Business Law Exam 2

Clarice pays Damien $10,000 to design an ad campaign for her Sweetwater Coffee Stand chain. The next day, Damien tells Clarice that he has accepted a job in New York and cannot design her campaign. She files a suit against Damien. As compensatory damages, she can recover

$10,000

Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover

$10,000

Mythic Games Company employs two hundred workers full-time. If Mythic Games plans to have a mass layoff, it must provide its employees with at least

60 days notice

Cam enters into a contract with Tractors & Lifts Lease Company for a two-year lease of a backhoe. This contract is subject to

Article 2A under the UCC (Article 2 is sales and Article 11 of the CISG is international)

Samson is a government employee. Samson is limited in drug testing by the

Fourth Amendment

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is

a novation (the substitution of a new contract in place of an old one)

Jack promises to buy Lizette's used textbook for $60. Jack is

a promisor

TalkTalk, Inc., offers to buy from Voice Media Corporation (VMC) 100,000 smartphones. Without notifying TalkTalk, VMC timely ships phones of a different quality. With respect to the offer and a possible contract, this shipment is

an acceptance and a breach

Mobile Media Company contracts to hire Nada for one year at $35 per hour, reserving the right to cancel the contract at any time after Nada begins performance by giving two weeks' notice. This promise is

an enforceable contract

Thelma is an employee at Foreign Food Mart. Thelma is called for jury duty and as a result cannot work her scheduled shift at Foreign Food Mart. Foreign Food Mart fires Thelma. This is a violation of

an exception based on public policy

arises when the principal causes a third party to believe that the agent has authority, even though she or he does not;not real

apparent authority

Cooper's Brakes, Inc., enters into a contract with Byron's Service to fix Cooper's hydraulic equipment. Byron delays the repair for three days, but is not aware that Cooper loses a certain percentage of profit each day the equipment is out of service. Cooper is most likely to be awarded

compensatory damages

Fletcher signs a contract to buy a new electric guitar and amplifier just before reaching the age of majority. After reaching the age of majority, Fletcher does not take possession or make payments. With respect to the contract, most courts would hold that this is

disaffirmance (the denial of the existence of something or repudiation of an earlier transaction. It can also refer to a declaration that a voidable contract is void)

Ruth contracts to provide Stan with fifty hours of telepathic personal coaching. The state legislature subsequently passes a law making telepathic personal coaching illegal. This law wil

discharge the contract

A rule requiring that an agent's authority be in writing if the contract to be made on behalf of the principal must be in writing

equal dignity rule

Cory employs Daily Delivery Agency as an agent under a writ-ten agreement that describes the rights and duties of both parties. This is

express authority

Finance Professionals Union represents the workers of Business & Commerce Banking Corporation. The management of the firm refuses to bargain with the union. This violates

federal labor law

Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity. Linc is most likely a victim of

fraud

Phil enters into a contract to hire Bob's Building Business to build a warehouse for Phil. The contract specifies that the warehouse should be built with HighQual Bricks. When construction starts, HighQual Bricks cannot provide enough bricks for the warehouse. Bob's Building Business substitutes Big Red Bricks, which are comparable in quality and price to HighQual Bricks. This deviation from the contract

has no effect on the contract

Clive works for Digby Excavation Corporation. While operating a backhoe, Clive suffers an injury. Clive will be compensated under state workers' compensation laws only if

his injury was accidental

Dave's uncle tells Dave that if "he feels that Dave deserves it," he will give Dave $1,000 when Dave graduates from college. Dave's uncle's promise is

illusory

what is reasonably necessary to carry out his or her express authority and accomplish the objectives of the agency

implied authority

Rangle contracts with Siena to buy a certain horse for her. Rangle makes a deal with Timberline Stables, the owner of the horse, and makes a down payment. Siena fails to pay the rest of the price. Timberline sues Rangle for breach of contract. His right to hold Siena liable for any damages that he has to pay is the right of

indemnification (compensation)

Raphael agrees to lease an apartment from Suzanne for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is canceled three days before its scheduled date. The contract

is discharged

In a dispute over a sale involving a restored 1937 Ford Roadster, Garth argues that for the purpose of the sale, Hoyt's Pawn Shop, where Garth bought the auto, is a merchant. A court may determine whether Hoyt's is a merchant by assessing whether

it holds itself out by occupation as having knowledge or skill unique to the auto in the transaction

