Business 18
Which of the following is NOT true about Title VII?
It prohibits discrimination on the basis of homosexuality or transsexuality.
Which of the following is a characteristic of the "Takings Clause"?
It protects the public from government intrusion onto their property.
Which of the following is true of noncommercial speech?
It receives the full benefit of the First Amendment protection.
Which of the following is not a function of the law discussed in the text?
Promoting societal norms
When the offeror, as the master of the offer, specifies the precise time, place, and manner in which acceptance must be communicated, it is termed as a(n) _____.
Stipulation
Eleanor Rigby is an employee of Strawberry Fields Music, Inc., a firm that specializes in the preparation of original music for possible use by advertisers in TV and radio commercials. In January 2000, Rigby wrote a song that is protected by copyright. She wrote the song as part of her regular duties as a Strawberry Fields employee. Rigby and Strawberry Fields did not have a written agreement concerning ownership of the copyright on the song. In February 2000, Rigby and Strawberry Fields published the song by making large numbers of copies available to the public. Statements A through D deal with ownership of the copyright on the song and with the duration of the copyright. Which statement is legally accurate?
Strawberry Fields owns the copyright, which will expire in 2075.
A legal theory that imposes liability even if the defendant acts with all reasonable care and caution is called:
Strict Liability
All workers' compensation systems allow injured employees to recover under ______, thus removing any need to prove employer negligence.
Strict Liability
What is the term to describe a plaintiff's failure to exercise reasonable care for her own safety?
Strict Liability
Which of the following is the standard of proof in a civil case?
Substantial evidence
Statements made in an advertisement may create what kind of warranty?
express
For a worker to succeed in obtaining a workers' compensation award, the worker must demonstrate that:
he/she was not at fault in contributing to the accident.
A fact is considered to be material in a misrepresentation case when:
it plays a significant role in inducing a person to enter into a contract.
Johnny LaRue sells men's jackets to men's clothing stores, including Melonville Man. Melonville Man orders a selection of men's jackets from LaRue's catalog, asking that LaRue select an assortment of goods for the buyer. LaRue takes advantage of this opportunity to get rid of the odd-sized jackets and those in pastel colors that are no longer popular. LaRue:
violated the good faith requirement under sales contracts.
Which of the following is a condition subsequent?
"I promise to do X if I succeed in getting a loan."
Sam, a plumber, entered into a contract for $75,000 with Orr, Inc., to perform certain plumbing services in a building owned by Orr. After Sam had satisfactorily performed the work, Orr discovered that Sam had violated the state licensing statute by failing to obtain a plumbing license. As a result, Orr refused to pay Sam. The licensing statute was enacted merely to raise revenue for the state. An independent appraisal of Sam's work indicated that the building's fair market value increased by $70,000 as a result of Sam's work. The cost of the materials that Sam supplied was worth $35,000. If Sam sues Orr, Sam will be entitled to recover:
$75,000
In almost all states, the age of majority for contracting is ___.
18
What is the usual UCC time limitation for claiming breach of express and implied warranty after the seller offers the defective goods to the buyer?
4 years
The 1967 Age Discrimination in Employment Act (ADEA) prohibits age-based employment discrimination against employees who are at least _____ years of age.
40
The Fair Labor Standards Act (FLSA) regulates wages and hours by entitling covered employees to a time-and-a half rate for work exceeding _____ hours per week.
40
For a business to be covered under the Family and Medical Leave Act (FMLA) how many employees must the business employ?
50 or more
Which of the following prevents the federal government from depriving "any person of life, liberty, or property, without due process of law"?
5th amendment
Which of the following contracts is not covered by the statute of frauds?
A contract for the sale of goods for a price of $400.
Jack went to the ABC Casino to gamble. ABC offers its customers one free spin of the Million Dollar Wheel if they fill out an application form. Jack filled out the form, spun the Million Dollar Wheel, and won. However, now ABC refuses to pay, claiming that because Jack did not purchase his chance at the Million Dollar Wheel, Jack gave no consideration and therefore, no contract was formed. Identify the accurate statement.
A contract was formed because filling out an application can constitute legal consideration.
Which of the following is slander rather than libel?
A defamatory TV broadcast
Which of the following actions is considered to reflect a counteroffer?
A demand for additional terms
Which of the following is most likely to be considered a sale of goods to which the UCC applies?
A gas station sells a new battery for a car.
Which of the following would have an argument for being exempt from using materials that were copyrighted?
A news organization transmitting information to the public
Which of the following is not an element of promissory estoppel?
A written contract
Which of the following occurs when a buyer, after having a reasonable opportunity to inspect the goods, either indicates that he will take them or fails to reject them?
Acceptance of goods
What does the term "grumbling acceptance" mean?
