BUL 3310 Exam 2 - Bailey

Injunctions are often sought as remedies in torts of

A and B - Nuisance - Wrongful appropriation of another's goodwill

Which of the following is not a basis for product liability under 402A of Restatement (Third) Torts?

A and B(Failure to provide a procedure for registering return warranty cards.)

Mutuality of consideration is a requirement for which of the following?

A bilateral contract

Which of the following mistakes would result in the rescission of the contract? a) A bilateral mistake of material fact b) A unilateral mistake of material fact c) A unilateral mistake of value d) A unilateral mistake of law

A bilateral mistake of material fact

Which of the following is an unliquidated debt? a)A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges. b)A mortgage for 20 years at 5.02% interest c)A car loan for 6 years at 2.50% interest d)An interest-free loan of $10,000 from Grandfather to Tim. A payment of $2,500 is to be made every June 1st for 4 years.

A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges

Which of the following is an example of an unliquidated debt? a) A promissory note for the sum of 10,000 to be repaid in 6 years at 5 interest. b) A cell phone service contract for 29.99 per month. c) A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250. d) An installment sales contract for the purchase of a 5,000 mower with 200 down and the rest financed at 8 for 3 years.

A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250

The legal classification for all property that is not real property is ________________. a)Chattel b)Contraband c)Res in se d)General intangibles

Chattel

A person who uses a logo in an advertisement that is deceptively similar to that of another business commits the tort of false light True False

False

A plaintiff may be awarded either compensatory damages or consequential damages, but not both True False

False

A seller who fills a motor with heavy grease to keep it from knocking is engaged in mere "sales dressing" and is not liable for fraudulent misrepresentation T/F

False

A thief can pass good title to a subsequent purchaser, so long as the purchaser bought in good faith, for value, and did not know that the goods were stolen True False

False

A unilateral mistake of fact is grounds for rescinding the contract True False

False

A unilateral mistake of value is grounds for rescinding the contract True False

False

An accord and satisfaction can be used to settle both liquidated and non-liquidated debts. True False

False

An automobile mechanic who has possession of a car while repairing it is the bailor of the car True False

False

An illusory promise is consideration for a unilateral contract, but not for a bilateral contract. True False

False

Another term for promissory estoppel is restitution True False

False

Any person who occupies a position of trust and confidence in relation to another person or his property is a trustee True False

False

Article 2 of the Code covers the sale of land and improvements on the land True False

False

Assumption of the risk is an element of negligence that must be proved by the plaintiff True False

False

Both contributory negligence and comparative negligence can be asserted as defenses in cases brought in strict liability True False

False

Both contributory negligence and comparative negligence can be asserted as defenses in cases brought in strict liability. True False

False

Contracts entered into by alcoholics are void. True False

False

Contracts formed by the conduct of the parties, rather than expressed in words, are implied-in-law contracts True False

False

Contracts in which both sides have completely performed their duties are executory True False

False

Course of dealing refers to the practices of a particular industry and may be used by the courts to interpret contracts True False

False

Courts do not enforce output contracts as a matter of public policy True False

False

Damages that involve only a very small monetary award are called liquidated damages True False

False

During a violent storm, Nelson saved Reggie's boat from being destroyed. Reggie was so grateful that he promised to give Nelson $100. Reggie's promise is unenforceable because it is based on moral obligation True False

False

Exemplary damages are also known as compensatory damages True False

False

Food, shelter, cell phone service and medicine are examples of necessaries True False

False

Giving up a legal right is adequate consideration for a contract governed by the Uniform Commercial Code, but not for contracts under common law True False

False

Hadley v. Baxendale is the famous British case that created the equitable remedy of specific performance True False

False

If a contract is silent about payment, payment is due when the goods are identified to the contract. True False

False

If a minor ratifies a contract before the age of majority, he gives up the right to avoid the contract True False

False

If a unilateral mistake of fact is apparent to one party, he or she may take advantage of that knowledge and profit from the other party's ignorance True False

False

If both parties to a contract are uncertain or consciously ignorant of facts about the item to be sold, either party can rescind the contract based on a mutual mistake of fact T/F

False

If goods are being sold subject to a bill of lading, title to the goods passes when the goods are in the hands of the buyer True False

False

If the contract is silent about delivery terms, a destination contract is assumed True False

False

If there is a clerical error in a contract, a court will order the equitable remedy of quantum meruit to correct the error True False

False

In a bilateral contract, each party must gain a legal benefit, but only one party need incur a legal detriment True False

False

In a majority of states, a minor can disaffirm a contract only by returning all the property originally purchased True False

False

In a product liability case, defendant manufacturer can use as a defense the plaintiff's failure to discover the defect in the product. True False

False

In a sale on approval, the buyer has the risk of loss until the goods are returned to the seller True False

False

In contributory fault states, if the plaintiff was responsible for 20 percent of his own injuries, he will still be able to collect the other 80 percent from the negligent defendant True False

False

In most states, the test of mental competence for entering into a contract is the same as the test for making a valid will True False

False

It is a violation of the statue of frauds to enter into a contract with a minor. True False

False

Legal detriments always entail economic loss T/F

False

Legal detriments always entail economic losses True False

False

Lost profits cannot be used in calculating damages because profits are always uncertain and speculative True False

False

Minors may only avoid executory, not executed, contracts True False

False

Most courts allow plaintiffs to use strict liability to collect damages for economic loss in product liability suits. True False

False

Nominal consideration is another term for sham consideration. True False

False

Only liquidated debts can be discharged in an accord and satisfaction True False

False

Product liability extends only to users or consumers of the goods. Bystanders would need to prove negligence True False

False

Promissory estoppel is the contract doctrine which requires that accords be in writing True False

False

Quantum meruit refers to the compensation owed a party under an express contract True False

False

Quasi-contract is another term for an implied-in-fact contract True False

False

Sham consideration is sufficient for a unilateral contract, but not for a bilateral contract True False

False

Sid Salesman sold Bea Buyer a used 2004 Camry for $8,000. The morning after the contract was signed, Sid called Bea to say that he had forgotten that the dealership would not let that Camry go for less than $9,000 so she would have to pay an additional $1,000 if she wanted the car. Bea must pay True False

False

Since it is up to the parties to determine the dollar amount in a liquidated damages clause, courts will enforce any amount called for in the contract True False

False

Strict liability is also called "absolute liability" because there are no defenses that a defendant can raise True False

False

Tender of delivery occurs when the buyer takes physical possession of the goods. True False

False

The "state of the art" defense is available to any manufacturer in a product liability suit based on strict liability True False

False

The Uniform Commercial Code governs the sale of all commercial services and goods True False

False

The Uniform Commercial Code requires that any modification to a contract for the sale of goods must be supported by new consideration True False

False

The difference between assault and a battery is that assault results in more bodily harm True False

False

The doctrine of res ipsa loquitur applies when a person causes damages while violating a law or ordinance True False

False

The innocent party in a contract breach must choose between collecting punitive damages or compensatory damages because a court cannot grant both True False

False

The purpose of compensatory damages is to punish the breaching party. True False

False

The reasonable person is a community ideal of reasonable behavior that cannot vary from situation to situation True False

False

The tort of wrongful appropriation of another's goodwill includes reverse engineering another's product True False

False

The victim of fraudulent misrepresentation may rescind the contract, but the victim of merely negligent misrepresentation may not True False

False

The victim of innocent misrepresentation may sue to recover contract damages True False

False

The winning party in a breach of contract case is normally entitled to attorney's fees, witness fees and filing costs True False

False

There are no defenses available to a defendant manufacturer in market share liability cases True False

False

To be liable for trespass to land a person must know that the property belongs to another True False

False

Tom took Al's car without Al's permission and used it for two days before returning it. Tom has committed the tort of conversion. True False

False

Under Article 2 a consignment is treated like a sale on approval True False

False

Under freedom of contract, merchants may, by mutual consent, disclaim the obligations of good faith and due care imposed by the Code True False

False

Under modern contract law, a contract must be executed under seal to be enforceable True False

False

Under traditional rules of privity, a customer who bought a product that was defectively manufactured could sue either the merchant who sold the product or the manufacturer who created the defect True False

False

You make an appointment with a dentist. Upon arriving at the Dentist's office, you enter the office and receive treatment. Since you've said nothing about paying, it is not a term of the contract True False

False

When a business detains a suspected shoplifter it must be careful not to commit the tort of a)Invasion of privacy b)Nuisance c)Disparagement d)False imprisonment

False imprisonment

The owner of a family car could be liable for damages caused by any family member using the car under the ___________________doctrine. a)Family purpose b)Respondeat superior c)Pater familias d)In loc parentis

Family purpose

Customer ordered fried chicken strips at the drive-in window of Famous Burger. One of the "strips" turned out to be an entire chicken head, battered and deep fried. Famous Burger tested the head and found that it was, indeed, cooked in their batter and in their oil. Pictures of Customer with the fried head showed up in newspapers and on the Internet. Famous Burger offered Customer a cash settlement in exchange for Customer's promises not divulge the amount of the settlement, sue Famous Burger over the incident, or ever speak of it in public again. Agreeing not to exercise these three rights in exchange for the settlement is an example of ____________________. a) Restitution b) Forbearance c) Renunciation d) An accord and satisfaction

Forbearance

A firm offer that is in writing and signed by a merchant cannot be revoked even though the other party gave no consideration True False

True

A merchant's duty of "good faith" under the Code includes observing the reasonable commercial standards for fair dealing in his or her trade True False

True

A minor is held to the same duty of care as an adult when driving a car True False

True

A party to a contract who lacks mental capacity, but has not been adjudicated insane, is liable in quasi-contract for necessaries True False

True

A party who misstates an important fact during contract negotiations has an affirmative duty to correct that misstatement before entering into the contract True False

True

A party who seeks to rescind a contract must notify the other party in a timely fashion True False

True

A person is negligent if he or she fails to act as a reasonable and prudent person would act in those circumstances True False

True

A renunciation is a written waiver of a right arising out of a contract True False

True

A seller who knows that his property has a defect not discoverable by the buyer will generally be liable for fraudulent misrepresentation if he does not disclose the defect True False

True

A surgeon is held to a higher standard of care in performing an operation than a general practitioner would be in performing the same operation. True False

True

A tort can be a wrongful act against a person, a person's property, or both. True False

True

Absent a special relationship, one person has no legal duty to warn or rescue another True False

True

An action for mental distress normally requires the plaintiff to exhibit some physical symptoms of emotional suffering T/F

True

An action for mental distress normally requires the plaintiff to exhibit some physical symptoms of emotional suffering True False

True

An illusory promise is not a promise at all T/F

True

An intentional misrepresentation of law by a seller who is not a lawyer will be grounds for rescinding the contract True False

True

Anne bought an antique bracelet from a jeweler. Unfortunately, the bracelet was not part of the jeweler's inventory, but it had been brought in for repairs. Nonetheless, Anne has good title to the goods True False

True

Another term for consideration is bargained-for exchange True False

True

Another term for punitive damages is exemplary damages True False

True

Article 2 of the Code has special rules that apply only to merchants True False

True

Bob promises to sell Jane his Harley Davidson for $13,000, and Jane promises to pay Bob $13,000 for his Harley Davidson. This is a bilateral contract True False

