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Bus Law Final

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Public law controls both disputes between private individuals and their government and disputes involving only private individuals.

False

Statutory law is the supreme law of the land and the foundation for all laws in the United States.

False

Reasonably definite terms are one of the elements of an offer.

True

Legal assent involves _______ that the courts will require the parties to obey. A. a promise B. a special agreement C. bilateral assent D. contractual affirmance E. legal affirmance

Constitutions and statutes always cover all of the detailed rules that affect business and government relations.

False

Which of the following refers to the ability to understand the structure of what someone is saying and then apply a set of criteria to evaluate its worth? A. Absolute skills B. Critical-thinking skills C. Cost-benefit skills D. Reviewability skills E. Traditional lawyer skills

Without legal assent a contract may be found to be _______ by the courts. A. illegal B. void C. irregular D. implied E. voidable

A contract is said to be ___________, once all the terms of the contract have been fully performed. Executory Executed Anticipatory Ended Stopped

Executed

Intent to deceive may not be inferred when a fraudulent misrepresentation is at issue.

False

Mistakes in contract law result from untrue statements made by one party to the contract.

False

Model or uniform laws are a source of law that are binding on courts.

False

The US legal system has one main court system.

False

The rules about legal assent were developed to show courts which party is at fault in a contract dispute.

False

A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules describing what behavior is permitted and encouraged in their community. These rules are what we refer to as the _______. Electoral college Community standard Democratic validation Stare decisis Law

Law

If a[n] _____________ misunderstanding between the parties exists, and as a result of that misunderstanding the parties do not really come to a meeting of the minds, there is no contract. Mutual Unilateral Comprehensive Subjective Reasonable

Mutual

A bond used as bail in a criminal case is a recognizance, which is an example of a formal contract.

True

Business law consists of the enforceable rules of conduct that govern commercial relationships.

True

Fraudulent misrepresentation is also referred to as intentional misrepresentation.

True

If a quasi-contract is imposed, the amount of damages for a breach is based upon the fair market value of any service provided to the defendant.

True

In rem jurisdiction is jurisdiction over property.

True

In some cases, the U.S. Supreme Court functions as a trial court of limited jurisdiction.

True

Long arm statutes require minimum contacts to serve out-of-state defendants.

True

Only the offeree (or his or her agent) to whom an offer is directed can accept the offer.

True

The statement of fact need not be an actual assertion for fraudulent misrepresentation to be the basis for a contract rescission.

True

Under the common law, the basic requirements for a valid acceptance parallel those of a valid offer.

True

Under the mailbox rule, a valid contract is formed if a rejection is dispatched, but before the rejection is received, the acceptance has already been mailed (sent) to the offeror.

True

Which of the following refers to special relationships in which one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person? Duress Master manipulation Undue influence Special relationship Dominating influence

Undue influence

When there is a law that prohibits the courts from enforcing a valid contract, it may be valid but _____________. Executed Executory Unenforceable Novated Condoned

Unenforceable

Although there are some exceptions, a[n] _______ mistake does not generally void a contract. Unclear Mutual Unilateral Clear Single

Unilateral

All contracts can be categorized as either ___________ or __________. Unilateral; complete Unilateral; trilateral Bilateral; trilateral Unilateral; bilateral Bilateral; complete

Unilateral; bilateral

_______ law cases involve either two individuals or two organizations. Civil Legal realism Criminal Precedent Public

civil

Tim decides that he is in desperate need of money and decides to rob a bank. He is caught and arrested. What type of law would be applied to him when brought to trial? Civil Procedural Tort Consumer Criminal

criminal

made or availing against or affecting a thing, and therefore other people generally; imposing a general liability.

in rem

A[n] _______ misrepresentation results from a false statement about a fact material to an agreement that the person making the statement believed to be true. unilateral purposeful innocent wrongful illegal

innocent

allows for a court to obtain personal jurisdiction over an out-of-state defendant on the basis of certain acts committed by an out-of-state defendant, provided that the defendant has a sufficient connection with the state.

long-arm statute

Pedro intentionally failed to provide Anda with pertinent information that was material to a projected contract they were about to enter into. This is known as _______. manipulation nondisclosure intentional deceitfulness purposeful availment enforcement

nondisclosure

_______ theory in contract law, means that the existence and interpretation of the contract is based on the outward manifestations of intent by the parties. Appearance Objective Subjective Bilateral Communication

objective

the law of relationships between individuals and the government.

public law

Georgia and Dillard are both confused about a material fact in their current contract. Either party can choose to _______ the contract at this point. rescind realign unilaterally rewrite disclaim discard

rescind

written law passed by a body of legislature. This is as opposed to oral or customary law; or regulatory law promulgated by the executive or common law of the judiciary.[1] Statutes may originate with national, state legislatures or local municipalities.

statute

A contract is ______ for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty. A. a promise or set of promises Correct B. an offer and acceptance C. an offer only D. obligations on only one party E. legal objective

Cooper sues Company A in state court in South Carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of Company A rear-ended his pickup truck. Company A is incorporated in Delaware, has its headquarters in New York, but does a substantial amount of business in South Carolina. Claiming diversity of citizenship, Company A seeks removal to federal district court, but Cooper opposes the motion. Which of the following is true regarding whether the case may be properly removed to federal district court? A. The amount in controversy satisfies diversity requirements; and if Company A's nerve center is in a state other than South Carolina, then the case may be properly removed to federal court. B. The amount in controversy satisfies diversity requirements; and because Company A is incorporated and has its headquarters in a state other than South Carolina, the case may be properly removed to federal court. C. Because the amount in controversy satisfies diversity requirements and Company A is incorporated in a state other than South Carolina, the case may be properly removed to federal court regardless of where Company A's headquarters, nerve center, or principal place of business is located. D. Because the amount in controversy satisfies diversity requirements and Company A is headquartered in a state other than South Carolina, the case may be properly removed to federal court regardless of where Company A is incorporated and regardless of the location of its nerve center. E. Because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of Company A, the case may not be removed to federal court.

Dr. Tanaka was served with a malpractice lawsuit based on allegedly removing the wrong organ. Following discovery, it becomes clear that the plaintiff has no credible evidence against the doctor, and that no reasonable jury could rule in the plaintiff's favor. How should Dr. Tanaka's lawyer proceed? A. The lawyer should make a motion for summary judgment. B. The lawyer should make a motion for additional discovery. C. The lawyer should make a motion to amend the answer in order to make a motion to dismiss. D. The lawyer should file a motion for judgment on the pleadings. E. The lawyer should proceed to trial.

If someone has failed to live up to a promise made to a business organization, the business organization should: A. Seek a legal remedy within the courts B. Ask the lawmakers to impose a punishment upon the violation C. Publicly shame the violator for breaking his promise D. Turn to the executive branch to impose legal penalties E. Ask lawmakers and the executive branch to impose consequences

In order for a federal court to hear a case involving a federal question, the amount in controversy must be at least _______. A. No amount is needed B. $75,000 C. $80,000 D. $90,000 E. $100,000

The president issued an executive order requiring that every citizen purchase a head of broccoli to eat once a week in order to maintain health. The executive order was challenged and the case went to the U.S. Supreme Court. The Supreme Court declared the executive order could not be enforced because it was an abuse of the president's power. What is the primary source of law the Supreme Court would interpret to determine if the executive order was enforceable? A. The Constitution B. State statutes C. Case law D. Uniform laws E. Executive orders

Which areas of business law would a human resources manager find most relevant? A. Contracts, employment and labor law, and employment discrimination B. Contracts only C. Contracts and labor law, but not employment discrimination D. Employment and labor law, but not contracts E. Human resource managers hold administrative positions and are not concerned with areas of business law

Which of the following do appellate courts primarily handle? A. Questions of law B. Questions of fact C. Questions of law and fact D. Cases when they initially enter the legal system E. Questions of law and fact, and also cases when they initially enter the legal system

Which of the following is a question of fact? A. Did the vehicle run the traffic light? B. Is premeditation necessary for a first degree murder conviction? C. Is speech protected by the First Amendment? D. What is necessary for service of process? E. What elements should an answer contain?

