B-Law Exam 3
Ziplines Inc. enters into a contract to employ Scot as a manager for two years. If Ziplines breaches the contract, Scot has a duty to a. do nothing. b. reduce the damages that Scot might otherwise suffer. c. rescind the contract with Ziplines. d.act to punish Ziplines as an example to deter others from similar acts.
b. reduce the damages that Scot might otherwise suffer.
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 a. can no longer be brought. b. can be filed within four years after Kelly decides to sue. c. must be filed within ten to twenty years, depending on state law. d. must be filed between four and five years after Kelly decides to sue.
a. can no longer be brought.
East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is a. complete. b. substantial. c. conditional. d. material.
a. complete.
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 a. constitutes tender of performance. b. conditions Ted's promise to pay for the property. c. suspends the parties' contractual obligations. d. excuses the parties' performance under the contract.
a. constitutes tender of performance.
A body of law—formed as a result of international customs, treaties, and organizations—that governs relations among or between nations is a. international law. b. space law. c. national law. d. universal law.
a. international law.
Aircraft Corporation employs mechanics, programmers, outside salespersons, and professionals, including pilots. Employees exempt from the Fair Labor Standards Act's overtime provisions include all of the following except a. mechanics. b. professionals. c. programmers. d. outside salespersons.
a. mechanics.
Flower Workers Union represents the employees of Garden Variety Inc. The company does not require its new hires to join the union as a prerequisite to obtaining employment. This most likely violates a. no federal law. b. the Fair Labor Standards Act. c. the Labor-Management Relations Act. d. the Norris-LaGuardia Act.
a. no federal law
Faiz enters into a contract to buy 350 acres from Grain Farm to cultivate hops and open a brewery. Faiz fails to make the purchase. Grain Farm's remedy is most likely a. the difference between the contract and market prices of the land. b. a percentage of Faiz's unrealized profit. c. nothing—Grain Farm still owns the land. d. the amount that Faiz expected to invest in the brewery.
a. the difference between the contract and market prices of the land.
Analytic Data, Inc., wants to hire Benazir, a noncitizen. A work visa is most likely to be set aside for a noncitizen if a. there is a shortage of qualified U.S. workers capable of doing the work. b. the noncitizen is a "person with an extraordinary work ethic." c. hiring the worker will adversely affect the labor force. d. the noncitizen is of "ethnic similarity to the employer's workforce."
a.there is a shortage of qualified U.S. workers capable of doing the work.
Dick's Burgers enters into an oral contract with Equipment Warehouse for the purchase of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by a. any third party with a material interest, such as one of Dick's suppliers. b. Dick's or Equipment. c. none of the choices. d. the manufacturer of the mixer.
b. Dick's or Equipment.
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is a. a tariff. b. a quota. c. a dumping duty. d. an antidumping duty.
b. a quota.
The United States taxes each barrel of imported oil at a flat rate. This is a. a dumping duty. b. a tariff. c. an antidumping duty. d. a quota.
b. a tariff.
Owen is an employee of Paving Inc., which is performing a contract for the federal government. Owen learns that Paving is overcharging for the work. If he publicly reports the fraud, the law may protect him from being fired from his job. With respect to the employment-at-will doctrine, this is a. an example of the doctrine. b. an exception based on a statute. c. an exception based on contract theory. d. an exception based on public policy
b. an exception based on a statute.
Beau borrows $15,000 from Credit Center to buy a car. The lender assigns the right to receive the loan payments to Debt Collections Inc. If Beau does not pay the debt, the assignee can a. none of the choices. b. enforce the payment in court. c. extinguish the contract rights of the assignor. d. demand performance of the deal from any of the original parties.
b. enforce the payment in court.
Mica is an employee of Natural Gas Company and a member of a union of company employees. Under federal law, Mica and other union members have the right to a. require their employer to contribute financially to their union. b. none of the choices. c. bargain collectively with their employer through their representative. d. insist that their employer require union membership to work.
bargain collectively with their employer through their representative.
Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." Fair value is the price of Mont Blanc's goods in a. the world market. b. the United States. c. France. d. the European market.
c. France.
Pumps Inc. agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of a. Reliable. b. Quality. c. Pumps. d. all of the choices.
c. Pumps.
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 a. a novation. b. a mutual agreement to rescind. c. an accord and satisfaction. d. specific performance
c. an accord and satisfaction.
Airbud Corporation, a U.S. firm, signs a contract with Bueno Computadores Ltd., an Argentinean firm, for a shipment and payment for Airbud's goods. This is a. indirect exporting. b. licensing. c. direct exporting. d. a distribution agreement.
c. direct exporting.
Federal overtime provisions apply only after a covered employee works more than a. twenty days in a month. b. one year for the same employer. c. forty hours in a week. d. eight hours in a day
c. forty hours in a week.
Elin owes Floyd $10,000. Floyd assigns the claim to Gary. Gary does not notify Elin of the assignment. Later, Floyd assigns the same claim to Holly. Holly immediately notifies Elin of the assignment. Holly has priority to payment in a. most states. b. no state. c. states that follow the English rule. d. all states.
c. states that follow the English rule.
Ceramic Workers Union represents the workers of Delta Tile LLC. The union fails to hold elections for union officers. This most likely violates a. the Labor-Management Relations Act. b. no federal law. c. the Labor Management Reporting and Disclosure Act. d. the Fair Labor Standards Act
c. the Labor Management Reporting and Disclosure Act.
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 a. the tablet only. b. the books only. c. the shoes and the tablet only. d. the books, the shoes, and the tablet.
. the tablet only.
According to most states' laws, to be enforceable as a contract under the Statute of Frauds, a writing must a. recite the parties' intent. b. name the parties. c. describe the parties. d. contain both contracting parties' signatures.
b. name the parties.
Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are a. breached. b. performed. c. conditioned. d. avoided.
b. performed.
To create a valid delegation of duties requires a. the delegator's use of the word delegate. b. a special form. c. the delegator's expressed intent to make the delegation. d. none of the choices.
the delegator's expressed intent to make the delegation.
City Delivery, Inc., enters into a contract to deliver furniture to Damien's house with payment due on July 4. On July 4, Damien's bank is closed, and for this reason, he claims that he cannot pay on time. In this situation a. the contract is suspended. b. the bank is liable for breach. c. the contract is discharged. d. Damien is in breach
Damien is in breach
Discharging a contract by executing a new agreement with performance different from what was originally promised is a. an accord and satisfaction. b. substantial performance. c. a novation. d. a material breach
a. an accord and satisfaction.
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 a. an incidental beneficiary. b. an intended beneficiary. c. a promisor. d. a promisee.
a. an incidental beneficiary.
Restful Hotel Corporation, a U.S. firm, establishes a wholly owned subsidiary in Singapore. As a parent corporation, with respect to the subsidiary, Restful retains complete ownership of a. no more than half of the facilities in Singapore b. none of the facilities in Singapore. c. more than half, but less than all, of the facilities in Singapore. d. all of the facilities in Singapore.
d. all of the facilities in Singapore.
Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by a. Air Flo. b. Banyan Grove. c. any third party, such as a HVAC supplies provider. d. none of the choices.
none of the choices.
The Outer Space Treaty provides that a nation retains jurisdiction over objects on its space registry that are launched into space. The treaty also prohibits interference with space activities. In effect, these provisions a. protect property rights with respect to private space activities. b. ban the national appropriation of territory in space. c. assert sovereignty over celestial bodies. d.declare exclusive international jurisdiction over space locations.
a. protect property rights with respect to private space activities.
Jim and Kelly agree that Jim will fix the refrigeration unit in Kelly's Lunch Café in exchange for her payment of a debt that Jim owes to Money Corporation. Under this contract, the intended beneficiary is a. Money. b. any customer, client, or employee of Lunch or Money. c. Kelly. d. Jim.
a. Money.
