BUL 3310 Exam 2, BUL3310 FSU Exam 2 Bailey

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Which of the following is not a basis for product liability under 402A of Restatement (Third) Torts?

A and B

Injunctions are often sought as remedies in torts of

A and B - Nuisance - Wrongful appropriation of another's goodwill

Mutuality of consideration is a requirement for which of the following?

A bilateral contract

Mutuality of consideration is a requirement for which of the following? A. A bilateral contract B. A unilateral contract C. An action for promissory estoppel D. A firm offer under the Code

A bilateral contract

Which of the following mistakes would result in the rescission of the contract?

A bilateral mistake of material fact

Which of the following is an unliquidated debt?

A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges

Which of the following is an example of an unliquidated debt?

A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250

If Mike owes a "slight duty of care" for property he is keeping for Doug, Mike would only be liable for damages to the property caused by A. Slight negligence B. Ordinary negligence C. Gross negligence D. Acts of God

C. Gross negligence

The earliest application of strict liability in American law was in cases involving which of the following? A. Defective products B. Medical services C. Dangerous animals D. Tobacco products

C. Dangerous animals

A person who uses a logo in an advertisement that is deceptively similar to that of another business commits the tort of false light T/F

False

A plaintiff may be awarded either compensatory damages or consequential damages, but not both T/F

False

A plaintiff may be awarded either compensatory damages or consequential damages, but not both. True or False?

False

A seller who fills a motor with heavy grease to keep it from knocking is engaged in mere "sales dressing" and is not liable for fraudulent misrepresentation T/F

False

A thief can pass good title to a subsequent purchaser, so long as the purchaser bought in good faith, for value, and did not know that the goods were stolen T/F

False

A thief can pass good title to a subsequent purchaser, so long as the purchaser bought in good faith, for value, and did not know that the goods were stolen. True or False?

False

A unilateral mistake of fact is grounds for rescinding the contract T/F

False

A unilateral mistake of fact is grounds for rescinding the contract. True or False?

False

A unilateral mistake of value is grounds for rescinding the contract T/F

False

A unilateral mistake of value is grounds for rescinding the contract. True or False?

False

An automobile mechanic who has possession of a car while repairing it is the bailor of the car T/F

False

An intentional misrepresentation of law by a seller who is not a lawyer will be grounds for rescinding the contract T/F

False

Another term for promissory estoppel is restitution T/F

False

Any person who occupies a position of trust and confidence in relation to another person or his property is a trustee T/F

False

Any person who occupies a position of trust and confidence in relation to another person or his property is a trustee. True or False?

False

Article 2 of the Code covers the sale of land and improvements on the land T/F

False

Assumption of the risk is an element of negligence that must be proved by the plaintiff T/F

False

Both contributory negligence and comparative negligence can be asserted as defenses in cases brought in strict liability T/F

False

Contracts formed by the conduct of the parties, rather than expressed in words, are implied-in-law contracts T/F

False

Contracts in which both sides have completely performed their duties are executory T/F

False

Course of dealing refers to the practices of a particular industry and may be used by the courts to interpret contracts T/F

False

Course of dealing refers to the practices of a particular industry and may be used by the courts to interpret contracts. True or False?

False

Courts do not enforce output contracts as a matter of public policy T/F

False

Courts do not enforce output contracts as a matter of public policy. True or False?

False

Damages that involve only a very small monetary award are called liquidated damages T/F

False

Damages that involve only a very small monetary award are called liquidated damages. True or False?

False

During a violent storm, Nelson saved Reggie's boat from being destroyed. Reggie was so grateful that he promised to give Nelson $100. Reggie's promise is unenforceable because it is based on moral obligation T/F

False

Exemplary damages are also known as compensatory damages T/F

False

Food, shelter, cell phone service and medicine are examples of necessaries T/F

False

Giving up a legal right is adequate consideration for a contract governed by the Uniform Commercial Code, but not for contracts under common law T/F

False

Hadley v. Baxendale is the famous British case that created the equitable remedy of specific performance T/F

False

If a minor ratifies a contract before the age of majority, he gives up the right to avoid the contract T/F

False

If a minor ratifies a contract before the age of majority, he gives up the right to avoid the contract. True or False?

False

If a unilateral mistake of fact is apparent to one party, he or she may take advantage of that knowledge and profit from the other party's ignorance T/F

False

If both parties to a contract are uncertain or consciously ignorant of facts about the item to be sold, either party can rescind the contract based on a mutual mistake of fact T/F

False

If goods are being sold subject to a bill of lading, title to the goods passes when the goods are in the hands of the buyer T/F

False

If the contract is silent about delivery terms, a destination contract is assumed T/F

False

If there is a clerical error in a contract, a court will order the equitable remedy of quantum meruit to correct the error T/F

False

In a bilateral contract, each party must gain a legal benefit, but only one party need incur a legal detriment T/F

False

In a majority of states, a minor can disaffirm a contract only by returning all the property originally purchased T/F

False

In a product liability case, defendant manufacturer can use as a defense the plaintiff's failure to discover the defect in the product T/F

False

In a sale on approval, the buyer has the risk of loss until the goods are returned to the seller T/F

False

In a sale on approval, the buyer has the risk of loss until the goods are returned to the seller. True or False?

False

In contributory fault states, if the plaintiff was responsible for 20 percent of his own injuries, he will still be able to collect the other 80 percent from the negligent defendant T/F

False

In most states, the test of mental competence for entering into a contract is the same as the test for making a valid will T/F

False

Legal detriments always entail economic loss T/F

False

Legal detriments always entail economic losses T/F

False

Legal detriments always entail economic losses. True or False?

False

Lost profits cannot be used in calculating damages because profits are always uncertain and speculative T/F

False

Minors may only avoid executory, not executed, contracts T/F

False

Minors may only avoid executory, not executed, contracts. True or False?

False

Most courts allow plaintiffs to use strict liability to collect damages for economic loss in product liability suits T/F

False

Most states will not allow recovery for economic losses in product liability cases based on strict liability T/F

False

Most states will not allow recovery for economic losses in product liability cases based on strict liability True or False?

False

Only liquidated debts can be discharged in an accord and satisfaction T/F

False

Product liability extends only to users or consumers of the goods. Bystanders would need to prove negligence T/F

False

Product liability extends only to users or consumers of the goods. Bystanders would need to prove negligence. True or False?

False

Promissory estoppel is the contract doctrine which requires that accords be in writing T/F

False

Promissory estoppel is the contract doctrine which requires that accords be in writing. True or False?

False

Quantum meruit refers to the compensation owed a party under an express contract T/F

False

Quasi-contract is another term for an implied-in-fact contract T/F

False

Sham consideration is sufficient for a unilateral contract, but not for a bilateral contract T/F

False

Sid Salesman sold Bea Buyer a used 2004 Camry for $8,000. The morning after the contract was signed, Sid called Bea to say that he had forgotten that the dealership would not let that Camry go for less than $9,000 so she would have to pay an additional $1,000 if she wanted the car. Bea must pay T/F

False

Since it is up to the parties to determine the dollar amount in a liquidated damages clause, courts will enforce any amount called for in the contract T/F

False

Since it is up to the parties to determine the dollar amount in a liquidated damages clause, courts will enforce any amount called for in the contract. True or False

False

Strict liability is also called "absolute liability" because there are no defenses that a defendant can raise T/F

False

Tender of delivery occurs only when the buyer takes physical possession of the goods T/F

False

Tender of delivery occurs only when the buyer takes physical possession of the goods. True or False?

False

The "state of the art" defense is available to any manufacturer in a product liability suit based on strict liability True or False?

False

The "state of the art" defense is available to any manufacturer in a product liability suit based on strict liability T/F

False

The Uniform Commercial Code governs the sale of all commercial services and goods T/F

False

The Uniform Commercial Code requires that any modification to a contract for the sale of goods must be supported by new consideration T/F

False

The difference between assault and a battery is that assault results in more bodily harm T/F

False

The doctrine of res ipsa loquitur applies when a person causes damages while violating a law or ordinance T/F

False

The innocent party in a contract breach must choose between collecting punitive damages or compensatory damages because a court cannot grant both T/F

False

The reasonable person is a community ideal of reasonable behavior that cannot vary from situation to situation T/F

False

The reasonable person is a community ideal of reasonable behavior that cannot vary from situation to situation. True or False?

False

The tort of wrongful appropriation of another's goodwill includes reverse engineering another's product T/F

False

The tort of wrongful appropriation of another's goodwill includes reverse engineering another's product. True or False?

False

The victim of fraudulent misrepresentation may rescind the contract, but the victim of merely negligent misrepresentation may not T/F

False

The victim of innocent misrepresentation may sue to recover contract damages T/F

False

The winning party in a breach of contract case is normally entitled to attorney's fees, witness fees and filing costs T/F

False

There are no defenses available to a defendant manufacturer in market share liability cases True or False?

False

There are no defenses available to a defendant manufacturer in market share liability cases T/F

False

To be liable for trespass to land a person must know that the property belongs to another T/F

False

To be liable for trespass to land a person must know that the property belongs to another. True or False?

