BLAW unit 3
Proximate cause exists when the connection between an act and an in-jury is strong enough to justify imposing liability. a. True b. False
True
Self-defense is a defense to an allegation of both assault and battery. a. True b. False
True
The public disclosure of private facts about a person is an invasion of privacy.
True
Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.
True
Wrongfully taking personal property without the owner's permission is conversion.
True
Rescission is an equitable remedy used when the parties have imperfectly expressed their agreement in writing
false
The extreme risk of an activity is a defense against imposing strict liability. a. True b. False
false
The only requirement for a valid contract is that the parties voluntarily entered into it. a. True b. False
false
The standard measure of compensatory damages is the value of breaching party's promised performance.
false
The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract.
false
To avoid liability for negligence, a business owner must protect its patrons against all risks
false
To be legally sufficient, consideration must be evidenced by something tangible.
false
Under the "danger invites rescue" doctrine, a person who tries to rescue another individual from harm is liable for any injuries to that individual.
false
Under the doctrine of comparative negligence, only the plaintiff's negligence is taken into consideration.
false
Under the theory of negligence, the duty of care requires a careless act. a. True b. False
false
Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant. Garland knowingly misrepresents a number of material features about the restaurant and the business. When Jules discovers the truth, he can A. not rescind the contract because Jules assumed the risk that the bargain would prove to be different from what he thought. B. rescind the contract on the basis of fraud. C. rescind the contract on the basis of mistake. D. rescind the contract on the basis of undue influence.
rescind the contract on the basis of fraud.
. Some risks are obvious but that does not necessarily excuse a business owner from the duty to protect customers from foreseeable harm.
true
A bilateral contract comes into existence at the moment promises are exchanged.
true
A contract may include a clause stating that damages will be limited to a maximum amount. a. True b. False
true
A contract may not be enforceable if one party is aware that the other party made a mistake of fact.
true
A contract to do something that is prohibited by statutory law is void.
true
A contract will be discharged if supervening circumstances make it impossible to attain the purpose both parties had in mind when they made the contract. a. True b. False
true
A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.
true
A party who in good faith performs substantially all of the terms of a con-tract can enforce the contract against the other party.
true
A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party.
true
A promise to do what one already has a legal duty to does not constitute legally sufficient consideration. =
true
A unilateral contract is formed when the party receiving the offer com-pletes the re-quested act or performance. a. True b. False
true
An Internet service provider cannot be held liable for disseminating others' defamatory remarks.
true
An acceptance sent by means not expressly or impliedly authorized is not effective until it is received. a. True b. False
true
An acceptance that changes the terms of the original offer may be considered a counteroffer.
true
An executed contract is one that has been fully performed.
true
Any breach entitles the nonbreaching party to sue for damages
true
As a general rule, contract duties can be delegated.
true
Consequential damages are awarded for damage caused by special circumstances beyond a contract itself. a. True b. False
true
Disparagement of property is another term for slander of quality.
true
Every state has a statute that stipulates what types of contracts must be in writing. a. True b. False
true
Failure to live up to a standard of care may be an act or an omission.
true
If a voidable contract is ratified, the parties must fully perform their respective legal obligations.
true
If it can be shown that a trespass to land was warranted, a complete defense exists. a. True b. False
true
If no harm results from an allegedly negligent act, there is no liability.
true
In certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties.
true
In most contracts, promises of performance are not expressly conditioned. a. True b. False
true
Misrepresentation of a material fact can occur by words or action.
true
Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise.
true
Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise. a. True b. False
true
Ordinarily, a waiver by a contracting party will not operate to waive subsequent, additional, or future breaches of contract. a. True b. False
true
Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is specific performance.
true
The element of bargained-for exchange distinguishes contracts from gifts.
true
The law allows an innocent party to be discharged when the other party has materially altered a written contract without consent.
true
The use of a person's likeness for commercial purposes without permission is appropriation.
true
Through tort law, society compensates those who suffer injuries as a result of others' wrongful conduct. a. True b. False
true
To determine whether a duty of care has been breached, a judge asks how a reasonable person would have acted in the same circumstances.
true
Under a dram shop act, liability can be imposed without proof of negligence. a. True b. False
true
Under federal law, an electronic signature is as valid as a signature on pa-per. a. True b. False
true
Under the mailbox rule, an acceptance takes effect at the time it is sent.
true
When a party's performance is perfect, it is said to be complete.
true
When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises. True False
true
specific performance will not be granted unless the party's legal remedy is inadequate.
true
A party cannot recover damages for severe emotional distress absent a showing of physical injury.