[Inattentive Driving] Hannah, a first year law student, drove off campus to register for an upcoming conference. Although lawmakers in her state passed a law prohibiting the use of a cell phone while operating a motor vehicle, Hannah was doing just that. When she looked down to pick up a can of soda she dropped, Hannah crashed into the side of Dev's new convertible. A police officer down the street came over to investigate. Hannah explained to him that it was difficult to hold the cell phone in one hand, the soda in the other, and also drive. The officer was not impressed. Dev approached, furious about the significant dent in his new car. Hannah says she has insurance and that she will cover the costs of the whole incident. Dev says that is insufficient; but Hannah says that under case precedent, that is his only remedy. The officer tells Hannah that she must obey duly authorized law, and proceeds to write several citations to her. The law in Hannah's state regulating using cell phones would be classified as which of the following? A statute A type of common law An executive order A uniform law A negative law

A statute

Marshall promises to smuggle illegal drugs for Thor across the border. What is the effect of this contract? A void contract An executory contract An implied contract An executed contract A voidable contract

A void contract

combination of U.S. and international law that covers all contracts, torts, injuries or offenses that take place on navigable waters

Admiralty cases, Maritime Law

Which of the following would fall under the state court's jurisdiction? Admiralty cases Patent and trademark claims Adoption Bankruptcy Federal criminal prosecutions

Adoption

For several months, Yolanda has been picking up Tom's suit at the cleaners on the first Monday of each month. Each month, Tom pays her $25 when she delivers the suit to his office. This month she picks up the suit and delivers it to Tom's office. Tom refuses to pay Yolanda the $25, stating that they did not have a contract. What type of contract did Tom and Yolanda have? An implied contract An express contract A quasi contract A bilateral contract A unilateral contract

An implied contract

governs contracts for the sale (exchange for a price) of goods (tangible, movable objects) and if the contract is for anything else, it falls under the common law.

Article 2

Duress of goods occurs in _______ whenever an illegitimate threat is made to hold on to goods unless a payment is made or an agreement is entered into. China Australia Portugal India Russia

Australia

Adriana Gomez is a newly hired Production Manager for ABC Corporation which manufactures wind turbines. As a new manager, ABC Corp sends Adriana to training to familiarize herself with laws that might impact her work. What laws would most likely impact a production manager? A. White collar crime, contracts, antitrust laws B. Tort law, environmental law, contracts C. Antitrust law, contracts, intellectual property law D. Property law, negotiable instruments, contracts E. Consumer law, international law, employment law

An offeror in a contract is _______. A. the person who receives the offer B. the person who makes an offer C. the person who gives consideration D. a legal agent of a contracting party E. an inquirer

If the parties have entered into a voidable contract, the contract may be _______. A. illegal B. rescinded C. unallowed D. assigned E. rewritten

In what state is XYZ Bank, a federally chartered bank, considered a citizen? A. The bank is considered a citizen of any state in which it is located, meaning any state in which the bank has branches. B. The bank is considered a citizen of the state in which it is located, meaning the state in which its main office, as specified in its articles of incorporation, is located. C. The bank is considered a citizen only of Washington, D.C. D. The bank is considered a citizen only of the state in which it does its largest volume of business. E. The bank is considered a citizen of Washington, D.C. and also of the state in which it does its largest volume of business.

Miko comes to Jamal's law office to ask him about the law in regard to dogs running at large in her neighborhood. Jamal tells Miko that he will research the issue and get back to her. Where should Jamal look first in order to locate applicable law? A. Restatements B. State statutes C. Case law D. Uniform laws E. Executive orders

Which of the following entities would be responsible to make new federal laws? A. State legislatures B. Congress C. Judges D. The federal courts E. The executive branch

Who is the person who agrees to the terms of an offer made by another party? A. Offeror B. Offeree C. Acquirer D. Agreer E. Inquirer

Why is it important to distinguish between unilateral and mutual mistakes? A.Because it determines which contracts are considered fraudulent. B. Because it determines which contracts are voidable. C. Because it determines which contracts lack consideration. D. Because it determines how much may be awarded in damages under a contract. E. Because it determines whether punitive damages may be awarded.

What type of contract is the dog training contract? Bilateral and express. Bilateral and implied. Unilateral and express. Unilateral and implied. Bilateral and unenforceable.

Bilateral and Expressed

Ida and Kwame are both mistaken as to the content within their contract. This type of mistake that is shared by both parties to an agreement is a[n] _______ mistake. A. dual B. unilateral C. mutual D. consensual E. between parties

Jurisdiction refers to: A. A defendant's interest in having an impartial jury preside over a case. B. The plaintiff's interest in having a case heard in district court. C. The courts' power to render binding decisions on parties before them. D. The power of the plaintiff to file a lawsuit in any court of his choosing. E. The power of a defendant to have a case removed to an unbiased court.

Renaldo thought that he was buying a car with air conditioning. The car did not have air conditioning. The mistake was the result of Renaldo not properly looking at the car. This is a[n] _______ mistake. A. unfortunate B. minimal C. unilateral D. bilateral E. singular

Which of the following references the requirement that a contract not be either illegal or against public policy? A. Consideration B. Capacity C. Legal object D. Illegal prohibition E. Ethical requirement

Which of the following was the result on appeal in the Case Opener involving the claim that Michael Jordan owed $5 million based on his agreement to pay the plaintiff's mother on the premise that he was the father, although it was later determined that the child was not his? A. That the agreement to pay $5 million could only be rescinded based on a mutual mistake of fact. B. That the agreement to pay $5 million could only be rescinded based on the mother's fraud. C. That the agreement to pay $5 million could be rescinded based on either a mutual mistake of fact or based on the mother's fraud. D. That the agreement to pay $5 million could not be rescinded because Jordan was aware of a question about his parentage. E. That the agreement to pay $5 million could not be rescinded because Jordan waited too long in which to complain about the contract.

Which country has seven chapters of general provisions for contracts but also has chapters with special provisions for 15 different types of contracts? China France Germany Canada England

China

Civil law and private law

Vivian actively hid a material fact about the condition of the computer she was about to sell Lowell. Which of the following involves the active hiding of the truth about a material fact? Manipulation Condemnation Concealment Realignment Circumstantial

Concealment

Consideration

The term __________________ originated from the days when a contract was literally sealed by a piece of soft wax into which an impression was made. Implied-in-fact contracts Implied-in-law contracts Contracts under wax Contracts under seal Contracts under pressure

Contracts under seal

An agreement consists of _______. A. consideration B. capacity C. coherence D. an offer and acceptance E. a concurrence of the parties

Bethenny, who resides in Rhode Island, breached a contract entered into in Florida with Geraldo. Geraldo successfully obtains a judgment against Bethenny for $150,000 in a Florida state court. Bethenny lives in a nice apartment in Rhode Island, and her only substantial asset is a vacation beach house in North Carolina. Which of the following is true regarding Geraldo's ability to obtain funds from a sale of the beach house? A. Geraldo is only entitled to obtain funds from property located in Florida, the location of the lawsuit, and cannot benefit from the property in North Carolina. B. Geraldo is only entitled to obtain funds from property located in Florida, the location of the lawsuit, or from Rhode Island, Bethenny's domicile, and cannot benefit from the property in North Carolina. C. Geraldo will be able to obtain his judgment from the sale of the beach house in North Carolina through in rem jurisdiction, and he is entitled to keep any funds obtained in excess of amounts owed. D. Geraldo will be able to obtain his judgment from the sale of the beach house in North Carolina through in rem jurisdiction, but he must return to Bethenny any funds obtained in excess of amounts owed. E. Under federal law, Geraldo will only be able to obtain his judgment from the sale of the beach house through in rem jurisdiction if after two years Bethenny has failed to satisfy the judgment, and any sums received in excess of amounts owed to Geraldo go the Federal Housing Administration.

