Business Law BUL2241

When John comes home from work one evening, he finds that the leaves in his frontyard have been raked and put in bags. Later, a man comes to collect for the yard work done. John refuses to pay for the work since he has never seen the man before and did not hire him to do his yard work. Which of the following answers is most accurate?

John would not have to pay for the yard work as he did not have the opportunity to reject the offer.

Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1. The contract contained a provision which required all modifications to be written and signed by the company presidents. In early August, an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil; one in September and the second one in December. By September 30, when only 500 gallons had been delivered, NSB sued. The likely outcome of this lawsuit is:

NSB wins because the modification has to be in writing.

Hank has contracted with Nancy to purchase 50 bags of wheat that she stored in her barn for $25 each. A few days before delivery, the barn is destroyed by fire. Which of the following statements is correct?

Nancy is discharged from any further obligations under the contract due to destruction of the subject matter.

Nikki was a tax accountant with HBR Accounting. Nikki decided to do some tax consulting in the evenings and on weekends. HBR is unaware of Nikki's consulting work. Which statement is correct?

Nikki has breached a fiduciary duty to HBR since she is competing with HBR.

On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and agrees to pay Deb $600 on January 27. Which of the following is correct?

On January 16, the contract was executory.

Ron, a minor, goes to the hospital for treatment of the flu. On the new-patient form Ron signs, he agrees to pay for any care or treatment he receives. When billed for the treatment:

Ron must pay for the value of the benefit he received, because medical care is a necessary.

A sales representative at Oxtren, Inc orally told the purchasing agent at Wety, Inc. that its industrial saw is exceptional. Which statement is correct concerning the claim that the saw is exceptional?

The claim is not a warranty because it is sales puffery.

Arthur offers to sell his fishing boat to Mark. Before they conclude their negotiations, Arthur dies. Which of the following is true?

The offer terminates automatically upon Arthur's death.

Which of the following sales would fall within the bulk sales provisions of Article 6?

The sale of a substantial part of a store's inventory.

Oxtron, Inc. sent the following price list to its customers. Dispensers SBC-500J $670.00 True TDD-1 $875.00 True TDD-2 $1,465.00 True TDD-3 $1,515.00 CO2 Tank and Regulator $150.00 Which statement is correct?

These price quotes would generally not be considered offers

Jackie hires Charles to lay new carpet in her bedroom. Charles does such a bad job, that the only way to fix the carpet is to start over and relay the carpet. Which of the following best describes this situation?

This is a material breach. Jackie owes nothing to Charles.

The Chief Executive Officer of Ticor, Inc. must decide about the disposal of toxic waste materials. Which of the following considerations should help the CEO reach an ethical business decision?

Toxic waste disposal law., The harm the disposal could cause to the environment., The impact on the business if the decision is publicly disclosed through the news media. ****all of the above***

Under a contract, Danielle is required to make a set of draperies out of fabric chosen by the homeowners, the Flynns. After Danielle makes the draperies according to the contract requirements, her duties under the contract are discharged.

True

Van hires Terri to add an electrical outlet to his living room for his new HDTV. Terri does an excellent job, and the new outlet works perfectly. She presents Van with a bill for $200. But Terri is not a licensed electrician. Her state sets licensing standards in the profession to protect the public. And so, can Van refuse to pay Terri's bill. Apply Florida law.

Under Florida law, an unlicensed contractor does not get paid and has no enforceable claim.

Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter's boss told him, "I'm really grateful for the year that you have worked here. I am going to give you a bonus of $1,000 in your last paycheck." When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be:

Walter will lose, as he gave no consideration.

A gun manufacturer in Helena, Montana agrees to sell guns and ammunition to the ATF in Washington, D.C. The terms of the contract specify that the goods are to be shipped "FOB, Chicago." When does the buyer acquire title and risk of loss?

When the goods reach Chicago.

In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct?

Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable.

Miles purchased a motorcycle from LB Cycles. He later learned that the salesman had made misrepresentations to induce him to make the purchase. Under UCC Section 2-721, can Miles rescind the contract?

Yes, and he can sue for damages whether the misrepresentation was fraudulent or innocent.

