BLAW 3201 Chapter 15, Business Law 3201 Ch 16, Business Law 3201 Ch 17, BLAW Final - Ch. 18

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B

A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is: a. false. b. true, because of statutes of limitation. c. true, because of the law of repudiation. d. true, because of covenants not to sue.

D

A power of avoidance held by a party may be lost if: a. the contract is affirmed. b. there are unreasonable delays in exercising the power. c. the rights of third parties intervene. d. All of the above.

C

A small damage amount fixed without regard to the amount of loss is known as: a. reliance damages. b. out-of-pocket damages. c. nominal damages. d. incidental damages.

D

A warrant is required for a search by the police except where: a. the police are in hot pursuit of a criminal. b. voluntary consent is given to the search. c. evidence of a crime is in plain view of the police officer. d. All of the above.

A

A(n) ____ is a contract between a promisee and a promisor by which the promisee agrees to accept and the promisor agrees to render a substituted performance in satisfaction of an existing contractual duty. a. accord b. mutual rescission c. material alteration d. novation

D

A(n) ____ is an intended beneficiary of a contract who receives the benefits of the contract as a gift. a. incidental beneficiary b. intended beneficiary c. Assignor d. donee beneficiary

B

An employer directs his vice-president of marketing to fix prices with their company's competitors. The employee does so. a. Only the employee is liable under these facts. b. Both the employee and the employer are liable under these facts. c. Only the employer is liable under these facts. d. Neither the employee nor the employer is liable under these facts.

B

Anita owes Brad $75,000. Brad signs a written statement granting Carla a gratuitous assignment of his rights from Anita. Brad dies prior to delivering the statement to Carla. a. Brad's death has no effect on the assignment. b. The assignment is terminated upon Brad's death. c. The signing of the statement makes the assignment irrevocable. d. The assignment is invalid because it is gratuitous.

A

Anita tells Bob that unless Bob pays her $5,000, she will tell his customers that he was once arrested for shoplifting as a teenager. The fact that Bob shoplifted as a teenager is true. a. In most jurisdictions Anita has committed the crime of extortion. b. Anita has committed no crime since Bob actually did shoplift as a teenager. c. Anita has committed the crime of bribery. d. In all jurisdictions in the United States, Anita would have to have received the money from Bob to be charged with a crime.

D

Anita, who is a tailor, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. Bryan is honest in his dissatisfaction, but he is unreasonable. a. Bryan must pay for the suit even if he is dissatisfied. b. This is an illusory contract, because only Anita is bound. c. Bryan's approval is an objective standard. d. Anita has no recourse against Bryan, because she agreed to the subjective standard.

B

Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter, Sue, as a graduation present. In this contract, Sue is: a. an incidental beneficiary. b. a donee beneficiary. c. a creditor beneficiary. d. an assignor.

A

Another name for an indictment is a(n): a. true bill. b. arraignment. c. information. d. preliminary hearing.

B

Arnold and Doug make a contract for Arnold to manufacture five leather chairs of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. The chairs are available from other sources. a. Arnold must supply the chairs, even if he must buy them elsewhere. b. Arnold's duty to deliver the chairs is discharged by the destruction of the factory. c. Arnold has materially breached the contract if he fails to deliver the chairs. d. Both (a) and (c).

C

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year. a. Parol evidence cannot be used to explain the term, because the plain meaning of a "year" is 12 months. b. Parol evidence cannot be used to explain the term, because it is an integrated document. c. The term "year" in the contract is ambiguous, and the parties can bring in parol evidence to clarify their intent. d. Parol evidence cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

B

A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks $1,200 for a 2003 V-6 motor provided that Phelps' Garage approves the quality of the motor." This provision: a. makes the contract unenforceable since Walter's promise is illusory. b. creates an express condition which must be met before Walter's duty to pay arises. c. cannot create an express condition because it lacks the necessary words "on condition that." d. cannot be valid since it makes Walter's duty to pay dependent upon the opinion of a third party.

C

A contractor and Buckingham, Inc. have a contract, which calls for the contractor to build a building with the completion of it by June 15. If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages. The $100 per day is: a. punitive damages. b. nominal damages. c. liquidated damages. d. an illegal penalty.

C

A crime that is punishable by a fine or imprisonment in a local jail is a: a. felony. b. white-collar crime. c. misdemeanor. d. mala prohibita crime only.

C

A defendant who is indicted will next be: a. brought before a grand jury. b. tried. c. arraigned. d. fined.

D

A gratuitous assignment is rendered irrevocable if, prior to the attempted revocation, the assignee: a. receives payment of the claim from the obligor. b. obtains a judgment against the obligor. c. Neither of the above. A gratuitous assignment is always revocable. d. Both (a) and (b).

B

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100? a. No, because there is no consideration for the extra 100 shirts b. No, because Barry does not have a writing signed by Champs Tee Shirts c. Yes, because this is a subsequent modification of the original contract d. Yes, because Champs Tee Shirts is a merchant within the meaning of Article 2 of the UCC

A

Bartow signed a contract to coach baseball for Washington High for a period of three years. After two years he is offered and accepts an assistant coach position at State University. Contract law will not allow Washington High to ask for: a. specific performance. b. payment of compensatory damages. c. an injunction. d. liquidated damages.

D

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n): a. accord. b. novation. c. rescission. d. satisfaction.

B

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly. a. The order acceptance form fails to meet the writing requirement in the UCC, because it isn't signed. b. Blevins can enforce the contract for 300 widgets, but not for 400 widgets. c. If Blevins signs and returns the form, it will be able to sue for the extra 100 widgets later. d. The contract is enforceable for 400 widgets, because it has been partially performed.

C

Mark carefully plots a course of action to embezzle $100,000 from his employer, Sue. He is fired before he ever gets a chance to put the plan in action. In cleaning out his desk, Sue finds his plans. Mark is: a. guilty of a crime because he intended to carry it out. b. guilty of a crime because he had mens rea. c. not guilty because he did not act on his plan. d. not guilty because he is no longer employed by Sue.

A

Mary goes to a stockbroker, purchases 50 shares of a certain stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's Day gift, Warren becomes a(n): a. donee beneficiary. b. transferee. c. delegatee. d. assignee.

B

Meg has contracted to paint a portrait of Julio, but dies before completing the portrait. Which of the following is correct? a. Meg's executor must find a capable artist to complete the work to Julio's satisfaction. b. Meg's contractual duty is discharged due to objective impossibility. c. A novation must be entered between Julio and a third person in order to discharge Meg's duty under the contract. d. Meg's contractual duty is discharged due to subjective impossibility.

