FIN 331 Final
Assume that the Federal Trade Commission (FTC) is conducting a hearing. In order to obtain certain documents relevant to its investigation, the FTC need NOT:
"probable cause" in support of regular search warrants. *An administrative agency (FTC, in this case) issuing an administrative subpoena need not possess the "probable cause" that the Fourth Amendment requires in support of regular search warrants.
Winston contracts to sell a plot of land called Blackacre to Paris for $500,000. Winston breaches the contract and Paris sues him. Blackacre's reasonable market value at the time of the breach was $525,000. Paris can recover:
$25,000. *The calculation of the loss in value experienced by an injured party differs according to the sort of contract involved and the circumstances of the breach. In contracts involving nonperformance of the sale of real estate, for example, courts normally measure loss in value by the difference between the contract price and the market price of the property.
James agrees to lease Stefan the third floor of his house. James resides on the second floor. The person typing the contract makes a typo and the contract reads the leased portion as the "second floor." Neither James nor Stefan notices this error when they read and sign the contract. What will the courts likely do in the case of a dispute? Reform the contract
*Sometimes, mutual mistake takes the form of erroneous expression of an agreement, frequently caused by a clerical error in drafting or typing a contract, deed, or other document. In such cases, the remedy is reformation of the writing rather than avoidance of the contract. Reformation means modification of the written instrument to express the agreement that the parties made but failed to express correctly.
In the O'Connor v. Oakhurst Dairy case in the text, what was the largest deciding factor in determining whether the defendant dairy might be liable to the delivery drivers for millions of dollars in unpaid overtime wages?
A "missing" comma *The O'Connor case illustrates just how much can ride on a "missing" comma, namely millions of dollars in unpaid overtime wages.
Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this?
A bilateral contract *In a bilateral contract, both parties exchange promises and the contract is formed as soon as the promises are exchanged.
How does the administrative adjudication process normally begin?
A complaint is filed by an administrative agency. *The administrative adjudication process normally begins with a complaint filed by the agency.
What is an injunction?
A court's order requiring a person to stop or refrain from doing something *An injunction is a court order requiring a person to do something (mandatory injunction) or ordering a person to refrain from doing something (negative injunction).
Which of the following occurs when the promisor indicates before the time for his performance that he is unwilling or unable to carry out the contract?
Anticipatory repudiation *One type of breach of contract occurs when the promisor indicates before the time for his performance that he is unwilling or unable to carry out the contract. This is called anticipatory repudiation or anticipatory breach. Anticipatory breach generally constitutes a material breach of contract that discharges the promisee from all further obligation under the contract.
Alana, who manages a flower shop, sells Jose a vacuum cleaner. Jose is employed as an architect, and Alana has never sold a vacuum cleaner before. Which of the following statements is true?
Article 2 of the UCC applies because a vacuum cleaner is a movable thing. *Article 2 expressly applies only to contracts for the sale of goods. The essence of the definition of goods in the UCC [1-105] is that goods are tangible, movable, personal property. So, contracts for the sale of such items as motor vehicles, books, appliances, and clothing are covered by Article 2.
All agency rules are compiled and published in the: Selected Answer:
Code of Federal Regulations.
Which of the following is also called "judge-made law"?
Common law *The common law (also called judge-made law or case law) is law made and applied by judges as they decide cases not governed by statutes or other types of law.
Which of the following terms refers to legal value that is bargained for and given in exchange for an act or promise?
Consideration *Consideration is defined as legal value that is bargained for and given in exchange for an act or promise
Which statement about the statute of frauds is true?
Contracts for the sale of goods for $500 or more must be in writing in order to be enforced. *According to section 2-201 of the UCC, contracts for the sale of goods for $500 or more must be in writing in order to be enforced.
Which of the following is false about the power of courts?
Courts can make or interpret the law in the absence of a case. *A fundamental limit on the power of courts is that they cannot make or interpret laws until parties present them with a case to decide.
Which of the following ethical theories focuses on decisions or action alone, irrespective of the result it produces?
