Buisnes Law and ethics 2
A person who is a customer of Safemart who slips and falls on aisle four is considered a/an A.invitee. B. licensee. C. accidental trespasser. D. incidental trespasser.
A.
Frosty and Sunny agreed to an agency agreement where Frosty would work for Sunny from January 1 until April 1. On April 1, the agency will terminated by A. expiration. B. revocation. C. operation of law. D. destruction of the essential subject matter.
A.
Aaron has entered into a contract with Wilson, a man who is elderly and suffers from dementia and was unable to understand the nature of the contract he was signing. Wilson had not been legally declared to be incompetent at the time the contract was signed. It was an agreement for Aaron to mow Wilson's lawn each week in consideration of $50, which is a fair price for the service. Aaron was not aware that Wilson had dementia. What is the legal status of this agreement? A. It is a valid contract. B. It is a void contract. C. It is a voidable contract. D. It is unilateral contract.
C
Darnell, a professor, entered into a contract with Felicity, a 22-year-old graduate student, for Felicity to proofread and correct the grammar in his new textbook. Felicity dropped off a contract at Darnell's office, but she made a mistake and accidentally wrote 15 cents an hour rather than 15 dollars an hour for her services, then signed the contract. Darnell noticed the error, signed the contract also, and now is trying to hold Felicity to the 15 cent amount. What would be the likely result and why if Felicity goes to court to get out of the agreement? A. The court will allow her to cancel the agreement on grounds of unilateral mistake. B. The court will allow her to cancel the agreement on grounds of bilateral mistake. C. The court will not allow her to cancel the contract because nominal consideration is valid. D. The court will not allow her to cancel the contract because a mistake is no grounds for getting out of a contract.
A.
Which of the following is an example of terminating the agency relationship by an express act? A. Girard, the CEO of Freedom Corp, calls Trish, his national sales manager, and tells her to stop working. B. Blanding, the president of Rocket Corp which employs Carlton as CFO, dies after a short illness. C. Greenwave Technologies, which employs Tandy, a manager, declares bankruptcy. D. The diesel truck that Bruno was hired to repair catches on fire and is destroyed before he can begin work on it.
A.
Which of the following would be a servant in a master-servant relationship? A. The security guard who worked for Countryside Credit Union B. A lawyer who represented a private client in a lawsuit C. A friend who agreed to pick up the pizza for the group of friends watching the football game D. The branch manager at First Trust Bank
A.
After finishing an internship while a student, Danielle received an offer for employment as a staff tax accountant for Lincoln, Roosevelt and Reagan, CPAs, to start on August 1st, after she finished her master's degree in accountancy. Included in the contract was the following provision: "This contract shall be cancelled if the prospective employee fails to pass the CPA exam prior to the start date of employment." Which of the following types of conditions is this provision? A. antecedent B. precedent C. subsequent D. concurrent
B
Botha is a rich art collector and corporate executive who wants to remain anonymous in a purchase of a Van Gogh painting. He has Francine, an executive in his corporation, negotiate for the purchase of the painting, which is being sold by Northaby's Art Sales. Francine reports directly to Botha and is supervised directly by him. Botha instructed Francine to tell Northaby's that she represents an art collector who will go unnamed. The agency would be described as A. disclosed. B. partially disclosed. C. undisclosed. D. indemnified.
B
Dravon agreed by contract to be an agent employee for Imagine Corporation. This is known in agency law as A. manifestation B. consent C. disclosure D. ratification
B
Jeff purchased a new Corvette from Hypersports Automotive on a three-year lease. Two years in, he lost his job as marketing director and was unemployed. Jeff asked the leasing company if his friend Addie could substitute for him and take over the lease. If Hypersports allows Jeff out of the lease with no further obligations and Addie completely takes his place, what has occurred? A. An assignment. B. A novation. C. A delegation. D. An accord and satisfaction.
B
TechnoPlus, a corporation that sold high end digital printer/copiers, entered into a written contract with Wesley, a lawyer, which included a payment of $500 per month for the printer/copier itself and $200 a month for a service agreement. The sales representative and Wesley negotiated the price of this contract in a serious of email and personal exchanges. Which of the following describes this type of contract? A. Unilateral and incidental B. Hybrid and express C. Hybrid and implied D. Bilateral and voidable
B
When a principal breaches a duty to an agent A. the agent has no legal rights except to terminate the agency relationship. B. the agent generally has the right to recover damages in court. C. it terminates the agency relationship by expiration. D. it terminates the agency by destruction of the essential subject matter of the relationship.