C

Miller has a contract to sell 1,000 bushels of wheat to a bakery. The wheat is stored in a grain elevator and has become infested with insects. What is the consequence? a. Miller is discharged from performance because of impossibility. b. Miller is discharged because of frustration. c. Miller is not discharged, but must substitute wheat or pay damages to the bakery for breach of contract. d. Miller is discharged if he can prove that he did not cause the damages to his wheat.

C

Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000. Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000. Jefferson is seeking: a. restitution. b. punitive damages. c. specific performance. d. valid tender.

E

Most states have statutes requiring which of the following contracts to be evidenced by a writing to be enforceable? a. Contracts to make wills. b. Contracts for the sale of securities. c. Contracts for the sale of personal property for more than $5,000. d. Contracts creating certain types of security interests. e. All of the above.

A

Mr. Homayer hired Blake Painters to paint his house. Blake decides it has too many jobs and delegates the duties to the Andrews Company. Andrews does a poor job, and drips paint on the Homayers' flowers and windows. a. Mr. Homayer can sue both Blake and Andrews. b. Mr. Homayer can sue Blake, but he cannot sue Andrews. c. Mr. Homayer can sue Andrews, but he cannot sue Blake. d. Mr. Homayer cannot sue, because he has accepted the benefits of the assignment.

C

Noel and Lyle have a contract whereby Noel is to perform routine construction services according to the blueprints that Lyle has provided. Noel assigns the contract to David. As a result of this assignment: a. Lyle can bring suit based upon detrimental reliance. b. Noel has no more rights or responsibilities with regard to the contract. c. Noel no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform. d. Noel has all of his rights under the contract, but he has no responsibility for the performance of the duties.

D

Odessa owes Kevin $2,000. On July 1, Kevin assigns the right to the $2,000 to Troy. Thereafter, on July 15, Kevin assigns the same right to Donna, who in good faith gives value for it and knows nothing about the first assignee. a. Troy has the right to the payment of $2,000. b. Donna has the right to the $2,000. c. Neither Troy nor Donna can claim the $2,000. d. The rule differs in different states. Depending on which rule a state follows, the answer will vary.

C

On March 1, Sara, a student, received a telephone call from ComputerChip, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Sara ask for a letter confirming the telephone conversation if she accepts the offer immediately? a. Yes, because the job offer is a collateral promise b. Yes, because the job offer is covered by the parol evidence rule c. Yes, because the job offer is for longer than one year from March 1 d. No, because the job offer is for one year from June 15

B

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is a(n): a. material alteration. b. anticipatory repudiation. c. nonmaterial breach since the statement is made before December 31. d. accord.

D

Restitution is available when: a. Elizabeth agrees to sell an acre of land to Vanessa, and after Vanessa makes a partial payment Elizabeth wrongfully refuses to transfer title. b. Lawrence makes an oral contract to provide physical training for Lee for fourteen months and Lee discharges Lawrence after six months. c. Gilbert uses undue influence to induce Cynthia to sell him an antique chair for $10. d. Restitution is available in all of the above cases.

Hochster V. De la Tour

Guy hires another guy to be his tour guide in Europe, but cancels on him. As a result of that, he gets sued. The court sides with the tour guide Subject: Anticipatory Breach

D

In determining the meaning of a contract under the UCC, which of the following will have first priority? a. Course of performance b. Course of dealing c. Usage of trade d. Express terms

A

In states that have adopted it, the UETA: a. encourages and gives full effect to electronic contracts. b. gives full effect to emergency transactions. c. supplements and covers all of the UCC. d. covers wills, codicils, and testamentary trusts.

B

In the case of Hadley v. Baxendale, the plaintiff was seeking damages for: a. restitution. b. lost profits. c. failure to convey land. d. failure to specifically perform a contract.

D

In which of the following situations will a court grant specific performance? a. In a case involving breach of contract for the sale of real property. b. In contracts for personal services. c. Where goods are unique or rare. d. Both (a) and (c).

D

Individuals may use reasonable force to protect themselves, their property, and other individuals. In this context, reasonable force would mean: a. deadly force is reasonable to protect property. b. deadly force is never reasonable to protect property. c. deadly force is reasonable if an attack threatens the victim with serious bodily harm. d. Both (b) and (c).

D

Robbery can be "aggravated robbery" under which of the following circumstances? a. The robber intends to kill if faced with resistance. b. Serious bodily injury to the victim occurs. c. The crime is committed by two persons rather than one person. d. All of the above. e. None of the above.

D

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will benefit from this contract since his restaurant is adjacent to the planned mall. Donner in this instance is a(n): a. implied beneficiary. b. partial beneficiary. c. donee beneficiary. d. incidental beneficiary.

A

Cybercrime: a. may be categorized based on whether the computer was the instrument or the target of the crime. b. has not been regulated by state laws. c. has been controlled by comprehensive federal legislation. d. is easy to detect.

D

E-Sign: a. preempts the Uniform Electronic Transactions Act. b. requires persons to agree to use or accept electronic records or electronic signatures, provided they are informed of the types of hardware and software required and they have the required equipment. c. defines the included transactions narrowly. d. ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

A

The Code greatly alters the common law doctrine of material breach by adopting what is known as the: a. perfect tender rule. b. anticipatory repudiation rule. c. prevention of performance rule. d. discharge by operation of rule law.

D

Equitable remedies will not be granted where: a. the terms of the contract are fair. b. the consideration is adequate. c. the terms of the contract are sufficiently certain. d. the contract is tainted with fraud, duress, undue influence, mistake, or unfair practices.

D

Garrett ordered 100 pieces of 2 × 6 lumber from his supplier and paid upon delivery. Later, when he unpacked the lumber, he discovered that the supplier had delivered 2 × 4 lumber. After being notified, the supplier picked up the lumber, apologized, and gave Garrett his money back. The response the supplier made to rectify the breach is: a. an injunction. b. mitigation. c. liquidation of damages. d. None of the above

C

The parol evidence rule does not apply to: a. a typographical error that obviously does not represent the agreement of the parties. b. evidence showing one of the parties to the contract lacks contractual capacity. c. The parol evidence rule does not apply to either (a) or (b). d. The parol evidence rule applies to both (a) and (b).

A

The party to whom a contractual duty of performance is owed is known as the: a. obligee. b. obligor. c. assignee. d. assignor.

D

The privilege against self-incrimination extends to which of the following? a. Providing a handwriting sample. b. Appearing in a line-up for identification purposes. c. Taking a blood test after an accident. d. None of the above are protected by the privilege against self-incrimination.

B

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is: a. injunction. b. reformation. c. specific performance. d. rescission.

B

The return to the aggrieved party of the consideration, or its value, which he gave to the other party is: a. injunction. b. restitution. c. specific performance. d. reformation.

C

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affecting interstate or foreign commerce is the: a. UETA. b. UCC, Article 2E. c. Electronic Signatures in Global and National Commerce Act. d. Interstate and Foreign Commerce Electronic Transactions Act.

