Business Law Exam 2
Extinguishing the fire is the firefighter's preexisting duty
A fire threatens to engulf a commercial building in Metro City. The building's owner promises a cash reward to the Metro Fire Department to extinguish the fire. The firefighters cannot claim the reward because
Bilateral
A misunderstanding concerning a basic assumption on which a contract is made will support the rescission of the deal if the mistake is
Ratification
Accepting and giving legal force to an obligation that previously was not enforceable is
Fraud
Al induces Beth to enter into a contract for the purchase of a Chef's Burger restaurant. Al knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of
A bilateral mistake
Analytics LLC processes misinterpreted data furnished by Botched Services to propose a marketing place for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of
Because Bob has a legal right to restrict the use of his tables
Ann's Sandwich Shop and Bob's Coffee Bar are adjacent businesses. Ann, whose small shop has little room for her customer to sit, offers Bob a discount on purchases if he will allow her customer to sit at the tables on the sidewalk in front of this store. Bob's forbearance from asking Ann's customers not to use his tables it legally sufficient consideration
Still liable on the bid
At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is
Robbery
Bert pushes Connie to the ground, grabbing her phone as she falls. The use of force or fear is required for this act to constitute
May agree to a new contract that includes the new price
Bistro Caterers contracts with Corporate Towers to cater the firm's business meetings. Later, the contract between Bistro and Corporate is completely rescinded. Even later, Bistro offers to make a new deal. Corporate is willing to deal, but for a new place. Bistro and Corporate
None of the choices
Bram, a salesperson for Cruisin' Motors, promises Deb a certain car will give her a "smooth ride." Bram offers a test drive, which Deb declines. She buys the car but soon realizes its suspension is in poor condition. Deb can rescind the contract on the ground of
Click-on agreement
Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is
Larceny
Bud works at a Cheap Stuff Store from which, without authorization, he takes merchandise that he has not paid for home for his own use. This is
All of the choices
Caitlyn is a minor. As a minor, Caitlyn
Executed
Cheri drives into Domestic Auto Service and asks to have a tire replaced on her car. After Domestic replaces the tire, but before Cheri pays for it, any contract between them is
Terminated
Coffee Beans Inc. offers to buy Brewing Company's roasting services for a certain price. Brewing responds that the price is too low and thereby rejects the offer. The offer is
Executory and fully executed contracts
Darien, a minor, wants to disaffirm a contract that he entered into with Echo, a cell service company. The law in Darien's state, as in all states, permits minors to disaffirm
Defraud the public
Dean solicits investors for a nonexistent businesses, eApps, Dean is arrested and charged with "mail fraud". This requires intent to
Unilateral contract
Demi buys a lottery ticket. The ticket has the winning numbers for a prize. She submits the ticket to claim the prize. Demi accepted an offer for
Nothin
Don slips and falls on a patch of ice on Ella's property. Ella offers Done $10,000 if he promises not to pursue any slip-and-fall legal claim against her. Don agrees, but later discovers that it will cost $40,000 in medical expenses for a latent injury. In Don's suit against Ella, Don will most likely recover
Larceny
Ed works for Family Dwellings Inc., an investment firm that buys, renovates, and rents foreclosed houses. Ed steals his employer's digital files to start his own competing business, Good Homes LLC. This is
A felony if it was done for a commercial purpose
Enrique accesses Finance Banks computer system without authority to obtain protected financial records. Under federal law, this is
Undue influence
Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gathering, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is
Enforceable due to unforeseen difficulties
Excavation Inc. begins digging a foundation for Financial Investment Company under a contract for a certain price. After six months, Excavation demands a higher price because of extraordinary difficulties that were totally unforeseen at the time the contract was formed. An agreement to pay the higher price is
Fraudulent misrepresentation
Fess convinces Gwyn to enter into a contract for the purchase of a Falafel Waffle Food Cart by knowingly misrepresenting a number material features about the facility and the business. Most likely, Gwyn can rescind the contract on the basis of
Reasonably definite
For a court to determine if a contract has been breached and to give an appropriate remedy, the offer must include terms that are at least
The contract is not enforceable
Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation
Exactly mirror those of the offer
Glen offers to sell Helen his iPad for $200. Under the mirror image rule, Helen's response will be considered an acceptance if the terms of the acceptance
A partnering agreement
Global Dispatch Corporation and Heavy Hauling Inc. agree in advance to terms that apply to their future e-transactions. This is
A satisfaction
Gwen is indebted to Home Loan Company for $75,000. Gwen agrees to pay, and Home Loans agrees to accept, a lesser amount than the lender originally claimed was owed . The performance of this agreement is
