Reference no: EM131440639

Assignment

Question 1

Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refused to pay either Ursula or Ted any of the reward money. In a lawsuit between the bank and Ted, regarding the reward funds, who is likely to prevail, and why?

? The bank is likely to prevail because Ted only provided past consideration.
? The bank is likely to prevail because Ted had a preexisting duty to catch Victor.
? The bank is likely to prevail because Ted's promise to catch Victor was illusory.
? Ted is likely to prevail because his promise to catch Victor resulted in a binding bilateral contract.
? Ted is likely to prevail because an enforceable unilateral contract exists based on his performance.

Question 2

Bill contracts with Judy to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Bill's duty to Judy, if any?

Bill has no duty to Judy so long as she did not expressly object to the delegation.
Bill has no duty to Judy regardless of whether she objected to the delegation.
Bill continues to be bound to Judy to see that her car gets washed.
Bill continues to be bound to Judy to see that her car gets washed only if the contract expressly prohibited delegation.
Bill continues to be bound to Judy to see that her car gets washed unless he already paid Paul for the job.

Question 3

Which of the following is FALSE regarding a sole proprietorship?

A sole proprietorship requires few legal formalities.
A sole proprietor has complete control of the management of the business.
The sole proprietor keeps all the profits from the business.
Profits are taxed as the personal income of the sole proprietor.
A sole proprietor is not personally liable for obligations of the business.

Question 4

A partnership in which the partners divide profits and management responsibilities and share unlimited personal liability for the partnership's debt is called a __________.

general partnership
limited partnership
limited liability partnership
corporation
limited liability company

Question 5

Maurice contracted with Suzanne to feed and walk her Corgi mix dog, Baby, for $100 while Suzanne was on vacation for one week. One day before Suzanne was to leave, Maurice came over and said that Baby would be a significant amount of trouble and that he would have to receive $150 in order to walk and feed Baby. Suzanne reluctantly agreed. When she returned from vacation, she handed Maurice $100 and refused to pay more. Maurice threatens to take her to small claims court. What would be the likely result?

Maurice will lose based on economic duress.
Maurice will lose based on undue influence.
Maurice will lose based on fraud.
Suzanne will lose because she breached the amended contract with Maurice.
Suzanne will lose because she breached the amended contract with Maurice unless she can establish that the prevailing rate for walking and feeding a dog for one week is no more than $100

Question 6

Which of the following is TRUE regarding the mirror-image rule and the UCC?

The mirror-image rule applies under the UCC the same as it is applies under common law.
The mirror-image rule that applies under common law does not apply under the UCC.
The mirror-image rule that applies under the common law applies under the UCC only if a lease is involved.
The mirror-image rule that applies under the common law applies under the UCC only if a sale of goods is involved.
The mirror-image rule under the UCC does not apply to common law.

Question 7

Mistakes in contracts may be classified as __________.

void and voidable
enforceable and voidable
unilateral and void
mutual and enforceable
unilateral and mutual

Question 8

Which of the following is TRUE regarding whether the shape of a product or package may be a trademark?

The shape of a product may be a trademark if it is nonfunctional, but the shape of a package may not be the subject of a trademark.
The shape of a product may be the subject of a trademark if it is functional, but the shape of the package may not be the subject of a trademark.
The shape of a product or package may be a trademark if it is functional.
The shape of a product or the shape of a package may be a trademark if it is nonfunctional.
The shape of a package may be a trademark if it is nonfunctional, but the shape of a product may not be the subject or a trademark.

Question 9

Patricia, the president of a company that makes batteries, has a new interest in the environment. She recently went to a seminar on environmental dangers and has decided to take steps to clean things up. She started at home and was also committed to change things at work. Patricia had to face the fact that her company has been cheating and is not in compliance with applicable environmental regulations due to dumping in a nearby river. Her company has never been cited, however, because it employs a very large number of people in the community, including the mayor's wife and the chief-of-police's brother.

On her mission to clean things up, Patricia has decided to go even further than the law requires and install the very latest environmental protections. When she announced her plan, the chair of the company's board of directors, Cindy, had a meeting with Patricia. Cindy told Patricia to analyze the situation carefully because the cost of the additional equipment would mean no dividend to shareholders and no raise for employees. Furthermore, Cindy told Patricia that installing all of the new equipment would result in higher prices for the company's batteries and could bankrupt the company because of foreign competition. Cindy hinted that Patricia could be fired if she persisted. Cindy suggested that Patricia just be concerned with a minimal standard of ethics. Which of the following is the minimal standard that a business must meet in a consideration of business ethics?

