Bul Exam 2
Which of the following is an illusory promise?
"I will go with you to the donkey basketball game if I can't think of anything better to do."
Al, Bill, Chad, and Dan were found jointly and severally liable for 100,000 of property damages caused when a fraternity initiation event got out of hand. Al, Bill, and Chad do not have the money to pay for their share of the damages. The only solvent defendant is Dan. The most that Dan will have to pay the plaintiff is
100,000
Which law governs the lease of the goods?
2A of the Uniform Commercial Code
In most states, children under the age of __________cannot be held liable for negligence.
7
Which of the following is not a legal detriment? A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol. A 22 year old who lives in a state where the drinking age is 21 promises not to drink alcohol. An 85 year old with a valid driver's license promises that she will not drive on superhighways anymore. The victim of libel promises not to sue.
A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol.
Injunctions are often sought as remedies in torts of Nuisance Wrongful appropriation of another's good will False imprisonment A and B
A and B
Which of the following mistakes would result in the rescission of the contract?
A bilateral mistake of material fact
Which of the following is an example of an unliquidated debt?
A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250.
Which of the following injuries would justify plaintiff using res ipsa loquitur?
A medical malpractice claim against a surgeon who left a sponge in a patient
Which of the following forms of slander would not require the plaintiff show special damages?
A statement that an accountant had stolen money from a client A statement that someone had a sexually transmitted disease A statement that a female student was sexually promiscuous
To whom can a thief pass good title to stolen goods?
A thief can pass good title to no one
Which of the following statements about assumption of the risk is true? Traditionally, aA plaintiff who assumed the risk cannot recover damages from the defendant. A plaintiff must be aware of the particular risks associated with the activity. A plaintiff's assumption of the risk must be voluntary. A, B and C
A, B and C
Local hunter went onto Neighbor's land because deer had been seen there. Hunter knew that the land belonged to his neighbor and that it was posted against hunting. If Neighbor sues Hunter, Hunter will be liable for willful trespass to land. Hunter may be liable for punitive damages. Hunter may have to pay neighbor's court costs and attorney's fees A, B and C are all possible legal consequences.
A, B and C are all possible legal consequences
Trial witnesses cannot be sued for defamation because the testimony of witnesses in trial is protected by
Absolute privilege
The purposes of nominal damages is to
Acknowledge that a right has been violated even though no monetary loss resulted
Juries use the "but for" test (i.e. "but for the negligent act of the defendant would the plaintiff have been injured") to decide if the requirement of __________________is met.
Actual cause
Sally Seller deliberately misrepresented to Bill Buyer the condition of a wood chipper she sold him. The misrepresentation materially altered the value of the machine and obscured a safety hazard. What remedies are available to Bill Buyer in these circumstances? Rescission Compensatory damages Punitive damages All of the above
All of the above
The product defect in a strict liability suit can consist in A defective design of the product A lack of adequate instructions for using the product The use of components imported from a foreign country instead of components manufactured in the United States All the above
All of the above
Which of the following is a requirement for a valid contract? Offer and acceptance Consideration Legal capacity of the parties All of the above are elements of a valid contract.
All of the above are elements of a valid contract
In which of the following circumstances would the remedy of rescission be used? One party to the contract is a minor who wishes to disaffirm the contract. The contract was based on fraud The contract was based on a mistake by the parties All of the above are grounds for rescission.
All of the above are grounds for recission
Promissory estoppel is often used in which of the following business situations? When a contractor submits a bid in reliance on the bids of his subcontractors. When a businessperson reasonably relies on representations that he will get a franchise. When employees rely on employer promises about pensions and benefits, All of the above are likely business applications of promissory estoppel.
All of the above are likely business applications of promissory estoppel
Which of the following statements is true about the use of the reasonable person standard in negligence cases? The reasonable person is presumed to have a minimum level of knowledge and common sense. The reasonable person of the standard takes on the physical characteristics of the defendant. The standard of care for the reasonable person would be less stringent in emergency situations.
All of the above are true statements
Which of the following could be argued by the defendant in a product liability case based on strict liability to limit the dollar amount of the damages awarded to the plaintiff? The product was based on state of the art design. The manufacturer exercised all reasonable care in the manufacture of the product. The user was careless or misused the product. All of the above can be pled to reduce damages
All of the above can be pled to reduce damages
Which of the following is not an affirmative defense in a negligence suit? Contributory negligence Pure comparative negligence Modified comparative negligence All of the above may be raised as affirmative defenses depending on the jurisdiction.
