BUS Law 1 Final

False

Finn is currently enrolled in law school and expects to graduate and take the bar exam in order to be able to practice law. Before becoming a lawyer, Finn promises to represent a friend, Landon, in a breach of contract action if Landon will pay 25 percent of the settlement to Finn. Finn negotiates and the case settles for $50,000. Landon refuses to pay Finn. Finn then graduates and attempts to sue Landon. Finn has a legal right to enforce the agreement

Beethoven has committed battery

Beethoven and Mozart were playing pool at Mozart's house. Beethoven was loosing and became very upset with Mozart. While Mozart was getting ready to take his next shot, Beethoven hits Mozart over the head with his pool cue. Mozart is injured but never sees the pool cue and has no idea who or what hit him. Immediately after he hits Mozart, Beethoven leaves the house and the doors automatically lock behind him. Which of the following is correct?

True

Before a buyer can have an insurable interest in goods, the goods themselves must be identified to a contract.

True

Generally, all goods called for by a contract must be tendered in a single delivery.

False

Sarah offers to sell her lake-front property to Katy for $500,000. Katy responds by saying "would you consider lowering your price by $10,000?" Katy has made a counteroffer.

False

Sean, after having two beers and feeling tipsy, makes a deal with Yoko to buy Yoko's stereo. Sean can avoid the contract because of lack of capacity

a bailment

Taylor Swift pays Apple Inc, $1,200 for a new Mac Book Pro. Apple pays USA Storage $50 to sore the computer until Taylor picks it up. For purposes of the UCC, the arrangement between Apple and USA is

eminent domain

Which of the following terms best describes the government's power to take private property from its owner subject to the requirement that it pay just compensation for the property?

punitive

Which type of damages are generally not recoverable for breach of contract?

Ming's agreement with Chell to buy Chell's bike for $400

Which of the following promises is enforceable even if the contract is not evidenced by writing?

they must contain the words "warrant" or "guarantee

Which of the following is NOT true of express warranties?

all of the above

Which of the following terminates an offeree's ability to accept an offer?

an illusory promise

Aya says to Donell, "If I decide to buy a tablet next month, I will buy it from you." This is an example of:

False

Bargains are illegal if they involve a crime or tort but not if they are merely against public policy

an illusory promise

Sara tells a local apple farmer that she will buy as many apples from the farmer as she wants. What would this be an example of?

An off-duty deputy sheriff from a county other than the one where the arrest occurred

A bank robbery has occurred, and the bankers association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible?

void

A contract that amounts to nothing and has no legal effect is

False

A contract to commit a tort will be enforced by the courts

Prevail, because he was struck by the umbrella

A new upscale coffee shop opened in downtown Bismarck. One rainy weekend, a business major studying business law at the University of Mary decided to study for her upcoming Torts test at this new coffee shop. As she was entering the coffee shop, an art student stopped her saying "this is a place of beauty. We don't want disgusting business majors who study law in here." The business major was upset by this remark and said, "Get out of my way." The art student said "No. Make me." The business major took out her full-sized umbrella, intending to frighten the art student, and swung it at his head. But, the umbrella broke and a large piece flew off, striking the art student. If the art student sues the business student for battery, he most likely will:

True

A shipment contract requires or authorizes a seller to ship goods by carrier.

The student would escape liability if Patrick fell asleep in the class room after class was over and slept through the entire period that the doors were locked and was unaware that he was being detained

A student, who was not happy about the difficultly of Professor Patrick's tests, locked Patrick in his classroom by locking both doors to the classroom from the outside. The two doors were the only way of getting in and out of the classroom. Patrick sued the student for false imprisonment. Which of the following would be true?

Condition Subsequent

Albert Einstein just obtained his master's degree in astrophysics. He enters into a three year employment agreement to work for the California Institute of Technology as long as they become accredited after one year. This would best be described as what type of condition?

