Ag Law Exam 1
Which of the following is NOT an express warranty?
"All ingredients used in this feed are of top quality."
We enter a contract whereby you agree to buy grain from me at $4.50/bu. I don't deliver. The current market price for grain of comparable quality is $4.75. What are your damages on a per-bushel basis?
$0.25/bushel
I agree to help you form a farm corporation for $500. I breach, and you have to get another lawyer who charges $750 when she forms the corporation for you. How much can you recover from me?
$250
To what types of contracts does the Statute of Frauds apply, and what is the consequence of the Statute of Frauds applying to such contracts?
1) Agreements that cannot be performed within one year of the making of the contract. 2) A promise to answer for the debt, default, or miscarriage of another 3) "An agreement made upon consideration of marriage." 4) Agreements involving an interest in land. WHAT MATTERS IS THE TYPE OF INTEREST IN THE LAND, NOT THE AMOUNT OF PROPERTY INVOLVED!!! 5) A contract for the sale of goods in excess of $500 or more.
What are the different ways an offeror can revoke his or her offer?
1) You directly indicate to the offeree that you have revoked the offer. 2) You engage in conduct that unambiguously indicates that you have changed your mind AND the offeree is aware of your conduct.
How long do you have to comment on a rule once it is published?
30 days
Common Law or Case Law
A body of law that is bases on custom and general principles and embodies in case law and that serves as precedent or is applies to situations not covered by statute. The interpretation of constitutional, statutory and administrative law by the courts. Soooo, put it all together and it is the body of law that is derived from judicial precedent.
What is the definition of "the law?"
A body of rules that can be enforced by the authority of a government (federal, state, and local)
What are the different ways that an offeree can accept an offer?
A return promise, start performing, or improper performance Improper performance yields a breached contract
Can warranties be disclaimed?
A seller can disclaim implied warranties, but NOT express warranties. a. A contract for the sale of a seeder says that "all parts are guaranteed for two years." The same contract also provides that "all warranties are disclaimed." Has the contract effectively disclaimed the warranty on parts? i. NOPE - express warranties cannot be disclaimed. The phrase "as is" or "with all faults" can be used to eliminate any implied warranties ii. A contract for the sale of a seeder says that it is sold "as is." Are there any implied warranties? iii. NOPE - using the "as is" eliminates all implied warranties. Absent the "as is" or "with all faults" language, if you want to disclaim the implied warranties of merchantability or fitness for a particular purpose, you have to do so in writing and make it conspicuous. b. Basically, you'd have to have something like: ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF FITNESS AND MERCHANTABILITY ARE EXCLUDED. But remember - you CANNOT disclaim express warranties.
What is the process for participating in someone else's lawsuit via amicus curiae?
A way to participate in case law. You come up with a modification of a case law rule through legislation or regulation. "pile on" to an already existing case through an amicus curiae (friend of the court) filing.
Grantor transfers property "to A, B, and C." What kind of estate do A, B, and C have?
A,B, and C have a tenancy in common, and everyone has a 1/3 interest.
What is a contract?
An agreement between two or more parties consisting of a promise or set of promises which the law will enforce.
What is the definition of a contract?
An agreement between two or more parties consisting of a promise or set of promises which the law will enforce.
How is common law/case law created?
Arises from the interpretation of legal principles (from other forms of law or extrapolation from other case law) by courts to the specific situation before the court. 1) Court examines the facts of the case. 2) The court looks for a rule to apply: A) If a statute or regulation applies, it starts with that, and if not, it looks for another case similar to the one at hand. 3) The court applies the rule to the facts of the case, if it can do so directly. 4) If it can't apply the rule to the facts directly, it draws an analogy from other cases and announces its new rule. ** JUDGES GENERALLY DO NOT LIKE TO CHANGE THEIR INTERPRETATION OF A RULE IF THEY CAN AVOID IT. How is it modified? Case law can be explicitly overridden by passage of a statute or regulation. But there are limits to this - legislatures and agencies can't exceed their authority to pass laws/regulations. Judges can modify their interpretations if they feel that social policy dictates a new or modified rule. And occasionally, they will explicitly overturn a previous rule. A court can be confronted by a situation that dictates the formulation of a new rule.
