LEGS 3010 FINAL EXAM

Compensatory Damages

A monetary award equivalent to the actual value of injuries or damage sustained by the aggrieved party.

Taking advantage of one's dominant position in a relationship to unduly persuade the other party is known as __________. A.) undue influence B.) misrepresentation C.) duress D.) bullying

A.) undue influence

The "Who" in the WH process of ethical decision making means what? A.) Who are the corporate decision makers? B.) Who are the people in power? C.) Who are the stakeholders affected by the decisions a firm makes? D.) Who determines what is right or wrong? E.) Who is able to sue in a lawsuit?

C.) Who are the stakeholders affected by the decisions a firm makes?

Bob's promise to paint Mary's house if he has time is an illustration of: A.) valid consideration. B.) past consideration. C.) an illusory promise. D.) promissory estoppel.

C.) an illusory promise.

Once the plaintiff has established that the defendant owes her a duty of care, she must prove that the defendant's conduct violated that duty. This violation is called a _____________. A.) dram shop act B.) violation of damage strict liability C.) breach of duty D.) standard of care

C.) breach of duty

The purpose of the law is to serve as a moral guide by indicating __________ expectations of citizens and organizations. A.) average B.) maximum C.) minimal D.) random

C.) minimal

The effect of both _____________ and ____________ is that the victim can either rescind the contract or keep the contract and sue for damages. A.) innocent misrepresentation; fraudulent misrepresentation B.) negligent misrepresentation; innocent misrepresentation C.) innocent misrepresentation; intentional misrepresentation D.) intentional misrepresentation; concealment E.) negligent misrepresentation; fraudulent misrepresentation

E.) negligent misrepresentation; fraudulent misrepresentation

The state of Minnesota's legislature implemented a new law governing how much salt and sand could be distributed on the roadways when the weather turned icy. This action by the legislature is known as __________. A.) criminal law B.) private law C.) uniform rule D.) an executive order E.) statutory law

E.) statutory law

trespass to personal property

The unlawful taking or harming of another's personal property; interference with another's right to the exclusive possession of his or her personal property; if damaged pay damages

Strict Liability

liability without fault

trespass to realty

A tort that occurs when someone goes on another's property without permission or places something on another's property without permission.

When courts rely on precedent, they are obeying stare decisis which means: A.) "standing by the decision" B.) "this is the final rule" C.) "no law shall change" D.) "decision by the court" E.) "decisions are meant to change"

A.) "standing by the decision"

Which of the following is an exception to the preexisting duty rule? A.) Additional work. B.) Foreseeable change in circumstances. C.) Promissory estoppel. D.) Detrimental reliance.

A.) Additional work.

What type of damages are awarded to a plaintiff as reimbursement for her or his losses? A.) Compensatory B.) Punitive C.) Consequential D.) Liquidated

A.) Compensatory

What happened that caused WorldCom's CEO Bernard Ebbers to go to jail? A.) Ebbers and other WorldCom officials used fraudulent accounting methods to overstate their financial status. B.) Ebbers and other WorldCom officials were embezzling money from the company. C.) Ebbers and other WorldCom officials were caught selling fraudulent company stock. D.) High-level officials including Ebbers allowed unsafe working conditions in the workplace in violation of OSHA regulations. E.) Worldcom's board of directors caught Ebbers selling trade secrets to China, in violation of the company's intellectual property rights.

A.) Ebbers and other WorldCom officials used fraudulent accounting methods to overstate their financial status.

On the streets of New York, a man sells you a pocket watch for $20. He says all the watch needs is a new battery and it will be just like new and work perfectly. You buy a new battery for the watch, but the watch still does not work. The man selling the watch knew that the watch would not work, even with a new battery, but he told you it would anyway. A.) Fraudulent misrepresentation B.) Innocent misrepresentation C.) Lack of scienter D.) Negligent misrepresentation E.) Nondisclosure

A.) Fraudulent misrepresentation

On the streets of New York, a man sells you a pocket watch for $20. He says all the watch needs is a new battery and it will be just like new and work perfectly. You buy a new battery for the watch, but the watch still does not work. The man selling the watch knew that the watch would not work, even with a new battery, but he told you it would anyway. The above scenario is an example of what? A.) Fraudulent misrepresentation B.) Innocent misrepresentation C.) Lack of scienter D.) Negligent misrepresentation E.) Nondisclosure

A.) Fraudulent misrepresentation

Which school of jurisprudence uses traditions as the model for future law and behavior? A.) Historical school. B.) Legal positivism. C.) Legal realism. D.) Natural law.

