Business Law (OFFICIAL) Flashcards
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.
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.
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.
(c) Only economic damages can be recovered
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
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
(6) Criminal Law:
Defines public wrongs prohibited by a state or federal government.
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.
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.
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
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
(c) Is a defense to recovery if the requisite period of time with in which to commence the lawsuit has elapsed
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