You enter a contract with the local implement dealer to lease a tractor and hay baler for one year. Which article of the Uniform Commercial Code governs your contract?
Article 2A
Now, Tom leases farmland from Jerry, and their lease states "this lease shall commence on November 1, 2020, and shall renew thereafter annually until terminated by one of the parties." When must Tom provide to terminate Jerry's lease before it renews again?
At least 3 months in advance
How do you determine the parties?
At the bottom. Should say who the defendant is. Plaintiff is listed above the defendant.
If we don't specify the interests of tenants in common or joint tenants, what do we assume about their interests?
At the death of any joint tenant, their ownership is immediately distributed amongst all the surviving joint tenants
A, B, and C hold property as joint tenants with right of survivorship. A dies, leaving everything to C. Who owns what?
B and C own 1/2 each as joint tenants with rights of survivorship - the survivorship of the joint tenants trumps the transfer
Grantor transfers property "to A, B, and C." After this transfer, A dies, and in her will, leaves everything to C. Who owns what?
B has a 1/3 interest, C has a 2/3 interest, both as tenants in common.
How is statutory law created?
Bill is proposed by legislator in one house (and at federal level, revenue bills must originate in the house). Bill must be approved by both houses of legislature. Bills must then be signed by chief executive or vetoed. 2/3 majority of both houses required to override veto.
Devisable?
Capable of being transferred at the death of the grantor through a will
Descendible?
Capable of being transferred at the death of the grantor through intestacy.
Alienable?
Capable of being transferred during the life of the grantor
How can you participate in the modification of Common Law/Case Law?
Come up with a modification of case law through legislation or regulation. "Pile on" to an already-existing case through an amicus curiae (" friend of the court") filing.
What is the Constitution's most important grant of legislative authority to Congress?
Constitutional Law
When asking yourself if they breached the warranty...
Did I have a specific purpose? Does it work for the specific task? Does the seller know I was relying on them?
How can you participate in the modification of administrative law?
Directly participate by comments on rules. Suggest rules. Get on a council/commission board.
How is administrative law modified?
Essentially, the same process as it is created. Agency policies can also affect interpretation of regulations.
How does the FOB designation show who bears the risk of loss to goods in transport?
FOB= Free On Board. Not really a warranty, but instead a shorthand for who bears the risk of loss while goods are in transit. • FOB [seller's location] means that we have a "shipment contract" and, absent a breach by someone, the BUYER bears the risk of loss. • FOB [buyer's location] means that we have a "delivery contract" and, absent a breach by someone, the SELLER bears the risk of loss
1. Where must notice of new federal and state rules be published?
Federal Register, Oklahoma Register
A grantor makes out a deed that says, "To A and her heirs..." What did A just get?
Fee Simple Absolute
Which kind of property ownership is the most complete, i.e. has the fewest "strings?"
Fee Simple Absolute
How do we determine if an advertisement is an offer?
Generally, offers need to have a measure of "definiteness" in that they need to target a defined group (there is some sort of limit as to who can accept) and have some sort of defined term. This is why advertisements are generally not considered offers, but rather an invitation to offer.
How is constitutional law created?
Has a single occurrence- establishment through a constitutional convention?
What is required for a party to a contract to be deemed "competent?"
Has to be 18 years or older. Have to be mentally competent and capable of understanding what they are doing and its consequences.
Are real estate transactions such as land leases and mortgages governed by the UCC?
I think so...?
How can you tell if something is a "good" as that term is defined by Article 2 of the UCC?
If it is moveable. Also included the unborn young of animals and growing crops.
How can you disclaim the warranty of merchantability and the warranty of fitness (heck, can you disclaim them?)?
Implied warranty of merchantability - a. Created by UCC Article 2 b. Definition: implied warranty that goods are fit for their ordinary purpose. Can only be issued by a merchant who deals in goods of the kind.
What do you need to have a legal contract?
Is it legal for them to do this? Was there an offer? Did they exchange something of value? Are the parties competent (capable of understanding the transaction which you are entering into?
