Business Law Exam 1 Review Question Batch Questions ch. 6-10

_________ is the intentional infliction of harmful or offensive bodily contact. a. Battery b. Assault c. False imprisonment d. Trespass to chattels (personal property) e. Conversion

a. Battery

Which of the following statements, concerning nonfraudulent misrepresentation, is/are true? 1. Innocent misrepresentation is a false representation that is made without due care in ascertaining its truthfulness. 2. Innocent misrepresentation renders a contract voidable. 3. Negligent misrepresentation is a false representation made without knowledge of its falsity but with due care. 4. Negligent misrepresentation renders a contract voidable.

1. FALSE (Negligent not innocent) 2.TRUE 3. FALSE (Innocent not negligent) 4. TRUE

Which of the following statements, pertaining to the duty to act in negligence cases, is/are true? 1. One is always required to aid another in peril. 2. A special relationship between two people may impose a duty to act on one person to aid or protect the other. 3. A duty to act may be imposed on an individual whose conduct has injured another and left the injured person helpless and in danger of further harm. 4. A person voluntarily coming to the assistance of another in need of aid may incur a duty to exercise care.

1. FALSE (is not always) 2. TRUE 3. TRUE 4. TRUE

Which of the following statements, regarding an offer, is true? 1. An offer is a proposal indicating a willingness to enter into a contract. 2. An offeree is the person making the offer. 3. An offeror is the person to whom the offer is made.

1. TRUE 2. FALSE (Offoror) 3. FALSE (Offeree)

Which of the following statements, concerning the reasonable person standard in a negligence action, is/are true? 1. The standard of conduct to which a child must conform to avoid being adjudged negligent is that of a reasonable person of like age, intelligence, and experience under the circumstances. 2. If a person is physically disabled, the standard of conduct to which he must conform to avoid being adjudged negligent is that of a reasonable person having a like disability. 3. If a person is voluntarily intoxicated, the standard of conduct to which she must conform to avoid being adjudged negligent is that of a reasonable intoxicated person. 4. If a member of a profession or skilled trade possesses greater skill than that common to the profession or trade, she is required to exercise that greater degree of skill to avoid being adjudged negligent. 5. In determining whether a defendant's conduct was reasonable, the fact that he was at the time confronted with an emergency is taken into account.

1. TRUE 2. TRUE 3. FALSE (not intoxicated) 4. TRUE 5. TRUE

Which of the following statements, concerning the types of dangerous conditions a defendant is responsible for in a negligence action, is/are true? 1. There is no duty owed to undiscovered trespassers. 2. If the plaintiff is a discovered trespasser, the possessor of land is responsible for artificial conditions involving risk of serious injury that the possessor knows about. 3. If the plaintiff is a licensee, the possessor of land is responsible for all dangerous conditions that the possessor knows about. 4. If the plaintiff is an invitee, the possessor of land is responsible for all dangerous conditions that the possessor should know about.

1. TRUE 2. TRUE 3. TRUE 4. TRUE

Which of the following statements, concerning the mirror image rule, is/are true? 1. Under the common law, any communication by the offeree that attempts to modify the offer is not an acceptance but a counteroffer, which does not create a contract. 2. The UCC does not apply the common law mirror image rule. 3. Under the UCC, if the offeree does not make her acceptance conditional upon the offeror's assent to the offeree's additional or different terms, a contract is formed. 4. If the offeror and the offeree are both merchants, the offeree's additional terms may become part of the contract provided they do not materially alter the agreement and are not objected to either in the offer itself or within a reasonable period of time. 5. If either of the parties to a contract is not a merchant or if the offeree's additional terms materially alter the offer, then the additional terms are merely construed as proposals to contract. In other words, the additional terms proposed by the offeree will not become part of the contract unless accepted by the offeror.

ALL TRUE

Charlotte, after having her month-old Cadillac break down for the third time in two days, screams in disgust, "I will sell this car to anyone for $10!" Lisa hears Charlotte and hands Charlotte a $10 bill. Has a contract been formed between Charlotte and Lisa?

No, because words are not emotional staint

Mark offers to buy from Charlie all of the goods that Mark wishes next year. Has Mark made a valid offer?

No, not quantity term

Carlos in New York sends by airmail to Paula in San Francisco an offer that is expressly stated to be open for one week. On the fourth day, Paula sends to Carlos by airmail a letter of rejection which is delivered on the morning of the sixth day. At noon on the fifth day, Paula dispatches a telegram of acceptance that Carlos receives before the close of business on that day. Has a contract between Carlos and Paula been formed?

