Exam One
Chan wants to file a lawsuit. What will be the first stage of litigation for him?
Pleadings
The completion of a contract when both parties no longer have obligations under it because they have performed everything in good faith is known as
discharge.
As a general rule, judges are _________________ and juries are ____________________.
finders of fact, finders of law
As a general rule, judges are _________________ and juries are ____________________.
finders of law, finders of fact
In which of the following situations would a delegation of contractual duties be allowed?
A portrait painter hired to paint a family portrait
Values management for an organization leads to which of the following?
A principles-based approach to ethics
The broadcast news test advises corporate executives to _______.
All of the answer choices are correct
Which of the following statements about alternative dispute resolution (ADR) is true?
All of the answer choices are correct.
Audie is signing a contract. He doesn't mind the idea of alternative dispute resolution (ADR) but wants to preserve his right to later have any dispute that arises under the matter heard in court. Which of the following would provide him with the right to have his case heard in court after ADR?
All of the answer choices would provide Aude the right to later have his case heard in court.
Jeremy is a vice president and loan officer for Small Town Credit Union. He has an opportunity to make a loan to a customer that he suspects will be used to fund the customer's illegal gambling operations. However, Jeremy will make a substantial bonus from making the loan, which he will use to buy his elderly mother a motorized wheelchair. He has defined the ethical dilemma. According to the manager's paradigm of ethical decision making, what would be Jeremy's next logical step after defining the dilemma?
Applying the standards, which includes the legal impact and the ethical principles of the credit union
Garp signed a contract with Tech Corp that had a binding arbitration clause. A dispute arose between Garp and Tech Corp and the matter was heard by an arbitrator. The arbitrator awarded Tech Corp $50,000. Under which of the following circumstances may a court judge set aside the award of the arbitrator in the hearing?
Both an arbitrator's refusal to hear relevant evidence that prejudices a party's rights and bias against one's gender are grounds for setting aside an arbitrator's award.
Delroy joined with hundreds of other people in a legal action where together they sued Implantco for producing a hernia mesh device that was implanted in them during surgery and later caused complications such as swelling and infections. What is the name for this legal action?
Class action
Sharma was a trial attorney representing a defendant in a lawsuit. She was asking a series of questions of a witness for the opposing party in a lawsuit. These questions came after the plaintiff's attorney had asked questions of the witness. What is this form of questioning called?
Cross examination
The narrow view of corporate social responsibility would be represented by which of the following statements?
Dave, Melanie and Devonte are all expressing the narrow view of corporate social responsibility.
While organizations may have standards and values they aspire to follow, a practical approach and strategic legal solution identified by the textbook to make these standards and values effective is to:
Develop a code of ethics
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 intended beneficiary and she has the right to enforce the contract.
Jada was shocked to receive documents indicating she was being sued by Martin. The litigation process has not advanced beyond this stage. She consulted with an attorney and believes that her employer, Tortco, is the proper party for Martin to sue. Which of the following is an available remedy that Jada may presue under these circumstances?
File a cross-claim
Which of the following situations will create diversity jurisdiction?
Forrest, a resident of Georgia, is suing Bubba, a resident of Alabama, for $150,000 for injuries Forrest alleges Bubba caused him when he ran over Forrest's foot with his truck.
Which of the following would create a case with concurrent jurisdiction?
Frankie, a resident of Oregon, is suing Corrina, a police officer from the state of California, for $80,000 for alleged violations of Frankie's federal civil rights that occurred during an arrest in California
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 can have the contract discharged based on impracticability.
Which of the following transactions would be covered by Article 2 of the UCC?
Griffin purchased a used Ford Mustang from Honest Jack's Used Cars.
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.
Which of the following is correct of the UCC?
It applies only to agreements for the sale of goods.
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 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.
Rodriguez, an attorney, is planning to file a class action lawsuit on behalf of 500 people against two corporations: Cheatco, a company that sold an allegedly defective bicycle to the 500 customers, and Failco, a company that allegedly provided defective metal to make the frames of the bicycles. All 500 people suffered similar head injuries as a result of the alleged defects. Rodriguez is alleging the injuries were caused by both Cheatco and Failco. Which of the following is true of this planned class action?
It is a valid class action because it has a group of people with a similar type of injury.
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 not a valid delegation because you may not delegate duties on a contract to a competitor of the nondelegating party.
Which of the following is true of arbitration?
It is similar to a trial in that the arbitrator functions much like a judge.
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.
Trial courts create what type of precedent?
No precedent
Which of the following must a court have to exercise jurisdiction over a matter?
Personal jurisdiction and subject matter jurisdiction
Which of the following represents a utilitarian approach to ethics?
None of the answer choices represent the utilitarian approach to ethics.
What are the two primary roles of the judiciary in the U.S. system?
Pass regulations and perform judicial review
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.
Asmita, a judge, is hearing a matter in which a full day trial is conducted before a jury. The lawyers present no live expert testimony and primarily conduct the proceeding through oral argument. At the end, Asmita will issue a nonbinding opinion. What is the term or name for this proceeding?
Summary jury trial
Which law requires courts to enforce arbitration awards?
The Federal Arbitration Act
Which of the following is true of the U.S. court system?
