Biz Law Midterm Flashcards

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1
Q

Curt is a prankster. One night while attending the opening night of the latest “Planet Wars” film, Curt decides that he wants to “get a reaction” from the crowd and loudly shouts out “There is poison gas leaking into this room!!! Everybody needs to run NOW!!!” Curt’s words are untrue, but cause a panic and people are injured as they attempt to flee from the theater. Under these facts:

A.) Curt’s words are protected commercial speech under the 1st Amendment to the U.S. Constitution since the theatre is a business.

B.) Curt’s words are protected hate speech under the U.S. Constitution

C.) If the film advocates a certain political position, Curt’s words constitute protected speech under the U.S. Constitution.

D.) Curt’s words are not protected under the First Amendment to the U.S. Constitution.

A

D.) Curt’s words are not protected under the First Amendment to the U.S. Constitution.

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2
Q

Carlin, a resident of Texas, wants to file a suit against Greg, a resident of Kansas, over Greg’s failure to pay Carlin for work on his house. The amount in dispute is $15,000. Under diversity of citizenship requirements, a federal court cannot exercise jurisdiction in this case because:

A.) The amount in controversy is less than $75,000

B.) The state court has not yet ruled in the suit

C.) the dispute concerns property, not persons

D.) the parties are citizens of different states

A

A.) The amount in controversy is less than $75,000

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3
Q

True or False:

An arbitrator can never render a legally binding decision.

A

False

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4
Q

Jim, who is a bit eccentric, says that he is fed up with the way a certain employer in his town treats employees and that he is going to sue that employer in an effort to improve matters. Jim also says that he is going to start his case at the appellate court level, skipping over all those “lesser” judges. Jim says that those justices will surely hear him out and that he will also seek a jury. Although he is not a lawyer, Jim believes that the offenses of the employer are so severe that the justices will appreciate his attempt to make things better for the employees involved. Will Jim get a jury at the appellate court level?

A.) Only if the opposing party agrees.

B.)In some states but not in others.

C.) No

D.) Only if he is in federal court

A

C.) No

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5
Q

What are the trial courts in the federal court system called?

A.) Federal Circuit Courts

B.) Federal District Courts

C.) Federal Jurisdictional Courts

D.) Federal Preemptory Courts

A

B.) Federal District Courts

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6
Q

Jones, a resident of Illinois, owns a warehouse worth $25,000 in Indiana. A dispute arises over the ownership of the warehouse with Cameron, a resident of Kentucky. Cameron files a lawsuit against Jones in Indiana. Regarding this suit, the Indiana court has:

A.) Diversity jurisdiction

B.) In personam jurisdiction

C.) No jurisdiction

D.) In rem jurisdiction

A

D.) In rem jurisdiction

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7
Q

True or False:

The First Amendment does not protect commercial speech as extensively as noncommercial speech.

A

True

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8
Q

____ cannot deprive individuals of the freedoms protected by the Bill of Rights.

A.) Just State governments

B.) Just the federal government

C.) Federal and state governments

D.) The federal government and private employers

A

C.) Federal and state governments

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9
Q

True or False:

The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.

A

True

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10
Q

At a(n) ______, attorneys verbally examine a witness under oath with a court reporter present.

A.) deposition

B.) pre-trial meeting

C.) interrogatory

D.) inquiry

A

A.) deposition

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11
Q

The “jury pick” is also known as:

A.) voir dire

B.) depositioning

C.) discovery

D.) alternative dispute resolution

A

A.) voir dire

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12
Q

True or False:

An “answer” can admit to allegations made in the complaint.

A

True

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13
Q

True or False:

Venue is the term for the subject matter of a case.

A

True

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14
Q

Under which of the following situations does the tort of trespass to land (realty) occur?

A.) Only when a person stays on the land of another once the owner tells him to depart.

B.) Only when a person refuses to remove something he placed on the property that the owner of the property asked him remove.