Yes, got acceptance on 5th day, rejection on 6th...First one is accepted

Sam delivers a package to Dorothy, requests that Dorothy sign a receipt for the package, holds out a simple printed form headed "Receipt," and indicates the line on which Dorothy is to sign. This line, which appears to Dorothy to be the bottom line of the receipt, is actually the signature line of a promissory note cleverly concealed underneath the receipt. Dorothy signs without knowing that she actually signed the note. Based on the preceding facts, which of the following statements is true? a. Fraud in the execution has occurred, and the note is void. b. Fraud in the inducement has occurred, and the note is voidable by Dorothy. c. The law will not enforce the promissory note contract because Dorothy was induced by duress. d. The promissory note contract was induced by undue influence on the part of Sam and is voidable by Dorothy. e. Since Sam engaged in negligent misrepresentation, the promissory note contract is voidable by Dorothy.

a. Fraud in the execution has occurred, and the note is void.

A(n) ___________ contract is a contract where agreement of the parties is inferred from their conduct. a. implied in fact b. express c. bilateral d. unilateral e. voidable

a. implied in fact

Albert parks his car in front of his house. Later, Frank pushes Albert's car around the corner. Albert subsequently looks for his car but cannot find it for several hours. Frank is liable to Albert for ___________ a. trespass to chattels (personal property) b. conversion c. trespass to land (real property) d. assault e. false imprisonment

a. trespass to chattels (personal property)

________ is the intentional infliction of an apprehension of immediate bodily harm or offensive contact. a. Battery b. Assault c. False imprisonment d. Trespass to chattels (personal property) e. Conversion

b. Assault

_________ is the unfair persuasion of a person by a party in a dominant position based on a relationship of trust and confidence. a. Duress b. Undue influence c. Fraud

b. Undue influence

A(n) _________ contract is a contract that has not yet been fully performed. a. executed b. executory c. voidable d. valid e. express

b. executory

The four basic requirements of a contract do not include _________________. a. legality of object b. promissory estoppel c. capacity d. consideration e. mutual assent

b. promissory estoppel

____________ is the doctrine dividing damages between the plaintiff and defendant where the negligence of each has caused the harm. a. Contributory negligence b. Last clear chance c. Comparative negligence d. Implied assumption of the risk

c. Comparative negligence

_________ is the intentional interference with a person's freedom of movement by unlawful confinement. a. Battery b. Assault c. False imprisonment d. Trespass to land (real property) e. Conversion

c. False imprisonment

Which of the following is not an element that a plaintiff must prove in an action for negligence? a. Causation b. Damages c. Recklessness d. Breach e. Duty

c. Recklessness

Bob sells Rex a cow for $500. At the time of the sale, both Bob and Rex mistakenly believe the cow is unable to bear calves. Cows able to bear calves typically sell for five times as much as cows unable to bear calves. One month after the sale, the cow becomes pregnant. Based on the preceding facts, which of the following is true? a. Since a unilateral mistake has occurred, the contract is voidable by Bob. b. Since a unilateral mistake has occurred, the contract is voidable by Rex. c. Since a mutual mistake has occurred, the contract is voidable by Bob. d. Since a mutual mistake has occurred, the contract is voidable by Rex. e. Since a mutual mistake has occurred, the contract is void.

c. Since a mutual mistake has occurred, the contract is voidable by Bob.

A social guest is an example of a(n) ________________. a. undiscovered trespasser b. discovered trespasser c. licensee d. invitee

c. licensee

A(n) ___________ contract is an obligation not based upon law that is imposed to prevent injustice or unjust enrichment. a. promissory estoppel b. express c. quasi d. implied e. voidable

c. quasi

Ron told his wife, Julie, that Frank is a drug addict. Frank has never taken drugs in his life. If Frank sues Ron for defamation based on the comments Ron made to Julie, a court would likely _____________. a. impose defamation liability upon Ron because he committed libel b. impose defamation liability upon Ron because he committed slander c. not impose defamation liability upon Ron because Ron's comments to Julie were true d. not impose defamation liability upon Ron because Ron's comments to Julie were privileged

d. not impose defamation liability upon Ron because Ron's comments to Julie were privileged

Palsgraf v. Long Island Railroad Co. is a famous case concerning __________. a. the causation in fact test b. the joint cause/substantial factor alternative exception to the causation in fact test. c. the alternative causes exception to the causation in fact test d. proximate causation

d. proximate causation

A(n) __________ contract is a contract in which only one party makes a promise. It results from the exchange of a promise either for performing an act or refraining from doing an act. a. implied in fact b. express c. bilateral d. unilateral e. voidable

d. unilateral

Which of the following are ways in which an offer may be terminated? I. acceptance by the offeree II. revocation by the offeror III. a counteroffer by the offerree IV. subsequent illegality of the type of contact the offer proposes a. I, II, and III only b. II, III, and IV only c. I, III, and IV only d. II and IV only e. I, II, III, and IV

e. I, II, III, and IV

A(n) __________ is generally effective upon dispatch. a. offer b. revocation c. rejection d. counteroffer e. acceptance

e. acceptance

Liability for nonintentional and nonnegligent conduct is known as _________. a. contributory negligence b. comparative negligence c. proximate causation d. assumption of the risk e. strict liability

e. strict liability

A(n) __________ contract is a contract capable of being make void. a. implied in fact b. express c. void d. unilateral e. voidable

e. voidable