Accepting an offer while complaining about the terms
Tina and Tom are co-workers at Acme Corporation. As night custodians, they work together cleaning the Acme office building at night when the building is empty. Tom regularly makes sexual advances toward Tina that distress her. However, Tina has never complained about Tom's conduct to her supervisor, Mary, who only works during the day. Which of the following statements is most accurate?
Acme Corporation may defend that it did not know about Tom's harassment of Tina.
Who among the following have the capacity to enter into a contract?
Adults that have dicorced
Which of the following is not a category of illegal agreements?
Agreements to bring more profit to one party than the other
Which of the following is often used by landlords to attempt to insulate themselves from negligence liability?
An exculpatory clause
Which of the following statements is generally correct with respect to unemployment compensation?
An individual who has been discharged from employment because of work-related misconduct is ineligible for unemployment compensation.
Ms. White lost her puppy. She advertises a reward of $50 for the return of her puppy. What is the contractual nature of Ms. White's advertisement?
An offer for a unilateral contract
Which of the following is the first step in the contract formation process?
An offer in definite terms
According to contract law, a(n) _____ is a belief about a fact that is not in accordance with the truth.
Assertion
_____ is the plaintiff's voluntary consent to a known danger.
Assumption of risk
Beth has just turned 17 years of age. She entered into a contract with ABC Corp. for the purchase of a used car, with full payment of $5,000 due in 30 days. This car is necessary for Beth to use as transportation to her job, which she needs in order to pay tuition at the university where she is a freshman. Beth's parents have refused to help her pay for college. Three days later, Beth changes her mind; she now wants to return the car because she has learned that it is worth only $4,000, which is in fact the reasonable value of this car. Assuming the car is legally classified as a "necessary" and Beth does not pay, and ABC Corp. sues, the outcome of this lawsuit will be that:
Beth must pay 4,000
Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of a contract that is now:
Bilateral and executed
Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this?
Bilateral contract
A contract must be between parties who have _____ to contract.
Capacity
_____ is the ability to incur legal obligations and acquire legal rights.
Capacity
Catherine decided to have lunch at Tom's, one of the most popular restaurants in town. She ordered soup before her main course. The soup served to Catherine contained a maggot floating about in it. Fortunately, she noticed this before she ate it. She sued Tom's for negligence. The most likely result will be:
Catherine will not win since she did not sustain any damages.
Which of the following is a fundamental principal of American government, guaranteed by the Constitution, whereby each branch has some measure of influence over the other branches and may choose to block procedures of the other branches?
Checks and balances
Ann wants to download Adobe Acrobat software from the Internet. Prior to downloading, a standardized online contract appears on the screen that requires her to click on an icon indicating agreement, before she can proceed in the program. Such contracts are called:
Clickwrap contracts
The First Amendment provides that "Congress shall make no law ... abridging the freedom of speech." What is often described as being at the "core" of the First Amendment?
Commercial speech
What type of damages are awarded to an injured party in a tort case to cover damages for the harm that the injured party suffered?
Compensatory Damages
A ______ occurs when the contract calls for the parties to perform at the same time.
Concurrent condition
A(n) ______ is a future, uncertain event that creates or extinguishes a duty of performance.
Condition
An uncertain future event, the occurrence of which is necessary for the existence of a contractual obligation is called:
Condition precedent.
A _______ is a future, uncertain event that discharges the duty to perform.
Consequent subsequent
Someone confronted with an emergency requiring rapid decisions and action need not employ the same level of caution and deliberation as someone in circumstances allowing for calm reflection and deliberate action. This exception reflects the consideration of _____ in a negligence case.
Context
Why must real estate sales contracts be evidenced in writing and signed by the party to be charged in order to be enforceable?
Contracts of such property are covered under the statute of frauds.
In a case where a merchant mistakenly sells a good that was entrusted to it, under what theory can the entruster sue for damages?
Conversion
The defendant's intentional exercise of dominion or control over the plaintiff's personal property without the plaintiff's consent is called:
Conversion
The effort by legislatures to cap monetary damages in civil cases is called what?
Criminal reform
The appointment of another person to perform a duty under a contract is called a(n):
Delegation
Which of the following is used by sellers to eliminate any kind of liability that may be claimed by an injured buyer?
Disclaimer
_____ is a wrongful coercion that induces a person to enter or modify a contract.
Duress
Which of the following tries to check abuses and to protect employees' expectations that promised pension benefits will be paid?
ERISA
The right of minors to avoid a contract as a means of protecting themselves against their own improvidence and against overreaching adults is called:
Emancipation
Which of the following is one of the four material elements required for meeting the substantially-equal-work condition for application of the Equal Pay Act?
Equal bonus structure
What is a provision in a contract that purports to relieve the defendant of a duty of care he would otherwise owe to the plaintiff called?
Exculpatory clause
A contract is _____ when all of the parties have fully performed their contractual duties.
Executed
If the delivery term of the contract is _____, the place at which the goods originate, the seller is obligated to deliver to the carrier goods that conform to the contract and are properly prepared for shipment to the buyer, and the seller must make a reasonable contract for transportation of the goods on behalf of the buyer.