Deontological theory *Theories that focus on decisions or actions alone are deontological ethical theories; they do not look at the consequences of an action or decision.
The case of Texas v. Pennsylvania is an example of when the Supreme Court has which type of jurisdiction?
Exclusive, original jurisdiction. *The U.S. Supreme Court has original, but not exclusive, jurisdiction over cases involving foreign ambassadors, ministers, and like parties; controversies between the United States and a state; and cases in which a state proceeds against citizens of another state or against aliens. Article III of the Constitution grants the Supreme Court jurisdiction of controversies between individual States and citizens from another state or against aliens. The Supreme Court has original and exclusive jurisdiction over all controversies between two or more states.
Which of the following is not an example of a court of limited jurisdiction?
Federal District court *Minor criminal cases and civil disputes involving small amounts of money or specialized matters frequently are decided in courts of limited jurisdiction. Examples include traffic courts, probate courts, and small claims courts.
________ jurisdiction exists when the case arises under the Constitution, laws, or treaties of the United States.
Federal question *Federal question jurisdiction exists when the case arises under the Constitution, laws, or treaties of the United States. The "arises under" requirement normally is met when a right created by federal law is a basic part of the plaintiff's case.
Mark is a merchant in Virginia and Carla is a merchant in California. Mark wants to do business with Carla but he is concerned that if a lawsuit should result from their transaction, he might have to travel to California and hire a California lawyer to litigate the dispute. What type of clause should Mark try to include in his contract with Carla that will probably assure him that if litigation ensues, it will take place in Virginia?
Forum selection clause *A forum selection clause may address both jurisdiction and venue issues. Hence, it would be a useful tool for Bob in case any type of litigation takes place in the future.
Agencies that invoke a power to search and seize evidence as part of an effort to prove a regulatory violation are subject to what constitutional prohibitions?
Fourth Amendment Protection Against Unreasonable Searches *When administrative agencies seek to gather evidence to prove a regulatory violation the Fourth Amendment's prohibition against unreasonable searches and seizures comes into play.
Which of the following statements about standardized form contracts is FALSE?
Frequently, the terms of standardized contracts are negotiable. *Standardized form contracts are contracts that are preprinted by one party and presented to the other party for signing. In most situations, the party who drafts and presents the standardized contract is the party who has the most bargaining power and/or sophistication in the transaction. Frequently, the terms of standardized contracts are nonnegotiable.
Which of the following is a characteristic of profit maximization?
It is closely related to utilitarianism because it focuses on results. *Profit maximization is considered a teleological ethical theory because it focuses on the results of business decisions taken. It is closely related to utilitarianism, but it differs fundamentally in how ethical decisions are made.
Which of the following is true regarding promissory estoppel?
It requires reasonable reliance on the promisor's promise. *The elements of promissory estoppel are a promise that the promisor should foresee is likely to induce reliance, reliance on the promise by the promisee, and injustice as a result of that reliance.
Kyle promised to mow Chantel's lawn for $20 and clean her gutters for $50, but only mowed the lawn. Which of the following is true of Kyle?
Kyle can recover the contract price for the activity he performed. *When a promisor performs one part of the contract but materially breaches another part, he can recover at the contract price for the part that he did perform.
On May 1, Ida makes a written offer to Miranda for the sale of Ida's car. On May 2, Ida mails Miranda a letter revoking the offer. On May 3, Ida telephones Miranda to tell him that he is revoking the offer. On May 4, Miranda learns that Ida sold the car to Chris. On May 5, Ida's letter finally gets to Miranda. Ida's offer terminated on:
May 3. *Revocations are effective only when they are actually received by the offeree.
Victor, a resident of Virginia, creates a website called "LOL" which acts as an electronic billboard for posting funny stories. Carl, a resident of California, posts a story on the website about Bob, which Bob takes great offense over. Bob, also a California resident, files a lawsuit against Victor in a federal district court in California, claiming that Victor had defamed him on his website. Based on these facts, does Victor have sufficient "minimum contacts" to give the California federal district court in personam jurisdiction over him?
