Combo BLAW Set 2.0

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Elements of an offer

1. serious intent by offeror to be bound to agreement 2. reasonably definite terms 3. Communication to the offeree

undisclosed principle

3rd party is not aware that the agent is working for the principle

mutual mistake of fact is not a contract if

both parties are mistaken about a basic assumption of fact that materially affects the agreed exchange AND not a risk that either party bears (sold "as is")

deposition

both sides question a relevant witness under oath but out of court

burglary

breaking and entering into a building with the intent to commit felony inside

discovery

bulk of pretrial litigation, formal process where parties gather info about each other before trial

forebearance

can be consideration, al pacino scene?

nonfundamental right

can be deprived as long as law has a rational relationship to a legitimate government interest

Right of removal

can remove a concurrent case to federal court instead of potentially biased state court

goals of tort law

compensation, deterrence (stop the action from happening again)

administrative law

FDA, EPA, etc. administrative agencieis can make rules on certain field

direct examination and cross examination

a lot like deposition, but in court

damages to negligence

compensatory, punitive (only if gross negligence- anything greater than standard negligence)

Negotiation

court requires that made a good faith effort to do so

full faith and credit clause

courts in all states must uphold contracts and public acts of other states

A party transferring her or his duties under a contract to a third party is referred to as the _____. assignor creditor delegator beneficiary

delegator A party transferring her or his duties under the contract is the delegator, and the one receiving the transfer is the delegatee.

elements of a gift

delivery of property --> actual delivery --> constructive delivery- delivery of item tat gives access to gift/represents it donative intent to make an immediate gift acceptance of property

material breach

flipside of failure of substantial performance

expressed creation of agency

formed by making written/oral agreement

exceptions to respondent superior

frolic- substantial departure from the course of the employers business--> principle/employer not liable for employee's actions

exclusionary rule (4th)

fruit of the poisionous tree (illegal search or seizure) is excluded from court of law. unless: good faith independent source inevitable discovery attentuated connection

intentional interference with contract

has to have a valid contract, defendant has to know the contract exists, defendant has to intentionally try to cause a party to breach the contract, injured as a result.

fraudulent misrepresentation

has to have knowing or recklessly misrepresenting facts, defendant intended plantiff to rely on those facts, plantiff reasonably relies on those facts, causation

In a liquidated debt, _____.

once the debtor makes a different payment, the debt is satisfied and the creditor may not collect anything else

equitable remedies

recission- terminate contract reformation-rewriting the contract specific performance- order requiring that breaking party fulfill the terms of the agreement injuncti0n- order forcing person to do something of prohibiting a person from doing something

A bond used as bail in a criminal case is an example of a _____.

recognizance

why require a written contract?

reliability and specificity

recission

rescinding (or voiding) a contract

termination of offer

revocation by offeror rejection/counteroffer death/incapacity destruction/illegality lapse of time/failure of condition

design defect

risk of products design > utility of product

innocent misrepresentation

false statement about material fact that one person made and honestly believe it to be true

Which of the following statements is true of incidental beneficiaries? They benefit from the direct reception of contractual performance. They do not have the rights to enforce other people's contracts. They are the intended beneficiaries of a contract. They can only sue the promisor for a breach of contract, and not the promisee.

They do not have the rights to enforce other people's contracts. Incidental beneficiaries maintain no rights to enforce other people's contract. The incidental beneficiary is in the worst legal position because he cannot sue anyone.

make it work

if multiple interpretations, choose the one that makes lawful and reasonable

Brian offers to sell Rachel his computer for $200. Rachel says that she will look at the computer in the morning, and if she likes it she will buy it for $200. At this point, Rachel has not committed to doing anything. This is an example of a(n): promissory estoppel. illusory promise. recognizance. option contract.

illusory promise. This is an example of an illusory promise, since Rachel has not committed to doing anything. The law considers this an illusory promise—it is not a promise at all.

A(n) _____ is best described as a contract that arises not from words but from the conduct of the parties. implied contract void contract pseudo contract express contract

implied contract Implied contracts arise not from words but from the conduct of the parties. In contrast, the terms of express contracts are all clearly set forth in either written or spoken words.

When a counteroffer is made by an offeree, the original offer: is deemed accepted. is terminated. becomes a quasi-contract. becomes part of the counteroffer.

is terminated A counteroffer terminates the original offer. A counteroffer is defined by the Restatement as "an offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer."

When there is no dispute over the amount of debt or existence of debt, it is referred to as a _____. liquidated debt venture debt good debt subordinated debt

liquidated debt In a liquidated debt, there is no dispute that money is owed or how much. Partial payment of a debt may or may not be valid consideration, depending on whether the debt is liquidated or unliquidated.

unenforceable contract

may have all elements, but lacks specific legality (in writing, statue of frauds, etc)

groups that fail to meet legal capacity

minors (under 18) mentally incompetent intoxicated people (cannot reasonably understand) result, contract is VOIDABLE

In a unilateral contract, if one party's consideration is a promise, the: other party's consideration will be an illusory promise. other party's consideration will be an act. other party will be legally obligated to make a counteroffer. other party will not be obligated to pay any consideration.

other party's consideration will be an act. In a unilateral contract (a promise for an act), one party's consideration is the promise and the other party's consideration is the act.

prexisting duty

performing duty under law ex- policeman, man is wanted, cant collect reward for doing his job exceptions- unforeseen difficulties, additional work (going beyond preexisting terms)

intent by offeror to be bound

preliminary negotiations doesnt equal offer advertisements arent offers, yet invitations to make an offer Auctions- depends

promisory estoppel (exceptions)

promisor makes a promise promisor knows or should know that promise will reasonably rely promisee does reasonably rely must enforce promise to avoid injustice

In which of the following situations do the parties to a contract lack contractual capacity? When the parties to the contract are from different countries When the parties to the contract are from different race When one of the parties to the contract is intoxicated When one of the parties to the contract is physically impaired

When one of the parties to the contract is intoxicated Contractual capacity is the legal ability to enter into a binding agreement. Most adults over the age of majority have capacity; those under the age of majority, people suffering from mental illness, and intoxicated persons do not.

Ronald contracts with Saba to have her deliver some machinery to his factory. Saba then transfers her duty to Liam, a third party, who delivers the machinery to Ronald. In this scenario, the transfer of Saba's duties to Liam is an example of a(n): third-party beneficiary contract. adhesion contract. assignment. delegation.

delegation In this scenario, the transfer of Saba's duties to Liam is an example of a delegation. A delegation occurs when a party to a contract—a delegator—transfers her duty to perform to a third party—a delegatee—who is not part of the original contract. Delegations transfer duties.

revocation by offeror

effective when offeree receives it Exceptions- --> option contracts (offeree pays offeror to keep contract open) -->detrimental reliance by offeree- promised to keep offer open, relied on that, takes actions that are detrimental

Kevin is offered a job by a reputed company in a different city. To take up the new job, Kevin quits his previous job and moves to the new city along with his family. When he shows up at work, he is told that there is no job. Kevin can sue the employer under the theory of _____. illusory promise promissory estoppel recognizance preexisting duty

promissory estoppel Kevin can sue the employer under the theory of promissory estoppel. Promissory estoppel occurs when three conditions are met: one party makes a promise knowing the other party will rely on it, the other party does rely on the promise, and the only way to avoid injustice is to enforce the promise.

If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise: becomes an option contract. to do the extra work is an illusory promise. to do the extra work is valid consideration. becomes a part of the party's preexisting duty.

to do the extra work is valid consideration. If a party to a contract agrees to do additional work for an extra amount of money (more than the contract requires), the promise to do it is valid consideration.

legal object

what we are contracting cant be against public policy

rule of reason

apply this when two or more competitors agree on something other than output or price

illusory promise

"if" i decide to buy, absolute disgression, not consideration --> good faith condition- i will buy your house as long as my loan is accepted.

Quasi-contract

1. plantiff has conferred a benefit on defendant 2. plantiff reasonably expected to be paid AND 3. defendant would be unjustly enriched if plantiff is not compensated-> reasonable value of services rendered

Which of the following theories of liability for defective products stems from contract theory? Negligence Strict product liability Intentional tort Breach of warranty

Breach of warranty A theory of liability for defective products is breach of warranty. Unlike negligence and strict-liability theories, breach of warranty stems from contract theory rather than tort theory. This theory of liability is established through the Uniform Commercial Code (UCC).

_____ are an exception to the common law rule requiring consideration.

Contracts under seal

Which of the following conditions must be present for an offer to have a legal effect?

Definite and certain terms

Which of the following refers to agreements in which parties pay consideration for the chance, or opportunity, to obtain an amount of money or property?

Gambling

equal dignity rule

IF X enters into a contract with Y, where X will pay Y to enter into a contract with Z on X's behalf AND The contract that Y enters into with Z on X's behalf is within the statue of frauds THEN both contracts must be in writing

Which of the following statements is true of mistakes in contract law?

Mistakes in contract law do not result from untrue statements.

Which of the following can be in the form of an oral contract to be enforceable?

Mutual promises to marry

_____ is best described as a failure to provide pertinent information about a projected contract.

Nondisclosure

Mens Rea elements

Purpose- conscious desire to bring about a particular result Knowledge- must know the act is wrongful or believes it is without confirmation Recklessness- consciously ignores substantial risk negligence- defendant fails to act as reasonably prudent person strict liability- no mental state required, just the act. Speeding

_____ are best described as contractual obligations imposed by the courts in order to prevent one party from being unjustly enriched at the expense of another.

Quasi-contracts

Which of the following can be a bona fide occupational qualification defense (BFOQ)? Excluding white men from applying for jobs in quarries Requiring a candidate to be female for modeling female clothing Hiring only U.S. nationals since customers prefer to deal only with them Avoiding hiring females to avoid the expense of creating different restrooms for men as well as women

Requiring a candidate to be female for modeling female clothing Being a female may be a BFOQ for modeling female clothing. An employer would not be required or expected to hire a male for such a job.

Which of the following statements is true of the First Amendment to the U.S. Constitution? The First Amendment does not apply to corporations. The First Amendment aids the government in supporting the establishment of religion. The First Amendment right to free speech is not absolute. The First Amendment is less protective of hate speech than the United Nations declaration.

The First Amendment right to free speech is not absolute. Like other rights, First Amendment rights are not absolute. The First Amendment does not protect false statements about another that are injurious to that person's reputation. Due to the difficulty of determining the boundaries of individual rights, courts hear a large number of First Amendment cases.

Which of the following indicates that the terms of an acceptance must reflect the terms of an offer?

The mirror-image rule

Which of the following statements is true of Sabbath laws?

These laws do not apply to contracts for obtaining necessities and anything related to health or survival.

supremacy clause

article 6 of the constitution- constitution, laws, and treaties of the US are the supreme law of the land

Which of the following is considered an absolute defense for a person accused of defamation? Involuntary intoxication Truth Conditional privilege Slander

Truth A person accused of defamation can raise two defenses: truth and privilege. Truth is frequently considered an absolute defense. That is, the defendant cannot be held liable for defamation, regardless of whether damages result, if the statement made was true.

contracts for the sales of goods > 500

UCC based --> BUT, writing only needs to state the quantity (other terms can be oral --> BUT, writing can only be enforced against a party that signed the agreement

Under the statute of frauds, which of the following statements is true of the one-year rule for contracts?

Under the statute, the one-year period begins the day after the contract is created, not when it is scheduled to begin.

_____ is best described as those special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade the other and interfere with that person's ability to make his or her own decision.

Undue influence

_____ occurs when a party gives a loan at an interest rate exceeding the legal maximum.

Usury

When is a contract deemed void?

When the contract is entered into by an intoxicated person who has been adjudicated a habitual drunkard

What is guilty?

YES- tying arrangements (selling one product but have to but another too, Microsoft) YES-predatory pricing (monopoly profits in one area to finance a place somewhere else to intentionally knock everyone else out NO- price discrimination, such as charging senior discount

Before a contract can be voided for a mutual mistake, it must be proved that:

a basic assumption about the subject matter of the contract is present.

Personal Jurisdiction (in Personam Jurisdiction)

a courts power to exercise authority over and individual or property. Generally, a court can only exercize this over people in a certain geographic region

common law

aka Case law, collection of legal interpretations made by judges

counteroffer

a rejection + a new offer

contract

a set of legally enforceable promises

A property that the original owner has discarded is _____ property. secondary wrecked conditional abandoned

abandoned Property that the original owner has discarded is abandoned property.

unauthorized acts

acts that go beyond agents authority --> principle generally not liable/bound by agents actions

A(n) _____ is best described as an agreement presented on a take-it-or-leave-it basis or as the only chance the presented party will have to enter into it.

adhesion contract

agency by implied authority

agency formed by implication, through conduct of parties

offer+acceptance

agreement

The system of checks and balances: allows courts to explicitly review legislative and executive actions to determine whether they are constitutional. allows the state governments to keep a close check on the actions of federal government so that it does not obtain any undue power. allocates specific powers to each branch of the government to keep the other branches from dominating the government. makes federal laws or treaties void when they are in direct conflict with the state or local law.

allocates specific powers to each branch of the government to keep the other branches from dominating the government. The Constitution divides power among the legislative, executive, and judicial branches of government. The system of checks and balances allocates specific powers to each branch to keep the other branches from dominating government.

judicial review

allows supreme court to review constitutionality and actions of executive branch, legislative, and lower courts

pregnancy discimination act of 1987

amended title VII act of civil rights act by expanding definition of sex discrimination to include discrimination based on pregnancy

state action

amendments/constitution protect from government action. must be government worker (state actor)

Bob agrees to sell his farm to Joseph for $80,000. He then transfers his right to receive Joseph's payment to Kiara. In this scenario, the transfer of Bob's rights to Kiara is an example of a(n) _____. collateral promise adhesion contract delegation assignment

assignment In this scenario, the transfer of Bob's rights to Kiara is an example of an assignment. Assignment occurs when a party to a contract—an assignor transfers her rights to receive something under the contract to a third party—an assignee. When an assignor transfers her rights to an assignee, the assignor legally gives up all rights she had to collect on the contract.

consideration

baragained for exchange

procedural due process

bare minimum of notice and opportunity to be heard

disparate treatment

candidate/employee discriminated against based on membership in a protected class (intentional)

What is in statute? (what needs to be written?)

cannot complete contract within a year promises (ex marriage) contract to pay debt of another contract related to land contracts for sale of goods > 500 equal dignity rule

miranda warnings- 5th

challenge to excluse confession if suspect is not given miranda warnings when: in custody or being interrogated exceptions: public safety, other evidence sufficient, equivocate (have to give a hard approval)

Expressed contract

clearly set forth in writing or in words contract

exceptions for state commerce

congressional approved- congress says you cant do it market participant- acts as buyer or seller (lumberyard, can sell to ohio people cheaper than KY) subsidides- taxes, government, etc

Valid contract

contains all the legal elements of a contract

Plain meaning

contract has to mean what it says

why are branches important

create balance of power, no unlimited power legislature can overturn presidential veto with 2/3 vote no "line item" veto treaties need 2/3 senate majority

The edges of all molded plastic chairs manufactured by Luxura Furniture Inc. are extremely sharp causing deep cuts on customers' hands and legs. This is an example of a _____. manufacturing defect design defect process defect storing defect

design defect This is an example of a design defect. When all products of a particular design are defective and dangerous, these products have a design defect.