What is the importance of the Uniform Commercial Code (UCC)?
It is a set of "uniform laws" adopted by virtually all the states to harmonize the law applying to the most common types of transactions.
What are the principles that judges try to follow in deciding cases (and given a choice, do most judges like to create their own rules? Why or why not?)
Judges do not like to create their own rules
Can someone ever create a contract for something that has already happened?
NO
You enter a contract with your neighbor to lease 640 acres of crop ground for one year. Would your lease be governed by Article 2 or Article 2A of the Uniform Commercial Code?
Neither - the lease wouldn't be governed by the UCC at all
Ferrell, an attorney by trade, gives you a written, signed offer saying "I'll sell you 80 acres of oceanfront property in Roger Mills County for $160,000, and you may accept any time before October 1st." Firm offer?
No, because (1) Ferrell ain't no merchant, and (2) there are no goods involved.
I offer to sell you my dynamite miniature Hereford bull for $5000. The next day in my office, I yell out "Holy schnike, there's no way I can part with him for that! Offer revoked! Offer revoked!!" Is the offer revoked?
No, because I have not communicated the revocation to you.
I offer you a quarter section of prime pastureland for $160,000, and you have paid me $100 for the option to accept the offer anytime on or before October 1st. Can I revoke the offer before October 1st?
No, because a valid option exists to keep the offer open through October 1.
1. How do we determine whether someone has made an offer to contract (what standard do we use to gauge their conduct?)
Offer: a manifestation of an intention to enter into a contract Did the person engage in.... (1) conduct or communication that (2) would lead a reasonable person to understand that the person wanted to enter a contract.
What is a grantor?
Person who is conveying an interest to someone else.
What is a grantee?
Person who is receiving an interest from someone else.
A grantor makes out a deed that says "To Peter for as long as he lives, and then to Lois." What do Peter and Lois have?
Peter has a life estate, Lois has a remainder
1. How do you summarize the grant of authority to the government to enact, and then enforce, the law?
Police Power- The court has the power to punish any contempt in order to protect the rights of the parties and the interest of the public by assuring that the administration of justice shall not be thwarted.
How can you participate in the modification of constitutional law?
Pretty difficult. Can use power of initiative at state level. Can have a role in modification of the interpretation through judicial action.
How is constitutional law modified?
Process of amendment. Federal proposal takes 2/3 majority of both house and senate (or proposal by 2/3 of the states), and ratification by 2/3 of the states. Oklahoma takes proposal by majority of both houses and approval by majority of people at election; canalso be proposed by initiative petition signed by 15% of voters in last general election.
How is administrative law created?
Regulations are created by delegation of the legislative power to the administrative agencies. Procedure for creating regulation is governed by the Administrative Procedure Act. - Publish notice of the proposed action in an official publication (Federal Register, Oklahoma Register). - Public comments must be taken for at least 30 days (and there must be a response to all of them). - A public hearing regarding the proposed rule is held. - Agency makes final rule decision. - Final rule must be published in Register. - Rule must be signed by governor and can be overruled by legislature.
How do you determine the citation?
Right below the style. (Example: 2006 OK 86)
Tom leases farmland from Jerry, and their lease states "this lease shall commence on November 1, 2020, and shall terminate on October 31, 2021." What kind of lease do Tom and Jerry have?
Tenancy for years (aka tenancy for a term)
What are the principal means by which the government enforces legal obligations?
The Declaration of Independence and the Constitution
There's been lots of talk lately about a Balanced Budget Amendment to the Constitution. What would it take to enact such an amendment?
The amendment must be proposed in either the U.S. House or Senate, passed by a two-thirds majority in both houses, and then ratified by three-fourths of the States.
Administrative Law
The body of agency-made law consisting of administrative rules, regulations, and enforceable policies.
Statutory Law
The codified laws passed by a government's legislative body
Constitutional Law:
The fundamental law of a government establishing the government, defining its organization, and prescribing the limits and exercise of its powers. Represents the highest form of law.
What kinds of damages are allowed for a breach of contract, and how are they calculated (including "mitigation of damages")?