C.) When a person causes an object to be placed on the land of another without the landowner’s permission, when a person stays on the land of another when the owner tells him to depart, and when a person refuses to remove something he placed on the property that the owner of the property asked him to remove.

D.) When noises reverberate across the land of another

A

C.) When a person causes an object to be placed on the land of another without the landowner’s permission, when a person stays on the land of another when the owner tells him to depart, and when a person refuses to remove something he placed on the property that the owner of the property asked him to remove.

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15
Q

True or False:

Infancy and Intoxication constitute defenses to the bad act element of criminal conduct.

A

False

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16
Q

What is the written document that makes the formal accusation of a violation of the criminal law?

A.) answer

B.) information/indictment

C.) subpoena

D.) summons

A

B.) information/indictment

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17
Q

A person who commits a tort is known as:

A.) A criminal

B.) A plaintiff

C.) A tortfeasor

D.) A litigant

A

C.) A tortfeasor

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18
Q

Which of the following was passed largely in response to business scandals of the 2000’s such as Enron.

A.) False Claims Act

B.) Racketeer Influenced and Corrupt Organizations act

C.) Sarbanes-Oxley Act

D.)Healthcare Fraud Act

A

C.) Sarbanes-Oxley Act

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19
Q

A misdemeanor is a crime punishable by incarceration (going to jail) for up to:

A.) one year

B.) over a year

C.) for a minimum of six months

D.) is not punished by incarceration but rather only by fines

A

A.) one year

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20
Q

True or False:

Intent occurs only when a person “means” for an outcome to occur, never by simply disregarding that an outcome is likely to occur.

A

False

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21
Q

Shirley is very angry about her grade on a Business Law test and throws a punch at her professor. The professor dodged the blow and Shirley struck Oliver, another student who was standing behind the professor. Oliver never saw the punch coming. Under these facts:

A.) Shirley is liable to her professor for assault and battery

B.) Shirley is liable to Oliver for assault and battery

C.) Shirley is liable to her professor for assault and to
Oliver for battery

D.) Shirley is liable to her professor for assault but not to Oliver for battery because she did not intend to hit him

A

C.) Shirley is liable to her professor for assault and to
Oliver for battery

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22
Q

Bob is in big trouble. He was arrested and charged under a statute that made it “illegal to speak negatively about a public official while in a public building.” Bob claims that he made the statements, but was only trying to let people know the truth, and that he didn’t want anyone else to be “tricked.” Bob has hired you to help defend him. What would probably the Bob’s best defense under these facts?

A.) Defense of others

B.) No intent

C.) Lack of actual malice

D.) Attack the statute

A

D.) Attack the statute

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23
Q

Bob, who has a large trust fund, is angry with Alice because she stopped dating him. Alice ran a successful dog grooming shop, and Bob decided to open a dog grooming shop next door solely to run her out of business because he was angry over the break-up. Which of the following is a correct statement regarding Bob’s liability, if any, to Alice?

A.) Bob has committed the tort of unfair competition.

B.) Bob has committed the tort of intentional interference with contract.

C.) Bob has committed the tort of unfair competition and the tort of intentional interference with contract.

D.) Bob has committed the tort of disparagement.

A

A.) Bob has committed the tort of unfair competition.

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24
Q

True or False:

One of the main problems in attempting to punish a corporation for criminal acts is the fact that our criminal justice system is designed to deal with real, not artificial, persons.

A

True

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25
Q

The Fourth Amendment to the U.S. Constitution:

A.) Outlaws all searches that are not pursuant to a valid search warrant

B.) Seeks to protect citizens’ legitimate expectations of privacy

C.) Applies to all governmental intrusions

D.) Allows for the use of illegally seized evidence in most circumstances

A

B.) Seeks to protect citizens’ legitimate expectations of privacy

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26
Q

True or False:

Toxic smells coming from a neighbor’s property are more likely to be classified as a nuisance than a trespass.