employers independent contractor relationship

employer hires persons (other than employee) to conduct some sort of task, employer has no control over details of conduct

age discrimination in employment act of 1967 ADEA

employers cannot refuse to hire, discharge or discriminate in terms and conditions of employment on basis of employee applicant being age 40 or older

unfair competition

entering an industry with the sole purpose of driving another out of business

When a principal falsely leads a third party to believe that another individual serves as his or her agent, the principal has created agency by: ratification. agreement. implied authority. estoppels.

estoppels When a principal falsely leads a third party to believe another individual serves as his or her agent, the principal has created agency by estoppel. According to the principal's conduct, the agent has apparent authority to act; thus, the principal is estopped, or prevented, from denying that the individual is an agent.

breach

failure to act as a resonably prudent person.

elements of fraudulent misrepresentation

false assertion of material fact intent to deceive justifiable reliance on false assertion

specific>

general

unilateral mistake of fact

generally not void UNLESS -->one party made the mistake, and the other knew or should have known that the other party was mistaken

insanity (aff def)

have to prove defendant suffers from mental disease or defect (professionally done) --> Mnaghten- show that defendant does not know what he or she is doing or does not understand the actions are wrong --> MPC (Model Penile Code)- lacks substantial capacity to appreicate the criminality of the conduct or unable to conform his conduct to the functionality of the law. --> irresistable impulse- a irresitable impulse drove to commit the crime

To justify recovery based on a quasi-contract, a plaintiff must prove that:

he or she conferred a benefit on the defendant.

per se illegal

horiztional agreements YES (fix prices, reduce output, find it illegal) price fixing (prices or interest rates) YES Cooperation necessary to deliver product NO such as the NCAA

Example of equal dignity rule, is writing required?

i agree to pay you $1000 to buy me a house, YES i agree to pay you 500 to buy me 100 in goods NO

A(n) _____ is best described as a contract that arises not from words but from the conduct of the parties.

implied contract

A(n) _____ results from a false statement about a fact material to an agreement that the person making it believed to be true. fraudulent misrepresentation negligent misrepresentation innocent misrepresentation intentional misrepresentation

innocent misrepresentation An innocent misrepresentation results from a false statement about a fact material to an agreement that the person making it believed to be true. The person had no knowledge of the claim's falsity. He or she lacked scienter.

parol evidence rule

integrated contracts (intended to be complete and final representation--> merger clause) Partially integrated not intended to be complete and final

arson

intentional burning of anothers building

jury instructions

judge lets them know what the unbiased law they have to do is

verdict

judge or jury makes a decision

motion to dismiss

judge says everything is true but even with this you have no lawsuit

two main categories of defenses

lack of genuine asset failure to satisfy the "statue of frauds"

real property

land and whats permanently attached

Marsha worked as a personal secretary to the manager of a firm. She was caught taking away stationery from the office for personal use. It was revealed during trial that she had been doing this ever since she joined work. This is a case of _____. arson aggravated robbery larceny burglary

larceny This is a case of larceny. In the business context larceny occurs, for example, when an employee takes office supplies, such as paper or blank CDs, for personal use. States generally make a distinction between grand larceny and petty larceny. Grand larceny involves items of greater value; thus, it is a felony and carries more severe penalties than does petty larceny.

elements of acceptance

manifest intent to be bound (objective, bilateral/unilateral, silence doesnt equal acceptance) ->exceptions to silence: if parties agree that silence is acceptance, course of dealing (wholesaler dealing to retailer, typically 5 days to report defects, accepts benefits without rejecting) Also elements of acceptance: agreement to definite and certain terms communication to offeror

offeror is

master of the offer, can specify specific modes of aceeptance

The doctrine of _____ applies to cases in which the defendant has violated a statute enacted to prevent a certain type of harm from befalling a specific group to which the plaintiff belongs. negligence per se res ipsa loquitur last-clear-chance pure comparative negligence

negligence per se Negligence per se (literally, "negligence in or of itself") is another doctrine that helps plaintiffs succeed in negligence cases. Negligence per se applies to cases in which the defendant has violated a statute enacted to prevent a certain type of harm from befalling a specific group to which the plaintiff belongs.

An agent who makes an unauthorized agreement has failed to meet the duty of _____. cooperation performance obedience accounting

obedience Under the duty of obedience, the agent must follow the lawful instruction and direction of the principal. An agent who makes an unauthorized agreement has failed to meet the duty of obedience. However, if the principal gives unlawful or unethical instructions, the agent is not required to behave in accordance with them.

objective or subjective?

objective- reasonable person would believe that the offer was made or accepted under the circumstances instead of subjective- what did this SPECIFIC person think?

offer

offeror makes offer, offeree accepts

rejection

once an offer is rejected, it can no longer be accepted unless the offeror agrees

agent

one authorized to act for or on behalf of a principal

A key feature of a voidable contract is that:

one or both parties have the ability to either withdraw from or enforce the contract.

voidable

one or both parties is able to withdraw

delegation

original party to a contract (delegator) transfers duty to perform under the contract to a third party (delegatee)

In a unilateral contract, if one party's consideration is a promise, the:

other party's consideration will be an act.

promisor

person who makes a promise

bailments

special relationship in which one party (bailor) transfers posession of personal piece of property to another party (bailee) to be used

Title VII of the Civil Rights Act of 1964: is divided into seven sections called titles. applies to employers who have less than 15 employees for at least 20 consecutive weeks. does not apply to Indian tribes and employment agencies. prohibits employers from firing employees on the basis of racial discrimination.

prohibits employers from firing employees on the basis of racial discrimination. The Civil Rights Act (CRA) of 1964 is divided into sections, called titles. Title VII deals with discrimination in employment. It prohibits employers from hiring, firing, or otherwise discriminating in terms and conditions of employment and prohibits segregating employees in a manner that would affect their employment opportunities on the basis of their race, color, religion, sex, or national origin. Title VII of the Civil Rights Act applies to employers who have 15 or more employees for 20 consecutive weeks within one year and who are engaged in a business that affects commerce.

federal trade commission act

prohibits unfair and deceptive methods of competition --> any anti competitive behavior not prohibited by sherman/clayton acts probably covered by FTC

bilateral contract

promise exchange. Ex: i promise to charge your phone if you promise to lick my ********

personal property

property not attached to land

auction without reserve

seller is making offers for what they want it to be made at

constitutional law

sets the general limits and powers of both federal and state (amendments)

publication

telling atleast one person

1st amendment

speech and assembly (cant restrict them)

commerical speech

speech that relays information of sales of goods or services. government can infirnge on anything misleading or unlawful. can regulate if advances substantial government interest or specifically narrowly tailored (very specific, doesnt have to be misleading or unlawful)

Tracy offers Liam a job as a store manager at a liquor store, which she plans to open in a small property owned by her husband. The property is located near a school. Before Liam accepts the offer, the state passes a rule that liquor stores cannot be located within a five-mile radius of a school. In this scenario, the employment offer terminates due to: expiration of the option contract. subsequent illegality of the subject matter. lack of contractual capacity of the offeree. lack of genuine assent.

subsequent illegality of the subject matter. In this scenario, the offer of employment terminates due to subsequent illegality of the subject matter. If the subject matter of the offer is destroyed or becomes illegal, the offer immediately terminates.

exceptions to Parol evidence (when can you use PE to clarify)

subsequent modifications conditions precedent and subsequent clarify ambiguity obvious typos usage of trade (UCC)

model laws/restatements of law

summaries of current laws or proposals for uniform laws, not actual law but template for actual laws uniform commercial code is most important

Assault

the defendant must place the plantiff in reasonable apprehension of an immediate battery (words usually arent enough)

A debt is unliquidated when:

the parties dispute over the existence or amount of the debt.

If a principal is partially disclosed: the third party would be aware of the principal's identity. the third party would be aware of the principal's existence but not his or her identity. the third party would not know that an agent is acting on behalf of the principal. only the agent would be liable in accordance with the contract.

the third party would be aware of the principal's existence but not his or her identity. If the third party is aware of the principal's existence but not his or her identity, we classify the principal as a partially disclosed principal or an unidentified principal. If a principal is partially disclosed, the agent and the principal are both considered parties to the contract and each may be liable separately from the other.

larceny

the trespassory taking and carrying away of the personal property of another with the intent to permanently deprive

Section 16 of the Restatement of Contracts provides that contracts of an intoxicated person are _____ if the other party had reason to know that intoxication rendered the person unable to understand the nature and consequences of the transaction.

voidable

jury selection

voire dire challenges for cause- remove juror for specific legal reason peremptory challengers- remove potential juror for unstated reason

fiduciary relationship

trust where agent acts on behalf of principal

defenses of defamation

truth, consent, privileges

effective parties intent

try to give effect to what parties try to do

third party beneficiary contracts

two parties enter into a contract with the purpose of benefitting a third party, called the intended beneficiary Ex: Lazares (promisee) promises to pay Hilton (promisor) if Hilton teaches Teddy (3rd party beneficiary) speaking skills

An agreement can be rescinded on grounds of _____, when one of the parties to the contract has so much more bargaining power than the other that he or she dictates the terms of the agreement.

unconscionability

private nuisance

unreasonably interfere with plantiffs property use and enjoyment of it.

misrepresentation

untruthful assertion by one of the parties about material fact

A(n) _____ is best described as a guarantee or a binding promise regarding a product. warranty promissory note indemnity bond affidavit

warranty A warranty is a guarantee or a binding promise regarding a product. Warranties may be either express (clearly stated by the seller or manufacturer) or implied (automatically arising out of a transaction). Either type may give rise to liability.

when can third party sue?

when rights have vested 1) when 3rd party accepts the rights (usually by notifying the promisor and promisee OR 2) when the 3rd party changes their position in reliance on contractual rights.

venue

where the defendant resides OR where the contested incident took place

exceptions to the statute of frauds

-->admission- statement made in court under oath or some stage of legal proceeding where an oral word admits that a contract exists -->Partial performance -->Promissory estoppel

Elements of all crime

Actus Reus (guilty act)- comission or omission (physical act/voluntary movement or failure to act) Mens Rea( Guilty Mind) causation concurrence

If the Food Safety and Inspection Service (FSIS), a government agency, requires the labeling on egg cartons to include the product's expiry date, the law that would cover this rule would be: common law. administrative law. statutory law. constitutional law.

Administrative Law The law that would cover this rule would be administrative law. Administrative law is the collection of rules and decisions made by government agencies.

Which of the following statements is true of the rights of an assignee to a contract?

An assignee cannot be assigned the rights to a contract when the contract is personal in nature.

Based on the subject matter, which of the following law cases will fall under exclusive federal jurisdiction? Cases related to bankruptcy Diversity-of-citizenship cases Federal-question cases Cases related to product liability and negligence

Cases related to bankruptcy Based on the subject matter, cases related to bankruptcy will fall under exclusive federal jurisdiction The federal court system has exclusive jurisdiction over very few cases: admiralty cases, bankruptcy cases, federal criminal prosecutions, lawsuits in which one state sues another state, claims against the United States, and cases involving federal copyrights, patents, or trademarks.

Which of the following contracts falls within the statute of frauds?

Contracts related to an interest in land

Which of the following contracts falls within the statute of frauds? Contracts for lifetime employment Contracts related to an interest in land Contracts for the sale of goods totaling not more than $100 Contracts whose terms could be performed within six months

Contracts related to an interest in land Only specific types of contracts are within the scope of the statute of frauds and thus required to be evidenced by writing. They are (1) contracts whose terms prevent possible performance within one year, (2) promises made in consideration of marriage, (3) contracts for one party to pay the debt of another if the initial party fails to pay, (4) contracts related to an interest in land, and (5) contracts for the sale of goods totaling more than $500.

Jason agrees to buy Sara's car for $10,000. However, Sara tells Jason that she will only sell the car to him if he pays $12,000. In this scenario, Sara makes a(n):

Counteroffer

Ohio hierarchy of courts

Court of Common Pleas 12th Federal District Court Ohio Supreme Court District courts Sixth Circuit Court Federal Supreme Court

The _____ states that the first assignee to give notice of assignment to the obligor is the party with rights to the contract.

English rule

Which of the following statements is true of business ethics?

Ethical conceptions shape business law and business relationships uniquely in each country.

_____ is best described as a problem about what a firm should do for which no clear, right decision is available.

Ethical dilemma

Which of the following theories of business ethics denies the existence of objective moral standards?

Ethical relativism

In a housing committee meeting, Wayne complained to others present that he could hear his neighbor Cynthia's baby crying through most nights and suspected she left the baby home alone. This was said in the absence of Cynthia, who heard about it from one of her neighbors. Since Wayne's statement made Cynthia sound like a negligent parent, she wanted to sue Wayne. Which of the following privacy torts has Wayne committed? False light Appropriation for commercial gain Libel Defalcation

False Light False light occurs when publicity about a person creates an impression about that individual that is not valid. It could involve attributing characteristics or beliefs to a person that she does not possess or creating the impression that an individual has taken certain actions he has not taken.

Which of the following law cases would fall under concurrent federal jurisdiction? Federal patent, trademark, and copyright cases Cases involving bankruptcy Cases concerning adoption and divorce Federal-question cases

Federal-question cases Concurrent jurisdiction covers two types of cases: federal-question and diversity-of-citizenship cases. Federal-question cases require an interpretation of the United States Constitution, a federal statute, or a federal treaty.

Government and law enforcement officials can conduct a search on personal property only if they have a court-issued search warrant. This right is given to the U.S. citizens by the _____ to the Constitution. First Amendment Second Amendment Fourth Amendment Sixth Amendment

Fourth Amendment The Fourth Amendment guarantees citizens the right to be "secure in their persons, their homes, and their personal property." Thus, it prohibits government from conducting unreasonable searches of individuals and seizing their property to use as evidence against them. A search is unreasonable if the government official conducting the search does not first obtain a search warrant from a court.

While interpreting contracts, which of the following rules applies?

If numerals and numbers written out in words conflict, the written words prevail.

Which of the following statements best defines a concurrent condition?

It occurs when the parties to a contract are required to perform their obligations for each other simultaneously.

Why is ethical fundamentalism difficult to follow?

It provides a rigid set of rules to follow regardless of the situation.

Juanita hit an armed robber with a metal rod when the robber tried to hurt her son. The robber fell unconscious at the scene of the crime and sustained major injuries. Which of the following defenses should Juanita best use to prove that she is NOT guilty? Mistake-of-fact Insanity Justifiable use of force Entrapment

Justifiable use of force Juanita should best use justifiable use of force as a defense to prove that she is not guilty. Although not typical in white-collar crime cases, one defense in cases of physical violence is justifiable use of force. The best-known example is self-defense in protection of your life.

Which of the following can be used as a defense to the enforcement of a contract?

Lack of genuine assent

The concept of _____ ensures that morality does not interfere with our inclination to obey the law. natural law legal positivism stare decisis restatements of the law

Legal Positivism The concept of legal positivism ensures that morality does not interfere with our inclination to obey the law. The concept sees one's proper role as obedience to duly authorized law.

Maya pays $5,000 and purchases a car from her friend, Jane. Later, Maya realizes that the car is worth less than $3000. Which of the following statements will be true if Maya plans to sue her friend?

Maya cannot sue Jane because the court seldom considers adequacy of consideration.

