Business Law 060- T/F & Multiple Choice

At Parkside Bistro, Ogden believes that he was overcharged and shoves Nellie, the waiter. Nellie sues Ogden, alleging that the shove was a battery. Ogden is liable a. if Parkside did not overcharge Ogden. b. if the shove was offensive. c. if Ogden acted out of malice. d. under no circumstances—the shove was not a battery.

b

Carl threw a bomb into the office of his insurance agent, intending to kill the agent because the company had disallowed his claim. The agent wasn't in the building, but the bomb seriously injured his secretary, who was working in the office. a. Carl cannot be liable to the secretary for any torts because he did not intend to hurt her. b. The intent to harm the agent is transferred to the secretary who can sue Carl for her injuries with an intentional tort cause of action. c. Carl has committed a crime, but he is not liable for any torts. d. Carl has committed the tort of intrusion.

b

Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the re¬ward because he a. did not confer a benefit on Elmo by returning the dog. b. did not know of the reward when he found and returned the dog. c. does not need the money. d. returned the dog.

b

Pat and Sally started a charcoal fire for Sally's backyard barbecue and left it uncovered. Then Sally went into the kitchen to make hamburger patties. While Sally was inside, Pat backed up to catch a football and hit the grill, knocking the coals onto his feet. In a pure comparative negligence state, who is liable? a. Sally is liable for ALL of Pat's injuries. b. Sally is liable for Pat's injuries in proportion to the degree of fault or negligence found against her. c. Sally is not liable for any of Pat's injuries. d. Sally is liable for Pat's injuries only if Pat was more negligent than Sally.

b

The local supermarket has a large, glass front door which is well lighted and plainly visible. Nelson, who is new in the neighborhood, mistook the glass for an open doorway and walked into it, shattering the door and injuring himself. a. The store is strictly liable to Nelson. b. The store is not liable to Nelson since the door was well lighted and plainly visible. c. The Palsgraf case would not allow Nelson to recover. d. The store has no duty to Nelson.

b

When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is a. an express contract. b. an implied contract. c. a quasi contract. d. no contract.

b

Which of the following is a common criticism of deontological ethical theories? a. They are excessively pragmatic. b. They are rigid and excessively formal. c. They only consider actions by their motives. d. They fail to consider universal principles.

b

Which of the following is a common criticism of ethical relativism? a. It promotes open-mindedness and tolerance. b. It assumes that a person's actions are always correct for that person, but if that is true, then all behavior is, by definition, moral. c. It is rigid and excessively formal. d. It is too judgmental.

b

Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is a. a valid offer. b. not a valid offer because the terms are not definite. c. not a valid offer because Yvon did not state an intent. d. not a valid offer because Zack did not respond.

b

If a statute is found to be applicable to a fact situation, then the courts will hold that an unexcused violation of that statute which causes an injury to another is: a. strict liability. b. res ipsa loquitur. c. negligence per se. d. assumption of the risk.

c

"Consideration" refers to the voluntary consent of all of the parties to a contract.

F

A defendant will be liable for all harm that can be traced back to the defendant's negligence.

F

A major difference between trespass to personal property and conversion is that the latter does not require intent to harm whereas trespass does.

F

A party can avoid a contract on the basis of insanity on the basis that the party has significantly lower intelligence than the other party.

F

A person who believes in the situational ethics theory would agree that precise guidelines for business behavior must be developed and adhered to by business professionals.

F

A person who falls asleep while driving would not be liable for any resulting injury since it would be an unavoidable accident.

F

A violation of a statute constitutes negligence per se regardless of whether the injured party is a member of the class protected by the statute.

F

A void contract is enforceable if it is in writing.

F

A promise by one party to pay another for refraining from an act is enforceable.

T

Utilitarian notions underlie cost-benefit analysis.