Henry, a tomato producer, purchases 15 gallons of a new herbicide from GardenWorld to get rid of weeds. Henry bought the herbicide without consultation with GardenWorld for suggestions. Although Henry correctly knew that any herbicide would kill the weeds in his garden, after he sprayed the new herbicide, he realized that it did not kill the weeds. The weeds even seemed to grow! Did GardenWorld breach a warranty?

Yes, the implied warranty of merchantability.

Gregg Young, the CEO of BJY, Inc., insisted on calling Mamdouh El-Hakem "Manny" or "Hank" even when El-Hakem asked him not to. El-Hakem was of Arab heritge. Young argued that a "Western" name would increase El-Hakem's chance of success and would be more acceptable to BJY's clientele. Does this behavior violate the law?

Yes, this is a violation of Title VII

John, his parents, and three brothers own all the stock of their family farm corporation. This corporation, which is taxed as a corporation, is probably:

a close corporation.

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes. The potatoes are beginning to rot. If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad, then this action would be considered:

a reasonable mitigation of damages.

The legislature of the state of Iowa passed a law modifying the rules governing child custody. This law is:

a statute.

In 1998, the President of the United States and other world leaders signed an agreement on global warming called the Kyoto Protocol. Subsequently, the Senate was asked to ratify the agreement. The Kyoto Protocol is:

a treaty.

A rock group assigns its payment under a performance contract to the Costume Shop, a business that has supplied the group with outrageous stage outfits, and to which the group owes a great sum of money. This is

a valid assignment because this is a simple transfer of the right to receive money.

President Nixon issued wage-price controls in an effort to stabilize the economy. This use of executive power was:

a valid use of power, known as an executive order.

Jennifer has offered to sell her computer for $1750 to Jack. She tells Jack that the computer is only six months old but, in fact, the computer is three years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer's representations. This contract is:

a voidable contract, one that Jack can void.

Generally, in comparison to a donee beneficiary, and a creditor beneficiary has:

about the same legal rights.

Congress enacted legislation in 1933 to regulate the securities industry and prohibit various forms of fraud with securities. The Securities Exchange Act of 1934 was passed a year later. This law created the Securities and Exchange Commission (SEC) as an independent regulatory entity whose function is to administer the two laws. The SEC has generated rules and regulations to administer these acts. These rules and regulations are:

administrative law.

When the Food and Drug Administration allows a certain drug from being marketed in the United States, this is:

administrative law.

Which of the following statements about specific performance is correct?

all of the above: equitable remedy, it forces parties to perform their contracts, It is usually ordered in cases involving the sale of land or of a unique object.

If Ellen and Daryl are in disagreement as to the exact amount of money that Ellen owes Daryl, then they may choose to form a new agreement at a set amount. If they both perform the new agreement, their conduct would be an example of:

an accord and satisfaction.

Specific performance may be available for the breach of a contract to sell:

an original painting

An agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as:

an output contract.

If a court awards nominal damages it will generally:

award very little money.

Ruppart Manufacturing has a contract for the sale of 100 cases of teaching supplies to Teachers Co-op, Inc. Payment of the order is to be made in installments over the next year. Ruppart Manufacturing keeps a security interest in the cases sold to assure payment by Teachers Co-op, Inc. When the order is completed, Ruppart ships the order. Legally:

both Ruppart and Teachers have an insurable interest in the supplies.

If a court orders rescission and restitution of a contract under which Nala sold a baseball card to Shirley in exchange for $450:

both a and b: Shirley must return the baseball card., Nala must return the $450.

In the case Orkin Exterminating Company, Inc. v. Jeter, the Court awarded Jeter:

both compensatory and punitive damages.

In January, Eddie contracts to sell 100 bushels of soybeans that fall. This contract:

can be valid; but title to the soybeans cannot pass until the soybeans exist.

Pamela hired Lena to sell her business. Lena:

can buy the business only with Pamela's permission.

The term F.O.B.:

can indicate a destination or shipment contract.

Mercury Motors inadvertently mixes up a work order on Peter's car. Peter brought the car in to have the tires rotated. Mercury tuned up the motor by mistake, conferring a benefit on Peter. If Mercury Motors insists that Peter pay for the price of the tune-up, Mercury Motors:

cannot recover its expectation interest because there was no enforceable agreement.

