NEW NEW B LAW

Earl operates an ice cream stand during the months of May, June, July, and August. Earl's ice cream machine is broken and needs a new part to run. He contracts to have the part shipped to him by special carrier. Earl emphasizes that the part needs to be delivered by April 25 or he will not be able to be open on May 1 as he has advertised. If the shipper fails to deliver the part on April 25, Earl should be able to recover consequential damages caused by the delay.

True

Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

True

An unforeseeable trade embargo causes prices to triple.

Which of the following events would probably excuse performance of a contract based on commercial impracticability?

annette drove through an intersection without looking and hit vincents car taht he had driven into the intersection without obeying a stop sign. annette sued vincent. the jury found that annettes fault contributed 20 percent to the collision and determined that her total loss was 100,000. under comparative negligence, the jury should award annette

80,000

Any contract involving a sale of goods of $100 or more must be in writing.

False

Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in recycled paper cartons. A shortage of paper makes paper cartons much more expensive, so Jessie uses styrofoam cartons and ships the eggs. Lester is entitled to cancel the contract based on this deviation of terms in the contract.

False

Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in recycled paper cartons. A shortage of paper makes paper cartons much more expensive, so Jessie uses styrofoam cartons and ships the eggs. Lester is entitled to cancel the contract based on this deviation of terms in the contract.

False

Billy owes a liquidated debt of $3000 to Rayna, his personal weight trainer. Billy sends Rayna a check for $300 on which he has marked, "Payment in Full." If Rayna cashes the check she will not be able to successfully sue Billy for the remainder of the debt.

False

Concurrent conditions arise when there is both a condition precedent and a condition subsequent.

False

Contracts in which one party agrees to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.

False

Contributory negligence is followed in most states

False

Courts enforce all promises in the interests of simple morality.

False

Courts normally require adequate consideration.

False

Dennis agreed to build a cedar deck for the Thrashers for $7000. After he began the work, the Thrashers asked him to add cedar flower boxes at one side. Dennis replied he would, but it would cost an additional $600. The Thrashers would not be obligated to pay the additional sum because the original agreement already obligated Dennis to complete the deck for $7000.

False

Pushy Pat, a persuasive salesman, talked Naive Nancy into purchasing something she didn't really need or want. Naive Nancy may rescind the contract because of undue influence.

False

Rudolph overhears Macy's plans to go skydiving over spring break. Not really knowing Macy, but figuring it's worth a chance, Rudolph rushes out and buys an insurance policy for $100,000 on Macy's life. Macy does in fact meet her demise jumping out of the airplane. Rudolph can collect the $100,000.

False

Sandra sued her employer, Cape Inc., claiming that she was sexually harassed on the job. This is a criminal lawsuit.

False

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

False

The Occupational Safety and Health Administration (OSHA) has proposed rules aimed at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. ATC, Inc. should challenge the proposed rules in court to prevent them from becoming final rules.

False

The case called Kuehn v. Pub Zone would reveal that Kuehn is the plaintiff, since the plaintiff is always listed first.

False

The doctrine of stare decisis, though vital to the creation of the common law when this country was settled, is not important to our modern, complex society

False

The statement, "You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May" does not create a condition because it does not include the phrase "provided that."

False

There is strong evidence that ethical behavior pays off financially for businesses.

False

To raise revenues, the City of St. Cloud required restaurants to purchase a special permit if they wanted to serve food in an open-air patio. While at Hola Taco, a restaurant in St. Cloud, a customer notices that Hola Taco's permit expired. Because Hola's Taco's permit expired, the customer is not legally required to pay for her food.

False

Vick Valve Company makes valves for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, "To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list. Vick Valve must honor the prices on the list and sell the valves to Honest Hank.

False

Whittle sent an order over the Internet for a $1,200 garage door. His name keyed onto the order will only be effective as a signature sufficient to create a "writing" "signed by the party against whom enforcement is sought" if he follows up with a signature on paper.

False

Written defamation is called "slander"

False

gambling contract is legal unless it is specifically prohibited by state statute.

False

illusory promise is valid consideration.

False

The doctrine of stare decisis, though vital to the creation of the common law when this country was settled, is not important to our modern, complex society.

false

The element of a contract that states the parties must be adults of sound mind is consent.

false

The power to create laws regulating international commerce is given jointly to Congress and the states under the U.S Constitution.

false

jim told his manager, lana, that a co-worker, diane, had been in prison for theft. lana checked into the matter and when she learned that diane had served time in prison for theft, fired her.

jim is not liable to diane for defamation

As English judges were developing the common law of contracts in the twelfth and thirteenth centuries:

Promises were found not binding unless written and sealed.

The legal right to sue for a breach of contract is subject to a statute of limitations.

True

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts

True

The primary sources of contemporary law are: constitutions, statues; common law; and administrative law (or regulations).

True

The principle that precedent is binding on later cases in stare decisis

True

The treaty known as the North American Free Trade Agreement could only become law in the United States after being ratified by the U.S. Senate.

True

To be valid, an agreement not to compete must be ancillary to a legitimate bargain

True

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he may void the contract.

True

Under the natural law theory of jurisprudence, an unjust law is no law at all.

True

Uniform Commercial Code provides that, under certain circumstances, a merchant may be liable on a written contract, even though that merchant has NOT signed it

True

Velma, as a birthday present, assigns to Jim her contractual right to collect $50 from Wood Co., this would be a gratuitous assignment.

True

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present

True

The basic distinction between a bilateral contract and a unilateral contract is that

only one promise is involved in a unilateral contract.

basic distinction between a bilateral contract and a unilateral contract is that:

only one promise is involved in a unilateral contract.

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

true

the common factor amoung robbery, embezzelment, perjury, and murder is that they are all malum in prohibitum crimes T/F

false

the correct standard of proof that a defendant in a criminal prosecution must meet is beyond a reasonable doubt T/F

false

the judge decides questions of fact in a jury trial while a jury resolves questions of law T/F

false

When a licensing requirement is designed merely to raise revenue, a contract made by an unlicensed person is generally enforceable.

true

exculpatory clause is generally unenforceable when:

it involves public transportation.

A contract most likely will be declared unconscionable if

it is oppressive and one sided

contract most likely will be declared unconscionable if

it is oppressive and the weaker party did not fully understand the consequences of the agreement.

the fraudulent conversion of property which is already in the defendant's possession is

larceny

common law refers to

law made when judges decide cases and then follow the decisions in later cases

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is

not enforceable because Becky does not have a legal right to drink alcohol.

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is:

not enforceable because Becky does not have a legal right to drink alcohol.

Any ambiguity in a contract is interpreted against the party who drafted the contract.

true

Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.

true

Roger parked his car at a garage that has a large sign at the entrance saying, "This garage is not liable for items stolen from a car." This type of notice is referred to as an exculpatory clause.

true

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. Roger may rescind the contract, return the stereo and get his money back.

true

a party is discharged when she has no more duties under the contract

what does it mean if a party to a contract has been discharged?

The first step a court takes in choosing a remedy is to determine

what interest it is trying to protect

first step a court takes in choosing a remedy is to determine:

what interest it is trying to protect.

someone who discloses wrongdoing

what is a whistleblower?

Application of the Universal Commercial Code (UCC)

• Unlike the common law • More flexible • Creates a contract • Where no contract • Under the common law

Courts may award damages called quantum meruit, which means

"as much as he deserves."

What phrase is critical to the validity of a requirements contract?

"in good faith"

Three factors of acceptance

1. Intent to accept 2. On terms proposed by offeror 3. Communicated acceptance

Under the merchants' exception rule of the UCC, within a reasonable time of making an oral contract, if a merchant sends a written confirmation to another, and if the confirmation is definite enough to bind the sender herself, then the merchant who receives the confirmation will also be bound by it unless he objects in writing within

10 days

which ammendment provides for the right of us citizens to bear arms?

2nd

Which statement most accurately describes third party beneficiary rights?

A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary.

Which of the following statements is accurate regarding a condition?

A condition is an event that must occur before a party becomes obligated under a contract.

The Occupational Safety and Health Administration promulgated a rule requiring guards for hand-fed circular crosscut table saws. The purpose of the guards is to keep employees clear of any danger zones. This rule is:

Administrative law

True

After her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.

rescission

Al contracted to sell his house to Bev. Subsequently, they both changed their minds and agreed to cancel the contract. The contract between Al and Bev is discharged by:

True

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

False

Alice signs a contract with Bob to buy Bob's house for $150,000 "if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years." Assume that Alice tries but is unable to obtain the described loan, and therefore refuses to proceed with the purchase. Alice is in breach of the contract.

Courts may award damages called "quantum meruit":

All of the above

Advantages of Alternative Dispute Resolution (ADR) include:

All of the above are advantages of ADR.

Courts may award damages called "quantum meruit":

All of the above.

Angie, a minor, wants to avoid a contract she made with Cumberland Cycles. She may disaffirm the contract by:

All of the answers are correct.

Which of the following duties can probably be delegated?

An agreement to paint a house

Ralph is a professional football player. He signs a valid contract with the Jets. Later, he claims that he was also promised free use of the Jets' private jet, but this was not in the contract. What type of clause in his contract would prevent him from flying away with this claim?

An integration clause.

Which of the following would suffice for a signature on a writing under the statute of frauds?

Any of the above would suffice. Judges define "signature" very broadly.

The Administrative Procedure Act:

Applies to all federal agencies.

nonparty to a contract may enforce the contract if the person is:

Both a and c. done/creditor

The contract is enforceable for 20 jet skis.

Brahma entered into an oral agreement to sell 50 jet skis to Summer Sports. Brahma delivered 20 of the skis on May 1. On June 1, Summer Sports notified Brahma that it will not honor the agreement. Which statement is correct?

some of the protected classifications from equal protection purposes include

all of the above

the lease is required to be in writing because of the one-year rule.

Claude agrees to lease his house to Irvin for nine months, the lease to begin six months from the signing of the contract. Under the statute of frauds:

The primary source of federal power to regulate business is the

Commerce Clause.

False

Courts will not allow the rescission of a contract due to a unilateral mistake.

Yes, if they work for a company with at least 50 workers.

Does the Family and Medical Leave Act apply to professionals like CPAs?

Yes

Does the statement "the sale of goods will not be enforceable unless there is some writing, signed by the defendant, indicating that the parties reached an agreement accurately reflect the UCC's basic rule?

True

During the hiring interview, Supervisor Staci told Henry that as long as he did his job as requested, he would have a job until he retired. Courts have been willing to enforce such an oral promise, even if the company's top management did not approve the statement.

Mega Corp can hire replacement workers at any time during a strike.

Employees of Mega Corp. have gone out on strike seeking better pay. Mega Corp. announces that if the union does not end the strike it will begin hiring replacement workers. Which statement is correct?

Both Moneybag's promise and Ethel's Exercise World's promise.

Ethel's Exercise World plans to order three weight machines from Pete's Push, Pedal and Pull, Inc. for a total of $15,000. Pete's demands that Ethel's friend, Moneybags, a wealthy independent businesswoman (not connected with Ethel's business in any way) promise to pay Pete's for the three machines if Ethel's Exercise World does not. Which of the promises in this problem must be in writing to be enforceable?

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000. "Olga replies, "I accept," and hands him $2,000. A contract exists.

FALSE

A quasi-contract is the same as an oral contract.

False

Char-Glo Industries contracted with Evergreen Lawn Service to mow and trim the company's lawn. In the contract, Char-Glo included a clause prohibiting Evergreen from delegating its duties. Courts will ordinarily not enforce such a clause.

False

If a contract is made with a person required by law to hold a license, and the purpose of the license is protection of the public, the contract made by an unlicensed person will generally be enforceable.

False

In a civil case, the plaintiff must prove the case beyond a reasonable doubt.

False

Farmer's Fortune Insurance has a contract with Farmer Fran to insure her crops against insect damage. The contract does not specify which insects are covered or how much damage is necessary to make a claim. The contract will probably be enforced in favor of

Farmer Fran

Floyd, a barber, says to Barney, "I'll sell you my laptop for $100." Barney asks, "Will you give me until tomorrow to make up my mind so I can talk it over with Thelma Lou?" "Sure," Floyd replies. Which of the following is true?

Floyd cannot revoke his offer only if Barney pays him to keep the offer open until tomorrow.

a house a real estate mortgage an easement *ALL OF THE ABOVE*

For statute of frauds purposes, an interest in land includes:

False

Fraudulent, but not innocent, misrepresentation permits the injured party to rescind a contract.

False

Generally, neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

which of the following acts resulting in injury would be negligence per se?

all of the above

Valid Contract

Has 5 elements

Bernie owes an undisputed amount to Wilde's Heating & Air Conditioning. Which of the following is true?

If Wilde's agrees to accept less than the full amount as full payment, the agreement is not binding.

True

If a minor can cancel a contract, it can be done at any time before the minor reaches the age of majority or within a reasonable time after reaching majority age.

Reserve Auction

If a person thinks a Item is auctioned to low of a bid you can take it out of the auction.

puffery

If jane persuades linda to buy her horse by telling linda that the horse runs "like the wind", then Jane's statement is

is discharged from any further obligations under the contract

In January 2008, Professor Noe entered into a contract with State University. She agreed to teach full time during the 2008-2009 academic year. Professor Noe died on May 31, 2008. Her estate:

What does it mean if a party to a contract has been discharged?

It means that person is "finished" and has no more duties under the contract.

is required to pay the full contract price, mi-nus the value of Jennifer's defective perfor-mance.

Jennifer substantially performs her service contract with Gretchen. Due to Jennifer's failure to render complete performance, Gretchen:

7 elements of a contract:

LAWoccc Offer Acceptance Consideration Legality Capacity Consent Writing

Which school of jurisprudence is based on the philosophy that what matters is not what is written as law, but who enforces the law and by what process?

Legal realism

duress

Mark's home had burned to the ground. When he met with his insurance adjuster, she accused him of burning down the house, and said she would have him criminally prosecuted if the didn't settle the claim for much less than the house was worth. Mark agreed to the settlement. If he changed his mind, he can probably rescind the settlement on the basis of

The contract is voidable by Marty

Marty, a 16-year old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest are paid in full. Which of the following is correct?

a concurrent condition

Mary contracted to buy 100 table lamps. Under the terms of the agreement, Mary is to pay for the lamps upon delivery. This is an example of:

normally void the contract but will require to return the piano

Mentally infirmed Sasha contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will

Which two things of recovery can you get if yo legally enforce

Money damages DON'T GET BOTH Completion of the contract

Noncompetition agreements are:

More common today than they were in the past, although policy issues they raised in the 1700s have never gone away.

Which of the following are generally considered to be legal offers?

NONE

which of the following terminate an offer?

all of the above

Bert had his driver's license suspended by the state department of transportation. He believes his constitutional due process rights were violated by the administrative agency. Can he immediately file a court action to have agency's actions reviewed?

No. Bert must first utilize the administrative agency's procedures to review the suspension before he seeks judicial review by a court.

The additional terms become part of the contract unless

Offer forbids any change or modification Materially changes the offer Offeror objects within reasonable time • "Sell you my car; $5000; exchange on 9/3/10" • "I accept; will buy car' pay $5000; but do it on 9/4/10, when I get paid" • Acceptance?? • Price ALWAYS material

Which of the following is not a method parties would utilize when agreeing to discharge their contractual duties?

breach

the full contract price minus the value of the defects

Oxtron, Inc. substantially performed its obligations under a service contract. Oxtron is entitled to receive:

False

Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee. The coffee was to be delivered on September 1. Since the contract included a date for performance, time is of the essence and the delivery date is strictly enforceable.

object to the confirmation in writing within 10 days

Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Renita should:

True

Roger, a minor, buys a stereo from Tuneland. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. Roger may rescind the contract, return the stereo and get his money back.

lose, because the contract is voidable by Ryan

Ryan, a minor, contracted to sell his auto to Ed, a 28-year-old. Ryan later refused to complete the sale. If Ed sues to enforce the contract, Ed will:

are generally illegal.

Secondary boycotts:

Which of the following is an example of an exculpatory clause?

Seller is not responsible for property damage regardless of the cause of the injury

Which of the following is most likely to constitute fraud?

Silence as to a toxic waste problem on real property that the buyer would not reasonably find.

True

Sit-down strikes, in which members stop working but remain at their job posts, physically blocking replacement workers from taking their places are legal

True

T/F: Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.

If there is a conflict between a state and federal law, generally the federal law will prevail because of the

Supremacy Clause.

False

T/F:Any contract involving a sale of goods of $100 or more must be in writing.

False

The Employee Retirement Income Security Act (ERISA) requires employers to establish pension plans for employees.

E-mation, Inc hires Marvin to steal trade secrets from one of its competitors for $10,000. Marvin demands half of the money up front. E-mation pays Marvin $5000 but Marvin decides not to pursue theft of the trade secrets. E-mation sues Marvin for the return of the $5000. What will the court do with this contract?

The court will not do anything to help E-mation get its money back.

determines who has the burden of proof.

The distinction between a condition precedent and a condition subsequent:

a union represent all members impartially and in good faith.

The duty of fair representation created by the NLRA and the LMRDA requires that:

The three branches of government in the United States are:

The executive, legislative, and judicial

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?

The offer is terminated by law.

Which of the following is NOT a true statement about fraud?

The plaintiff must show that although the defendant acted in good faith, the statement was material because the defendant expected the plaintiff to rely on it and enter into the contract.

True

The workers at Thom Trucking went on strike over wages. Tom Trucking may hire permanent replacement workers.

False

There is a higher percentage of workers in labor unions now than at any other point in history

Robert, a minor, buys a stereo from Jane for $200. State law allows a minor to disaffirm contracts within a reasonable time after turning 18. Robert disaffirms the contract the day after turning 18 and returns the stereo.

This contract was a voidable contract, Robert can disaffirm.

Shelton's breach of contract was intentionally, wilfully, wantonly and recklessly done in bad faith. If the court determines that Noah is entitled to an award of punitive damages, what would be the purpose(s) for granting them?

To punish Shelton, To make an example of Shelton

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

Totally integrated contracts.

The trier of fact can be either a judge or a jury.

True

Under the UCC, the buyer is entitled to consequential damages if the seller could have reasonably foreseen them.

True

employers must keep records of all workplace injuries.

Under the federal legislation known as OSHA:

Why do many major corporations actively encourage ethical behavior?

Unethical behavior can quickly destroy a business.

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a:

Unilateral, implied contract.

Vivian goes to an auction and sees a rare antique lamp that is an identical match to one she already has. At the proper time she bids on the lamp and is the highest bidder. Even though she is the highest bidder, the auctioneer refuses to accept her bid and withdraws the lamp from the auction. Can the auctioneer do that?

Unless otherwise stated, the auctioneer had the right to withdraw the item before the fall of the hammer.

capacity

Which of the following terms designates the legal ability of a party to enter into a contract?