The good should already be expected to do its intended purpose. • Three elements: - The buyer has a special purpose for using the goods. - The buyer is relying on the seller to select suitable goods. - The seller knows that the buyer is relying on them. - NOTE: you don't have to have a merchant seller.
How do you determine style?
The name at the top (Example: Heldermon v. Wright)
If a power is not given to the United States and is not prohibited to a state, who can exercise that power? Where is that authority found? You have to get both the "who" and the citation right.
The power rests with either the states and/or the people (Amendment X).
You go to the local Chevy dealership and tell the salesperson you need a vehicle with plenty of horsepower and that is capable of pulling a double-axle trailer full of stocker cattle, and that you need him to pick a vehicle that will fit the bill. He sells you a Stingray 'Vette. It drives great, but the ball hitch you welded on the back deck keeps ripping off every time you hook up to the trailer. Which warranty was breached?
The warranty of fitness for a particular purpose.
What happens when state laws conflict with the U.S. Constitution, statutes, and treaties?
They are not given general authority to pass laws over any subject matter.
The U.S. Constitution contains a list setting forth the kinds of matters about which the U.S. Congress can make laws. One of these clauses gives Congress the broadest power to address all sorts of issues, from wetlands to wheat. Which clause is it?
To regulate commerce with foreign nations, and among the several states, and with the Indian tribes
Tom leases farmland from Jerry, and their lease states "this lease shall commence on November 1, 2020, and shall terminate on October 31, 2021." When must Tom give Jerry notice if he wants to terminate the lease on October 31, 2021?
Tom doesn't have to provide notice to Jerry for the lease to terminate.
Since it seems to be a hot topic lately (for some reason), what are the grounds upon which a U.S. president can be impeached?
Treason, bribery, or other high crimes and misdemeanors.
How is statutory law modified?
Unlike constitutional law, statutory law is modified all the time. Process of modification is the same as process of creation.
1. What are the six legal interests in property?
Use, possess, enjoy, exclude, transfer and consume
How can you participate in modification of statutory law?
Working with your legislator. At federal level, only legislators can propose bills. However, in Oklahoma, citizens have power of initiative and referendum..." but the people reserve to themselves the power to propose laws and amendments to the constitution and to enact or reject the same at the polls independent of legislature"
Dexter, the local computer dealer, signs a letter to you saying he'll sell your Co-op a DTN terminal for $500, and you can accept any time before October 1st. Firm offer?
Yes - all the elements of a UCC firm offer are satisfied.
I agree to sell you a combine with delivery on June 1. I breach, and you are not able to find another combine right away. A hailstorm beats your wheat crop into clay-flavored flour. Am I liable for the loss of your crop?
Yes, IF that particular kind of loss was foreseeable at the time the contract was formed.
Lisa buys a tractor from the local tractor dealership. As she's driving home from the dealership, this happens... Has there been a breach of the implied warranty of merchantability?
Yes, all the elements for breach of the warranty of merchantability are met.
Sam leases a 160-acre parcel of farmland from Diane. Their lease states "this lease shall commence on January 1, 2021, and shall renew thereafter annually until terminated by one of the parties." On September 15, 2021, Sam plants his winter wheat crop on the parcel. On September 30, 2021, Sam gets a letter from Diane informing him that the lease will terminate effective at midnight, December 31, 2021. Assuming that Sam has done nothing to violate the terms of the lease and is current on his rent, would Sam be entitled to harvest the crop?
Yes, because a tenant who has done nothing to cause the termination of the lease is entitled to harvest the crop planted on lease land so long as they had no knowledge that the lease would terminate at the time the crop was planted.
Haley rents a manufactured home that is located on a small lot (1 acre in size; just a lawn and a little space for her to keep her horse). Would the Oklahoma Landlord and Tenant Act apply to her lease?
Yes, because she is lease arrangement with the primary purpose being rental of the residence, not agricultural use.
I offer you a quarter section of prime pastureland for $160,000 and promise to keep the offer open until October 1st. Can I REVOKE the offer before October 1st?
Yes, because the person creating the offer has the power to revoke it.