FOB
Mr. Blue is driving to work and gets into an accident. Since he was on his way to work Mr. Blue will be able to recover damages through his state's workers compensation system.
False
The Family and Medical Leave Act requires employers to pay employees while they take leave for one of the reasons stated in the Act.
False
Workers' compensation protects not only employees, but independent contractors as well.
False
Which of the following grants a person unconditional power to dispose of the property during her lifetime or upon her death?
Fee simple absolute
Contracts sometimes contain a provision reciting that disputes between the parties regarding matters connected with the contract must be litigated in the courts of a particular state. What is such a provision called?
Forum selection clause
Which constitutional amendment protects employees from drug and alcohol testing at a private employer?
Fourth Amendment - Search-and-seizure rule
The policy against restraints on competition is based on the economic judgment that the public interest is best served by:
Free competition
Mr. Green creates a unilateral contract with his nephew, Paul. Mr. Green promises to buy Paul a laptop if he gets accepted to college. In order for Paul to accept this contract what must he do?
Get accepted to college
Which of the following is NOT a basic element of a contract?
Goods
Jenny promises National Bank that she will repay the loan that National Bank makes to Garrett if Garrett fails to pay it. In this instance, Jenny is the:
Guarantor
Jack was an employee of ABC Corp. Harry, the president of ABC, had reasonable grounds to believe that Jack had stolen money from the corporation. ABC fired Jack. One month later, Jack applied for employment at DEF Corp. The vice president for human relations at DEF contacted Harry and asked about Jack's performance at ABC. Harry responded, "I believe that Jack stole money while working here." DEF declined to hire Jack. Jack later discovered what Harry said, and is now suing Harry for defamation. What is the likely outcome of this case?
Harry will win because he had a conditional privilege to make that statement.
Carlos has written a novel. He wants to protect his intellectual property with a copyright. What must he do first?
He must put the novel in some tangible form, like a hard copy or a compact disc.
John offers to sell Stacy a car, and Stacy sends an email accepting John's offer. When he receives the email, John calls Stacy and tells her that she can "pick up the car any time." That night, the car is destroyed when a tree falls on it during a storm. Which of the following statements is true?
If John is an accountant, Stacy must bear the loss.
Sigmund enters into a contract with Carl. The terms are that Sigmund will purchase all the gasoline that he wants to purchase in 2011 at a price of $2.50 per gallon, and Carl agrees to sell on those terms. This is an example of a(n):
Illusionary contract
A(n) _____ is created by operation of law rather than the seller's express statements.
Implied warranty
According to UCC section 2-315, _____ for a particular purpose arises when the seller has reason to know a particular purpose for which the buyer requires the goods.
Implied warranty of fitness
Palmer goes to a truck dealership and asks for a truck capable of handling a 5000-pound load. He makes it clear that it is up to the salesman to select an appropriate truck. Without saying anything about the truck's load-carrying capacity, the salesman selects a certain truck for Palmer. Relying on the salesman's choice, Palmer buys the truck in question. However, the truck can only handle a 2500-pound load. Palmer wants to sue the dealership because he did not get the truck he desired. Which of the following product liability theories gives Palmer his best chance of recovery?
Implied warranty of fitness
_____ is defined as the desire to cause certain consequences or the substantial certainty that those consequences will result from one's behavior.
Intent
_____ is a ground for lack of capacity only when it is so extreme that the person is unable to understand the nature of the business at hand.
Intoxication
Advertisements for the sale of goods at specific prices are considered to be:
Invitation to offer
Attendees of free public lectures and church services would be classified as:
Invitees
The UCC differs from the common law of contracts in that the UCC:
Is less concerned with technical rules
Which of the following is a true statement about easements?
It gives the right to make certain uses of another's property.
Which of the following typically characterizes community property?
It is property acquired during marriage.
What legal effect does death or insanity of the offeror have on the offer?
It terminates the offer automatically.
What is a court's power to hear a case and to issue a decision binding on the parties called?
JUrisdiction
Joe is going on a "survival hike" in the desert. He goes to a sporting goods store, describes the hike, and asks the salesman to select suitable hiking boots for him. The boots the salesman suggests are well made and are appropriate for normal hiking, but are not suitable for Joe's plans. Relying on the salesman's selection, Joe buys the boots. After he suffers personal injury because the boots prove inadequate for the survival hike, Joe sues the store. Joe can recover under:
Joe cannot sue for breach because it was his responsibility to select the boots.
What is a statute?
Laws made by Congress or a state legislature
What does the term "caveat emptor" mean?
Let the buyer beware
Damages that are agreed upon at the time the contract is entered into are called _____.
Liqudated damages
Which of the following is the reason why the UCC distinguishes between merchants and nonmerchants?
