Exam 2 - Law

Excavation, Inc., uses explosives to prepare land for construction projects. Strict liability is imposed on this activity because

the activity is extremely risky dangerous

Why were color-coded, "redlined," residential maps created?

to classify neighborhoods by their perceived level of lending risk. if your neighborhood was redlined or close to a redlined neighborhood, it would decrease property value.

Sloane drives into Tire Service and asks to have a tire replaced on her car. After the service replaces the tire, but before Sloane pays for it, any contract between them is

Executory

Bette choreographs a dance to accompany City Orchestra's performance of a medley of movie scores. Dian, a dance instructor, distributes copies of a short portion of the choreography to her students. This is most likely

a "fair use"

Jan tells Lee she will pay him to babysit her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

a bilateral contract

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

a condition precedent

Ness, a broker, advises Ollie to invest in Penny Stock Inc. When the share price of Penny's stock drops, Ollie accuses Ness of fraud, claiming reliance on the broker's advice. The reliance that gives rise to liability for fraud requires

a misrepresentation of a fact knowing that it is false - Fraudulent Misrepresentation

Serena invents a new, unique, long-life battery. A grant from the government that gives Serena the exclusive right to make and sell the battery for a certain period of time is

patent

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

patent infringement

Sal is mentally incompetent but has not been adjudged by a court to be incompetent. Sal enters into a contract with Tony for the cleaning and maintenance of Uptown Office building. Most likely, the contract is

voidable if Sam did not comprehend the consequences

With respect to different types of transactions, including ordinary loans, the purpose of a usury statute is to

set a maximum rate of interest

In a phone call to Lou, Mia makes statements about Nye that injures Nye's reputation. If Nye can prove all of the elements of defamation and Mia cannot assert a sufficient defense, Mia is most likely liable for

slander

Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least

$500

usury laws

Charging excessive interest rates on loans then the usury law protects!

Salty Snacks Inc. markets a fish-shaped cracker. When Tasty Tidbits Inc. begins to sell a similar product, Salty files a suit against Tasty, alleging infringement and claiming that consumers are likely to be confused. The court will most likely

Rule in the plaintiff's favor

Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is that

a unilateral mistake does not afford relief from a contract

elements of an enforceable contract

agreement, consideration, contractual capacity, Lawful object

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

an express contract

Zoning laws have been used for the following:

as a tool to build cities and as an exclusionary practice to keep neighborhoods, towns, and cities racially and economically divided.

Works that are copyrightable include

books, records, films, artworks, architectural plans, menus, music videos, product packaging, and computer software.

Brewed Beans Inc. makes and sells "CoCoCafe," a chocolate-flavored coffee. Darkroast Inc. later markets a similar drink under the name "KoKoKafe." This is most likely

trademark infringement

Contrary to Statute

A contract that violates any law usury laws protects people from getting charged to much (charging to much money on loan)

Paving Corporation taps into the computer network of Roadwork Inc., a competitor, and downloads confidential business data without Roadwork's knowledge or authorization. This is most likely

A theft of trade secrets

A clause in a property deed that prevents an owner from selling, renting, or the occupation of property to certain racial, ethnic, or religious groups is called:

Fair housing act

Cold Play Corporation makes snowmobiles. Dale is injured when a defect unexpectedly accelerates the Cold Play vehicle he is driving, and he is thrown off. Esty, a hiker standing in the path of the unmanned vehicle, is struck and injured. In a suit based on strict product liability, Cold Play may be liable to

Dale and Etsy

Cato is driving a car in which Diego is a passenger when an accident occurs. Diego is not injured. In Diego's tort action against Cato for negligence, Cato can most likely assert as a successful defense that

Diego was not injured - no harm no violation

Hilo tells the Internal Revenue Service that Jon "cheated on his taxes." This can lead to Hilo's liability for defamation if the statement is

FALSE

___________________ are clauses in real estate contracts that were enforceable by law that prevented the sale of residential real estate to buyers based on the buyer's religion, ethnicity, and race.