Which of the following can be in the form of an oral contract to be enforceable? A prenuptial agreement Mutual promises to marry A contract of suretyship Contract for a sale of land

Mutual promises to marry Mutual promises to marry do not fall within the statute of frauds. This agreement does not need to be in writing because neither party is gaining anything other than a return on his or her promise to marry; thus the agreement does not fall within the statute.

Which of the following laws is defined as a collection of rules and regulations put forth by legislatures? Natural law Common law Statutory law Administrative law

Statutory Law The assortment of statutes, or rules and regulations put forth by legislatures, is what we call statutory law. These legislative acts are written into the United States Code when they are passed by Congress or into the appropriate state codes when they are enacted by state legislatures.

Which of the following is true of the intent of an offeror to be bound by an agreement?

The courts interpret intent to contract only by the offeror's outward manifestations.

Which of the following conditions must a diversity-of-citizenship case satisfy? The controversy should concern an amount in excess of $50,000. The controversy should not have occurred before six months. The plaintiff and the defendant should represent different ethnic groups. The plaintiff should not reside in the same state as the defendant.

The plaintiff should not reside in the same state as the defendant. A diversity-of-citizenship case must satisfy two conditions: (1) The plaintiff(s) does (do) not reside in the same state as the defendant(s), and (2) the controversy concerns an amount in excess of $75,000.

Which of the following statements is true of the requirements for ratification to be effective? The principal must have complete knowledge of all material facts regarding the contract. The principal can accept certain parts of the agent's act and reject others. The principal can avoid ratifying the unauthorized act. An individual must avoid misrepresenting himself or herself as an agent for another party.

The principal must have complete knowledge of all material facts regarding the contract. For ratification to be effective, the principal must have complete knowledge of all material facts regarding the contract. The principal must ratify the entirety of the agent's act. The principal cannot accept certain parts of the agent's act and reject others.

Which of the following is a protection offered by the Sixth Amendment to the U.S. Constitution? The right to have witnesses on your side The right of the people against unreasonable searches The right not to incriminate yourself The right to choose your own panel of jury

The right to have witnesses on your side Sixth Amendment protections are crucial to ensuring fair proceedings in a criminal trial. These rights include the right to have witnesses on your side.

Which of the following statements is true of nominal damages? They exclude the court costs incurred by the plaintiff. They are paid to a plaintiff even if he or she suffers no compensable damages. They depend on the severity of the wrongful conduct and the wealth of the defendant. They are the highest compensation an injured party can receive.

They are paid to a plaintiff even if he or she suffers no compensable damages. Nominal damages are a small amount of money given to recognize that a defendant did indeed commit a tort in a case where the plaintiff suffered no compensable damages. A plaintiff may receive nominal damages by simply failing to prove actual damages.

Which of the following statements is true of merger clauses?

They seek to blend other agreements either into the final agreement or into something explicitly identified as being outside the final agreement.

Which of the following is an objective of tort law? To aid private retaliation by injured persons and their friends To obtain compensation for breach of duty to society To bring a lawsuit against the wrongdoers by the state To compensate innocent persons who are injured

To compensate innocent persons who are injured Tort law's primary objective is to provide compensation for injured parties. Crime victims may be able to bring a tort action against a criminal because the same actions that constitute a criminal offense often constitute a tort.

In which of the following situations do the parties to a contract lack contractual capacity?

When one of the parties to the contract is intoxicated

In which of the following situations is a consideration valid?

When past consideration is given with expectation of future payment

In which of the following cases is the assignment of rights prohibited?

When the assignment increases the risk or duties the obligor would face in fulfilling the original contract

When are punitive damages imposed in a negligence case? When the plaintiff has sustained minor injuries When the offender has committed gross negligence When the damages were not foreseeable by the offender When the plaintiff seeks only nominal damages

When the offender has committed gross negligence In typical negligence cases, courts rarely award punitive damages, or exemplary damages, which are imposed to punish the offender and deter others from committing similar offenses. Instead, courts usually award punitive damages in cases in which the offender has committed gross negligence, an action committed with extreme reckless disregard for the property or life of another person.

Before a contract can be voided for a mutual mistake, it must be proved that: a basic assumption about the subject matter of the contract is present. a party to the contract made erroneous judgment about the value of an item. there is no material effect on the agreement. both the parties to the contract consciously made false statements about a fact material to the agreement.

a basic assumption about the subject matter of the contract is present. For a mutual mistake to interfere with legal consent, all the following must be present, a basic assumption about the subject matter of the contract, a material effect on the agreement, and an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement.

Jurisdiction

a courts power to hear a case and render a decision that binds the parties

subject matter jurisdiction

a courts power to hear certain kinds of cases such as: exclusive fed jurisdiction- only fed court can hear it exclusive state court jurisdiction- only state can hear it conccurent- can be heard in fed or state (federal question case, or diversities of citizen cases

disparagement

a material false statement about the plantiffs product that cause a loss (oprah saying beef is bad)

A(n) _____ is best described as a statement made in court, under oath, or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing.

admission

elements of sherman antitrust act

agreement between parties combination or conspiracy is per se illegal OR violates the rule of reason

10th amendment

all powers that the constitution does not give to federal government, but is not taken from the states, belongs to the states

Under deontology, the categorical imperative proposed to determine whether an action is right states that:

an action is moral only if it would be consistent for everyone in society to act in the same way.

Tort

an injury to another

superseding clause

an unforseeable event that breaks the causal chain between the defendants breach and plantiffs damages (about to punch you, but instead someone else punches you)

contracts related to land

anything attached to land (trees, building, etc) mortgages and leases

A(n) _____ occurs when a party to a contract transfers his or her rights to receive something under the contract to a third party.

assignment

A(n) _____ occurs when a party to a contract transfers his or her rights to receive something under the contract to a third party. aleatory contract assignment third-party beneficiary contract delegation

assignment Assignment occurs when a party to a contract—an assignor transfers her rights to receive something under the contract to a third party—an assignee. When an assignor transfers her rights to an assignee, the assignor legally gives up all rights she had to collect on the contract.

Leaving one's car in a hotel for valet parking at a price is an example of a(n): bailment. pledge. unenforceable gift. inter vivos gift.

bailment. A bailment of personal property is a relationship that arises when one party, the "bailor," transfers possession of personal property to another, the "bailee," to be used by the bailee in an agreed-on manner for an agreed-on time period.

dram shop act

bartenders and bar owners can be liable for damages resulting from their overserving of patrons (same with social hosts and guests)

If an assault is followed by an intentional, unwanted, offensive bodily contact, it constitutes a(n) _____. libel arson battery larceny

battery An assault is often, but not always, followed by a battery, an intentional, unwanted, offensive bodily contact. Almost any unwanted intentional contact constitutes a battery, even if harmless, and intent is irrelevant for establishing liability.

negligence

behavior that creates unreasonable risk of harm to another (failing to abide by standard of care)

inter vivos gift

between the living, gift made during life

mirror image rule

bilateral, has to be exact mirror image acceptance

defenses to claims on title VII

bonafide occupational qualification (BFOQ)- discrimination in hiring on basis on gender, religion, or national origin (but not race/color) when doing so is reasonably necessary for performance of job Merit- just because someone is better for the job Seniority is legit if system applies equal to all people, and system designed and maintained free of any illegal discriminatory purpose

procedure for filing claims under title vii

charge filed with EEOC (eeoc will hop on board if so bad) eeoc conciliation attempts eeoc "right to sue" letter

privileges and immunities

clause of article 4, states cant discriminate against out of state citizens in commercial or civil activities exception: Tuition- instate vs outstate, considered "substantial reason"

duress (aff def)

coerced threat from another person of imminent death or serious harm. must be to you, or to a close family member. usually not defense to homicide

The law of contracts is primarily _____.

common law

defenses to intentional torts

consent- express consent (declaration, spoken or written by the plantiff granting permission) self defense- you may use reasonably necessary forcec to prevent tort conduct, but threat must be imminent defense of others- self defense, but with other people defense of property- use reasonable force to protect property

breach of warranty

contract law based, warranty is binding promise regarding product

Corporate criminal liablity

corporations can be criminally liable for actions of employees, agents, if employee is acting on behalf of the corp or is acting in the scope of his or her employment contract executives can be held criminally liable for corporations actions, musty be in reasonable relation to the conduct that created this public danger

statute of frauds: cannot complete contract within a year

count from day contract created do not consider likelihood of completing, instead consider possibility

US supreme court

court of last resort in federal court court of last resort for cases in state court that are deciding issues of federal law will not decide purely state law issues

A(n) _____ is best described as a third party that benefits from a contract in which the promisor agrees to pay the promisee's debt.

creditor beneficiary

White collar crimes

criminal acts of deceit without force or violence for legal gain

implied warranty of fitness of purpose

customer purchases good for a purpose and the seller is aware of the purpose.

battery

defendant must cause a harmful or offensive contact with the plantiffs person.

appropriation

defendant uses the plantiffs name or image for commerical purposes without consent.

employer-employee relationships

employers hire employees to perform certain tasks; employer has right to control conduct of employees

disparate impact

employers policy/practice appears to apply to everyone equally, but its actual effect is to disproportionately limit employment opportunities for a protected class (unintentional)

USC Section 1

every contract, combination in the form of trust or otherwise or conspiracy in restraint of trade or commerce among the several states... illegal.. shall be deemed guilty of felony

section 2 sherman antitrust

every person who shall monopolize or attempt is guilt of felony --> need market power --> need anticompetitive conduct

non poaching agreements

explicit or tacit agreement among competitors not to hire away each others employees --> violates section 1 under rule of reason analysis

gift causa mortos

gift made in contemplation of imminent and impending death

implied warranty of merchantability

goods are fit for purpose for which they are sold and used (big car being used as a paper weight)

punitive damages

imposed to punish the defendant and defer such conduct in the future

forgery

intentionally mailing or altering a writing so that it is false

___ property is property that the true owner has unknowingly or accidentally dropped or left somewhere. Lost Mislaid Abandoned Intangible

lost Lost property is property that the true owner has unknowingly or accidentally dropped or left somewhere.

causation

need two types: actual- but for (bad result would not have happened but for the defendants conduct) proximate- bad result was reasonably forseeable of defendant conduct

In an unliquidated debt, an accord is best described as the:

new agreement to pay less than the creditor claims is owed.

The _____ makes oral evidence of an agreement inadmissible if it is made before or at the same time as a writing that the parties intend to be the complete and final version of their agreement.

parol evidence rule

fraudulent misrepresentation

person who made statement intended to mislead the other party

The _____ is also called the "television test," for it requires us to imagine that our actions are being broadcast on national television.

public disclosure test

Agreements for a sale of goods in which the total price is $500 or more are required by the Uniform Commercial Code (UCC) to be recorded in a written contract. This writing need only state the:

quantity to be sold.

Agreements for a sale of goods in which the total price is $500 or more are required by the Uniform Commercial Code (UCC) to be recorded in a written contract. This writing need only state the: names of the buyer and seller. method of payment. price of the goods. quantity to be sold.

quantity to be sold. Agreements for a sale of goods in which the total price is $500 or more are required by the Uniform Commercial Code (UCC), Section 2-201, to be recorded in a written contract or a memorandum. This writing need only state the quantity to be sold; buyer, seller, price, and method of payment do not need to be included.

agency

relationship between principal and agent

duty

responsibility to act as a reasonably prudent person, owed to those in a zone of danger, whether a duty exists is often a question of law

self incrimination

right not to testify in a criminal proceeding if you are the defendant. corporations dont get this, but sole proprietorships do

bribery

something of value is offered or promised to a public official with the intent to influence their judgment

liquidated damages

specified as a term of the contract before a breach of contract occurs

parol evidence

spoken or written words made prior to or contemporaneous with the original contract, usually explaining or redefining parts of the contract

subsequent illegality of the subject matter.

closing arguments

summarizes evidence, argues why judge or jury should side with them

A _____ is best described as an unforeseeable event that interrupts the causal chain between the defendant's breach of duty and the damages the plaintiff suffered. pure comparative negligence superseding cause proximate cause modified contributory negligence

superseding cause The defendant in a negligence suit can also avoid liability by establishing a superseding cause. A superseding cause is an unforeseeable event that interrupts the causal chain between the defendant's breach of duty and the damages the plaintiff suffered.

contract to pay debt of other (party outside of original agreement steps in to help if you fail) Ex: cosigner

surety promise/collateral promise/secondary obligation distinguished from primary obligation (original contract) includes administrator promise to personally pay for estate debts

entrapment (aff def)

the government originates the criminal design, the defendant wasnt predisposed to the crime

positive law

the law and morality are separate, obedience ot the law is more important even if you dont agree with it

A debt is unliquidated when: it is provided by the creditor without charging an interest. it cannot be recovered due to the debtor's bankruptcy. the parties dispute over the existence or amount of the debt. the debtor is made to pay more than he or she owes.

the parties dispute over the existence or amount of the debt. In an unliquidated debt, the parties either disagree about whether money is owed or dispute the amount. They can settle for less than the full amount if they enter into an accord and satisfaction.

classical formalism

theory that the integrity of the law is the highest value

legal realism

theory that the result, not necessarily the rule is most imporant. ex: death penalty- see things in a way that nobody deserves death

disclosed principle

third party is aware that the agent is working for the principal, and third party knows who principle is

what contracts must be written?

those in the statute of frauds

statute of limitations

time limit in which the plantiff has to bring a lawsuit

In negligence-based product liability cases, statutes of limitations limit the: time within which all types of civil actions may be brought. compensatory damages that a plaintiff or injured parties can receive. rights of the defendant to appeal to higher courts. authority to sue a defendant residing outside the plaintiff's state.

time within which all types of civil actions may be brought. Certain statutory defenses are available in negligence-based product liability cases. To ensure that there will be sufficient evidence from which a trier of fact can make a decision, states have statutes of limitations that limit the time within which all types of civil actions may be brought.

negligence

tort feasor fails to act as reasonably prudent person under the circumstances (falls below the standard of care)

intentional tort

tort feasor takes an action intending a specific result, or knowing a specific result is likely to occur

strict liability

tort feasors actions are inherently dangerous and cannot be taken as safely regardless of the precautions (dynamite)

interstate commerce

transportation, agriculture, practically anything plus INTRAstate if susbstantially affects interstate

6th amendment

trial protections right to: speedy and public trial (ohio felnoies 270 days outside of jail 90 days in jail), if you hire a lawyer you waive this right trial by and impartial jury be informed of accusations against you confront witnesses witnesses on your side counsel- if crime is punishable by more than 6 months you have the right to counsel. starts at arraignment of first appearance in court

disclosure

true gossip tort, widely disseminate confidential information about the plantiff that would be highly offensive to the average person. have to prove damages

An agreement can be rescinded on grounds of _____, when one of the parties to the contract has so much more bargaining power than the other that he or she dictates the terms of the agreement. libel unconscionability false light defalcation

unconscionability An agreement can be rescinded on grounds of unconscionability, when one of the parties has so much more bargaining power than the other that he or she dictates the terms of the agreement.

undue influence Undue influence refers to those special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade the other and interfere with that person's ability to make his or her own decision. The essential element of undue influence is the existence of a dominant-subservient relationship.