True

C.I.F. in a sales contract indicates that the price includes the cost of the goods, insurance and shipping charges True False

True

Cal Contractor did extensive work renovating Hailey Homeowner's kitchen. The construction work has been completely finished, but Hailey has not yet paid Cal. This is an example of a partially executed contract True False

True

Courts generally cannot order specific performance when the contract is for personal services because of the Thirteenth Amendment True False

True

Courts may look into the adequacy of consideration if there is evidence of fraud or undue influence by one of the parties True False

True

Courts may use course of performance, course of dealing and usage of trade to override express terms in a contract True False

True

Crops are identified to the contract when they are planted True False

True

Early cases of strict liability dealt primarily with liability for dangerous animals or abnormally dangerous activities True False

True

Excessive punitive damage awards may violate the constitutional protection of due process True False

True

Failure to rescind a contract within a reasonable time amounts to an affirmation of the contract True False

True

Farmers are Article 2 "merchants" in some states and "non-merchants" in other states True False

True

For promissory estoppel to be granted as a remedy, the promisor must have known or expected that the promisee would rely on the promise True False

True

Fraudulent misrepresentation can be the basis for the injured party to rescind the contract True False

True

General damages are also called compensatory damages True False

True

Giving up the right to do something that one is legally entitled to do can serve as consideration in a contract. True False

True

Grace has a valid contract with Al to buy a desk once owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract. True False

True

Grace has a valid contract with Al to buy a desk owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract True False

True

If a bidder seeks to withdraw a bid based on a unilateral mistake, courts require, at a minimum, that the bid was made in good faith, without gross negligence, and that the other party received prompt notice True False

True

If a contract is silent about payment, payment is due in the place and at the time the buyer receives the goods True False

True

If there is a breach of contract, the breaching party bears the risk of loss of the goods True False

True

In Joint and several liability one party is potentially liable to pay the entire amount of the judgement True False

True

In a destination contract, title to the goods passes to the buyer when the goods reach their destination. True False

True

In a liquidated debt, the parties agree on the exact amount that is due True False

True

In a sale on approval, the seller must pay the costs for returning the goods True False

True

In an accord and satisfaction, the accord is the new agreement True False

True

In bilateral contracts, both parties must be bound to the contract or neither party is bound True False

True

In interpreting a particular sales contract, courts rely more on course of performance than on usage of the trade True False

True

In joint and several liability one party is potentially liable to pay the entire amount of the judgment. True False

True

In joint and several liability, a defendant who pays the entire amount of the judgment may sue the other defendants for their share of the obligation True False

True

In negligence cases, a superseding cause is one that breaks the direct sequence between the act, which is the basis of the negligence claim, and the plaintiff's injury True False

True

In negligence per se cases, the injury that the plaintiff suffers must be the same type of injury that a statute was intended to prevent True False

True

Injunctions are available as remedies in nuisance cases True False

True

Innocent misrepresentation can be the basis for the injured party to rescind the contract True False

True

Intentionally touching another in a way that is harmful or offensive constitutes the tort of battery True False

True

Manufacturers may be subject to product liability suits based on negligence if they fail to provide adequate instructions for the use of the product. True False

True

Most states will not allow recovery for economic losses in product liability cases based on strict liability True False

True

One method for proving that a contract has been rescinded is to tear up the contract True False

True

One of the elements of fraudulent misrepresentation is that the victim's reliance on the false representation was justifiable True False

True

Parties to a contract may not offer as consideration promises to do what they are already legally required to do True False

True

Plaintiff was 10% at fault for a car accident in which he was injured. In a pure contributory negligence state, plaintiff would recover nothing from the defendant although the defendant was 90% at fault True False

True

Punitive damages may be awarded to victims of fraudulent misrepresentation True False

True

Pure comparative negligence is the defense in negligence cases that most favors the plaintiff True False

True

Rescission is the remedy that cancels the contract and returns each party to his pre-contract position True False

True

Restitution is used by courts of equity to prevent unjust enrichment in actions based on quasi-contract True False

True

Scienter includes not only actual knowledge that a statement is false, but also reckless disregard for whether the statement is true or false True False

True

Susan says to Mark, "Mark, if you mow my lawn by the end of the day, I promise to pay you $50". Mark mowes Susan's lawn by the end of the day. A unilateral contract has been created True False

True

Tamara left her car in a line of other cars waiting to be washed. Tamara expects to pay for the service and the car wash expects to be paid. The contract that exists between Tamara and the car wash is an implied in fact contract True False

True

The 50% Rule is associated with comparative fault systems T/F

True

The 50% Rule is associated with comparative fault systems True False

True

The Uniform Commercial Code governs contracts for the sale of goods True False

True

The Uniform Commercial Code is an important source of contract law for businesses in the United States True False

True

The amount of damages sustained in a breach of contract case is a question of fact to be presented to the jury True False

True

The buyer attains the right to insure the goods once the goods are identified to the contract True False

True

The document issued by a common carrier evidencing its receipt of goods for shipment is a bill of lading. True False

True

The greater the risk in a situation, the higher the duty of care. True False

True

The majority of tort cases filed in United States courts are based on negligence, not on intentional torts. True False

True

The majority of tort cases filed in the United States courts are based on negligence, not on intentional torts True False

True

The publication requirement for libel is met if the falsehood is communicated to just one other person True False

True

The purpose of reformation is to correct the written contract to reflect the actual intentions of the parties True False

True

The statute that requires that certain contracts be in writing is the Statute of Frauds True False

True

The victim of negligent misrepresentation may recover contract damages, but not punitive damages True False

True

To bring a suit for disparagement, the plaintiff must show specific pecuniary losses attributable to the falsehood True False

True

To meet the element of consideration, each party to a contract must gain a legal benefit and incur a legal detriment True False

True

Under an output contract, the seller loses the right to sell his goods to anyone but the buyer named in the output contract True False

True

Under common law, modifications to existing contracts require new consideration from each party T/F

True

Under the Code, parties may agree to modify the terms of an existing contract without providing new consideration True False

True

Under the Uniform Commercial Code, provisions in a contract will not be enforced if they are so one-sided and unfair that the provisions are unconscionable True False

True

Under the common law, modifications to existing contracts required new consideration from each party. True False

True

Under the doctrine of privity, the buyer of a defective product would only be able to sue the person he bought it from and not the manufacturer who was responsible for the defect True False

True

Where one party intentionally, wrongfully, and maliciously entices a person to break their contract with another the tort of intentional interference with a contract occurs. True False

True

Whether or not a doctor acted negligently is a question of fact for a jury to decide. True False

True

Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." This is an offer to form what type of contract? a) Implied in law b) Adhesionary c) Bilateral d) Unilateral

Unilateral

Which of the following is not a legal detriment? a) The victim of libel promises not to sue. b) An 85 year old with a valid driver's license promises that she will not drive on superhighways anymore. c) A 22 year old who lives in a state where the drinking age is 21 promises not to drink alcohol. d) A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol.

A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol.

Which of the following is not classified as a good under Article 2?

A 3 month lease on a lakeside cabin

Which of the following statements expresses an illusory promise? a)"I will drive you to school in the morning if it is raining." b)"I will buy your boat and trailer for $5,000 if the engine runs okay." c)"I will buy you a new car if you make Dean's List three semesters in a row." d)"I will go to your violin recital on Saturday if there is nothing good on television."

"I will go to your violin recital on Saturday if there is nothing good on television."

Al, Bill, Chad and Dan were found jointly and severally liable for 100,000 of property damages caused when a fraternity initiation event got out of hand. Al, Bill, and Chad do not have the money to pay for their share of the damages. The only solvent defendant is Dan. The most that Dan will have to pay the plaintiff is a) $25,000 b) $100,000 c) $50,000 d) $75,000

$100,000

Which of the following statements is true about contracts in which $1 is offered as consideration? (select all answer options that are correct) a)$1 is accepted as consideration if the value of the goods do not exceed $500.00 b)$1 is accepted in the business community as consideration for a signed option contract. c)$1 is accepted as consideration in contracts that transfer title to deeds. d)$1 can never support a valid contract because it cannot be an inducement for taking on a legal detriment.

- $1 is accepted in the business community as consideration for a signed option contract - $1 is accepted as consideration in contracts that transfer title to deeds

Local hunter went onto Neighbor's land because deer had been seen there. Hunter knew that the land belonged to his neighbor and that it was posted against hunting. If Neighbor sues Hunter, (Select all that apply) a) Hunter may have to pay neighbor's court costs and attorney's fees b) Hunter will be required to share his venison c) Hunter may be liable for punitive damages. d) Hunter will be liable for willful trespass to land.

- Hunter will be liable for willful trespass to land - Hunter may be liable for punitive damages - Hunter may have to pay neighbor's court costs and attorney's fees

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for 35 per bushel. Which of the following actions would constitute a breach of the contract between Bay Crab and Jim? (select all answer options that are correct) a)Bay Crab buys crabs from another crabber. b)Jim works with another crabber and the other crabber sells all the crabs to another buyer c)Jim buys crabs from other crabbers at 25 per bushel so that he can sell them to Bay Crab at the contract price of 35 per bushel. d)Jim sells crabs to another buyer.

- Jim sells crabs to another buyer - Jim buys crabs from other crabbers at $25 per bushel so that he can sell them to Bay Crab at the contract price of $35 per bushel. - Jim works with another crabber and the other crabber sells all the crabs to another buyer

In which of the following circumstances would the remedy of rescission be used? (select all answer options that are correct) a)The contract was based on a mistake by the parties b)The contract term is longer than a year c)The contract was based on fraud d)One party to the contract is a minor who wishes to disaffirm the contract.

- One party to the contract is a minor who wishes to disaffirm the contract. - The contract was based on fraud - The contract was based on a mistake by the parties

Sally Seller deliberately misrepresented to Bill Buyer the condition of a wood chipper she sold him. The misrepresentation materially altered the value of the machine and obscured a safety hazard. What remedies are available to Bill Buyer in these circumstances? (select all answer options that are correct) a)Compensatory damages b)Punitive damages c)Rescission d)Discretionary damages

- Rescission - Compensatory damages - Punitive damages

A party has an affirmative duty to disclose information in a contract when: (select all answer options that are correct) a) The other party is acting in good faith b) The party had previously made misleading statements c) There is a fiduciary relationship between the parties d) The party is aware of material information that the other party cannot be expected to know

- The party had previously made misleading statements - There is a fiduciary relationship between the parties - The party is aware of material information that the other party cannot be expected to know

Which of the following statements is true about the use of the reasonable person standard in negligence cases? a) The reasonable person standard is based on adults over 30. b) The reasonable person of the standard takes on the physical characteristics of the defendant. c) The standard of care for the reasonable person would be less stringent in emergency situations. d) The reasonable person is presumed to have a minimum level of knowledge and common sense.