No, Carl's posting alone is not enough to create sufficient "minimum contacts." *When the parties have a contractual relationship, "minimum contacts" may be shown by the parties' negotiations preceding their agreement, the course of dealing between the parties, the terms of the agreement, and foreseeable future consequences arising out of the agreement. Federal circuit courts have rejected that merely posting defamatory or invasive material to the World Wide Web is enough to create "minimum contacts" for in personam jurisdiction.
Whose signature(s) are needed in order to satisfy the statute of frauds?
Only the signature of the party against whom enforcement is being sought. *The memorandum must be signed by the party to be charged, or against whom the contract is being enforced, or his authorized agent. However, it is advisable for both parties to sign the agreement.
In which of the following circumstances, under the doctrine of stare decisis, does the common law rule stated in an earlier judgment not apply to a present case?
Only when the court distinguishes the earlier decision. *When a precedent has been properly distinguished, the common law rule it stated does not control the present case. The court deciding the present case may then fashion a new common-law rule to govern the case.
What are depositions?
Oral examinations of a party or a likely witness by the opposing party's attorney. *In a deposition, one party's attorney conducts an oral examination of the other party or of a likely witness (usually one identified with the other party).
Mr. Blue gave Mr. Green $1,000 to help his family out. Later, Mr. Blue entered into a sales contract with Mr. Green and wanted the consideration to be, in part, the $1,000. Which of the following describes the $1,000?
Past consideration *Past consideration is an act or other benefit given in the past that was not given in exchange for the promise in question. Because the past act was not given in exchange for the present promise, it cannot be consideration.
________ rules specify how the agency will conduct itself.
Procedural
________ is an equitable doctrine that protects those who foreseeably and reasonably rely on the promises of others by enforcing such promises when enforcement is necessary to avoid injustice, even though one or more of the elements normally required for an enforceable agreement is absent.
Promissory estoppel Promissory estoppel is an equitable doctrine that protects those who foreseeably and reasonably rely on the promises of others by enforcing such promises when enforcement is necessary to avoid injustice, even though one or more of the elements normally required for an enforceable agreement is absent.
Which ethical theory probably justifies the protection of a neo-Nazi's right to hateful speech, even though the cost of such speech includes damage to relations between ethnic groups, which may far outweigh any benefits the society receives from the speech?
Rights theory *Rights theory does not concern itself with the costs or benefits of requiring respect for another's right; it looks at an individual's rights as absolute.
The equitable remedy of specific performance is most likely to be awarded by a court in which of the following circumstances?
Sale of an Andy Warhol original where the seller refuses to deliver *The remedy of specific performance is given in cases where the goods involved are unique or goods for which no substitute can be found; such as, heirlooms, works of art etc.
The purpose of the ________ is to increase penalties for corporate wrongdoers, establish rules designed to deter and prevent future wrongdoing, and encourage and enable corporate executives to be ethical and socially responsible.
Sarbanes-Oxley Act *Congress passed the Sarbanes-Oxley Act, which increased penalties for corporate wrongdoers and established rules designed to deter and prevent future wrongdoing. The purpose of the statute is to encourage and enable corporate executives to be ethical and socially responsible.
On May 2, 2002, Alex, an accountant, entered into an oral contract with Darnell to provide certain accounting services to Darnell. The contract was fully performed by both parties in 2002. On April 25, 2019, Darnell commenced a breach of contract action against Alex claiming that Alex improperly performed the accounting services. Alex's best defense to the action would likely be:
Statute of limitations *According to the statute of limitations, a person who has breached a contractual duty is discharged from liability for breach if no lawsuit is brought before the statutory period elapses. In this case there has been unreasonable delay on the part of Dell in bringing a lawsuit against Mix.
Which of the following is most true regarding noncompetition clauses in contracts?
Such clauses will be enforced if they are reasonable and have a legitimate business purpose. *For being enforceable, noncompetition clauses must serve a legitimate business purpose.