? Decisions must be legal.
? Decisions must meet the criteria of a follower of the WPH Framework for Business Ethics.
? Decisions must meet the requirements of the most important stakeholders.
? Decisions must receive a majority vote of acceptance by employees.
? Both that decisions must be legal and that decisions receive a majority vote of acceptance by employees.

Question 10

A person who contracts with another to do something for him or her but who is not controlled by the other nor subject to the other's right to control with respect to his or her physical conduct in the performance of the undertaking is a(n) __________.

employee
independent contractor
authorized contractor
task-specific contractor
partial contractor

Question 11

Which of the following is FALSE regarding trade-secret protection?

Competitors may not legally discover trade secrets by doing reverse engineering.
Competitors may discover secrets by going on public tours of plants and observing the use of the trade secret.
Lawful discovery of a trade secret means there is no longer a trade secret to be protected.
An invention may be considered a trade secret.
A design may be considered a trade secret.

Question 12

If the plaintiff wants a court order that requires the defendant to fulfill the terms of the contract, the plaintiff is seeking __________.

specific performance
directive
instructional edict
demand
injunction

Question 13

Connie, the president of a company that makes paper, has a new interest in the environment. She recently went to a seminar on environmental dangers and has decided to take steps to clean things up. She started at home and was also committed to change things at work. Connie had to face the fact that her company has been cheating and is not in compliance with applicable environmental regulations due to dumping in a nearby river. Her company has never been cited, however, because it employs a very large number of people in the community, including the mayor's wife and the chief-of-police's brother.

On her mission to clean things up, Connie has decided to go even further than the law requires and install the very latest environmental protections. When she announced her plan, the chair of the company's board of directors, Brooke, had a meeting with Connie. Brooke told Connie to analyze the situation carefully because the cost of the additional equipment would mean no dividend to shareholders and no raise for employees. Furthermore, Brooke told Connie that installing all of the new equipment would result in higher prices for the company's paper products and could bankrupt the company because of foreign competition. Brooke hinted that Connie could be fired if she persisted. Brooke suggested that Connie just be concerned with a minimal standard of ethics. Which of the following would be a stakeholder in the company?

? The community only
? The shareholders only
? Future generations only
? The community and shareholders only
? The community, shareholders, and future generations

Question 14

A breaching party's right to provide conforming goods when nonconforming goods were initially delivered is known as __________.

substantial impairment
usage of trade
cure
perfect tender rule
course of dealing

Question 15

Which of the following is FALSE regarding a limited liability partnership?

A limited liability partnership is considered a separate legal entity.
Limited liability partnerships are fairly new.
The business name must include "Limited Liability Partnership" or an abbreviation in the name.
The parties must file a form with the secretary of the state to create a limited liability partnership.
Each partner pays taxes on his or her share of the income of the business.

Question 16

Monique was licensed to train massage therapists. A new federal agency, the Aesthetic and Massage Commission, was committed to enforcing the statute that licensed massage therapists must refrain from "any act or conduct indicating bad faith, incompetence, dishonesty, or improper dealing." Monique, while driving home late one night from a party, was stopped by the police and arrested for driving under the influence of alcohol. She pled guilty to the offense. When the Aesthetic and Massage Commission discovered the offense, the officials of the agency met, decided that Monique might drink on the job, and concluded that she might pose a danger to students. Accordingly, her license to teach massage therapy was revoked. Monique threatened to sue to retain her license and was told by the agency head that she had no right to appeal to court because of the nature of the Aesthetic and Massage Commission, and that, in any event, action by an agency is always upheld. Which of the following is TRUE regarding the statement of the agency that Monique had no right to appeal to court?

? The agency representative was wrong, and if Monique cannot resolve the issue within the agency, she may appeal to court for judicial review.
? Because the agency was set up to protect the safety of the public, the agency representative is correct unless Monique can establish that she entered into a separate contractual arrangement with the agency when she was hired that gave her the right to appeal decisions to court.
? Further information is needed regarding whether the agency was an executive agency or an independent agency because while actions of an independent agency may be appealed to court, actions of an executive agency may not be appealed to court.
? Further information is needed regarding whether the agency was an executive agency or an independent agency because while actions of an executive agency may be appealed to court, actions of an independent agency may not be appealed to court.
? Because the agency was set up to protect the safety of the public, the agency representative is correct, and Monique has no right to a court action and no right to enter into a contractual agreement with the agency regarding appeal rights.