In the Case Opener, Hallmark claimed that an arbitration ruling against a former employee should be upheld. Which of the following was the result of the case? A. The former employee was barred from proceeding in court because of the binding arbitration clause. B. The former employee was barred from proceeding in court based on the statute of limitations which expired while she was pursuing her remedies in arbitration. C. The former employee was allowed to proceed in court because she had exhausted her remedies in the arbitration arena . D. The former employee could proceed with an action in court because there was no consideration for the arbitration agreement and, therefore, no valid agreement. E. The former employee could proceed with an action in court because, as a matter of law, arbitration agreements are barred in the arbitration context.

One purpose of the law is to: A. Allow individuals to impose rules on others B. Require businesses and individuals to rely on the dependability of others C. Enable businesses and individuals to rely on the good will of one another D. Facilitate a sense that change is possible after a rational consideration of options E. Preserve existing social order and prevent change Score

The legal ability to enter into a binding agreement is known as what? A. Majority B. Emancipation C. Contractual knowledge D. Contractual capacity E. Informed consent

When you read a case, you should: A. Find the facts, look for the issue, critically think about the issue, and determine if your reasoning matches the reasoning of the judge. B. Identify the legal issues, apply the facts to the legal issues, and evaluate the reasoning of the judge in light of the facts of the case. C. Consider the truth of the facts of the case, identify legal questions raised, review the decision of the judge, and determine if the judge's decision was justified by the rule of law. D. Find the facts, look for the issue, identify the judge's reason and conclusion, locate the rules of law that govern the reasoning, and apply critical thinking to the judge's reasoning. E. Identify the facts, apply critical thinking skills to determine the truths of the facts, and identify how the judge interpreted the facts in the case.

Which of the following is a definition for consideration? A. Being cordial in the negotiation of contracts. B. Refraining from unethical behavior in the negotiation of contracts. C. Being cordial and refraining from unethical behavior in the negotiation of contracts. D. The bargained-for exchange. E. A contract negotiated in person as opposed to by telephone or e-mail.

Which of the following properly notifies a defendant that they are being sued and explains how and when to respond to a complaint? A. Answer B. Service document C. Court report D. Summons E. Court docket

Which of the following was the result on appeal in Reisenfeld & Co. v. The Network Group, Inc.; Builders Square, Inc.; Kmart Corp., the case in the text involving whether the plaintiff could recover from BSI in the situation in which BSI contracted with Network Group to lease property, and Network Group contracted with the plaintiff agreeing to pay a certain commission for his work but then defaulted on the contract? A. The court ruled that because it was a third-party beneficiary, BSI was required to pay the plaintiff the full amount of the commissions claimed. B. The court ruled that because it was a third-party beneficiary, BSI was required to pay the plaintiff the reasonable value of the services rendered, not necessarily the contractual amount promised for commissions. C. The court ruled that because a quasi-contract was involved, BSI was required to pay the plaintiff the full amount of the commissions claimed. D. The court ruled that because a quasi-contract was involved, BSI was required to pay the plaintiff the reasonable value of the services rendered, not necessarily the contractual amount promised for commissions. E. The court ruled that because the plaintiff did not have a contract with BSI, the plaintiff was entitled to no recovery from BSI.

Zara and Wahid have a lot of money invested with a stockbroker named Dion and also with other brokers. Zara and Wahid decided to divorce. Zara was really interested in investments, so the divorce decree provided that Zara would retain "all investment accounts," and Wahid would receive a "cash settlement" from funds the parties had in the bank. Six months after the divorce was final, it was discovered that Dion had absconded to parts unknown with all the money invested with him. Zara could have withdrawn the funds at the time of the divorce, before Dion left town, but she had no reason for concern and left the funds there for investment purposes. After discovering Dion's wrongdoing, Zara asked Wahid to renegotiate the divorce agreement, but he refused. Which of the following is the most likely result of their dispute if the court follows the decision of the court in Simkin v. Blank, discussed in the text? A. The original divorce agreement will be rescinded, and the parties will be required to renegotiate the agreement because Zara and Wahid were mutually mistaken in regard to investing with Dion. B. The original divorce agreement will be rescinded, and the parties will be required to renegotiate the agreement because the investment accounts with Dion were a significant basis of the divorce agreement, and Dion's fraud caused termination of that contract. C. The original divorce agreement will be rescinded, and the parties will be required to renegotiate the agreement because, regardless of whether or not Dion was guilty of fraud, the end result is that Zara did not receive the benefit of her bargain. D. The original divorce agreement will be enforced only in part because based on their mutual mistake in regard to investing with Dion, the parties will be required to renegotiate the part of the contract involving the investments with Dion. E. The original divorce agreement will be enforced.

A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules describing what behavior is permitted and encouraged in their community. These rules are what we refer to as the _______. A. Electoral college B. Community standard C. Democratic validation D. Stare decisis E. Law

Kellen and Thomas are mistaken as to the facts surrounding their contract. What is absent when a mistake of fact occurs? A. Legal analysis B. Mutual understanding C. Joint participation D. Contractual concurrence E. Legal assent

Patty sued Raphael for hitting her car, alleging that Raphael was texting at the time when the accident happened. Patty did not present hard evidence of texting, such as phone records. The jury held Raphael was not liable for the accident because Patty had not proved Raphael was texting, and that in fact it was Patty who failed to yield to Raphael. Patty should: A. Appeal and try to convince the appellate court that Raphael actually was texting. B. Ask the judge to grant a default judgment because the jury was wrong. C. Ask the Supreme Court to overturn the decision because she made clear Raphael was texting. D. Appeal to federal court to overturn the decision, which was made in state court. E. Move on with her life, as she was unable to convince the jury to side with her on a question of fact.

Regarding European courts, which statement is true? A. European courts are in total disagreement with the reluctance of American courts to interfere with a contract because the value of the item in question has changed since the agreement. B. European courts refuse to assume that parties accept the risk when they make a contract that the value might change later. C. European courts permit rescission of the contract for a mistake of value when the mistake involves more than 10 percent of the value at the time of the contract. D. European courts permit rescission of the contract for a mistake of value when the mistake involves more than 40 percent of the value at the time of the contract. E. European courts permit rescission of the contract for a mistake of value when the mistake involves more than 50 percent of the value at the time of the contract.

Which of the following is true regarding the type of marriage contract discussed in the text called the muta'a? A. It is a type of premarital contract typical to the U.S. in which the parties agree ahead of time how property and assets should be divided in the event of divorce. B. It is a contract by which the female agrees to a divorce if there are no children from the marriage within five years. C. It is a contract by which the female agrees to a divorce if there are no children from the marriage within three years. D. It is a temporary type of arrangement called a "responsibility marriage" in which the female is paid to care for the male's elderly parents. E. It is a temporary type of arrangement called a "pleasure marriage" in which the female is paid for sexual intimacy.

Today's law of contracts originated from judicial decisions in ______. France Italy Spain England Switzerland

England

Some laws have been adopted to help business conduct business online. Cyberlaw is based primarily on _______. International law Administrative law Existing law Natural Positive

Existing law

"Legal positivism" is also known as "natural law."

False

An invitation to negotiate is an offer because it expresses a willingness to be bound by acceptance.

False

An offeror has no legal right to revoke an offer before receiving a reply to their offer.

False

Any person can bring a case to court if they believe they have been harmed.

False

Bilateral contracts are a promise plus a requested action.

False

Courts interpret contracts using both objective and subjective standards.

False

Criminal law lays out the rights and responsibilities implied in relationships between persons.

False

Due to increasing globalization, the International Commercial Code is important to contract law.

False

For fraudulent misrepresentation to be the basis for a contract rescission, the statement of fact must in writing.

False

If a potential juror's response to a question indicates bias, an attorney should use a peremptory challenge to remove the juror.

False

If an offeree makes a mistake and sends an acceptance to the wrong address, there is an acceptance upon dispatch.

False

If both parties are mistaken about a material fact, the mutual mistake does not void the contract.

False

If the means by which an acceptance can be communicated to the offeror is expressly stated in the offer, it is called an "implied authorization."

False

If the offeror dies, the offer terminates after notice of the offeree's death or after 10 days, whichever comes first.