A

True

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27
Q

True or False:

If a defendant is liable in tort, she cannot be criminally prosecuted for the same wrongful behavior that made her liable in tort.

A

False

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28
Q

Which is not an example of slander per se?

A.) A written poster hanging in the school cafeteria which states that the principal stole money from the school treasury.

B.) Calling someone professionally incompetent.

C.) Telling another person that someone has a loathsome, communicable disease.

D.) Stating that another student has committed a crime for which imprisonment is possible.

A

A.) A written poster hanging in the school cafeteria which states that the principal stole money from the school treasury.

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29
Q

According to Professor Jones-Rikkers, what are the elements of a binding contract?

A.) Offer, acceptance, consideration, and assent

B.) Acceptance, consideration, assent, and a legal object

C.) Offer, acceptance, and consideration

D.) Agreement, consideration, contractual capacity, and assent

A

C.) Offer, acceptance, and consideration

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30
Q

Bette is Jack’s accountant. Bette fails to properly complete financial documents for Jack’s business thereby causing Jack to loose $7,500. Jack may recover $7,500 to cover his losses if Bette failed to act as:

A.) an ordinary blameless person

B.) an ordinary person without reasonable fault

C.) an ordinary reliable person

D.) a person in a special relationship.

A

D.) a person in a special relationship.

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31
Q

Business law professor Jimmy needed some yard work done. He told his class that he would give $50 to the first person who mowed his yard. Mindy went to mow Jimmy’s yard. Unfortunately, just as she finished mowing, a neighborhood dog bit her and she had to go to the emergency room for a couple of stitches. Jimmy has refused to pay Mindy on the basis that the agreement was not in writing and that Mindy ended up being “…more trouble than she was worth”. Which of the following is an appropriate characterization of the agreement between Jimmy and Mindy?

A.) They had a bilateral, express contract.

B.) They had a bilateral, implied contract.

C.) They had a voidable quasi contract.

D.)They had a unilateral contract.

A

D.)They had a unilateral contract.

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31
Q

Business law professor Jimmy needed some yard work done. He told his class that he would give $50 to the first person who mowed his yard. Mindy went to mow Jimmy’s yard. Unfortunately, just as she finished mowing, a neighborhood dog bit her and she had to go to the emergency room for a couple of stitches. Jimmy has refused to pay Mindy on the basis that the agreement was not in writing and that Mindy ended up being “…more trouble than she was worth”. Which of the following is an appropriate characterization of the agreement between Jimmy and Mindy?

A.) They had a bilateral, express contract.

B.) They had a bilateral, implied contract.

C.) They had a voidable quasi contract.

D.)They had a unilateral contract.

A

D.)They had a unilateral contract.

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32
Q

Contracts are based on

A.) An objective manifestation of the intent to be bound

B.) A subjective manifestation of the intent to be bound

C.) A natural and probable intent to be bound

D.) A reasonably foreseeable intent to be bound

A

A.) An objective manifestation of the intent to be bound

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33
Q

True or False:

Under the doctrine of assumption of the risk, the defendant must show that the plaintiff knew, understood and failed to appreciate the risk.

A

False

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34
Q

Barb, a jogger is running on the wrong side of the street. Curt is driving his car and hits Barb, causing her serious injuries. Curt claims that Barb was more careless than he was because she was jogging on the improper side of the roadway. The accident happened in Holland, Michigan. Under the applicable defense to negligence Barb’s recovery may be reduced:

A.) even if Barb was only slightly at fault

B.) only if Barb was equally at fault as Curt

C.) only if Barb was less at fault than Curt

D.) only if Barb was more at fault than Curt

A

A.) even if Barb was only slightly at fault

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35
Q

Filly tells Thom that she will buy his business law textbook from last semester for $65. Thom agrees. Filly gives Thom the$65 but Thom has yet to give Filly the book. Filly and Thom have

A.)an express, executed contract

B.) an express, executory contract

C.) an implied-in-fact, voidable contract

D.) a quasi contract

A

B.) an express, executory contract

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36
Q

Edna and Pippy enter into a unilateral contract, which is created when Edna gives a promise in exchange for Pippy’s____

A.) payment of money only

B.) performance of a particular act only

C.) genuine consent only

D.) promise only

A

B.) performance of a particular act only

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37
Q

True or False:

If damages result from a negligent act, there is liability.