The U.S. Supreme Court is constitutionally mandated to be nine justices.
Hanlon Hedley has decided to cut costs and pay dance instructors less at her dance studio. Hanlon will also spend less time and money developing choreography and not offer free videos of shows to patrons of the studio. Which of the following groups is most likely to be a primary stakeholder of the Hanlon Hedley Dance Studio?
The dance instructors.
Hanlon Hedley has decided to cut costs and pay dance instructors less at her dance studio. Hanlon will also spend less time and money developing choreography and not offer free videos of shows to patrons of the studio. Which of the following groups is most likely to be a primary stakeholder of the Hanlon Hedley Dance Studio?
The instructors, grandparents and citizens are all direct stakeholders.
Jason lived on a block where people raised money to pave the alley. Once Jason figured out his neighbors had contributed enough to get the paving done without his help, he refused to contribute, and Jason, the lone holdout, got a paved alley for free. His brother, Hoyt, chided him: "That was wrong, Jason! The world would be a much worse place if everyone did what you did." Hoyt is arguing from which of the following perspectives?
The utilitarian approach to ethics
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 must send a written contract on paper within one business day that is signed by authorized Golfco representatives.
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 and it is valid.
Values management is crucial in which of the following management practices?
Total quality management
Rick was speaking at the corporate annual meeting discussing the new drug they are rolling-out. He states that although the medication is only effective for 80% of patients, about 5% of the patients that take it will suffer serious issues that would fall within the companies acceptable goals. Which ethical philosophy is Rick advocating?
Utilitarianism
Thomas Jefferson wrote: "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness." Which of the following ethical views does this most closely represent?
Utilitarianism
Rocket Corporation's slogan was "Treat customers and the world with respect." This principle informs Rocket's strategies and plans and guides employees. According to the text, this is an example of:
Values management
In which of the following scenarios would enforcement of specific performance be appropriate?
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.
LaShonda is a resident of Wisconsin. While visiting Six Flags Over Georgia in Atlanta, she was criminally assaulted by Hans, a Minnesota resident. Ordinarily, venue in this criminal case would originally be in
Wisconsin
An example of a forum selection clause is
a provision in a contract between Levin and Anna which says that if there is a dispute between the parties, it will be in a court within Levin's state.
Dmitri was a judge in the state of Delaware. He presided over a trial in which the plaintiff and defendant had agreed to have him act as both finder of fact and law. This is known as a/an _______.
bench trial
Under the UCC, open terms, or missing provisions in a contract, are
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.
Jasmine, the president of Highroads Motor Homes Corp, has developed two codes for Highroads: a code of ethics and a code of conduct. Each of the following would likely be included in its code of ethics except
expectations of privacy and dignity to be afforded others.
Bennie was appointed by the state to act as a go-between, helping two parties to a lawsuit to resolve their dispute. Bennie's job did not allow him to make a final decision in the matter. Bennie is known as a/an: ______________________.
mediator
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.
A breach of contract that is not material is known as a/an
partial breach.
Butler was shopping at Grocerymart and slipped and broke his tailbone because an employee had dropped a gallon of milk in the aisle. This was on October 25, 2019. The state law that requires Butler to file his lawsuit by October 25, 2022, is known as a/an ________________.
statute of limitations
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?
subsequent
Stephanie owned Goodco, a company in which all after tax profits were donated to a local battered woman's shelter. This is an example of which of the following views of corporate social responsibility?
the broad view
First Trust Bank had a slogan: "Profits should never come before people." This is an example of which of the following perspectives on corporate social responsibility?
the broad view, or management's hand theory
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 both the seller and the carrier for its loss.
Corruptco is a large machine shop that fabricates metals. Corruptco maximizes profits and shareholder value by polluting the local river, where fish are often killed off due to the pollution, rather than installing a pollution abatement device. While this is not specifically in violation of the law, it does put burdens on the local community. Which theory of corporate social responsibility is Corruptco exhibiting?
the narrow view, or invisible hand theory
The country of origin principle states that
the proper venue for a lawsuit would be in Canada if CanQuest, a company based in Toronto, produced their products there.
The Institute of Ecolonomics seeks to create profitable business solutions that also serve environmental and societal concerns. These goals are an expression of what ethicists refer to as the _______.
triple bottom line
Francis was upset at Greg, who just threw a paper bag that had the unwanted remains of his cheeseburger and fries into a ditch. Francis said: "What would the world be like if everyone littered like that, Greg?" This is known as the _______.
utilitarian approach
The invisible hand theory as applied to corporate ethics and social responsibility means that:
when corporate executives make decisions to maximize profits, the invisible hand of the market will end up producing maximum benefits to society.
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
within a reasonable period of time after delivery occurs.
Which of the following courts renders decisions binding only on the parties involved in the dispute?
A U.S. District Court.
Selina has been served with a summons and complaint. Which of the following options does she have?
File a motion to dismiss
Mediation differs from arbitration in which of the following ways?
The mediator's goal is to defuse antagonism and help the parties reach a solution, the arbitrator's goal is to conduct a hearing and render a decision.
The consequences-based approach to ethics is most closely related to _______.
utilitarianism