Business Law Test 2 Answers

Angela sued Tom for battery. Angela was awarded $30,000 for future medical expenses. Five years after the award, Angela realizes that her medical expenses will far exceed $30,000. Under the single recovery principal,

Angela will have no recourse against Tom or the court for the medical expenses as the long as the original award was reasonable

Liza offers to help Helen do her laundry. By what means can Liza terminate this offer? I. revocation II. rejection III. counteroffer

I only

Tom's wallet is as empty as his bank account, and he needs $3500 immediately. Fortunately, he has 3 diamonds that he inherited from his grandfather. Each is worth $2500, but it is Sunday, and the local jewelry store is closed. When approached, Tom's neighbor Angela agrees to buy the first diamond for $2400. Another neighbor, Casey, agrees to buy the second for $1200. A final neighbor, Linda, offers "all the money I have on me" - $100 - for the last diamond. Desperate, Tom agrees to the proposals. Which of the deals is supported by legally sufficient consideration? I. Tom's agreement with Angela II. Tom's agreement with Carey III. Tom's agreement with Linda

I, II, and III

Which of the following are examples of tort reform? I. caps on non-economic damages II. shortened statutes of limitations for doctors and hospitals III. limits on punitive damage awards

I, II, and III

Pete promises to help Sherry study for her Business Law test if Sherry will replace the spark plugs in his Jeep. By what means can Sherry terminate the offer? I. revocation II. rejection III. counteroffer

II and III only

Past actions not presently bargained for by the parties in an agreement are valid consideration for a contract. a. True b. False

a. true

An auction sale where the auctioneer sells the items without stating any minimum acceptable bid is said to be: a. without reserve b. qualified c. with reserve d. unconditional

a. without reserve

The mirror image rule applies to

acceptance

Annette drove through an intersection without looking and hit Vincent's car that he had driven into the intersection without obeying a stop sign. Annette sued Vincent. The jury found that Annette's fault contributed 30 percent to the collision and determined that her total loss was 300,000. Under comparative negligence, the jury awarded Annette: a. $90,000 b. $210,000 c. $300,000 d. nothing

b. $210,000

A contract with a person who is under a court ordered guardianship is unenforceable. a. True b. False

b. False

A valid contract can be legally voided by either party. a. True b. False

b. False

If Glenda threw a rock which hit Merv, she is liable for an intentional tort of battery only if she intended to injure or harm Merv. a. True b. False

b. False

Mary goes into Honest Harry's Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store's 30 day same cash plan. This is an executed contract. a. True b. False

b. False

Parker offers to sell his diamond earring to Sally. Jenna overhears the offer and says, "i accept the offer." Sally can no longer accept the offer. a. True b. False

b. False

Robert offers to sell Sam his home of 175000. The offer is made on March 29, 2018, and Robert files bankruptcy on April 1. Sam does not know this and accepts the offer April 2. A contract has not been formed. a. True b. False

b. False

Silence cannot be an acceptance of an offer unless the offeree had an affirmative duty to speak up. a. True b. False

b. False

Slander is written or printed communication which injures a person's reputation by distracting him/her and diminishes the respect in which he/she is held in the community. a. True b. False

b. False

The term "nuisance" and "trespass to property" refer to different torts involving real property. a. True b. False

b. False

Under pure contributory negligence, each party's negligence is measured in terms of percentage of fault for the entire accident, and any damages allowable to the plaintiff shall be diminished in proportion to amount of negligence attributable to the plaintiff. a. True b. False

b. False

While hunting, Roger, an adult, enters Adele's property without permission and is injured by falling into a ditch that was obscured by the underbrush. Under the common law, Adele is liable for Roger's injuries. a. True b. False

b. False

Fred, a preacher, says to Molly, "I'll sell you my laptop for $100." Molly asks, "Will you give me until tomorrow to make up my mind?" "Sure," Fred replies. Which of the following is true? a. Fred cannot revoke his offer because he's a preacher b. Fred cannot revoke his offer if Molly pays him $5 to keep the offer open until tomorrow c. Fred can revoke his offer no matter what, because he is not a merchant d. Fred can revoke his offer because no promise was in writing

b. Fred cannot revoke his offer if Molly pays him $5 to keep the offer open until tomorrow

