Legal Environment Final Exam

______ does not prevent an injured party from bringing civil charges against a defendant once they are found innocent in a criminal case.

Double jeopardy

Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,

Efron understood the legal consequences.

Erin indicates that she is acting as an agent on behalf of an unidentified client—Flight Services Inc.—when she enters into a contract with Go Airlines. Liability to Go for nonperformance of the contract may be imposed on

Erin and Flight Services.

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that

Ernie is under twenty-one.

A gratuitous agent can be liable to a principal for breach of contract, even in the absence of a contract, but not liable for the negligent performance of the deal.

False

A principal may be liable for an agent's or an employee's tort, with the exception of negligence, which is an unintentional tort for which the agent or employee is vicariously liable.

False

An offer must express reasonably definite terms to be effective—no term may be reasonably inferred.

False

Employers are completely prohibited from taking actions against employees, or applicants based on their social network postings.

False

Even if the defects on a piece of property are obvious, the buyer can justifiably rely on the seller's misrepresentations concerning those defects.

False

If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.

False

If contracting parties attach materially different meanings to a contract word or term subject to more than one reasonable interpretation, the contract is void.

False

One of the requirements of a valid contract is an adequate market for the deal's goods or services.

False

Shrink-wrap terms are enforceable even if a buyer does not discover them until after the parties have entered into a contract.

False

The E-sign Act applies to all types of legal documents.

False

The Safe Web Act gives any party who gives information to the Federal Trade Commission concerning possible deceptive conduct in a foreign jurisdiction, immunity from liability.

False

The doctrine of respondeat superior imposes liability for an agent's tort on a principal without regard to the personal fault of the agent.

False

The primary purpose of the Uniform Electronic Transactions Act is to create new rules for electronic contracts.

False

The privilege against self-incrimination applies to persons as well as corporations.

False

______ states that all evidence derived from illegal means, normally must be excluded from the trial proceedings.

Fruit of the poisonous tree

Bob and Jim enter into a contract where Jim will custom make curtains for Bob's living room. Bob picks out the fabric and Jim makes the curtains. He delivers them to Bob and Bob refuses to pay, and says he does not like them. On what basis can Jim enforce?

Good faith

Lumber LLC files a suit against Mill Company to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

Lumber foreseeably and justifiably relied on Mill's promise.

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Miklos's death or incapacity.

______ can excuse one from criminal liability under the theory of mistake.

Mistake of fact

Sid offers Tina, a city inspector, money to overlook health code violations in his restaurant. Tina accepts the money and overlooks the violations. Sid is charged with the crime of bribery. The crime occurred when

Sid offered the bribe.

"Fair use" includes exceptions for educational purposes for using copyrighted works.

True

A mistake of fact can often excuse criminal responsibility.

True

A person who accesses a computer online without authority to obtain protected data is subject to criminal prosecution

True

A principal who creates an exclusive agency and then competes with the agent can be held liable for the agent's lost profits or sales.

True

An Internet service provider that shuts down a subscriber who infringes copyrights, can qualify for a "safe harbor" exemption under the Digital Millennium Copyright Act.

True

Any electronic communication having to do with business, made on a device that an employer provides to an employee for use in the "ordinary course of business," is subject to employer discovery.

True

Any person can be an agent, regardless of whether he or she has the capacity to contract.

True

Criminal liability for the piracy of copyrighted materials extends to persons who exchange unauthorized copies for profit, as well as those who share without seeking profit.

True

Cybersquatting is illegal if a domain name is identical to the trademark of another, as well as if the name is confusingly similar Correct answer.

True

For the doctrine of promissory estoppel to be applied, there must be a clear and definite promise.

True

If one party to a contract has fully performed but the other has not, the contract is executory.

True

If the evidence of a defendant's guilt was obtained improperly, it normally cannot be used against the defendant in court.

True

In the context of fraudulent misrepresentation, an opinion is objective and a basis for fraud.

True

It is legal for law enforcement to set up a phony social media account to obtain information, or help catch a suspect.

True

Persuasion that induces a person to act according to the will of a dominant party is undue influence.

True

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

True

The Computer Access Device and Computer Fraud and Abuse Act prohibits cyber theft.

True

The U.S. Constitution provides safeguards that apply not only in federal, but also in state courts.

