Legal Environment of Business

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A tort case, by definition, is a criminal wrong.

False

A voidable contract creates no obligation and is not enforceable by any party.

False

Pursuant to the holding in Hudson v. Michigan, 547 U.S. 586 (2006), if a police officer violates the knock-and-announce time rule (e.g, no entry before 15 seconds or more) when entering a home with a valid warrant, any incriminating evidence discovered as a result of the violation must be suppressed at trial pursuant to the exclusionary rule?

False

Smaller cases are handled by state county courts, while bigger cases are sent to federal courts for resolution.

False

Tara raises horses and promised to give her best friend's niece a pony. Tara advised the girl's father, Jon, that he would need to enclose a section of his property to keep the pony safe and recommended a specific type of fencing. Jon bought the recommended materials and had the fence built on his property. Tara got into a fight with her best friend and now refuses to give Jon's daughter the pony. Tara will be liable to Jon for the cost of fencing his property based on the theory of ______.

Promissory estoppel

"Federalism" means:

States or provinces are sovereign but they share sovereign power with a national government

A legal theory that imposes liability even if the defendant acts with all reasonable care and caution is called:

Strict Liability

Pink offers to landscape Mr. Green's yard for $100. Mr. Green is planning to say yes but before he has a chance to communicate with Ms. Pink, he receives a text message from her indicating she has rescinded her offer due to her being too busy. Ms. Pink has effectively revoked her offer.

True

Sellers at auctions are generally treated as conveying an invitation to a person to make an offer.

True

Sometimes, one act can lead to liability for a crime and liability for a civil tort action?

True

Sometimes, one act can separately lead to both criminal liability and liability for a civil tort action?

True

The doctrine of res ipsa loquitur can be translated as:

"the thing speaks for itself."

Under Indiana's limitation on punitive damages, if a jury awarded Bob $75,000 in punitive damages but $10,000 in compensatory damages, how much of that punitive damage award would he receive?

$12,500

The standard of proof, "beyond a reasonable doubt," is generally viewed as corresponding to what percentage of certainty that must exist to convict a person of a crime?

95%

The marriage provision in the Statute of Frauds requires a writing in which one of the following circumstances in order to ensure enforcement:

A prenuptial agreement

In a tort case, which best describes the burden of proof that the plaintiff must meet?

A preponderance of the evidence

The burden of proof needed to win a contract case is:

A preponderance of the evidence.

If you read an article in the newspaper about a lawsuit in which the Indiana Attorney General's Office sued on Indiana's behalf a telemarketer for violating the "Do Not Call Registry," you know this case is:

A public case

All of the following are requirements to acquire a search warrant that comply with the Fourth Amendment except one. Which one?

A reasonable suspicion

A(n) ______ shields the author of a defamatory statement regardless of his/her knowledge, motive, or intent.

Absolute truth

Which of the following instances is a sufficient reason to cause commercial impracticability? The cost of performing the contract spikes because of new and unforeseen government taxes The cost of performing the contract spikes because of new regulatory hurdles The cost of performing the contract increases because of an unexpected spike in raw material prices All of the answers are correct

All of the answers are correct

An auctioneer says, "May I have an offer?—$500? $450? $450! I have an offer for $450. Do I hear $475? May I have an offer?" This is a "without reserve" auction. Before the auctioneer's hammer is struck, the auctioneer's statement is:

An invitation to bid

Force majeure (i.e., a French word meaning a major unforeseen event or superior force, and a word I have trouble pronouncing) may include:

An unforeseen war, natural disaster, strike, COVID 19, and many other unexpected events.

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. When Happy & Sad Law Firm learns that WBCC cannot complete the contract within the times specified in it, and can complete the project only late, Happy & Sad Law Firm sends a letter to WBCC telling it that the firm is going to walk away from the contract and seek a more reliable contractor to finish the project. This letter is an example of:

Anticipatory repudiation or anticipatory breach of contract

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. What damages are allowed for the Happy & Sad Law Firm if they sue the WBCC for breach of contract? Pick the best answer (read the answers carefully).

Any consequential expenses incurred finding another contractor to finish the project and changing the grand opening date, plus, any incidental difference in the price of the project charged by the new contractor and that charged by the old contractor if the new price is higher, plus punitive damages for intentionally breaching the contract

Lynn was shopping at Wal-Mart when she slipped on a piece of lettuce and fell. The store was aware of the dirty floor. What level of duty does Wal-Mart owe Lynn?

As an invitee, a reasonable duty of care under the circumstances and a duty to warn about hazards.

Which of the following is not an example of a business invitee? Customers Delivery Persons Patrons Attendees of a free public lecture

Attendees of a free public lecture

As defined in this course, what is the difference between assault and battery in a civil case?

Battery involves nonconsensual offensive touching and assault does not.

The burden of proof that the prosecution must satisfy to sustain a criminal conviction in a criminal case is best described as:

Beyond a reasonable doubt

Which of the following is NOT one of the four distinct torts that make up the invasion of privacy cause of action? Public Disclosure of Private Facts Breach of Contract False Light Publicity Intrusion on Solitude

Breach of Contract

A contract must be between parties who have ________ to contract.

