ACBS 447 Exam 2
Development Associates agrees to buy five acres of land from Eastside Properties for $15000. Eastside fails to go through with the deal on the agreed date, when the market price of the land is $17000. DA may recover
$2,000
Farm Equip Inc, makes farming machinery. Gail discovers that her Farm Equip tractor is defective and sues the maker for product liability based on negligence. To win Gail must show
Gail suffered an injury caused by the defect
Lester and Myrtle want to rescind their contract under which Lester sold an MP3 for $40. To rescind the contract
Lester must return the $40 and Myrtle must return the player
Oakley posts a defamatory remark about Pierre in "Ruminate" an online social network maintained by SocNet, Inc. an Internet service provider. Most likely to be held liable for the remark is
Oakley
Nature's food inc orders "Grade A" oil from olive Grove Farms to process and sell to Pic N Pay Grocers. Olive Grove ships "Grade B" oil, which NF accepts. To recover damages for the nonconformity, Natures Food must give notice of the breach within a reasonable time to
Olive Grove
RiteMade Machinery Inc, designs, makes, and sells a drill press. Steel Equipment Company copies the design without RiteMade's permission. Steel's conduct is actionable provided
RiteMade's design is patented
Clem, a user of Game Center.com's website can download gaming software if he first clicks on "I accept" after viewing certain terms. If Flem clicks and downloads, this is
a contract that includes terms whether or not Flem read them
Welding Systems Inc, makes welding torches, masks, and related products. A WSI product may be unreasonably dangerous due to
a defect in its design
Residence Painting Company has a claim against Stuart's property to satisfy a debt that takes priority over other claims against the same property. This is
a lien
Green Glass Corporation makes glass bottles for food and beverages makers to package their products for wholesale distribution and retail sale. Liability may be imposed on Green Glass based on
a manufactoring defect
Neil's performance is most likely
a material breach
Five Star Flooring orders carpet from Textile Mills Corporation, but Textile does not deliver. Five Star will probably be unable to enforce the agreement if the parties omitted
a quantity term
Leon files a suit against Moira, a medical doctor, alleging negligence. As a physician, Moira is held to the standard of
a reasonable physician
To adjust debt and institute a repayment plan, Charlie - who is not a corporation, partnership, or a family farmer or fisherman- may file a petition in bankruptcy for relief through
a repayment plan
Francie's debt to gage brings a legal action against Francie to collect the debt. To ensure that a judgment in Gage's favor will be collectible, Gage asks the court to order the seizure of Francie's property. This is a request for
a writ of attachment
Ping's debt to Oak Furniture Warehouse is past due. Oak obtains a judgment against Ping, but Ping refuses to pay it. Oak asks the court for an order that directs the sheriff to seize and sell any of Ping's nonexempt real or person property that is within the court's geographic jurisdiction. This is a request for
a writ of execution
Ridgeline Bank provides Stanley with a mortgage to buy home. The rate of interest is fixed for three years and then adjusts annually. this is
an adjustable-rate mortgage
Concrete Products, Inc. assures Deepwater Construction Company that Concretes cement will not crack within a certain range of pressure. This "assurance" is
an express warranty
Recycle Packaging Inc, agrees to sell 50,000 6- ounce yogurt containers to Organic Dairy Company. Recycle can obtain only 20,000 of the 6-ounce containers, but also ships 30,000 more expensive 8-ounce containers for the same price. Organic rejects the 8-ounce containers. With time for performance not yet expired. Recycle can
attempt to cure the defect
Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls, smashing through the roof of a house, killing Chris. But for Bart's negligence, Chris would not have died. Regarding the death, the crash is the
cause in fact
Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6pm and 6 am nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe T's performance will have been
complete
Cathy uses, on her new recording Drive By, the melody of a song written by Ed, without Ed's permission. This is
copyright infringement
Kim uses, on her new recording, Let's Go, the guitar solo from Malcom's digital sound recording without his permission, This is
copyright infringement
Donna makes and distributes copies of Every Good Boy Does Fine, a movie copyrighted by Great Films Corporation, without Great Films permission. Donna may be liable for
damages, fines, or imprisonment
With respect to Mutual's duties, Neil's performance most likely
discharges Mutual from the contract
Hud and Iggy form Jerry-Bilt Construction to enter into a contract to build one bridge. Under their partnership agreement, Jerry-Bilt is to dissolve when the bridge is built. Iggy signs a contract for the firm to build a second bridge. Jerry-Bilt
dissolves as soon as the first bridge is built
Teona files a voluntary petition for bankrupcy for a relief through liquidation. Debts will not be discharged include claims for
domestic-support obligations
Most contracts are discharged by rescission
false
a fixed rate mortgage is a standard mortgage with a rate of interest that changes periodically
false
a franchise contract may use only one type of business organization- the sole proprietorship
false
a lessee is a party who transfers a right to the possession and use of goods under a lease
false
a manufacturer cannot be liable in product liability for intentionally misrepresenting the character of quality
false
a person assumes all risks associated with any activity in which he or she participates
false
a seller has an insurable interest in goods as long as the goods are in existence
false
all oral contracts are enforceable under the UCC
false
an ordinary person standard determines whether allegedly negligent conduct resulted in a breach of a duty of care
false
any breach excuses the non breaching party's duty to perform
false
browse- wrap terms are expressed inside the box in which goods are packaged
false
damages are designed to punish a breaching party and deter others from similar contracts
false
exchanging pirated, copyrighted works with others is not infringement unless money is involved
false
federal law governs garnishment actions
false
foreclosure is the postponement, for limited time, of part or all of the payments on a loan in jeopardy of repossession and sale
false
if a creditor obtains a judgement against a debtor and the debtor cannot or will not pay the judgement, the dispute is at an end
false
if no time for performance is stated in a contract, any time is acceptable
false
in a sole proprietorship, the proprietor shares the burden of any losses or liabilities incurred by the business enterprise with the government