False
An important rule to keep in mind is that the offeree (the buyer) controls the acceptance and thus the resulting contract.
False
An occurrence or event that makes performance temporarily impossible operates to discharge the parties' contractual duties.
False
Defamation is one person's use of another's name without permission. a. True b. False
False
Defense of others is a defense to an allegation of battery, but not assault. a. True b. False
False
For a tort to be considered intentional, the tortfeasor must have an evil or harmful motive.
False
Fraud occurs only when there is reliance on a statement of opinion. a. True b. False
False
In contract law, intent is determined by the personal or subjective intent, or belief, of a party.
False
Statements made by in judicial proceedings are NOT privileged communications and may be the basis for defamation
False
The courts consider legitimate competitive behavior permissible only if it does not result in the breaking of a contract. a. True b. False
False
To commit an intentional tort, one person must intend to harm a certain person. a. True b. False
False
Very few states have limited the amount of damages that can be awarded in tort cases. True False
False
Voluntary consent may be lacking because of misrepresentation but not because of a mistake.
False
Rashi contracts to work for Social Data Analysis Corporation during June for $4,500. On May 31, Social Data cancels the contract. Rashi declines a job of a different type and rank with Tech Collection, Inc., which would have paid $3500. Rashi files a suit against Social Data. As compensatory damages, Rashi can recover a. $4,500. b. $4,000. c. $500. d. $0.
A
Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself. a. True b. False
false
Kai files a suit against Lana based on one of Lana's statements that Kai alleges is fraudulent. To give rise to fraud, the statement must be one of a. emotion. b. fact. c. illusion. d. opinion.
B
Nogales Ceramics pays Omar $15,000 to propose an online marketing campaign. Two days later, Omar tells Nogales that he has accepted a job in Silicon Valley and cannot plan the campaign. As compensatory damages, Nogales can recover a. $150,000. b. $15,000. c. $1,500. d. $0.
B
Herb's Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb's competitors, which Idris delivers on August 1. Herb's offer, on the same date, to pay Idris is is a. a concurrent condition. b. a novation. c. tender. d. mutual rescission.
C tender
Self-defense is a defense to negligence.
F, the only defenses to negligence are contributory negligence, comparative negligence, and assumption of risk
Some promises are not legally binding. a. True b. False
Trie
A material fact is a fact that a reasonable person would consider important when determining his or her course of action. a. True b. False
True
Any lawful contract can potentially form the basis for an action based on wrongful interference with a contractual relationship.
True
Class-action lawsuits are suits in which a number of persons join together to bring an action. a. True b. False
True
False imprisonment occurs when a person restrains another intentionally and without justification.
True
Harm must be foreseeable to be considered the proximate cause of an injury in negligence. a. True b. False
True
Intended beneficiaries can sue to enforce a contract. a. True b. False
True
SFX Paintball Games, Inc., and Truck & Trailer Delivery Corporation sign an agree-ment that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti- mate but approximately $1,000." This is a. a liquidated damages b. a mitigation of damages clause. c. a nominal damages clause. d. a penalty clause.
a. a liquidated damages
An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Keely, a patron, is injured. Jack's has committed a. abuse of process. b. battery. c. false imprisonment. d. negligence
d. negligence
Oakley posts a defamatory remark about Pierre in "Roominate," an online social network maintained by SocNet, Inc., an Internet service provider. Most likely to be held liable for the remark will be a. Oakley. b. Pierre. c. Roominate. d. SocNet.
a. Oakley.
On behalf of Bobble Head Manufacturing Company, Carmela types her name at the bottom of an e-mail purchase order and submits the order to Designer Parts Company. Under the UETA, Carmela's typed name qualifies as a. a "signature." b. a statement of future intent. c. an assignment. d. a preliminary negotiation.
a. a "signature."
Jonah tells Levi he will give him an Xbox if Levi does Jonah's chores for a month. Levi promises to do the chores. Jonah and Levi have formed a a. a bilateral contract. b. a formal contract. c. a unilateral contract. d. no contract.
a. a bilateral contract.