B
Demetrius offers to sell his car to Ivana for $20,000 Ivana tells him she will pay him $15,000. Ivana's response is A. an acceptance. B. a rejection. C. a counteroffer. D. a mirror image offer.
C
Stokes signed a contract to purchase a car from a dealer, Othick, for $15,000. However, when the contract was examined closely, a decimal point was inadvertently put in and the contract called for Stokes to get the car for $150. Stokes is attempting to enforce the contract against Othick for $150. Othick wants the court to change the contract to $15,000, which he claims is the true intent of the parties. What remedy should Othick pursue with the court? A. Mitigation B. Specific performance C. Reformation D. Tender of performance
C
The proper mode of acceptance of an offer up and until the offer has been accepted is established by A. the offeree. B. the subjective intentions of the offeree. C. the offeror. D. a third-party.
C
Which of the following is an example of the preexisting duty rule? A. Kristi was sitting at a bus stop when she saw Tim absent mindedly walking into traffic. She warned Tim, and he stepped back just in time. Tim offered Kristi $1,000 in consideration. B. Aubrey entered into an agreement with Ping in which Aubrey would deliver the computers that Ping made in consideration of $25 per delivery. C. Deputy Kelly entered into a written agreement with Babe in which Kelly agreed to find the person who stole Babe's skateboard in consideration of $100. D. All of the hypotheticals are examples of the preexisting duty rule.
C
Which of the following would be nominal consideration? A. Jorge entered into an agreement with Drake to sell him his motorcycle for $10,000. The motorcycle was worth $20,000. B. Frazier entered into a written contract to train Foreman for a boxing match in consideration of $5,000. C. Grover entered into a written contract with Oscar to sell him his house in consideration of $10. Oscar never turned over the $10. D. Belinda pulled April out of a burning car, saving her life. April then offered Belinda $1,000 in consideration of her heroism.
C
Who of the following is a gratuitous agent? A. Carlton works for Big Corp as a delivery driver B. Jamielyn works as a staff accountant for Roosevelt, Truman and Eisenhower, CPAs C. Gerta asks her roommate Dorian to pick up her laundry from the dry cleaners as a favor D. Brynn asks Tan, a truck driver for her company, to deliver a load of lumber by the end of the day
C
Hillary took her motorcycle to a mechanic, Kenneth, to repair a leaking tire. She picked up the motorcycle and was riding home when the tire that had been repaired suddenly deflated and Hillary crashed into a parked car, suffering broken bones. Hillary cannot prove exactly what Kenneth may have done wrong, but the tire should not have deflated if he had installed it properly. Which of the following doctrines should Hillary base her claim upon? A. nonfeasance B. misfeasance C. res ipsa loquitur D. negligence per se
C.
Rachel ran a food truck business. Willow told several of Rachel's customers that in her opinion, Rachel was the "biggest jerk" she knows. As a result, some of Rachel's customers stopped buying food from her truck. Rachel is considering a lawsuit against Willow for defamation. Assuming you are Rachel's legal counsel, what is the best and most accurate legal advice? A. Rachel has a good case for defamation because she has suffered business damages and pecuniary harm. B. Rachel has a good case for defamation because Willow disseminated this information to several third parties. C. Rachel does not have a good case for defamation because Willow's statement is pure opinion. D. Rachel does not have a good case for defamation because this is mere slander, or spoken defamation, which does not support damages.
C.
Theo wanted to buy a piece of property to build a painting supply factory. He asked Vincent, the owner of the property, if it was zoned for such manufacturing. Vincent told him "Yes, absolutely." This was a lie, it was only zoned for residential use. Theo bought the land at a premium price of $20,000 an acre in reasonable reliance upon Vincent's promise and then was shocked when he was told by the zoning board that he could not build his factory. Because of this, the land was worth a fraction of what Theo paid. Under which of the following theories should Theo sue Vincent? A. Trade libel B. Negligence C. Fraudulent misrepresentation D. Res ipsa loquitur
C.
Darnell, a professor, entered into a contract with Felicity, a 22-year-old graduate student, for Felicity to proofread and correct the grammar in his new textbook. Felicity dropped off a contract at Darnell's office, but she made a mistake and accidentally wrote 15 cents an hour rather than 15 dollars an hour for her services, then signed the contract. Darnell noticed the error, signed the contract also, and now is trying to hold Felicity to the 15 cent amount. What would be the likely result and why if Felicity goes to court to get out of the agreement? A. The court will allow her to cancel the agreement on grounds of unilateral mistake. B. The court will allow her to cancel the agreement on grounds of bilateral mistake. C. The court will not allow her to cancel the contract because nominal consideration is valid. D. The court will not allow her to cancel the contract because a mistake is no grounds for getting out of a contract.
