BUSI LAW MASTER 2
Promises of fact made during the bargaining process are not express warranties.
False
Sexual harassment occurs only when sexual favors are demanded in return for job opportunities, promotions, salary increases, or other benefits.
False
Quinn promises to sell his recreational vehicle (RV) to Sid, who builds a structure behind his house in which to keep it. Quinn's later attempt to renege on the promise is
NOT effective if Sid DETRIMENTALLY RELIED on Quinn's promise.
If an employee learns of a dangerous condition at the workplace, their employer is charged with knowledge of the dangerous conditions.
True
No matter how harmful a statement is, the publisher of the statement cannot be sued for defamation if the statement is true.
True
eva owns fast rate salvage, a demolition company. a demolition by a fast rate crew injures glen, a passerby, under the theory of strict liability, eva must pay for glen's injury
Whether or not the Fast-Rate crew was at fault
Bargain Bytes Computers, a computer store, takes unethical steps to divert the customers of Cyber World, an adjacent competing store. Bargain Bytes may be liable for
Wrongful interference with a business relationship
China and India form an agreement to govern their commercial exchanges with one another. This is
a bilateral agreement.
Metro Movers Miami Corporation allows Metro Movers Milwaukee Company to use Metro Movers' trademark as part of its company advertising. This is
a license.
Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a relationship between
a principal and an agent.
For purposes of entering into contracts and being sued, a limited liability company is
its own legal entity. (checked)
Ralph, a van driver for Standard Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Standard are liable to
only those whose injuries could have been reasonably foreseen.
Mica, a minor, signs a contract to pay National Fitness Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is
ratification.
Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be
substantial.
Sweet Tooth Pastries, Inc., and other bakers refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of
usage of trade.
Cory employs Daily Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is
express authority.
When corporations violate the law, their actions raise questions about the role of corporations in society and the ability of corporations to make ethical business decisions when seeking profits.
True
When determining whether a product is defectively designed, courts will consider the economic feasibility of any available alternative design.
True
52 Jennifer, a salesperson for Genuine Fruit, Inc. shows James, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is
an express warranty.
Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is
an express warranty.
Flem sells an all-terrain, off-road vehicle to Esteban without disclosing that the odometer, which reads 30,000 miles, was disconnected 50,000 miles ago. Flem is most likely liable for
fraud.
Frisco agrees to lease an apartment from Gina for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is canceled ten days before its scheduled date. The contract
is discharged.
Caleb is driving a car in which Dona is a passenger when an accident occurs. Caleb and Dona are emotionally rattled, but neither is physically hurt. Caleb is not liable to Done on a negligence theory because
Dona was not injured
Fabulous Auto Sales, Inc., employs GR8 Collection Company as a collection agent. While repossessing a car from Hadji, one of Fabulous's customers, GR8 causes an accident in which Hadji is injured. Hadji can recover from
Fabulous or GR8.
A patent applicant must demonstrate that an invention is "commercially practicable" to receive a patent.
False
Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, "I'll pay no more than $5,000." Grant says, "Forget it." Grant's offer was terminated by
Ivy
1 When corporations violate the law, their actions raise questions about the role of corporations in society and ability of corporations to make ethical business decisions when seeking profits.
True
12 As offer may require an acceptance be made in a specific manner in order to be valid.
True
14 Rescission is when a contact is unmade so that the parties are returned to the position they were in before they made the contract
True
15 An advertisement is generally not considered an offer.
True
17. Contracting parties can opt out of the terms of the UETA
True
18 If an acceptance imposes new conditions or changes the terms of the original offer, it constitutes a rejection of the offer
True
46 Warranties of title arise in most sales contracts.
True
A partner newly admitted to an existing partnership is not personally liable for any partnership obligations incurred before the person became a partner
True
A partnership can be found without an express partnership agreement:
True
An agency relationship created for a purpose that is illegal is not enforceable
True
An agent's apparent authority to act on behalf of a principal may allow an agent to bind a principal to a contact the agent is not expressly authorized to enter into
True
An undisclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority
True
If a principal is undisclosed, the agent is personally liable to third parties on authorized contracts, but may seek indemnification from the principal for any liability incurred.
True
Manufacturers of products have no duty to warn of risks of a product which are obvious and commonly known.
True
To be merchantable, goods must be at least average, fair, or medium-grade quality.
True
Aerospace, Inc., makes and sells flight navigation equipment, through independent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers
only a seller's written promises
Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name "CoCoCafe." Darkroast Java, Inc., later markets a similar tasting drink under the name "KoKoKafe." This is most likely
trademark infringement.
30 A court declares Rick to be mentally incompetent and appoints Laurie to be his guardian. However, to the average person, Rock appears completely normal. Later, without Laurie's knowledge, Rick signs a contract to sell his lake house to James. The contract is
void (possible)
On January 1, Isabelle retains Mark to act as her authorized agent. On Feburary 1, Isabelle dies. On February 2, before Mark knows of Isabelle' death, he enters into a contract on Isabelle's behalf. The contract is
void (correct)
A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian. Later, without Inez's knowledge, Huck signs a contract to sell his farm to Galen for its real market value. The contract is
void.
Ilsa works as a clerk for Java Café at minimum wage. The minimum-wage rate is revised
Periodically by Congress, or sometimes by a local city or state government.
10 First Home Mortgage has the right to receive payment under a home loan it made to Sandra. If First Home Mortgage sells its rights in this loan contract to Texas National Bank, this sale of rights is
An assignment (CHECKED)
A partnership cannot be bound by the actions of a partner who does not have express authority to bind the partnership in a matter:
False
A principal has no duty to cooperate with the agent or to assist the agent in performing his or her duties
False
A principal is usually not liable for an agent's misrepresentation made within the scope of the agent's authority.
False
A principal's ratification of an agent's unauthorized act may be implied
False
A service mark distinguishes products used by those in public service.
False
An advantage of sole proprietorships is the automatic continuation of the business after the owner dies.
False
The United Nations World Court has the jurisdiction to issue binding judgments against any country that violates international law.
False
The most important issue in determining whether someone has violated their duty of care is whether the tortfeasor thought their actions were reasonable.
False
The purpose of "anti-dumping" laws is to prevent other countries from dumping their industrial waste in the United States or its territories.
False
Title VII of the Civil Rights Act of 1964 does not prohibit job discriminations against majority group individuals, such as white males
False
To recover workers' compensation, an employee must prove that an injury did not occur on the job or in the course of employment.
False
Trademarks may be registered only with the federal government.
False
Unintentional discrimination by an employer against an employee is known as disparate treatment discrimination
False
When determining whether a duty is owed, a court will consider the magnitude of the harm suffered by the victim of the tort.
False
58 A service mark distinguishes products and services being offered by non-profit and religious organizations.
False NOTE: Only does services, not products
A principal or employer normally is liable for an agent's crime
False (Checked) Did it happen in the scope of employment??
The partnership is a pass-through entity and a taxpaying entity:
False (checked)
There is no federal law which prohibits discrimination in employment based upon age.
False (checked)
Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in
France
Vieux Carré S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Vieux Carré's goods in
France
Hector believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply
Hector must be forty years of age or older.
Partners are deemed to owe fiduciary duties to the partnership as well as the other partners:
True
The law governing limited liability companies differs by state
True
With a few exceptions, almost anything is patentable.
True
16 If the illegal part of a bargain has not yet been performed, a party rendering legal performance can withdraw and receive payment for the performance.
True pg. 286 says you can Pg. 227, "One of the requirements of a valid contract is that it is legal"
Bling Bling jewelry is a general partnership that designs and sells jewelry. Doug, Gerald, and Patty are Bling Bling's partners. Doug and Gerald each have a 45% interest in the partnership, and Patty has a 10% interest. Absent any express agreement to the contrary, to pass a management decision involving an ordinary business matter:
A majority of the partners must agree, and each partner has an equal vote (OR: All the partners must agree)
Obie accuses Portia, a broker with QT Financial Services, of fraudulently in-ducing him to invest in Riske Development Company, whose stock price de-clines in value. The reliance that gives rise to liability for fraud requires
A misrepresentation of a fact knowing that it is false
Investment Holdings Corporation hires Jerilyn, a business appraiser, to locate investment possibilities for Investment Holdings. Their agreement does not state the fee for Jerilyn's services. If Jerilyn accomplishes the goals of the agreement and fully performs her duties, then she is not entitled to
A reasonable, customary compensation for such services
Barb witnesses Toby sexually harassing Jill at the workplace. When Jill complains, Barb testifies on Jill's behalf against Toby. After the hearing, Barb's employer fires her, and Barb suspects it is because she testified against Toby. What kind of claim could Barb asserts against her employer based upon this firing?
A retaliation claim
April posts a defamatory note about Brad in an online newsgroup maintained by Comp Online, Inc., an Internet service provider. Most likely to be held liable for the remark is
April only
Louis—larger and stronger than Mica—threatens to hit Mica and then hits and injures him. Mica files a suit against Louis for assault and battery. Mica will most likely recover for
Assault and Battery
Sheila owns a Kia Spectra. One day, she receives a letter in the mail which states that the brakes on her model year of Kia Spectra are known to fail at high speeds, and that she should immediately take her car to a dealership where it will be examined and repaired, free of charge. Sheila ignores the warning and drives the car anyway. The brakes fail on the highway, causing a wreck which injures her. If she sues Kia for products liability, what defense will they likely assert?
Assumption of Risk
14 Salma is doing auto repair work for Troy. Salma needs a tool to complete the job, and leaves it from Auto Tool Leasing, Inc. In this transaction, the lessor is
Auto tool Leasing Inc (CHECKED)
Ollie, Felicity, and Barry are general partners in a partnership. Their agreement expressly states that partners are prohibited from assigning their interest in the partnership to a creditor without the consent of the other partners. Barry assigns his partnership interest to a creditor anyway, without the other partners' consent. This assignment results in
Barry's wrongful dissociation from the partnership and liability for any damages created thereby.
12 Cameron's Brewery Inc. (CBI) is a small brewery in Alaska. It buys raw materials for use in its beer and also enters into transactions with wholesalers who sell its beer. It is currently in negotiation to buy a new warehouse to hold its inventory. It also enters into contracts with various employees and independent contractors who provide it services. Article 2 of the Uniform Commercial Code (UCC) applies to
CBI's purchase of raw material and sale of its products, but not its real estate contracts or its service contracts. (CHECKED)
Beth, who has a disability, is an employee of Corporate Office Company (COC). After the installation of new doors on COC's building, Beth finds it nearly impossible to get in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who does not have a disability. To succeed with a claim against COC under the Americans with Disabilities Act, Beth will have to show that
COC refused to make resonable accommodation for Beth
Clive is a passenger in a car driven by Hiro. Hiro's negligence in driving results in an accident in which Hiro receives minor injuries, but Clive is uninjured. The car is still drivable so Clive drives Hiro to their destination. On the way, Clive negligently runs over Tommy, a pedestrian, injuring him. Who is liable for Tommy's injuries?
Clive only.
Jim develops a new line of body shaping underwear called "The Shapely Gentleman" that he markets as "Spanx for men." After the product has been on the market for a year, a doctor discovers that the high level of compression from the underwear is causing sterility in men. If Jim is sued for products liability, based upon these facts what type of defect will the plaintiffs most likely assert?
Design defect
9 Ron gets in a fight at a bar with Cole. Ron pulls his knife and tries to stab Cole. Cole steps out of the way, resulting in Ron stabbing Diane, Cole's girlfriend. Which of the following is true if Diane sues Ron for battery?
Diane will only be required to prove that Ron tried to stab Cole to be successful, because Ron's intent can be transferred to her.
Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover the cost of the aid from Noel
EVEN if Noel was NOT aware of the aid.
Bambi employs Ken to complete a certain number of transactions on Bambi's behalf. Which of the following events will terminate this agency relationship?
Either a or B
Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, "Forget it. I changed my mind." Elmore's offer was terminated by
Elmore
Drake pushes Evon into the path of an oncoming car driven by Flip. Gina tries to rescue Evon, but the car hits both of them. Drake is liable for the injuries of
Even and Gina
Beth is injured in a car accident and sues Cash, alleging negligence. Cash claims that Beth was driving more carelessly than he was. Comparative negligence may reduce Beth's recovery
Even if Beth was only slightly at fault
Carolyn is caught shoplifting at the Discount Mart. A Discount Mart manager detains her in a locked room while they wait for the police to arrive. If Carolyn sues Discount Mart for false imprisonment, which of the following is true regarding her lawsuit?
Even if Carolyn was actually shoplifting, she might still be successful in her suit if she can prove that Discount Mart used undue force in apprehending her or detained her for an unreasonable period of time.
10 Nancy is caught shoplifting at Discount Mart. A Discount Mart manager detains Nancy in a locked room while they wait for the police to arrive. If Nancy sues Discount Mart for false imprisonment, which of the following is true regarding her lawsuit?
Even if Nancy actually was shoplifting, she might still be successful in her suit if she can prove that Discount Mart used undue force in apprehending her or detained her for an unreasonable period of time.
17 Michael contracts to sell Sasha his tractor for $100,000. This contract will be fully discharged when Michael and Sasha
Exchange the tractor for the $100,000. (CHECKED)
Elin, an agent for First Credit Corporation (FC), enters into an unauthorized contract with Great Expectations, Inc. (GE), purportedly on FC's behalf. This contract will be enforceable if it is ratified by
FC.
Kai files a suit against Lana based on one of Lana's statements that Kai alleges is fraudulent. To give rise to fraud, the statement must be one of
Fact
"Special damages" are damages suffered from a tort for which no amount of money can fully compensate the victim.
False
10 In order for an item to serve as sufficient consideration in a contract, it does not have to be exchanged for something of the same or similar value
False
11 If an offer does not specify a time for acceptance, the offer remains effective until it is expressly revoked.
False
14 Once a plaintiff proves all the elements of a tort, the defendant can raise no defense to liability.
False
19 A voidable contract is one that cannot be enforced by either party because of certain legal defenses against it
False
2 In America, most business people consider the only goal or duty of a corporation to be to employ as many people as possible in order to benefit society through job creation, even at the expense of profits.
False
22 When a company passes a code of conduct it has the force and effect of law.
False
23 A contract with an unlicensed person is always enforceable, but the unlicensed person may have to pay damages in addition to performing the contract
False
24 When interpreting a contract, a court will normally give less weight to specific, negotiated terms than to general, standardized terms.
False
26 Questions of ethical business behavior involve the extent to which businesses have legal duties beyond those duties mandated by ethics.
False
38 A product liability action based on negligence requires privity of contract between the injured plaintiff and the defendant-manufacturer.
False
4 A contract entered into by a minor is voidable at the option of the minor, but only if the contract is unfair to the minor.
False
48 The statement. "This is the best car Chevy has put out in years," made during the bargaining process is an express warranty
False
5 Some states do not allow minors to disaffirm contracts
False
57 A famous trademark may be diluted only by the unauthorized use of a mark that is similar, but not identical (False) A famous trademark may be diluted only by the unauthorized use of an identical mark. (False) NOTE: It can be diluted if it is identical or similar but not ONLY.
False
A corporation cannot be held liable for the criminal acts of its employees.
False
A famous trademark may be diluted only by the unauthorized use of an identical mark.
False
A joint venture resembles a partnership but is taxed like a corporation.
False
A limited liability company cannot be held liable for any loss or injury caused by the wrongful acts or omissions of its members committed in carrying out the company's business.
False
A manufacturer's license to a dealer to sell a product is a chain-style business operation.
False
All business organizational forms have an equal access to and ability to raise the same types of business capital.
False
An agency by operation of law arises, when the principal's activities have created the appearance of an agency that does not in fact exist
False
Any aggressive marketing intended to pull customers away from a competitor is wrongful interference with a business relationship.
False
Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a "work for hire," which means it belongs to the employee, not the employer
False
Any federal, state, or local affirmative action program that uses racial or ethic classifications as the basis for making decisions is not subject to scrutiny by the courts as long as the goal of the action is to help a racial or ethic minority
False
Any time a product injures a consumer, the manufacturer of that product is liable for the injury.
False
Anything that an agent obtains by virtue of the employment or agency relationship the agent may not keep, even if the principal expressly sells the agent he/she may keep it
False
Counterfeit goods copy or otherwise imitate trademarked goods, and they are in fact sometimes genuine trademarked goods.
False
If Bill hires Tom to work in his store, Bill is Tom's agent
False
If a principal ratifies a contract without knowing all of the facts, the principal is still bound to the ratified contract
False
In the United States, employers are never required to provide employees with advance notice of Layoffs.
False
Individuals have a legal right to privacy no matter where they are.
False
International licensing involves a U.S. firm buying or building a manufacturing plant overseas to manufacture their goods for another market.
False
Limited liability company operating agreements are typically silent with respect to the management of the company.
False
More than two hundred years ago, the Declaration of Independence recognized the importance of protecting creative works.
False
Some employers can make hiring decisions based upon the applicant's religion beliefs or practices
False
The Americans with Disabilities Act of 1990 defines persons with physical or mental impairments that make everyday activities reasonably inconvenient as compared to a normal process.
False
The doctrine of sovereign immunity provides that a United States' court may never exercise jurisdiction over a foreign country.
False
The first person to invent a product obtains the patent rights rather than the first person to file an application for a patent.
False
The key consideration in determining whether an employment manual creates an implied contract is the employer's intent.
False
Title VII of the Civil Rights Act of 1964 prohibits only intentional discrimination
False
A sharing of profits from the ownership of property creates a presumption that a partnership exists.
False (checked)
24 If a manufacturer is subject to a comprehensive federal regulatory scheme, the manufacturer is prohibited from asserting compliance with this scheme as a defense to a product liability action.
False (possibly)
Fine Motor Company buys gas pedals and other parts from General Mechanix, Inc., and puts them in its vehicles without changing their composition. If the pedals or other parts are defective, strictly liable for any damage caused by the defects are
Fine Motor and General Mechanix.
Fresh Harvest, Inc., agrees to sell to Gina's Bed & Breakfast Inn a certain amount of locally grown produce each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at
Fresh Harvest's place of business.
33 Paul contracts with Sue to rent Sue's apartment on January 1, because on that day the President will be in a parade which can be viewed from Sue's window. Unforeseeable, the President announces that he is not able to attend the parade, and thus the parade is cancelled. Paul's best argument to get out of the contract and receive a refund of any amounts paid to sue is.
Frustration of Purpose (CHECKED)
Garden Tool Company makes chain saws. Hadrian is injured while using a Garden Tool saw and sues the company for product liability based on neg-ligence. To win, Hadrian must show that
Garden Tool did not use due care with respect to the trimmer.
Fun Toyz Corporation makes skateboards, which it sells to consumers, including Gitana. Gitana is injured due to a defect in the board that causes an accident in which Haley, a bystander, is also injured. In a product liability suit based on strict product liability, Fun Toyz may be liable to
Gitana and Haley.
22 Gobber's Fuel sells fuel to trucking companies, to whom it extends credit. Gobber's orders the fuel from Mt. Pilot Oil. Mt. Pilot Oil borrows money from Mayberry Bank to finance its operations. Article 2 of the UCC governs
Goober's sale of fuel to customers, its purchase of fuel from Mt. Pilot Oil, and Mt. Pilot Oil's borrowing of money from Mayberry Bank (CHECKED)
5 Great Gear, Inc. enters into a contract to sell sports clothing and equipment to Healthways Workout Store, which in turn sells a pair of bike shorts to Llene, a customer at the store. After Llene has worn the bike shorts for a while, she sells them in a garage sale. Under the UCC, which of the parties are merchants?
Great Gear, Inc. Heathways Workout Store, and Llene OR IF GIVEN: special business standards. (CHECKED)
41 Equipco makes and leases a tractor to Hannibal. Due to a defect attributable to Equipco's negligence, Hannibal is injured in an accident in which his neighbor Esme is also hurt. In a product liability suit based on negligence, Equipco may be liable to
Hannibal and Esme
Hazel and Prudence enter into a contract under which Hazel will provide repair services for Pudence's tractor. Hazel then delegates her duties under the contract to Ambrose. Ambrose never shows up to perform the repair services. Prudence can sue
Hazel
Gia orally promises Heck that she will buy his fishing trawler. For this promise to be enforceable under the doctrine of promissory estoppel
Heck must act in reliance on Gia's promise to his detriment.
Equip Company makes and leases a tractor to Horton. Due to a defect attributable to Equip Company's negligence, Horton and his neighbor, Ralph, are both injured. In a product liability suit based on negligence, Equip Company may be liable to
Horton and Ralph
Garage Magic, Inc., contracts for the sale of a certain number of garage door openers to Home & Yard Hardware stores. Ian buys one of openers. The applicable statute of limitations prescribes a period of four years. To bring a product liability claim against Garage Magic, Ian must file a suit within four years of
Ian's discovery of an injury caused by the opener.
Corey owns a gun store, and at this store he sells Danny a box of 9mm handgun ammunition. Danny uses the ammunition in his 9mm handgun and a round explodes in his hand because the ammunition was not properly loaded with gun powder. Which warranty has Corey's gun store breached?
Implied warranty of merchantability.
Magic Math Corporation makes business accounting software, which is packaged with a shrink-wrap agreement. National Distribution Company distributes the software to retailers, including an Office Stuff store, where Peg buys a package of it. The parties to the shrink-wrap agreement are
Magic Math and Peg only.
Marie, an employee of Nickel Tool Company, files a sexual-harassment suit against Owen, her supervisor. Marie wins. Nickel may have a defense against liability for Owen's harassment if it had effective harassment policies and complaint procedures, and
Marie did not follow them.
Miklos grants an ordinary power of attorney to Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on
Miklos's death or incapacity.
Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Liz and Molly are not authorized to modify the prices or other terms of a sale at the shop. Refer to Fact Pattern 32-1B. Nia authorizes Liz to sell clothes at remote locations at prices that Liz negotiates in those locations. With respect to sales at those locations, Liz is
Nia's employee and agent.
Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Liz and Molly are not authorized to modify the prices or other terms of a sale at the shop. Refer to Fact Pattern 32-1B. At the shop, Liz and Molly are
Nia's employees and agents.
Nori files a suit against Mica to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if
Nori foreseeably and justifiably relied on Mica's promise to her detriment.