All Seasons, Inc. ordered $5,000 worth of Christmas decorations from Santa, Inc. The shipment of decorations was to arrive no later than October 1, in time for the Christmas season. The shipment did not arrive until December 1. In spite of the delay, All Seasons covered a third of the order through other suppliers, but had to pay 15% more than the price under contract with Santa, Inc. As a further result of the delay, All Seasons' sales were down 25%. All Seasons can recover:

compensatory damages and consequential damages.

Ben enters into an agreement with Betsy to buy her lake cabin provided his application for a mortgage is approved.This is a:

condition precedent.

The doctrine of stare decisis applies to:

courts

The Uniform Electronic Transmission Act (UETA):

declares that a contract or signature may not be denied enforceability just because it is in electronic form.

In analyzing a situation to determine how to act ethically, a business manager should:

determine whether an alternative violates important values.

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be:

enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated.

A quasi-contract is the legal designation of an oral contract.

false

According to the Otsuka v. Polo Ralph Lauren Corporation case, in which an employee provided a former employee with discounts and merchandise credits, the court held not all employees owe a duty of loyalty to their employer.

false

According to the UCC, one or more open terms will cause a sales contract to fail for indefiniteness.

false

Any contract involving a sale of goods of $500 or more must be in writing to be enforceable.

false

Generally, neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

false

Hasbro, Inc., the trademark owner of "Candy Land," sought a court injunction to prevent Internet Entertainment Group, LTD from using the domain name, "candyland.com." A jury will decide whether Hasbro is entitled to this remedy.

false

Lee and Jan are debating whether to use an LLC or corporate form for a new business. Major advantages of an LLC over a corporation include the tax status of an LLC, the fact that an LLC is easier and less expensive to set up than a corporation, and the fact that venture capitalists generally prefer to invest in LLCs over corporations.

false

Myrtle walks into Hank's Hardware Store and says, "I need metal storage shelves that can hold 500 pounds." Hank directs her to a metal storage shelving system. Myrtle buys the shelving recommended by Hank. When Myrtle puts 475 pounds of weight on the bottom shelf, it breaks. Hank's Hardware breached the warranty of merchantability.

false

Nominal damages are awarded in contract cases in which a damage amount was named in the contract.

false

Norm and Frank have a legal contract that is silent with regard to an assignment of the contract. In order for Norm to assign all or part of his rights under a contract, Frank must grant permission to Norm to make the assignment legally effective.

false

Pushy Pat, a persuasive salesman, talked Naive Nancy into purchasing something she didn't really need or want. Naive Nancy may rescind the contract because of undue influence.

false

Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is not within the statute of frauds and therefore doesn't need to be in writing to be enforceable.

false

Tess, a tenant, moves from her apartment in breach of the lease agreement. The landlord, Lenny, has no duty to mitigate his damages by attempting to rent the apartment.

false

To form an LLC, a charter and an operating agreement must be filed with the Secretary of State in the jurisdiction where the business will operate.

false

When a party to a contract makes a unilateral mistake, the contract:

generally cannot be rescinded by the mistaken party unless the contract is unconscionable or it is proven that the nonmistaken party knew of the error.

Chance is a traveling marketing representative for a publishing company. He is an independent contractor. One afternoon while driving to a meeting, he negligently runs a stop sign and causes an accident. Judy is injured. Judy can:

hold Chance but not the company liable.

Ethics is the study of:

how people should act.

Alternatives that advertising firms have when dealing with ethics include:

ignore ethics, refuse to create harmful ads, try to minimize racism

Crytrin Manufacturing, Inc. contracted with Molfrey, Inc. to manufacture three large pieces of equipment. The contract contained a clause stating that Crytrin agreed to repair or replace any defective equipment, but that was the only remedy Molfry would have. This clause:

is a limitation of remedy clause, which limits or excludes normal remedies permitted under the Code.

An exculpatory clause is generally unenforceable when:

it involves public transportation.

A contract most likely will be declared unconscionable if:

it is oppressive and the weaker party did not fully understand the consequences of the agreement.