A
Doke is manager of an apartment building and notices the parking lot has numerous potholes. Residents are complaining and threatening to not renew their leases. Without contacting Kimba, the owner of the apartment building, Doke calls a paving service, signs a contract, and has them repave at a cost of $50,000. Doke has no authority to make such expensive repairs. When Kimba returns from a vacation and sees the parking lot, she thanks Doke for his initiative and approves of the repairs. This is an example of a/an A. ratification of agency. B. partially disclosed agency. C. gratuitous agency. D. independent agency.
A
Which of the following contracts must be in writing? A. Constantin sold an acre of land to Jalen, the contract was a handshake deal where they agreed orally to transfer the land in consideration of $20,000. B Monica agreed to do legal consulting work for Asher in consideration of $501. C. Carson agreed to work for Huge Corp as a senior manager in consideration of $40,000 a month, it was 12-month contract. D. All of the contracts must be in writing.
A
Which of the following is a true of the distinction between employee agents and independent contractors? A. The agent is classified based on the level of direction and control that the principal has over the agent. B. Courts look primarily to federal law in the determination of most agency or independent contractor relationships. C. If a principal provides the tools, this typically indicates an independent contractor relationship. D. There is are no formal state penalties in the United States for agency misclassification, the only available remedy is a civil lawsuit.
A
Which of the following is not true of the establishment of a principal-agent relationship? A. The law requires a formal expression of an agency relationship between parties. B. Parties to an agency relationship must have an understanding that the principal is in control. C. Conduct alone can form the basis for an agency relationship. D. Courts use an objective standard for agency relationships in determining the relationship between parties.
A
Lanza was just hired to work for a government defense contractor. A clause in the contract calls for Lanza to pass a background check before he can work in the job, as a security clearance is required for all employees. If he cannot pass the background check and get appropriate security clearance, he cannot have the job and the employment contract will be voided. This clause would be a A. condition precedent. B. condition subsequent. C. concurrent condition. D. nothing of consequence since Lanza has already signed the contract and the employer may not breach it.
B
Mattie wanted to purchase a car for her daughter Emily's 16th birthday. She purchased the car at the dealer and ordered delivery on the day of Emily's birthday, when Mattie would be out of the country on a Himalayan expedition and unable to be reached by phone. What type of beneficiary is Emily and does she have rights to enforce the terms of the contract in Mattie's absence? A. Emily is an incidental beneficiary and she has the right to enforce the contract. B. Emily is an intended beneficiary and she has the right to enforce the contract. C. Emily is an incidental beneficiary and she does not have the right to enforce the contract. D. Emily is an intended beneficiary and she does not have the right to enforce the contract.
B
Roger works as a sales manager for Hi-Tech Solutions, a company that performs software consulting services. While working for Hi-Tech, Roger started a side business doing software consulting work and made $50,000 in it over the course of three years. Roger never informed Hi-Tech of his lucrative side business. If a court finds that Roger breached his duty of loyalty and orders him to pay Hi-Tech the $50,000 in profits he earned from his secret business, this is known as A. replenishment. B. disgorgement. C. restoration. D. reinstatement.
B
Scott, who is 15-years-old, purchased a laptop computer on a lease plan for $100 a month over 18 months from Laptops-R-Us. Under the law of contracts, this is A. a valid contract. B. a voidable contract. C. a void contract. D. an unenforceable contract.
B
A plaintiff who knows there is a substantial danger associated with certain conduct and goes ahead with the dangerous activity anyway gives the tortfeasor the defense of A. superseding cause. B. assumption of the risk. C. strict liability. D. Res ipsa loquitur.
B.
Big Manufacturing was interviewing Blondell for a position as a production line manager. He had excellent references for working hard and competence, but one of his references told the hiring supervisor that Blondell had a temper and seemed like he was always "ready to explode." Since Big Manufacturing needed a manager fast, they took their chances and offered Blondell a job. Within a month after being hired, Blondell screamed at a group of tourists visiting the factory and punched Craig, a man who shouted back at him. Craig sued Big Manufacturing for his injuries. What result? A. Craig wins under the doctrine of negligent retention. B. Craig wins under the doctrine of negligent hiring. C. Big Manufacturing wins because Blondell was involved in a detour. D. Big Manufacturing wins because Blondell was involved in a frolic.
B.
Dirk is the delivery driver for Papa Pepperoni's Pizza. On a delivery he spotted Marvin, his main competition for the affections of his girlfriend Jolene. He accelerated his truck and hit Marvin, breaking both his legs. Under these circumstances, this is A. a negligent tort. B. an intentional tort. C. nonfeasance. D. a crime but not a tort.