Capacity

Catherine decided to have lunch at Tom's, one of the most popular restaurants in town. She ordered soup before her main course. The soup served to Catherine contained a maggot floating about in it. Fortunately, she noticed this before she ate it. She sued Tom's for negligence. Catherine lives in a state that recognizes the impact rule. The most likely result will be:

Catherine will not win since she did not sustain any damages.

A legal claim for breach of contract is a:

Civil Case

Aladdin and Jafar were involved in an automobile accident. Aladdin's car, worth $10,000, was destroyed. Jafar suffered no personal injuries or property damage. The case went to the court and a jury determined that Aladdin was 30% at fault and Jafar was 70% at fault. Under what legal theory would Aladdin be able to recover $7,000 from Jafar?

Comparative Negligence

Which form of damages is intended to give the victim of the breach of contract the "benefit of his bargain"?

Compensatory

What type of damages are awarded to an injured party in a tort case to cover damages for the harm that the injured party suffered?

Compensatory Damages

Which best defines negligence?

Conduct that falls below a reasonable level (i.e., standard) of care to avoid harm.

The ____ Amendment forbids cruel and unusual punishments.

Eighth

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. After WBCC is forced to leave the project due to its breach, it still wants payment for its partially completed work. Which is true?

Even though WBCC is in breach, they can file an equity claim with the court, requesting payment for the value of the work they did on the project to prevent unjust enrichment (the doctrine of partial performance)

Which of the following is least likely to create liability for form of invasion of privacy intrusion on personal solitude or seclusion?

Examining public records concerning a person.

Assume that two individuals have entered into a contract for the sale of "screws." The buyer of the item mistakenly thinks the term "screws" means just Phillips-head screws, when in fact the term really means any standard type of screw including flat-head screws. The seller believes he is fulfilling the contract when he ships both Phillips- and flat-head screws to the buyer. If the buyer can show a court that he alone made an honest mistake regarding the meaning of the term "screws" when entering into the agreement and that the non-mistaken party (i.e., the seller) had no reason to know about the mistake to take advantage of it, the contract will likely be voided (i.e., rescinded or cancelled) under a theory of unilateral mistake rather than the contract being reformed (i.e., rewriting the contract's agreement).

False

Based on the facts in question 24 regarding Doug and Phil, above, in a summary-judgment proceeding before the civil court handling Phil's lawsuit, Phil loses his lawsuit against Doug and the case is dismissed "with prejudice" (this means that the lawsuit can never be refiled). Because of Doug's victory in civil court, his criminal charges for illegal possession and use of narcotics must also be dismissed?

False

Because a promise is a promise, every promise is legally enforceable.

False

Burning the U.S. flag has been ruled to be hate speech and speech akin to "fighting words" by the U.S. Supreme Court and laws, like the 1989 Flag Protection Act, criminalizing the desecration of the U.S. flag, have been upheld by the Supreme Court.

False

David offered to sell his used wagon to his neighbor Ted for $600. Ted asked David if the wagon works okay and David said, "I'm selling it 'As Is'." David decided to write a contract to put their agreement in writing. The entire agreement is written as follows: "Sale of good wagon by David to Ted for $600." Both parties signed the agreement. Neither party are merchants. A week later, an axle breaks, and Ted tells David he wants his money back. David says, "I sold it 'As Is'." And Ted replies, "It doesn't say 'As Is' in our contract, so you did not sell it 'As Is'." The agreement between David and Ted, non-merchants, to sell a good at any price generally does not need to be in writing in order to be enforced by a court?

False

Generally advertisements for the sale of goods at specified prices are considered to be offers.

False

If one party threatens to commit battery on another individual tomorrow, then this is an assault today.

False

If you can prove (by a preponderance of the evidence) that you were voluntarily intoxicated when you signed your student loan agreement, you can probably void the contract.

False

In a criminal case, the defendant carries the ultimate burden of proof (that is, the ultimate burden of persuasion)?

False

Indiana's very broad merchant statute, Code § 35-33-6- 2, permits a retail store owner to detain a customer suspected of shoplifting and conduct a strip search in order to determine whether the person has in their possession unpurchased merchandise taken from the store.

False

Only written agreements are enforceable.

False

The Contract Clause of the U.S. Constitution (Article I, § 10, cl. 1) prevents the federal government from passing any law that retroactively impairs "the obligation of contracts"?

False

The UCC applies only to sales of goods AND commercial parties (that is, merchants).

False

The only way a director or officer of a corporation can be held responsible for crimes related to corporate activity is for the prosecutor to prove beyond a reasonable doubt that the director or officer was personally aware of what was going on?

False

Under Indiana law, Code § 35-41-2-3, corporate crimes are harder to prosecute because the prosecution must prove that the corporation benefited from committing the crime?

False

Which of the following is most likely to involve both defamation liability and liability for putting a person in a false light? Falsely saying that an anti-abortion activist favors a candidate that is conservative and is anti-abortion. Saying that a philosopher favors Plato's philosophy over Aristotle's, when in fact the reverse is true. Signing a conservative Christian clergyman's name to a petition advocating greater sexual freedom for homosexuals which the clergyman supports the petition in private. Falsely saying that an anti-abortion activist favors giving parents a right of infanticide for all children less than one year old.