Merchants tend to have more bargaining power and can take advantage of buyers.
Mike, a minor, buys some real estate as an investment. The contract obligates Mike to make monthly installment payments for 10 years. Mike reaches the age of majority one month after making the contract. After this, Mike makes 25 monthly payments under the contract, but then decides that he wants to rescind the deal. Which of the following is most true?
Mike cannot disaffirm because he has already ratified the contract.
Which of the following is an example of noneconomic damages from a tort case?
Money loss from non-performance of one party
The term for when both parties to a contract are mistaken about the same fact is called?
Mutual mistake
_____ are intended to punish flagrant wrongdoers and to deter them.
Punitive damages
Abe took his bicycle to a bicycle shop for repair. By mistake, a sales clerk sold Abe's bike to Leon. This was a sale in the ordinary course of business; neither the clerk nor Leon was aware that the bike belonged to Abe. Can Abe recover his bike from Leon?
No, because Abe entrusted his bike to the bike shop.
Ahmed, a lawyer, sold his car to Carlos. Has an implied warranty of merchantability been created by this transaction?
No, because Ahmed is not a merchant.
At 17 years old, Otto signed a contract to purchase a new Hummer by advancing a payment of $50,000. However, when Otto turned 20, he wished to disaffirm this contract. Does the law permit this?
No, because Otto implied his ratification.
Milner Developers proposed an offer to Henry Wright, an independent contractor, offering to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response. Wright responded to the offer with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract?
No, because Wright's letter was a counteroffer to the original offer.
John promised the other co-owners of the ship Sea Fairy that he would insure the ship for an upcoming voyage. However, John fails to insure the ship. The ship is shipwrecked in a turbulent sea. The co-owners sue John for breach of contract. Will they succeed?
No, because it was a purely gratuitous promise.
Helga owns an insurance business in Idaho. Her clients are all Idaho residents. She later sells her business to Carlos. As part of the deal, the contract contains a noncompete clause that prevents Helga from operating an insurance business anywhere in Idaho, Washington, or Oregon for a period of five years. Six months after this sale, Helga opens an insurance business in Oregon. If Carlos seeks to enforce the noncompete agreement against Helga, will he probably be successful?
No, because this agreement is not reasonable.
Helen worked for ABC Motors for 25 years. The president of ABC said to her: "In consideration of your past service for 25 years, I promise to give you a new car next week." However, he did not give the car. Is this promise legally enforceable?
No, legal consideration is absent.
Can a local businessman pay a police officer $50 a week to watch his business more closely?
No, public officials cannot give consideration on duties they are already supposed to perform.
Which of the following constrains the employee from divulging or using certain information gained during his employment?
Nondisclosure agreement
The necessary intent for assault is the same as that required for battery, which is to cause:
Offensive Contact
The ____ has the power to bind the person who makes an offer simply by accepting the offer.
Offeree
The term for a person who makes an offer is called?
Offeror
When can the offeror effectively revoke his/her offer?
Only before an effective acceptance.
Maple Interiors, located in Boston, contracted to sell and ship sofas to Peach Furniture, located in Atlanta. The contract stated that the goods were to be shipped "F.O.B. Boston, via XYZ railroad." Maple delivered the sofas to XYZ railroad. They were shipped from Boston but never seen again. Both Peach and Maple assumed that the other party had the risk of loss, so neither had obtained insurance. Who must bear this loss?
Peach must bear the loss because the risk passed to it after the sofas were delivered to XYZ railroad.
Which of the following refers to a bodily injury that can be recovered in a negligence action?
Personal Injury
Dave tells Dora that Phil, a financial advisor, has been stealing money from his clients. Dora then repeats Dave's statement to Tom, telling Tom that the information comes from Dave. All these statements are oral, defamatory, and false. Phil sues Dave and Dora for defamation. Which of the following is true? (Don't consider defenses and privileges.)
Phil must prove special damages in order to recover against Dave and Dora.
Phil decided to rescue Bobo, the dancing bear, from a traveling circus that was closing its business. Although Bobo was a well-behaved grizzly bear, Phil took great care to make sure that Bobo would not escape from his yard by reinforcing the yard's fence with steel and padlocking the gate. One day, without notice, Bobo rushed the fence, knocked the padlock off the gate, and escaped from Phil's yard. Bobo lunged at a young child in the neighborhood, injuring him. Based on these facts:
Phil will be liable, regardless of the steps that he took to secure the yard.
Which of the following is not a defense to a product liability suit?
Product misuse
Which of the following would not constitute trespass to land?
Playing loud music
What are legal rules in prior cases called?
Precedents
What is the standard of proof that the plaintiff must satisfy in a tort case?
Preponderance of proof
Which damages are awarded to punish the defendant?
Punative
A(n) ______ contract is one in which one person agrees to pay the debt or obligation that a second person owes to a third person if the second person fails to perform.
Quasi
Which of the following ends the right to rescind a voidable contract?
