Business Law(BUS250) Test #2

Al runs a red light and hits Carol's car. She later sues, claiming the following losses: $10,000—car repairs $10,000—medical expenses $10,000—lost wages (she could not work for two months after the accident) $10,000—pain and suffering If the jury believes all of Carol's evidence and she wins her case, how much will she receive in compensatory damages? a. $30,000.00 b. $20,000.00 c. Only $10,000.00 d. $40,000.00

$40,000.00

Two cars, driven by Fred and Barney, collide on a busy street in Oxford, Mississippi. At trial, the jury determines that the accident was 90 percent Fred's fault and 10 percent Barney's fault. Barney's losses total $100,000. The suit was filed in the Circuit Court of Lafayette County, Mississippi. Barney will recover ________________. a. $50,000.00 b. Nothing c. $10,000.00 d. $90,000.00

$90,000.00

Which Amendment in the Bill of Rights protects people against being tried twice for the same crime? a. 1st b. 4th c. 5th d. 7th

5th

Which amendment provides for the right to a speedy trial? a. 4th b. 5th c. 8th d. 6th

6th

A ___________ is any act or omission prohibited by public law in the interest of protection of the public and made punishable by the government in a judicial proceeding brought by it, whereby proof must be beyond a reasonable doubt. a. Crime b. Tort c. Right d. Duty

Crime

Luke recently sold his successful business to Millie. The contract for the sale contained an unreasonable restriction that did not allow Luke to open a similar business for fifteen years. The courts would, in this instance, a. reform the contract to make it reasonable and enforceable. b. require the parties to draft a new contract. c. enforce the contract as it is written. d. refuse to enforce the unreasonable restriction. e. Either (a) or (d).

Either a or d

Barrett, who is a minor, enters into a contract with Elizabeth, who is an adult. Which of the following is correct? a. Elizabeth may disaffirm the contract at any time. b. Elizabeth may disaffirm the contract after Barrett becomes an adult. c. Barrett may ratify the contract at any time during his minority. d. Elizabeth may not disaffirm the contract.

Elizabeth may not disaffirm the contract.

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000. After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling. a. Elmer can revoke his offer at any time before acceptance, because there is no consideration to keep the offer open. b. Elmer must keep the offer open, because this is an option contract. c. Elmer is prohibited from revoking his offer to Fred under the doctrine of promissory estoppel. d. Elmer has made a firm offer to Fred which cannot be revoked.

Elmer can revoke his offer at any time before acceptance, because there is no consideration to keep the offer open.

David goes out with a group of friends to the Levee. Chris, an off-duty Oxford police officer, recognizes David and strikes up a conversation. Chris wants to know why David isn't drinking a beer, and David reminds Chris that he's under 21. Chris laughs and tells David to go ahead and use his fake ID to buy a beer. After a couple of hours and continued prodding by Chris, David finally gives in and uses the fake ID to buy a beer. Unbeknownst to David, Chris tips off an undercover ABC officer when David walks up to the bar, and David is arrested for MIP and possession of a fake ID. Which of the following best describes David's most likely defense? a. Duress b. Entrapment c. No mens rea d. 4th Amendment violation

Entrapment

If Attorney Paul attempts to force other lawyers to contribute money to Judge Ollie's re-election campaign by using threats against the lawyers, what crime could Paul be charged with? a. Mail Fraud b. Bribery c. Racketeering d. Extortion

Extortion

A contract to commit a tort will be enforced by the courts. a. False b. True

False

A private citizen may bring a criminal action against an individual for breaking a criminal law. True False

False

All written contracts are considered to be formal contracts. True False

False

An agreement for sale of an illegal substance will be enforced by the courts if all other elements of the contract are present. True False

False

Corporations suffer considerable loss as victims of criminal actions, but corporations cannot be perpetrators of criminal actions. True False

False

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

False

If Millie is convicted of a third DUI in Mississippi four years after pleading guilty to her first one, that third DUI conviction is a misdemeanor. True False

False

Nell gives Al $50 in return for Al's promise to defame Sara, because Nell hopes to ruin Sara's chances at a promotion. When Nell finds out that Al did not hold up his end of the agreement, she will be able to get her money back or will be able to force Al to do as he promised through litigation. a. False b. True