A

True

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38
Q

Stankiewaste Haulers, Inc. moves toxic waste from manufacturing facilities to landfills. Strict liability is probably imposed on this activity because:

A.) Stankiewaste is a corporation

B.) The activity is inherently negligent

C.) The activity is of an abnormally dangerous nature

D.) The activity involves hauling

A

C.) The activity is of an abnormally dangerous nature

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39
Q

Strict Liability
The law holds an individual liable without fault when the activity in which she engages satisfies three conditions:

A

(1) it involves a risk of serious harm to people or property;

(2) it is so inherently dangerous that it cannot ever be safely undertaken;

(3) it is not usually performed in the immediate community.

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40
Q

True or False:

The doctrine of implied contract applies only if there is an actual contract that covers the area in controversy between the parties.

A

False

41
Q

A court-imposed contractual obligation to prevent unjust enrichment.

A

quasi-contract

42
Q

True or False:

An executed contract is one that has been fully performed by the parties.

A

True

43
Q

The _____ doctrine allows the plaintiff to recover damages despite proof of contributory negligence as long as the defendant had a final clear opportunity to avoid the action that injured the plaintiff.

A.) assumption of the risk.

B.) last clear chance doctrine

C.) mixed (also known as modified) comparative negligence

D.) modified contributory negligence

A

B.) last clear chance doctrine

44
Q

True or False

The burden of proof in a negligence case is the “beyond a reasonable doubt” standard.

A

False

45
Q

True or False:

Proximate cause does not involve the reasonable foreseeability of an injury or harm.

A

False

46
Q

A defense accepted in some states whereby the defendant is not liable for the percentage of harm that he or she can prove is due to the plaintiff’s own negligence.

A

pure comparative negligence

47
Q

Catin sends an offer to Bob to cut down and remove a tree for $400. Catin says, “If you say nothing, I will consider you to have accepted my offer.” If Bob does not respond, he will be deemed to:

A.) have accepted the offer

B.) have made a counteroffer

C.) have rejected the offer

D.) none of these choices are correct

A

D.) none of these choices are correct

48
Q

Gill offers to sell Omhan his diamond ring but conditions the sale on Omhan accepting the offer by October 21st. Gill may revoke the offer:

A.) Before February 21st, whether or not Omhan has accepted the offer

B.) Only after Omhan accepts the offer

C.) Before Omhan accepts the offer

D.) Only after February 21st.

A

C.) Before Omhan accepts the offer

49
Q

Sam mails an offer to sell Keith his shed for $500. Sam’s offer states, “you must respond by mail if you wish to accept, your acceptance must be received by October 20th.” Keith sends his acceptance by mail on October 15th. Through no fault on Keith or Sam’s part the acceptance letter from Keith is not delivered to Sam until October 25th. Sam now refuses to sell the shed to Keith, and Keith has sued Sam for breach of contract. Under these facts, Keith should:

A.) win the suit because Sam is dealing in bad faith by not honoring his offer.

B.) win the suit because his acceptance took effect within the duration of the offer.

C.) lose the suit because his acceptance was unconscionable

D.) lose the suit despite the use of the authorized means for communicating his acceptance.

A

D.) lose the suit despite the use of the authorized means for communicating his acceptance.

50
Q

True or False:

Under the law governing common law contracts, consideration may include a promise of something with monetary value, but monetary value is not required.

A

True

51
Q

True or False:

Freddy is Ellen’s real estate agent. Ellen offers to purchase Tanya’s house for $250,000. Freddy presents Ellen’s offer to Tanya and Tanya tells Freddy, “I’ll sell it to Ellen for $260,000.” Freddy informs Ellen of Tanya’s statement. Tanya’s statement to Freddy that she will sell the house to Ellen for $260,000 terminates Ellen’s offer through the use of an implied rejection.