Ratification
_____ is the failure to use reasonable care, with harm to another party occurring as a result.
Recklessness
You are walking down a street and you pass by a beer brewery. A barrel rolls out of a third story window and injures you. You have no idea how this accident occurred, and you will have difficulty proving that the brewery was at fault. What legal theory will serve you best if you sue the brewery?
Res ipsa loquitur
The U.S. Constitution provides distinct powers to Congress, the President, and the federal courts. This is the principle of:
Separation of powers
Smith and Benson make an oral contract for the sale of land at a price of $500,000. After paying Smith $400,000 of the purchase price, Benson takes possession of the land. One month later, Smith wants to boot Benson off the land. His argument is that the parties' oral agreement is unenforceable under the statute of frauds. Which of the following is most correct?
Smith is incorrect, because Benson paid part of the purchase price and took possession.
The buyer usually can inspect goods before payment except:
Shipped COD
Joe sells his business to Shirley. During the negotiations, Joe negligently tells Shirley that the business has earned a profit for the last five years. In reality, the business operated at a loss for each of those years. However, Shirley did not hear Joe's misstatement. Shirley cannot rescind the contract because:
Shirley did not actually rely on Joe's misstatement.
Ashley says to Ford, "I'd like to buy your house," and Ford responds, "You've got a deal." This exchange lacks _____.
Spcificity
The patent application must include a(n) _____ describing the invention with sufficient detail and clarity to enable a person skilled in the relevant field to make and use the invention.
Specification
Which of the following is most true regarding noncompetition clauses in contracts?
Such clauses are not used during employment contracts.
Which of the following notifies the defendant that he, she, or it is being sued?
Summons
What is emancipation?
Termination of parental rights to control a child.
Joe buys watermelon seeds from a seed manufacturer's catalog. The catalog describes the seed Joe buys as "top quality." Joe strongly relies upon this statement in making the purchase. The seeds turn out to be worthless, and Joe sues the manufacturer for breach of express warranty. You are the attorney representing the manufacturer. Which of the following is your best argument for escaping liability?
That the basis-of-the-bargain requirement was not met.
Which of the following must a person prove to rescind a contract if the misrepresentation was innocent?
That the fact was material
Which of the following is least likely to be covered for work leave under the Family and Medical Leave Act (FMLA)?
The employee has a serious health condition.
Judith George makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree, Helga Holmes, must respond if she accepts. If Helga accepts the offer using a normal letter, which of the following is true?
The acceptance is effective upon dispatch.
When a conflicting common law rule is inconsistent with an administrative regulation, which prevails?
The administrative regulation
One day, Jon, an employee of the bank, carelessly left a rake next to the sidewalk when he went to lunch. Deb, a customer of the bank, stepped on the rake as she walked next to the sidewalk and was injured. Which statement is most likely correct?
The bank is liable for Deb's injuries.
Linda wanted to replace the old carpet in her home. She entered into a contract with Carpet Co., for the purchase and installation of a new carpet. The price of the carpet was $3,000 and the cost of the labor to install the carpet was $150. Later, Linda became dissatisfied with this transaction and now wants to sue Carpet Co. Linda wants to apply the contract rules of the UCC, but Carpet Co., wants to apply the contract rules of the common law. Which source of law should govern this case?
The contract rules of the UCC apply, because the predominant purpose of the contract was for the sale of goods.
For an employee to recover under a workers' compensation system, what percentage of negligence must the employer be found guilty of?
The employer must be more than 75% negligent for the injury
When a piece of real property is sold, who will own the fixtures after the sale?
The new owner of the real property
Under the product liability theory of strict liability as expressed in the Restatement (Second) of Torts, what is an essential fact that must be present if strict liability may be used in a lawsuit as the basis for recovery?
The product must be unreasonably dangerous.
The doctrine of res ipsa loquitur can be translated as:
The thing speaks for itself
Mr. Yellow delivers a stack of newspapers to Mr. Green's store to see if he wants them. A note attached indicates the stack of papers is $50. Mr. Green, without communicating an acceptance, sold the entire stack of papers to his customers. What is the status of the agreement between Mr. Yellow and Mr. Green?
There is a contract because Mr. Green implied acceptance by his action
Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true?
There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie.
What was the original reason for granting Congress the power to regulate interstate commerce after the Revolution?
To block protectionist state restrictions on interstate trade
What is the main purpose of the taxing power?
To raise revenue for the federal government.
Tracy, aged 12, is named the sole inheritor of her family mansion, which is valued to be worth millions. She has disaffirmed the agreement on the advice of her uncle and guardian Pete. This automatically transfers the title to the latter. Which of the following statements is true of the case?
Tracy cannot disaffirm until she has reached majority.