The Government in the Sunshine Act had what as its purpose?
That meetings of government agencies are open to public observation *The Government in the Sunshine Act of 1976 was designed to ensure that an agency is open to public observation.
While preparing his tax returns for the 2020 year, Harry discovers that his 2018 tax returns has errors. Those errors led him to pay more income tax that year than he would have otherwise paid. Harry wants to inspect his 2018 tax files that IRS has and request them to be corrected. Under which Act can he place this request?
The Privacy Act of 1974 *The Privacy Act of 1974 allows individuals to inspect files that agencies maintain on them and to request that erroneous or incomplete records be corrected. As such, Harry can place his request under the Privacy Act of 1974.
Which of the following takes priority over a federal statute?
The U.S. Constitution *The U.S. Constitution takes priority over any kind of inconsistent laws.
Julia makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree, Hyacinth, must respond if she accepts. If Hyacinth accepts the offer using a normal letter, which of the following is true?
The acceptance is effective upon dispatch. *Unless, there is a stipulated means of acceptance in an offer, any acceptance is effective when dispatched, as per the mailbox rule.
Which of the following is true of a sales contract under the UCC?
The court needs to determine if the parties intended to make a contract. *A sales contract is created if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.
Mr. Green has a month-to-month lease for an apartment owned by Mr. Blue. The lease between Mr. Green and Mr. Blue is oral. Most likely how will the court handle the lease?
The court will recognize and enforce the lease. *Leases less than a year generally are not covered by the statute of frauds and are not required to be in writing.
Which of the following statements about the objective theory of contracts is FALSE?
The objective standard is often unpredictable and creates inconsistent results. *The desire to meet the needs of the marketplace by affording predictable and consistent results in contracts cases dictated a shift toward an objective theory of contracts. Following the objective theory of contracts, then, an offeror's intent will be judged by an objective standard—that is, what his words, acts, and the circumstances signify about his intent. If a reasonable person familiar with all the circumstances would be justified in believing that the offeror intended to contract, a court would find that the intent requirement of an offer was satisfied even if the offeror himself says that he did not intend to contract.
Kory sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kory and stated that she (Maggie) wanted to accept Kory's offer. Which of the following is true?
There is no contract between Kory and Maggie because Kyle did not communicate the offer to Maggie. *An offer needs to be communicated to the offeree. In this case, since the offer was not made to Maggie, there is no contract.
Which of the following is a characteristic of administrative agencies?
They are normally created by statute. *Administrative agencies normally are created by a statute that specifies the areas in which the agency can make law and the scope of its power in each area.
Which of the following statements is FALSE regarding appellate courts?
They gather new evidence to reach the correct conclusion. *State appeals (or appellate) courts generally decide only legal questions. Instead of receiving new evidence or otherwise retrying the case, appellate courts review the record of the trial court proceedings. Although appellate courts correct legal errors made by the trial judge, they usually accept the trial court's findings of fact.
Normally, an illegal contract is:
Unenforceable. *Under normal circumstances, an illegal contract cannot be enforced.
Which of the following ethical theories judges our actions as good or bad depending on their consequences and is expressed as "the ends justify the means"?
Utilitarianism *A teleological theory, utilitarianism judges our actions as good or bad depending on their consequences. This is sometimes expressed as "the ends justify the means."
________ requires a decision maker to ensure the maximum good for the maximum number.
Utilitarianism *Utilitarianism tries to achieve the greatest good possible for society as a whole.
"I don't know why we do it, but we've always done it that way, and it's always worked, so we'll continue to do it that way." This statement is an example of the:
appeals to tradition fallacy. *Appeals to tradition infer that because something has been done a certain way in the past, it should be done the same way in the future. You probably have heard people say, "I don't know why we do it, but we've always done it that way, and it's always worked, so we'll continue to do it that way." Although there is some validity to continuing to do what has stood the test of time, the reasons a business strategy has succeeded in the past may be independent of the strategy itself.