36 Consolidated Industries offers to design and build three nuclear reactors for Nucleo Power Company for a certain price. Consolidated Industries offer states that it can only be accepted by a written acceptance signed by Nucleo's entire board of directors. Nucleo's Ceo calls Consolidates CEO and states "We accept your offer for the three nuclear reactors." This acceptance is
Not effective. (possibly)
During a heated legislative debate, Representative Peony makes a statement of fact damaging Senator Rose's good reputation. Peony knows the statement is not true. In this situation, Peony is most likely
Not liable for defamation because Peony enjoys a privilege
19 Rory enters into a contract with Gordon, who agrees to cook a seven course dinner for Rory's birthday for $500. Regarding the duty to cook the dinner under the contract, Gordon is the
Obligor (CHECKED)
Jean is playing a computer game on a bad disk that melts in her drive, starting a fire that injures her hands. Jean files a suit against K-Tech, Inc., the game's manufacturer. K-Tech is held liable under the doctrine of strict liability. A significant application of this doctrine is in the area of
Product Liability
27 In the modern world, the most significant and common application of the doctrine of strict liability is in the area of
Product liability
George has a badly infected right foot. Herb, George's physician, prescribes amputation. George agrees. During the operation, Herb amputates the left foot. In George's suit against Herb, George's best theory for recovery is
Res Ispa Loquitur
RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment Company copies the design without RiteMade's permission. Steel's conduct is actionable provided
RiteMade's design is patented.
Roadbuilders, Inc., uses dynamite in its operations. Sky-Hi Fireworx, Inc., stores explosives in its warehouses. Most likely liable under the doctrine of strict liability for any injury caused by an abnormally dangerous activity will be
Roadbuilders and Sky-Hi
30 Round Holes, Inc. makes drills. Alex is injured while using a Round Holes drill and sues the company for product liability based on negligence. To win, Alex must show that
Round Holes Inc. did not use due care with respect to the trimmer.
Round Holes, Inc. makes drills. Alex is injured while using a Round Holes drill and sues the company for product liability based on negligence. To win, Alex must show:
Round Holes did not use due care with respect to making or selling the drill.
Chad is a manager at Starducks coffee. One night he is closing the store down, and before he leaves for the night he locks the door to the storage room in the back of the store. Unbeknownst to Chad, Sarah, one of his employees, was in the storage room putting something away. Sarah is stuck in the storage room overnight and suffers severe medical problems because she did not have access to a medication she must take every night. She sues for false imprisonment. What is the likely result, and why?
Sarah's lawsuit will not be successful because Chad did not intentionally confine her.
Robinson files an employment discrimination suit against his employer on a disparate-impact theory. Which of the following employer requirements or practices can normally not be used as the basics of a disparate impact suit?
Senioritysystem
From a location in Asia, Basil sends spam to U.S. e-mail addresses touting a variety of deceptive scams in an attempt to dupe unwitting recipients into revealing their bank account and credit card numbers. Under the U.S. Safe Web Act, the Federal Trade Commission can
Share information with foreign agencies to investigate and prosecute
Jack, a minor, takes out an automobile insurance policy and pays a $1,000 premium. If Jack disaffirms the contract, he can most likely recover
$1,000.
Sally is injured at a Wacarnold's restaurant. Sally sues Wacarnold's for negligence. The jury finds that Sally was 55% at fault, Wacarnold's was 45% at fault, and the total damages were $250,000. In state that follows a "pure" comparative negligence standard, Sally would be able to recover:
$112,500
Baur Counseling, Inc. (BCTI), enters into a contract with DataDyne, Inc. to provide it with business consulting services in a merger transaction. To help fulfil the contract, BCI hires a new employee, Alana, who is a mergers and acquisitions expert. With respect to the contract between BCI and DataDyne, Alana is
- An intended third-party beneficiary
If a party that has existing obligations and rights under a contract agrees to "assign all rights under the contract" to a third party, this acts as
- An obligation to perform duties and a cancelation of all rights
Ripe Produce, Inc., and Southeast Austin Bistro & Market enters into a contract for the delivery, in four installments of locally grown squash, but the exact type is not specified. In the first three deliveries, Ripe Produce delivers butternut squash, but Southeast Asian refuses to pay for the goods, claiming that the type of squash called for in the contract was acorn squash. Ripe Produce responds that under this same contract, Southeast Asian has accepted butternut squash three times. Ripe Produce Is arguing that the _____________ should be taken into account in interrupting the contract
- Course of performance the course of dealing (CHECKED)
Smith & Wilson, LLC. A major public accounting firm enters into a contract to employ Emma as an auditor for one year to begin April 1. One month before the term begins, Smith & Wilson loses one of their largest clients, and now refuses to hire Emma. Refer to Fact Pattern 18 R. Under the circumstances, with respect to damages, Emma can
- Do nothing or; bring an action immediately (CHECKED) or: BRING AN ACTION ONLY AFTER ONE YEAR TERM BEGINS (checked)
Hank sells a car to Iris without disclosing that the odometer, which reads 50,000 miles, was disconnected 100,000 miles ago. Hank is most likely liable for:
- Fraud Fraudulent misrepresentation. (CHECKED)
41 Art agrees to work as Simon's personal nurse and home health provider for two years, but Art dies in the fifth month of the contract. Art's estate
- Is discharged from any contractual liability OR IF GIVEN: The agreement will be discharged due to true impossibility.
Billie is selling a commercial building to Michael, who intends to use it for a night club. Michael asks Billie about the capacity of the building, and Billie says it has a capacity of 250. When Billie made the statement, he had no idea what the true capacity was, but it is not what he specified. If Michael sues to rescind the contract, which of the following would be his best argument?
- Negligent misinterpretation
Pier shops in a Rowdy Ranch & Farm Store store. Enticed by a display, Pier takes an item to examine it and, when she is done, places it on the floor. Tanner, a consumer enticed by the same display, does not see the item on the floor, trips over it, falls, and suffers an injury. With respect to the danger, Rowdy had
A duty to discover and remove the hazard
30 Maritime Contractors, Inc. enters into a contract with Boardwalk Shopping, Inc. to repair Boardwalk's ocean side shopping center. Maritime enters into a contract with Adrian to do most of the work for Boardwalk contract. Adrian plans to use building supplies from Seaside Lumber. Rick's Seafood Cafe' is next to the Boardwalk shopping center. Refer to Fact Pattern 17-B1. The value of Rick's seafood cafe's property will increase after Boardwalk's shopping center is repaired. With respect to the repair contract Maritime Contractors, Rick's Seafood Cafe is
an incidental beneficiary. (HALF CHECKED) otherwise; an incidental third-party beneficiary.
Smith's Grocery hires Ellie Cleaning to come at night and clean the store for a set monthly fee. Smith's gives Ellie Cleaning instructions as to what needs to be cleaned and when, but does not directly supervise its work. Ellie Cleaning providing cleaning services for numerous other stores throughout the city. With respect to Smith's Ellie Cleaning is
an independent contractor
Meals n' More, Inc., a catering company, requires its customers to pay by check. Lyra, a Meals n' More driver, tells customers that they can pay her with cash. When Meals n' More learns of Lyra's collections, it takes no action to stop it. Lyra steals some of the cash. Meals n' More may suffer the loss under the doctrine of
apparent authority.
Great Tans, Inc., uses, in its radio ads, a recording by Holly, who owns the rights, without paying for the use. Over time, the song comes to be associated with Great Tans. In Holly's suit against Great Tans, the firm is most likely liable for
appropriation
Jayne develops a new color of lipstick. To market her lipstick, Jayne uses a computer design program to show a famous model using Jayne's lipstick. Jayne does not ask the model's permission. The model can sue Jayne for
appropriation
Musical Tones, Inc., sells fifty MP3 players to Noise Stores, Inc. To avoid liability for most implied warranties, Musical should state in writing that the players are sold
as is.
Delphi, Ltd., imports appliances made in Southeast Asia into the United States. To obtain a larger share of the U.S. market, Delphi sells the appliances at lower prices here than in its exporting countries. With respect to these imports, the United States may
assess antidumping duties.
The brakes on a train owned by Rolling Stock Railway Inc. malfunction. The train rolls towards maintenance workers on the tracks. Everyone gets out of the way except Sid, who wants to show off. The train hits Sid, who sues Train Components, Inc., the brakes' manufacturer. Train Components can raise the defense of
assumption of risk.
The accelerator on a forklift on by Warehouse, Inc. malfunctions. The forklift rolls toward the workers. Everyone gets out of the way except Dumber, who wants to showoff and tries to jump onto the forklift and then back off out of the way. The forklift hits Dumber, who sues the forklifts manufacturer for product liability. The manufacturer can raise the defense of
assumption of the risk
The accelerator on a forklift owned by Warehouse Helpers, Inc. malfunctions. The forklift rolls towards some warehouse workers. Everyone gets out of the way except Larry, who wants to show off by trying to jump on the forklift and then back off out of the way. The forklift hits Larry, who sues Lift It, Inc. the forklift manufacturer, for product liability. Lift it can raise the defense of
assumption of the risk
You are attending a baseball game, and your seats are close to the field, along the first base line, right behind a short wall. While pursuing a foul ball, the first baseman jumps up to catch the ball, falls over the wall onto you, and breaks your arm. You sue the baseball team for negligence. What defense could the team likely successfully assert?
assumption of the risk
Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments. After thirty-six months of payments, Olisa has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract. Refer to Fact Pattern 19-1A. Under the UCC, the court can evaluate the contract to determine whether it was unreasonably unfair and one sided
at the time it was made.
Medical Equipment Supply Company and Natural Rehabilitation Center enter into a contract for a lease of a certain number of wheelchairs. Medical Equipment assures the lessee that it has valid title to the goods. Under the UCC, this type of title warranty arises
automatically
Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises
automatically
City Cab Company and Dave's Autos enter into a contract for a sale of motor vehicles. City assures Dave's that it has valid title to the vehicles. Under the UCC, warranties of title arise
automatically in most sales contracts.
Sam uses duress to force Tanya to agree to pay him for protecting her retail store¾Tanya's Trends against vandalism and destruction. Tanya may
avoid the contract or choose to carry it out.
Wu-Tang Financial hires Doug to act as its agent. Doug enters into an unauthorized contact allegedly on behalf of Wu-Tang Financial. Wu-Tang's right to not perform under the contract Doug entered into is the right of
avoidance
United Sales Corporation hires Victor to act as its agent. United's right not to perform a contract entered into by Victor, if Victor breaches their agency agreement, is the right of
avoidance.
Dominion Sales Ltd. in Canada and Eagle Buying Company in the United States enter a contract for a sale of forestry products. Dominion draws a draft unconditionally ordering Great Federal Bank, Eagle's bank, to pay $60,000 to Dominion's order in sixty days. Eagle signs and dates the draft. Refer to Fact Pattern 24-1B. This instrument is
a banker's acceptance.
In its ads for athletic shoes, Sleek Feet LLC uses a trademark that is similar, but not identical, to the famous, registered mark of Thor, Inc. Sleek Feet's unauthorized use of the mark constitutes trademark dilution, provided that
Sleek Feet's use is likely to impair the distinctiveness of Thor's mark or harm its reputation.
Soda Bubbles Corporation makes and sells soft drinks. Talia buys and drinks a Soda Bubbles beverage, which proves defective and injures her. One justification for holding Soda Bubbles strictly liable for the harm caused to Talia by its defective product is that
Soda Bubbles is making a profit from its activities
Braxton questions whether there is consideration for his contract with Tawny to exchange his accounting services for her payment of a certain amount. To constitute consideration, there must be
a bargained-for exchange.
Gert contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Gert is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. Refer to Fact Pattern 14-1B. The parties' belief about the adjacency of the property is
a bilateral mistake
Mica buys "Nature," a movie, through Open View, an online entertainment vendor. Before completing the purchase and downloading "Nature," Mica is asked to review a warning not to make and sell a copy of it but is not required to click "I agree." This warning is
a browse-wrap term.
Marvel Machine Corporation requires its employees to have a high school diploma, claiming a definite connection between a high school education and job performance. In a suit against Marvel under the Civil Rights Act of 1964, this requirement is shown to have a discriminatory effect. Marvel has
a business necessity defense.
34 On March 1, Larry enters into a contract with Heff to sell Heff his strip club in Star City, with closing to occur on April 1. On March 15, Star City changes its zoning laws to prohibit the operation of a strip club at that location. In this situation
The contract is discharged (CHECKED)
Downwind Land Corporation and Leeward Investments Company transfer their property to Financial Managers, Inc., which manages the property and distributes the profits to Downwind and Leeward. This form of a business organization is
a business trust.
Island Breeze Company designs and makes desk, window, and ceiling fans. In a product liability suit based on negligence, Island Breeze could be liable for violating its duty of care with respect to all of the following except
a consumer's unforeseeable misuse of a fan.
Berkie's bicycle is damaged in an accident caused by Imogene. Berkie agrees not to sue Imogene if she will pay for the damage. If she fails to pay, Berkie can bring an action for breach of contract. This is
a covenant not to sue.
Welding Systems, Inc. (WSI), makes welding torches, masks, and related products. A WSI product may be unreasonably dangerous due to
a defect in its design.
9 Sam and Kim enter into a contract under which Sam agrees to provide business consulting services to Kim. Sam later transfer his duty under the contract to Jesse. Jesse is
a delegate and an obligator (CHECKED)
Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is required urgently. It would be most reasonable for Unified to accept via
a fax sent to TF as soon as the offer is received.
An agreement between Pinnacle Oil Company and Omega Refinery, Inc., requires Omega's bank to pay Pinnacle on receipt of invoices and bills of lading. This letter of credit is
a formal contract.
Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form, and Pinky gives Opie a check for the price. This check is
a formal contract.
11 To be enforceable, a written contract for the sale of goods must include
a quantity term, such as "50 boards" or "100 pairs of pants." (CHECKED)
Vern's Roofing Company and Weatherall Tiles, Inc., sign a written contract for a sale of goods. To be enforceable, this written contract must include
a quantity term, such as "50 pallets" or "100 cartloads."
Five Star Flooring orders carpet from Textile Mills Corporation, but Textile does not deliver. Five Star will probably be unable to enforce the agreement if the parties omitted
a quantity term.
The government of Korea sets a limit on the amount of rice that can be imported from the United States. This is
a quota.
Bette backs out of City Parking Garage, colliding with Dill's car and thereby causing damage to the vehicle. Dill may recover the cost of repair if Bette failed to act as
a reasonable person
Bettle backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as
a reasonable person
Kelly is injured when she slips and falls on Lee's sidewalk. To determine whether Lee owed a duty of care to Kelly, Lee is subject to the standard of
a reasonable person
Leon files a suit against Moira, a medical doctor, alleging negligence. As a physician, Moira is held to the standard of
a reasonable physician.
59 Jim works as a professional wrestler under the character name, "Headhunter Jim the Death Dealer". Jim can register his character's name as
a service mark (possibly) Note: Trade name only applies to products. Titles and character names used in radio and television are frequently registered as service marks.
Commodity Sales Corporation and Resource Purchasing Company enter a contract for a sale of unprocessed silver. Commodity Sales draws a draft unconditionally ordering Resource Purchasing to pay $50,000 to Commodity Sales's order in sixty days. Resource Purchasing signs and dates the draft.
a trade acceptance.
Burger Heaven, Inc., conducts a chain-style franchise. This involves the transfer to Chester, one of its franchisees, of
a trade name (checked)
Darren owns a small restaurant. Unbeknownst to him, at 8:30 in the morning a customer spills water from the bathroom sink all over the bathroom floor. Because he is busy, neither Darren nor any of his employees go into the bathroom and don't know about the spill. At 1:00 in the afternoon a customer uses the bathroom, slips on the water on the floor, and hits his head on the urinal causing him severe brain damage. If this customer sues for negligence, which of the following is correct?
The lawsuit will probably be successful because Darren should have known of this spill in the floor and either cleaned it up or warned about it.
Doctors Medical Clinic orders 1,000 bandages from Emergency Supplies Company but fails to specify the sizes. The bandages are delivered in an assortment of sizes. Doctors Medical Clinic may
accept only the bandages that it wants and reject the rest.
As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed
Trespass to personal property
Levon leaves his truck at MakeRight Vehicle Shop for repair. When Levon refuses to pay for the work, MakeRight refuses to give him possession of the truck. MakeRight has committed
Trespass to personal property
Trey and Unice orally agree on the sale of Trey's Health Club to Unice and note the terms on a sheet of the club's stationery, which Trey signs. This agreement is most likely enforceable against
Trey.
1 Whether a worker is an employee or an independent contractor may determine the employer's liability for the worker's actions.
True
21 A Manufacturer can be held liable for selling a defective product even if it is used all possible care in designing and manufacturing the product.
True
32 Punitive damages are usually not available when tortfeasor engages in only negligent conduct
True
36 An individual's ethical standards may differ from what the law requires in a particular business situation.
True
39 Because of the complex issues confronted by businesses, what is ethical by any given business decision is often difficult to determine.
True
47 A warranty of title can be disclaimed through specific language in the contract
True
56 The importance of protecting creative works in enshrined in the U.S. Constitution.
True
6 Tort law provides remedies for acts that caused personal physical injury as well as damage to property
True
7 A request or invitation to negotiate is not definite enough to be an offer
True
9 A court is more likely to allow an exception to the preexisting duty rule if extraordinary difficulties arise that were totally unforeseen at the time a contact was formed A court is not likely to allow an exception to the preexisting duty rule even if extraordinary difficulties arise that were totally unforeseen at the time a contract was formed. (False)
True
A franchise generally must run their business pursuant to broad rules and procedures established by the franchisor.
True
A fully disclosed principal is a principal whose identity is totally known by a third party with whom an agent contracts on the principal's behalf.
True
A license permits the use of another's intellectual property for certain purposes.
True
Agents are required to notify the principal of any information that is relevant to the agency that is acquired by the agent
True
An agent has the implied authority to do whatever he feels is necessary to accomplish the objectives of the agency
True
An individual's ethical standards may differ from what the law requires in a particular business situation.
True
Any time a female is paid different amount than a male doing the same occupation, the Equal Pay act is violated
True
Generally, under the employment-at-will doctrine an employer may fire an employee for virtually any reason except for a few exceptions, such as if the firing would violate a federal or state statute.
True
Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf. Edwina later contacts Frida to approve the contract. This is
an agency by ratification.
If a job applicant or an employee with a disability, with any form of accommodation can perform essential job functions, the employer must do whatever is necessary to make the accommodation
True
If the buyer of a product substantially alters the product after purchasing it, the seller of the product may no longer be liable under strict product liability
True
In a common law legal system, courts develop the law through binding case precedents.
True
In order to sue for assault, it must have been reasonable for the plaintiff to have felt apprehension or fear stemming from the tortfeasor's intentional act.
True
Limited liability companies (LLCs) are governed by state LLC statutes.
True
One exception to child labor laws is that children under fourteen years of age are able to work in entertainment
True
One principal can have multiple agents to conduct his/her business affairs
True
People who keep domestic animals may be held strictly liable for harm inflicted by the animals if the animal has previously shown itself to be dangerous.
True
Punitive damages are usually not available when a tortfeasor engages in only negligent conduct.
True
To protect their trade secrets, companies may require employees who have access to trade secrets agree in their employment contracts to never divulge those secrets.
True
The distributions of promotions and other job benefits according to a seniority system is normally a valid defense to a suit for employment discrimination
True (checked)
During emergency situations, if the principal cannot be consulted the agent may deviate from the principal's instructions without violating the duty of obedience.
True(checked)
32 Orbon signs a contract with Kiara, an unlicensed physician, to perform surgery on him. Kiana performs the surgery and does it well. If Orbon refuses to pay,
Unenforceable, because Orbon performance was a preexisting duty (possibly)
To finance the purchase of a house from Tuna, Uri signs an instrument promising to pay to "Verity Mortgage Service" $160,000 with interest in installments with the final payment due July 10, 2042. To be negotiable, this instrument must include the signature of
Uri.
Valley Commercial Space, Inc., orally contracts for a lease of its facilities to Willis for the use of his start-up driftboat company. Willis pays part of the price, takes possession, and improves the property for his boatbuilding enterprise. The contract is most likely enforceable by
Valley and Willis.
Ron, the manager of San-Mart Discount Store, detains Tina, whom Ron suspects of shoplifting. Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina
Was detained for an unreasonably long time
Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed, Inc. Each sack is stamped with the phrase "Twenty percent protein." This is
an express warranty
Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is
an express warranty
Riverside Ranch is a horse breeding facility. Steed Stables is a customer looking for a new stallion for its breeding program. Riverside's representative Tomas shows Steed a stallion that he says is very fertile and can easily breed twenty mares per year. This statement is
an express warranty.
MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is
an express warranty...
54 Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Freddi to be injured in a fall. Get n' Gear most likely breached
an implied warranty of fitness for a particular purpose
Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Freddi to be injured in a fall. Get n' Gear most likely breached
an implied warranty of fitness for a particular purpose
Neil goes to Oil Shop to change the oil in his car. Pat, the service technician, learns that Neil plans to take a trip and advises the use of a certain type of oil. The oil breaks down during the trip, damaging the car. Neil may recover from Oil Shop for breach of
an implied warranty of fitness for a particular purpose.
Fruits & Vegetables, Inc., and Grover's Market enter into a contract for the delivery of locally grown produce. The parties use a standard Fruits & Vegetables form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be sold. Grover's refuses to pay for the spoiled goods. Refer to Fact Pattern 19-1B. Fruits & Vegetables responds that it did not waive payment for spoiled produce in the parties' previous transaction. Fruits & Vegetables is arguing that the court should take into account
the course of dealing.
Fruits & Vegetables, Inc., and Grover's Market enter into a contract for the delivery of locally grown produce. The parties use a standard Fruits & Vegetables form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be sold. Grover's refuses to pay for the spoiled goods. Refer to Fact Pattern 19-1B. Grover's contends that the practice in the grocery trade with respect to payment for spoiled produce justifies its refusal to pay. Grover's is arguing that the court should take into account
the course of performance.
Pharma Company, Quitox Corporation, and Renal, Inc., are drug makers. Med Sales Company and National OTC, Inc., are drug distributors. In a suit against all of these parties in which market-share liability is imposed, most likely to be liable are
the distributors and the makers.
To establish prima facie case of disparate treatment employment discrimination in a hiring decision, a plaintiff must show all of the following except that
the employer rejected other qualified applicants who were members of the same protected class as the plaintiff
Lena buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,500 monthly salary to start at the beginning of the next month. The Statute of Frauds covers
the employment contract and the laptop purchase only.
Beta Grocers orders by phone twenty cartons of canned beets from Carotene Food Packers, Inc. After ten cartons are delivered and accepted, Beta repudiates the contract. Carotene can enforce the contract to
the extent of the ten accepted cartons.
