BLW 411: Exam 2 Ch 7-10, 21

It is not a valid delegation because you may not delegate duties on a contract to a competitor of the nondelegating party. This is an invalid delegation because you may not delegate the duties on a contract to a competitor of the nondelegating party.

In January, Strong Incorporated entered into a contract to be the sole supplier of a standard type of computer chip to Technik Industries, a laptop computer manufacturer in Houston. In June, Strong won the bid on a huge contract to be computer chip supplier to the Department of Defense and was unable to be the supplier of computer chips to Technik. Without seeking Technik's permission, Strong delegated the duties on the Technik computer chip contract to ProTech, a company that manufactured laptops and computer chips. Strong management believed this would be a perfect solution, as Protech was also based in Houston. What is the status of this delegation? It is a valid delegation unless there is an antidelegation clause in the original contract between Strong and Technik. It is a valid delegation because the manufacturing of standard computer chips does not involve special personal skills. It is not a valid delegation because you may not delegate any business-related duties without the explicit permission of the other party to the contract. It is not a valid delegation because you may not delegate duties on a contract to a competitor of the nondelegating party.

bait and switch Using a product to bring a customer in and then discouraging the purchase of that product would be an example of bait and switch.

In the local paper, a car dealership advertises a small used car for a great price and a low interest rate loan. When Patrice comes in to look at that car, the salesman steers her away from the advertised car. Instead, the salesman tries to convince her to buy a different used car with a much higher interest rate loan. What unfair sales practice might this be an example of? false advertising bait and switch warranty breach fraud

Vincent, an art dealer, contracted with Jackson to purchase his original Picasso painting for $10 million, but when Vincent arrived to pick up the painting, Jackson told him he had changed his mind and would not honor the contract, because he could not bear to part with it. The remedy of specific performance is only available when the subject matter of the contract is sufficiently unique so that money damages are inadequate.

In which of the following scenarios would enforcement of specific performance be appropriate? Jared ordered a standard laptop computer from Computers-R-Us for $1,000, but Computers-R-Us failed to deliver the computer by the start of classes when he needed it. Shirley offered $10,000 to buy a new motorcycle, the Superfast 1000 from Fonda Motors. It was their most popular new model and they had sold thousands just like it, but the demand caused a backorder and Fonda Motors couldn't deliver the motorcycle to Shirley. Connie contracted with Maria, an electrician, to rewire her new office by the time she opened for business, but Maria got a large contract and told Connie she would be unable to finish her office in time. Vincent, an art dealer, contracted with Jackson to purchase his original Picasso painting for $10 million, but when Vincent arrived to pick up the painting, Jackson told him he had changed his mind and would not honor the contract, because he could not bear to part with it.

Superior Manufacturing orders 6,000 containers of the standard industrial type of manufacturing machine oil from Industrial Supply Associates (ISA), but ISA can deliver only 5,500 containers. The 5,500 containers is close to the 6,000 ordered, and since this is standard industrial machine oil, the remaining 500 containers could almost certainly be obtained through other sources. This qualifies as substantial performance

In which of the following situations is a court most likely to find substantial performance? Superior Manufacturing orders 6,000 containers of the standard industrial type of manufacturing machine oil from Industrial Supply Associates (ISA), but ISA can deliver only 5,500 containers. Hernandez orders a light blue paint job for his car from the auto body and paint company, but they paint his car a light green. Gamaliel orders 10 gallons of paint to paint his corporate offices, but the supplier only delivers six gallons. Ian orders a motorcycle from the Honda dealer, and while the cycle is otherwise exactly what he ordered with the same color and accessories, it has a 600cc engine rather than the 900cc engine that he ordered.

A pair of surgical scissors was left inside Boris after surgery, but he can't prove exactly how they got there Res ipsa loquitur allows an injured party to create a presumption that the tortfeasor was negligent by pointing to certain facts that infer negligent conduct without showing exactly how the tortfeasor behaved negligently.

In which of the following situations would res ipsa loquitur likely apply? Iggy is street racing his truck and drives 50 miles per hour in a 25 zone Starla sneaked up behind China and kicked her in the back A pair of surgical scissors was left inside Boris after surgery, but he can't prove exactly how they got there Barry was the owner of Quick-E-Market and had the linoleum floors professionally cleaned and waxed but failed to put up signs or warn customers of the slick surface.

Isabelle is not guilty of defamation due to a qualified privilege. Employees of media organizations enjoy a qualified privilege from defamation if they act in good faith.

Isabelle was a reporter for KTUV News. She reported on the nightly news that Sharaf, an engineering professor at the city's university, was a prime target of a State Department terrorism investigation and was credibly accused of aiding international terrorists to attack the United States. Although Isabelle had received this information from a reliable government source and had no malice against Sharaf, the story was completely false, Sharaf was innocent. Sharaf's reputation in the community was ruined. His friends avoided him and students stopped signing up for his classes. He was eventually fired by his dean. Which of the following is Isabelle guilty of? Isabelle is guilty of libel for telling a lie that caused injury to Sharaf. Isabelle is guilty of slander for telling a lie that caused injury to Sharaf. Isabelle is not guilty of defamation due to a qualified privilege. Isabelle is not guilty of defamation due to an absolute privilege.

A novation. A novation is a substitution of parties on a contract and discharges the original party's obligations.

Jeff purchased a new Corvette from Hypersports Automotive on a three-year lease. Two years in, he lost his job as marketing director and was unemployed. Jeff asked the leasing company if his friend Addie could substitute for him and take over the lease. If Hypersports allows Jeff out of the lease with no further obligations and Addie completely takes his place, what has occurred? An assignment. A novation. A delegation. An accord and satisfaction.

no defamation tort. Defamation must be published or disseminated to another. In this case there was no publication to anyone else.

Jill was very angry at Axel. She summoned him to her office and told him that he was a terrible employee and had been stealing money from the company. There was no one else in the office at the time, but Axel was very offended as Jill was intentionally lying about him. Jill has committed libel. disparagement. slander. no defamation tort.

apparent authority. Jordan is trying to eliminate liability stemming from apparent authority should a third party believe Donnie is still Wolfco's agent.

Jordan has just fired Donnie, who was his agent in his stock brokerage firm, Wolfco. Jordan placed an ad in the Wall Street Journal stating: "Donnie no longer works for Wolfco or represents Wolfco in any way, shape or form." Jordan placed this ad to eliminate any possible liability resulting from actual authority. apparent authority. ratification. gratuitous agency.

Jumping Jeff's bears the risk of loss. The risk of loss does not transfer in this case of a destination contract until it is dropped off at the loading dock. As it never reached that point, Jumping Jeff's bears the risk of loss.

Jumping Jeff's Trampolines, in Nashville, contracted with Bouncing Betty's Toys to ship 50 trampolines to Bouncing Betty's retail store in Miami to be dropped off at her store's loading dock. If the truck carrying the trampolines is destroyed in a fire on the way from Jumping Jeff's to Bouncing Betty's, exactly 75% of the way through the trip, who bears the risk of loss if goods are to be shipped FOB Miami loading dock? Jumping Jeff's bears the risk of loss. Bouncing Betty's bears the risk of loss. Both Jumping Jeff's and Bouncing Betty's bear the risk of loss equally. Jumping Jeff's bears 25% of the risk of loss and Bouncing Betty's bear 75% of the risk of loss.

Kathryn will not be liable to Dani because her conduct was not the proximate cause of Dani's damages. Dani's loss of her term paper and scholarship was not a foreseeable result of Kathryn's negligence and was simply too remote.

Kathryn is walking down the street not paying attention and walks into the path of a city bus. The bus driver swerves to miss her and hits a fire hydrant which causes the area to flood. The flooding affects the city's power grid and the power fails, causing a blackout that affects millions. In the suburbs, Dani was at home about to email a term paper to her professor, but it was lost when the power went out. Dani got a D for the course and lost her scholarship. If Dani sues Kathryn for her negligence, what will the result be? Kathryn will be liable to Dani because a person is liable for all consequences of his or her negligence. Kathryn will not be liable to Dani because she could not have actually foreseen that it was dangerous to others to walk into the path of a city bus. Kathryn will be liable to Dani because she should have foreseen that not pay attention when walking near a city street would cause Dani's term paper to be lost. Kathryn will not be liable to Dani because her conduct was not the proximate cause of Dani's damages.

condition subsequent. This is a condition that must be met after the contract is signed for the contract to remain valid.

Lanza was just hired to work for a government defense contractor. A clause in the contract calls for Lanza to pass a background check before he can work in the job, as a security clearance is required for all employees. If he cannot pass the background check and get appropriate security clearance, he cannot have the job and the employment contract will be voided. This clause would be a condition precedent. condition subsequent. concurrent condition. nothing of consequence since Lanza has already signed the contract and the employer may not breach it.

It allows Conn to sue for specific performance for delivery of the custom display. The buyer in a UCC contract has the right to pursue specific performance if the goods are custom and cannot be obtained elsewhere on the market.

Louis Creations contracted in writing with Conn Crafts to design, build and ship to Conn a custom display for their retail store. The contract stated that the display was to be delivered by November 1, in time for the holiday season. This type of display cannot be purchased from vendors other than Louis. Louis failed to deliver the display by November 1 and in fact decided to send the custom display they had built for Conn to another company, Farr Imports. Which of the following does the UCC allow Conn Crafts to do under these circumstances? It only allows Conn to use cover, that is, Conn must purchase a retail display from another vendor. It allows Conn to sue for specific performance for delivery of the custom display. It requires that Conn sue for money damages only. It gives Conn no recourse, as a seller under the UCC need not honor a contract for the delivery of goods unless the buyer attempted to cover.