False

One of the most usual remedies granted in a criminal case includes compensation for the victim. True False

False

The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire production. After signing the agreement, Abbot can increase its production from one shift to two shifts and Baker will have to buy all of the doubled production. True False

False

The courts will always invalidate a contract if the consideration is inadequate. True False

False

The law applies a subjective standard of intent in determining whether there was the requisite intent to enter into a contract. True False

False

While hunting, Roger 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. True False

False

Jill contracts to purchase Kevin's automobile under the belief that she can sell it at a profit to Linda, but after Jill has bought the car, she finds out that Linda isn't interested in buying it. a. Jill could rescind the agreement if she was mistaken in her estimate of the value of the auto. b. Jill can sue Linda for detrimental reliance. c. Jill cannot void the contract. d. Jill can rescind the agreement.

Jill cannot void the contract.

Jane writes an article for a newspaper reporting that Ann was arrested for stealing a car. The story is entirely false. Ann is not a public figure. Which of the following torts has Jane committed? a. Ordinary slander b. None of these c. Slander per se d. Libel

Libel

Carol 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, Carol has a change of heart. She is allowed to do so. Examine the list of the elements of a contract, and cite the correct reason. a. Pam did not give consideration. b. Pam does not have the capacity to make a contract. c. The agreement was not put into writing. d. The agreement lacks a legal purpose.

Pam did not give consideration.

Which one of the following is not true of a suit brought under criminal law? a. Proof of guilt must be by "preponderance of the evidence." b. It is brought on the ground of public policy. c. Conviction may result in imprisonment. d. It must be brought by the government.

Proof of guilt must be by "preponderance of the evidence."

R&R, Inc. entered into a contract with Scott, an agent, under the terms of which Scott would receive $20,000 if he stole trade secrets from the leading competitor of R&R. Scott performed his end of the agreement by delivering the trade secrets. R&R now refuses to pay Scott for his services. a. Scott will be unable to recover, because this is an illegal contract. b. Scott may recover based upon the express contract of the parties. c. Scott may recover based upon a quasi-contractual theory in order to prevent the unjust enrichment of R&R. d. Scott will be able to recover based upon promissory estoppel, because he has detrimentally relied upon the promises made by R&R.

Scott will be unable to recover, because this is an illegal contract.

Sarah is working hard on the mayoral campaign of Timothy. She thinks that just a few more votes could win the election, so she promises to pay her friend Violet $50 to register and vote. Violet does so, but Timothy loses the election, and Sarah now refuses to pay. a. This agreement violates public policy and is an illegal bargain. b. This agreement is valid and enforceable. c. This agreement violates the local blue laws. d. This is a contract of adhesion.

This agreement is valid and enforceable

A mental illness or defect of one of the parties to a contract does not automatically make a contract void. True False

True

A sports fan, injured by a hockey puck that flew into the stands during an NHL game, would be subject to the defense of assumption of the risk in a suit to recover for her injuries. True False

True

An arm's-length transaction is not one in which the parties owe each other special duties. True False

True

An implied contract is as enforceable as is an express contract. True False

True

Barbara, a wealthy widow, promises the Pastor John that she will donate $20,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $80,000 mortgage. Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead. The doctrine of promissory estoppel would apply here to require Barbara to donate the $20,000. a. True b. False

True

Contracts binding without consideration include promises to pay debts barred by a statute of limitations and debts discharged in bankruptcy. True False

True

Death or insanity of either the offeror or the offeree ordinarily terminates the offer. True False

True

Dr. Don sells his sandwich business to a national chain, and the chain will pay the sales prices over a five year period. An agreement in connection with that sale that prohibits Dr. Don from engaging in the same or similar business for a period of twenty-five years would be unreasonable. True False

True

If an agreement is not voluntary and knowing, it will be either void or voidable. True False

True

In a bilateral contract, if one party is not bound, neither party is bound. True False

True

In order for a plaintiff to win a case involving intentional infliction of emotional distress, she must prove the defendant acted in an extreme and outrageous manner. True False

True

It is not necessary for most contracts to be notarized and witnessed in order to be legally binding. True False

True

Laura has had a problem with vandalism at her business. She rigs up a spring gun at the front door of her store, so that any after-hours intruder will be shot upon entry. Even though this has eliminated the vandalism problem, Laura may not legally use this deadly force to protect her business. True False