A.) Historical school.

Which type of misrepresentation exists when the party making the statement would have known the truth about the fact had it used reasonable care to discover it? A.) Negligent misrepresentation B.) Innocent misrepresentation C.) Fraudulent misrepresentation D.) Intentional misrepresentation

A.) Negligent misrepresentation

Which of the following damages are imposed to punish the defendant and deter such conduct in the future? A.) Punitive B.) Compensatory C.) Nominal D.) Consequential

A.) Punitive

Which doctrine allows a judge to infer that the defendant's negligence was the cause of the plaintiff's harm, even though there is no direct evidence of the defendant's lack of due care? A.) Res ipsa loquitur. B.) Mens rea. C.) In pari delicto. D.)Actus reus.

A.) Res ipsa loquitur.

All but which of the following are characteristics of a corporation? A.) Shareholders can only transfer their corporate shares with board approval. B.) Corporations are considered to be legal persons. C.) Corporations have perpetual existence. D.) Corporations have centralized management.

A.) Shareholders can only transfer their corporate shares with board approval.

Which of the following determines which trial court will hear the case? A.) Venue. B.) Choice of law. C.) Questions of fact. D.) Standing.

A.) Venue.

Directors and officers have a _____ duty of care to the corporation. A.) fiduciary B.) secured C.) priority D.) perfected

A.) fiduciary

To minimize extra costs associated with future litigation, many businesses will include in their contracts __________. A.) forum selection clauses B.) no deal if sued clauses C.) attorney's fees at twice the rate if the other side sues clauses D.) removal jurisdiction clauses E.) no contest clauses

A.) forum selection clauses

Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ________________. A.) illusory promise B.) promissory estoppels C.) preexisting duty D.) valid consideration E.) past consideration

A.) illusory promise

What is the age of the majority in most states? A.) 17 B.) 18 C.) 19 D.) 21

B.) 18

Which Article of the UCC governs contracts for the sale of goods? A.) 1 B.) 2 C.) 3 D.) 4

B.) 2

The United States has how many courts of original jurisdiction at the federal level? A.) 50 B.) 94 C.) 100 D.) 150 E.) 184

B.) 94

What two elements must the government demonstrate to punish an individual for criminal behavior? A.) Nolo contendere and mens rea. B.) Actus reus and mens rea. C.) Subpoena and voir dire. D.) Voir dire and nolo contendere.

B.) Actus reus and mens rea.

Business law is the enforceable rules of conduct that govern: A.) Regulatory bodies. B.) Commercial relationships. C.) Noncommercial relationships. D.) Both commercial and noncommercial relationships.

B.) Commercial relationships.

What exists if one party threatens the other party with physical harm to gain consent to a contract? A.) Undue influence B.) Duress C.) Misrepresentation D.) Mistake

B.) Duress

What exists if one party threatens the other party with physical harm to gain consent to a contract? A.) Undue influence B.) Duress C.) Misrepresentation D.) Mistake

B.) Duress

_________ is the possession of a mental or physical defect that prevents a natural person from being able to enter into a legally binding contract. A.) Implied ratification B.) Incapacity C.) Disaffirmance D.) Mental capacity E.) Emancipation

B.) Incapacity

Rules of conduct in any organized society that are enforced by the governing authority of the community are __________. A.) Ethics B.) Laws C.) Morals D.) Enforcements

B.) Laws

What is defamation through television and radio called? A.) Slander. B.) Libel. C.) Slander per se. D.) Negligence.

B.) Libel.

The WPH framework would be incomplete without which of the following? A.) Well-educated corporate leaders. B.) Practical guidelines that assist in determining how to respond to an ethical dilemma. C.) A solid grounding in accounting and marketing. D.) An explanation of the complexity of each aspect of modern business. E.) A code of corporate conduct.

B.) Practical guidelines that assist in determining how to respond to an ethical dilemma.