The contract need not be in writing. There is nothing in this contract that would require a writing. The statute of frauds does not require that a services contract (as opposed to a sale of goods) be in writing whether it is for over $500 or not. Even if a contract ultimately takes more than one year to complete, the issue is whether the terms of the contract itself call for a contract of more than one year, and this is not present in the hypothetical.

Markel entered into a contract with Jaylin to paint a portrait for her in consideration of $600. This contract was freely negotiated. There was nothing in the terms of the agreement about when Markel had to start on the portrait or how long it should take him to finish. It took Markel a long time to complete the portrait, almost 18 months. Which of the following is true of this contract? It must be in writing because it took longer than one year to complete. It must be in writing because it was for more than $500. It is a unilateral contract. The contract need not be in writing.

Emily is an intended beneficiary and she has the right to enforce the contract. Emily is an intended beneficiary, as the contract was intended to benefit her. Intended beneficiaries have full rights to enforce the terms of the contracts made for their benefit.

Mattie wanted to purchase a car for her daughter Emily's 16th birthday. She purchased the car at the dealer and ordered delivery on the day of Emily's birthday, when Mattie would be out of the country on a Himalayan expedition and unable to be reached by phone. What type of beneficiary is Emily and does she have rights to enforce the terms of the contract in Mattie's absence? Emily is an incidental beneficiary and she has the right to enforce the contract. Emily is an intended beneficiary and she has the right to enforce the contract. Emily is an incidental beneficiary and she does not have the right to enforce the contract. Emily is an intended beneficiary and she does not have the right to enforce the contract.

MM bears the risk of loss. In a destination contract, risk of loss passes to the buyer when the conforming goods are tendered at the destination specified in the contract. As perfect tender never occurred, MM bears the risk of loss.

Mighty Manufacturing (MM) entered into a contract to manufacture 100 custom pieces of furniture for Destiny Designs (DD). The contract stated "Custom furniture, 100 pieces, shipped FOB destination." If there is a windstorm after the truck has left the city where MM is located and the truck overturns and the furniture is destroyed, which party bears the risk of loss under the UCC? MM and DD bear the risk equally. MM bears the risk of loss. DD bears the risk of loss. The UCC does not address this issue, as this is a contract governed by the common law.

trial judge's input of any terms necessary to maintain fairness between CC and TT. The UCC does not refer to judicial input of any terms necessary to maintain fairness to determine enforceability of contracts.

Carla's Cars (CC) and Trixie's Transmissions (TT) entered into a contract for CC to purchase transmissions from TT. Certain terms of the contract were incomplete and somewhat ambiguous. Under the UCC, this contract will be allowed to be enforced using each of the following criteria except the: manner in which CC and TT have dealt with their commercial conduct in the past. typical standards followed by the industry in which CC and TT operate. trial judge's input of any terms necessary to maintain fairness between CC and TT. letters, emails and oral exchanges between CC and TT.

Implied warranty of fitness for a particular purpose. Springsteen knew that Carr was going to use the motorcycle for a particular purpose, and Carr relied on the recommendation to purchase the motorcycle.

Carr was shopping for a new racing motorcycle. He told Springsteen, the motorcycle dealer, that he needed the motorcycle to race on one-mile dirt tracks. Springsteen suggested that Carr buy a certain motorcycle that was designed for half-mile dirt tracks. When racing on a one-mile track, Carr was easily passed by his competition due to his bike being underpowered. What type of warranty has been breached? Express warranty. Implied warranty of merchantability. Implied warranty of fitness for a particular purpose. None (No warranty was made in this situation).

Beyhanna should not win because Ramone did not act with malice, an essential element of a defamation claim against a public figure. Public figures must prove malice as an element of their defamation claims.

Cindy verbally told a number of lies about Beyhanna, a diva recording star. These lies included that she was regularly using illegal drugs. One of the people Cindy told the lies to, Ramone, worked for Beyhanna's record label and Ramone went straight to the president of the record label and verbally told him about the drug use story that he had heard. While Cindy's stories were lies, they sounded compelling to Ramone and would have convinced the average reasonable person of their truthfulness. Beyhanna was fired by the record label as a direct result of the lies and lost out on a recording contract worth $5 million. If Beyhanna sues Ramone for defamation, what result? Beyhanna should win because this was an untrue statement that was disseminated and did her damages. Beyhanna should not win because this was not literally published, it was only spoken by Ramone and Cindy, thus it does not give rise to a claim for damages. Beyhanna should not win because Ramone has immunity from a defamation claim because she is employed by the organization that fired Beyhanna. Beyhanna should not win because Ramone did not act with malice, an essential element of a defamation claim against a public figure.

CA should win because internet service providers have immunity and safe-harbor as publishers from defamation claims. The Communications Decency Act of 1996 extended immunity to internet service providers by protecting them from defamation liability as a publisher of the information.

CompAmerica (CA), an internet service provider, provided the online platform for thousands of customers to publish their online content. CA did not edit, review or reformulate content posted by customers. One of those customers was a rumor website named Scandalcity, which published several false and defamatory statements about Roger, a high school principal. These included lies that he had stolen money from his high school and was selling drugs to students. Roger was fired and sued CA for providing the platform for these defamatory statements, under the theory that CA was a publisher. What should be the result of Roger's lawsuit? Roger should win because this is libel and CA was the publisher. Roger should win because this is trade libel, as it involves Rogers profession, and CA was the publisher. CA should win because internet defamation requires that specific malice be proven, and this was not present in CA's actions. CA should win because internet service providers have immunity and safe-harbor as publishers from defamation claims.

No, he has absolute privilege as a government official during debate. There is a privilege as Foghorn was acting in an official capacity.

Congressman Foghorn was addressing fellow members of Congress during a debate and said of his rival Congresswoman Bombast: "Bombast is a liar and spy for the Russians!" Bombast said this because he specifically wanted to damage Bombast's reputation, and even though he did not know it was a lie, he had a reckless disregard for the truth because his source for the rumor, Sam Shady, was notorious for lying. Bombast was harmed and was not re-elected. Is Foghorn guilty of defamation? Yes, he has committed slander and malice was present. Yes, he has committed libel and malice was present. No, there was no malice as Foghorn did not specifically know it was a lie. No, he has absolute privilege as a government official during debate.

Specific performance Specific performance is available to a party to obtain goods when they are custom or unique. It is an order from the court compelling the other party to perform their obligation under the contract.

Darnell ordered 500 frisbees with his company logo on them from Jennifer's Ad Specialties. Jennifer's refused to turn over the frisbees, even after Darnell had paid in full. Darnell has gone to court to obtain an order compelling Jennifer's to send him the frisbees. Which type of equitable remedy is Darnell seeking? Substantial performance Specific performance Tender of delivery Perfect tender

to do nothing, as Darnell as engaged in puffery. Puffery is distinguished from factual promises, it is a nonfactual statement that does not give rise to any duties owed by the party making the statement.

Darnell was a car dealer who sold used cars. He told Jefferson "That car is the finest car around." In reliance upon this representation, Jefferson purchased the car. After he had bought it, his girlfriend told him the model of car he bought was rated below average by cars.com. Jefferson took the car back to Darnell to get a refund. Under these circumstances, the duty that Darnell owes Jefferson is to give him a refund, as Darnell violated an implied warranty of merchantability. to give him a refund, as Darnell is in violation of the Magnuson-Moss Act. to give him a refund, as Darnell violated an express warranty. to do nothing, as Darnell as engaged in puffery.

an intentional tort. The act of intentionally hitting another with a car is an intentional tort.

Dirk is the delivery driver for Papa Pepperoni's Pizza. On a delivery he spotted Marvin, his main competition for the affections of his girlfriend Jolene. He accelerated his truck and hit Marvin, breaking both his legs. Under these circumstances, this is a negligent tort. an intentional tort. nonfeasance. a crime but not a tort.

ratification of agency. Ratification of agency occurs when a principal affirms a previously unauthorized act, giving after-the-fact authority to it.

Doke is manager of an apartment building and notices the parking lot has numerous potholes. Residents are complaining and threatening to not renew their leases. Without contacting Kimba, the owner of the apartment building, Doke calls a paving service, signs a contract, and has them repave at a cost of $50,000. Doke has no authority to make such expensive repairs. When Kimba returns from a vacation and sees the parking lot, she thanks Doke for his initiative and approves of the repairs. This is an example of a/an ratification of agency. partially disclosed agency. gratuitous agency. independent agency.

consent Consent occurs when an agent agrees to act for the principal.

Dravon agreed by contract to be an agent employee for Imagine Corporation. This is known in agency law as manifestation consent disclosure ratification

Elizabeth was on a detour, so BBHS is liable. Since Elizabeth is required to act prudently, stopping for food when hungry is appropriate. A half mile deviation from the route is not far enough to make this detour a frolic, which would free BBHS from liability under respondeat superior.

Elizabeth works as a delivery driver for Big Box Hardware Store (BBHS) and picks up a load of metal barn roofing to deliver to a customer. Elizabeth is told by her manager to take a certain route to deliver the roofing. While driving to the location, Elizabeth decides to drive a half mile out of her way to pick up some food at Taco Palace. Elizabeth does not call BBHS to ask for permission to get tacos. On the way to Taco Palace, Elizabeth rear ends Jake's car, giving him whiplash and totaling his car. Jake sues BBHS. What result? BBHS is not liable because Elizabeth was on a detour. BBHS is not liable because Elizabeth was on a frolic. Elizabeth was on a detour, so BBHS is liable. Elizabeth was on a frolic, so BBHS is liable.