2 types of auctions

Without Reserve Auction, Reserve Auction

What is a force majeure event?

a disruptive, unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with a contract

When one person agrees to pay the debt of another as a favor to that debtor, it is called

a collateral promise

a united states circuit court of appeals

a federal appellate court

Which of the following promises ordinarily must be fully executed in writing to be enforceable?

a promise made by an executor of an estate to pay a debt of the estate

Which of the following is NOT required to establish promissory estoppel?

a promise made by the plaintiff in response to the defendant's promise

a decision of the supreme court of mississippi would always be binding on

a state trial court in mississippi

which of the following statements about torts is correct?

a tortious act may also be a criminal act

President Nixon issued wage-price controls in an effort to stabilize the economy. This use of executive power was

a valid use of power based on Article II of the Constitution.

______ combined with an overt criminal act amounts to a crime

actus rea and mens rea

Special Problem Areas

advertisements, rewards, autions

A party who has the right and power to avoid a contract may lose that power because

all of the above

Which of the following contracts must be in writing in order to be enforceable?

all of the above

Reformation is:

an equitable remedy

Marco agrees to sell Clowns R Us some balloons. The contract states that Clowns may buy as many balloons as it wishes. This agreement is:

an illusory contract

Vicki entered into a written contract to buy a car from Valley Motors. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." This is:

an integration clause

Specific performance may be available for the breach of a contract to sell:

an original andy warhol painting

arnold wrote a defamatory letting regarding bric, which he mailed to bric, be which he did not show to anyone else

arnold has commited neither libel nor slander

If a court awards nominal damages it will generally:

award very little money.

if Beau unjustifiably failed to take Christina out as he had promised, which of the following would best describe Beau's conduct?

breach of contract

Giving possession and control of personal property to another person is referred to as

bailment

which of the following are the two basic elements to consideration?

bargained- for exchange and legal sufficency

Standard provisions in a contract that are often listed under the heading "Miscellaneous" are called

boilerplate

statutory law is to legislative bodies as common law is to

courts

theft is to criminal law as _____ is to the civil law

conversion

remedy of reformation:

can be used to correct mistakes in the original contract

The remedy of reformation

can be used to correct mistakes in the original contract.

The President of the United States

can veto congressional legislation

True

commercial impracticality means some event has occurred that neither party anticipated and fulfilling the contract would now be extraordinarily difficult and unfair to one party

the primary source of federal power to regulate buisness is the

commmerce clause

law made when judges decide cases and then follow those decisions in late cases is what kind of law?

common law

most of tort law, contract law, and criminal law have their origins in

common law

All Seasons, Inc. ordered $5,000 worth of Christmas decorations from Santa, Inc. The shipment of decorations was to arrive no later than October 1, in time for the Christmas season. The shipment did not arrive until December 1. In spite of the delay, All Seasons covered a third of the order through other suppliers, but had to pay 15% more than the price under contract with Santa, Inc. As a further result of the delay, All Seasons' sales were down 25%. All Seasons can recover:

compensatory damages and consequential damages.

a _____ is any act or omission prohibited by public law in the interest of protection of the public and made punishable by the government in a judicial proceeding brought by it, whereby proof must be beyond a reasonable doubt

crime

The government itself prosecutes the wrongdoer in a case involving behavior so threatening that society outlaws it altogether. This kind of case involves

criminal law

_________ is the body of law that involves offenses against the state

criminal law

the type of case where the government prosecutes the wrongdoer for behavior so threatening that society outlaws it altogether involves

criminal law

It is unethical to use your lawyer as an excuse for a provision of a contract, such as, "My lawyer insists that I have a liquidated damages clause..."

false

Kalee promises to marry John if John's dad will buy Kalee a beach front condo in Florida. This agreement does not need to be in writing to be enforceable. T/F

false

common law governs contracts for:

d

Lawyers prefer to negotiate touchy subjects as they arise rather than address them at the beginning of a relationship.

false

Some contracting parties are intentionally vague in contract terms.

true

Bob, a house painter, contracts with Ollie to paint a rental house which Ollie owns. Bob hires Rob to take his place as the painter on this contract. What has Bob done?

delegated his duties

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

false

title of a contract should be:

descriptive of the agreement, and typed in all capital letters.

The U.S. Supreme Court's holding in Ward's Cove Packing v. Atonio

differed from the holding in Griggs v. Duke Power Co. partly because the Court was more conservative at the time Ward's Cove was decided.

fundamental rights include all except the right to

drive

A promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an

enforceable requirements contract.

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would. At this point, the contract is an

executory, bilateral, express contract.

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would. At this point, the contract is an:

executory, bilateral, express contract.

What does the word "parol" mean?

external and extrinsic

Billy owes a liquidated debt of $3000 to Rayna, his personal weight trainer. Billy sends Rayna a check for $300 on which he has marked, "Payment in Full." If Rayna cashes the check she will not be able to successfully sue Billy for the remainder of the debt.

false

Claims for personal injury are generally assignable.

false

Concurrent conditions arise when there is both a condition precedent and a condition subsequent.

false

Congress can create a statute on any topic at all.

false

In contract law, a minor is someone under the age of 21.

false

The provision that excludes damage caused concurrently by wind and water in policies that State Farm wrote and issued to its insureds is ambiguous. A federal judge faced with interpreting this provision will construe it in favor of State Farm. T/F

false

The statement, "You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May" does not create a condition because it does not include the phrase "provided that."

false

The two basic elements of consideration are intention and agreement.

false

Two parties who enter into an oral contract that falls within the Statute of Frauds are legally prohibited from performing that contract even if both of them are willing to perform it. T/F

false

legally sufficient consideration to support a contract means that the value of what the first party to the contract recieves under it is comparable to what he or she gives to the second party. T/F

false

frank, an accountant, says to missy, " ill sellyou my laptop for $100." missy asks if she can have until tomorrow to decide. frank agrees. what is true?

frank cannot revoke the offer if missy gives him 5$ to keep the offer open

A party seeking to recover compensatory damages in a breach of contract lawsuit must prove the exact amount of her loss with absolute certainty.

fraud in the execution

An unconscionable contract is one that a court refuses to enforce because of

fundamental unfairness

When a party to a contract makes a unilateral mistake, the contract:

generally cannot be rescinded by the mistaken party unless the contract is unconscionable or it is proven that the nonmistaken party knew of the error.

which of the following will support a contract?

giving a return promise

An honest effort to meet both the spirit and letter of the contract is termed

good faith

An express contract

has both parties setting forth their intentions.

ethics is the study of

how people should act

Some of the elements of a contract are acceptance, consideration, legality, and capacity.

true

roger assaulted jim in a tavern, causing medical expenses and lost wages. which of the following is true?

if jim refuses to press charges against roger, the state cannot initiate criminal proceeding against him

Where no one is able to perform the contract for reasons beyond the control of the parties, the contract is discharged due to:

impossibility

______ is where a particular court has the authority to adjuticate a controversy over the plaintiff and defendant in a lawsuit

in personam jurisdiction

The equitable remedy a court can grant by prohibiting one of the parties to a contract from continuously violating the contract is called:

injunction

The federal judicial branch of the U.S. government

interprets statutes

If Oregon passed a statute that prohibited liquor stores from engaging in any kind of advertising, that statute would be

invalid as an unreasonable restriction of free speech.

Which of the following played a role in the creation of the U.S. government by solving the problem of federalism?

iroquois native americans

José hires Isabel to work in his new sporting goods store. "Look," he explains, "I can only pay you $9.00 an hour. But if business is good a year from now, and you're still here, I'm sure I can pay you a healthy bonus." Four months later José terminates Isabel. She sues.

isabel will win nothing

John discovered his company's accountant was "skimming" money from the business. The accountant agreed to pay John a one-time payment of $25,000 not to report the skimming to company officials. The accountant promised she would pay the money back when she could. John accepted the money and never reported what he knew. A year later the accountant was fired when the embezzlement was discovered. She was also prosecuted for theft. The payment to John was never discovered. Which statement is correct?

johns act was unethical and illegal

the authority of a court to decide a particular type of case is

jurisdiction

Ryan, a minor, contracted to sell his auto to Ed, a 28-year-old. Ryan later refused to complete the sale. If Ed sues to enforce the contract, Ed will

lose because the contract is voidable by ryan

Under the Uniform Commercial Code, an agreement modifying a contract

may not require consideration.

Christina was able to return the shoes she had bought, but not the new outfit. However she sold the outfit to Caroline and wound up getting about 75% of her money back. This action by Christina to take reasonable steps to minimize her losses is known as:

mitigation

thoreu felt that war was unjust and refused to pay his taxes when the us declared war on mexico. thoreau felt that there was a higher law than the law of the land. this is called

natural law

If CNN offers Lee a job, but there is no time specified for him to accept or reject it. When does the offer terminate?

none of the above

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100 bucks!" John has:

not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100!" John has

not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities. The festivities were unexpectedly canceled because of concern over a terrorist attack. Harry is

not obligated to pay under the frustration of purpose doctrine

If Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably

not set aside the agreement based on the adequacy of the consideration.

Death or Insanity

o "I'll sell you my watch for $50" o 6/12/10 - Offeror dies o 6/24/10 - "I accept the offer" (offer terminated - becomes new offer) o Death or insanity of either party prior to acceptance automatically terminates offer

Battle of the Forms Rule

o A contract may be formed even though there is a variance between the offer and the acceptance o Example: Offer says $50 on 6/10...Acceptance says $50 on 6/11

Mirror Image Rule

o Acceptance must be and IDENTICAL match o Otherwise, it is treated as a new offer o Example: If you say $50 and they only have $49.99, this is a new offer...if they find the other penny then this is another new offer for $50.

in a promissory estoppel case, a court will generally award

only reliance damages

promissory estoppel case, a court will generally award:

only reliance damages.

a greater duty to reveal problems in the business because her daughter assumes she will be honest

pamela is planning to sell her home decorating store to her daughter. pamela has

Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?

patty may win under the doctrine of promissory estoppel

generally, constitutional protections do not apply to acts of

privately owned businesses

Ikerd was entering the United States from a trip abroad when the Customs Service confiscated some goods she had purchased and brought back with her. The determination of whether the government is attempting to take property and what type of hearing the Customs Service must offer Ikerd is an analysis of

procedural due process.

As English judges were developing the common law of contracts in the twelfth and thirteenth centuries,

promises were found not binding unless written and sealed.

Two individuals signed a contract that was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence offered to:

prove the existence of a contemporaneous oral agreement modifying the contract

If Jane persuades Linda to buy her horse by telling Linda that the horse runs "like the wind," then Jane's statement is:

puffery

If Jane persuades Linda to buy her horse by telling Linda that the horse runs "like the wind," then Jane's statement is:

puffery.

Which of the following damages might be awarded against one who breaches a contract and whose misconduct is characterized as gross, willful, wanton or reckless?

punitive damages

Contracts that do not arise from mutual agreement but are created by courts to avoid unjust enrichment are:

quasi-contracts.

when an appellate court disagrees with the trial court decision and send the case back to the trial court for additional proceedings, this is called

remanding

Statements of fact about the past and present are called

representations and warranties

the discovery stage of a civil lawsuit includes

requests for admission, depositions, written interragatoreis

if the title of an appellate court case appears as roby v. phyfer who is the appellant and who is the appellee?

roby is the appellant and phyfer is the appellee

8. Rebecca, in Honolulu, faxes a job offer to Spike, in Pittsburgh, saying, "We can pay you $55,000 per year, start- ing June 1." Spike faxes a reply, saying, "Thank you! I accept your generous offer, though I will also need $3,000 in relocation money. See you June 1. Can't wait!" On June 1 Spike arrives, to find that his position is filled by Gus. He sues Rebecca.

spike wins nothing

limit the time in which an injured party may sue

statute of limitations

The doctrine of preemption is based on the Constitution's

supremacy clause

if there is a conflict between a state and federal law, generally the federal law will prevail because of the

supremacy cluse

Mary owes $3,800 on her credit card. She sends the credit card company a check for $800 with the notation "payment in full" on the check. If the credit card issuer cashes the check,

the check may be subject to a UCC exception to the general rules for accord and satisfaction cases involving checks.

The states have a severely restricted power to enact laws that affect interstate commerce. This concept is called

the dormant aspect of the Commerce Clause.

John enters into a contract to paint Chad's house. When Chad decides on a color, John will buy the paint and paint the house for the price of $2,500. This contract is governed by:

the common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods.

Which of the following is generally NOT in the introductory paragraph of a contract?

the covenants of the contract

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for damages. Neal will be able to recover

the difference between Solomon's contract price and the amount paid by Renny.

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for damages. Neal will be able to recover:

the difference between Solomon's contract price and the amount paid by Renny.

The three branches of government in the United States are

the executive, legislative, and judicial

The Bill of Rights refers to

the first ten amendments

the bill of rights refers to

the first ten ammendments of the constitution

a misdemeanor is distinguished from a felony based upon

the length and place of possible imprisonment

If an offer specifies no time limit in which to accept,

the offeree has a reasonable period during which to accept.

In a contract modification, the phrase "charged with such amendment" refers to

the party who will be adversely affected by the change.

which of the following is not true about courts of equity?

the provided for trials by jury

Spencer, an adult of sound mind, has the legal capacity to contract.

true

seller's form clearly states no warranty is included. The buyer's form states that the seller warrants the goods for one year. In this case:

the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out.

The intent of the offeror to extend an offer to the offeree is generally determined by reference to

the words and conduct of the offeror.

intent of the offeror to extend an offer to the offeree is generally determined by reference to:

the words and conduct of the offeror.

Under the natural law theory of jurisprudence, an unjust law is no law at all.

true

Compensatory damages are typically assessed against the breaching party:

to put the non-breaching party in the position it would have been in if the contract hadn't been breached.

A contract may violate public policy even if the agreement does not violate a statute.

true

In an option contract, the offeror may not revoke an offer during the option period.

true

appellate courts generally accept the factual findings of the trial court T/F

true

entrapment can be a valid defense to a criminal act T/F

true

if the president vetoes a bill and if both the house and senate repass the bill by a two-thirds margin, the bill becomes a law T/F

true

legal right to sue for a breach of contract is subject to a statute of limitations.

true

10 days

under the merchant's exception rule of the UCC, within a reasonable time of making an oral contract, if a merchant sends a written confirmation to another, and if the confirmation is definite enough to bind the sender herself, then the merchant who receives the confirmation will also be bound by it unless he objects in writing within

assume that chris goes to algonquin j. calhoun, esquire, to represent him for a DUI and after verbally agreeing to do the work for chris, calhoun charges him $5,000 which is a fair fee.chris takes bankruptcy after calhoun gets the dui dismissed and the lawyers bill is discharged. is this debt void, valid, voidable, or unenforceable?

uneforceable

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a

unilateral, implied contract

A(n) ______ contract is a promise, or set of promises, the breach of which the law provides a remedy.

valid

The United States Supreme Court has the power to

void laws passed by congress

A(n) _______ contract is illegal from the beginning and may not be enforced by either party; a(n) _______ contract is legal but permits one party to escape, if he or she so wishes.

void; voidable

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

voidable

Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the office one night, Adam, wearing a mask, stepped out from behind some bushes. He pointed a handgun made out of licorice at her and demanded her purse. He then pushed the candy gun to her head and told her if she told anybody he'd kill her. Linda was very scared during the whole incident. She did not think it was funny when Adam pulled the mask off and took a bite out of the gun as he gave her the purse back. Did Adam commit the tort of intentional infliction of emotional distress?

yes, as his conduct was intentional

If the title of an appellate court case appears as Jones v. Smith,

you cannot determine which party is the plaintiff, because when a defendant loses a trial and files an appeal, some courts (but not all) reverse the names of the parties.

The law of which country provided the roots for U.S. law?

England

If a court finds as a matter of law that a clause of Superior Siding's contract was unconscionable at the time the contract was made, the court must refuse to enforce the contract.

FALSE

If both parties believe they have a binding contract, this belief is controlling if there is later a question about the validity and enforceability of the agreement.

FALSE

The most common equitable remedy for breach of contract is damages. T/F

false

Vick Valve Company makes valves for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, "To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list. Vick Valve must honor the prices on the list and sell the valves to Honest Hank.

false

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olga replies, "I accept," and hands him $2,000. A contract exists.

false

When Randy, an electrician, accepted a job with Buren Construction, Randy signed the following agreement, "Upon termination of my employment with Buren Construction, I agree never to work for another employer as an electrician." If Randy resigns from Buren Construction, this agreement would be upheld under the theory of freedom of contract.

false

While at the park, Tasha saw a small child fall into the lake. Tasha did not know the child. Under the common law of most states, Tasha has a legal duty to take reasonable steps to assist the child if Tasha is able to help and such help will not jeopardize Tasha's well-being.

false

While hunting, Roger enters onto Adele's property without permission and is injured by into a ditch that was obscured by the underbrush. Under the common law, Adele is liable for Roger's injuries. T/F

false

Wilfred was driving too fast for the icy road conditions and hit Sally's car. Sally can sue Wilfred in criminal court.

false

You should hire a lawyer to review any legal papers you have to sign, especially such papers as lease agreements or car purchases.

false

a sales clerk at neilson's department store observed a customer remove some lipstick from a display case and put it in her purse. if necessary to stop the shoplifter from feeling, neilson's sales clerk can do so far as to tackle the customer in order to stop her from fleeing T/F

false

a valid contract can legally be voided by either party T/F

false

barbara offers to buy tailors blaw textbook. taylor is the offeror T/F

false

becky and bill live in north carolina. they sure gold strike casino's insurance company an illinois corporation in federal court and ask $150,000.00 in damages. federal court has exclusive subject matter jurisdiction of this case due to the diversity of citizenship between bill and becky and the casinos insurer T/F

false

extortion is the crime of offering money or property to a public official for the purpose of gaining favorable treatment by that official T/F

false

for purposes of tort law, a licensee is a person invited upon land as a member of the public or for a buisness purpose T/F

false

generally, neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

false

hall was arrested for burning the us flag in a protest of a newly enacted executive order outlawing private citizens ownership of assault weapons. since hall is protesting an executive order, his action is not protected speech under the first ammendment T/F

false

if gloria threw a rock which hit merle, she is liable for an intentional tort of battery only if she intended to injure or harm merle T/F

false

if sergeant sessums, an oxford police officer, stops teds car for a traffic offense, sessums may search the passenger compartment of ted's car without a warrant only if he observes in plain view evidence of drug paraphernalia in the car T/F

false

in the us, there is never a right to a jury trial in a civil case T/F

false

kathy offers to sell miles her house for $95,000 and she tells miles that the offer will be open for 10 days. miles pays kathy $10 for keeping it open that long. by the eighth day, miles has not accepted the offer and kathy gets angry and she tells miles that the house is no longer for sale. on the morning of the tenth day, miles informs kathy that he is accepting her offer of $95,000. kathy can legally terminate this offer before the tenth day T/F

false

mary goes into honest harry's electronics and purchases a tv. mary agrees to pay for the tv in 30 days on the stores 30 day same as cash plan. this is an executed contract. T/F

false

obscene speech is protected by the first ammendment T/F

false

parker offers to sell his diamond earring to mary rodgers. sally overhears the offer and says i accept the offer. mary rodgers can no longer accept this offer under these circumstances T/F

false

party may make either an assignment or a delegation, but cannot make both an assignment and a delegation simultaneously.

false

srawly corp. runs an adult bookstore in metro city, leasing the building from megacorp. then, metro city passes an ordinance prohibiting the sales of the types of merchandise found in adult bookstores. strawly is still bound to the contract. T/F

false

the "takings clause" permits the government to take private property by eminent domain for any reason, or for no reason T/F

false

When a contract falls within the statute of frauds but is not reduced to a writing, the contract is:

unenforceable

in a _____ contract, a promise is exchanged for an act.

unilateral

in a ______ contract, a promise is exchanged for an act or a forebearance from acting

unilateral

Intent to Contract

• Present intent • Words, acts, and circumstances • Objective standard

Which of the following represents a unilateral offer?

