Business Law (OFFICIAL) Flashcards by Joshua Mercado

As to common law offers, an acceptance that is materially different from the term of the offer is

(a) An acceptance of the offer if it is timely
(b) An acceptance but only the offeror’s terms apply to the contract
(c) A revocation of the offer
(d) A rejection of the offer

(d) A rejection of the offer.

How well did you know this?

Not at all

Perfectly

To prove assault, the plaintiff must establish that!

(a) The threatened contact took place
(b) The threatened unwanted touch took place
(c) The threatened offensive contact took place
(d) The fear of an immediate threat of a harmful or offensive touching happened.

(d) The fear of an immediate threat of a harmful or offensive touching happened.

How well did you know this?

Not at all

Perfectly

Under section 402A of the “Restatement (second) of Torts”

(a) It is easy for the seller to disclaim liability in sales to consumers
(b) The plaintiff must prove a breach of duty on the defendants part
(c) Only economic damages can be recovered
(d) Design defect & failure to wan suits are possible.

How well did you know this?

Not at all

Perfectly

Tom discovered that Gallop Motors had made fraudulent statement that had induced him to buy a car from them. Are result Tom may

(a) Resigned the contract
(b) File a tort action based on fraud
(c) Resigned the contract or file a tort action based on fraud
(d) All of the above

(d) All of the above

How well did you know this?

Not at all

Perfectly

In an action for breach of contract, the statue of limitation time period would be computed from the date of the:

(a) Breach of the contract
(b) Signing of the contract
(c) Start of negotiation of the contract.
(d) Commencement of the court action.

(a) Breach of the contract

How well did you know this?

Not at all

Perfectly

(6) Criminal Law:

Defines public wrongs prohibited by a state or federal government.

How well did you know this?

Not at all

Perfectly

Which of the following statements is correct concerning compensatory damages?

(a) Courts generally award damages where the defendant’s behavior is particularly bad.
(b) Courts will not awards damage if the plaintiff’s loss is speculative.
(c) Courts generally award the amount of damages that the plaintiff requests.
(d) Courts will often only award actual expenses incurred by plaintiffs.
(e) More than one of the above is correct.

(b) Courts will not awards damage if the plaintiff’s loss is speculative.

How well did you know this?

Not at all

Perfectly

Which of the true statements concerning offers except.

(a) An offer that contains no duration term is open for a reasonable time.
(b) As a general rule, a newspaper ad starting the price of the advertised goods is not an offer to sell the goods at the stated price.
(c) The death of the offeror terminates the offer
(d) An offer may be revoked after it has been accepted.

(d) An offer may be revoked after it has been accepted.

How well did you know this?

Not at all

Perfectly

Knowing that X idolizes ice skaters. Amy tries to sell her car to X by telling her that a professional ice skater once rode in the car. Relying on Amy’s representation X buys the cars.

(a) Amy’s statement to X was material fact
(b) Amy knew that X would likely rely on her statement in buying the car, but the fact was really immaterial
(c) Since most buyers would not buy a car just because a professional ice skater once rode in the vehicle, this fact is not material.
(d) Amy’s statement is neither material or immaterial.

(a) Amy’s statement to X was material fact

How well did you know this?

Not at all

Perfectly

When a lengthy delay has occurred between the breach of a contract and the commencement of lawsuit, the statute of limitations defense may be raised. The statue –

(a) Is three years irrespective of the type of legal action the plaintiff is bringing.
(b) Does not apply to an action brought in a court of law.
(c) Is a defense to recovery if the requisite period of time with in which to commence the lawsuit has elapsed
(d) Is applicable only if the contract involves frauds

How well did you know this?

Not at all

Perfectly

Much to Mrs. Howell’s dismay, her beloved Howell’s signs offer $500 to find his dog. Marry except his offer.

Yes, Marry will get $500, when she brings his dog.

How well did you know this?

Not at all

Perfectly

Karen offers to sell Grace five pairs of Jimmy Chu shoes she has never worn. Grace decides to consider the offer. However, before Grace has a chance to accept, Karen changes her mind and tells Grace that she revokes her offer. Grace becomes angry and tells Karen that she (Karen) had no right to revoke the offer before Grace had made a decision about the shoes. Is Grace correct?

a. Yes, because an offer has to remain open until it has been accepted or rejected.
b. Yes, because the person to whom the offer was made decides how long the offer will remain open.
c. No, because Karen is the owner of the shoes.
d. No, because Karen can revoke her offer any time before Grace accepts.

d. No, because Karen can revoke her offer any time before Grace accepts.

How well did you know this?

Not at all

Perfectly

Which of the following statements is true?

a. To accept an offer to enter into a unilateral contract, the offeree must first give notice of acceptance of the offer.
b. To accept an offer to enter into a bilateral contract, the offeree must perform the act requested by the offeror.
c. To accept an offer to enter into a unilateral contract, the offeree must make the promise requested by the offeror.
d. To accept an offer to enter into a bilateral contract, the offeree must make the promise requested by the offeror.

To accept an offer to enter into a bilateral contract, the offeree must make the promise requested by the offeror.

How well did you know this?

Not at all

Perfectly

While performing their professional duties, doctors, lawyers, and accountants must generally exercise the knowledge, skill, and care of:

a. the average reasonable person.
b. those in the profession.
c. the basic person.
d. the common person.

b. those in the profession.

How well did you know this?

Not at all

Perfectly

During a televised, title prize fight at a Las Vegas hotel, Oscar threw a punch which hit Mike in the face. As a result:

a. Since Mike consented to the fight, he has no legal action against Oscar.
b. Mike will win his lawsuit if he sues Oscar for battery.
c. Mike will win his lawsuit if he sues Oscar for assault and battery.
d. Mike will win his lawsuit if he sues Oscar for assault.

a. Since Mike consented to the fight, he has no legal action against Oscar.