False

In relation to contracts, the term "consideration" pertains to parties acting in an ethical manner.

False

In the absence of a time condition in either offer, an offer by a retailer to purchase seasonal goods from a wholesaler would lapse later than an offer to purchase goods that could easily be sold all year long.

False

It is not necessary to show reliance to prove fraudulent misrepresentation.

False

Juries decide questions of law.

False

Only civil law regulates the behavior of individuals.

False

Only one party may appeal from a final judgment.

False

The active hiding of the truth about a material fact is called nondisclosure.

False

The definition of a contract is any two promises.

False

The mirror-image rule says that terms of an acceptance can slightly be changed in order to benefit both parties.

False

There is no requirement that enrichment be unjust in order to recover under quasi-contract.

False

Under federal statutory law, Internet transactions cannot ever be the basis for a finding of in personam jurisdiction.

False

When courts overturn precedent and create new precedent, they are obeying the principle of stare decisis.

False

Barette and Julianna agree in writing to buy and sell a piece of property. All the terms are completed except that Julianna has not paid the required $50,000 purchase price. What type of contract is this? Executed and implied Formal and executory Informal and executed Formal and executed Informal and executory

Formal and executory

A[n] _______ is a false representation of a material fact that is consciously false and intended to mislead the other party. Negligent misrepresentation Fraudulent misrepresentation Scienter misrepresentation Acknowledged misrepresentation True misrepresentation

Fraudulent misrepresentation

Laws which enable the court to serve a defendant outside the state as long as the defendant has sufficient minimum contacts within the state and it seems fair to assert jurisdiction are called ______. Minimum contact statutes Significant contact statutes Long-arm statutes In rem statutes Quasi in rem statutes

Long-arm statutes

A nonresident defendant's connections with the forum state (i.e., the state where the lawsuit is brought) that are sufficient for jurisdiction over that defendant to be proper.

Minimum contact requirements

The reasoning in innocent misrepresentation cases resembles the reasoning in a[n] _______ case. Duress Unilateral mistake Mutual mistake Fraudulent misrepresentation Negligent misrepresentation

Mutual mistake

Jill hires Bob to deliver flowers to local customers. If Bob and Jill get into a dispute in regards to Bob's expenses and salary, what type of law would govern the dispute? Private Joint Criminal Public Common law

Private

a branch of the law that deals with the relations between individuals or institutions, rather than relations between these and the government

Private Law

A national restaurant chain must pay damages for breach of contract to a cooking oil supplier. What type of law is involved? Public law only Private law only Civil law only Public, private, and civil law Private law and civil law

Private law and civil law

If a manufacturing plant continues to allow toxins above the legal limit to escape into the atmosphere in violation of state law, which law is implicated? Private Common law Criminal Public Black letter

Public

Public law and criminal law

This type of contract is sometimes referred to as an implied-in-law contract but are not actually contracts. Fictional-contracts Quasi-contracts Implied-in-fact contracts Expression contracts or implied-in-fact contracts Simple contracts and quasi-contracts

Quasi-contracts

A[n] _______________ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so. Contract under seal Voidable contract Recognizance Implied-in-fact contract Informal contract

Recognizance

An obligation of record entered into before a court or officer duly authorized for that purpose, with a condition to do some act required by law, which is therein specified.

Recognizance contract

Gloria makes a representation about a car on the showroom floor but actually has no knowledge as to whether her claim is false or not. Gloria does not have _______. scienter purpose preformed thoughts premeditation common sense

Scienter

legal term for intent or knowledge of wrongdoing. An offending party then has knowledge of the "wrongness" of an act or event prior to committing it.

Scienter

Yasmeen offered to sell Dylan a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. However, there was a problem with the book; it was several editions old. Dylan was not aware of that fact, and neither was Yasmeen. When Dylan took the book to class and realized the problem, he went back to Yasmeen requesting a refund. Yasmeen refused to return his money. She claimed that she did not commit fraud because subjectively she thought that the book was correct, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class. Which of the following would describe Yasmeen's role in the transaction? She was the offeror. She was the offeree. She was the assentor. She was the assentee. She was the offeree and the assentee.

She was the offeror.

Generally, when determining whether a contract exists the ________ intent of the parties is not relevant; rather, what matters is how they represented their intent through their actions and words. Objective Subjective Unilateral Comprehensive Considered

Subjective

A contract for the sale of a good falls under Article 2 of the UCC.

True

A defendant who believes that he or she has a claim against the plaintiff would include a counterclaim with the answer.

True

An erroneous belief about the facts of the contract at the time the contract is concluded is called a mistake of fact.

True

Another name for case law is common law.

True

Any contract that is not a formal contract is an informal contract, also called a simple contract.

True

Case law interpretations are law, unless they are revoked later by new statutory law.

True

Concurrent federal jurisdiction means that both state and federal courts have jurisdiction over a case.

True

Contract law comes from case law, the Uniform Commercial Code and the United Nations Convention for the International Sale of Goods.

True

Contracts, employment decisions and payments to suppliers are protected by business law.

True

Critics of the adversarial system cite time and expense of a lawsuit along with damage to reputations as some of the drawbacks of litigation.

True

Generally, neither the European courts nor the U.S. courts will interfere with a contract just because the value of the item in question has changed since the agreement.

True

Gordon, Melinda's long-time attorney, uses his position as her attorney to persuade her to sign over her property to Gordon's best friend Bartholomew. This is undue influence.

True

If an offer authorizes certain means of acceptance, use of an unauthorized means of acceptance is acceptable but the contract is not formed until the acceptance is received by the offeror.

True

If the offeror becomes incapacitated or dies, the offer immediately terminates.

True

Implied-in-law contracts are not actually contracts but are to help prevent unjust enrichment.

True

Presidents base the power to issue executive orders on Article II, Section 3 of the Constitution, which establishes the constitutional power of the president to "take care that the laws be faithfully executed."

True

Scienter is present when the party accused of making the fraudulent assertion believed that the assertion was false or made the claim without any regard for whether it was true or false.

True

Subject-matter jurisdiction is a court's power to hear certain kinds of cases.

True

The Restatement (Second) of the Law of Contracts is not actually the law itself.

True

The decision of a state supreme court is binding on a lower court that is located in the same state.

True

The number of circumstances under which silence can be an acceptance are limited.

True

The purpose of a covenant not to compete, in the employer/employee context, is to restrict what an employee may do after leaving a company.

True

The response that the offeror expects from the offeree determines whether a contract is bilateral or unilateral.

True

There are many purposes of the law. One such purpose is serving as a moral guide by indicating minimal expectations of citizens and organizations.

True

Threatening physical harm or extortion to gain consent to a contract is classified as duress.

True

To minimize extra costs, businesses will sometimes include in their contracts a forum selection clause.

True

Today, courts hold that once an offeree begins performance on a unilateral contract, the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.

True

Usually the issue of ripeness arises when one party claims that a case is moot.

True

When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it, a negligent misrepresentation results.

True

If one or both of the parties have the ability to either withdraw from the contract or enforce it, without breaching the contract, the contract is ______________. Voidable Executory Implied Executed Void

Voidable

Patrick and Britt are in agreement that Patrick will pay Britt $2,000 for a used vehicle. At what point is there a binding contract? When the agreement is made. When the money is paid. When the car is delivered. Ten days after the car is delivered and approved. Twenty days after the car is delivered and approved.