A

True

52
Q

Norberta promises to pay her assistant Oliver $3,000 a month for the next 10 months in consideration for the research he is to provide for her literary project during that time period. If Oliver provides the research and Norberta never pays Oliver. Norberta is:

A.) not liable, because the consideration is in the past.

B.) not liable, because the consideration was unintentional.

C.) liable for payment of the $3,000 per month

D.) liable only if Norberta stops her literary work

A

C.) liable for payment of the $3,000 per month

53
Q

On Mitch’s 18th birthday, he decides that he no longer wants to keep a car he bought from Paulie’s Autos, when he was 17 years old. Mitch’s right to disaffirm the deal will depend on:

A.) the car’s current condition

B.) the car’s condition when he bought it

C.) whether Paulie’s has the right to revoke.

D.) whether he acts within a reasonable amount of time after turning 18.

A

D.) whether he acts within a reasonable amount of time after turning 18.

54
Q

Barb sent Sally a letter offering to sell Sally her bike for $50. Sally left the letter on her nightstand where her roommate April saw it. After reading the letter, April wrote to Barb and stated that she (April) wanted to accept Barb’s offer. Which of the following is most correct?

A.) Barb and Sally have a contract for the purchase of Barb’s bike.

B.) Barb must sell April her bike, unless Barb is intoxicated.

C.) There is no contract between Barb and April because Barb communicated her offer to Sally not April.

D.) April’s letter is a valid acceptance of Barb’s offer.

A

C.) There is no contract between Barb and April because Barb communicated her offer to Sally not April.

55
Q

In a bilateral contract, the consideration for each promise is ______.

A.) actually doing the act called for in the contract

B.) an invitation to negotiate

C.) a return promise

D.) forbearance

A

C.) a return promise

56
Q

Which of the following is recognized by a court to prevent one party from being unjustly enriched at the expense of another party when there is not actual contract?

A.) promissory estoppel

B.) Unilateral contract

C.) An implied contract

D.) none of these

A

D.) none of these

Quasi-contracts not actually contracts. Rather, to prevent one party from being unjustly enriched at the expense of another, the courts impose contractual obligations on one of the parties as if that party had entered into a contract.

57
Q

Jeff advertises a reward for the return of his lost puppy. Manfred, reads the advertisment and knows of the reward, he then finds and returns the puppy. Manfred can recover the reward because he:

A.) already returned the puppy creating a voidable contact.

B.) did know of the reward when he found and returned the puppy, and thereby created a valid unilateral contract.

C.) did know of the reward when he found and returned the puppy and thereby created a valid bilateral contract.

D.) failed to confer a benefit on Jeff by returning the puppy

A

B.) did know of the reward when he found and returned the puppy, and thereby created a valid unilateral contract.

58
Q

Tue or False:

Sam is an adult who has a legal guardian named Tasha, this means that Sam can freely enter into binding contracts without involvement by Tasha.

A

False

59
Q

True or False:

An offer to enter into a contract requires a subjective manifestation of intent to be bound by the terms of the offer.

A

False

60
Q

True or False:

Contract law requires that the contracting parties each give something of legal value.

A

True

61
Q

The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract.

A

promissory estoppel

62
Q

Luka and Jim enter into a contract for the sale of a cottage about which Luka fraudulently misrepresents a number of material facts. Luka even tells Jim that her commission on the sale is 6 percent, but their signed, written contract states “12%”. The Statute of Frauds governs:

A.) Contracts that must be in writing to be enforceable.

B.) The admissibility in court of oral evidence

C.) The reformation of oral and written statements when there is a conflict.

D.) Contracts that are induced by fraud.

A

A.) Contracts that must be in writing to be enforceable.