- The reasonable person is presumed to have a minimum level of knowledge and common sense - The reasonable person of the standard takes on the physical characteristics of the defendant - The standard of care for the reasonable person would be less stringent in emergency situations

Which of the following statements about assumption of the risk is true? (select all the answer options that are correct) a) A plaintiff's assumption of the risk must be voluntary. b) Traditionally, aA plaintiff who assumed the risk cannot recover damages from the defendant. c) A plaintiff's assumption of risk is statutory. d) A plaintiff must be aware of the particular risks associated with the activity.

- Traditionally, a plaintiff who assumed the risk cannot recover damages from the defendant - A plaintiff must be aware of the particular risks associated with the activity - A plaintiff's assumption of the risk must be voluntary

Which of the following statements is true about modifying contracts governed by the Code? (select all answer options that are correct) a) Modifications must be made in good faith b) The Code only allows modification of contracts that do not exceed $500.00 c) Parties may agree that all modifications to an existing contract must be in writing. d) No new consideration is required to modify an existing contract.

-Modifications must be made in good faith -Parties may agree that all modifications to an existing contract must be in writing. -No new consideration is required to modify an existing contract.

Which of the following is not an affirmative defense in a negligence suit? -contributory negligence -pure comparative negligence -modified comparative negligence

-contributory negligence -pure comparative negligence -modified comparative negligence

Al, Bill, Chad, and Dan were found jointly and severally liable for 100,000 of property damages caused when a fraternity got out of hand. Al, Bill, and Chad do not have the money to pay for their share of the damages. The only solvent defendant is Dan. The most that Dan will have to pay is a) 25,000 b) 100,000 c) 50,000 d)75,000

100,000

Which law governs the lease of the goods? a)2A of the Uniform Commercial Code b)The Convention on the Lease of Goods c)The Consumer Credit Act d)State common law

2A of the Uniform Commercial Code

In most states, children under the age of __________cannot be held liable for negligence. a)7 b)8 c)6 d)14

7

Jack and Jill have a one year contract that calls for Jack to make 4 deliveries of flour a month to Jill's bakery. The pattern of repeated deliveries under this one contract establishes a)A course of dealing b)A course of performance c)A usage of the trade d)A business condition

A course of performance

A person who occupies any position of trust and confidence in relation to another person or the property of another person is a(n) ______________. a) Executor b) Guardian c) Fiduciary d) Administrator

A fiduciary

Consideration in a bilateral contract always involves both a)A legal detriment and a legal impediment b)A legal benefit and a legal waiver c)A legal waiver and a legal renunciation d)A legal benefit and a legal detriment

A legal benefit and a legal detriment

Which of the following injuries would justify plaintiff using res ipsa loquitur? a)An automobile accident at a city intersection b)A head injury sustained in the pool of a waterslide at an amusement park c)A medical malpractice claim against a surgeon who left a sponge in a patient d)Res ipsa loquitur could be used in all of the above.

A medical malpractice claim against a surgeon who left a sponge in a patient

Which of the following promises would be legally adequate consideration in a bilateral contract? a)A promise not to sue someone on a claim that the promisor knows is not valid. b)A promise not to break the law c)A promise not to sue someone on a claim that the promisor believes in good faith is valid. d)A promise to do what one is already obligated by contract to do.

A promise not to sue someone on a claim that the promisor believes in good faith is valid

All property other than land is classified as a) Chattel b) Res personam c) Res ownership d) General intangibles

Chattel

Damages need not be proved in a defamation suit if the defamatory statement claims that: (select all the answer options that are correct) a)A person is mean to his neighbors b)A person has a loathsome disease c)A doctor is unfit to practice medicine d)A person holds political views that he in fact does not

A person has a loathsome disease A doctor is unfit to practice medicine

Which of the following sellers would be classified as a merchant under the Uniform Commercial Code?

A retail store that sells computers and other electronic devices

Which of the following forms of slander would not require that plaintiff show special damages? (Select all the answer options that are correct) a) A statement that restaurant served bad tasting food. b) A statement that someone had a sexually transmitted disease c) A statement that a female student was sexually promiscuous d) A statement that an accountant had stolen money from a client

A statement that someone had a sexually transmitted disease A statement that a female student was sexually promiscuous A statement that an accountant had stolen money from a client

To whom can a thief pass good title to stolen goods? a)A thief can pass good title to no one. b)Any purchaser or donee that does not have reason to know that the goods are stolen. c)Any buyer in the ordinary course of business d)Any good faith purchaser for value

A thief can pass good title to no one

Which of the following is not an element of a valid contract? a)Legal capacity of the parties to the contract b)Consideration c)A written document with notarized signatures d)Agreement

A written document with notarized signatures

Trial witnesses cannot be sued for defamation because the testimony of witnesses in trial is protected by a)Immunity b)Absolute privilege c)Judicial exception d)Qualified privilege

Absolute privilege

The purposes of nominal damages is to a) Determine beforehand the damages to be paid if there is a breach of the contract, b) Compensate the non-breaching party for the loss of the benefit of the bargain. c) Acknowledge that a right has been violated even though no monetary loss. resulted d) Punish and make an example of the breaching party.

Acknowledge that a right has been violated even though no monetary loss resulted

Juries use the "but for" test (i.e. "but for the negligent act of the defendant would the plaintiff have been injured") to decide if the requirement of __________________is met. a)Probable cause b)Proximate cause c)Actual cause d)Reasonable cause

Actual cause

The product defect in a strict liability suit can consist in

All of the above

The product defect in a strict liability suit can consist in a)A defective design of the product b)A lack of adequate instructions for using the product c)The use of components imported from a foreign country instead of components manufactured in the United States d)All the above

All of the above - A defective design of the product - A lack of adequate instructions for using the product - The use of components imported from a foreign country instead of components manufactured in the United States

Which of the following is a requirement for a valid contract?

All of the above - Offer and acceptance - Consideration - Legal capacity of the parties

Among the following, which party has a fiduciary responsibility?

All of the above - The executor of a will - The guardian of a minor child - The director of a corporation

Promissory estoppel is often used in which of the following business situations?

All of the above - When a contractor submits a bid in reliance on the bids of his subcontractors - When a businessperson reasonably relies on representations that he will get a franchise - When employees rely on employer promises about pensions and benefits

When does a party have an affirmative duty to disclose information in a contract?

All of the above - When there is a fiduciary relationship between the parties - When the party is aware of material information that the other party cannot be expected to know - When the party had previously made misleading statements

Promissory estoppel is best described as a) A contract remedy for breach of unilateral contracts. b) An equitable remedy when an accord and satisfaction fails. c) An equitable remedy when one party suffers an un-bargained-for detriment. d) A contract remedy for breach of bilateral contracts

An equitable remedy when one party suffers an un-bargained-for detriment.

How is promissory estoppel best described?

An equitable remedy when one party suffers an unbargained-for detriment

A party who enters into a contract with a minor has the same right as the minor to disaffirm the contract True False

False

For which of the following purchases could a minor disaffirm the contract and get the full purchase price back? (select all answer options that are correct) a) An iPod b) Necessary food c) Insurance d) Medicine

An iPod

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for $35 per bushel. This is an example of ___ contract

An output

The legal status of a contract entered into by a minor is ___________. a)Avoidable only by the minor b)Avoidable by either the minor or the other party to the contract c)Valid d)Void

Avoidable only by the minor

Bill is in the business of refinishing furniture. When Bill takes a piece of furniture from a customer for refinishing, he has the legal status of a (n) _________. a)Obligee b)Bailee c)Assignee d)Donee

Bailee

The party who takes possession of property belonging to another with the understanding that the property must be returned to the owner or delivered to a designated third party is a ____

Bailee

Bob promised to pave Sue's driveway and Sue promised to pay him $5000 when the work was completed. The contract between Bob and Sue is a __________________contract. a) Implied in law b) Bilateral c) Implied in fact d) Unilateral

Bilateral

Manny Manufacturer sent an e-mail to its widget supplier with this message: "Please confirm by return e-mail if you will be able to send me an additional ten dozen red widgets for the usual price by the thirtieth of this month." Supplier e-mailed back: "Yes, the additional widgets will be part of our delivery to you on the morning of the thirtieth." This exchange created what type of contract? a)Adhesionary b)Unilateral c)Bilateral d)Implied in law

Bilateral

Which of the following is the kind of contract in which each party offers as consideration a promise to do something?

Bilateral

Mutuality of consideration is a requirement for a n_________________. a)Firm offer under the Code b)Bilateral contract c)Unilateral contract d)Action for promissory estoppel

Bilateral contract

Vivian offered to buy Ben's violin for $2,000 and Ben accepted. Three days later Vivian gave Ben $2,000 in cash and Ben gave Vivian possession of the violin. Which of the following sets of terms best describes the contract between Vivian and Ben? a)Bilateral, express, valid and executed b)Bilateral, implied in fact, valid and partially executed c)Unilateral, implied in fact, avoidable and executory d)Unilateral, express, avoidable and executed

Bilateral, express, valid and executed

The document issued by a common carrier evidencing receipt of goods for shipment is an_________________. a) Bill of particulars b) Bill of attainder c) Invoice d) Bill of lading

Bill of lading

Cashing a check marked "paid in full" will create an accord and satisfaction only if: (select all answer options that are correct) a) Both parties know that the amount of the debt is in dispute. b) The original contract is in writing c) The debt has been sold to collection agencies d) The debt is unliquidated

Both parties know that the amount of the debt is in dispute. The debt is unliquidated

Traditionally landowners owe the highest duty of care to a) Business invitees b) Trespassers c) Invited guests d) Family members

Business invitees

Which of the following is true about goods sold under a sale or return contract? a)The goods must be used as consumer goods. b)Buyer's creditors have a claim to the goods while they in Buyer's possession c)Seller has the risk of loss until the goods are sold by the buyer. d)Seller has the risk of loss during the return shipment of the goods.

Buyer's creditors have a claim to the goods while they're in Buyer's possession

Which of the following defenses are available in product liability claims brought in strict liability? a)Comparative fault of the plaintiff. b)State of the art design and manufacturing processes c)Failure of the plaintiff to anticipate and guard against the product defect d)A and B

Comparative fault of the plaintiff

What is the primary purpose of tort law? a)Create precedents in the common law b)Compensate victims for their losses c)Support society by fining wrongdoers d)Punish wrongdoers

Compensate victims for their losses

Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. The difference between the cost of the carpet in the contract with Carl and the cost Bill had to pay the new vendor can be recovered from Carl as _________ damages

Compensatory

The damages that are awarded to a victim to make the victim "whole" are ____________ damages. a)Compensatory b)Consequential c)Nominal d)Punitive

Compensatory

Bill entered into a contract with Carl to supply him with carpeting. When Carl failed to deliver, Bill had to find similar carpeting for $5 a yard more than he would have paid to Carl. The difference between the cost of the carpet with Carl and the ...

Compensatory damages

Erin, an employee of Bob`s Construction Co., has a non-compete agreement with Bob that prevents her from working for any of his competitors for 3 years after she leaves his employment. Connie, a competitor of Bob's, is aware of the non-compete agreement between Bob and Erin. Connie offers to pay Erin 25% more than she is currently making with Bob, if she will come to work with her. Erin quits working for Bob. Bob loses several clients as a result of Erin leaving. What tort, if any, has Connie committed? a) Connie breached the non-compete agreement. b) Connie committed the tort of quiche. c) Connie committed the tort of negligence while hiring Erin. d) Connie committed the tort of intentional interference with a contract.

