BA 230 quiz questions
the minimum amount required for a federal diversity suit is
$75,000
the law of which country provided the roots for US law
England
Jack mails an offer to Joan that states, "I offer to sell you my car for $2000. If I do not hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result?
Joan is not bound. Generally an offeree must say or do something to accept an offer
When myrtle comes home from work one evening, she finds that her yard has been mowed and trimmed. Later, a man comes to collect for the yard work done Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work. Which of the following answers is most accurate?
Myrtle would not have to pay for the yard work
Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter's boss told him, "I'm really grateful for the year that you have worked here. I am going to give you a bonus of $1,000 in your last paycheck". When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be
Walter will lose, as he gave no consideration. Past consideration is generally no consideration.
Keith offers to sell his business to Debbie for $125,000. Debbie replies "your price is too high. I will buy your business for $100,000" Debbies response is
a counter offer
a complaint filed in a lawsuit could not contain which of the following
a counterclaim
which of the following is not included in a complaint?
a counterclaim
Extreme publications, Inc., disseminates obscene materials. This is
a crime
Sam, a citizen of New Mexico, wants file a suit against Tanya, a citizen of Texas. Their diversity of citizenship may be a basis for
a federal district court to exercise original jurisdiction
Which of the following constitutes legal consideration?
a promise based upon a change in duties
Lori and Mike orally agree to several different contracts. The statute of frauds will bar enforcement of an oral contract for
a sale of land
Carl promises to trim the hedge in Donna's yard in exchange for Donna's promise to fix Evan's mailbox. This is
a third party beneficiary contract
Mona falsely accuses Nick of stealing from their employer. The statement is slander only if
a third party hears it
The mailbox rule applies to
acceptances communicated through the offer's stipulated means
the occupational safety and health administration promulgated a rule requiring guards for hand-fed circular
administrative law
commercial products company (CPC) markets its products nationwide. When making a decision, CPC must take into account the needs of
all of the above
congress enacts a law that restricts commercial speech. This law will be considered valid if it
all of the above
which of the following is NOT an advantage of arbitration
always nonbinding
Rob's transfer of rights he has under a contract with Sam to Tina is
an assignment
Jay tells Kim that he will buy her textbook from the last semester for $80. Kim agrees. Jay and Kim have
an express contract
"I'll sell you my car if I decide to sell it" is an example of
an illusory promise
Tom enters a coffee shop in which he has a charge account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that he will be billed for it at the end of the month. Tom has formed
an implied-in-fact contract
The intent of the offerer to extend an offer to the offeree is generally determined by reference to
an objective assessment of the words and conduct of the offeror
The intent of the offeror to extend an offer to the offeree is generally determined by reference to
an objective assessment of the words and conduct of the offeror
Indiana enacts a statute that bans the distribution of anonymous political leaflets. A court would likely hold this to be
an unconstitutional restriction of speech
Minnesota enacts a statute to ban advertising in "bad taste". This statute would likely be held by a court to be
an unconstitutional restriction of speech
which of the following methods of alternative dispute resolution involves a hearing?
arbitration
peremptory challenges
are generally limited in each case
long-arm statutes
are simply procedural statutes that still require minimum contracts for use
A train's brakes malfunction and it rolls towards maintenance workers on the tracks. Everyone gets out of the way except Dick, who wants to show off. Dick is hit by the train and sues the brake's manufacturer. The manufacturer can raise the defense of
assumption of risk
Paula, a resident of california, owns a farm in Iowa A dispute arises over the ownership of the farm with Don, a resident of Nevada. Don files a suit against Paula in Iowa. Regarding this suit, Iowa
can exercise in rem jurisdiction
cold products, Inc. manufactures snowboards, which it sells to sporting good outlets. Sporting good outlet sells cold boards to consumers, including Mike. Mike is injured while using the board. In a product liability suit based on strict liability, Mike may recover from
cold products
which of the following is the first document filed in a lawsuit
complaint
eagle manufacturing corporation could demonstrate a commitment to ethical behavior by
complying with the law, establishing ethics codes, and making money
Alpha company, a business firm based in California, advertises on the web. A court in new jersey would most likely to exercise jurisdiction over Alpha if Alpha
conducted substantial business with New Jersey residents at its web site
Sam files a complaint in a suit against Tina, and she files an answer. At this point, this case may be
dismissed or settled before the parties enter a courtoom
Greg uses threats of physical harm to force Kim to enter into a contract. This is
duress
in making business decisions, Owen, a certified financial planner with private investment corporation, attempts to apply his belief that human beings have fundamental rights. This belief is implied by
duty-based ethical standards and Kantian ethics
Bob is injured in a car accident and files a suit against Mary, whom Bob alleges was driving negligent. Mary claims that Bob was driving more carelessly than she was. Comparative negligence in tort cases may reduce a plaintiff's recovery
even if the plaintiff was only a small fraction at fault
April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on six contracts to sell her computer for $500
false
I tell you that if you promise to paint my house this month, I'll pay you $1,000 when you finish the job. If you accept, this is a unilateral contract
false
On Monday, Harry mails an offer to Sally to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sally he has changed his mind and the guitar is no longer for sale. The revocation is effective upon dispatch
false
Sandra sued her employer, Cape Inc., claiming that she was sexually harassed on the job. This is a criminal lawsuit
false
When olga asks Sven if he wishes to sell his harley motorcycle, he replies that he would not sell it "for less than $2,000". Olga replies, "I accept", and hands him $2,000. A contract exists.