How well did you know this?

Not at all

Perfectly

Pip owns Great Expectations, a restaurant in West Hollywood. Pip enters a contract with Estella, a meat supplier. Estella gives Pip a form supply contract to sign which contains an arbitration clause. The clause states that “Miss Havisham will serve as an arbitrator for any dispute arising from this contract.” Pip does not know that Miss Havisham is Estella’s aunt. Estella delivered a shipment of meat that Pip believed was defective. Estella contended that the shipment fulfilled her obligation under their contract. In accord with the contract arbitration provision, the dispute between Pip and Estella was submitted to Miss Havisham. After Miss Havisham filed her decision in favor of Estella, Pip discovered her relationship to Estella. Which of the following statements is most accurate?

a. Since Pip agreed to have Miss Havisham as the arbitrator, her award is binding
b. Pip may be able to have the arbitration award overturned because of Miss Havisham’s
undisclosed partiality to Estella.
c. Estella is allowed to choose a trusted family member to mediate any dispute she is involved in.
d. Only courts may order arbitration, so Pip is free to sue Estella in civil court.

b. Pip may be able to have the arbitration award overturned because of Miss Havisham’s
undisclosed partiality to Estella.

How well did you know this?

Not at all

Perfectly

a. Independent Car Repair breached the contract by failing to correctly fix the brakes. Its owes damages of $12,400; $400 for the cost of the inadequate repair. It owes the additional $12,000 since it is foreseeable that a poor brake repair could result in complete destruction of a car.
b. Independent Car Repair breached the contract by failing to correctly fix the brakes. It owes Randi a refund of $400 for that breach. A court would probably find that it did not owe Randi the $12,000 since Randi had a duty to mitigate her contractual damages by reducing the risk of further damage; i.e.returning the car for repair.
c. Randi breached the contract by driving the car while it was not in good repair. She is owed nothing by Independent Car Repair and is not entitled to a refund of her $400.
d. Randi breached the contract by driving the car while it was not functioning properly. She owes Independent Car Repair the $12,000 since the car was destroyed.

b. Independent Car Repair breached the contract by failing to correctly fix the brakes. It owes Randi a refund of $400 for that breach. A court would probably find that it did not owe Randi the $12,000 since Randi had a duty to mitigate her contractual damages by reducing the risk of further damage; i.e.returning the car for repair.

How well did you know this?

Not at all

Perfectly

Bill has decided to sell his car, but he knows that the radiator leaks. He pours “Stop Leak” into the radiator, which temporarily prevents the leak. Bill does not tell the buyer about the radiator problem. Bill’s action:

a. is equivalent to making an untrue assertion.
b. is not the concealment of a fact
c. is likely an innocent misrepresentation.
d. is not actionable but may be considered unethical.

a. is equivalent to making an untrue assertion.

How well did you know this?

Not at all

Perfectly

Catherine, a new property owner, was told by the previous owner that the home she purchased had no termites and no termite damage. One month after taking possession of the property, Catherine knew that her home was infested with termites because she saw evidence of their presence. In addition, an exterminator told her that the pests had caused damage to the wood structure. However, Catherine loved her home and lived in the home for ten more years. When Catherine decided to relocate, she filed a lawsuit against the previous owner based on fraud. As a result, Catherine will:

a. lose her lawsuit.
b. win her lawsuit.
c. win her lawsuit for rescission.
d. win her lawsuit for damages.

a. lose her lawsuit.

How well did you know this?

Not at all

Perfectly

Regarding a statute of limitations, all of the following statements are true except:

a. The operation of a statute of limitations may prohibit a court from exercising its power to hear a particular case.
b. A statute of limitations requires that the person wronged must diligently pursue his or her legal remedies.
c. A statute of limitations is a rule that establishes a time limit within which one must pursue his or her legal remedies.
d. The time limit for filing a particular type of claim is uniform throughout the various state jurisdictions.

d. The time limit for filing a particular type of claim is uniform throughout the various state jurisdictions.

How well did you know this?

Not at all

Perfectly

In a contract cause of action, which of the following statements correctly applies to a typical statute of limitations?

a. The statute requires that a legal action for breach of contract be commenced within a certain period of time after the breach occurs.
b. The statute provides that only the party against whom enforcement of a contract is sought must have signed the contract.
c. The statute limits the right of a party to recover damages for misrepresentation unless the false statements were intentionally made.
d. The statute prohibits the admission into evidence of proof of oral statements about the meaning of a written contract.

a. The statute requires that a legal action for breach of contract be commenced within a certain period of time after the breach occurs.

How well did you know this?

Not at all

Perfectly

Civil law regulates:

a. rights and duties between persons in our society.
b. behavior so threatening that society outlaws it altogether.
c. etiquette.
d. criminal behavior.

a. rights and duties between persons in our society.

How well did you know this?

Not at all

Perfectly

Jake is wrongfully terminated from his job. Which of the following is an example of compensatory damages that he might expect to recover?

a. The costs of taking a vacation to recover from the emotional distress of being fired.
b. The cost of copying 500 new resumes.
c. The costs of a new wardrobe for future interviews.
d. The cost of taking flying lessons.

b. The cost of copying 500 new resumes.

How well did you know this?

Not at all

Perfectly

All of the following are true statements concerning offers except:

a. An offer that contains no duration term is open for a reasonable time.
b. As a general rule, a newspaper ad stating the price of the advertised goods is not an offer to sell the goods at the stated price.
c. The death of the offeror terminates the offer.
d. An offer may be revoked after it has been accepted.

d. An offer may be revoked after it has been accepted

How well did you know this?