What is meant when a contract has "proper subject matter?
You can't enter into a contract that would cause a legally prohibited condition or conduct to occur.
What are the elements required to have "standing" to bring a lawsuit on your own claim?
a. 1) You have to have an actual or imminent (darn near certain) violation of a legally protected right. b. 2) There has to be a connection between the injury and the conduct about which you are complaining. c. 3) It must be likely that the injury can be fixed by a favorable judicial decision.
1. How can an offeree reject an offer (contrast counteroffers with negotiation)?
a. A counteroffer operates as a rejection, but bargaining does not. A conditional acceptance operates as a rejection
What kinds of transactions are governed by Article 2, Article 2A, Article 7, and Article 9 of the UCC?
a. Article 2: sale of "goods" b. Article 2A: Leases. A transfer of the right to possession and use of GOODS for a term. c. Article 7: Deals with "warehouse receipts," "bills of lading," and "other documents of title." In other words - the rules governing transactions where you place your goods in the care of someone else. This can include: i. Grain elevators ii. Feedlots iii. Truckers d. Article 9: Secured Transactions. A transaction where a debtor agrees ot turn over possession of something in the event that the debtor defaults on their obligation.
How is consideration defined, and what will/will not suffice as consideration?
a. Consideration can be in the form of a promise to perform. b. Forebearance (promising to not do something) can also be consideration c. The law doesn't care about whether the consideration is "adequate" for the promise. d. PAST consideration is not consideration at all- You can't bargain for something that has already been done. (Your neighbor is so grateful he promises to pay you $1,000. If your neighbor changes his mind, can you enforce his promise against him? NOOPE)
What are the abracadabra words for creating a tenancy in common (or are there any)? What about a joint tenancy with right of survivorship?
a. Creation: Requires two things. i. 1.) Language that clearly states the transfer is creating a joint tenancy WITH a right of survivorship. ii. 2.) Complete unities of: iii. Time - everyone has to get the property at the same time. iv. Title - everyone has to get the property through the same piece of paper. v. Interest - everyone gets equal amounts of ownership. vi. Possession - everyone gets equal rights to possess the property.
Firm Offers:
a. Firm offers can only be used on goods b. Must be in writing and signed c. Must be from a merchant d. Offer will be kept open for a definite open of time, not to exceed 3 months
What is required to hold an offer open for a specified period of time if the contract deals with goods? What about things that aren't goods, like land?
a. Generally, the offeror can revoke the offer at any time prior to acceptance, with a couple of exceptions. 1) An option consisting of a promise to keep the offer open for a definite period of time and is supported by consideration (compensation). 2) Second exception to rule that the offeror can revoke the offer at any time prior to acceptance: firm offer. Can't use a firm offer on land. Only applies to goods.
What words are used to create a fee simple absolute estate? What is the presumption of Oklahoma law if you don't specify what kind of estate was intended?
a. Grant has to contain the words: "To [grantee] and his heirs...". b. HOWEVER, modern rule is that all transfers are presumed to transfer a fee simple absolute unless specifically stated otherwise. c. It is assumed that if you transfer your property to someone, you are transferring everything you own unless specified otherwise .
How do you modify a contract?
a. Has to be amended and signed or initialed by both parties. b. Best way is to just re-draft a new agreement. c. Has to be done before executing the contract.
Anticipatory Repudiation:
a. Seems like the other person is gonna flake out of the contract or excuse the other person from completing their half i. If this happens you can stop right then and there and sue for at least the part of the contract price you have already earned.