Somethin'-in-the-Oven Corporation and Cookin' Good, Inc., transact a deal under the UETA. Other state law applies to a dispute between the parties relating to
the formation of the parties' contract.
Tastee Cola and Roy's of Nacogdoches center into a manufacturing franchise arrangement. This involves the transfer from the franchisor to the franchisee of
the formula to make a certain product and the right to market the product
Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel, including the land, building, furnishings, shares of stock in Suite Dreams Company, and a contract with Trudy to create an ad campaign. Reba suspects that Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs the sale of
the furnishings priced at $500 or more.
Watercourse Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates
the implied warranty of fitness for a particular purpose.
53 Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached
the implied warranty of merchantability
Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached
the implied warranty of merchantability.
Like most successful companies, Pads & Phones, Inc. (P&P), has trade secrets. The law protects those secrets if
the information is unique and has value to a competitor.
Excel Autos & Trucks, Inc., contracts to sell five trucks to First Leasing Corporation, which contracts to lease the trucks to General Delivery Company. Article 2A of the UCC applies to
the lease only.
SurgeStop Company makes electrical cords and other connectors for elec-tronic devices. Rollo files a product liability suit against SurgeStop, alleging a warning defect. In deciding whether to hold SurgeStop liable, the court may consider
the obvious risks of this product.
SurgeStop Company makes electrical cords and other connectors for electronic devices. Rollo files a product liability suit against SurgeStop, alleging a warning defect. In deciding whether to hold SurgeStop liable, the court may consider
the obvious risks of this product.
Jane enters onto Sam's property to help someone in danger. If Sam charges Jane with trespass to land, Jane has
A complete defense
Toni files a suit against Universal Media Corporation for defamation. Actual malice must be shown for recovery of damages if Toni is
A public figure
39 If a dispute over a written contact arises and the contract contains unclear terms, the rules of contract interpretation will seek to give effect to
the parties' intent as expressed in their contract.
Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is
the parties' intent.
U-Can-Own-It Corporation sells appliances to less educated consumers, including Viv, on installment plans. U-Can-Own-It files a suit against Viv when she stops making payments. Viv claims that the deal is unconscionable. The court will most likely consider
the parties' relative bargaining power.
National Grocers, Inc., enters into a contract with Overland Shipping Company for the delivery of a shipment of fresh produce. If ambiguities appear in the contract, they will be construed against
the party who drafted the contract.
Refer to Fact Pattern 24-1B. With respect to this instrument, Dominion is
the payee
Refer to Fact Pattern 24-1A. With respect to Flik's check, DeliMart is
the payee.
Refer to Fact Pattern 24-2B. With respect to this instrument, Sunny States Bank is
the payee.
Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Total World Sports, a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if
the price fixing has a substantial effect on U.S. commerce.
Nano Corporation offers to sell a robotic device to Motor Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Motor accepts the written offer. Refer to Fact Pattern 14-2B. Nano's best defense against enforcement of the contract is that Opal knew
the price was below the prices of comparable devices.
Sam and Tiffany enter into an implied contract. This is a contract in which the parties' conduct
defines the contract's terms.
WiFi Corporation, a U.S. firm, signs a contract with Bueno Computadores, Ltd., an Argentinean firm, for a shipment and payment for WiFi's goods. This is
direct exporting.
Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated gravel in payment. Clyde's neighbor Eden challenges the dig as an illegal gravel pit. A court orders a halt to the dig. Clyde's contract with Deephole is
discharged.
Speedy Assembly Company promises its employees a 10-percent raise at the end of the year if productivity has increased and management feels it is warranted. Speedy must
do nothing.
Agro Co-op, Inc., and Bio Feed Corporation are exporting firms that join together to export a line of products. Agro Co-op and Bio Feed apply to Charter Bank for a loan to fund their effort. Under federal law, Charter and other U.S. banks are
encouraged by credit guaranties to lend such funds.
Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. Refer to Fact Pattern 17-1B. Lacy's refusal to make further payments is most likely
excused by Kip's failure to fix the roof.
Delia enters into, and fails to disaffirm soon after reaching the age of majority, a contract with Electronics Stores, Inc. (ESI). Later Delia attempts to disaffirm the contract. ESI files a suit against her. The court will most likely consider the contract ratified if it is
executed
28 Amelia walks into Ollie's Tailoring Service and asks Ollie to custom tailor a dress for her. After Ollie tailors the dress, but before Amelia pays for it, the contract between Amelia and Ollie for the tailoring service is
executory
An injured party may sue only the manufacturer of defective products that are subject to comprehensive federal regulatory schemes.
false
Generally, the strict liability of manufactures and other sellers does not extend to injured bystanders.
false
Dependable Appliances, Inc., and Elain enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably
fit for the ordinary purpose for which such goods are used.
20 Pam is a real estate agent. She assures Padma that a particular parcel of commercial property is an excellent location for her restaurant even though she knows city zoning ordinances do not allow restaurants in the location. Padma buys the property and discovers the ordinance. Padma can most likely successfully resend the contract on the basis of
fraud (CHECKED)
Longlast Tools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that Longlast must provide
free repair or replacement of any defective part.
Significant business develops in Mexico for Natural Beauty Cosmetics, Inc., a U.S. firm. Natural Beauty appoints Ojos, Ltd., a Mexican firm, to act as Natural Beauty's marketing representative in Mexico. This is
indirect exporting.
In a dispute over a sale involving a bicycle, Dain argues that as to this deal Emory's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Emory's is a merchant by assessing whether
it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction.
Consumer Payments Processing Corporation (CPPC) and Mall Kiosk Company make a deal for CPPC's services, via e-records. Under the UETA, an e-record is considered received when
it leaves the sender's control.
Cleo sells kitchen appliances to persons who come into her store, Buy n' Sell Appliances. One afternoon, Cleo sells a used display shelf to Earline. At a garage sale at her home, Cleo sells a used sofa to Flavia. Under the UCC, Cleo is a merchant of
kitchen appliances only.
Peter, Paul, and Mary do business as partners as Puff's Tobacco Emporium. Paul develops a debilitating illness and can no longer work. Absent any express agreement to the contrary, Paul
may dissociate from the partnership
Fact Pattern 12-1BSal contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract. Refer to Fact Pattern 12-1B. Sal and Tasty
may rescind their contract to the extent that it is executory.
Sweet Fruits contracts with Fruits to You Inc. for delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking, a trucking company with refrigerated. On the day of delivery, the refrigeration units on Keep Kool's trucks are not working. Fruits to you
may ship the goods to Sweet Fruits using another trucking company with refrigerated trucks
A United States court enforces a judgment issued by a Japanese court in a contract dispute involving two American citizens. This is an example of the U.S. court using:
the principle of comity.
Business Abroad, Inc., a U.S. firm, obtains a judgment in a U.S. court against Quang Tri, Ltd., a Vietnamese business. Whether the court's judgment will be enforced by a court in Vietnam depends on the Vietnamese court's application of
the principle of comity.
Kevin, the owner of Livestock Ranch Corporation, signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's stock sale." This instrument is
negotiable
On May 1, Doug signs a check that is payable to the order of Employees Credit Corporation and that is dated July 1. This check is
negotiable
Rupert owes $5,000 in unpaid taxes. Using the back of an old t-shirt, he executes an instrument for $5,000 that otherwise meets the requirements for negotiability. This instrument is most likely
negotiable
Ryan signs an instrument using an "R" with a circle around it. With this mark for a signature, the instrument is
negotiable
USA Oil Corporation signs an instrument that states it is being executed "as per contract for a purchase of 4,000 barrels of oil dated May 1." This instrument is
negotiable
Will signs a check payable to "cash" and gives it to Yves. This check is
negotiable
Richard accepts on behalf of Digbert- but without authorization- an offer from Balin to build a new warehouse. Dibert does not ratify the contract. Between Balin and Digbert, there is
no contract Has no capacity or legality...
State Bank offers to lend money to Rodeo Promotions, Inc., at 15 percent interest. Before Rodeo accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Rodeo and the bank have
no contract for a loan.
The government of the United States and the governments of other nations have the power to enforce their respective national laws within their borders. The power to enforce international law within the borders of all nations rests with
no court or international organization
Bo is buying running shoes from Skeeter. Skeeter tells Bo a particular pair of shoes are "The best running shoes on the market. I'm sure they'll help you run longer and with less fatigue." Bo gets home and finds that they are incredibly uncomfortable and cause him joint problems. He also finds numerous negative reviews of the shoes online. Skeeter has likely committed the tort of:
no tort.
Bob owns a convenience store. After the store has closed, he is cleaning up before leaving and accidentally knocks over a quart of motor oil, which spills on the floor. He is too tired to clean it up, and thus leaves and plans to clean it in the morning before the store opens. During the night, a would-be thief sneaks into the store and slips on the motor oil, injuring his back. Bob is liable for:
no tort.
Superior Health Club's marketing strategies entice many of Tone-Up Exercise Club's members to change clubs. After less than a year in business, Superior surpasses Tone-Up in numbers of members. Superior is liable for
no tort.
51 Chords Guitars, Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is /// Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is
none of the above
Eustace and Durango Oil Company enter into an oral contract under which Eustace agrees to work on a Durango oil rig for not less than six months. This contract is enforceable by
none of the choices.
Garden & Yard Landscaping and Penelope enter into an oral contract under which she agrees to work on a Garden & Yard project on Valley Country Club's golf course for sixteen months. This contract is enforceable by
none of the choices.
Brasilia, a real estate broker licensed only in Connecticut, concludes a land sale in Delaware. She can
not collect the commission, keep it, or foreclose on the property.
55 Smith's Distillery makes and sells an alcohol and coffee beverage under the name "Java Juice". Williams Distillery later markets a similar drink under the name "Java Jooce". This is most likely
not infringement (possibly) pg. 158 NOTE: This is not a company name and is a product name at which uses two similar words Java Juice. Juice and Java are not unique to the brand, product or of creative work and can be distinguished from its origin. This is seen in modern businesses with phrases of "Strawberry Margarita" and "Strawberry Margarita" at a similar business. Additionally, there is no information about how the business owner took any effort for the registration trademark of the name Java Juice.
Noni, a seventeen-year-old, signs a contract to sell her car to Metro Used Cars. The next day, Noni tells Metro that she's decided not to sell the car. Noni is
not liable to Metro.
Mary promises to pay her assistant Ned $10,000 in consideration of the services he provided over the years. Mary never pays Ned. Mary is
not liable, because the consideration is in the past.
40 Tony wants to settle a lawsuit with Lisa, but she tells him she doesn't want to settle. Tony says "That is your decision, but if we go to trial on this thing, our lawyers are going to go all out. You are going to be embarrassed by some of the evidence that we present." Fearing the effect that the evidence which will be lawfully introduced at trial will have on her reputation, Lisa agrees to settle. Lisa later regrets the settlement and wants to avoid the agreement. Which of the following is correct
not valid because performance of this contract is personal in nature. (CHECKED)
Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to
nothing more.
Rumsfeld is an agent for Security Consulting Company. In the course of Rumsfeld's performance for Security Consulting, he enters into an authorized contract on behalf of Security Consulting, which Security Consulting breaches. Rumsfeld is sued under the contract and has to pay damages. Rumsfeld's right to be repaid for these damages arises under the principal's duty of
reimbursement
Jody is an agent for Kwik Credit Company (KCC). In the course of Jody's performance for KCC, Jody pays Leo for certain auto maintenance and repair services. Jody's right to obtain the amount of those payments from KCC arises under the principal's duty of
reimbursement.
Sunshine Cell Phone Company offers to buy a laser printer, with a case of paper and an extra cartridge, from Office Products, Inc. (OPI), for $200. Paul, OPI's representative, says, "Okay, but no paper and no extra cartridge." Paul has
rejected the offer and made a counteroffer.
Linea, an employee of Hard Labor Industries (HLI), is injured in a work-related accident. Based on the diagnosis of Newt, a doctor, Linea accepts $50,000 from HLI and waives the right to future claims. Newt's diagnosis later proves to have been wrong.
set aside the settlement with HLI.
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples. Refer to Fact Pattern 17-2A. A strike delays delivery of the apples by ten days. Evelyn's contract with Hill & Dale is
suspended.
The government of Iran violates an international law. Persuasive tactics to remedy the situation fail. The only recourse of other nations is to
take coercive action - sever relations, impose boycotts, go to war.
The government of North Korea violates an international law. Persuasive tactics to remedy the situation fail. The only recourse of other nations is to
take coercive action—sever relations, impose boycotts, go to war.
Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is
terminated
Omar hires Petra, a real estate broker, to act as his agent to sell his land for $150,000. Oil is discovered beneath the land, causing its market value to increase considerably. The agency agreement is likely
terminated by operation of law
Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is
voidable if Fay lacks the capacity to comprehend the consequences.
Digital Architecture, Inc., agrees to design robotic software for equipment owned by Chassis Assembly Corporation. Whether or not this agreement meets all of the requirements of a contract, the parties are most likely to follow the rules of contract law because they
want to avoid potential disputes.
Ron, the manager of Sav-Mart Discount Store, detains Tina, whom Ron suspects of shoplifting. Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina
was detained for an unreasonably long time.
Oak Valley Mall contains two video game stores, Pirates Pick and Game Quest. Pirate's manager Ryan stands in the mall near Game Quest's entrance to divert customers to his store. Game QUest's manager Sara asks Ryan to leave. He refuses. Ryan has committed:
wrongful interference with a business relationship
Lanie applies for a job as a laboratory scientist, but is not hired because she only has a bachelor's degree in biology when the employer requires a master's degree in biology. Lanie believes that this requirement has an unintended discriminatory effect on women, since fewer women obtain master's degree than men. if she sues for discriminations based upon this requirement, a valid defense the company can assert is
both A & C are valid
Nina is Jewish and Odell is a college student. Based on this information, which status is a protected class under employment discrimination law?
both b & c are correct. Nina's status as being Jewish. Nina's status of being a female.
Scot enters into a contract with Tiffany that later proves voidable at Tiffany's option. If she elects to avoid any duty to perform under the contract
both parties are released from it
Vernon claims that his contract with Ulani for catering services is voidable. If their contract is avoided
both parties are released from it.
Simpatico Business, Inc., a U.S. firm, expands into international markets through a joint venture. In the venture, Simpatico shares
both the profits and liabilities
Regional Investment Corporation (RIC) hires Sam, a real estate agent, to locate investment properties for RIC. Sam learns of a warehouse available for $100,000, but neglects to tell RIC. Most likely, Sam
breached the agent's fiduciary duties to the principal.
Qang and other foreign citizens allege human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can
bring civil suits under the Alien Tort Claims Act.
Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Gooey Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongful interference with a
business relationship
Dorothy eats a candy bar made and sold by Eastwich Candy Corporation and becomes ill. Dorothy files a suit against Eastwich, alleging that the candy bar was not merchantable. Merchantable food is food that is fit to eat on the basis of
consumer expectations
Rita eats Salsa Caliente made and sold by Salsa Zest Corporation and becomes ill. Rita files a suit against Salsa Zest, alleging that its product was not merchantable. Merchantable food is food that is fit to eat on the basis of
consumer expectations.
In negotiations with Diamond Refining Company, Coastal Oil, Inc., insists that their contract be drafted according to certain plain language laws. These laws concern the phrasing of
contracts that include unfamiliar legal terms.
Radford and Serenity sign a written contract for the sale of Rad's Coffee & Bagels business to Serenity. The parties intend their written contract to be a final statement of the terms of their agreement. Refer to Fact Pattern 15-2A. Serenity later disputes some of the provisions in the deal with Radford. If the dispute results in litigation, a court will most likely exclude evidence that
contradicts the written terms.
International Cardboard is not legally required to recycle all excess materials used in its plants rather than dump them in a landfill, but it voluntarily chooses to do so simply because it wants to reduce its environmental impact and be a good corporate citizen. This is an example of the concept of
corporate social responsibility
The basis for India to give effect to the laws and court decisions of the United States is primarily
courtesy and respect.
18 Bryan enters into a contract with Artifact Shipment, Inc., to pack and ship wooly mammoth skeleton from Russia to the United States for a certain price. In computing the price, Artifact mistakenly adds some costs improperly, resulting in a contract price that is $5,000 less than what Arifact intended to put in the contract and had previously told Bryan. If Arifact wants to rescind the contract, tis best argument is.
that its error was a unilateral mistake of fact that was due to a mathematical error and was made without gross negligence. OR IF GIVEN: allow the parties to rescind the contract.
Elroy is a politician and sues the New York Times for defamation based upon a statement about him that appeared in their paper. In order to recover damages, Elroy must prove:
that the statement was false and defamatory and was made with actual malice.
Hu believes that he is a victim of a form of employment discrimination that falls under the Civil Rights Act of 1964. Compliance with this statute is monitored by
the Equal Employment Opportunities Commission.
Freddie's Flowers, LLC, is a limited liability company. It's members are Freddie and Lucia. Unless indicated otherwise on Freddie's Flowers federal tax form
the LLC itself will not pay federal income taxes on its profits, but Freddie and Lucia will pay federal income taxes on their shares of the profits. (OR a partnership)
Hemisphere Financial Corporation, a U.S. firm, files a suit against Italy in a U.S. court. Italy claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act, this claim is determined by
the U.S. court in which the suit is filed.
Rodeo, S.A., which is based in Spain, enters into a contract for the sale of seven hydraulic lifts to Tonnage Shipping Company, which is based in the United States. This contract is governed by
the United Nations Convention on Contracts for the International Sale of Goods.
The United States and other members of a certain organization agree to grant normal trade relations (NTR) status on each other with regard to im- ports and exports. This organization is
the World Trade Organization.
Global Marketing, Inc., a U.S. firm, owns property in Honduras. The government in Honduras takes Global Marketing's property without paying for it. A U.S. court will probably not examine the validity of this act committed by Honduras within its own territory, under
the act of state doctrine.
Global Properties, Inc. (GPI), a U.S. firm, owns property in Hong Kong. The government in Hong Kong takes GPI's property without paying for it. A U.S. court will probably not examine the validity of this act committed by China within its own territory, under
the act of state doctrine.
Sudan seizes the assets of Triage Medico, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by
the act of state doctrine.
Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states "12 percent." The parol evidence rule governs
the admissibility in court of oral evidence.
Fact Pattern 23-1B Sociedad Guarantia (SG), a Mexican firm, borrows $1 million from Tri-national Bank, a U.S. firm. Later, SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of payments on the loan. Tri-national files a suit against SG in a U.S. court, arguing that the funds do not belong to SG.Refer to Fact Pattern 23-1B. The U.S. court in Tri-national's suit is most likely to apply the principle of comity because
the bankruptcy proceedings in the Mexican court appear to be fundamentally fair and not in violation of U.S. public policy.
Moe applies nano technology to invent a device that reduces the half-life of spent plutonium rods used in nuclear-fuel reactors. He names the device "Halftime." He also writes Nano Nukes, a book about this invention and other uses for nano technology. Moe can obtain copyright protection for
the book Nano Nukes.
Shady Oaks Development, LLC, and Rural Acres, Inc., sign a written contract for a sale of land. In some states, to be enforceable, this contract must include
a description of the land.
Overnight Delivery Service delivers a package to Pam. At the request of Overnight's delivery person, to acknowledge receipt Pam signs a digital pad. This signing creates
a digitized handwritten signature.
Erasmus applies for a job at Drain-Pro Plumbing & Repair LLC for which he is well qualified. He passes a test to determine which applicants are eligible for hiring, but the employer discards the results, and Erasmus is rejected. Drain-Pro continues to seek applicants. Erasmus files a suit against Drain-Pro under the Civil Rights Act of 1964, claiming reverse discrimination. To support this claim, Erasmus must show that he is a member of
a majority group.
15 Noah sells an apartment building to Delilah with a promise to install a new heating and air conditioning system before August 1. The following March 1, Noah sends Sampson, an HVAC technician, to begin the installation. Delilah orders Sampson to leave and refuses to make further payments to Noah, who files a suit against Delilah. 2
a material breach (CHECKED)
Trina pays Urban Edge Electronics store $1,500 for a laptop computer. Under the UCC, this is
a sale.
Constellation Research Inc. uses a mark associated with its name to distinguish its services from those of other tech firms. This mark is
a service mark.
Louis-larger and stronger than Mica-threatens to hit Mica and then hits and injures him. Mica files a suit against Louis for assault and battery. Mica will most likely recover for
assault and battery.
Bild-Rite, Inc., is a Colorado-based firm that does business with clients throughout North America. Bild-Rite oversees construction projects, and buys and sells commercial buildings, undeveloped land, and construction supplies and other goods. Bild-Rite has had to deal with work-site theft and vandalism. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for
commercial transactions for the sale of and payment for goods.
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. Refer to Fact Pattern 17-1A. With respect to Mutual's duties, Neil's performance most likely
discharges Mutual from the contract.
Wang Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is
dumping
Gary threatens physical harm to force Hugh to sell his business, Imports from Asia, Inc., to Gary for a below-market price. This is
duress.
Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is
enforceable
Joel contracts to hire Huong for one year to tend the orchids in his commercial greenhouse but reserves the right to cancel the employment on one month's notice at any time after Huong begins work. This promise is
enforceable
Sea Locate, Inc., makes and sells marine navigation equipment, through independent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers
only a seller's written promises.
Joy invites Ken into her apartment. Ken commits trespass to land if he
refuses to leave when Joy asks him to go.
Nico is a passenger in a car driven by Owen, whose negligence causes an accident, injuring himself. Nico, uninjured, accompanies Owen to Parkside Hospital in an ambulance. The ambulance is hit by a car driven by Quin, injuring Nico. Nico files a suit against Owen, whose best defense is
superseding cause.
Quito contracts with Rewind Graphix, Inc., to pay $5,000 for its work on the animated film "Song." After Rewind performs, they sign an accord, in which Quito promises to pay $4,000 within ten days instead of $5,000 later. But Quito does not pay. Rewind can sue Quito under
the accord or the original obligation.
The extreme risk of an activity is a defense against imposing strict liability
false
Backwater Heavy Equipment Corporation currently employs three hundred full-time workers. Because business has declined, Backwater plans to lay off one hundred workers. If Backwater does not send advance notice of the layoff to the appropriate parties, the employer may be subject to
fines, employee back-pay awards, attorneys' fees, and more.
Greta is the only female employee in the maintenance department of Hydro Hydraulics Inc. Greta's supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. This is
hostile environment sexual harassment.
In a majority of states, with respect to any partnership obligations, the partners are
liable for all partnership obligations, jointly and severally.