Not at all

Perfectly

Celine was driving her new Mars Motor Company SUV down to Balboa Island for the Memorial Day holiday. Celine’s sister, Barbara, was in the car with Celine when one of the tires on the SUV had a blowout. As a result of the tire blowout, Celine lost control of the car and it flipped over several times before coming to rest on the shoulder of the Pacific Coast Highway. Celine and her sister Barbara were both severely injured. The tire, manufactured by Brimstone Tire Company was found to have a defect in the steel tread. It was this defect that caused the tire to blowout. In a strict products liability lawsuit: a. Barbara has no possible recovery against Mars Motor Co. or Brimstone Tire Company because she was not driving the SUV when the blowout occurred. b. Celine can only sue Mars Motor Company because it is the manufacturer of the SUV. c. Celine can sue either or both Mars Motor Company and Brimstone Tire Company. Breach of duty owed by the defendants to her is irrelevant in the case. d. Celine can sue either or both Mars Motor Company and Brimstone Tire Company but to prevail in the case she must establish that each of the defendants breached a duty they owed to her.

c. Celine can sue either or both Mars Motor Company and Brimstone Tire Company. Breach of duty owed by the defendants to her is irrelevant in the case.

Marks: 1 Lindy wanted to sell her engagement ring because she no longer wanted to marry her fiance. When Lindy’s fiance proposed, he told her that the gem was a diamond set in 14-karat gold. Later, Lindy doubted the truth of this statement when she discovered that her fiance had lied to her on many occasions. Lindy sold the ring to Jean asserting that the gem was a diamond set in 14- karat gold. Jean later found out that the gem was not a diamond and that the ring was actually gold plated. Therefore, it was worth less than what Jean had paid Lindy. As a result: a. Lindy knew her statement was false and therefore fraud exists. b. Since Lindy was told by her former finace that the gem was a diamond set in 14-karat gold, she made no misrepresentation to Jean. c. Lindy’s lack of confidence in the truth of her statements can be used to establish a fraud action against her. d. Lindy cannot be held liable if her fiance lied to her.

c. Lindy’s lack of confidence in the truth of her statements can be used to establish a fraud action against her.

Carol offered to sell her house to Leonard for $500,000. Leonard replied, in writing, that he accepted Carol’s offer if she would replace the HVAC (heating, venting, and air conditioning unit) and install a new roof. Under these circumstances: a. Carol made an offer which Leonard accepted. b. Leonard made an offer which Carol rejected. c. Leonard made an offer which Carol accepted. d. Carol made an offer to which Leonard made a counteroffer.

d. Carol made an offer to which Leonard made a counteroffer.

The Yaca Cola Company, which manufactures soft drinks, included the following in their ads, “Find the gold medal and win $1,000.” Attached to the inside of each Yaca Cola can was either a gold or silver medal. Those having a gold medal, therefore, were eligible for the $1,000 prize. Dwayne saw the ad but did not buy a Yaca Cola. Instead, he wrote to Yaca Cola Company, “ I accept your offer! I’ll find a can of Yaca Cola with a gold medal! Please immediately send me $1,000.” Under these circumstances: a. Yaca Cola made an offer for a bilateral contract, which Dwayne accepted through his promise. They have a contract. Yaca must pay Dwayne $1,000. b. Yaca Cola made an offer for a unilateral contract, which Dwayne accepted through his promise. They have a contract. Yaca must pay Dwayne $1,000. c. Yaca Cola made an offer for a unilateral contract. In order to accept Yaca’s offer, Dwayne must find and return a gold medal to Yaca Cola Company. Until then, they do not have a contract. Yaca Cola does not have to pay Dwayne $1,000 until and unless he produces a gold medal. d. Yaca Cola has a contract with everyone who read the ad. They owe all readers the $1,000 prize.

c. Yaca Cola made an offer for a unilateral contract. In order to accept Yaca’s offer, Dwayne must find and return a gold medal to Yaca Cola Company. Until then, they do not have a contract. Yaca Cola does not have to pay Dwayne $1,000 until and unless he produces a gold medal.

Anderson threw a knife at Wilbur, but Wilbur ducked down and the knife hit Sue in the arm. As a result: a. Since Anderson intended to strike Wilbur, Anderson has no tort liability to Sue. b. Since Anderson intended to strike Wilbur, Wibur may sue for battery. c. Even though Anderson had no intent to hit Sue, she can sue him for battery. d. All of the above.

c. Even though Anderson had no intent to hit Sue, she can sue him for battery.

Abnormally dangerous activities may include: a. crop dusting. b. stunt flying. c. transporting active nuclear waste by truck. d. all of the above are abnormally dangerous activities.

d. all of the above are abnormally dangerous activities.

Joe contracts with Wiley Insurance Company for automobile insurance. Wiley gives Joe a preprinted Insurance Policy form to sign. Joe notices that the policy form contains a clause entitled, “Dispute Avoidance”. This clause requires that the parties submit all disputes arising out of the contract to binding arbitration. Joe asks Wiley the meaning of this clause. Wiley replies: “It means that if you have a problem with me or my insurance company, I promise to enter into a quick settlement with you.” Wiley does not perform under the contract, and Joe wants to sue Wiley and his insurance company. Which of the following statements is most accurate? a. Joe will have to negotiate a settlement with Wiley. b. Joe may be able to ask a court not to enforce an arbitration clause in this dispute based on Wiley’s false statements. c. Joe will be bound by an arbitrator’s decision. d. The arbitrator will help Joe and Wiley negotiate a settlement.

b. Joe may be able to ask a court not to enforce an arbitration clause in this dispute based on Wiley’s false statements.

In product liability suits based on a negligence theory, a retailer is most likely to have a duty to inspect goods that it buys from others and resells to consumers when: a. The retailer is a seller with respect to those goods. b. The retailer also prepares and installs those goods. c. The goods are packaged in cardboard containers. d. The goods cost more than $500 per item.

b. The retailer also prepares and installs those goods.