Farah makes and sells camping gear. Farah and Gobi enter into a contract for a delivery of the gear to Gobi's Outfitters retail locations for an invoiced price. Farah transfers the right to payment under the contract to Haulers Distribution Inc. This transfer is a. a delegation. b. an assignment. c. prohibited. d. a third party beneficiary contract.
a. a delegation.
Technicians Union represents the workers of United Engineering Inc. The union and the employer bargain in good faith but are unable to reach an agreement because of genuine differences of opinion. The union may call a strike a. if the parties are deadlocked. b. under no circumstances. c.if the subjects of bargaining include working conditions and worker pay. d. if the negotiations are ongoing.
a. if the parties are deadlocked.
Elena offers to invest a certain amount in Fran's business if Fran marries Elena's son Glen. This promise is enforceable a. only if it is in writing. b. under no circumstances. c. only if the amount of the investment is more than $500. d. only if Glen agrees to marry Fran.
a. only if it is in writing.
Lance enters into a contract to mow Mary's yard every week for the summer. Mary sells her house and yard to Nora, and assigns the right to receive Lance's services to Nora. Mary is a. the assignor. b. a third party beneficiary. c. the assignee. d. the obligor.
a. the assignor.
If a contract stipulates that it cannot be assigned, then it cannot be assigned unless the assignment a. is pursuant to a contract for a sale of goods. b. is contrary to public policy in most states. c. operates only in favor of the concerned parties. d. involves ownership rights in real estate
d. involves ownership rights in real estate
Ivy orally agrees to buy a unique collection of sports memorabilia for $10,000 from Jess and sends $2,500 as an initial payment. When Ivy pays the rest of the price, Jess refuses to ship the collection. In a suit for breach, Ivy should seek a. a quasi contract. b. damages. c. restitution. d. specific performance.
d. specific performance.
Interstate Commodities Inc. keeps a file of I-9 verifications forms, which are required by the Immigration Reform and Control Act. To monitor compliance with the act, random audits and enforcement actions are conducted by a. the government of the state in which the company is based. b. the governments of interested foreign nations. c. the local office of the National Labor Relations Board. d. the federal government.
d. the federal government.
Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at Five Star Arena. Dino files a suit against Eve. The court will most likely a. award damages to Dino. b. cancel Dino and Eve's contract. c. rescind Dino and Eve's contract. d. order Eve to perform both contracts
a. award damages to Dino.
Iggy and Jon sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jon's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of a. concurrent conditions. b. implied conditions. c. conditions precedent. d. conditions subsequent.
a. concurrent conditions.
Coffee Company, a U.S. firm, owns property in the Dominican Republic. When the Dominican government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Dominican Republic is exempt from the court's jurisdiction. This is an application of a. the doctrine of sovereign immunity. b. a coercive action. c. the principle of comity. d. the act of state doctrine.
a. the doctrine of sovereign immunity.
In a state in which a statute prohibits an employee from assigning the right to receive workers' compensation benefits, the employee can assign the right a. under no circumstances. b. if there is no significant change to the obligor's risk or duties. c. if all interested parties consent. d. if the employee is fully advised of his or her rights.
a. under no circumstances
Hardware Store Company and Indestructible Tools Inc. sign a written contract for a sale of goods. To be enforceable, this written contract must include a. a quantity term, such as "50 hammers" or "100 boxes of assorted nails." b. a correct title, such as "Purchase Order" or "Sales Invoice." c. the parties' contact information. d. a date, such as "October 2019" or "10/2019."
a.a quantity term, such as "50 hammers" or "100 boxes of assorted nails."
Solar Power LLC and Trey enter into an oral contract under which Solar agrees to provide Trey with lifetime employment. This contract may be enforceable by a. Trey only. b. either Solar or Trey. c. any interested third party, such as a Solar supplier. d. Solar only.
b. either Solar or Trey.