In which of the following instances can injustice be avoided by carrying out the promise? A.) Past consideration. B.) Promissory estoppel. C.) Preexisting duty. D.) Illusory promise.

B.) Promissory estoppel.

In a negligence action, what standard do courts use to evaluate the actions of an individual? A.)Subjective standard. B.) Reasonable person standard. C.) Fault-based standard. D.) Foreseeability standard.

B.) Reasonable person standard.

How is the amount of liquidated damages which may be awarded by a court determined? A.) Calculated by a jury B.) Specified in the contract C.) Calculated by the judge D.) Based upon the plaintiff's out of pocket losses

B.) Specified in the contract

When a crime is committed against the public such as insider training, price-fixing, or embezzlement, who prosecutes the crime? A.) Any person affected by the wrongdoing B.) State and federal governments C.) Federal governments only D.) State governments only E.) Local municipalities where the crime happened

B.) State and federal governments

Liability without fault is known as: A.) Negligence. B.) Strict liability C.) Intentional tort. D.) Misdemeanor.

B.) Strict liability

Entering the land of another without permission is an example of: A.) Private nuisance. B.) Trespass to reality. C.) Trespass to personal property. D.) Conversion.

B.) Trespass to reality.

Which of the following in not generally an obstacle to genuine assent in a contract? A.) Undue influence B.) Unilateral mistake C.) Duress D.) Misrepresentation

B.) Unilateral mistake

Which of the following in not generally an obstacle to genuine assent in a contract? A.) Undue influence B.) Unilateral mistake C.) Duress D.) Misrepresentation

B.) Unilateral mistake

Tow the Line Towing Company, Inc. creates contracts with its clients that are presented on a "take-it-or-leave-it" basis. Courts typically find these types of agreements to be _____. A.) holistically unconscionable B.) adhesion contracts C.) conscionable D.) categorically unconscionable E.) equitable

B.) adhesion contracts

According to ethical guidelines, managerial decisions: A.) must examine duties, consequences, and virtues. B.) affect particular stakeholders and must meet standards of action-oriented behavior. C.) are made with a particular purpose. D.) have to be made in conjunction with legal guidelines.

B.) affect particular stakeholders and must meet standards

Criminal proceedings generally begin when an individual is _____. A.) thought to have committed a crime B.) arrested for a crime C.)accused of a crime D.) contemplating a crime E.) read his or her Miranda rights

B.) arrested for a crime

The primary method of securing arbitration is through a _____. A.) submission agreement B.) binding arbitration clause C.) unconscionable arbitration clause D.) summary jury trial E.) adversarial negotiation

B.) binding arbitration clause

When a corporation is incorporated, the secretary of state usually issues a(n) _____, a document certifying that the corporation is incorporated in the state and is authorized to conduct business. A.) corporate prospectus B.) certificate of incorporation C.) warranty of corporate status D.) certificate of organization E.) general business license

B.) certificate of incorporation

A(n) ________ is a corporation that has met the substantial elements of the incorporation process. A.) corporation by estoppel B.) de jure corporation C.) P corporation D.) S corporation E.) de facto corporation

B.) de jure corporation

An offer immediately terminates in all of the following situations, except: A.) death or incapacity of the offeror. B.) manifestation of intent to be bound. C.) destruction or illegality of the subject matter. D.) lapse of time or failure of another condition.

B.) manifestation of intent to be bound.

In Hertz Corp. v. Friend, the United States Supreme Court set forth the "__________" test as the appropriate test for determining a corporation's principle place of business for the purposes of diversity jurisdiction. A.) quasi in rem B.) nerve center C.) preponderance of the evidence D.) primary business E.) disparate impact

B.) nerve center

If corporate directors fail to sue when the corporation has been harmed by an individual, shareholders can file a ______________ on behalf of the corporation. A.) right of first refusal B.) shareholder's derivative suit C.) suit of proper purpose D.) preemptive suit E.) shareholder's direct suit

B.) shareholder's derivative suit

A plaintiff must have a concrete and actual injury in order to have __________. A.) jurisdiction B.) standing C.) a bench trial D.) ripeness

