unit 3 business law

when a party to a contract does not perform as required, there is

a breach of contract

miller needs to paint his metal workshop. he tells the paint store what he needs and says he concerned about peeling. the seller recommends Pitts, which the company advertises is good for such use. if miller buys Pitts based on the recommendation, and it peels right away, with respect to fitness for particular purpose, there is

a breach of implied warranty; miller relied on the sellers judgement and claims

an unconscionable contract is

a contract so unfair to an innocent party that the courts, in equity, will not enforce it

partners in a partnership owe each other

a fiduciary duty

a sole proprietorship comes into existence when

a person begins to do business for herself

someone who files for bankruptcy under chapter 13 files

a plan for payment of creditors over five years

many states now allow groups of doctors in practice together to form a particular legal entity allowed by state called

a professional corporation

"bozo, if you wash my car I will pay you $10." bozo says nothing but washes the car later that day. there is what may be called

a unilateral contract

_____ is an offeree's expression of assent or agreement to the terms of an offer

acceptance

elements of a contract include all of the following except

agreement among the parties, lawful subject matter, consideration, parties with legal capacity

in a breach of contract case, compensatory damages are damages that

allow the party suffering the breach to recover costs incurred by relying on the promise of the other party

to create a limited liability company, creators must file

articles of organization

you pay $200 for the right to be the only buyer a seller will deal with for ten days for a piece of property that is for the sale for $250,000. this is:

called an option contract

in common law, an offer that has unclear major terms, or is missing important terms

cannot be the basis for a contract

_____ is something of value or something bargained for in exchange for a promise.

consideration

which form of business incurs double taxation

corporation

If a contract for the sale of goods does not specify where good sale to be delivered, the UCC presumes that

delivery is at the sellers place of business

tracy drinks beer at a bar, then goes to a car dealer and orders a new car. tracy later claims he was drunk and should not have to buy the car. This:

depends if tracy could show he mentally incapacitated after a few beers, in which case he would not be held to the contract

a board of directors fiduciary duty of loyalty requires that

directors place the interests of the corporation before their own interests

filing for bankruptcy under chapter 7 of the bankruptcy code results in a ________ of debts

discharge

the owner of a lost dog posts notices that she will pay $200 for its return. someone who does not know about the reward finds the dog and returns it. the owner

does not have to pay the reward because the offer was not communicated to the person who found the dog

Roberta says "Susan, I will sell you my car for $5000." Susan says, "ill give you $4,500." Roberta says "no." later Susan calls Roberta and says, "I have $5000 and want the car." Roberta:

does not have to sell the car due to the counteroffer, which terminated the original offer

a _______ is created by a steers promise or guarantee as to the quality, safety, performance, or durability of goods being sold

express warranty

article 2 of the UCC covers the sale of

goods and business services

twenty years after you leave college you are rich and famous. Your college calls on you for a $10 million gift to renovate a classroom building and name the building in your honor. you tell them you will be glad to give the gift because you learned so much and that is why you are successful. a year later the building is renovated and the college asks for the money. you decide to spend it on a new jet and tell the college to get stuffed. You:

have to pay the money under the rule of promissory estoppel

when a court "pierces the corporate veil" it

holds shareholders personally liable for corporate debts

ads are usually considered

invitations for others to submit offers to buy

if Scott makes a nonbonding promise to lee and then fails to fulfill it

lee cannot expect contract law to provide a remedy

when both parties to an agreement are mistaken as to a material fact, the contract:

may be voidable

when a breach of contract occurs, the non breaching party is required to

mitigate her losses

a offers b $100,000 for his farm, and they sign an agreement for the sale. before the money is paid, A finds out that the market value of the farm is only $55,000. A:

must pay $100,000; the contract is valid

without consideration

neither party can enforce the promise or agreement

you leave your poodle at a new grooming ship and tell them to wash the dog-a $30 service. they do that and also paint the paddles nails and tie ribbons in his hair-these services are an extra $10. you pay them for the wash. what about the extra $10?

no contract existed for these services no extra payment

a court award of $1 in damages would be called

nominal

in the divorce agreement between ted and Alice, Alice agreed to assume the debt on teds credit card. the credit card company agrees to this arrangement. this is an example of:

novation

gary and sue start a consulting firm. they are co owners of it and have joint control over its operation and the right to share in its profits. their organization is most likely a

partnership

which of the following statements about a corporation is true? corporations are not entitled to constitutionally protected

privilege against self incrimination

the uniform commercial code (UCC) was designed to

promote uniformity of the laws relating to commercial sale of goods

when the party who breaches a contract has behaved maliciously and committed a tort, the court may want to discourage such a behavior in the future by imposing what damages besides regular damages

punitive

filing for bankruptcy under chapter 11 of the bankruptcy code results in _________ of debts

reorganization

according the UCC's statute of frauds all

sales of goods worth more than $500 must be in writing

the owners of a corporation are called

shareholders

Len agrees to sell Doug some choice ocean front property. if Len later refuses to convey the land, Doug may sue for

specific performance

contract law is primarily

state common law

today a corporation must be created according to

state law

a 16 year old goes to a used car dealership and pays $2000 cash to buy a car on the lot.

the 16 year old can bring the car back the next day and demand his money back (less damages) because the contract is voidable

if a North Carolina firm contract to buy toys from china. and the contract does not specify which law applies, in case of dispute, which law will apply

the CISG

smith who lives your apartment building, drives you crazy. you agree to give rates $5000 if he gets rid of smith for you. after disposing of her, ratio returns for his money. you refuse to pay. ratio sues you; the court holds the contract is

unenforceable because it involves an unlawful act

a potential drawback of sole proprietorships and partnerships is that the parties involved have

unlimited liability

an offeror can terminate an offer by

withdrawing it