Noncompete clauses in contracts:
are enforced if found to be reasonable. *Courts insist that in order to be enforceable, noncompetition clauses must be reasonable and serve legitimate business purpose.
"Studies show that humans need to drink 10 glasses of water a day" is an example of a(n):
argument from authority. *Arguments from authority rely on the quality of an expert or person in a position of authority, not the quality of the expert's or authority's argument.
An administrative agency is most likely to use a subpoena to compel information from:
businesses subject to regulation. *Individuals and business organizations subject to regulation may be strongly disinclined to provide information to an administrative agency. Agencies, therefore, need the means to compel unwilling possessors of information to comply with legitimate demands for information. Subpoenas are one of the ways of doing it.
Someone who attempts to recover for breach of contract:
can recover only for those losses that he can prove with reasonable certainty. *In a claim of breach of contract, a person may recover damages only for those losses that he/she can prove with reasonable certainty.
Today, most appealable decisions from the lower courts fall within the Supreme Court's ________ jurisdiction, under which the Court has discretion whether to hear the appeal.
certiorari *The United States Supreme Court, the highest court in the land, is mainly an appellate court. Therefore, it considers only questions of law when it decides appeals from the federal courts of appeals and the highest state courts. Today, most appealable decisions from these courts fall within the Supreme Court's certiorari jurisdiction, under which the Court has discretion whether to hear the appeal.
Ciara asks Sketch, her stock broker, if she can trust his advice to purchase the stocks for Acme Co. Sketch replies, "Of course you can." Ciara asks, "Why should I trust you?" Sketch says, "Because I am a trustworthy person." Sketch is engaging in:
circular reasoning. *Sketch is engaging in circular reasoning because he merely restates what Ciara is saying, although in different words. He does not actually answer her question properly.
The set of legal rules establishing how a civil lawsuit proceedings from beginning to end is called ________.
civil procedure *Civil procedure is the set of legal rules establishing how a civil lawsuit proceeds from beginning to end.
Ann wants to download Adobe Acrobat software from the Internet. Prior to downloading, a standardized online contract appears on the screen that requires her to click on an icon indicating agreement, before she can proceed in the program. Such contracts are called:
clickwrap contracts. *The terms of standardized contracts online are usually presented in a manner that requires the viewer to click on an icon indicating agreement before he can proceed in the program. Standardized online contracts presented in this way are called clickwrap contracts.
A(n) ________ must state the remedy requested in the case.
complaint *The complaint states the plaintiff's claim in separate, numbered paragraphs. The complaint must also state the remedy requested.
A(n) ________ is a future, uncertain event that creates or extinguishes a duty of performance.
condition *A condition is a future, uncertain event that creates or extinguishes a duty of performance.
Edna is a leading brain surgeon in the United States. She enters into a contract to perform a complicated brain surgery on Ben. However, since Edna is very busy, she wants to assign this contract to a less experienced surgeon, Charles. This would be Charles's first operation of this type. Ben can object to this assignment and prevent it because the contract between Ben and Edna is a(n):
contract involving personal skill. *The UCC and Section 318(2) of the Restatement (Second) of Contracts take the position that a party to a contract may delegate his/her duty to perform to another person unless the parties have agreed to the contrary or unless the other party has a substantial interest in having the original obligor perform the acts required by the contract. The "substantial interest" is determined by is the degree to which performance is dependent on the individual traits, skill, or judgment of the person who owes the duty to perform. In this case, Edna must perform the duty; she cannot delegate it to anyone else.
A ________ is a contract, usually on a standardized form, offered by a party who is in a superior bargaining position on a "take-it-or-leave-it" basis.
contract of adhesion *A contract of adhesion is a contract, usually on a standardized form, offered by a party who is in a superior bargaining position on a "take-it-or-leave-it" basis.
Ordinances are created by:
counties and municipalities. *State governments have subordinate units, such as counties and municipalities that are given limited powers to exercise various government functions. The enactments of counties and municipalities are called ordinances.