A hunter who has permission to hunt on someone's else's property falls into which category: a. Trespasser b. Licensee c. Invitee d. None

b. Licensee

Rhonda, in Honolulu, faxes a job offer to Spike, in Oxford, saying "We can pay you $65,000 per year, starting June 1." Spike faxes a reply saying, "Thank you! I accept your generous offer, thought I will need $3,000 in relocation money. See you June 1. Can't wait!" On June 1 Spike arrives to find his position if filled. He sues Rhonda. a. Spike wins b. Spike wins nothing

b. Spike wins nothing

__________ is defined as compliance by the offeree with the terms and conditions of an offer. a. counter-offer b. acceptance c. assignment d. consideration

b. acceptance

Contract law is governed primarily by ________ law. a. statutory b. common c. federal d. administrative

b. common

The courts will find an implied contract when: a. justice demands it b. conduct for the parties indicates they intended an agreement c. there is promissory estoppel d. there in undue influence

b. conduct of the parties indicates they intended an agreement

A national magazine published an article about a famous television star. The television personality is upset because the information contained in the story is not correct. If the actress sues the magazine, she will need to show that the magazine: a. has a history of being "reckless" with facts on a regular basis b. either know the story was false or acted with reckless disregard of the facts c. failed to attempt to verify the story by trying to contact her or her agent before the story was printed d. could have discovered that the story was false but failed to do so.

b. either knew the story was false or acted with reckless disregard of the facts

Which of the following will support a contract? a. an illusory promise b. giving a return promise c. past consideration d. a pre-existing public obligation

b. giving a return promise

Hudson picks up a six-pack of Budweiser and a 2 lb bag of Oreos at James Food Center. Before getting to the checkout counter, he opens the oreos and eats half the back. Hudson then washes the cookies down with a couple of beers. He has made an a. express contract b. implied contract c. quasi-contract d. acceptance

b. implied contract

Bob, a weak swimmer, ignored warning signs in a recreational swimming area and went into deep water. He soon grew tired and realized that he could not make it back to shore. Seeing Kelly, he cried out for help. Kelly, however, ignored the pleas. Bob was finally saved by Dorothy, but suffered brain damage from being submerged during the ordeal. Bob now sues Kelly for negligence for failing to try to save him. Bob will: a. prevail because society places a duty on people to help each other and Kelly breached this duty, resulting in Bob's injury b. lose because Kelly has no legal duty to rescue him

b. lose because Kelly has no legal duty to rescue him

The basic distinction between a bilateral contract and unilateral contract is that: a. only one promise is involved in a bilateral contract b. only one promise is involved in a unilateral contract c. the Statute of Frauds applies to one and not the other d. one is enforceable, the other is not

b. only one promise is involved in a unilateral contract

An intentional tort involves conduct in which a. the defendant intended to harm the plaintiff b. the defendant intended a certain physical act which ends up injuring someone c. injuries are caused to someone because of the defendant's neglect or oversight d. there is resulting punishment, including prison, for the defendant

b. the defendant intended a certain physical act which ends up injuring someone

Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to promote Trein's products. E-presto Inc., a competitor with Trein, was interesting in having Mia promise its products and knew of her contract with Trein. E-presto offered Mia a three-year, $5 million contract. Mia left Trein and signed with E-presto. Which statement is correct? a. Trein is liable for tortious interference with a contract. b. Mia is liable for tortious interference with a contract. c. E-presto is liable for tortious interference with a contract d. Both Mia and E-presto are liable for tortious interference with a contract

c. E-presto is liable for tortious interference with a contract

Clementine says, "Pam, you're my best friend in the world. I just inherited a million bucks, and I want you to have some of it. Come with me to the bank tomorrow, and I'll give you $10,000." "Sweet!" Pam replies. Later that day, Clementine has a change of heart. She is allowed to do so. Examine the list of the elements of a contract and give the correct reason. a. The agreement was not put into writing. b. The agreement lacks a legal purpose. c. Pam did not give consideration d. Pam does not have the capacity to make a contract

c. Pam did not give consideration

Which of the following acts resulting in injury would be negligence per se? a. Janet driving 40 mph over the posted speed limit b. Ted keeping explosives in his private, locked garage without complying with state law regulating the storage of such materials c. A retailer selling glue containing benzene to a 14 year old boy in violations of state law d. All of the above

d. All of the above

Which of the following is a valid defense to a defamation claim? a. The statement was true. b. the statement was only an opinion c. The person making the statement made it only to the plaintiff, not to any third parties. d. All of the above

d. All of the above

Joe carelessly pushed Bill into a fence negligently erected by Sam around Sam's swimming pool. The fence caved in and Bill nearly drowned. Who is liable? a. Sam, because of his negligent conduct b. Sam, because Joe's conduct would be foreseeable c. Joe, because of his intentional intervening conduct d. Sam and Joe, because they both contributed to the harm

d. Sam and Joe, because they both contributed to the harm

The common law governs contracts for: a. services b. employment c. real estate d. all of the above

d. all of the above

which of the following is not an essential element of an offer? a. communication b. intent c. definiteness d. consideration

d. consideration

Wayne worked in an office. He had no criminal record, had never had a complaint made against him about his work or his conduct, and had been a faithful employee for nearly 20 years. One day, Wayne followed his supervisor to his home and shot him. The estate of the supervisor sued the company, claiming it should have been aware of Wayne's growing frustration with work. The company's best defense will be that

there was no way to foresee that the incident would happen

a ________ contract is defined as one that may be treated as void or valid at the option of the innocent party

voidable

Which of the following statements regarding a negligence case is correct?