Elton loses because Bennie's statement was puffery. Mere puffery, such as saying something is "the best", does not give rise to a claim for avoiding a contract as it is mere opinion.

Elton has contracted with Bennie to purchase his manufacturing business for $10 million. Bennie represented to Elton that he had the "best manufacturing company in North America." After Elton purchased the business, he lost money on it and realized it was definitely not the best company. He sued to avoid the contract based upon misrepresentation. The expert witnesses at trial agree that Bennie's business was not the best in North America. Assuming Bennie's representations above are the ones at issue in the lawsuit, and that Elton reasonably relied on them, what result? Elton wins because Bennie's statement was fraudulent misrepresentation. Elton wins because Bennie's statement was negligent misrepresentation. Elton loses because a buyer has an absolute duty to make a thorough inspection and analysis or they have no breach of contract claim. Elton loses because Bennie's statement was puffery.

expiration. An agency relationship is terminated by expiration when a time period for the agency is reached.

Frosty and Sunny agreed to an agency agreement where Frosty would work for Sunny from January 1 until April 1. On April 1, the agency will terminated by expiration. revocation. operation of law. destruction of the essential subject matter.

General Contracting can have the contract discharged based on impracticability. The rock was unforeseen and the resultant great increase in the cost creates an extreme burden, so the elements of impracticability are met.

General Contracting was hired by the city of Rockyville to put in a new road through a mountain pass for $2 million. General Contracting did reasonable soil tests as would be expected of a contractor under their circumstances. The job would involve about 80% costs related to highway materials and 20% labor costs. When General Contracting started building the road, they discovered that it was solid granite a few feet down and that the mountain was unlike any they had ever seen in the state. It would cost them over $5 million in costs just to complete the job. If General Contracting refuses to complete the job at a loss and Rockyville sues, what result? General Contracting is under contract and will have to complete the job at a $3 million loss. General Contracting can have the contract discharged based on impracticability. General Contracting can have the contract discharged based on impossibility. General Contracting can have the contract discharged based on frustration of purpose.

Gertie wins because there was no special relationship between her and William. Gertie's failure to act is not a tort because the general duty of care does not include a duty to rescue another unless there is a special relationship between the parties.

Gertie was sitting on her porch when she saw William, a person who lived down the street from her whom she occasionally spoke to, walking by, texting on his phone. William turned towards the street, not paying attention to his surroundings. Gertie saw he was about to walk into the path of an oncoming truck but did not warn him and watched as he was hit by the truck and flew through the air. William was badly injured and sued Gertie. What is the likely result? Gertie wins because there was no special relationship between her and William. Gertie wins because this was misfeasance. William wins because this was negligence per se. William wins because Gertie breached a duty to act as a reasonably prudent person.

the goods must be delivered on a weekday. Although standards of the industry will be adhered to, there is no requirement that goods be delivered only on a weekday.

Gigantic Toys (GT) contracted with Destiny Distributing (DD) to deliver 5,000 kid cars to them via ground delivery. If there are no specific agreements regarding the terms of shipping between GT and DD, the reasonableness requirement of the UCC governing delivery of goods requires each of the following except the goods must be delivered in one shipment. the goods must be delivered at a reasonable hour. the goods must be delivered on a weekday. the goods must be delivered in a reasonable manner.

They must send a written confirmation, in either hard copy or electronic form, to Golfco that confirms the correct quantity and price. When a party to an agreement by phone under the UCC sends a written confirmation of the agreement to the other party with the correct quantity and price, they will be bound by the contract and the statute of frauds is satisfied unless they promptly object.

Golfco ordered 5,000 boxes of golf balls from Golfer's Supply for a total wholesale price of $100,000. The order was by phone and there was no written contract between Golfco and Golfer's Supply. What must Golfer's Supply do to make this a binding contract under the UCC? They need do nothing, a phone conversation is sufficient in all circumstances to establish a binding contract under the UCC. They must send a written contract on paper within one business day that is signed by authorized Golfco representatives. They must send a written confirmation, in either hard copy or electronic form, to Golfco that confirms the correct quantity and price. There is nothing they can do, as a phone conversation for the sale of goods over $500 has no legal authority under the UCC, regardless of what Golfer's Supply did thereafter.

All of the answer choices are correct. The UCC provides that when the seller fails to achieve perfect tender, the buyer may reject all of the goods within a reasonable time, accept all of the goods, or accept part of the goods and reject the rest within a reasonable time.

Harriet's Hats ordered 1,000 red hats from Gary's Retail Supply. Gary's sent 1,000 blue hats by mistake. Under the UCC, which of the following options does Harriet's have? Reject the entire shipment of blue hats within a reasonable time. Accept all of the blue hats as is. Accept part of the blue hats and reject the rest within a reasonable time. All of the answer choices are correct.

res ipsa loquitur Res ipsa loquitur allows an injured party to create a presumption that the tortfeasor was negligent by pointing to certain facts that infer negligent conduct without showing exactly how the tortfeasor behaved negligently.

Hillary took her motorcycle to a mechanic, Kenneth, to repair a leaking tire. She picked up the motorcycle and was riding home when the tire that had been repaired suddenly deflated and Hillary crashed into a parked car, suffering broken bones. Hillary cannot prove exactly what Kenneth may have done wrong, but the tire should not have deflated if he had installed it properly. Which of the following doctrines should Hillary base her claim upon? nonfeasance misfeasance res ipsa loquitur negligence per se

BWI's sole manufacturing plant burned down on October 1, yet the CEO of BWI insists that the company will rebuild and honor the contract. With less than 30 days to rebuild and manufacture the widgets, it is unlikely that BWI can perform, despite its best efforts and honorable intent. Hipster should be able to protect itself, particularly with the holiday gift-giving season fast approaching.

Hipster Bicycles ordered 10,000 bicycle wheels from Bicycle Wheels Incorporated (BWI) with delivery to be made on October 30. These wheels will be used by Hipster to meet the bicycle demand for the upcoming holiday season. Under which circumstance may Hipster claim that BWI has made an anticipatory repudiation of the contract? The cost of steel to manufacture the wheels has risen, lowering BWI's profit margin, yet BWI insists that it will honor the contract. The demand for bicycles has suddenly decreased, and Hipster isn't sure it can sell the 10,000 wheels it ordered. BWI's sole manufacturing plant burned down on October 1, yet the CEO of BWI insists that the company will rebuild and honor the contract. Hipster has found another manufacturer that can provide less expensive wheels of the same quality as BWI's wheels.

nominal damages Nominal damages are rarely awarded, but the court may award nominal damagges when a breach of contract has occurred but no injury has resulted.

"Kirsten entered into a contract with Brando to remodel Brando's kitchen by June 1st, as he was putting his house on the market. The contract specifically states that the job was to be completed by June 1st. Kirsten completed the remodeling on June 5th. Max has suffered no loss due to the delay, as no prospective buyers came out to see his house in the first week it was on the market. The job was otherwise done exactly to all contract requirements and specifications. If Brando sues Kirsten for breach of contract due to the missed completion date and if the courts were to award damages, what type of damages would most likely be awarded? punitive damages consequential damages restitution nominal damages

fraudulent misrepresentation Honest Bill's actions are fraudulent misrepresentation, as the misrepresentation was material, known to be false by Bill, he misrepresented things to convince Fran to buy the car, she reasonably relied on his misrepresentation and was damaged.

Honest Bill the used car salesman told Fran, a prospective customer, that the car she was considering had only been driven by a little old lady on Sunday and had only 30,000 miles on it. Honest Bill knew this was a lie and that the mileage had been altered, as the car actually had 230,000 miles on it. Which of the following would Honest Bill's actions be if Fran buys the car in reasonable reliance upon his lies and the car breaks down a week after she buys it? slander trade libel product disparagement fraudulent misrepresentation

invitee. An invitee is one invited onto property for business purposes.

A person who is a customer of Safemart who slips and falls on aisle four is considered a/an invitee. licensee. accidental trespasser. incidental trespasser.

assumption of the risk. Assumption of the risk is available as a tortfeasor if the plaintiff knowingly assumed a substantial and apparent risk and went ahead with the dangerous activity anyway.

A plaintiff who knows there is a substantial danger associated with certain conduct and goes ahead with the dangerous activity anyway gives the tortfeasor the defense of superseding cause. assumption of the risk. strict liability. Res ipsa loquitur.

obtain the signature of a cosigner who has the means to repay any debt. A credit card company may not issue a card to anyone under 21 without a cosigner who has the means to pay off any debt.

If a credit card is issued to a consumer under the age of 21, the credit card company is required to obtain the signature of a cosigner who has the means to repay any debt. give a 60-day notice before making any rate hikes. notify the cardholder's parents so they can monitor their child. set reasonable spending limits.

precedent A condition precedent is one in which there is an event that must occur before performance under a contract is due.

After finishing an internship while a student, Danielle received an offer for employment as a staff tax accountant for Lincoln, Roosevelt and Reagan, CPAs, to start on August 1st, after she finished her master's degree in accountancy. Included in the contract was the following provision: "This contract shall be cancelled if the prospective employee fails to pass the CPA exam prior to the start date of employment." Which of the following types of conditions is this provision? antecedent precedent subsequent concurrent

Cartwright, a private party, selling his airplane to O'Brien, a private party consumer. The warranty of merchantability does not apply to non-merchants, therefore it would not apply to Cartwright, a private party seller.