Connie committed the tort of intentional interference with a contract.

Another term for special damages is _______________ damages. a) Consequential b) Mitigated c) Nominal d) Compensatory

Consequential

Debbie, who owns an art gallery, lets regular customers take home prints and large works of art so they can "think about them" before buying. A customer who wants the print sends Debbie a check for the selling price. A customer who decides not to buy the work has 15 days to return it to Debbie. If the print is destroyed in a fire in the customer's home before the 15 day trial period expires, who bears the risk of loss? a)Debbie b)Customer, in quantum meruit for the fair value of the work c)Customer, for the full selling price d)Debbie, but only if she had been grossly negligent in the sale.

Debbie

Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. There was a time is of the essence clause in Bill's contract with Famous Restaurant. Bill was to lose 300day for each day after the contract date that he was late in finishing the renovation. The 300 day represented the profit Famous Restaurant would lose each day it was not in operation. Bill told Carl about this clause, impressing on Carl the need for him to deliver the carpet on time. Bill finished the renovation three days after the contract date. The delay was due solely to Carl's failure to deliver the carpet on time. Bill can recover the 900 he lost from Carl as ___________ damages. a)Punitive b)Consequential c)Nominal d)Liquidated

Consequential

Which element of a contract is met by a bargained-for exchange?

Consideration

In cases involving extensive injuries and a solvent or insured defendant, attorneys will be paid a percentage of the award if the case is successful. Fees structured this way are called _________fees. a) Contingent b) Participatory c) Deferred d) Shared

Contingent

Lawyers fees that give the lawyer a percentage of the amount awarded to the plaintiff if the plaintiff wins, and nothing if the plaintiff loses, are ________________fees. a)Compensatory b)Contingent c)Exemplary d)Per Diem

Contingent

The negligence doctrine that most favors the defendant is a)Negligence per se b)Contributory negligence c)Res ipsa loquitur d)Comparative negligence

Contributory negligence

Under which doctrine will a plaintiff who contributed to his or her own injuries recover nothing from a negligent defendant? a) Pure comparative negligence b) None of the above: an injured plaintiff will recover some amount in any case in which defendant's negligence is proved. c) Modified comparative negligence d) Contributory negligence

Contributory negligence

Tom took Ann's 125 Economics text from her locker without her knowledge and sold it back to the college bookstore, keeping the profits. Tom has committed the tort of a) Trespass to chattel b) Embezzlement c) Conversion d) Nuisance

Conversion

WireCo manufactures different types of electrical wires used in the building industry, and CopperCo has been one of its major suppliers for over ten years. If a court had to construe a contract between WireCo and CopperCo, it could use this ten year history of business transactions as evidence of a)Commercial reasonableness. b)Course of dealing c)Usage of trade d)Course of performance

Course of dealing

A duty is a legal obligation imposed by law or voluntarily assumed by promise True False

True

Wendy Witness testified for the plaintiff in a suit against Dan Defendant in which he was charged with fraud. The jury found for Dan. Dan wants to sue Wendy for defamation because the statements she made about him on the witness stand were found to be untrue. What result? a)Dan can sue Wendy for slander, but must prove actual damages. b)Dan can sue Wendy for libel because the transcript reduced the defamation to writing. c)Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness. d)Dan can sue Wendy for defamation, but must prove actual malice.

Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness

The earliest application of strict liability in American law was in cases involving which of the following? a) Dangerous animals b) Tobacco products c) Defective products d) Medical services

Dangerous animals

The doctrine of negligence per se applies in which of the following cases? a)Plaintiff voluntarily assumed the risk of the injury he suffered. b)Defendant driver caused a car accident by running a red light c)Defendant accountants have joint and several liability in tort cases d)Defendant surgeon left a sponge in a patient

Defendant driver caused a car accident by running a red light

If parties to a contract under the Code do not include in their agreement a price for the goods, a court will a) Determine a reasonable price for the goods based on the market at the time the contract was formed. b) Void the contract c) Determine a reasonable price for the goods based on the market at the time of delivery. d) Fix a price for the goods based on the cost of manufacture plus 10 seller's profit.

Determine a reasonable price for the goods based on the market at the time of delivery

Another term for promissory estoppel is a)Detrimental reliance b)Forbearance c)Good faith d)Restitution

Detrimental reliance

Steve enters into a contract with Diana for $3,000, to buy Steve's favorite drug, crack cocaine. Steve smokes all the crack cocaine and refuses to pay Diana. Diana sues Steve in court.

Diana will not recover because the sale of an illegal substance will not be enforceable in court

Once a contract has been ratified, the ratifying party loses the right to ________. a)Sue for compensatory damages. b)Exercise a product warranty protection. c)Disaffirm the contract. d)Reform the contract.

Disaffirm the contract

Competitor wrongfully claims that one of the ingredients used in the manufacture of Hungry Dog dog food contains melanine, which is poisonous to animals. Competitor has committed the tort of____________. a) Invasion of privacy b) Wrongful interference with a contractual relationship c) Nuisance d) Disparagement

Disparagement

Dan Dentist was selling the building in which his office was located so that he could relocate to a larger space. Ron, a very aggressive commercial real estate broker, told Dan that unless he gave Ron an exclusive one year contract to list the property, he would spread word in the community that Dan was selling his building to pay a large malpractice claim and that Dan had been liable in so many malpractice suits that no company would insure him. Dan believed that Ron would carry out this threat and signed the contract. Dan can rescind the contract based on a) Fraud b) Fiduciary malfeasance c) Undue influence d) Duress

Duress

Ted told Bob, the owner of Bob's Travel Agency that, unless Bob bought 10,000 worth of advertising from him, Ted will circulate false stories in the community that Bob had stolen clients' deposits. No one would be willing to book tours through Bob or make down payments with him. Bob agreed to the contract only because of Ted's threats, which he believed Ted was perfectly capable of carrying out. Bob could rescind this contract with Ted based on

Duress

Money awarded to an accident victim to make up for lost wages would be classified as ______________damages. a)Non-economic b)Economic c)Punitive d)Nominal

Economic

Mary and neighbor Beth had a bitter quarrel. Beth, a nurse, called Mary from the hospital in which she worked and told Mary that her husband and son had died in a car accident and their bodies were in the hospital morgue. In anguish, Mary rushed down to the hospital. Beth had made up the entire story because she wanted to cause Mary pain. Beth has committed the tort of a)False light b)Emotional distress c)Invasion of privacy d)Slander

Emotional distress

Ellen has a contract with Sue to buy her riding lawn mower for 200. Ellen has given Sue 200 in cash, and Sue has given Ellen possession of the mower. What is the status of this contract between Sue and Ellen? a)Illusionary b)Adhesionary c)Executory d)Executed

Executed

Another term for punitive damages is ___________damages. a)Inculpatory b)Criminal c)Exculpatory d)Exemplary

Exemplary

What is another term for punitive damages? a)Liquidated b)Exemplary c)Criminal d)Nominal

Exemplary

Compensatory damages would include all of the following except

Exemplary damages

A landowner traditionally owes the same duty of care to anyone who comes onto his property True False

False

Trader, a business located in Rutland, Vermont, is shipping goods from the Port of Boston to a customer in Oslo, Norway. The contract calls for Trader to deliver the goods and have them safely loaded on the ship, Lodestar. Trader's liability ends when the goods are on the ship. The contract will read a)F.O.B.Lodestar, Boston b)F.A.S.Lodestar, Boston c)F.A.S.Rutland, Vermont d)F.O.B.Oslo, Norway

F.O.B. Lodestar, Boston

Acme, a Dover, Delaware company, is to send widgets to a customer in Elmira, New York, under a destination contract. The contract will read a) F.O.B.Dover, Delaware b) F.A.S.Elmira, New York c) F.O.B.Elmira, New York d) F.A.S.Dover, Delaware

F.O.B.Elmira, New York

American Products, a Little Rock company, has a contract to send 150 dozen widgets to a customer in Bristol England aboard the container ship Pride of New Orleans. The contract requires American Products to deliver the widgets to the ship's dock and to put them into the hands of the dock master. American Products' liability ends when the dock master takes possession of the widgets. The contract between American Products and customer would read

FAS/Pride of New Orleans

A minor must pay the contract price for necessaries. True False

False

$1 is never legally adequate consideration in a contract because no one will willingly incur a legal detriment for $1 True False

False

A buyer who discovers that goods bought C.O.D. are defective has no recourse against the seller for the defective goods True False

False

A common carrier is an insurer of both the goods and the passengers it transports. True False

False

A common carrier would be liable in negligence for injuries to passengers only if it failed to exercise slight care. True False

False

A contract for a one year gym membership is a sale of goods under Article 2 True False

False

Plaintiff sued a National Football League team, alleging that she had been sexually assaulted by several team members in a hotel room after a game. Team offered the plaintiff a cash settlement in exchange for two promises: (1) plaintiff would never discuss publically the suit or the terms of the settlement; and (2) plaintiff would never again sue the team or the individual players on any claim connected with the incident. Agreeing not to exercise these legal rights constitutes ___________________. a)Accord and satisfaction b)Contract modification c)Forbearance d)Revocation

Forebearance

Palsgraf v. Long Island Rail Road is the landmark case that limited damages in negligence cases to those that are

Foreseeable

Frank bought a diamond ring for his girlfriend from Bill. Bill told him he had given the ring to his fianc, who returned it when she broke off the engagement. In fact, Bill had stolen the ring at a party. Frank had no reason to know or suspect that the ring was stolen. What is Frank's liability in these circumstances? a) Frank has committed embezzlement. b) Frank has committed conversion. c) Frank has committed no torts because he had no knowledge that the ring was stolen. d) Frank has committed conspiracy.

Frank has committed conversion.

Punitive damages are available for which of the following?

Fraudulent misrepresentation

Sally Seller deliberately misrepresented to Bill Buyer the condition of a wood chipper she sold him. The misrepresentation materially altered the value of the machine and obscured a safety hazard. If Bill wishes to avoid the contract, his best defense is a) Fraudulent misrepresentation b) Duress c) Unilateral mistake of value d) Innocent misrepresentation

Fraudulent misrepresentation

Which of the following would result in punitive as well as contract damages? a) Negligent misrepresentation b) Unilateral mistake of value c) Fraudulent misrepresentation d) Unilateral mistake of fact

Fraudulent misrepresentation

On Saturday, Bill Buyer paid Furniture World, a furniture retailer, 600 for a table. It was to be buffed and crated so that Bill could transport it home in his truck on Tuesday. On Monday the table was destroyed in a fire at Furniture World. Who bears the risk of loss? a)Bill, because he had title to the table at the time it was destroyed. b)Bill, because the table had been identified to the contract. c)Bill, because he chose to pick up the table and not have it delivered. d)Furniture World, because it is a merchant and Bill had not yet taken possession of the table.