false
a defendant always has the burden of proving that the plaintiff's claim is not correct
false
a judge's function is to make the law
false
a mini-trial is a public method of dispute resolution
false
a promise o pay for an act performed in the past creates a valid contract
false
a state court cannot exercise jurisdiction over all of the property located within the boundaries of the state
false
a state court system is typically made up of trail courts, appellate courts, and federal district courts
false
according to utilitarianism, it does not matter how many people benefit from an act
false
after a decision has been rendered in a case, neither party may file an appeal
false
an offer is effectively communicated upon mailing or dispatch
false
appellate courts may elect to hear new evidence in a lawsuit
false
commercial speech is protected as extensively as noncommercial speech by the first admendment
false
common law is a term for law that is common throughout the world
false
constitutional law includes only the US constitution
false
courts do not depart from precedents
false
diversity of citizenship and a claim of $75,000 or more and a federal question are required for a federal district court to take jurisdiction on a case
false
economic need is alway sufficient to constitute duress
false
if Valley bridge contracts with rainbows to paint a bridge and the contract requires that only Sherwin Williams paint be used, then Sherwin Williams will be able to enforce the contract against either Valley Bridge or Rainbow Painters
false
ignorance of the law will always excuse a business from liability for a violation of that law
false
only the manufacturer of a defective product can be strictly liable for an injury or damage caused by the product
false
state police powers relate solely to criminal law enforcement
false
statutory law does not include country ordinances
false
the bill of rights confers absolute rights, not subject to interpretation by the US supreme court
false
the federal government cannot regulate commerce within a state, even if the commerce concerns more than one state
false
the results of mediation are generally binding
false
the statute of frauds provides that any contract not in writing is void
false
there is a specific guarantee of a right to privacy in the constitution
false
uniform laws apply in all states, including those in which the laws have not been adopted
false
unintentionally causing a party to break a contract may constitute wrongful interference with a contractual relationship
false
unlike an options contract, a merchant's firm offer requires consideration to be valid
false
when both parties are mistaken as to the same material fact, neither party can rescind the contract
false
Local investment company and Midstate properties Inc contract for the sale of a retail mall. A mutual mistake of fact will make it possible for either party to rescind the contract
if the mistake of fact is material
High quality products Inc files a suit against international software corporation. Jay is a witness for high quality - Kim is a witness for international software. High quality may direct interrogatories to
international software only
a law that violates the US constitution
is invalid
Emma Samuels is a resident of St. Johnsbury, Vermont. She was injured in an auto accident when a resident of Burlington, Vermont, struck her car from behind. Emma wishes to bring suit to recover her medical costs and the costs of repair to her car. Emma's suit:
is properly brought in Vermont's general trial court
Lora signs a covenant to compete with her employer, Midstate Distribution Inc. The covenant will be enforced if it
is reasonable with respect to geographic area and time
Pat loses a suit against Chuck. After the trial, Pat files a motion stating that even if the evidence is viewed in the light most favorable to Chuck, a reasonable jury should not have found in Chuck's favor. This is a motion for
judgment n.o.v.
common law refers to
law made when judges decide cases and then follow those decisions in later cases
if the US government bans the sales, in the US, of Whirligig, a child's toy, on the ground that is dangerous, it would be
legal but may be unethical to sell the toy outside the United States
Henry David Thoreau felt that was was unjust and therefore refused to pay his taxes when the US declared war on Mexico. Henry David Thoreau's neighbor agreed that war was unjust but paid his taxes because the law required him to pay the tax. The neighbor would be applying the jurisprudence theory of
legal positivism
a counterclaim is
made by a defendant
the doctrine of stare decisis
makes the law more predictable
Sam announces that he plans to sell his business for a stated price in the future. Tina gives Sam a check for the stated amount. Sam
may refuse to accept the check, because he only expressed an intent to do something in the future
Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the US declared war on Mexico. Thoreau felt that there was a higher law than the law of the land. Which theory of jurisprudence was he applying?