Administrative agencies obtain the ability to make law through a(n) ________ of power from the legislature
delegation *Administrative agencies obtain the ability to make law through a delegation (or grant) of power from the legislature.
The right of ________ is available for information that is not subject to a recognized legal privilege and is relevant to the case or likely to lead to other information that may be relevant.
discovery *To help litigants obtain the facts and to narrow and clarify the issues for trial, the state and federal court systems permit each party to a civil case to exercise discovery rights. Discovery is available for information that is not subject to a recognized legal privilege and is relevant to the case or likely to lead to other information that may be relevant.
With regard to an agreement for the sale of real estate, the statute of frauds:
does not require that all parties sign the agreement. *The memorandum must be signed by the party to be charged or his authorized agent. (The party to be charged is the person using the statute of frauds as a defense—generally the defendant unless the statute of frauds is asserted as a defense to a counterclaim.) This means that it is not necessary for purposes of meeting the statute of frauds for both parties' signatures to appear on the document.
Patent cases being litigated in the federal system are an example of:
exclusive jurisdiction. *The federal district courts have exclusive jurisdiction over some matters, such as patents. Patent cases must be litigated in the federal system.
A contract is ________ when all of the parties have fully performed their contractual duties.
executed *A contract is executed when all of the parties have fully performed their contractual duties.
Although the president or a state's governor does not have typical law-making powers, these officials have limited power to issue laws called:
executive orders. *In theory, the president or a state's governor is a chief executive who enforces the laws but has no law-making powers. However, these officials sometimes have limited power to issue laws called executive orders. This power normally results from a legislative delegation.
In order for a party to successfully bring a lawsuit in federal court challenging a federal administrative agency decision, that party must first:
exhaust all necessary administrative remedies. *Courts normally insist that aggrieved parties exhaust necessary administrative remedies before they will grant judicial review. As such, a party must first exhaust all necessary administrative remedies in order to successfully bring a lawsuit in federal court challenging a federal administrative agency decision.
A ________ is when a person compares two situations that are not sufficiently similar to be a valid comparison.
false analogy *Arguers often use analogies to make a point vividly, and therefore analogies have strong appeal. Nonetheless, while some analogies are apt, we should make sure that the two situations are sufficiently similar to make the analogy valid. Otherwise, they are false analogies.
According to the principle of ________, the U.S. Constitution, federal laws enacted pursuant to it, and treaties are "the supreme Law of the Land."
federal supremacy *According to the principle of federal supremacy, the U.S. Constitution, federal laws enacted pursuant to it, and treaties are "the supreme Law of the Land." This means that federal law defeats conflicting state law.
To satisfy the consideration requirement to form a contract, the consideration exchanged by the parties must:
have legal value. *Consideration is legal value, bargained for and given in exchange for an act or promise.
Sigmund enters into a contract with Carl. The terms are that Sigmund will purchase all the gasoline that he wants to purchase in 2021 at a price of $2.50 per gallon, and Carl agrees to sell on those terms. This is an example of a(n):
illusory contract. *For a promise to serve as consideration in a bilateral contract, the promisee must have promised to do something at the promisor's request. It is obvious that if the promisee's promise is illusory because it really does not bind the promisee to do anything, such a promise could not serve as consideration. Such agreements are often said to lack the mutuality of obligation required for an agreement to be enforceable.
When a promise does not bind the promisee to do or refrain from doing anything, the promise is:
illusory. *A promisee's promise is illusory if it really does not bind the promisee to do or refrain from doing anything, such a promise could not serve as consideration. Such agreements are often said to lack the mutuality of obligation required for an agreement to be enforceable.
Jurisdiction based on the presence of property within the state is called ________ jurisdiction.
in rem *In rem jurisdiction is based on the presence of property within the state.