Falsely saying that an anti-abortion activist favors giving parents a right of infanticide for all children less than one year old.

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. Once WBCC it forced to walk away from the project, which is true?

Happy & Sad Law Firm can immediately sue WBCC and is free to find another contractor to finish the project

To say that a citizen has the right to due process in the American criminal law system means that an individual has the right to:

Have their case heard before a jury, be given all of their Boykin rights, be represented by a lawyer, and be told what charges are being brought against them.

What is the Doctrine of Impracticability?

Impracticability occurs when a party fails to perform his contractual obligations because an unexpected event makes performance difficult.

While reading the newspaper, you note a case that is being decided by the Indiana Supreme Court. From this information, you know the case is in:

Indiana's highest state appellate court

In order to be guilty of a crime that requires proof that the defendant had a specific intent to commit the crime, there must be evidence proving that the defendant:

Intended to commit an act and intended the resulting bad consequences of that act.

________ is defined as the desire to cause certain consequences or the substantial certainty that those consequences will result from one's behavior.

Intent

Which tort requires behavior that is "so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency?"

Intentional Infliction of Emotional Distress

While reading the newspaper, you note a case that is being handled by the U.S. District Court in Hammond, Indiana. From this information, you know:

It is a federal trial court case.

When reading a news article about a lawsuit, you note that it was filed in the St. Joseph County Superior Court. From this you know:

It is a state trial court case.

Which of the following is true regarding promissory estoppel?

It requires reasonable reliance on the promisor's promise

John and Cathy were married in Indiana and moved to New York a year later. Eleven years after being married, John and Cathy decided to separate. Cathy moved to Mobile, Alabama and then, unbeknownst to John, filed for divorce in an Alabama state court. A few weeks later, John visited Pensacola, Florida, on business. Mobile and Pensacola are approximately 60 miles apart. Cathy learns of John's visit to Pensacola from friends. Cathy emails John and invites him to drive to her apartment for dinner and to discuss a possible reconciliation. When John arrived at his wife's apartment, she served him dinner. During dessert, a county sheriff arrived at the apartment and served John with an Alabama court summons and a copy of the divorce petition. John immediately left the apartment and eventually returned to New York. Cathy does not dispute John's description of events. Which of the following statements accurately describe the Alabama court's jurisdiction over John?

John can object to the Alabama court's jurisdiction because he was coerced into the jurisdiction through fraudulent means.

Smith and Jones are in a car accident at a traffic light. Smith says that he had the green light and Jones says that she had the green light. Both parties have witnesses to support their side of the story. The jury finds that Smith was drunk while driving and decides that he is at fault in the case with Jones. What kind of damages can Jones ask that the court impose on Smith in this case?

Jones can ask for compensatory damages.

State X has a "Sunday Closing Law" making it a crime to operate a retail business on Sundays. The law's legislative history reveals that it was enacted to promote respect for the Sabbath by all the people of the state, and thus to promote public decency and morality. One Sunday, Judy Smith slips on a puddle of spilled soft drink at Joe's Hamburger joint (which is operating in violation of the statute), and suffers an injury to her spine. The soft drink would not have been spilled if the store had not been open on Sunday. Judy sues Joe in negligence. One part of her arguments for recovering damages for her fall relies on the doctrine of negligence per se. Under the doctrine of negligence per se:

Judy will not recover because she did not suffer harm of a kind that the statute was intended to protect against.

Puss Killian agrees to rent a houseboat named the Busted Flush from Travis McGee for the month of June, beginning the first of that month. Because McGee's spare cash he keeps in the Flush's hidden safe has run low, he plans to be away from the boat, as well as Florida, in June. He will be away "consulting" on a "salvage" case (his euphemisms for acting as a private investigator). Killian pays a $600 deposit and will pay the balance of $4,400 on June 1st. On May 15th, a fire of suspicious origins renders the Flush uninhabitable for the foreseeable future. If the contract has been rendered legally non-performable, does Killian have to pay the balance of $4,400, which was due on June 1st, and can she recover her $600 deposit from Travis? Which answer is true?

Killian can recover the deposit and she does not have to pay the balance $4,400 due on June 1st. based on the doctrine of impossibility.

What is a statute?

Laws made by Congress or state legislatures.

Lex Corp. owns an apartment complex at which break-ins and other prior instances of super-villain criminal activity had occurred. Despite the owners being aware of these problems, the owners have instituted no security-related measures to combat them. As a result, Gorilla Grodd, a member of the Legion of Doom, easily enters the complex and physically attacks a tenant. Which of the following is true?

Lex Corp. is liable for proximate and actual cause.

What is the difference between libel and slander?

Libel is written defamation and slander is verbal defamation.

Which of the following parties enter a property with the possessor's consent, but for his/her own purpose?