True

The greater the employer's control over the work, the more likely it is that the worker is an employee.

True

The offeree must accept the offer without adding or changing any terms.

True

Haji is arrested at a warehouse in Industrial Park and is charged with the crime of theft. Haji will be prosecuted by

a district attorney or an attorney general.

Sam, driving under the influence, causes a car accident that results in the death of Tanya. Sam is arrested and charged with a crime punishable by imprisonment for more than a year. This crime is

a felony

Bey indicates that he is acting as an agent on behalf of an unidentified client—Cuisine LLC—when he enters into a contract with Diners Bistro. Cuisine is

a partially disclosed principal.

Luis hires Mieko to act as his agent to buy Ngoc's Southeast Asian Café. Luis tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Luis is

a partially disclosed principal.

Red offers to pay Sara to deliver certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have

a unilateral contract.

Data, Inc., offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is that

a unilateral mistake does not afford relief from a contract.

Main St. Market, Inc., and Natural Food Corporation discuss the terms of a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Between these parties, the e-mails are

a written contract.

Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by

agreement

Without authorization, Lars contracts on behalf of Mina to have Nemo paint Mina's Boutique. If Mina decides to ratify the contract, she must affirm

all of the contract.

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is

an employee.

Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one-year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

an offer and an acceptance.

Vera is a purchasing agent for Wild-Caught Fish Inc., with the authority to buy a sea fisher's catch up to a certain quantity. After the fish is bought, the agency relationship terminates

automatically.

ConnectWeb, Inc., operates a subscription-based service that extends the software and data storage capabilities of its subscribers. This is an example of:

cloud computing.

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward but finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of

communication

Jay transfers downloaded musical recordings, without the copyright owners' authorization, from his phone to his friends' phones. Jay does not charge his friends for his "service," nor did he pay for downloading the music. This is an example of:

copyright infringement.

Gary drives a truck as an employee for Hauling Inc. Gary would most likely be considered acting outside the scope of her employment if he

crashed into a car at the airport while off duty.

Kohl receives from Lily a camera stolen from Mark. Kohl knows that the camera is stolen, and he intends to keep it. Kohl is

criminally liable.

Web Invest Inc. buys and sells domain names with the click of a mouse. The high rate at which domain names change hands, and the difficulty in keeping track of mass automated registrations, have created a situation where:

cybersquatting can easily flourish.

Posting on social media can affect: (choose all applicable answers)

damages awarded in a lawsuit, prior settlement agreements, criminal investigations.

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is

effective

Olinda, an employee of People's Bank, deposits into her account checks entrusted to the bank through its ATM system by customers to deposit into their accounts. This is

embezzlement.

Quay, the owner of RV Park, trusts Sara to manage the resort's daily cash flow. One night, without Quay's knowledge or consent, Sara takes and keeps $1,000 from the receipts. This is most likely

embezzlement.

These things would indicate an employer/employee relationship and not an independent contractor (choose all applicable answers)

employer provides tools for the job.

Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben's authority can be inferred

from the position Ben occupies.

Without a legal framework of reasonably assured expectations within which to make plans, businesspersons would most reliably be able to count only on others'

good faith

Barry purchases some goods online from Acme Corp. He had clicked the accept terms box on the website when purchasing, which included a dispute resolution agreement that all disputes be sent to arbitration. He is unhappy with the product and injured by it. He brings a lawsuit in court against Acme Corp, and Acme files to dismiss based on the arbitration agreement. Barry will:

have to pursue arbitration for his dispute.

BeFriends Corporation uses the trademark of Community Life Inc., a social media site, as a meta tag without Community Life's permission. This may be permissible:

if it is shown to be reasonably necessary for BeFriend's business.

Pia registers a domain name—quallitytires.com—that is confusingly similar to the domain name qualitytires.com used by Quality Tires Inc. Quality Tires Inc. also owns the trademark of quality tires. Pia has a "bad faith intent" to profit from the domain name by selling it to Quality Tires. This would be:

illegal by cybersquatting.

Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence. Jett may be liable to Key if Ira's conduct occurred

in the course and scope of Ira's employment.

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be

in writing or evidenced by a written memorandum.

Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues Jon for breach. Jon's right to hold Kino liable for any damages is the right to

indemnification.