False

Tom took Al's car without Al's permission and used it for two days before returning it. Tom has committed the tort of conversion T/F

False

Tom took Al's car without Al's permission and used it for two days before returning it. Tom has committed the tort of conversion. True or False?

False

Under Article 2 a consignment is treated like a sale on approval T/F

False

Under freedom of contract, merchants may, by mutual consent, disclaim the obligations of good faith and due care imposed by the Code T/F

False

Under modern contract law, a contract must be executed under seal to be enforceable T/F

False

Under traditional rules of privity, a customer who bought a product that was defectively manufactured could sue either the merchant who sold the product or the manufacturer who created the defect T/F

False

You make an appointment with a dentist. Upon arriving at the Dentist's office, you enter the office and receive treatment. Since you've said nothing about paying, it is not a term of the contract T/F

False

You make an appointment with a dentist. Upon arriving at the Dentist's office, you enter the office and receive treatment. Since you've said nothing about paying, it is not a term of the contract True or False?

False

When a business detains a suspected shoplifter it must be careful not to commit the tort of

False imprisonment

The owner of a family car could be liable for damages caused by any family member using the car under the ___ doctrine

Family purpose

Plaintiff sued a National Football League team, alleging that she had been sexually assaulted by several team members in a hotel room after a game. Team offered the plaintiff a cash settlement in exchange for two promises: (1) plaintiff would never discuss publically the suit or the terms of the settlement; and (2) plaintiff would never again sue the team or the individual players on any claim connected with the incident. Agreeing not to exercise these legal rights constitutes ___________________

Forebearance

A firm offer that is in writing and signed by a merchant cannot be revoked even though the other party gave no consideration T/F

True

A firm offer that is in writing and signed by a merchant cannot be revoked even though the other party gave no consideration. True or False?

True

A merchant's duty of "good faith" under the Code includes observing the reasonable commercial standards for fair dealing in his or her trade T/F

True

A minor is held to the same duty of care as an adult when driving a car T/F

True

A party to a contract who lacks mental capacity, but has not been adjudicated insane, is liable in quasi-contract for necessaries T/F

True

A party who misstates an important fact during contract negotiations has an affirmative duty to correct that misstatement before entering into the contract T/F

True

A party who seeks to rescind a contract must notify the other party in a timely fashion T/F

True

A person is negligent if he or she fails to act as a reasonable and prudent person would act in those circumstances T/F

True

A renunciation is a written waiver of a right arising out of a contract T/F

True

A renunciation is a written waiver of a right arising out of a contract. True or False?

True

A seller who knows that his property has a defect not discoverable by the buyer will generally be liable for fraudulent misrepresentation if he does not disclose the defect T/F

True

A seller who knows that his property has a defect not discoverable by the buyer will generally be liable for fraudulent misrepresentation if he does not disclose the defect. True or False?

True

A surgeon is held to a higher standard of care in performing an operation than a general practitioner would be in performing the same operation T/F

True

A tort can be a wrongful act against a person, a person's property, or both. T/F

True

A tort can be a wrongful act against a person, and or a person's property True or False?

True

Absent a special realationship, one person has no legal duty to warn or rescue another. True or False?

True

Absent a special relationship, one person has no legal duty to warn or rescue another T/F

True

An action for mental distress normally requires the plaintiff to exhibit some physical symptoms of emotional suffering T/F

True

An action for mental distress normally requires the plaintiff to exhibit some physical symptoms of emotional suffering T/F

True

An action for mental distress normally requires the plaintiff to exhibit some physical symptoms of emotional suffering. True or False?

True

An illusory promise is not a promise at all T/F

True

An illusory promise is not a promise at all. True or False?

True

Anne bought an antique bracelet from a jeweler. Unfortunately, the bracelet was not part of the jeweler's inventory, but it had been brought in for repairs. Nonetheless, Anne has good title to the goods True or False?

True

Another term for consideration is bargained-for exchange T/F

True

Another term for punitive damages is exemplary damages T/F

True

Article 2 of the Code has special rules that apply only to merchants T/F

True

Bob promises to sell Jane his Harley Davidson for $13,000, and Jane promises to pay Bob $13,000 for his Harely Davidson. This is a bilateral contract. True or False?

True

Bob promises to sell Jane his Harley Davidson for $13,000, and Jane promises to pay Bob $13,000 for his Harley Davidson. This is a bilateral contract T/F

True

C.I.F. in a sales contract indicates that the price includes the cost of the goods, insurance and shipping charges T/F

True

Cal Contractor did extensive work renovating Hailey Homeowner's kitchen. The construction work has been completely finished, but Hailey has not yet paid Cal. This is an example of a partially executed contract T/F

True

Courts generally cannot order specific performance when the contract is for personal services because of the Thirteenth Amendment T/F

True

Courts generally cannot order specific performance when the contract is for personal services because of the Thirteenth Amendment. True or False?

True

Courts may look into the adequacy of consideration if there is evidence of fraud or undue influence by one of the parties T/F

True

Courts may use course of performance, course of dealing and usage of trade to override express terms in a contract T/F

True

Crops are identified to the contract when they are planted T/F

True

Early cases of strict liability dealt primarily with liability for dangerous animals or abnormally dangerous activities T/F

True

Excessive punitive damage awards may violate the constitutional protection of due process T/F

True

Excessive punitive damage awards may violate the constitutional protection of due process. True or False?

True

Failure to rescind a contract within a reasonable time amounts to an affirmation of the contract T/F

True

Farmers are Article 2 "merchants" in some states and "non-merchants" in other states T/F

True

Farmers are Article 2 "merchants" in some states and "non-merchants" in others

True

For promissory estoppel to be granted as a remedy, the promisor must have known or expected that the promisee would rely on the promise T/F

True

Fraudulent misrepresentation can be the basis for the injured party to rescind the contract T/F

True

Fraudulent misrepresentation can be the basis for the injured party to rescind the contract. True or False?

True

General damages are also called compensatory damages T/F

True

Grace has a valid contract with Al to buy a desk once owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract. True or False?

True

Grace has a valid contract with Al to buy a desk owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract T/F

True

If a bidder seeks to withdraw a bid based on a unilateral mistake, courts require, at a minimum, that the bid was made in good faith, without gross negligence, and that the other party received prompt notice T/F

True

If a contract is silent about payment, payment is due in the place and at the time the buyer receives the goods T/F

True

If a contract is silent about payment, payment is due in the place and at the time the buyer receives the goods. True or False?

True

If there is a breach of contract, the breaching party bears the risk of loss of the goods T/F

True

If there is a breach of contract, the breaching party bears the risk of loss of the goods. True or False?

True

In Joint and several liability one party is potentially liable to pay the entire amount of the judgement T/F

True

In a liquidated debt, the parties agree on the exact amount that is due T/F

True

In a liquidated debt, the parties agree on the exact amount that is due. True or False?

True

In a sale on approval, the seller must pay the costs for returning the goods T/F

True

In an accord and satisfaction, the accord is the new agreement T/F

True

In bilateral contracts, both parties must be bound to the contract or neither party is bound T/F

True

In bilateral contracts, both parties must be bound to the contract or neither party is bound. True or False

True

In interpreting a particular sales contract, courts rely more on course of performance than on usage of the trade T/F

True

In joint and several liability one party is potentially liable to pay the entire amount of the judgment. T/F

True

In joint and several liability one party is potentially liable to pay the entire amount of the judgment. True or False?

True

In joint and several liability, a defendant who pays the entire amount of the judgment may sue the other defendants for their share of the obligation T/F

True

In negligence cases, a superseding cause is one that breaks the direct sequence between the act, which is the basis of the negligence claim, and the plaintiff's injury T/F

True

In negligence per se cases, the injury that the plaintiff suffers must be the same type of injury that a statute was intended to prevent T/F

True

Injunctions are available as remedies in nuisance cases T/F

True

Injunctions are available as remedies in nuisance cases. True or False?

True

Innocent misrepresentation can be the basis for the injured party to rescind the contract T/F

True

Innocent misrepresentation can be the basis for the injured party to rescind the contract. True or False?

True

Intentionally touching another in a way that is harmful or offensive constitutes the tort of battery T/F

True

Manufacturers may be subject to product liability suits based on negligence if they fail to provide adequate instructions for the use of the product T/F

True

One method for proving that a contract has been rescinded is to tear up the contract T/F

True

One of the elements of fraudulent misrepresentation is that the victim's reliance on the false representation was justifiable T/F

True

Parties to a contract may not offer as consideration promises to do what they are already legally required to do T/F

True

Parties to a contract may not offer as consideration promises to do what they are already legally required to do. True or False?

True

Plaintiff was 10% at fault for a car accident in which he was injured. In a pure contributory negligence state, plaintiff would recover nothing from the defendant although the defendant was 90% at fault T/F

True

Punitive damages may be awarded to victims of fraudulent misrepresentation T/F

True

Punitive damages may be awarded to victims of fraudulent misrepresentation. True or False?

True

Pure comparative negligence is the defense in negligence cases that most favors the plaintiff T/F

True

Pure comparative negligence is the defense in negligence cases that most favors the plaintiff. True or False?

True

Rescission is the remedy that cancels the contract and returns each party to his pre-contract position T/F

True

Rescission is the remedy that cancels the contract and returns each party to his pre-contract position. True or False?