Niche Credit, Inc., is one of Cut-Rite Notching Corporation's two major creditors. Niche guarantees Cut-Rite's debt to the firm's other major creditor, Manufacturers Capital Bank, to forestall litigation. To be enforceable, this guarantee
need not be in writing if it benefits Niche Credit.
Statutes of repose places outer times limit on product liability actions.
true
40 Ty promises to buy a shipment of illegal, unauthorized copies of a new movie from Melanie, who promises to deliver on October 10. These promises are most likely
void (possibly)
On Tim's eighteenth birthday, he decides that he no longer wants to keep a car he bought from Woody's Autos, Inc., when he was seventeen. His right to disaffirm the deal will depend on
whether Tim acts within a reasonable period of time.
Ladd throws a rock intending to hit Minh but misses and hits Nasir instead. On the basis of the tort of battery, Nasir can sue
Ladd
Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Speedy are liable to
Only those whose injuries could have been reasonably foreseen
Jaqy distributes a handbill among her neighbors accusing one of them—Ked—of being a convicted sex offender. The statement is defamatory only if
The statement is false
Beck draws a check payable to "County Farm Supply" to buy a quantity of fertilizer to deposit in Beck's field. This check is
a draft
Fleet Feet Corporation makes athletic shoes. Gloria, a marathoner, files a product liability suit against Fleet Feet, alleging a design defect. In deciding whether to hold Fleet Feet liable, the court may consider an alternative design's
advantages and disadvantages.
Nesbit publishes in a newspaper an account of the sex life of Merinda, who is not a public figure. The information is true. This is most likely
an invasion of privacy.
Stu makes an offer to Tina to enter into a contract. Tina accepts the offer. A valid contract requires
an offer and an acceptance.
Ginamarie files a suit against Gaming Innovators Unlimited, Inc., to enforce a written contract between the parties. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove
an orally agreed-on condition precedent.
Refer to Fact Pattern 24-1A. Flik's check is most likely
an order to pay.
Natalie agrees to assume Orina's debt to Consumer Credit Corporation. Natalie does not get any personal benefit for the agreement. To be enforceable, the promise must be in writing if the debt is for
any amount.
2 If a contract contains a clause stating that any assignment is "void," this ordinarily prohibits
any assignment (CHECKED)
Dan has AIDS, Eve is blind, and both work for First National Bank. Considered disabled under the Americans with Disabilities Act
are Dan and Eve.
Most states require that a limited liability company have
at least one member (checked)
Macro Corporation and National Purchasing Company may create an agency agreement
by conduct, in writing, or orally.
Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15. The delivery and installation of the sink and the payment of the price are examples of
concurrent conditions.
McCoy enters into a contract to operate a Tasty Yogurt franchise, which Tasty agrees to support as long as McCoy maintains his business license. Tsaty's duty to perform is
conditional.
Juana contracts to sell Ignacio her MP3 player for $30. This contract will be fully discharged when Juana and Ignacio
exchange the player for the $30.
An action in strict product liability requires that a product be in a defective condition caused by its purchaser.
false
Nero makes an honest but erroneous statement that misrepresents a material fact in a contractual transaction with Odell. Nero is guilty of
innocent misrepresentation.
Stan, an air-conditioning and heating technician, files a suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock. Temp-Set's best defense is most likely
knowledgeable user.
Eagle, Inc., a U.S. firm, contracts with Fong, Ltd., a Hong Kong firm, allowing Fong to use and profit from Eagle's patented products. This is
licensing
Olena signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable "with interest at the legal rate." This note is
negotiable
Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This is
not fraud.
Fruits & Vegetables, Inc., and Grover's Market enter into a contract for the delivery of locally grown produce. The parties use a standard Fruits & Vegetables form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be sold. Grover's refuses to pay for the spoiled goods. Refer to Fact Pattern 19-1B. Fruits & Vegetables files a suit against Grover's, claiming that the buyer assumed the risk of the spoilage of the unsold produce. The court may allow evidence of this term if it finds that the parties' contract is
not fully integrated.
Quick Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company. Before accepting the offer, Rapid learns that the palettes have been sold to Speedy Trucking Corporation. Quick is
not liable, because the sale revoked the offer to Rapid.
Jill and Karl contract for the sale of Jill's horse for $1,000. Unknown to either party, the horse has died. Karl is
not required to pay due to the mutual mistake.
Roc buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roc later learns that the law does not permit the land to be used for housing. Roc may
not rescind the contract.
As the beneficiary of a business trust, Arnold's liability for the trust's debts and obligations is
nothing (Checked)
In selling a house, Robin tells Destry that the wiring and plumbing are of a certain quality. Robin knows nothing about the quality, but it is not as she specifies. Destry buys the house. Refer to Fact Pattern 14-3B. Under these circumstances, Destry's best course of action is most likely to
recover damages or rescind the contract to buy the house.
Crosscreek County and Bridgework Corporation enter into a construction contract that includes mathematical specifications. Later Crosscreek, whose engineer, Damon, compiled the specs, learns that some of the dollar figures are incorrect. Bridgework refuses to agree to changes. A court would most likely
reform the contract to reflect the figures accurately.
Kelsey promises to pay Jon, her son, $15,000 if he obtains his degree at Ivy University, where he is currently in his second year. Jon graduates. Kelsey is
required to pay, because Jon obtained a degree at Ivy.
Cooper offers to sell Gable his sport utility vehicle (SUV) and says that it has never been in an accident. Relying on Cooper's statement, Gable buys the SUV. Later, when it develops mechanical problems, Gable can
rescind the contract on the basis of fraud.
Urban City and Thru-way Construction Company enter into a contract that includes calculations. Urban, whose engineer, Sergei, compiled the figures, discovers later that some numbers were added incorrectly, but Thru-way refuses to make changes. Urban can
rescind the contract on the basis of mistake.
28 Deniah is a wealthy child actor. Malcolm is a lawyer and her uncle, and manages her wealth for her. Malcom induces Dinah to sign a contract to invest her money in a risky investment. Unknown to Deniah, Malcom earns ongoing commissions from the investment, and that is the only reason he has invested her money this way. Most likely, Denah may
rescind the contract on the basis of unconscionability Rescind the contract on the basis of Mistake (CHECKED)
Paula, a disabled person, applies for a job at Quantity Corporation for which she is well qualified, but for which she is rejected. Quantity continues to seek applicants and eventually fills the position with a person who is not disabled. Paula is most likely to succeed in a suit against Quantity for discrimination under the Americans with Disabilities Act of 1990 if she can show that
she was not hired solely because of her disability.
Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates. Lake Port's offer to perform, when Lake Port is ready, willing, able to do so, is
tender.
Glenn and Haji sign a written contract. Glenn claims that the parties later orally agreed to modify it. Any oral modification is likely not enforceable if it falls under
the Statute of Frauds.
Rita is appointed as an agent for Superior Sales, Inc. The agency agreement is silent as to the level of sales that Rita is expected to achieve. She must
use reasonable diligence and skill in selling
45 Which of the following element of a valid contract?
An offer of acceptance
In the modern business world, agency relationships are quite rare
False
41 For consideration to be adequate to support a valid contract, the value of whatever is exchanged must be
Legally sufficient (possibly)
Lindsey, an emergency medical technician, is called to an accident scene by Nicole and renders medical care to Marvin, a minor. Lindsey may recover the cost from
Marvin
A partner owes to the partnership and the other partners a duty of loyalty.
True (checked)
If an agency agreement is silent with respect to the level of performance expected of the agent, the agent must
Use reasonable diligence and skill in carrying out the objectives of the agency agreement
Clem, a Delite Dairy salesperson, follows Edna, a salesperson for Festive Foods, a Delite competitor, as Edna visits stores to make sales. Clem solicits each of Edna's customers. Clem is most likely liable for
Wrongful interference with a business relationship
Lyn is injured when she is struck by debris floating on her property flooded by a breach of Mining Company's reservoir. The rule that a person who engages in certain activities may be liable under the doctrine of strict liability for any harm that results was established in
Rylands v. Fletcher
Sea & Surf Corporation makes sailboards, which are bought and distributed by Tropical Marketing Company to UV Sports Stores, Inc., which sells them to consumers. Wen is injured while using a Sea & Surf board that he bought from UV Sports. In a product liability suit based on strict liability, Wen may recover from
Sea & Surf, Tropical Marketing, or UV Sports.
Security Armored Car Corporation employs Theo as an agent. Without Security's knowledge but otherwise acting within the scope of employment, Theo commits a crime. The state can successfully prosecute
Theo only.
20 People who keep domestic animals may be held strictly liable for harm inflicted by the animals if the animal has previously shown itself to be dangerous.
True
21 Under federal law, an e-document is an enforceable as a paper one Under federal law, an electronic document can be as enforceable as a paper one. (true)
True
22 If a party signs a release to settle a lawsuit, that party is barred from pursuing any amounts beyond what is stated on the release
True
23 When the determining whether a product is defectively designed, courts will consider the economic feasibility of any available alternative design.
True
25 Browse-wrap terms are usually enforceable
True
28 Situations in which employers face ethical issues with respect to social media platforms include conducting an Internet search to discover what a job candidate has posted.
True
A franchise is a contractual arrangement.
True
A trade name can be protected under the common law, but only if it is unusual or fancifully used.
True
Businesses owe a duty to warn customers of risks the business knows or should have known of
True
Compensatory damages are available in cases of intentional discrimination in violations of Title VII of the Civil Rights Act of 1964.
True
Some states prohibit termination of a franchise contract without good cause
True
Sometimes a bystander may recover damages relating to a physical injury suffered by someone else
True
The alter-ego theory of piercing the corporate veil can be applied to a corporation or a limited liability company
True
Tort law provides remedies for acts that cause personal physical injury as well as damage to property.
True
Under federal law, sexual harassments includes discrimination based upons sexual orientation T/F
True
18 Corporate officers and directors might be held criminally liable for the actions of employees under their supervision.
True Pg.228digital
When a sole proprietor dies, the sole proprietorship
automatically dissolves (checked)
Which of the following is true with respect to international law?
"International law" is really a mix of international customs, treaties, and organizations that most nations follow, but which aren't authoritatively enforced by any worldwide sovereign.
In selling a house, Robin tells Destry that the wiring and plumbing are of a certain quality. Robin knows nothing about the quality, but it is not as she specifies. Destry buys the house. Refer to Fact Pattern 14-3B. On learning the truth, Destry confronts Robin, who says she was not trying to fool him¾she was only trying to make a sale. This is
fraud.
Fresh Meds, Inc., a U.S. firm, contracts with Gong, Ltd., a Hong Kong firm, al-lowing Gong to use and profit from Fresh Meds' patented products. This is
licensing
Chile has a civil law system. In theory, in this system, the courts
may not develop their own laws.
Federal overtime provisions only apply after an employee has worked
more than 40 hours in a week
Cartier, an accountant, convinces his client Bianca to sign a contract to invest her savings in a nonexistent social-networking Web site. When Bianca learns the truth, she can
rescind the contract to invest in the Web site.
Conrad and Delilah are employees of AgriBio Feed & Seed Corporation. Under the Equal Pay Act of 1963, AgriBio can legitimately pay different wages on the basis of
seniority
Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when
sent
E-Business, Inc. files a suit against Federated Financial Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in
some states.
Safe-T-Made Company makes electrical cords and other connectors for electronic devices. Rowena files a product liability suit against Safe-Rite, alleging a warning defect. Under the Restatement (Third) of Torts: Products Liability, in deciding whether to hold Safe-T-Made liable, the court may consider
the characteristics of expected users.
Tia signs a lease that states any change in the zoning law that affects the lease will cause its termination. Union City's zoning board adopts an affecting zoning classification. This adoption satisfies
the condition subsequent.
On April 1, KO Contractors, Inc., contracts to build a store for Lo-Cost Housewares at a specific location in Metro City. On May 1, Metro changes its zoning law to prohibit the construction of a commercial building at that location. Lo-Cost files a suit against KO. In this situation
the contract is discharged.
Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Irish court's decree. This is
the principle of comity.
50 Mark promises to buy Jack's used computer for $600. With respect to this promise, Mark is
the promisor. (possibly)
Ruth, a minor, charges groceries at Sam's Mini-Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's
the reasonable value of the groceries.
Reprise Entertainment, Inc., a U.S. television and movie production company, files suit against Substantivo TV, Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the United States and Mexico are signatories to TRIPS and under that agreement, Reprise is entitled to receive
the same rights and protections in Mexico as Substantivo.
Drew tells his Excel Company coworkers that Fiona, Excel's office manager, is stealing from their employer. The statement is defamatory only if
the statement is false.
Domestic Auto Sales, Inc., promises its salaried employees a bonus at the end of the year if management thinks it is warranted. This promise is
unenforceable because it is not supported by consideration.
A deal between Lou and Mike requires a transfer of stolen body building equipment for counterfeit currency that Mike will attempt to spend at Now! Discount Mart. This contract is
void
Courtney promises to buy illegal digital copies of music and movies from Devin, who promises to deliver on August 15. These promises are most likely
void
Trey, an agent for Uno Music Corporation, executes an unauthorized contract with Variety Recording, Inc., that is highly advantageous to Uno. Variety withdraws from the deal before Uno ratifies the contract. The contract is
void
47 Robert is a bookmaker who accepts bets on sporting events. Raymond tells Robert he wants to place a bet with him on a college football game. Before Raymond gives Robert the money for the bet, a state statute is enacted that outlaws gambling on sporting events. Robert and Raymond have
no contract. (possibly)
Rye signs a $1,000 note payable, at 6 percent interest, on May 1 to Suburban Bank and writes on its face that it is "nonnegotiable." This note is
nonnegotiable, because it includes the notation "nonnegotiable."
Kelly signs an instrument in favor of Leo that states it is "subject to a cer- tain agreement between Kelly and Mona." This instrument is
nonnegotiable, because it is made subject to a separate agreement.
Clyde enters Desert Decathlon, an athletic competition in which Clyde has often competed. Regarding the risk of injury, Clyde assumes the risks
normally associated with the Decathlon.
Ruth is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee. The owner announces that some employees will be discharged. Ruth tells Tim that if he has sex with her, he can keep his job. This is
quid pro quo harassment.
Every individual has a duty to use reasonable efforts to rescue others that are in peril.
False
For an infringement of copyright to occur, the reproduction must be exactly the same as the original.
False
7 Any aggressive marketing intended to pull customers away from a competitor is wrongful interference with a business relationship.
False
A "tort" is a legal term that refers to the breach of a business agreement for which a party has suffered financial damages.
False
A buyer's failure to cover will bar him or her from using any other remedies available under the UCC
False
An agent's authority can be express, but cannot be implied
False
Party Time, Inc. and Rock It, Corp. form a joint venture. Party Time can participate in the venture's management
to any extent
Boris pushes Cordelia. She falls and breaks her arm. Boris is liable for the injury
If he intended to push Cordelia
Gary, Channing, and Presley form a syndicate to buy a major league baseball team. This syndicate could be set up as
a corporation (OR, Limited liability partnership...)
Jennifer designs a new pair of sneakers and begins advertising them using pictures of a famous athlete wearing them, without the athlete's permission. The athlete can sue Jennifer for
appropriation
12 Ronnie has designed a new pair of sneakers. To market his sneakers, Ronnie uses pictures of a famous athlete wearing the shoes in an advertising campaign without the athlete's permission. The athlete can sue Ronnie for
appropriation.
Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises
automatically
Clive is a purchasing agent for Double D Ranch with the authority to buy cattle at a certain auction. After the cattle are bought, the agency relationship terminates
automatically.
Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is
confiscation.
Super Tool Company makes tools for consumers and construction professionals. While using a Super tool to replace an electrical outlet, Tom neglects to shut off the power and is electrocuted. Against a suit filed by Tom's heirs, Super's best defense is
contributory negligence.
Dian, a clerk at an Entertainment Unlimited store, takes a video game player from the store without permission. Dian is liable for
conversion
Janet attends a musical, and as she leaves, she grabs a coat that she believes is hers. It is actually Pam's coat. Janet takes the coat home and the following week, she donates it to Goodwill. With respect to Pam, Janet has committed
conversion
National Computer Corporation (NCC) employs Cynthia as an agent. NCC gives her an exclusive territory in which to sell NCC products. NCC cannot compete with her in that territory under the duty of
cooperation.
Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the reward because he
did not know of the reward when he found and returned the dog.
Ruth contracts to provide Shelly with fifty hours of telepathic personal coaching. The state legislature subsequently passes a law making telepathic personal coaching illegal. This law will
discharge the contract.
Alan offers to transfer Beth's DVDs to digital flash drives for $150 plus the cost of the drives. The mailbox rule will not apply if Beth accepts the offer by
e-mail.
Cary is fifteen. In most states, Cary would be considered a minor because she is under the age of
eighteen
Genuine Class Hotels, Inc.'s CEO believes in running a business pursuant to the stakeholder view of CSR. This means that in making business decisions, he considers the impact of his decisions on the businesses'
employees, owners, customers, creditors, suppliers, and the community.
Regular Insurance Company violates a state statute when selling an insurance policy to Simone. As a member of the class of persons protected by the state statute, Simone can
enforce the contract OR recover the payment.
Recreation Supplies, Inc. (RSI), and Sam, the owner of a Tourist Time shop, orally agree to a sale of beach balls and seashells for $1,000. Sam gives RSI a check for $400 as a partial payment. This contract is
enforceable to the extent of $400.
On behalf of the jazz group Synco-Passion, their manager Raul agrees to a performance in the Quay Club on May 1. Portia, acting for Quay Club, sends a written copy of the agreement to Raul to be signed. Typically, businesspersons put their contracts in writing to
ensure proof of the contracts' existence.
Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's sport utility vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino's is
executory
ERROR BioChem Corporation, ChemCo Company, and DexLabs Inc. make and distribute toxic chemicals. In a product-liability suit against all of these parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties
exercised the least amount of due care in making the product. (supplied the particular product that caused the injury.)
Miranda is a U.S. citizen working in Europe for Tourist Vacations, Inc., a U.S. travel agency. Tourist fires Miranda for reasons that she believes violate U.S. antidiscrimination laws. Those laws apply
extraterritorially
Lew angrily accuses Meg, a broker with New Financial Services, of fraudulently inducing him to invest in Open Pit Oil Company, whose wells are dry. The reliance that gives rise to liability for fraud is normally based on a statement of
fact
The doctrine of strict liability can be applied to sellers of goods, including manufacturers, but not distributors.
false
There is a duty to warn about risks that are obvious or commonly known.
false
To successfully assert a design defect, a plaintiff has to show that no reasonable alternative design was available.
false
Under a theory of market-share liability, a manufacturer sells "shares" of its potential strict liability and thereby spreads the risk and the cost.
false
The Federal Trade Commission's Franchise Rule is designed to protect
franchises from being taken advantage of by franchisors
31 Clean Face makes face wash for acne. Clean Face intentionally mislabels its packaging on its products to conceal a defect. Trusting and relying on the mislabeling. Denice buys a Clean Face product and suffers an injury. Clean Face is most likely liable for
fraud
Olin, a professional artist and art teacher, convinces Plato, who has no artistic ability, that he has considerable talent and induces him to pay Olin $10,000 for art lessons. When Plato realizes the truth, he files a suit against Olin. Plato is most likely to recover on the basis of
fraud.
26 In an auction Vince pays $1,000,000 fir a famous painting, believing it is worth more than that. The painting is actually worth less, and the reason Vince thought it was worth more is because he read the item description incorrectly, even though the term description was entirely accurate. If Vince tries to cancel his purchase,
he will not be successful
Cook's Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of
hidden risks
Jenna is fifteen years old. Under the Fair Labor Standards Act, Jenna cannot work
in a hazardous occupation.
Gladys, the chief executive officer of Home Electrical, Inc., signs an instrument by using a rubber stamp with her thumbprint on it. This instrument is
negotiable
Cherry is injured in an accident caused by Bronco. Bronco agrees to pay Cherry $2,500 if she agrees to release him from further liability. Cherry agrees. If Cherry's damages ultimately exceed $2,500, she can
not collect the balance from Bronco.
42 Winger Buildings, Inc. agrees to build a house for Pierce for $150,000. Winger runs into the types of difficulties that contractors ordinarily confront, and refuses to finish the house unless Pierce pays him another $25,000. In order to get his house built, Pierce promises to pay this extra amount. Regarding the agreement to pay more, a court would likely
not enforce it. (possibly)
MedBeat Inc., makes medical devices, including heart pacemakers. Nina, a heart patient, files a product liability suit against MedBeat, alleging a warning defect with respect to its pacemaker. In deciding whether to hold MedBeat liable, the court may consider whether there is a foreseeable risk of harm posed by the pacemaker and
the omission of a warning renders the pacemaker not reasonably safe.
Amy is a member of Tough Stuff, LLC, a limited liability company. Amy can participate in the firm's mamanegement
to any extend without jeopardizing her personal liability protection. (OR to any extent)
Dale files a suit against Eve, alleging her fraud in entering into a contract with him. Proof of an injury is required
to recover damages.
A product liability action based on negligence does not require privity of contract between the injured plaintiff and the defendant-manufacturer.
true
Because many products cannot be made entirely safe for all uses, sellers or lessors are liable only for products that are unreasonably dangerous.
true
Generally, a seller must warn those who purchase its product of the harm that can result from the foreseeable misuse of the product.
true
Manufacturers must use due care in inspecting and testing any purchased components used in a product.
true
Manufacturers must use due care in selecting the materials to be used in a product.
true
Cupcake Creations, Inc., employs one hundred workers at three locations in two states. Under federal law, Cupcake must provide its employees, during any twelve-month period, family or medical leave of up to
twelve weeks.
Dinah contracts to repair a rip in a ventilation duct for Ernie's Café for $100. If Dinah does not perform, Ernie must pay
$0
Leo slips and falls in Mornin' Breakfast Café and is injured. Leo files a suit against Mornin' for $50,000. If Leo is 20 percent at fault and Mornin' is 80 percent, under a contributory negligence doctrine, Leo would recover
$0
Locke signs a check payable to the order of Metro Bank, filling in the blanks for the amount with the figures "$100" and "One thousand and 00/100 dollars." This check is payable in the amount of
$1,000
Teresa is a celebrity. Without her permission, Sinclair Enterprises includes in an ad an image that resembles her. Sinclair does not use Teresa's name or actual likeness. This is most likely
Appropriation
As Bill walks by Jane at the office, Jane grabs him on the buttocks. What tort has Jane likely committed?