Recover damages or rescind the contract to buy the building
In selling a vacant building, Riley, a real estate broker, tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building. Sam's best course of action is most likely to
Efron understood the legal consequences
Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time
Hank's intoxicated mental state and other factors
Intoxicated, Hank enters a contract for the sale of ten acres of timberland to ira for less that its market value. Later, Hank seeks to cancel the deal. In determining whether Hank can avoid his duties under the contract, a court is most likely to look at
On a quasi contract theory
Jana, a nurse practitioner, renders aid to Kurtz, who is injured and unconscious. Jana can recover the cost of the aid from Kurtz
Is the consideration that creates Kim's obligation to pay Leo
Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump
Withdraw from the deal by giving notice
Lazlo and Mac bet illegally on the outcome of a sporting event. Before the event is held, Lazlo changes his mind about the wager. Lazlo can
At any time during minority but not after coming of age
Lee, a minor, enters into a contract to buy a dirt bike from Motor Bikes and Cycles. Lee can ordinarily disaffirm the contract
Grant Leo immunity from prosecution
Leo is accused of a crime. To obtain information about the crime from Leo, the state can
An invitation to negotiate, not an offer
Luke puts his motorcycle up for sale via a post on an online auction site. This is
A contract that includes the terms
Obie, a user of phone-apps.com's website, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is
Became effective on May 5
On May 1 Ralph offers to cure and smoke Sam's pork and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a letter revealing the offer. Same receives and reads the letter on May 5 and responds to Ralph on May 6. Ralphs revocation of the offer became effective on
An express contract
On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheater on July 4. Greg and Hillside sign a written copy of the agreement. These parties have
All of the choices
Opal is a minor. In at least some state, Opal can enter into a legally binding contract when she
Not rescind the contract
Open Range agrees to sell Pinewood Ranch a remote parcel of land $15,000. Both parties believe that land to be worthless, but beneath it is shale rock containing oil. A court would
An advertisement not an offer
Pastries Inc. sends Rolio its catalogue showcasing a variety of baked goods for certain prices. This is
Phishing
Posing as eBank, Frank e-mails Grace, asking her to update her credit-card information through a link in the e-mail. She clicks on the link and types in the data, which Frank promptly sells to Hector. This is
A promise to pay for items ordered online
Promises that are legally binding include
The adequacy of consideration is not for the court to determine
Raj defends against a breach-of-contract suit by Student Loan Corporation by claiming that their deal - a student loan - was unfair because the consideration for the contract was inadequate. With respect to Raj's defense, the court will most likely rule in favor of the lender on the ground that Raj
Their contract to the extent that is is executory
Rex contracts with Spicy Pizza to deliver its products. After the deal has been partially performing, both parties inform each other that they would like to cancel the contract. Rex and Spicy may rescind
Jurisdiction
Riley commits an act via e-mail against State Bank, a business in Texas, where the act is a cyber crime. Riley resides in Utah where the act is not a crime. Prosecution of Riley in Texas involves questions of
The words in the contract appear clear
Sal enters into a contract with Trucking Company to work as a driver. Under the plain meaning rule, the court cannot consider any evidence not obtained in the document if
Not question the adequacy of the consideration
Sam offers Tiffany $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely
Both parties are released from it
Saul claims that his contract with Teri for piano lessons is voidable. If their contract is avoided
Electronic means
Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. Between Shipping and its customers, the UETA applies if the parties agree to conduct transactions by
The parties intent at the time they entered into the contact
Susan enters into a contract with They to act as his personal sports trainer. If a dispute later arises, the court will interpret the contract according to
Protect minors
The purpose of the right to disaffirm a contract is to
Eighteen
Tracy is fifteen. In most states, for contractual purposes, Tracy would be considered a minor until she is
A cyberterrorist
Via the Internet, Britta enters false code into the computer control system of Chicken Company, a food maker, to alter the levels of ingredients so that consumer of the food become ill. Britta is
The principles of law contract law
When a price changes make performance of a contract costly, compliance with the terms may most certainly be obtained through
Good faith
Without a legal framework of reasonably assured expectations within which to make plans, business persons would most reliably be able to count only on others
The privilege against self-incrimination
Zoey is accused of auto theft. She refuses to give information related to her alleged criminal activities because she suspects it will be used to prosecute her. This is