An implied warranty of merchantability will apply to all of the following transactions except Bauman, a dealer of motorcycles, selling a motorcycle to Ketchum, a private party consumer. Anson, a distributor of cars, selling a car to a Hunter, a dealer of cars. Cartwright, a private party, selling his airplane to O'Brien, a private party consumer. Markel, a retailer of vacuum cleaners, selling a vacuum cleaner to Bart, also a retailer of vacuum cleaners.

not considered an employee of an organization and has no legal protections of an employee. An independent contractor agent is not considered an employee and has no legal protections of employees such as minimum-wage and overtime-compensation laws.

An independent contractor agent is considered an employee of an organization and has the legal protections of an employee. considered an employee of an organization and has no legal protections of an employee. not considered an employee of an organization but has the legal protections of an employee. not considered an employee of an organization and has no legal protections of an employee.

Immediately seek injunctive relief. Injunctive relief will block the sale to Barathi, while specific performance occurs after the breach, when the bike is no longer available.

Aria contracted to purchase Vikram's custom 1957 Chevy Bel Air car for $50,000, with payment and delivery of the car to be made five days after the contract was made. Two days later Aria heard that Vikram was going to sell the car to Barathi the next day for $60,000. If Aria really wants the Chevy, what should she do? Immediately sue for specific performance. Immediately seek injunctive relief. Immediately sue for compensatory damages. Immediately sue for consequential damages.

This is not substantial performance because Austin did not act in good faith. Substantial performance requires that any deviation from required performance is not material and that the party trying to enforce the contract acted in good faith. Per Nygee's expressed reasons for wanting the paint, there likely was a material variation and in deceiving Nygee to increase his profits, Austin clearly did not act in good faith.

Austin contracted to paint Nygee's house. Nygee specified a certain brand of paint that she always used on her house. She told Austin that her great grandfather had founded the paint company. Austin secretly used a different brand of paint because he got a half price deal on it and could increase his profits by $1,000. He never told Nygee what he had done. The paint Austin used was similar in quality to what Nygee had ordered, there was no material variation in that, and the job looked good. However, it was not per Nygee's intentions. Nygee found out when she saw the brand of the paint that Austin's secretary had inadvertently typed on the invoice. Nygee refused to pay. Austin has claimed he substantially performed and sued for payment. What result? This is substantial performance because the paint is of similar quality. This is substantial performance because the job looked good. This is substantial performance because there was no material variance. This is not substantial performance because Austin did not act in good faith.

design A design defect is when foreseeable risks of harm posed by the product could have been reduced or avoided by an alternative design.

Basic Technologies manufactured an engine that was used in small airplanes. The engineers specified B-grade wiring to be used in the engine. When Bonnie flew an airplane with a Basic Technologies engine, the wiring failed and the plane crashed, injuring her. Bonnie claimed that the plane should have had the more heavy-duty A-grade wiring on the engine. Bonnie is claiming which of the following products liability defects? manufacturing design marketing warranty

The price will be the reasonable price at the time the goods are delivered. The UCC requires that the reasonable price at the time of delivery be used if price is an open term.

Best Computers (BC) and Advanced Designs (AD) entered into a contract for BC to purchase 500 computer monitors from AD. There was no mention of the price in the contract. Which of the following is true of this contract? It will be void because under the UCC, price is a required term of the contract. The price will be the reasonable price at the time the contract was entered into. The price will be the reasonable price at the time the goods are delivered. The price is determined by the court's applying a reasonable price at whatever time the court deems appropriate to reach a fair result.

partially disclosed agency. If the third party knows that the agent is representing a principal but does not know the actual identity of the principal, the agency relationship is a partially disclosed agency.

Bev knew that when she was dealing with Kirsten that Kirsten was representing another party in a land purchase, but she did not know whom. This type of agency is a/an undisclosed agency. partially disclosed agency. gratuitous agency. disclosed agency.

TT is not liable because Big Bob was on a frolic of his own. Big Bob's deviation to see the spaceship launch 60 miles out of his way is a frolic, which will free the principal from liability as it is outside the scope of employment.

Big Bob worked for Transfer Trucking (TT) as a driver and was an agent of TT. Big Bob drove a regular route, making deliveries along the way. One day Big Bob drove 60 miles out of his way and off the normal route to see the launch of a space ship. While driving to see the launch, Big Bob was distracted and negligently smashed his truck into a car driven by Austin, injuring him. Austin is now suing both Big Bob and TT for personal injuries. Under the circumstances TT is liable under the doctrine of respondeat superior. TT is never liable for the negligent torts of its agents. Austin can recover damages from both Big Bob and TT. TT is not liable because Big Bob was on a frolic of his own.

subsequent A condition subsequent is an event that occurs after the performance under the contract and discharges the parties' obligation. It is frequently used in insurance contracts.

Big Insurance Corporation had a provision in their insurance contract with Gerald that said the following: "No lawsuit to recover under this contract shall be valid unless the suit is filed within 18 months of the time of the insured's loss." Which of the following types of conditions is this? antecedent precedent subsequent concurrent

Craig wins under the doctrine of negligent hiring. Negligent hiring makes a principal liable to a third party even for intentional acts of an agent.

Big Manufacturing was interviewing Blondell for a position as a production line manager. He had excellent references for working hard and competence, but one of his references told the hiring supervisor that Blondell had a temper and seemed like he was always "ready to explode." Since Big Manufacturing needed a manager fast, they took their chances and offered Blondell a job. Within a month after being hired, Blondell screamed at a group of tourists visiting the factory and punched Craig, a man who shouted back at him. Craig sued Big Manufacturing for his injuries. What result? Craig wins under the doctrine of negligent retention. Craig wins under the doctrine of negligent hiring. Big Manufacturing wins because Blondell was involved in a detour. Big Manufacturing wins because Blondell was involved in a frolic.

express warranty. The promise by the truck manufacturer constitutes an express warranty even though made in the context of a brochure.

Big Truck Motors (BTM) advertised in its brochures that its trucks had dent proof bumpers. Bubba bought a BTM truck in reliance upon this promise. Bubba said nothing about how he would use the truck to the dealer, just that he wanted the best truck money could buy. When his boat trailer detached and smacked into the back of his truck, the bumper was badly dented. Bubba can sue under a theory of implied warranty of fitness for a particular purpose. express warranty. intentional tort. negligence.

battery. Even though Billy Ray apologized, this is still battery because he touched her without her consent causing embarrassment and a feeling of harassment.

Billy Ray sneaks up behind Jenny Sue and grabs her by the shoulders and shakes her. Jenny Sue is startled and screams but is otherwise uninjured. She feels harassed and embarrassed by the incident. Billy Ray feels bad, apologizes to Jenny Sue, and runs away. Billy Ray has committed personal trespass. battery. intentional infliction of emotional distress. nothing, because he apologized and Jenny Sue was uninjured.

This is a merchant's firm offer and it is valid. A merchant's firm offer occurs only as a result of an explicit promise, in writing, made by a merchant, to hold a price open for a period of time up to three months. It requires no consideration.

Billy owns Billy's Balloons (BB), a company that provides balloons for corporate events and large parties. BB agreed in writing with Corporate Promotions (CP) to hold the price of $3,000 for 10,000 18-inch diameter helium balloons open for CP for the next two months. CP paid nothing additional to BB for the right to pay this price over the next two months. Which of the following is this agreement known as and is it a valid contract? This is a merchant's firm offer but it is not valid because CP paid no consideration for it. This is a merchant's firm offer but it is not valid because it is for longer than the 30-day limit on such offers. This is a merchant's firm offer and it is valid. This is a common law unilateral contract offer and it is valid.

apparent agency authority. HAP reasonably believed that Blasise was still employed by BAS and that she was still agent for BAS with apparent authority.

Blaise is employed as a buyer for Big Auto Supply (BAS). As part of his normal duties, Blaise regularly ordered supplies for BAS from Huge Auto Parts (HAP), which he would then pick up and take to the BAS warehouse. BAS always paid for these parts within 15 days of receipt. Blaise was fired from his job and three days later, placed a $10,000 order for parts from HAP from his personal cell phone. He picked up the parts and then sold them on the internet, taking the money for himself. BAS management never informed HAP that Blaise had been fired. Under these circumstances, BAS could be liable for HAP's damages based on actual agency authority. undisclosed agency authority. apparent agency authority. disgorgement.

automatically terminates due to impossibility. A change in the law making the contract illegal terminates the contract based on impossibility.

Blake agrees to purchase a four-wheel drive monster truck from Offroad Autos and schedules a delivery. Blake signs a contract promising to pay the amount of $40,000 in full upon delivery in three days. The day before the scheduled delivery, Congress passes an emissions law making sale of vehicles with inadequate gas mileage illegal, and the truck that Blake contracted to purchase is included among the illegal vehicles. This contract automatically terminates due to impossibility. automatically terminates due to impracticability. automatically terminates due to frustration of purpose. is enforceable and not affected by the new law because it was entered into before the law took effect.

partially disclosed. A partially disclosed agency exists when the third party knows of the agency but not the specific identity of the principal.

Botha is a rich art collector and corporate executive who wants to remain anonymous in a purchase of a Van Gogh painting. He has Francine, an executive in his corporation, negotiate for the purchase of the painting, which is being sold by Northaby's Art Sales. Francine reports directly to Botha and is supervised directly by him. Botha instructed Francine to tell Northaby's that she represents an art collector who will go unnamed. The agency would be described as disclosed. partially disclosed. undisclosed. indemnified.

a requirements contract. A requirement contract is an agreement to purchase all the goods that the buyer needs for a given period from a certain seller.

Brandon's Computers Incorporated (BCI) entered into an agreement to purchase all of the computer chips that BCI needed for the next year from Chipco. What is this agreement called? an output contract. an input contract. a requirements contract. an exclusives contract.