Furniture World, it is a merchant and Bill had not yet taken possession of the table

If Mike owes a "slight duty of care" for property he is keeping for Doug, Mike would only be liable for damages to the property caused by a)Slight negligence b)Ordinary negligence c)Acts of God d)Gross negligence

Gross negligence

Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." To accept this offer, what should the students do? a) Make an oral promise to move the furniture on Saturday. b) Give Nellie a written promise to move the furniture on Saturday. c) Go to Nellie's house on Saturday and move the furniture. d) Wait a statutory three days after the offer, then give Nellie a written promise to move the furniture on Saturday.

Go to Nellie's house on Saturday and move the furniture.

Mike, a minor, sold his trail bike to Allen, an adult. Assume that Allen sold the bike to Ben Buyer, who paid cash and had no knowledge that Allen had purchased the bike from a minor. What kind of title does Ben have to the bike? a)Voidable title if Mike exercises his right to avoid the contract with Allen b)Good title c)Void title d)Voidable title if Allen exercises his right to avoid the contract with Mike.

Good title

Willful and wanton misconduct or conscious disregard for the safety of others constitutes ________________negligence. a)Slight b)Gross c)Per se d)Ordinary

Gross

Which of the following is an illusory promise?

I will go with you to the donkey basketball game if I can't think of anything better to do

Hilary sold Meredith a broach that had belonged to her mother. She told Meredith, in good faith, that it was a genuine cameo from the 1880's. In fact, it was a copy manufactured in the 1980's out of polymers. Meredith can rescind the contract based on a)Unilateral mistake of value b)Unilateral mistake of fact c)Fraudulent misrepresentation d)Innocent misrepresentation

Innocent misrepresentation

Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had belonged to her uncle. Sue told Ann that she thought the mower was about 3 years old. When getting parts for the mower, Ann learned that the mower was in fact 7 years old. Ann can rescind the contract based on a)Duress b)Innocent misrepresentation c)Fraudulent misrepresentation d)Undue influence

Innocent misrepresentation

For which of the following purchases would a minor have to pay the full contract price? (select all answer options that are correct) a) Insurance b) An iPod c) Medicine d) Car

Insurance

Big 60s British Rock Star had a contract to perform at Shady Pines Retirement Home, where many of his fans now lived. Sunnydale Retirement Village, a business rival, convinced Rock Star to breach his contract with Shady Pines and perform for them instead on that day. They offered him more money and promised to pay for any liability he might have to Shady Pines. For what could Shady Pines sue Sunnydale? a) Interference with a contractual relationship b) Nuisance c) Breach of contract d) Conversion

Interference with a contractual relationship

Company A has entered into a contract to acquire Company B. Hearing of this, Company C offers to acquire Company B for more money and to indemnify the directors of Company B for any damages resulting from its breaching its contract with Company A. Company A can sue Company C for the tort of a)Trespass b)Interference with contractual relations c)Interference with prospective advantage d)Breach of contract

Interference with contractual relations

Which of the following is not a necessary? a) Internet service b) Food c) Medical treatment d) Education

Internet service

Len, a local photographer, shot a photo of a family at the beach. Without their knowledge or consent, Len used the photo in all his ads and business cards and featured it prominently on his web page. Len has committed the tort of a) Invasion of privacy b) Trespass to personality c) Negligence per se d) Disparagement

Invasion of privacy

Pam and Sam took an overnight flight to Hawaii. Without their knowledge or permission, an agent from Big Ad Agency took a picture of them as they slept and used it in a full-page ad in a national magazine. The agency had superimposed an image of a man in a business suit, working on a laptop, sitting next to them. The caption read "Our Brokers Never Sleep." Pam and Sam could sue Big Ad for a)Public nuisance b)Invasion of the right to privacy c)Private nuisance d)Slander

Invasion of the right of privacy

Which of the following statements is true about an accord and satisfaction? a) It can only be used in liquidated debt contracts. b) It is only used in labor contracts c) It is only used in construction contracts. d) It can be used for unliquidated debts based on contract or tort claims.

It can be used for unliquidated debts based on contract or tort claims.

Which of the following statements about quantum meruit is correct? a)It is a contract remedy used when the breaching party is insolvent. b)It is a contract remedy used for breaches involving fraud. c)It is an equitable remedy to prevent unjust enrichment when there is no contract. d)It is an equitable remedy for wrongful interference with a contractual relationship.

It is an equitable remedy to prevent unjust enrichment when there is no contract.

Gene is bringing a suit in strict liability for personal injuries caused by a defectively designed hair dryer. Which of the following parties can be defendants in this case? (select all the answer options that are correct) a) Kamp;L Inc., who manufactured the hair dryer b) Electronic Designs, who designed the hair dyer c) Employee that sold it d) Big Retail Outlet who sold the dryer to Gene

Kamp;L Inc., who manufactured the hair dryer Electronic Designs, who designed the hair dyer

The term "scienter" means a)Mathematically calculated b)Let the buyer beware Knowing c)misrepresentation d)In a scientific manner

Knowing misrepresentation

The award of a very small amount of money, such as 1, acknowledges that a wrong has been done, even though there were no monetary losses. This award represents what type of damages? a)Nominal b)Punitive c)Liquidated d)Special

Nominal

Article 2A of the Code governs a) Sales of fixtures b) Leases of goods c) Consignments d) Sales of securities

Leases of goods

Barbara sues Mike to recover $10,000 for a breach of contract. Barbara is seeking a ___

Legal remedy

What is another term for strict liability? a) Reckless misconduct b) Liability without fault c) Gross negligence d) Criminal negligence.

Liability without fault

What is the difference between libel and slander? a)Libel is also a felony, but slander is not. b)Libel requires that plaintiff prove malice on the part of the defendant, but slander does not. c)Businesses can only sue for defamation based on libel, not slander. d)Libel is a written communication, and slander is an oral communication.

Libel is written communication, and slander is an oral communication

Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. What type of damages are these contractually fixed payments? a) Nominal b) Compensatory c) Liquidated d) Punitive

Liquidated

When there is a time is of the essence clause in a contract, the parties will normally also include in the contract a dollar amount that will be paid the innocent party each day it takes to complete the work after the contract date. This is an example of a __________________damages clause. a)Nominal b)Compensatory c)Consequential d)Liquidated

Liquidated

All of the following are economic losses except:

Losses from pain and suffering

The negligence committed by a professional, such as a doctor or a lawyer, in the conduct of his profession is ___ a) Negligence per se b) Malpractice c) Res ipsa loquitur d) Negligence ad hominem

Malpractice

Which of the following is not a good under Article 2 of the Code? a)A wheat crop that has not yet been planted b)Natural gas extracted from the ground by the buyer c)An unborn horse d)A farm tractor

Natural gas extracted from the ground by the buyer

Assume that Big Drug Company BDC was one of ten drug manufactures who produced and sold in the Cleveland area a drug that was found to cause cancer in women whose mothers had taken the drug while pregnant. Plaintiff cannot find out if the pills her mother took were actually manufactured by BDC, but she does know that BDC controlled 40 percent of the market for that drug in the Cleveland area when her mother was taking it. If a jury finds that plaintiff suffered 100,000 in damages, she will be able to collect 40,000 from BDC if her state follows the doctrine of ________________. (select all the answer options that are correct) a) Res ipsa loquitur b) Negligence per se c) Market share liability d) Joint Industry Liability

Market share liability

For which of the following purchases would a minor be liable to the seller for the fair value of the goods (not the contract price)?

Medicine

Bereaved had a dispute with Funeral Home over the costs of services for his father. When he left home the morning of the funeral, he found his father's embalmed body on his front door step. Bereaved has suffered prolonged sleeplessness and depression since then. Bereaved can sue Funeral Home for a) False imprisonment b) Mental distress c) Disparagement d) Invasion of privacy

Mental distress

Mike, a minor, bought a car from Used Car Lot for 6,000. Two months before he turned 18, the age of majority in his state, Mike decided he didn't want the car anymore and returned it to Used Car Lot. Mike had put 50,000 miles on the car. Applying the law followed by the majority of states, please select the statement that best describes Mike's rights int these circumstances

Mike would be entitled to get back the full 6,000 purchase price

Plaintiff's duty to take steps to lessen the damages that result from a defendant's breach of contract is the duty to ______________. a) Mitigate b) Ameliorate c) Abrogate d) Subrogate

Mitigate

Sam Student transferred to another college and had to leave his apartment with 5 months remaining on the lease. Landlord must try to find a suitable replacement tenant before he can sue Sam for damage because landlord has a duty to _____________damages. a)Mitigate b)Foresee c)Subrogate d)Ameliorate

Mitigate

Which of the following are affirmative defense in a negligence suit? (select all the answer options that are correct) a) Modified comparative negligence b) Contributory negligence c) Strict negligence d) Pure comparative negligence

Modified comparative negligence Contributory negligence Pure comparative negligence

To which of the following can the development of negligence law in the nineteenth century can be traced? a)Widespread land reform laws b)Increased travel opportunities for individuals c)Population increases d)More and more manufacturers creating more types of products

More and more manufacturers creating more types of products

In a negligence suit, plaintiff must prove all of the following except a) Proximate cause b) Duty of care c) Motive d) Actual cause

Motive

Goods which are required for maintaining life or health are classified as a)Sustenance b)Obligatories c)Res in chose d)Necessaries

Necessaries

Defendant's failure to do what a reasonable and prudent person would do in his circumstances subjects him to liability for a) Fraud b) Defamation c) Negligence d) Strict liability

Negligence

Susan owns a pizza delivery franchise. She decides to make changes to her pizza making process. Her changes decrease the care and quality control of the care of the ingredients that need to be refrigerated. Several of her customers end up getting food poisoning. What does she have the greatest risk of being sued for? a) Fraud b) Assault c) Negligence d) A cheesy delivery

Negligence

Susan owns a pizza delivery franchise. She decides to make changes to her pizza making process. Her changes decrease the care and quality control of the care of the ingredients that need to be refrigerated. Several of her customers end up getting food poisoning. What does she have the greatest risk of being sued for? a) Negligence b) Assault c) Fraud d) A cheesy delivery

Negligence

The majority of private law suits filed in the United States are for ______________claims. a)Negligence b)Medical malpractice c)Vicarious liability d)Nuisance

Negligence

The majority of tort cases in the United States are ________________cases. a)Negligence b)Nuisance c)Strict liability d)Intentional tort

Negligence

Vidal So-SueME makes hair shampoo and sells it through retailers. One of its plant managers increases the production of the shampoo by cutting back on the standard quality control checks in the industry. Unfortunately, a significant number of their bottles of shampoo has too much "scalp chemical" and is causing people to go bald. Under what legal theory is Vidal most at risk. a) Fraud b) Express liability c) Strict intentional liability d) Battery e) Negligence

Negligence

Assume that Sussex County has a law requiring that all passenger elevators be inspected every six months. Local Hospital failed to have its passenger elevator inspected when required, and a door that malfunctioned injured a hospital visitor. Visitor's attorney will use the doctrine of ________________to show that Local Hospital breached a duty of care. a) Negligence per se b) Malpractice c) Contributory negligence d) Res ipsa loquitur

Negligence per se

Under common law, modifications to existing contracts require ___________to be enforceable. a)Forbearance by the injured party b)An accord and satisfaction c)Restitution under the original contract d)New consideration

New consideration

Under 402A of Restatement (Second) of Torts, would Alice be liable to her neighbor Sue if the riding mower she sells Sue is defective and causes Sue bodily injury? Alice is a college professor and has used the mower for two years without any reason to suspect it was defective.