The Internal Revenue Service (IRS) has recently issued a subpoena duces tecum to Values Corp. The IRS wants access to the last five year's tax returns and related documents of Values to ensure that Values has met all its tax liabilities. Values claims that all its tax papers are in order and IRS's motive is to harass political opponents of the incumbent administration (Values was one of the top 100 donors during the last election year). The strongest argument that Values may make concerning the subpoena is that the subpoena:
is invalid because the IRS investigation is not being conducted for a legitimate purpose. *Agency investigations must be authorized by law and conducted for a legitimate purpose. This requirement prohibits bad faith investigations pursued for improper motives. IRS is undertaking the investigation on Values tax-related records solely to harass Values (who is a political opponent of the incumbent administration). As such, the strongest argument that Values may make concerning the subpoena is that the subpoena is invalid because the IRS investigation is not being conducted for a legitimate purpose.
Derek owes Casey a debt, the amount of which is subject to a good faith dispute. The parties agree to settle the debt, with Derek promising to pay Casey $15,000 and Casey promising to release Derek on a $25,000 debt. The settlement agreement:
is supported by consideration. *A good-faith dispute about either the existence or the amount of a debt makes the debt an unliquidated debt. The settlement of an unliquidated debt is called an accord and satisfaction and satisfies the consideration requirement. When an accord and satisfaction has occurred, the creditor cannot maintain an action to recover the remainder of the debt that he alleges is due.
The case in the text Hertz Corp. v. Friend, is an example of when a defendant can have a case removed from state court to federal court based on what kind of jurisdiction?
jurisdiction *The Hertz decision provides an example of a defendant's ability to have a case removed from state court to federal court in an instance of concurrent jurisdiction. The Court reached this conclusion because Hertz's center of direction, control, and coordination, its "nerve center," and its corporate headquarters are one and the same, and they are located in New Jersey, not in California.
A method of alternative dispute resolution in which a neutral third party helps the parties reach a cooperative resolution of their dispute by facilitating communication between them, clarifying their areas of agreement and disagreement, helping see each other's viewpoints, and suggesting settlement options, but who cannot make decisions that bind the parties, is called:
mediation. *In mediation, a neutral third party called a mediator helps the parties reach a cooperative resolution of their dispute by facilitating communication between them, clarifying their areas of agreement and disagreement. Mediators, unlike arbitrators, cannot make decisions that bind the parties.
Performance under a contract must be within a reasonable time when:
no time for performance is expressly stated in the contract. *When no time for performance is stated or implied, performance must be completed within a "reasonable time," as judged by the circumstances of each case.
Todd is a licensed real estate broker in Ohio. One of Todd's largest clients, Sun Corp., contracted in writing with Todd to find a purchaser for its plant in New York and agreed to pay him a 6% commission if he was successful. Todd located a buyer who purchased the plant. Unknown to Todd, New York has a real estate broker's licensing statute which is regulatory in nature, intended to protect the public against unqualified persons. Todd violated the licensing statute by failing to obtain a New York license. If Sun refuses to pay Todd any commission and Todd brings an action against Sun, he will be entitled to recover:
nothing. *If the statute is regulatory—that is, the purpose of the legislation is to protect the public against dishonest or incompetent practitioners—an agreement by an unlicensed person is generally held to be unenforceable.
Denise contracts with Long Life Insurance Co., agreeing to pay premiums in return for which the company agrees to pay $500,000 to Denise's husband Barn when Denise dies. Barn is a(n):
ntended beneficiary. *If the promisee's primary purpose in contracting is to make a gift of the agreed-on performance to a third party, that third party is classified as a donee beneficiary. Here, Barn is the donee beneficiary because the contract is made with the objective to give him the insurance money.
An ambiguous offer may be accepted in any manner that is ________ in light of the circumstances.
reasonable *An offer that is unclear about the form of acceptance that is necessary to create a contract is called an ambiguous offer. In such a case, the offer may be accepted in any manner that is reasonable in light of the circumstance.
The legal remedy of ________ requires the defendant to pay the value of the benefits that the plaintiff has conferred on him.
restitution *An injured party can take recourse to the remedy of restitution that requires the defendant to pay the value of the benefits that the plaintiff has conferred on him.