Melissa hurls a rock with the intent to hit Dave, with whom she has just fought. The rock hits Stacey, instead, who is sitting next to Dave. Melissa is liable for battery under the theory of:
Transferred intent
Which of the following parties enters the land without its possessor's consent and without any other privilege?
Tresspasser
_____ is generally taken to mean the absence of meaningful choice together with terms unreasonably advantageous to one of the parties.
Unconscionability
Jerry owns a parcel of land. Nate, one of Jerry's closest friends and an attorney, persuaded Jerry to sell the land to Nate at a price substantially below fair market value. At the time Jerry sold the land, he was resting in a nursing home recovering from a serious illness. If Jerry desires to set aside the sale, which of the following causes of action is most likely to be successful?
Undue influence
Pancake House, a local breakfast diner, issues "frequent buyer" cards to its customers and stamps the card each time a customer buys a stack of pancakes. Pancake House promises to give any customer a free stack of pancakes if the customer buys 10 stacks of pancakes and has his "frequent buyer" card stamped 10 times. This is an example of a(n) ______ contract.
Unilateral contract
When a court says that an agreement is illegal, it most likely means that the agreement:
Violates public policy
Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?
Void contracts
Contracts that are induced by misrepresentation are considered:
Voidable
Which of the following personal traits or conditions will not change the normal reasonable person standard to which defendants are subject?
Voluntary intoxication
Which of the following is an express or implied promise about the nature of the product sold?
Warranty
Wayne and Mia are friends in Idaho, where gambling is illegal and they are aware of it. Wayne and Mia bet $1,000 on which day Paradise Creek will flood its banks. They have no financial interest in Paradise Creek. Wayne wins this bet. Mia pays Wayne the $1,000, but later that day, regrets it and sues Wayne to get her $1,000 back. The court would probably rule in favor of:
Wayne, since the court will "leave the parties where it finds them" in cases like this.
Which of the following factors will be most important in determining if an express warranty has been created?
Whether the promises became part of the basis of the bargain.
What are depositions?
Written questions directed to a party, answered in writing, and signed under oath.
Jack had taken his girlfriend Jenny on a long drive. While driving on the highway, he suddenly had a severe headache and lost control of the car. They collided with a passing car. The doctor had previously warned Jack that he has a brain tumor, due to which he would experience occasional pains. Jenny sued Jack for negligence. Will she succeed?
Yes, because Jack could reasonably foresee severe pain, which might lead to accidents.
On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow." Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie's home at 2:15 p.m. Do Trista and Charlie have a binding contract?Yes, because Trista dispatched the telegram prior to 2:00 p.m.
Yes, because Trista dispatched the telegram prior to 2:00 p.m.
James entered into a contract to sell his house to Mikhael. James knows that the house has a bad termite infestation that significantly reduces the value of the house. However, the topic of termites never came up and James did not volunteer any information about the termites. Mikhael is not aware of the termite problem. Under the law of most states, has legal misrepresentation occurred here?
Yes, because a seller must always inform a buyer about defects that are not obvious.
Nancy, aged 70, has a vacant plot adjacent to her house that she intends to bequeath to her grandson Roy upon her death. However, an important railroad project is being undertaken nearby and the local authorities have informed Nancy that the new railroad will cover her vacant lot. They have also promised her fair compensation in return. Can the government take her property?
Yes, because the government has the power of eminent domain.
Ron was employed by Mass Co. in 1970. At that time, he was given an employee handbook that described the particular steps that had to be taken before an employee could be fired. Later, in 2000, Mass published a new handbook by which all workers' statuses were changed to at-will employees. Mass then fired Ron. Ron claimed he was terminated without cause and was not afforded procedures described in the 1970 handbook, such as an appeal or review of the decision. He sued Mass under breach of contract based upon the 1970 employee handbook. Will he succeed?
Yes, because the modifications in 2000 were not by mutual consent and for consideration.
Ann is troubled with the noise of an old generator set up by her neighbor, Jose, at his residence. The noise the generator makes is unbearable. Ann sues Jose for nuisance. Will she succeed?
Yes, because the noise is interfering with Ann's use and enjoyment of her land.
In the sale of a home, which of the following would likely be treated as a fixture?
a ceiling fan
The Bill of Rights to the U.S. Constitution is an example of:
a prohibition of government action that would restrict certain individual rights.
To qualify as a contract, a set of promises must be based on a voluntary agreement, which is made up of an offer and a(n) _____ of that offer.
acceptance
Consideration can be a(n) _____ in the case of a unilateral contract.
act
Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on:
adverse possession
The statute of frauds requires that:
all contracts involving fraud must be void.
In 17th-century England, before the enactment of the Statute of Frauds in 1677, a legal rule:
allowed both parties to a lawsuit and third-party witnesses to testify.
Eminent domain:
allows the government to acquire private property for public use.
Rebecca goes for a ride in Owen's car, even though he has told her that the car's brakes frequently fail. In case of any injuries due to this defect, Rebecca would be said to have:
an implied assumption of risk.