Bud works at a Cheap Stuff Store from which, without authorization, he takes merchandise that he has not paid for home for his own use. This is

larceny

Emmett, an agent for Fridley, signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is

liable, because notice to Emmett is notice to Fridley.

Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent

no more

Mix Restaurant Corporation owns the trademark "Mix." Remix Café Company begins to use the mark without authorization as their domain name. Mix files a suit against Remix on a theory of trademark dilution. This claim requires proof that:

no proof is necessary.

EcoEnergy LLC files a suit against Fiber Optics, Inc., claiming that the consideration for their contract is inadequate—that the plaintiff will not realize sufficient financial benefit from the deal to make it worthwhile. Most likely, the court will

not question the adequacy of consideration.

The Racketeer Influenced and Corrupt Organizations Act has become an effective tool in attacking

organized crime

Employees, clients, and others with authorization, use World Transport Corporation's network around the globe to share computer files. This is: (choose all applicable answers)

peer-2-peer (P2P) networking, a distributed network.

Erica, a police officer, wants to search the offices of Debit & Credit, Accountants. She asks Judge Bern to issue a warrant. No warrant for a search can be issued without

probable cause

Rosa, who operates a Street Tacos restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. To obtain a conviction, the prosecution must

prove beyond a reasonable doubt that Rosa committed every essential element of an offense.

Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely

reform the covenant.

Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva pays Uzo for specially coded software. Suva's right to obtain the amount of the payment from Tax Accountants arises under the duty of

reimbursement.

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will pay $75,000." Hanna has

rejected the offer and made a counteroffer.

Niles enters Omelet Café and points a gun at the cashier Pico. Niles forces Pico to open the register and give him all the money. Niles will most likely be charged with

robbery.

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

still liable on the bid.

Fara hires Gil, a real estate broker, to act as her agent to sell her land for $150,000. Before the land is sold at the stated price, oil is discovered beneath it, causing its market value to increase considerably. The agreement between Fara and Gil is likely

terminated by operation of law.

Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

the contract is not enforceable

Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is

the degree of the employer's control over the details of the work.

Energy Company employs Fred to negotiate the purchase of mineral rights for future mining projects. Fred secretly buys some of the property and sells it to Energy at a profit. Fred has breached

the duty of loyalty.

Physicians Clinic orders by phone seven cases of single-use latex gloves from Quality Medical Supplies, Inc. After three cases are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to

the extent of the three accepted cases.

Cindy, a real estate agent, sells her friend Doug's house without charging a commission. In return, Doug promises to give Cindy $1,000. This promise is not an enforceable contract because

the house has already been sold—the consideration is past.

Because of the loss of significant amounts of revenue as a result of unauthorized digital downloads, file-sharing has created problems for: (choose all applicable answers)

the motion picture industry, recording artists and their labels, the companies that distribute file-sharing software.

Big Dig LLC makes an offer to perform an excavation and related tasks for Commercial Development Corporation, but due to a substantial mathematical mistake, significantly underprices the work. Commercial accepts the offer. Data Big's best defense against enforcement of the contract is that Commercial knew

the price was below the prices of comparable services.

Maya and Nick enter into a contract. To be enforceable, the contract must include

the signature of the party against whom enforcement is sought.

Interactive Entertainment Corporation markets its products online. Through the use of cookies, Interactive Entertainment and other online marketers can:

track individuals' Web browsing and shopping activities.

Afford Motors LLC, an auto broker, uses the trademark of Ford Motor Company in a meta tag without Ford's permission. This is an example of:

trademark infringement.

Under a contract with River Valley Farm, Sancho begins grading a terraced hillside for planting. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." The farm agrees, but later refuses to pay. The agreement to pay more is

unenforceable, because Sancho's performance was a preexisting duty.

A lease between Mia and Niles for residential property contains an exculpatory clause. This clause is most likely

unenforceable.

Oceans, Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

void

Sal is mentally incompetent but has not been adjudged by a court to be incompetent. Sal enters into a contract with Tony for the cleaning and maintenance of Uptown Office building. Most likely, the contract is

voidable if Sal did not comprehend the consequences.

Odell is an employee of Packing Corporation. She uses social media in a way that violates her employer's stated social media policies. Packing Corporation disciplines Odell, and then fires her after a second transgression. This is:

within the employer's rights.