Once an assignment occurs, the assignee acquires:
same rights as the assignor had prior to assignment. *An assignee acquires the same rights as the assignor had under the contract.
The statute of frauds requires that:
some contracts be evidenced by a writing. *Some contracts under the statute of frauds need to be written rather than oral.
The ________ of corporate social responsibility holds that rather than merely striving to maximize profits for its shareholders, a corporation should balance the interests of shareholders against the interests of employees, suppliers, customers, and the community.
stakeholder theory *The stakeholder theory of corporate social responsibility holds that rather than merely striving to maximize profits for its shareholders, a corporation should balance the interests of shareholders against the interests of other corporate stakeholders, such as employees, suppliers, customers, and the community.
Wile, CEO of Acme Inc., had supported the development and distribution of the Super Widget, a product that is expensive to make. The Super Widget failed to meet its expected sales. It decides to invest more resources to produce and aggressively market the Super Widget, rationalizing that if he did not invest more in the product, what he has invested would be lost. Wile is engaging in:
sunk cost fallacy. *Sunk cost fallacy is an attempt to recover invested time, money, and other resources by spending more resources. Bob is wasting resources in an attempt to do something that he failed in the first attempt.
According to the Uniform Commercial Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contract will consist of ________ and the appropriate gap-filling presumptions of the Code.
terms on which the parties' writings agree *Under the Code, the offeror who accepts performance in the face of an express rejection or expressly conditional acceptance is not thereby bound to all of the terms contained in the offeree's response. Instead, it provides that the terms of a contract created by such performance are those on which the parties' writings agree, supplemented by appropriate gap-filling provisions from the Code.
An individual or organization seeking judicial review of an agency action must first demonstrate that:
the agency action being challenged is reviewable. *An individual or organization seeking judicial review of an agency action must demonstrate that the agency action being challenged is reviewable, that the challenging party has the standing to sue, that necessary administrative remedies have been exhausted, and that the dispute is ripe for judicial review.
In general, the mailbox rule is beneficial to:
the offeree. *According to the mailbox rule, properly addressed and dispatched acceptances can become effective when they are dispatched, even if they are lost and never received by the offeror. It protects the offeree's reasonable belief that a binding contract was created when the acceptance was dispatched
The doctrine of standing to sue implies that:
the plaintiff has a substantial stake in the litigation. *The doctrine of standing to sue, requires that the plaintiff have some direct, tangible, and substantial stake in the outcome of the litigation.
An otherwise valid contract whose enforcement is barred by the applicable statute of limitations is an example of a(n):
unenforceable contract. *An unenforceable contract is one that meets the basic legal requirements for a contract but may not be enforceable because of some other legal rule.
A contract that fails to comply with the statute of frauds is generally:
unenforceable.
Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of a contract that is now:
unilateral and executed. *It is a unilateral contract because the promise was one-sided and executed because both parties have performed fully.
A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n):
voidable contract. Voidable contracts are those in which harmed parties have the legal right to cancel their obligations under the contract.
The parol evidence rule is relevant only in cases:
where parties have expressed their agreement in a written contract. *The parol evidence rule is relevant only in cases in which the parties have expressed their agreement in a written contract. Thus, it would not apply to a case involving an oral contract or to a case in which writings existed that were not intended to embody the final statement of at least part of the parties' contract.
BigStore, Inc. includes a clause in its employment application stating that all future employment disputes will be resolved through binding arbitration. This clause most likely:
will be considered valid by federal courts. *Arbitration is the submission of a dispute to a neutral, nonjudicial third party (the arbitrator) who issues a binding decision resolving the dispute. Arbitration usually results from the parties' agreement. That agreement normally is made before the dispute arises (most often through an arbitration clause in a contract). The Federal Arbitration Act requires judicial enforcement of a wide range of agreements to arbitrate claims. This means that if a contract contains a clause requiring arbitration of certain claims but one of the parties attempts to litigate such a claim in court, the court is very likely to dismiss the case and compel arbitration of the dispute.