No, Alice is not a seller engaged in the business of selling riding mowers

Brenda was the lead detective assigned to investigate the murder of a prominent local businessman. A local civic group offered a 10,000 reward to anyone who provided information leading to the arrest and conviction of the murderer. The murderer was found, tried, and convicted largely due to Brenda's efforts. Can Brenda collect the reward? a) No, Brenda had a preexisting contractual duty to find and try to convict the murderer. b) Yes, the reward was a bargained-for benefit. c) Yes, the civic group had both a legal detriment and a legal benefit under the contract. d) Yes, this is a unilateral contract and Brenda performed the requested action.

No, Brenda had a preexisting contractual duty to find and try to convict the murderer.

Valerie Vet accidentally left the back door to her pet clinic open and Cuddles, a canine patient, escaped. Cuddles ran around in the road and in an adjacent field until she was found and returned to the clinic half an hour later, completely unharmed. Is Valerie liable to Cuddles' owner for negligence? a)Yes, Valerie Vet breached a duty of care to her patient. b)No because Cuddles suffered no injury while she was free. c)Yes, it is foreseeable that an unleashed dog will run out of an open door. d)Yes, allowing a dog to run loose for half an hour constitutes gross negligence.

No, because Cuddles suffered no injury while she was free

Mary saw two boys swimming across a river she knew had a deep and dangerous channel. She did not warn the boys or try to stop them. If one of the boys were injured, could Mary be sued for negligence? a) Yes, because she owed them an enforceable moral duty b) Yes, because the danger to the boys was foreseeable c) Yes, because all adults have a duty of care to all minors d) No, because Mary had no duty of care to the boys

No, because Mary had no duty of care to the boys

Kelly received a cookbook in the mail that she had not ordered. The packing slip read: " Return this book to the publisher within 14 days or send a check for 35 to the address below." Kelly did not return the book within the 14 days and she has not sent the money as requested. Is Kelly required to pay for the cookbook? a)Yes, the publisher made an offer for a unilateral contract, which Kelly accepted by not returning the book as instructed. b)Yes, there is an implied-in-law contract and Kelly must pay for the book to prevent unjust enrichment. c)No, federal law allows Kelly to treat the unsolicited book as a gift, and she may do whatever she wants with it. d)Yes, when Kelly did not return the book, her conduct created an implied-in-fact contract to which she is bound.

No, federal law allows Kelly to treat the unsolicited book as a gift and she may do whatever she wants with it

Do you think the bikini women going crazy in the Burger King video was a foreseeable act?

No, if there had never been incidences like this before

Sid Salesman sold Bea Buyer a used 2004 Camry for 8,000. The morning after the contract was signed, Sid called Bea to say that he had forgotten that the dealership would not let that Camry go for less than 9,000 so she would have to pay an additional 1,000 if she wanted the car. Is Bea liable for the extra 1,000? a)No, this was a unilateral mistake of fact by Sid b)Yes, this was a bilateral mistake of fact c)Yes, Sid has the defense of economic duress. d)Yes, this was a unilateral mistake of fact by Sid

No, this was a unilateral mistake of fact by Sid

Fred, in desperate need of quick money, sold his new Key West boat for less than market value to a good faith purchaser. Does Fred have any basis for rescinding the contract? a)Yes, undue influence b)Yes, bilateral mistake of value c)No, this was a valid bargained for exchange d)Yes, economic duress

No, this was a valid bargained for exchange

Having lost his job in the recent recession and facing property taxes that were past due, Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser for value at a price that was well below its market value. Ed now regrets this decision and asks if he has any legal basis for rescinding the contract. Please advise Ed. a) No, this was a valid bargained for exchange with a good faith purchaser for value. b) Yes, he van rescind the contract based on innocent misrepresentation c) Yes, he can rescind the contract based on a unilateral mistake of value. d) Yes, he can rescind the contract based on economic duress

No, this was a valid bargained for exchange with a good faith purchaser for value.

Benny bought shares in Big Chip Maker BCM when the shares were trading for 37 a share. For the past 9 years BCM shares have not traded above 21. Can Benny rescind his purchase based on failure of consideration? a) Yes, he clearly gave more value than he received. b) No, unless he was induced into buying the shares through fraud or other wrongdoing. c) Yes, he suffered an economic detriment d) Yes, there is a difference in value sufficient to trigger the adequacy of consideration rule.

No, unless he was induced into buying the shares through fraud or other wrongdoing.

Jerry agreed to sell Marge 12 cartons of cigars. Jerry then watched a commercial and decided he would never sell tobacco again. Marge was able to buy the cigars from Alan for the same price. Marge sues Jerry for breach of contract. What type of damages can she recover from Jerry?

Nominal

Which of the following statements about nominal consideration is correct? (select all answer options that are correct) a)Nominal consideration is any small amount paid over and above the contract price for document preparation b)Nominal consideration will support an enforceable contract. c)Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration. d)Nominal consideration is another term for sham consideration.

Nominal consideration will support an enforceable contract Nominal consideration is any small amount paid over and above the contract price for document preparation

Mary, concerned with antibiotics and chemicals in the food supply, started to raise pigs in the backyard of her suburban home. She now has fourteen pigs that produce a significant amount of solid waste, which attracts insects and smells very bad. There are no town or county ordinances that specifically forbid raising pigs. Her neighbors should challenge her right to engage in this activity based on the tort of a) Intentional interference with a prospective business advantage b) Trespass to land c) Nuisance d) Intentional infliction of emotional distress

Nuisance

Sam's neighbor has opened a shooting range on his property. This is an entirely legal enterprise, but Sam hears guns shots 10 hours a day, cannot hear his television or talk on the phone. What tort, if any, is neighbor committing? a) Nuisance b) Trespass c) Neighbor is committing no tort conducting a legal enterprise. e) Invasion of property

Nuisance

Sam's neighbor has opened an animal rescue on his property. This is an entirely legal enterprise, but Sam hears animals barking, squaking, screaming, etc... 24 hours a day, cannot hear his television or talk on the phone. What tort, if any, is ...

Nuisance

The person to whom an offer to form a contract is made is called the___________. a)Donee b)Obligor c)Offeree d)Offeror

Offeree

The person who makes an offer to form a contract is the ______________. a) Donor b) Maker c) Offeror d) Offeree

Offeror

Under which of the following is a contract voidable? a)Consideration is missing. b)The contract was not executed under seal. c)One of the parties has the option to set aside the contract. d)Agreement is missing.

One of the parties has the option to set aside the contract

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for 35 per bushel. This is an example of a n ___________contract. a) Implied in law b) Requirements c) Unilateral d) Output

Output

National Chip Company has contracts with numerous farmers in which it agrees to buy all the potatoes the farmers harvest and the farmers agree to sell their potatoes only to National Chip Company. The contracts between the farmers and National Chip Company are ________________contracts. a)Requirements b)Option c)Farm subsidy d)Output

Output

The famous American case that established that a defendant can be liable in negligence only for those damages that are foreseeable is

Palsgraph v Long Island Railroad Co.

Sue bought a painting from Neda, who had inherited it and was not in the business of selling art. Sue gave Neda a check and Neda tendered delivery simultaneously. Sue asked if she could pick up the painting later in the day. Through no fault of Neda's, the painting was stolen before Sue returned. The risk of loss in these circumstances a) Passed to Sue on Neda's tender of delivery b) Remained with Neda because she was the seller. c) Would not pass to Sue until her check cleared. d)Remained with Neda because Sue had not yet taken possession of the painting.

Passed to Sue on Neda's tender of delivery

Val bought a freezer from Neighbors who were remodeling their kitchen. Val gave Neighbors a check, and Neighbors told Val that she could take the freezer. Val asked if she could pick up the freezer over the weekend instead, when she could borrow her brother's truck. Neighbors agreed. Before Val could pick up the freezer, however, it was destroyed when faulty wiring caused a fire in Neighbors' kitchen. In these circumstances, the risk of loss a) Passed to Val when Neighbors tendered delivery. b) Remained with Neighbors because they were the sellers. c) Would not pass to Val until her check cleared. d) Remained with Neighbors because Val had not yet taken possession of the freezer.

Passed to Val when Neighbors tendered delivery.

Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. If the amount fixed for the damages is unreasonably high, the court will consider it a ________________and will not enforce it. a) Penalty b) Crime c) Act of extortion d)Tort

Penalty

Under the Code, a consignment is treated like a a) Sale on approval b) Lease c) Sale or return d) Installment sales contract.

Sale or return

In early product liability cases, a consumer injured by a defectively manufactured product could only sue the retailer who sold her the product. The retailer would then sue the distributor, who would sue the manufacturer. This doctrine that makes the immediate seller the only defendant is called ___ a) The McNabb rule b) Privity c) Warranty restriction d) Sellers liability

Privity

Allison, who raises horses, promised to give her friend Gil a pony for his daughter. She advised Gil that he would need to enclose a section of his property and recommended a specific type of fencing. Gil bought the recommended materials and had the fence built on his property. Allison now refuses to give Gil the pony. Allison will be liable to Gil for the cost of fencing his property based on the theory of a)Contract modification b)Restitution c)Contract rescission d)Promissory estoppel

Promissory Estoppel

Detrimental reliance is another term for a)Promissory estoppel b)Good faith c)Forbearance d)Renunciation

Promissory Estoppel

The tort of invasion of the right to privacy A. Requires in all cases that malice be proved as an element B. Requires that actual damages be demonstrated C. Requires that some form of defamation have occurred D. Protects individuals from the shame and humiliation of having private aspects of their lives exposed to the public

Protects individuals from the shame and humiliation of having private aspects of their lives exposed to the public

The question "was the harm foreseeable?" is used to establish __________cause. a)Reasonable b)Probable c)Actual d)Proximate

Proximate

Exemplary damages are also known as _________________ damages. a) Punitive b) Compensatory c) Consequential d) Nominal

Punitive

Assume that plaintiff was 60 percent responsible for his own injuries. He would be able to recover the 40 percent of his injuries caused by the negligent defendant if the state which hears the case follows the doctrine of____________________. a) Pure comparative fault negligence b) Contributory negligence c) Modified comparative fault negligence d) Situs negligence

Pure comparative fault negligence

After reaching the age of majority, if a party does nothing to disaffirm a contract entered into while a minor, his silence will _____________the contract. a) Dissolve b) Void c) Ratify d) Disaffirm

Ratify

Beth agreed to buy Sam's home for $400,000. After both parties had signed the contract, which was prepared by the real estate agent, it was discovered that the property was listed on the contract as 1200 Elm Street instead of 200 Elm Street, the actual house number. What is the remedy courts use?