Battery
Pam files a successful suit against Quality Market based on Quality's negligence. Normally, an award in such a suit consists of
Compensatory damages
In a lawsuit for fraud proof of an injury is required to
Damages to be awarded (Checked)
Ada mistakenly pays property taxes that should have been assessed against Bud. Ada can recover the amount from Bud in quantum meriut
EVEN if Bud was NOT aware of the error.
Molly shoots Norm with Opal's pistol. The proximate cause of Norm being shot is most likely attributable to
Molly only.
Deleon trespasses on Capital Corporation's property. Through the use of reasonable force, Capital's security guard Brenda detains Deleon until the police arrive. Capital is most likely liable for
None of the choices
Reality Financial Corporation, a U.S. firm, files a suit against Switzerland in a U.S. court. Switzerland claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act
Reality Financial must show that Switzerland is not entitled to sovereign immunity.
25 Brad is injured when he is struck by debris floating on his property, which was flooded by a breach of King Ranch's reservoir, which is adjacent to Brad's property. The breach of the reservoir was not caused by any negligent conduct of King Ranch. In this situation, if the court holds King Ranch liable, it would be under the doctrine of
Resipsaloquitor
Resources Recovery, Inc., uses dynamite in its remote mining operations. Sabrina stores household cleaners in his suburban garage. Most likely liable under the doctrine of strict liability for any injury caused by an abnormally dangerous activity is
Resources Recovery only
In a newspaper ad, Select Used Motors falsely accuses Top Value Vehicles, a competitor, of selling stolen cars. Top Value's sales decrease. Select has most likely committed
Slander of Title
City Times, a newspaper, knowingly publishes an article falsely stating that the inventory of Walco, a discount store, consists of stolen goods. City Times is liable for
Slander of title
31 Connor's Container Store orders 1,000 plastic tubes from Specialized Plastics, but the contract does not specify the colors of the containers. With respect to this contract
Specialized Plastics get to specify the colors, and Connor's must accept whatever Specialized decides.
if a franchise agreement is silent with respect to time and notice for termination, then the parties can:
Terminate on reasonable notice
Earth Movers, Inc., uses dynamite to prepare land for highway projects. Strict liability is imposed on this activity because
The activity is of a dangerous nature
25 The transfer of a duty to perform an obligation under a contract to a third party is
a delegation (CHECKED)
Fact Pattern 12-1AJesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal a student loan accruing interest at a certain rate and payable beginning on a certain date was unfair because the consideration for their contract was inadequate. Refer to Fact Pattern 12-1A. "Adequacy" of consideration refers to
"how much" consideration is given.
6 Optimal Luthiery contracts to build a guitar for Ray for $1,000. If Optimal does not substantially perform, Ray must pay
$0
If a written contract contains all of the terms of the partners' agreement, it is called
- A completely integrated contract
Lani promises to paint Rogi's house in exchange for Ceeto's promise to plant trees on Lani's property. In this arrangement, Rogi Is
- An assignee
Dale and Robin enter into a written contract. They intend the written contract to be a final statement of most, but not all of the terms of their agreement. If a dispute about the terms of the contract results in litigation, a court will most likely admit evidence of additional terms that are:
- Consistent with the written contract exclude the evidence. (CHECKED) consistent. (CHECKED)
Under the UCC, if a buyer makes a unilateral offer, the seller
- Most likely the buyer within a reasonable time that they are beginning performance must notify the buyer within a reasonable time that they are beginning performance. (CHECKED)
Gary buys a city block from Barry, a private landowner who is not an attorney or a real estate agent. In the negotiation process, Gary tells Barry he wants to develop the land for apartment housing. Barry says that it would be a prime location for this. After completing the contract, Gary learns of a city ordinance that prevents housing in this area. Gary may
- Rescind the contract on the basis of fraud or misrepresentation as long as he reasonably relied on Barry's statement in his decision to purchase the land
29 Kyle and Stan enter into a contract under which Kyle is to buy heroin from Stan. Kyle pays Stan, but Stan never delivers the cocaine. If Kyle sues Stand under the contract, he can recover
???
33 Amy tells Sophia she will pay her a $10,000 bonus if Sophia performs well in the coming year and "she feels that Sophia deserve it." Amy's promise is
???
Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is defamatory only if
A third party hears it
Concrete Products, Inc., assures Deepwater Construction Company (DCC) that Concrete's cement will not crack within a certain range of pressure. DCC uses the product. When cracks develop within the stated range, DCC files a suit against Concrete. The court is most likely to rule in favor of
DCC, because Concrete's statement was an express warranty.
Moore Properties, Inc., offers in writing to sell to New Development Corporation (NDC) a certain half-acre of land for "$112,000." After New Development signs the offer in acceptance and returns it, Moore discovers that the price should have been stated as "$121,000." Refer to Fact Pattern 14-2A. The effect of Moore's misstatement of the price will most likely fall on
Moore only.
Mountaineers, Inc. makes climbing ropes and equipment, which are bought and distributed by Outdoor Distributors, Inc. to Recreational Opportunities, Inc., which sells them to consumers. Sinbad is injured while using a Mountaineers rope that he bought from Recreational Opportunities. In a product liability suit based on strict liability, Sinbad may recover from
Mountaineers, Outdoor Distributors, or Recreational Opportunities
Nadine is a spectator at the Metro City Softball Tournament, an athletic competition. Regarding the risk of injury, Nadine assumes the risks
Normally associated with the tournament
Oakley posts a defamatory remark about Pierre in "Roominate," an online social network maintained by SocNet, Inc., an Internet service provider. Most likely to be held liable for the remark is
Oakley.
Edie is injured when she is struck by debris from an explosion at Finest Fireworks Factory. The rule that harm must be foreseeable to constitute the proximate cause of an injury under a negligence theory was established in
Palsgraf v. Long Island Railroad Co.
The United States passes a law which provides that no more than 3 mil
Quota
Boyd is a minor. As a minor, Boyd has the capacity to enter into
a valid contract
BizOnline.com uses an electronic agent, or e-agent, to perform certain tasks in e-commerce. With respect to the e-agent's actions, BizOnline.com is bound by
all of the actions
Rally Corporation enters into a contract to sell ski gear to SnoSportz Company, which sells a pair of the skis to Tyra, a consumer, who later sells them to Uli, another consumer. Article 2 of the UCC applies to the sales transactions between
all of the buyers and sellers.
Expando Global Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Germany. In this situation, Expando retains complete ownership of
all of the facilities.
Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold
as is.
McDreamy has his back turned to McLovin, McLovin suddenly and without warning breaks a beer stein over McDreamy's head, knocking him unconscious. McDreamy can likely recover for
battery, but not assault
Rent-all Trucks & Trailers, Inc. (RT&T), and United Delivery Service enter into a contract for a lease of trucks. RT&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises
automatically in lease contracts
Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it accepts before 10 a.m. Monday. A contract is formed if Shopping Stores' acceptance is received
before 10 a.m. Monday
Kevin is an agent for Liam. To accomplish the objectives of this agency relationship, Kevin's implied authority
both a & b correct. allows him to do what is reasonably necessary to accomplish the objectives of the agency relationship can contradict his express authority under the agency relationship
Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting. Grande Floors, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified
by clear, conspicuous language called to the buyer's attention.
Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls, smashing through the roof of a house, killing Chris. But for Bart's negligence, Chris would not have died. Regarding the death, the crash is the
cause in fact
Fifi, a clerk at a Games n' Gamers store, takes a video game player and a selection of new games from the store without permission. Fifi is liable for
conversion
Garrett makes and distributes copies of Here We Go Again, a movie copyrighted by Indie Motion Pictures, Inc. Garrett does this without Indie's permission. He may be liable for
damages, fines, or imprisonment.
John has a small manufacturing business in McAllen, Texas, close to the Mexican border. A Mexican buyer agrees to buy some of his goods. They enter into an agreement and John ships the goods directly to the buyer. This is an example of doing international business by:
direct exporting.
Lew, a member of a protected class, applies for a job with Mit-E Construction Company, but fails Mit-E's employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is
disparate-impact discrimination.
Hector files a discrimination suit against his employer alleging disparate-impact discrimination based upon his race (Hispanic). Hector may establish a prima facie case by proving
either b or c are ways Hector can provide his case
Questions of ethical business behavior involve the extent to which business have
ethical duties beyond those duties mandated by law.
Location! Realty LLC is a limited liability company (LLC). Like other LLCs, for federal jurisdictional purposes, Location! Realty is most likely a citizen of
every state in which its members are citizens
Genie.com initiates an online dating service. To attract subscribers and encourage participation, Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users. Fooled by the false profiles, Ham buys a subscription. He is most likely a victim of
fraud.
Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Mikayla buys a Lipstik product and suffers an injury. Lipstik is most likely liable for
fraud.
Paolo has cerebral palsy, Quincy has an addiction to heroin and is still using, and both work for Reality Insurance Company. Considered disabled under the Americans with Disabilities Act
is Paolo only.
31 Auto Painting, Inc. contracts with Barry to paint his car. Both parties change their minds, however, and inform each other that they would like to cancel the contract. The next day, Auto Painting again offers to paint Barry's car. Barry is willing to have his car painted, but only for a new price. Barry and Auto Painting
may agree to a new contract that includes the new price (possibly)
Macro Corporation and Micro, Inc., enter into an agreement. To constitute a contract, the terms
may be express, implied, or a mix of both.
GR8 Skates Company makes and sells a pair of skates to Homer. GR8 fails to exercise "due care" to make the skates safe, and Homer is injured as a result. GR8 is most likely liable for
negligence.
On behalf of Equity Capital, Inc., Flip signs an instrument promising to pay $5,000 in gold to Growth Investments, Inc., on May 15. This in- strument is
nonnegotiable, because gold is not a medium of exchange authorized or adopted by a government as currency.
Karen writes on a piece of paper, "I owe you $600," signs it, and gives it to
nonnegotiable, because it does not include an express promise to pay.
Rita owes $6,000 in unpaid taxes. In the sand of Seaside Beach, she exe- cutes an instrument for that amount that otherwise meets the require- ments for negotiability. This instrument is likely
nonnegotiable, because sand is not sufficiently permanent.
Kay carelessly bumps into Lyle, knocking him to the ground. Kay has committed the tort of negligence
only if Lyle is injured.
Rand offers Quade the amount of a down payment on a house if Quade marries Rand's daughter Pepper. This promise is enforceable
only if it is in writing.
Precision Motors Corporation (PMC), a U.S. firm, expands into international markets through a joint venture. In this venture, PMC owns
part of the operation.
Elle is an agent for Fine Cosmetics, Inc. Elle owes Fine Cosmetics the duty of
performance.
A cooperative is a form of business organization that makes it possible for its members to
pool their resources to gain an advantage in the marketplace or provide a service to its members
Congresswoman Smith and other politicians want to prohibit the import of certain genetically modified agricultural products that they believe may pose a danger to domestic crops. With respect to these products' import, Congress can
prohibit the imports.
Cotton Brokers, Inc., enters into a contract to sell denim clothing to Delite Natural Fashion store, which in turn sells a pair of jeans to Esmé, a consumer. In comparison to standards that apply to consumers, the UCC imposes on merchants
special business standards.
Prospective Enterprises (PE) employs Quinn to buy property for a possible commercial development. Quinn secretly buys some of the property and sells it to PE at a profit. Quinn has breached
the duty of loyalty.
Candace enters into a contract to pay Parker for a business survey and review of Candace's competitors, which Parker delivers on June 1. Candace's offer, on the same date, to pay Parker is
tender.
Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain
the essential terms.
Jaqy distributes a handbill among her neighbors accusing one of them¾Ked¾of being a convicted sex offender. The statement is defamatory only if
the statement is false.
Oakes enters Parnell's property to read an electric meter. Parnell asks Oakes to leave. Oakes refuses. Oakes has most likely committed
trespass to land
Samson Automobiles pays its executives much more than lower-level employees and much more than what executives at its competitors are paid. Samson Automobiles' pay scale is most likely to be criticized by society as
unethical
Bret is convicted of arson for burning down his warehouse to collect the insurance. On an application for insurance from Cover-All Insurance Company on a new building, in answer to a question about prior convictions, Bret does not disclose his conviction. This makes the contract
voidable by Cover-All because the omission is material to its decision to issue coverage.
Gert contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Gert is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. Refer to Fact Pattern 14-1B. Because of the parties' belief about the adjacency of the property, their contract is
voidable.
Sierra Lumber Company and Recycle & Resale, Inc., (R&R) enter into an oral contract for Sierra's sale to R&R of six used forklifts for $2,900 each. Before R&R takes possession of the goods, this contract is enforceable by
none of the choices.
Timber Farms, Inc., and Wood Products Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood. Under the Statute of Frauds, this contract is enforceable by
none of the choices.
Howie enters into a contract with Ida over the Internet to buy soybeans as a hedge against falling prices in corn. Neither party prints out a hard copy. Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can
not be "denied legal effect" because it is only in electronic form.
Jon is a car salesman. To make a sale, he tells a young car buyer that a certain car is "the hottest car on the street right now." This is
not fraud because it is puffery
Veronica offers to sell Rowena her luxury sedan and says that it has never been in an accident. Rowena hires Laszlo, a mechanic, to appraise the vehicle. Laszlo says that it most likely has been in an accident. In spite of this information, Rowena buys the car. Later, when it develops mechanical problems, she can
not rescind the contract.
May is a stockbroker. Due to May's statements, Nora believes that the price of OK Goods, Inc. (OKGI), a widely traded stock, is going to increase substantially. Nora buys 500 shares of OKGI at $10 per share, but the price soon drops to $2. Nora can successfully recover
nothing.
Cora, a female, and Dom, a male, are employees of Equipment Leasing Corporation. Cora regularly e-mails sexually explicit images to Dom via Equipment Leasing's computer network. Dom finds this offensive. This is
potentially hostile-environment harassment.
Riki files a suit against Stevedore Shipping Corporation under the Civil Rights Act of 1964, alleging employment discrimination on the basis of gender on a disparate-impact theory. To succeed, Riki must show that Stevedore hires fewer women than the percentage of
qualified women in the local labor market.
The study of business ethics primarily involves the study of what constitutes:
right or wrong behavior
In advertising circulars, Lo-Price Autos falsely accuses Hi-Value Vehicles, a competitor, of selling stolen cars. Hi-Value's sales decrease. Lo-Price has most likely committed
slander of title
44 Laura and Logan are involved in a car accident. Laura promises not to bring a lawsuit against Logan if Logan will pay for the damage to her car. Laura's consideration is
???
20 The UETA applies to all written contracts and signatures
False
6 For business purposes, an adult may petition ta court to treat minors as adults
False
States do not have trademark statutes.
False
When the parities terminate an agency, the principal has no duty to notify any third parties who know of the existence of the agency that it has been terminated
False
Whether or not a firm has acted in good faith is irrelevant to a business firm's ability to defend itself in court.
False
If a job applicant or an employee with a disability, with any form of accommodation, can perform essential job functions, the employer must do whatever is necessary to make the accommodation Under the ADA, if a job applicant or an employee with a disability, with reasonable accommodation, can perform essential job functions, the employer must make the accommodation. (TRUE)
False Any vs. Reasonable accommodations. Pg. 546
8 Negligence per se occurs when the defendant has engaged in negligent conduct, but the plaintiff has suffered no injury.
False NOTE: Negligence per se may occur if an individual violates a statute or an ordinance providing for a criminal penalty and that violation causes another to be injured." Pg. 193 online textbook
For an employer to be held liable for sexual harassments, the harassments must have come from the plaintiff employee's supervisor
False What if it comes from someone else in the company?
Farm Equip, Inc., makes farming machinery. Gail discovers that her Farm Equip tractor is defective and sues the maker for product liability based on negligence. To win, Gail must show that
Gail suffered an injury caused by the defect.
Brandi is a salesperson at Gail's Auto Parts. When Brandi makes a sale to Leonard in the store, the sale is binding on
Gail's Auto Parts
Forest & Field Company makes and leases a backhoe to Gallagher. Due to a defect attributable to Forest & Field's negligence, Gallagher is injured in an accident in which his neighbor Helga is also hurt. In a product liability suit based on negligence, Forest & Field may be liable to
Gallagher and Helga.
Final Foto, Inc., makes photo and video editing software, which includes a shrink-wrap agreement. Gert buys a package of the software. With respect to the contract for the software's purchase, the shrink-wrap agreement may not be enforced if
Gert learns of it after contracting.
A Rhode Island state statue imposes fines on tire repair businesses whose pneumatic equipment does not include automatic shut-off switches to protect employees. Bob's Brakes & Tires, Inc., does not have the switches on its equipment. Carter, a Bob's employee, suffers an injury that a shut-off switch would have prevented. Carter's best theory for recovery is
Negligence per se
Fact Pattern 7-1A Roy owns an apartment building that contains units of different sizes. The sidewalks around the building are in poor repair. Many sections have buckled from the growth of tree roots over the years. Refer to Fact Pattern 7-A1. As the owner of the building, Roy has a duty to
Repair the sidewalks
Burger Time employs Mike to sell meat as its agent. Burger Time gives Mike an exclusive territory in which to sell Burger Time burgers. If Burger Time later begins to compete with Mike within this exclusive territory, Burger Time has breached
The duty of cooperation
43 Brett offers to sell Jermaine his smartphone for $500. Jermaine says, "Ill take it. Will you give me the case and your car charger with it?" Jermaine has
There is no contract, because Jermaine has made a counteroffer. (possibly)
A partially disclosed principal is fully liable to a third party for an authorized contract made by their agent
True
A sole proprietor owns their entire business
True
The Occupational Safety and Health Administration is tasked with regulating work related health and injury issues
True
The simplest form of a business is a sole proprietorship
True
Title VIII of the Civil Rights Act of 1964 applies to an employer with eighteen employees.
True
Under the doctrine of respondeat superior, a principal is liable for harms caused by employees, but only if the principal directly authorized specific conduct of the employee that led to the harm.
True
United States laws sometimes apply to conduct that occurs overseas.
True
unless the partnership agreement expressly states otherwise, a partner does not earn a salary for devoting time, energy, and skills to the partnerships business:
True
2 If a minor can return only damaged goods, in some states the minor cannot disaffirm the contract and obtain a full refund of the purchase price.
True Pg. 274 (Courts in most vs courts in some //bottom left under minor obligation)
Ulani indicates that she is acting as an agent on behalf of an unidentified client Thoroughbred Stallions, LLC when she enters into a contract with Shana. Refer to Fact Pattern 33-1A. Liability to Shana for nonperformance of the contract may be imposed on
Ulani and Thoroughbred Stallions.
Quin, a clerk at PC Computer Store, takes a computer from the store without PC's permission. Quin is liable for conversion
Under any circumstances
John sees that Kris is about to step into the path of an oncoming bus. If John does not warn Kris of the danger, John is liable
Under no circumstances
Tyrone draws a check payable to "Cash" and presents it to Urban Bank for payment. This instrument is
a bearer instrument.
Gold & Sweet Company bottles and sells maple syrup from its plant in Vermont. On the labels is a logo that states "100% Genuine New England Maple Syrup Certified by the Northeast Maple Syrup Harvesters Association." This logo is
a certification mark.
Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision not to make and sell copies of the song. This provision is
a click-on agreement.
Federico enters Gunther's property to read an electric meter. Gunther charges Federico with trespass to land. Federico has
a complete defense.
Radford and Serenity sign a written contract for the sale of Rad's Coffee & Bagels business to Serenity. The parties intend their written contract to be a final statement of the terms of their agreement. Refer to Fact Pattern 15-2A. The writing that Radford and Serenity signed is
a completely integrated contract.
Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is
a condition precedent.
39 Smith & Wilson, LLC, a major public accounting firm, enters into a contract to employ Emma as an auditor for one year to begin April 1. One month before the term begins, Smith & Wilson loses one of their largest clients, and now refuses to hire Emma. Refer to Fact Pattern 18-R. Smith and Wilson's repudiation of its contract to employ Emma is most likely.
a condition subsequent (CHECKED) or: BRING AN ACTION ONLY AFTER ONE YEAR TERM BEGINS
Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is
a distribution agreement.
Ulani indicates that she is acting as an agent on behalf of an unidentified client Thoroughbred Stallions, LLC when she enters into a contract with Shana.
a partially disclosed principal.
Odell and Pete sign a contract for the sale of Odell's Pizza Parlor to Pete. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement¾Odell must first buy the building from Quin, after which Odell and Pete will negotiate a final price. Refer to Fact Pattern 15-1B. The writing that Odell and Pete signed is
a partially integrated contract.
Jay holds himself out as possessing special accounting skills. As an agent, he must exercise the degree of skill or care expected of
a person having those skills.
Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is
a statement of future intent.
Nutrition Services, LLC, and Oneida's Catering & Café Supply Company sign a written contract that does not involve a sale of goods. To be enforceable, the writing must include
a statement of the consideration.
The United States taxes each barrel of imported oil at a flat rate. This is
a tariff.
Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is
a trade name.
37 Between merchants, additional terms is an unacceptance automatically become part of the contract unless
all choices are correct the terms materially the original offer the offeror objects
Vidal files a suit against Spectator Sports World, Inc., to enforce a contract. The only written evidence of the contract is a memo on Spectator's letterhead signed by a company officer. The contract can be enforced if the memo includes
all essential terms.
Myron is an employee of Nero. Either party can terminate the employment relationship at any time for any reason without liability. With respect to the employment-at-will doctrine, this is
an example of the doctrine.
Wilbur signs a note that includes a clause under which the note's holder can delay the date of its payment indefinitely. This is
an extension clause
Homebuyers Mortgage Corporation's promise to pay its employees a year-end bonus "if it seems like a good idea at the time" is
an illusory promise.
Cameron enters a coffee shop in which she has an open account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that she will be billed for it at the end of the month. Cameron has formed
an implied contract.
When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is
an implied contract.
To obtain office supplies for Doctors Medical Clinic, Elmo executes a draft in favor of Flynn. A draft is
an unconditional written order to pay money.
To borrow money to finance the start-up of his business, Buck executes an instrument in favor of City Bank. For the instrument to be negotiable, the signature must be
anywhere on the instrument.
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples. Refer to Fact Pattern 17-2A. When the market price for apples exceeds the price in the contract with Hill & Dale, Evelyn decides not to deliver the apples. Evelyn's contract with Hill & Dale is
breached.
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris. Refer to Fact Pattern 17-2B. Under the circumstances, with respect to damages, Chris can
bring an action immediately.