B.) standing

The mirror-image rule says that the terms of the acceptance must mirror _________. A.) the terms agreed on by both parties in negotiations B.) the terms of the offer C.) the mail-box rule D.) the authorized means of acceptance E.) the terms of the acceptance

B.) the terms of the offer

A contract where the powerful party dictates the terms of the agreement and eliminates the other party's free will are considered __________. A.) voidable B.) unconscionable C.) exculpatory D.) unenforceable

B.) unconscionable

After a football game, Tyler and Austin want to enter into a contract together. Tyler is completely sober, but he knows Austin is very intoxicated and is so impaired that he is unable to understand the terms of the contract. If they enter into a contract, the contract would be ________. A.) legally binding B.) voidable C.) void D.) valid E.) an implied ratification

B.) voidable

Which of the following describes a quasi-contract? A.) A contract that requires no consideration to be legal. B.) A contract that clearly spells out the terms in either written or spoken words. C.) A contractual obligation imposed by court to prevent unjust enrichment. D.) A contract that arises from the conduct of the parties.

C.) A contractual obligation imposed by court to prevent unjust enrichment.

Promising to stop smoking for a week is an example of what type of consideration? A.) A detriment to the promisor. B.) A promise to do something. C.) A promise to refrain from doing something. D.) A benefit to the promisor.

C.) A promise to refrain from doing something.

Which of the following is not an element of fraudulent misrepresentation? A.) Justifiable reliance on the false statement by the innocent party. B.)A false statement about a material fact of the contract.Intent to deceive. C.) All of these are elements required to prove fraudulent misrepresentation. D.) None of these are elements of fraudulent misrepresentation.

C.) All of these are elements required to prove fraudulent misrepresentation.

Which of the following is not a condition of promissory estoppel? A.) One party makes a promise knowing the other party will rely on it. B.) The other party relies on the promise. C.) Consideration must clearly exist. D.) The only way to avoid injustice is to enforce the promise.

C.) Consideration must clearly exist.

Which criminal offense occurs when a person obtains money, property, and/or services from another by wrongfully threatening or inflicting harm on the other person? A.)Theft. B.) Burglary. C.) Extortion. D.) Fraud on the person.

C.) Extortion.

What degree of trust generally exists when a party is able to unduly influence another party? A.) Low B.) Moderate C.) High D.) Depleted

C.) High

In which of the following scenarios could the courts pierce the corporate veil? A.) If a corporation followed statutory mandates regarding corporate business. B.) If the corporation has been legally incorporated. C.) If a corporation did not follow statutory mandates regarding corporate business. D.) If the shareholders resisted. E.) All of these are correct.

C.) If a corporation did not follow statutory mandates regarding corporate business.

What is a plaintiff seeking if he requests legal damages? A.) A court order to stop the defendant from doing something B.) A court order to require the breaching party to fulfill the terms of the agreement C.) Monetary damages D.) The defendant to withdraw from the agreement

C.) Monetary damages

Frank works as a cellphone salesman. He has worked at the same company for the past two years, and one day his boss approaches him with good news. He says because Frank has sold so many phones lately, he is going to give Frank a $500 bonus. Three weeks later, Frank has still not received the bonus. Can Frank sue his boss to enforce the promise? A.) Yes, this is an example of past consideration. B.) No, this is an example of promissory estoppel. C.) No, this is an example of past consideration. D.) Yes, this is an example of promissory estoppel. E.) No, this is an example of preexisting duty.

C.) No, this is an example of past consideration.

If a contract is deemed unenforceable, what remedy is available to the parties? A.) Compensatory damages only B.) Compensatory and consequential damages C.) None D.) Compensatory and punitive damages, but not consequential damages E.) Punitive damages only

C.) None

Replacing one of the original parties to a contract with a third party is referred to as a(n): A.) Substituted contract B.) Accord and satisfaction C.) Novation D.) Mutual rescission

C.) Novation

Which of the following is an example of the intentional tort of conversion? A.) Temporarily interfering with another's use or enjoyment of his or her personal property. B.) Using property in an unreasonable manner harms a neighbor's use or enjoyment of his or her property. C.) Permanently interfering with another's use and enjoyment of his or her personal property. D.) Placing something on another's property without permission.

C.) Permanently interfering with another's use and enjoyment of his or her personal property.