Lamar offers to pay Melanie $150 for a hot-air balloon ride for Nina. They agree to meet at dawn the next day to exchange the cash for the ride. At this point, these parties have a. a bilateral contract. b. a trilateral contract. c. a. unilateral contract. d. no contract.
a. a bilateral contract.
River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is a. a limitation-of-liability clause. b. an exculpatory clause. c. a liquidated damages clause d. a quasi contract
a. a limitation-of-liability clause.
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra. Business Computer's repudiation of its contract to employ Chandra is most likely a. a material breach. b. a minor breach. c. a condition subsequent. d. not a breach.
a. a material breach.
Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corpo-ration. Before either party has performed, rescission of this con-tract requires a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. a settlement agreement
a. a mutual agreement to rescind.
Deluxe Awnings, Inc., offers Elbert a job as an installer. No time for acceptance is specified in the offer. The offer will terminate a. after a reasonable period of time. b. after a typical workweek (five business days). c. after a. usual. month (thirty. calendar days). d. never.
a. after a reasonable period of time.
Nora enters into a contract with Oceanic Transport, Inc., to insure and ship a painting from France to the United States for a certain price. But Oceanic makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would a. allow the parties to rescind the contract. b. award damages to Nora for the mistake. c. award damages to Oceanic for the mistake. d. enforce the contract as is.
a. allow the parties to rescind the contract.
Bilbo signs a lease agreement for an apartment with Cato, who owns and manages the Deer Creek Apartments complex. These parties have a. an express contract. b. an implied contract. c. a unilateral contract. d. no contract.
a. an express contract.
Louis—larger and stronger than Mica—threatens to hit Mica before hitting and injuring him. Mica files a suit against Louis for assault and battery. Mica will most likely recover for a. assault and battery. b. assault but not battery. c. battery but not assault. d. neither assault nor battery.
a. assault and battery
Manuel is walking past Thomas's house when he hears a smoke alarm going off. He also hears a child calling for help and sees smoke coming from a window. Manuel rushes into Thomas's house, finds the child and brings it outside. If Thomas sues Manuel for trespass to land, Manuel's defense will probably be a. assisting someone in danger. b. consent. c. self-defense. d. the reasonable person defense.
a. assisting someone in danger.
Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1. Signe may revoke the offer a. before Thomas accepts the offer. b. before March 1, whether or not Thomas has accepted the offer. c. only after Thomas accepts the offer. d. only after March 1.
a. before Thomas accepts the offer.
Bruce, a minor, enters into a contract with Coralee to buy her car. Later, Bruce opts to avoid the deal. With respect to the contract, this releases a. both parties. b. neither party. c. onlyBruce. d. only Coralee.
a. both parties.
d's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to a. damages. b. nothing more. c. to be excused from performance. d. suspend performance.
a. damages.
Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and onto Bella's land. Doyle commits trespass if he a. does not have Bella's permission to drive on the property. b. drives onto the property for recreational purposes. c. harms the property in a material way. d. harms the property in any way.
a. does not have Bella's permission to drive on the property.
Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos's bid is significantly low. 43. Refer to Fact Pattern 11-1. Any contract with AgriCo-op that includes the mistake may be rescinded a. if AgriCo-op knew or should have known of the mistake. b. if Lewis's supervisor did not know of the mistake. c.if Silos knew or should have known of the mistake. d. under no circumstances.
a. if AgriCo-op knew or should have known of the mistake.
Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury a. if Ike intended to push Joan. b. only if Ike did not intend to break Joan's arm. c. only if Ike had a bad motive for pushing Joan. d. only if Ike intended to break Joan's arm.
a. if Ike intended to push Joan.
Refer to Fact Pattern 11-1. Any contract with AgriCo-op that includes the mistake may be rescinded a. if the error was made inadvertently and without gross negligence. b. if the error was made intentionally or negligently. c. if the error was made intelligently but distractedly. d. under no circumstances.
a. if the error was made inadvertently and without gross negligence.
Refer to Fact Pattern 11-1. Any contract with AgriCo-op that includes the mistake may be rescinded a. if the mistake involves a material fact. b. if the mistake involves any fact. c. if the mistake is one of value or quality. d. under no circumstances.
a. if the mistake involves a material fact.
Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is a gold mine. Byron can a. not rescind the contract. b. rescind the contract on the basis of fraud. c. rescind the contract on the basis of mistake. d. rescind the contract on the basis of undue influence.
a. not rescind the contract.
Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is NOT defamatory if a. only Hu hears it. b. a third party hears it. c. the statement is published. d. the statement is a lie.
a. only Hu hears it.
Mark is creating Nu2U.com, a Web site through which he will enter into contracts over the Internet. Important terms to include in his offers include a. provisions specifying the remedies if the contract is breached. b. a detailed history of his business.c. glowing reviews from former customers. d. his educational background.
a. provisions specifying the remedies if the contract is breached.
If a voidable contract is avoided, the promisee, but not the promisor, is released from it.
false
Drake enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Drake learns that Eve does not have access to any unique software and files a suit against her, alleging fraud. Proof of an injury is required to a. recover damages. b. rescind the contract. c. undo Eve's influence. d. punish the defendant.
a. recover damages.
Following negotiations, Office Park, Inc., enters into an informal contract with Quality Janitorial Company for custodial services for Office Park's buildings. This means that the parties' contract a. requires no special form. b. is freely open to either party's interpretation. c. is subject to change by either party, within reason. d. is not yet completely formed.
a. requires no special form.
The Class Action Fairness Act of 2005 a. shifted jurisdiction over certain class-action lawsuits from the state courts to the federal courts. b. shifted jurisdiction over certain class-action lawsuits from the federal courts to the state courts. c. made forum shopping punishable by large fines. d. limited the amount of damages that could be awarded in a medical malpractice suit.
a. shifted jurisdiction over certain class-action lawsuits from the state courts to the federal courts
Ethan believes that he and Fiorina agreed that he would find the best location for a well on her ranch and then dig the well. In a later dispute, whether a contract was formed can be determined by a. the parties' statements at the time of their alleged contract. b. what Ethan claims was the parties' intent. c. what Fiorina claims was the parties' intent d. what the parties agree they intended.
a. the parties' statements at the time of their alleged contract.
Lucy agrees to work for Mung Manufacturing, Ltd., as a Chinese/ English/ French translator. In determining whether a contract has been formed, an element of prime importance is a. the parties' intent. b. Mung's base of operations. c. thedurationofthework. d. Lucy's language capabilities.
a. the. parties' intent.
Moby negotiates a contract with Nora via e-mail. It is reasonable to infer that Moby has consented to a. transact. business electronically. b. submit to the jurisdiction of any selected forum. c. respond to any message sent. to that e-mail address. d. nothing.
a. transact business electronically.
Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay. Their agreement is a. unenforceable because Agro's performance. was a preexisting duty. b. unenforceable because Bucolic's promise was illusory. c. enforceable. d. unenforceable because its performance is unforeseeably difficult.
a. unenforceable because Agro's performance. was a preexisting duty.
Sonya and Taylor enter into an oral contract that is required to be in writing to be enforceable. Such a contract is normally a. voidable by a party who does not wish to follow through with it. b. void. c. valid. d. voidable but only by consent of both parties.
a. voidable by a party who does not wish to follow through with it.
Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver. Dondi buys the appliance else-where for $5,500. Dondi's measure of damages is a. $1,000. b. $1,000 plus incidental damages. c. incidental damages only. d. $0
b. $1,000 plus incidental damages.
Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is a. a browse-wrap term. b. a click-on agreement. c. a. shrink-wrap agreement. d. a partnering agreement.
b. a click-on agreement.
Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must review a provision stating that she will not make and sell copies of the song and is required to click "I agree." This provision is a. a browse-wrap term. b. a click-on agreement. c. a shrink-wrap agreement. d. none of the choices.
b. a click-on agreement.
In contract law, the term consideration refers to the serious thought that underlies a party's intent to enter into a contract.
false
Ricci, a user of SmartPhoneApps.com's Web site, can download apps for free if she first clicks on "I accept" after viewing certain terms. This is a. a. contract that does not include the terms. b. a contract that includes the terms. c. not a contract but. the terms. are enforceable. d. unenforceable.
b. a contract that includes the terms.
Kelly is injured when she slips and falls on Layla's sidewalk. To determine whether Layla owed a duty of care to Kelly, Layla is subject to the standard of a. a realistic person. b. a reasonable person. c. a recognizable person. d. a reliable person.
b. a reasonable person.
Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra. Kendra transfers her right to payment under the contract to County Bank. This transfer is a. adelegation. b. an assignment. c. a third party beneficiary contract. d. prohibited.
b. an assignment.
