part 3

A contract to commit a tort will be enforced by the courts

false

Happy Gilmore consumed a large number of alcoholic beverages served to him by the owner and wait staff at a local country club owned by Bob Barker, located in North Dakota. Everyone at the country club that night knew Happy was intoxicated for most of the evening, as well as when he drove his automobile out of the parking lot. Not more than ten minutes later, Happy's car crossed the center line of the highway and collided head-on with a sports car driven by Shooter McGavin. Shooter suffered severe personal injuries as a result. Shooter's medical expenses exceeded $1,000,000. Thereafter, Shooter settled his claim against Happy. Shooter then learned that North Dakota's statutory law provides that the seller of intoxicants who dispenses alcoholic beverages to an intoxicated person is guilty of a Class 1 misdemeanor. The next month, the country club's bouncer, "Chubbs", escorted out of the building two inebriated customers, Mr. Larson and Happy's Grandma, after they started a loud argument and began cursing and throwing food at other customers. As the three of them reached the parking lot, Mr. Larson threw a punch, Chubbs ducked, and the punch knocked Happy's Grandma out. His patience exhausted, Chubbs told the Mr. Larson and Grandma to stay away from the country club, and then he slugged Mr. Larson , knocking him to the ground, breaking his eyeglasses, and causing a partial loss of sight in Mr. Laron's right eye. Chubbs, who started as a dishwasher at the country club, had earned an online training certification as a bouncer and as a security guard. He had no criminal record and had never been sued. Bob Barker considered him to be a model employee. Each injured individual filed a separate lawsuit against Bob Barker, doing business as the Price is Right County Clubs, Inc., in North Dakota State Court. Is a court likely to hold Bob Barker liable for damages for the personal injuries suffered by Mr. Larson as a result of his being struck by Chubbs at the Country Clubb? Choose the best answer.

- Yes, Bob will most likely be held liable for the personal injuries suffered by Mr. Larson. The agency relationship is established (i.e. Chubbs works for Bob), Chubbs was acting within the scope of his employment as a bouncer, his actions were foreseeable in furtherance of his employment, and his actions benefited Bob as established by the facts.

Define a principal agent relationship.

A consensual relationship authorizing one party (the agent) to act on behalf of the other party (the principal) subject to the principal's control. The agent has the duties of obedience, good conduct, diligence, to inform, to account, and fiduciary. The duties of the principal are contractual, tort, and other.

Which of the following promises is enforceable even if the contract is not evidenced by writing?

Ming's agreement with Chell to buy Chell's bike for $400

Walter White hires Jesse Pinkman to paint his house. Walter and Jesse enter into a valid contract where Walter agrees to pay Jesse $2,500 for the job. After completion, Walt believes (in good faith), that the paint job was defective and withholds the payment. He calls Jesse and says "that job you did was not good enough." Jesse responds "yo yeah it was man. I don't know what you expect of me. Now show me some respect and pay me or I am calling my lawyer." Walt says "Jesse, don't be an idiot. I am going to call my lawyer too!" The parties bicker back and forth for a while. Walt finally says "fine, Jesse. Just listen to me. Instead of suing this out in court, I will offer you $1,000 in full settlement of the claim." Jesse, accepts, despite that the reasonable value of his services was $2,500. Walt sends a payment to Jesse of $1,000, Jesse accepts. Jesse then sues Walt for the remaining $1,500. Will Jesse be successful in a lawsuit asking for the remaining $1,500?

No, when Jesse accepted the check which stated "in full settlement of the claim." This is an accord and satisfaction

Carol Wojtyla was on a walk and stopped to talk to a neighbor Mother Theresa. They started talking about the weather. Mother Theresa told him that she is worried about winter because she just had knee surgery and doesn't think she will be able to shovel snow. The next day it snows and Carol knocks on Mother Theresa's door and offers to shovel her walk. After shoveling the walk, Mother Theresa pays Carol $20. It snows for the next 5 days and Carol returns each morning to shovel Mother Theresa's walk. Each time he is paid $20. Now, over the course of the next month, it snows off and on and Carol shovels her walk each time it snows. However, Mother Theresa does not pay for the recent months snow shovels. When Carol asks, Mother Theresa replies "I thought you were just being kind" and further explains that she never intended to pay for each snow shovel. Carol files a lawsuit in small claims court (Wojtyla vs Mother Theresa) to recoup payment for his service. Which best describes how the court would rule:

This is an implied in fact condition and Carol is entitled to be paid for the times he shoveled Mother Teresa's walk over the last month

Quincy is working hard on the mayoral campaign of Rio and believes that just a few more votes could win the election, so promises to pay a friend Varun $50 to register and vote. Varun does so, but Rio loses the election, and Quincy now refuses to pay. The agreement is:

Unenforceable and opposed to public policy

Pat has an employment contract with Dunkirk Ice Cream to sell ice cream and novelty ice cream products. Pat has five children and another due any day. Pat doesn't make enough money with Dunkirk so, without Dunkirk's knowledge, he decides to seek additional work at another dairy in the town that also sells ice cream and novelty ice cream products. Pat's employment contract that he signed with Dunkirk specifically prohibits Pat from competing. Will Pat selling for another local dairy in addition to Dunkirk be problematic under the current contract?