Remedies for Breach of contract:
a. Specific performance - compel a party to do what they agreed to do. i. Generally, requires that there be some "unique" and irreplaceable element to the contract (most commonly found in land contracts). ii. We generally don't like to use specific performance in service contracts, because it seems too much like indentured servitude. Person who breached the contract has to pay what they still have to pay anyways! You and I enter a contract whereby you'll pay me $50,000 for 10,000 bushels of grain. I breach. You then have to buy the grain from someone else for $55,000. What are your damages? • $5,000 ($55,000 - $50,000 = $5,000) • INCIDENTAL DAMAGES: costs reasonably incurred in arranging a replacement deal (making phone calls, delivery fees, etc.) - Because I breached the contract you spent $300 in brokerage fees and had to pay $700 in additional transportation costs. What are your incidental damages? • $1,000 ($300 + $700 = $1,000) • CONSEQUENTIAL DAMAGES: special damages reasonably foreseeable by the breaching party at the time of the contract. LOTS of contracts will specifically exclude these damages. • You were buying the grain to make spaghetti for the Pastapalooza festival. Since I didn't deliver on time, you had to refund everyone's advance-purchase tickets... a total of $100,000. Those are your consequential damages. AVOIDABLE DAMAGS/PRINCIPLE OF MITIGATION: Basic principle - you have to do your best to minimize damages; you can't just sit back and let damages rack up if you can help it. Bob gets fired from his job in violation of his contract. He makes $1,000/week. His former employer alleges that Bob could easily get a comparable job paying $900/week. What are Bob's damages? • $100/week, because he could avoid the rest of the $1,000/week in damages by taking the other job.
1. What are the four types of leases, and how is each defined?
a. Tenancy for Years (or for a Term): A tenancy with a specific, defined period. i. Duration: Lasts until the end of the period. ii. How to end it: That's it - nothing else is required to terminate the tenancy - AUTOMATIC at end of term. b. Periodic Tenancy: A tenancy that is considered to automatically renew itself at specified periods (years, months, weeks). i. Duration: Lasts until the end of the period in which notice of termination is given. ii. How to end it: give notice that the lease will not be renewed. c. Tenancy at Will: A tenancy that can be terminated at any time by either the landlord or tenant (stable, huh?). i. Duration: Undefined - depends on when landlord or tenant says so. ii. How to end it: either landlord or tenant provides notice of termination. d. Tenancy at Sufferance: A default tenancy that occurs when the lease is over and the tenant has not yet vacated the premises. i. Duration: From the end of the previous lease until the landlord gets the tenant off the property. ii. How to end it: Finally kick the tenant off
How can a life estate be transferred at death - or can it be transferred at death?
a. To [Grantee 1] for as long as he lives, and then to [Grantee 2]... b. To [Grantee 1] for as long as [Person A] lives... c. Once measuring life dies, any transferred interest goes to the person specified in the original grant. i. Once you die, the ticket has to go to the remainderman
What is the parole evidence rule?
a. We won't allow evidence of what the parties did and what they said BEFORE they reduced the terms of their agreement to writing if it contradicts the written agreement. b. This is an "evidence" rule, and will be applied when a court gets involved in interpreting the contract.
What constitutes an express warranty?
a. When someone tells you either a statement or a fact about goods. A promise (if something is wrong with this good, I will make it right) or description of a good. AN OPNION IS NOT AN EXPRESS WARRENTY.
How does "reserved" and "without reserve" auctions work, especially with regard to the seller's ability to withdraw their items?
a. auctions are considered to be "reserved" unless the auctioneer explicitly states that the auction is without reserve. b. If the auction is "reserved" the auctioneer can withdraw the goods at any time until he announces completion of the sale. c. If the auction is NOT reserved ("without reserve"), then the goods CANNOT be withdrawn unless no bids are received within a reasonable time. d. REGARDLESS of whether an auction is reserved or not, a bidder can withdraw their bid at any time UNTIL the sale is completed.
What is a Quasi- contract?
a. equitable remedy that applies whenever contract law would yield an unfair result; primarily designed to protect against unjust enrichment. b. Elements: i. Plaintiff has conferred a benefit on the defendant. ii. Plaintiff reasonably expected to be paid. iii. Defendant will be unjustly enriched if Plaintiff is not compensated.
Estate?
a. the collection of interests a person holds with respect to property. i. Present estate: an estate to which a person is currently entitled and which is currently possessed by the person in question. ii. Future estate: an estate to which a person is currently entitled but which is NOT currently possessed by the person in question.
What guarantees are implied by the warranty of merchantability and by the warranty of fitness for a particular purpose?
warranties that, even if not expressed, will be implied by the law in specified circumstances.