Licensee

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. The contract between Happy & Sad Law Firm and WBCC contained a provision that said, "In the event of a material breach by either party, the amount of damages shall equal $55,000." This is an example of a:

Liquidated damage clause

Ordinances are created by:

Local legislative bodies

On May 1, Dix and Wilk entered into an oral agreement by which Dix agreed to purchase a small parcel of land from Wilk for $450. Dix paid Wilk $100 as a deposit. The following day, Wilk received another offer to purchase the land for $650, the fair market value. Wilk immediately notified Dix that Wilk would not sell the land for $450 and refunds his deposit. If Dix sues Wilk for specific performance, Dix will:

Lose, because the agreement was not in writing and signed by Wilk as required by the Statute of Frauds.

If the Fifth Amendment to the United States guarantees that you cannot be tried twice for the same offense (e., "[N]or shall any person be subject for the same offence to be twice put in jeopardy of life or limb..."), how was Terry Nichols successfully tried twice for his role in the Oklahoma City bombings?

Nichols was tried in federal court for violating federal law, then later tried in state court for violating state law.

Calvin, a resident of South Park, Colorado, creates a website called "But Seriously" which acts as an electronic billboard for posting funny stories. Ted, a resident of Northridge, California, posts a story on the website. Stu, another California resident from San Diego, files a lawsuit against Calvin in a federal district court in California, claiming that Calvin had defamed him on his website. Based on these facts, does Calvin have sufficient "minimum contacts" to give the California federal district court in personam jurisdiction over him?

No, Ted's posting alone is not enough to create sufficient "minimum contacts."

Adam published his personal opinion about the current condition of politics stating, "Though the government is unable to fulfill the demands of the public, they demand votes; they really are beggars on streets." Can politicians successfully sue him for defamation under tort?

No, because statements of pure opinion do not amount to defamation.

Circle City Auto ran a contest to give away a new Mini Cooper automobile. To win a chance at the car, an individual had to come in and test-drive a new car and fill out an entry form. Bo decided to go to the dealership where he test-drove the Mini Cooper and entered the drawing. Suppose wording appears on the bottom of the contest entry form that says, "The winner must claim the prize by midnight on June 1st. If no winner claims the car by that time, a second name will be drawn." Bo's name is drawn as the winner and posted in the Circle City Auto show room, but Bo did not realize that he won the new Mini Cooper until someone told him on June 2nd. Which is the best answer as to whether Bo has a valid claim for the prize?

No, claiming the prize on time is a material term that Bo failed to satisfy.

Professor Charles Xavier contracts to sell the Xaiver Institute and its surrounding acreage to Erik Lehnsherr for $10,000,000. Professor X breaches the contract and Erik sues him. The Xaiver Institute's reasonable market value at the time of the breach was $10,025,000. Erik did not make any preliminary payments before the breach. What amount can Erik recover?

Only $25,000

Grandma Foster has a little dog that she loves dearly and treats as a child. One day, a postal employee unexpectedly comes to Grandma Foster's house to deliver a package. As Grandma opened the door, the dog jumped out onto the front porch and bit the postal employee numerous times. Under Indiana's codified dog-bite law, Code § 15-20-1-3, what does the postal employee have to prove to hold Grandma Foster responsible for her injuries?

Only that the dog bit her and she was on the property performing her lawful duties of delivering packages.

Parsons, a pedestrian watching a construction project, sees that a metal beam being lifted by a crane is about to drop on some unsuspecting workers. Thus, he rushes to the scene to warn the workers. For his efforts, the falling beam strikes him. He sues the construction company for negligence. Which of the following is true? Assume that the falling beam was caused by a breach of duty on the construction company's part.

Parsons will recover against the construction company because it owes a duty of reasonable care to the workers as well as pedestrians.

One night, Seth and Paul go out drinking. Seth sees that Paul has drunk way too much and asks Paul to sell him his car. Paul agrees to sell his car to Seth for $10. The car's fair market value is $5,000. Seth writes a short contract which Paul drunkenly signs. The next day, Seth says to Paul, "We made a deal. Here is the $10. So, the car is mine." Which is true?

Paul probably lacked the capacity needed to enter into a contract. Seth took advantage of this and, therefore, the contract is voidable.

Able Co. and Baker Co. exchanged form contracts in a "battle of forms" for the sale of goods. Both parties are merchants under the UCC and each party modified and used its own standard form as an offer and acceptance. On the reverse side of each party's form, there were minor different contract terms added that did not conflicted with each other. Under the UCC, what is the impact, if any, these minor differences in terms have on whether a contract is formed?

Per the UCC, a contract exists and the consistent (non-conflicting) terms specified on the forms' reverse sides become a material part of the contract.

Which of the following phrases refers best to a bodily injury that can be recovered in a negligence action? Personal Injury Future damages Consequential damages Contract Injury

Personal Injury

Negligence cases that address duties that run from possessors of real estate (land and buildings) to those who enter that property are often called:

Premises Liability Cases

If your neighbor frequently burns trash fires and its smell interferes with your ability to enjoy your backyard pool, you can probably file a tort claim called ____________:

Private Nuisance

If a private individual sues Indiana University, the lawsuit would be:

Public

When reading an article in a newspaper, you note that several business executives have been indicted. This type of legal action would be:

Public

_____ are intended to punish flagrant wrongdoers and to deter them.

Punitive Damages

The ___________ is a very relaxed, deferential means-ends test of constitutional judicial review, which challenged laws usually pass with ease:

Rational basis scrutiny

All the following constitute one of the theoretical purposes justifying criminal penalties except one. Which one?