Triple-D Cinemas promises to pay Shakir $1,000 to repair and clean its marquee. The act of doing this work is
consideration
Roxanne, a minor, is living at home with her parents, but signs a lease with a landlord to rent an apartment. Roxanne can
disaffirm the lease without liability
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples. Refer to Fact Pattern 17-2A. When bad weather destroys Eve's Garden's apple crop, the obligation to deliver apples to Hill & Dale is
discharged.
Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract
does not change the fact that Phil is bound by the contract.
Miley takes temporary medical leave from her job at Lumber Mill Inc. to care for a parent with a serious health condition. When she attempts to return to work, Lumber Mill refuses to reinstate her. Under the Family and Medical Leave Act, Miley may obtain
double damages, job reinstatement, a promotion, and more.
Duffy is a passenger in a car that Caleb is driving when an accident occurs. Both Caleb and Duffy are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dufy on a negligence theory because
duffy was not injured
Safron threatens physical harm¾"you don't want anything to happen to you or your family"¾to force Tivoli to sell his business, Umbrellas Unlimited, Inc., to Safron for a below-market price. This is
duress.
Orin relinquishes the right to his daughter Neko's control, care, custody, and earnings. This act is
emancipation
Jane works as a seamstress at an upscale dress shop, where she modifies dresses for the shop's high net worth clients. The dress shop determines Jane's hours, she receives an hourly wage, and she works under the supervision of the store manager. Jane is most likely the dress shop's
employee and agent
KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands. KupaJava agrees to pay Lola a salary, plus commission. KupaJava stipulates the standards that should be observed, the goals that should be attained, and the methods that should be used. Lola is most likely KupaJava's
employee.
5 First Class Hotels, Inc's CEO believes in running a business pursuant to the stakeholder view of CSR. This means that in making business decisions, he considers the impact of his decisions on the businesses
employees, owners, customers, creditors, suppliers, and the community.
27 Moo Cow Farms contracts to hire Dave for one year to tend the cows in its stockyard, but reserves the right to cancel the employment on thirty days' notice at any time after Dave begins work. This promise is
enforceable
Opie enters into a contract with Belle. Later, Opie is adjudged mentally incompetent. Raye, Opie's daughter, attempts to void Opie's contract with Belle on the ground of Opie's incompetency. The contract is
enforceable if Opie had capacity at the time the contract was formed.
Flynn is a drug addict who has completed a supervised drug-rehabilitation program. Gert used drugs casually in the past. Both work for Home Credit Company. Considered to have a disability under the Americans with Disabilities Act of 1990
is Flynn only.
Using the Fair Labor Standards Act, a 19 year old
is not restricted in the type of employment they can engage in
Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restau- rants in Germany. This is
licensing
Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany. This is
licensing
Fact Pattern 12-1B Sal contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.
may agree to a new contract that includes the new price.
Nick sees Opal, a stranger, in peril, but does not attempt to rescue her. Opal could successfully sue Nick for
nothing.
13 A delegator cannot transfer a duty
without the obligee's consent
Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments. After thirty-six months of payments, Olisa has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract. Refer to Fact Pattern 19-1A. Olisa files a suit against Pay-to-Own, claiming that their contract is so unfair and one sided that it would be unreasonable to enforce it. Olisa is asserting
the doctrine of unconscionability.
Sari buys a new sport utility vehicle (SUV) from 'Tastic Cars & Trucks, Inc. The most important factor in determining whether an express warranty is created is whether
'Tastic's promise becomes part of the basis of the bargain.
1 A bilateral contract is not formed until the contract is fully performed.
False
8 If TChalla substantially, but not completely, performs all of his obligations under a contract with T Chaka, T Chaka is entitled to
Suspend performance
8 Some legal promises cannot be enforced in a court as a contract
True
A member of a limited liability company (LLC) has the power, but not necessarily the right, to dissociate from the LLC at any time.
True (Checked)
Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed, including a two-year term. Macro begins to perform, but NFC refuses to pay. Macro files a suit to collect. NFC claims that there is no contract. Refer to Fact Pattern 15-1A. Between Macro and NFC, there is
a written contract.
3 When striving to make good business decisions, factors that corporations should evaluate include
all of the choices.
Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have
an express contract.
50 Livesotck Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed, Inc. Each sack is stamped with the phrase, "Twenty percent protein". This is
an express warranty
Bagels n' Coffee Café issues an instrument in favor of Eatery Supplies, Inc. For the instrument to be negotiable, it must
be payable on demand or at a specific time.
Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums, Inc. Shady Grove is entitled to
damages.
Ethan is seventeen years old. Under the Fair Labor Standards Act, Ethan cannot work
in a hazardous job.
Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to perform, Ripe Produce files a suit to enforce the contract.Refer to Fact Pattern 14-4B. To defend successfully on the ground of unconscionability, Pete must show that enforcement of the contract would be
manifestly unfair or oppressive.
Digitech is a foreign corporation, which means that Digitech
may be required to obtain a certificate of authority to do business.
Yvon, a golf pro, convinces Zach, who has no athletic ability, that he has considerable talent and induces him to pay Yvon $10,000 for golf lessons. When Zach realizes the truth, he files a suit against Yvon. Zach is most likely to recover on the basis of
misrepresentation.
Diaz and Cuzco enter an express contract for the construction of a warehouse. Express contract terms are given, in relation to the parties' course of performance,
more priority
Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is
none of the choices.
Dotty tells a representative of Education Loan Company over the phone that she will pay Felipe's student loan if he does not. Dotty does not get any personal benefit for the promise. This promise is enforceable as a contract by
none of the choices.
Luella trespasses on Merchandise Mart's property. Through the use of reasonable force, Merchandise Mart's security guard Norris detains Luella until the police arrive. Merchandise Mart is liable for
none of these choices
On behalf of Digital Cable Company, Elvin signs an instrument in which he promises to deliver 1,000 feet of optic fiber cable to Financiers eBank on March 1. This instrument is
nonnegotiable, because cable is not a medium of exchange authorized or adopted by a government as currency.
EZ Credit Company signs an instrument payable to the order of Fraser that states, "The maker of this note at the date of maturity, May 1, 2013, can extend the time of payment, but for no more than a reasonable time." This instrument is
nonnegotiable, because it is not payable within a definite time.
Rainey signs a promissory note for $10,000 in favor of State University (SU). The note is undated but specifies that it is "payable one month after date." This note is
nonnegotiable, because the maturity date cannot be determined from the face of the instrument.
Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks
normally associated with the triathlon
Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a "personalized" letter inviting him to buy any item in the catalogue at the advertised price. This is
not an offer.
Research Statistics Corporation uses a merit system to pay its employees according to their job performance. Suki, a female, and Troy, a male, are Research employees with comparable jobs. Due to superior performance, Suki is paid more than Troy. This is
not discrimination.
Jenny Lee is an appliance salesperson. To make a sale, she asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This is
not fraud
Danton, a popular performer, dies. His spouse Caitlin sells their house to Buck. Unknown to Caitlin or Buck, in one of the closets is the master recording of an unreleased album. With respect to this recording, Buck can
not keep it because there was no voluntary consent to its sale.
38 In a climbing accident, Roy falls from a high cliff, which seriously injuries him and renders him unconscious. At the scene, Christy, a private physician climbing nearby, acts to save Roy's life. Later, Christy seeks to recover for the cost of the aid. She is most likely to recover
on a theory of quari contract (possibly)
Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed, including a two-year term. Macro begins to perform, but NFC refuses to pay. Macro files a suit to collect. NFC claims that there is no contract. Refer to Fact Pattern 15-1A. The transaction between Macro and NFC falls within the Statute of Frauds'
one-year rule.
Eve tells Finlay that she will pay him $50 if he unloads her truck. Finlay's acceptance is complete
only after Finlay unloads the truck.
Marci is married to Johnny, Marci buys food for their children's lunches and charges the cost to Johnny's account. Johnny will
only be liable for the charges if he has previously allowed her to make such charges and paid for them.
Sable and Rex agree while talking on the phone to form a partnership to deal in transfers of real property. Their partnership agreement is legally binding
only if the agreement is reduced to writing.
Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure Investments owns
part of the operation.
GreatGro, Inc., makes genetically modified seeds with properties that are identical to Hearty Harvest Corporation's patented seeds, without Hearty Harvest's permission. This is most likely
patent infringement.
Rachel operates a scrap metal business and contracts to provide ten tons of scrap steel at $50 per ton to be delivered to Pure Metals, Inc., in six months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Rachel to fulfill the contract for less than $500 per ton. Rachel's best defense against performing the contract would be that
performance of the contract is commercially impracticable.
29 Frederic contracts to provide twenty tons of scrap aluminum at $700 per ton to be delivered to Performance Aircraft Parts, Inc. in seven months. An unforeseen shortage of scrap aluminum suddenly develops, making it impossible for Frederic to fulfill the contract for less than $10,000 per ton. Frederic's best argument against performing the contract would be that
performance of the contract is commercially impracticable. (CHECKED)
Dylan enters into a contract to manage the operations of Cash's accounting office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be
performed.
Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this contract are discharged like those under most contracts, the duties will be
performed.
Congresswoman Jones and other politicians want to prohibit the import of certain agricultural products that pose a danger to domestic crops. With respect to these products' import, Congress can
prohibit the imports.
Olga, a salesperson for Pre-owned Cars & Trucks, Inc., tells Quincy, "This is the best car I've ever seen." This statement is
puffery
In selling paving stones to Yard & Garden Supply, Trey tells Yard & Garden's buying representative that the stones are "soft as carpet." This is
puffery.
While a minor, Jason buys a large-screen HD TV and home theatre system that he continues to use after reaching the age of majority. After a reasonable time has passed, Jason will be considered to have
ratified the contract.
Brick Products, Inc., files a suit against City Trucking Service for breach of contract, based on what Brick claims was City's offer. For a court to determine if a contract has been breached, under the common law, the offer must include terms that are
reasonably definite.
Air Navigation, Inc., makes aviation guidance systems. Ollie is injured in a crash caused by a defective Air Navigation product. A statute restricts the time within which Ollie may file a product liability suit against Air Navigation regardless of when he was injured. This is a statute of
repose.
Senator Smith and other politicians want to restrict the flow of technologically advanced products and data from the United States to other countries. To restrict or encourage exports, Congress can
set export quotas.
42 One of the most important ways to create and maintain an ethical workplace is for a company's management to
set standards and expectations for ethical behavior. (check Vi) demonstrate a commitment to ethical decision making and behavior. (check vi) bc both showed up as right
Equipment Rental Corporation and Family Farm, Inc., are parties to an oral agreement for a lease of farm equipment with payments in excess of $10,000. They may satisfy the Statute of Frauds by
setting out the terms in a memo.
Dakota believes that Credit Services Corporation (CSC) has discriminated against her on the basis of gender. She files a suit against CSC under the Civil Rights Act of 1964. To establish a prima facie case of employment discrimination, Dakota must show that
she is a member of a protected class.
Neuman is hurt when struck by floating debris on his property, which was flooded by a breach in King Ranch's reservoir, which is adjacent to Neuman's property. The breach of the reservoir was not caused by any negligent conduct of King Ranch. In this situation, if the court holds King Ranch liable, it would be under the doctrine of
strict liability
Mona is an agent for Nationwide Restaurant Corporation (NRC). In acting as an agent, Mona follows all of NRC's clearly stated instructions. This responsibility arises under
the agent's duty of obedience.
Refer to Fact Pattern 24-2A. On this instrument, Commodity Sales is
the drawer.
Over the course of a year, Retail Market, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savers Bank. Article 2 of the UCC governs
the sale of the goods.
Medical Equipment Supply Company and Natural Rehabilitation Center enter into a contract for a lease of a certain number of wheelchairs. Medical Equipment assures the lessee that it has valid title to the goods. Under the UCC
this type of title warranty arises,automatically.
Frank slips and falls on Gail's Harbor Tour Boat and is injured. Frank files a suit against Gail's for $500,000. If Frank is 20 percent at fault and Gail's is 80 percent, under the "50 percent rule" comparative negligence principles, Frank would recover
$40,000.
Oliver slips and falls on Port Harbor's Tour Boat and is injured. Oliver files a suit against Port Harbor for $500,000. If Oliver is 20 percent at fault and Port Harbor is 80 percent, under the "50 percent rule" comparative negligence principles, Oliver would recover
$400,000
Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe
Arnold can, recover from Big Dig for breach of warranty.
Iona files a suit against Javier for conversion of property that Javier asserts he owns. Javier will not be liable if he can show that
CORRECT: Iona has no interest in the property. INCORRECT: Javier did not intend to keep the property
13 An offer need not be reasonable to be valid
False (needs to be reasonable)
To succeed with an age-discrimination claim against his employer, Hector will have to show that
Hector is qualified for his job.
Rajat tells his friend, Maggie, a story he recently read about a circus performer who died during the middle of a trapeze performance. Maggie's dad died in a similar accident when she was a young girl, and she suffers severe mental trauma by hearing Rajat's story. She sues Rajat for intentional infliction of emotional distress. What is the likely result?
Maggie will lose because Rajat's telling Maggie about this story is not an intentional act that is extreme or outrageous
Sam, an engineer, supervises the construction of a new bridge. When the bridge collapses due to faulty construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to the same standard of care as
Other engineers
Clay offers to pay Dorianne $50 for a golf lesson for Estee. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have
a bilateral contract.
Real Events Promotion Corporation licenses trademarks to Stadium Souvenirs, Inc., to use in selling caps, sweatshirts, and similar goods. This is
a franchise (checked)
Binary Corporation and Coda, Inc., two software firms, wish to combine their research and development capabilities to make a special, limited edition computer game. The appropriate legal entity for this project is most likely
a joint venture.
Lilith promises to buy Marv's handheld game-player for $75. Marv is
a promisee.
ClearCall Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider.
an available alternative design
Roger hires Clem's Heat and AC to design and install a heating system in his factory. The relationship between Roger and Clem's is
client and independent contractor
Fernando obtains a consumer loan from Greater Regional Credit Union at an interest rate that exceeds the state's maximum. Greater Regional has
committed usury.
In his recording "Nuthing Nu," O'Reilly uses the melody of a song written by Pete. O'Reilly did not obtain Pete's permission. This is
copyright infringement.
Solana, a minor, enters into a contract to buy a dozen movies from eHD TV Stream, Inc., an Internet video service. Solana reaches the age of majority and does not disaffirm the contract nor make payment on it. eHD files a suit against her. The court will most likely consider the contract ratified if it is
executED
People who keep domestic animals are strictly liable for any harm inflicted by the animals
false
James buys a copy of the book Kangaroo Down, Sport. Later, after reading the book, James sells the book to his sister. James's sale of the book is
legal.
Homer is an officer of Integrity Corporation. With respect to binding Integrity to contracts, Homer's authority
may be actual or apparent.
Charcoal Briquettes, Inc., is the offeror and Dante's Firewood Company is the offeree under a unilateral sales contract in which Ember's Kindling & Tinder Company is also interested. Charcoal is not notified of Dante's performance within a reasonable time. Charcoal
may treat the offer as having lapsed.
Street Bikes, Inc., makes and sells a bicycle to Theo. Street Bikes fails to exercise "due care" to make the bicycle safe, however, and Theo is injured as a result. Street Bikes is most likely liable for
negligence
37 Good Bread and Delicious Bread are the only two bakers in town. In order to try to gain more business from restaurants, Good Bread launches an advertising campaign in which a famous chef endorses Good Bread as having the best bread in town. This campaign is successful, and many restaurants shift from Delicious Bread to Good Bread. Delicious Bread will have a successful suit against Good Bread for
no tort
17 Sir Sew-A-Lot, Inc. makes commercial sewing machines. While using a Sir Sew-A-Lot machine, Doug slides his finger under the needle, resulting in his finger being cut off. Doug sues Sir Sew-A-Lot, and the jury determines the damages or $300,000, but that Sir Sew-A-Lot was 51% responsible and Doug was 49% responsible for his own harm. In contributory negligence jurisdiction, Doug will be able to recover
153,000
46 Malcom tells Kaylee, who has no knowledge of how to evaluate poetry, that he will teach her how to critique a poem for $50. As an offer, this is
???
48 Niska offers to sell Crow his phone and states "I'll keep the offer open until March 1." Niska may revoke the offer
???
26 Kyle hires Stan, who runs a bicycle courier service, to deliver a package to a friend across town for $25. Stan delivers the package, but it is later discovered that the package contained illegal drugs. If Stan sues Kyle for payment, he can recover
????
In an emergency situation, Milena, an emergency medical technician renders aid to Lothar, who needs help. Lothar would most likely be prohibited from suing Milena for negligence under
A Good Samaritan statute
Ultimate Fishing Guides and Superior Bait and Tackle are two separate business entities, but also share officers, directors, employees, property, and equipment. In reliance on Ultimate's reputation and their representation that they are "in business with" Superior. Gary's Boat Repair contracts to perform services for Superior, but Superior does not pay. If Gary's seeks payment from ultimate, a court may hold them liable for Superiors obligation to:
A partnership by estoppel
Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as
A reasonable person
The essential elements of a partnership include
All of the above (a sharing of profits and losses, a joint ownership in the business, an equal right to be involved in the management of the business)
Which of the following events may terminate an agency relationship
All of the choices are correct (checked)
Under the Equal Pay Act, an employer can legitimately pay a male and female different wages on the basis of
All the above (seniority, different performance, different educational attainment) / CHECKED
Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have
An Executory Contract
Richard is an employee of Stealth Security Company. Stealth discharges Richard for refusing to infiltrate a competitor's organization to learn its trade secrets. With respect to the employment-at-will doctrine, this is
An exception based on public policy
Margo works as an administrator and receptionist in Neon's Garage Door Store. Neon withholds federal taxes from Margo's pay, and controls the methods and details of the performance of her work. Margo is not authorized to modify the prices or other terms of a sale at the store. Omar installs Neon's Garage Door products at the buyers' locations. Omar is paid a fee for each garage door he installs. He sets his own hours, and is free to reject jobs from Neon. He also installs garage doors for other companies. Omar is most likely
An independent contractor
Beth, who has a disability, is an employee of Corporate Office Company (COC). After the installation of new doors on COC's building, Beth finds it nearly impossible to get in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who does not have a disability. To successfully defend against Beth's claim, COC will have to show that
COC cannot make changes to the doors without undue hardship.
A Vietnamese company uses very cheap labor to build auto-parts, and imports them into the U.S. at a price which is below their production cost. This practice is referred to as:
Dumping
The agent has the right to be indemnified by the principal for any liability suffered due to engaging in unauthorized actions.
False
John is driving his car and talking on his cell phone at the same time. Because he is not paying attention to his driving, he fails to notice a car stopped in front of him and rear ends it. The car that he hits is knocked off the road into a tree. The force of the car hitting the tree causes a branch to fall off the tree and break the window on Jane's bedroom. Jane is sitting in her bedroom at the time, and a piece of glass from the broken window flies through the air and severely cuts her, causing her to almost bleeds to death. If she sues John for negligence, which of the following is true with respect to her lawsuit?
In order for her suit to be successful, she will have to prove that John was both the "but for" cause and proximate cause of her injuries.
Commercial Construction, Inc. (CCI), contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1. On June 1, Rita's bank is closed, and for this reason, Rita's claims it cannot pay on time. In this situation
Rita's is in breach of contract.
Greg purchases a franchise from Tom's Chicken. Tom's sets the prices that Greg can sell chicken for. Greg's best argument for challenging tom's setting required price is:
The federal franchise rule
An anonymous person posts online a defamatory message about Dewitt. Not knowing the poster's identity, Dewitt files a suit against "John Doe." Using the authority of the court, Dewitt can obtain from the poster's Internet service provider
The identity of the poster
Canada giving effect to the laws and court decisions of the United States is an application of
The principle of comity
Joe sees Karo floundering in Lake Rough Waters. Joe is liable on the ground of negligence
Under no circumstances
Oak Valley Mall contains two video game stores, Pirates Pick and Game Quest. Pirates's manager Ryan stands in the mall near Game Quest's en-trance to divert customers to his store. Game Quest's manager Sara asks Ryan to leave. He refuses. Ryan has committed
Wrongful interference with a business relationship
Alice is injured when she is struck by debris floating on her property, which was flooded by a breach of Big R Ranch's reservoir. The rule that a person who engages in certain activities may be liable under the doctrine of strict liability for any harm that results was established by
a British court
Paco offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from Rich within 30 minutes. QD can accept the offer only by meeting the deadline. If QD performs as directed, these parties will have
a UNilateral contract.
Chile and Argentina enter into a trade agreement with each other to allow goods to pass across their borders duty-free. This is an example of a:
a bilateral agreement.
San enters into a franchise agreement with Chicken Burgers, Inc., under which Dan will have the right to operate a Chikcen Burger restaurant. With respect to Chicken Burger, Inc. Dan,
a franchisee
Rio Engineering Corporation pays PC Technologies, Inc., $1,000 to use a computer for a month. For purposes of the UCC, this is
a lease.
Erasmus applies for a job at Drain-Pro Plumbing & Repair LLC for which he is well qualified. He passes a test to determine which applicants are eligible for hiring, but the employer discards the results, and Erasmus is rejected. Drain-Pro continues to seek applicants. To successfully defend itself against Erasmus's suit, Drain-Pro must articulate
a legitimate, nondiscriminatory reason for its action.
A distributorship franchise involves the transfer from franchisor to the franchisee of
a license to sell its products
60 Juicy Cola Corporation allows Juicy Cola Bottlers Texas, Inc., an independent bottler, to use Juice Cola's trademark when advertising for its company and beverages it sells. This is
a license.
Green Glass Corporation makes glass bottles for food and beverage makers to package their products for wholesale distribution and retail sale. Liability may be imposed on Green Glass based on
a manufacturing defect.
7 Noah sells an apartment building to Delilah with a promise to install a new heating and air conditioning system before August 1. The following March 1, Noah sends Sampson, an HVAC technician, to begin the installation. Delilah orders Sampson to leave and refuses to make further payments to Noah, who files a suit against Delilah.
a material breach (CHECKED)
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris. Refer to Fact Pattern 17-2B. Bell's repudiation is most likely
a material breach.
Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. Refer to Fact Pattern 17-1B. Kip's late attempt to fix the roof is most likely
a material breach.
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. Refer to Fact Pattern 17-1A. Neil's performance is most likely
a material breach.