Question 17

Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. At the auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Mary sued Barry, attempting to obtain possession of the table. What is the likely result in the lawsuit brought by Mary against Barry for the table?

? Barry will win because Mary was simply making an offer that he was free to decline.
? Barry will win because the price was clearly insufficient for the table.
? Barry will win because no acceptance occurred.
? Mary will win because the auction was without reserve, and Barry had agreed to accept the highest bid.
? Barry will win because he did not inform attendees in writing that the auction was without reserve.

Question 18

Which of the following occurs when a party to a contract transfers his or her rights to a contract to a third party?

Assignment
Referral
Disgorgement
Privity
Transfer

Question 19

Heather innocently misrepresented the status of a puppy as being a full-blooded Pomeranian when actually it was a mixed breed. Brad had contracted to purchase the dog, but the problem was discovered prior to his paying for the dog and picking it up. Nevertheless, Brad was very angry and felt that Heather should have been more careful. He said that he planned to rescind the contract and also sue her for damages to punish her and deter others from behaving similarly. Which of the following is true regarding the remedies available to Brad?
Because Heather violated the contract to provide a full-blooded Pomeranian, Brad is entitled to rescind the contract and also to the damages he seeks.

Because Heather violated the contract to provide a full-blooded Pomeranian, Brad is entitled to rescind the contract, but he is not entitled to the damages he seeks.

Because Heather is not guilty of any wrongdoing, Brad is entitled to no remedy, and Heather has an additional 30 days in order to honor the contract.

Because Heather is not guilty of any wrongdoing, Brad is entitled to no remedy, and Heather has an additional 60 days in order to honor the contract.

Because Heather is not guilty of any wrongdoing, Brad is entitled to no remedy, and Heather has an additional 90 days in order to honor the contract.

Question 20

What was the result in the case in the textbook of Lucy v. Zehmer involving whether allegations of joking involving the sale of land prevented the formation of a contract?

The court ruled that the contract would not be enforced because one of the parties was subjectively joking.
The court ruled that the contract would not be enforced because one of the parties was joking, and a reasonable person should have known that.
The court ruled that the contract would not be enforced because the parties had been drinking although they were not intoxicated.
The court ruled that the agreement would be enforced because of the outward manifestations of agreement.
The court ruled that the contract would be enforced because of what the parties verbally said regardless of whether an objective person would have thought joking was involved.

Question 21

Which of the following are types of warranties?

Express and unknown
Implied and understood
Acknowledged and express
Express, implied, and acknowledged
Express and implied, but not acknowledged

Question 22

Which of the following do NOT meet the UCC definition of a good?

Real estate
Corporate stocks
Copyrights
Neither real estate, corporate stocks, nor copyrights meet the definition of goods
Real estate and corporate stocks do not, but copyrights do meet the definition of good

Question 23

The "public disclosure" test is also known as the __________ test.

television
Powell
self-conscious
golden
primary

Question 24

Sally agrees to mow Paul's yard for $300 for the summer. Paul wishes to assign the contract to his grandmother. Sally objects because Paul's yard is very small while the grandmother's yard is over an acre. Which of the following is the correct legal outcome for the dispute between Sally and Paul?

? Sally will win because Paul's attempted assignment would increase the duties to which she agreed.
? Sally will win because all assignments are invalid without the obligor's consent.
? Sally will win unless Paul paid her the $300 in advance in which case Paul will win.
? Paul will win because he may validly assign the contract without Sally's consent.
? Paul will win so long as he tells Sally about the assignment prior to the time she begins any performance whatsoever.

Question 25

Which of the following refers to the right of an offeror to revoke an offer?

? The offeror is the "originator of his offer."
? The offeror is the "master of his offer."
? The offeror is the "proponent of his offer."
? The offeror is the "adjudicator of his offer."
? The offeror is the "arbiter of his offer."

Question 26

Which of the following BEST describes advantages of mediation?

? It only helps disputing parties preserve their relationships.
? Only those parties to mediation have a high level of autonomy.
? The mediator solves the dispute if the parties are unable to do so.
? It helps disputing parties preserve their relationships, and also parties to mediation have a high level of autonomy.
? It helps disputing parties preserve their relationships, parties to mediation have a high level of autonomy, and the mediator solves the dispute if the parties are unable to do so.

Question 27

Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel, that he would complete renovations on her upscale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, a strong earthquake shook the area, and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling, himself, to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Which of the following is the appropriate term for the agreement that Stewart would pay Joan $50,000 for each day he was late in completion?

