Law 3500 Final Practice Questions

Contract voidable, mutual mistake

A customer goes to the sample room of an interior decorator to select a carpet and asks the clerk to show him a navy carpet, which he then purchases. The sales slip notes that the carpet purchased is navy. When, upon examining the carpet in daylight, the customer discovers that it is black, not navy as he thought when he bought it. Is this valid?

Alan; he qualifies for unpaid leave under FMLA

Alan has worked 30 a weeks for 2 years at Acme Industries. He and his wife are about to adopt a child. He gives Acme 30 days notice of his desire to take leave for the adoption. Acme fires him. Alan sues. Who wins?

Gym wins because it's parol evidence

Alan wanted to join a gym and the gym employee told him that he could bring up to 4 guests a month if he signed a year-long contract. Alan thought that was a good deal, and he joined. Later that month, when Alan wanted to bring 2 guests, the gym told him that he could only bring one guest a month. Is the gym correct or can Alan bring 4 guests?

Band; personal services so impossibility of performance

Alex is the lead singer in a band that has a contract to play at a business function. Alex dies, and the band refuses to play. The business sues; who wins?

= valid contract

Alice is intoxicated, and Ryan doesn't know she is intoxicated when selling her a car over the phone. Is this valid?

= voidable contract

Alice is intoxicated, and Ryan loans her money, knowing she doesn't understand the terms of the loan. Is this valid?

= valid contract if Alice understands nature and consequences of transaction or if Alice merely exercised bad judgment

Alice is slightly intoxicated, which Ryan knows, and Ryan sells her a contract for a meal plan. Is this valid?

No contract; destruction of subject matter

Alice offered to sell Adam her car for $5500. While parked on the street, the car was hit by a truck and totally destroyed. Adam didn't know about the accident and called Alice the next day to accept her offer. Is there a contract?

= valid contract

Alice was intoxicated and exercised bad judgment in buying a used car. Is this valid?

No, contract could be performed in a year

Amy and Acme orally agree that Amy will be hired to redecorate Acme's offices, which they anticipate could take 18 months. Amy never finishes the job and Acme sues. Does Amy have a statute of frauds defense?

No contract between Beatrice and Bert

Beatrice offered to sell Bert her couch for $400. Bert told her he would give her $300. She told him she would think about it. She also offered her couch to Bob, who accepted the offer to pay $400 for the couch. The next day, Bert call Beatrice and accepted the $400 offer. Is there a contract?

No contract; destruction of subject matter

Beatrice offered to sell Bert her couch for $400. Bert told her he would give her $300. She told him she would think about it. She also offered her couch to Bob, who accepted the offer to pay $400 for the couch. The next day, Bert call Beatrice and accepted the $400 offer. Is there a contract?

= void contract

Bill agrees to pay Owen $20 to punch Adam in the nose. Is this valid?

Bilateral contract

Bill promises to clean Tom's garage. Tom promises to pay Bill $50. What type of contract is this?

Probably; he was not fired for cause.

Billy is fired because his boss doesn't like how he dresses. Can Billy file for unemployment compensation?

Ben and Jerry because the condition of the promise was satisfied.

Bob, a dairy farmer, promises that if Ben and Jerry, two ice cream entrepreneurs, open an ice cream store that he will sell them all of the milk they need for $1 per gallon for the first year they are in business. Two years later, Ben and Jerry open their store. The price of milk has risen to $2 per gallon and Bob refuses to sell to them for less than that. If they sue, who wins?

No contract; silence is not acceptance

Carl called Candice and told her she could buy his bicycle for $200. If he didn't hear from her, he would presume she wanted it. Is there a contract?

Depends on whether offer was open for a reasonable time

Carl offered to sell Candice his bicycle for $200. After a month, Candice called to accept. Carl said the offer had expired. Is there a contract?

Illusory promise

Corporation will buy all of the t-shirts it needs from Bob, and Bob will sell whatever t-shirts he wants to Corporation. What is this?

Exculpatory clause

Cory opened a gym and had all members sign a membership agreement with a clause releasing him from any liability in case they were injured using the equipment. What is this clause called?