$100,000 compensatory, $500,000 consequential Compensatory damages are those that are suffered as a direct result of a breach of contract, while consequential damages are those not directly related to the contract but that were foreseeable. In this case, the compensatory damages would be the difference between what they had to buy a machine for ($800,000) minus what the contract price was for ($700,000), for a total of $100,000 in compensatory damages. Consequential damages are those that are foreseeable but not directly related to the contract, and these are $500,000, the loss of profits.

Nichole was the owner of Nicho Manufacturing Incorporated (NMI), which produced car tires. They averaged $500,000 in profits per month. NMI contacted American Manufacturing Equipment (AME), which produced the main machine that made their tires, and told them that their current AME tire manufacturing machine was about to break down and she needed a new one. Nichole advised them things needed to be done quickly because $500,000 in profits a month were at stake. Martha, the CEO of AME, assured Nichole that they would have a new machine out to her company within two weeks. The machine was worth $700,000 and that was the contract price for the machine that AME promised to deliver. Martha later contacted Nichole and told her they would not be able to deliver the promised machine. NMI's machine then broke down, and Nichole had to purchase a machine from a competitor of AME, and paid a premium for the rush" as it read better. order, the competitor's machine cost NMI $800,000. NMI was down for one-month total as a result of AME's breach and as a result lost $500,000 in profits. What type of damages can Nichole recover? $100,000 compensatory, $500,000 consequential $100,000 consequential, $500,000 compensatory $600,000 consequential No damages, as AME did not intentionally defraud NMI.

Shell will be required to reimburse Quintin for the cost of the fluid based on implied authority stemming from his express authority to drive the truck. Quintin had the obligation to act with care to complete the job, and purchasing necessary fluids is implied from the actual authority stated. Quintin must be reimbursed.

Quintin works as a telephone lineman for Shell Telephone. While driving to a job site, he noticed the truck's power steering was making a bit of noise. Quintin stopped and checked the power steering fluid gauge, which registered as low. He then bought some power steering fluid for $5 at Auto Parts Emporium, added it, which was a simple operation not requiring a mechanic, and the truck worked fine thereafter. If Quintin seeks reimbursement for the fluid, is Shell required to provide it? Shell is not required to reimburse Quintin unless he had been given the express written authority to purchase the fluid before starting the delivery. Shell is not required to reimburse Quintin unless he phoned in and asked for and was granted permission to purchase fluid. Shell will be required to reimburse Quintin for the cost of the fluid based on implied authority stemming from his express authority to drive the truck. Shell will be required to reimburse Quintin because apparent authority gives him the right to buy fluid when needed.

Rachel does not have a good case for defamation because Willow's statement is pure opinion. Pure opinion statements do not meet the requirement for a defamatory statement, as they are not provable as false.

Rachel ran a food truck business. Willow told several of Rachel's customers that in her opinion, Rachel was the "biggest jerk" she knows. As a result, some of Rachel's customers stopped buying food from her truck. Rachel is considering a lawsuit against Willow for defamation. Assuming you are Rachel's legal counsel, what is the best and most accurate legal advice? Rachel has a good case for defamation because she has suffered business damages and pecuniary harm. Rachel has a good case for defamation because Willow disseminated this information to several third parties. Rachel does not have a good case for defamation because Willow's statement is pure opinion. Rachel does not have a good case for defamation because this is mere slander, or spoken defamation, which does not support damages.

assumption of duty Assumption of duty holds that even though there is no general duty to act or rescue, when one party voluntarily begins to render assistance, they must proceed with reasonable care.

Raelynn saw Tawny choking in a restaurant. Raelynn jumped from her seat, beat Tawny on the back in her untrained attempt at Heimlich Maneuver, which she did not know how to perform, and gave Tawny serious back injuries. Raelynn will be liable to Tawny under which of the following doctrines? comparative negligence assumption of duty assumption of risk Raelynn will not be liable as there is no general duty to rescue.

be more conspicuous than other disclosures. Regulation Z requires that this information be more conspicuous than other disclosures.

Regarding finance charges and APR, Regulation Z requires that their disclosure is not necessary. be included with the rest of the information regarding the credit transaction. be more conspicuous than other disclosures. need not be seen by the consumer.

an independent contractor. Roger is hired on a per-job basis and is minimally controlled, making this an independent contractor relationship.

Rita defaulted on the loan of her motorhome. She had borrowed the money to purchase the motorhome from Thrifty Bank. Thrifty hired Roger the Repo Man to repossess the motorhome for a fee of $1,000. Roger was told to find the motorhome and take it in whatever manner he thought best so long as he did not break the law. Roger would be classified as an agent/employee. a principal. a gratuitous agent. an independent contractor.

Rhoda but not Rodriguez and Howard, as Marlin suffered no physical harm. When an employee's misconduct does not cause physical harm, but results in harm only to emotional state, reputation or purely economic loss, respondeat superior does not apply.

Rodriguez and Howard, Attorneys at Law, hired Rhoda as an associate attorney. Rhoda represented a client while working for Rodriguez and Howard and told several lies about Marlin, the person her client was suing. These lies resulted in Marlin being fired from his job. The principals at Rodriguez and Howard had no knowledge of what Rhoda had done. Under these circumstances, which of the following can Marlin successfully sue? Rodriguez and Howard only, under the theory of respondeat superior. Rodriguez and Howard and Rhoda. Rhoda but not Rodriguez and Howard, as Marlin suffered no physical harm. Neither Rodriguez and Howard nor Rhoda, as mere lies about a person do not give rise to a tort action.

disgorgement. Disgorgement is a remedy available to punish an agent for disloyalty by stripping the agent of any profits derived from his or her improper acts.

Roger works as a sales manager for Hi-Tech Solutions, a company that performs software consulting services. While working for Hi-Tech, Roger started a side business doing software consulting work and made $50,000 in it over the course of three years. Roger never informed Hi-Tech of his lucrative side business. If a court finds that Roger breached his duty of loyalty and orders him to pay Hi-Tech the $50,000 in profits he earned from his secret business, this is known as replenishment. disgorgement. restoration. reinstatement.

the buyer may sue the carrier, but not the seller, for its loss. This is a shipping contract, and the seller's liability ceases once the seller delivers the goods to the carrier, or the trucking company. Therefore, Savannah Creations may not be successfully sued for the loss of goods.

Savannah Creations contracted to sell $10,000 of coastal Georgia style crafts to Big City Retailing in New York City. The crafts were to be shipped by truck from Georgia to New York. No other shipping terms are indicated. If the truck catches on fire during the trip and all the goods are destroyed the buyer may sue the seller, but not the carrier, for its loss. the seller may sue the carrier because the seller maintained the risk of loss and the right to sue for losses. the buyer may sue both the seller and the carrier for its loss. the buyer may sue the carrier, but not the seller, for its loss.

It will be considered a shipment contract. If the agreement between parties in a UCC governed contract does not allocate risk of loss or state whether it is a shipment or destination contract, it is generally considered a shipment contract.

Seale Manufacturing and Keen Enterprises entered into a contract for Seale to deliver 500 aircraft parts to Keen in consideration of $50,000. The contract was written and signed by both parties, but had no provision indicating when the risk of loss passed from Seale to Keen in the shipment. Which of the following is generally true of this agreement? It will be considered a destination contract. It will be considered a shipment contract. It will be considered a unilateral contract. It will not be considered a valid contract because contracts governed by the UCC require that shipment terms be stated clearly.

negligence This is an unintentional tort of negligence, as Sharice did not live up to the standards of a reasonable person in carelessly tossing a power drill over a sidewalk.

Sharice was working on a scaffolding 20 feet above the ground when she carelessly tossed her power drill to a co-worker. It fell to the ground and landed on Gardner, a visitor to the construction site, injuring him. What category of tort is this? intentional tort negligence strict liability No tort, because it was not intentional

output contract. An output contract is a contract to sell all of a good that can be produced within a period of time.

Shark Knives Outlet entered into a contract where they agreed to purchase all of the switch knives that Jet Knife Manufacturing could produce for the year 2021. This is a/an output contract. input contract. requirements contract. necessities contract.

Chet can avoid the contract because of innocent misrepresentation. Innocent misrepresentation allows the party that has been deceived to avoid the contract so long as they can prove that the misrepresentation was material and they justifiably relied upon the misrepresentation.

Sheila was a used car salesperson who told Chet, a prospective buyer, that the car he was considering was only driven to church on Sunday by a little old lady and was in excellent condition when in fact it was owned by a street racer and was in poor mechanical condition. Chet signed a contract to buy the car in justifiable reliance upon Sheila's misrepresentations. If Sheila honestly but wrongly believes the little old lady story, may Chet avoid the contract? Chet can avoid the contract because of fraudulent misrepresentation. Chet can avoid the contract because of innocent misrepresentation. Chet can avoid the contract because a consumer may always avoid a contract until the point of delivery. Chet cannot avoid the contract because there was no intention to deceive.

Both Shelby and Quick-E-Pizza are liable. Shelby was negligent and responsible. Quick-E-Pizza is responsible for Shelby's acts based on respondeat superior.

Shelby is a pizza delivery driver for Quick-E-Pizza. One day Shelby negligently failed to close her delivery truck's passenger door while stacking up six pizzas for delivery in the passenger seat. When she took a corner a little too fast, the pizzas flew out the door, tumbling into a busy intersection. A pizza splatted on Manuel's front window and he swerved out of control and crashed into a food truck, causing thousands in damages and physical injuries. Which of the following is correct of liability for the damages? Shelby, but not Quick-E-Pizza, is liable. Both Shelby and Quick-E-Pizza are liable. Quick-E-Pizza, but not Shelby, is liable. No one is liable; it was an accident.