Lucy ordered a special shower door from Reseda Glass, Inc. Lucy ordered the shower door to be etched, “Lucy and Rick forever” with a heart around it and designed to fit the non-standard size of her shower. She paid a deposit of $250, with an additional $500 to be paid on delivery. Later, Lucy refused to accept delivery of the door, although it had been made as agreed. Under these circumstances: a. Lucy owes Reseda Glass $500. Reseda Glass had no duty to mitigate damages since it is unlikely that a substitute buyer could be found for specially-fabricated, personalized goods. b. Lucy owes nothing. Reseda Glass has a duty to mitigate damages by attempting to locate other couples named Lucy and Ricky with similarly-sized shower stalls and to sell them the door. c. Reseda Glass owes Lucy a refund of her $250. By personalizing the customized door, they should have foreseen that it was unlikely that substitute buyers could be located. d. There is no duty to mitigate unless the contract is fully performed.

a. Lucy owes Reseda Glass $500. Reseda Glass had no duty to mitigate damages since it is unlikely that a substitute buyer could be found for specially-fabricated, personalized goods.

A buyer contracted to purchase a house that according to the seller was possessed with ghosts. Assume that this is a material fact. The seller did not tell the buyer this fact. Based on these facts, which of the following statements is correct? a. The seller did not have a duty to disclose the fact that ghosts were present in the house. b. Although the buyer did not have access to the information regarding the ghosts, the seller had no duty to reveal this fact. c. The seller had a duty to disclose the fact that ghosts were present in the house. d. The seller of real estate has no duty to disclose this type of information to the buyer.

c. The seller had a duty to disclose the fact that ghosts were present in the house.

Fraiser offers to sell Niles a few bottles from his prized wine collection in exchange for Niles’ collector’s edition of Tom Sawyer. Niles says he is interested in the wine, but only in exchange for his collector’s edition of Huckleberry Finn. Niles then changes his mind and attempts to accept Frasier’s original offer. Under these circumstances, has a contract been formed? a. No, because once Niles made a counteroffer, he terminated his ability to accept Frasier’s original offer. b. No, because Frasier does not like Huckleberry Finn. c. Yes, because Niles accepted Frasier’s offer. d. Yes, because Huckleberry Finn and Tom Sawyer were written by the same author.

a. No, because once Niles made a counteroffer, he terminated his ability to accept Frasier’s original offer.

Ralph offered to sell his car to Justin. They agreed on the price, time and place of the transfer. Then Justin said, “Oh, and be sure to have the pink slip.” (i.e. proof of ownership of the car) Under these circumstances: a. Ralph made an offer which Justin acccepted. The requirement for producing proof of ownership would be implied in the original agreement, therefore it does not constitute a material change to the contract. b. Ralph made an offer. When Justin added the condition regarding proof of ownership, he made a material alteration to the offer. Thereofore he made a counteroffer which Ralph may accept or reject. c. Ralph made an offer. Justin rejected his offer. d. Ralph failed to make an offer since the terms do not comply with the Uniform Commercial Code (UCC).

a. Ralph made an offer which Justin acccepted. The requirement for producing proof of ownership would be implied in the original agreement, therefore it does not constitute a material change to the contract.

Black owned and resided on the premises at 1803 North Monroe Street in the city of Lawn. He had purchased the house from Green in June 1977. Prior to the sale, Green had heaped several piles of earth mixed with fragments of glass, rocks and other debris in his back yard where it lay in the form of a mound. While Green owned the property, children from the neighborhood began to play on the mound. Among the games devised by the children were “cops and robbers” and “king of the mountain.” They continued to play these games after the sale of the property to Black. One morning while Black was away on vacation, Dennis, ten years of age, joined a group of boys on Black’s property and began playing “cobs and robbers” on the mound. Being a “cop”, Dennis pursued Rusty, a “robber”, and threw a clod of dirt containing broken glass at Rusty. Seeing it coming, Rusty ducked. The clod hit George, a “cop”, on the side of his face. A piece of glass entered George’s eye, seriously impairing his vision. In a civil suit brought by Rusty’s parents, on his behalf, against Dennis, the plaintiffs are likely to have actions for: a. assault. b. battery. c. assault and battery. d. breach of contract.

a. assault.

Stevens intends to scare Zimmer by threatening to shoot him with a gun, which Stevens mistakenly believes is unloaded. When Stevens pulls the trigger he ends up shooting Zimmer in the leg. As a result:

c. Stevens will be liable for battery.

Shaq and Kobe are parties to a business contract containing a binding arbitration clause. A dispute between Shaq and Kobe is submitted to an arbitrator, Pat. After Pat files an award that is in Kobe’s favor, Shaq discovers that Kobe had offered a bribe to Pat which Pat had accepted. Shaq wants to go to court to ask that the arbitration award be overturned. Most likely, Shaq will: a. Not be able to have the award overturned, as the arbitration is binding. b. Ask that the court overturn the award based on the acceptance of the bribe by Pat. c. Have to resort to binding mediation. d. Have to make his appeal to the U.S. Supreme Court.

b. Ask that the court overturn the award based on the acceptance of the bribe by Pat.