natural law
Royal Properties Inc. mails a flyer to hundreds of firms, advertising a building for sale. Standard manufacturing company responds by saying "we accept your offer". Between royal and standard, there is
no contract
a motion for judgment on the pleadings
none of the above
excel dry-cleaning advertises so effectively that next day cleaners regular customers start going to excel instead of next day. excel has committed
none of the above
Wanda enters the Xtreme triathlon, an athletic competition. Regarding the risk of injury, Wanda assumes those risks
normally associated with this event
Robert hired James, a CPA, to prepare his tax returns. James was too busy and delegated the work to Sara, also a CPA. This delegation is
not enforceable, as Robert hired James to perform personal services
John owns a presidential candidate named Stumpy Watson. Stumpy just announced that he believes that the devinity is a shape shifting space alien. John, disgusted by Stumpy's inability to keep his mouth shut, exclaims in a loud voice, 'I will sell that idiot to the first person who hands me $100" John has
not made an offer because under the circumstances a reasonable person would not conclude that John made an offer
Bill offers to sell Wendy seven tons of steel. Wendy sends an acceptance letter, but without the proper postage. Wendy's acceptance is effective
on receipt
the legislature of the state of Mississippi enacts a new statute that sets standards for the liability of businesses selling defective products. This statutes applies
only in Mississippi
sam, an engineer, supervises the construction of a new bridge. When the bridge collapses due to faulty construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to the same standard of care as
other engineers
Small claims courts are:
part of the state court system
The state of NY regulates private activities to protect or promote the public order, health, safety, and general welfare under its
police powers
which of the following is not a form of discovery
pretrial conference
Tyler offers to buy a laser printer, with a case of paper, and an extra cartridge, from Rick for $326. Rick says, "Ok, but no paper and no extra cartridge". Rick
rejected the offer and made a counteroffer
the doctrine of precedent
requires that judges decide current cases based on previous rulings
in studying business law, professor smith's students also study ethics in a business context. Ethics is the study of what constitutes
right or wrong behavior
In order to satisfy the statue of frauds, a writing must be
signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises
Kidtoys, Inc. sells a toy truck with a dangerous defect. Phil buys the truck for his son but discovers the defect before the child is injured. Phil files a suit against Kidtoys. Kidtoys could ask for dismissal of the suit on the basis that Phil does not have
standing
when a law limits the liberty of all persons to do something, it may violate
substantive due process
coffee brokers Inc, offers to sell Java Roasters fifty bags of coffee beans. Java rejects the offer. The offer is
terminated
Ace earth movers, Inc, uses dynamite to prepare land for highway projects. Strict liablity is imposed on this activity because
the activity is extremely risk
Holly, a lawyer on the staff of international group, applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on
the consequences of an action
the Ohio state legislature passes a law to regulate local delivery services. the final authority regarding the constitutionality of this law is
the courts
a default judgment results when
the defendant fails to file an answer in a timely fashion
good tire company designs and makes car and truck tires. In a product liability suit based on negligence, good tire could be liable for violating its duty of care with respect to
the design of the manufacture of the tires
Diana is a US citizen and the owner of eagle software systems, inc. The bill of rights embodies a series of protections for Diana and other individuals against various types of interference by
the government only
Mary wins her suit against national manufacturing company. National's best ground for appeal is the trial court's interpretation of
the law that applied to the issues in the case
Dick offered to sell Jane his 1955 thunderbird convertible. Before Jane can accept the offer, lightening strikes the car, and it is totally destroyed. Which of the following is true?
the offer is terminated by law
all powers not granted to the federal government by the US constitution are retained by
the states or the people
Alan files a suit against BiggCorp in a California superior court, which has general jurisdiction. Corner store files a suit against Donna in a California municipal court, which has limited jurisdiction. The difference between general and limited jurisdiction lies in
the subject matter of the cases that a court can decide
Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements of expressions?