Vita asks Walter, a cobbler and shoe salesperson, to repair a pair of work boots. There is no discussion of a price, and Vita and Walter do not sign any documents. After the repair, Walter hands Vita a bill. With respect to Vita's obligation to pay the bill, this is a. an express. contract. b. an implied contract. c. a unilateral contract. d. no contract.
b. an implied contract.
App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max and ten other student interns. With respect to the contract between ADI and Carmen, Max is a. an intended beneficiary. b. an incidental beneficiary. c. adelegate. d. an assignee.
b. an incidental beneficiary.
Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongful inter-ference with a a. bargaining relationship. b. business relationship. c. contractual relationship. d. customer relationship.
b. business relationship.
Emil enters into a contract to buy Foley's cultivated bottomland and hill and bench acreage if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is a. absolute. b. conditional. c. manifest d. irresolute
b. conditional.
Home & Barn Construction, Inc., contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay. The elements of this, and any other, contract include a. the parties' capability. b. consideration. c. necessityofpurpose. d. price.
b. consideration.
Stella is fifteen. In most states, for contractual purposes, Stella would be considered a minor until she is a. sixteen. b. eighteen. c. seventeen. d. twenty-one.
b. eighteen.
Intoxicated but still capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Downloads, Inc. This contract is a. unenforceable because Cricket was intoxicated. b. enforceable. c. unenforceable if Cricket disaffirms it. d. unenforceable if Downloads disaffirms it.
b. enforceable.
Illya owes Jenny $1,000. In a separate deal, Kasey owes Illya $1,000. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. Illya's right to the $1,000 is then a. unchanged. b. extinguished. c. incidental. d. assigned to a court.
b. extinguished.
Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity. Linc is most likely a victim of a. opinion. b. fraud. c. mistake. d. nothing.
b. fraud.
Cook's Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of a. all risks. b. hidden risks. c. obvious risks. d. no risks.
b. hidden risks.
Obie accuses Portia, a broker with QT Financial Services, of fraudulently inducing him to invest in Risky Development Company, whose stock price declines in value. The reliance that gives rise to liability for fraud requires a. a subjective statement. b. misrepresentation of a fact knowing that it is false. c. puffery. d. seller's talk.
b. misrepresentation of a fact knowing that it is false.
Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell. Regarding this agreement, a court would likely a. enforce it. b. not enforce it. c. reform it to reflect the true market value of the property. d. order the parties to renegotiate the price.
b. not enforce it.
Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to a. damages. b. nothing more. c. to be excused from performance. d. suspend performance.
b. nothing more.
Nico is a passenger in a car driven by Owen, whose reckless driving causes an accident, injuring himself. Nico, uninjured, accompanies Owen to Parkside Hospital in an ambulance. The ambulance is hit by a car driven by Quin, and Nico is injured. Nico files a suit against Owen, alleging negligence. The element most likely to be a question for the court to decide is a. causation in fact. b. proximate cause. c. the duty of care. d. the injury requirement.
b. proximate cause.
Resourced Minerals Inc. agrees to deliver 10 tons of coal to static energy corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. Resourced Minerals cannot convince Static Energy to amend the contract. Resourced Minerals should seek a. damages. b. reformation. c. rescission. d. specific performance.
b. reformation.
Rikki agrees to sell her Sunrise Breakfast Café to Tia. As part of the deal, Rikki signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely a. damages. b. reformation. c. rescission. d. specific performance.
b. reformation.
Jane develops a new color of lipstick. To market her lipstick, Jane uses a computer design program to show a famous model using Jane's lipstick. Jane does not ask the model's permission. The model can sue Jane for a. battery. b. fraudulent misrepresentation. c. defamation. d. appropriation.
d. appropriation.
Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Overseas Bank through Newt's investment firm. Unknown to Mona, Newt realizes ongoing commissions from the investment. Most likely, Mona may a. not rescind the contract. b. rescind the contract on the basis of undue influence. c. rescind the contract on the basis of mistake. d. rescind the contract on the basis of unconscionability.
b. rescind the contract on the basis of undue influence.
Panini Vittles, Inc., contracts with Qino to deliver its sandwiches. Later, the parties decide to cancel their contract. They can a. rescindtheirentirecontract. b. rescind their contract to the extent that it is executory. c. rescind their contract if they make a new contract at the same time. d. not rescind their contract.
b. rescind their contract to the extent that it is executory.
