Business Law Weeks 1 & 2

What is true of government regulation of business?

Government regulations are used to eliminate abuse in business

What is true of administrative agencies?

Have the power to implement laws

Aware of the actual value of a product when buying it for a lot less in a contract, what is true?

He is entitled to keep product b/c the contract is valid.

which of the following is true regarding parties who make mutual mistakes of law?

The parties are expected to have knowledge of the law when making the contract.

What is true of federal district courts?

They hear all criminal cases that involve a violation of federal law.

When parties to a contract mutually agree to cancel an old contract and replace it with a new one....

To be enforceable, there must be added features in the new contract benefiting both parties.

The failure of a party to perform the obligations assumed under a contract is?

breach of contract

Uniform Commercial Code (UCC)

individual states have made changes to the UCC.

Chief function of the courts

interpret and apply the law from whatever source to a given situation.

An agencies power to determine whether the activity of a regulated entity is acceptable or not is an example of?

power over business practices

Administrative agencies

Can become specialists in a particular area of regulation.

What precaution can a business person take when contracting with a minor?

A business person can require an adult to join the contract as a cosigner

Which of the following conditions is a prerequisite for any agreement to be legally enforceable?

The parties entering into the agreement must have the mental capacity to contract.

Regulatory agencies use licensing power to

allow the business entering the field to be regulated

A toy merchant's display of a dollhouse in a store window for $100 constitutes?

an invitation to the public to make an offer for the dollhouse

A firm offer can be best defined as:

an offer that can not be revoked for a reasonable time if no time is stated.

Difference between civil law and criminal law

civil law deals with enforcement or protection of private rights whereas criminal law deals with offenses against society.

Kenneth was sentenced to 6 years in prison for forgery. In this case, Kenneth has committed an:

felony

To recover for a tort based on negligence the plaintiff must show:

the breach of the tortfeasor's duty to the injured party.

What is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another's expense?

A quasi contract

A promise must be supported by consideration. What is an exception to the rule & can be enforced without the support of consideration?

An obligation of record such as an judgment.

What's true of a contract between two minors?

Each minor has the right to avoid the contract.

What is true of the Children's Online Privacy Protection Act (COPPA)

It imposes certain requirements on operators of websites directed to children under the age of 13.

Valid offer

It is seriously intended

What's true of fraud in the execution?

It occurs when a party does not intend to sign a contract as the nature of the writing is not understood

What's true of undue influence?

It refers to a person in a special relationship causing another's action contrary to free will.

Doctrine of promissory estoppel

Requires the promisor to reasonably expect the promise to induce action by the promisee.

In a situation where an injured party in an accident is partly to blame for the accident, what is most likely to be true under a contributory negligence system?

The injured party cannot recover any damages b/c it is partially negligent in the case.

Offeree's inquiry about the terms of an offer that differ from the offeror's terms has what effect?

The inquiry will not reject the offer and if the offeror says no, the original offer still may be accepted if it has not been revoked.

What's true of a jury trial procedure?

The jury is selected before an opening statement is made by the attorney

Owner owes business partners $2k each but is having financial difficulties so business partners agree to accept a total amount of $4800 from the owner as a cancellation of the unpaid balance due to them. This type of agreement is known as....

composition of creditors

Special federal courts

established by congress have limited jurisdiction

Judy promises to pay Ashley $50 to babysit her children After Ashley babysits the children, Judy pays Ashley the $50; thus each party has completed performance of each part of the contract. This is an example of an:

executed contract

Complaint or Petition

written request to a court to settle a dispute

Contract entered says will sell product for an amount based on appraisal value. Even if appraisal value is mistaken later, contract says sales price will not be altered. One month after the sale, buyer realizes that she over paid for the product.

B/c it said in the contract what would happen in case of a mistake, the sales price would not be altered.