Northern Crop. V. Chugach Electrical Association

The trucking company is hired to transport these rocks in Alaska. They keep trying to drive the trucks over a frozen lake, but the trucks keep falling in. They try it on the roads, but it cant work out so they say they cannot complete the contract. It goes to court and the court rules that the contract was impossible Subject: Impossibility

D

The usual remedy for breach of contract is: a. Injunction b. Specific performance c. Punitive damages d. Money damages

B

The voluntary transfer of a contractual right to a third party is known as a(n): a. implied warranty. b. assignment. c. delegation. d. novation.

Rights that are not assignable: Personal Rights: In Re Magness [Reiser v. Dayton Country Club] (Ch. 16)

There is an exclusive golf membership.There are many rules and procedures to qualify people to be allowed to be part of the golf membership.Two of the members of this club have financial problems, and they file for bankruptcy.The country club says that this is not an assignable contract and even if it is, it is a person contract.It is not just about playing golf but cultivating personal relationships.Therefore, it is not subject to assignment. Appeals affirmed the bankruptcy court's original statement of an anti-assignment clause.

D

Theresa has a contract to teach eighth grade at Washington Middle School. She decided she could make more money writing a book, so she assigns her teaching contract to her friend, Stephanie, who is also a licensed teacher. a. The duties under the teaching contract are nondelegable. b. The duties which Theresa has attempted to delegate are personal in nature. c. If the school district agrees to accept Stephanie's services, a novation would occur, which would relieve Theresa of her obligation to the school district. d. All of the above are correct.

B

Two boys held up a liquor store at gunpoint and ran off with a bag of money. The police saw them run into Jill's apartment building where there are only four apartments off a common hall and no apparent way out of the building but the front door. The police knock on Jill's door. She says she's the only one there. The police can: a. search the apartment without a warrant because Jill voluntarily answered the door. b. search the apartment without a warrant because they are in hot pursuit of the fugitive. c. not search the apartment, because they have no reason to believe that the boys are in Jill's apartment rather than in the others. d. not search the apartment, because voluntary consent to enter is necessary.

A

Under RICO, a ____ is any of several criminal offenses such as murder, kidnapping, arson, extortion, and drug dealing. a. predicate act b. liable act c. white-collar crime d. mala in se act

B

Under Section 2-210 of the Code, unless circumstances indicate to the contrary, a contract that prohibits an assignment: a. prohibits both an assignment of rights and a delegation of duties under the contract. b. prohibits only a delegation of the delegator's duty of performance and not the assignment of rights. c. renders any subsequent assignment ineffective. d. Both (a) and (c).

B

Under the UCC statute of frauds, which of the following terms must be included in a writing in order to satisfy the writing requirement? a. The price of the goods b. The quantity of the goods c. The signatures and names of the buyer and the seller d. The time and place for delivery

C

Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have accepted successive tenders of performance by the other party without objection. a. course of dealing b. usage of trade c. course of performance d. integrated document

B

Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place or vocation or trade. a. course of dealing b. usage of trade c. course of performance d. integrated document

A

Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract. a. course of dealing b. usage of trade c. course of performance d. integrated document

C

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement? a. Prior oral or written agreements b. Contemporaneous oral or written agreements c. Subsequent oral or written agreements modifying the original agreement d. Both (a) and (b).

B

Unless one of the parties contractually assumes the risk, the ____ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible. a. bankruptcy law b. frustration of purpose doctrine c. perfect tender rule d. subjective impossibility doctrine

A

Vladimir entered into a contract to buy Daniel's collection of rare stamps. Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the following remedies available to Vladimir? a. Restitution: Yes; Specific Performance: Yes b. Restitution: Yes; Specific Performance: No c. Restitution: No; Specific Performance: Yes d. Restitution: No; Specific Performance: No

B

What Article of the UCC governs sales of goods? a. 1 b. 2 c. 3 d. None of the above.

A

What happens if the police illegally seize evidence in violation of the Fourth Amendment? a. The evidence will be excluded from use at trial. b. The defendant's arrest is nullified. c. The defendant is entitled to another trial. d. The defendant will be paid for the expenses of his defense.

C

What is another name for the main purpose doctrine? a. The collateral promise rule b. The possibility test c. The leading object rule d. The suretyship provision

A

What principle was involved in the Weeks v. United States case? a. The exclusionary rule b. Double jeopardy c. Probable cause d. Vicarious liability

C

When an injured party is required to elect remedies, which of the following would be mutually exclusive? a. Restitution and liquidated damages b. Specific performance and compensation for incidental damages c. Specific performance and restitution d. Incidental and consequential damages

A

When contract terms prohibiting the assignment of rights exist, most courts will: a. strictly construe them. b. interpret a general term prohibiting assignments as rendering any assignment ineffective. c. award the obligor no right to damages for breach of a general term prohibiting assignments. d. All of the above.

C

Which of the following involves an invalid assignment that a court would not enforce? a. An assignment of a savings account accompanied by the delivery of the passbook b. An assignment lacking consideration c. An assignment of an automobile liability insurance policy accompanied by the delivery of the policy d. An assignment in writing signed by the assignor and delivered to the assignee

B

Which of the following is NOT true concerning the requirements for an effective assignment? a. The assignment must be voluntary. b. Consideration is required. c. There must be an intention to make the assignee the owner of the right. d. The assignment may be either written or oral.

B

Which of the following is a contract with a condition subsequent? a. Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank. b. Roger bought a VCR, but he may return the VCR within ten days and get all of his money back. c. Both (a) and (b) are examples of a condition subsequent. d. Neither (a) nor (b) is an example of a condition subsequent.

B

Which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. A collateral promise made to the creditor b. A promise, the leading object of which is to obtain an economic benefit for oneself c. A collateral promise where there are three parties and two contracts involved d. A promise by an executor to pay the debts of the decedent from the executor's own funds

B

Which of the following is correct with regard to successive assignments of the same right? a. It is impossible for an assignor to assign the same right more than once. b. In England, the first assignee to notify the obligor prevails. c. The Restatement does not recognize the validity of any successive assignments. d. All of the above are correct.

D

Which of the following is correct with respect to RICO? a. It subjects to penalties enterprises that engage in a pattern of racketeering, defined as the commission of two or more specified state or federal criminal offenses within a period of ten years. b. It was enacted with the stated purpose of terminating the infiltration of organized crime into legitimate businesses. c. It provides for both civil and criminal penalties for violators. d. All of the above are correct.

C

Which of the following is correct with respect to a grand jury? a. The grand jury decides guilt or innocence of the defendant. b. The grand jury always hears testimony from the defendant. c. The grand jury can issue an indictment if it finds sufficient evidence to justify a trial on the charges alleged. d. None of the above.