Wiebe Manufacturing, Inc. manufactured a paper shredder and belt conveyor system used for recycling waste paper. Donald Dart’s arm was torn off as he attempted to remove some paper that was wedged in the conveyor.& nbsp; Equipping the machine with safety guards would have prevented Dart's injury. In fact, Wiebe has never equipped any of its paper shredders with safety guards. Dart’s best theory of recovery against Wibe Manufacturing, Inc. would be: a. Battery b. Strict product liability - manufacturing defect c. Strict product liability - design defect d. Strict product liablity - packaging defect

c. Strict product liability - design defect

Randi had her brakes fixed by Independent Car Repair. Randi paid $400 for the repair, but immediately noticed that the brakes were not functioning. She continued to drive the car without complaining to Independent Car Repair. The next day, Randi collided into a concrete wall when the brakes failed. Randi was uninjured. However, her $12,000 car was completely destroyed. Under these circumstances: a. Independent Car Repair breached the contract by failing to correctly fix the brakes. Its owes damages of $12,400; $400 for the cost of the inadequate repair. It owes the additional $12,000 since it is foreseeable that a poor brake repair could result in complete destruction of a car. b. Independent Car Repair breached the contract by failing to correctly fix the brakes. It owes Randi a refund of $400 for that breach. A court would probably find that it did not owe Randi the $12,000 since Randi had a duty to mitigate her contractual damages by reducing the risk of further damage; i.e. returning the car for repair. c. Randi breached the contract by driving the car while it was not in good repair. She is owed nothing by Independent Car Repair and is not entitled to a refund of her $400. d. Randi breached the contract by driving the car while it was not functioning properly. She owes Independent Car Repair the $12,000 since the car was destroyed.

A buyer contracted to purchase a house that according to the seller was possessed with ghosts. Assume that this is a material fact. The seller did not tell the buyer this fact. Based on these facts, which of the following statements is correct: a. The seller did not have a duty to disclose the fact that ghosts were present in the house. b. Although the buyer did not have access to the information regarding the ghosts, the seller had no duty to reveal this fact. c. The seller had a duty to disclose the fact that ghosts were present in the house. d. The seller of real estate has no duty to disclose this type of information to the buyer.

c. The seller had a duty to disclose the fact that ghosts were present in the house.

Regarding a statute of limitations, all of the following statements are true except: a. The purpose of a statue of limitations is to require speedy legal relief of known claims. b. A statute of limitations is designed to ensure that claims will be resolved while evidence is available and fresh. c. Failure to file a lawsuit within the time limit defined in a statute of limitations will not result in the loss of the right to bring the lawsuit. d. The statute of limitations time period within which one must file his or her lawsuit varies according to the nature of the case involved.

c. Failure to file a lawsuit within the time limit defined in a statute of limitations will not result in the loss of the right to bring the lawsuit.

Regarding a statute of limitations, all of the following statements are true except: a. Statutes of limitation have been enacted by both Congress and state legislatures for most civil and criminal cases. b. The statute of limitations time limit for filing a particular type of claim is not uniform throughout the various state jurisdictions. c. A statute of limitations allows the injured or wronged party to take as much time he or she needs to pursue his or her legal remedies. d. The statute of limitations time period within which one must file his or her lawsuit varies according to the nature of the case involved.

c. A statute of limitations allows the injured or wronged party to take as much time he or she needs to pursue his or her legal remedies.

Regarding criminal law, all of the following statements are true except: a. Criminal law defines public wrongs prohibited by a state or the federal government. b. Criminal law is comprised of principles and rules intended to protect all of society. c. Failure to meet standards of conduct specified by the criminal law can result in prosecutions being brought in the name of the state or federal government. Span d. Criminal law defines the rights and duties that exist between private parties.

d. Criminal law defines the rights and duties that exist between private parties.

Civil Law:

Defines the rights and duties that exist between private parties.

All of the following are true statements concerning breach of contract except: a. A breaching party is responsible for paying those losses that were foreseeable to them at the time of the contracting. b. Plaintiffs injured by a breach of contract have the duty to mitigate (avoid or minimize) damages. c. A party can recover damages only for those losses that he can prove with reasonable certainty. d. A breaching party will usually have to pay punitive damages.

d. A breaching party will usually have to pay punitive damages.

To be enforceable, contracts for the sale of goods must be in writing: a. only if the purchase amount equals or exceeds $500. b. under all circumstances. c. only if the purchase amount equals or exceeds $1,000. d. Both “a” and “b”are

a. only if the purchase amount equals or exceeds $500.

Susie bought a chainsaw from Retailer who had obtained it from Wholesaler. The chainsaw was equipped with a defective chain. Susie’s husband, Victor, injured his hand when the chain broke during ordinary use of the chainsaw by Victor. No one (Retailer, Wholesaler, Susie or Victor) knew that the chainsaw was defective. In a strict products liability action in tort by Victor: a. Victor can only sue Susie because she is the one who provided him with the chainsaw. b. Victor can sue no one because he was not the purchaser of the chainsaw. c. Victor can only sue Retailer because Susie purchased the chainsaw from the Retailer. d. Victor can sue anyone who falls into the category of a “seller.”

d. Victor can sue anyone who falls into the category of a “seller.”

Buddy told Andy that the roof of his cabin was “practically new” and that there were no water leaks. Buddy was lying as he tried to convince Andy to purchase his cabin. As Buddy and Andy were inspecting the cabin, Andy saw that many roof shingles were missing, exposing the underlying tarpaper on the roof. Nevertheless, Andy purchased Buddy’s cabin believing that the roof did not need to be repaired or replaced. With the first winter storm, Andy learned that the roof severely leaked. Consequently, he had to place buckets in the living room to catch the water. In this situation: a. Andy actually and justifiably relied on Buddy’s statements and will be able to rescind the contract. b. Andy will not be able to rescind the contract. c. When Andy repairs or replaces the roof, he will be able to successfully sue Buddy for rescission or for damages. d. Buddy lied intentionally and therefore must reimburse Andy for repairs to the cabin roof

a. Andy actually and justifiably relied on Buddy’s statements and will be able to rescind the contract.

In order to have a contract, an offeror must make an offer which is: a. Rejected. b. Terminated. c. Accepted. d. Revoked

c. Accepted.