Actively seek new employment as soon as possible Mitigation or lessening damages would best be accomplished by seeking new employment to keep lost wages to a minimum.

Shelby was offered a job by Cheatco and she signed an employment contract. She quit her current job, which was quickly filled by her previous employer, and packed up her apartment and moved to the city where the Cheatco job was located. When she arrived at Cheatco headquarters, the executive who had offered her the job told her the deal was off. How can Shelby best mitigate her damages? File her lawsuit as soon as possible while the evidence is available and witnesses' recollections are fresh File for unemployment insurance as quickly as possible so that she doesn't sink too far into debt Protest outside the Cheatco headquarters to pressure them to give her the job Actively seek new employment as soon as possible

Darby wins because Shirley is strictly liable for her abnormally dangerous activity of keeping a wild animal. Keeping wild animals can result in strict liability regardless of the precautions taken by the animal's owner.

Shirley owned a lion which she kept on a thick chain in her backyard. She took several precautions to protect people in the neighborhood, including building a high fence around her yard and putting up several signs that said "Beware of lion. No trespassing." In spite of the precautions she took, Darby managed to climb the high fence, ignored the signs and jumped into her backyard. Darby was mauled by the lion and managed to escape with serious injuries. Darby sued Shirley for his injuries. What is the likely result? Shirley wins because Darby assumed the risk of injury. Shirley wins because she took reasonable precautions to prevent injuries. Darby wins because Shirley is strictly liable for her abnormally dangerous activity of keeping a wild animal. Darby wins because a tortfeasor is always liable for any damages that occur to one harmed as a direct or indirect result of their activities.

he will be entitled to compensatory damages in the amount of $200. The $200 is actual, compensatory damages suffered directly as a result of the lack of available cars at Trusty.

Skip rented a car from Trusty Rentals for $50 a day for five days total. When he arrived at the Trusty, they were out of usable cars. Skip had to use the only other rental place in town, Super Rentals, and pay $90 per day for the five days. If Skip sues Trusty for damages and wins he will be entitled to compensatory damages in the amount of $200. he will be entitled to compensatory damages in the amount of $250. he will be entitled to consequential damages in the amount of $250. he will not be entitled to any damages because the additional costs were not foreseeable.

a bait-and-switch A bait-and-switch scheme involves a seller advertising a sale price, then discouraging the purchase of that item and trying to convince the buyer to purchase a different item on less favorable terms.

Sneaky Sales Retailing advertised a bicycle for a 40 percent sale price of $449 but when customers came in for the sale, the sales representatives told customers the advertised bike was on back order, and always encouraged them to purchase a $799 bicycle. This is known as a bait-and-switch predatory pricing. Magnuson-Moss violation. a violation of the implied warranty of merchantability.

Give notice of his intent to cure and deliver conforming cogs by July 15. A seller must deliver goods in a manner that matches the contract terms. If the seller does not, the buyer can reject the goods within a reasonable time, accept shipment as is, accept some of the shipment and reject the rest. If the buyer rejects within a reasonable time (and one day would certainly meet the requirement in this hypothetical), the seller may cure by giving notice and delivering conforming goods before the time for the seller's performance has expired.

Spacely Sprockets ordered 1,000 10-inch cogs from Cogswell Cogs to be delivered by July 15. On July 5, Cogswell delivered 1,000 12-inch cogs. Under the UCC, which of the following options does Cogswell have to cure the imperfect tender if, on July 6, Mr. Spacely informs Mr. Cogswell that the cogs are not usable? Give notice of his intent to cure and deliver conforming cogs by July 15. Reduce the price of the 12-inch cogs to an amount below fair wholesale value. Mr. Cogswell does not need to do anything to cure, because Mr. Spacely did not immediately inform him of the imperfect tender and must accept the nonconforming goods. Mr. Cogswell can do nothing to cure, because once a seller has delivered nonconforming goods, they have committed an incurable breach.

Dwight is liable for negligence because Stan did not knowingly assume the risk that Dwight would hit a shot in his direction. Dwight committed an unintentional tort of negligence. Assumption of risk would not apply in this situation, as no reasonable person would assume that Dwight would suddenly hit a shot down the fairway knowing Stan was in the path.

Stan and Dwight were playing in a golf tournament and came to a hole where there was a hill that required a blind shot to the green. Dwight asked Stan to drive ahead in the golf cart to see if they could hit their shots. Stan drove the cart over the hill, saw the green was clear, and started driving back to the tee box. Dwight never saw Stan heading back in the cart, became impatient and without warning hit his shot. The shot conked Stan on the head, knocking him out and resulting in a long term disability. Stan sued Dwight for negligence. What is the likely result? Dwight is liable for negligence because a tortfeasor is always liable for whatever damages their behavior causes. Dwight is liable for negligence because Stan did not knowingly assume the risk that Dwight would hit a shot in his direction. Dwight is not liable for negligence but is liable for assault and battery because he committed an intentional tort. Dwight is not liable for negligence because Stan knowingly assumed the risk that Dwight would hit a shot in his direction.

This was a destination contract, and the toilet seats were nonconforming goods, so CSS did not complete performance and retained risk of loss. This was a destination contract, and risk of loss transfers when conforming goods are tendered at the contracted point. Since the goods were nonconforming, there was no tender of performance and CSS retained the risk of loss.

Stevenson Sanitation Corp (SSC) ordered 1,000 green toilet seats from Commercial Sanitation Supply (CSS). The contract stated "1,000 green toilet seats, FOB SSC loading dock." The toilet seats were required to be green because this was SSC's trademark color. When the shipment arrived, SSC discovered that it has received 1,000 red toilet seats. Before SSC could notify CSS and return the seats, a fire destroyed SSC's building along with the shipment of seats. Which of the following statements is true? This was a destination contract, and since the seats were tendered to the destination, SSC bears risk of loss until they can be returned. This was a destination contract, and the toilet seats were nonconforming goods, so CSS did not complete performance and retained risk of loss. This was a shipment contract, and SSC assumed risk of loss when CSS delivered the goods to the carrier. This was a shipment contract, and CSS retained risk of loss until the goods were tendered to SSC at their loading dock.

at the time and place that delivery occurs. In the absence of a specific contract provision regarding the details of payment, the UCC provides that payment be made in full at the time and place that delivery occurs.

Stewart's Submarines contracts with Brando's Battery Supply (BBS) to purchase 100 batteries. There is no provision in the contract stating when the payment is to be made for the batteries that are delivered by BBS. The UCC requires that payment be made in full at the time and place that delivery occurs. within a reasonable period of time after delivery occurs. within 10 days of the time and place that delivery occurs. within 30 days of the time and place that delivery occurs.

Reformation When the parties have imperfectly expressed their agreement and this imperfection results in a dispute, a court may change the contract by rewriting it to conform to the parties' actual intentions.

Stokes signed a contract to purchase a car from a dealer, Othick, for $15,000. However, when the contract was examined closely, a decimal point was inadvertently put in and the contract called for Stokes to get the car for $150. Stokes is attempting to enforce the contract against Othick for $150. Othick wants the court to change the contract to $15,000, which he claims is the true intent of the parties. What remedy should Othick pursue with the court? Mitigation Specific performance Reformation Tender of performance

This is a destination contract, and since the goods were never properly tendered, CC bears the risk of loss. This was a destination contract and the goods were never tendered to the SS location, thus CC bears the risk of loss.

Systematic Systems (SS) entered into an agreement with Creative Computing (CC) for CC to deliver 1,000 computer hard drives to SS, "FOB SS warehouse." A check for payment will be given on delivery. On the way to make the delivery, the truck was overturned by a tornado. The driver escaped alive, but the hard drives were ruined. Which of the following statements is true? This is a shipment contract, and CC bears risk of loss. This is a shipment contract, and SS bears risk of loss because the hard drives had been set aside and tendered. This is a destination contract, and because delivery had been initiated, the SS bears the risk of loss. This is a destination contract, and since the goods were never properly tendered, CC bears the risk of loss.

14 years. Bankruptcy filings are obsolete and should be removed from credit reports after 14 years.

The Fair Credit Reporting Act (FCRA) requires that credit bureaus remove obsolete bankruptcy filings from credit reports. A bankruptcy filing is considered to be obsolete after 7 years. 8 years. 13 years. 14 years.

contains a filthy, putrid or decomposed substance. The FDA defines adulterated food as that which contains a filthy, putrid or decomposed substance and has outlawed such food.

The Food and Drug Administration has outlawed food that is overpriced and represents an unfair value to consumers. is imported from a nation in which the U.S. has imposed tariffs on the products. contains a filthy, putrid or decomposed substance. is overpriced and had an unfair value, is imported from a nation with tariffs, or contains a filthy, putrid or decomposed substance.

regularly engage in extending credit for goods and services. The TILA covers only creditors that regularly engage in extending credit for goods and services.

The Truth in Lending Act covers creditors that regularly engage in extending credit for goods and services. occasionally extend credit for goods and services. extend credit for real estate. lend money to their relatives.

when the seller disclaims properly. The seller may disclaim warranties with a conspicuous writing.

The UCC permits disclaimers of warranties under no circumstances. when the seller disclaims properly. if the buyer was unaware of the warranties. when allowed by common law.

exists to fill in the missing terms of a sale of goods contract when the parties haven't otherwise agreed on terms. The UCC and the UNCISG both exist to fill in the missing terms of a sale of goods contract when the parties haven't otherwise agreed on terms.