T

A photographer taking photos of a movie star with a telephoto lens would NOT be guilty of intrusion if: a. the movie star was in a restaurant at the time. b. the pictures were not published. c. the movie star was in bed at the time. d. the photographer never entered onto the movie star's property.

a

An action for negligence consists of three elements, each of which the plaintiff must prove. These elements include: a. injury. b. res ipsa loquitur. c. a reasonable person. d. All of the above.

a

An ethical decision-making approach that relies on a central authority or set of rules, such as the Koran or the Bible, is: a. ethical fundamentalism. b. ethical relativism. c. rule utilitarianism. d. act utilitarianism.

a

Clay offers to pay Dorianne $50 for a golf lesson for Estee. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have a. a bilateral contract. b. a trilateral contract. c. a unilateral contract. d. no contract.

a

Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have a. an executory contract. b. no contract. c. a quasi contract. d. an informal contract.

a

If Janice, while driving her car, negligently runs into Paul, a pedestrian who is carefully crossing the street, Janice is liable for: a. physical injuries Paul sustains from the collision because Janice's negligent conduct proximately caused harm to a legally protected interest. b. offensive contact if her side mirror brushes against Paul, even if there are no physical injuries to him. c. offensive contact if her car touches Paul's coat, even if there is no damage to the coat. d. All of the above.

a

Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is a. terminated. b. valid for a reasonable time to give Java a "second chance." c. valid for the period of time prescribed by a state statute. d. valid until ICBI revokes the offer.

a

Mary's car was parked just outside the east door of the Civic Center. When she tried to exit, three ominous-looking gang members were blocking that door. She called the police who arrested the three for loitering. If Mary brings suit against them for false imprisonment: a. she will lose if there was another exit she could have used. b. she will lose because she was not harmed by the confinement. c. she will win even if there was another way out because she was, in effect, being confined to the Civic Center. d. she will win because they were blocking her passage to her car.

a

Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate a. after a reasonable period of time. b. after a typical work week (five business days). c. after a usual month (thirty calendar days). d. never.

a

Scot enters into a contract with Tiffany that later proves voidable at Tiffany's option. If she elects to avoid any duty to perform under the contract a. both parties are released from it. b. neither party is released from it. c. only Scot is released from it. d. only Tiffany is released from it.

a

Under which ethical system would it be ethical to compel a few citizens to undergo painful or fatal medical tests in order to develop cures for the rest of the world? a. Utilitarianism. b. Ethical fundamentalism. c. Distributive justice. d. Libertarianism.

a

Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be a. objectively worthy. b. grossly inadequate. c. legally sufficient. d. practically sound.

c

Ralph causes a multi-vehicle accident on a city street. Ralph is liable to a. all those who were injured in some way by the accident. b. only those who were uninsured. c. only those whose injuries could have been reasonably foreseen. d. only those whose vehicles were closest to Rod's van.

c

Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She accepts and hands the book to Vince. Sun-Hi's delivery of the book is a. not consideration because its transfer is a preexisting duty. b. not consideration because its exchange is not a bargain. c. consideration. d. not consideration because its value is legally insufficient.

c

Arnie negligently stopped his car on the highway. Beth, who was driving along, saw Arnie's car in sufficient time to attempt to stop. However, Beth negligently put her foot on the accelerator instead of the brake and ran into Arnie's car. a. Arnie's contributory negligence will prevent his recovery from Beth in all jurisdictions. b. Beth had the last clear chance to avoid the accident and will bear legal responsibility for it. c. Arnie has assumed the risk of the accident. d. Because both parties were negligent, in a state that follows the comparative negligence doctrine, both parties will share the liability for their injuries.

d

In which of the following situations would a landowner have liability to a trespasser? a. Where the landowner has rigged up a trap to injure anyone coming onto the property without permission. b. Where a landowner next to a nursery school has an unfenced swimming pool and one of the children falls into the pool. c. Where a trespasser trips over some lawn furniture in an unlighted backyard. d. Two of the above, (a) and (b).