While Workers' Compensation laws have many protections for workers injured on the job, the one thing workers' compensation laws preclude is:

lawsuits against the employer for the injury

The business form that is taxed as a partnership and gives all owners limited liability, is a:

limited liability company.

Wright Company contracted with the city of St. Louis to train and employ disadvantaged youths. If Wright fails to fulfill the contract and is sued by one of the disadvantaged youths, the youth would:

lose, as he is an incidental beneficiary.

Under the UCC, if a seller of goods breaches the contract, the buyer:

may "cover" and then receive the difference between the original contract price and the "cover" price.

Mulligan Domestics Co. breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills, although the fabric met the contract specifications. Wellington:

may choose not to resell the fabric and settle for the difference between the contract price and the market value.

A court:

may refuse to enforce an express condition intended by the parties if the court determines it is unfair and harmful to the general public.

Jan Jiller applied for a job as a paralegal. Her potential employer did a social media search and found an entry which had been posted 5 years ago. The entry said, " I just quit my job with a law firm because all male lawyers are chauvinist pigs and all female lawyers are lesbians. I hope they all rot in Hell." Jill was told by her potential employer that based on her posting, the firm had decided not to hire her. The decision of the firm is:

not in violation of any law

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100 bucks!" John has:

not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

Under the Employee Polygraph Protection Act of 1988, which of the following could be required to submit to a polygraph prior to being hired:

pharmacist

A rule that establishes how a juror may be refused is a rule of:

procedural law.

Research has shown that the least important motivation for managers in behaving ethically is:

profitability.

Contracts that do not arise from mutual agreement but are created by courts to avoid unjust enrichment are:

quasi-contracts.

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days. The parties negotiated and meant to say in the written agreement, delivery in 50 days. If the two cannot settle this dispute, and Archie still wants to deliver the champagne, then Archie should sue for the remedy of:

reformation

When courts consider economic duress, they consider all the following factors EXCEPT:

relative size of the contract.

Which of the following would be a BFOQ?

requiring a female to work as an attendant in a female restroom

Fred purchased a Cheapp Lawnmower because the Cheapp Company salesperson intentionally misled him by assuring him that the mower was self-propelled, mulched, and had a five-year unlimited manufacturer's warranty. When Fred finds out that his new Cheapp Lawnmower is not self-propelled, does not mulch, and has a 90-day warranty, he may successfully sue for:

restitution and possibly punitive damages.

George's Grocery orders two dozen live lobsters from Sea Food Flyers. George's is to keep the lobsters happy by keeping them in a tank following certain instructions to keep the water at the right temperature, etc. The sale is made on a trial basis and George's may return all unsold lobsters at the end of 10 days. This contract is a:

sale or return.

Julia worked as a waitress at Italian Garden Restaurant. She is 60. Recently, she was terminated because the restaurant was closed for the Covid-19 virus. The restaurant only has take out service now. Julia has sued alleging she was singled out for disparate treatment based on age discrimination because no other employee over 50 was terminated. The problem with Julia's claim from a legal point of view is:

she was not replaced by a younger worker

The Grand Hotel of Jonesville, Kentucky, purchased 200 chairs from Holton Furniture, whose business is in Minnesota. The purchase order included the following term: "F.O.B. Minneapolis, MN." The contract makes no mention of risk of loss or title. The contract can be described as a:

shipment contract.

Treasury stock is:

stock that the company has sold but later bought back.

The party receiving an assignment is:

the assignee

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business:

the contract may indicate a method for determining the price, without stating a definite price.

The proceeds, if any, of a derivative lawsuit go to:

the corporation.

Martha owns a gutter cleaning business. Under a service contract with John Miller, she substantially performed her obligations. She is entitled to receive:

the full contract price minus the value of the defects.

The business judgment rule doesn't apply if:

the manager's decision amounted to self dealing.

If an offer specifies no time limit in which to accept:

the offeree has a reasonable period during which to accept

Elias offered to sell his computer to Kevin. Elias is :

the offeror.

These price quotes would generally not be considered offers

the place of delivery is Lumber Jack's and the time for delivering the lumber is a reasonable time based on normal trade practice.

The term "S Corporation" comes from:

the subchapter S of the Internal Revenue Code.