totally integrated contracts
"an offerors words and conduct mean whatever a reasonable person in the offeree's position would think they meant" is the basis for the objective theory of contracts
true
Minors or persons who, by reason of mental illness or defect, are unable to understand the nature and consequences of the transactions create voidable contracts
true
a contract entered into under undue influence is voidable
true
a contract voidable because of capacity may only be canceled by the party lacking capacity
true
a court can have in personam jurisdiction over an out-of-state defendant by the defendant's consent
true
a delegation does not relieve the party making it of the obligation to perform if the party to whom the duty is delegated fails to perform
true
a deposition can be used at trial
true
a minor may accept and validate a contract with an adult
true
a person does not assume a risk that is different from the risk normally carried by an activity
true
a plaintiff could succeed in a product liability suit based on strict liability by showing that a product was unreasonably dangerous due to an inadequate warning
true
a plaintiff, suing for fraud, generally has the option of rescinding the contract or suing for damages
true
a promise to do some specified thing in the future is an offer
true
advertisements are generally not treated as offers to contract
true
an ethical issue involving conflicting duties can only be resolved by establishing which duties take priority over others
true
an individual's right to privacy includes the exclusive use of his or her identity
true
an offer to form a bilateral contract is accepted by a promise to perform
true
before a state court can exercise jurisdiction over an out-of-state defendant, it must be shown that he or she had minimum contacts with the state
true
bribery of foreign government officials is both an ethical and a legal issue
true
duty-based ethical standards imply that people have basic rights
true
generally, a state court can exercise jurisdiction over anymore within the boundaries of the state
true
generally, silence is not acceptance
true
in mediation, the parties use a third party as a go-between to facilitate negotiations
true
in most appealed cases, a trial court's decision is affirmed
true
interrogatories are only given to the parties in a case
true
interrogatories must be answered in writing and under oath
true
long-arm statutes give courts power to take jurisdiction over parties in other states in some cases
true
most large companies have established ethics programs
true
nondisclosure of a fact may amount to a misrepresentation in certain cases
true
procedural due process requires that any taking of a person's life, liberty, or property by government cannot occur without giving the person an opportunity to object before a fair, neutral decision maker
true
procedural law established the processes for settling disputes
true
review of a law on a substantive due process basis and review of a law on an equal protection basis considers similar questions
true
revocation can be valid any time prior to acceptance
true
small claims courts are state courts of original jurisdiction in which minimal damage suits are tried
true
some courts conclude that doing substantial business in a jurisdiction exclusively over the internet is enough to support jurisdiction over an out-of-state defendant
true
summary jury trials offer the perspective of a jury with a shortened version of the case
true
the bill of rights protects individuals against various types of interference by the states and by the federal government
true
the courts act as a check on the other branches of government
true
the doctrine of promissory estoppel requires a clear and definite promise
true
the effect of a counterclaim is to have the defendant also suing the plaintiff
true
the elements of a contract are agreement, consideration, legality, and capacity
true
the first amendment does not protect obscene speech
true
the minimal acceptable standard for ethical behavior is compliance with the law
true
the offeree's rejection of an offer terminates it
true
the principle that precedent is binding on later cases is stare decisis
true
the results of a mini-trial are always binding
true
to avoid being negligence, a person must not create an unreasonable and foreseeable risk
true
to commit an intentional tort, a person need not have intended a harmful result of their action
true
to succeed in a product liability suit based on negligence, a plaintiff must prove that there was a failure to exercise due care
true
to succeed in a product liability suit based on strict liability, a plaintiff must prove that a product was defective
true
under common law, a counteroffer is also a rejection
true
under the doctrine of comparative negligence, both the plaintiff's and the defendant's negligence are taken into consideration
true
under the mirror image rule, an acceptance must exactly match the offer to create a contract
true
under the natural law theory of jurisprudence, an unjust law is no law at all
true
voir dire is the process of screening prospective jurors
true
when 2 parties make an integrated contract neither one may use parol evidence to contradict, vary, or add to its terms
true
South Carolina enacts a statute to impose a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this to be
unconstitutional under the due process clause
Jill lies to her family. According to legal and ethical principles, this is
unethical
payments by representatives of western technology Inc. to government officials in exchange for favorable business contracts in foreign countries are considered
unethical in the US & illegal in the US
Curt promises to buy illegal copies of CD's and DVD's from Donna, who promises to deliver on May 1. These promises are most likely
void
Chris, a minor, signs a contract to purchase alcoholic beverages for dine & drink, his parent's restaurant. The contract is
void as a matter of law
employment sources Inc, enters into a contract with Fred. If Fred is a minor, this contract is most likely
voidable
Ann is shopping in Beth's food store when a bottle of carbonated cola explodes, injuring Ann. She files a suit against the bottler, from whom she can recover only if she can show that she
was injured due to a defect in the product