All of the above may be raised as affirmative defenses depending on the jurisdiction.
A party has an affirmative duty to disclose information in a contract when There is a fiduciary relationship between the parties The party is aware of material information that the other party cannot be expected to know The party had previously made misleading statements All of the above situations result in an affirmative duty to disclose.
All of the above situations result in an affirmative duty to disclose
Promissory estoppel is best described as
An equitable remedy when one party suffers an un-bargained-for-detriment
For which of the following purchases could a minor disaffirm the contract and get the full purchase price back?
An iPod
The legal status of a contract entered into by a minor is ___________.
Avoidable only by the minor
Bill is in the business of refinishing furniture. When Bill takes a piece of furniture from a customer for refinishing, he has the legal status of a (n) _________.
Bailee
The party who takes possession of property belonging to another with the understanding that the property must be returned to the owner or delivered to a designated third party is an__________________.
Bailee
Bob promised to pave Sue's driveway and Sue promised to pay him $5000 when the work was completed. The contract between Bob and Sue is a __________________contract.
Bilateral
Manny Manufacturer sent an e-mail to its widget supplier with this message: "Please confirm by return e-mail if you will be able to send me an additional ten dozen red widgets for the usual price by the thirtieth of this month." Supplier e-mailed back: "Yes, the additional widgets will be part of our delivery to you on the morning of the thirtieth." This exchange created what type of contract?
Bilateral
Which of the following is the kind of contract in which each party offers as consideration a promise to do something?
Bilateral
Mutuality of consideration is a requirement for a n_________________.
Bilateral contract
Vivian offered to buy Ben's violin for $2,000 and Ben accepted. Three days later Vivian gave Ben $2,000 in cash and Ben gave Vivian possession of the violin. Which of the following sets of terms best describes the contract between Vivian and Ben?
Bilateral, express, valid, and executed
The document issued by a common carrier evidencing receipt of goods for shipment is an_________________.
Bill of lading
Traditionally landowners owe the highest duty of care to
Business invitees
Which of the following is true about goods sold under a sale or return contract?
Buyer's creditors have a claim to the goods while they in Buyer's possession
All property other than land is classified as
Chattel
The legal classification for all property that is not real property is ________________.
Chattel
What is the primary purpose of tort law?
Compensate victims for their losses
Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. The difference between the cost of the carpet in the contract with Carl and the cost Bill had to pay the new vendor can be recovered from Carl as _________ damages.
Compensatory
The damages that are awarded to a victim to make the victim "whole" are ____________ damages.
Compensatory
Lawyers fees that give the lawyer a percentage of the amount awarded to the plaintiff if the plaintiff wins, and nothing if the plaintiff loses, are ________________fees.
Contingent
The negligence doctrine that most favors the defendant is
Contributory negligence
Tom took Ann's 125 Economics text from her locker without her knowledge and sold it back to the college bookstore, keeping the profits. Tom has committed the tort of
Conversion
WireCo manufactures different types of electrical wires used in the building industry, and CopperCo has been one of its major suppliers for over ten years. If a court had to construe a contract between WireCo and CopperCo, it could use this ten year history of business transactions as evidence of
Course of dealing
The earliest application of strict liability in American law was in cases involving which of the following?
Dangerous animals
The doctrine of negligence per se applies in which of the following cases? Defendant surgeon left a sponge in a patient Defendant driver caused a car accident by running a red light Defendant accountants have joint and several liability in tort cases Plaintiff voluntarily assumed the risk of the injury he suffered.
Defendant driver caused a car accident by running a red light
Another term for promissory estoppel is
Detrimental reliance
Once a contract has been ratified, the ratifying party loses the right to ________.
Disaffirm the contract
Dan Dentist was selling the building in which his office was located so that he could relocate to a larger space. Ron, a very aggressive commercial real estate broker, told Dan that unless he gave Ron an exclusive one year contract to list the property, he would spread word in the community that Dan was selling his building to pay a large malpractice claim and that Dan had been liable in so many malpractice suits that no company would insure him. Dan believed that Ron would carry out this threat and signed the contract. Dan can rescind the contract based on
Duress
Ted told Bob, the owner of Bob's Travel Agency that, unless Bob bought 10,000 worth of advertising from him, Ted will circulate false stories in the community that Bob had stolen clients' deposits. No one would be willing to book tours through Bob or make down payments with him. Bob agreed to the contract only because of Ted's threats, which he believed Ted was perfectly capable of carrying out. Bob could rescind this contract with Ted based on
Duress
Money awarded to an accident victim to make up for lost wages would be classified as ______________damages.