False

All contracts must be in writing to be considered valid.

seller's place of business or, if he has none, his residence

As discussed in class and in the reading material, a sales contract under the UCC does not fail even if one or more terms are left open (so long as the parties intended to be bound and there is reasonably certain bases for a remedy). As a general rule, if the parties do not specify a place of delivery, the place for delivery is:

This is an implied in fact condition and Carol is entitled to be paid for the times he shoveled Mother Theresa's walk over the last month

Carol Wojtyla was on a walk and stopped to talk to a neighbor Mother Theresa. They started talking about the weather. Mother Theresa told him that she is worried about winter because she just had knee surgery and doesn't think she will be able to shovel snow. The next day it snows and Carol knocks on Mother Theresa's door and offers to shovel her walk. After shoveling the walk, Mother Theresa pays Carol $20. It snows for the next 5 days and Carol returns each morning to shovel Mother Theresa's walk. Each time he is paid $20. Now, over the course of the next month, it snows off and on and Carol shovels her walk each time it snows. However, Mother Theresa does not pay for the recent months snow shovels. When Carol asks, Mother Theresa replies "I thought you were just being kind" and further explains that she never intended to pay for each snow shovel. Carol files a lawsuit in small claims court (Wojtyla vs Mother Theresa) to recoup payment for his service. Which best describes how the court would rule:

void

Cedar is 88 years old and under the legal guardianship of a relative. One day Cedar receives a telephone call from a health insurance salesperson and purchases a $400-a-month Medigap insurance policy. This contract is

It requires the seller to arrange and ship goods and put the goods in the carrier's possession. The seller bears the expense and risk of loss until this is done.

Charlie Brown Christmas Trees, Inc. has a quoted price for a homely Christmas tree of $825.50. Lucy wishes to purchase this special tree. Charlie Brown, as the agent of Charlie Brown Christmas Trees, Inc. and Lucy agree on the terms and that delivery shall occur at the Seattle Port, effective as "F.O.B. Port of Seattle." Regarding the F.O.B. term, what is the seller required to do? Hint UCC 2-504 states the following: Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them at a particular destination, then unless otherwise agreed he must (a) put the goods in the possession of such a carrier and make such a contract for their transportation as may be reasonable having regard to the nature of the goods and other circumstances of the case; and (b) obtain and promptly deliver or tender in due form any document necessary to enable the buyer to obtain possession of the goods or otherwise required by the agreement or by usage of trade; and (c) promptly notify the buyer of the shipment. Failure to notify the buyer under paragraph (c) or to make a proper contract under paragraph (a) is a ground for rejection only if material delay or loss ensues.

Something of value is being exchanged by the two parties

Consideration in a contract means that

False

Dana gives care to Marnie's dog, Molly when Dana finds Molly ill on the side of the road. Marnie promises to reimburse Dana for the cost of treating Molly. Marnie's promise is binding, because there is a bargained-for-exchange.

Darian's conditional promise is sufficient consideration unless Darian knows receipt of at least $6,000 from the uncle's estate is not possible

Darian offers to pay Ezri $6,000 for Ezri's car, provided that Darian receives that much from an uncle's estate, which is currently being probated. Darian expects to know the amount of the bequest within a week or so. In this case:

A principal agent relationship is where the principal appoints the agent to work on their behalf, such as an employer or owner and an employee who acts on their behalf.

Define a principal agent relationship.

Identification happens with the mop when the contract is made (i.e. the selection and payment); however, identification with the sponges won't happen until the sponges are shipped, marked or otherwise designated by the seller.

Disgusting Yet Tasty Hamburger Inc.'s purchasing agent, Mr. Krabs, goes to Squeaky Clean Sponge Maker's store looking for a new type of industrial mop and to make an order for several sponges, because he only has one Sponge and it isn't working out. Mr. Krabs meets Squidward, a cynical store clerk, who shows him the mops. "Here you go...isle 5, our entire selection of mops," says Squidward. Mr. Krabs finds the mop he wants on a shelf, points to it and says, "Arrgh, thanks lad, I will be taking that one." Squidward then shows him the samples of sponges. Mr. Krabs examines the samples, selects a model and tells Squidward "And I will be needing a gross of these sponges." Squidward explains that the sponges come in boxes of 100 each. Mr. Krabs says that is fine. Assume the parties never agreed when identification takes place and UCC 2-501(1) applies. Which is correct regarding the mop and the sponges? UCC 2-501 for purposes of this question reads: In the absence of explicit agreement identification occurs: (a) when the contract is made if it is for the sale of goods already existing and identified; (b) when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers.