A plaintiff must show that the defendant's act was both the factual cause of her injury as well as the foreseeable injury

Aunt Bea promises her 21 year old nephew that she will pay him if he will quit smoking pot. His agreement can be consideration. a. true b. false

a. true

A landowner's highest duty is owed to invitees. a. True b. False

a. True

A sales clerk at Neilson's Department store observed a customer removes some lipstick from a display case and put it in her purse. If necessary to stop the shoplifter from fleeing, Neilson's sales clerk can go so far as to tackle the customer in order to stop her. a. True b. False

a. True

Alice offers to sell her car to Barry for $500, and Barry accepts. Alice's car has a market value of $1,000 but this fact is unknown to Alice. The contract is enforceable. a. True b. False

a. True

Courts employ an objective standard to determine whether a party entered into a contract under duress. a. True b. False

a. True

For purposed of tort law, a licensee is a person invited upon land as a member of the public or for a business purpose. a. True b. False

a. True

Karen offers to buy Joe's business law textbook. Joe is the offeree. a. True b. False

a. True

Kathy offers to sell Miles her house for $95,000, and she tells Miles that the offer will be open for ten days. Miles pays Kathy $100 for keeping it open. By the eighth day Miles has not accepted the offer and Kathy gets angry and tells Miles that the house is no longer for sale. On the morning of the tenth day, Miles informs Kathy that he is accepting her offer of $95,000. Kathy can legally terminate this offer before the tenth day. a. True b. False

a. True

Malpractice is negligence committed by a doctor, lawyer, architect, pastor or other professional in the course of practicing their profession. a. True b. False

a. True

Negligence is usually a form of subjective fault. a. True b. False

a. True

Punitive damages are intended to punish the defendant for conduct that is extreme and outrageous. a. True b. False

a. True

The "reasonable person" standard that has been used throughout this course for torts and contracts in an objective standard. a. True b. False

a. True

There is adequate consideration to support a contract that is not arms-length when the value of what the first party to the contract receives under it is comparable to what he or she give to the second party. a. True b. False

a. True

Which of the following are the two basic elements to consideration? a. bargained-for exchange and legal sufficiency b. legal detriment and legal benefit c. legal sufficiency and legal adequacy d. promise and forbearance

a. bargained-for exchange and legal sufficiency

__________ is defined as the wrongful confinement or detention of a person against his or her will. a. False imprisonment b. outrageous conduct c. malicious prosecution d. fraud

a. false imprisonment

Which of the following statements about torts is correct? a. a tortious act is always a criminal act b. a criminal act is always a tortious act c. a tortious act may also be a criminal act d. all of the above are account

c. a tortious act may also be a criminal act

Most of tort law has its origins in _______ law. a. statutory b. federal c. common d. administrative

c. common

A contract that has been performed by one of the parties to a contract is said to be insofar as that party is concerned. a. executed b. formal c. executory d. informal

c. executory

One who occupies a position of trust, confidence and loyalty toward another is known as a(n) a. intermediary b. actuary c. fiduciary

c. fiduciary

Under MS law, the owner of certain vicious breeds of dogs is absolutely liable to any person who is injured by the dog. This is an example of: a. negligence per se b. res ipsa loquitur c. strict liability d. negligence

c. strict liability

Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to check the prices of dog food at Huge Savings Store. The manager of Huge Savings Store saw Rodney writing down prices and ask him to leave. Rodney, fearful that he would be fired by Deluxe, refused to leave. Rodney committed the tort of: a. larceny b. misrepresentation c. trespass d. conversion

c. trespass

If Will's dad wants to recover for total value of the truck that Taylor took and require Taylor to keep the truck, what would be the most likely cause of action? a. conversion b. nuisance c. trespass to chattel d. detinue

c. trespass to chattel

Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he was intending to put onto Marsha's pickup truck. The exploding tire injured Marsha and frightened the neighborhood dog, which ran down the street and knocked Phillip down, injuring his knee. Phillip sues the mechanic. In applying the Palsgraf v. Long Island Railroad Co. decision to this case, Phillip would: a. win because the mechanic was negligent in over inflating the tire, which led to Phillip's injury b. win based on negligence per se c. lose because the court would apply the doctrine of res ipsa loquitur. d. lose because, although the mechanic's conduct was negligent toward Marsh, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no duty to him.

d. lose because, although the mechanic's conduct was negligent toward Marsh, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no duty to him.

The following are elements of a tort cause of action: a. Duty b. Breach of Duty c. Proximate Cause d. Damages e. All of the above

e. All of the above

Which of the following terminate an offer? a. lapse of time b. destruction of subject matter c. subsequent illegality d. revocation e. all of the above

e. all of the above