Economic
Mary and neighbor Beth had a bitter quarrel. Beth, a nurse, called Mary from the hospital in which she worked and told Mary that her husband and son had died in a car accident and their bodies were in the hospital morgue. In anguish, Mary rushed down to the hospital. Beth had made up the entire story because she wanted to cause Mary pain. Beth has committed the tort of
Emotional distres
Another term for punitive damages is ______ damages
Exemplary
What is another term for punitive damages?
Exemplary
American Products, a Little Rock company, has a contract to send 150 dozen widgets to a customer in Bristol England aboard the container ship Pride of New Orleans. The contract requires American Products to deliver the widgets to the ship's dock and to put them into the hands of the dock master. American Products' liability ends when the dock master takes possession of the widgets. The contract between American Products and the customer would read
FAS/Pride of New Orleans
$1 is never legally adequate consideration in a contract because no one will willingly incur a legal detriment for $1.
False
A common carrier would be liable in negligence for injuries to passengers only if it failed to exercise slight care
False
A contract for a one year gym membership is a sale of goods under Article 2.
False
A party who enters into a contract with a minor has the same right as the minor to disaffirm the contract.
False
A person who uses a logo in an advertisement that is deceptively similar to that of another business commits the tort of false light.
False
A plaintiff may be awarded either compensatory damages or consequential damages, but not both.
False
A seller who fills a motor with heavy grease to keep it from knocking is engaged in mere "sales dressing" and is not liable for fraudulent misrepresentation.
False
A thief can pass good title to a subsequent purchaser, so long as the purchaser bought in good faith, for value, and did not know that the goods were stolen.
False
A unilateral mistake of fact is grounds for rescinding the contract.
False
An accord and satisfaction can be used to settle both liquidated and non-liquidated debts
False
An automobile mechanic who has possession of a car while repairing it is the bailor of the car.
False
An illusory promise is consideration for a unilateral contract, but not for a bilateral contract.
False
An intentional misrepresentation of law by a seller who is not a lawyer will be grounds for rescinding the contract.
False
Another term for promissory estoppel is restitution.
False
Article 2 of the Code covers the sale of land and improvements on the land.
False
Assumption of the risk is an element of negligence that must be proved by the plaintiff.
False
Both contributory negligence and comparative negligence can be asserted as defenses in cases brought in strict liability.
False
Contracts formed by the conduct of the parties, rather than expressed in words, are implied-in-law contracts.
False
Contracts in which both sides have completely performed their duties are executory.
False
Courts do not enforce output contracts as a matter of public policy.
False
Damages that involve only a very small monetary award are called liquidated damages.
False
Exemplary damages are also known as compensatory damages.
False
Food, shelter, cell phone service and medicine are examples of necessaries.
False
If a contract is silent about payment, payment is due when the goods are identified to the contract.
False
If a minor ratifies a contract before the age of majority, he gives up the right to avoid the contract.
False
If goods are sold subject to a bill of lading, title to the goods passes when the goods are in the hands of the buyer.
False
If there is a clerical error in a contract, a court will order the equitable remedy of quantum meruit to correct the error.
False
In a bilateral contract, each party must gain a legal benefit, but only one party need incur a legal detriment.
False
In a majority of states, a minor can disaffirm a contract only by returning all the property originally purchased.
False
In a product liability case, defendant manufacturer can use as a defense the plaintiff's failure to discover the defect in the product.
False
In a sale on approval, the buyer has the risk of loss until the goods are returned to the seller.
False
Legal detriments always entail economic losses.
False
Lost profits cannot be used in calculating damages because profits are always uncertain and speculative.
False
Most courts allow plaintiffs to use strict liability to collect damages for economic loss in product liability suits.
False
Nominal consideration is another term for sham consideration.
False
Quantum meruit refers to the compensation owed a party under an express contract.
False
Quasi-contract is another term for an implied-in-fact contract.
False
Strict liability is also called "absolute liability" because there are no defenses that a defendant can raise.
False
Tender of delivery occurs when the buyer takes physical possession of the goods.
False
The "state of the art" defense is available to any manufacturer in a product liability suit based on strict liability
False
The Uniform Commercial Code governs the sale of all commercial services and goods.
False
The Uniform Commercial Code requires that any modification to a contract for the sale of goods must be supported by new consideration.