Under the doctrine of "respondeat superior," the principal/employer holds _____, which is liability assigned without fault, for any harm the agent/employee causes while working for the principal. misrepresentation liability joint liability vicarious liability contributory liability

vicarious liability The doctrine of "respondeat superior" applies in the context of the principal/employer-agent/employee relationship. The principal/employer holds vicarious liability, which is liability assigned without fault, for any harm the agent/employee causes while working for the principal.

assignment

when a party to a contract (assignor) transfers rights to receive something under the contract to a third party (assignee)

employers should

where possible do noncompete, try to have employees stay, consider agreements that provide efficient dispute resolution, adopt payback for training requirement

expressed warranty

written or verbal agreement about product

interrogatories

written questions sent to the other that you must answer (tax returns for last 15 years, medical records, etc- request to product documents)

promises/marriage, whats included in statute of frauds

yes contract for marriage plus something else (prenup) no contract for marriage alone

affirmative defense

yes, but i did so for some specific legal reason

what happens if you find lost or misplaced property

you have rights over everyone except the owner

_____ is best described as the intentional burning of another's dwelling. Larceny Arson Embezzlement White-collar crime

Arson Arson is the intentional burning of another's dwelling. The definition is typically expanded to include other real property beyond dwellings, as well as destruction by means other than burning, such as the use of explosive devices.

Parts of assignment

Assignor gives up rights, assignee has gained them Assignee has gained ability to legally demand performance under the contract Assignee is still subject to all of the same defenses that the other original party to the contract can raise If the rights assigned are within the statute of frauds, must be written as always Assignee must agree to accept (or decline) rights

A(n) _____ is defined as a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

Contract

Laura was riding her new motorbike in a residential area. She had to swerve suddenly to avoid hitting a small child who had run onto the street after a ball. As a result, Laura hit a tree and fractured three ribs and her right arm. The motorbike also sustained considerable damage. Laura sued the father of the child who was present at the scene of the accident for negligence, but in court the defense argued that Laura had exceeded the speed limit. Which defenses to negligence has been used here by the defendant? Negligence per se Contributory negligence Assumption of the risk Superseding cause

Contributory negligence In this scenario, the defendant has used contributory negligence as his defense. Contributory negligence applies in cases in which the defendant and the plaintiff were both negligent. The defendant must prove that (1) the plaintiff's conduct fell below the standard of care needed to prevent unreasonable risk of harm and (2) the plaintiff's failure was a contributing cause to the plaintiff's injury.

How is undue influence different from duress?

Duress is a much more visible and active interference with free will than is undue influence.

The _____ holds that the right course of action is the option most consistent with the building and maintaining of human relationships.

Ethics of care

In employment contracts, what is the purpose of covenants not to compete?

It restrains an employee from competing with her boss for a designated period of time after she quits her current job.

The term _____ describes certain ethical laws and principles believed to be morally right and "above" the laws devised by humans. constitutional law common law natural law model law

Natural Law The term "natural law" describes certain ethical laws and principles believed to be morally right and "above" the laws devised by humans. Under natural law individuals have not only basic human rights but also the freedom to disobey a law enacted by people if their conscience goes against it and they believe it is wrong.

For which of the following products is a warning necessary? Bicycle manufacturers should warn that riders can fall of the cycle and hurt themselves. Producers of razor blades need to print a warning that a razor blade may cut its users. Manufacturers of meat cleavers should warn the buyers that the product has a sharp edge. Pesticide and insecticide manufacturers need to give a warning that the product is toxic.

Pesticide and insecticide manufacturers need to give a warning that the product is toxic. No duty to warn exists for dangers arising either from unforeseeable misuses of a product or from obvious dangers. A producer of razor blades, for example, need not give a warning that a razor blade may cut someone.

Which of the following statements is true of trial courts? Trial courts have the power to overrule appellate courts' decisions on questions of law. Trial courts handle primarily questions of law, not questions of fact. Trial courts have the power to hear and decide cases when they first enter the legal system. Trial courts can only exercise in personam jurisdiction and not in rem jurisdiction.

Trial courts have the power to hear and decide cases when they first enter the legal system. Trial courts, or courts of original jurisdiction, have the power to hear and decide cases when they first enter the legal system. In these courts, the parties present evidence and call witnesses to testify.

In which of the following cases is parol evidence inadmissible? When a contract contains ambiguous terms that significantly affect its interpretation When certain conditions make an otherwise valid contract void When a contract is deemed integrated by the courts When a contract contains obvious typographical errors

When a contract is deemed integrated by the courts Integrated contracts are written contracts intended to be the complete and final representation of the parties' agreement. When the courts deem a contract integrated, the parol evidence is inadmissible.

authorized acts

agent acts within scope of agents authority: liability depends on type of principle disclosed-agent not liable, principle liable partially disclosed- agent is liable for contractual nonperformance only, principle liable undisclosed principal: agent and principle liable

sherman antitrust act

applies to business practices that restrain trade/commerce

taxing and spending power

both article 1 section 8, congress can tax to regulate if tax is capable of raising some revenue congress can spend to achieve social welfare EX: highway speed limit- states receive subsidies for capping speed limits at 65. federal government practically bribes

elements of disparate treatment

burden on employee- demonstrate prima facie case of discrimination burden on employer- articulate legitimate, non discriminatory business reason for action burden on employee- show reason given by employee is "mere" pretext

elements of disparate impact

burden on employee- establish that statictically the policy restricts employment for those in the protected class burden on employer- defendant must articulate why policy or practice is a business necessity burden on employee- show that alleged business necessity is mere pretext

A(n) _____ occurs when a party outside a primary agreement promises to fulfill one of the original party's obligations if the original party fails to fulfill it.

collateral promise

A(n) _____ occurs when a party outside a primary agreement promises to fulfill one of the original party's obligations if the original party fails to fulfill it. recognizance collateral promise primary obligation illusory promise

collateral promise A secondary obligation occurs when a party outside a primary agreement promises to fulfill one of the original party's (primary debtor's) obligations if the original party fails to fulfill it. These secondary obligations are also called secondary promises, collateral promises, or suretyship promises.

Maya, a wedding planner, had agreed to use purple orchids for Janet's wedding. However, due to an embargo against the country from where the flowers were to be imported, Maya could not fulfill her promise. In this scenario, the contract between Maya and Janet may be discharged on the basis of _____.

commercial impracticability

Contracts that are required to be in writing by the statute of frauds include:

contracts of suretyship promises.

embezzlement

conversion (theft) of personal property of another by someone lawfully in possession of it

mutual recision

each party agrees to discharge

opening statements

each side explains to judge or jury what they expect evidence to show

fraud in the inducement

false statement about the subject matter

concurrence

idea that the actus reus and mens rea must happen at the same time

illusory promise.

Jason contracts with Kylie to paint her house. In exchange, the small amount of money that Jason owes to a local bank will be paid off by Kylie. In this scenario, the bank is referred to as the:

intended beneficiary.

durable power of attorney

intended to continue to be effective/take effect after principal dies

mail fraud

intentionally using the mail to further fraud

A third-party beneficiary:

is created when two parties enter into a contract with the purpose of benefiting a third party.

robbery

larceny from a person by force or threat of force

contractual capacity

legal ability to enter into binding agreement

impeachment

majority of house (articles), 2/3 senate convicts an removes.

fraud

material false representation, intent to deceive, reasonable reliance on representation, damages

fundamental rights vs non fundamental rights

must have substantial relationship to a compelling government interest right to privacy (marriage, divorce, contraception, abortion, raise children) doesnt include adultery incest prostitution and assisted suicide right to vote right to interstate travel (not international travel)

accord and satisfaction

new obligation for one party

false pretenses

obtaining ownership of property of another by false pretenses

anticipatory repudiation

one party expressly indicates that they will not fulfill obligations under a contract, or takes an action inconsistent with the parties ability to complete the contract --> results in other party being discharged

novation

one party will be replaced by third party

principal

one who hires an agent to represent him

substituted contract

parties each agree to discharge by replacing old contract with new

promisee

person who receives the promise

executive orders

president can issue directives

treaties

president can make treaties with another country with congressional approval.

unilateral contract

promise + requested action Ex: poster for lost dog Offeree (person trying to take up the promise) is under not obligation to perform and offeror can revoke offeree at anytime, unless offeree has pursued it. At that point has to leave award available for reasonable amount of time

abandoned property

property that original owner has discarded

executory contract

some elements of the contract have yet to be performed

duties of bailee

take reasonable care of bailed property use bailed property

discharge

termination of parties obligations under a contract

If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise:

to do the extra work is valid consideration.

sexual harassment

unwelcomed sexual advances, request for sexual favors, other verbal or physical conduct of sexual nature

false light

widely disseminate material falsehood about the plantiff that would be highly offensive to the average person (false gossip tort)

Which of the following statements is true of appellate courts? Appellate courts hold trials, and hence are referred to as courts of common pleas. Appellate courts primarily handle questions of facts, not questions of law. Appellate courts primarily hear and decide cases when they first enter the legal system. Appellate courts have the power to review previous judicial decisions passed by trial courts.

Appellate courts have the power to review previous judicial decisions passed by trial courts. Appellate courts have the power to review previous judicial decisions to determine whether trial courts erred in their decisions. They can overrule trial courts' decisions on questions of fact, but only when the trial court's finding was clearly erroneous or when no trial evidence supports the trial court's finding.

_____ is best described as the collection of legal interpretations made by judges. Uniform law Constitutional law Common law Statutory law

Common Law Case law, also called common law, is the collection of legal interpretations made by judges. These interpretations are law unless revoked later by new statutory law.

_____ are best described as foreseeable damages that result from special facts and circumstances arising outside a contract itself.

Consequential damages

Which of the following is a way to take the universalization test for a business owner making a decision?

Considering the impact on the world if the decision were adopted by all businesses

What does vicarious liability mean when a lower-level employee commits a corporate crime? Only the CEO of the company will be held liable for all crimes committed by lower-level employees. When a lower-level employee commits a crime, she or he will be solely liable for the crime even if the employee's manager could have prevented the crime. Even though corporations can be held liable for white-collar crimes, its executive officers or lower-level employees cannot be incarcerated. Courts can hold employers liable for the wrongful acts of their employees if the employer directed or authorized the wrongful act.

Courts can hold employers liable for the wrongful acts of their employees if the employer directed or authorized the wrongful act. Under vicarious liability, courts have held employers liable for the wrongful acts of their employees if the employer directed, partook in, or authorized the wrongful act.

For a law case, venue is appropriate in the county where the _____ resides. prosecutor defendant plaintiff jury

Defendant Venue is appropriate in the county where the defendant resides or where the incident took place over which the lawsuit arose.

In a contract between Sophia and Carl, Sophia had agreed to pay Carl $30,000 to paint her house and redo her garden. Carl agreed to the terms. After painting the house, Carl decided and convinced Sophia that it would be a better deal for her if he could redo her swimming pool rather than the garden for the original price. Carl's duty under the original contract was discharged only after he performed the new duty. Which of the following methods to discharge a contract does this scenario best illustrate?

Discharge by accord and satisfaction

Discharge by accord and satisfaction The scenario best illustrates discharge by accord and satisfaction. An accord and satisfaction is used when one of the parties wishes to substitute a different performance for his or her original duty under the contract. The promise to perform the new duty is called the accord, and the actual performance of that new duty is called the satisfaction.

Felipe, Adam, and Shirley are neighbors. Felipe overhears Adam's offer to sell an antique clock to Shirley for $3,000. Under these circumstances, _____.

Felipe makes a new offer to Adam when he offers to buy the clock for $3,000

_____ are best described as serious crimes, such as murder, that are punishable by imprisonment for more than one year or death. Misdemeanors Felonies Civil offenses Infractions

Felonies Felonies include serious crimes, such as murder, that are punishable by imprisonment for more than one year or death. Crimes are divided into categories based on the seriousness of the offense. Today, the categories used are felonies, misdemeanors, and petty crimes.

A high school in Alabama suspended one of its students, John, on grounds of vandalism of school property. When the matter reached the court, the defense argued that John should be entitled to a fair trial in accordance with the _____ to the U.S. Constitution. First Amendment Fourth Amendment Fifth Amendment Tenth Amendment

Fifth Amendment John should be entitled to a fair trial in accordance with the Fifth Amendment to the U.S. Constitution. The Fifth Amendment protects individuals in several important ways. The due process clause states that government cannot deprive a person of life, liberty, or property without due process of law.

James sold the shares of a company, for which his brother-in-law was the CEO, just a few months before the company filed for bankruptcy. James used information that was not public knowledge to save himself from the loss. However, the general public that had invested in the company suffered huge losses due to the drastic fall in the market value of the company. What type of a fraudulent crime does this scenario best illustrate? False token Insider trading Defalcation False pretenses

Insider trading The scenario best illustrates insider trading. Insider trading is generally the buying or selling of a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider-trading violations may also include "tipping" such information and trading on it by the person "tipped."

A noted women's rights organization sued an apparel retail chain for installing hidden cameras in its fitting rooms. Which of the following privacy torts does this scenario best illustrate? Public disclosure of private facts Appropriation for commercial gain Intentional depiction of a person in false light Intrusion on an individual's seclusion

Intrusion on an individual's seclusion The scenario best illustrates intrusion on an individual's seclusion. Intrusion on an individual's affairs or seclusion occurs when someone invades a person's solitude, seclusion, or personal affairs when the person has the right to expect privacy.

Why have most states enacted a long-arm statute? It enables courts to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state. It enables district courts to handle both questions of law and questions of fact for cases within their states. If a defendant has property in a state, it allows a plaintiff to file suit against the owner instead of his or her property. It allows trial courts to overrule appellate courts' decisions when no trial evidence supports the appellate court's finding.

It enables courts to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state. Most states have enacted long-arm statutes,which enable the court to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state and it seems fair to assert long-arm jurisdiction over him or her.

Which of the following is true about the commerce clause? It grants the federal government the authority to pass regulations that significantly affect interstate commerce. It empowers the state governments to pass laws that substantially affect international commerce. It allows the state to overrule the federal government's regulations on interstate business laws. It empowers the federal government with the sole authority to offer tax credits to businesses within individual states.

It grants the federal government the authority to pass regulations that significantly affect interstate commerce. The commerce clause grants the federal government the authority to pass regulations that significantly affect interstate commerce. The commerce clause states that the U.S. Congress has the power to "regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." This allocation of authority simultaneously empowers the federal government and restricts the power of state governments.

What does federal supremacy mean? It is a clause which annuls any state or local law that directly conflicts with the U.S. Constitution or federal laws. It is a clause that strikes down local laws that attempt to regulate an area within concurrent jurisdiction. It is a clause that grants the state governments the authority to regulate an area exclusively, when the state and federal governments have concurrent authority. It is a clause that interrelates the three branches of federal government in order to prevent it from using undue power.

It is a clause which annuls any state or local law that directly conflicts with the U.S. Constitution or federal laws. The supremacy clause, located in Article VI of the Constitution, provides that the Constitution, laws, and treaties of the United States constitute the supreme law of the land. Any state or local law that directly conflicts with the Constitution, federal laws, or treaties is void.

Which of the following statements best explains federalism? It is a political system in which all the powers in governing a nation lie with the federal government. It is a system in which the federal government has powers beyond those granted to it by the Constitution. It is a political system that consists of the legislative, executive, and judicial branches, which have the undue power to control the government. It is a system of government in which the authority to govern is divided between federal and state governments.

It is a system of government in which the authority to govern is divided between federal and state governments. The U.S. Constitution establishes a system of government based on the principle of federalism, according to which the authority to govern is divided between federal and state governments.

The human resource policy of a company states that the company aims to treat all humans identically, regardless of race, class, gender, age, and sexual preference. Which of the following values influencing business ethics does this best illustrate?