Rehabitation

You are walking down a street and you pass by a beer brewery. A barrel rolls out of a third story window and injures you. You have no idea how this accident occurred, and you will have difficulty proving that the brewery was at fault. What legal theory will serve you best if you sue the brewery?

Res ipsa loquitur

The equitable remedy of ________ requires the defendant to pay the value of the benefits that the plaintiff has conferred on him.

Restitution

Target advertises TV's for $100 in the paper. Spenser goes to Target and grabs one of the advertised TVs and takes it to the register. When the clerk rings up the TV, the price shows as $1,000, not $100. Spenser tells the clerk, "You must sell the TV for the advertised price." The clerk said, "That advertisement was a mistake. You can have it for $1,000 - take it or leave it." Which is legally correct?

Spenser is the offeror and Target can decline Spenser's offer to pay $100 for the TV because advertisements are merely requests to negotiate

Bob and his next-door neighbor Tom live in Indianapolis. They do not get along well because Bob allows his dog to go onto Tom's front yard and "do his business." One evening, Tom walked over to Bob's front yard and they got into an argument about the dog. During their argument, Bob said to Tom, "I'm going to kick your ass and bury you." At that point, Tom spits on Bob's shirt and runs away frightened. The next day, Bob put a huge sign in his front yard that said, "Tom is a Dog-Killer!" If Bob and Tom end up suing one another over this incident, which court would be the appropriate one to handle the case?

State Court

The Commerce Clause of the U.S. Constitution (art. 1, § 8, cl. 3) has become a significant source of federal power, granting extensive federal regulatory reach. This is largely due to judicial decisions regulating________________________________:

State activities that substantially burden interstate commerce

A "long-arm" statute allows

State court's jurisdiction over out-of-state defendants.

David offered to sell his used wagon to his neighbor Ted for $600. Ted asked David if the wagon works okay and David said, "I'm selling it 'As Is'." David decided to write a contract to put their agreement in writing. The entire agreement is written as follows: "Sale of good wagon by David to Ted for $600." Both parties signed the agreement. Neither party are merchants. A week later, an axle breaks, and Ted tells David he wants his money back. David says, "I sold it 'As Is'." And Ted replies, "It doesn't say 'As Is' in our contract, so you did not sell it 'As Is'." Who is right?

Ted is right - only the written terms between the contract's "four-corners" will be considered part of the agreement.

Bob and his next-door neighbor Tom live in Indianapolis. They do not get along well because Bob allows his dog to go onto Tom's front yard and "do his business." One evening, Tom walked over to Bob's front yard and they got into an argument about the dog. During their argument, Bob said to Tom, "I'm going to kick your ass and bury you." At that point, Tom spits on Bob's shirt and runs away frightened. The next day, Bob put a huge sign in his front yard that said, "Tom is a Dog-Killer!" What does Tom have to prove if he wants to sue Bob for defaming him with the sign?

That Bob said something about him to third parties that is untrue and harmful to his reputation.

Which of the following is also called "judge made law"?

The Common Law

Which of the following prevents the federal government from depriving "any person of life, liberty, or property, without due process of law"?

The Fifth Amendment

Which of the following prevents state governments from depriving "any person of life, liberty, or property, without due process of law"?

The Fourteenth Amendment

The U.S. Supreme Court upheld the practice of "Stop and Frisk" in Terry v. Ohio (1968). Which statement is true about NYPD's use of "Stop and Frisk" in New York City:

The New York federal district court held unconstitutional the way in which the NYPD used "Stop and Frisk" from January 2004 to June 2012, because its practices were based on racial profiling, rather than a finding of reasonable suspicion.

According to __________, treaties are deemed the supreme law of the land.

The Supremacy Clause

Jon is the custodian at the Bank of Evil. One day, Jon carelessly leaves a broken rake next to the sidewalk when he went to lunch. Gru, a bank customer, stepped on the rake as he walked next to the sidewalk and was injured. Gru was at the bank in order to discuss getting a loan to fund his scheme to steal the moon. Which statement is most likely correct?

The bank is liable for Gru's injuries because he is a business invitee.

Which of the following characteristics is NOT considered by the court to determine the "reasonableness of the risk"? The defendant's subjective mental state Social utility of the defendant's conduct Personal characteristics of the defendant Magnitude of the foreseeable harm

The defendant's subjective mental state

James goes to a dentist to have a tooth extracted. James never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later, the dentist bills James

The dentist can recover under a theory of quasi-contract liability.

If the driver of the car that hit you is determined to be driving under the influence of alcohol, which is true?