False
The doctrine of res ipsa loquitur applies when a person causes damages while violating a law or ordinance.
False
The innocent party in a contract breach must choose between collecting punitive damages or compensatory damages because a court cannot grant both.
False
The purpose of compensatory damages is to punish the breaching party.
False
The reasonable person is a community ideal of reasonable behavior that cannot vary from situation to situation
False
The tort of wrongful appropriation of another's goodwill includes reverse engineering another's product.
False
The victim of fraudulent misrepresentation may rescind the contract, but the victim of merely negligent misrepresentation may not.
False
The victim of innocent misrepresentation may sue to recover contract damages.
False
There are no defenses available to a defendant manufacturer in market share liability cases
False
To be liable for trespass to land a person must know that the property belongs to another.
False
Tom took Al's car without Al's permission and used it for two days before returning it. Tom has committed the tort of conversion.
False
Under Article 2 a consignment is treated like a sale on approval.
False
Under modern contract law, a contract must be executed under seal to be enforceable.
False
When a business detains a suspected shoplifter it must be careful not to commit the tort of
False imprisonment
The owner of a family car could be liable for damages caused by any family member using the car under the ___________________doctrine
Family purpose
A person who occupies any position of trust and confidence in relation to another person or the property of another person is a(n) ______________.
Fiduciary
Sally Seller deliberately misrepresented to Bill Buyer the condition of a wood chipper she sold him. The misrepresentation materially altered the value of the machine and obscured a safety hazard. If Bill wishes to avoid the contract, his best defense is
Fraudulent misrepresentation
Which of the following would result in punitive as well as contract damages?
Fraudulent misrepresentation
Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." To accept this offer, what should the students do?
Go to Nellie's house on Saturday and move the furniture
Mike, a minor, sold his trail bike to Allen, an adult. Assume that Allen sold the bike to Ben Buyer, who paid cash and had no knowledge that Allen had purchased the bike from a minor. What kind of title does Ben have to the bike?
Good title
Willful and wanton misconduct or conscious disregard for the safety of others constitutes ________________negligence.
Gross
If Mike owes a "slight duty of care" for property he is keeping for Doug, Mike would only be liable for damages to the property caused by
Gross negligence
Which of the following statements expresses an illusory promise? "I will drive you to school in the morning if it is raining." "I will buy your boat and trailer for $5,000 if the engine runs okay." "I will buy you a new car if you make Dean's List three semesters in a row." "I will go to your violin recital on Saturday if there is nothing good on television."
I will go to your violin recital on Saturday if there is nothing good on television
Hilary sold Meredith a broach that had belonged to her mother. She told Meredith, in good faith, that it was a genuine cameo from the 1880's. In fact, it was a copy manufactured in the 1980's out of polymers. Meredith can rescind the contract based on
Innocent misrepresentation
Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had belonged to her uncle. Sue told Ann that she thought the mower was about 3 years old. When getting parts for the mower, Ann learned that the mower was in fact 7 years old. Ann can rescind the contract based on
Innocent misrepresentation
Big 60s British Rock Star had a contract to perform at Shady Pines Retirement Home, where many of his fans now lived. Sunnydale Retirement Village, a business rival, convinced Rock Star to breach his contract with Shady Pines and perform for them instead on that day. They offered him more money and promised to pay for any liability he might have to Shady Pines. For what could Shady Pines sue Sunnydale?
Interference with a contractual relationship
Company A has entered into a contract to acquire Company B. Hearing of this, Company C offers to acquire Company B for more money and to indemnify the directors of Company B for any damages resulting from its breaching its contract with Company A. Company A can sue Company C for the tort of
Interference with contractual relations
Len, a local photographer, shot a photo of a family at the beach. Without their knowledge or consent, Len used the photo in all his ads and business cards and featured it prominently on his web page. Len has committed the tort of
Invasion of privacy
Pam and Sam took an overnight flight to Hawaii. Without their knowledge or permission, an agent from Big Ad Agency took a picture of them as they slept and used it in a full-page ad in a national magazine. The agency had superimposed an image of a man in a business suit, working on a laptop, sitting next to them. The caption read "Our Brokers Never Sleep." Pam and Sam could sue Big Ad for
Invasion of the right to privacy
Which of the following statements is true about an accord and satisfaction? It is only used in construction contracts. It is only used in labor contracts It can only be used in liquidated debt contracts. It can be used for unliquidated debts based on contract or tort claims.
It can be used for unliquidated debts based on contract or tort claims.