Compensatory damages are typically assessed against the breaching party:

to put the non-breaching party in the position it would have been in if the contract hadn't been breached.

A letter of intent summarizes progress made during business negotiations, but it does not necessarily create a binding contract.

true

A product liability case may be brought in warranty, negligence, or strict liability, but it must have the element that a person or business has been hurt by goods.

true

A statute of repose places an absolute limit on when a lawsuit may be filed regardless of when the defect is discovered.

true

Banner enters into a contract with Sylvia to buy her house for $150,000. Sylvia decides later not to sell because she is so emotionally attached to the house. Banner insists that he is entitled to the house. Banner can successfully sue for specific performance.

true

Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the U.S. Supreme Court subsequently rules that the statute conflicts with the First Amendment of the U.S. Constitution, the statute is void.

true

Dwayne agrees to serve as Walker's agent in booking spots for Walker's portable basketball game. Dwayne asks Walker for pictures and size specifications of the game so he can provide potential customers information they need. If Walker does not provide the pictures and size information, he is breaching a duty to Dwayne.

true

Ethics is the study of how people should act.

true

Generally, ethical managers have happier, more satisfying lives.

true

Hilda owes Lex $3,000, which is an undisputed amount. If she offers him her car in full settlement of the debt and he accepts, the agreement is binding and he can no longer claim she owes him anything on the original debt.

true

In the Seton Co. v. Lear Corp., the federal Court of Appeals applied the merchant exception rule to hold that a confirming memo between merchants formed a contract.

true

In the case Rosenberg v. Son, Inc., the Supreme Court of North Dakota held that Pratt was still liable to Rosenberg as she did not obtain a novation by assigning her rights to Son, Inc.

true

Jolene hired Lacy to find a buyer for her house. Adam was interested in buying the house. If both Jolene and Adam agree, Lacy, a real estate agent, may represent both parties.

true

Lucky, a contractor, enters into a contract with Penny, a homeowner, to remodel her kitchen. The contract provides a specific completion date. The contract provides that if Lucky does not have the job finished by the date, Penny may deduct $100 per day from the contract price until the job is finished. This is an example of liquidated damages.

true

Many states prohibit a seller from disclaiming implied warranties in the sale of consumer goods.

true

Most courts hold that a seller of goods is not entitled to consequential damages.

true

Most, but not all, contract rights are assignable.

true

Nominal damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

true

On February 15th, Mark, a farmer, contracts with Johnson's Fertilizers to have 80 gallons of a certain fertilizer delivered by March 31st. On March 15th, the Food and Drug Administration withdraws its approval of the said fertilizer because of a new study evidencing its risks. Mark's contract with Johnson is discharged.

true

Researchers who study happiness find that people expect material goods to make them happier than they actually do.

true

Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.

true

The Uniform Commercial Code provides that, under certain circumstances, a merchant may be liable on a written contract, even though that merchant has NOT signed it.

true

Under the UCC, the buyer is entitled to consequential damages if the seller could have reasonably foreseen them.

true

Victoria is the director of marketing for B & G Corporation. Victoria needed to negotiate an out-of-town contract on behalf of B & G. B & G has a legal duty to reimburse Victoria for the hotel expenses she incurs on the trip to negotiate the contract.

true

Assume that Dick steals Jane's camcorder and sells it to Sid. Jane can recover the camcorder from Sid:

under any circumstances.

A corporation is incorporated:

under state law.

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a:

unilateral, implied contract.

An unemployed CPA generally would receive unemployment compensation benefits if the CPA:

was fired as a result of the employers' business reversals

Employees who disclose illegal behavior by their employer are referred to as:

whistleblowers

Miles purchased a lawnmower with an attached warning that said, "The manufacturer is not responsible in the case of an injury caused by the lawnmower." If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely:

win, as this warning would be unenforceable.

Casey decided to incorporate her business under the name yStar Inc. Before yStar was incorporated, Casey signed a contract in the name of yStar, Inc. to have some office space remodeled. Which statement is correct?

yStar will be liable on the contract only if the corporation adopts the contract.

In the case of Lindholm v. Brant, the court ruled:

Brant was a BIOC, entitled to keep the painting in question.