The driver may face both civil and criminal charges and one does not exclude the other

You rear-end a car and cause a very minor dimpling of the car's rear-side panel. The cost of repair will not exceed $500. You are at fault and owe the cost of repair. Unfortunately, the car was driven by Mr. Glass, who suffers from a Type I osteogenesis imperfect (e., brittle bone disease), a rare disease that renders sufferers' bones extremely fragile and prone to fracture. The minor force from by the rear-ending's impact caused the bones in Mr. Glass's right leg to shatter. In addition to the $500 repair cost, Mr. Glass seeks to recover from you an amount in excess of five million dollars that will compensate him for pain and suffering, lost wages, and his medical bills. Which legal rule stands for the proposition that Mr. Glass will likely prevail?

The egg-shell rule

The Bill of Rights is:

The first ten amendments to the U.S. Constitution.

Smith and Jones are in a car accident at a traffic light. Smith says that he had the green light and Jones says that she had the green light. Both parties have witnesses to support their side of the story. How will a jury decide at trial which person had the green light?

The jury will view and weigh the witnesses' credibility and veracity (truthfulness) and decide who, in fact, had the green light.

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. After WBCC was forced to leave the job, the Happy & Sad Law Firm noticed that rain water was coming into the partially completed building through the unfinished roof. If left as is, the water damage will have to be repaired by the subsequent contractor at an increased price. Which is true?

The law firm has an obligation to try and mitigate the damage to the building by covering the holes within a reasonable period

Which best defines the concept of "contributory negligence"?

The person claiming to be injured failed to act reasonably and, for this reason, should recovery nothing from the defendant.

In order for a defendant's guilty plea to comport with due process and be deemed knowingly, voluntarily, and intelligently entered into, the judge accepting that plea must make sure that the defendant understands three Constitutional rights. Those rights are colloquially referred to as the "Boykin rights," from the case in which they were collectively identified as being constitutionally critical—that is, Boykin v. Alabama (1969). Which one of the following lists all three Boykin rights?

The privilege against compulsory self-incrimination, the right to trial by jury, and the right to confront one's accusers.

Which of the following is false regarding the reasonable person test? The reasonable person test's application is unnecessary if the defendant owes the plaintiff a duty of reasonable care. The reasonable person test is flexible and is determined on a case-by-case basis. The reasonable person test is an objective test. The reasonable person test compares the defendant's actions with those that a hypothetical person with ordinary prudence and sensibilities would have taken (or not taken) under the circumstances.

The reasonable person test's application is unnecessary if the defendant owes the plaintiff a duty of reasonable care.

Why were equitable remedies developed?

The remedies available in common law courts were too few or too harsh

Which of the following characterizes false imprisonment? The unfounded assertion of legal authority to detain a person for an appreciable time without consent. The intentional confinement of a person without their knowledge. The intentional confinement of a person for an appreciable time with consent. The partial confinement of a person by blocking an exit, when several exist.

The unfounded assertion of legal authority to detain a person for an appreciable time without consent.

Bobby Bolivia, a used cars salesman, writes an e-mail to Sam Witwicky with an offer to sell his car, Bumblebee, for a certain sum. Coincidentally, Sam Witwicky e-mails Bolivia at the same time and says that he wants to buy his car and names the same sum. The two emails cross each other in cyberspace. Which of the following best describes these circumstances?

There is no contract because there was no mutual agreement—Witwicky did not know of Bolivia's offer.

Homer's negligence caused an automobile accident with Bart. As a result of the collision, Bart's car collides with a telephone pole, causing it to fall. The falling pole then takes out some electrical power lines. The resulting power outage leaves Patty without any light in her apartment. As she fumbles in the darkness, she trips over her cat, falls, and is injured. Patty sues Homer. In order to avoid liability, Homer's best defense is that:

There is no proximate cause between the breach of duty and the injury.

Which of the following is NOT an element of the common law claim of negligence? The defendant owed a duty of care to the plaintiff. The defendant committed a breach of his duty to the plaintiff. The breach committed by the defendant was the actual and proximate cause of injury to the plaintiff. There were substantial monetary damages due to the defendant's actions.

There were substantial monetary damages due to the defendant's actions.

When reading an article in a newspaper, you note that several business executives have been indicted. From this information, you know:

They are accused of committing a crime

Mitch and Becky are both over the age of 21. Becky agrees to buy some recreational marijuana from Mitch for $25. The sale occurs in Indiana, which prohibits recreational marijuana. Which is true?

This contract is void because its underlying subject matter is illegal.

Andrew puts an ad in the local paper stating that he has a 2014 Nissan Altima with 90,000 miles for sale for $8,000. Which statement best describes the legal status of this ad?

This is an offer to negotiate.

Willis, a senior at I.U. South Bend, rented a room from Thomas for a period of 10 months (corresponding to the academic year) that began August 1st and expired June 1st. The lease was oral. The rent is $125 a month. On January 2nd, Willis moved from the room without notice to Thomas. Willis had paid his rent to Thomas through January. Goldman, both Willis's and Thomas's friend and also an IUSB student, told Thomas on January 5th that he needed a new room and could immediately replace Willis. Thomas declined Goldman's offer, saying that "he was going to stick it all on that SOB for cheating him like he did." Thomas sues Willis in small claims court, seeking rent from Willis for the months of February, March, April, and May. Pick the answer that most closely describes the lawsuit's likely outcome.