Justice

Lara sued a consumer electronics company on the basis that she incurred injuries while trying to use the company's hair straightener. However, the defendant is using the assumption of risk as its defense. Which of the following would strengthen the company's defense? Lara purchased the product from a discount sale. Lara continued to use the product in spite of the coil burning out due to overuse. Lara has purchased products—that are not defective—from the same company. Lara is not trained to use the product professionally.

Lara continued to use the product in spite of the coil burning out due to overuse. The company's defense will hold if it can prove that Lara continued to use the product in spite of the coil burning out due to overuse. Assumption of risk arises when a consumer knows that a defect exists but still proceeds unreasonably to make use of the product, creating a situation in which the consumer has voluntarily assumed the risk of injury from the defect and thus cannot recover.

On which of the following tenets does the concept of legal realism primarily rest? Law can never be enforced with complete consistency because the environment is ever-changing. Basing current judgments exclusively on past court decisions ensures social justice. Individuals have basic human rights, but they do not have the freedom to disobey a law enacted by people if their conscience goes against it. When we follow tradition, we link our behavior to the behavior of those who faced similar problems in earlier periods.

Law can never be enforced with complete consistency because the environment is ever-changing. Legal realism rests on the tenet that law can never be enforced with complete consistency because the environment is ever-changing. Legal realism is based on the idea that, when ruling on a case, judges need to consider more than just the law; they also weigh factors such as social and economic conditions, since legal guidelines were designed by humans and exist in an ever-changing environment.

_____ are best described as damages parties to a contract specify in advance in order to prevent a difficult court battle if there is a particular kind of breach. Liquidated damages Punitive damages Nominal damages Special damages

Liquidated damages To prevent a difficult court battle, the parties specify in advance what the liquidated damages will be if there is a particular kind of breach. The parties specify these damages in what is called a liquidated or stipulated damage clause in the contract. The damages may be specified as either a fixed amount or a formula for determining how much money is due.

Louis has not accepted the offer as required by the offeror, and there is no contract.

MNM Inc. manufactures cement blocks and requires hiring people for heavy physical work such as carrying the cement blocks, loading them in the trucks, etc. Since the work involves heavy physical activity, MNM hires only male employees. On what basis could the company defend itself had a case of discrimination on the basis of sex been filed against the company? On the basis of disparate treatment On the basis of bona fide occupational qualification defense On the basis of merit defense On the basis of seniority system defense

On the basis of bona fide occupational qualification defense The bona fide occupational qualification (BFOQ) defense allows an employer to discriminate in hiring on the basis of sex, religion, or national origin (but not race or color) when doing so is necessary for the performance of the job.

Lucas is planning to buy a house owned by Janet. He gives her an initial amount of $10,000 to hold the offer open for a 45-day period. Janet will deduct the $10,000 from the purchase price if Lucas purchases the property within those 45 days. If he does not, Janet can keep the $10,000 and offer the house to another party. Which of the following contracts does this scenario best illustrate?

Option contract

Which of the following is a protection offered by the Eight Amendment to the U.S. Constitution? Protection against unreasonable searches and seizures Protection against excessive bail and excessive fines Protection against double jeopardy Protection against self-incrimination

Protection against excessive bail and excessive fines According to the Eight Amendment to the Constitution, excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

What is meant by peremptory challenges? Written questions that one party in a lawsuit sends to challenge the other party under oath Requests for the court to consider that all the facts in the pleadings are true and to apply the law to those facts Claims made by the defendant against the plaintiff that are sent with the answer to the complaint Rights given to a party to challenge to a certain number of potential jurors without giving a reason

Rights given to a party to challenge to a certain number of potential jurors without giving a reason In most states, each party has a certain number of peremptory challenges. These peremptory challenges allow a party to challenge a certain number of potential jurors without giving a reason. Peremptory challenges, however, may lead to abuse.

_____ are best described as torts that occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes. Negligent torts Intentional torts Strict-liability torts Mistake-of-fact torts

Strict-liability torts Strict-liability torts occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes. In the United States torts are classified as intentional, negligent, or strict liability. The categories differ in terms of the elements needed to prove the tort, available damages, available defenses, and degree of willfulness of the actor.

Which of the following is a necessary condition for a justiciable controversy? The issue should have occurred at least six months before filing the lawsuit. The court should be able to render a decision that will solve the existing problem. The plaintiff and the defendant should have a personal stake in the issue. The controversy should concern an amount in excess of $75,000.

The court should be able to render a decision that will solve the existing problem. Three criteria are necessary for a case or controversy to exist. First, the relationship between the plaintiff and the defendant must be adverse. Second, actual or threatened actions of at least one of the parties must give rise to an actual legal dispute. Third, courts must have the ability to render a decision that will resolve the dispute.

Which of the following happens if a defendant is not informed of his or her Miranda rights? The arrest warrant issued by the magistrate will cease to be legally enforceable. The arresting officers can make no appeal after the verdict of the trial has been pronounced. The information provided by the defendant at the time of arrest will not be admissible at trial. The defendant will be given the liberty to consult an attorney before speaking to the police.

The information provided by the defendant at the time of arrest will not be admissible at trial. To comply with the Supreme Court's requirements for protecting a citizen's rights, law enforcement officers must inform any individual they arrest of his or her Miranda rights. If the officers fail to do so, any information a defendant offers at the time of the arrest is not admissible at trial.

What is the outcome if a defendant successfully proves contributory negligence? The plaintiff will be denied any recovery of damages. The defendant has to pay for half the damages incurred by the plaintiff. The plaintiff and the defendant will be incarcerated for three months. The plaintiff will pay a sum to the defendant for filing a case.

The plaintiff will be denied any recovery of damages. If the defendant successfully proves contributory negligence, no matter how slight the plaintiff's negligence, the plaintiff will be denied any recovery of damages.

Which of the following is true of whistle-blowers? They are government officials who have to report corporate crime. They are protected from their employers under the False Claims Act. They can be legitimately terminated for bringing a suit against their employers. They find it easy to get a job in the same field after reporting a fraud.

They are protected from their employers under the False Claims Act. Whistle-blowers are protected from their employers under the False Claims Act. Since 1986 private citizens have been using the False Claims Act to sue employers for fraud against the government. Certainly, an employee who brings a suit against an employer might be worried about retaliation, such as being fired or demoted. Thus, the act provides protection for employees who use it.

Under the statute of frauds, which of the following statements is true of the one-year rule for contracts? The possibility that a contract's terms could be performed within one year does not remove the contract from the statute's written requirements. If a contract can possibly be performed within a year, but such performance is highly unlikely, then the contract needs to be in writing to be enforceable. Under the statute, the one-year period begins the day after the contract is created, not when it is scheduled to begin. The test for compliance with the one-year rule considers the likelihood of completing the contract in one year rather than the possibility.

Under the statute, the one-year period begins the day after the contract is created, not when it is scheduled to begin. Contracts whose performance, based on the terms of the contract, could not possibly occur within one year fall within the statute of frauds and therefore must be in writing. The one-year period begins the day after the contract is created, not when it is scheduled to begin.

In the context of intentional torts against property, in which of the following situations has conversion occurred? When a person uses her property in an unreasonable manner that harms a neighbor's use or enjoyment of his property When a person temporarily exerts control over another's personal property or interferes with the owner's right to use it When a person intentionally enters the land of another without permission When a person permanently removes personal property from the owner's possession and control

When a person permanently removes personal property from the owner's possession and control Conversion occurs when a person permanently removes personal property from the owner's possession and control. The owner usually recovers damages for the full value of the converted item, plus any additional damages resulting from the loss.

When does a default judgment occur? When the defendant agrees that the facts contained in the complaint are accurate When the plaintiff fails to provide accurate evidence When the defendant denies the claims made by the plaintiff When the defendant fails to answer to the copy of the complaint sent by the court

When the defendant fails to answer to the copy of the complaint sent by the court A default judgment is a judgment in favor of the plaintiff that occurs when the defendant fails to answer the complaint and the plaintiff's complaint alleges facts that would support such a judgment.

admission An admission is a statement made in court, under oath, or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing. All states except Louisiana and California allow the admission exception.

agency by estoppel

agency formed when principal leads third party to believe that another individual serves as his or her agent (although principal actually made no agreement with purported agent) AKA apparent authority

At-will employment implies that: an employer can fire an employee even for an illegal reason. an employee has the right to decide whether to work or not to work. an employer can fire an employee without any reason. an employee is eligible to employment only if his or her ancestors have worked there.

an employer can fire an employee without any reason. During the 18th and 19th centuries in the United States, employees had no protection in the workplace. An employee who was injured could be fired. In fact, an employer could fire a worker for no reason at all. This concept came to be known as at-will employment.

requirements of rule of reason

anti competitive practice--> using quality as surrogate for price or output, agreement among supplies on credit terms, no vertical agreements AND violators must have market power (power to change price and output with your actions)

federal commerce clause

article 1 section 8, allows regulation of commerce

federalism

authority to govern is divided between the federal and state government

contract is void or illegal if any of the following

commit crime or tort usury (higher interest rate) gambling contracts in restraint of trade unconscionable (so onesided that its unfair) exculpatory clauses--> if contractor relieves on side of liability regardless of result

principal's duties to agent

compensation reimbursement and indeminfication cooperationg safe working conditions

available damages for torts

compensatory (economic- out of pocket like medical bills lost profits etc, noneconomic- pain and suffering, capped in ohio at 250,000) Punitive- punish and deter the defendant. can only be single digit multiplier of compensatory damages. in ohio can only be 2-3 times greater. nominal- moral victory (1 dollar)

performance necessary for discharge

complete- all aspects of duties fully carried out --> generally not required substantial- majority of duties carried out --> generally required

substantial performance

completions of nearly all terms of the agreement an honest effort to complete all terms no willful departure from terms

intraenterprise conspiracy

concerted action under a single corporate umbrella --> not an agreement

When an entire contract is conditioned on something else's occurring first, that first event is known as a(n) _____. constructive action condition precedent undue influence adhesion clause

condition precedent When an entire contract is conditioned on something else's occurring first, that first event is known as a condition precedent. Evidence of the existence of a condition precedent agreed to orally is admissible, as stated previously, because the contract is not modified by such evidence; rather, its enforceability is called into question.

Contracts that are required to be in writing by the statute of frauds include: promises to sell crops annually. contracts between parties for profit sharing from the sale of real property. contracts of suretyship promises. mutual promises to marry.

contracts of suretyship promises. The contracts within the statute of frauds that concern promises to pay a debt are of a very limited kind. Known as secondary obligations, they are also called secondary promises, collateral promises, or suretyship promises. Secondary obligations are within the statute and need to be in writing.

unprotected speech

defamation- harms the reputation of another obscinity- if the average person applying contemporary standard would find appeals to prurient interests, patently offensive as defined by state law, lacks serious value fighting words- words that have direct tendency to cause acts of violence

To establish proximate cause in a negligence claim, it is necessary to prove that the: damages or losses suffered by a plaintiff were above $5 million. plaintiff would have suffered losses even if the defendant had fulfilled his or her duty of care. defendant's actions were intended to cause injury to the plaintiff. defendant could reasonably foresee the damages that the plaintiff suffered as a result of his or her action.

defendant could reasonably foresee the damages that the plaintiff suffered as a result of his or her action. Proximate cause is said to exist only when both the plaintiff and the plaintiff's damages were reasonably foreseeable at the time the defendant breached his duty to the plaintiff. Thus, if the defendant could not reasonably foresee the damages that the plaintiff suffered as a result of his action, the plaintiff's negligence claim will not be sustained because it lacks the element of proximate causation.

To win a negligence case after it has been established that the defendant owes a duty to the plaintiff, it must be proved that the: defendant intended to cause injury. defendant failed to live up to the standard of care. plaintiff suffered damages above $5 million. plaintiff could not avoid the situation.

defendant failed to live up to the standard of care. To win a negligence case, after it has been established that the defendant owes a duty to the plaintiff, it must be proved that the defendant failed to live up to the standard of care. Once the plaintiff has established that the defendant owes her a duty of care, she must prove that the defendant's conduct violated that duty. This violation is called a breach of duty.

product liability requirements

defendant has to be a merchant products has not been altered since left defendants hands forseeable use of product (design and informaiton defects only)

To apply modified comparative negligence, the: plaintiff should prove that there was no negligence from his or her side. plaintiff should prove that the event can occur in the absence of negligence. defendant must have intended to cause the injury to the plaintiff. defendant must be more than 50 percent at fault before the plaintiff can recover.

defendant must be more than 50 percent at fault before the plaintiff can recover. Courts calculate damages according to modified comparative negligence in the same manner as pure comparative negligence, except that the defendant must be more than 50 percent at fault before the plaintiff can recover.

false imprisonment

defendant must commit an act of restraint in a bounded area (lock someone in a closet). threat alone is insufficient, cant have reasonable means of escape

Intentional Infliction of Emotional Distress

defendant must engage in outrageous conduct, and the plantiff must suffer sever distress. words usually not enough.

A party transferring her or his duties under a contract to a third party is referred to as the _____.

delegator

compensatory damages

designed to put the plaintiff in the position he would have been in had the contract been fully performed

federal determinate sentencing guidelines

determine by a series of guidelines (factors) that cause you to gain and lose points to figure out your sentence. it is advisory, but not mandatory.

Anne and Ted skip a day of work. Their employer, Julie, fires Anne but does not fire Ted. The main reason for firing Anne was that she is a young and beautiful girl. This is an example of: disparate treatment. disparate impact. unintentional discrimination. sexual harassment.

disparate treatment. Disparate treatment is sometimes referred to as intentional discrimination. It occurs when an employee is treated differently on the basis of being a member of a protected class (i.e., race, religion, sex, national origin, or color).

conscious parallelism

distributor of films, 8 different theatres, send individual letters, but CCed other companies, "wouldnt it be great if you did this", everyone knows that everyone did that stuff, know whats up and in parallel make agreement. if all act independently, no agreement

power of attorney

document giving agent authority to perform specific acts on behalf of principal

Plantiffs pleadings (the complaint)

document plantiff files on the court and then given to the defendant. Must hve a basis of why suing, legal claims on what lawsuit is based, facts that support legal claim, demand for relief

statute of frauds

doesnt really relate to fraud or something criminal or illegal

Three elements necessary for a valid gift are delivery, acceptance, and: tax benefits. donative intent. consideration. enforceability.

donative intent. Three elements necessary for a valid gift are delivery, donative intent, and acceptance.

The government of a state in the United States, as a means to protect its local pharmaceutical industry, passes a law to ban drugs manufactured by pharmaceutical companies headquartered outside its state's limits. Pharmaceutical companies can challenge the legislation as a violation of the _____. dormant commerce clause submission clause contract clause privileges and immunities clause

dormant commerce clause The dormant commerce clause prohibits states from passing laws that significantly interfere with interstate commerce. Sometimes a state's use of its police power affects interstate commerce. If the purpose of a state law is to regulate interstate commerce or to discriminate against interstate commerce, the law is usually unconstitutional. Likewise, if a law substantially interferes with interstate commerce, it is generally unconstitutional.

5th amendment

double jeopardy- each crime must require proof of an element that other doesnt have. this applies to same sovereign, so ohio can charge you for one thing then Indy too.

5th amendment

due process (CORPORATION IS A PERSON HERE). government cannot deprive a person of life, liberty, or property without due process of law.