True

On June 1, the Phi Delts made an offer of $300 to a beer distributor to have ten kegs delivered to Lamar Park in the City of Oxford for a July 4th fund-raising event. On June 30, the city passed a new law prohibiting consumption of alcohol in the city park. The Phi Delts' offer is terminated on June 30. True False

True

Opinion is generally a valid defense in a defamation lawsuit because it is not meant to be a factual statement. True False

True

Pointing an unloaded gun at someone who believes it is loaded, and threatening to shoot, constitutes an assault. True False

True

Possession of alcohol by a minor is a mala prohibita type of crime. True False

True

The 5th Amendment protects persons against self-incrimination, double jeopardy, and being charged with a capital offense except by grand jury indictment. True False

True

The element of "bargained for exchange" is absent where a promise is given for an act that has already been done. True False

True

Today most crimes are covered by statutory law rather than by the common law, although many of the crimes in statutory form had their origins in the common law. True False

True

Lee has been declared incompetent by the court and is under the care of his sister. Without his sister knowing it, Lee rents the 30,000-seat civic center for his birthday party. Lee's contract to rent the civic center is best described as: a. Unenforceable b. Voidable c. Void d. Valid

Void

Cole, who recently turned 21, has an extremely painful type of bone cancer. Dr. Feelgood legally prescribed medicinal marijuana grown at Ole Miss to help relieve Cole's pain. Aunt Bea doesn't like this and promises Cole that she will pay him $2500 if he will agree to quit smoking what she calls "that demon weed." Can Cole's agreement to quit smoking the medicinal marijuana be consideration? a. No b. Yes

Yes

Which of the following are necessary for Annabel and Macy to form a valid contract? a. legal capacity b. consideration c. all of these choices d. legality of object e. mutual assent

all of these choices

A voidable contract is a contract in which: a. only a promise or agreement has been made, with no legal effect. b. because of the manner in which the contract was formed, the law permits one or more of the parties to void it. c. there is no remedy at law. d. neither party can enforce the provisions.

because of the manner in which the contract was formed, the law permits one or more of the parties to void it.

A contract in which both parties exchange promises is a(n): a. bilateral contract b. implied contract c. unilateral contract d. executory contract

bilateral contract

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as: a. legality of purpose b. consideration c. legal capacity d. mutual assent

consideration

The improper taking of another's property by one in lawful possession of it, such as a bank teller receiving bank customers' deposits, is: a. burglary b. robbery c. larceny d. embezzlement

embezzlement

On the first day of the baseball season, Dean orders a new Cardinals hat from Amazon. At the moment he submits his order, Dean and Amazon have an _____________ contract. Two days later, Amazon delivers the hat to Dean's house. At this point, Dean and Amazon have an _________ contract. a. executory; executed b. bilateral; unilateral c. express; implied d. formal; informal

executory; executed

A(n) ___________ contract is one in which the parties have manifested their agreement by oral or written language, or both. a. express b. formal c. implied d. executory

express

The correct standard of proof that a defendant must meet in a criminal prosecution is: a. preponderance of the evidence b. clear and convincing evidence c. beyond a reasonable doubt d. none of the above

none of the above

Casey, a prominent local attorney, was the subject of an article in the Daily Mississippian concerning a trial in which she was involved as counsel. In that article, Casey was reported to have been disbarred in another state ten years before. It is not true of Cary, but of her cousin, Frances. Casey will win a suit for defamation against the DM: a. only if she can show harm to her character resulted from the statement. b. simply by proving the falsity of the statement. c. only if Frances was not disbarred. d. only if she can prove that the paper acted with actual malice.

only if she can prove that the paper acted with actual malice

Any property other than an interest in real property is: a. tangible property b. intangible property c. goods d. personal property

personal property

In order to form a contract, the parties must: a. manifest their agreement objectively. b. create a formal document called a contract. c. indicate solely through written word their intent. d. manifest their agreement subjectively.

manifest their agreement objectively.

Which of the following would be considered a valid and legally enforceable agreement? a. An agreement under which Arthur will pay Barbara $1,500.00 to disparage the product of Arthur's competitor. b. An agreement by the seller of a service station not to enter the service station business in Mississippi for a period of 30 years after the sale of his business. c. An agreement by a car salesman not to sell automobiles or automobile parts in Lafayette County for a period of one year after terminating his employment. d. An agreement to pay a legislator to vote for a particular bill.