Which of the following powers do appellate courts possess? A.) Hear and decide cases when they first enter the legal system. B.) Call witnesses to testify. C.) Review previous judicial decisions. D.) Decide cases in the federal system only.

C.) Review previous judicial decisions.

The assortment of rules and regulations put forth by legislatures is known as: A.) Private law. B.) Civil law. C.) Statutory law. D.) Criminal law.

C.) Statutory law.

Which of the following is not considered to be a business's responsibility? A.) Fulfilling the interests of their owners. B.) Obeying the standards of conduct consistent with the ethics and expectations of a particular community. C.) To only make correct decisions. D.) Providing safe working conditions to their employees.

C.) To only make correct decisions.

What is the purpose of punitive damages? A.) To fully compensate the plaintiff. B.) To recognize that the defendant committed a tort against the plaintiff. C.) To punish the defendant. D.) To collect insurance proceeds.

C.) To punish the defendant.

This type of contract is not a contract because either its object is illegal or it has a serious defect. A.) Unenforceable contract B.) Informal contract C.) Void contract D.)Valid contract E.) Formal contract

C.) Void contract

Which of the following terms means that past decisions guide future decisions? A.) civil law B.) common law C.) precedent D.) respondeat superior E.) futuristic law

C.) precedent

Simon, a police officer, is called to the scene of an accident. Simon witnesses one of the people in the accident trying to stuff a white powdery substance down his pants. When Simon approaches the individual, the individual flees. Simon grabs the person and places him under arrest. This arrest will be upheld because Simon had _____ to arrest the individual. A.) reasonable doubt B.) articulable suspicion C.) probable cause D.) identifiable evidence E.) suspicion beyond a doubt

C.) probable cause

When a written contract does not reflect the parties' actual agreement, the plaintiff may file for __________. A.) specific performance B.) injunction C.) reformation D.) rescission

C.) reformation

Shareholders possess all of the following powers EXCEPT: A.) proposing new ideas for the corporation. B.) removing members of the board of directors. C.) taking part in daily corporate management. D.) approving major corporate decisions.

C.) taking part in daily corporate management.

Consideration must be __________. A.) an exchange of money B.) real property C.) the product of a bargained-for exchange D.) given by the offeror but not the offeree

C.) the product of a bargained for exchange

The __________ files charges against the __________ in a criminal proceeding. A.)court, government B.) government, victim C.)government, defendant D.)victim, defendant

C.)government, defendant

Which of the following is true of a mutual mistake? A.) The mistake does not have a material effect on the agreement. B.) The mistake is caused by a clerical error that resulted from gross negligence. C.) One party makes a mistake about a material fact that the other party is ignorant of. D.) A contract entered into based on a mutual mistake can be rescinded by either party.

D.) A contract entered into based on a mutual mistakes can be rescinded by either party.

Which of the following is true of a mutual mistake? A.) The mistake does not have a material effect on the agreement. B.) The mistake is caused by a clerical error that resulted from gross negligence. C.) One party makes a mistake about a material fact that the other party is ignorant of. D.) A contract entered into based on mutual mistakes can be rescinded by either party.

D.) A contract entered into based on mutual mistakes can be rescinded by either party.

A building code violation is an example of: A.) A felony. B.) A tort. C.) Bribery. D.) A petty offense.

D.) A petty offense.

Which of the following is not an element of fraudulent misrepresentation? A.)Justifiable reliance on the false statement by the innocent party. B.) A false statement about a material fact of the contract. C.) Intent to deceive. D.) All of these are elements required to prove fraudulent misrepresentation. E.) None of these are elements of fraudulent misrepresentation.

D.) All of these are elements required to prove fraudulent misrepresentation.

When does a law enforcement agent read Miranda rights to an arrested individual? A.) At the trial. B.) At sentencing. C.) During discovery. D.) Before questioning

D.) Before questioning

Which document initiates the lawsuit? A.) Reply. B.) Interrogatory. C.) Motion for summary judgment. D.) Complaint. E.) Answer.

D.) Complaint.