Thomas will not likely recover the damages he seeks because he failed to mitigate his damages by accepting Goldman's offer to replace Willis. or seek any other cover mitigation.

Melissa hurls a rock with the intention to hit Dave, with whom she has just fought. The rock hits Stacey, instead, who is sitting next to Dave. Melissa is liable for battery under the theory of:

Transferred Intent

The defendant has permission to use the plaintiff's truck to only move a mattress. Despite this, the defendant, for his own purposes, uses the truck to drive a group of friends to a drive-in theatre so that the group can watch the movie comfortably from the truck's bed. This is called:

Trespass on Personal Property

A contract is a voluntary agreement between the parties that creates legal relationships between them that a court can enforce.

True

All criminal cases are public cases?

True

Andy contracts with Yvonne to produce an advertisement for a Fourth-of-July fundraising party. Because Yvonne is performing a service, the contract is governed by the Common Law and the doctrine of substantial performance. Yvonne does not produce the advertisement until July 6. Here, Yvonne's breach of the contract is not a material breach unless the contract explicitly stated that time is of the essence.

True

If Grant promises to sell his regular season football tickets for next season to Carson on condition that Indiana University wins the Rose Bowl, Indiana's winning the Rose Bowl is an express condition of Grant's duty to sell the tickets.

True

If an individual can foresee that his/her actions will cause a risk of harm to another, then the individual has a duty to protect that other person from harm.

True

If no Uniform Commercial Code rule applies to an issue regarding a sale of goods contract, the common law rules apply.

True

If there is no completion time specified in contract governed by the Uniform Commercial Code, then it is presumed that performance shall be completed within a reasonable period of time.

True

In Miranda v. Arizona, the United States Supreme Court adopted the prophylactic rule which mandates that police officers warn suspects about their constitutional rights?

True

In rem jurisdiction is based only on the fact that property of the defendant is located within the state.

True

In the past, the traditional contract law rule mandated that acceptance must be the mirror image of the offer. If they were not, the contract did not exist. Since the development of the UCC, however, courts have applied a more liberal approach to the process of offer and acceptance in the context of the sale of goods between merchants. That liberal rule states that any new or additional terms included in the acceptance of that offer become part of the final agreement unless the additional or different terms materially alter the terms of the offer. Terms that materially differ are replaced by UCC filler rules if a dispute arises.

True

Minors have the capacity to enter into contracts, but such contracts would be voidable—that is, a legally enforceable contract in which the minor has a legal right to cancel before they reach the age of majority.

True

To prove that someone suffered damages as a result of an intentional trespass, a plaintiff must merely show that the defendant physically intruded onto the property without permission or a privilege.

True

True or false, in order for a law enforcement officer (LEO) to acquire an involuntary blood sample from an unconscious patient at the hospital in order to investigate the allegation that the unconscious patient was driving under the influence of alcohol or some other intoxicant, the LEO must satisfy one of three requirements mandated by the U.S. Supreme Court—that is, have a warrant, have the patient's consent, or demand the blood draw incident to the patient's arrest for driving under the influence?

True

Under modern contract law, the validity of a contract has nothing to do with the subjective intent of the parties.

True

Reggie went to the Napa Valley Harvest Festival and stopped at Tracy's booth, at which she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of what type of contract:

Unilateral

Which of the following is most likely to involve liability for violating a person's right of publicity? In each case, assume that the plaintiff's name, likeness, work, etc. was appropriated without the plaintiff's permission. Using the work of an unknown artist to illustrate the T-shirts one makes and sells. Using the picture of the owner to sell beer at a pub. Using a picture of a race car to sell chewing tobacco. Using Madonna's name to sell women's apparel made in a factory in China that employs children.

Using Madonna's name to sell women's apparel made in a factory in China that employs children.

Which statement is the most accurate about jurisdiction and venue?

Venue focuses on geographical fairness and convenience of the lawsuit's location, whereas jurisdiction focuses on the court's authority to hear a particular type of case.

A contract whose formation is induced by mental duress (as opposed to physical duress) is an example of a contract that is:

Voidable

The reasonable-man concept is considered flexible. Which of the following personal traits or conditions will not change the normal reasonable person standard to which defendants are subject?

Voluntary Intoxication

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. Which is true?

WBCC has breached the agreement and it is a material breach

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. WBCC was late in getting the foundation completed because they had a terrible fire at their company garage and their equipment were unusable. Which is true?

WBCC has breached the agreement, but if they can prove a valid excuse for the breach, they will probably be excused from damages under the exculpatory clause

The owner of a nightclub failed to install the requisite number of emergency exits mandated by city ordinance. During a performance by a band, an intoxicated fan gets carried away, evades security, climbs on stage, and knocks the pyrotechnics off the stage and into some plastic foam used as sound insulation in the walls and ceilings surrounding the stage. The foam ignites and a fire quickly spreads, engulfing the entire nightclub in minutes. Because there was only one emergency exit, many people were killed from the fire and smoke, or injured in the stampede. Will the nightclub owner be liable for negligence? Which is the best answer.