Reformation

Beth agreed to buy Sam's home for 400,000. After both parties had signed the contract, which was prepared by the real estate agent, it was discovered that the property was listed on the contract as 1200 Elm Street instead of 200 Elm Street, the actual house number. The remedy courts use to correct mistakes like this in contracts is a) Reformation b) Restitution c) Respondeat superior d) Rescission

Reformation

Big Equipment Company sold a tractor-scraper to Ace Paving for $125,000. Ace made a down payment of $25,000 and agreed to pay the balance to Big Equipment in monthly installments at 4% interest. In typing up the contract, some of the digits in the vehicle identification number were inadvertently transposed. Ace has stopped making its monthly payments and Big Equipment wants to sue Ace, but it must first put the correct VIN in the contract. The remedy courts use to correct contract errors like this is _______________. a)Rescission b)Specific performance c)Restitution d)Reformation

Reformation

Which of the following is false about a renunciation? a)Renunciations are valid in common law but not under the Code b)The right that is waived in a renunciation is a contract right. c)A written renunciation does not require consideration. d)An oral renunciation does require consideration.

Renunciations are valid in common law but not under the Code

Big Oil Company has a contract with homeowner to deliver however much heating oil homeowner needs for the fall and winter seasons. This is an example of a(n) __________________contract. a)Unilateral b)Consumer lease c)Output d)Requirements

Requirements

The doctrine that creates a rebuttable presumption that a defendant was negligent based on the nature and circumstances of the injury is a) Contributory negligence b) Malpractice c) Res ipsa loquitur d) Negligence per se

Res Ipsa Loquitur

Dr. Dan accidentally left a scalpel in Paul Patient during Paul's operation, causing Paul much pain and necessitating additional surgery. Paul's lawyer will most likely use the special doctrine of ____________when he sues Dr. Dan for negligence. a) Superseding cause b) Res ipsa loquitur c) Contributory negligence d) Negligence per se

Res ipsa loquitur

Betty Buyer discovers that the pin she bought from Sally Seller is not a ruby as Sally had claimed. She believes that Sally's misrepresentation was innocent, but she wants to get her money back. The contract remedy Betty should seek is a) Specific performance b) Rescission c) Consequential damages d) Replevin

Rescission

The doctrine under which employers are liable for torts committed by employees while they are acting within the scope of their employment is ___ a) Negligence per se b) Respondeat superior c) Res ipsa loquitur. d) Joint and several liability

Respondeat superior

Betty Buyer discovers that the pin she bought from Sally Seller is not a ruby as Sally had claimed. She believes that Sally's misrepresentation was innocent, but she wants to get her money back. In order to get her money back, Betty will have to return the pin to Sally. This is the duty of a)Replevin b)Compensation c)Restitution d)Reformation

Restitution

The contract remedy that requires that each party return whatever has already been received of value is ___

Restitution

Debbie, who owns an art gallery, lets regular customers take home prints and large works of art so they can "think about them" before buying. A customer who wants the print sends Debbie a check for the selling price. A customer who decides not to buy the work has 15 days to return it to Debbie. This arrangement is classified as an ____________. a) Sale on approval b) Installment sales contract c) Sale or return d) Consignment

Sale on approval

Phil saw an oriental rug in CarpetStore that he thought might look good in his foyer. CarpetStore let Phil take the rug home to try. If he liked the rug, he would send CarpetStore a check for the purchase price. If he didn't like the rug, he would return it to the store. This arrangement is classified under the Code as a (n) _________________. a) Contingent sale b) Consignment sale c) Sale on approval d) Sale or return

Sale on approval

Mary runs a clothing store at a ski resort. She is approached by Sally who has several dozen funky hand knit ski caps she would like Mary to buy to sell in her store. Mary agrees on the condition that Sally take back any unsold hats at the end of the season. This agreement is an __________________. a)An installment sales contract b)An unenforceable promise c)Sale or return d)Sale on approval

Sale or return

In a fraudulent misrepresentation suit, the plaintiff must prove that the defendant knowingly misrepresented a material fact. The legal term for the defendant's knowing or reckless misrepresentation is __________. a)Scienter b)Malum in se c)Malum prohibitum d) Mens rea

Scienter

Which of the following elements is present in fraudulent misrepresentation but not in innocent misrepresentation? a) Misrepresentation of a material fact b) Economic damage to the innocent party c) Scienter d) Reasonable reliance by the innocent party

Scienter

Seller, a Chicago business, sent a shipment of tractor parts to Buyer, a Detroit business, under a contract that read: "F.O.B.Chicago, Illinois." The parts were not those specified in the contract and Buyer rejected them. A few hours after Buyer notified Seller of the rejection, the parts were destroyed in a fire at Buyer's place of business. Which of the following best states the rights and duties of Buyer and Seller in this situation? a) Buyer rightfully rejected the tender, but risk of loss did not pass to Seller again until Seller regained physical possession of the goods. b) Buyer has the risk of loss because this was a shipment contract. c) Seller has the risk of loss because this was a destination contract. d) Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss.

Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss.

Brown & Son's of Easton, Maryland, has a contract to sell 250 computers to Community College in Onley, Virginia. The contract reads: "F.O.B.Easton, Maryland. This is a _______________ contract. a)Concurrent b)Constructive c)Destination d)Shipment

Shipment

On Monday, Agnes bought and paid for a sofa from SofaStore. SofaStore offers free furniture delivery, but the first available delivery date was Thursday. On Wednesday the sofa was destroyed in a fire at SofaStore. Who bears the risk of loss? a) Agnes, if her check had cleared; SofaStore, if the check had not yet cleared. b) SofaStore, because it is a merchant and Agnes had not yet taken possession of the sofa. c) Agnes, because she had title to the sofa when it was destroyed. d) Agnes, because the sofa had already been identified to the contract

SofaStore, because it is a merchant and Agnes had not yet taken possession of the sofa.

What is another term for consequential damages? a)Nominal b)Special c)Punitive d)Liquidated

Special

If the seller of a parcel of real property breaches and refuses to sell, the best legal remedy for the buyer who wants this particular piece of property is a) Compensatory damages b) Restitution c) Specific performance d) Consequential damages

Specific performance

June was hired to be the store manager of Big Kahuna Surf Shop in Ocean City. The law governing this employment contract is a) Equitable principles and maxims. b) The Convention on the International Sale of Goods c) The Uniform Commercial Code d) State common law

State Common Law

The Garcia family hired Home Improvements, Inc., a local construction company, to put an addition on their home. What type of law governs the contract between the Garcia's and Home Improvement? a) Federal common law b) State common law c) The Uniform Commercial Code d) The Sarbanes-Oxley Act

State common law

Vidal So-SueME makes hair shampoo and sells it through retailers. One of its plant managers increases the production of the shampoo by cutting back on the standard quality control checks in the industry. Unfortunately, a significant number of their bottles of shampoo has too much "scalp chemical" and is causing people to go bald. Under what legal theory is Vidal most at risk. a) Strict Tort Product Liability b) Fraud c) Strict intentional liability d) Express liability e) Battery

Strict Tort Product Liability

Famous Felines is a nightclub act featuring trained lions and tigers. After years of successful and highly popular performances, one of the lions suddenly attacked a spectator sitting in the audience. Famous Felines' liability to the injured spectator will be based on___________. a)Gross negligence b)Criminal negligence c)Ordinary negligence d)Strict liability

Strict liability

Which of the following theories of liability does not involve wrongdoing by the defendant? a)Duress b)Negligence c)Strict liability d)Intentional torts

Strict liability

Iris was at fault in a car crash in which Phil was injured. As they waited for the EMT's to arrive, a plane, which was part of a nearby air show, crashed into Phil, significantly increasing his injuries. Iris will not be liable for this second set of injuries because the plane crash was a(n) a)Proximate b)Superseding c)Foreseeable d)Legal

Superseding

Which of the following is not an element of negligence that must be proved by a plaintiff? (select all the answer options that are correct) a)Actual cause b)Superseding cause c)Minor cause d)Proximate cause

Superseding cause Minor cause

Ted stole a Rolex watch from the locker room of the gym he belonged to. Ted sold the watch to Sonny, who gave value and had no reason to suspect that the watch was stolen. Sonny gave the watch to Dad for Father's Day. Which of the following accurately represents the chain of title for the watch?

Ted has void title; Sonny has void title; Dad has void title.

Which of the following statements about the Uniform Commercial Code is false? (select all answer options that are correct) a) The Code is only concerned that a contract reflect a freely bargained for exchange; it does not look to see if the contract provisions are one-sided or unconscionable. b) The Code allows the parties to a contract to require that any modifications to the contract be in writing. c) The Code allows only merchants to be bound by firm offers not supported by consideration. d) The Code provides for a reasonable price if price is not included in the contract

The Code is only concerned that a contract reflect a freely bargained for exchange; it does not look to see if the contract provisions are one-sided or unconscionable

In an accord and satisfaction, the accord is a) The old agreement b) The liquidated portion of a debt. c) The performance of the action called for in the substitute agreement. d) The substitute agreement

The Substitute Agreement

John bought a dishwasher from Local Appliance Store. What type of law governs the contract between John and Local? a)Federal common law b)State common law c)The Uniform Commercial Code d)The Sarbanes-Oxley Act

The Uniform Commercial Code

Todd bought a lawn tractor from LawnToysRus. The law that governs this sales contract is a)The Uniform Commercial Code b)The Convention on the International Sale of Goods c)State common law d)Federal common law

The Uniform Commercial Code

Under which of the following circumstances will cashing a check marked "paid in full" create an accord and satisfaction? a)The check is for a lesser sum that the amount due on a liquidated debt. b)The check is in payment of a court judgment. c)The check is for an unliquidated debt and both parties know of the dispute. d)The check is for any transaction governed by the Code.

The check is for an unliquidated debt and both parties know of the dispute

Which test do courts use to decide if the contract of a person who has not been adjudicated insane can be avoided because of mental incompetence? a)The court will use the state's test for testamentary competence. b)The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time performance is due. c)The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract was formed. d)The court will use the state's test for commitment to a mental institution.

The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract was formed

Which of the following statements about libel is false?

The defamatory statement may be either false or true but of a highly personal and intrusive nature

Which of the following describes the duty of a landowner to a trespasser under the common law? a)The duty to warn of hidden dangers b)The duty to make certain that the premises are absolutely safe c)The duty not to entrap the trespasser on the premises d)The duty to warn of obvious dangers

The duty not to entrap the trespasser on the premises

Gross negligence is defined as

The failure to exercise even slight care

The term F.A.S. in a contract indicates that a)The buyer paid the cost of insuring the goods. b)The goods are being shipped by a merchant vessel c)The buyer is a merchant d)The seller is a merchant

The goods are being shipped by a merchant vessel

A buyer does not have the right to inspect goods before paying for them if a)None of the above is true: Buyers always have the right to inspect goods before paying for them. b)The goods are sent C.O.D. c)The goods are sent under a destination contract. d)The goods are sent under a shipment contract.

The goods are sent C.O.D.

Which of the following statements is false about sale or return contracts? a)Buyer has the risk of loss until the goods are sold b)Buyer has the risk of loss during shipment of the goods back to the seller. c)The goods must be used as consumer goods. d)The goods are subject to claims by the buyers creditors while they are in his possession.

The goods must be used as consumer goods

Which of the following statements about a minor's purchase of necessaries is false? a)The minor must pay the reasonable value of the goods or services. b)The minor is liable in quasi contract to the seller. c)The minor must pay the contract price of the goods or services. d)The minor may not disaffirm the contract.