? Mitigated damages term
? Liquidated damages clause
? Stipulated damages
? Acknowledged damages clause
? Approved and acknowledged damages clause

Question 28

Which of the following is TRUE regarding the liability in tort of employers for the actions of employees and independent contractors?

? Employers are generally liable in tort for the actions of their employees, while they are generally not liable for the actions of independent contractors.
? Employers are generally liable in tort for the actions of independent contractors, while they are generally not liable for the actions of employees.
? Employers are not generally liable in tort for the actions of independent contractors or for the actions of employees.
? Employers are generally liable in tort for the actions of independent contractors and also for the actions of employees.
? Employers are generally liable in tort for the actions of independent contractors and the actions of employees, but only if the employer has agreed to be liable in a written contract with the employee or independent contractor.

Question 29

Which of the following is FALSE regarding the agency relationship?

? It is a consensual relationship.
? It may be formed by formal written contracts.
? It may usually be formed by informal oral agreements.
? It exists when the principal takes action to ask another individual to act on behalf of the principal.
? People must be trained in the field involved in order to qualify as agents.

Question 30

Which of the following is a person who has a duty to act primarily for another person's benefit?

-Principal
-Employer
-Fiduciary
-Trustor
-Benefitor

Question 31

Gretchen offers $100 to anyone who can return her lost dog, Sparky. Haley returns the dog and requests the money. Gretchen says that there is no binding contract. Which of the following is TRUE regarding Gretchen's statement?

? Gretchen is incorrect because there is a binding bilateral contract.
? Gretchen is incorrect because there is a binding unilateral contract that Haley accepted by performing.
? Gretchen is correct because there is no binding bilateral contract.
? Gretchen is correct because there is no binding unilateral contract.
? Gretchen is correct because Haley acted incorrectly by her manner of attempted acceptance.

Question 32

Penny is investigating what she needs to do to legally to open a dog grooming business in her city. Which of the following would govern the business?

? State statutes
? City ordinances
? Model laws
? State statutes, city ordinances, and model laws
? State statutes and city ordinances, but not model laws

Question 33

1. Which of the following articles of the Uniform Commercial Code (UCC) governs sales contracts?

? 2
? 2A
? 4
? 4A
? 6

Question 34
__________ are investor-owners of a corporation.

? Profit owners
? Profit and loss owners
? Approved investors
? Limited partners
? Shareholders

Question 35

Which of the following BEST determines the obligations of sellers/lessors and buyers/lessees?

? Terms the parties outline in agreements
? Custom
? Rules outlined by the UCC
? Terms the parties outline in agreements, custom, and rules outlined by the UCC
? Terms the parties outline in agreements and custom, but not rules outlined by the UCC

Question 36

Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?

? 48 hours
? Seven days
? 30 days
? 45 days
? No set amount of time, and what constitutes a reasonable amount of time varies depending upon subject matter of the offer

Question 37

In a limited partnership, which of the following have no part in the management of the business?

? General partners
? Limited partners
? Special partners
? General partners, limited partners, and special partners
? General and special partners but not limited partners

Question 38

A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules describing what behavior is permitted and encouraged in their community. These rules are what we refer to as the __________.

? electoral college
? community standard
? democratic validation
? stare decisis
? law

Question 39

The __________ is the supreme law of the land.

? United States Constitution
? Declaration of Independence
? United States Code
? model law
? Uniform Commercial Code

Question 40

1. Which of the following was the result on appeal in the case of Webster v. Blue Ship Tea Room Inc.-the case in which the plaintiff sued after getting a bone caught in her throat while eating clam chowder?

2. 3. 4. That the plaintiff could recover based upon the implied warranty of merchantability

5. 6. 7. That the plaintiff could recover based upon the implied warranty of fitness for a particular purpose

8. 9. 10. That the plaintiff could recover based on an express warranty

11. 12. 13. That the plaintiff could not recover because she waited too long in which to sue and also because she was not the direct purchaser of the fish

14. 15. 16. That the plaintiff could not recover for reasons including that the bone should not have been unexpected

Question 41

1. Briefly define what makes each of the following entities different from each other and what the advantages might be for each: sole proprietorship, general partnership, limited partnership, and limited liability partnership (LLP).

Question 42

1. What are the major differences between a corporation and a limited liability corporation (LLC)? Why do you believe governing bodies have chosen to create the two different entities?