Yes because, though the fan's behavior was unforeseeable, the owner still cannot escape his per se breach of duty.

Jack had taken his girlfriend Jenny on a long drive. While driving on the highway, he suddenly had a severe headache and lost control of the car. They were hit by a passing car. The doctor had earlier warned Jack that he has a brain tumor, due to which he would experience occasional pains. Jenny sued Jack for negligence. Will she succeed? Pick the best answer.

Yes, because Jack could reasonably foresee sever pain which might factually cause an accidents.

Susie and Fritz live near each other and work together. One day, Susie said to Fritz, "Why don't we carpool? I'll give you a ride to work and back this week, and you can drive next week?" Fritz replied, "Works for me." The following week, Susie drives Fritz to work and back in her car. The next week, Fritz refuses to drive Susie to work and back. Does Susie have a contract claim against Fritz?

Yes, there was a contract and Fritz had breached it.

Ann is troubled with the noise of an old generator set up by her neighbor, Jose, at his residence. The noise the generator makes is unbearable. Ann sues Jose for nuisance. Will she succeed?

Yes, because the noise is interfering with Ann's use and enjoyment of her land.

Wacko Brothers Construction Co. (WBCC) is hired by the Happy & Sad Law Firm to build a new law office for the firm. They executed the contract at WBCC's Delaware office. The contract contains governing law and jurisdiction clauses that say any dispute arising from the contract will be filed in the St. Joseph County Courts and resolved under Indiana law. The contract also contains an indemnity clause and an exculpatory clause that both pertain to WBCC. The contract required that all dates and time periods specified in the contract were of the essence and that the foundation must be completed by June 1, 2014, as well as specifying dates when various other stages of construction must be completed. The law firm was already advertising its new office's grand opening. Unfortunately, WBCC ran into some delays and did not get the foundation completed until June 4th. If WBCC and the Happy & Sad Law Firm are not getting along very well during the contract's operation, is it possible for them to just agree to terminate the contract altogether?

Yes, just as parties are free to enter into a contract, they are free to terminate the contract

On January 1, Britta sends Jeff an offer via the U.S. mail, which is received by Jeff on January 4. On January 3, Britta sends a revocation of the offer (again, via U.S. mail), which was received by Jeff on January 6. Before receiving the revocation, Jeff sent an acceptance (using the U.S. mail) on January 5. Do Jeff and Britta have a binding contract? Select the best, and therefore only, correctly reasoned answer.

Yes, the acceptance was effective on the 5th and formed a contract, and the revocation did not become effective until its receipt, which was on the 6th and too late because acceptance had already occurred.

Circle City Auto ran a contest to give away a new Mini Cooper automobile. To win a chance at the car, an individual had to come in and test-drive a new car and fill out an entry form. Bo decided to go to the dealership where he test-drove the Mini Cooper and entered the drawing. If Bo's name is drawn, does he have a contract right to claim the car?

Yes, there is offer, acceptance, and consideration.

Bob and his next-door neighbor Tom live in Indianapolis. They do not get along well because Bob allows his dog to go onto Tom's front yard and "do his business." One evening, Tom walked over to Bob's front yard and they got into an argument about the dog. During their argument, Bob said to Tom, "I'm going to kick your ass and bury you." At that point, Tom spits on Bob's shirt and runs away frightened. The next day, Bob put a huge sign in his front yard that said, "Tom is a Dog-Killer!" Does Tom have a valid claim against Bob for saying he was going to kick and bury him?

Yes, this is a form of assault.

Bob and his next-door neighbor Tom live in Indianapolis. They do not get along well because Bob allows his dog to go onto Tom's front yard and "do his business." One evening, Tom walked over to Bob's front yard and they got into an argument about the dog. During their argument, Bob said to Tom, "I'm going to kick your ass and bury you." At that point, Tom spits on Bob's shirt and runs away frightened. The next day, Bob put a huge sign in his front yard that said, "Tom is a Dog-Killer!" Does Bob have a valid claim against Tom for spitting on him?

Yes, this is a form of battery.

Bob and his next-door neighbor Tom live in Indianapolis. They do not get along well because Bob allows his dog to go onto Tom's front yard and "do his business." One evening, Tom walked over to Bob's front yard and they got into an argument about the dog. During their argument, Bob said to Tom, "I'm going to kick your ass and bury you." At that point, Tom spits on Bob's shirt and runs away frightened. The next day, Bob put a huge sign in his front yard that said, "Tom is a Dog-Killer!" Does Tom have a valid claim against Bob for allowing his dog to come onto Tom's yard?

Yes, this is a form of trespass.

Negligence "per se" is a legal rule that establishes a defendant's negligence when:

a statute intended to protect persons like the plaintiff has been violated.

People who engage in abnormally dangerous activities:

are liable even if they are not negligent.

A defendant who is negligent is not liable for the unlikely or unforeseeable harm that results. This concept is called:

proximate cause

The difference between a public figure and a private figure regarding defamation cases is that:

the public figure has to prove actual malice.


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