Exam 2 - Law

Schneiderman v. Trump Entrepeneur Initiative LLC

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Common carriers can contract away their liability for damaged goods

False

For a party to take by adverse possession, the party must have used force to possess the land.

False

The term consideration refers to the regard that contracting parties hold for each other.

False

RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment Company copies the design without RiteMade's permission. Steel's conduct is actionable provided

RiteMade's design is patented.

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it

True

If a contract term is ambiguous, a court can consider outside evidence

True

Sweetleaf Company bottles and sells maple syrup from its plant in Vermont. On the labels is a logo that states "100% Genuine New England Maple Syrup Certified by the Northeast Maple Syrup Harvesters Association." This logo is

a certification mark.

Lark promises to buy Mac's used textbook for $60. Lark is

a promisor.

On Monday, Neil tells Outdoor Landscaping, INC. that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Nail says that he has changed his mind. These parties had

a unilateral contract because Outdoor has substantially performed.

Sales Corporation and Real Properties, Inc., agree to the payment of a commission for the sale of certain property. If this deal has all of the elements necessary for one of the parties to enforce it in court, it is

a valid contract

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have

an express contract

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

an express contract.

Jacob & Youngs v Kent

before and during this case the courts did not apply the doctrine of substantial performance to disputes involving breaches of contracts. This case developed equity and fairness in those cases. Today if you were to make a similar mistake it will not prevent enforcement of a contract but it could permit a value adjusment.

Bubbly Cola features Sparkly Cola's trademark without its owner's permission. Bubbly's use of the mark is actionable provided

consumers are confused.

Lucy v. Zehmer

continuously cited while determining the objective theory of contracts

Hadley v. Baxendale

defined consequential damages which are only available if they're spelled out in the contract and what they are.

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is

discharged

Bread & Bagel Bakery enters into a contract with CinePass for discounted movie tickets for B&B's employees. CinePass breaches the contract and B&B enters into a contract with Dine+View for the same service at a lower price. B&B might be awarded norminal damages to

establish as a matter of principle, that CinePass acted wrongfully.

A discharge in bankruptcy will ordinarily allow a creditor to subsequently enforce the debtor's contract.

false

A person who buys copyrighted work cannot sell it to someone else.

false

Only tangible personal property can be bailed.

false

The first person to invent a product obtains the patent rights rather than the first person to file an application for a patent.

false

a trademark must be registered to support a trademark infrigement action.

false

A contract that has been fully performed by the parties is an executory contract

false (it is an executed contract)

Hamer v. Sidway

forbearance of a legal right constitutes adequate consideration, valid to form an enforceable contract. Theory of consideration or "benefit-detriment theory" bargain theory

Quasi contract

implied in law, fictional contractss that the courts can impose on parties "As if", used mostly to avoid the unjust enrichment of one party at the expense of another. (Hoffman v. Red Owl food stores)

Trade secrets

information or a process that gives a business an advantage over competitors who do not know information or process.

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's estate

is discharged from any contractual liability.

Ernie, the owner of Fallow Farm, sells Gus a right to park his RV on Fallow lan overnight. Gus's right is a

license

Maggie uses John's garage to store her car. She does not pay rent. John decides that he needs the garage for his own car. To terminate this tenancy at will, John

need not give Maggie any notice.

Gro, Inc., makes genetically modified seeds with properties that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely

patent infrigement.

Fair Use Doctrine

permits limited use of copyrighted material without having to first acquire permission from the copy right holder.

Marcy owns land in North Dakota under which deposits of oil shale are discovered. Marcy sells the rights to the shale to Oil Mining & Refining Inc. Once the oil in the rock is removed, it will be considered

personal property

Perry gives Rachel a phone as a gift. Rachel develops a new app for the phone, obtains intellectual property protection, and forms QuikApps, LLC, to sell it. Rachel's acquisition of the app is by

production

Ricky agrees to sell his Sunrise Breakfast Cafe to Tia. Asa part of the deal, Ricky signs a convent not to open a competing business within a hundred-mile radius for ten years. If this convent is later determined to be unreasonable, the appropriate rememdy is most likely

reformation

Lew's landscaping Service substantially performs its contract with Metro Office Park. Metro's duty to perform

remains absolute

In contemplation of death during risky surgery, Ben, a guitarist, gives his guitars to Cathy. The surgery is successful, and Ben does not die. The gift of the guitars is

revoked because Ben survived.

Trade Publishing Inc. owns the rights to the Aura series of paranormal-themed novels and publishes and sells copies in bookstores and online. Sydney buys and reads a copy of each book in the series. With regard to these copies, Sydney can

sell them to someone else.

Statute of Frauds

state statute which states what contracts must be in writing to be enforceable.

Cierra rents an apartment from Damian that floods whenever there is a heavy rain. Damian refuses to fix the problem. Damian has breached

the implied warranty of habitability

Rehab Center signs an agreement with Savers Bank to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. Rehab's best argument for avoiding payment to Savers is that

the law has rendered performance of the contract illegal.

Reprise Entertainment, Inc., a U.S. television and movie production company, files a suit against Substantivo TV, Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Under the TRIPS agreement, Reprise is entitled to receive

the same rights and protections in Mexico as Substantivo.

When a rainstorm erupts outside Rita's Souvenir & Gift Shop, Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

the words of the parties.

A contract may include a clause stating that damages will be limited to a maximum amount

true

A promise is a declaration that something will or will happen in the future

true

Any material breach allows the nonbreaching party to sue for damages.

true

In most contract, promises of performance are not expressly conditioned.

true

The failure of one party to perform a contract entitles the other party to rescind it.

true

Usually, a court will not award an equitable remedy unless the remedy at law is inadequate.

true

a joint tennant's sale of his or her interest terminates the joint tenancy

true

constructive delivery confers the right to take possession of an object

true

if anyone who is a citizen of a country that has not signed the berne convention first publishes a book in a signatory country, all other signatory countries must recognize the author's copyright.

true

it is not possible to copyright an idea

true