Mackenzie, an agent for Lindsay, signs an agreement with Kirk on Lindsay's behalf but neglects to tell her that the agreement requires the payment of a certain tax. The government prosecutes Lindsay for failing to pay the tax. She is

liable, because notice to Mackenzie is notice to Lindsay

Sully signs a contract to borrow $200,000 from Riverside Bank to buy a house. In the contract, Sully agrees to pay a certain rate of interest on the amount of borrowed funds at monthly intervals for thirty years. This debt is

liquidated

Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of the 6-ounce containers, but also ships 30,000 more expensive 8-ounce containers for the same price. Under these circumstances, Golden

may reject delivery, and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers

Winona enters into a contract with Peyton to buy Peyton's land based on Peyton's assertion that the land is legally open to development. After the sale, Winona learns what Peyton knew previously—only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Winona can

not avoid the contract because persons are assumed to know the law

Mariah promises to pay her assistant Nadine $10,000 in consideration of the services she provided over the years. Mariah never pays Nadine. Mariah is

not liable, because the consideration is in the past

Beau sells a 1940 Ford pick-up truck car to Cody without disclosing that he had originally planned to restore the truck but changed his mind because of the cost. Beau is liable for

nothing

Kelly tells Jimmy she will pay him $1,000 if he builds a shed in her backyard. Kelly is a(n)

offeror

A principal whose identity is unknown by a third party, but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract

partially disclosed principle

Big Drill Oil Company employees one hundred workers. Big Drill must do all of the following except

pay employees higher wages for working in more dangerous areas

Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The requirements of this, and any other, contract do not include

practicality

Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover

profits plus the costs incurred up to the time of the breach

Levi's Toy Store orders one hundred board games from Big Board Games Warehouse. When the games are delivered, they are all missing pieces. Levi's Toy Store rejects the shipment. Big Board Games wants to cure. Big Board Games must

promptly notify Levi's Toy Store of the intent to cure

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant. Garland knowingly misrepresents a number of material features about the restaurant and the business. When Jules discovers the truth, he can

rescind the contract on the basis of fraud

Carpets n' Rugs, Inc., agrees to carpet Downtown Realty's offices, using a particular brand of durable carpet. Carpets n' Rugs completes the job but uses a different brand of wear- and weather-resistant carpeting. This is most likely

substantial performance (a degree of performance of a contract which isn't full and complete performance, but is so nearly equivalent that it would be unfair to deny the contractor the payment agreed upon in the contract)

Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house burns down before being sold. The agency agreement is likely

terminated by operation of law (death/insanity, impossibility, bankruptcy, changed circumstances, war)

Gabriella and Esteban are emancipated minors who, after their emancipation, marry each other. Later, they enter into a contract to buy a condominium. In this sequence of events, most likely, their minority status

terminated on their emancipation

Employers are not allowed to interfere with employees' efforts to form or join a union under

the National Labor Relations ActF

Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is

the parties' intent

Valley Tack Shop signs a contract with Gary's Boots and Saddles for delivery of five saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written contract must designate

the quantity of saddles

Orange Manufacturing Corporation (OMC) orders twelve job-training and on-the-job safety DVDs from Plum Productions, Inc., which delivers the disks to OMC's plant. This is most likely

the sale of goods

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the con-tract is enforceable by

the seller or the buyer

Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house. Sari ratifies the contract. Later, Sari tries to rescind the part of the contract relating to the exterior. This attempt will be

totally unsuccessful (need authorization)

Industrial Engineering, Inc., promises to give stock options to Jasmine for processes she has already designed for the firm. This promise is enforceable

under no circumstances

A principal whose identity is unknown by a third party, and that person has no knowledge that the agent is acting for a principal at the time the agent and the third party form a contract

undisclosed principle

On January 10, Winchester Pet Supplies orders fifty small dog collars from Quality Collars, Inc. to be delivered by January 15. On January 13, Quality Collars tenders fifty large dog collars. Winchester Pet Supplies rejects the shipment. Quality Collars has

until January 15 to cure

On Mitchell's eighteenth birthday, he decides that he no longer wants to keep a fishing boat he bought from Water Craft, Inc., when he was seventeen. His right to disaffirm the deal will depend on

whether Mitchell acts within a reasonable period of time

Jonathon promises to pay child support and alimony to his ex-wife every month after their divorce. Jonathon has

both a legal and a moral obligation to keep his promise

Rice River Farms offers to sell Sensei Sushi Restaurants, Inc., five hundred bushels of rice. Sensei responds, "We agree to buy five hundred bushels only if the rice is Grade A quality." This statement is

a counteroffer

Daisy files a suit against Elton to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

Daisy foreseeably and justifiably relied on Elton's promise to her detriment

Refined Grains, Inc., agrees to sell to Sunny Breakfast Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at

Refined's place of business (the seller's place)

Joli, acting within the scope of her authority for the Cake Bake Shop, contracts with Valley View Berry Farms to buy an assortment of fruit. Cake Bake is liable on the contract, and Joli is not, if Cake Bake is

a disclosed principle (A principal whose identity is known to a third party at the time the agent makes a contract with the third party)

Roy's Chick'n Shack orders chicken from Standard Food Supplier, but Standard does not deliver. Roy's will probably be unable to enforce the agreement if the parties

did not specify a quantity term