When the agreement is made

A new type of hydraulic fracturing ("fracking") has been implemented to help bring more natural gas to a well site. The company associated with this process has followed all federal and state guidelines associated with the process of fracking. Residents however are very unhappy and vocal about the process of fracking and fights have broken out amongst the resident's and workers. Resident's demand the company be shut down. A new law was implemented that is designed to help keep the peace yet look at alternatives to the fracking process. The purposes of the new law include: a.Providing order, serving as a moral guide, serving as an alternative to fighting, facilitating a sense that change is possible b.Creating enforceable rules of law which change the way that the manufacturing process must be changed c.Providing new rules that would allow for civil disobedience d.Setting new rules and guidelines that would allow for protests to happen on the fracking site e.Guaranteeing the personal freedoms of the company to continue fracking as long as they were doing so within state and federal guidelines

As described in the text, which statement is true regarding consumers and Japanese law? a.A special Consumer Contracts Law was developed to place consumers and businesses on a more equal footing in transactions. b.The Civil Code has more lax requirements regarding fraud than the country's Consumer Contracts law. c.The goal in regard to consumers is to form the law so that in litigation businesses are at a distinct disadvantage in regard to consumers. d.In order to encourage economic advancement and international investment, the goal is to form the law so that in litigation consumers are at a distinct disadvantage in comparison to businesses. e.Japanese law does not recognize rights of consumers as the buyer must beware.

If a defendant states that the contract was not in "proper form," in contract law this means which of the following? a. The agreement lacked a writing. b. The contract lacked capacity. c. The contract lacked the legally binding UCC paperwork. d. The contract lacked consideration. e. The contract was not made to specifications of the common law.

If a victim of assault does not want the abuser arrested but the prosecutor brings charges anyway since the assault violated criminal laws, the reason for the prosecutor's actions is: a.A violation of criminal laws is an act against the public as a whole. b.The abuser has committed a civil law violation in addition to a criminal one. c.Private law has been violated and the prosecutor has a duty to act. d.Natural law has been violated and the prosecutor has a duty to act. e.The prosecutor's responsibility is to regulate disputes between private individuals under criminal law.

In In Re Zappos.com Inc., Customer Data Security Breach Litigation, the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos, what was the result of the case? a.The court ruled for the plaintiffs for the following two reasons: (1) there was no contract because the plaintiffs did not assent to it, and (2) even if a contract existed, the contract was illusory and unenforceable because Zappos could avoid promises at any time. b.The court ruled for the plaintiffs only because of its finding that no contract existed based on the plaintiffs' lack of assent. c.The court ruled for the plaintiffs only because of its finding that the contract was illusory and unenforceable because Zappos could avoid promises at any time. d.The court ruled in favor of Zappos on the basis that even though some provisions of the contract were unenforceable, because of the federal policy favoring arbitration agreements, the arbitration clause itself was enforceable. e.The court ruled in favor of Zappos on the basis that the contract was properly entered into and was fully enforceable.

In determining whether a mistake of fact occurred, which of the following is true? a.Courts look to determine whether a mistake of fact occurred at the time the contract was concluded. b.Courts look to determine whether a mistake of fact occurred during contract negotiations. c.Courts look to determine whether a mistake of fact occurred when the initial offer was made. d.Courts look to determine whether a mistake of fact occurred when an advertisement was made. e.Courts look to determine whether a mistake of fact occurred after the contract was concluded.

Monica and Omar talk about the fact that a new teacher is being hired for business law at their school. Omar mentions that he does not yet have a book, and Monica agrees to sell Omar a used business law book for $30 for the upcoming semester. When the new semester begins, the new business law teacher announces that a new custom business law text will be used that is only available in the campus bookstore. Omar wants a refund. Which of the following is Monica's best defense? a.That Omar knew of the change of teacher and bore the risk of mistake. b.That only a unilateral mistake was involved on Omar's behalf because Monica was aware of the change and, therefore, Omar is not entitled to a discharge. c.That a mutual mistake was involved and that Omar is, therefore, not entitled to a refund. d.That transactions involving goods are not subject to the defense of mistake. e.That she did not commit fraud and, therefore, Omar is not entitled to rescission.

Of the following, which was introduced by prominent legal scholars who were recruited by the American Law Institute? a. The Restatement of the Law Second, Contracts. b. The Convention on Contracts for the National Sales of Goods. c. Common law. d. Common law and the Convention on Contracts for the International Sale of Goods. e. The Convention on Contracts for the National Sales of Goods and the Restatement of the Law Second, Contracts.

What was the result in the Peerless case discussed in the text in which there were two ships named Peerless and the parties disagreed over which ship was the subject of the contract? a The court rescinded the contract. b.The court ruled that the older ship would be identified to the contract. c.The court ruled that the newer ship would be identified to the contract. d. The court ruled that the defendant would be allowed to choose which ship would be identified to the contract. e. The court ruled that the plaintiff would be allowed to choose which ship would be identified to the contract.

Which of the following is the reason the Uniform Commercial Code was drafted? a.Different states had different laws governing contracts which did not result in a smooth flow of interstate commerce. b. Some states had no law governing contracts. c. Federal law governing contracts was difficult to apply. d. The Uniform State Act on laws was not working. e. The Restatement of the Law Second, Contracts was not being evenly and fairly applied.

Which of the following is true on appeal regarding the case of Mary W. Scott v. Mid-Carolina Homes, Inc., discussed in the "Case Nugget" in which the plaintiff sued to recover damages after a salesperson allegedly mistakenly agreed to sell a mobile home to her for a price that was too low, later told her the mobile home could not be sold because of a bent frame, and then proceeded to sell it for a higher price to other buyers? a. The court refused to find that the defendant had the right to rescind the contract based on the alleged unilateral mistake. b. The court refused to find that the defendant had the right to rescind the contract because a mutual mistake was involved. c. The court found that the defendant had the right to rescind the contract because, even though the salesperson acted questionably, the plaintiff had not made a down payment. d. The court ruled that the defendant had the right to rescind the contract because a unilateral mistake was involved. e. The court ruled that the defendant had the right to rescind the contract because a mutual mistake was involved.

Which of the following is true regarding the effect of an innocent misrepresentation on a contract? a. It permits the party that was misled by the false statement to rescind the contract, but damages are not available. b. It permits the party who made the false statement to rescind the contract. c. It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract. d. The contract is automatically void and of no effect, and the party who was misled may recover damages. e. It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract, and it also makes the contract void and of no effect.

Will a plaintiff be allowed to assert jurisdiction over a defendant in the plaintiff's state for a cause of action arising out of the defendant's website? a. It depends on the nature and quality of commercial activity that an entity conducts over the Internet. b. Yes, for any type of action. c. Yes, but only if the defendant consented to jurisdiction in the plaintiff's home state. d. Yes, but only if the defendant has actually physically been in the plaintiff's home state within the 180 days prior to the filing of the complaint. e. No, not under any circumstances.

[Pet Pig Farm] Jen was interested in buying Monique's land in order to breed small pet pigs. Jen told Monique that having water on the property was very important although she did not mention to Monique her plan to breed small pigs. Monique assured her that a spring ran through one corner of the property. Therefore, Jen agreed to buy the farm. Jen, who loved pigs, assumed that the neighbors would be pleased with the pigs being in the area. Monique also agreed to sell Jen a used truck for $5,000. After the contract for the land sale was entered into, Jen had a land survey done, and it was discovered that the spring did not actually run through the corner of Monique's property. The area in which the spring ran belonged to a neighbor. Additionally, when Monique brought Jen the used truck, Jen said, "That's not the truck!" It was discovered that Monique, who had two trucks, thought that Jen had bought the older truck although Jen thought she had purchased the newer truck. Jen was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Jen for nuisance. It will cost Jen more than she had agreed to pay Monique in order for Jen to obtain a similar farm that has a spring within its legal boundaries. Which result is most likely in the dispute between Jen and Monique regarding which used truck was sold, assuming that both Jen and Monique were innocently mistaken and did not intend to defraud the other? a.The contract will be rescinded. b.Jen will be allowed to pick the truck she wants to buy because she is the buyer, and she may also recover damages. c.Monique will be allowed to pick the truck she wants to sell because she is the seller. d.Jen will be allowed to pick the truck she wants to buy because she also had a contract on the ancillary farm. e.Jen will be allowed to pick the truck she wants to buy because she is the buyer, but she may not recover damages.