"I will pay you $50 if you mow my lawn."

Which of the following statements, if made by a seller who knows the statement to be untruthful, would NOT be misrepresentation of material fact resulting in a cause of action for fraud?

"there is no better car in the world"

Authorized Means: "authorized means is

"you may accept by" Way the offer was made (if the offer doesn't say)

Bob, a house builder, contracts with Ollie to build a house on Ollie's lot. The total price of the construction is $100,000, $20,000 of which will be Bob's profit. After Bob has put $10,000 worth of materials into the house, Ollie wrongfully refuses to let him finish the house. If Bob sues for damages, he will be able to collect

$30,000

Bob, a house builder, contracts with Ollie to build a house on Ollie's lot. The total price of the construction is $100,000, $20,000 of which will be Bob's profit. After Bob has put $10,000 worth of materials into the house, Ollie wrongfully refuses to let him finish the house. If Bob sues for damages, he will be able to collect:

$30,000.

legally enforceable

(can take them to court if they don't) Promise or set of promises

Which of the following offers are considered to be irrevocable for a given period?

--Option contracts. --firm offers --A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period.

Nevada passed a law banning all commercial billboards along state highways to improve the appearance of the environment. If this law were to be challenged, which of the following would a court examine to determine if the law is constitutional?

--It would have to be shown that the law directly and materially advances the state's goal of a more aesthetically pleasing environment. --It would have to be established that the law furthers an interest of the state of Nevada to create a more aesthetically pleasing environment. --It would have to be shown that the law reaches no further than necessary to promote the state goal.

For the purposes of the statute of frauds, an interest in land includes

--a long term lease on an apartment --an easement --real estate mortgage

The UCC deals with unconscionability in a contract by providing that a court may:

--enforce the remainder of the contract without the unconscionable clause. --limit the application of any unconscionable clause as to avoid any unconscionable result. --refuse to enforce the contract.

Common Law Requirements (need all 5)

1. Offer 2. Acceptance of the Offer 3. Consideration (offer but no exchange) 4. Capacity (do they understand) 5. Legal Purpose (can't be to kill someone)

must give the employer at least 60 days' notice before going out on strike.

A company's collective bargaining agreement has expired and negotiations are underway for a new one. After one exhausting session, union leaders have decided management will not bargain in good faith. The union declares it will be going out on strike the following midnight if an agreement is not reached. The union:

fore majeure clause

A contract between a company in the U.S. and one in China, contained a clause that stated: "If an event happens which is extraordinary and out of the control of the parties such as a strike, act of God, fire, accident, or transportation difficulties, then the affected party shall be relieved of its obligations under the contract." This type of clause is:

Acme Co. offers to buy 1000 widgets from Widget World Co. The written offer provides for 1000 at $10 per widget, to be delivered May 1. The offer has no other provisions. Widget World sends a written acceptance. However, the acceptance also states that if any claim arises under this contract, Widget World must be notified within 10 days. Acme does not object to this provision. Both parties are merchants. Which of the following best describes this situation?

A contract exists. If the additional terms are construed to be material, they are not part of the contract. If the additional terms are not material, they are part of the contract.

True

A court may, at times, discharge a party who has not performed.

True

A party injured by fraud generally has the choice of suing for damages or rescinding the contract.

False

A party to a contract has a duty to investigate the other party's factual statements.

What is not required to establish promissory estoppel?

A promise made by the plaintiff in response to the defendant's promise.

The union cannot strike because of the no-strike clause in the contract.

A union declares its workers are going on strike. The employer states the collective bargaining agreement is still in force for another eight months and that it contains a no-strike clause. The union claims the CBA's no-strike provision is not binding since new union leadership is in place. Which of the following statements is correct?

True

A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee. The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.

A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising. The contract was most likely written by

A+ Modeling Agency's lawyer.

AAA and XXX companies are both major international conglomerates. They are negotiating a contract whereby AAA will install a computer system for XXX. One clause in the contract states that AAA will not be liable for damages caused by the negligent installation of the computer system, except that AAA warrants the system and will fix any problem for a period of two years following installation. AAA completes the installation of the computer system. XXX loads extensive amounts of information on the system, but all of it is destroyed because AAA negligently installed the memory chips. AAA fixes the memory, but XXX incurred significant expenses in recreating the lost information. XXX sues for these expenses. AAA defends with the noted clause in the contract.

AAA wins; this exculpatory clause is enforceable.

Which of the following offers are considered to be irrevocable for a given period?

ALL (firm, option, writing)

The contractor can collect from the estate only.

Abby dies, and her good friend, Claire is appointed to administer Abby's estate. Abby's house was in poor condition, so Claire orally hired a contractor to make repairs. Claire also orally promised that if the estate could not pay the repair bill, he would pay it even though he does not live in the house and has no entitlement under Abby's estate. The estate does not pay the repair bill. Who can the contractor collect from, if anyone?

False

Abdulla hired Granite Construction to build an addition onto his home. Granite Construction dug the foundation but then abandoned the project. Granite Construction is entitled to receive the full contract price minus the value of the defects.

Maybe. Robert should go to court under the theory of promissory estoppel. Alfred made an oral promise that Robert relied upon, and the way to avoid injustice is to enforce the promise.

Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his moving expenses up to $10,000 if Robert would quit his job and come to work for him at his manufacturing plant. Robert agreed to do so, but requested a written contract. Alfred assured him that the company attorney would prepare such a contract as soon as possible, but Alfred needed Robert to start at once. Accordingly, Robert sold his house, moved his family, and commenced to work for Alfred. He was fired without cause two months later. No written contract was ever executed. Can Robert enforce Alfred's oral promise?

UCC deals with unconscionability in a contract by providing that a court may:

All of the above.

Alpha and Xenon companies are both major international conglomerates. They are negotiating a contract whereby Alpha will install a computer system for Xenon. One clause in the contract states that Alpha will not be liable for damages caused by the negligent installation of the computer system, except that Alpha warrants the system and will fix any problem for a period of two years following installation. Alpha completes the installation of the computer system. Xenon loads extensive amounts of information on the system, but all of it is destroyed because Alpha negligently installed the memory chips. Alpha fixes the memory, but Xenon incurred significant expenses in recreating the lost information. Xenon sues for these expenses. Alpha defends with the noted clause in the contract.

Alpha wins; this exculpatory clause is enforceable.

can enforce the contract against Amy because the statute of frauds is satisfied under this situation.

Amy Hudson has been trying to purchase Glen Cappel's antique desk for some time, but Glen has been reluctant to sell. One evening Glen said to Amy, "Okay, I'll sell the desk for $550." Amy replied, "Thank you, Glen. I accept." The agreement was not reduced to writing, but Glen and Amy did shake hands. Two days later, Amy sent Glen a letter outlining the terms of the agreement, and stating that she would deliver $550 cash according to the agreement within ten days. The letter was signed, "Best regards, Amy." Later, Amy had second thoughts, and refused to go through with the purchase. Nothing had been exchanged at this point. Glen:

True

An employment contract is an example of a personal satisfaction contract.

A doctor-patient relationship

An example of the type of relationship required to find undue influence would be:

Which of the following exculpatory clauses will most likely be enforceable?

An exculpatory clause that relieves a riding stable of negligence.

Jerry offers to shovel the snow from Ben's driveway for $35. Ben replies "OK." This is an example of:

An express, Bilateral Contract.

"I'll sell you my car if I decide to sell it" is an example of:

An illusory promise.

Sam, a shopkeeper, dies unexpectedly at the age of 46. His best friend, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?

An oral statement such as this is not enforceable because this promise is within the statute of frauds.

All of the answers are correct

Angie, a minor, wants to avoid a contract she made with Cumberland Cycles. Which is a valid way for Angie to disaffirm the contract?

Contemporary law's principle of collective responsibility, such as all partners being personally responsible for the debts of the partnership, had its roots in the

Anglo-Saxon method of ensuring public order through tithing.

It was looking like rain early Saturday morning, and Christina became upset after learning from her sources that Beau's old girlfriend was Inviting him over for a "studysession." Before leaving to go to the "library"after the sun popped out, Beau called Christina to confirm Saturday night's plans. Without explanation, Christina spoke very harshly to Beau and stated, "Forget about tonight. I'll have a headache." After hearing this, Beau went to his old girlfriend's place and got drunk. If Christina sues Beau for breach of contract, what should be his best defense?

Anticipatory repudiation by Christina

Virginia borrowed money from G & L Lending at 35% interest per year. The state maximum interest rate is 20% per year. Virginia defaulted on the loan. What amount can G& L collect from Virginia?

Any one of the above may be correct. The answer depends on the particular state law.

False

As a general rule, employers have a legal obligation to disclose information about former employees to potential future employers.

False

Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in recycled paper cartons. A shortage of paper makes paper cartons much more expensive, so Jessie uses styrofoam cartons and ships the eggs. Lester is entitled to cancel the contract based on this deviation of terms in the contract.

Garth's Imports sold a car to Wally on credit for $30,000. Garth assigned to Cassandra all of his rights to receive money from Wally. Cassandra did not inform Wally of the assignment. Therefore, Wally continued to make the next three payments directly to Garth. Shortly thereafter, Garth left the country with the money. If Cassandra sues Wally for the missing three payments:

Cassandra will not be able to collect the money from Wally.

False

Concurrent conditions arise when there is both a condition precedent and a condition subsequent.

The courts will find an implied contract when:

Conduct of the parties indicates they intended an agreement

Thompson raised 80 acres of corn, most of which he used to feed his own cattle. He locally sold what he did not use. Based on the Supreme Court's ruling in Wickard v. Filburn,

Congress may regulate Thompson's farming activity because it has a substantial economic effect on interstate commerce.

Dana may refuse to accept the painting if she really does not like it.

Dana hires Paris to paint a portrait of her poodle, "Mack." The painting is to be done to Dana's personal satisfaction. Upon completion of the painting, which of the following will be true?

Dana hires Paris to paint a portrait of her poodle, "Mack." The painting is to be done to Dana's personal satisfaction. Upon completion of the painting, which of the following will be true?

Dana may refuse to accept the painting if she really does not like it.

and sue for damages whether the misrepresentations were fraudulent or innocent

Deborah purchased a boat from Sun. She later learned that the salesman had made misrepresentations to induce her to make the purchase. Under UCC, Deborah can rescind the contract

Roberto sued Monica for injuries received in a traffic accident. If Monica does not respond to the complaint and summons served by Roberto within the prescribed time limits, Roberto may obtain a:

Default judgment

Derek will win because the writing is sufficient under the statute of frauds.

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2008." Abyan signed the napkin. On May 1, 2008, Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for the price of the land, the most likely result will

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2008." Abyan signed the napkin. On May 1, 2008, Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for the price of the land, the most likely result will be:

Derek will win because the writing is sufficient under the statute of frauds.

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2011." Abyan signed the napkin. On May 1, 2011, Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for the price of the land, the most likely result will be:

Derek will win because the writing is sufficient under the statute of frauds.

Liberty Farm wins; there was failure of a con-dition subsequent.

Dodger bought an insurance contract from Liberty Farm Co. The policy contained a clause stating that all claims for losses had to be reported within 45 days after the date of the loss or the claim would be barred. Time is stated to be of the essence. Dodger sustained a covered farm loss, but did not report it to Liberty Farm until 50 days later. Liberty Farm denied coverage for the claim. If Dodger sues, who wins?

True

E-signatures are valid in all 50 states

Jamie is building a house on her lot. She invites Earnie of Earnie's Excavation to bid on the excavation job. Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky. Based on the assumption that the soil in Jamie's lot will be similar, he and Jamie agree that the excavation will cost $3,000. When Earnie starts digging, he learns there is solid rock under Jamie's lot. Earnie says it will cost an extra $2,500 for the excavation work. Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000. If Earnie sues, the most likely result would be

Earnie wins, as the modification was due to unforeseen difficulties.

Peter, a minor, purchased a car from ACME Motors. Using a fake ID, he misrepresented his age to be 18. The contract is fully executed. Which of the following is correct?

Either b or c may be applicable depending on the law of the jurisdiction in which the contract was formed.

A promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an:

Enforceable requirements contract

entitled to get their jobs back.

Employees of Truan went on strike because Truan refused to bargain in good faith. After the strike, the striking workers are:

An agreement to pay a lesser amount to settle an unliquidated debt is:

Enforceable, as there is consideration

Any contract involving a sale of goods of $100 or more must be in writing.

FALSE

April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on six contracts to sell her computer for $500.

FALSE

Candy, Inc. signed an agreement with Sweet Plantation. Under the contract, Candy, Inc. agreed to purchase all the sugar cane Sweet Plantation grew during the coming season. This contract will be unenforceable due to its vagueness.

FALSE

Contracts generally do not require bargaining that leads to an exchange between the parties.

FALSE

Contracts in which one party agrees to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.

FALSE

Courts normally require adequate consideration.

FALSE

Dr. Gonzalez ordered specialized surgical equipment from Physician's Supply Co., but his order was not delivered by the agreed date. Gonzalez is under no obligation to minimize damages since the contract was breached by Physician's Supply, not Gonzalez.

FALSE

Either party may demand rescission of a fully executed oral contract that was required to have been in writing under the statute of frauds.

FALSE

Fraudulent, but not innocent, misrepresentation permits the injured party to rescind a contract.

FALSE

Hannah orally agrees to sell her house to Brett for $175,000. If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay, most courts will not enforce the contract since it was not in writing.

FALSE

Irving is shopping at the local Computers R Us store and agrees to buy a powerful computer for his home "on the condition of personal satisfaction." If Irving takes the computer back to the store for no reason other than that he doesn't like the computer, then the seller will have no choice but to accept the computer and terminate the contract.

FALSE

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

FALSE

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.

FALSE

Megan agrees to sell Neff her quartz watch but they do not specify a price. In such a case, the court would not enforce the agreement because all of the essential terms are not present.

FALSE

Morality plays no part of gambling contract legality.

FALSE

Most contracts are discharged by mutual agreement.

FALSE

On Monday, Harry puts an offer in the mail to Sally to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sally he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning.

FALSE

Pushy Pat, a persuasive salesman, talked Naive Nancy into purchasing something she didn't really need or want. Naive Nancy may rescind the contract because of undue influence.

FALSE

Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee. The coffee was to be delivered on September 1. Since the contract included a date for performance, time is of the essence and the delivery date is strictly enforceable.

FALSE

Ramona orally agreed to work for Brahma, Inc. for the rest of her life for $50,000 per year. This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

FALSE

Strawly Corp. wants to sell land which has toxic waste underground. It may shift all the responsibility for environmental cleanup to the buyer by including such a provision in the sales contract.

FALSE

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

FALSE

UCC does not apply to contracts for the sale of goods if the value of the goods is less than $500.

FALSE

UCC requires consideration for agreements modifying contracts for the sale of goods.

FALSE

Upon the recommendation of a friend, Hope hires Joey to rewire her kitchen and he completes the work within the time agreed. Then Hope finds out that Joey is not a licensed electrician, and she refuses to pay him for the work. A court will enforce the agreement because otherwise Hope would be unjustly enriched.

FALSE

Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $75, then this is an implied, bilateral, executory contract.

FALSE

Vern Valve Company makes valves for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, "To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list. Vern Valve must sell the valves to Honest Hank for the prices quoted on the list.

FALSE

party to a contract has a duty to investigate the other party's factual statements.

FALSE

valid contract can legally be voided by either party.

FALSE

A case citation that reads: Kinders v. Mathern, 503 N.E.2d 24 (1995) indicates that the case may be found in the 24th volume of the North Eastern Reporter at page 503.

False

A rule that establishes who may testify on your behalf in court is an example of a substantive rule of law.

False

A valid contract can legally be voided by either party.

False

Abby hired Granite Construction to build an addition onto his home. Granite Construction dug the foundation but then abandoned the project. Granite Construction is entitled to receive the full contract price minus the value of the defects.

False

Abdulla hired Granite Construction to build an addition onto his home. Granite Construction dug the foundation but then abandoned the project. Granite Construction is entitled to receive the full contract price minus the value of the defects

False

Alice offers to sell her car to Bob for $500, and Bob accepts. Alice's car has a market value of $1000 but this fact is unknown to Alice. The contract is unenforceable.

False

Alice signs a contract with Bob to buy Bob's house for $150,000 "if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years." Assume that Alice tries but is unable to obtain the described loan, and therefore refuses to proceed with the purchase. Alice is in breach of the contract.

False

All oral contracts are quasi-contracts until they are completely executed

False

Punitive damages are often awarded in breach of contract cases.

False

Denton agreed to build a cedar deck for the Thrashers for $7,000. After he began the work, the Thrashers asked him to add cedar flower boxes at one side. Denton replied he would, but it would cost an additional $600. The Thrashers would not be obligated to pay the additional sum because the original agreement already obligated Denton to complete the deck for $7,000.

False

Dr. Gibson ordered specialized surgical equipment from Physician's Supply Co., but his order was not delivered by the agreed date. Gibson is under no obligation to minimize damages since the contract was breached by Physician's Supply, not Gibson.

False

Emails and their attachments are not subject to pretrial discovery

False

First Bank has agreed to loan Teresa $10,000 for use in her cosmetics business. If Teresa sells the business to Melissa before the loan is disbursed, Teresa can assign her right to the loan to Melissa.

False

Generally, neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

False

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

False

If Mike asks a court to order Pamela to stop reprinting his copyrighted material, he is seeking a legal, rather than an equitable, remedy.

False

If a salesperson says, "This is a great car and it's really fun to drive," but the car turns out to be a lemon, the salesperson has committed fraud.