When one party is forced to enter into a contract by the wrongful threat of another, the contract is voidable by the innocent party due to _____.

duress

When one party is forced to enter into a contract by the wrongful threat of another, the contract is voidable by the innocent party due to _____. duress false light negligence per se duty to retreat

duress When one party is forced to enter into a contract by the wrongful threat of another, the contract is voidable by the innocent party due to duress. Duress occurs when one party is forced into the agreement by the wrongful act of another. The wrongful act may come in various forms.

what is transferred in a delegation

duties instead of rights

what cant you delegate?

duties that are personal in nature duties for which the delegatees performance will vary significantly from the delegators guties in contracts that forbid delegations

Negligence per se

duty and breach is replaced with: statute plantiff in right class accident is right type Ex: speeding 30 over and strikes you, negligence (not reasonable), easier to refer to statute and breach of that statute.

When an agent makes authorized expenditures in the course of working on behalf of the principal, and the principal refuses to pay the agent, the principal is violating his or her: duty of accounting. duty of performance. duty to reimburse. duty to compensate.

duty to reimburse A principal has a duty of reimbursement and indemnification to an agent. If the agent makes authorized expenditures in the course of working on behalf of the principal, the principal has a duty to reimburse the agent for that amount of money.

commerce

economic and commercial

partially integrated contracts and parol evidence

emissable on both parol evidence and PE exceptions parol evidence is allowed to clarify incomplete terms

employment at will

employee may quit for any reason/no reason at all, with no required notice to employer. employer can also fire them.

hypothetical

employee of company, original contract but no noncompete, employer later asks you so sign noncompete Do you have to? If you're at will, employee is kinda screwed

The Age Discrimination in Employment Act (ADEA) of 1967 applies to: employees or applicants of age 40 or older. employers of age 35 or above. only to employment agencies that have not less than 50 members and the members are 40 or older. only to unions that have 10 or more members who are 50 or older.

employees or applicants of age 40 or older. The Age Discrimination in Employment Act (ADEA) of 1967 was enacted to prohibit employers from refusing to hire, discharging, or discriminating in terms and conditions of employment against employees or applicants age 40 or older. ADEA applies to employers having 20 or more employees. It also applies to employment agencies and to unions that have at least 25 members.

noncompete clauses

employment contracts, cant leave one company to another is reasonable is: no greater than is required for protection of the employer, and does not injurous to the public Raimonde vs Van Vlerah

quid pro quo

employment decisions are related to an individual submitting to such conduct OR hositle work enivornment where conduct has the purpose or effect of creating an intimidating, hostile, or offensive work environment. Anchorman clip

invitee

enters with permission, economic benefit of landowner. duty of concealed conditions, known in advance by landowner, also could have known about through reasonable investigation/observation

known trespasser

enters without permission, but owner knows or may expect. duty to protect from hazards that are artifical, highly dangerous, concealed. landowner has to know in advance about the condition

unknown trespasser special duty

enters without permission, landowner owes no duty

oral condition precedent

entire contract doesnt come into effect until something happens, you can orally state those terms

Under the _____, contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.

equal dignity rule

Under the _____, contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent. mirror image rule preexisting duty rule equal dignity rule parol evidence rule

equal dignity rule Because the statute of frauds is actually state law, certain states have various requirements not found in others. In some states, under the equal dignity rule contracts that would normally fall under the statute and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.

14th amendment

equal protection. legal standards for upholding laws that intentionally and purposefully discriminate (standards): strict scrutiny (compelling government interest). suspect class- law views skeptical due to history (race, national origin, citizenship) intermediate scrutiny (important government interest) legitimacy, laws about being born out of wedlock, government still has burden of proof (gender included) rational basis (any legitimate objective) everything else has to have legitimate objective (rational basis). likey upheld law, challenger has the burden or proof not the govt. BIG EXCEPTION- affirmative action, allowed becasue of past discriminations that have to be remedied. Citizenship exception- if in policy making or implementaiton, can limit position to US citizens (teachers, law enforcement, politics, etc)

ADEA claim prima facie cases elements

establish facts sufficient to create reasonable inference that age was a determining factor in termination 1. plaintiff belongs to statutorily protected class (40+) 2. plaintiff was qualified for the position 3. plaintiff was terminated under circumstances giving rise to an inference of discrimination

A plaintiff proves a disparate impact case by first: establishing statistically that a rule governing employment disproportionately restricts employment opportunities for a protected class. avoiding liability by demonstrating that a practice or policy of discrimination is a business necessity. articulating a legitimate, nondiscriminatory business reason for the action. proving that an employee was intentionally discriminated on the basis of race, color, national origin, sex, or religion.

establishing statistically that a rule governing employment disproportionately restricts employment opportunities for a protected class. A plaintiff proves a case based on disparate impact by first establishing statistically that a rule governing employment disproportionately restricts employment opportunities for a protected class.

natural law

ethical laws and principals are believed to be morally right, not manmade but the way things are supposed to be done.

To establish res ipsa loquitur in negligence cases, the plaintiff must demonstrate that the: indicated negligence is not within the scope of the defendant's duty to the plaintiff. defendant could not reasonably foresee the damages that the plaintiff suffered as a result of his or her negligence. event was a kind that ordinarily does not occur in the absence of negligence. damage or injury would have occurred even if the defendant had fulfilled his or her duty.

event was a kind that ordinarily does not occur in the absence of negligence. To establish res ipsa loquitur in most states, the plaintiff must demonstrate that the event was a kind that ordinarily does not occur in the absence of negligence.

A(n) _____ occurs when, after reaching the age of majority, a person states orally or in writing that he or she intends to be bound by the contract entered into as a minor.

express ratification

preemption

express- this federal law does explicitly state that this overrules state laws implied- impossible to comply with both state and federal law, you have to follow the federal law. federal regulation in one area is so extensive that its extremely regulated and theres no room for state law (creditors cant take more than 50% of your income is federal, state wants to make it 60% but they can't but they could do 40%)

defamation

false defamatory statement specifically identifying the plantiff plus publication plus damages

negligent misrepresentation

false statement about material fact that person who made it could have known with reasonable inspection DAMAGES!

fraud in the factum

false statement about the nature of a document being signed

classifications of crimes

felonies- punishable by imprisonment of 1 or more years or death misdemeanors- fines or imprisonment of less than one year petty offenses- lower than misdemeanors, no possibility of jail

service of process

formal way defendant must receive complaint defendant can respond by: no response answer (admit/deny, affirmative defense- true but some legal reason you cant sue, counterclaim- sue the person who is suing you)

Naomi sold her five-year-old car to the buyer claiming that she had bought the car three years ago. This is an example of: duress. mistake of fact. mistake of law. fraudulent misrepresentation.

fraudulent misrepresentation. A fraudulent misrepresentation is a consciously false representation of a material fact intended to mislead the other party. For fraudulent misrepresentation to be the basis for a contract rescission, the statement of fact need not be an actual assertion. It can also be an act of concealment or nondisclosure. Concealment is the active hiding of the truth about a material fact.

1st amendment religion

free exercise clause- cannot punish or require to profess specific religion (neutral law and happens to affect religion is okay) establishment clause- in order to not violate must have the following: secular purpose, primary purpose neither to advance or inhibit, avoid excessive entanglement with religion

Joshua enters into an agreement with Cathy, an interior designer, to redo his house. Once Cathy has completed designing and decorating the house, she no longer has the authority to act on Joshua's behalf. Under the given circumstances, the agency terminated due to: impossibility. lapse of time. fulfillment of purpose. renunciation by the agent.

fulfillment of purpose. Considering the case, the agency terminated due to fulfillment of purpose. Cathy has fulfilled the purpose of the agreement, which involved designing and decorating the house for Joshua, and thus led to termination of the agency relationship.

The _____ requires that courts in all states uphold contracts and public acts established in other states, as long as they do not violate their public policy. contract clause dormant commerce clause privileges and immunities clause full faith and credit clause

full faith and credit clause The full faith and credit clause requires that courts in all states uphold contracts and public acts established in other states. For example, this clause protects wills, marriage and divorce decrees, and judgments in civil courts. Courts have held, however, that states do not have to give full faith and credit to laws that violate their "public policy."

A(n) _____ typically allows the agent to conduct all business for the principal. general power of attorney inherent agency power special power of attorney durable power of attorney

general power of attorney The power of attorney is a specific form of express authority, usually in writing, granting an agent specific powers. A general power of attorney allows the agent to conduct all business for the principal.

Jonathan was in his last stages of lung cancer. In contemplation of his death, he gave away his Mercedes to his best friend as a gift. The gift is an example of a(n) _____. inter vivos gift gift causa mortis fixture premium

gift causa mortis Gift causa mortis is a gift that is made in contemplation of one's immediate death. It can be revoked any time before the death of the donor, and it is automatically revoked if the donor recovers.

Implied warranty of merchantability means that the: goods are fit for the purpose for which they are sold and used. verbal representations about the product made by the seller are all true. buyer will be able to resell the product at the same price at which she purchased it. buyer can return the product if she finds a superior product.

goods are fit for the purpose for which they are sold and used.

Pretrial litigation

goverened by Ohio Rules of Civil Procedure

In a criminal trial, the _____ files a case against the defendant. society individual victim government corporation

government In a criminal trial, society is seen as the victim, and the government files charges against the defendant. In contrast, in a civil trial there is an individual victim or victims, and an individual person or corporation can file a suit.

contract clause

government cant pass legislation that substantially impairs preexisting contracts unless there is an overriding need (great depression: gave redemption period during mortgage crisis)

substantive due process

government must have proper purose for enacting laws that restrict on individuals liberty or use of property

To prove that a contract is implied, or implied-in-fact, it is necessary for a plaintiff to establish that a defendant:

had an opportunity to reject the property or service received but did not.

partial performance of land contracts

if a buyer has an alleged contract for the sale of land has: paid any portion of the sale price OR begun to permanently improve the land OR taken possession of the land

liability for agent crimes

if agent commits crime, agent liable if agent commits crime in scope of employment without authorization of principle, principle not liable for agents crime

res ipsa loquitor

if cant get dire evidence, but event in question ordinarily wouldnt happen withough negligence AND accident is normally attributable to someone in the defendants position.

damages of defamation

if there is a libel (written) there will be presumption of damages, slander (oral) per se damages are presumed (if the statement relates to the plantiffs position, their criminal record, loathsome disease, unchaste woman) harder for public figures to win defamation cases if you are speaking on floor of congress you cannot be sued for defamation.

The legal principle of _____ means that both parties to a contract are equally responsible for an illegal agreement

in pari delicto

When the contracting parties do not intend to benefit someone but unintentionally do so, that third party is referred to as a(n):

incidental beneficiary.

elements of agency by ratification

individual misrepresents himself as agent for another principal accepts/ratifies unauthorized act principal has complete knowledge of all material facts principal must ratify entirety of agents act

agency by ratification

individual misrepresents himself as agent for another party, and principal accepts/ratifies unauthorized act

general rule of hiring

individual who hires independent contractor not liable for independent contractors tortious actions under doctrine of respondent superior UNLESS independent contractor engages in hazardous activity

trespass to personal property

inentional interference with any of your things

type of affirmative defenses

infancy- because of defendants infancy, did not have mens rea. rule of 7s, under 14 cant be prosecuted unless certain cases and under 7 cant. greater than 14 can be mistake of fact-reasonable, can be a defense. share private info, but thought it was public info. reasonably made this mistake. intoxication-involuntary is an affirmative defense. has to be to a point where you dont understand what you did what you did was wrong. if voluntary, hard to use as defense

A(n) _____ is best described as an order either forcing a person to do something or prohibiting a person from doing something.

injunction

A(n) _____ is best described as an order either forcing a person to do something or prohibiting a person from doing something. delegation assignment novation injunction

injunction An injunction is an order either forcing a person to do something or prohibiting a person from doing something. Most commonly, injunctions are prohibitions against actions.

A(n) _____ results from a false statement about a fact material to an agreement that the person making it believed to be true.

innocent misrepresentation

intrusion

invasion of plantiffs seclusion in a way that is highly offensive to the average person

When a counteroffer is made by an offeree, the original offer:

is terminated.

In a contract, _____ refers to a promise the courts will require the parties to obey.

legal assent

jury vs bench

legal issues and fact issues: judge. JURY decides fact, JUDGE legality

Sarbanes Oxley Act

limits which non audit services public accounting firms can perform for audit clients

When there is no dispute over the amount of debt or existence of debt, it is referred to as a _____.

liquidated debt

partial payment on debt

liquidated- no dispute to validity or amount of debt (not consideration) unliquidated- dispute in the amount of debt (can be consideration)

agents duties to principal

loyalty notification performance obedience accounting

Which of the following occurs when a party to a contract unjustifiably fails to substantially perform his obligations under the contract? Anticipatory repudiation Substantial performance Material breach Objective impossibility

material breach A material breach occurs when a party unjustifiably fails to substantially perform his obligations under the contract. It is often difficult to know when the court is going to determine that a breach is material.

long arm statue

minimum standard to exercise jurisdiction outside of geographic region

Involuntary transfers of ownership occur when property has been: voluntarily gifted. gifted in contemplation of death. mislaid. purchased without consideration.

mislaid. Involuntary transfers of ownership occur when property has been abandoned, lost, or mislaid.

In contract law, _____ refers to having an erroneous belief about the facts of a contract at the time the contract is concluded.

mistake of fact

In contract law, _____ refers to having an erroneous belief about the facts of a contract at the time the contract is concluded. mistake of fact defalcation false light implied-in-fact

mistake of fact In contract law, a mistake of fact is an erroneous belief about the facts of the contract at the time the contract is concluded. Legal assent is absent when a mistake of fact occurs.

pretrial motions

motions filed to try and conclude case before travel

sufficiency or writing

name of the parties to the contract subject matter of the agreement consideration given for the contract all relevant contractual terms the signature of atleast the party against whom action is brought

A(n) _____ occurs only when the party making a false statement, without the intentions to deceive, should have known the truth using the skills and competence required of a person in his position or profession. fraudulent misrepresentation intentional misrepresentation innocent misrepresentation negligent misrepresentation

negligent misrepresentation In some contract negotiations, one party makes a statement of material fact that he thinks is true. If he could have known the truth by using reasonable care to discover or reveal it, his statement is a negligent misrepresentation.

8th amendment

no excessive bail or fines, no cruel and unusual punishment (open to interpretation by courts). cant execute if mentally handicapped, criminally insane, or less than 18 at the time of the crime

justifiable use of force (aff def)

non deadly force- use of self defense if reasonably necessary to protect from immediate unlawful force deadly force- must face immediate threat of death or bodily harm defense of others- if the other was allowed to use self defense, then you are justified to use that force to defend them

integrated contracts and parol evidence

not emissable on parol evidence but yes emissable with PE exceptions parol evidence is not allowed to come in

demamatory

not including name calling

motion for summary judgment

not until after formal discovery- judge concludes there is no genuine factual disputes between the parties and reasonable people can only come to one conclusion about this case

Harry had agreed to hire 17-year-old Nathan as a production worker in his factory. However, before Nathan could start working for Harry, the law in the country made it illegal to employ minors in production units. In this scenario, the parties to the contract are discharged from their duties on the grounds of _____.

objective impossibility

objective impossibility In this scenario, the parties to the contract are discharged from their duties on the grounds of objective impossibility. A situation in which the courts find objective impossibility is subsequent illegality. If the law changes after a contract is made, rendering the performance of the contract illegal, then the contract is discharged.

impossibility of performance

objectively determined, not subjectively --> destruction of subject matter --> death or incapacity of party --> subsequent illegality

Why is it important to give notice of assignment ASAP?

obligor may perform under original contract with assignor and once this is performed obligations are fulfilled and there is no longer a contract --> assuming there is no notice given to the obligor

duress

one party forced into an agreement by the wrongful act of another. threat must leave no reasonable alternatives so that free will is removed ex: physical coersion, economic coersion, criminal charges

undue influence

one person takes advantage of dominant position in a relationship to persuade another to interfere with his or her ability to make a decision

fiduciary

one with duty to act primarily for another person benefit

Who can sue on third party beneficiary contracts?

only intended beneficiary, or third party who contracting party intended to benefit. Not incidental beneficiary (speaking skills arent taught, students have a poor speaker due to it, students cant sue) third party beneficiary can sue promisor promisee can sue promisor

Who can sue on third party beneficiary contracts?