The United Nations Convention on Contracts for the International Sale of Goods (UNCISG) is similar to the UCC in that the UNCISG requires a writing for all business contracts. exists to fill in the missing terms of a sale of goods contract when the parties haven't otherwise agreed on terms. applies to transactions in which one party is a nonmerchant. All of the answer choices are correct.

to prevent unfair or deceptive acts in commercial transactions. The FTC was created and charged with the task of protecting consumers from unfair and deceptive acts in commercial transactions.

The purpose of the FTC in relation to consumers is nonexistent, since the FTC does not apply to consumers. to prevent unfair or deceptive acts in commercial transactions. to ensure that the UCC is followed. to promote interstate commerce.

a valid contract because the UCC recognizes electronic records and signatures as sufficient in contracts between merchants. The statute of frauds section of the UCC for sales contracts between merchants provides for electronic records and signatures.

The sales contract for $30,000 worth of motorcycle parts between Cycle Parts Unlimited (CPU) and Terry's Cycles Incorporated (TCI) was in electronic form only, by email and with electronic signatures of both representatives of CPU and TCI. There was no hard copy documentation or original written signatures. Under the UCC rules of contracts, this agreement is not a formal or proper contract because it does not meet the writing requirement. not a valid contract because it does not include a confirmation memorandum. a valid contract because under the UCC, there is no writing requirement. a valid contract because the UCC recognizes electronic records and signatures as sufficient in contracts between merchants.

negligence per se. Violations of safety statutes are sometimes referred to as negligence per se. If a safety statute is violated, a court may find a breach of duty occurred without delving into a reasonably prudent person analysis of negligence.

The state of Montana legislature passed a law requiring that all visitors to factories wear safety glasses. Carl Cutcorner, a supervisor at Shirk Machines, told a visiting group of teachers and students from a local high school that there were not enough safety glasses for all of them, so several went without while on the facility. Penny, a teacher, suffered an eye injury when a metal shaving flew off a machine and hit her in her unprotected eye. If Penny files suit against Shirk Machines and Cutcorner and the court rules that Shirk and Cutcorner breached their duty. The negligence analysis without requiring Penny to delve into the reasonable person analysis or prove negligence, is an application of res ipsa loquitur superseding cause. negligence per se. strict liability.

Fraudulent misrepresentation Fraudulent misrepresentation involves the intentional misrepresentation of a material fact, the reasonable reliance upon this misrepresentation and damages.

Theo wanted to buy a piece of property to build a painting supply factory. He asked Vincent, the owner of the property, if it was zoned for such manufacturing. Vincent told him "Yes, absolutely." This was a lie, it was only zoned for residential use. Theo bought the land at a premium price of $20,000 an acre in reasonable reliance upon Vincent's promise and then was shocked when he was told by the zoning board that he could not build his factory. Because of this, the land was worth a fraction of what Theo paid. Under which of the following theories should Theo sue Vincent? Trade libel Negligence Fraudulent misrepresentation Res ipsa loquitur

entirely acceptable so long as there is evidence the parties intended to enter into a contract and other terms are sufficiently articulated to provide for remedy in the case of a breach. Normally, the offer in a commercial transaction takes the form of a purchase order.

Under the UCC, open terms, or missing provisions in a contract, are absolutely forbidden and void the contract. only allowed if the open term is quantity. entirely acceptable so long as there is evidence the parties intended to enter into a contract and other terms are sufficiently articulated to provide for remedy in the case of a breach. never acceptable because the UCC requires that all commercial transactions for the sales of goods be outlined with specificity and thoroughness.

A brief description of the goods, quantity, and price. The CISG requires that an offer have a brief description of the goods, quantity and price.

Under the rules that apply to United Nations Convention on Contracts for the International Sale of Goods, what is required for a valid offer between businesses from member countries? A detailed description of the goods, a writing signed by both parties, quantity, price and delivery terms. A writing signed by both parties, quantity, price and delivery terms. A brief description of the goods, a writing signed by one party, quantity, price and delivery terms. A brief description of the goods, quantity, and price.

Consumer Product Safety Act. The CPSA was enacted in response to injuries and deaths from consumer products, particularly toys.

What is the name of the legislation enacted in response to injuries and deaths from products being sold to consumers? Federal Product Act. Food, Drug and Cosmetic Act. Product Liability and Safety Reform Act. Consumer Product Safety Act.

the agent generally has the right to recover damages in court. When the principal breaches a duty owed to the agent it typically gives the agent the right to recover damages in court.

When a principal breaches a duty to an agent the agent has no legal rights except to terminate the agency relationship. the agent generally has the right to recover damages in court. it terminates the agency relationship by expiration. it terminates the agency by destruction of the essential subject matter of the relationship.

Federal Trade Commission. The FTC's oversight authority was increased by the CARD Act.

Which agency had its oversight power over credit card issuers increased by the Credit Card Accountability Responsibility and Disclosure Act of 2009? Interstate Commerce Commission. Consumer Protection Agency. Securities and Exchange Commission. Federal Trade Commission.

Puffery. Puffery does not create a warranty. It is a nonfactual statement.

Which is not an example of a warranty? Merchantability. Express. Puffery. Fitness for a particular purpose.

Constantin sold an acre of land to Jalen, the contract was a handshake deal where they agreed orally to transfer the land in consideration of $20,000. Contracts for an interest in land must be in writing.

Which of the following contracts must be in writing? Constantin sold an acre of land to Jalen, the contract was a handshake deal where they agreed orally to transfer the land in consideration of $20,000. Monica agreed to do legal consulting work for Asher in consideration of $501. Carson agreed to work for Huge Corp as a senior manager in consideration of $40,000 a month, it was 12-month contract. All of the contracts must be in writing.

Bubba purchases three pounds of peaches from a roadside stand near Macon for $10. Goods must be tangible and movable to be covered as a UCC sales contract. Produce sold from a roadside stand is tangible and movable. There is no $500 requirement for the UCC to apply, the $500 only involves the writing requirement under the statute of frauds.

Which of the following contracts would be properly subject to the rules of a UCC sales contract? Forrest rents his house in Daytona Beach during Spring Break for $501 a day. Jenny sells the rights to several patents that she developed as a medical researcher for $500,000. Lieutenant Dan signs a contract to work for a federal government agency for three years in consideration of $100,000 per year. Bubba purchases three pounds of peaches from a roadside stand near Macon for $10.

The UCC allows a contract to be formed based on past commercial conduct, correspondence between parties, and industry standards. The UCC allows a contract to be formed based on past commercial conduct, correspondence between parties, and industry standards. It does not require that all terms be mentioned up front, nor does it raise the bar for contract formation.

Which of the following is a correct statement of the underlying principles of the UCC Article 2? The UCC aims to ensure that all business to business transactions for the sale of goods have every term mentioned up front and in detail. The UCC raises the bar for contract formation by allowing only contracts to be considered valid if there is a high level of intent expressed between business parties. The UCC allows a contract to be formed based on past commercial conduct, correspondence between parties, and industry standards. All of the answer choices are correct.

The agent is classified based on the level of direction and control that the principal has over the agent. An agency relationship is classified primarily based on the level of direction and control the principal is given over the agent.

Which of the following is a true of the distinction between employee agents and independent contractors? The agent is classified based on the level of direction and control that the principal has over the agent. Courts look primarily to federal law in the determination of most agency or independent contractor relationships. If a principal provides the tools, this typically indicates an independent contractor relationship. There is are no formal state penalties in the United States for agency misclassification, the only available remedy is a civil lawsuit.

Nalon, the president of Nalco, told Greeves, a customer, that his friend Fannie was his national sales manager. This was not true, but Greeves reasonably believed it and entered into a contract with Fannie. Apparent authority exists when an agent has authority to bind a principal based on the appearance of legitimate authority to a third party. So long as the third party was objectively reasonable in their belief, the apparent agent is authorized to act for the principal.

Which of the following is an example of apparent authority? Garner, the president of XYZ Manufacturing instructs a clerk to purchase copy paper for the main offices of XYZ and does not expressly seek approval from the board of directors. Hanson, a staff accountant for Lincoln and Abraham, CPAs, audits the financial statements of a client. Melody has official legal authority to act as an agent for her brother Drake, who is developmentally disabled. Nalon, the president of Nalco, told Greeves, a customer, that his friend Fannie was his national sales manager. This was not true, but Greeves reasonably believed it and entered into a contract with Fannie.

Girard, the CEO of Freedom Corp, calls Trish, his national sales manager, and tells her to stop working. The principal's calling the agent to tell her to stop working is an express act.

Which of the following is an example of terminating the agency relationship by an express act? Girard, the CEO of Freedom Corp, calls Trish, his national sales manager, and tells her to stop working. Blanding, the president of Rocket Corp which employs Carlton as CFO, dies after a short illness. Greenwave Technologies, which employs Tandy, a manager, declares bankruptcy. The diesel truck that Bruno was hired to repair catches on fire and is destroyed before he can begin work on it.

Deb paid her rent late and her landlord said that she would have to pay the additional $25 late fee that was specified in her rental agreement. Liquidated damages are those that parties agree to ahead of time, by contract, in many cases where it would be difficult to ascertain actual damages.

Which of the following is classified as liquidated damages? Alberto, a magician, sued for what he lost in profits for a show as a result of the limo service he used to take him to the arena left his entire magic kit back on the street in front of his hotel. Deb paid her rent late and her landlord said that she would have to pay the additional $25 late fee that was specified in her rental agreement. Drago agreed to do Trixie's taxes for $500. The day before the taxes were due, Drago told Trixie he was sick of doing taxes and was going on a European vacation. Trixie had to have another tax accountant do her taxes and they charged her $1,000 because it was last minute. All of the hypotheticals are examples of liquidated damages.