The Squeaky Clean Car Wash issues “frequent washer” cards to its customers and stamps the card every time a customer pays for a car wash. Once the card has been stamped 10 times, the customer receives a free car wash. In issuing the frequent washer cards, Squeaky Clean has made: a. An offer to enter into a bilateral contract, because the parties exchange promises. b. An offer to enter into a bilateral contract, because Squeaky Clean provides car washes and the customers purchase them. c. An offer to enter into a unilateral contract, because two proimses are exchanged. d. An offer to enter into a unilateral contract, because the contract will only be created if a customer purchases 10 car washes and gets 10 stamps on the card.

d. An offer to enter into a unilateral contract, because the contract will only be created if a customer purchases 10 car washes and gets 10 stamps on the card.

Returning from work one afternoon, Mrs. Sims parked her Ford automobile on a steep roadway in front of her home. She parked her car without engaging her emergency parking brake. While Mrs. Sims was in her house, the car gradually began to roll downhill. As Allen, a ten-yer-old boy, ran into the street to retrieve a frisbee, he was struck by the rolling vehicle, which he failed to see. In a suit brought by Allen’s parents on his behalf for personal injuries, Mrs. Sims will most probably: a. be relieved of liability, because Allen is under the age of majority. b. be relieved of liabilty, because her negligence was not the legal cause of Allen’s injuries. c. be relieved of liability, because it was not foreseeable that the car would move and cause any undue harm. d. be found liable, because she acted negligently.

d. be found liable, because she acted negligently.

Jim's doctor told him that his new medication might make him sleepy and he should avoid driving until he learned its effect. Ignoring the doctor’s advice, Jim picked up his prescription and immediately took a pill, hoping he would feel better. Ten minutes later while Jim was driving his car, he became sleepy and got into an automobile accident with Dusty. Under these circumstances: a. Jim breached his duty to Dusty to act as a reasonable person. b. Jim did not breach his duty to Dusty since a reasonable person would take a needed medication to feel better. c. Dusty breached his duty to Jim. d. Jim will be liable to Dusty for battery.

a. Jim breached his duty to Dusty to act as a reasonable person.

Arbitration: a. Is less formal than court proceedings. b. Requires less formalities and procedural rules than court proceedings. c. May result in binding or non-binding awards, depending on the circumstances. d. All of the above are correct.

d. All of the above are correct.

Prometheus was injured by asbestos contained in a product manufactured by Vulcan, packged by Helios, and distributed by Moira. Prometheus, who is unable to determine who a. Only Vulcan. b. Only Vulcan and Helios. c. Vulcan, Helios and Moira. d. None of the above is correct.

d. None of the above is correct.

Samantha entered a one-year written rental agreement with Northridge Properties, Inc. The rent for her apartment was $1,000 per month. After four months, Samantha moved out, although the apartment remained habitable and in good repair. The apartment was vacant for two months, after which time Northridge Properties rented it to Pablo for $1,000 per month for the following six months. Under these circumstances: a. Samantha owes Northridge Properties, Inc. $8,000 since she breached the contract. b. Samantha owes Northridge Properties, Inc. nothing since she did not breach the contract. c. Samantha owes Northridge Properties, Inc. $2,000 since that was its actual loss resulting from her breach, provided that Northridge Properties acted in good faith in tyring to re-rent the apartment after Samantha moved out. d. Samantha owes Northridge Properties, Inc. $10,000 since that was their actual loss resulting from her breach.

c. Samantha owes Northridge Properties, Inc. $2,000 since that was its actual loss resulting from her breach, provided that Northridge Properties acted in good faith in tyring to re-rent the apartment after Samantha moved out.

Knowing that Betsy idolizes ice skaters, Amy tries to sell her car to Betsy by telling her that a professional ice skater once rode in the car. Relying on Amy’s representation, Betsy buys the car. Choose the correct answer below. a. Amy’s statement to Betsy was a material fact. b. Amy knew that Betsy would likely rely on her statement in buying the car, but the fact was really immaterial. c. Since most buyers would not buy a car just because a professional ice skater once rode in the vehicle, this fact is not material. d. Amy’s statement is neither material nor immaterial.

a. Amy’s statement to Betsy was a material fact.

In a strict liability case, the plaintiff is not required to prove: a. Intent. b. Recklessness. c. Negligence. d. Any of the above.

d. Any of the above.

Regarding a statute of limitations, all of the following statements are true except: a. The operation of a statute of limitations may prohibit a court from exercising its power to hear a particular case. b. A statute of limitations requires that the person wronged must diligently pursue his or her legal remedies. c. A statute of limitations is a rule that establishes a time limit within which one must pursue his or her legal remedies. d. The time limit for filing a particular type of claim is uniform throughout the various state jurisdictions.

d. The time limit for filing a particular type of claim is uniform throughout the various state jurisdictions

Criminal law: a. Defines the rights and duties that exist between private parties. b. Is primarily remedial, rather than punitive, in nature. c. Generally provides remedies for its violation in the form of money damages and or equitable relief. d. Generally provides for punishment by fine or imprisonment for failure to abide by prescribed standards.

d. Generally provides for punishment by fine or imprisonment for failure to abide by prescribed standards.

Compensatory damages may include: a. loss in value. b. any allowable consequential damages. c. any allowable incidental damages. d. all of the above are correct.

d. all of the above are correct.

The statute of frauds provides that: a. Contracts induced by fraud are void. b. Certain contracts must be in writing to be enforced by the court. c. Contracts that misrepresent their subject matter are void. d. All of the above are correct.

b. Certain contracts must be in writing to be enforced by the court.