False

If a salesperson says, "This is a great car," but the car turns out to be a lemon, the salesperson has committed fraud.

False

If the President vetoes a bill, it can still become law if both the House and the Senate approve it with a 51% majority.

False

In order for a federal court to have jurisdiction, there must be a federal question involved and at least $75,000 in dispute.

False

Incidental beneficiaries generally have the right to sue for breach of contract.

False

Injunctions are commonly used by courts to force people to complete their contractual obligations.

False

John was a licensed physician in Michigan. When he retired to Florida, he started providing medical services to the people in his condo, relying on his Michigan license. Isaac, John's next- door neighbor, owed John $2000 for medical services. John will be able to enforce the contract he made with Isaac.

False

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

False

Lori works for Big Corporation as an "at will" employee. Richard, owner of a small store, offers to pay Lori much more money if she will leave Big Corp and work for his store. When Lori starts to work for Richard, Big Corp correctly claims Richard is liable for tortious interference with a contract.

False

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.

False

Marvin contracts with House Painters R Us to paint the interior of his house lemon yellow throughout. The total contract price is $7,000. House Painters R Us's anticipated profit on the job is $4500. If Marvin breaches the contract before House Painters R Us has begun work on the job and has not incurred any expenses, then its damages will be $7000.

False

Methods of alternative dispute resolution include litigation and mediation.

False

Negligence and strict liability are both based upon fault

False

Nella offers to sell her crop of strawberries, which have just been picked, to Morgan's Market. Since she does not specify a time limit for acceptance, Morgan's can accept the offer the following week, as long as Nella has not revoked it.

False

On Monday, Harry puts an offer in the mail to Sally to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sally he has changed his mind and the guitar is no longer for sale. The revocation is effective upon dispatch.

False

Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $2,500 cash, payable on April 30, 2006." This writing is sufficient under the statute of frauds to make the contract enforceable.

False

Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash, payable on April 30, 2012." This writing is sufficient under the statute of frauds to make the contract enforceable.

False

Primary methods of alternative dispute resolution include litigation and mediation.

False

statement, "You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May" does not create a condition because it does not include the phrase "provided that."

False

True

Firing an employee for her refusal to violate the law would raise a claim of wrongful discharge.

True

Frank suffers from a mental impairment due to a brain injury from a airplane accident. He contracts with Glena to purchase her dining room furniture. A month later, he tries to void the contract. If he is unable to return the furniture, a court will not rescind the agreement unless Frank can show that Glena acted in bad faith.

The Grand Performance Hall is in the process of remodeling and is scheduled to open for business after being closed for 50 years. As part of the remodeling, it is installing a new sound system. The sound system is to be installed by Sound Systems, Inc. on or before April 10. Opening night of the hall is May 1. The contract states that "time is of the essence" because of the opening-night deadline. Sound Systems has some financial difficulties and doesn't deliver the system until April 20. Grand Hall refuses to accept it, and Sound Systems sues. What will be the result?

Grand Hall wins; the contract date was strictly enforceable.

Grand Hall wins; the contract date was strictly enforceable.

Grand Performance Hall is in the process of remodeling and is scheduled to open for business after being closed for 50 years. As part of the remodeling, it is installing a new sound system. The sound system is to be installed by Sound Systems, Inc. on or before April 10. Opening night of the hall is May 1. The contract states that "time is of the essence" because of the opening-night deadline. Sound Systems has some financial difficulties and doesn't deliver the system until April 20. Grand Hall refuses to accept it, and Sound Systems sues. What result?

not obligated to pay under the frustration of purpose doctrine.

Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities. The festivities were unexpectedly cancelled because of concern over a terrorist attack. Harry is:

Psychologist Holtz is working with a patient, Rebecca, who has expressed the intention to seriously harm two of her acquaintances. If you apply the principle set forth by the Supreme Court of California in the Tarasoff v. Regents of the University of California case, Psychologist Holtz:

Has a duty to exercise reasonable care to protect foreseeable victims of Rebecca's violence.

Unenforceable Contract

Has all 5 elements But not enforceable (must be in writing)

Karen is a strong swimmer. One afternoon she is having a picnic at a lake and sees a man she does not know drowning. Generally, Karen:

Has no legal duty to rescue the man.

False

If a salesperson says, "This is a great car and it's really fun to drive", but the car turns out to be a lemon, the salesperson has committed fraud.

False

If employees wish to organize a union, the employer is prohibited from distributing written notices to employees stating is is opposed to union activity within the company.

which case is the offer still valid at the time the acceptance is made?

In a face-to-face transaction, Pat offers to sell Mike his stereo and Mike accepts.

False

In contract law, a minor is someone under the age of 21.

False

In negotiating the purchase of a vehicle, the sales representative told Karla, "I guarantee that you will be personally satisfied with this car." The guarantee was written on the contract when Karla purchased the car. If a controversy arises over Karla's satisfaction, the court will apply a subjective standard, which means Karla's judgment must be reasonable.

be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises.

In order to satisfy the statute of frauds, a writing must:

this is material breach. Jackie owes nothing to Charles

Jackie hires Charles to lay new carpet in her bedroom. Charles does such a bad job, that the only way to fix the carpet is to start over and relay the carpet. Which of the following best describes this situation?

This is a unilateral mistake, but one where ACE Corp. knew that a mistake had been made. Jeff should be able to rescind the contract

Jeff was a subcontractor, bidding on a contract for ACE Corp., the general contractor. When adding up the total of materials and labor, Jeff's secretary mistakenly moved the decimal point one place, ending up with a bid of $3500 rather than $35,000. ACE Corp. accepted Jeff's bid, mostly because all the other bids were over $30,000. When Jeff learned of the mistake, he tells ACE Corp. that he cannot do the job for $3500. If ACE Corp. sues to enforce this contract, what is the most likely result?

it was legal for Mark to say what he said if it was true and Mark was not motivated by ill will.

Jessica was a former employee of Mark. When potential employers called Mark for a reference about Jessica, he stated she was not a very good worker and had been fired for excessive absences. He said he believed Jessica was on drugs, but he did not know for sure. Jessica learned what Mark was saying and sued him. In most states:

Jim can recover even if he was negligent and violated the employer's rules.

Jim was a mechanic. One day when he attempted to weld a car's gasoline tank, it exploded and he was hurt. He filed to collect workers' compensation. His employer resisted on grounds that Jim had been negligent and had also violated the express regulations of the company when he attempted to weld a gasoline tank. Which statement is correct?

Jack mails an offer to Joan that states, "I offer to sell you my car for $2000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result?

Joan is not bound. Generally an offeree must say or do something to accept an offer.

Barb has been a children's day care provider for several years in the small town of Sallton. She has decided to give it all up and move to the big city for excitement and adventure. She sells her business to Ken, agreeing not to open a competing business within five miles of Sallton for a period of nine months. After five months of the big city life, Barb is broke and moves back to Sallton. She opens a small day care business. Ken sues on the noncompete clause. What is the most likely result?

Ken wins. The agreement is enforceable.

Barb has been a children's day care provider for several years in the small town of Sallton. She has decided to give it all up and move to the big city for excitement and adventure. She sells her business to Ken, agreeing not to open a competing business within five miles of Sallton for a period of nine months. After five months of the big city life, Barb is broke and moves back to Sallton. She opens a small day care business. Ken sues on the noncompete clause. What is the most likely result?

Ken wins. The agreement is enforceable.

lose because he will not be able to prove reliance on the misrepresentation

Larson entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrester answered all of Larson's questions, Forrester and Larson agreed to a sale. As Larson was leaving to get the money to pay for the car, Forrester told Larson that Robert Redford formerly owned the car. Larson later learned that Robert Redford had never owned the car. If Larson seeks to rescind the deal based on Forrester's statement, Larson will:

Dodger bought an insurance contract from Liberty Farm Co. The policy contained a clause stating that all claims for losses had to be reported within 45 days after the date of the loss or the claim would be barred. Time is stated to be of the essence. Dodger sustained a covered farm loss, but did not report it to Liberty Farm until 50 days later. Liberty Farm denied coverage for the claim. If Dodger sues, who wins?

Liberty Farm wins; there was failure of a condition subsequent.

None of the above; the contract duties are dis-charged.

Linda agrees to buy Missy's Greyhound race dog for $2,000. Linda is to deliver the money and take possession of the dog the next morning. That night, running his best race ever, the dog runs away from Missy, never to be seen again.

Which of the following statements is incorrect concerning liquidated damages?

Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.

full performance

M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged by:

Marty has ratified the contract and is now bound by its terms

Marty, a 16-year old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest were paid in full. It is three years later and Marty has not disaffirmed the contract and has made regular payments on the cycle since turning 18. Which is correct?

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

Mary's counteroffer terminates Carl's offer of $1,500.

is protected under COBRA, which allows her continued health insurance coverage for 18 months as long as she pays the cost.

Maxine lost her job as an electrical engineer with a large company which had provided health insurance benefits for Maxine and her family. She now:

Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his moving expenses up to $10,000 if Robert would quit his job and come to work for him at his manufacturing plant. Robert agreed to do so, but requested a written contract. Alfred assured him that the company attorney would prepare such a contract as soon as possible, but Alfred needed Robert to start at once. Accordingly, Robert sold his house, moved his family, and commenced to work for Alfred. He was fired without cause two months later. No written contract was ever executed. Can Robert enforce Alfred's oral promise?

Maybe. Robert should go to court under the theory of promissory estoppel. Alfred made an oral promise that Robert relied upon, and the way to avoid injustice is to enforce the promise.

does not have to give the striking employees their jobs back since this was an economic strike.

Mega Corp. hired permanent replacement workers when its union went out on strike seeking better medical and retirement benefits. After the strike is over, Mega Corp.:

No. Though at-will employees do not have extensive rights relative to job security, they may not be legally fired for refusing to perform an illegal act.

Megan was employed by a large company. Her supervisor told her to falsify government reports. She refused and was fired. She sued for wrongful discharge. Her employer claimed that, since Megan was an at-will employee, she had no legal right to claim the company was liable for damages. Is the employer right?

condition subsequent

Melody is a recent graduate of State Law School. She lands an impressive employment contract with the firm of Dewey, Cheathem, and Howe, Attorneys at Law, on the stated provision that she pass the upcoming bar exam. This provision in the employment agreement is a(n):

True

Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. Before construction begins, the local zoning board changes the zoning of the parcel and those adjoining it to residential use only. Monumental's contract with Champion is discharged.

False

Most contracts are discharged by mutual agreement.

True

Mrs. Elsey was an elderly woman who relied on Nancy to visit her every day and prepare her meals. Nancy convinced Mrs. Elsey that she should give Nancy her house so they could live together and Nancy could better care for her, although Nancy really just wanted the house and had no intention of moving in to take care of Mrs. Elsey. Although Mrs. Elsey agreed, she may rescind the contract because of undue influence.

When Myrtle comes home from work one evening, she finds that her yard has been mowed and trimmed. Later, a man comes to collect for the yard work done. Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work. Which of the following answers is most accurate?

Myrtle would not have to pay for the yard work.

Linda agrees to buy Missy's Greyhound race dog for $2,000. Linda is to deliver the money and take possession of the dog the next morning. That night, running his best race ever, the dog runs away from Missy, never to be seen again.

None of the above; the contract duties are discharged.

If Rudy offers Oscar $200 for his $600 stereo and Oscar agrees, a court will probably:

Not set aside the agreement based on the adequacy of the consideration

On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and agrees to pay Deb $600 on January 27. Which of the following is correct?

On January 16, the contract was executory.

intentional infliction of emotional distress.

Orson was fired from his job behind the ticket counter at the airport. He was loudly told to put his personal belongings into a plastic bag and was led out by security guards in front of his co-workers and customers. His supervisor told him not to return. Orson's employer faces potential liability for:

Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?

Patty may win under the doctrine of promissory estoppel.

Either b or c may be applicable depending on the law of the jurisdiction in which the contract was formed

Peter, a minor, purchased a car. Using a fake ID, he misrepresented his age to be 18. The contract is fully executed. Which of the following is correct?

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true?

Police Officer Paul is not entitled to the reward because he was under a pre-existing duty to make the arrest.

True

Prior to the Industrial Revolution, the primary law of employment was that, absent an agreement otherwise, a worker was hired for a year at a time.

Bilateral Contract: (two)

Promise for a Promise Promise to pay you money on if you promise to mow my yard on Saturday (contract made today)

Unilateral Contracts: (one)

Promise made in exchange for an Act Accepts the promise by doing the act - mows lawn on Saturday (contract made Saturday)

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days. The parties negotiated and meant to say in the written agreement, delivery in 50 days. If the two cannot settle this dispute, and Archie still wants to deliver the champagne, then Archie should sue for the remedy of:

Reformation

A subpoena duces tecum is different from an ordinary subpoena in that a subpoena duces tecum:

Requires the person to bring specified documents to the court or administrative hearing.

When a business is concerned about selling to minors because of their right to disaffirm contracts, the business might protect itself by:

Requiring an adult co-signer.

Vicy has not committed an unfair labor practice. An employer may vigorously present anti-union views to its employees.

Ron and several fellow workers of Vicy, Inc., a small manufacturing company, wished to organize a union. When Vicy learned of this activity, it issued a bulletin to all workers stating that a union will only hurt the company and that "we are a family that can solve any problems ourselves -- we do not need union activists from outside our company trying to tell us what to do!" Which statement is correct concerning the bulletin issued by Vicy?

Ron, a minor, goes to the hospital for treatment of the flu. On the new-patient form Ron signs, he agrees to pay for any care or treatment he receives. When billed for the treatment

Ron must pay for the value of the benefit he received, because medical care is a necessary.

Ron, a minor, goes to the hospital for treatment of the flu. On the new-patient form Ron signs, he agrees to pay for any care or treatment he receives. When billed for the treatment:

Ron must pay for the value of the benefit he received, because medical care is a necessary.

commercial impracticability

Ron operates a garbage pickup business. He contracts to pick up garbage from an apartment complex for the next 52 weeks at a price of $150 per week. Unexpectedly, the landfill center where Ron takes the garbage to dispose of it, files for bankruptcy. As a result, Ron must travel an additional 100 miles to the nearest landfill center, turning Ron's expected profit into a loss of $40 per week. Ron's best argument in support of his petition to be discharged from the contract is:

Ron must pay for the value of the benefit because medical care is a necessary

Ron, a minor, goes to the hospital for treatment of the flu. On the new-patient form Ron signs, he agrees to pay for any care or treatment he receives. When billed for the treatment

condition precedent

Sam, the seller, enters into a contract agreement to buy Betty Lou's house on the condition that he is able to secure financing at or below 6% per year. This is a:

can sue Sea Rovers immediately for breach of contract.

Sea Rovers, Inc. contracted to sell 1,000 pounds of shrimp to the Seafood Shack with delivery on June 1. On May 1 Sea Rovers advised the Seafood Shack that it would not be able to deliver the shrimp. The Seafood Shack:

Which of the following is an example of an exculpatory clause?

Seller is not responsible for property damage regardless of the cause of the injury.

Seth told the salesperson at Outdoor Times that he wanted the sleeping bag that was advertised in the Sunday paper; one that would keep him comfortable if the temperature drops to 10 degrees Fahrenheit. The salesperson told Seth they were sold out of that bag, but there were two other styles that would meet his needs and were the same price. Seth insisted he wanted the advertised bag and threatened to sue for breach of contract. Which is true?

Seth will not prevail, as the advertisement was simply an invitation to negotiate.

Yes, since the heart attack occurred while she was at work.

Sharon had a heart attack while she was under stress at work. Can she collect workers' compensation for the time she had to be away from work as she recovered?

If a court orders rescission and restitution of a contract under which Beau sold a baseball card to Ship in exchange for $450:

Ship must return the baseball card and Beau must return the $450.

If the seller has made a substantial beginning in manufacturing custom-ordered goods, then an oral contract may be enforceable regardless of the amount term of money involved in the contract.

TRUE

True

Some courts have held that employee handbooks create binding contract terms.

Sonny, a college student, places a telephone order for a new computer from Computers, Inc. The price of the computer is $1500. The clerk who takes the order sends Sonny a copy of the invoice. The next week, Sonny calls back and tries to cancel his order.

Sonny can cancel the order; the invoice is unenforceable against him, as he did not sign the invoice.

True

Spencer, age 18 and of sound mind, has the legal capacity to contract.

True

T/F: Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral promise. His promise must be in writing to be enforceable.

True

T/F: Bry, Inc. and Gangl Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract. Bry delivered the sweaters and Gangl accepted and paid for them. Since the contract is fully executed, it makes no difference that it was oral.

False

T/F: Either party may demand rescission of a fully executed oral contract that was required to have been in writing under the statute of frauds.

False

T/F: Hannah orally agrees to sell her house to Brett for $175,000. If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay, most courts will not enforce the contract since it was not in writing.

True

T/F: Parol evidence refers to anything (other than the written contract itself) that was said, done, or written before or as the parties signed the contract.

False

T/F: Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash, payable on April 30, 2009." This writing is sufficient under the statute of frauds to make the contract enforceable.

False

T/F: Ramona orally agreed to work for Brahma, Inc. for the rest of her life for $50,000 per year. This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

True

T/F: Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials, RWH, from TriColor Textiles. TriColor had just finished monogramming the blankets when Rest Well called and canceled the order. TriColor will be able to enforce the agreement even though there was no writing.

False

T/F: Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

True

T/F: The Uniform Commercial Code provides that, under certain circumstances, a merchant may be liable on a written contract, even though that merchant has NOT signed it.

True

T/F: The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts, but now the British government has repealed the writing requirement for most contracts.

True

T/F: Under the statute of frauds, the writing must: be signed by the defendant; and must state with reasonable certainty the name of each party, the subject matter of the agreement, and all of the essential terms and promises.

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

TRUE

Banner enters into a contract with Sylvia to buy her house for $150,000. Sylvia decides later not to sell because she is so emotionally attached to the house. Banner insists that he is entitled to the house. Banner can successfully sue for specific performance.

TRUE

Contract rescission can sometimes be based upon a unilateral mistake.

TRUE

Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

TRUE

Lucky, a contractor, enters into a contract with Penny, a homeowner, to remodel her kitchen. The contract provides a specific completion date. The contract provides that if Lucky does not have the job finished by the date, Penny may deduct $100 per day from the contract price until the job is finished. This is an example of liquidated damages.

TRUE

Mary goes into Honest Harry's Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan. This is an executory contract.

TRUE

Most courts hold that a seller of goods is not entitled to consequential damages.

TRUE

One purpose of contract law is to make business matters more predictable.

TRUE

Parol evidence refers to anything (other than the written contract itself) that was said, done, or written before or as the parties signed the contract.