An agreement by a car salesman not to sell automobiles or automobile parts in Lafayette County for a period of one year after terminating his employment.

Sam sneaks up on Tom, hits him with a baseball bat, and knocks him unconscious. Tom never saw Sam coming. He wakes up with a horrible headache. Which of the following torts has Sam committed? a. Assault b. Assault & Battery c. Battery d. None of these

Battery

An employer directs his chief financial officer (CFO) to falsify the company's long term debt amounts and the annual revenues. The CFO does so. a. Both the CFO and the employer are liable under these facts. b. Neither the CFO nor the employer is liable under these facts. c. Only the employer is liable under these facts. d. Only the CFO is liable under these facts.

Both the CFO and the employer are liable under these facts.

______________ is the crime of entering into a building with the intent to commit a felony. a. Burglary b. Robbery c. Arson d. Larceny

Burglary

______________ is the unlawful taking of the life of another with malice aforethought. a. Manslaughter b. Aggravated assault c. Murder

Murder

Aunt Lee, a teetotaler, promises her 20-year old nephew, Charlie, that she will pay him $200 if he will agree to quit sneaking liquor into Ole Miss football games. His post-game drunkenness in the Grove disturbs Aunt Lee and she wants to save Charlie from venturing down that road to eternal damnation. If Charlie accepts Aunt Lee's offer, is this a contract supported by consideration? a. Yes b. No

No

Phil is working as an undercover drug agent. He enrolls in classes at Ole Miss where he meets several students in his Business Law class and invites them to come to his house for a party. No mention is made of any drugs, but he does say he will have a plenty of Milwaukee's Best beer. Phil knows that college students will drink just about anything. Shortly after his guests arrive, Phil gets out some marijuana and encourages the group to have some. All of them refuse, except Steve, who says he's never tried it before. When Steve lights up, Phil arrests him for possession of a controlled substance. a. Steve can raise the defense of entrapment, because Phil has enticed him to commit a crime he would not have done otherwise. b. Steve is clearly guilty as charged. c. Steve can raise the Fourth Amendment to exclude the marijuana as evidence that has been illegally seized. d. Steve can raise the defense of duress.

Steve can raise the defense of entrapment, because Phil has enticed him to commit a crime he would not have done otherwise.

Walt helped Sam study all night for his Business Law exam. After Sam got an A on the exam, he told Walt, "I will give you $25 for helping me get a good grade." Walt said, "Thanks, I'll take it." a. There is a contract with sufficient consideration. b. There is no contract because there is no valid consideration. c. There is no contract because $10 is reasonably inadequate consideration. d. There is no contract because there is no mutual assent.

There is no contract because there is no valid consideration

John Michael picks up a six-pack of Blue Moon, a pound tub of chicken salad and a box of soda crackers at James Food Center. While waiting on Will and before getting to the check-out counter to pay Zerk, he opens the chicken salad and begins eating it with the crackers. John Michael then washes down the chicken salad and crackers with a couple of beers. Even though the checkout line is backed up and Will is now in the car honking the horn because Will's afraid that Fat Matt won't be able to get them in at the Library. When Zerk notices John Michael in line, Zerk writes out a charge ticket with the beer, crackers and chicken salad listed, and John Michael signs the ticket for Daddy to pay, and then heads out the front door and gets in the car. Under these circumstances John Michael has made a(n): a. quasi-contract b. express contract c. formal contract d. implied contract

express contract

Which of the following is not generally required in order to have a valid contract? a. parties who have contractual capacity b. legal purpose c. fairness of the bargain d. mutual assent

fairness of the bargain

Copy of If Tammie has been found guilty of extortion and was sentenced to two years in the penitentiary, the crime she committed was a ____________. a. misdemeanor b. capital crime c. felony

felony

If Tammie has been found guilty of extortion and was sentenced to two years in the penitentiary, the crime she committed was a ____________. a. felony b. misdemeanor c. capital crime

felony

A(n) ___________ contract is a promise, or set of promises, the breach of which the law provides a remedy. a. unenforceable b. void c. valid d. voidable

valid