[The Stolen Laptop] Ricardo told Ashley that Bob stole her laptop computer from her car. The next day, Ashley confronted Bob and slapped him for stealing her laptop. Bob had Ashley arrested for slapping him, and the local district attorney prepared to prosecute Ashley on behalf of the state. Ashley sued Bob for damages to the laptop and for maliciously having her arrested. Bob also sued Ricardo for defamation, claiming Ricardo lied to Ashley about Bob stealing the laptop. Which statements are true regarding Ashley's claim against Bob for damages involving the laptop and her claim that Bob maliciously had her arrested? a. The claim for damages involving the laptop and also the claim that Bob maliciously had her arrested are civil claims involving private law. b. The claim for damages involving the laptop is a civil claim involving private law, but the claim that Bob maliciously had her arrested is a civil claim involving public law. c. The claim for damages involving the laptop is a civil claim involving private law, but the claim that Bob maliciously had her arrested is a criminal claim involving public law. d. The claim for damages involving the laptop is a civil claim involving private law, but the claim that Bob maliciously had her arrested is a criminal claim involving private law. e. The claim for damages involving the laptop and also the claim that Bob maliciously had her arrested are criminal claims involving private law.

In the U.S., which of the following are the two most important sources of contract law? a. Case law and the Restatement of Law, Contracts. b. Case law and the Uniform Commercial Code. c. The Uniform Commercial Code and the United Nations Convention on Contracts for the International Sale of Goods. d. Case law and the United Nations Convention on Contracts for the International Sale of Goods. e. The United Nations Convention on Contracts for the International Sale of Goods and the Restatement of the Law, Contracts.

Jill and Joe are in business and designed a new technology in which they received a patent from the U.S. Patent and Trademark Office. Both Jill and Joe are New Mexico residents but spend the summer months in Minnesota. They find out a competitor has violated their patent. In which court would they want to bring a lawsuit? a. The New Mexico state court only b. The Federal District Court c. The Minnesota state court only d. Either the New Mexico or Minnesota state court e. Either a state or a federal court

Which of the following is the most likely measure of recovery when a quasi-contract is involved? a.The amount set forth in the contract. b.The fair market value of the matter involved. c.The wholesale price of any good involved. d.The amount sought by the plaintiff in the Complaint. e.Damages will be computed the same way as they are computed for any other contract.

[Refusal to Pay] Business law teacher Allison needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Karina who agreed to trim some shrubbery for $40. Another student, Brendan, went to mow Allison's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Allison refused to pay Brendan because she said that he had upset the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Allison was glad about the dog bite because she felt it gave her a reason not to pay. Brendan refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Karina refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started the work. Which of the following is correct regarding Karina's statement that there was no contract? a. Karina is correct. There was no contract because she had not started working. b.Karina is incorrect because there was a bilateral, express agreement. c. Karina is incorrect because there was a bilateral, implied agreement. d. Karina is incorrect because there was a unilateral, express agreement. d. Karina is incorrect because there was a unilateral, implied agreement.

A[n] ______________ contract is commonly defined as a promise in exchange for a promise. Unilateral Trilateral Complete Bilateral Classified

bilateral

Bertrand sends an email to Lowell asking him if he would like to co-author a book. Lowell agrees and requests a $10,000 advance for the first three chapters. Bertrand sends him the money. Classify the contract. a. The contract is voidable, express, and executed. b. The contract is void, implied, and executory. c. The contract is express, bilateral, and executory. d. The contract is implied, executed, and valid. e. There is not a valid contract.

Minimum contact requirements: a. Are the same in every state. b. Are used to define what personal service means. c. Were established in International Shoe Co. v. State of Washington. d. Prevent a defendant from ever being served while out-of-state. e. Do not include committing a tort within a state

Tulume argues with Brenda that the law of contracts is primarily statutory law.Is he correct? a. No, the law of contracts is known as comprehensive law. b. Yes, statutory law is the primary law of contracts. c. No, the common law is the primary law of contracts. d. No, the restated contracts cases are the primary law of contracts. e. No, there is no primary source of contract law, it is a big mixture of different bodies of law.

he state court system has exclusive jurisdiction over _______. a.Admiralty cases only b.Bankruptcy cases only c.Adoption and divorce cases d. Admiralty, bankruptcy, and copyright cases e. The state court system has no exclusive jurisdiction

After a court action brought by Mary, Mary was awarded $1,000 in damages from Stanley because she proved by a preponderance of the evidence that Stanley damaged her bicycle. What type of law applied to Mary's case that resulted in her being awarded $1,000? Criminal Procedural Civil Natural Positive

civil

Bob and Tom were in a car accident on a street within Normandy city boundaries. Bob was ticketed for driving under the influence (DUI). This was Bob's third DUI. Tom sustained bodily damages and damage to his vehicle. If Bob is sued by Tom and the city of Normandy: a.Bob will be sued under the criminal laws only of Normandy by both parties. b.Bob will be sued under the civil laws of Normandy only by both parties. c.Bob will be sued by Tom under the criminal laws of Normandy and the civil laws of Normandy by the city's prosecutor. d.Bob will be sued by Tom under the civil laws of Normandy and the criminal laws of Normandy by the city's prosecutor. e.Only Tom would be able to be sue Bob because of the accident.

If a defendant is a corporation: a.No service of process is required. b. Only the president of a corporation can be served. c. Only the agent of the corporation can be served. d, Generally either the president of the corporation or an agent can be served. e. The corporation does not have to receive service.

Quinton is 15 years old and pays cash to purchase a laptop computer from Brittany's Used Laptops. Quinton uses the computer for a week and then decides he wants a different laptop and returns the laptop to the store. Brittany tells Quinton that she will not allow Quinton to return the laptop. Quinton says she must. Is Quinton correct? a.No, Quinton paid cash for the laptop and he does not have the right to return it. b.No, Quinton has no right to return the laptop because he used the laptop. c.Yes, Quinton is correct, contracts with minors are always void. d.Yes, Quinton is correct, contracts with minors are voidable at the minor's option. e. Yes, Quinton is correct, contracts with minors are illegal.

The federal court system has exclusive jurisdiction over _______. a.Admiralty cases only b.Bankruptcy cases only c. Federal copyright cases only d.Admiralty, bankruptcy, and federal copyright cases e. The federal court system has no exclusive jurisdiction

Valerie promised to buy Nicole's car for $2,000. Nicole drew up the contract providing that the exchange would occur the next week. Unfortunately, Nicole was not very good with the keyboard and typed in $1,200 as the price of the car. Valerie noticed that the contract said $1,200, not $2,000, and was very pleased. She signed it without saying anything. When it was time to make the exchange, Valerie gave Nicole $1,200. In response to Nicole's inquiry regarding the additional $800, Valerie pulled out the contract and showed her that it said $1,200. Nicole immediately responded that she had made a typographical error. Valerie said that there was no mistake on her part because she knew exactly what she was doing and that she thought that Nicole had decided to give her a deal on the car. Which of the following is Nicole's best argument for a rescission of the contract? a.That a unilateral mistake was involved and that courts typically allow relief in situations involving unilateral mistakes as opposed to mutual mistakes. b.That the mistake resulted from a sale of goods, as opposed to the provision of services, and that courts are more likely to grant relief for a mistake when actual physical work is not involved. c.That because a bilateral contract, as well as a unilateral mistake, was involved, most courts would grant relief. d.That the mistake resulted from an accidental clerical error and that it would be unconscionable to enforce the contract. e.That duress was involved because of Valerie's wrongful behavior.

Which of the following are examples of formal contracts? a.Contracts under seal, but not executed contracts or letters of credit. b.Executed contracts, but not contracts under seal or letters of credit. c.Letters of credit and contracts under seal, but not executed contracts. d.Contracts under seal and letters of credit, but not executory contracts e. Contracts under seal, letters of credit, and executed contracts.

Which of the following is true about void and voidable contracts? a. Either party can terminate the contract at any time as long as additional consideration is paid. b. Both contracts are illegal and the consideration for the contract must be returned to the other party. c. Both parties must agree to terminate a void or a voidable contract because otherwise there would be no privity of contract and a court would not uphold it anyway. d. A void contract is not a contract at all; a voidable contract can be terminated by one party. e. Both contracts must be in writing.