The minor must pay the contract price of the goods or services

Law enforcement officers are normally not allowed to collect reward money offered for the capture and conviction of criminals because: (select all answer options that are correct) a) The officers are able to accept rewards, but the officer would have to deduct their pay from the amount of any reward received b) Accepting a reward would violate principles of promissory estoppel. c) The officers have a preexisting legal duty to apprehend criminals. d) The officers have a preexisting moral duty to apprehend criminals.

The officers have a preexisting legal duty to apprehend criminals

In an accord and satisfaction, the satisfaction is a)The payment of accrued interest. b)The performance of the action called for in the substitute agreement. c)The performance of the action called for in the original agreement. d)The liquidated portion of a debt.

The performance of the action called for in the substitute agreement

An offeree is

The person to whom the offer to form a unilateral or bilateral contract is made

Under the Code, goods are "tendered" when a) The buyer pays for the goods b) The seller makes the goods available to the buyer and gives him notice that they are available. c) Both a and b are necessary for tender of delivery. d) The buyer takes physical possession of them

The seller makes the goods available to the buyer and gives him notice that they are available.

If goods are destroyed while in the buyer's possession, and the buyer holds the goods under a sale on approval contract, the loss will fall on a) The buyer and the seller equally b) Whichever party has insured the goods. c) The buyer only d) The seller only

The seller only

Unless the contract provides otherwise, place of deliver is assumed to be a)The common carrier nearest to the seller b)The buyer's place of business c)The seller's place of business. d)The storage facility nearest to the buyer.

The seller's place of business

A buyer has the right to inspect good before paying for them unless a)The buyer is paying by cashier's check b)A destination contract is involved c)The shipment is C.O.D. d)A shipment contract is involved

The shipment is C.O.D.

A court will order the remedy of specific performance only if: (select all answer options that are correct) a) One of the parties to the contract is a minor. b) The terms of the contract are unclear. c) Money is not involved d) The subject matter of the contract is unique and the innocent party cannot be made whole with money damages.

The subject matter of the contract is unique and the innocent party cannot be made whole with money damages

Which of the following could be argued by the defendant in a product liability case based on strict liability to limit the dollar amount of the damages awarded to the plaintiff? (select all the answer options that are correct) a)The user was careless or misused the product. b)The product was based on state of the art design. c)The product was sold more than one year prior to the injury d)The manufacturer exercised all reasonable care in the manufacture of the product.

The user was careless or misused the product. The product was based on state of the art design. The manufacturer exercised all reasonable care in the manufacture of the product.

If goods are sold under a negotiable warehouse receipt, risk of loss passes to the buyer when a)The buyer takes possession of the goods b)The goods are tendered to the buyer. c)The warehouse receipt is tendered to the buyer d)The buyer pays for the goods.

The warehouse receipt is tendered to the buyer

An accord and satisfaction can take place only if a)Promissory estoppel is not available as an equitable remedy. b)There are unliquidated debts based on contract or tort claims. c)The liquidated debts do not exceed $250,000. d)Court annexed arbitration fails.

There are unliquidated debts based on contract or tort claims

Which of the following is NOT an element of promissory estoppel?

There must be an underlying enforceable bilateral contract

Which of the following is/are not an element of promissory estoppel? (select all answer options that are correct) a) There must be an underlying enforceable bilateral contract. b) The promissor must foresee that the promissee would rely on the promise. c) The promisee suffered damages as a result of reasonably relying on the promise d) The promissee did in fact reasonably rely on the promise.

There must be an underlying enforceable bilateral contract.

Famous Chef told Shrimp Boat Captain: "I will buy your catch if I think the shrimp are large enough". What is the status of this promise?

This is a valid promise because the chef must make the decision in good faith

Famous Chef told Shrimp Boat Captain: I will buy your catch if I think the shrimp are large enough." What is the status of this promise? a) This is a valid promise because the chef must make the decision in good faith. b) This is an illusory promise for a contract but a valid promise for promissory estoppel. c) This is an illusory promise because the chef has complete control over whether or not he will keep the promise. d) This is a valid promise because size is a quantifiable term.

This is a valid promise because the chef must make the decision in good faith.

A contract entered into by a minor is voidable at the option of the minor True False

True

"Good faith" in the code means honesty in fact in the transaction. True False

True

A bilateral mistake of fact is grounds for rescinding the contract True False

True

You are walking down Lexington Ave and come upon a grocery stand filled with apples under a sign stating 35 cents per apple. You pick up one and take a bite. At that moment, an implied in fact contract is created, largely based on conduct True False

True

Mary left her iPad at a local restaurant and offered a reward for its return. Mary made an offer to form a (n) _________________contract. a)Bilateral b)Implied in law c)Unilateral d)Implied in fact

Unilateral

Larry Lawyer entered into a contract to buy land from a client at well below market value. The client was elderly and trusted Larry as his lawyer and son of his best friend to be fair and give him good advice. Client can rescind the contract based on a) Unilateral mistake of value b) Duress c) Unilateral mistake of fact d) Undue influence

Undue influence

Liz read the following announcement in the newspaper: "100 reward for the return of my lost dog, Duffy." This announcement is an offer to form what type of contract? a)Bi-lateral b)Unilateral c)Quasi d)Implied in law

Unilateral

Six months after being adjudicated insane, Connie signed a contract for premium cable service. The legal status of this contract is a) Void b) Valid c) Voidable by Connie d) Voidable by Connie or Cable Company

Void

The legal status of a contract entered into by someone who has been adjudicated insane is __________. a)Valid b)Void c)Avoidable only by the person adjudicated insane d)Avoidable by either party to the contract.

Void

Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith purchaser for value (GFP). Under the Uniform Commercial Code, Buyer took ____________title from Kevin, and transferred _________________title to the GFP. a) Voidable-------------------------------Good b) Void-------------------------------------Good c) Good-----------------------------------Good d) Voidable-------------------------------Voidable

Voidable ---- Good

Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is a)Voidable by Mike b)Void c)Valid d)Voidable by Mike or e)Allen

Voidable by Mike

Jacob inherited his grandfather's farm when he was 16. He sold the farm to Buyer, who in turn sold it to a good faith purchaser for value (GFP). Under the common law, Buyer took ________ _____________title from Jacob, and transferred ___________title to the GFP. a) Voidable-------------------------------Good b) Good------------------------------------Good c) Voidable-------------------------------Voidable d) Void-------------------------------------Good

Voidable----Voidable

The document issued by a storage facility acknowledging that goods have been accepted for storage is a ________________. a)Commercial acceptance b)Warehouse receipt c)Trade assignment d)Bill of lading

Warehouse receipt

If goods are being sold under a negotiable document of title, such as a bill of lading, when does risk of loss pass to the buyer?

When the document is tendered to the buyer

An illusory promise is created when a)The promise is conditional on an event happening first that is outside the promissor's control. b)The promise is conditional on any other event happening first. c)The promise cannot be performed within 1 year of the contract date. d)The promise is conditional on an event happening first that is totally within the promissor's control.

When the promise is conditional on an event happening first that is totally within the promissor's control

Under the Code, when are goods "tendered"? a) The buyer pays for the goods b) The seller makes the goods available to the buyer and gives him notice that they are available. c) Both a and b are necessary for tender of delivery. d) The buyer takes physical possession of them

When the seller makes the goods available to the buyer and gives him notice that they are available

Coca Cola wants to sue Coda Cola for trademark infringement. Coda soda cans have the same colors and ribbon letters as Coca Cola, and the names are very similar. Which of the following is the test used to determine if Coda's packaging is deceptively similar to Coca Cola's packaging? a)All of the above are required elements of the infringement test. b)Would a casual observer or buyer be deceived into buying Coda instead of Coca Cola? c)Would supermarkets and retail stores be inconvenienced by having to display such similar products? d)Did Coda act with malice in the choice of its design and logo?

Would a casual observer or buyer be deceived into buying Coda instead of Coca Cola?

Knockoff Shoe Company has started to produce a line of ladies shoes with very high heels and bright red soles. Bright red soles have long been associated with the ladies shoes of Famous French Shoe Maker. In a suit against Knockoff, Famous will likely allege a)Interference with a prospective advantage. b)Invasion of privacy c)Product disparagement d)Wrongful appropriation of a goodwill and business value

Wrongful appropriation of a goodwill and business value

Injunctions are often sought as remedies in torts of: (select all the answer options that are correct) a) False imprisonment b) Wrongful appropriation of another's good will c) Nuisance d) Personal injury

Wrongful appropriation of another's good will Nuisance

Sandy bought a large air conditioner from Big Box Home Store for 525. For an additional 100, the store delivered, installed and programmed the unit. Does this sale come under Article 2 of the Code?

Yes, because the sale of goods predominates

Lenny bought a computer from Computer Store for $1,000. For an additional $100, the store delivered the computer, connected up the various devices, and transferred Lenny's files from his old computer. Would this transaction constitute a sale of goods under Article2? a) No, this is a" work for hire" contract. b) No, this is a contract for personal services. c) Yes, any transaction in which title to some "good" is transferred" is an Article2 sale. d) Yes, in this transaction the sale of goods "predominates."

Yes, in this transaction the sale of goods "predominates."

Beth invited Roger to her house. Roger, while walking in Beth's yard, fell in an unobservable hole and broke his ankle. Beth was aware the holes were left in her yard after she had the sprinkler system removed. In common law, would Beth be liable for Roger's injuries? a) No, as an adult Roger is presumed to have the legal ability to take care of himself. b) Yes, she is liable in strict liability. c) Yes, she had a duty to warn him of hidden dangers. d) No, her only duty to Roger was not to entrap him on the property.

Yes, she had a duty to warn him of hidden dangers

Local Delivery Service had a one year contract with Supply Co. to make four deliveries a month to Supply's customers who live across the Bay. There is only one bridge spanning the Bay for 200 miles in each direction. Without warning, the state closed the bridge to all traffic for 10 months after an inspection revealed dangerous structural problems. Local now has to travel an extra 400 miles for each of the scheduled deliveries. Local asked Supply Co. for an additional 60 per trip above the contract price and Supply Co. agreed. Under common law, is this an enforceable contract? a)No, Local will incur no new duty b)Yes, the request is made in good faith for an unforeseen difficulty c)No, Local has a pre-existing duty under the contract to make the deliveries d)No, Supply Co. will receive no new benefit.

Yes, the request is made in good faith for an unforeseen difficulty

British Textile Manufacturer entered into a contract with Cotton Broker for 2,000 bales of cotton to be shipped from India to England on the ship "Peerless, sailing from Bombay." The contract was silent about the shipping date. Buyer expected the cotton to be shipped on the Peerless that sailed from Bombay in October; seller expected to ship the cotton on the Peerless that sailed from Bombay in December. By the time the second ship arrived in England, buyer had found another supplier and refused to accept the cotton. Does manufacturer have any defenses to the breach of contract suit brought by Broker? a) Yes, there was economic duress b) Yes, there was a bilateral mistake of material fact c) No, the buyer should have double checked the shipping date. d) Yes, there was a unilateral mistake of material fact

Yes, there was a bilateral mistake of material fact