TRUE

Pastor Tom was employed by the First Church for 40 years. On Pastor Tom's retirement there was no adequate pension plan. Two months after the retirement, a wealthy parishioner, in consideration for Pastor Tom's 40 years of faithful service and for being such a "sweet" man, promised to pay him $500 per month for the rest of his life. This promise probably is not enforceable.

TRUE

Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.

TRUE

Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.

TRUE

Roger parked his car at a garage that has a large sign at the entrance saying, "This garage is not liable for items stolen from a car." This type of notice is referred to as an exculpatory clause.

TRUE

Specific performance is available when the subject matter of the contract is unique.

TRUE

Under the statute of frauds, the writing must: be signed by the defendant; and must state with reasonable certainty the name of each party, the subject matter of the agreement, and all of the essential terms and promises.

TRUE

Vernon suffers from a mental impairment due to a brain injury from a motorcycle accident. He contracts with Glena to purchase her dining room furniture. A month later, he tries to void the contract. If he is unable to return the furniture, a court will not rescind the agreement unless Vernon can show that Glena acted in bad faith.

TRUE

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.

TRUE

agreement may violate public policy even if the agreement does not require a party to commit a crime, tort, or violate a statute.

TRUE

illusory promise is not consideration.

TRUE

Tess, a tenant, moves from her apartment in breach of the lease agreement. The landlord Lenny, has a duty to mitigate his damages by attempting to rent the apartment.

True

Tony raped Jane in the parking lot of Joe's Brew Pub. The District Attorney's office prosecuted Tony on rape charges. Subsequently, Jane filed a lawsuit against Tony for money damages. Classify each legal action.

The District Attorney's case was a criminal case; Jane's lawsuit was a civil case.

wage provisions do not apply to professional or managerial employees.

The Fair Labor Standards Act:

companies with 50 or more employees.

The Family and Medical Leave Act applies to:

What is the major distinction between executive and independent agencies?

The President has greater control over executive agencies.

declares that a contract or signature may not be denied enforceability just because it is in electronic form.

The Uniform Electronic Transmission Act (UETA):

Jurisdiction is:

The authority of a court to decide a particular type of case

Scott is trying to introduce oral evidence in court to alter the terms of a written contract he had with Bonnie. Bonnie has raised the parol evidence rule as an objection to Scott's testimony. In which of the following circumstances will Scott not be able to introduce the oral evidence?

The contract has an integration clause in it and Scott's point of contention is covered in detail in the contract, although not to his favor.

Plaza Hotel contracts with EZ Lawn to have EZ mow the grass on the Plaza grounds for the next 10 years. However, there is a clause in the contract that states if the hotel chooses, the contract may be terminated provided Plaza pays EZ $2,000 on termination. Which of the following is correct?

The contract is enforceable because the option to cancel clause is supported by consideration.

Brahma entered into an oral agreement to sell 50 jet skis to Summer Sports. Brahma delivered 20 of the skis on May 1. On June 1, Summer Sports notified Brahma that it will not honor the agreement. Which statement is correct?

The contract is enforceable for 20 jet skis.

Larry has the largest pizza business in the city. He learns that Henry is thinking of opening a competing pizza and pasta delivery business. Larry gives Henry $25,000 to not open his proposed business in the same city. Which statement is correct?

The contract is illegal and void.

Mike owns a house in a poor area of a large city. Mike is on disability and his total monthly income is $700. A sales representative visits his home, selling a water purification system. Mike buys and signs a contract that calls for monthly payments of $500 for the next 10 years. The water system is worth no more than $1000. Mike did not understand what he was signing and thought it was a permission slip allowing the salesman to conduct a free water test to determine the number of toxins in the water. How would a court most likely describe this contract?

The contract is unenforceable because it is unconscionable.

Mike owns a house in a poor area of a large city. Mike is on disability and his total monthly income is $700. A sales representative visits his home, selling a water purification system. Mike signs a contract that calls for monthly payments of $500 for the next 10 years. The water system is worth no more than $1000. Mike thought he was signing a permission slip allowing the salesman to conduct a free water test to determine the toxins in the water. How would a court most likely describe this contract?

The contract is unenforceable because it is unconscionable.

Marty, a 16-year-old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest are paid in full. Which of the following is correct?

The contract is voidable by Marty.

Suppose that Lenny Lawyer enters into an agreement with Cindy Client that his fee will be a percentage of the recovery Lenny obtains for Cindy in her pending divorce. State law makes such a contingency fee arrangement illegal in divorce actions. What will be the probable outcome if Lenny attempts to enforce the agreement?

The contract will be void as violating a statute. Lenny will not be able to recover anything.

The U.C.C. imposes an obligation of good faith on the parties to both output and requirements contracts.

True

Abby dies, and her good friend, Claire is appointed to administer Abby's estate. Abby's house was in poor condition, so Claire orally hired a contractor to make repairs. Claire also orally promised that if the estate could not pay the repair bill, he would pay it even though he does not live in the house and has no entitlement under Abby's estate. The estate does not pay the repair bill. Who can the contractor collect from, if anyone?

The contractor can collect from the estate only.

Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result?

The law would not enforce Jane's promise, as it does not have a lawful purpose.

True

The legal right to sue for a breach of contract is subject to a statute of limitations.

UCC does not require all the terms of the agreement to be in writing.

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common law is that the:

True

The national labor relations act guarantees employees the right to join unions

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?

The offer is terminated by law.

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true?

The offer terminates automatically upon Floyd's death.

Vicki entered into a written contract to buy a car from Valley Motors. During the negotiations, the sales representative said that the car had a two-year full warranty. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." The written contract did not include a warranty. Two months after Vicki took delivery of the car, she discovered that the transmission needed to be replaced. Vicki claimed that it was covered by the full warranty. Will Vicki be able to present evidence as to the sales representative's statements concerning the warranty?

The parol evidence rule will most likely exclude any evidence of the discussion of the warranty.

Hilda owes Lou $3000, which is an undisputed amount. If she offers him her car in full settlement of the debt and he accepts, the agreement is binding and he can no longer claim she owes him anything on the original debt.

True

David and George have a contract wherein George agrees to buy sporting goods and equipment. Since the goods are not to be delivered for several months, they left the price open. Under the UCC, which of the following will be true?

The price will be the reasonable price based on fair market value of the goods at the time of delivery.

False

The statement, "You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May" does not create a condition because it does not include the phrase "provided that."

Jackie hires Charles to lay new carpet in her bedroom. Charles does such a bad job, that the only way to fix the carpet is to start over and relay the carpet. Which of the following best describes this situation?

This is a material breach. Jackie owes nothing to Charles.

Jackie hires Charles to lay new carpet in her bedroom. Charles does such a bad job, that the only way to fix the carpet is to start over and relay the carpet. Which of the following best describes this situation?

This is a material breach, and Jackie owes nothing to Charles.

The elements of a contract are agreement, consideration, legality, and capacity.

True

True

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he can attempt to void the contract.

A company that engages in unethical behavior may suffer severe consequences.

True

A contract may be discharged if both parties agree to cancel or rescind the contract.

True

A contract voidable because of capacity may only be canceled by the party lacking capacity.

True

A defendant who engages in an ultrahazardous activity is liable for any harm that results form the activity

True

A prospective juror was excused from serving after being questioned by the plaintiff's attorney. No reason was given for the rejection. This would be accomplished by the use of a peremptory challenge.

True

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

True

A tort is a violation of a duty imposed by the civil law.

True

A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee. The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.

True

If Carol assigns her rights to receive income from rental property to Ed, then Ed will legally acquire any rights held by Carol to the income

True

According to the U.C.C., one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to grant an appropriate remedy.

True

Administrative agencies exist at the federal, state, and local levels.

True

After being served with a summons and a copy of the complaint, a defendant usually filed a pleading known as an answer.

True

Agreeing not to open a competing business could be consideration.

True

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

True

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

True

All states allow the remedy of rescinding a contract for the sale of goods while still allowing the remedy of suing for damages.

True

An appeals court can rule hat a trial court's ultimate ruling was correct even if the trial court made some minor errors during the trial.

True

An illusory promise is not consideration.

True

An unconscionable contract is one that the court refuses to enforce because of fundamental unfairness

True

Bob enters into a contract with Sylvia to buy her house for $150,000. Sylvia decides later not to sell because she is so emotionally attached to the house. Bob insists that he is entitled to the house. Bob can successfully sue for specific performance.

True

Boris sky dives out of a plane and gets hung up in a tree, hopelessly suspended and swinging precariously in his parachute from the branches of the tree. Natasha sees that he is in trouble and comes to his rescue. Once Boris is safely on the ground, he gratefully promises to give Natasha half of his life savings account. When he changes his mind, Natasha will probably be unsuccessful in enforcing his promise

True

Boris sky dives out of a plane and gets hung up in a tree, hopelessly suspended and swinging precariously in his parachute from the branches of the tree. Natasha sees that he is in trouble and comes to his rescue. Once Boris is safely on the ground, he gratefully promises to give Natasha half of his life savings account. When he changes his mind, Natasha will probably be unsuccessful in enforcing his promise.

True

Bry, Inc. and Gangl Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract. Bry delivered the sweaters and Gangl accepted and paid for them. Since the contract is fully executed, it makes no difference that it was oral.

True

Carswell, a contractor, enters into a contract with Helen, a homeowner, to remodel her bathroom. The contract provides a specific completion date. The contract provides that if Carswell does not have the job finished by the date, Helen may deduct $200 per day from the contract price until the job is finished. This is an example of liquidated damages.

True

Char-Glo Industries contracted with Evergreen Lawn Service to mow and trim the company's lawn. In the contract, Char-Glo included a clause prohibiting Evergreen from delegating its duties. Courts will ordinarily enforce such a clause.

True

Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the U.S. Supreme Court subsequently rules that the law conflicts with the First Amendment of the U.S. Constitution, the statute is void.

True

Consideration can be a promise or an act.

True

Contracts require bargaining that leads to an exchange between the parties.

True

Courts have begun to recognize the tort of negligently retaining a violent employee

True

Damages must be established with reasonable certainty.

True

Disputants Martin and Daulton have hired Thurman to arbitrate their disagreement Arbitration has the advantage of keeping Martin and Daulton out of court

True

During a deposition, a potential witness or a party must generally answer all the questions under oath.

True

Ernest operates an ice cream stand during the months of May, June, July, and August. Ernest's ice cream machine is broken and needs a new part to run. He contracts to have the part shipped to him by special carrier. Ernest emphasizes that the part needs to be delivered by April 25 and the carrier agrees, knowing that Ernest intends to open his stand May 1. If the shipper fails to deliver the part on April 25, Ernest will be able to recover consequential damages caused by the delay.

True

For diversity purposes, a corporation is considered a resident of its state of incorporation AND the state in which it has its principle place of business.

True

Generally, duties may be delegated.

True

Generally, silence is not acceptance.

True

Generally, the assignment of the obligation to perform personal services is valid, as long as the services are equivalent in value.

True

Good faith performance is required in all contracts.

True

If the offer does not specify a type of acceptance, the offeree may accept in any reasonable manner and medium.

True

In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of Regents and found a duty of care to avoid furnishing alcohol to underage consumers. If in 2006 a Flagstaff plaintiff brings a lawsuit against an Arizona university's fraternity for providing alcohol to members under the legal drinking age, the Hernandez v. Arizona Board of Regents case will serve as precedent.

True

In a civil trial for money damages, either party can demand a jury trial.

True

In many states it is illegal to lend money to help someone gamble.

True

In seeking to ascertain whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

True

In the case of Panavision Int'l v. Toeppen, the Ninth Circuit Court of Appeals affirmed the district court's decision. This means that the Ninth Circuit approved the district court's decision and upheld the outcome in the case.

True

L & M loaned Joan $400 so that she could buy her textbook for the current semester. L & M's terms for repayment of the loan are, $200 in two months, $200 in four months, and another $100 at the end of the fifth month. The legal rate of interest on this type of loan is six percent per annum. L & M's loan is usurious.

True

L & M loaned Joan $400 so that she could buy her textbooks for the current semester. L & M's terms for repayment of the loan (including interest) are, $200 in two months, $200 in four months, and another $100 at the end of the fifth month. The legal maximum rate of interest on this type of loan is six percent per annum. L & M's loan is usurious.

True

Larry, a contractor, enters into a contract with Penny, a homeowner, to remodel her kitchen. The contract provides a specific completion date. The contract provides that if Larry does not have the job finished by the date, Penny may deduct $100 per day from the contract price until the job is finished. This is an example of liquidated damages.

True

Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. Before construction begins, the local zoning board changes the zoning of the parcel and those adjoining it to residential use only. Monumental's contract with Champion is discharged.

True

Most, but not all, contract rights are assignable.

True

Nunnsky's Retail sent out newspaper inserts advertising wool suits for $50. In fact, the store had only two, out-of-style suits for sale at this price. Their other wool suits started at $175. This contstitutes bad faith in its advertising, so consumers may have protection through state statutes.

True

One purpose of contract law is to make business matters more predictable.

True

Opinion is generally a valid defense in a defamation lawsuit because it cannot be proven to be true or false

True

Parol evidence is permitted to explain ambiguities or to provide evidence of misrepresentation or duress.

True

Pastor Tom was employed by the First Church for 40 years. On Pastor Tom's retirement there was no adequate pension plan. Two months after the retirement, a wealthy parishioner, in consideration for Pastor Tom's 40 years of faithful service and for being such a "sweet" man, promised to pay him $500 per month for the rest of his life. This promise probably is not enforceable.

True

Punitive damages are intended to punish the defendant for conduct that is extreme and outrageous

True

Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.

True

Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials, RWH, from TriColor Textiles. TriColor had just finished monogramming the blankets when Rest Well called and canceled the order. TriColor will be able to enforce the agreement even though there was no writing.

True

Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.

True

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. In a majority of states, Roger may return the stereo and he does not have to pay for the use of the stereo or the damages.

True

Ron agrees to paint Mike's house for $1000. Before finishing, Ron states it is too hot to finish, and Mike offers to pay $1200 if Ron finishes. Mike's statement that he will pay $1200 is unenforceable.

True

Software clickwrap and shrinkwrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

True

Some contracting parties are intentionally vague in contract terms.

True

Specific performance is available when the subject matter of the contract is unique.

True

Summary judgment is appropriate when there are no essential facts in dispute.

True

You have placed an antique sofa up for auction and the auctioneer has not made any special announcements about the sale. You can withdraw the sofa at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.

True

assignment is effective from the moment it is made, regardless of whether the assignor notifies the obligor

True

court may, at times, discharge a party who has not performed.

True

original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts, but now the British government has repealed the writing requirement for most contracts.

True

party injured by fraud generally has the choice of suing for damages or rescinding the contract.

True

enforceable because of the leading object rule.

Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to borrow money, but to do so, the bank requires Tuan to orally agree to pay the debt of the corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is:

usually says when to use this instead of common law

UCC

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common-law rule is that the

UCC does not require all the terms of the agreement to be in writing

main difference between the UCC requirement for a writing for a contract for the sale of goods and the common law is that the:

UCC does not require all the terms of the agreement to be in writing.

requires the defendant to sign the agreement

Under a contract for the sale of land, the statute of frauds

requires the defendant to sign the agreement.

Under a contract for the sale of land, the statute of frauds:

False

Under the Family and Medical Leave Act, an employee can take up to 12 weeks of paid leave each year for certain personal and family illness situations.

Vince has begun forgetting things and is becoming very difficult to get along with. He is 85, has been ill, and is very fond of his housekeeper Annie. He gives a deed to Annie for all of his real property. At Vince's death, his children, who got only his photograph albums according to the will, ask that the deed be set aside and the land be put back in the estate for purposes of division among all the children. What will be the probable result in this case?

Unless the children can prove that Vince was unable to understand what he was doing, or that Annie used her position to improperly influence Vince, Annie can keep the property.

On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and agrees to pay Deb $600 on January 27. Which of the following is correct?

Until January 16, the contract was executory.

No. The parol evidence rule will most likely exclude any evidence of the discussion of the warranty.

Vicki entered into a written contract to buy a car from Valley Motors. During the negotiations, the sales representative said that the car had a two-year full warranty. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." The written contract did not include a warranty. Two months after Vicki took delivery of the car, she discovered that the transmission needed to be replaced. Vicki claimed that it was covered by the full warranty. Will Vicki be able to present evidence as to the sales representative's statements concerning the warranty?

an integration clause.

Vicki entered into a written contract to buy a car from Valley Motors. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." This is:

Silence as a toxic waste problem on real property that the buyer would not reasonably find

Which of the following is most likely to constitute fraud?

unless the children can prove that vince was unable to understand what he was doing, or that Annie used her position to improperly influence Vince, Annie can keep the property

Vince has begun forgetting things and is becoming very difficult to get along with. He is 85, has been ill, and is very fond of his housekeeper Annie. He gives a deed to Annie for all of his real property. At Vince's death, his children, who got only his photograph albums according to the will, ask that the deed be set aside and the land be put back in the estate for purposes of division among all the children. The probable result will be:

Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres. Later, Wally refuses to sell any land to Robert. What is the result?

Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.

Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter's boss told him, "I'm really grateful for the year that you have worked here. I am going to give you a bonus of $1,000 in your last paycheck." When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be:

Walter will lose, as he gave no consideration.

Mailbox Rule

Way you determine if and when you have an acceptance (all communication) o Acceptance, by authorized means, is valid when it is dispatched

unenforceable

When a contract falls within the statute of frauds but is not reduced to a writing, the contract is:

relative size of the contract

When courts consider economic duress, they consider all the following except

True

When fraud is committed during the sale of goods, all states allow the remedy of rescinding a contract while still allowing the remedy of suing for damages.

Seller specially manufacturing goods for the buyer defendant admits in our that there was a contract goods have been delivered or paid for

Which of the following is a "special circumstance" in which an oral contract may be enforceable under the UCC?

The plaintiff must show that although the defendant acted in good faith, the statement was material because the defendant expected the plaintiff to rely on it and enter into the contract.

Which of the following is not a true statement about fraud?

-- Promises made as a part of a prenuptial agreement. -- The agreement to sell a car for $1500. -- The promise by an executor of an estate to pay a debt of the decedent. *ALL OF THE ABOVE*

Which of the following promises ordinarily must be in writing to be enforceable?

Totally integrated contracts.

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

a) A stamped signature. b) A retinal scan. c) A name keyed at the bottom of an e-mail. *Any of the above would suffice. Judges define "signature" very broadly.*

Which of the following would suffice for a signature on a writing under the statute of frauds?

enforceable, because Willis has partially performed the oral contract and made improvements on the land.

Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment; one-half payable in 30 days at the time of closing when the title will be transferred. The buyer, Willis, is to have possession immediately. Willis pays Leslie $25,000, takes possession of the land, and starts building a house. At the time of closing, Willis has made a substantial beginning on the house. However, Leslie refuses to transfer the title, claiming the oral contract is not enforceable. This contract is:

In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct?

Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable.

January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct?

Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable.

Zero, Inc. agreed to build Millie a storage building for $8,000. After beginning the project, Zero realized that it could not complete the job and make a profit. Zero demanded $9,500 to complete the building. Millie agreed to pay the $9,500. When the project was complete, Millie tendered $8,000 to Zero for the job. If Zero sues Millie for the remaining $1,500,

Zero will lose because there was no legal consideration to support the additional $1,500.

Zero, Inc. agreed to build Millie a storage building for $8,000. After beginning the project, Zero realized that it could not complete the job and make a profit. Zero demanded $9,500 to complete the building. Millie agreed to pay the $9,500. When the project was complete, Millie tendered $8,000 to Zero for the job. If Zero sues Millie for the remaining $1,500:

Zero will lose because there was no legal consideration to support the additional $1,500.

Yes.

Zoe, who works as a retail clerk, wishes to talk with her co-workers about organizing a union. Her employer threatens to fire her if she talks with other workers about union activity in the presence of customers while she is working. Does the employer have a legal right to make this threat to Zoe?

One of the factors leading courts away from a laissez-faire approach to contract law was

a change in relative bargaining power between parties to contracts.

One of the factors leading courts away from a laissez-faire approach to contract law was:

a change in relative bargaining power between parties to contracts.

Mary contracted to buy 100 table lamps. Under the terms of the agreement, Mary is to pay for the lamps upon delivery. This is an example of:

a concurrent condition.

An unliquidated debt can be described as

a debt in which the existence or amount is in dispute.

unliquidated debt can be described as:

a debt in which the existence or amount is in dispute.

Pamela is planning to sell her home decorating store to her daughter. Pamela has

a greater duty to reveal problems in the business because her daughter assumes she will be honest.

Hasbro, Inc., the trademark owner of "Candy Land," sought a court injunction to stop Internet Entertainment Group, LTD from using the domain name, "candyland.com." Internet Entertainment Group had established a sexually explicit site at the domain name. This injunction would have to be issued by

a judge

A contract clause which specifies the amount of damages to be paid in the event of a breach is called

a liquidated damages clause

contract clause which specifies the amount of damages to be paid in the event of a breach is called:

a liquidated damages clause

Harriett raises and sells hippos. In order to keep her hippos happy and healthy, she feeds them Hippo Chow, which she buys from the local pet store. Under the UCC, Harriett is:

a merchant of hippos, but not of Hippo Chow.

filing a suit to rescind the contract;

a minor can undo a contract that has already been completed by having a court________the contract to formally cancel it.

Which of the following are generally considered to be legal offers?

a note scribbled on a restaurant napkin that includes the details of the offer

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef John to use at City Grocery, but Chef John has breached the contract by failing to pay for the potatoes. The potatoes are beginning to rot. If Farmer Elvin sells the potatoes to a Tony at the Beacon Restaurant to make potato soup and salad, then this action would be considered:

a reasonable mitigation of damages

The Minnesota legislature passed a law requiring that employers allow each employee adequate time within each four consecutive hours of work to utilize the nearest convenient restroom. This law is

a statute

The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, EPA should use

a subpoena duces tecum.

a valid contract may be unenforceable for which reasons?

all of the above

judicial review can be best described as the power of supreme court of the united states to

all of the above

oliver winerys stakeholders include

all of the above

the following are elements of a tort cause of action

all of the above

unethical behavior in an organization can create

all of the above

which of the following are examples of tort reform?

all of the above

which of the following is a valid defense to a defamation claim?

all of the above

which of the following damages might be awarded to a plaintiff in a civil lawsuit where the defendants misconduct is characterized as gross, willful, wanton, or reckless?

all of the damages

Nate works as a carnival barker. His employment contract specifies that he can be fired if he "loses his voice." This is an example of

ambiguity

When a provision in a contract is unclear by accident, it is a case of

ambiguity

If Crosby and Dash are in disagreement as to the exact amount of money that Crosby owes Dash, then they may choose to form a new agreement at a set amount. If they both perform the new agreement, their conduct would be an example of

an accord and satisfaction

If Crosby and Dash are in disagreement as to the exact amount of money that Crosby owes Dash, then they may choose to form a new agreement at a set amount. If they both perform the new agreement, their conduct would be an example of:

an accord and satisfaction.

When the Food and Drug Administration prohibits a certain drug from being marketed in the United States, this is

an agency regulation

Bailey Co. and Spryt Bros. enter into a contract for the manufacture and sale of 400 lawn chairs. If both parties agree that a modification is necessary

an agreement to rescind the contract will terminate the contractual rights of Bailey Co. and Spryt Bros. if neither of them had completed their obligations.

When Mohammed was hired by Pomico, Inc., he signed the following agreement, "Upon termination of my employment with Pomico, I agree not to work for a competing company within 20 miles of Pomico's headquarters for one year." This agreement, important to protecting secret information developed in the employer's business, is

an enforceable agreement not to compete.

"I'll sell you my car if I decide to sell it" is an example of

an illusory promise

I'll sell you my car if I decide to sell it" is an example of:

an illusory promise.

Duress occurs when

an improper threat is made to force another party to enter into a contract.

In breach of the partnership agreement, Trimble, a partner in the partnership of Morris, Newt, and Oppie, Ltd. quits the partnership and goes to work for a competitor. The former partners may ask the court for

an injunction to prevent Trimble from working in competition with the former partners.

breach of the partnership agreement, Trimble, a partner in the partnership of Morris, Newt, and Oppie, Ltd. quits the partnership and goes to work for a competitor. The former partners may ask the court for:

an injunction to prevent Trimble from working in competition with the former partners.

Vicki entered into a written contract to buy a car from Valley Motors. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." This is:

an integration clause

Specific performance may be available for the breach of a contract to sell

an original painting

Specific performance may be available for the breach of a contract to sell:

an original painting.

agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as:

an output contract

The Administrative Procedure Act

applies to all federal agencies

In bailment cases, exculpatory clauses

are somewhat more likely to be enforced than in other types of cases.

negligence concerns harm that

arises by accident

educational expenses

as it applies to minors, which of the following is least likely to be regarded as a necessary?

rock group assigns its payment under a performance contract to the Costume Shop, a business that has supplied the group with outrageous stage outfits, and to which the group owes a great sum of money. Under this arrangement the rock group is the:

assignor

Zena enters into a contract with Steeley Company to purchase a washer and dryer. She doesn't understand the financing terms, but signs the agreement anyway because she needs the appliances. The financing terms are very unfavorable to Zena, and she is unable to make all of her payments when they are due. Steeley sues. The court would:

be exercising judicial restraint if it requires Zena to pay as she promised, even if the agreement was unfair and unwise.

In order to satisfy the statute of frauds, a writing must

be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises.

In order to satisfy the statute of frauds, a writing must:

be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises.

Which of the following is NOT one of the three ways to amend a written contract?

by verbally agreeing to the changes and shaking hands on the deal

the behavior of top executives regarding ethical issues has little effect of the behavior of the employees of the organization T/F

false

the president of the united states

can veto congressional legislation

Mercury Motors inadvertently mixes up a work order on Peter's car. Peter brought the car in to have the tires rotated. Mercury tuned up the motor by mistake, conferring a benefit on Peter. If Mercury Motors insists that Peter pay for the price of the tune-up, Mercury Motors:

cannot recover its expectation interest because there was no enforceable agreement.

Which of the following terms designates the legal ability of a party to enter into a contract?

capacity

Which of the following is NOT a standard provision frequently found in contracts?

choice of compensation.

Which of the following is a standard provision frequently found in contracts?

choice of forum

_____ courts in mississippi are trial level courts that are considered to be courts of law

circuit

Usury laws are designed to protect consumers from

companies charging excess interest on loans.

All Seasons, Inc. ordered $5,000 worth of Christmas decorations from Santa, Inc. The shipment of decorations was to arrive no later than October 1, but did not arrive until December 1. All Seasons was able to purchase some of the unfulfilled order through other suppliers, but had to pay 15% more than the price under contract with Santa, Inc. As a result of the delay, All Seasons' sales were down 25%. All Seasons can recover

compensatory damages and consequential damages.

Mary contracted to buy 100 table lamps. Under the terms of the agreement, Mary is to pay for the lamps upon delivery. This is an example of

concurrent condition

is an event that must occur before a party be-comes obligated under a contract.

condition

Sam enters into a contract agreement to buy Betty Lou's house on the condition that he is able to secure financing at or below 6% per year. This is a

condition precedent

Paige enters into a contract with Bryce to sell Bryce her home for $400,000.00. Bryce's obligation to purchase is conditioned upon the house appraising for at least the purchase price. This is an example of a(n):

condition precendent

Melody is a recent graduate of State Law School. She lands an impressive employment contract with the firm of Dewey, Cheathem, and Howe, Attorneys at Law, on the stated provision that she pass the upcoming bar exam. This provision in the employment agreement is a(n)

condition subsequent

the courts will find an implied contract when

conduct of parties indicates they intended an agreement

The courts will find an implied contract when

conduct of the parties indicates they intended an agreement.

If Beau is found liable for breaching the agreement with Christina and as part of her damages, Christina is awarded the amount she spent on her new outfit, which Beau knew she was buying just for this date, what component of compensatory damages would that award be?

consequential damages

george helped warren study all night for his blaw test. after warren got an a on the exam, he told george " i will give you 10$ for helping me get a good grade." george said thanks ill take it. which missing element prevents this from being a valid contract?

consideration

which of the following is not an essential element of an offer

consideration

Statutory law is to legislative bodies as common law is to

courts

the united states supreme court has the power to

declare an executive order unconstitutional

Tim offers to sell Emma his home for $295,000. The offer is made on April 29, 2013, and the sale is to close on May 5, 2013. On May 4th, Tim's home is totally destroyed by fire. What legal reason allows Tim and Emma to discharge their contractual obligations without performing them?

destruction of subject matter

The 14th Amendment's Equal Protection Clause "strict scrutiny" test will be used when the legislation

differentiates on the basis of race.

Which of the following relationships generally fails to create an insurable interest?

doctor and patient

Mark's home had burned to the ground. When he met with his insurance adjuster, she accused him of burning down the house, and said she would have him criminally prosecuted if he didn't settle the claim for much less than the house was worth. Mark agreed to the settlement. If he changed his mind, he can probably rescind the settlement on the basis of:

duress

one party uses an improper threat or act to obtain an expression of agreement

duress occurs when

The UCC requires consideration for agreements modifying contracts for the sale of goods.

false

The doctrine of precedent is binding on all courts from county courts to the U.S. Supreme Court..

false

The largest source of new law comes from court decisions.

false

Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to promote Trein's products. E-presto Inc., a competitor of Trein, was interested in having Mia promote its products but knew of her contract with Trein. E-presto offered Mia a three-year, $5 million contract. Mia left Trein and signed with E-presto. If Trein sues E-presto for tortious interference with a contract, E-presto:

e-presto is liable for tortious interference with a contract

As it applies to minors, which of the following is LEAST likely to be regarded as a necessary?

educational expenses

star magazine published an article about lindsay lohan. lohan is upset becuase the information contained in the story is not correct. if lindsay sues star she will need to show that the magazine

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

The U.S. Supreme Court was asked to decide whether same-sex sexual harassment is a violation of Title VII of the Civil Rights Act. This law forbids discrimination in employment on the basis of sex. In interpreting statutes, the court may use all of the following EXCEPT

enabling legislation

If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods for $10,000 when the price should have been $1,000, a court will:

enforce the agreement, relying on oral testimony to determine the correct price.

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be:

enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated.

Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to borrow money, but to do so, the bank requires Tuan to orally agree to personally pay the debt of the corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is

enforceable because of the leading object rule

Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to borrow money, but to do so, the bank requires Tuan to orally agree to pay the debt of the corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is:

enforceable because of the leading object rule.

Robin and Bellman, both merchants, orally agree to a contract for the sale of $5000 of accessories. Bellman, the buyer, sends to Robin, the seller, a written confirmation of the sale, which is sufficient against Bellman under the statute of frauds and which Bellman signs. Robin fails to perform the contract and does not ship out the goods. Bellman sues. This contract is:

enforceable even without Robin's signature because both parties are merchants.

promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an:

enforceable requirements contract.

agreement to pay a lesser amount to settle an unliquidated debt is:

enforceable, as there is consideration.

Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment; one-half payable in 30 days at the time of closing when the title will be transferred. The buyer, Willis, is to have possession immediately. Willis pays Leslie $25,000, takes possession of the land, and starts building a house. At the time of closing, Willis has made a substantial beginning on the house. However, Leslie refuses to transfer the title, claiming the oral contract is not enforceable. This contract is

enforceable, because Willis has partially performed the oral contract and made improvements on the land.

Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment; one-half payable in 30 days at the time of closing when the title will be transferred. The buyer, Willis, is to have possession immediately. Willis pays Leslie $25,000, takes possession of the land, and starts building a house. At the time of closing, Willis has made a substantial beginning on the house. However, Leslie refuses to transfer the title, claiming the oral contract is not enforceable. This contract is:

enforceable, because Willis has partially performed the oral contract and made improvements on the land.

illegally obatined evidence is not permitted to be used at a criminal trial based upon the

exclusionary rule

Alice has a contract with Randy to clean Randy's bathroom for $50.00. Alice cleans the bathroom and is waiting for Randy to pay her. Insofar as Randy is concerned, the contract is:

executory

on the first day of baseball season, dean orders a new hat from amazon. at the moment he submits his order, dean and amazon have an _____ contract. two days later amazon delivers the fate to deans house, and deans credit card has cleared. at this point, dean and amazon have a ________ contract.

executory; executed

A completed act can be the basis for consideration.

false

A landowner's highest duty is owed to licensees T/F

false

A letter of intent summarizes progress made during business negotiations, but more importantly, it creates a binding contract.

false

A party seeking to recover compensatory damages in a breach of contract lawsuit must prove the exact amount of her loss with absolute certainty. T/F

false

A valid contract can legally be voided by either party.

false

According to section 2-302 of the UCC, if a court finds as a matter of law that a clause of a contract was unconscionable at the time the contract was made, the court must refuse to enforce the contract.

false

Alice signs a contract with Bob to buy Bob's house for $150,000, with the clause, "if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years." Assume that Alice tries but is unable to obtain the described loan, and therefore refuses to proceed with the purchase. Alice is in breach of the contract.

false

All oral contracts are quasi-contracts until they are completely executed.

false

Ambiguities in contracts are always interpreted in favor of the side that wrote the contract, since they are the ones who know what the provision is supposed to mean.

false

An illusory promise is valid consideration.

false

Any contract involving a sale of goods of $100 or more must be in writing.

false

April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on all six contracts to sell her computer for $500.

false

Contracts generally do not require bargaining that leads to an exchange between the parties.

false

Contracts in which one party agrees in good faith to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.

false

Contracts must use formal terminology such as "whereas" and "heretofore" in order to be legal.

false

Dr. Gonzalez ordered specialized surgical equipment from Physician's Supply Co., but the company informed Dr. Gonzalez that it would not be able to meet his order by the agreed date. Even if Dr. Gonzalez does nothing to secure equipment from another source, he will be able to recover damages since the contract was breached by Physician's Supply, not Gonzalez.

false

Either party may demand rescission of a fully executed oral contract if it was required to have been in writing under the statute of frauds. T/F

false

Emily runs a children's clothing boutique which takes in local homemade items on a consignment basis. Her standard form contract indicates that Emily has the right to put items on sale without prior approval, but does not specify what effect the sale has on the consignor's payment percentage. Her intent is to keep the same profit she would have had without the sale. She is using ambiguity in her contract to increase her sales and profit.

false

Even if a statute's words have ordinary, everyday significance, the court will look at the legislative history of the law and public policy in order to interpret the statute.

false

Expectation interest can best be described as money spent in reliance upon the agreement.

false

Hannah orally agrees to sell her house to Brett for $175,000. If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay, most courts will not enforce the contract since it was not in writing.

false

If a salesperson says, "This is a great car and it's really fun to drive," but the car turns out to be a lemon, the salesperson has committed fraud.

false

If you have an established relationship with a buyer, you can sell small tracts of land without a written contract.

false

Injunctions are commonly/frequently used by courts to force employees to complete their contractual obligations with their employers.

false

Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.

false

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.

false

Mistake caused by a failure to read a contract is usually a valid excuse for not having to perform the contract. T/F

false

Morality plays no part of gambling contract legality.

false

Most contracts are discharged by mutual agreement of the parties.

false

Nancy and Ed are having a dispute about one particular provision in a written contract between them. If Nancy files suit in Chancery Court to determine how that disputed provision affects the contract, the chancellor hearing the case will only read the specific part of the contract that is creating the dispute. It's not important to the judge to know what the rest of the contract says. T/F

false

Nominal damages are awarded in contract cases in which a damage amount was named in the contract.

false

Obscene speech is protected by the First Amendment.

false

On Monday, Mick puts an offer in the mail to Sheri to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning.

false

Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.

false

Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash, payable on April 30, 2012." This writing is sufficient under the statute of frauds to make the contract enforceable.

false

Ramona, age 42, orally agreed to work for Brahma, Inc. for the rest of her life for $50,000 per year. This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

false

Rudolph overhears Macy's plans to go skydiving over spring break. Not really knowing Macy, but figuring it's worth a chance, Rudolph rushes out and buys an insurance policy for $100,000 on Macy's life. Macy does in fact meet her demise jumping out of the airplane. Rudolph can collect the $100,000.

false

Sam breaches his contract with Nick, but Nick can't prove that he suffered any losses. Under these circumstances, Nick would be entitled to receive an award of reliance damages. T/F

false

Society enforces all promises in the interests of simple morality.

false

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

false

Tess, a tenant, moves from her apartment in breach of the lease agreement. The landlord, Lenny, may not attempt to rent the apartment until the date of the lease expiration, and so has no recourse to minimize damages.

false

The "reasonable person" standard that has been used throughout this course for torts is an objective standard, but for contract issues it is a subjective one. T/F

false

The "takings clause" prevents the government from taking private property for any reason.

false

The Fourth Amendment to the Constitution provides Robert, an employee of Mattax Paper Co., due process protection from being fired without a hearing by a neutral fact finder.

false

The Framers of our Constitution, a true cross section of the population at the time, created the Constitution by amending the Articles of Confederation, which had been the governing document of the colonists.

false

The Occupational Safety and Health Administration (OSHA) has proposed rules aimed at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. If ATC, Inc. wants to challenge the proposed rules, it must do so in court before the rules become final.

false

the mississippi legislature passed a law imposing criminal penalties for displaying "indecent" material online where children could see it. a subsequent ruling by the us supreme court that that statute conflicts with the first amendment of the u.s. constitution has no effect on the validity of this state law T/F

false

the performance of a pre-existing contractual duty which is neither doubtful nor the subject of an honest dispute is legally sufficent consideration to support a second contract T/F

false

the power to create laws regulating interstate commerce is given jointly to congress and the states under the power of the us constitution T/F

false

the process of selecting a jury in a civil trial is called voir dire. it is called habeas corpus in a criminal trial T/F

false

under the laws of most states, a corporation cannot be held responsible for commiting crimes T/F

false

working out some frustrations after a last second loss to LaSalle, marshall angrily flings a basketball and then sees it is flying toward on the referees. he yells" watch out" the referee ducks and ball barely missed him. marshall flashes the ref the landshark sign. since there was no physical contact, no assault or battery occured. T/F

false

_____ is defined as the wrongful confinement or detention of a person against his or her will.

false imprisonment

The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in

hadley v baxendale

Psychologist Holtz is working with a patient, Rebecca, who has expressed the intention to seriously harm two of her acquaintances. If you apply the principle set forth by the Supreme Court of California in the Tarasoff v. Regents of the University of California case, Psychologist Holtz

has a duty to exercise reasonable care to protect foreseeable victims of Rebecca's violence.

express contract:

has both parties setting forth their intentions.