True

Restitution is used by courts of equity to prevent unjust enrichment in actions based on quasi-contract T/F

True

Scienter includes not only actual knowledge that a statement is false, but also reckless disregard for whether the statement is true or false T/F

True

Susan says to Mark, "Mark, if you mow my lawn by the end of the day, I promise to pay you $50". Mark mowes Susan's lawn by the end of the day. A unilateral contract has been created T/F

True

Susan says to Mark, "Mark, if you mow my lawn by the end of the day, I promise to pay you $50.00." Mark mowes Susan's lawn by the end of the day. A unilateral contract has been created. True or False?

True

Tamara left her car in a line of other cars waiting to be washed. Tamara expects to pay for the service and the car wash expects to be paid. The contract that exists between Tamara and the car wash is an implied in fact contract T/F

True

The 50% Rule is associated with comparative fault systems True or False?

True

The 50% Rule is associated with comparative fault systems T/F

True

The 50% Rule is associated with comparative fault systems T/F

True

The Uniform Commercial Code governs contracts for the sale of goods T/F

True

The Uniform Commercial Code is an important source of contract law for businesses in the United States T/F

True

The amount of damages sustained in a breach of contract case is a question of fact to be presented to the jury T/F

True

The buyer attains the right to insure the goods once the goods are identified to the contract T/F

True

The buyer attains the right to insure the goods once the goods are identified to the contract. True or False?

True

The greater the risk in a situation, the higher the duty of care T/F

True

The greater the risk in a situation, the higher the duty of care. True or False?

True

The majority of tort cases filed in United States courts are based on negligence, not on intentional torts. True or False?

True

The majority of tort cases filed in the United States courts are based on negligence, not on intentional torts T/F

True

The publication requirement for libel is met if the falsehood is communicated to just one other person T/F

True

The purpose of reformation is to correct the written contract to reflect the actual intentions of the parties T/F

True

The statute that requires that certain contracts be in writing is the Statute of Frauds T/F

True

The victim of negligent misrepresentation may recover contract damages, but not punitive damages T/F

True

To bring a suit for disparagement, the plaintiff must show specific pecuniary losses attributable to the falsehood T/F

True

To bring a suit for disparagement, the plaintiff must show specific pecuniary losses attributable to the falsehood. True or False?

True

To meet the element of consideration, each party to a contract must gain a legal benefit and incur a legal detriment T/F

True

To meet the element of consideration, each party to a contract must gain a legal benefit and incur a legal detriment. True or False?

True

Under an output contract, the seller loses the right to sell his goods to anyone but the buyer named in the output contract T/F

True

Under common law, modifications to existing contracts require new consideration from each party T/F

True

Under common law, modifications to existing contracts require new consideration from each party. True or False?

True

Under the Code, parties may agree to modify the terms of an existing contract without providing new consideration T/F

True

Under the Code, parties may agree to modify the terms of an existing contract without providing new consideration. True or False?

True

Under the Uniform Commercial Code, provisions in a contract will not be enforced if they are so one-sided and unfair that the provisions are unconscionable T/F

True

Under the doctrine of privity, the buyer of a defective product would only be able to sue the person he bought it from and not the manufacturer who was responsible for the defect T/F

True

Whether or not a doctor acted negligently is a question of fact for a jury to decide T/F

True

Mary left her iPad at a local restaurant and offered a reward for its return. Mary made an offer to form a(n) ___ contract.

Unilateral

Which of the following is not classified as a good under Article 2?

A 3 month lease on a lakeside cabin

Which of the following statements expresses an illusory promise?

"I will go to your violin recital on Saturday if there is nothing good on television."

Al, Bill, Chad, and Dan were found jointly and severally liable for 100,000 of property damages caused when a fraternity got out of hand. Al, Bill, and Chad do not have the money to pay for their share of the damages. The only solvent defendant is Dan. The most that Dan will have to pay is

100,000

Which law governs the lease of the goods?

2A of the Uniform Commercial Code

In most states, children under the age of ___ cannot be held liable for negligence

Jack and Jill have a one year contract that calls for Jack to make four deliveries of flour a month to Jill's bakery. What does the pattern of repeated deliveries under this one contract establish?

A course of performance

For which of the following purchases could a minor disaffirm the contract and get the full purchase price back? A. Medicine B. Insurance C. An iPod D. All of the above

C. An iPod

A person who occupies any position of trust and confidence in relation to another person or the property of another person is ___

A fiduciary

What does consideration in a bilateral contract always involve?

A legal benefit and a legal detriment

Which of the following injuries would justify plaintiff using res ipsa loquitur?

A medical malpractice claim against a surgeon who left a sponge in a patient

Which of the following promises would be legally adequate consideration in a bilateral contract?

A promise not to sue someone on a claim that the promisor believes in good faith is valid

Big Oil Company has a contract with Homeowner to deliver however much heating oil Homeowner needs for the fall and winter seasons. This is an example of ___ contract

A requirements

Which of the following sellers would be classified as a merchant under the Uniform Commercial Code?

A retail store that sells computers and other electronic devices

To whom can a thief pass good title to stolen goods?

A thief can pass good title to no one

Which of the following is not an element of a valid contract?

A written document with notarized signatures

In most states, children under the age of __________cannot be held liable for negligence. A. 7 B. 14 C. 16 D. 18

A. 7

Which of the following mistakes would result in the rescission of the contract? A. A bilateral mistake of material fact B. A unilateral mistake of material fact C. A unilateral mistake of value D. A unilateral mistake of law

A. A bilateral mistake of material fact

Jack and Jill have a one year contract that calls for Jack to make four deliveries of flour a month to Jill's bakery. What does the pattern of repeated deliveries under this one contract establish? A. A course of performance B. A course of dealing C. A usage of the trade D. A business condition

A. A course of performance

What does consideration in a bilateral contract always involve? A. A legal benefit and a legal detriment B. A legal detriment and a legal impediment C. A legal benefit and a legal waiver D. A legal waiver and a legal renunciation

A. A legal benefit and a legal detriment

Which of the following defenses are available in product liability claims brought in strict liability? A. Comparative fault of the plaintiff. B. State of the art design and manufacturing processes C. Failure of the plaintiff to anticipate and guard against the product defect D. All of the above.

A. Comparative fault of the plaintiff

Wendy Witness testified for the plaintiff in a suit against Dan Defendant in which he was charged with fraud. The jury found for Dan. Dan wants to sue Wendy for defamation because the statements she made about him on the witness stand were found to be untrue. What result? A. Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness. B. Dan can sue Wendy for defamation, but must prove actual malice. C. Dan can sue Wendy for slander, but must prove actual damages. D. Dan can sue Wendy for libel because the transcript reduced the defamation to writing.

A. Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness.

Punitive damages are available for which of the following A. Fraudulent misrepresentation B. Innocent misrepresentation C. Unilateral mistake of fact D. Bilateral mistake of fact

A. Fraudulent misrepresentation

Barbara sues Mike to recover $10,000 for a breach of contract. Barbara is seeking a___________________. A. Legal remedy B. Equitable remedy

A. Legal remedy

What is the difference between libel and slander? A. Libel is a written communication, and slander is an oral communication. B. Libel is also a felony, but slander is not. C. Libel requires that plaintiff prove malice on the part of the defendant, but slander does not. D. Businesses can only sue for defamation based on libel, not slander.

A. Libel is a written communication, and slander is an oral communication.

The negligence committed by a professional, such as a doctor or a lawyer, in the conduct of his profession is ___________________. A. Malpractice B. Negligence per se C. Negligence ad hominem D. Res ipsa loquitur

A. Malpractice

For which of the following purchases would a minor be liable to the seller for the fair value of the goods (not the contract price)? A. Medicine B. Insurance C. An i-Pod D. All of the above

A. Medicine

Jerry agreed to sell Marge 12 cartons of cigars. Jerry then watched a commercial and decided he would never sell tobacco again. Marge was able to buy the cigars from Alan for the same price. Marge sues Jerry for breach of contract. What type of damages can she recover from Jerry? A. Nominal B. Punitive C. Consequential D. Marge owes Jerry money b/c she should not smoke cigars.

A. Nominal

Which of the following is false about a renunciation? A. Renunciations are valid in common law but not under the Code B. A written renunciation does not require consideration. C. An oral renunciation does require consideration D. The right that is waived in a renunciation is a contract right.

A. Renunciations are valid in common law but not under the Code

Which of the following elements is present in fraudulent misrepresentation, but not in innocent misrepresentation? A. Scienter B. Reasonable reliance by the innocent party C. Misrepresentation of a material fact D. Economic damage to the innocent party

A. Scienter

Which of the following is not an element of negligence that must be proved by a plaintiff? A. Superseding cause B. Proximate cause C. Actual cause D. All of the above must be provided by the plaintiff in a negligence case.

A. Superseding cause

Which of the following statements about the sale or return contracts is false? A. The goods must be used as consumer goods. B. Buyer has the risk of loss until the goods are sold. C. Buyer has the risk of loss during shipment of the goods back to the seller. D. The goods are subject to claims by the buyers creditors while they are in his possession.