D

Which of the following is correct with respect to election of remedies? a. The Code rejects any doctrine of election of remedies; its remedies are cumulative. b. The remedy of specific performance is inconsistent with that of restitution. c. A person who seeks an injunction may also seek incidental damages for the breach. d. All of the above are correct.

D

Which of the following is found in the Eighth Amendment to the U.S. Constitution? a. Protection from excessive bail b. A prohibition against double jeopardy c. A prohibition against cruel and unusual punishment d. Both (a) and (c) above.

A

Which of the following is found in the Fifth Amendment to the U.S. Constitution? a. A privilege against self-incrimination b. A requirement of probable cause c. A prohibition against cruel or unusual punishment d. The right to an attorney

B

Which of the following is untrue with regard to the interpretation of contracts? a. Express terms prevail over course of performance, and course of performance prevails over course of dealing. b. Technical terms will always be given technical meaning even where a different intent is manifested by the parties. c. Handwritten or typed terms are given greater weight than preprinted terms. d. All writings that are part of the same transaction are interpreted together.

B

Which of the following is/are correct with regard to conditions subsequent? a. Conditions subsequent are quite common in contracts. b. A "sale or return" contract is an example of a contract with a condition subsequent. c. A condition subsequent must occur before performance is due under a contract. d. All of the above are correct.

C

Which of the following need NOT be contained in a memorandum, which satisfies the general statute of frauds writing requirement? a. The names of the parties to the contract b. The signature of the party being sued c. The signature of the party suing d. The subject matter and essential terms of the unperformed promises

D

Which of the following promises does not have to be evidenced by writing in order to be enforceable? a. Jones' agreement with Smith to sell his condominium for $100,000 b. Stewart's promise to work for Austin for a two-year period c. Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay d. Mindy's agreement with Susan to buy her bike for $400

C

Which of the following promises in consideration of marriage would be outside the statute of frauds? a. In consideration of Joan's promising to marry him, a man promises to pay her an allowance and to give her all of his property upon his death. b. John and Mary mutually agree that their marriage shall not affect the existing property rights of the other. c. John and Joan mutually promise to marry each other in a formal ceremony on June 23. d. Joan promises to release a money judgment against Steven in consideration of his marrying her.

D

Which of the following would NOT meet the signature requirement for a writing to satisfy the statute of frauds? a. A typewritten name b. Handwritten initials c. A printed name d. All of the above meet the signature requirement.

D

Which of the following would NOT require a writing under the statute of frauds? a. Where the buyer of a five-acre lot pays the $40,000 purchase price, thus fully performing his obligation b. Where a renter agrees to rent a building for a 5-year period c. Where a contractor enters into an agreement for an easement across adjoining land to run cables d. Where a landscaper agrees to landscape the lot surrounding an office building

A

Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2007, and that it is an integrated document. a. A letter dated July 9, 2007, reciting agreement to new delivery terms b. A chart showing the dates for delivery written on August 16, 2006 c. A copy of two letters while the parties were in the negotiation stage of their contract which showed agreement to a term not included in the June 1, 2007 contract d. A copy of common carrier rules on the duty of delivery persons for uncrating merchandise, which is dated December 1, 2003

D

Which of the following would be considered a material breach of a contract? a. Partial performance that omits some essential part of the contract. b. Delivery of 50 chairs in a contract that calls for 100 chairs. c. An intentional breach of the contract. d. All of the above would be material breaches. e. Only (a) and (b) above would be material breaches.

D

Which of the following would not be subject to the writing requirements of Article 2 of the UCC? a. An unborn puppy whose mother is an AKC champion b. Trees that will be cut from a ten-acre tree farm c. Food served in the banquet room of a Florida resort d. Medical care received in a hospital

C

Which one of the following is NOT true of a criminal suit? a. A criminal suit is brought by the government, not by an individual. b. In a criminal suit, guilt is never presumed. c. A criminal suit often results in repayment to the victim. d. A criminal suit requires a higher burden of proof than a civil suit.

A

William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is: a. an express condition. b. an implied-in-fact condition. c. an implied-in-law condition. d. a condition subsequent.

C

XYZ, Inc. has been convicted of bribing public officials. It is now time for sentencing. Possible sentences include: a. putting the corporation's president, who was not involved in the bribery, in jail. b. putting the corporate shareholders in jail. c. fining the corporation. d. None of the above. A corporation cannot commit a crime.

D

A(n) ____ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee. a. Assignment b. Delegation c. partial assignment d. Novation

C

A(n) ____ is a substituted contract that involves an agreement among three parties to substitute a new promisee in place of an existing promisee, or to replace an existing promisor with a new one. a. accord b. satisfaction c. novation d. mutual rescission

A

A(n) ____ is a third party who obtains possible benefits but no rights under a contract. a. incidental beneficiary b. intended beneficiary c. Assignor d. donee beneficiary

A

Anita owes Brad $75,000. Brad signs a written statement granting Glen a gratuitous assignment of his rights from Anita. Brad delivers the signed statement to Glen before Brad dies. a. The delivery of the statement makes the assignment irrevocable. b. The assignment is terminated upon Brad's death. c. The signing of the statement makes the assignment irrevocable. d. The assignment is invalid, because it is revocable.

A

At common law, ____ was defined as a breaking and entering of a dwelling house at night with the intent to commit a felony. a. burglary b. bribery c. robbery d. theft

B

At the ____ the accused is informed of the charge and the accused enters a plea. a. preliminary hearing b. arraignment c. indictment d. information

C

Barbara owes Arturo $2,000. On July 1, Arturo assigns the debt to Charles. Thereafter on July 15, Arturo assigns the same right to Dennis, who in good faith gives value for it and knows nothing about the first assignee. Dennis immediately notifies Barbara of the assignment. a. Under all of the rules, Charles has priority since he was the first assignee in time. b. Under the majority rule, Dennis has priority. c. Under the English Rule, Dennis has priority. d. Under the English Rule, Charles has priority.

A

Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less. Margaret agrees to buy it for $5,500. It is worth $2,500. In a state that uses the "benefit-of-the-bargain" rule, Margaret's damage award would be: a. $3,500. b. $3,000. c. $500. d. $2,500.

D

Betty owes Agatha $1,000. On March 1 Agatha, for value, assigned the debt to Clara. Thereafter, on March 30 Agatha assigned the same right to Diane. a. Under the American rule, Clara will prevail over Diane. b. Under the English rule, the first assignee to notify Betty will prevail. c. Under the Restatement rule, the first assignee to notify Betty will prevail. d. Both (a) and (b) are correct.