Karen is a strong swimmer. One afternoon she is having a picnic at a lake and sees a man she does not know drowning. Generally, Karen

has no legal duty to rescue the man

Newt, a gun dealer, offers to sell a rare civil war musket to Rush, another dealer, for "$15,000, insurance and shipping paid by buyer." Rush responds, "I accept. Insurance and shipping costs divided equally between seller and buyer." The parties:

have a contract and, in the majority of states, the different terms will cancel each other out.

True

in the absence of a specific law to the contrary, employers have the right to fire workers for off-duty conduct

Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be considered

incidental damages

Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be:

incidental damages

Costs to rent a vehicle for a short period of time after an auto dealer fails to deliver a purchased vehicle would be:

incidental damages.

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

integrated contracts

condition:

is an event that must occur before a party becomes obligated under a contract.

Jennifer substantially performs her service contract with Gretchen. Due to Jennifer's failure to render complete performance, Gretchen

is required to pay the full contract price, minus the value of Jennifer's defective performance.

Jennifer substantially performs her service contract with Gretchen. Due to Jennifer's failure to render complete performance, Gretchen:

is required to pay the full contract price, minus the value of Jennifer's defective performance.

Which of the following is the MOST accurate statement regarding economic duress?

it may be ground for recission

The idea that courts should not be heavily involved in lawmaking, but rather should only rule in cases where the constitutionality is clear is known as

judicial restraint.

if the condition does not occur, one party will probably be discharged without having to perform

key to all conditional clauses

Administrative agency rules consist of

legislative and interpretive rules

_______is a written or printed communication which injures a person's reputation by disgracing him/her and diminishes the respectin which he/ she is held in the community

libel

a hunter who has permission to hunt on someone else's property falls into which category

licensee

Statutes of limitations

limit the time in which an injured party may sue

Statutes of limitations:

limit the time in which an injured party may sue.

If Brad and David sign a contract that says if either of them breach it, the other agrees that their damages will be $1000.00, and nothing more. These agreed upon damages are an example of

liquidated damages

Under the UCC, if a seller of goods breaches the contract, the buyer

may "cover" and then receive the difference between the original contract price and the "cover" price.

Bob, a weak swimmer, ignored warning signs in a recreational swimming area and went into deep water. He soon tired and realized that he could not make it back to shore. Seeing Kelly, he cried out for help. Kelly, however, ignored the pleas. Bob was finally saved by Dorothy, but suffered partial brain damage by being submerged without oxygen for a number of minutes. Bob now sues Kelly for negligence for failing to save him. Bob will:

loose because kelly had no legal duty to rescue him

Larson entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrester answered all of Larson's questions, Forrester and Larson agreed to a sale. As Larson was leaving to get the money to pay for the car, Forrester told Larson that Robert Redford formerly owned the car. Larson later learned that Robert Redford had never owned the car. If Larson seeks to rescind the deal based on Forrester's statement, Larson will:

lose because he will not be able to prove reliance on the misrepresentation.

Larson entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrester answered all of Larson's questions, Forrester and Larson agreed to a sale. As Larson was leaving to get the money to pay for the car, Forrester told Larson that he thinks Robert Redford formerly owned the car. Larson later learned that Robert Redford had never owned the car. If Larson seeks to rescind the deal based on Forrester's statement, Larson will

lose because he will not be able to prove reliance on the misrepresentation.

Ryan, a minor, contracted to sell his auto to Ed, a 28-year-old. Ryan later refused to complete the sale. If Ed sues to enforce the contract, Ed will:

lose, because the contract is voidable by Ryan.

Under the UCC, if a seller of goods breaches the contract, the buyer:

may "cover" and then receive the difference between the original contract price and the "cover" price.

Which term refers to whether an offeree accepts an offer by promising, by making a down payment or by performing?

manner of acceptance

Tyrone offers to sell George his TV for $200 on May 1. On May 2, George writes out a letter of acceptance. On May 3, George drops the letter in a mailbox. On May 4, a postal worker gets the letter out of the mailbox and takes it to the post office. On May 5, the letter arrives in Tyrone's mailbox. When (if ever) was a contract formed?

may 3

Mulligan Domestics Co. breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills, although the fabric met the contract specifications. In this situation, Wellington Mills

may choose not to resell the fabric and settle for the difference between the contract price and the market value.

Under the Uniform Commercial Code, an agreement modifying a contract:

may not require consideration.

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate. They draft a letter of intent that

may or may not be an offer, depending on the exact language and whether the document indicates that the parties have reached an agreement.

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate. They draft a letter of intent which:

may or may not be an offer, depending on the exact language and whether the document indicates that the parties have reached an agreement.

court:

may refuse to enforce an express condition intended by the parties if the court determines it is unfair and harmful to the general public.

the fastest growing method of dispute resolution in the united states is

mediation

one morning, miles placed a thumbtack on the chair of the office manager where he worked. he has no quarrel with the office manager, but thought this would be funny. two days after sitting on the tack, the office manager was hospitalized with an infection caused by the tack. which of following is correct?

miles committed an intentional tort

Noncompetition agreements are:

more common today than they were in the past, although policy issues they raised in the 1700s have never gone away.

Noncompetition agreements are

more common today than they were in the past, although policy issues they raised in the 1700s have never gone away.

If only John's dad has signed a letter setting out the agreement in Question #33 above and John's dad is trying to enforce it against Kalee, will this satisfy the requirements of the Statute of Frauds?

no

Fireman Steve, on one of his days off, rescued Katie's cat, Boomerang, from the top of a tall oak tree on South Lamar. Boomerang had been missing for 2 weeks, and even though Katie had put flyers all over town offering a $500 reward for Boomerang's return, Fireman Steve hadn't seen any of them. Afewdayslater, Fireman Steve finds out that Katie had been offering a reward for the return of her Boomerang. He contacts Katie who flatly tells Steve that she doesn't owe him any reward and again thanks Steve for retrieving her Boonerang. Fireman Steve said had he known that, he would have used a shotgun to get Boomerang out of the tree. Which of the following best support Katie's reason for non-payment?

no mutual assent

Mentally infirm Sasha contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will:

normally void the contract but will require Sasha to return the piano.

Mentally infirmed Sasha contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will

normally void the contract but will require Sasha to return the piano.

Eintz Corp. hired Jose to bribe a foreign government official into awarding a $3 million contract to Eintz. Eintz gave Jose $10,000 in cash to make the bribe payment and $2000 for Jose's efforts. Instead of paying the bribe, Jose pocketed all of the money. If Eintz sues Jose, Eintz will

not be able to recover the $12,000.

Matt owes Caroline $750, due June 1. Matt, Caroline and June Bug mutually agree that June Bug, and not Matt, will pay Caroline. Such an agreement is an example of a(n):

novation

Terms of the offer

o "I'll sell you my watch for $50" o "This offer is good until 10/1/10" o 10/9/10 - "I accept" o No acceptance because it terminated on a specific date set in offer

Rejection

o "I'll sell you my watch for $50" o 10/20/10 - "I'll give you $40" o 10/30/10 - "I'll accept at $50' This is not a valid acceptance - different amount o Response is either an acceptance or termination of the offer (becomes a new offer) o Offer is always rejected by a new offer - No acceptance

Revocations of Bilateral Contract

o "I'll sell you my watch for $50" o 10/20/10 - "I'll withdraw the offer" o 10/21/10 - "I'll accept the offer" Does not work

Rewards

o Advertisements for rewards are generally treated as offers (reward for his wife is an offer...person who brings her home is the offeree, so offeror must pay) o Offer for unilateral contract - do the act

Advertisements

o Generally NOT considered offers (offeror is the person buying...company is the offeree and can turn you down)

Offers for Unilateral Contracts and Performance has Begun

o If offeree has started to perform the requested act o Before offeror revokes o Must be given reasonable opportunity to complete the act (cluck like a chicken for 5 minutes...can't withdrawal at 4:45mins)

Destruction of the Subject Matter

o June 1 - "I'll pay you $1000 to paint my house" o June 2 - your house burns down (offer terminated) o Destruction of the subject matter terminates the offer

Void Contract

o Missing at least one of the 5 elements

Time of Effectiveness of Revocations

o Offer for a bi-lateral contract may be revoked by the offeror any time prior to acceptance o Revocation effective when received

Voidable Contracts

o One party has the right to get out of the contract (cancel) Age Mental condition Intoxication

Lapse of time

o September 29, 2010 - sell watch for $50 o Accept October 15, 2035 o Been too long (depends on what you are selling)

Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Renita should

object to the confirmation in writing within 10 days.

Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Renita should:

object to the confirmation in writing within 10 days.

Which of the following are the components of mutual assent?

offer and acceptance

Jaime offered to buy Kevin's bike. Jamie is the:

offeror.

An insurance contract is NOT considered to be an illegal form of "wagering" because

one must have an insurable interest in the person being insured.

insurance contract is not considered to be a legalized form of gambling because:

one must have an insurable interest in the person being insured.

If a condition does not occur:

one party will probably be discharged without performing.

the basic distinction between a bilateral contract and a unilateral contract is that

only 1 promise if involved in a unilateral contract

A fiduciary is a:

person who owes a duty of trust, confidence, and loyalty to another.

Caroline says, "Pippa, you're my best friend in the world. I just inherited a million bucks, and I want you to have some of it. Come with me to the bank tomorrow, and I'll give you $10,000." "Sweet!" Pippa replies. Later that day, Caroline has a change of heart. She is allowed to do so. Examine the list of the elements of a contract, and give the correct reason.

pippa did not give consideration

Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be:

punitive damages.

deontological ethics bases it value of what when evaluating the right decision?

reason for doing something

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days. The parties negotiated and meant to say in the written agreement, delivery in 50 days. If the evidence is clear that the two parties intended to agree to 50 days, the courts will probably

reform the contract

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is:

reformation

Al contracted to sell his house to Bev. Subsequently, they both changed their minds and agreed to cancel the contract. The contract between Al and Bev is discharged by:

rescission.

when a judge orders a criminal defendant to reimburse the victim it is called

reimbursement

liza offers to help helen do her laundry. by what means can helen terminate his offer?

rejection and counteroffer

When courts consider economic duress, they consider all the following factors EXCEPT:

relative size of the contract.

after answering a summons and complaint, mike recieved a set of written questions from the plaintiffs attorney asking for him to provide the plaintiff with copies of investigative and accident reports, photographs, repair documents, witness statements, expert witness reports, insurance policies, emails and text messages. this discovery tool is called

request for production of documents

Under a contract for the sale of land, the statute of frauds:

requires the defendant to sign the agreement.

A subpoena duces tecum is different from an ordinary subpoena in that a subpoena duces tecum

requires the person to bring specified documents to the court or administrative hearing.

under a state law, the owner of certain specified vicious breeds of dogs is absolutely liable to any person who is injured by the dog. this is an example of

res ipsa loquitur

A minor can undo a contract that has already been completed by having a court _______ the contract to formally cancel it.

rescind

Al contracted to sell his house to Bev. Subsequently, they both changed their minds and agreed to cancel the contract. The contract between Al and Bev is discharged by

rescission

To "undo" a contract and put the parties where they were before they made the agreement is called

rescission

Fred purchased a Cheapp Lawnmower because the Cheapp Company salesperson intentionally misled him by assuring him that the mower was self-propelled, mulched, and had a five-year unlimited manufacturer's warranty. When Fred finds out that his new Cheapp Lawnmower is not self-propelled, does not mulch, and has a 90-day warranty, he may successfully sue for:

restitution and possibly punitive damages

For purposes of a claim of fraud, which of the following terms is synonymous with the element of intent?

scienter

Smalltown, located in a border state, seemed to favor Caucasians over Latinos in its hiring practices. The courts will review the practice using

strict scrutiny.

the common law governs contracts for

services, employment, and real estate

The last protected trait added by Congressman Smith of Virginia to the bill which became Title VII of the Civil Rights Act of 1964 was

sex (gender)

If in 1900 the Minnesota Supreme Court ruled that a minor can void a contract at any time during minority and, in 2014, the courts in Minnesota still follow this ruling, this is an example of

stare decisis

Under the UCC statute of frauds, the writing for a sale of goods must:

state quantity.

the mississippi legislature passed a law that requires abortion clinics in the state to have a board certified ob-gynecologist on staff who has admitting privileges to a local hospital. this law is a

statute

The Administrative Procedure Act imposes controls on agencies by requiring basic fairness in areas not regulated by the enabling legislation. This method of reining in powerful agencies is a form of

statutory control

A form of due process that holds that certain rights are so fundamental that the government may not eliminate them is referred to as

substantive due process

Upon graduating from college, Kathy announced her plans to enter law school the following fall and to marry Rick in December. Kathy's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out of school. He called Kathy and promised her $10,000 if she postponed her wedding until after completion of her first year of law school. Kathy agreed and postponed the wedding for a year. Kathy successfully completed her first year of law school, but soon thereafter, Kathy's father died. The administrator of her father's estate claimed she was not entitled to the $10,000 because there was no consideration for her father's promise. If Kathy sues the estate, she will probably be

successful, as there was consideration.

Upon graduating from college, Kathy announced her plans to enter law school the following fall and to marry Rick in December. Kathy's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out of school. He called Kathy and promised her $10,000 if she postponed her wedding until after completion of her first year of law school. Kathy agreed and postponed the wedding for a year. Kathy successfully completed her first year of law school, but soon thereafter, Kathy's father died. The administrator of her father's estate claimed she was not entitled to the $10,000 because there was no consideration for her father's promise. If Kathy sues the estate, she will probably be:

successful, as there was consideration.

Mary owes $3,800 on her credit card. She sends the credit card company a check for $800 with the notation "payment in full" on the check. If the credit card issuer cashes the check:

the check may be subject to a UCC exception to the general rules for accord and satisfaction cases involving checks.

Brahma entered into an oral agreement to sell 50 jet skis to Summer Sports. Brahma delivered 20 of the skis on May 1. On June 1, Summer Sports notified Brahma that it will not honor the agreement. Which statement is correct?

the contract is enforceable for 20 jet skis

Larry has the largest pizza business in the city. He learns that Henry is thinking of opening a competing pizza and pasta delivery business. Larry gives Henry $25,000 to not open his proposed business in the same city. Which statement is correct?

the contract is illegal and void

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,

the contract may indicate a method for determining the price, without stating a definite price.

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business:

the contract may indicate a method for determining the price, without stating a definite price.

Abby hires a contractor to make repairs on her house. Before the repairs are finished, Abby dies. Her good friend, Clay is appointed executor of Abby's estate. Clay orally promised that if the estate could not pay the repair bill, he would pay it even though he does not live in the house and has no entitlement under Abby's estate. If the contractor's bill does not get paid, who can the contractor collect from, if anyone?

the contractor can collect from the estate only

Oxtron, Inc. substantially performed its obligations under a service contract. Oxtron is entitled to receive:

the full contract price minus the value of the defects.

Oxtron, Inc. substantially performed its obligations under a service contract. Oxtron is entitled to receive

the full contract price minus the value of the defects.

Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is approved by the House committee specializing in that subject, the bill will go to

the full house

senator wicker introduced a bill in the U.S. senate. if the bill is approved by the senate committee specializing in that subject, the bill will next go to

the full senate

When Congress passed a criminal statute called the "Gun-Free School Zones Act," the Supreme Court ruled that

the law was not valid since Congress exceeded its power under the Commerce Clause.

madelyn offers to sell james goods both parties know are stolen. james accepts the offer and agrees to pay for the goods. later, james refuses to accept or pay for the goods. if madelyn sues james for breach of contract, what is the probable result?

the law would not enforce james promise as it does not have lawful purpose

An agreement between the parties to a contract to terminate their respective contractual duties is a mutual rescission. T/F

true

An employment contract is an example of a personal satisfaction contract.

true

Claude agrees to lease his house to Irvin for nine months, the lease to begin six months from the signing of the contract. Under the statute of frauds

the lease is required to be in writing because of the one-year rule.

Claude agrees to lease his house to Irvin for nine months, the lease to begin six months from the signing of the contract. Under the statute of frauds:

the lease is required to be in writing because of the one-year rule.

Assume that in December 2006, the Environmental Protection Agency (EPA) filed an administrative complaint against Marlin Firearms Co. alleging that the company exceeded chromium emissions limits. The EPA proposed a $257,162 fine. Which statement is correct concerning the administrative agency adjudication?

the losing party has the right to appeal

True

the management and union at tricolor have bargained for two years without reaching an agreement. after notifying the union, tricolor prohibited the workers from entering the factory to work. This is a lockout.

Regency Construction placed an order for two hundred 2 x 4s from Lumber Jack. If the place of delivery and time for shipping the goods are not specified, the UCC provides:

the place of delivery is Lumber Jack's and the time for delivering the lumber is a reasonable time based on normal trade practice.