Which of the following statements about quantum meruit is correct? It is a contract remedy used when the breaching party is insolvent. It is a contract remedy used for breaches involving fraud. It is an equitable remedy for wrongful interference with a contractual relationship. It is an equitable remedy to prevent unjust enrichment when there is no contract.
It is an equitable remedy to prevent unjust enrichment when there is no contract.
The term "scienter" means
Knowing misrepresentation
Article 2A of the Code governs
Leases of goods
What is the difference between libel and slander?
Libel is a written communication, and slander is an oral communication.
Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. What type of damages are these contractually fixed payments?
Liquidated
The negligence committed by a professional, such as a doctor or a lawyer, in the conduct of his profession is ___________________.
Malpractice
Assume that Big Drug Company BDC was one of ten drug manufactures who produced and sold in the Cleveland area a drug that was found to cause cancer in women whose mothers had taken the drug while pregnant. Plaintiff cannot find out if the pills her mother took were actually manufactured by BDC, but she does know that BDC controlled 40 percent of the market for that drug in the Cleveland area when her mother was taking it. If a jury finds that plaintiff suffered 100,000 in damages, she will be able to collect 40,000 from BDC if her state follows the doctrine of ______
Market share liability
For which of the following purchases would a minor be liable to the seller for the fair value of the goods?
Medicine
Bereaved had a dispute with Funeral Home over the costs of services for his father. When he left home the morning of the funeral, he found his father's embalmed body on his front door step. Bereaved has suffered prolonged sleeplessness and depression since then. Bereaved can sue Funeral Home for
Mental distress
Plaintiff's duty to take steps to lessen the damages that result from a defendant's breach of contract is the duty to ______________.
Mitigate
Which of the following is not a good under Article 2 of the Code? An unborn horse A farm tractor A wheat crop that has not yet been planted Natural gas extracted from the ground by the buyer
Natural gas extracted from the ground by the buyer
Susan owns a pizza delivery franchise. She decides to make changes to her pizza making process. Her changes decrease the care and quality control of the care of the ingredients that need to be refrigerated. Several of her customers end up getting food poisoning. What does she have the greatest risk of being sued for?
Negligence
The majority of tort cases in the United States are ________________cases.
Negligence
Assume that Sussex County has a law requiring that all passenger elevators be inspected every six months. Local Hospital failed to have its passenger elevator inspected when required, and a door that malfunctioned injured a hospital visitor. Visitor's attorney will use the doctrine of ________________to show that Local Hospital breached a duty of care.
Negligence per se
Under common law, modifications to existing contracts require ___________to be enforceable.
New consideration
Valerie Vet accidentally left the back door to her pet clinic open and Cuddles, a canine patient, escaped. Cuddles ran around in the road and in an adjacent field until she was found and returned to the clinic half an hour later, completely unharmed. Is Valerie liable to Cuddles' owner for negligence?
No because Cuddles suffered no injury while she was free
Brenda was the lead detective assigned to investigate the murder of a prominent local businessman. A local civic group offered a 10,000 reward to anyone who provided information leading to the arrest and conviction of the murderer. The murderer was found, tried, and convicted largely due to Brenda's efforts. Can Brenda collect the reward?
No, Brenda had a preexisting contractual duty to find and try to convict the murderer
Mary saw two boys swimming across a river she knew had a deep and dangerous channel. She did not warn the boys or try to stop them. If one of the boys were injured, could Mary be sued for negligence?
No, because Mary had no duty of care to the boys
Kelly received a cookbook in the mail that she had not ordered. The packing slip read: " Return this book to the publisher within 14 days or send a check for 35 to the address below." Kelly did not return the book within the 14 days and she has not sent the money as requested. Is Kelly required to pay for the cookbook?
No, federal law allows Kelly to treat the unsolicited book as a gift, and she may do whatever she wants with it.
Sid Salesman sold Bea Buyer a used 2004 Camry for 8,000. The morning after the contract was signed, Sid called Bea to say that he had forgotten that the dealership would not let that Camry go for less than 9,000 so she would have to pay an additional 1,000 if she wanted the car. Is Bea liable for the extra 1,000?
No, this was a unilateral mistake of fact by Sid
Fred, in desperate need of quick money, sold his new Key West boat for less than market value to a good faith purchaser. Does Fred have any basis for rescinding the contract?