d

Kelsey promises to pay Jon, her son, $15,000 if he obtains his degree at Ivy University, where he is currently in his second year. Jon graduates. Kelsey is a. not required to pay, because Jon was already at Ivy. b. not required to pay, because obtaining a degree benefits Jon. c. required to pay, because a job can be hard to find after college. d. required to pay, because Jon obtained a degree at Ivy.

d

Mark is out sailing in his boat one evening when he hears a young girl crying for help in the middle of the river. Which of the following is true? a. Mark MUST help the girl or he will be liable for negligence. b. Mark must help the girl ONLY if he knows her. c. Mark MUST help the girl if he is the girl's uncle. d. Mark MUST help the girl if he begins to rescue her and increases her danger.

d

Mona asserts that a deal she entered into with Nate is an unenforce¬able contract. Defenses to the enforcement of a contract include a. a desire not to perform. b. adverse economic consequences. c. results that do not match expectations. d. the lack of a party's voluntary consent.

d

Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is a. a contract for the sale of the building. b. a contract to consider the offer before any others. c. a contract to negotiate a sale of the building. d. no contract.

d

A blind person will be held to the standard of care of the reasonable blind person rather than that of the reasonable sighted person for purposes of determining negligence.

True

In applying the reasonable person standard, the court takes into account a person's physical, but not mental handicaps.

True

Crosby believes that he and Dakota agreed he would act as her personal sports trainer for seven workout sessions. In a later dispute, the existence of any contract can be judged by a. the parties' statements at the time of their alleged contract. b. what the defendant claims was the parties' intent. c. what the plaintiff claims was the parties' intent. d. what the parties agree they intended.

a

Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores. Nixie agrees and quits her job with Pic-U Grocery, but Herm does not hire her. Herm is most likely liable to Nixie under a. the concept of accord and satisfaction. b. the doctrine of promissory estoppel. c. the preexisting duty rule. d. no circumstances.

b

Homebuyers Mortgage Corporation's promise to pay its employees a year-end bonus "if it seems like a good idea at the time" is a. an enforceable contract. b. an illusory promise. c. an unconscionable proviso. d. a unilateral pact.

b

Mary promises to pay her assistant Ned $10,000 in consideration of the ser¬vices he provided over the years. Mary never pays Ned. Mary is a. liable for payment of the $10,000. b. liable only if Ned still works for Mary. c. not liable, because the consideration is in the past. d. not liable, because the consideration was unintentional.

c

Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is a. an acceptance of an offer. b. an offer. c. a statement of future intent.

c

An ethical relativist looks to a central authority, such as the Bible, to guide her in ethical decision making.

F

An ordinary person standard determines whether allegedly negligent conduct resulted in a breach of a duty of care.

F

Business ethics, the study and determination of what is right and good in business settings, has a special set of ethical principles that applies only to the world of business.

F

By law, bystanders are always required to help others in peril.

F

Deontological theories assess good and evil in terms of the consequences of actions.

F

For consideration to have "legally sufficient value," it must con¬sist of goods or money.

F

If a minor is extremely mature and of above average intelligence, her contract will be valid.

F

In contract law, "consideration" refers to the courtesy that one party shows another in negotiating a deal.

F

Intoxication always makes a contract either void or voidable depending on the level of intoxication.

F

Like legal analyses, analyses of ethics have a central authority and follow clear-cut, universal standards.

F

Minors are liable for the contract price of any necessaries of life for which they contract.

F

No offer may be revoked before it is accepted.

F

The doctrine of quasi contract can be used only when there is an actual con¬tract that covers the matter in controversy.

F

The only requirement of a valid contract is that it be voluntarily entered into.

F

To avoid misunderstanding, a minor's ratification of a contract must be done in writing in order to be effective.

F

A "reasonable person standard" does not apply to children since they do not have the judgment, intelligence, knowledge, or experience of adults.

False

If a raccoon gets loose from a cage and harms someone, the owner can escape liability by showing that he took great care to keep the animal confined.