Fair Housing Act

In an online blog, Oren states that Publicity Corporation invaded the privacy of individuals to collect marketing data for its clients. If the firm can prove all of the elements of defamation and Oren cannot assert a sufficient defense, Oren is most likely liable for

Libel

O-Ring Corporation allows Piston Company to incorporate O-Ring's patented fuel-injection system into Piston's product. This is

License

Motor Corporation (MC) makes cars and trucks. National Sales Company sells all MC vehicles. Open Road Inc. leases only the cars. Under product liability laws, liability for injuries or damage caused by an MC vehicle may be imposed on

MC, National Sales, or Open Road

At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 15 percent. Nate finds the language of the contract difficult to understand. This is most likely

Procedural unconscionability

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

a void

Information that may be protected as trade secrets includes

a. customer lists. b. pricing information. c. marketing techniques. d. all of the choices. ANSWER: d

O-Ring Corporation allows Piston Company to incorporate O-Ring's patented fuel-injection system into Piston's product. This is

license

Airsoft, Inc. makes toys. Airsoft intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Bing buys an Airsoft product and suffers an injury. Airsoft is most likely liable for

fraud

Dash convinces Esmé to enter into a contract for the purchase of a Falafel Waffle Food Cart by knowingly misrepresenting a number of material features about the facility and the business. Most likely, Esmé can rescind the contract on the basis of

fraudulent misrepresentation

Ileana hires Jim to mow Ileana's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Ileana pays Jim on Saturday. The payment term is

implied

intellectual property is an example of

intangible property

Don interferes with the business interests of Erin in a way not permitted by law, and Erin's business is harmed as a result. To be liable to Erin for the commission of an intentional tort, Don must have

intended to commit the act Intentional tort

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely

invalid because of the unreasonable terms of area and time.

Hal posts online secretly recorded videos of Ida, and includes her name, address, phone number, and Facebook page. Most likely, Ida could bring a successful tort action against Hal for

invasion of privacy

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

is the consideration that creates Kin's obligation to pay Leo

EcoEnergy LLC files a suit against Fiber Optics Inc., claiming that the consideration for their contract is inadequate—that the plaintiff will not realize sufficient financial benefit from the deal to make it worthwhile. Most likely, the court will

not question the adequacy of consideration

To be protected under the Copyright Act, a work must be

original and fixed in a durable medium

Ricard, an engineer, supervises the construction of a new mountainside roadway. The road collapses in a landslide due to faulty grading. Motorists injured in the collapse sue Ricard in a tort action for negligence. Under that theory, as a professional, Ricard is held to the same standard of care as

other engineers.

Do-It-Rite Inc. makes and markets tools. Evan uses a Do-It-Rite power screwdriver to scrape grout—a purpose for which it was not intended—and is injured when the tool slips. Evan files a product liability suit against the maker. The defendant's best defense is most likely

product misuse

Public Domain

property rights that belong to the community at large, are unprotected by copyright or patent, and are subject to use by anyone

what is a work considered once copyright is expired

public domain

Opal is injured and her property is damaged when a truck with defective brakes careens off an adjacent highway and crashes into her home. If Opal brings a successful tort action against the truck's owner for gross negligence, she may be awarded punitive damages to

punish the defendant and deter others from similar wrongdoing.

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will pay $75,000." Hanna has

rejected the offer and make a counteroffer

Allen promises to pay Barb, his niece, $5,000 if she obtains her degree at City University, where she is in her third year. Barb graduates. Allen must pay Barb because

required to pay because Barb obtained a degree at City.

Targeting certain communities for high-risk predatory lending, such as the marketing of subprime mortgages, is called:

reverse redlining

Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

the contract is not enforceable

Donald is a minor. He can enter into any contract an adult can, provided

the contract is not one prohibited by law law for minors

Nina is induced by her guardian Ollie to sign a contract to invest funds in Penny Stocks Inc. through Ollie's investment firm. Unknown to Nina, Ollie realizes a commission from the investment. Most likely, Nina may rescind the contract on the basis of

undue influence