Andrew signed a two-year lease of space in a mall to sell exotic animals, the commercial landlord knew of his intentions. After one year, Congress passed a law outlawing the sales of exotic animals in the U.S. Andrew seeks to terminate the lease. Andrew's situation is not a discharge by mutual consent, but rather by frustration of purpose, which discharges a contract by operation of law.

Which of the following is not a discharge by mutual consent? Stanley and Jack entered into an agreement where Stanley was to paint a mural on a wall at Jack's mansion for $50,000. Stanley later went to Jack and asked if he could paint a portrait of Jack and his wife instead. Jack agreed. Tiger was hired by Richville Country Club to give a golf clinic for $50,000. Tiger then decided to play an exhibition in Bahrain at the same time the clinic was scheduled. Tiger asked his friend Phil if he could fill in for him at the clinic and the country club agreed. Janelle was suing Mikkaela for breach of contract for $100,000. They reached an agreement for Mikkaela to pay $20,000 to settle all claims. Andrew signed a two-year lease of space in a mall to sell exotic animals, the commercial landlord knew of his intentions. After one year, Congress passed a law outlawing the sales of exotic animals in the U.S. Andrew seeks to terminate the lease.

Honest Al, a used car dealer, claiming in a TV advertisement that Honest Al's cars were the "best in the city". This claim is an example of puffery, which is not deceptive advertising.

Which of the following is not an example of deceptive advertising? Honest Al, a used car dealer, claiming in a TV advertisement that Honest Al's cars were the "best in the city". Cheapco Groceries raising the retail price of bananas by artificially inflating the original retail price from 79 cents a pound to $1.29 a pound so that when they marked down bananas by 25 percent, they looked more marked down than they actually were. Shady Jen's Bicycles claiming that an item was being sold at a "clearance price" when in reality it was the standard price. Barnacle Bill's Boat Shop incorrectly stated that his main competitor, Candy's Boat Emporium, was selling their boats for 10 percent more than they were actually selling them.

Businesses seeking commercial contracts. Charitable organizations, certain political organizations, and businesses with which the consumer has past commercial contacts are all permitted to contact consumers.

Which of the following is not exempt from the Do Not Call Registry? Charitable organizations. Certain political organizations. Businesses seeking commercial contracts. Businesses with which the consumer has past commercial contacts.

Grady Imports called Jayvone attempting to collect a debt after he had told them not to call anymore. A collector may continue making reasonable contact after being asked not to call.

Which of the following is not impermissible collector contact under the Fair Debt Collection Practice Act? Rent-2-Buy Incorporated called Harlan about a debt he owes while Harlan is at work. Thrif-TAutos called Maliece after she had sent them a written notice of refusal to pay the debt. Grady Imports called Jayvone attempting to collect a debt after he had told them not to call anymore. Big Commercial Leasing sent a debt collection letter directly to Tammy after she had told them she had hired a lawyer to represent her in the matter.

The law requires a formal expression of an agency relationship between parties. The law does not require a formal expression of an agency relationship between parties.

Which of the following is not true of the establishment of a principal-agent relationship? The law requires a formal expression of an agency relationship between parties. Parties to an agency relationship must have an understanding that the principal is in control. Conduct alone can form the basis for an agency relationship. Courts use an objective standard for agency relationships in determining the relationship between parties.

Seizing contaminated products. The FDA has broad enforcement powers including seizing contaminated products, but these do not include closing a business or ordering states to set up independent agencies.

Which of the following is one of the FDA's powers? Ordering states to set up independent agencies that enforce federal powers over drug safety. Closing a business that fails to comply with FDA regulations. Seizing contaminated products. The FDA has the power ot order states to set up independent agencies to enforce drug safety, close a business that is out of compliance, and seize contaminated products.

Mees, the owner of a debt collection agency, who is attempting to collect a debt as an agent of Big Corporation. The restrictions of the FDCPA would apply to a debt collector agent of a credit attempting to collect a debt from a consumer. They do not apply to a creditor's efforts to collect their own debts.

Which of the following is/are subject to the restrictions of the Fair Debt Collection Practices Act (FDCPA)? Amelia, a business creditor attempting to collect her own debt from Bednar, a private party customer who had fallen six-months behind on payments to Amelia. Nichole, a business creditor attempting to collect her own debt from Jared Incorporated, a business debtor that had fallen one-year behind on payments to Nichole. Mees, the owner of a debt collection agency, who is attempting to collect a debt as an agent of Big Corporation. The restrictions of the FDCPA would apply to Amelia the business creditor, Nichole the business creditor and Mees, the debt collection agent.

A price of $65,000 that a tractor cost Bainbridge Farms There is no requirement in the UCC under the statute of frauds requiring price be included in the terms.

Which of the following items would not be a statute of frauds writing requirement under the UCC? A price of $65,000 that a tractor cost Bainbridge Farms A quantity of 5,000 bicycle tires that Shiela's Bikes ordered A signature that Wallace made on a sales agreement The language that Andrea and Benjamin used which would lead a reasonable person to believe they intended to form a contract.

Food ingredients. The FDCA requires that certain food ingredients be approved by the FDA prior to being sold to the general public. The processing and standards relating to food are regulated, but the food itself need not be approved.

Which of the following must be approved by the FDA before it can be sold to the general public? Eggs. Food ingredients. Produce. All products made from animals.

Shardae is an animal breeder and agrees to sell Dusty a registered Persian kitten from a recent litter for $500. Only the kitten is a tangible good subject to a UCC sale. Rentals, memberships in clubs, and services such as painting a portrait are not subject to UCC statute of frauds requirements.

Which of the following requires a written contract under Article 2 of the UCC to be enforceable? Chance rents a Ferrari to drive during his week in Las Vegas for $5,000. Stacey purchases a one-year health club membership for $600. Shardae is an animal breeder and agrees to sell Dusty a registered Persian kitten from a recent litter for $500. Aarondya agrees to paint a portrait for Stormy for $501.

The brakes on Jose's new car where improperly installed at the factory resulting in him hitting a telephone pole and getting whiplash. Strict liability occurs when a seller engages in business of selling products to consumers and sells one that is defective through either a design, manufacturing or inadequate warning defect.

Which of the following scenarios would most likely result in strict liability? Bruno owns a small pet rabbit that escaped from his yard and bit a neighbor. Ivan was a spectator at a college football game and his cell phone was broken when a football flew into the stands and knocked it out of his hands. The brakes on Jose's new car where improperly installed at the factory resulting in him hitting a telephone pole and getting whiplash. Barber owned an ice cream shop and his worker, Bee, spilled several gallons of ice cream on the floor. Dee then took her 15-minute break and a customer fell on the slick floor.

Griffin purchased a used Ford Mustang from Honest Jack's Used Cars. The UCC Article 2 applies to the sale of goods, not services, thus legal services and service plan for a photocopier would not be governed by Article 2 of the UCC. The goods must be tangible and movable, so a purchase of a home is not considered a "good" under the UCC.

Which of the following transactions would be covered by Article 2 of the UCC? Kathleen purchased a two-year repair service plan for her photocopier. Griffin purchased a used Ford Mustang from Honest Jack's Used Cars. Tyler purchased a home on two acres from Quality Home Solutions, a homebuilder. Georgia paid $2,000 for legal services from Yasar, a tax attorney.

The security guard who worked for Countryside Credit Union The security guard is in a servant in a master-servant relationship. While he or she would be an employee, there would be no authority to transact business on Countryside's behalf.

Which of the following would be a servant in a master-servant relationship? The security guard who worked for Countryside Credit Union A lawyer who represented a private client in a lawsuit A friend who agreed to pick up the pizza for the group of friends watching the football game The branch manager at First Trust Bank

Regulation Z. Regulation Z requires that certain facts be disclosed to consumers.

Which part of the Truth in Lending Act requires that certain disclosures be made before a credit transaction is consummated? Regulation Y. Regulation Z. Creditors' Disclosure Regulation. Disclosure of Key Terms Regulation.

Equal Credit Opportunity Act. The Equal Credit Opportunity Act prohibits lenders from denying an applicant credit on the basis of discriminatory factors, such as race and gender.

Which piece of legislation prohibits denying an applicant credit on the basis of discrimination? Equal Credit Opportunity Act. U.S. Constitution. Fair Credit Act. Truth in Lending Act.

going-and-coming rule. The going-and-coming rule, applied by many courts, holds that employers are generally not liable for tortious acts committed by employees while on their way to and from work.

While driving his motorcycle to work in the morning at Hugeco, Fritz, a staff attorney, is not paying attention and swerves onto the sidewalk, runs over Annika's foot, causing her injuries. Annika sues Hugeco under respondeat superior theory. If the court does not permit her lawsuit to proceed because Fritz was on his morning commute, this would be an application of the vicarious liability rule. undisclosed agency doctrine. commute authority rule. going-and-coming rule.

Gerta asks her roommate Dorian to pick up her laundry from the dry cleaners as a favor Gratuitous agents are those who act on behalf of the principal without compensation.

Who of the following is a gratuitous agent? Carlton works for Big Corp as a delivery driver Jamielyn works as a staff accountant for Roosevelt, Truman and Eisenhower, CPAs Gerta asks her roommate Dorian to pick up her laundry from the dry cleaners as a favor Brynn asks Tan, a truck driver for her company, to deliver a load of lumber by the end of the day

warehouse worker. Of the choices, an warehouse worker comes into the least amount of contact with the public and has the least opportunity to create harm.

With regard to negligent hiring, courts would require the least amount of scrutiny regarding a warehouse worker. pest control specialist who makes house calls. daycare worker. real estate agent.