Ch 10. Contract Law and Employment Issues

Question 1

An agreement between 2 or more people that contains mutual promises that are enforceable at law. (270)

Answer 1

A contract

Question 2

For a contract to be enforceable, each party must provide ___. (270)

Answer 2

consideration

Question 3

___ is a legal term for the inducement to enter into the agreement. It can be an act or a promise and must involve either conferring a benefit upon another, or the acceptance of a recognizable detriment. (270)

Answer 3

Consideration

Question 4

In contract law, the requirement that both parties provide consideration is called ___. Without it, a contract is not created, and any promises that are made cannot be enforced. (271)

Answer 4

mutuality

Question 5

A contract is made when ___. (271)

Answer 5

one party makes an offer and the other party accepts the offer.

Question 6

1 combined with 2, supported by 3, creates a contract. (271)

Answer 6

1) A clearly defined offer
2) an unambiguous acceptance
3) mutual consideration

Question 7

The law that requires certain contracts to be documented in writing. (272)

Answer 7

Statute of frauds

Question 8

The statute of frauds requires contracts for the sale of goods worth more than ___ to be in writing to be enforceable. (272)

Answer 8

$500

Question 9

The formal legal authority to bind another to a contract. (273)

Answer 9

Actual authority

Question 10

The only way a vendor can know for sure who in a fire company has actual authority to contract is ___. (273)

Answer 10

to research the corporate documents

Question 11

When a corporation holds a person out as having the authority to bind the corporation or knowingly allows a member to hold himself out as having the authority, then absent knowledge to the contrary by the vendor, the corporation can be bound. (273)

Answer 11

Apparent authority

Question 12

When a party makes a unilateral promise knowing that the recipient will rely upon the promise, and the recipient in fact reasonably relies upon the promise to his detriment. (279)

Answer 12

promissory estoppel

Question 13

The basis for promissory estoppel is ___ (279)

Answer 13

detrimental reliance

Question 14

Promissory estoppel is an “___” principle, which in theory “estoppes” or “stops” the person who made the promise from claiming there is no contract. (280)

Answer 14

equitable

Question 15

___ is the right of a person to assume the legal claims of another party. Like when an insurance company pays out a claim, the insurer may then file suit against whoever was responsible for causing the damage to the same extent that the insured party could have. (287)

Answer 15

Subrogation

Question 16

3 questions to consider regarding public employee due process: (288)

Answer 16

1) Whether- whether or not a due process right has been implicated
2) How much- how much process is due
3) When- the timing of the process

Question 17

2 conditions that must be met in order for due process to be applicable to a person’s employment: (289)

Answer 17

1) the employee must be considered a public employee

2) the employee must be confronted with a deprivation of “life, liberty, or property.”

Question 18

The most common deprivation to trigger due process in an employment context is ___. (289)

Answer 18

a property deprivation

Question 19

A property interest arises when an employee ___. (289)

Answer 19

has an expectation of continued employment

Question 20

___ guides how much process is due for public employees. (292)

Answer 20

The Matthews test

Question 21

The 14th Amendment’s due process requirement applies only to ___. (297)

Answer 21

“state action,” or action by a state or political subdivision fo a state.

Question 22

The immunity protection provided to employers by workers’ compensation systems is referred to as ___. This refers to the fact that workers’ compensation insurance is the exclusive remedy for an injured or ill worker. (304)

Answer 22

exclusivity

Question 23

Some states recognize an exception to exclusivity immunity, when an employee is injured through ___. (307)

Answer 23

intentional, reckless, or grossly negligent conduct by an employer or coworker