A

Bill has a right against Heather and assigns it for $100 to Dan. Later, Bill grants Heather a release. Bill: a. is liable to Dan for damages because he breached an implied warranty. b. has no liability to Dan because he did not expressly warrant that he would not impair the assignment. c. has no liability to Dan because the only implied warranty he made was that the assigned right actually existed at the time of the assignment. d. was acting contrary to public policy by assigning a contractual right for money.

C

Bill is the accountant for Cheatam and Sons Co. For many years he has kept two sets of books, one with real figures and another with figures he uses when the IRS audits. When Bill, while working on Cheatam's books, is arrested for fraud, what will happen to the books? a. They are privileged communications and therefore inadmissible as evidence against Bill. b. They are protected by the Fifth Amendment and therefore are inadmissible. c. They may be admitted as evidence since the Fifth Amendment does not protect business records. d. They may be admitted as evidence only if Bill consented to a search of his offices.

B

Bill wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $10.00 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n): a. incidental beneficiary. b. creditor beneficiary. c. donee beneficiary. d. assignee.

D

Brice owns a parcel of land that is encumbered by a mortgage held by the First National Bank. Brice agrees to sell the land to Paul for $50,000. Brice and Paul together go to the First National Bank to discuss the sale and purchase with the banker. Brice, Paul, and the banker sign an agreement stating that Paul will assume the mortgage and that Brice will be discharged from all further liability on the mortgage. a. The bank is a third party donee beneficiary. b. The bank can collect from Brice if Paul defaults. c. Brice is a third party beneficiary of the agreement between Paul and the bank. d. The agreement among the three is a novation.

B

Busby contracts to build a house for Connell. Busby finishes approximately half of the house and quits. Connell files suit against Busby. Which remedy is not available to her? a. Compensatory damages b. Specific performance c. Special damages d. Incidental damages

B

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order: a. nominal damages. b. specific performance. c. restitution. d. equitable rescission.

B

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct? a. Wyandott can hold Chris to the order. b. Chris can hold Wyandott to the order. c. Neither party is bound, because there is no signed writing. d. Chris is bound if he makes no objection within 10 days.

C

Courts will enforce contracts for the benefit of all but which of the following? a. Donee beneficiaries b. Creditor beneficiaries c. Incidental beneficiaries d. Intended beneficiaries

D

In which of the following situations is restitution available as a remedy? a. As an alternative remedy for a party injured by breach b. For a party in default c. For a party who may not enforce the contract because of the statute of frauds d. All of the above are situations where restitution is available.

E

Notice of an assignment: a. must be given to the obligor. b. cuts off any defenses based on subsequent agreements between the obligor and assignor. c. precludes subsequent setoffs and counterclaims of the obligor that arise out of entirely separate matters. d. All of the above. e. Only (b) and (c).

Intended Beneficiary: Stine v. Stewart (Ch. 16)

When a married couple acquires a home, the home is owed 50/50.Mary Stine (plaintiff) loaned her daughter and then-son-in-law $100,000.She got a promissory note.It was payable on demand.Eventually her daughter and her husband paid $50,000.Then, they got a divorce - They divided up marital property.Son-in-law would have ownership of the house, but if he would ever sell the house, the mother-in-law would receive the net proceeds.Son-in-law sells the house and the net proceeds was $6,000.He fails to pay the mother-in-law.The Supreme Court of Texas pointed to the contract and said clearly William and his ex-wife contemplated benefiting this woman.They owed her $50,000 and they make reference to the note.The agreement was that if he ever sells the house, he has to pay half of the debt and give up the net proceeds.The son-in-law is trying to say that it was an incidental benefit. Mary Stine won because she was an intended creditor beneficiary (she was owed money.)

A

Contract damages that put the injured party in as good a position as if the other party had performed are: a. compensatory damages. b. incidental damages. c. consequential damages. d. liquidated damages.

C

Conditions may be classified: a. by how they are imposed. b. by when they affect a duty of performance. c. Both (a) and (b); they are not mutually exclusive. d. Neither (a) nor (b).

B

E-Sign provides consumers must: a. evidence their consent on paper to conducting transactions with electronic records after being informed of the types of hardware and software required. b. receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records. c. receive a "clear and conspicuous" statement informing them of their right to have the record provided only in electronic form. d. All of the above.

C

Damages for reliance include expenses for: a. lost profits. b. injury to the person. c. preparing to perform. d. punishment of the breaching party.

A

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward. An appropriate remedy for Edward to seek would be: a. injunction. b. liquidated damages. c. reformation. d. punitive damages.

Mackay v. Four Rivers Packing CO.

Defendant Four Rivers Packing Company operated an onion packing plant and hired Plaintiff Stuart Mackay as the company's "field man." Plaintiff had been in the onion business for decades and knew many onion farmers. Four Rivers through its general manager Randy Smith (Smith) offered Plaintiff a job that involved purchasing enough onions to keep Four Rivers' packing shed stocked at a price that Smith would set. Plaintiff contended that Smith offered him a long-term employment contract. From 2000 to 2002, financial and managerial setbacks made it difficult for Four Rivers to operate its business, and for Plaintiff to acquire onions at prices set by Smith in order to keep the sheds stocked. In 2003, Four Rivers laid Plaintiff off. Plaintiff filed suit in 2004 alleging breach of the employment contract. At trial following a remand, Four Rivers contended that the parties had not entered into an employment contract for any specified term. A jury would return a verdict in favor of Plaintiff. In a special verdict form, the jury found that the parties had entered into a long term contract of "up to ten years, or such time as the Plaintiff retired." Four Rivers timely appealed, challenging jury instructions given at trial and the sufficiency of the evidence. Upon review of the trial record, the Supreme Court found that the trial court properly instructed the jury and that the evidence presented was sufficient to support the verdict. The Court affirmed the trial court's judgment against Four Rivers. Believe Mackay's allegation that the contract was to last until retirement. Since Mackay COULD HAVE retired WITHIN ONE YEAR, this contract is OUTSIDE IDAHO'S STATUTE OF FRAUDS provision.

Rosewood Care Center, Inc. v. Caterpillar, Inc.

Facts: On January 3, 2002 Caterpillar contacted HSM Management Services. They are the management service for Rosewood and a skilled nursing facility. Caterpillar wanted Rosewood to admit Cook on a fixed rate basis. Rosewood denied. Caterpillar's employee in charge of medical care then told HSM that Cook must be admitted to Rosewood. The cost would be covered one hundred percent by Caterpillar and to just send the bill. HSM then faxed a letter to Rosewood confirming their conversation and they both parties signed the contract. Caterpillar, continued to orally "authorize" care for Cook. In the end, they ultimately refused to pay for services rendered to Cook. Issue:A complaint was filed and Caterpillar moved to dismiss the breach of contract count.The trial court granted Caterpillar's motion to dismiss the breach of contract and thus barred Rosewood's claims. Ruling: The appellate court reversed and remanded

C

Fred contracts to sell a certain tract of land to Maria for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price. a. The payment of the $20,000 and the delivery of the deed are independent of each other. b. The delivery of the deed is a condition subsequent to the payment of the $20,000. c. The payment of the $20,000 and the delivery of the deed are mutually dependent and, in the absence of an agreement to the contrary, are concurrent conditions. d. The payment of the $20,000 is a condition precedent to the delivery of the deed.