No, this was a valid bargained for exchange
Mary, concerned with antibiotics and chemicals in the food supply, started to raise pigs in the backyard of her suburban home. She now has fourteen pigs that produce a significant amount of solid waste, which attracts insects and smells very bad. There are no town or county ordinances that specifically forbid raising pigs. Her neighbors should challenge her right to engage in this activity based on the tort of
Nuisance
Sam's neighbor has opened a shooting range on his property. This is an entirely legal enterprise, but Sam hears guns shots 10 hours a day, cannot hear his television or talk on the phone. What tort, if any, is neighbor committing?
Nuisance
The person to whom an offer to form a contract is made is called the___________.
Offeree
The person who makes an offer to form a contract is the ______________.
Offeror
Under which of the following is a contract voidable?
One of the parties has the option to set aside the contract
Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for 35 per bushel. This is an example of a n ___________contract.
Output
The famous American case that established that a defendant can be liable in negligence only for those damages that are foreseeable is
Palsgraph v Long Island Railroad Co
Sue bought a painting from Neda, who had inherited it and was not in the business of selling art. Sue gave Neda a check and Neda tendered delivery simultaneously. Sue asked if she could pick up the painting later in the day. Through no fault of Neda's, the painting was stolen before Sue returned. The risk of loss in these circumstances
Passed to Sue on Neda's tender of delivery
Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. If the amount fixed for the damages is unreasonably high, the court will consider it a ________________and will not enforce it.
Penalty
In early product liability cases, a consumer who was injured by a defectively manufactured product could only sue the retailer who sold her the product. The retailer would then sue the distributor, who would sue the manufacturer. This doctrine that makes the immediate seller the only defendant is called_______________.
Privity
The tort of invasion of the right to privacy
Protects individuals from the shame and humiliation of having private aspects of their lives exposed to the public
Assume that plaintiff was 60 percent responsible for his own injuries. He would be able to recover the 40 percent of his injuries caused by the negligent defendant if the state which hears the case follows the doctrine of____________________.
Pure comparative fault negligence
After reaching the age of majority, if a party does nothing to disaffirm a contract entered into while a minor, his silence will ______ the contract
Ratify
Which of the following is false about a renunciation? Renunciations are valid in common law but not under the Code A written renunciation does not require consideration. An oral renunciation does require consideration. The right that is waived in a renunciation is a contract right
Renunciations are valid in common law but not under the Code
Big Oil Company has a contract with homeowner to deliver however much heating oil homeowner needs for the fall and winter seasons. This is an example of an __________________contract.
Requirements
Dr. Dan accidentally left a scalpel in Paul Patient during Paul's operation, causing Paul much pain and necessitating additional surgery. Paul's lawyer will most likely use the special doctrine of ____________when he sues Dr. Dan for negligence.
Res ipsa loquitur
The doctrine that creates a rebuttable presumption that a defendant was negligent based on the nature and circumstances of the injury is
Res ipsa loquitur
The doctrine under which employers are liable for torts committed by employees while they are acting within the scope of their employment is___________.
Respondeat superior
Betty Buyer discovers that the pin she bought from Sally Seller is not a ruby as Sally had claimed. She believes that Sally's misrepresentation was innocent, but she wants to get her money back. In order to get her money back, Betty will have to return the pin to Sally. This is the duty of
Restitution
Debbie, who owns an art gallery, lets regular customers take home prints and large works of art so they can "think about them" before buying. A customer who wants the print sends Debbie a check for the selling price. A customer who decides not to buy the work has 15 days to return it to Debbie. This arrangement is classified as an ____________.
Sale on approval
Phil saw an oriental rug in CarpetStore that he thought might look good in his foyer. CarpetStore let Phil take the rug home to try. If he liked the rug, he would send CarpetStore a check for the purchase price. If he didn't like the rug, he would return it to the store. This arrangement is classified under the Code as a (n) _________________.
Sale on approval
Mary runs a clothing store at a ski resort. She is approached by Sally who has several dozen funky hand knit ski caps she would like Mary to buy to sell in her store. Mary agrees on the condition that Sally take back any unsold hats at the end of the season. This agreement is an __________________.
Sale or return
Under the Code, a consignment is treated like a
Sale or return
Seller, a Chicago business, sent a shipment of tractor parts to Buyer, a Detroit business, under a contract that read: "F.O.B.Chicago, Illinois." The parts were not those specified in the contract and Buyer rejected them. A few hours after Buyer notified Seller of the rejection, the parts were destroyed in a fire at Buyer's place of business. Which of the following best states the rights and duties of Buyer and Seller in this situation?
Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss.