No, because Joe started painting

Donald says to Joe, "I offer you $1,000 to paint my house and it can only be accepted if you start painting." Joe starts painting. Can Donald revoke his offer?

performance

Doug contracts to deliver a package for Carrie for $15. If this is like most contracts, it will be discharged by

True

Entrusting goods to a merchant who deals in goods of the kind gives the merchant the power to transfer all rights to a buyer in the ordinary course of business.

Yes, Bob will most likely be held liable for the personal injuries suffered by Mr. Larson. The agency relationship is established (i.e. Chubbs works for Bob), Chubbs was acting within the scope of his employment as a bouncer, his actions were foreseeable in furtherance of his employment, and his actions benefited Bob as established by the facts.

Happy Gilmore consumed a large number of alcoholic beverages served to him by the owner and wait staff at a local country club owned by Bob Barker, located in North Dakota. Everyone at the country club that night knew Happy was intoxicated for most of the evening, as well as when he drove his automobile out of the parking lot. Not more than ten minutes later, Happy's car crossed the center line of the highway and collided head-on with a sports car driven by Shooter McGavin. Shooter suffered severe personal injuries as a result. Shooter's medical expenses exceeded $1,000,000. Thereafter, Shooter settled his claim against Happy. Shooter then learned that North Dakota's statutory law provides that the seller of intoxicants who dispenses alcoholic beverages to an intoxicated person is guilty of a Class 1 misdemeanor. The next month, the country club's bouncer, "Chubbs", escorted out of the building two inebriated customers, Mr. Larson and Happy's Grandma, after they started a loud argument and began cursing and throwing food at other customers. As the three of them reached the parking lot, Mr. Larson threw a punch, Chubbs ducked, and the punch knocked Happy's Grandma out. His patience exhausted, Chubbs told the Mr. Larson and Grandma to stay away from the country club, and then he slugged Mr. Larson , knocking him to the ground, breaking his eyeglasses, and causing a partial loss of sight in Mr. Laron's right eye. Chubbs, who started as a dishwasher at the country club, had earned an online training certification as a bouncer and as a security guard. He had no criminal record and had never been sued. Bob Barker considered him to be a model employee. Each injured individual filed a separate lawsuit against Bob Barker, doing business as the Price is Right County Clubs, Inc., in North Dakota State Court. Is a court likely to hold Bob Barker liable for damages for the personal injuries suffered by Mr. Larson as a result of his being struck by Chubbs at the Country Clubb? Choose the best answer.

by appointing the head of the agency

How does the President exert control over administrative agencies housed within the executive branch?

9

How many justices sit on the United States Supreme Court?

True

If, before the time for performance, a buyer communicates an intent not to perform, the seller can suspend performance and wait, hoping that the buyer will perform after all

False

In an employment agreement with Karly, Allyn promises to work for Karly for the rest of Allyn's life. This promise must be in writing to be enforceable.

disseminated to at least one person other than the person defamed

In order for a plaintiff to establish that he has been identified by the allegedly libelous publication, the plaintiff must show that the statement was:

As a discovered or anticipated trespasser, Jacob must warn Matthew of the dangerous shooting activity that could be occurring on his land

Jacob owns a very large estate in the mountains that he primarily uses for dove hunting. On one portion of his dove land, he has set up a shooting range where he practices shooting at metal dove, turkey, and pheasant targets. Matthew is a hiker who is trespassing on Jacob's dove hunting land. Jacob does not know about Matthew in particular but Jacob is aware that hikers sometimes trespass on his land. Which of the following correctly describes the duty Jacob owes to Matthew with regard to the condition of the land?