In newspaper ads, Lo-Price Autos falsely accuses Hi-Value Vehicles, a competitor, of selling stolen cars. Hi-Value's sales decrease. Lo-Price has most likely committed a. slander of quality. b. slander of title. c. wrongful interference with a business relationship. d. none of the choices.
b. slander of title.
Mary is angry with Julia so she waits outside Julia's house and hits Julia with a baseball bat as Julia leaves the house. When Julia sues Mary for battery, Mary will be considered a a. victim. b. tortfeasor. c. plaintiff. d. unreasonable person
b. tortfeasor.
Frank slips and falls on Guy's Harbor Tour Boat and is injured. Frank files a suit against Guy's for $500,000. If Frank is 20 percent at fault and Guy's is 80 percent, under the "50 percent rule" comparative negligence principles, Frank would recover a. $0. b. $250,000. c. $400,000. d. $500,000.
c. $400,000.
Henry promises not to open his Hank's Lunchbox Café before 10:00 A.M. if Isis, who owns Isis's Danish & Donuts next door, promises to close by 4:00 P.M. Henry's consideration is a. the destruction of a legal relationship. b. the creation of a legal relationship. c. a forbearance. d. an exchange of money.
c. a forbearance.
Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. a settlement agreement.
c. a novation.
On Monday, O'Shea tells Patterson that she will pay Patterson $1,000 if O-Shea's bill processing and office filing are completed by Friday. On Wednesday, when Patterson has finished more than half of the work, O'Shea says that she has changed his mind. Under the modern-day view, these parties had a. an expired contract when O'Sheas aid that. she. changed. her mind. b. a bilateral contract when O'Shea offered to pay for the work. c. a. unilateral contract as soon. as Patterson began to perform d. no contract.
c. a. unilateral contract as soon. as Patterson began to perform
Cellphones & Calltime, Inc., makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Delores accepts the offer. A valid contract requires a. a price and a subject. b. a duration and termination provision. c. an offer and an acceptance. d. specific quality standards.
c. an offer and an acceptance.
Lizzie, a clerk at a Movies Unlimited store, takes a DVD player from the store without permission. Lizzie is liable for a. appropriation. b. benefiting an employee. c. conversion. d. wrongful interference with a business relationship.
c. conversion.
Barbara is selling her car. She knows that the brakes do not work. When a potential buyer asks Barbara if there are any problems with the car, Barbara assures the buyer that there are no problems. The buyer purchases the car based on the assurance that there is nothing wrong with it. The buyer may be able to sue Barbara for a. assault. b. defamation. c. fraudulent misrepresentation. d. appropriation.
c. fraudulent misrepresentation.
Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse. Dex completes the installation. The act of installing the pump a. imposes a moral obligation on Chicken & Egg to pay Dex. b. imposes no obligation on Chicken & Egg unless it is satisfied with the job. c. is not sufficient consideration because it is not goods or money. d. is the consideration that creates Chicken & Egg's obligation to pay Dex.
c. is not sufficient consideration because it is not goods or money.
Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Speedy are liable to a. all those who were injured. b. only those who were uninsured. c. only those whose injuries could have been reasonably foreseen. d. only those whose vehicles were closest to Ralph's van.
c. only those whose injuries could have been reasonably foreseen.
Jean is playing a video game on a defective disk that melts in her game player, starting a fire that injures her hands. Jean files a suit against K-Tech, Inc., the game's manufacturer. K-Tech is held liable under the doctrine of strict liability. A significant application of this doctrine is in the area of a. cyber torts. b. intentional torts. c. product liability. d. unintentional torts.
c. product liability.
Odina signs a covenant not to compete with her employer, Penultimate Sales Corporation. A court decides that the covenant is overly restrictive. Depending on the jurisdiction, the court will likely a. enforce it as written so as not to undercut the freedom of contract. b. enforce it but evaluate its effects over time. c. reform its terms to prevent any undue burden. d. refuse to enforce it unless Penultimate pays a fine to the court.
c. reform its terms to prevent any undue burden.
Fabien offers to sell his Graphic Signs, LLC, business to Hana for $100,000. Hana replies, "The price is too high. I will buy it for $75,000." Hana has a. acceptedtheoffer. b. made a counteroffer without rejecting the offer. c. rejected the offer and made a counter offer. d. rejected the offer without making a counteroffer.
c. rejected the offer and made a counter offer.