63
Q

Gail offers to sell Paul a bike that Gail found in her driveway. She and Paul look at the bike and decide that they are not sure what kind of bike it is, and agree it is probably just a cheap 3 speed bike. Paul pays Gail $10 for the bike. The bike turns out to be an electric bike worth much more than $10. Gail wants the bike back, and Paul refuses. If Gail files a lawsuit aganist Paul what is the most likely result?

A.) The bike will be returned to Gail because of unilateral mistake.

B.) The bike will be returned to Gail because of mutual mistake.

C.) The bike will remain with Paul unless Gail can establish that she was negligent in not recognizing the bike’s true value.

D.) The bike will remain with Paul because the parties contracted on the assumption that they did not know the value of the bike.

A

D.) The bike will remain with Paul because the parties contracted on the assumption that they did not know the value of the bike.

64
Q

Jan and Karl contract for the sale of Jan’s horse for $400. Both parties reasonably believed that the horse was unable to produce offspring. Before the contract is executed it is discovered that the horse is pregnant. This is most likely an example of:

A.) Unilateral mistake

B.) Mutual mistake

C.) Intentional misrepresentation

D.) Innocent misrepresentation

A

B.) Mutual mistake

65
Q

Which of the following involve(s) the active hiding of the truth about a material fact?

A.) Concealment, nondisclosure, or negligence

B.) Concealment

C.) Negligence

D.) Nondisclosure

A

B.) Concealment

66
Q

True or False:

Intent to deceive is not an element of fraud.

A

False

67
Q

The principle that holds that an acceptance is valid when it is placed in the mailbox, whereas a revocation is effective only when received by the offeree. In some jurisdictions, the mailbox rule has been expanded to faxes.

A

mailbox rule

68
Q

True or False:

A mistake of fact cannot be unilateral.

A

False

69
Q

Cathie is Dan’s professor, Cathie takes advantage of her dominant position in the relationship to unduly persuade Dan to buy her a very expensive new laptop computer? Cathie has most likely engaged in:

A.) Fraudulent misrepresentation

B.) Undue influence

C.) Physical duress

D.) Economic duress

A

B.) Undue influence

70
Q

The situation in which one person has taken advantage of his or her dominant position in a relationship to persuade the other person unduly to the extent that the dominant person’s persuasive efforts have interfered with the other person’s ability to make his or her own decision.

A

undue influence

71
Q

Any unlawful act or threat exercised on a person whereby the person is forced to enter into an agreement or to perform some other act against his or her will.

A

duress

72
Q

True or False:

If the purpose of a licensing statute is to raise money for the government (revenue raising) a contract with an unlicensed professional will normally be enforceable.

A

True

73
Q

Elle buys a new textbook for $100, and also buys a shipment of goods for $5000 and signs a mortgage for a house to be paid off in 15 years with payments of $1,000 per month. The Statute of Frauds covers:

A.) The mortgage and the goods

B.) The mortgage only

C.) The textbook and the goods only

D.) The mortgage, the textbook and the goods.

A

A.) The mortgage and the goods

74
Q

A statement releasing one of the parties to an agreement from all liability, regardless of who is at fault or what the injury suffered is, would be referred to as a(n):

A.) adhesion agreement

B.) in pari delicto agreement

C.) exculpatory clause

D.) substantive agreement

A

C.) exculpatory clause

75
Q

when both parties are equally responsible for an illegal agreement, the parties are said to be:

A

in pari delicto

76
Q

True or False:

Making a statement when you are uncertain of its truth can result in an innocent (also known as negligent) misrepresentation claim.

A

True

77
Q

True or False:

Under the Statute of Frauds, all contracts that are not in writing are void.

A

False

only the MYLEGS contracts are governed by the Statute of Frauds

78
Q

Which of the following involves overly harsh or lopsided language in an agreement?

A.) Exculpatory clauses

B.) Adhesion conscionability

C.) Procedural unconscionability

D.) Substantive unconscionability

A

D.) Substantive unconscionability

79
Q

shocking unfairness in the language of the contract

A

Substantive unconscionability

80
Q

True or False:

Forcing someone to enter into a contract through the use of fear created by threats can constitute duress.

