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation, and when present fails to adequately do her job. This

discharges the employer from the contract.

At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 15 percent. Nate finds the language of the contract difficult to understand. This is most likely

procedural unconscionability.

Bert pushes Connie to the ground, grabbing her phone as she falls. The use of force or fear is required for this act to constitute

robbery

Physicians Clinic orders by phone seven cases of single-use latex gloves from Quality Medical Supplies, Inc. After three cases are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to

the extent of the three accepted cases.

In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if

the fact is a serious defect known to Nan, but not to Marc.

Omar asserts that a deal he entered into with Pat to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Omar's best defense to the enforcement of this contract is

the lack of a party's voluntary consent.

Franny is charged with a crime. Almost all federal courts and some state courts would not hold Franny liable if, at the time of the offense, as a result of a mental disease or defect, she lacked substantial capacity to obey the law and to appreciate

the wrongfulness of her conduct.

Shuster's lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord's proof of the correct amount. Thurgood overcharges Shuster for the fees, without explanation. Most likely, the tenant can rescind the lease

with prompt notice.

Jay transfers downloaded musical recordings, without the copyright owners' authorization, from his phone to his friends' phones. Jay does not charge his friends for his "service," nor did he pay for downloading the music. This is an example of:

copyright infringement.

One of the requirements of a valid contract is an adequate market for the deal's goods or services.

False

Sid offers Tina, a city inspector, money to overlook health code violations in his restaurant. Tina accepts the money and overlooks the violations. Sid is charged with the crime of bribery. The crime occurred when

Sid offered the bribe.

Data, Inc., offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is that

a unilateral mistake does not afford relief from a contract.

Darla serves in a representative capacity for Ellen's Botanicals. To accomplish the objectives of this relationship, Darla's authority can be implied by

by custom.

Bob and Jim enter into a contract where Jim will custom make curtains for Bob's living room. Bob picks out the fabric and Jim makes the curtains. He delivers them to Bob and Bob refuses to pay, and says he does not like them. On what basis can Jim enforce?

Good faith

Pia registers a domain name—quallitytires.com—that is confusingly similar to the domain name qualitytires.com used by Quality Tires Inc. Quality Tires Inc. also owns the trademark of quality tires. Pia has a "bad faith intent" to profit from the domain name by selling it to Quality Tires. This would be:

illegal by cybersquatting.

Outsourcing Inc. registers a domain name that is the same as the trademark of Resourcing LLC, and offers to sell the name to the mark's owner, Resourcing LLC. This is an example of:

cybersquatting

County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Dale to Ezra, the furnished information is mistaken. The contract between Dale and Ezra that includes the mistake may be rescinded because the mistake

is about a material fact.

Ed works for Family Dwellings Inc., an investment firm that buys, renovates, and rents foreclosed houses. Ed steals his employer's digital files to start his own competing business, Good Homes LLC. This is

larceny.

CallTalk Corporation, a phone calling service, uses its mark "calltalk" as its domain name. Later, Converse Inc. uses the domain name "caltalk" (a deliberate misspelling of "calltalk") without CallTalk's authorization, to sell sexually explicit phone conversations. This is an example of:

trademark dilution.

Without authorization, Java Joe uses the trademark of The Best Coffee Company to help promote his cheap, flavorless coffee candy, which is not at all similar to The Best's products. Therefore it diminishes the distinctive quality of the coffee company's mark. This is an example of:

trademark dilution.

Afford Motors LLC, an auto broker, uses the trademark of Ford Motor Company in a meta tag without Ford's permission. This is an example of:

trademark infringement.

Under a contract with River Valley Farm, Sancho begins grading a terraced hillside for planting. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." The farm agrees, but later refuses to pay. The agreement to pay more is

unenforceable, because Sancho's performance was a preexisting duty.

Business Center, Inc., and Catering LLC enter into a contract. Later, they agree to rescind it and enter into a new contract. If the first contract was subject to a preexisting duty, the new contract will most likely be

invalid.

Kim takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Lum picks up the ring, puts it on, and walks away. Lum has likely committed

larceny.