D

Harry said to Marge, "I have a ring once owned by Marilyn Monroe. Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at a local department store. Marge enjoys wearing the ring and wears it constantly for twelve months. Finally, she goes to Harry and says, "Here is the ring you lied about. Give me my $500." Most likely: a. Marge will get her money back since Harry's representation was fraudulent. b. Marge will not get her money back since she should have investigated the facts about the ring more carefully. c. Marge will get her money back since she is a good faith purchaser of merchandise. d. Marge will not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm.

A

Henry hires Ace Roofing to put a new roof on his house. When Ace comes, Henry refuses to let them on the roof, saying that he has a headache and doesn't want to listen to pounding. The next day, Henry still has a headache and he refuses to allow them on the roof. The day after, the baby is sleeping and Henry refuses to allow them to work. After four weeks of this, Ace: a. may be discharged, but Henry is not. b. may be discharged, and so would Henry. c. can sue for damages, but must perform when Henry is ready. d. has no choice but to keep coming back each day until Henry is ready.

B

Howard needs a truck to pull a 2,000-pound trailer. Gordon tells Howard, "My truck will pull a 2,000-pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer. If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can recover: a. punitive damages, but not out-of-pocket damages. b. out-of-pocket and consequential damages, but not punitive damages. c. out-of-pocket damages plus punitive damages. d. nominal damages, because Howard should have known the capacity of the truck.

A

If Jana, a minor, transfers property to Scott and Scott sells the property to a good faith purchaser for value before Jana avoids the transfer: a. Jana loses the right to recover the property if the transfer involved goods. b. Jana can recover the property as long as the property was a sale of goods. c. Jana can recover the property whether it was real or personal property. d. the good faith purchaser of goods for value receives a voidable title.

A

If Steve, wanting to protect his warehouse, closes two pit bulldogs inside and they attack and kill an intruder, Steve would be found to have: a. subjective fault. b. objective fault. c. liability without fault. d. no fault, as he was merely protecting his property.

C

Janice contracts to sell a certain tract of land to Anthony for $5,000, but the contract does not state a time for delivery of the deed and payment of the price. In this situation: a. the contract will be considered void for lack of essential terms. b. the law will imply that the respective performances are independent of each other and may occur whenever "reasonable under the circumstances." c. courts will treat the promises to deliver the deed and to pay the $5,000 as mutually dependent. Anthony's duty to pay is conditioned upon Janice's delivery of the deed and Janice's duty to deliver the deed is conditioned upon Anthony's payment or tender of $5,000 to Janice. d. Janice's duty to deliver the deed and Anthony's duty to pay the $5,000 are "implied-in-fact" conditions.

D

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. a. Because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation. b. Kevin has anticipatorily repudiated the contract and is liable to Jim for damages. c. Jim is discharged from his duty to serve as guide, and he may bring suit immediately against Kevin. d. Both (b) and (c) above are correct.

Kalas v. Cook

Long-standing oral agreement that print shop manufactured and delivered written materials designed by the buyer for the buyer's use and sale. After buyer's death, executor of estate refused to pay for the last deliveries of the materials to the buyer.Does statute of frauds bar enforcement of the oral agreement?Kalas, owner of print shop, filed complaint against defendant, Cook, executor of the estate of the Buyer.Trial court said the transaction was a sale of goods. Court rendered judgment in favor of plaintiff in amount of $24,599.38. Defendant appealed.In 1997, Kalas was told she would have to vacate the property by the end of the calendar year. She closed her business. Kalas and Simmons agreed that the materials would be delivered on an accelerated basis.Simmons died and plaintiff submitted claim against the estate. ***On appeal, the defendant (Cook) argues that the oral contract was invalid because writing was required by UCC Oral agreements for sale of goods over $500 are unenforceable. However, it's enforceable if the goods are "specially manufactured". The goods were specially manufactured. Appellate court concludes that it does fall under the exception for specially manufactured goods. Judgment of the court is affirmed

C

Losses due to computer crimes are estimated to be: a. minimal, as the federal government has passed comprehensive legislation prohibiting computer crime. b. in the millions of dollars. c. in the tens of billions of dollars. d. decreasing, as legislation and enforcement have been increasing.

A

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired. The rate would then be $3.50 per bushel. A freeze warning required Louis to hire 100 additional overtime workers, raising the cost per bushel to $4.75. Louis wants to get out of his contract. Can he? a. No, the parties expected the hardship and provided for it in their contract b. No, there is no hardship c. Yes, the contract is impracticable d. Yes, the freeze is a supervening event

A

Lynn, who is a tailor, agrees to sew a pair of drapes for Zach's living room. Zach promises to pay Lynn $300. Lynn completes the drapes using material selected by Zach, but Zach is not satisfied and refuses to pay for them. a. Whether Zach will have to pay for the drapes depends upon whether as a reasonable man he ought to be satisfied. b. The standard applied here is a subjective standard of satisfaction. c. The condition of satisfaction is an implied-in-law condition. d. The condition of satisfaction is an express condition.

B

Lynne agrees to buy Harriette's farm for $100,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm one month later for $90,000, she may: a. keep Lynne's $20,000. b. keep $10,000 of Lynne's down payment. c. not keep any of the down payment money. d. sue for specific performance.

C

Lynne is the intended beneficiary of a third-party contract. Her rights have vested. In an action by Lynne to enforce the promise, the promisor may assert the defense of: a. rescission. b. contractual modification. c. fraud. d. All of the above.