Contracts are typically between one party and:
another private party
Noncompete clauses in contracts:
are always enforced under the doctrine of "freedom of contract."
People who engage in abnormally dangerous activities:
are liable even if they are not negligent.
Offers that fail to provide a specific time for acceptance are:
are valid for a reasonable time.
With regard to an assignment, the person to whom the right has been transferred is called the:
assignee
The transfer of a right under a contract is called a(n):
assignment
The most important requirement of goods regarding their merchantability is that they must:
be fit for the ordinary purposes for which they are used.
Bobby goes to Sammy's Electronics to buy a CD player. In testing one model, Bobby notices that the "scan" function does not allow scanning once a CD is playing. Bobby purchases the model despite this without mentioning the defect to Sammy. Bobby takes the CD player to his office where he uses it for three months before deciding that he wants to return it. Under these circumstances:
bobby has accepted the CD player
The 20th century product liability law is best characterized by the phrase:
caveat emptor.
Today, most appealable decisions from the lower courts fall within the Supreme Court's _____ jurisdiction, under which the Court has discretion whether to hear the appeal.
certiorari
Which of the following is also called "judge-made law"?
common law
A(n) _____ must state the remedy requested in the case.
complaint
A copyright comes into existence upon the:
creation and fixing of a protected work.
Which of the following would traditionally not be recoverable as part of a workers' compensation claim?
disability benefits
An important difference between duress and undue influence is that:
duress is wrongful coercion, while undue influence is unfair persuasion.
For the consideration requirement in contracts to be met:
each party must give consideration.
A(n) _____ clause is a provision in a contract that purports to relieve one of the parties from tort liability.
exculpatory
Although the president or a state's governor does not have typical law-making powers, these officials have limited power to issue laws called:
executive orders.
In the case of a merchant, _____ means honesty in fact as well as the observance of reasonable commercial standards of fair dealing in the trade.
good faith
To satisfy the consideration requirement to form a contract, the consideration exchanged by the parties must:
have legal value.
Patent _____ occurs when a defendant, without authorization from the patentee, usurps the patentee's rights by making, using, or selling the patented invention.
infringement
A(n) ______ misrepresentation is not intentionally deceptive.
innocent
Under the common law, an offer for a unilateral contract:
is accepted by making the promise requested by the offer.
A trade secret differs from a patent in that a trade secret:
is guarded by the creator.
A contract that cannot be performed within one year from the day on which it comes into existence:
is within the statute of frauds.
On May 1, Dix and Wilk entered into an oral agreement by which Dix agreed to purchase a small parcel of land from Wilk for $450. Dix paid Wilk $100 as a deposit. The following day, Wilk received another offer to purchase the land for $650, the fair market value. Wilk immediately notified Dix that he would not sell the land for $450. If Dix sues Wilk for specific performance, Dix will:
lose, because the agreement was not in writing and signed by Wilk.
A method of alternative dispute resolution in which a neutral third party helps the parties reach a cooperative resolution of their dispute by facilitating communication between them, clarifying their areas of agreement and disagreement, helping see each other's viewpoints, and suggesting settlement options, but who cannot make decisions that bind the parties, is called:
mediation
Cases are said to be _____ when there no longer is a real dispute between the parties.
moot
Mike sues Randy for "aesthetic pollution." The basis for his suit is Randy's habit of wearing clothes that Mike considers to be ugly. Mike's complaint offers details of Randy's "ugly" clothing in many separate, numbered paragraphs. However, no law requires one to pay damages for wearing clothes that another considers ugly and for causing aesthetic dissatisfaction to some other party. Thus, Randy wants to defeat Mike's claim as fast as possible. The best procedural device for doing so is the:
motion for a directed verdict.
If the shipping terms are cash on delivery (COD), then the buyer:
must pay for the goods before inspecting them unless they are marked "Inspection Allowed."
Toby, an Ohio real estate broker, misrepresented to Allen that he was licensed in Michigan under Michigan's statute regulating real estate brokers. Allen signed a standard form listing contract agreeing to pay Toby a 6% commission for selling Allen's home in Michigan. Toby sold Allen's home. Under the circumstances, Allen is:
not liable to Toby for any amount because Toby violated the Michigan licensing requirements.
Todd is a licensed real estate broker in Ohio. One of Todd's largest clients, Sun Corp., contracted in writing with Todd to find a purchaser for its plant in New York and agreed to pay him a 6% commission if he was successful. Todd located a buyer who purchased the plant. Unknown to Todd, New York has a real estate broker's licensing statute which is regulatory in nature, intended to protect the public against unqualified persons. Todd violated the licensing statute by failing to obtain a New York license. If Sun refuses to pay Todd any commission and Todd brings an action against Sun, he will be entitled to recover:
nothing
Under the Takings Clause, a "taking":
occurs when the government uses formal eminent domain procedures to condemn private property.