Which of the following is not an example of a situation in which a contract may be discharged by operation of law? A.) Impossibility B.) Bankruptcy C.) Frustration of purpose D.) Conditions of the contract are not met

D.) Conditions of the contract are not met

Which of the following criteria is necessary for a case or controversy to exist? A.) Injury is redressed by a favorable decision. B.) Court decision is unable to affect the parties immediately. C.) Threatened actions of one of the parties do not give rise to a legal dispute. D.) Court decision is able to resolve the dispute.

D.) Court decision is able to resolve the dispute.

More than one-half of all publicly traded corporations in the United States are incorporated in _____. A.) Illinois B.) California C.) Michigan D.) Delaware E.) Texas

D.) Delaware

In which tort, must a plaintiff prove that the defendant published a false statement of material fact, about the plaintiff's product or service, that resulted in a loss of sales? A.) Libel. B.) Slander. C.) Fraudulent misrepresentation. D.) Disparagement.

D.) Disparagement.

What type of ratification occurs when a person states that they intend to be bound by a contract entered into as a minor? A.) Implied B.) Understood C.) Voidable D.) Express

D.) Express

Which business activities can lead to potential legal conflicts? A.) Finance capital growth. B.) Comply with government rules. C.) Hire and develop employees. D.) Finance capital growth, comply with government rules, and hire and develop employees can all lead to potential legal conflicts.

D.) Finance capital growth, comply with government rules, and hire and develop employees can all lead to potential legal conflicts.

In a corporation, who runs the day-to-day operations? A.) Shareholders B.) Directors C.) Trustees D.) Officers

D.) Officers

A door-to-door hearing aid salesman specifically targets elderly clients. When the clients ask questions about the contract, the salesman is not truthful with them entirely. The answers to their questions are usually found on the tiny, hard-to-read print on the very back of the long contract the clients must sign. The salesman knows that his clients have poor vision and hearing, and uses this to his advantage in his sales techniques and with the small contractual terms. The scenario above is a possible example of which type of agreement? A.) In pari delicto B.) Substantive unconscionability C.) Covenant not to compete D.) Procedural unconscionability E.) Exculpatory clause

D.) Procedural unconscionability

Which of the following is not an element of a contract? A.) Agreement. B.) Consideration. C.) Legal object. D.) Proper form.

D.) Proper form.

How often to courts weigh whether or not you made a good bargain? A.) Never. B.) Always. C.) Frequently. D.) Seldom.

D.) Seldom.

Directors and officers are not liable for decisions that harm the corporation if they act in good faith under the _____ rule. A.) duty of care B.) shareholder's liability C.) corporate responsibility D.) business judgment

D.) business judgment

When managers engage in ethical reasoning, they should consider: A.) customers and managers. B.) owners and investors. C.) employees and the community. D.) customers, managers, owners, investors, employees, and the community.

D.) customers, managers, owners, investors, employees, and the community.

A promise to do something that you are already obligated to do is __________ consideration. A.) good B.) partial C.) legal D.) insufficient

D.) insufficient

If a court orders rescission, the contract is: A.) extended B.) ratified C.) reformed D.) terminated

D.) terminated

If one or both parties have the ability to either withdraw from the contract or enforce it, the contract is said to be: A.) valid. B.) unenforceable. C.) void. D.) voidable.

D.) voidable.

Because their contracts are _____, minors have the right, until a reasonable time after reaching the age of majority, to _____, or avoid their contracts. A.) void; disaffirm B.) void; affirm C.) void; rescind D.) voidable; disaffirm E.) voidable; remand

D.) voidable; disaffirm

Each of the following situations would qualify as a tort of trespass to realty except A.) Linda enters the private school downtown after hours without permission. B.) Linda continues sunbathing on her neighbors private beach after being told to leave by her neighbor. C.) Linda refuses to remove the statue that she placed on her neighbor's lawn after her neighbor asked her to do so. D.)Linda steals a watch from the passenger next to her in the subway. E.)Linda plants several trees on a farmer's property without the farmer's permission.

D.)Linda steals a watch from the passenger next to her in the subway.

Who of the following can serve as an arbitrator? A.) Qualified members of the community. B.) Lawyers. C.) Business professionals. D.) Professors. E.) AlE.) All of these people can potentially be arbitrators.l of these people can potentially be arbitrators.

E.) All of these people can potentially be arbitrators.