Businesses have social responsibilities that they need to honor because they:

operate in a community that has expectations from the businesses.

If a buyer decides to terminate a contract because the seller changes the price of the contract without the knowledge of the buyer, then the contract is discharged by:

operation of law.

subsequent modifications

oral or written modification after the original contract AND clearly indicates later modification unless modification is written statue of frauds OR original contract terms require modifications in writing

delegator remains liable to who?

original contract if 3rd party to whom duty was delegated does not perform

In discharge of a contract by novation, the:

original parties to the contract and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged.

In discharge of a contract by novation, the: parties to the contract mutually agree to discharge each other from the contract. original parties to the contract and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged. original parties to the contract mutually agree to discharge each other from the contract by substituting a new agreement. parties to the contract agree that one party will perform her or his duty differently from the performance specified in the original agreement.

original parties to the contract and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged. In novation, the original parties and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged. The original duties remain the same under the contract, but one party is discharged and the third party now takes that original party's place.

The _____ makes oral evidence of an agreement inadmissible if it is made before or at the same time as a writing that the parties intend to be the complete and final version of their agreement. equal dignity rule parol evidence rule collateral agreement rule mirror image rule

parol evidence rule The parol evidence rule, a common law rule, makes oral evidence of an agreement inadmissible if it is made before or at the same time as a writing that the parties intend to be the complete and final version of their agreement. Parol in "parol evidence rule" means speech or words, specifically words outside the original writing.

precedent

past decisions in similar cases that guide later decisions

tresspass to realty

physical invasion of someones property or throw something onto their property, refuse to leave or refuse to take item off (dont have to have boundary lines)

The doctrines of res ipsa loquitur and negligence per se have been adopted by courts to primarily aid the _____ in negligence suits. defendant jury plaintiff state

plantiff The plaintiff has the burden of proving all four elements of a negligence case. Direct evidence of negligence by the defendant, however, is not always available. Therefore, two doctrines have been adopted by courts to aid plaintiffs in establishing negligence claims: res ipsa loquitur and negligence per se.

expressed assumption of risk

plantiff expressly assumes the risk (liability waiver)

implied assumption o risk

plantiff implicably assumes risk (baseball game, could be struck by ball)

modified comparative negligence

plantiff must show that defendant is atleast 50% at fault for the negligence.

assumption of risk

plantiff willingly assumed the risk of harm that the defendant caused

comparative negligence

plantiffs conduct fell below standard of care, that action contributed to what occured, plantiff will receive award but will be reduced based on what percentage they cause themselves

contributory negligenct

plantiffs conduct fell below standard of care, that action contributed to what occured, plantiff will receive nothing. surgery wasnt performed well, but you didnt do physical therapy and went water skiing right after

A shipping corporation supporting the campaign of an Ohio congressman for the post of governor would be protected by the First Amendment under the category of _____. commercial speech corporation speech political speech electoral speech

political speech The First Amendment protections apply to corporations when they engage in political speech; that is, they support political candidates or referenda. Corporations are not treated as the "creatures of the law," but rather as "associations of citizens" that deserve the same free speech rights as individuals.

Courts of Original Jurisdiction

power to hear the case when it first gets into the legal system (trial courts) Ohio- Court of Common Pleas, County Court, Municipal Court, District court Deals with issue of law and of fact (law- can you sue a cop for giving you a ticket, fact- light red or green?)

special duty

premises liablility- defendant owns real estate, duty owed to individuals based on who owns the property?

A _____ is an agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other party's property. coverture arrangement prenuptial agreement cartel arrangement nondisclosure agreement

prenuptial agreement A prenuptial agreement is an agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other party's property. While mutual promises to marry do not fall within the statute of frauds, prenuptial agreements do.

The Fourteenth Amendment to the U.S. Constitution: protects individuals from unreasonable government searches and seizures. protects corporations against self-incrimination. provides individuals with the right to privacy. prevents states from denying the equal protection of the laws to any citizen.

prevents states from denying the equal protection of the laws to any citizen. The Fourteenth Amendment to the U.S. Constitution contains the equal protection clause, which prevents states from denying "the equal protection of the laws" to any citizen. This clause combats discrimination because it applies whenever government treats certain individuals differently than other similarly situated individuals, usually through a classification scheme.

agents tortious conduct, principal directly responsible if

principal directs agent to commit tortious act principal ratifies the agents act knowing that the agent acted improperly OR principle fails to provide proper instruments, torts, or adequate instructions

stare decisis

principal of following the precedent established by courts of equal or higher authority to the court hearing the case (let the decision stand)

respondent superior

principle/employer liable if employee wrongfully injures third party (negligently or intentionally) principle/employers also liable for negligent hiring or supervision (not because they're personally at fault, but because they negligently hired agent)

clayton act

private action provision- if injured in his business or property by anything forbidden in antitrust- laws may recover three fold (damages sustained, cost of suit, including reasonable attorneys fee)

False claims act

private citizens bringing suits on behalf of the government against those defrauding the government

foreign corrupt practices act

private individuals or entities cannot bribe foreign official to keep, get, or maintain business

Haru, a successful restaurateur from New York, wanted to expand his business to Houston, Texas. He was, however, unable to get a license from the regulatory authorities in Houston on the grounds that he was a nonresident. This is a blatant violation of the: contract clause. privileges and immunities clause. dormant commerce clause. full faith and credit clause.

privileges and immunities clause. This is a blatant violation of the privileges and immunities clause. The privileges and immunities clause prohibits states from discriminating against citizens of other states when those nonresidents engage in ordinary and essential activities. For example, according to the privileges and immunities clause, a state cannot prohibit nonresidents from opening restaurants in the state.

only those in the ____ of the contract have rights to the contract

privity

manufacturing defect (strict liability)

product differs from all other that came off the assembly line in a way that makes it more dangerous than consumers would expect (radioactive tickle me elmo)

information defect

product has inherent risks that cannot be designed out consumers are unaware of these risks product lacks adequate warnings

promissory estoppel (Jerry Maguire contract)

promisor makes a promise promisor knows or should know that promisee will reasonably rely promisee does reasonably rely must enforce promise to avoid injustice

misplaced property

property owner has intentionally placed property somewhere, but has forgot where it is

lost property

property that true owner unknowingly/accidentally dropped or left somewhere

Title VII Civil Rights Act 1964/1991 Protected classes

protects against race, color, religion, national origin, gender

what must bailor do?

provide bailee with agreed upon compensation for bailment bailor must reimburse bailee for anything necessary

federal employment laws

provide minimum level of protection for employees. states may give employees more rights, but not fewer, than they have under FED law

In case of a bailment, it is the bailor's duty to: return the bailed property in same condition at the end of the bailment. use the bailed property only as stipulated in the bailment agreement. provide the bailee with any agreed-on compensation for the bailment. retain the bailed property till the bailee wishes him to.

provide the bailee with any agreed-on compensation for the bailment. The bailor has two fundamental duties. One is the duty of compensation and reimbursement. This duty requires that the bailor provide the bailee with any agreed-on compensation for the bailment. such as a valet being paid to take care of your car

necessity (aff def)

reasonably necessary choice between two evils

If an offer merely authorizes certain modes of acceptance but does not condition acceptance on the use of those modes, use of an unauthorized means of acceptance:

results in a contract only after the acceptance is received by the offeror.

Courts of appellate jurisdiction

reviews previous judicial decisions to see if the previous court made a mistake. Circuit courts (there are 11 plus DC, we are in sixth district) Typically only deal with questions of law

What cant you assign?

rights that are personal in nature rights whose assignment would increase the obligors risks or duties right whose assignment is prohibited by contract rights whose assignment is prohibited by law or public policy (ex: marriage)

statute

rules and regulations put forth by the legislature (federal, state, local ordinance)

voluntary transfer

sale and repurchase gift- no consideration given to transferor

partially disclosed principle

same as above, but doesnt know who principle is

motion for judgment and not withstanding the verdict

say the jury lost its way and reasonable people would not have made that decision

4th amendment

search and seizure, right to be secure in persons, homes, papers, and effects against unreasonable searches and seizures. generally need warrant and probably cause, although there are many exceptions (biggest one, consent) other exceptions-search incident to lawful arrest, plainview, terry stop and frisk, pervasive regulation (admin agency is allowed to search places that have long history of regulation) search- violates someones reasonable expectaiton of privacy or physically intrudes into a constitutionally protected area seizure- reasonable person does not feel free to leave under the circumstances

A contract is referred to as a(n) _____ when a court can void the illegal part of the contract and enforce the rest as long as they represent the main purpose of the original agreement.

severable contract

Lily asked her boss, Duke, for a hike in salary on the basis that she had successfully completed two important projects in the past six months which might otherwise have taken at least a year to complete. Duke was impressed with her performance but asked her to meet him upstairs later at night in his apartment to discuss the matter further. There were other instances when Lily found Duke getting physically too close to her. On Lily's refusal to meet at his apartment, Duke declined her request for a raise. This is an example of: disparate treatment. disparate impact. sexual harassment. unintentional discrimination.

sexual harassment Sexual harassment is defined as "unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature" that implicitly or explicitly makes submission a term or condition of employment; makes employment decisions related to the individual dependent on submission to or rejection of such conduct; or has the purpose or effect of creating an intimidating, hostile, or offensive work environment.

prima facie case

show member of protected class applied and qualified rejected/fired/not promoted etc AND sometimes similarly situated comparator outside protected class

oligopoly and tacit collusion

small amount of firms, high barriers to entry (time warner cable) agree to adopt most favors nations clause- agree to match each others prices, this is agreement

conversion

so trespassed that it has none of its original use (destroyed). damages paid have to be full value of property

license

social gues, permission, no economic benefit on the landowner. duty of concealed conditions that you as the landowner know about in advance

RICO Act (racketeer influenced and corrupt organizations)

some crime engaged in some organization, can prosecute large groups.

The tort of unfair competition exists when: competitors of a business firm price their products higher than that of the firm. popup advertisements for a competing business appear on a company's website. someone enters an industry with the sole intent of driving another firm out of business. other businesses sell products of higher quality in the same industry in which a firm operates.

someone enters an industry with the sole intent of driving another firm out of business. The tort of unfair competition exists because U.S. law protects businesses acting on the profit motive. Thus, when someone enters an industry with the sole intent of driving another firm out of business, the law punishes this act as unfair competition.

A durable power of attorney: grants the agent express authority only over specifically outlined acts. is terminated on the principal's death. allows the agent to conduct all business for the principal. specifies that the agent's authority is intended to continue beyond the principal's incapacitation.

specifies that the agent's authority is intended to continue beyond the principal's incapacitation. The power of attorney is a specific form of express authority, usually in writing, granting an agent specific powers. While powers of attorney tend to terminate on the principal's death or incapacitation, a durable power of attorney specifies that the agent's authority is intended to continue beyond the principal's incapacitation.

Threshold requirements- implicitly accepted

standing- causation fairly traceable to the defendants actions. redressability- courts power to do something about the issue in question (create resolution) case or controvery- xyz has happened, lets resolve ripeness- plantiff had to have suffered harm or immediate threat of harm

Taking clause

state and federal government cannot take private property unless for public use and there is just compensation (fair market value) regulatory taking-doesnt actually take it, but regulates to where you have no other economic options

states regulation of commerce

states can do this unless discriminates against interstate commerce or unreasonably burdens interstate commerce stems from dormant commerce clause: congress has not acted but also not explicitly in the constitution

Ian, a door-to-door salesman, filed a negligence case against Mark. While ringing the doorbell on Mark's front porch, he was bitten by a venomous snake that Mark kept as a pet. Ian had no previous warning of the snake being loose. In this scenario, Ian is most likely to have filed for damages under _____. intentional tort strict liability negligence per se last-clear-chance doctrine

strict liability Ian is most likely to have filed for damages under strict liability. The law holds an individual is liable without fault when the activity in which she engages satisfies three conditions: (1) It involves a risk of serious harm to people or property; (2) it is so inherently dangerous that it cannot ever be safely undertaken; and (3) it is not usually performed in the immediate community. If an animal has shown a "vicious propensity," strict liability applies and the owner of the animal is responsible for any injuries suffered in an attack by the animal.

The Food and Drug Administration (FDA) has issued a ban on a dietary supplement following research showing its role in elevation of harmful free radicals in the human body. If a Tennessee law permitted the usage of this supplement in the state, it would be a violation of the _____. submission clause dormant commerce clause supremacy clause privileges and immunities clause

supremacy clause In accordance with the supremacy clause, any state or local law that directly conflicts with the U.S. Constitution or federal laws or treaties is void.

After defendants have been arrested and told about their Miranda rights, the immediate next step in criminal proceedings would be: taking them to the police station for booking. making their first appearance before a magistrate. issuing an indictment against them. entering a plea of guilty or not guilty in court.

taking them to the police station for booking. After being arrested and read their Miranda rights, defendants are taken to the police station for booking, a procedure during which the name of the defendant and the alleged crime are recorded in the investigating agency's or police department's records.

If a person discharges his or her duty by making an offer to perform and being ready, willing, and able to perform, the offer of performance is known as a(n):

tender.

In a risk-utility test, _____. the court focuses on the usefulness and safety of design and compares it to alternative designs the court relies on the expectations and experiences of the ordinary consumer to judge a product the company seeks expert opinion regarding the manufacturing process of the product the company tests to see if the assumption of risk can be used as its defense in the court

the court focuses on the usefulness and safety of design and compares it to alternative designs The feasible alternatives test is sometimes referred to as the risk-utility test. In applying this test, the court focuses on the usefulness and safety of the design and compares it to an alternative design.

When an agent commits a crime: the principal cannot be held liable for the crime under any circumstance. he or she would be relieved from liability if the crime was committed within the scope of employment. he or she would be relieved from liability if the crime was committed to accomplish the objectives of the agency. the principal can be liable for the crime if he or she authorized the criminal act.

the principal can be liable for the crime if he or she authorized the criminal act. If an agent commits a crime, clearly the agent is liable for the crime. The only time the principal can be liable for the crime of an agent is when the principal has authorized the criminal act.

When the principal is disclosed: the third party is aware of the principal's existence but not his or her identity. the agent is partially liable because he or she is a party to the transaction. the agent is the only person who could be liable for the agreement. the principal is liable for the agreements made with the third party.

the principal is liable for the agreements made with the third party. With a disclosed principal, the agent is not liable because he or she is not a party to the transaction. Whether disclosed or partially disclosed, the principal is liable for the agreements made with the third party.