A. The goods must be used as consumer goods.

Unless the contract provides otherwise, what is the place of delivery assumed to be? A. The seller's place of business B. The buyer's place of business C. The common carrier nearest to the seller D. The storage facility nearest to the buyer

A. The seller's place of business

Which of the following is NOT an element of promissory estoppel? A. There must be an underlying enforceable bilateral contract. B. The promissor must foresee that the promissee would rely on the promise. C. The promissee did in fact reasonably rely on the promise. D. All of the above.

A. There must be an underlying enforceable bilateral contract.

Larry Lawyer entered into a contract to buy land from a client at well below market value. The client was elderly and trusted Larry as his lawyer and son of his best friend to be fair and give him good advice. Why could Client rescind the contract? A. Undue influence B. Duress C. Unilateral mistake of fact D. Unilateral mistake of value

A. Undue influence

If goods are being sold under a negotiable document of title, such as a bill of lading, when does risk of loss pass to the buyer? A. When the document is tendered to the buyer B. When the goods are tendered to the buyer C. When the buyer takes possession of the goods D. When the buyer pays for the goods.

A. When the document is tendered to the buyer

Beth invited Roger to her house. Roger, while walking in Beth's yard, fell in a unobservalbe hole and broke his ankle. Beth was aware the holes were left in her yard after she had the sprinkler system removed. In common law, would Beth be liable for Roger's injuries? A. Yes, she had a duty to warn him of hidden dangers. B. Yes, she is liable in strict liability. C. No, her only duty to Roger was not to entrap him on the property. D. No, as an adult Roger is presumed to have the legal ability to take care of himself.

A. Yes, she had a duty to warn him of hidden dangers.

Big Oil Company has a contract with Homeowner to deliver however much heating oil Homeowner needs for the fall and winter seasons. This is an example of ____________ contract. A. a requirements B. an output C. a unilateral D. a consumer lease

A. a requirements

The party who takes possession of property belonging to another with the understanding that the property must be returned to the owner or delivered to a designated third party is a _____________. A. bailee B. donee C. lessor D. mortgagee

A. bailee

Brown & Son's of Easton, Maryland, has a contract to sell 250 computers to Community College in Onley, Virginia. The contract reads: "F.O.B. Easton, Maryland. This is a _______________ contract. A. shipment B. destination C. concurrent D. constructive

A. shipment

Trial witnesses cannot be sued for defamation because the testimony of witnesses in trial is protected by

Absolute privilege

The purposes of nominal damages is to

Acknowledge that a right has been violated even though no monetary loss resulted

Juries use the "but for" test (i.e. "but for the negligent act of the defendant would the plaintiff have been injured") to decide if the requirement of __________________is met. A. Probable cause B. Actual cause C. Proximate cause D. Reasonable cause

B. Actual cause

Juries use the "but for" test (i.e. "but for the negligent act of the defendant would the plaintiff have been injured") to decide if the requirement of ___ is met

Actual cause

The product defect in a strict liability suit can consist in

All of the above

The product defect in a strict liability suit can consist in

All of the above - A defective design of the product - A lack of adequate instructions for using the product - The use of components imported from a foreign country instead of components manufactured in the United States

Which of the following is a requirement for a valid contract?

All of the above - Offer and acceptance - Consideration - Legal capacity of the parties

In which of the following circumstances would the remedy of rescission be used?

All of the above - One party to the contract is a minor who wishes to disaffirm the contract. - The contract was based on fraud - The contract was based on a mistake by the parties

Sally Seller deliberately misrepresented to Bill Buyer the condition of a wood chipper she sold him. The misrepresentation materially altered the value of the machine and obscured a safety hazard. What remedies are available to Bill Buyer in these circumstance?

All of the above - Rescission - Compensatory damages - Punitive damages

Among the following, which party has a fiduciary responsibility?

All of the above - The executor of a will - The guardian of a minor child - The director of a corporation

Which of the following statements about assumption of risk is true?

All of the above - Traditionally, a plaintiff who assumed the risk cannot recover damages from the defendant - A plaintiff must be aware of the particular risks associated with the activity - A plaintiff's assumption of the risk must be voluntary

Promissory estoppel is often used in which of the following business situations?

All of the above - When a contractor submits a bid in reliance on the bids of his subcontractors - When a businessperson reasonably relies on representations that he will get a franchise - When employees rely on employer promises about pensions and benefits

When does a party have an affirmative duty to disclose information in a contract?

All of the above - When there is a fiduciary relationship between the parties - When the party is aware of material information that the other party cannot be expected to know - When the party had previously made misleading statements

Ellen has a contract with Sue to buy her riding lawn mower for $200. Ellen has given Sue $200 in cash and Sue has given Ellen possession of the mower. The status of this contract between Sue and Ellen is __________________. A. Executory B. Executed C. Illusionary D. Adhesionary

B. Executed

Local hunter went onto Neighbor's land because deer had been seen there. Hunter knew that the land belonged to his neighbor and that it was posted against hunting. If Neighbor sues Hunter,

All of the above are possible legal consequences - Hunter will be liable for willful trespass to land - Hunter may be liable for punitive damages - Hunter may have to pay neighbor's court costs and attorney's fees

Which of the following statements is true about the use of the reasonable person standard in negligence cases?

All of the above are true statements - The reasonable person is presumed to have a minimum level of knowledge and common sense - The reasonable person of the standard takes on the physical characteristics of the defendant - The standard of care for the reasonable person would be less stringent in emergency situations

Which of the following could be argued by the defendant in a product liability case based on strict liability to limit the dollar amount of the damages awarded to the plaintiff?

All of the above can be pled to reduce damages

Which of the following forms of slander would not require that plaintiff show special damages?

All of the above cases could be brought without showing special damages

What is another term for punitive damages? A. Criminal B. Exemplary C. Nominal D. Liquidated

B. Exemplary

The legal classification for all property that is not real property is ________________

Chattel

How is promissory estoppel best described?

An equitable remedy when one party suffers an unbargained-for detriment

Bill entered into a contract with Carl to supply him with carpeting. When Carl failed to deliver, Bill had to find similar carpeting for $5 a yard more than he would have paid to Carl. The difference between the cost of the carpet with Carl and the A. Punitive damages B. Compensatory damages C. Consequential damages D. Nominal damages

B. Compensatory damages

Which element of a contract is met by a bargained-for exchange? A. Agreement B. Consideration C. Capacity D. Legality

B. Consideration

For which of the following purchases could a minor disaffirm the contract and get the full purchase price back?

An iPod

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for $35 per bushel. This is an example of ___ contract

An output

The legal status of a contract entered into by a minor is ___

Avoidable only by the minor

Goods which are required for maintaining life or health are classified as ___

Necessaries

Sally Seller deliberately misrepresented to Bill Buyer the condition of a wood chipper she sold him. The misrepresentation materially altered the value of the machine and obscured a safety hazard. If Bill wishes to avoid the contract, what should he allege? A. Duress B. Fraudulent misrepresentation C. Innocent misrepresentation D. Unilateral mistake of value

B. Fraudulent misrepresentation

Which of the following is an illusory promise? A. I will buy tickets to the World Series if the Red Sox win the Pennant. B. I will go with you to the donkey basketball game if I can't think of anything better to do. C. I will drive you to work if your car is still in the repair shop. D. I will buy your car if my husband likes it.

B. I will go with you to the donkey basketball game if I can't think of anything better to do.

For which of the following purchases would a minor have to pay the full contract price? A. Medicine B. Insurance C. An i-Pod D. All of the above

B. Insurance

The majority of tort cases in the Unites States are _________ cases. A. Intentional Tort B. Negligence C. Nuisance D. Strict Liability

B. Negligence

Assume that Sussex County has a law requiring that all passenger elevators be inspected every six months. Local Hospital failed to have its passenger elevator inspected when required, and a door that malfunctioned injured a hospital visitor. Visitor's attorney will use the doctrine of _____________. A. Res ipsa loquitur B. Negligence per se C. Malpractice D. Contributory negligence

B. Negligence per se

Which of the following statements about nominal consideration is correct? A. Nominal consideration is good to use when there are liquidated damages. B. Nominal consideration will support an enforceable contract. C. Nominal consideration is another term for sham consideration. D. Both A and B

B. Nominal consideration will support an enforceable contract.

In early product liability cases, a consumer injured by a defectively manufactured product could only sue the retailer who sold her the product. The retailer would then sue the distributor, who would sue the manufacturer. This doctrine that makes the immediate seller the only defendant is called __ A. Warranty restriction B. Privity C. Sellers liability D. The McNabb rule

B. Privity

Beth agreed to buy Sam's home for $400,000. After both parties had signed the contract, which was prepared by the real estate agent, it was discovered that the property was listed on the contract as 1200 Elm Street instead of 200 Elm Street, the actual house number. What is the remedy courts use? A. Restitution B. Reformation C. Rescission D. Respondeat superior

B. Reformation

Dr. Dan accidentally left a scalpel in Paul Patient during Paul's operation, causing Paul much pain and necessitating additional surgery. Paul's lawyer will most likely use the special doctrine of ____________when he sues Dr. Dan for negligence. A. Negligence per se B. Res ipsa loquitur C. Superseding cause D. Contributory negligence

B. Res ipsa loquitur

The doctrine under which employers are liable for torts committed by employees while they are acting within the scope of their employment is___________. A. Joint and several liability B. Respondeat superior C. Negligence per se D. Res ipsa loquitur

B. Respondeat superior

Under which of the following circumstances will cashing a check marked "paid in full" create an accord and satisfaction? A. The check is for a lesser sum that the amount due on a liquidated debt. B. The check is for an unliquidated debt and both parties know of the dispute C. he check is for any transaction governed by the Code. D. The check is in payment of a court judgment.