Estate of Jackson v. Devenyns

PAROL EVIDENCE: Contract couldn't be enforced over which part of land because the writing was insufficient.-property not described in the agreement. In February of 1993, George Jackson and his neighbors, the Devenyns, drafted and signed a document. This document stated that Jackson would sell 79 acres and machinery to the Devenyns for $120,000.00. The contract included several stipulations, details and instructions on the gradual sale of the property; for example, George wants to keep the one acre of land around his house intact. Jackson died a short time later, in May of 1993. Jacksons estate attorney refused the Devenyns request to honor the contract, and the Devenyns thusly petitioned for an order of conveyance. The estate contended that the property description didnt comply with the statute of frauds requirement that the document itself sufficiently describe the property to be conveyed.History: The Probate court ruled in favor of the defendant, Devenyns. Issue: Does the agreement sufficiently describe the property as required by the statute of frauds? Decision: No. The probate courts decision was reversed. Reasons: The property that is in the agreement was not described in the agreement, thus, it cannot be enforced. The legislative policy justifying the statute of frauds requires the courts to test what Jackson and the Devenyns put in the contract as a description. A description cannot be supplied by parol proof, so the probate court was wrong to accept that as a means of description. As a result, the contract is unenforceable

B

Paul is working as an undercover drug agent. He enrolls in classes at State University where he meets several students in business administration and invites them to come to his house for a party. No mention is made of any drugs, but he does say he will have a keg of beer. Shortly after his guests arrive, he gets out some marijuana and encourages the group to have some. All of them refuse, except Sam, who has never tried it before. When Sam lights up, Paul arrests him for possession of a controlled substance. a. Sam is clearly guilty as charged. b. Sam can raise the defense of entrapment, because Paul has enticed him to commit a crime he would not have done otherwise. c. Sam can raise the defense of duress. d. Sam can raise the Fourth Amendment to exclude the marijuana as evidence that has been illegally seized

C

Phil, the tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year. He completes all but the gift taxes. Under the substantial performance doctrine: a. Marge will not have to pay Phil. b. Marge will not have to accept the work. c. Marge will have to pay Phil for all but the gift taxes. d. Marge will have to pay Phil the contract price.

C

Professor Dought has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Professor Dought's mother is a(n): a. incidental beneficiary. b. creditor beneficiary. c. donee beneficiary. d. assignee.

A

Refusal of a tender of performance by one party to a bilateral contract will: a. be treated as a repudiation, excusing the tendering party from further duty of performance under the contract. b. not discharge either party from further duty of performance under the contract. c. be considered a condition subsequent. d. None of the above.

D

Requirements for a memorandum that satisfies the statute of frauds include that the writing: a. must be a single document. b. must not contain an attachment. c. needs to be notarized. d. None of the above.

Rights of the Assignee: Mountain Peaks Financial Services v. Roth-Steffen (Ch. 16)

Roth-Steffen borrowed money to go to law school.She borrowed from about 12 lenders for about $100,000.She borrowed $20,000 from a bank.She is in a loan consolidation settlement - Except for the one $20,000 loan - She has not been paying on this $20,000 loan.She gets a notice that this loan is on assignment.It gets passed from one to two different lenders, then lands in the hand of a collection agency - Mountain Peaks.When the contract was in the hands of the first bank, they had a defense in that contract that interrupted statutes of limitations for student loan companies, so you can never out-run them.She is arguing that the protection against the statute of limitations did not skip along to every bank/collection agency.She is wrong because when a contract is made, all of the benefits go to the assignee.Benefit - total limitations against 6-year statute of limitation

C

Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of the following would discharge Russell's obligations to pay under this contract? a. Marty leaves a one-foot strip of land barren. b. Marty doesn't begin work on the landscaping until after he finishes two other jobs. c. Marty doesn't plant any flowers, shrubs, or grasses. d. Russell isn't satisfied with Marty's design.

C

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct? a. The oral statement is enforceable because Paul is the administrator. b. An oral statement such as this is not enforceable because it is outside the statute of frauds. c. An oral statement such as this is not enforceable because this promise is within the statute of frauds. d. The oral statement is enforceable because it is a collateral promise.

D

Self-defense will NOT protect a person from criminal prosecution if she: a. shoots a man who is about to stab her with a knife. b. hits a man who is pushing her off the bus while it is still moving. c. shoots a man who is holding a realistic-looking cap pistol at her head. d. shoots a man who has shoplifted a rare, expensive diamond necklace from her store.

Silvestri V. Optus Software inc

Silvestri is fired from this company because he is doing a bad job. There us a clause in his employment contract allowing him to be fired for poor quality. The court rules in favor of the company, it is subjective and they can fire him Subject: Express Conditions- satisfaction

C

The Fourth Amendment to the Constitution: a. requires a speedy trial. b. prohibits double jeopardy. c. protects against unreasonable search and seizure. d. All of the above.

D

The Sarbanes-Oxley Act: a. establishes new criminal penalties as well as substantially increasing penalties for existing crimes. b. imposes fines and/or imprisonment of up to 20 years for knowingly altering, destroying, or falsifying any document with the intent of impeding a federal investigation. c. adds new financial disclosure requirements for corporations. d. All of the above. e. None of the above.

C

The ____ states that the federal government shall provide the accused with a speedy and public trial by an impartial jury. a. Fourth Amendment b. Fifth Amendment c. Sixth Amendment d. Eighth Amendment

B

The criminal intent necessary to commit a crime is known as: a. actus reus. b. mens rea. c. vicarious liability. d. malice aforethought.

C

The degrees of mental fault in criminal law include which of the following? a. Subjective fault, which involves negligence or carelessness b. Objective fault, which involves purposeful, knowing, or reckless conduct c. Liability without fault, where no requisite mental state or even knowledge of the act is required in some instances d. None of the above. e. All of the above

D

The improper taking of another's property by one in lawful possession of it, that violates a trust, is: a. robbery. b. theft. c. larceny. d. embezzlement.

Express Prohibition of Assignment: Aldana v. Colonial Palms (Ch. 16)

The landlord has a cupcake company coming in to lease the building.There is a clause that has an anti-assignment clause.The landlord applies for an $11,500 construction allowance.In order for the landlord to pay the tenant, the tenant has to do the work and complete it.The tenant runs out of money and approaches Robert Aldana.Robert gives the tenant $8,000 in exchange for an assignment.Robert wants to check to him, not the tenant.The assignee (Robert) has the right to the money, not the assignor (tenant).The landlord issues a check to the tenant once the construction is complete.Robert is suing the landlord for the money he is owed.The landlord wins at trial because there was an anti-assignment clause in the contract.The tenant did not assign the contract, they just allowed assignment of a monetary right not obligation or right.The assignment was not of the lease (which would have been prohibited), but only of the right of payment of the construction allowance.