B.
Raelynn saw Tawny choking in a restaurant. Raelynn jumped from her seat, beat Tawny on the back in her untrained attempt at Heimlich Maneuver, which she did not know how to perform, and gave Tawny serious back injuries. Raelynn will be liable to Tawny under which of the following doctrines? A. comparative negligence B. assumption of duty C. assumption of risk D. Raelynn will not be liable as there is no general duty to rescue.
B.
Sharice was working on a scaffolding 20 feet above the ground when she carelessly tossed her power drill to a co-worker. It fell to the ground and landed on Gardner, a visitor to the construction site, injuring him. What category of tort is this? A. intentional tort B. negligence C. strict liability D. No tort, because it was not intentional
B.
Arnold offered to sell his zero turn lawnmower to Bambi in consideration of $2,500. Bambi thanked him for the offer, said nothing else, but immediately headed to her bank, withdrew $2,500, and headed to Arnold's house with the money. When she arrived, Arnold told her that he sold the mower 30 minutes after they spoke on the phone to someone else. Is Arnold in breach of contract? Why/why not? A. Arnold is in breach because this was an irrevocable offer. B. Arnold is in breach because he had a duty to inform Bambi that he had sold the mower. C. Arnold is not in breach because he revoked the offer by doing an action inconsistent with maintaining it. D. Arnold is not in breach because an offeror has no duty to maintain an offer even after verbal acceptance unless delivery has been made.
C
Big Insurance Corporation had a provision in their insurance contract with Gerald that said the following: "No lawsuit to recover under this contract shall be valid unless the suit is filed within 18 months of the time of the insured's loss." Which of the following types of conditions is this? A. antecedent B. precedent C. subsequent D. concurrent
C
Which of the following is an example of the preexisting duty rule? A. Kristi was sitting at a bus stop when she saw Tim absent mindedly walking into traffic. She warned Tim, and he stepped back just in time. Tim offered Kristi $1,000 in consideration. B. Aubrey entered into an agreement with Ping in which Aubrey would deliver the computers that Ping made in consideration of $25 per delivery. C. Deputy Kelly entered into a written agreement with Babe in which Kelly agreed to find the person who stole Babe's skateboard in consideration of $100. D. All of the hypotheticals are examples of the preexisting duty rule.
C.
"Kirsten entered into a contract with Brando to remodel Brando's kitchen by June 1st, as he was putting his house on the market. The contract specifically states that the job was to be completed by June 1st. Kirsten completed the remodeling on June 5th. Max has suffered no loss due to the delay, as no prospective buyers came out to see his house in the first week it was on the market. The job was otherwise done exactly to all contract requirements and specifications. If Brando sues Kirsten for breach of contract due to the missed completion date and if the courts were to award damages, what type of damages would most likely be awarded? A. punitive damages B. consequential damages C. restitution D. nominal damages
D
Alexander was a brilliant inventor who worked for GiantCo. Alexander received a salary of $90,000 a year, but also invented several products for GiantCo which made them in excess of $10 billion in profits in the five years he had worked for them. Alexander was dissatisfied with his salary and wanted a bonus based on the massive amount of money he made GiantCo, but they turned down his request and paid him only one dollar more than his base salary because he had signed an employment contract which called for him to give up "all rights to inventions in consideration of $1." Bill thinks this is unfair and has sued. What will be the likely court result? A. Alexander wins because $1 is inadequate consideration for $10 billion in profits. B. Alexander wins because there was no mutual assent in the contract. C. GiantCo wins because the $1 agreement for the rights to inventions was past consideration and thus not enforceable. D. GiantCo wins because this was a bargained-for exchange and consideration need not be of equal value.
D
In which of the following scenarios would enforcement of specific performance be appropriate? A. Jared ordered a standard laptop computer from Computers-R-Us for $1,000, but Computers-R-Us failed to deliver the computer by the start of classes when he needed it. B. Shirley offered $10,000 to buy a new motorcycle, the Superfast 1000 from Fonda Motors. It was their most popular new model and they had sold thousands just like it, but the demand caused a backorder and Fonda Motors couldn't deliver the motorcycle to Shirley. C. Connie contracted with Maria, an electrician, to rewire her new office by the time she opened for business, but Maria got a large contract and told Connie she would be unable to finish her office in time. D. Vincent, an art dealer, contracted with Jackson to purchase his original Picasso painting for $10 million, but when Vincent arrived to pick up the painting, Jackson told him he had changed his mind and would not honor the contract, because he could not bear to part with it.