A

True

81
Q

Bev is hired to do car parts sales for an auto shop. Shee agrees that if she leaves her employment, she will not work for another parts store within twenty-five miles for a period of two years. This type of agreement is called a(n):

A.) covenant not to compete

B.) implied-in-law contract

C.) termination agreement

D.) quasi-contract

A

A.) covenant not to compete

82
Q

What types of contracts are governed by the statute of frauds?

A

MYLEGS

Marriage

Year (Contracts whose terms prevent possible performance within one Year)

Land

Estate

Goods (over $500)

Secondary (promise to pay someone else’s debt)

83
Q

A person who is not yet a legal adult may use this defense to defuse the guilty-mind requirement of a crime.

A

Infancy

84
Q

The defendant says his or her honest and reasonable mistake about a fact relevant to the commission of the crime negates the idea of a guilty mind.

A

Mistake of fact

85
Q

The defendant says he or she took an intoxicant without awareness of its likely effect, mistook its identity, or took the intoxicant under force.

A

Intoxication

86
Q

The defendant had a severe mental illness that substantially impaired the defendant’s capacity to understand and appreciate the moral wrongfulness of the act.

A

Insanity

87
Q

The defendant would not have committed the crime or broken the law if not induced or tricked into doing so by law enforcement officers.

A

Entrapment

88
Q

A doctrine that allows the judge or jury to infer that, more likely than not, the defendant’s negligence was the cause of the plaintiff’s harm, even though there is no direct evidence of the defendant’s lack of due care.

A

res ipsa loquitur

89
Q

A doctrine that allows a judge or jury to infer duty and breach of duty from the fact that a defendant violated a criminal statute that was designed to prevent the type of harm that the plaintiff incurred.

A

negligence per se

90
Q

To prove negligence, a plaintiff must demonstrate:

A

Duty

Breach of duty

Causation—actual and proximate

Damages

91
Q

What are the elements of the offer?

A

intent

definite and certain terms

communication to the offeree.

92
Q

What are the elements of the acceptance?

A

A manifestation of intent to be bound by the acceptance to the contract

Agreement to the definite and certain terms of the offer

Communication to the offeror.

93
Q

True or False:

In an auction without reserve, the seller is treated as making an offer to accept the highest bid. Thus, the seller must accept the highest bid.

A

True

94
Q

The principle that holds that the terms of the acceptance must mirror the terms of the offer; if the terms of the acceptance do not mirror the terms of the offer, no contract is formed, and the attempted acceptance is a counteroffer.

A

mirror-image rule

95
Q

True or False:

In general, when an ad specifies a limited quantity and provides a specific means by which the offer can be accepted, the courts will treat the ad as an offer

A

True

96
Q

A contract that becomes enforceable only on the happening or termination of a specified condition.

A

conditional contract

97
Q

What are the three types. of conditions?

A

condition precedent

condition subsequent

and concurrent conditions

98
Q

An event that must occur or an action that must be taken before a party’s duty arises.

A

Condition Precedent

A life insurance company is only required to pay out the beneficiaries of a life insurance plan after the contract-holder has died*

99
Q

A future event that terminates a party’s duty when it arises.

A

Condition Subsequent

Non-compete clauses (NCC) between employers and their current or former employees often have expiration dates.

100
Q

When each party’s duty is conditioned upon the performance of the other, meaning each party’s duty must be performed simultaneously.

A

Concurrent Conditions

A buyer’s duty to pay for a good is conditioned upon a seller’s duty to deliver that good, and vice versa.

101
Q

(Strict Liability)
What conditions must be satisfied in order to hold an individual liable without fault

A

(1) it involves a risk of serious harm to people or property

(2) it is so inherently dangerous that it cannot ever be safely undertaken

(3) it is not usually performed in the immediate community.