B. The check is for an unliquidated debt and both parties know of the dispute

Six months after being adjudicated insane, Connie signed a contract for premium cable service. What is the legal status of this contract? A. Valid B. Void C. Voidable by Connie D. Voidable by Connie or Cable Company

B. Void

Under the Code, when are goods "tendered"? A. When the buyer takes physical possession of them B. When the seller makes the goods available to the buyer and gives him notice that they are available C. When the buyer pays for the goods D. Both A and B

B. When the seller makes the goods available to the buyer and gives him notice that they are available

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for $35 per bushel. This is an example of ___________ contract. A. a requirements B. an output C. a unilateral D. an implied in law

B. an output

Bill is in the business of refinishing furniture. When Bill takes a piece of furniture from a customer for refinishing, he has the legal status of a(n) ___

Bailee

The party who takes possession of property belonging to another with the understanding that the property must be returned to the owner or delivered to a designated third party is a ____

Bailee

Manny Manufacturer sent an e-mail to its widget supplier with this message: "Please confirm by return e-mail if you will be able to send me an additional ten dozen red widgets for the usual price by the thirteenth of this month." Supplier e-mailed back: "Yes, the additional widgets will be part of our delivery to you on the morning of the thirteenth." This exchange created what type of contract?

Bilateral

Which of the following is the kind of contract in which each party offers as consideration a promise to do something?

Bilateral

Mutuality of consideration is a requirement for a(n) ___

Bilateral contract

Vivian offered to buy Ben's violin for $2,000 and Ben accepted. Three days later Vivian gave Ben $2,000 in cash and Ben gave Vivian possession of the violin. Which of the following sets of terms best describes the contract between Vivian and Ben?

Bilateral, express, valid and executed

The document issued by a common carrier evidencing receipt of goods for shipment is a(n) ___

Bill of lading

Damages need not be proved in a defamation suit if the defamatory statement claims that

Both A and B - A person has a loathsome disease - A doctor is unfit to practice medicine

Both A and B - Jim sells crabs to another buyer - Jim buys crabs from other crabbers at $25 per bushel so that he can sell them to Bay Crab at the contract price of $35 per bushel

Which of the following statements is true about contracts in which $1 is offered as consideration?

Both a and b are true statements - $1 is accepted in the business community as consideration for a signed option contract - $1 is accepted as consideration in contracts that transfer title to deeds

Traditionally landowners owe the highest duty of care to

Business invitees

Which of the following is true about goods sold under a sale or return contract?

Buyer's creditors have a claim to the goods while they're in Buyer's possession

Company A has entered into a contract to acquire Company B. Hearing of this, Company C offers to acquire Company B for more money and to indemnify the directors of Company B for any damages resulting from its breaching its contract with Company A. Company A can sue Company C for the tort of A. Breach of contract B. Trespass C. Interference with contractual relations D. Interference with prospective advantage

C. Interference with contractual relations

What does the term "scienter" mean? A. Let the buyer beware B. In a scientific manner C. Knowing misrepresentation D. Mathematically calculated

C. Knowing misrepresentation

Sam's neighbor has opened an animal rescue on his property. This is an entirely legal enterprise, but Sam hears animals barking, squaking, screaming, etc... 24 hours a day, cannot hear his television or talk on the phone. What tort, if any, is A. Trespass B. Invasion of property C. Nuisance D. Neighbor is committing no tort because he is conducting a legal enterprise.

C. Nuisance

Which of the following describes the duty of a landowner to a trespasser under the common law? A. The duty to warn of obvious dangers B. The duty to warn of hidden dangers C. The duty not to entrap the trespasser on the premises D. The duty to make certain that the premises are absolutely safe

C. The duty not to entrap the trespasser on the premises

A buyer has the right to inspect good before paying for them unless which of the following is true? A. A shipment contract is involved. B. A destination contract is involved. C. The shipment is C.O.D. D. The buyer is paying by cashier's check.

C. The shipment is C.O.D.

Famous Chef told Shrimp Boat Captain: "I will buy your catch if I think the shrimp are large enough." What is the status of this promise? A. This is a valid promise because the chef must make the decision in good faith. B. This is a valid promise because the chef must make the decision in good faith. C. This is an illusory promise because the chef has complete control over whether or not he will keep the promise. D. This is an illusory promise for a contract but a valid promise for promissory estoppel.

C. This is an illusory promise because the chef has complete control over whether or not he will keep the promise.

Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is A. Valid B. Void C. Voidable by Mike D. Voidable by Mike or Allen

C. Voidable by Mike

When is an illusory promise created? A. When the promise is conditional on any other event happening first. B. When the promise is conditional on an event happening first that is outside the promissor's control. C. When the promise is conditional on an event happening first that is totally within the promissor's control. D. When the promise cannot be performed within one year of the contract date.

C. When the promise is conditional on an event happening first that is totally within the promissor's control.

A person who occupies any position of trust and confidence in relation to another person or the property of another person is ______________. A. an administrator B. an executor C. a fiduciary D. guardian

C. a fiduciary

Goods which are required for maintaining life or health are classified as ___________. A. res in chose B. sustenance C. necessaries D. obligatories

C. necessaries

After reaching the age of majority, if a party does nothing to disaffirm a contract entered into while a minor, his silence will _____________ the contract. A. disaffirm B. void C. ratify D. dissolve

C. ratify

The document issued by a storage facility acknowledging that goods have been accepted for storage is a ______________. A. bill of lading B. commercial acceptance C. warehouse receipt D. trade assignment

C. warehouse receipt

All property other than land is classified as

Chattel

Which of the following defenses are available in product liability claims brought in strict liability?

Comparative fault of the plaintiff

What is the primary purpose of tort law?

Compensate victims for their losses

Compensatory

The damages that are awarded to a victim to make the victim "whole" are ____________ damages

Compensatory

Compensatory damages

Another term for special damages is _______________ damages

Consequential

Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. There was a time is of the essence clause in Bill's contract with Famous Restaurant. Bill was to lose 300 day for each day after the contract date that he was late in finishing the renovation. The 300 day represented the profit Famous Restaurant would lose each day it was not in operation. Bill told Carl about this clause, impressing on Carl the need for him to deliver the carpet on time. Bill finished the renovation three days after the contract date. The delay was due solely to Carl's failure to deliver the carpet on time. Bill can recover the 900 he lost from Carl as ___________ damages

Consequential

Which element of a contract is met by a bargained-for exchange?

Consideration

In cases involving extensive injuries and a solvent or insured defendant, attorneys will be paid a percentage of the award if the case is successful. Fees structured this way are called _________ fees

Contingent

Lawyers fees that give the lawyer a percentage of the amount awarded to the plaintiff if the plaintiff wins, and nothing if the plaintiff loses, are ________________ fees

Contingent

The negligence doctrine that most favors the defendant is

Contributory negligence

Under which doctrine will a plaintiff who contributed to his or her own injuries recover nothing from a negligent defendant?

Contributory negligence

Tom took Ann's 125 Economics text from her locker without her knowledge and sold it back to the college bookstore, keeping the profits. Tom has committed the tort of

Conversion

WireCo manufactures different types of electrical wires used in the building industry, and CopperCo has been one of its major suppliers for over ten years. If a court had to construe a contract between WireCo and CopperCo, it could use this ten year history of business transactions as evidence of

Course of dealing

Al, Bill, Chad and Dan were found jointly and severally liable for 100,000 of property damages caused when a fraternity got out of hand. Al, Bill, and Chad do not have the money to pay for their share of the damages. The only solvent defendant is Dan. The most that Dan will have to pay is A. 25,000 B. 50,000 C. 75,000 D. 100,000

D. 100,000

Which of the following is not an element of a valid contract? A. Agreement B. Consideration C. Legal capacity of the parties to the contract D. A written document with notarized signatures E. All of the abovee are elements of a contract

D. A written document with notarized signatures

Promissory estoppel is often used in which of the following business situations? A. When a contractor submits a bid in reliance on the bids of his subcontractors B. When a businessperson reasonably relies on representations that he will get a franchise C. When employees rely on employer promises about pensions and benefits D. All of the above

D. All of the above

When does a party have an affirmative duty to disclose information in a contract? A. When there is a fiduciary relationship between the parties B. When the party is aware of material information that the other party cannot be expected to know C. When the party had previously made misleading statements D. All of the above

D. All of the above

Which of the following statements about assumption of the risk is true? A. Traditionally, a plaintiff who assumed the risk cannot recover damages from the defendant. B. A plaintiff must be aware of the particular risks associated with the activity. C. A plaintiff's assumption of the risk must be voluntary. D. All of the above