D
Rita defaulted on the loan of her motorhome. She had borrowed the money to purchase the motorhome from Thrifty Bank. Thrifty hired Roger the Repo Man to repossess the motorhome for a fee of $1,000. Roger was told to find the motorhome and take it in whatever manner he thought best so long as he did not break the law. Roger would be classified as A. an agent/employee. B. a principal. C. a gratuitous agent. D. an independent contractor.
D
Shelby was offered a job by Cheatco and she signed an employment contract. She quit her current job, which was quickly filled by her previous employer, and packed up her apartment and moved to the city where the Cheatco job was located. When she arrived at Cheatco headquarters, the executive who had offered her the job told her the deal was off. How can Shelby best mitigate her damages? A. File her lawsuit as soon as possible while the evidence is available and witnesses' recollections are fresh B. File for unemployment insurance as quickly as possible so that she doesn't sink too far into debt C. Protest outside the Cheatco headquarters to pressure them to give her the job D. Actively seek new employment as soon as possible
D
Which of the following is classified as liquidated damages? A. Alberto, a magician, sued for what he lost in profits for a show as a result of the limo service he used to take him to the arena left his entire magic kit back on the street in front of his hotel. B. Deb paid her rent late and her landlord said that she would have to pay the additional $25 late fee that was specified in her rental agreement. C. Drago agreed to do Trixie's taxes for $500. The day before the taxes were due, Drago told Trixie he was sick of doing taxes and was going on a European vacation. Trixie had to have another tax accountant do her taxes and they charged her $1,000 because it was last minute. D. All of the hypotheticals are examples of liquidated damages.
B
Bev knew that when she was dealing with Kirsten that Kirsten was representing another party in a land purchase, but she did not know whom. This type of agency is a/an A. undisclosed agency. B. partially disclosed agency. C. gratuitous agency. D. disclosed agency.
B.
Austin contracted to paint Nygee's house. Nygee specified a certain brand of paint that she always used on her house. She told Austin that her great grandfather had founded the paint company. Austin secretly used a different brand of paint because he got a half price deal on it and could increase his profits by $1,000. He never told Nygee what he had done. The paint Austin used was similar in quality to what Nygee had ordered, there was no material variation in that, and the job looked good. However, it was not per Nygee's intentions. Nygee found out when she saw the brand of the paint that Austin's secretary had inadvertently typed on the invoice. Nygee refused to pay. Austin has claimed he substantially performed and sued for payment. What result? A. This is substantial performance because the paint is of similar quality. B. This is substantial performance because the job looked good. C. This is substantial performance because there was no material variance. D. This is not substantial performance because Austin did not act in good faith.
D
Elton has contracted with Bennie to purchase his manufacturing business for $10 million. Bennie represented to Elton that he had the "best manufacturing company in North America." After Elton purchased the business, he lost money on it and realized it was definitely not the best company. He sued to avoid the contract based upon misrepresentation. The expert witnesses at trial agree that Bennie's business was not the best in North America. Assuming Bennie's representations above are the ones at issue in the lawsuit, and that Elton reasonably relied on them, what result? A. Elton wins because Bennie's statement was fraudulent misrepresentation. B. Elton wins because Bennie's statement was negligent misrepresentation. C. Elton loses because a buyer has an absolute duty to make a thorough inspection and analysis or they have no breach of contract claim. D. Elton loses because Bennie's statement was puffery.
D
While driving his motorcycle to work in the morning at Hugeco, Fritz, a staff attorney, is not paying attention and swerves onto the sidewalk, runs over Annika's foot, causing her injuries. Annika sues Hugeco under respondeat superior theory. If the court does not permit her lawsuit to proceed because Fritz was on his morning commute, this would be an application of the A. vicarious liability rule. B. undisclosed agency doctrine. C. commute authority rule. D. going-and-coming rule.
D
An independent contractor agent is A. considered an employee of an organization and has the legal protections of an employee. B. considered an employee of an organization and has no legal protections of an employee. C. not considered an employee of an organization but has the legal protections of an employee. D. not considered an employee of an organization and has no legal protections of an employee.
D.
Honest Bill the used car salesman told Fran, a prospective customer, that the car she was considering had only been driven by a little old lady on Sunday and had only 30,000 miles on it. Honest Bill knew this was a lie and that the mileage had been altered, as the car actually had 230,000 miles on it. Which of the following would Honest Bill's actions be if Fran buys the car in reasonable reliance upon his lies and the car breaks down a week after she buys it? A. slander B. trade libel C. product disparagement D. fraudulent misrepresentation
D.