Hot Stuff Computers advertises their new laptop computer for $3,000. When Rodger goes to the store and says he would like to purchase one, he is told that the store had no more laptop computers. Rodger claims that because he accepted the offer to purchase a laptop computer for $3,000, Hot Stuff is obligated to sell one to him at that price. Is Rodger correct? a. Yes, because Hot Stuff made an offer and Rodger accepted. b. Yes, because Hot Stuff is obligated to sell a laptop computer to any person who wants to purchase one. c. No, because Hot Stuff ran out of laptop computers. Incorrect. d. No, because Rodger made an offer and Hot Stuff did not accept.

a. Yes, because Hot Stuff made an offer and Rodger accepted.

Which of the following is an incorrect statement of the law? a. In determining whether an offeree has accepted an offer, the court looks for the offeree’s subjective intent to enter into a contract. b. Since the offeror is the master of the offer, only he or she may specify what action is required of the offeree to accept the offer. c. An acceptance is a manifestation of assent to the terms of the offer in the manner invited or required by the offeror. d. Only the offeror has the power to specify the precise time, place, and manner in which acceptance is to be communicated.

b. Since the offeror is the master of the offer, only he or she may specify what action is required of the offeree to accept the offer.

Bob and Lisa entered into an agreement whereby Bob would sell Lisa $1,000 of crack cocaine, an illegal substance. This is an example of a : a. voidable contract. b. void contract. c. bilateral contract. d. unilateral contract.

b. void contract.

During a basketball game, as a Matador basketball player was dribbling the ball, a player from the opposing team slugged him in order to get the ball. As a result of this act there was: a. A crime and a tort of battery. b. Only a crime. c. Only a tort of battery. d. No crime or tort of battery since both players voluntarily consented to participating in the basketball game.

c. Only a tort of battery.

Doris locks Phil in a third floor room. Phil sues Doris for false imprisonment. Which of the following statements is true? a. Doris would escape liability if she let Phil out of the room after one hour. b. According to some courts, Doris would escape liabilty if Phil slept through the entire period that the door was locked and thus was unaware that he was being detained. c. Even if Phil could have easily escaped through an open window, Doris is still liable. d. Doris would not be liable if Phil could have escaped by traveling two miles through a narrow sewer line that periodically floods with water.

b. According to some courts, Doris would escape liabilty if Phil slept through the entire period that the door was locked and thus was unaware that he was being detained.

Paul filed a lawsuit for false imprisonment against Dan’s Bookstore. During a visit to Dan’s Bookstore, Dan stopped Paul as he left the store. Dan accused Paul of stealing a book from the store. After briefly looking into Paul’s shopping bag, Dan determined that Paul did not shoplift. He apologized to Paul and released him. On these facts, Dan will likely: a. win the case, because the shopkeepers’ privilege statute gives store merchants unconditional immunity (protection) from such lawsuits. b. lose the case, because Paul did not shoplift. c. win the case, but only if a court or trier of fact concludes that Dan had reasonable cause to believe Paul may have shoplifted, detained him for a reasonable time, and in a reasonable manner. d. lose the case, because Dan did not have a warrant.

c. win the case, but only if a court or trier of fact concludes that Dan had reasonable cause to believe Paul may have shoplifted, detained him for a reasonable time, and in a reasonable manner.

Bonds wrote McGuire, “I will sell you my house and lot at 419 West Lombard Street, San Francisco, California for $950,000 payable upon merchantable deed, deal to be completed within 60 days of the date of your acceptance.” Assuming that Bonds’ letter contains terms which are deemed sufficiently certain and definite, which of the following statements is correct? a. Bonds’ letter is not an offer unless Bonds intended it to be an offer. b. Bonds’ letter is not an offer unless McGuire thought Bonds intended to make an offer. c. Bonds’ letter is an offer if a reasonable person with full knowledge of the circumstances would be justified in thinking it was intended as an offer. d. Bonds’ letter is not a offer unless both Bonds and McGuire considered it as an offer.

c. Bonds’ letter is an offer if a reasonable person with full knowledge of the circumstances would be justified in thinking it was intended as an offer.

Iverson Jewelers wrote a letter to Miller, “We have received an exceptionally fine self-winding Rolox watch which we will sell to you at a very favorable price.” a. The letter is an offer to sell. b. A valid offer cannot be made by letter. c. The letter contains a valid offer which will terminate within a reasonable time. d. The letter lacks one of the essential elements of an offer.

d. The letter lacks one of the essential elements of an offer.

Don was negligently driving south on Merdock Avenue when his car rear-ended a car driven by Patty. The force of the impact forced Patty to rear-end Terry’s car. In turn, the force of the second impact caused Terry’s car to hit a lamppost, which then fell on a house owned by Paul. The force of the impact scared Paul, causing him to immediately have a heart attack. Paul sues Don for negligence. If Paul recovers, the most likely reason is: a. Paul was able to prove that Don proximately caused Paul’s injuries. b. Paul was able to prove that the damages he suffered were actually caused by Don. c. Paul was able to prove that Don breached a duty of due care owed by Don to Paul. d. Paul was able to prove all of the above (a, b & c).

d. Paul was able to prove all of the above (a, b & c).

Sammy agreed to sell and Larry agreed to buy Sammy’s car for $400, payable upon delivery. Sammy delivered and left the car with Larry. However, Larry failed to pay Sammy the $400. After eight years had passed following the delivery and acceptance of the car by Larry, Sammy sued Larry in state court for failure to pay him the $400. Based only on the above stated facts, which of the following statement is most accurate? Assume the UCC applies and the statute of limitations for oral contracts is two years and for written contracts is four years. a. No contract was ever created between Sammy and Larry. b. A contract was created but likely not enforceable because the statute of limitations has expired. c. A contract was created, but it is only enforceable if it is in writing. d. A contract was created and is enforceable.

b. A contract was created but likely not enforceable because the statute of limitations has expired.