Sue wanted to purchase a car. She went to "Honest Bob's" used car sales. She was interested in a classic 1956 Jaguar XK 140 Roadster. Bob told her "this is a great car—it runs like a dream, it is a sweet ride." Bob's statements are legally considered to be:
opinion statements.
An obligor:
owes a duty to perform under a contract.
The _____ are the documents the parties file with the court when they first state their respective claims and defenses.
pleadings
To qualify as a trade secret, it must:
possess sufficient value or originality.
In determining whether an offeree accepted an offer, the court is looking for the same _____ on the part of the offeree that it found on the part of the offeror.
present intent to contract
Jack is Martha's boss. They are lifeguards working for the City of Miami. Jack is very interested in developing a romantic relationship with Martha. However, Martha is not attracted to Jack. His attention is unwelcome to her. Jack tells Martha that if she will engage in sexual relations with him, he will give her the highest employee evaluation possible, and she will get a raise. This is an example of:
quid pro quo sexual harassment.
The equal protection standard is generally judged in a lenient manner. However, laws that discriminate regarding _____ are made to undergo a much more rigorous test.
race
Today, trespassers who are injured while on someone else's land:
recover only when the possessor knows they are likely to trespass.
Once an assignment occurs, the assignee acquires:
same rights as the assignor had prior to assignment.
In order to satisfy the statute of frauds, the parties' writing must be:
signed by both parties
Agnes, a waitress at a restaurant, suffers severe anxiety attacks when business gets really busy at her job. As a result, she is a very ineffective waitress when the restaurant is crowded. For this reason, she is fired. Maybe her employer could have assigned Agnes to shifts when the restaurant is not busy, but this would have irritated the other waitresses, caused significant scheduling difficulties, and appreciably increased expenses. If Agnes sues the restaurant under the Americans with Disabilities Act (ADA), the restaurant's best argument would be:
that accommodating Agnes would cause the restaurant undue hardship.
The primary distinction between an action based on innocent misrepresentation and an action based on common law fraud is that, in the former, a party need not allege and prove:
that the party making the misrepresentation had actual or constructive knowledge that it was false.
Which of the following takes priority over a federal statute?
the US Constitution
Goods are being sold by Anne in Seattle and shipped by ABC Railroad to Brian in Portland, Oregon. In this situation, the term "FOB Seattle" means that the risk of loss passes from the seller to the buyer when:
the goods are delivered to ABC Railroad in Seattle.
The common law placed the risk of loss on _____ at the time of the loss.
the party that had technical title
The doctrine of standing to sue implies that:
the plaintiff has a substantial stake in the litigation.
In a "mixed" contract for the sale of both goods and services, the court will apply the contract rules of the UCC or of the common law, depending on whether:
the predominant purpose of the contract is goods or services.
The difference between a public figure and a private figure regarding defamation cases is that:
the public figure has to prove actual malice.
Homer's negligence caused an automobile accident with Bart. As a result of the collision, Bart's car collides with a telephone pole, causing the pole to fall. The falling pole then takes out some electrical power lines. The resulting power outage leaves Patty without any light in her apartment. As she fumbles in the darkness, she trips over her cat, falls, and is injured. Patty sues Homer. In order to avoid liability, Homer's best defense is that:
there is no actual cause between the negligence and the injury.
Courts tend to consider three factors in determining whether an item is a fixture. Which of the following is not one of those factors?
timing
Any word, name, symbol, device, or combination thereof used by a manufacturer or seller to identify its products and distinguish them from the products of competitors is called a:
trademark
Title VII of the 1964 Civil Rights Act forbids employment discrimination on the basis of race, color, religion, sex, and national origin.
true
How long is the legal temporary monopoly that present patent laws provide to the inventor after the filing of the patent application?
twenty years
Under the doctrine of _____, courts would refuse to grant the equitable remedy of specific performance for breach of a contract if they found the contract to be oppressively unfair.
unconscionability
Which term references threats or coercion that is used by one party to a contract to force another to agree to a contract?
undues influence
The implied warranty of fitness for a particular purpose is violated when the goods are:
unfit for any use
A contract that fails to comply with the statute of frauds is generally:
unforceable
An oral contract that is covered by the statute of frauds is:
unforceable
Normally, an illegal contract is:
unforceable
A contract where formation was induced by duress is an example of a contract that is:
voidable
In an assault case, it is irrelevant:
whether the threatened contact actually occurs.
Bill is 25 years old. His uncle promised in writing to pay him $2,000 if Bill would refrain from drinking alcohol for one year. Bill refrained from drinking alcohol for one year. However, his uncle now refuses to pay Bill as they agreed. The uncle claims that because Bill suffered no detriment by refraining from alcohol, his non-drinking does not constitute legal consideration, and, therefore, no contract was formed. If Bill sues his uncle, Bill will:
win because Bill had a legal right to drink alcohol.