Dwellings Inc. enters into a contract with Estates Management to manage and maintain Dwellings's apartment complex. Their contract contains a clause that limits Estates's liability except in cases of gross negligence or willful misconduct. With respect to this clause, a court would most likely a. reallocate the risk expressed in it. b. enforce it. c. reform it. d. refuse to enforce it.
b. enforce it.
Bagels Bakery enters into a contract with Cineplex for discounted tickets for Bagels's employees. When Cineplex does not provide the tickets, Bagels enters into a contract with DigiMovies for the same service at a lower price. In a suit for breach, Bagels might be awarded nominal damages to a.punish Cineplex and set an example to deter others from similar acts. b. establish, as a matter of principle, that Cineplex acted wrongfully. c. provide Bagels with funds for a foreseeable loss beyond the contract. d. provide Bagels with funds for its loss of the bargain.
b. establish, as a matter of principle, that Cineplex acted wrongfully.
Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This a. has no effect on Juan's performance. b. suspends both parties duties to perform. c. discharges the original contract. d. changes Isidro's duties under the contract.
c. discharges the original contract.
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 a. continue to store the fruit until Produce pays. b. dispose of the fruit immediately. c. do whatever is reasonable to minimize the damages. d. set an example to deter similar misconduct in the future.
c. do whatever is reasonable to minimize the damages.
Under a contract, an assignment of negotiable instruments a. can be prohibited only by an anti-assignment clause. b. cannot be prohibited. c. is prohibited under any circumstances. d. can be prohibited only by the obligor.
c. is prohibited under any circumstances.
Rough Canyon Adventures Inc. and Swampcraft Inc. enter into an oral contract for Swampcraft's sale to Rough of five rafts for $2,000 each. Before Rough takes possession of the rafts, this contract is enforceable by a. Rough only. b. Swampcraft only. c. none of the choices. d. any interested third party, such as a Rough tour guide or client.
c. none of the choices.
Restore Inc. contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover a. the difference between the contract and market prices for the work. b. the cost of new pools. c. the loss of profit from the delayed opening. d. nothing—the work is done
c. the loss of profit from the delayed opening.
Sufficient business develops in France for Graphic Comics Inc., a U.S. firm, to appoint Comics Graphique Ltd., a French firm, to act as Graphic's marketing representative in France where they will put together ad campaigns to help drum up more business for Graphic. This is a. licensing. b. direct exporting. c. franchising. d. indirect exporting.
d. indirect exporting.
Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would a. profit from Max's performance. b. obtain a reasonable exchange of values. c. be restored to the status quo. d. be unjustly enriched.
d. be unjustly enriched.
Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Global Mining Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can a.subject the private company to the provisions of the Sherman Act. b. file criminal complaints under Title VII of the Civil Rights Act. c. do nothing. d. bring civil suits under the Alien Tort Claims Act.
d. bring civil suits under the Alien Tort Claims Act.
Metro Holdings Inc. contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is a. intended to quickly provide cash to New Property. b. a reasonable estimate of the loss on the breach. c. meant to pay for additional work in the event of damage. d. designed to penalize Metro.
d. designed to penalize Metro.
Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez a. must pay Josh only the cost of his materials. b. must pay Josh half of the contract price as a compromise. c. must pay Josh the contract price. d. does not have to pay Josh.
d. does not have to pay Josh.
Rye agrees to sell his Taco Delight restaurant to Sati. The parties intend their written contract to be a final statement of the terms of their agreement. Later, the parties dispute some of the provisions. In litigation, Sati offers evidence to contradict the written terms. Most likely, the court will a. reform the written terms to match the evidence. b. strike a balance between the evidence and the written terms. c. dismiss the case. d. exclude the evidence
d. exclude the evidence
Health Clinic Inc. has no written employment manual or oral discharge policy, avoids abusive treatment of its staff, and acts to prevent illegal and unsafe activities. The clinic freely hires and fires its employees, who are similarly free to quit at any time. With respect to the employment-at-will doctrine, this is a. an exception based on contract theory. b. in direct conflict with the doctrine. c. an exception based on a statute. d. exemplary of the doctrine.
d. exemplary of the doctrine.