[Book Sale] Yasmeen offered to sell Dylan a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. However, there was a problem with the book; it was several editions old. Dylan was not aware of that fact, and neither was Yasmeen. When Dylan took the book to class and realized the problem, he went back to Yasmeen requesting a refund. Yasmeen refused to return his money. She claimed that she did not commit fraud because subjectively she thought that the book was correct, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class. Which analysis of the effect of the discovery that Dylan has a book that is not appropriate for the class would be correct? a. Dylan is stuck with the book because he objectively agreed to purchase it. b. Dylan is stuck with the book because Yasmeen did not commit fraud. c. Dylan is stuck with the book because Yasmeen subjectively thought it was the correct book, and Dylan did not openly disagree before the contract was executed. d. Because the parties had a mutual misunderstanding, the parties did not come to a meeting of the minds, and there is no contract. e. Because both parties were mistaken, at Dylan's option he may return the book; but only half of the purchase price would be required as a refund from Yasmeen because she is not guilty of fraud.

[Book Sale] Yasmeen offered to sell Dylan a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. However, there was a problem with the book; it was several editions old. Dylan was not aware of that fact, and neither was Yasmeen. When Dylan took the book to class and realized the problem, he went back to Yasmeen requesting a refund. Yasmeen refused to return his money. She claimed that she did not commit fraud because subjectively she thought that the book was correct, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class. Which of the following is true regarding Yasmeen's claim that she subjectively believed the book was an appropriate edition and that an enforceable contract, therefore, existed? a. She is correct because contract law is based upon a subjective theory of contracts. b. She is correct because her genuinely held belief establishes that she did not commit fraud. c. She is correct because agreements for the sale of goods are based on a subjective theory. d. She is incorrect because her subjective belief would not be the basis for a determination of whether the contract would be enforced in this case and also because fraud is not necessary in order to find a breach of contract. e. She is correct but only if Dylan subjectively believed the same as she did.

[Pet Pig Farm] Jen was interested in buying Monique's land in order to breed small pet pigs. Jen told Monique that having water on the property was very important although she did not mention to Monique her plan to breed small pigs. Monique assured her that a spring ran through one corner of the property. Therefore, Jen agreed to buy the farm. Jen, who loved pigs, assumed that the neighbors would be pleased with the pigs being in the area. Monique also agreed to sell Jen a used truck for $5,000. After the contract for the land sale was entered into, Jen had a land survey done, and it was discovered that the spring did not actually run through the corner of Monique's property. The area in which the spring ran belonged to a neighbor. Additionally, when Monique brought Jen the used truck, Jen said, "That's not the truck!" It was discovered that Monique, who had two trucks, thought that Jen had bought the older truck although Jen thought she had purchased the newer truck. Jen was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Jen for nuisance. It will cost Jen more than she had agreed to pay Monique in order for Jen to obtain a similar farm that has a spring within its legal boundaries. Assuming that Monique made a fraudulent misrepresentation regarding the spring running through the corner of the farm knowing the statement was not correct, which of the following is true, considering only the lack of a spring issue, if Jen does not want to go through with the sale? a.Jen may rescind the contract and recover compensatory damages. b.Jen may rescind the contract, but she may not recover damages. c.jen may sue for damages, but she may not rescind the contract. d.Jen may rescind the contract, or she may keep the contract and sue for damages. e.Jen must allow Monique an opportunity to cure, or fix, the problem; and in the event that is not done, she may not rescind the contract although she can sue for damages.

[Pet Pig Farm] Jen was interested in buying Monique's land in order to breed small pet pigs. Jen told Monique that having water on the property was very important although she did not mention to Monique her plan to breed small pigs. Monique assured her that a spring ran through one corner of the property. Therefore, Jen agreed to buy the farm. Jen, who loved pigs, assumed that the neighbors would be pleased with the pigs being in the area. Monique also agreed to sell Jen a used truck for $5,000. After the contract for the land sale was entered into, Jen had a land survey done, and it was discovered that the spring did not actually run through the corner of Monique's property. The area in which the spring ran belonged to a neighbor. Additionally, when Monique brought Jen the used truck, Jen said, "That's not the truck!" It was discovered that Monique, who had two trucks, thought that Jen had bought the older truck although Jen thought she had purchased the newer truck. Jen was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Jen for nuisance. It will cost Jen more than she had agreed to pay Monique in order for Jen to obtain a similar farm that has a spring within its legal boundaries. Assuming that Monique made an innocent misrepresentation regarding the spring running through the corner of the farm with no reason to believe that this item was incorrect, which of the following is true, considering only the lack of a spring issue, if Jen does not want to go through with the sale? a.Jen may rescind the contract and recover compensatory damages. b.Jen may rescind the contract, but she may not recover damages. c.Jen may sue for damages, but she may not rescind the contract. d.Jen may rescind the contract, or she may keep the contract and sue for damages. e.Jen has no remedy based on an innocent misrepresentation based on the theory that she should have checked more closely before entering into the contract.

[Pet Pig Farm] Jen was interested in buying Monique's land in order to breed small pet pigs. Jen told Monique that having water on the property was very important although she did not mention to Monique her plan to breed small pigs. Monique assured her that a spring ran through one corner of the property. Therefore, Jen agreed to buy the farm. Jen, who loved pigs, assumed that the neighbors would be pleased with the pigs being in the area. Monique also agreed to sell Jen a used truck for $5,000. After the contract for the land sale was entered into, Jen had a land survey done, and it was discovered that the spring did not actually run through the corner of Monique's property. The area in which the spring ran belonged to a neighbor. Additionally, when Monique brought Jen the used truck, Jen said, "That's not the truck!" It was discovered that Monique, who had two trucks, thought that Jen had bought the older truck although Jen thought she had purchased the newer truck. Jen was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Jen for nuisance. It will cost Jen more than she had agreed to pay Monique in order for Jen to obtain a similar farm that has a spring within its legal boundaries. Which statement would be the result if Jen attempts to rescind the contract and recover damages only on the basis of the neighbors' objection to a pig farm? a.Jen may rescind the contract and recover damages because Monique made an implied misrepresentation. b.Jen may rescind the contract but may not recover damages because Monique made an implied misrepresentation. c.Jen may recover damages but may not rescind the contract because Monique made an implied misrepresentation. d.Jen may not rescind the contract nor may she recover damages because she, Jen, made a unilateral mistake. e.Jen may rescind the contract but may not recover damages because she, Jen, made a unilateral mistake.

Which of the following is true regarding the elements that must be satisfied in order for a mutual mistake to interfere with legal consent? a. The required elements are: (1) a basic assumption about the subject matter of the contract, and (2) an admission by one of the parties that a misrepresentation occurred. b.The required elements are: (1) a basic assumption about the subject matter of the contract, and (2) a material effect on the agreement. c. The required elements are: (1) a basic assumption about the subject matter of the contract, and (2) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement. d. The required elements are: (1) a basic assumption about the subject matter of the contract, (2) a material effect on the agreement, and (3) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement. e. The required elements are: (1) a basic assumption about the subject matter of the contract, (2) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement, (3) a material effect on the agreement, and (4) fraud.