Bill purchased a can of Sipep from the Ajax Minimart. After he finished drinking the Sipep, Bill noticed that the can contained dead insects stuck on the inside bottom of the can. In a strict product liability tort action against Ajax, Bill must prove, among other things, that: a. Ajax is a merchant selling Sipep. b. Ajax knew or should have known of the defective condition. c. Ajax had prior notice of other similar problems with Sipep products. d. Ajax actually placed the dead insects into the can.

a. Ajax is a merchant selling Sipep.

Under which of the following situations does strict product liability apply? a. Sale of a defective and unreasonably dangerous product. b. Manufacture of a defective and unreasonably dangerous product. c. Both (a) and (b) are correct. d. Neither (a) nor (b) are correct.

c. Both (a) and (b) are correct.

On May 1, Back -Talk Computer Store offered to sell five (5) computer servers to Gatekeeper Company for $5,000.00 each, delivery to be on May 30. Later that day (May 1), Gatekeeper responded that it would buy the computers only if they were delivered within three business days. Back-Talk notified Gatekeeper the next day, May 2 that it would not be able to deliver the goods within the time requested by Gatekeeper. Which of the following is true regarding Back-Talk's offer? a. There is no contract between Back-Talk and Gatekeeper. b. Gatekeeper's additional term became part of the contract, so Back-Talk is obligated to deliver the goods within three business days. c. Back-Talk's offer was accepted by Gatekeeper d. Gatekeeper may later accept Back-Talk’s May 1 offer if it is then willing to accept delivery in four weeks.

a. There is no contract between Back-Talk and Gatekeeper.

9. The body of law which establishes rights between persons and provides for redress for violation of those rights is known as: a. Criminal Law. b. Civil Law. c. The Uniform Commercial Code. d. Stare decisis.

b. Civil Law.

10. Donny threw a knife at Sally, intending to injure her severely. However, Donny missed Sally. Sally saw the knife just as it whizzed by her head, missing it by about one inch. As a result, Sally was very scared. Sally sued Donny for assault and battery. Which of the following is most correct? a. Donny will be liable for battery, but not assault. b. Donny will be liable for assault, but not battery. c. Donny will be liable for assault and for battery. d. Donny will not be liable for either assault or battery because this is only a criminal matter.

b. Donny will be liable for assault, but not battery.

11. In most states the following types of contracts are within the statute of frauds. a. Contracts for the sale of an interest in personal property. b. Contracts that can be performed within a year from the date of their formation. c. Contracts for the sale of goods. d. Contracts for the sale of goods for a price of $500 or more.

d. Contracts for the sale of goods for a price of $500 or more.

On May 1, 2005, Eckerly Realty Inc. mailed a written offer to Masse for the sale of an office building. The offer included an express term that it would expire on June 30, 2005 if the acceptance was not delivered into the hands of the offeror by the expiration date. On June 30, 2005 at 8:00 a.m., Masse sent a written acceptance to Eckerly via Masse’s personal messenger. However, the messenger was not able to deliver the acceptance until July 1, 2005. On July 2, 2005, Eckerly contacted Masse, informing him that the acceptance had been delivered one day late. As a result, Eckerly refused to honor the acceptance. Which of the following is the most correct statement? a. There is no contract between Eckerly and Masse. However, if Masse would have mailed the acceptance on June 30, 2005, a contract would have been created. b. There is a contract between Eckerly and Masse. The moment that Masse gave the acceptance to the messenger, a contract was formed because acceptances are valid immediately upon dispatch. c. There is a contract between Eckerly and Masse. The fact that the acceptance arrived only one day late is of no significance. d. There is no contract between Eckerly and Masse.

d. There is no contract between Eckerly and Masse.

Which of the following statements is correct concerning the "reasonable person" standard in tort law? a. The reasonable person standard varies from person to person. b. The reasonable person standard focuses on the defendant’s subjective mental state rather than on the defendant’s behavior. c. A person with a physical disability must act as would a reasonable person with the same disability. d. A person with a mental disability must act as would a person with the same mental disability.

c. A person with a physical disability must act as would a reasonable person with the same disability.

Robert makes the following statement while negotiating the sale of his car, “This is the sharpest car on the market.” His statement may support a claim for: a. misrepresentation. b. fraud. c. fraud and misrepresentation. d. none of the above.

d. none of the above.

Paula rented an apartment to Dave for $500 per month. Paula and Dave signed a one-year lease, to be effective beginning January 1st. After three months, Dave decided that he did not like the apartment. He gave Paula a 30-day written notice, stating that he would vacate the rental unit at the end of the thirty days, which was April 30th. Upon receipt of Dave’s notice, Paula made reasonable efforts to find a new tenant. Nevertheless, the apartment remained vacant from May 1st. through June 30th. Paula re-rented the apartment beginning July 1 st. for one year. Paula sues Dave in small claims court. What is the likely outcome? a. Paula is entitled to the balance of the lease, or $4,000, because Dave did not have a valid reason to breach the contract. b. Paula is entitled to nothing, because Dave gave Paula thirty-day written notice. c. Paula is entitled to $1,000, because she tried to find another tenant immediately upon learning of Dave’s intent to breach the contract, but was unable to re-lease the apartment until July 1 st. d. Paula is entitled to $500, which represents one-month’s rent.

c. Paula is entitled to $1,000, because she tried to find another tenant immediately upon learning of Dave’s intent to breach the contract, but was unable to re-lease the apartment until July 1 st.

Tom and Jerry entered into a contract whereby Tom agreed to sell Jerry $1,000 worth of heroin, an illegal substance. This is an example of a: a. quasi contract. b. void contract. c. voidable contract. d. secondary party beneficiary contract

b. void contract.

Business Law (OFFICIAL) Flashcards

(84 cards)