Sam loses; courts don't question adequacy of consideration.

Ellen offers to buy Sam's motorcycle for $100, which is far below fair market value for the vehicle. Sam accepts and makes the sale. Sam then learns the motorcycle is worth more and sues Ellen. Who wins the case?

Depends on the jurisdiction. Majority allow minor to disaffirm

Ellen, who is 16, misrepresented her age as 18, and purchased a car through a contract with monthly payments. The seller relied on her representations.

Depends on the jurisdiction;Most allow Ellen to disaffirm

Ellen, who is 16, misrepresented her age as 18, and purchased a car through a contract with monthly payments. The seller relied on her representations.

Disparate impact

Employer instituted a aptitude test that all applicants for the file clerk were required to pass. The test had the effect of eliminating certain classes from filling the position. What type of Title VII case would this be?

No, concerted activity under the Wagner Act

Eric and Jen have a facebook conversation about the stupid new dress code at their company. The next day, both are fired. Was the firing legal?

Quid pro quo

Erin is a manager who likes her employee, Ed. She tells him that if he takes her on a date, she'll speak up for him at the compensation committee meeting. What kind of sexual harassment is this?

Eunice doesn't have to pay

Eunice and Earl agreed that Earl would redo her kitchen for $6500. After checking prices of materials, Earl realized it would cost more and he asks Eunice for an additional $1000. Does Eunice have to pay?

Gary wins; partial performance exception

Fred orally offered to lease Gary a shed where he could store garden tools and a riding lawnmower. Gary gave Fred a downpayment of $100 and repainted the shed. Fred then changed his mind and told Gary that since their agreement wasn't in writing, he didn't have to go through with the lease.

Bank may do so because it's liquidated debt

Fred owes $1000 on his credit card. He sends a check to the bank for $800 with a notation that it is payment in full. The bank cashes the check but continues to send Fred a bill for $200. Can the bank do this?

No, the salesperson's statement is parol evidence.

George purchases a used car that the salesperson says is good as new. The written contract, however, states that the sale of the car is "as is." The car has many problems. Can George rescind the contract?

Howard wins if his dissatisfaction is in good faith

Howard hired ScapeArtists, Inc. to landscape his year. The contract states that Howard will pay the company $10,000 if the he is satisfied with the work. Howard is dissatisfied and refuses to pay. The company sues Howard.

Mary; partial performance

Mary agreed to purchase an office building for her accounting business from Joe. She made a down payment of $100. Joe then received a better offer for the building and told Mary that he wouldn't sell it to her. Mary sued. Who wins?

Partnership

Mary and Jane decide to open a store on High Street and split all of the profits. What type of business is this?

Rescind; fraudulent misrepresentation

Mary has a chair that she believes is a valuable antique. She offers to sell it to Sue. Mary then learns that it is merely a Pottery Barn imitation, not an antique. Mary says nothing and accepts Sue's money. What can Sue do?

1. Plaintiff shows a prima facie case 2. Defendant shows legitimate business reason 3. Plaintiff shows reason is pretext

Mary has filed a suit against her employer for discrimination under Title VII. What are the 3 steps to proving such a case?

Sole proprietorship

Mary opens a store on High Street and does nothing formal. What type of business is this?

Depends on jurisdiction and on reasonability

Mary signed an employment contract, providing that if she left Employer, she could work for a competitor within the state of Ohio for two years. Does she have jurisdiction?

Probably not a material breach; can get damages

Paul hires Bill to build an addition to his house. The contract says that Bill will build the house according to Paul's specifications, and one of the specifications is to use windows that have solar protected glass. Paul accidentally uses ordinary glass but finishes the house, meeting every other specification. Can Bill get out of paying the contract price?

None; he is an executive. If he were not an executive, he would get $750 above his $2000.

Ryan is the Vice President of Sales, making $2000 per week. Last week, he worked 50 hours. How much overtime pay is due to him?

Unilateral contract

Tom promises to pay Bill $50 if Bill cleans his garage. What type of contract is this?

Implied or quasi contract

Tom typically shovels driveways for $20. Tom shovels Bill's driveway while Bill stands outside and watches Tom. What type of contract is this?