C

The law governing assignments is found in Articles ____ and ____ of the Uniform Commercial Code (UCC), as well as the common law. a. 1 and 2 b. 2 and 4 c. 2 and 9 d. 3 and 4

A

The majority of states follow the ____ rule in awarding damages for fraud. a. benefit-of-the-bargain b. out-of-pocket c. liquidated d. restitution

Case 18-1 Election of Remedies / Punitive Damages / FraudMerritt v. Craig

Where: Court of Special Appeals of Maryland, 2000 Appellants/plaintiffs: Ben and Julie Merritt (buyers) Appellees/defendants: Craig (seller) and others Merritts gave offer to buy Craig's house, contingent on a satisfactory home inspection.They did the inspection (with Craig's husband Mark) and found a cistern that wasn't properly utilized. The inspector also found a well located on the adjacent property that supplied water to the house, but only told Mark Craig, not the Merritts.The house was sold including a "Disclosure Statement" wherein the Merritts affirmed there were no problems with the water supply. After this, Craig caused the water line to be cut, reactivating the cistern.Appellants noticed that the water supply had depleted. They agreed to have a new well constructed, which the Merritts paid for; but it failed to produce water.The Merritts brought suit, seeking rescission, compensatory, and punitive damages.Judge dismissed the claim for rescission, saying they had effectively waived their right to it. He still awarded ~$42k in compensatory damages and $150k in punitive damages.The Merritts then appealed, requesting rescission of the contract. Circuit court denied.In Maryland, a defrauded party can either retain the contract and collect damages for the breach, or rescind the contract and recover his expenditures; not both.A plaintiff seeking rescission must demonstrate that he acted promptly after discovery of the ground for rescission, or else the right to it will be waived. Other question: are punitive damages warranted? Answer: yes, Craig's husband did it on purpose with ill intent. We agree that this is fraud and therefore warrants punitive damages, because Craig made representations with actual knowledge of their falsity, and with the intention to deceive the appellants. Conclusion: circuit court's judgment is REVERSED and REMANDED for further proceedings consistent with this opinion. (To allow plaintiffs to receive punitive damages.)

Case 18-3: Specific Performance Prestenbach v. Collins

Where: Supreme Court of Mississippi, 2014On September 15, 2011, Gerald Collins granted Garrett Prestenbach a 1-year option to purchase ~150 acres of Collin's farm for $500k.Prestenbach agreed to make a $25k down payment and finance the rest through a USDA loan and financing agreement with Collins. The agreement was irrevocable for 3 months.However, 1 month after signing, another buyer offered to buy the land immediately. Collins attempted to persuade P to give up his option, but P refused.On December 8, C sent a letter attempting to terminate the 1-year option. P responded by exercising his option to purchase on Dec. 16. His USDA loan was approved on Dec. 22.Collins refused to go forward with the sale, claiming the option had been terminated. He filed action against P to establish ownership of the property. In response, P filed a counterclaim for specific performance saying he was "ready, willing and able" to close the deal.Both parties filed for summary judgment. Chancellor granted C's motion and denied P's, because P could not pay the entire $500k purchase price at the time. Prestenbach appealed.Court of Appeals affirmed, because when P exercised his option, he "indisputably lacked the financing to purchase the property."Supreme Court of Mississippi granted P's writ of certiorari. We find that the contract stated that the purchase price shall be paid at the time of recording of the deed. But, nothing indicates that he was required to pay (or demonstrate his ability to pay) the price prior to closing.An option contract becomes a contract to sell when the option holder exercises the option. The option-giver has no choice but to sell when the option is accepted according to its terms.When P exercised his option to purchase, the option contract became an enforceable contract to sell, and P had the right to specifically enforce it.Conclusion: REVERSE the judgment of the Court of Appeals. P is entitled to specific performance, and the chancellor erred in denying his motion for summary judgment (and the Court of Appeals erred in affirming it.) Remedies in Equity:Injunction Court order prohibiting a party from doing a specific act.(E.g. to enforce covenants not to compete.)(Exclusive personal services can be enforced by injunction, as long as the probable result will not deprive the employee of other reasonable means of making a living. E.g., if A is contracted to sing for B at specific times, and A contracts with C to sing for them instead at the same times, a court can enforce injunction, preventing A from singing for C.)See Case 18-4 Madison Square Garden Corp., III. v. Carnera

Case 18-2: Liquidated Damages Arrowhead School District No. 75, Park County, Montana v. Klyap

Where: Supreme Court of Montana, 2003 Arrowhead is the only school in its district. Klyap was a teacher who signed a contract with them around May 1998 for the 1998-1999 school year.It had a ~$20k salary and a liquidated damages provision requiring a payment of 20% of his salary for breach of contract.Klyap also signed a notice indicating he accepted responsibility for familiarizing himself with the teacher's handbook.Klyap informed the school about a week before classes started in August that he would not be teaching during the 1998-1999 school year.Arrowhead sought to enforce the penalty ($4100) from the liquidated damages clause.When Klyap had signed with them, 80 applicants were available. When they had to replace him, only 2 were still available, and they were only able to hire one (a less experienced teacher) at a salary of ~$19k.District Court found the clause enforceable because the damages caused by the breach were impractical and extremely difficult to fix. They awarded the $4100 judgment to the school. Question: is this clause unenforceable due to being a penalty (excessive and therefore punitive rather than compensatory)?We find that the 20% damages ($4100) is harsher than most, but is still within Klyap's reasonable expectations, and is not unduly oppressive. Conclusion: District Court correctly determined that the liquidated damages provision was enforceable. AFFIRMED.

Case 18-4: InjunctionsMadison Square Garden Corp., III. v. Carnera

Where: US Court of Appeals, Second Circuit, 1931Plaintiff: Madison SquareDefendant: Primo CarneraCarnera appeals from an order granting an injunction against him.On January 13, 1931, the parties had entered into an agreement in writing. In it, Carnera agreed to render services as a boxer in his next contest, specifically at Madison Square Garden. He promised not to compete in any major boxing contest before then.Thereafter, Carnera made a contract to engage in a boxing contest with Sharkey before the Madison Square contest.Madison Square brought suit to restrain the defendant from carrying out the contract with Sharkey, and obtained a preliminary injunction order. This appeal is taken from that.We (the district court) find that the services are unique and extraordinary. The contract is valid and enforceable. It contains a restrictive covenant that may be given effect. Conclusion: the order is not an abusue of discretion. AFFIRMED. (extra) Remedies in Equity:Reformation Process in which the court "rewrites" or "corrects" a written contract, to make it conform to the true agreement of the parties. Granted when parties agree on a contract but write it in a way that inaccurately reflects their actual agreement.

D

Which of the following duties would not be delegable? a. John has a contractual duty to pay Isaac $50. b. Karl has a contractual duty to deliver 50 bushels of corn to Michael by October 1. c. Jeffrey has a duty to mow Georgia's lawn at least once a week. d. Arthur has a duty to teach an accounting class at a community college during the fall semester.

C

Which of the following generally is not grounds for discharge of a contract by operation of law? a. Objective impossibility b. Subsequent illegality c. Running of the statute of limitations d. Bankruptcy

A

Which of the following involves a creditor beneficiary relationship? a. A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy b. A contract between an employer and a union representing the employees, which contract is made for the benefit of the employees c. A contract between the owner of a building and the contractor stating that the contractor will pay his employees at a stated rate d. A contract between a governmental unit and business for services to be rendered to area citizens


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