George has a badly infected right foot. Herb, George's physician, prescribes amputation. George agrees. During the operation, Herb amputates the left foot. In George's suit against Herb, George's best theory for recovery is a. assumption of risk. b. negligence per se. c. res ipsa loquitur. d. strict liability.
c. res ipsa loquitur.
Rural Power Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location. Rural advances Shovel 10 percent of its cost. The parties rescind the contract. Shovel's refund of the payment is a. a penalty. b. liquidated damages. c. restitution. d. a breach of contract.
c. restitution.
CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload the cargo that Discount designates. CrossCountry's offer to perform, when the company is ready, willing, and able to do so, is a. complete. b. substantial. c. tender d. absolute
c. tender
Damon contracts to repair the turf on a soccer field for Carousel Sports Park. Damon knows that without the repair, Carousel will have to cancel an upcoming game. Damon does not perform as promised. As consequential damages, Carousel can recover a. the cost of new turf. b. the difference between Damon's price and the actual cost of repair. c. the loss of profit from the canceled game. d. nothing.
c. the loss of profit from the canceled game.
Duffy is a passenger in a car that Caleb is driving when an accident occurs. Both Caleb and Duffy are emotionally rattled, but neither is physically hurt. Caleb is not liable to Duffy on a negligence theory because a. both parties were emotionally rattled. b. Caleb apparently did not intend to cause an accident. c. Duffy must have been comparatively negligent. d. Duffy was not injured.
d. Duffy was not injured.
Esmeralda promises to pay Fiorello $400 because "he does not have as much money as other people." Esmeralda's promise is not enforceable because a. society does not want gifts cheapened by making them legally enforceable. b. the redistribution of wealth on a one-to-one basis is not a valid social goal. c. Esmeralda could have paid more. d. Fiorello has not given consideration in return.
d. Fiorello has not given consideration in return.
Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as a. a blameless person. b. a faultless person. c. a holistic person d. a reasonable person.
d. a reasonable person.
Iggy tells Jade, "I might sell the snowboard that I bought this winter since I haven't used it and the season is almost over." This is a. an acceptance. of an offer. b. a preliminary negotiation. c. an offer. d. a statement of future. intent
d. a statement of future. intent
A Rhode Island state statute requires machinery in industrial plants to include automatic shut-off switches accessible to each employee working on the machine. Steel Company's equipment does not have the switches. Trudy, a Steel employee, suffers an injury that an accessible shut-off switch would have prevented. Trudy's best theory for recovery is a. assault. b. assumption of risk. c. invasion of privacy. d. negligence.
d. negligence.
Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical procedure. This contract is enforceable by a. Jolie.b. Jolie's medical insurance company. c. Keaton.d. no one.
d. no one
Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery—a medical procedure. This contract is enforceable by a. Jolie. b. Jolie's medical insurance company. c. Keaton. d. no one.
d. no one
OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is a. appropriation. b. conversion. c. wrongful interference with a contractual relationship. d. no tort.
d. no tort.
Roger wants Andy to work late on a project. He tells Andy that the morally correct thing to do is to stay late at the office and work on the project. Andy feels obligated to stay and work late due to the moral pressure from Roger. Andy stays late at the office, even though he does not want to. Andy can sue Roger for a. false imprisonment. b. battery. c. defamation. d. no tort.
d. no tort.
Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot a. nothing. b. compensatory damages. c. consequential damages. d. nominal damages.
d. nominal damages.
Liz trespasses on Mega Corporation's property. Through the use of rea-sonable force, Mega's security guard Ned detains Liz until the police ar-rive. Mega is liable for a. assault. b. battery. c. false imprisonment. d. none of the choices
d. none of the choices
Richard is an avid baseball fan and attends baseball games whenever he can. Richard considers himself an expert on all things, including risks, related to baseball. One day a ball flies into the stands, hits Richard in the head and seriously injures him. Richard can probably successfully win a case against the sports stadium based on a. negligence. b. breach of duty of care. c. defamation. d. none of the choices.
d. none of the choices.
Susan takes her car to Ken's repair shop and asks him to fix the car's brakes. Ken completes the work and sends Susan a bill for $100. Susan refuses to pay so Ken refuses to return Susan's car. Susan can probably successfully sue Ken for a. battery. b. conversion. c. trespass to property. d. none of the choices.
d. none of the choices.
Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks a. attributable to the triathlon in any way. b. different from the risks normally associated with the triathlon. c. greater than the risks normally associated with the triathlon. d. normally associated with the triathlon.
d. normally associated with the triathlon.
Kelby enters into a contract with Lara on a social media network to buy her stock in Mobile Devices Corporation. Neither party prints out a hard copy. Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can a. be "denied legal. effect" if. it falls under UCC article 2. b. be "denied legal effect" unless a hard copy is printed. c. be. "denied legal effect" until. it is signed on paper. d. not be "denied legal effect" solely because it is in electronic form.
d. not be "denied legal effect" solely because it is in electronic form.
Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale Distributors. When Genovese runs into the types of difficulties that contractors ordinarily confront, Hawthorne agrees to pay extra compensation to overcome them. Regarding the agreement to pay more, a court would likely a. enforce it. b. rescind it. c. order the parties to renegotiate it. d. not enforce it.
d. not enforce it.
Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This is a. fraud if the statement is the truth. b. fraud if Jim believes that this statement is not true. c. fraud if Jim is stating his opinion, not the facts. d. not fraud.
d. not fraud.
Water Rites, LLC, enters into a contract to site and dig a well for Rancho Verde. Water Rites completely performs. Rancho Verde is entitled to a. a discount. b. rescission. c. novation. d. nothing more.
d. nothing more.
Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. If Ambrose breaches the contract, Belle Vista's remedy would most likely be a. a certain ratio of the amount that Ambrose expected to invest in the project. b. a percentage of Ambrose's unrealized profit. c. the difference between the land's contract and market prices. d. specific performance.
d. specific performance.
Nonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Piper and sends $1,500 as a down payment. When Nonny sends Piper the rest of the price, she refuses to ship the collection. Nonny should seek a. damages. b. quasi-contractual recovery. c. rescission. d. specific performance.
d. specific performance.
Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include a. a desire not. to perform. b. insufficient capital. c. preliminary indications of. unsatisfactory results. d. the lack of a party's voluntary consent.
d. the lack of a party's voluntary consent.
Jackie distributes a handbill throughout her neighborhood accusing her neighbor Ked of being a convicted sex offender. The statement is defamatory if a. a neighbor repeats it. b. Ked suffers emotional distress. c. the statement is true. d. the statement is false.
d. the statement is false.
Most courts require a showing of injury when an action is to rescind a contract for fraud.
false
No offer may be revoked before it is accepted. a. True b. False
false
Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen agrees to buy "Garth's ATV" for $750. Garth believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation a. Garth is entitled to $750 for the $500 ATV. b. Helen is entitled to the $1,000 ATV for $750. c. Helen must buy both ATVs for $1,500. d. there is no contract.
d. there is no contract.
As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed a. appropriation. b. conversion. c. disparagement of property. d. trespass to personal property.
d. trespass to personal property.
A condition is a qualification in a contract based on a future event that is certain to occur.
false
A contract entered into by a minor is voidable at the option of either of the contracting parties.
false
A contract entered into by an intoxicated person is never valid.
false
A contract involving property of any kind must be in writing to be enforceable.
false
A failure to return personal property is disparagement of property even if the rightful owner consented to the initial taking.
false
A liquidated damages provision in a contract specifies a certain amount to be paid in the event of a default or breach of contract.
false
A party seeking to recover compensatory damages cannot also recover incidental damages. a. True b. False
false
A person who has been determined by a court to be mentally competent cannot form a legally binding contract with another party.
false
A promise to do what one already has a legal duty to do constitutes legally suf-ficient consideration.
false
A request or invitation to negotiate is an offer. a. True b. False
false
A statement of future intent—"I plan to sell my car"—is an offer.
false
An acceptance can impose new conditions or change the terms of the original offer without rejecting it.
false
An advertisement—"we buy gold"—is an offer.
false
An assumption of risk defense does not require that a risk be voluntarily assumed. a. True b. False
false
An e-contract must meet basic requirements that are different from those required of a paper contract.
false
An implied contract is not an actual contract. a. True b. False
false
An innocent party does not need to suffer an injury to collect damages as a result of a misrepresentation.
false
Any party who does not receive what he or she considers a fair bargain can argue mistake. a. True b. False
false
Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.
false
Damages that compensate the nonbreaching party for the loss of a bargain are known as consequential damages.
false
Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract.
false
If a contractual promise is not fulfilled, the person who made it is not subject to the sanctions of a court.
false