Brown & Son's of Easton, Maryland, has a contract to sell 250 computers to Community College in Onley, Virginia. The contract reads: "F.O.B.Easton, Maryland. This is a _______________ contract.
Shipment
On Monday, Agnes bought and paid for a sofa from SofaStore. SofaStore offers free furniture delivery, but the first available delivery date was Thursday. On Wednesday the sofa was destroyed in a fire at SofaStore. Who bears the risk of loss?
SofaStore, because it is a merchant and Agnes had not yet taken possession of the sofa
What is another term for consequential damages?
Special
The Garcia family hired Home Improvements, Inc., a local construction company, to put an addition on their home. What type of law governs the contract between the Garcia's and Home Improvement?
State common law
Famous Felines is a nightclub act featuring trained lions and tigers. After years of successful and highly popular performances, one of the lions suddenly attacked a spectator sitting in the audience. Famous Felines' liability to the injured spectator will be based on___________.
Strict liability
Which of the following theories of liability does not involve wrongdoing by the defendant?
Strict liability
Iris was at fault in a car crash in which Phil was injured. As they waited for the EMT's to arrive, a plane, which was part of a nearby air show, crashed into Phil, significantly increasing his injuries. Iris will not be liable for this second set of injuries because the plane crash was a(n) Proximate Legal Foreseeable Superseding
Superseding
Among the following, which party has a fiduciary responsibility?
The director of a corporation The guardian of a minor child The executor of a will
If goods are being sold under a negotiable document of title, such as a bill of lading, risk of loss passes to the buyer when
The document is tendered to the buyer
Which of the following describes the duty of a landowner to a trespasser under the common law?
The duty not to entrap the trespasser on the premises
The term F.A.S. in a contract indicates that
The goods are being shipped by a merchant vessel
Under the Code, goods are "tendered" when
The seller makes the goods available to the buyer and gives him notice that they are available.
Unless the contract provides otherwise, place of deliver is assumed to be
The seller's place of business
A buyer has the right to inspect good before paying for them unless
The shipment is C.O.D
"Good faith" in the code means honesty in fact in the transaction.
True
A bilateral mistake of fact is grounds for rescinding the contract.
True
A contract entered into by a minor is voidable at the option of the minor.
True
A duty is a legal obligation imposed by law or voluntarily assumed by promise.
True
A firm offer that is in writing and signed by a merchant cannot be revoked even though the other party gave no consideration.
True
A minor is held to the same duty of care as an adult when driving a car.
True
A person is negligent if he or she fails to act as a reasonable and prudent person would act in those circumstances.
True
A seller who knows that his property has a defect not discoverable by the buyer will be liable for fraudulent misrepresentation if he does not disclose the defect.
True
Absent a special relationship, one person has no legal duty to warn or rescue another.
True
An action for mental distress normally requires the plaintiff to exhibit some physical symptoms of emotional suffering
True
Anne bought an antique bracelet from a jeweler. Unfortunately, the bracelet was not part of the jeweler's inventory, but had had been brought in for repairs. Nonetheless, Anne has good title to the goods.
True
Another term for punitive damages is exemplary damages
True
Article 2 of the Code has special rules that apply only to merchants.
True
Courts may use course of performance, course of dealing and usage of trade to override express terms in a contract.
True
Crops are identified to the contract when they are planted.
True
Early cases of strict liability dealt primarily with liability for dangerous animals or abnormally dangerous activities.
True
Giving up the right to do something that one is legally entitled to do can serve as consideration in a contract.
True
Grace has a valid contract with Al to buy a desk once owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract.
True
If a contract is silent about payment, payment is due in the place and at the time the buyer receives the goods
True
In a destination contract, title to the goods passes to the buyer when the goods reach their destination.
True
In a sale on approval, the seller must pay the costs for returning the goods.
True
In an accord and satisfaction, the accord is the new agreement.
True
In bilateral contracts, both parties must be bound to the contract or neither party is bound.
True
In interpreting a particular sales contract, courts rely more on course of performance than on usage of the trade.
True
In joint and several liability one party is potentially liable to pay the entire amount of the judgment.
True
In joint and several liability, a defendant who pays the entire amount of the judgment may sue the other defendants for their share of the obligation.
True
In negligence cases, a superseding cause is one that breaks the direct sequence between the act, which is the basis of the negligence claim, and the plaintiff's injury.
True
In negligence per se cases, the injury that the plaintiff suffers must be the same type of injury that a statute was intended to prevent.
True
Injunctions are available as remedies in nuisance cases.