Suppose Joey and Mikey enter into a contract together. Joey says he will pay Mikey $100,000 to kill one of Joey's enemies. Both parties know this contract involves the undertaking of an illegal act. Under which element of a contract is this contract not enforceable? A.) Lack of genuine assent B.) Consideration C.) Contractual capacity D.) Agreement E.) Legal object

E.) Legal object

Hillary and Dillon enter into a contract whereby Hillary, seventeen (17) years old, purchases a computer and printer from Dillon. Dillon agrees to finance the contract and allows Hillary to pay $100 per month. When Hillary turns eighteen (18) years old, what must she do to ratify the contract? A.) She must give Dillon written notice that she intends to keep the computer. B.) She must return the computer and allow Dillon to refinance it for a higher monthly payment since she is now an adult. C.) She must call Dillon and expressly agree to keep paying the $100 per month. D.) She must give Dillon written notice and pay the entire amount due on the contract. E.) She can ratify the contract by continuing to pay $100 per month with no other requirement.

E.) She can ratify the contract by continuing to pay $100 per month with no other requirement.

If when making the decision about whether to move their plant to Honduras, Smooth Ride management considered how they would feel if details of the move were the focus of a headline story on the front page of the Wall Street Journal, which test would they be applying? A.) The public disclosure and universalization tests. B.) None of the listed tests are being applied. C.) The universalization test. D.) The golden rule. E.) The public disclosure test.

E.) The public disclosure test.

Constance and Patricia are arrested for soliciting sexual favors on a street corner, which is against the law in their state. After being arrested and read their Miranda rights, Constance and Patricia will be taken to the police station for _____. A.) a formal complaint B.) an information C.) a first appearance D.) a bond hearing E.) booking

E.) booking

Once all the terms of the contract have been fully performed, the contract has been _________. As long as some of the terms have not yet been performed, the contract is ________. A.) validated; voided B.) expressed; implied C.) implied; expressed D.) executory; executed E.) executed; executory

E.) executed; executory

The effect of both _____________ and ____________ is that the victim can either rescind the contract or keep the contract and sue for damages. A.) innocent misrepresentation; fraudulent misrepresentation B.)negligent misrepresentation; innocent misrepresentation C.) innocent misrepresentation; intentional misrepresentation D.) intentional misrepresentation; concealment E.) negligent misrepresentation; fraudulent misrepresentation

E.) negligent misrepresentation; fraudulent misrepresentation

A corporate executive cannot be held criminally liable if he or she did not know about the company's criminal violation. T OR F

FALSE

The Golden Rule is the idea that we should interact with other people in a manner that is inconsistent with the way we would like them to interact with us. T OR F

FALSE

intentional tort

Occur when defendant takes action intending that certain consequences will result, or knowing they are likely to result

A voidable contract may be rescinded. T OR F

TRUE

A voidable contract may be rescinded. TRUE OR FALSE

TRUE

Anticipatory repudiation discharges the non-breaching party from his obligations under the contract. T OR F

TRUE

Business ethics refers to standards of business conduct. T OR F

TRUE

If the subject matter of the offer is destroyed or becomes illegal, the offer immediately terminates. T OR F

TRUE

The grand jury consists of a group of citizens who consider evidence in a criminal case to determine if there is enough evidence to bring a defendant to trial. T OR F

TRUE

The plaintiff has an obligation to try to mitigate one's damages in a breach-of-contract case. T OR F

TRUE

The universalization test asks us to consider what the world would be like were our decision copied by everyone else. T OR F

TRUE

Conversion

a person permanently removes personal property it cannot be returned; full reimbursement

gross negligence

an action committed with extreme reckless disregard for the property or life of another person

Contributory Negligence

defendant and plantiff were negligent

to prove negligence, a plaintiff must demonstrate

duty breach of duty causation-actual and proximate damages

three factors to strict

it involves serious risk or harm to others or property dangerous it cannot be safely undertaken it is not usually performed in the immediate community

negligent tort

occurs when the defendant fails to act in a responsible way and thereby subjects other people to an unreasonable risk of harm

Contributory Negligence 2 elements

plantiffs conduct fell below standard of care needed to prevent harm and risk plantiffs failure was cause of their own injury

Slander

spoken defamation

Libel

written defamation