D. All of the above

Local hunter went onto Neighbor's land because deer had been seen there. Hunter knew that the land belonged to his neighbor and that it was posted against hunting. If Neighbor sues Hunter, A. Hunter will be liable for willful trespass to land B. Hunter will be liable for punitive damages C. Hunter may have to pay neighbor's court costs and attorney's fees D. All of the above are legal consequences

D. All of the above are legal consequences

Which of the following statements is true about the use of the reasonable person standard in negligence cases? A. The reasonable person is presumed to have a minimum level of knowledge and common sense. B. The reasonable person of the standard takes on the physical characteristics of the defendant. C. The standard of care for the reasonable person would be less stringent in emergency situations. D. All of the above are true statements

D. All of the above are true statements

How is promissory estoppel best described? A. A contract remedy for breach of bilateral contracts B. A contract remedy for breach of unilateral contracts C. An equitable remedy when an accord and satisfaction fails D. An equitable remedy when one party suffers an unbargained-for detriment

D. An equitable remedy when one party suffers an unbargained-for detriment

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for $35 per bushel. Which of the following actions would constitute a breach of the contract between Bay Crab and Jim? A. Jim sells crabs to another buyer. B. Jim buys crabs from other crabbers at $25 per bushel so that he can sell them to Bay Crab at the contract price of $35 per bushel. C. Bay Crab buys crabs from another crabber. D. Both A and B

D. Both A and B

Traditionally landowners owe the highest duty of care to A. Tresspassers B. Invited guests C. Family members D. Business invitees

D. Business invitees

If parties to a contract under the Code do not include in their agreement a price for the goods, a court will do which of the following? A. Void the contract B. Fix a price for the goods based on the cost of manufacture plus ten seller's profit C. Determine a reasonable price for the goods based on the market at the time the contract was formed D. Determine a reasonable price for the goods based on the market at the time of delivery

D. Determine a reasonable price for the goods based on the market at the time of delivery

Steve enters into a contract with Diana for $3,000, to buy steve's favorite drug, crack cocaine. Steve smokes all the crack cocaine and refuses to pay Diana. Diana sues Steve in Court. A. Diana will recover based on restitution B. Diana will recover based on quantum meruit C. Diana will recover because the judge smokes crack too, and thinks it should be legal D. Diana will not recover bacuase the sale of an illegal substance will not be enforceable in court

D. Diana will not recover bacuase the sale of an illegal substance will not be enforceable in court

A party who enters into a contract with a minor has the same right as the minor to disaffirm the contract. True or False?

False

On Saturday, Bill Buyer paid Furniture World, a furniture retailer, $600 for a table. It was to be buffed and crated so that Bill could transport it home in his truck on Tuesday. On Monday the table was destroyed in a fire at Furniture World. Who bears the risk of loss? A. Bill, he had title to the table at the time it was destroyed B. Bill, he chose to pick up the table and not have it delivered. C. Bill, the table had been identified to the contract. D. Furniture World, it is a merchant and Bill had not yet taken possession of the table.

D. Furniture World, it is a merchant and Bill had not yet taken possession of the table.

Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had belonged to her uncle. Sue told Ann that she thought the mower was about 3 years old. When getting parts for the mower, Ann learned that the mower was in fact 7 years old. Ann can rescind the contract based on A. Duress B. Undue Influence C. Fraudulent misrepresentation D. Innocent misrepresentation

D. Innocent misrepresentation

Which of the following is not a "good" under Article 2 of the Code? A. An unborn horse B. A farm tractor C. A wheat crop that has not yet been planted D. Natural gas extracted from the ground by the buyer

D. Natural gas extracted from the ground by the buyer

Valerie Vet accidentally left the back door to her pet clinic open and Cuddles, a canine patient, escaped. Cuddles ran around in the road and in an adjacent field until she was found and returned to the clinic half an hour later, completely unharmed. Is Valerie liable to the owner for negligence? A. Yes, Valerie Vet breached a duty of care to her patient. B. Yes, it is foreseeable that an unleashed dog will run out of an open door. C. Yes, allowing a dog to run loose for half an hour constitutes gross negligence. D. No because Cuddles suffered no injury while she was free.

D. No because Cuddles suffered no injury while she was free.

Kelly received a cookbook in the mail that she had not ordered. The packing slip read: " Return this book to the publisher within 14 days or send $35 to the address below." She did not return the book within the 14 days and she did not send the money as requested. Is Kelly required to pay it? A. Yes, the publisher made an offer for a unilateral contract which Kelly accepted by not returning the book as instructed. B. Yes, when Kelly did not return the book her conduct created an implied-in-fact contract to which she is bound. C. Yes, there is an implied-in-law contract and Kelly must pay for the book to prevent unjust enrichment. D. No, federal law allows Kelly to treat the unsolicited book as a gift and she may do whatever she wants with it.

D. No, federal law allows Kelly to treat the unsolicited book as a gift and she may do whatever she wants with it.

Fred, in desperate need of quick money, sold his new Key West boat for less than market value to a good faith purchaser. Does Fred have any basis for rescinding the contract? A. Yes, economic duress B. Yes, undue influence C. Yes, bilateral mistake of value D. No, this was a valid bargained for exchange

D. No, this was a valid bargained for exchange

What is another term for consequential damages? A. Punitive B. Liquidated C. Nominal D. Special

D. Special

Which test do courts use to decide if the contract of a person who has not been adjudicated insane can be avoided because of mental incompetence? A. The court will use the state's test for testamentary competence. B. The court will use the state's test for commitment to a mental institution. C. The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time performance D. The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract

D. The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract

Another term for promissory estoppel is ____________. A. forbearance B. restitution C. good faith D. detrimental reliance

D. detrimental reliance

All of the following are economic losses except: A. lost income B. lost tips C. lost sales commission D. losses from pain and suffering

D. losses from pain and suffering

Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness

The earliest application of strict liability in American law was in cases involving which of the following?

Dangerous animals

Debbie, who owns an art gallery, lets regular customers take home prints and large works of art so they can "think about them" before buying. A customer who wants the print sends Debbie a check for the selling price. A customer who decides not to buy the work has 15 days to return it to Debbie. If the print is destroyed in a fire in the customer's home before the 15 day trial period expires, who bears the risk of loss?

Debbie

The doctrine of negligence per se applies to which of the following cases?

Defendant driver caused a car accident by running a red light

If parties to a contract under the Code do not include in their agreement a price for the goods, a court will do which of the following?

Determine a reasonable price for the goods based on the market at the time of delivery

Another term for promissory estoppel is ___

Detrimental reliance

Steve enters into a contract with Diana for $3,000, to buy Steve's favorite drug, crack cocaine. Steve smokes all the crack cocaine and refuses to pay Diana. Diana sues Steve in court.

Diana will not recover because the sale of an illegal substance will not be enforceable in court

Once a contract has been ratified, the ratifying party loses the right to ___

Disaffirm the contract

Competitor wrongfully claims that one of the ingredients used in the manufacture of Hungry Dog dog food contains melanine, which is poisonous to animals. Competitor has committed the tort of ___

Disparagement

Ted told Bob, the owner of Bob's Travel Agency that, unless Bob bought 10,000 worth of advertising from him, Ted will circulate false stories in the community that Bob had stolen clients' deposits. No one would be willing to book tours through Bob or make down payments with him. Bob agreed to the contract only because of Ted's threats, which he believed Ted was perfectly capable of carrying out. Bob could rescind this contract with Ted based on

Duress

Money awarded to an accident victim to make up for lost wages would be classified as

Economic

Mary and neighbor Beth had a bitter quarrel. Beth, a nurse, called Mary from the hospital in which she worked and told Mary that her husband and son had died in a car accident and their bodies were in the hospital morgue. In anguish, Mary rushed down to the hospital. Beth had made up the entire story because she wanted to cause Mary pain. Beth has committed the tort of

Emotional distress

Executed

Another term for punitive damages is ___________ damages

Exemplary

What is another term for punitive damages?

Exemplary

Compensatory damages would include all of the following except

Exemplary damages

Trader, a business located in Rutland, Vermont, is shipping goods from the Port of Boston to a customer in Oslo, Norway. The contract calls for Trader to deliver the goods and have them safely loaded on the ship, Lodestar. Trader's liability ends when the goods are on the ship. The contract will read

F.O.B. Lodestar, Boston

American Products, a Little Rock company, has a contract to send 150 dozen widgets to a customer in Bristol England aboard the container ship Pride of New Orleans. The contract requires American Products to deliver the widgets to the ship's dock and to put them into the hands of the dock master. American Products' liability ends when the dock master takes possession of the widgets. The contract between American Products and customer would read

FAS/Pride of New Orleans

A minor must pay the CONTRACT price for necessaries T/F

False

A minor must pay the CONTRACT price for necessaries. True or False

False

A party who enters into a contract with a minor has the same right as the minor to disaffirm the contract T/F

False

$1 is never legally adequate consideration in a contract because no one will willingly incur a legal detriment for $1 T/F

False

A buyer who discovers that goods bought C.O.D. are defective has no recourse against the seller for the defective goods T/F

False

A common carrier is an insurer of both the goods and the passengers it transports T/F

False

A common carrier would be liable in negligence for injuries to passengers only if it failed to exercise slight care T/F

False

A common carrier would be liable in negligence for injuries to passengers only if it failed to exercise slight care. True or False?