false
patent protection begins on the date that a patent is issued
false
proximate cause exists when injuries sustained were too remotely connected to an incident to trigger liability
false
specific performance is the remedy customarily used when one party has breached a contract for the sale of goods
false
trademark dilution requires proof that consumers are likely to be confused by the unauthorized use of a mark
false
under the doctrine of strict liability, liability is imposed strictly according to fault
false
under the theory of negligence the duty to care requires an intentional act
false
Velma borrows $110,000 from Watershed Bank to buy a home. if she fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. this is
foreclosure
Milo borrows $125,000 from North State Bank to buy a home. To comply with the Statute of Frauds, the mortgage must be
in writing
From a computer in a distant location, Serigio searches Tia's personal computer without her permission. Sergio is most likely liable for
invasion of privacy
Mixing Equipment Inc, makes paint-mixing. Jia is injured by a detective MEI mixer. A statute restricts the time within which, after Nia is injured, she may file a product liability suit. this is a statute of
limitations
Grady, an obese individual files a suit against Fry Fast Food Corporation, alleging that FFFC's food is unhealthy because, as Grady knows, it contains high levels of cholesterol and saturated fat. grady is most likely to
lose, because Grady knows of the foods unhealthiness
Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to
make reasonable efforts to relet the premises to mitigate damages
Laurel defaults on a loan owed to Maverick Bank. As a creditor, Maverick may attempt to place liens on all of Laure's property except
motor vehicles used to commute to work
GR8 Skates Company makes and sells a pair of skates to homer. GR8 fails to exercise "due care" to make the skates safe, and Homer is injured as a result. GR8 is most likely liable for
negligence
Nadine is a spectator at the Metro City softball Tournament, an athletic competition. Regarding the risk of injury, Nadine assumes the risks
normally associated with the tournament
Demi and Fred are
not partners, because Fred does not have an ownership interest or management rights in eSites
Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this contract are discharged like those under most contracts, the duties will be
performed
olga, a salesperson for the Pre-owned Cars & Trucks, Inc. tells Quincy, "this is the best car i've ever seen" This statement is
puffery
Joy invites Ken into her apartment. ken commits trespass to land if he
refuses to leave when Joy asks him to
Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business. To accomplish this goal, Swim & Trim should file a petition in bankruptcy for relief through
reorganization
Earth Movers Inc. uses dynamite to prepare land for highway projects. Strict liability is imposed on this activity because
the activity is of a dangerous nature
Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel, including the land, building, furnishings, shares of stock in Suite Dreams Company, and a contract with Trudy to create an ad campaign. Reba suspects that Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs the sale of
the furnishings priced at $500 or more
Rick designs a new computer hard drive, which he names "Sci Phi" He also writes the operating manual to be included with each final product. Ric could obtain patent protection for
the hard drive only
Lola develops a new espresso machine, which she names "Sure Shot" She also writes the operating manual. Lola can obtain trademark protection for
the name
Carl sells Direct Marketing Enterprises, a sole proprietorship, to Eve. This is a transfer of
the ownership of the business
Console and Gabriela enter into a contract for a sale of saxophones and other brass instruments. Consuelo delivers, but Gabriela doe snot pay. Consuelo can normally recover as damages
the purchase price plus incidental damages
Over the course of a year, Retail Market Inc. sells from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savers Bank. Article 2 of UCC governs
the sales of the goods
The process behind the production of "Numbers" a suite of business accounting and inventory software, is protected by
trade secrets law
A party who substantially performs his or her duties under a contract can enforce the contract against the other party
true
Causation in fact can be determined by the use of the but for test
true
The extreme risk of an activity is a primary basis for imposing strict liability
true
UCC Article 2 applies to sales transactions between all buyers and sellers
true
a bankruptcy estate consists of all the debtors interests in property currently held, wherever located
true
a beverage company that competes with coca cola cannot call its products koke
true
a breach of contract entitled the non breaching party to sue for monetary damages
true
a forum- selection clause indicates the forum in which contract disputes will be resolved
true
a guarantor can be required to pay an obligation only after the principal debtor defaults
true
a manufacturer is not liable in strict product liability for injuries caused by commonly known dangers
true
a marketing technique can be a trade secret
true
a person can reproduce copyrighted material for purposes such as teaching. including multiple copies for classroom use, without paying royalties
true
a person who keeps a wild animal is always strictly liable for any harm that the animal inflicts
true
a surety is primarily liable for the debt of a principal
true
an individuals right to privacy includes the exclusive use of his or her likeness
true
certain debtors may not qualify to have all debts discharged in bankruptcy
true
if a debtor does not pay a mechanics lien, the debtor's property can be sold to satisfy the debt
true
if a homeowner defaults, the lender has the right to foreclose on the mortgaged property
true
if the parties to a sales contract state that a certain remedy is exclusive, then it is the sole remedy
true
in a general partnership, all partners have equal rights in managing the partnership
true
one characteristics of an abnormally dangerous activity is that it involves an extreme risk
true
the degree of care to be exercised in a situation can vary with a person's profession or occupation
true
the loan that a lender provides to enable a borrower to purchase real property is a mortgage
true
the simplest from of business is a sole proprietorship
true
theft of confidential data by industrial espionage is a theft of trade secrets
true
tortfeasor is the term for a person who commits a tort
true
Clem a Delite Dairy salesperson, follows Edna, a salesperson for Festive Foods, a Delite Customer, as Edna visits stores to make sales. Clem solicits each of Edna's customers. Clem is most likely liable for
wrongful interference with a business relationship