The United States v. Lopez case demonstrates which of the following?

there are limitations on federal power

rodney was employed by deluxe discount store. rodneys manager directed him to check the prices of dog food at huge savings store. the manager of huge savings store saw rodney writing down prices and asked him to leave. rodney, fearful that he would be fired by deluxe, refused to leave. rodney commited the tort of

tresspass

A contract to commit a tort will not be enforced by the courts. T/F

true

A court may, at times, discharge a party who has not performed.

true

A debt that is disputed because the parties disagree over its existence or amount is an unliquidated debt.

true

A rule that establishes maximum length of work shifts for air traffic controllers demonstrates an agency imposing a regulation.

true

A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee. The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.

true

Abby offers to help Kyle study for his business law final exam for $200. Kyle accepts, but before they start studying and before Kyle pays Abby the money, their business law teacher decides to move to Key West and cancels the final exam. The cancellation of the final exam discharges Abby's obligation to help Kyle study, as well as Kyle's obligation to pay. T/F

true

According to the UCC, one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to determine the open terms.

true

Acme Collection Agency threatens to file a civil lawsuit against Mark to collect some unpaid medical bills unless he signs a promissory note with them at the highest interest rate the law will allow. This contract is valid. T/F

true

After her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.

true

Agreeing not to open a competing business could be consideration.

true

Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to act as surety for the loan, agreeing to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral promise. His promise must be in writing to be enforceable. T/F

true

Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral promise. His promise must be in writing to be enforceable.

true

Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in paper cartons. A shortage of paper makes paper cartons much more expensive, so Jessie uses styrofoam cartons and ships the eggs. Lester is entitled to cancel the contract based on a material breach of the contract.

true

Boris sky dives out of a plane and gets hung up in a tree, hopelessly suspended and swinging precariously in his parachute from the branches of the tree. Natasha sees that he is in trouble and comes to his rescue. Once Boris is safely on the ground, he gratefully promises to give Natasha half of his life savings account. When he changes his mind, Natasha will probably be unsuccessful in enforcing his promise.

true

Bry, Inc. and Gangl Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract. Bry delivered the sweaters and Gangl accepted and paid for them. Since the contract is fully executed, it makes no difference that it was an oral agreement.

true

By creating three independent and equal branches of the federal government, the U.S. Constitution prevented the federal government's power from being concentrated in one person.

true

Carswell, a contractor, enters into a contract with Helen, a homeowner, to remodel her bathroom. The contract provides a specific completion date. The contract provides that if Carswell does not have the job finished by the date, Helen may deduct $200 per day from the contract price until the job is finished. This is an example of liquidated damages.

true

Consideration is not an essential element of an offer. T/F

true

Contract prohibitions against assignments are invalid as a matter of public policy.

true

Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

true

Courts distinguish between mere gifts between parties and legally binding commitments by the element of consideration.

true

Drew sues and is awarded compensatory damages from Chase. The purpose of the compensatory damages is to place Drew in the same position he would have been in had Chase fully performed the contract. T/F

true

Eminent domain refers to the government's ability to take private property for public use.

true

Ernest operates an ice cream stand during the months of May, June, July, and August. Ernest's ice cream machine is broken and needs a new part to run. He contracts to have the part shipped to him by special carrier. Ernest emphasizes that the part needs to be delivered by April 25 and the carrier agrees, knowing that Ernest intends to open his stand May 1. If the shipper fails to deliver the part on April 25, Ernest will be able to recover consequential damages caused by the delay.

true

Expectation interest can best be described as money spent in reliance upon the agreement.

true

Frank suffers from a mental impairment due to a brain injury from a airplane accident. He contracts with Glena to purchase her dining room furniture. A month later, he tries to void the contract. If he is unable to return the furniture, a court will not rescind the agreement unless Frank can show that Glena acted in bad faith.

true

From tax returns, the Internal Revenue Service (IRS) has information concerning Elizabeth Jones. Generally, the IRS may not divulge this information to the Federal Bureau of Investigation unless Elizabeth has given written consent.

true

Hal was arrested for burning the United States' flag in a protest of governmental policy. His action is protected under the First Amendment's guarantee of free speech because the flag burning is considered symbolic speech.

true

Regarding contracts, in seeking to determine whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

true

Revocation is the withdrawal of an offer by the offeror.

true

If Beau had called Christina Saturday afternoon and told her that he was drunk and about to pass out for the evening, but that he had talked to Will, who agreed that Will, instead of Beau, would take Christina to dinner and DoubleDecker that evening. Christina didn't tell Beau, but she preferred going out with Will anyway, and despite her feigned protest and disappointment, she agreed to the substitute. When Christina agreed to go out with Will, Beau discharged his contractual obligations to Christina. T/F

true

If a contract is made with a person required by law to hold a license, and the purpose of the license is protection of the public, the contract made by an unlicensed person will generally be unenforceable.

true

If a minor can cancel a contract, it can be done at any time before the minor reaches the age of majority or within a reasonable time after reaching majority age.

true

If a minor can cancel a contract, it can be done at any time during minority or within a reasonable time after reaching majority.

true

If students who attend the university are required to have a laptop computer for their courses, the laptop might be considered a necessary item for a minor. T/F

true

If the President vetoes a bill and if both the House and Senate repass the bill by a two-thirds margin, the bill becomes law.

true

In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of Regents and found a duty of care to avoid furnishing alcohol to underage consumers. If in 2008 a Flagstaff, Arizona plaintiff brings a lawsuit against an Arizona university's fraternity for providing alcohol to members under the legal drinking age, the Hernandez v. Arizona Board of Regents case will serve as precedent.

true

In Anglo-Saxon society, men were put into groups of ten, known as a "tithing" and were individually held responsible for any injury caused by any member of the group. This is the forerunner of the idea of business partnerships.

true

In many states it is illegal to lend money to help someone gamble.

true

In seeking to ascertain whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

true

In the case of a typo, a court will reform a contract if there is clear and convincing evidence that the alleged mistake does not actually reflect the true intent of the parties.

true

Kathryn offers to help Kim do her laundry. Kim can terminate this offer by rejecting it. T/F

true

L & M loaned Joan $400 so that she could buy her textbooks for the current semester. L & M's terms for repayment of the loan (including interest) are $200 in two months, $200 in four months, and another $100 at the end of the fifth month. The legal maximum rate of interest on this type of loan is six percent per annum. L & M's loan is usurious.

true

Luke is mentally incompetent and is under a court ordered guardianship. If Luke were to enter into a contract with the Oxford Conference Center to host a Drive-By Truckers for a show after their DoubleDecker appearance, it would be void. T/F

true

Mary goes into Honest Harry's Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan. This is an executory contract.

true

Most courts hold that a seller of goods is NOT entitled to consequential damages.

true

Most, but not all, contract rights are assignable.

true

Mrs. Elsley was an elderly woman who relied on Nancy to visit her every day and prepare her meals. Nancy convinced Mrs. Elsley that she should give Nancy her house so they could live together and Nancy could better care for her, although Nancy really just wanted the house and had no intention of moving in to take care of Mrs. Elsley. Although Mrs. Elsley agreed, she may rescind the contract because of undue influence.

true

Nunnsky's Retail sent out newspaper inserts advertising wool suits for $50. In fact, the store had only two, out-of-style suits for sale at this price. Their other wool suits started at $175. This constitutes bad faith in its advertising, so consumers may have protection through state consumer protection statutes.

true

One purpose of contract law is to determine which agreements are worthy of legal enforcement.

true

Parol evidence refers to anything (other than the written contract itself) that was said, done, or written before or as the parties signed the contract.

true

Punitive damages are intended to punish the defendant for conduct that is extreme and outrageous. T/F

true

Raymond agrees to transfer an easement across land right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable. T/F

true

Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.

true

Software clickwrap and shrinkwrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

true

Spencer, age 18 and of sound mind, has the legal capacity to contract.

true

The Civil Rights Act of 1964, a federal statute, forbids discrimination on the basis of national origin in employment. The Equal Employment Opportunity Commission (EEOC) is the administrative agency that oversees the law. The EEOC issued Guidelines on Discrimination because of National Origin. According to one of the guidelines, the EEOC will presume a violation of the law if an employer sets a work requirement that employees must speak only English in the workplace. This is an interpretive rule because it interprets the Civil Rights Act.

true

The Federal Trade Commission promulgated Telemarketing Sales Rules regulating the activities of telemarketers. One of the rules prohibits telemarketers from calling a person's residence at any time other than between 8:00 a.m. and 9:00 p.m. This legislative rule has the effect of a statute.

true

The Milicic v. Basketball Marketing Company, Inc. case illustrated the proper use of a preliminary injunction.

true

The Pines, a small motel in central Georgia, may be subject to federal regulation even though it is not close enough to the state borders to have many guests from other states.

true

The Uniform Commercial Code provides that, under certain circumstances, a merchant may be liable on a written contract, even though that merchant has NOT signed it.

true

The amendments to the U.S. Constitution protect the people from the power of state and federal governments.

true

The implied covenant of good faith and fair dealing can allow a court to transform what might otherwise be an illusory promise into an actual, enforceable, contractual promise. T/F

true

The legal right to sue for a breach of contract is subject to a statute of limitations.

true

The majority of work done by legislative bodies is performed in committees.

true

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts, but now the British government has repealed the writing requirement for most contracts.

true

The parol evidence rule applies to entirely written contracts. T/F

true

The remedies of specific performance and injunction will not be granted where there is an adequate remedy at law. T/F

true

To be valid, an agreement not to compete must be ancillary to a legitimate bargain.

true

To win expectation damages, the injured party must prove the breach of contract caused damages that can be quantified with reasonable certainty.

true

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he can attempt to void the contract.

true

Under Mississippi law, Jay is no longer considered a minor. Jay is at least 18 years old. T/F

true

Under a contract, Danielle is required to make a set of draperies out of fabric chosen by the homeowners, the Flynns. After Danielle makes the draperies according to the contract requirements, her duties under the contract are discharged.

true

You have placed an antique sofa up for auction and the auctioneer has not made any special announcements about the sale. You can withdraw the sofa at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.

true

a prospective juror was excused from serving after being questioned by the plaintiff's attorney. the reason for rejecting this prospective juror's was because her cousin was employed by the plaintiffs attorney. this would be accomplished by the use of a challenge for cause T/F

true

adequacy of consideration is present when the value of what the first party to the contract receives under it is comparable to what he or she gives to the second party. in arms-length contracts, the law does not require adequacy of consideration. T/F

true

alice offers to sell her car to barry for $500 and barry accepts. alice's car has a market value of $1000 but this fact is unknown to alice. the contract is enforceable T/F

true

aunt be a promises her 21-year old nephew, opie, that she will pay him $500 if he will agree to quit smoking pot, even though opie is from colorado and has a painful vision problem that caused a doctor to prescribe him the drug. under these circumstances, opie's forbearance from smoking pot can be consideration T/F

true

because of the concept of stare decisis, the us supreme court, in interpreting a statute in 2013, may decide that certain statutory language means the same thing that the us supreme court said it did in a 1971 case T/F

true

by creating three independent and equal branches of the federal government, the us constitution prevented the federal governments power from being concentrated in one person T/F

true

caroline is an ole miss rebelette who performs cheers and routines just outside the baseline at home basketball games in the tad pad. caroline is injured when murphy holloway crashes into her while diving for a loose basketball that was headed out of bounds. caroline could be subject to the defense of assumption of the risk in a suit against ole miss to recover for her injuries T/F

true

emails and their attachements can be subject to pretrial discovery T/F

true

in anglo- saxon society, men were put into groups of ten, known as "tithing" and were individually held responsible for any injury cause by any member of the group. this is the forerunner of the idea of business partnerships T/F

true

kenneth was exposed to radiation on his job in an environmental cleanup. in a lawsuit against his employer, the court must decide the full extent of both present and future damages rather than allowing kenneth to return to court years later if medical problems develop at that time T/F

true

lucy and rick sign a contract in which lucy agrees to deliver 10 boxes of chocolates in exchange for rick's promise to pay $5 per box. lucy delivers the candy. rick pays for the goods. the contract is fully executory. T/F

true

malpractice is negligence committed by a doctor, lawyer, architect, pastor, or other professional in the course of their profession T/F

true

one reason for the application of legal sanctions is to make sure that laws will be enforced T/F

true

oral contracts may be valid T/F

true

professor jones accuses rachel, a senior as a large state university, of cheating on an exam. the professor claims that rachel must prove to him that she did not cheat. if she fails to convince him, she will be expelled from college. rachel is being denied her due process rights. T/F

true

robert sued monica for injuries recieved in a traffic accident. after being served with a summons and a copy of the complaint, monica would file a pleading known as an answer, briefly replying to each allegation in robert's complaint T/F

true

the 5th ammendment protects persons against self-incrimination, double jeopardy, and being charged with a capital offense except by grand jury indictment T/F

true

the board of directors of oliver winery inc. met to consider whether the company would expand into the fortified wine market. fortified wine is essentially a low cost, high sugar and higher alcohol wine, and it is expected to increase oliver winerys sales and profits. in making this decision, the interests of oliver wineries various stakeholders affected be the decision may conflict T/F

true

the consitution ensures that the states retain all power not given to the national government T/F

true

the legal right to sue for a breach of contract is subject to a statute of limitations T/F

true

the parties to a criminal trial are the government and the defendant T/F

true

the terms "nuisance" and "trespass to property" refer to different intentional torts T/F

true

under mississippi law, marterius is no longer considered a minor. marterius is at least 21. T/F

true

under utilitarian ethics if a decision maximizes happiness in the most people it is ethical T/F

true

venue refers to the proper geographic location or forum where a civil lawsuit should be tried T/F

true

when promissory estoppel is used by the courts it is becuase there is not an enforceable contract present T/F

true

a __________ contract is one that is technically valid, but a legal bar prevents the courts from enforcing it.

unenforcable

A(n) contract is one that is technically valid, but a legal bar prevents the courts from enforcing it.

unenforceable

Kevin finds a big green ring in the street. He shows it to LeAnn, who says, "Wow. That could be valuable." Neither Kevin nor LeAnn knows what the ring is made of or whether it is valuable. Kevin sells the ring to LeAnn for $100, and says, "Don't come griping if it turns out to be worth two dollars." LeAnn takes the ring to a jeweler who tells him it is an unusually perfect emerald, worth at least $75,000. Kevin sues to rescind. If Kevin were to lose, which of the following reasons would determine the outcome of this lawsuit?

unilateral mistake

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a:

unilateral, implied contract.

Vince has begun forgetting things and is becoming very difficult to get along with. He is 85, has been ill, and is very fond of his housekeeper Annie. He gives a deed to Annie for all of his real property. At Vince's death, his children, who got only his photograph albums according to the will, ask that the deed be set aside and the land be put back in the estate for purposes of division among all the children. The probable result will be:

unless the children can prove that Vince was unable to understand what he was doing, or that Annie used her position to improperly influence Vince, Annie can keep the property.

a and b enter into a contract and if b breaches it, the law will provide a remedy. how would you classify this contract?

valid

ABC Siding, Inc. manufactures aluminum siding. ABC enters into a contract to deliver siding to Slippery Siding, Ltd., a retailer of aluminum siding. The written agreement insists that all modifications to the agreement be in writing and signed by both parties. This prohibition against oral modifications is:

valid regardless of whether the clause is signed separately.

True

valley mart told its employees that they would be fired if they actively supported a unionizing effort. Valley Mart has committed an unfair labor practice.

Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter's boss told him, "I'm really grateful for the year that you have worked here. I am going to give you a bonus of $1,000 in your last paycheck." When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be

walter will lose, as he gave no consideration

Communication to the Offeree

• Offer effective when they are received (not when they are sent) - doesn't matter how it is sent

On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylavian mailed a letter to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian

was formed on Jan 18

On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylavian mailed a letter to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian:

was formed on January 18.

Norris-LaGuardia Act

what legislation did congress pass in 1932, that prohibited federal court injunctions in nonviolent labor disputes, thereby declaring that workers should be permitted to organize unions and use their collective power to achieve legitimate economic ends?

Without Reserve Auction

whatever the auction item is auctioned off as thats how much it is. Offerorrrr can't take it out of auction.

Generally, reasonable liquidated damage clauses will be enforced

when actual damages are difficult to determine

Generally, reasonable liquidated damage clauses will be enforced:

when actual damages are difficult to determine.

when the test is part of an on-going investigation into crimes that have occured

when may an employer require an employee to submit to a lie detector test?

a collateral promise, and it must be in writing to be enforceable

when one person agrees to pay the debt of another as a favor to that debtor, it is called

third party beneficiary's status occurs:

when the contract is created.

it may be grounds for rescission

which of the following is the most accurate statement regarding economic duress

parties may expressly state a condition; "provided that"

which of the following statements is accurate concerning express conditions?

private employers are permitted to test job applicants and workers for alcohol and illegal drugs

which of the following statements regarding alcohol and drug use is accurate?

could be considered a from of intentional infliction of emotional distress

which of the following statements regarding workplace bullying is accurate?

"there is no better car in the world"

which of the following statements, if made by a seller who knows the statement to be untruthful, would not be misrepresentation of material fact resulting in a cause of action for fraud?

The Johnsons decided to sell their summer cabin on Beech Lake. They sent flyers out to all who previously had expressed an interest in buying the cabin stating that they were planning on selling their cabin. The flyer described the location of the property, the size of the lot, and the price. If one of the recipients responds by sending a letter accepting, an agreement

will not be formed because the flyer was sent out as an invitation to make an offer.

Johnsons decided to sell their summer cabin on Beech Lake. They sent flyers out to all who previously had expressed an interest in buying the cabin stating that they were planning on selling their cabin. The flyer described the location of the property, the size of the lot, and the price. If one of the recipients responds by sending a letter accepting, an agreement:

will not be formed because the flyer was sent out as an invitation to negotiate.

Ben Matlock has been practicing law in this state for over 30 years. Because of the onsent of dementia and years of heavy drinking, Ben forgets to pay his annual dues to the state bar, and his law license is suspended. Ben enters into an agreement with Molly to represent Molly in a high profile murder trial. Under the contract, Molly is to pay Ben a $35,000 non-refundable retainer. Before paying the retainer, Molly finds out that Ben no longer has a valid law license. If Ben sues Molly for the $35,000 retainer, Molly will

win because the contract with Ben is an illegal bargain

Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he was intending to put onto Marsha's pickup truck. The exploding tire injured Marsha and frightened a neighborhood dog, which ran down the street and knocked Phillip down, injuring his knee. Phillip sued the mechanic. In applying the Palsgraf v. Long Island Railroad Co. decision to this case, Phillip would

win because the mechanic was negligent in overinflating the tire, which led to phillips injury

Miles purchased a lawnmower with an attached warning that said, "The manufacturer is not responsible in the case of an injury caused by the lawnmower." If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely:

win, as this warning and the disclaimer of warranty would ineffective against miles and other purchasers

Miles purchased a lawnmower with an attached warning that said, "The manufacturer is not responsible in the case of an injury caused by the lawnmower." If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely

win, as this warning would be unenforceable.

Miles purchased a lawnmower with an attached warning that said, "The manufacturer is not responsible in the case of an injury caused by the lawnmower." If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely:

win, as this warning would be unenforceable.

an auction sale where the actioneer sells the items without stating any minimum acceptable bid is said to be

without reserve

Example of acceptance

• "Sell you my watch; $50; exchange on 10/3/10 at Bank Midwest in Maryville" • "I accept; will buy your watch; pay $50; exchange on 10/4/10 at First Bank in Maryville"

Definiteness Standards under the Common Law

• Courts enforce, not create, contracts o Subject matter - what o Parties -who's involved o Date of exchange - when o Financial terms

Requirements for an Offer

• Definite terms • Communication to the offeree