False

A contract for a one year gym membership is a sale of goods under Article 2 T/F

False

A landowner traditionally owes the same duty of care to anyone who comes onto his property T/F

False

Palsgraf v. Long Island Rail Road is the landmark case that limited damages in negligence cases to those that are

Foreseeable

Punitive damages are available for which of the following?

Fraudulent misrepresentation

Sally Seller deliberately misrepresented to Bill Buyer the condition of a wood chipper she sold him. The misrepresentation materially altered the value of the machine and obscured a safety hazard. If Bill wishes to avoid the contract, what should be allege?

Fraudulent misrepresentation

Which of the following would result in punitive as well as contract damages?

Fraudulent misrepresentation

On Saturday, Bill Buyer paid Furniture World, a furniture retailer, $600 for a table. It was to be buffered and crated so that Bill could transport it home in his truck on Tuesday. On Monday the table was destroyed in a fire at Furniture World. Who bears the risk of loss?

Furniture World, it is a merchant and Bill had not yet taken possession of the table

Mike, a minor, sold his trail bike to Allen, an adult. Assume that Allen sold the bike to Ben Buyer, who paid cash and had no knowledge that Allen had purchased the bike from a minor. What kind of title does Ben have to the bike?

Good title

Willful and wanton misconduct or conscious disregard for the safety of others constitutes ________________ negligence

Gross

If Mike owes a "slight duty of care" for property he is keeping for Doug, Mike would only be liable for damages to the property caused by

Gross negligence

Which of the following is an illusory promise?

I will go with you to the donkey basketball game if I can't think of anything better to do

Hilary sold Meredith a broach that had belonged to her mother. She told Meredith, in good faith, that it was a genuine cameo from the 1880's. In fact, it was a copy manufactured in the 1980's out of polymers. Meredith can rescind the contract based on

Innocent misrepresentation

Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had belonged to her uncle. Sue told Ann that she thought the mower was about three years old. When getting parts for the mower, Ann learned that the mower was in fact seven years old. Ann can rescind the contract based on A. duress B. undue influence C. fraudulent misrepresentation D. innocent misrepresentation

Innocent misrepresentation

For which of the following purchases would a minor have to pay the full contract price?

Insurance

Company A has entered into a contract to acquire Company B. Hearing of this, Company C offers to acquire Company B for more money and to idemnify the directors of Company B for any damages resulting from its breaching its contract with Company A. Company A can sue Company C for the tort of

Interference with contractual relations

Which of the following is not a necessary?

Internet service

Len, a local photographer, shot a photo of a family at the beach. Without their knowledge or consent, Len used the photo in all his ads and business cards and featured it prominently on his web page. Len has committed the tort of

Invasion of privacy

Pam and Sam took an overnight flight to Hawaii. Without their knowledge or permission, an agent from Big Ad Agency took a picture of them as they slept and used it in a full-page ad in a national magazine. The agency had superimposed an image of a man in a business suit, working on a laptop, sitting next to them. The caption read "Our Brokers Never Sleep." Pam and Sam could sue Big Ad for

Invasion of the right of privacy

Which of the following statements about quantum meruit is correct?

It is an equitable remedy to prevent unjust enrichment when there is no contract.

What does the term "scienter" mean?

Knowing misrepresentation

Barbara sues Mike to recover $10,000 for a breach of contract. Barbara is seeking a ___

Legal remedy

What is another term for strict liability?

Liability without fault

What is the difference between libel and slander?

Libel is written communication, and slander is an oral communication

Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. What type of damages are these contractually fixed payments?

Liquidated

When there is a time is of the essence clause in a contract, the parties will normally also include in the contract a dollar amount that will be paid the innocent party each day it takes to complete the work after the contract date. This is an example of a ___ damages clause.

Liquidated

All of the following are economic losses except:

Losses from pain and suffering

The negligence committed by a professional, such as a doctor or a lawyer, in the conduct of his profession is ___

Malpractice

Assume that Big Drug Company BDC was one of ten drug manufacturers who produced and sold in the Cleveland area a drug that was found to cause cancer in women whose mothers had taken the drug while pregnant. Plaintiff cannot find out if the pill her mother took were actually manufactured by BDC, but she does know that BDC controlled 40% of the market for that drug in the Cleveland area when her mother was taking it. If a jury finds that the plaintiff suffered 100,000 in damages, she will be able to collect 40,000 from BDC if her state follows the doctrine of ___

Market share liability

For which of the following purchases would a minor be liable to the seller for the fair value of the goods (not the contract price)?

Medicine

Bereaved had a dispute with Funeral Home over the costs of services for his father. When he left home the morning of the funeral, he found his father's embalmed body on his front door step. Bereaved has suffered prolonged sleeplessness and depression since then. Bereaved can sue Funeral Home for

Mental distress

Mike, a minor, bought a car from Used Car Lot for 6,000. Two months before he turned 18, the age of majority in his state, Mike decided he didn't want the car anymore and returned it to Used Car Lot. Mike had put 50,000 miles on the car. Applying the law followed by the majority of states, please select the statement that best describes Mike's rights int these circumstances

Mike would be entitled to get back the full 6,000 purchase price

Sam Student transferred to another college and had to leave his apartment with 5 months remaining on the lease. Landlord must try to find a suitable tenant before he can sue Sam for damage because landlord has a duty to ___ damages

Mitigate

To which of the following can the development of negligence law in the nineteenth century can be traced?

More and more manufacturers creating more types of products

In a negligence suit, plaintiff must prove all of the following except

Motive

Which of the following is not a "good" under Article 2 of the Code?

Natural gas extracted from the ground by the buyer

Defendant's failure to do what a reasonable and prudent person would do in his circumstances subjects him to liability for

Negligence

The majority of private law suits filed in the United States are

Negligence

The majority of tort cases in the United States are ___ cases

Negligence

Negligence per se

Under common law, modifications to existing contracts require ___________to be enforceable

New consideration

Under 402A of Restatement (Second) of Torts, would Alice be liable to her neighbor Sue if the riding mower she sells Sue is defective and causes Sue bodily injury? Alice is a college professor and has used the mower for two years without any reason to suspect it was defective.

No, Alice is not a seller engaged in the business of selling riding mowers

Which of the following statements about nominal consideration is correct?

Nominal consideration will support an enforceable contract

No, because Cuddles suffered no injury while she was free

Mary saw two boys swimming across a river she knew had a deep and dangerous channel. She did not warn the boys or try to stop them. If one of the boys were injured, could Mary be sued for negligence?

No, because Mary had no duty of care to the boys

Kelly received a cookbook in the mail that she had not ordered. The packing slip read: "Return this book to the publisher within 14 days or $35 to the address below." She did not return the book within the 14 days and she did not send the money as requested. Is Kelly required to pay it?

No, federal law allows Kelly to treat the unsolicited book as a gift and she may do whatever she wants with it

Do you think the bikini women going crazy in the Burger King video was a foreseeable act?

No, if there had never been incidences like this before

Sid Salesman sold Bea Buyer a used 2004 Camry for 8,000. The morning after the contract was signed, Sid called Bea to say that he had forgotten that the dealership would not let that Camry go for less than 9,000 so she would have to pay an additional 1,000 if she wanted the car. Is Bea liable for the extra 1,000?

No, this was a unilateral mistake of fact by Sid

Fred, in desperate need of quick money, sold his new Key West boat for less than market value to a good faith purchaser. Does Fred have any basis for rescinding the contract?

No, this was a valid bargained for exchange

Nominal

Sam's neighbor has opened a shooting range on his property. This is an entirely legal enterprise, but Sam hears guns shots 10 hours a day, cannot hear his television or talk on the phone. What tort, if any, is neighbor committing?

Nuisance

The person to whom an offer to form a contract is made is called the

Offeree

Under which of the following is a contract voidable?

One of the parties has the option to set aside the contract

National Chip Company has contracts with numerous farmers in which it agrees to buy all the potatoes the farmers harvest and the farmers agree to sell their potatoes only to National Chip Company. The contracts between the farmers and National Chip Company are _____ contracts.

Output

The award of a very small amount of money, such as 1, acknowledges that a wrong has been done, even though there were no monetary losses. This award represents what type of damages?

Punitive

The famous American case that established that a defendant can be liable in negligence only for those damages that are foreseeable is

Palsgraph v Long Island Railroad Co.

Privity

Allison, who raises horses, promised to give her friend Gil a pony for his daughter. She advised Gil that he would need to enclose a section of his property and recommended a specific type of fencing. Gil bought the recommended materials and had the fence built on his property. Allison now refuses to give Gil the pony. Allison will be liable to Gil for the cost of fencing his property based on the theory of

Promissory Estoppel

Detrimental reliance is another term for ___

Promissory Estoppel

The tort of invasion of the right to privacy

Protects individuals from the shame and humiliation of having private aspects of their lives exposed to the public

The question "was the harm foreseeable?" is used to establish ___ cause

Proximate

Exemplary damages are also known as ___ damages

Punitive

After reaching the age of majority, if a party does nothing to disaffirm a contract entered into while a minor, his silence will ___ the contract

Ratify

Reformation

Big Equipment Company sold a tractor-scraper to Ace Paving for $125,000. Ace made a down payment of $25,000 and agreed to pay the balance to Big Equipment in monthly installments at 4% interest. In typing up the contract, some of the digits in the vehicle identification number were inadvertently transposed. Ace has stopped making its monthly payments and Big Equipment wants to sue Ace, but it must first put the correct VIN in the contract. The remedy courts use to correct contract errors like this is ___

Reformation

Which of the following is false about a renunciation?