Which of the following would be a breach of the implied warranty of merchantability?

A radio that does not pick up FM signals.

Nortron Corporation wants to create an ethical environment in its company. Which of the following has been found to help foster a sense of ethics within an organization?

All of the above alternatives have been used by U.S. companies to create an ethical environment in their organizations.

Which of the following statements about quasi-contracts is true?

All of the above: The plaintiff gave some benefit to the defendant., The plaintiff reasonably expected to be paid for the benefit and the defendant knew this., The defendant would be unjustly enriched if he did not pay.

Which of the following statements about the good faith purchaser is correct?

All of the above; He is also known as the bona fide purchaser, He gave value for the goods, He may acquire good title from a seller with voidable title.

John Huber was the only male working in an office with 5 females. The women in the office enjoyed flirting with John and making suggestive remarks from time to time. The women often talked about their sexual activities which John found embarrassing and improper. One day when he arrived at work with a wrapped gift for his mother, one of the women remarked that he had a nice package. John complained to his boss, at another office location, that he was uncomfortable in this working environment because some of the women were making unwanted sexual advances and suggestions that interfered with his ability to work. His boss responded that it wasn't serious, the women were just flirting with him, and he should enjoy the situation. John sued his employer for maintaining a hostile work environment. Is he correct?

An employer is liable if it knew or should have known of the sexual harassment conduct and took no action to correct the situation.

If a third party reasonably believes, based on the principal's conduct, that the agent is authorized whereas he is not, the principal's conduct may create:

Apparent authority.

Leticia worked as a paralegal for Jones, Cochran, and Cash, LLC, a well known law firm in Florida. Last Monday, Leticia's boss informed Leticia she was being terminated because she had exposed herself in New Orleans at a Mardi Gras event. It is true her topless picture was available on the internet. Which of the following statements is correct?

Because Florida is an "at will" state, Leticia can be fired for any reason or no reason.

In the Abkco Music, Inc. v. Harrisbongs Music, Ltd., involving "He's So Fine" and "My Sweet Lord," the court held that Klein violated his fiduciary duty to Harrisbongs because:

He used confidential information after the agency relationship terminated.

Which of the following is NOT a question in the ethics checklist?

How much profit will an alternative earn for my company?

Under which of the following warranties must the seller be a merchant?

Implied warranty of merchantability.

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2008." Abyan signed the napkin. On May 1, 2008, Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for the price of the land, the most likely result will be:

Derek will win because the writing is sufficient under the statute of frauds.

Jamie is building a new house on her lot. She invites Earnie of Earnie's Excavation to bid on the excavation job. Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky. Based on the assumption that the soil in Jamie's lot will be similar, he and Jamie agree that the excavation will cost $3,000. When Earnie starts digging, he learns there is solid rock under Jamie's lot. Earnie says it will cost an extra $2,500 for the excavation work. Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000. If Earnie sues, the most likely result would be:

Earnie wins, as the modification was due to unforeseen difficulties.

Peter, a minor, purchased a car from ACME Motors. Using a fake ID, he misrepresented his age to be 18. The contract is fully executed. Which of the following is correct?

Either b or c may be applicable depending on the law of the jurisdiction in which the contract was formed.

Mike worked for Frank's Pizza as a driver. His duties consisted of making deliveries along a designated route. One day Mike decided to see his girlfriend, Jackie, who lived 50 miles out of his pizza route. While driving to his girlfriend's, Mike injured a pedestrian, Chuck. The accident was caused because of Mike's negligent operation of the delivery truck. Chuck is now suing both Mike and Frank's for personal injuries. Under the circumstances:

Frank's is probably not liable because Mike's excursion was not within the scope of his employment.

Which of the following would be an example of a civil lawsuit?

Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.

Alice's Aspirin Inc., produces and packages aspirin for sale to retail stores. Bob buys a bottle of Alice's aspirin at Dahl's Food Stores. Two days later Bob's friend, Hank, takes two aspirin while at Bob's house. Within minutes, Hank is very ill and is rushed to the hospital, where it is found that a defect in the aspirin caused the reaction. Which of the following is correct?

Hank can sue both Alice's Aspirin Inc. and Dahl's under tort theories because he is an injured party due to the defective product.