According to the takings clause, _____. all privately owned property used by the government are protected under the Fourth Amendment when government takes private property for public use, it must pay the owner just compensation, or fair market value, for his property regulatory taking of an individual's property does not warrant compensation by the government as it is not protected by the Constitution all fundamental rights of an individual should be taken away when the person is convicted in a criminal case

when government takes private property for public use, it must pay the owner just compensation, or fair market value, for his property The takings clause provides that when government takes private property for public use, it must pay the owner just compensation, or fair market value, for his property. According to the Fifth Amendment to the U.S. Constitution, a regulatory taking, entitling a property owner to just compensation, occurs when a regulation deprives the property owner of all economically beneficial uses of the land.

Auction with reserve

default, seller expresses interest in receiving offers.

Which of the following statements is true of the rights of an assignee to a contract? An assignee cannot be assigned the rights to a contract if the assignment decreases the obligor's risk or duties. An assignee is well-protected against any defenses for nonperformance the obligor may plan to raise. An assignee cannot decline an assignment under any circumstance. An assignee cannot be assigned the rights to a contract when the contract is personal in nature.

An assignee cannot be assigned the rights to a contract when the contract is personal in nature. The rights to a contract cannot be assigned when the contract is personal in nature, meaning the obligor has promised something specific to the person receiving it. Third parties cannot legally become the recipient in such situations unless the only part of a contract left to be fulfilled is the payment.

Which of the following can be considered an offer? An invitation to negotiate An expression of possible interest in an exchange A request for bids An auction without reserve

An auction without reserve In an auction without reserve, the seller is treated as making an offer to accept the highest bid and therefore must accept it.

_____ is best described as what a person will receive in return for performing a contract obligation. Recognizance Capitalization Consideration Commission

Consideration Consideration is required in every contract. It is what a person will receive in return for performing a contract obligation. Consideration can be anything, as long as it is the product of a bargained-for exchange. In a business context it is often (but not always) money.

Which of the following falls under Article 2 of the Uniform Commercial Code (UCC)? Contract for an arbitration agreement Contract for a joint venture Contract between an employer and employee Contract for the sale of a good

Contract for the sale of a good All contracts are governed by either common law or the Uniform Commercial Code (UCC). If the contract is for the sale of a good, it falls under Article 2 of the UCC; if it is for anything else, it falls under common law.

Which of the following conditions must be present for an offer to have a legal effect? Invitation to negotiate Definite and certain terms Neutral third parties Expression of interest in an exchange

Definite and certain terms Under the common law, the terms of the offer must be definite and certain. In other words, all the material terms must be included. The material terms allow a court to determine damages in the event that one of the parties breaches the contract. They include the subject matter, price, quantity, quality, and parties.

Felipe, Adam, and Shirley are neighbors. Felipe overhears Adam's offer to sell an antique clock to Shirley for $3,000. Under these circumstances, _____. Shirley cannot make a counteroffer to Adam to buy the clock for $2,500 Felipe makes a new offer to Adam when he offers to buy the clock for $3,000 Felipe accepts the original offer made to Shirley when he accepts to buy the clock from Adam for $3,000 Adam cannot make a new offer to sell the clock for $3,500 to Felipe

Felipe makes a new offer to Adam when he offers to buy the clock for $3,000 Under the given circumstances, Felipe makes a new offer to Adam when he offers to buy the clock for $3,000. If he says to Adam "I'll give you $3,000 for the clock," he is not accepting the offer but, rather, is making a new offer. The offer must be communicated to the offeree or the offeree's agent. Only the offeree (or his agent acting on his behalf) can accept the offer.

Ronald agrees that he owes a bank $10,000, as claimed by the bank. Ronald explains to the bank that he can only pay the bank $8,000 as full payment toward the money he owes. The bank agrees to accept $8,000 from him. The following month, Ronald receives his new bank statement claiming that he still owes the bank $2,000. Which of the following statements is true of this scenario? Ronald can sue the bank on the basis of breach of promissory estoppel. If Ronald does not agree to pay the remaining $2,000, the creditor may sue Ronald for the balance it believes is owed. Both Ronald and the bank can settle their dispute through an accord and satisfaction, as this is a case of an unliquidated debt. Ronald cannot be sued by the bank for nonpayment because of the different payment that has already been made by him.

If Ronald does not agree to pay the remaining $2,000, the creditor may sue Ronald for the balance it believes is owed. In this situation, if Ronald does not agree to pay the remaining $2,000, the creditor may sue Ronald for the balance it believes is owed. A creditor's promise to accept less than owed, when the debtor is already obligated to pay the full amount, is not binding.

Which of the following is true of the mailbox rule? It prohibits the formation or drafting of contracts over e-mails. It applies to offers accepted or rejected through instantaneous communication, such as over the phone, in person, or by telex. It provides that a revocation of an offer is valid as soon as the offeror places it in the mailbox. It provides that the acceptance of an offer is valid when the offeree places it in the mailbox.

It provides that the acceptance of an offer is valid when the offeree places it in the mailbox. The mailbox rule provides that an acceptance is valid when the offeree places it in the mailbox, whereas a revocation is effective only when the offeree receives it. The mailbox rule is not applicable when there is instantaneous communication, such as over the phone, in person, or by telex.

Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation? Louis has not accepted the offer as required by the offeror, and there is no contract. Louis has accepted the offer because an e-mail is a reasonable means of acceptance. The agreement between Louis and Amy will be valid but unenforceable. The acceptance by Louis will be presumed as an implied contract.

Louis has not accepted the offer as required by the offeror, and there is no contract. In this situation, Louis has not accepted the offer as required by the offeror, and there is no contract. An offeror has the power to control the means by which the acceptance is communicated, so if the offeror specifies that only a certain means of communication will be accepted, then only an acceptance by that means forms a valid contract.

Maya pays $5,000 and purchases a car from her friend, Jane. Later, Maya realizes that the car is worth less than $3000. Which of the following statements will be true if Maya plans to sue her friend? The court will hold Jane liable as she made an illusory promise. Jane will be held guilty because her action is a breach of promissory estoppel. Maya cannot sue Jane because the court seldom considers adequacy of consideration. The court will hold the contract to be invalid as it involves falsification of data.

Maya cannot sue Jane because the court seldom considers adequacy of consideration. The court does not weigh whether a party in a contract made a good bargain. The court seldom considers adequacy of consideration.

Option contract The scenario best illustrates an option contract. An offeree who wishes to ensure that an offer will in fact be held open for a set period of time may do so by entering into an option contract with the offeror. In an option contract, the offeree gives the offeror a piece of consideration in exchange for holding the offer open for the specified period of time.

_____ are best described as contractual obligations imposed by the courts in order to prevent one party from being unjustly enriched at the expense of another. Bilateral contracts Quasi-contracts Express contracts Void contracts

Quasi-contracts Quasi-contracts are sometimes called implied-in-law contracts, but they are not actually contracts. Rather, in order to prevent one party from being unjustly enriched at the expense of another, the courts impose contractual obligations on one of the parties as if that party had entered into a contract.

Which of the following is true of authorized means of acceptance of an offer? The means by which an offeree can communicate acceptance to an offeror cannot be implied from the facts and circumstances surrounding the communication. A reasonable means of communication is acceptable, even if the offer specifies that acceptance must be communicated by a specific mode. The means by which an offeree can communicate acceptance to an offeror can be expressly stated in the offer. If no mode of communication is specified in the offer, the offer is deemed void.

The means by which an offeree can communicate acceptance to an offeror can be expressly stated in the offer. The means by which an offeree can communicate acceptance to an offeror may either be expressly stated in the offer, which is called an express authorization, or be implied from the facts and circumstances surrounding the communication of the offer to the offeree.

Which of the following indicates that the terms of an acceptance must reflect the terms of an offer? The mailbox rule The near-privity rule The mirror-image rule The Ultramares rule

The mirror-image rule The mirror-image rule says that the terms of the acceptance must mirror the terms of the offer. If they do not, no contract is formed. Instead, the attempted acceptance is a counteroffer.

In which of the following cases is the assignment of rights prohibited? When the assignment increases the risk or duties the obligor would face in fulfilling the original contract When either party to a contract, which has an anti assignment clause, wants to assign his or her right to receive payment When the law necessitates an assignment in bankruptcy cases, but the contract has an antiassignment clause When a party to the contract wants to assign the right to receive damages for a breach of contract to sell goods or services

When the assignment increases the risk or duties the obligor would face in fulfilling the original contract Rights cannot be assigned when the assignment increases the risk or duties the obligor would face in fulfilling the original contract.

Which of the following conditions would terminate an offer, even if the offeree does not know of the terminating event? When the offeror and the offeree are in an option contract that is still valid When the offeror loses the legal capacity to enter into a contract When the offeree has begun performance of the action necessary to accept a unilateral offer When the offeror decides to revoke the offer made to the offeree

When the offeror loses the legal capacity to enter into a contract An offer terminates immediately if the offeror dies or loses the legal capacity to enter into the contract, even if the offeree does not know of the terminating event. If the parties had already entered into an option contract to hold the offer open for a set period of time, however, the administrator of the offeror's estate or the guardian of the offeror must hold the offer open until it expires in accordance with the option contract.

Jason agrees to buy Sara's car for $10,000. However, Sara tells Jason that she will only sell the car to him if he pays $12,000. In this scenario, Sara makes a(n): counteroffer. collective bargain. addendum. reverse bid.

counteroffer. In this scenario, Sara makes a counteroffer. A counteroffer is defined by the Restatement as "an offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer."

reasonably definite terms

all material terms are included in offer such as: --> subject matter, price, quantity, quality, parties OR --> method for determining the material term

implied contract

arises from conduct of the parties. Ex: injured in a bad car accident, implied that you/insurance will pay for the treatment

A person who transfers his or her rights to receive something under a contract to a third party is referred to as a(n) _____. creditor beneficiary assignor delegator

assignor A person who transfers his or her rights under a third party is an assignor, and the person who receives the transfer and is now entitled to enforce the rights is the assignee.

The law of contracts is primarily _____. uniform law common law statutory law constitutional law

common law The two most important sources of contract law are case law and the Uniform Commercial Code (UCC). The law of contracts is primarily common law. Today's law of contracts actually originated in judicial decisions in England, later modified by early courts in the United States.

sources of contract law

common law (services, property) UCC- contracts for the sale of goods

A(n) _____ is defined as a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty. contract statute agreement affidavit

contract The Restatement (Second) of contracts defines a contract as "a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty." Another way to think of a contract is as a set of legally enforceable promises.

executed contract

contract that has been fully performed

_____ are an exception to the common law rule requiring consideration. Option contracts Unilateral contracts Contracts under hand Contracts under seal

contracts under seal Promissory estoppel and contracts under seal are two exceptions to the common law rule requiring consideration.

elements of a contract

contractual capacity offer acceptance legal object consideration

Any consideration will do

court will generally not inquire into the adequacy of consideration --> more peppercorn will suffice, unless its sham

A void contract is: in effect not a contract at all; either its object is illegal or it has some defect so serious that it is not a contract. one that contains all the four legal elements of a contract but the law prohibits the courts from enforcing it. one in which both parties have the ability to either withdraw from the contract or enforce it. a contractual obligation imposed by the courts in order to prevent one party from being unjustly enriched at the expense of another.

in effect not a contract at all; either its object is illegal or it has some defect so serious that it is not a contract. A void contract is in effect not a contract at all. Either its object is illegal or it has some defect so serious that it is not a contract.

When the contracting parties do not intend to benefit someone but unintentionally do so, that third party is referred to as a(n): incidental beneficiary. contingent beneficiary. donee beneficiary. creditor beneficiary.

incidental beneficiary When the contracting parties do not intend to benefit someone but unintentionally do so, that third party is an incidental beneficiary. One significant difference between intended and incidental beneficiaries is that incidental beneficiaries maintain no rights to enforce other people's contracts.

Jason contracts with Kylie to paint her house. In exchange, the small amount of money that Jason owes to a local bank will be paid off by Kylie. In this scenario, the bank is referred to as the: incidental beneficiary. promisor. promisee. intended beneficiary.

intended beneficiary The bank is referred to as the intended beneficiary. A third-party beneficiary is created when two parties enter into a contract with the purpose of benefiting a third party, called the intended beneficiary. An intended beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract.

A third-party beneficiary: is created when three different parties enter into a contract with the purpose of mutual benefit. occurs when a party to a contract transfers his duties under the contract to a third party, who is not part of the original contract. is created when two parties enter into a contract with the purpose of benefiting a third party. occurs when a party to a contract transfers her rights to receive something under the contract to a third party.

is created when two parties enter into a contract with the purpose of benefiting a third party. A third-party beneficiary is created when two parties enter into a contract with the purpose of benefiting a third party, called the intended beneficiary. The beneficiary need not be named in the contract, as long as the terms of the contract or events occurring after its creation make it clear who he or she is.

mistake of fact

mutual mistake of fact will void a contract unilateral mistake will not

In an unliquidated debt, an accord is best described as the: new agreement to pay less than the creditor claims is owed. new agreement to pay more than what is owed to the creditor. acceptance by the creditor to settle the dispute through arbitration. acceptance by the creditor that he or she did not loan any money to the debtor.

new agreement to pay less than the creditor claims is owed. The accord is the new agreement to pay less than the creditor claims is owed. In an unliquidated debt, the parties either disagree about whether money is owed or dispute the amount. They can settle for less than the full amount if they enter into an accord and satisfaction.

void contract

not a contract, no legal object, or missing an element

past consideration

not consideration if in the past

The _____ states that we base the existence of a contract on the parties' outward manifestations of intent and we base its interpretation on how a reasonable person would interpret it. efficient theory of contracts social contract theory objective theory of contracts bargain theory of consideration

objective theory of contracts Contract law is based on an objective theory of contracts, which means we base the existence of a contract on the parties' outward manifestations of intent and we base its interpretation on how a reasonable person would interpret it. Thus, the subjective intent of the parties is not usually relevant.

Communication to the offeree

offer communicated to offeree or agent others can make new offers, but cannot accept original offer

For an unliquidated debt, _____. even if the debtor pays the money agreed to, the creditor may still sue for the balance it believes is owed even if the debtor fails to pay a lesser amount as agreed, the creditor cannot sue the debtor for payment debtors cannot create an accord and satisfaction by sending the creditor a check with "paid in full" written on it once the debtor pays the amount agreed on by both the parties, the debt is fully discharged

once the debtor pays the amount agreed on by both the parties, the debt is fully discharged In an unliquidated debt, once the debtor pays the amount agreed on by both the parties, the debt is fully discharged. In an unliquidated debt, the parties can settle for less than the full amount if they enter into an accord and satisfaction. Under this circumstance, the debt is fully discharged.

A key feature of a voidable contract is that: one or both parties have the ability to either withdraw from or enforce the contract. a law or statute prohibits the courts from enforcing the contract. the terms of the contract have been fully performed. its object is illegal, or it has some serious defect.

one or both parties have the ability to either withdraw from or enforce the contract. A contract is voidable if one or both parties has the ability to either withdraw from the contract or enforce it. If the parties discover the contract is voidable after one or both have partially performed, and one party chooses to have the contract terminated, both parties must return anything they had already exchanged under the agreement.

resolve ambiguity against drafter

writers clarification, interpretation of reader prevails

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