Renunciations are valid in common law but not under the Code

The doctrine that creates a rebuttable presumption that a defendant was negligent based on the nature and circumstances of the injury is

Res Ipsa Loquitur

Res ipsa loquitur

The doctrine under which employers are liable for torts committed by employees while they are acting within the scope of their employment is ___

Respondeat superior

Betty Buyer discovers that the pin she bought from Sally Seller is not a ruby as Sally had claimed. She believes that Sally's misrepresentation was innocent, but she wants to get her money back. In order to get her money back, Betty will have to return the pin to Sally. This is a duty of

Restitution

The contract remedy that requires that each party return whatever has already been received of value is ___

Restitution

Sale on approval

Mary runs a clothing store at a ski resort. She is approached by Sally who has several dozen funky hand knit ski caps she would like Mary to buy to sell in her store. Mary agrees on the condition that Sally take back any unsold hats at the end of the season. This agreement is a(n) ___

Sale or return

In a fraudulent misrepresentation suit, the plaintiff must prove that the defendant knowingly misrepresented a material fact. The legal term for the defendant's knowing or reckless misrepresentation is ___

Scienter

Which of the following elements is present in fraudulent misrepresentation, but not in innocent misrepresentation?

Scienter

Brown & Son's of Easton, Maryland, has a contract to sell 250 computers to Community College in Onley, Virginia. The contract reads: "F.O.B. Easton, Maryland. This is a ___ contract

Shipment

What is another term for consequential damages?

Special

June was hired to be the store manager of Big Kahuna Surf Shop in Ocean City. The law governing this employment contract is

State Common Law

Famous Felines is a nightclub act featuring trained lions and tigers. After years of successful and highly popular performances, one of the lions suddenly attacked a spectator sitting in the audience. Famous Felines' liability to the injured spectator will be based on ___

Strict liability

Which of the following theories of liability does not involve wrongdoing by the defendant?

Strict liability

Iris was at fault in a car crash in which Phil was injured. As they waited for the EMT's to arrive, a plane, which was part of a nearby air show, crashed into Phil, significantly increasing his injuries. Iris will not be liable for this second set of injuries because the plane crash was a(n)

Superseding

Which of the following is not an element of negligence that must be proved by a plaintiff?

Superseding cause

Ted stole a Rolex watch from the locker room of the gym he belonged to. Ted sold the watch to Sonny, who gave value and had no reason to suspect that the watch was stolen. Sonny gave the watch to Dad for Father's Day. Which of the following accurately represents the chain of title for the watch?

Ted has void title; Sonny has void title; Dad has void title.

Which of the following statements about the Uniform Commercial Code is false?

The Code is only concerned that a contract reflect a freely bargained for exchange; it does not look to see if the contract provisions are one-sided or unconscionable

Which of the following statements about a minor's purchase of necessaries is false?

The minor must pay the contract price of the goods or services

In an accord and satisfaction, the accord is

The Substitute Agreement

John bought a dishwasher from Local Appliance Store. What type of law governs the contract between John and Local?

The Uniform Commercial Code

Todd bought a lawn tractor from LawnToysRus. The law that governs this sales contract is

The Uniform Commercial Code

Under which of the following circumstances will cashing a check marked "paid in full" create an accord and satisfaction?

The check is for an unliquidated debt and both parties know of the dispute

Which test do courts use to decide if the contract of a person who has not been adjudicated insane can be avoided because of mental incompetence?

The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract was formed

Which of the following statements about libel is false?

The defamatory statement may be either false or true but of a highly personal and intrusive nature

A bilateral mistake of fact is grounds for rescinding the contract. True or False?

True

Which of the following describes the duty of a landowner to a trespasser under the common law?

The duty not to entrap the trespasser on the premises

Gross negligence is defined as

The failure to exercise even slight care

The term F.A.S. in a contract indicates that

The goods are being shipped by a merchant vessel

A buyer does not have the right to inspect goods before paying for them if

The goods are sent C.O.D.

Which of the following statements about the sale or return contracts is false?

The goods must be used as consumer goods

Law enforcement officers are normally not allowed to collect reward money offered for the capture and conviction of criminals because

The officers have a preexisting legal duty to apprehend criminals

In an accord and satisfaction, the satisfaction is

The performance of the action called for in the substitute agreement

An offeree is

The person to whom the offer to form a unilateral or bilateral contract is made

Unless the contract provides otherwise, what is the place of delivery assumed to be?

The seller's place of business

A buyer has the right to inspect goods before paying for them unless which of the following is true?

The shipment is C.O.D.

A contract entered into by a minor is voidable at the option of the minor T/F

True

A court will order the remedy of specific performance only if

The subject matter of the contract is unique and the innocent party cannot be made whole with money damages

If goods are sold under a negotiable warehouse receipt, risk of loss passes to the buyer when

The warehouse receipt is tendered to the buyer

An accord and satisfaction can take place only if

There are unliquidated debts based on contract or tort claims

Which of the following is NOT an element of promissory estoppel?

There must be an underlying enforceable bilateral contract

Famous Chef told Shrimp Boat Captain: "I will buy your catch if I think the shrimp are large enough". What is the status of this promise?

This is a valid promise because the chef must make the decision in good faith

A duty is a legal obligation imposed by law or voluntarily assumed by promise T/F

True

A bilateral mistake of fact is grounds for rescinding the contract T/F

True

You are walking down Lexington Ave and come upon a grocery stand filled with apples under a sign stating 35 cents per apple. You pick up one and take a bite. At that moment, an implied in fact contract is created, largely based on conduct T/F

True

Undue influence

Liz read the following announcement in the newspaper: "100 reward for the return of my lost dog, Duffy." This announcement is an offer to form what type of contract?

Unilateral

Six months after being adjudicated insane, Connie signed a contract for premium cable service. What is the legal status of this contract?

Void

The legal status of a contract entered into by someone who has been adjudicated insane is ___

Void

Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith purchaser for value (GFP). Under the Uniform Commercial Code, Buyer took ____________title from Kevin, and transferred _________________title to the GFP

Voidable ---- Good

Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is

Voidable by Mike

Jacob inherited his grandfather's farm when he was 16. He sold the farm to Buyer, who in turn sold it to a good faith purchaser for value (GFP). Under the common law, Buyer took ___ title from Jacob, and transferred ___ title to the GFP

Voidable----Voidable

The document issued by a storage facility acknowledging that goods have been accepted for storage is a ___

Warehouse receipt

Sandy bought a large air conditioner from Big Box Home Store for 525. For an additional 100, the store delivered, installed and programmed the unit. Does this sale come under Article 2 of the Code?

Yes, because the sale of goods predominates

If goods are being sold under a negotiable document of title, such as a bill of lading, when does risk of loss pass to the buyer?

When the document is tendered to the buyer

When is an illusory promise created?

When the promise is conditional on an event happening first that is totally within the promissor's control

Under the Code, when are goods "tendered"?

When the seller makes the goods available to the buyer and gives him notice that they are available

Coca Cola wants to sue Coda Cola for trademark infringement. Coda soda cans have the same colors and ribbon letters as Coca Cola, and the names are very similar. Which of the following is the test used to determine if Coda's packaging is deceptively similar to Coca Cola's packaging?

Would a casual observer or buyer be deceived into buying Coda instead of Coca Cola?

Knockoff Shoe Company has started to produce a line of ladies shoes with very high heels and bright red soles. Bright red soles have long been associated with the ladies shoes of Famous French Shoe Maker. In a suit against Knockoff, Famous will likely allege

Wrongful appropriation of a goodwill and business value

Beth invited Roger to her house. Roger, while walking in Beth's yard, fell in an unobservable hole and broke his ankle. Beth was aware the holes were left in her yard after she had the sprinkler system removed. In common law, would Beth be liable for Roger's injuries?

Yes, she had a duty to warn him of hidden dangers

Local Delivery Service had a one year contract with Supply Co. to make four deliveries a month to Supply's customers who live across the Bay. There is only one bridge spanning the Bay for 200 miles in each direction. Without warning, the state closed the bridge to all traffic for 10 months after an inspection revealed dangerous structural problems. Local now has to travel an extra 400 miles for each of the scheduled deliveries. Local asked Supply Co. for an additional 60 per trip above the contract price and Supply Co. agreed. Under common law, is this an enforceable contract?

Yes, the request is made in good faith for an unforeseen difficulty

The question "was the harm foreseeable?" is used to establish __________ cause. A. Probable B. Reasonable C. Actual D. Proximate

proximate

Mary runs a clothing store at a ski resort. She is approached by Sally who has several dozen funky hand knit ski caps she would like Mary to sell in her store. Mary agrees on the condition that Sally take back any unsold hats at the end of the season. This agreement is a ____________. A. Sale on approval B. Sale or return C. An unenforceable promise D. An installment sales contract

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