Linea, an employee of Hard Labor Industries (HLI), is injured in a work-related accident. Based on the diagnosis of Newt, a doctor, Linea accepts $50,000 from HLI and waives the right to future claims. Newt's diagnosis later proves to have been wrong.Refer to Fact Pattern 14-1A. In terms of the impact on Linea's agreement with HLI, Newt's misdiagnosis is
a mistake of fact.
The Association of Southeast Asian Nations is a regional trade association that was created through
a multilateral agreement.
Straitedge Toolmakers, Inc., contracts to sell its assets to Trulevel Hardware Corporation. Before either party has performed, rescission of this contract requires
a mutual agreement to rescind.
38 Gandalf and Bilbo are parties to a contract. They subsequently agree that Gimli should take Bilbo's place and assume all of his rights and duties under that contract. This is
a novation (CHECKED)
3D FX, LLC, and Vivid Star CG, Inc., are parties to a contract. They subsequently agree that Pixellated Inc. should take 3D's place and assume all of its rights and duties under the contract. This is
a novation.
Jane and Kelly want Lucy to replace Kelly as a party to their contract. They can best accomplish this by
a novation.
Espresso Roast Company hires Forrest to work on Espresso's shipping dock, checking outgoing loads and dispatching Espresso's drivers. With respect to Forrest, Espresso is most likely
a principal.
Readymade Construction Corporation offers to buy from Set-Still Cement Company a certain quantity of cement for a certain price. Set-Still can accept the offer by
a promise to ship or a prompt shipment of the cement.
Jack promises to buy Kelly's computer for $400. Jack is
a promisor.
Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1, 2013. Refer to Fact Pattern 24-2B. The instrument that Ewa signed is most likely
a promissory note
Truman applies for a job at Skylight Canopy Corporation for which he is well qualified, but for which he is rejected. Skylight continues to seek applicants and eventually fills the position with a person who is not a member of a minority. Truman is most likely to succeed in a suit against Skylight for discrimination if he is a member of
a protected class.
Gaggle, Inc. and Microhard, Inc., both large publicly held corporations, form a joint venture to develop a new smartphone operating system. Large companies like this usually form a joint venture for
a single transaction or project (checked)
Ramon contracts in writing to sell his Little Shop of Bagels to Suni. When Suni discovers that the kitchen equipment has been removed, she files a suit against Ramon. The court decides that the written contract includes everything that the parties intended. An agreement about the kitchen equipment may be admissible if it is
a subsequent modification of the parties' contract.
On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. Under the present-day view, these parties had
a unilateral contract as soon as Outdoor began to perform.
16 Bart offers to sell his car to Adam, but mistakenly transposes some of the digits in the price so that $38,100 appears in the offer as $31800. Adam accepts the written offer. Bart's best argument in favor of cancelling the contract because of the mistake is that
a unilateral mistake always supports the cancellation of a contract.
Nano Corporation offers to sell a robotic device to Motor Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Motor accepts the written offer. Refer to Fact Pattern 14-2B. Motor's best argument in favor of enforcement of the contract is that
a unilateral mistake does not afford relief from a contract.
Moore Properties, Inc., offers in writing to sell to New Development Corporation (NDC) a certain half-acre of land for "$112,000." After New Development signs the offer in acceptance and returns it, Moore discovers that the price should have been stated as "$121,000."Refer to Fact Pattern 14-2A. Moore's misstatement of the price is
a unilateral mistake.
37 If a contract has all necessary elements such that at least one of the parties can enforce it in court, it is
a valid contract (possibly)
UniVision Corporation, a U.S. company, sets up a firm in Vietnam. UniVision remains in the United States and retains ownership of the Vietnamese branch, as well as authority and control over all phases of the operation. This is
a wholly owned subsidiary.
Jane is 26 years old. She is replaced by Sally, who is 45 years old. When Jane asks why she is being replaced, her employer tells her "We needed someone older and more experienced." If Jane sues for age discrimination under the ADEA, she will
absolutely be unsuccessful, since the ADEA does not apply to her
In most circumstances, with only a few limited exceptions, federal law prohibits employers from
administering lie detector tests to employees or applicants
Fleet Feet Corporation makes athletic shoes. Gloria, a marathoner, files a product liability suit against Fleet Feet, alleging a design defect. In deciding whether to hold Fleet Feet liable, the court may consider an alternative design's.
advantages and disadvantages.
Delicious Fruit-of-the-Month Company currently employs five hundred full-time workers and two hundred part-time seasonal workers. Because business has declined, Delicious plans to close a plant that employs more than fifty full-time workers. Advance notice of the layoff must be sent to
affected workers or their union representative.
Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate
after a reasonable period of time.
24 With respect to contracts for sales of goods and the specific default contractual provisions set out in the UCC, parties to contracts covered by the UCC may
agree to different terms only to the extend that they are reasonably similar to the de fault provisions in the UCC. (CHECKED)
Continents Two Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Argentina. In this situation, Continents Two retains complete control and authority over
all of the operation.
France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain's copyright must be recognized by
all of the signatories of the Berne Convention.
Discount Mart, Inc., is an East Coast-based firm that does business throughout the United States. With respect to this circumstance, the UCC has been adopted by, and applies in,
all of the states, in whole or in part.
A Plus Auto is a private employer that operates a factory in a city with a part history of discrimination. A Plus employees 100 workers in the factory. Under Title VII of the Civil Rights Act, A Plan Auto is
allowed to implement an affirmative action policy, but is not required to
On behalf of the rock group Uno, their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex, acting for Seaside, sends a written copy of the agreement to Thalia to be signed. If Thalia signs the copy, the parties will have
an EXPRESS contract.
Pressing Music, Inc., offers to buy from Digital Media Corporation (DMC) one million blank CDs of a certain quality. Without notifying Pressing, DMC timely ships CDs of a different quality. With respect to the offer and a possible contract, this shipment is
an acceptance and a breach.
Mona and Nero want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by
an accord and satisfaction.
Noggin Development Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Noggin empowers Ousai, Ltd., a Dubai firm, to enter into contracts in certain countries on Noggin's behalf. This is
an agency relationship
Fashionable menswear hires Lisa to buy fabrics for men's suites on its behalf. In this relationship, Fashionable Menswear is
an agent
Lars is an attorney with his own law firm and represents numerous famous actors and actresses in contract negotiations, manages their finances, and enters into contracts on their behalf. With respect to these actors and actresses, Lars is
an agent
Carol agrees with Dede and other performers to sign contracts with promoters and others on the performers' behalf. Carol is
an agent.
27 Nacogdoches Medical Center orders by phone ten boxes of syringes from Sharp Stuff, Inc., for a total price of $1,000. After five boxes are delivered and accepted, Sharp Stuff repudiates the contract. Nacogdoches Medical Center can enforce the contract to
an anticipatory repudiation the extent of the five undelivered boxes (CHECKED)
ClearCall Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider
an available alternative design.
43 Thinking Machines, Inc. makes laptop computers, which are sold to consumers by Electronics World stores. Carl files a product liability suit against Thinking Machines, alleging a design defect. In deciding whether to hold Thinking Machines liable, the court may consider
an economically feasible, available alternative design. or; an available alternative design
Tasty Fruit Produce Co. hires Bruce to work on its shipping dock checking outgoing loads and dispatching the company's drivers. Bruce works a regular 8-5 shift, is supervised by a manager, and is paid an hourly wage. With respect to Tally Fruit Product Co. Bruce is most likely
an employee but not an agent
Omar is Precise Service Company's chief executive officer. On Precise's behalf, Omar solicits business, hires and fires workers, and handles the finances. Precise pays Omar varying amounts, depending on his "needs." Omar is most likely
an employee.
Thalia is an employee of Universal Insurance Company. Universal's employee manual states that workers will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is
an exception based on contract theory.
Lena offers Miguel a job, representing falsely that it will be long term. In reliance, Miguel takes the job but is laid off shortly thereafter and successfully sues Lena for fraud. With respect to the employment-at-will doctrine, this is
an exception based on tort theory.
Ester is a lighting technician who hires out on a per-project basis to film and television production companies, as well as theatres and other venues that stage dramatic and musical performances. In this capacity, Ester is
an independent contractor.
Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Liz and Molly are not authorized to modify the prices or other terms of a sale at the shop. Refer to Fact Pattern 32-1B. Nia hires O'Reilly's Carpet Company to clean the carpets of her shop. Nia gives O'Reilly's instructions as to what needs to be cleaned and when. O'Reilly's is
an independent contractor.
Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia's authority can be implied by
an inference from the position Sonia occupies.
Todos Ltd. agrees to supply United Steel, Inc., with minerals from Venezuela. When the government is unexpectedly overthrown in a revolution, Todos can obtain the goods only at a much higher price. United agrees to pay but later files a suit to recover the difference. The court will most likely rule that
an unforeseen difficulty supported the contract modification here.
Crafted Countertops, Inc., and Kitchen Design Corporation enter into a contract that does not specify the payment terms. Payment may be made in
any commercially normal or acceptable means.
Fresh Air Filter & Purification Company and Big Box Commercial Storage Company enter into a long-term lease for a warehouse. To be enforceable, the lease must be in writing if the amount of the rent payment is
any price.
Grandiloquent Properties, Inc., and Investment Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at
any price.
Doug employ's Stuart as an agent. Doug terminates Stuart's agency. In order to avoid potential future contract liability for Stuart's actions, Doug has a duty to notify
any third parties who were aware of the agency relationship
Tracking Dipatch Co. hires Usello to work on its behalf. Their agency agreement expressly states that Ucello may not bind Trucking Dipatch Co. to contracts that exceed $500. Nevertheless, Ucello frequency signs contracts on behalf of Trucking Dispatch Co. with one particular supplier, and these contract typically exceed $500. When the invoice for these contracts come in, Trucking Dispatch Co. always pays them. With respect to this supplier, Ucello has
apparent authority
Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has
apparent authority.
Omega, Ltd., imports athletic shoes made in Southeast Asia into the United States. To obtain a larger share of the U.S. market, Omega sells the athletic shoes at lower prices here than in its exporting countries. With respect to these imports, the United States may
assess antidumping duties.
Jesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal a student loan accruing interest at a certain rate and payable beginning on a certain date was unfair because the consideration for their contract was inadequate.
bargained-for exchange or mutual assent.
In a skateboarding accident with Ryan, Starla is injured. Ryan's insurance company's offers her $25,000 to release him from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release
bars Starla's further recovery from Ryan
Li'l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has registered with the government. Under federal trademark law, LCC
can register the mark for protection.
Stardust Coffee Company is a Texas-based firm that does business throughout the world. Stardust manages retail and wholesale operations, buys and sells commercial venues, undeveloped land, and coffee beans, and other goods. Stardust has had to deal with employee and customer theft. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for
commercial transactions for the sale of and payment for goods.
In terms of the firm's books and information regarding partnership business, limited partners in a limited partnership are entitled to
complete access
Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m. and 6 a.m. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been
complete.
Belle enters into a contract to subdivide and sell housing lots in Colin's hillside field if Dell City annexes the property within the next year. Belle's duty to perform is
conditional.
Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She accepts and hands the book to Vince. Sun-Hi's delivery of the book is
consideration
As she is leaving the theatre, Jane mistakenly picks up Sally's jacket, which is identical to hers. She takes it home, and a couple of days later throws it away when cleaning out her closet. Jane is liable for:
conversion and trespass to personal property.
Mace copies Nick's book, Off the Beaten Path, in its entirety and sells it to Parkland Books, Inc., without Nick's permission. Parkland publishes it under Mace's name. This is
copyright infringement.
Max, a minor subject to his parents' care and control, signs a contract to rent an apartment from Noel for one year. Before the end of the term, Max moves out. Noel sues for the rent for the rest of the term. Max can
disaffirm the contract and avoid liability for the rent.
Jacquie signs a contract to buy a car just before reaching the age of majority. After reaching the age of majority, Jacquie does not take possession or make payments. Most courts would hold, with respect to the contract, that this is
disaffirmance
Olivia applies for a job with Petro Company. Petro does not hire Olivia because of her ethnicity, or national origin. This is
disparate-treatment discrimination.
Desiree signs a contract with Elena to kill Francois. Desiree pays Elena but she refuses to perform. Desiree can
do NOTHING with respect to the contract.
Jill tells Ken, who has no knowledge of literary comedy, that she will tutor him in the subject for $50. As an offer, this is
effective
Global Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. The UETA applies, if at all, only to those transactions in which the parties agree to use
electronic means
35 Sontoku Knives orally agrees to a sale of $12,000 of knives to Gladius, the owner of a knife store. Gladius gives Sontoku a check for $4,000 as partial payment. A dispute arises under the contract, and both parties admit in court documents that they had agreed to the sale of knives. This contract is
enforceable only to the extent of the $4,000. (CHECKED)
Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is
expropriation
3 Once a party unconditionally assigns their rights under a contract to someone else, the assignor's rights in the contract are
extinguished (CHECKED)
Sellers are required to take precautions against every conceivable misuse of a product.
false
Nick, or Nora, or any U.S. citizen, can bring a civil suit in a U.S. court against a foreign entity
for a tort allegedly committed in the United States or overseas.
Fabiola, Gabriella, or any foreign citizen, can bring a civil suit in a U.S. court
for a violation of a treaty of the United States or the law of nations.
Rupert, an agent for Star Productions, Inc., enters into an unauthorized contract with Theatrical Transport Corporation purportedly on behalf of Star, which refuses to perform. Rupert is liable
for misrepresentation to Theatrical Transport only.
Clear Up makes face wash for acne. Clear Up intentionally mislabels its packaging on its products to conceal a defect. Trusting and relying on the label, Diane buys Clear Up product and suffers an injury. Clear Up is most likely liable for
fraud
Smitty enters into an illegal bargain with Taylor. Smitty can enforce the contract or recover for its value if he has been induced to enter into the bargain as a result of
fraud
Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to perform, Ripe Produce files a suit to enforce the contract. Refer to Fact Pattern 14-4B. If Pete and Ripe Produce are in a state that does not recognize the doctrine of unconscionability, to defend successfully against enforcement of the contract on similar grounds, Pete might rely on traditional notions of
fraud.
Sylvia creates a profile for Today's Date, Inc., an online dating service. She exaggerates her appealing features and posts a photo of her friend Uva, whom Sylvia thinks is prettier. Enticed by the profile, Van subscribes to the service so that he can contact Sylvia. Van is most likely a victim of
fraud.
44 Candace knows that the DVD drive on her computer does not work, but in order to sell it she assures Malcolm, a potential buyer, that it works fine. Based upon this assurance, Malcolm buys the computer. Malcolm can sue Candace for
fraudulent misrepresentation
Brady knows that the brakes on his car do not work, but he tells Celia, a potential buyer, that there are no problems with the car. On this assurance, Celia buys the car. On learning the truth, she may sue Brady for
fraudulent misrepresentation
Tanya contracts with Suite Condos Corporation to buy a unit in Suite's Bayview Tower at a premium for its view of River Bay. Unforeseeably, the town of River Bay changes its zoning law. Resort Hotels, Inc., constructs River Bay Resort, blocking what would have been Tanya's view. Tanya's best argument for a change in the Suite contract or its price is
frustration of purpose.
A disabled employee or job applicant who is not hired for a position may successfully sue under the Americans with Disabilities Act if he can show that
he was otherwise qualified for the job but was not hired solely because of his disability
Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties, a court in Portugal resolves a dispute between them. A U.S. court will most likely honor the judgment
if it is consistent with Portuguese laws and public policy.
Stacy, a minor, charges the cost of an expensive leather jacket at a Girl's Trend store. Two nights later, Stacy loses the jacket at Minors Only Club. She disaffirms the jacket's purchase. Stacy owes Girl's Trend the reasonable value of the jacket
if it is deemed a "NECESSARY."
Woodgrain Products Company and Sylvia enter into a contract for a sale of lumber. Woodgrain knows the purpose for which Sylvia will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises
if the buyer is relying on the seller to select suitable goods.
Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words "payment in full." Nat cashes the check. This discharges the entire debt
if the debt is unliquidated.
Melissa agrees to work as Garry's personal accountant for one year but dies in the sixth month of the contract. Melissa's estate
is discharged from any contractual liability.
Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be
legally sufficient
Rollo promises to perform, for a price, shoe repair services in affiliation with Togs 'n Things, a clothing store. To support a contract, the consideration exchanged by the parties must be
legally sufficient.
At an auction for the first time, Max bids on an object, believing that it is worth more than the price asked. When the item proves to be less valuable, Max is
liable on the bid.
Big Deal! Marketing Company, a U.S. firm, signs a contract with Comercio Exterior, Ltd., a Chilean firm, to give Comercio the right to use Big Deal!'s animation techniques and characters in product promotions. This is
licensing
Innovative Manufacturing Company, a U.S. firm, signs a contract with Librador Corporacion, a Columbian firm, to give Librador the right to use Innovative's production processes. This is
licensing.
The major features of an LLP as a business entity are that it
limits the personal liability of the partners and allows the partnership to continue as a pass-through tax entity.
Grady, an obese individual, files a suit against Fry Fast Food Corporation (FFFC), alleging that FFFC's food is unhealthy because, as Grady knows, it contains high levels of cholesterol and saturated fat. Grady is most likely to
lose, because Grady knows of the food's unhealthiness.
Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This
makes the offer irrevocable for three days if BPI accepts.
Mountain Bikes, Inc. (MBI), and Nero enter into a contract for a sale of a mountain bike. MBI, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act was designed to prevent deception in warranties by
making warranties easier to understand.
Field Trenchers Inc. initiates a lawsuit against its competitor Master Excavators Inc. out of malice and without probable cause. Master suffers a loss of profits due to the litigation, but Field loses the suit. Field is most likely liable for
malicious prosecution.
Jaclyn, an agent for Kilpatrick, enters into a contract on Kilpatrick's behalf with Leif that must be in writing to be enforceable under the Statute of Frauds. Under the equal dignity rule, Jaclyn's authority to enter into this contract
must be written.
If a franchisor makes claims regarding earnings to potential franchisees, the franchisor
must have a reasonable basis for any earnings representations
In the global environment of business, the law of a particular nation, such as Brazil, China, or India, is classified as
national law
Grady obtains a business loan from Farmers County Bank. To keep Grady in business, and thereby obtain the benefits of a deal between them, Dakota promises the bank's loan officer that she will repay the loan if Grady does not. To be enforceable, Dakota's promise
need not be in writing.
An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Keely, a patron, is injured. Jack's has committed
negligence per se
Isaac and Holiday Fruit Company enter into an oral contract under which Isaac agrees to provide delivery service for holiday Fruit for nine months. This contract is enforceable by
none of the choices.
Kirk Custodial Service and Green Energy Company enter into an oral contract under which Kirk agrees to provide custodial service for Green's facilities for two years. This contract is enforceable by
none of the choices.
Petro Oil Company wants to conduct genetic testing of its workers to identify those who might develop significant health problems in the future. Under federal law, Petro may use genetic information to
none of the choices.
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples. Refer to Fact Pattern 17-2A. Evelyn dies before the apples are delivered to Hill & Dale. Evelyn's contract with Hill & Dale is
not affected.
Hoppy, who works as an employee for Integrated Systems Corporation, suffers an injury in an accident. Hoppy will be compensated under state workers' compensation laws
only if the injury occurred on the job.
John says to Kris, "I would like to sell you my sports memorabilia collection." This is not an offer because it
only invites Kris to negotiate.
49 Ernest says to Ellie Mae, "I would like to buy your pig." This is not an offer because it
only invites River to negotiate.
Fay is admitted to Global Associates, an existing partnership. A partnership debt incurred before the date of her admission comes due. Fay is
only liable for the debt up to the amount of her capital contribution.
When making complex business decisions, the legality of an action is
only sometimes clear
4 When making complex business decisions, the legality of an action is
only sometimes clear.
rafi, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Rafi and Speedy are liable to
only those whose injuries could have been reasonably foreseen
Marie, a driver for Northern States Transport Company, causes a five-car accident on an interstate highway. Marie and Northern States are liable to
only those whose injuries could reasonably have been foreseen.
Billy operates a lawn moving business as a sole proprietor. If he makes a profit operating this business, he will pay
onlypersonalincometaxes
21 Barry, a novice runner, goes to a running shoe store to buy a pair of shoes for a race. Jessica, a salesperson, recommends a particular pair of shoes to Barry and says, "These are our best running shoes. I bet your times will be much better in them." Berry buys the shoes, but finds them uncomfortable and does not experience better race times. Jessica's statement is
opinion (my answer) fraudulent (possibly)
Luke is playing a video game on a defective disk that melts in his game player, starting a fire that injures his hands. Luke files a suit against Mystic Maze, Inc., the game's maker under the doctrine off strict liability. A significant application of this doctrine is in the area of
product liability
Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based on
promissory estoppel.
61 mitch writes an autobiographical memoir title with my brothers about his time living in afirca with a pride of lions. Mitch does not register the work with the appropriate government office. Under federal copyright law, mitch's work is
protected for the life of the author plus seventy years pt. 201 digital book.
Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides "like the wind." Kurt's statement is
puffery.
United Company replaces Vera, a forty-five-year-old employee, with Wendy. Vera files a suit against United under the Age Discrimination in Employment Act of 1967. To establish a prima facie case, Vera must show, among other things, that she is
qualified for the position.
Rona is Stu's administrative assistant and both work for TriCounty Labor Inc. Stu tells Rona that for sexual favors, he will give her an excellent performance review and recommend a raise. This is
quid pro quo harassment.
Flip, an accountant, certifies an audit for Erstwhile Corporation, Flip's client, knowing that Erstwhile will use the audit to obtain a loan from Deepwater Bank. Flip believes that the audit is true and does not intend to deceive the bank, but does not check the audit before certifying it. Refer to Fact Pattern 14-3A. Under these circumstances, Deepwater's best course of action is most likely to
recover damages from Flip for any loss on the loan.
Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can
recover from Big Dig for breach of warranty.
35 An exculpatory clause is a clause that
releases a party from liability in the event of monetary or physical injury, no matter who is at fault.
32 If both parties to a contract desire to rescind before either party has performed, recession of their contract
requires a mutual agreement to rescind (CHECKED)
Following negotiations with Lester's Landscaping for maintenance services for a lawn and garden, Moore enters into an informal contract. This means that the parties' contract
requires no special form.
Gina induces Hu to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features. When Hu discovers the truth, Hu can
rescind the contract on the basis of fraud.