False

Claudia's baby daughter Karynne is snatched from her arms at the grocery store. The kidnapper threatens to drop the baby if the store does not hand over the contents of the vault. Claudia may: a. trip the kidnapper, because she is limited to nonlife-threatening force. b. shoot the kidnapper, since she can protect the baby in the same way as she can protect herself. c. not seriously harm the kidnapper, since she is not in danger. d. only call the police, since she cannot take the law into her own hands.

b

Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have a. an executed contract. b. an express contract. c. an implied contract. d. a quasi contract.

b

Barb goes to Marlin's Department store to look for clothes. The store happens to be in the process of remodeling, and there is a lot of clutter in the aisle. Barb trips over the clutter and breaks her leg. What standard of care does the store have toward Barb under the circumstances? a. None, because she came to the store voluntarily. b. The store owes her a duty of only ordinary care, because she is a trespasser. c. Because she is a public invitee, the store must warn her of hazards of which the store knows but which Barb is not likely to recognize. d. Because Barb is a business visitor, the store must exercise reasonable care to protect her against dangerous conditions she is unlikely to discover.

d

Ashley wrote a defamatory letter regarding Brian which she mailed to Brian, but which she did not show to anyone else. a. Ashley has committed the tort of slander. b. Ashley has committed the tort of libel. c. Ashley has committed neither libel nor slander, because there has been no publication of the letter.

c

Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has a. accepted the offer. b. made a counteroffer without rejecting the offer. c. rejected the offer and made a counteroffer. d. rejected the offer without making a counteroffer.

c

Deepwater Mining Corporation offers to sell East China Refining, Inc., a certain quantity of unrefined oil. If East China sends an acceptance via Deepwater's authorized mode of communication, it will be effective when it is a. in transit. b. received. c. sent. d. written.

c

Francenie was digging a trench to install a drainage pipe along her property line and she accidentally tunneled under a small area on her neighbor's property. The entry onto the neighbor's property: a. cannot be a trespass because it was beneath the surface of the land. b. is not a trespass unless there was some actual damage to the neighbor's land. c. is a trespass. d. is not a trespass because Francenie was under the reasonable belief that she owned all of the land on which she was digging.

c

Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail's a. payment of money only. b. performance of a par¬ticular act only. c. promise only. d. prudent awareness only.

c

Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, "I'll pay no more than $5,000." Grant says, "Forget it." Grant's offer was terminated by a. Grant. b. Honda. c. Ivy. d. no one—Grant's offer is still open.

c

A transaction that lacks a bargained-for exchange lacks an element of consideration.

T

A unilateral contract is formed when the one receiving the offer completes the re-quested act or performance.

T

After becoming sober, an intoxicated person can ratify the contracts entered into while intoxicated.

T

An executed contract is one that has been fully performed.

T

As a result of regulations by the Securities and Exchange Commission and the stock exchanges, the boards of directors of the great majority of publicly held corporations consist primarily of outside directors, and these corporations have audit committees of outside directors.

T

Brad doesn't like Carl and especially dislikes Carl's new felt hat, so he intentionally knocks it off Carl's head in order to embarrass Carl. Brad has committed a battery.

T

Damages awarded in excess of normal compensation to punish a defendant for a serious civil wrong are known as punitive damages.

T

Ethics can be defined broadly as the study of what is good or right for human beings.

T

For purposes of intentional torts, a person can have the intent to cause harm if the harm is substantially certain to occur even if he or she doesn't desire that such harm occur.

T

Inadequate consideration may indicate undue influence.

T

It is possible for legal acts to be immoral.

T

Resolving whether a promise should be enforced is a function of contract law.

T

Situational ethics, unlike ethical relativism, judges a person's ethics, but first looks at the decision or act from the perspective of the actor.

T

Some promises are not legally binding.

T

The intention to enter into a con¬tract is judged by outward, objective facts as interpreted by a reasonable person.

T

Under comparative negligence, the court apportions damages between parties in proportion to the degree of fault or negligence it finds against them.

T