Kid Rock Farms

Joe Dirt buys 1,000 bales of hay from Kid Rock Farms. The parties agree that the hay will be transported "F.A.S. Duluth Port." The truck carrying the hay to the port explodes just as it is pulling into the port where the ship is waiting. The loss is suffered by

duress

Jonny Fontane is a famous singer/performer. He had entered into a long term contract with a bandleader to perform various shows in Las Vegas. Over time, Jonny Fontane's talent grew and there was demand for him to move onto acting and performing at bigger, higher paying events. Jonny was presented with several offers but knew he was still under contract with the bandleader. Jonny asked that the contact be terminated but the the bandleader refused to let him out. Jonny then explained his dilemma to his agent Vito Corleone. The next day, Vito went to the bandleader and offered him $10,000 if he would let Jonny out of the contract. The bandleader again refused because he was making good money off the contract. The very next day, Vito Coreleone went back to the bandleader and presented a contract to the bandleader to release Jonny from the original contract. He held a gun to his head and said, "either your signature or your blood will be on this contract." The bandleader signed the document to release Jonny from the contract. If the bandleader later attempts to avoid performing the duties required (i.e. release Jonny from the contract), what is his best defense?

False

Kris, age 17, who looks 18 or older, makes a contract to buy a car from Mais, an adult. Mais finds out Kris's age. Mais may avoid the contract even if Kris did not misrepresent Kris's age.

This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders

Mason contracted with Bravo Builders to build an addition to Mason's house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Mason agrees, which of the following is correct?

to include a provision in a contract that the parties forgot to write down

Parol evidence cannot be used for which one of the following purposes?

Yes, it is likely to be enforceable during employment because it is a reasonable restriction on his employment with Dunkirk

Pat has an employment contract with Dunkirk Ice Cream to sell ice cream and novelty ice cream products. Pat has five children and another due any day. Pat doesn't make enough money with Dunkirk so, without Dunkirk's knowledge, he decides to seek additional work at another dairy in the town that also sells ice cream and novelty ice cream products. Pat's employment contract that he signed with Dunkirk specifically prohibits Pat from competing. Will Pat selling for another local dairy in addition to Dunkirk be problematic under the current contract?

True

Promissory estopple can make a promise binding even without consideration

unenforceable and opposed to public policy.

Quincy is working hard on the mayoral campaign of Rio and believes that just a few more votes could win the election, so promises to pay a friend Varun $50 to register and vote. Varun does so, but Rio loses the election, and Quincy now refuses to pay. The agreement is:

she must reject all of the goods

Regarding a buyer's receipt of nonconforming goods, which of the following is incorrect (hint UCC 2-507)

accord

Richard owes Andy $1,000 under a contract. The parties agree that Andy will accept Richard's boat as satisfaction for Richard's duty to pay $1,000. What would this best be described as?

entirely, due to the perfect tender rule

Riddell Sports Group, a company that manufactures football helmets, delivers to The Dallas Cowboys a shipment of helmets that are slightly nonconforming to the terms of their contract. Recall under the UCC, the buyer of goods can insist on perfect tender by the seller. Prior to acceptance, The Dallas Cowboys can reject the goods: NOTE: The relevant portion of UCC 2-601 states: If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may (a) reject the whole; or (b) accept the whole; or (c) accept any commercial unit or units and reject the rest.

False

Sandy's administrative assistant promises to keep the contents of a letter the assistant typed secret if Sandy will give the assistant the next day off with pay. If the assistant takes the day off, Sandy has to pay the assistant for the day.

Beethoven is bound by the firm offer rule to keep the offer open to Mozart until 5 p.m. on August 1, 2021.

The Chicago Symphony Orchestra is renovating and updating is its Symphony Hall to improve the acoustics. Mozart, an agent of the Orchestra met with Angelic Sounds, Inc.'s agent Beethoven on July 1, 2021. Angelic Sounds is a company that deals exclusively with acoustic equipment for Symphonies. Mozart indicated that the Symphony needed 10 new sound dampening panels and that the Symphony would install these panels themselves. After discussing the specifications, Beethoven sent Mozart a written signed offer to provide the new panels for a total cost of $40,000 and also wrote "this offer will remain open until 5:00 p.m. on August 1, 2021." On July 25, 2021, Beethoven then sent Mozart a letter indicating that he talked to the Agent of the New York Philharmonic, Mr. Chopin, and will be selling the dampening panels to him instead and that he has revoked his previous offer. Which statement is correct (hint UCC 2-205 states: An offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open is not revocable, for lack of consideration, during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three months; but any such term of assurance on a form supplied by the offeree must be separately signed by the offeror.