Panini Vittles, Inc., contracts with Qino to deliver its sandwiches. Later, the parties decide to cancel their contract. They can
rescind their contract to the extent that it is executory
Hauser takes temporary family leave from his job at Gelato Confectionary Corporation to care for a new baby. On Hauser's return from the leave, Gelato must
restore Hauser to his original position
Kit, manager of Long-Term Care Company's office in Metro City, decides to replace the office's male employees with females. Nia, an assistant manager transferred from a different Long-Term Care office, refuses to cooperate. Kit fires her for not cooperating. Within a year, the male employees also quit. Kit's action against Nia is most likely
retaliatory discrimination on the basis of gender.
13 The study of business ethics primarily involves the study of what constitutes
right or wrong behavior
Sonic Board Corporation files a suit against Custom Fabricators Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if
something of value passed between the parties
Regal Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each Regal sales agreement should note that a car is sold
subject to warranties included in the written contract only.
Real Cheap Painters, Inc., agrees to paint Quint's house, using a particular brand of "discount" paint. Real Cheap completes the job but uses a different brand of discounted paint. This is most likely
substantial performance.
Good Cookin' Products Company makes heat convection ovens. Heidi discovers that her Good Cookin' oven is defective and sues the maker for product liability based on strict liability. To win, Heidi must show that she
suffered an injury caused by the defect.
BioChem Corporation, ChemCo Company, and DexLabs Inc. make and distribute toxic chemicals. In a product-liability suit against all of these parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties
supplied the particular product that caused the injury.
35 ERROR Clean it Up, Sani-Clean, and Fox Labs make and distribute cleaning supplies, including chemicals. In a product liability suit against all of these parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties
supplied the particular product that caused the injury. (check r)
Roy owns an apartment building that contains units of different sizes. The sidewalks around the building are in poor repair. Many sections have buckled from the growth of tree roots over the years. Refer to Fact Pattern 7-1A. As the landlord of the building, when a prospective tenant asks about the size of an apartment, Ray has a duty to
supply correct information.
1 If TChalla completely performs all of his obligations under a contract with T'Chaka, T'Chaka is entitled to
suspend performance (possibly)
Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house burns down before being sold. The agency agreement is likely
terminated by operation of law.
Bubbles Corporation makes and sells soft drinks. Tania buys and drinks a Bubbles Corporation beverage, which proves defective and injure her. If Tania sues Bubbles under strict product liability, which of the following will she not have to prove to be successful?
that Bubbles did not exercise due care when manufacturing or designing the product, and this lack of due care caused the product to be defective.
Soda Bubbles Corporation makes and sells soft drinks. Talia buys and drinks a Soda Bubbles beverage, which proves defective and injuries her. If Talia sues Soda Bubbles under strict product liability, which of the following will she not have to prove in order to be successful?
that Bubbles did not exercise due care when manufacturing or designing the product, and this lack of due care caused the product to be defective.
Credit & Debt Corporation loans Evelyn $25,000 to start a new business. Evelyn does not pay, but Credit & Debt fails to sue within the time prescribed by the applicable statute of limitations. Evelyn promises to pay a portion of the debt even though recovery is barred. Credit & Debt can sue to recover
the amount promised.
Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers
the apartment lease and the car purchase only.
Fact Pattern 23-1B Sociedad Guarantia (SG), a Mexican firm, borrows $1 million from Tri-national Bank, a U.S. firm. Later, SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of payments on the loan. Tri-national files a suit against SG in a U.S. court, arguing that the funds do not belong to SG. Refer to Fact Pattern 23-1B. Under the principle of comity, the U.S. court in Tri-national's suit is most likely to
the bankruptcy proceedings in the Mexican court appear to be fundamentally fair and not in violation of U.S. public policy.
Dynamic Oil Corporation, a U.S. firm, owns property in Ecuador. When the government of Ecuador seizes the property, Dynamic Oil asks a U.S. court to order the property's return. The court rules that Ecuador is exempt from the court's jurisdiction. This is
the doctrine of sovereign immunity.
UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela seizes the property, UniOil asks a U.S. court to order the property's return. The court rules that Venezuela is exempt from the court's jurisdiction. This is
the doctrine of sovereign immunity.
36 Orlin purchases a refrigerator, on credit, from a door to door salesman. Orlin only has a 5th grade education, and the terms of the credit arrangement are such that Orlin will pay 10 times what the refrigerator is worth by the time he completes all of the payments. If Orlin wants to challenge the enforcement of this contract's terms, his best argument under the UCC would be based upon
the doctrine of unconscionability (CHECKED)
Tom's Timber Outlet and Olivia, a consumer, enter into a contract for a sale of plywood. If the contract includes a clause that is perceived as grossly unfair to Olivia, its enforcement may be challenged under
the doctrine of unconscionability.
Interstate Distribution, Inc. (IDI), provides its employees with an e-mail system. IDI notifies them that it will monitor their communications over the system. Some employees file a suit against IDI, claiming a violation of privacy. The court is most likely to hold that, with respect to communications over the e-mail system,
the employees did not have a reasonable expectation of privacy.
Chemco Sales, Corporation wants to monitor its employees' electronic communications. To best avoid liability under laws related to employee monitoring, Chemco should notify
the employees.
40 Mitch makes ethical decisions utilizing utilitarian ethics. This means that in order to determine whether an action is morally correct, Mitch considers whether his action will produce the greatest good for
the greatest number of people
Mitch makes ethical decisions utilizing utilitarian ethics. This means that in order to determine whether an action is morally correct, Mitch considers whether his action will produce the greatest good for
the greatest number of people
David contracts to buy a franchise from Los Pollos Hermanon, a friend chicken restaurant franchisor. The contract does not state that David will have any type of exclusive territorial rights. Los Pollos Hermanos decides to allow a competing franchise to established near David's restaurant, and as a result he suffers a significant loss in profits. This is possible a violation of
the implied covenant of good faith and fair dealing imposed on franchise contracts
Eden Valley Ranch and Farm Supply Corporation enter into a contract for a sale of fencing materials. Farm Supply, a merchant who deals in goods of the kind, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent
the implied warranty of fitness for a particular purpose takes precedence.
Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products. Regional, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent
the implied warranty of fitness for a particular purpose takes precedence.
Blueberry Café signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. Blueberry's best argument for avoiding payment to County Credit is that
the law has rendered performance of the contract illegal.
Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug. Imported Carpets, a merchant who deals in goods of the kind sold, generally describes the goods, details technical specifications, and shows a sample. Under the UCC, if these are inconsistent
the sample takes precedence over the general description
Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when
the seller or lessor tenders delivery.
Pablo and Melia enter into an oral contract for Pablo's sale to Melia of a laptop computer for $400. Assuming the terms can be proved, the contract is enforceable by
the seller or the buyer.
Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of
the speakers only.
Jackie, an accountant, distributes a handbill to her business clients and potential customers accusing her competitor Ked of being a convicted thief. The statement is defamatory if
the statement is false
Green Grocers, Inc., enters into a contract with Hiway Transport Company for the delivery of a shipment of fresh produce. In a later dispute between these parties over the delivery, the doctrine of quasi contract cannot be used because
there is an actual contract covering the subject in dispute.
4 Reginald owns two racing greyhounds. One is worth around $100,000 and the other around $50,000. Doug and reginald enter into a contract to buy "Reginald's Greyhound" for $65,000. Reginald's understanding, in good faith, is that he is selling the $50,000 greyhound. Doug's good faith belief is that he is buying the $100,000 greyhound. In this situation
there is no contract (possibly)
The idea for "Price + Profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by
trade secrets law.
From Southeast Asia, Tai Ltd. exports genuine trademarked goods to the United States. Tai also makes labels and packaging bearing another firm's trademark, ships the labels to another location, and then affixes them to an inferior product to deceive buyers. Tai sells these goods to retailers who are unaware that the marks are counterfeit. It is a crime to
traffic in counterfeit labels, stickers, and packaging.
As a joke, Fran hides Gary's business law textbook so that he cannot find it during the week before the exam. Fran is liable for
trespass to personal property.
As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem most likely committed
trespass to personal property.
A manufacturing defect is a departure from a product unit's design specifications that results in products that are physically flawed.
true
Misrepresentation in an ad is enough to show an intent to induce the reliance of anyone who may use the product.
true
The law imposes strict product liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries caused by their products.
true
The types of product defects that have traditionally been recognized in product liability law include manufacturing defects.
true
Taylor slips and falls in Urban Mall and is injured. She files a suit against the mall for $500,000. Under a "pure" comparative negligence rule, Taylor could recover damages
under any circumstances
Betty pledges to donate $1,000 to the Children's Hospital. On the basis of the pledge, the hospital orders additional equipment. Betty reneges on the pledge. The hospital sues Betty. If the court enforces the pledge, it will be
under the doctrine of promissory estoppel.
Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.Refer to Fact Pattern 12-2A. If CCC offers no reason for the extra $100,000, but says only that it will otherwise stop construction, the agreement is
unenforceable due to the preexisting duty rule.
A contract between Eppie and Fab to lease real property contains an exculpatory clause. This clause is most likely
unenforceable.
19 Gas Guzzler Auto, Inc. pays its executives much more than lower-level employees and much more than what executives at its competitors are paid. Gas Guzzler's pay scale is most likely to be criticized by society as
unethical
Chip's Chips Company agrees to supply Delicioso Café with all the corn chips that it requires for a year. A sudden demand for ethanol results in a shortage of corn, and the price rises sharply. Chip's asks Delicioso to pay a higher price for the chips. This request is
valid due to the unforeseen difficulty of the sudden price increase.
Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is
void as a matter of law.
23 Angel contracts to buy two tracts of land from Jesus. Both parties believe that the two tracts are adjacent, but in fact they are not. Jesus is still willing to sell the land, but Angel is adversely affected by the tracts not being adjacent. Because of this misunderstanding regarding the adjacency of the tracts, their contract is
voidable (CHECKED)
Commercial Development Corporation (CDC) hires Delta Construction Company to work at a site as an independent contractor. Whether CDC will be liable for torts committed at the site by Delta depends on
whether exceptionally hazardous activities are involved.
Rowan, a famous chef, sells to Patricia a restaurant that Rowan closed years ago. Patricia discovers in the restaurant a collection of Rowan's recipes, which are considered valuable. In a suit to obtain the recipes, Rowan will likely
win because there was no voluntary consent to the sale of the recipes.
Fanny tells Eden that she will sign a lease if it includes a clause permitting Fanny to extend the lease at the same amount of rent. Fanny's intent to sign the lease is determined by reference to Fanny's
words and action.
Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The elements of this, and any other, contract include
consideration
Odell and Pete sign a contract for the sale of Odell's Pizza Parlor to Pete. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement¾Odell must first buy the building from Quin, after which Odell and Pete will negotiate a final price. Refer to Fact Pattern 15-1B. Pete later disputes some of the provisions of the deal with Odell. If the dispute results in litigation, a court will most likely admit evidence of
consistent additional terms.
Kato takes temporary family leave from his job at Lube & Oil Company to care for a new baby. During the leave, under the Family and Medical Leave Act, Lube & Oil must
continue the employee's health-care coverage.
Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states "12 percent." The Statute of Frauds governs
contracts that must be in writing to be enforceable.
16 Lana attends opera, and as she leaves, she grabs a coat that she believes to be hers. It is actually Pam's coat. She takes the coat home, and the next week, she gives it to Goodwill. With respect to Pam, Lana has committed
conversion
Origami Paper Products Corporation meets all of the requirements to be subject to the federal employment discrimination laws. These laws restrict the ability of employers to discriminate against workers on the basis of
gender.
34 Sahara, Inc. promises its employees a 10 percent raise at the end of the year if productivity has increased by 25 percent and management feels the raise is warranted. If productivity does increase by 25 percent, Sahara, Inc. must
give the employees a 10 percent raise under any circumstances. (possibly)
Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores. Nixie agrees and quits her job with Pic-U Grocery, but Herm does not hire her. Herm is most likely liable to Nixie under
he doctrine of promissory estoppel
Two Japanese firms—Mikato, Ltd., and Shuzushi, Ltd.—enter into a joint venture in an attempt to increase their market share of the U.S. auto market. A U.S. court could exercise jurisdiction over the firms
if the joint venture has a substantial effect on U.S. commerce.
Yokima, Ltd., and Zenota, S.A., transact an international sale of goods. For these parties, and other international buyers and sellers, the United Nations Convention on Contracts for the International Sale of Goods spells out the duties that apply
if the parties have not agreed otherwise in their contracts.
Chris is the manager of restaurant. He fires Cole, a waiter. After firing Cole, Chris tells other workers that Cole was stealing from the restaurant and had previously been convicted of theft and served jail time. Chris' statement is defamatory
if the statement is false
11 Jon is a manager of a restaurant. He fires Kevin, a waiter. After firing him, he tells the other workers that Kevin was stealing from the restaurant and had previously been convicted of theft and served jail time. John statement is defamatory
if the statement is false.
The Occupational Safety and Health Act requires employers o do which of the following?
keep occupational injury and illness records for each employee
Kevin is an employee of Orange Computers. Organe's employee manual states hat workers may be fired only for good cause. If Kevin works for Orange in an employment-at-will state, then Orange
may fire Kevin for any reason (other than an illegal reason that violates a statute, such as anti-discrimination laws) that it sees fir and bear no legal consequences Checked says: Will very likely be liable for breach of contract if it fires Kevin for any reason other than good cause because the employee manual created an implied employment contract)
Brad works for a small, but profitable, software company with 15 employees. Brad's wife contracts a serious illness and he must leave work to care for her. Brad's employees
may provide Brad with leave if it would like, but it is not required to do so
Emery is an agent for Downtown Market Corporation. Emery makes an innocent misrepresentation when entering into a contract on behalf of Downtown Market with Cool Fruits, Inc. Cool Fruits
may rescind the contract.
45 A California State statute requires daycare centers to perform background checks on all workers before for allowing them to work with children. Lots of Fun Day Care fails to perform a background check on Sarah, who has a previous conviction for injury to a child. If Sarah injures a child while working at Lots of Fun, Lots of Fun can be sued under the doctrine of
negligence per se
A Louisiana statute requires all daycare centers to perform background checks on all workers before allowing them to work with children. Nottingham Day Care hires Annie, but fails to perform the background check. Annie has a previous conviction for injury to a child. If Annie injures a child while working at Nottingham Day Care, Nottingham Day Care can be sued under the doctrine of
negligence per se
An Illinois state statute requires commercial vehicle drivers to "fully attend to the operation of the vehicle." Jerry, a driver for Crosstown Taxi Company, is driving and talking on his cell phone when his cab collides with Kayla's car, injuring her. Kayla's best theory for recovery against Jerry and Crosstown is
negligence per se.
Flip, an accountant, certifies an audit for Erstwhile Corporation, Flip's client, knowing that Erstwhile will use the audit to obtain a loan from Deepwater Bank. Flip believes that the audit is true and does not intend to deceive the bank, but does not check the audit before certifying it. Refer to Fact Pattern 14-3A. On learning the truth, Deepwater's chief loan officer confronts Flip, who says, "I didn't know." This is
negligent misrepresentation.
Daria signs an instrument payable to the order of Employees Credit Union "on or before" June 15. This instrument is
negotiable
International Properties, Inc. (IPI), signs an instrument in favor of Financial Investments Corporation that includes the statement "IPI plans to pay this debt from the proceeds of the sale of the IPI Office Building in Montreal." This instrument is
negotiable
Jack signs an instrument that states it is being executed "as per a contract for the sale of three magic beans dated June 1." This instrument is
negotiable
Julie signs a check payable to the order of Kwik Mart Stores, Inc., that does not include a date. This check is
negotiable
To finance the purchase of a car from Giant Auto Sales, Hoppy signs an instrument promising to pay to "Ideal Credit Union" $18,000 with interest in installments with the final payment due May 15, 2014. To be negotiable, this instrument must include on its face
no conditions.
Betty is an agent for Veronica. Veronica gives Betty clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. Betty enters into a contract on Veronica's behalf on Friday. Better has breached
no duty (checked)
George hires Thumbelina to sell his 1965 Corvette. The Corvette is completely destroyed in a fire before being sold. Thumbelina is
no longer Gregor's agent
Shila promises to pay Blaine $500 because "he does not have as much money as other people." Shila's promise is
not enforceable because Blaine has not given consideration in return.
Candy and Newton are partners in Mountain Expeditions, Inc., and have agreed to share the profits and losses of the partnership equally. Candy manages the business and effectively operates as the CEO. Unless the partnership agreement expressly states otherwise, Candy is
not entitled to any compensation above and beyond her share of the partnership's profit (OR not entitled to compensation)
Lew believes an old comic book he owns has little value, but Murray is convinced it is a valuable collector's item. Lew sells it to Murray for $10 before learning it is worth $1,000. Lew can
not rescind the contract.
Precision Crafted Tools, Inc., makes tools for consumers and construction professionals. While using a Precision Crafted tool to replace an electrical fixture, Quinn neglects to shut off the power and is electrocuted. Quinn's heirs file a suit against Precision Crafted. In a contributory negligence jurisdiction, the plaintiffs could recover
nothing
Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract is subject to
Article 2A of the UCC.
Breakfast Foods Corporation markets waffle irons, one of which proves defective and injures Chelsea. Breakfast Foods's strict liability to Chelsea for the harm caused by the defective waffle iron is based in part on the fact that
Breakfast Foods profits from the sale of its waffle irons.
Hayley is injured in an incident precipitated by Isolde. Hayley files a tort action against Isolde, seeking to recover for the damage suffered. Damages that are intended to compensate or reimburse a plaintiff for actual losses are
Compensatory damages
Amber shops in a Breezy Bargains store, whose employee Connor recently mopped the floor. Amber slips, falls, and suffers an injury. Breezy is liable to Amber on a negligence theory if there was a "Wet Floor" warning sign and
Connor did not place the sign near the wet floor.
Ian steals a business law textbook from Jules. Kris, who does not know that the book is stolen, buys it from Ian. Kris has committed
Conversion
Every seller is required to provide a written warranty for consumer goods sold.
False
Generally, the implied warranties of merchantability and fitness for a particular purpose cannot be disclaimed.
False
At Parkside Bistro, Ogden believes that he was overcharged and shoves Nellie, the waiter. Nellie sues Ogden, alleging that the shove was a battery. Ogden is liable
If the shove was offensive
OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is
None of the choices
15 Hung is a car salesman. To make a sale, he tells a young car buyer that a certain car is "The hottest car on the street right now." This is
Not fraud because it is puffery
49 Jim buys a backhoe from Big John Equipment, Inc. Jim is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Jim can
Recover from Big Dig for breach of warranty
3 In an implied contract, a contract is formed from the conduct of the parties
True
A Manufacturer can be held liable for selling a defective product even if it used all possible care in designing and manufacturing the product.
True
In some transactions, an agent can represent two principals in the same transaction as long as both of them know about it and content to it
True (checked)
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is
a quota
Bobby asks Anna to act as his attorney in a matter. Anna orally agrees to do so. This is
an agency by agreement
In order to form a limited liability company, most states state require the filling of
articles of organization (OR the secretary of State)
Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has
rejected the offer and made a counteroffer.
The United States and other members of a certain organization agree to grant normal trade relations (NTR) status to each other with regard to imports and exports. This organization is
the World Trade Organization.
iMeeMine Inc. develops a new mobile phone that the company names "Call Mee." iMeeMine can obtain trademark protection for
the name "Call Mee."
From a computer in a distant location, Sergio searches Tia's personal computer without her permission. Sergio is most likely liable for
Invasion of Privacy
Johnny and Daniel do business as partners teaching karate at Cobra Kai dojo. If johnny hurts a student sweeping their leg in karate class, and the student sues for negligence, who may be liable for the damages:
Johnny and Daniel individually, and the Cobra Kai partnership as a separate legal entity.
Janine is a professional and highly trained chemist that works in a laboratory. She buys a set of commonly used chemicals for her lab from a chemical supply company. The set of chemicals contains no warnings with respect to the dangers of mixing any of the chemicals. Two of the chemicals in the set create a dangerous fume that burns the lungs when mixed together, and Janine inadvertently mixes the two chemicals and injures herself. She sues the chemical supply company for product liability, alleging that the chemical set was defective because it had inadequate warnings regarding the dangers of mixing these two chemicals. Which defense to strict product liability most directly applies in this situation?
Knowledgeable User
lana hires mike, an architect, to design a warehouse. lana is dissatisfied with the look of the new building and sues mike, alleging negligence. mike can successfully defend against the suit by proving that
Lana was not injured in anyway
Larry is an employee of Big Pharma, where he is a laboratory scientist doing pharmaceutical research. He discovers that Big Pharma is conducting illegal drug tests on orphans and reports this to the Food and Drug Administration. When Big Pharma finds out that Larry reported the legal violations, he is fired. If Larry is employed in a state that follows the employment at will doctrine, then
Larry will likely be able to successfully sue for wrongful discharge because of the public policy exceptions in the employment at will doctrine for whistleblowers OR: is protected from wrongful discharge by the exception based on public policy.
Steve agrees to assume a debt of Thumb Grippers Company to Main Street Bank. The agreement is not in writing. To be enforceable, the promise must be for the benefit of
Steve.
Sam gets into a fight in the bar with Steven. Sam pulls his knife and tries to stab Steven. Steven jumps out of the way, resulting in Sam stabbing Susan, Steven's girlfriend. Which of the following is true if Susan sues Sam for battery?
Susan will only be required to prove that Sam tried to stab Steven to be successful because Sam's intent can be transferred to her.
Thor is an avid golf fan, and decides to attend a professional golf tournament at a local golf course. As he is watching the tournament, he is hit in the eye with a golf ball that gets hit off the fairway and into the crowd. He ends up losing his eye. If he sues the company that hosted the tournament for negligence, which of the following is a valid defense that the company could make to defend itself against its lawsuit?
That Thor voluntarily assumed the risk of getting hit by a ball when he decided to attend the tournament.
Victor's Little Secret is a women's lingerie tore. It employs female attendants who assist customers in the dressing rooms with selecting and trying on lingerie. John, a 19 year old male, apples for an attendants job and is not hired. He sues for employment discrimination based upon gender. Which defense could Victor's Little Secret successfully assert against John's claim?
That for this job, gender is a bona fide occupational qualification
kara and Eunice have never entered into a formal partnership agreement, but they run a restaurant together. Which of the following is not one of the main elements the court would consider in determining whether an implied partnership agreement was formed:
That the parties carry on business with each other with a reasonable level of good faith and goodwill
Dirk is driving a sport utility vehicle in which Elin is a passenger when they are involved in a traffic accident, and Elin is injured. Liability may be imposed on Dirk for Elin's injury if Dirk's driving is
The causation in fact and the proximate cause of the injury