Yes, it is likely to be enforceable during employment because it is a reasonable restriction on his employment with Dunkirk

Riddell Sports Group, a company that manufactures football helmets, delivers to The Dallas Cowboys a shipment of helmets that are slightly nonconforming to the terms of their contract. Recall under the UCC, the buyer of goods can insist on perfect tender by the seller. Prior to acceptance, The Dallas Cowboys can reject the goods: NOTE: The relevant portion of UCC 2-601 states: If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may - (a) reject the whole; or - (b) accept the whole; or - (c) accept any commercial unit or units and reject the rest. -entirely, due to the perfect tender rule Taylor Swift pays Apple Inc, $1,200 for a new Mac Book Pro. Apple pays USA Storage $50 to sore the computer until Taylor picks it up. For purposes of the UCC, the arrangement between Apple and USA is

a bailment

Which of the following contracts would most likely not need to be in writing to be enforceable?

a contract to sell a television for $20

Richard owes Andy $1,000 under a contract. The parties agree that Andy will accept Richard's boat as satisfaction for Richard's duty to pay $1,000. What would this best be described as?

accord

Sara tells a local apple farmer that she will buy as many apples from the farmer as she wants. What would this be an example of?

an illusory promise

What is it called when a party announces that it cannot or will not perform its duties under a contract prior to the time of performance?

anticipatory repudiation

Albert Einstein just obtained his master's degree in astrophysics. He enters into a three year employment agreement to work for the California Institute of Technology as long as they become accredited after one year. This would best be described as what type of condition?

condition subsequent

Bargains are illegal if they involve a crime or tort but not if they are merely against public policy

false

Finn is currently enrolled in law school and expects to graduate and take the bar exam in order to be able to practice law. Before becoming a lawyer, Finn promises to represent a friend, Landon, in a breach of contract action if Landon will pay 25 percent of the settlement to Finn. Finn negotiates and the case settles for $50,000. Landon refuses to pay Finn. Finn then graduates and attempts to sue Landon. Finn has a legal right to enforce the agreement

false

In an employment agreement with Karly, Allyn promises to work for Karly for the rest of Allyn's life. This promise must be in writing to be enforceable.

false

Kris, age 17, who looks 18 or older, makes a contract to buy a car from Mais, an adult. Mais finds out Kris's age. Mais may avoid the contract even if Kris did not misrepresent Kris's age.

false

Sean, after having two beers and feeling tipsy, makes a deal with Yoko to buy Yoko's stereo. Sean can avoid the contract because of lack of capacity

false

Under the perfect tender rule, the buyer must reject the goods if they do not conform in every way with the terms of the contract.

false

What is the term for an agent who is controlled by a principal but the principal does not control the manner and means of agent's performance?

independent contractor

What type of equitable relief involves a court order requiring a party to refrain (stop) from engaging in certain conduct?

injunction

Joe Dirt buys 1,000 bales of hay from Kid Rock Farms. The parties agree that the hay will be transported "F.A.S. Duluth Port." The truck carrying the hay to the port explodes just as it is pulling into the port where the ship is waiting. The loss is suffered by

kid rock farms

What type of contractual damages are agreed to in advance of a breach?

liquidated

Which type of damages are generally not recoverable for breach of contract?

punitive

Parol evidence cannot be used for which one of the following purposes?

to include a provision in a contract that the parties forgot to write down

Before a buyer can have an insurable interest in goods, the goods themselves must be identified to a contract.

true

Entrusting goods to a merchant who deals in goods of the kind gives the merchant the power to transfer all rights to a buyer in the ordinary course of business.

true

Where a stipulation in restraint of trade is a part of the contract for the sale of a business, it may be valid if the restraint is within reasonable limitations to protect the business's goodwill.

true

Cedar is 88 years old and under the legal guardianship of a relative. One day Cedar receives a telephone call from a health insurance salesperson and purchases a $400-a-month Medigap insurance policy. This contract is

void