In the case of Fantastic Sams Salons Corp. v. PSTEVO, LLC and Jeremy Baker, the court dismissed the defendant's fraudulent misrepresentation counterclaim because the defendant affirmed, in response to the plaintiff's _______, that certain representations were not made. special places clause legal assent clause disclaimer consideration clause disruption clause

disclaimer

Abraham told Linda that if she did not sign over her stock options to him he would inflict bodily harm on her and her family. Linda quickly signs over all of her stock options. This is known as _______. breach of duty negligence duress coercion manipulation

duress

Marco threatens to file a criminal lawsuit against Nadine unless she agrees to the terms of a contract that Nadine knows to be ethically and morally against the company's policy. This is a situation involving _______. undue influence persuasive influence demonstrable fraud duress manipulation

duress

When _______ is at issue, the free will needed for legal consent has been removed by the specifics of a threat. duress master manipulation fraud undue influence stealing

duress

[Cheap Motorcycle] Jack, an unpleasant, disagreeable, business law teacher, notices that a student, Liam, who is past the age of majority, has a nice motorcycle for sale. Liam has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Jack tells Liam that he would like to see Liam pass and, in the next sentence, says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Liam asks if Jack is serious about the price, and Jack replies, "I have the power here! Take it or leave it!" Jack proceeds to draw up a contract for the sale of the motorcycle for $100 which Liam signs. Liam does some research and finds that Jack has had several arrests for driving under the influence in a nearby town. As an act of revenge, Liam tells Jack that unless Jack sells Liam his new Mustang convertible for $50, he will send a letter about the arrests to the school newspaper. Jack reluctantly agrees to the deal. Liam could seek to rescind the contract for the sale of the motorcycle under the theory of _______. fraud. duress. undue influence. fraud or undue influence but not duress. Liam may not rescind the contract.

duress

threats, violence, constraints, or other action brought to bear on someone to do something against their will or better judgment.

duress

Ben says he will sell Catalina a ring that he found in his yard. Ben and Catalina look at the ring and decide that they are not sure what it is, probably just a shiny stone. Catalina pays Ben $10 for the ring. The ring turns out to be a diamond worth much more than $10. Ben wants the ring back, and Catalina refuses. What is the most likely result? a. The ring will be returned to Ben because of mutual mistake. b. The ring will be returned to Ben because of unilateral mistake. c. The ring will be returned to Ben because of equity. d. The ring will remain with Catalina unless Ben can establish that he was negligent in not recognizing the ring's true value. e. The ring will remain with Catalina because the parties contracted on the assumption that they did not know the value of the ring.

In China, which of the following is true regarding the treatment of fraudulent misrepresentations by outsiders? a.Outsiders have been fined but by law are allowed to continue operating in the country because of the country's concern with joint ventures. b.Outsiders have been prohibited from doing further business with Chinese firms but not fined because of the country's concern with its reputation with foreign investors. c.Outsiders are jailed for at least 20 years by law. d.Outsiders are jailed for at least 10 years, fined heavily, and have all property confiscated. e.Outsiders have been fined heavily and refused permission to enter into more agreements with Chinese firms.

Which of the following contracts are usually voidable? a. Contracts entered into as a result of fraud, but not duress or undue influence. b. Contracts entered into as a result of duress or undue influence, but not fraud. c. Contracts entered into as a result of undue influence or fraud, but not duress. d. Contracts entered into as a result of fraud or duress, but not undue influence. e. Contracts entered into as a result of fraud, duress, or undue influence.

Which of the following is true regarding federal jurisdiction? a. There is no exclusive federal jurisdiction in civil matters. b. If a case falls within federal jurisdiction, it cannot fall within state jurisdiction. c. Some cases fall within both federal jurisdiction and state jurisdiction, but there is no exclusive federal court jurisdiction. d. Some cases fall within both federal jurisdiction and state jurisdiction, but that only occurs in criminal matters. e. Some cases fall within both federal jurisdiction and state jurisdiction, but the federal court system has exclusive jurisdiction over some cases.

Which of the following may represent a lack of genuine assent? a. Acceptance secured through fraud, duress, or misrepresentation, but not acceptance through undue influence. b. Acceptance secured through undue influence, misrepresentation, or duress, but not through fraud. c. Acceptance secured through fraud or duress, but not through misrepresentation or undue influence. d. Acceptance secured through fraud, dress, or undue influence, but not through misrepresentation. e. Acceptance secured through fraud, duress, undue influence, or misrepresentation.

Which of the following was the result in the case in the text, Fantastic Sams Salons Corp. v. PSTEVO, LLC and Jeremy Baker, in which the court considered PSTEVO's counterclaim for fraudulent misrepresentation with regard to a franchise agreement? a.It is illegal to force a party to sign a disclaimer about representations made, and thus defendants were allowed to proceed with their counterclaim. b.The disclaimer was invalid and thus defendants were allowed to proceed with their counterclaim. c.The counterclaim was dismissed because the disclaimer in the contract prohibited defendants from filing a claim. d.The counterclaim was dismissed even though the disclaimer was invalid. e.The counterclaim was dismissed because, in response to a disclaimer in the contract, defendant affirmed that certain representations were not made.

Which of the following was the result on appeal in the case of Evan Rothberg v. Walt Disney Pictures, the case in the text in which the defendant allegedly used undue influence to obtain a release of employee benefits from a person in the hospital dying of AIDS? a. The court ruled that the defendant was rightfully entitled to a summary judgment ruling in its favor because there was no direct evidence of legal undue susceptibility on the part of the weaker party. b. The court ruled that the defendant was rightfully entitled to a summary judgment ruling in its favor because there was no direct evidence of application of excessive pressure by the stronger party. c. The court ruled that the defendant was subject to summary judgment because the employer/employee relationship was present when the benefits at issue were granted, and no action for undue influence could later be brought against the employer. d. The court ruled that the plaintiff was entitled to recover as a matter of law because there was sufficient proof of undue influence. e. The court ruled that a jury question was presented as to whether undue influence was present.

Which statement about state and federal court jurisdiction is true? a. State courts begin with exclusive jurisdiction until a federal court intervenes. b. In all cases, state courts have concurrent jurisdiction with the federal courts. c. Federal courts begin with exclusive jurisdiction until a state court intervenes. d. In all cases, state courts have exclusive jurisdiction unless the state's supreme court grants jurisdiction to a federal court in the state. e. In some cases, state courts have exclusive jurisdiction; in some cases, state courts have concurrent jurisdiction with the federal courts; and state courts also have the power to hear all cases not within the exclusive jurisdiction of the federal court system.

[Inattentive Driving] Hannah, a first year law student, drove off campus to register for an upcoming conference. Although lawmakers in her state passed a law prohibiting the use of a cell phone while operating a motor vehicle, Hannah was doing just that. When she looked down to pick up a can of soda she dropped, Hannah crashed into the side of Dev's new convertible. A police officer down the street came over to investigate. Hannah explained to him that it was difficult to hold the cell phone in one hand, the soda in the other, and also drive. The officer was not impressed. Dev approached, furious about the significant dent in his new car. Hannah says she has insurance and that she will cover the costs of the whole incident. Dev says that is insufficient; but Hannah says that under case precedent, that is his only remedy. The officer tells Hannah that she must obey duly authorized law, and proceeds to write several citations to her. What type or types of law are involved in the above situation, considering Hannah's interaction with both the officer and Dev? a. Public law but not private law b. Private law but not public law c. Civil law and private law but not public law d.Criminal law and public law but not private law e. Public law, private law, civil law, and criminal law

Dalynda and Phillip have a contract that Phillip will play at Dalynda's opening night reception. The night of the concert, Phillip refuses to go on stage unless Dalynda agrees to pay an additional $5,000 for him to perform. This is known as _______. fraudulent duress manipulative duress intentional duress economic duress negligent duress

economic duress

Brent and Gayle complete their contractual obligations to each other. This is known as a(n) ______. voidable contract executed contract formal commitment bilinear contract approved contract

executed contract

Philip promises to tutor Erin for $25 an hour. Philip has tutored Erin but she has not paid. This contract is ______. executory void voidable unenforceable executed

executory

contract made by two parties in which the terms are set to be fulfilled at a later date. The contract stipulates that both sides still have duties to perform before it becomes fully executed. The contract is often in place between a debtor or borrower and another party

executory contract

If a contract is for the sale of goods, it falls under Article 2 of the UCC; if it is for anything else, it falls under ______. Article 1 Article 3 the common law the federal rules of contracts statutory laws

the common law

Under ______, if a writing, or term in question, appears to be plain and unambiguous on its face, its meaning must be determined from the four corners of the instrument without resort to outside evidence, with the words being given their ordinary meaning. the interpretation rule the Uniform Commercial Code the complete contract rule the plain-meaning rule the rule of reason

the plain-meaning rule

In a[n] _____________ contract, the offeror wants a performance to form the contract. Trilateral Bilateral Unilateral Complete Anticipatory

unilateral

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