True
Innocent misrepresentation can be the basis for the injured party to rescind the contract.
True
Intentionally touching another in a way that is harmful or offensive constitutes the tort of battery.
True
Manufacturers may be subject to product liability suits based on negligence if they fail to provide adequate instructions for the use of the product.
True
Most states will not allow recovery for economic losses in product liability cases based on strict liability.
True
One of the elements of fraudulent misrepresentation is that the victim's reliance on the false representation was justifiable.
True
The Uniform Commercial Code governs contracts for the sale of goods.
True
The amount of damages sustained in a breach of contract case is a question of fact to be presented to the jury.
True
The buyer attains the right to insure the goods once the goods are identified to the contract.
True
The document issued by a common carrier evidencing its receipt of goods for shipment is a bill of lading.
True
The greater the risk in a situation, the higher the duty of care.
True
The majority of tort cases filed in United States courts are based on negligence, not on intentional
True
The publication requirement for libel is met if the falsehood is communicated to just one other person.
True
The purpose of reformation is to correct the written contract to reflect the actual intentions of the parties.
True
The victim of negligent misrepresentation may recover contract damages, but not punitive damages.
True
To meet the element of consideration, each party to a contract must gain a legal benefit and incur a legal detriment.
True
Under the Code, parties may agree to modify the terms of an existing contract without providing new consideration.
True
Under the Uniform Commercial Code, provisions in a contract will not be enforced if they are so one-sided and unfair that the provisions are unconscionable.
True
Under the common law, modifications to existing contracts required new consideration from each party.
True
Whether or not a doctor acted negligently is a question of fact for a jury to decide.
True
Larry Lawyer entered into a contract to buy land from a client at well below market value. The client was elderly and trusted Larry as his lawyer and son of his best friend to be fair and give him good advice. Client can rescind the contract based on
Undue influence
Mary left her iPad at a local restaurant and offered a reward for its return. Mary made an offer to form a (n) _________________contract.
Unilateral
Six months after being adjudicated insane, Connie signed a contract for premium cable service. The legal status of this contract is
Void
The legal status of a contract entered into by someone who has been adjudicated insane is __________.
Void
Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is
Voidable by Mike
Sandy bought a large air conditioner from Big Box Home Store for $525. For an additional $100, the store delivered, installed and programmed the unit. Does this sale come under Article 2 of the Code?
Yes, because the sale of goods predominates
Sandy bought a large air conditioner from Big Box Home Store for 525. For an additional 100, the store delivered, installed and programmed the unit. Does this sale come under Article 2 of the Code?
Yes, because the sale of goods predominates
Beth invited friends for a BBQ and touch football game in her backyard. Roger, one of her guests, broke his ankle when his foot slipped into a hole as he ran out for a pass. Several malfunctioning sprinkler heads have been removed from the lawn for repairs, leaving dangerous, but hidden, holes. In common law, would Beth be liable to Roger for his injuries?
Yes, she had a duty to warn him of hidden dangers
British Textile Manufacturer entered into a contract with Cotton Broker for 2,000 bales of cotton to be shipped from India to England on the ship "Peerless, sailing from Bombay." The contract was silent about the shipping date. Buyer expected the cotton to be shipped on the Peerless that sailed from Bombay in October; seller expected to ship the cotton on the Peerless that sailed from Bombay in December. By the time the second ship arrived in England, buyer had found another supplier and refused to accept the cotton. Does manufacturer have any defenses to the breach of contract suit brought by Broker?
Yes, there was a bilateral mistake of material fact
Which of the following statements is true about contracts in which $1 is offered as consideration? $1 is accepted in the business community as consideration for a signed option contract. $1 is accepted as consideration in contracts that transfer title to deeds. $1 can never support a valid contract because it cannot be an inducement for taking on a legal detriment. Both a and b are true statements
both a and b are true statements
A landowner traditionally owes the same duty of care to anyone who comes onto his property
false
A unilateral mistake of value is grounds for rescinding the contract
false
Palsgraf v. Long Island Rail Road is the landmark case that limited damages in negligence cases to those that are
foreseeable
Vidal So-SueME makes hair shampoo and sells it through retailers. One of its plant managers increases the production of the shampoo by cutting back on the standard quality control checks in the industry. Unfortunately, a significant number of their bottles of shampoo has too much "scalp chemical" and is causing people to go bald. Under what legal theory is Vidal most at risk. express liability fraud strict intentional liability battery negligence strict tort product liability
negligence & strict tort product liability