False

The failure of one party to perform entitles the other party to rescind the contract without returning whatever goods, property, or money was previously conveyed.

false imprisonment

The intentional confinement or restraint of another person without authority or justification and without that person's consent constitutes __________

False

The mirror image rule (i.e. the acceptance can not vary or deviate from the terms of the offer) has been adopted by the UCC?

True

The taking back of an offer by the offeror is called revocation

assault

The tort of any unlawful threat of immediate harm or offensive contact or any action that causes the plaintiff to believe in an imminent harm is a(n):

Murder

There are four elements to tort law. Which of the following is not one of them?

Theresa's offer has been rejected and Timothy has made an offer for $2 million which Theresa may accept or reject.

Theresa owns a mansion on an island on Flathead Lake. She is tired of the scenery and wishes to purchase a mansion on Lake Tahoe. Theresa's good friend Timothy has always expressed interest in her Flathead Lake mansion if she were to sell. Theresa's invites Timothy out for dinner and drinks at a local brewery. After hours of boring conversation about their investments and multiple properties they own, Theresa mentions how she has grown tired of her Flathead Lake mansion. She then offers to sell the mansion to Timothy for a cool $2.5 million. Timothy crunches the numbers in his head and promptly responds, "I will buy it for $2 million." What is the effect of the statement Timothy made?

True

Where a stipulation in restraint of trade is a part of the contract for the sale of a business, it may be valid if the restraint is within reasonable limitations to protect the business's goodwill.

First Amendment

Which Amendment to the United States Constitution protects freedom of speech?

I would consider selling my book for $30

Which of the following communications would most likely not be considered an offer?

a contract to sell a television for $20

Which of the following contracts would most likely not need to be in writing to be enforceable?

False

Under the perfect tender rule, the buyer must reject the goods if they do not conform in every way with the terms of the contract

No. When Jesse accepted the check which stated "in full settlement of the claim." This is an accord and satisfaction

Walter White hires Jesse Pinkman to paint his house. Walter and Jesse enter into a valid contract where Walter agrees to pay Jesse $2,500 for the job. After completion, Walt believes (in good faith), that the paint job was defective and withholds the payment. He calls Jesse and says "that job you did was not good enough." Jesse responds "yo yeah it was man. I don't know what you expect of me. Now show me some respect and pay me or I am calling my lawyer." Walt says "Jesse, don't be an idiot. I am going to call my lawyer too!" The parties bicker back and forth for a while. Walt finally says "fine, Jesse. Just listen to me. Instead of suing this out in court, I will offer you $1,000 in full settlement of the claim." Jesse, accepts, despite that the reasonable value of his services was $2,500. Walt sends a payment to Jesse of $1,000, Jesse accepts. Jesse then sues Walt for the remaining $1,500. Will Jesse be successful in a lawsuit asking for the remaining $1,500?

Offer, acceptance, consideration, capacity to contract, and legality

What are the requirements for a valid and binding contract?

district courts

What are the trial courts in the federal court system called?

an enabling statute

What creates an administrative agency and gives it power?

anticipatory repudiation

What is it called when a party announces that it cannot or will not perform its duties under a contract prior to the time of performance?

the U.S. Constitution

What is sometimes called "the supreme law of the land?"

answer

What is the first pleading a defendant would likely file in a civil law suit?

voir dire

What is the name given to the jury selection process in a jury trial?

Commerce Clause

What is the primary source of Congress's power?

independent contractor

What is the term for an agent who is controlled by a principal but the principal does not control the manner and means of agent's performance?

small claims courts

What term best describes the inferior trial courts that exist in some states that are only authorized to hear cases involving limited amounts of money?

discovery

What term best describes the stage in a law suit where the parties gain information from each other?

strict scrutiny test

What test would a court use to examine a law that treats people differently based on race?

liquidated

What type of contractual damages are agreed to in advance of a breach?

injunction

What type of equitable relief involves a court order requiring a party to refrain (stop) from engaging in certain conduct?

Constitutional Law

What type of law establishes the structure of government and allocates the power between its branches?

the implied warranty of merchantability

What type of warranty exists when goods that are sold or leased are fit for the ordinary purpose for which they are sold or leased?

all of these options will trigger the seller's remedies

When are the seller's remedies triggered by the buyer's action?

all of the above

Which of the following courts would be required to follow a decision made by the U.S. Supreme Court?