FINAL Flashcards
Sid Corporation files suit against Tina Jones, Inc. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party helps them to reach an agreement. This is:
mediation.
T/F With respect to a void agreement, no contract exists.
True
T/F Reasons for a void agreement are the purpose of the contract is illegal and a party to the contract is at the time of entering into the contract declared by a court to be mentally incompetent.
True
T/F Donald is the CEO and Kirk is the Senior Vice President of Marketing of Global Industries, Inc. Global Industries is required to file certain financial reports with the SEC. Under the Sarbanes-Oxley Act of 2002, Donald must certify that the financial reports are complete and accurate.
True
Home Delivery Corporation and Interstate Transport, Inc. signed an agreement that provides for the payment of “$1,000 by whatever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000.” This is
a liquidated damages clause.
Midnight Power Products Corporation permits its directors to be elected by cumulative voting. This:
allows minority shareholders to be represented on the board
Which of the following are functions of the board of directors of Custodial Care Corporation:
understanding the details of the governing documents, purposes and strategy of the corporation.
Jill and Frank want to form and do business as Fun Festivals Corporation, and as such entity, Fun Festivals is a legal entity created and recognized under:
state law
Dale, David, Daphane, and Deloris are members of the board of directors of Integral Corporation. What constitutes a quorum for the board of directors of Integral Corporation?
The minimum number of directors of Integral who must be present for the board to validly transact business.
Piku files a suit against Quotient Accounting, Inc., under Title VII for intentional employment discrimination, based on its discharge of Piku. In these circum¬stances, possible relief under Title VII includes
damages and job reinstatement.
Jonathan Neutral is a Senior Vice President of Marketing for Corporation Sensitive, who when interviewing job candidates for the VP of Marketing position treats all job candidates of a certain religion differently than any other job candidates. What is Jonathan’s actions?
disparate-treatment discrimination
Jason is a member of Aqua Consulting, LLC. Jason is liable for Aqua’s debts:
to the extent of Jason’s capital investment in Aqua
What type of contract is the following scenario? Producer says to Gloria, “I’ll pay you $2 million to star in my new romantic comedy, A Promise for a Promise, which we are shooting three months from now in Santa Fe.” Gloria says for her acceptance, “It’s a deal.”
bilateral, executory contract
Michael wants to operate his business Michael’s Landscaping Service as the simplest form of business organization. What type of business organization would Michael’s Landscaping be?
a sole proprietorship.
For which of the below situations is specific performance most likely to be awarded to the nonbreaching party?
contract breach for the sale of a unique stamp collection.
Juli buys a new textbook for $100 and a bicycle for $450, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. To be enforceable, there must be a writing that evidences
the apartment lease only.
T/F Unconscionable agreements are valid contracts
False
T/F An agreement against public policy is one that has inconspicuous print and thus determined to be a procedural unconscionable agreement.
True
T/F An exculpatory clause means a clause that releases a contracting party from liability for monetary or physical injury despite fault.
True
T/F An adhesion contract is an agreement against public policy.
True
Sidney, a director at Tech Software Company, learns that a Tech Software engineer has developed a new and exciting video game which development is confidential to Tech Software. Sidney buys Tech Software stock and tells his friend Uri about the Tech Software engineer’s development, and Uri buys Tech Software stock. When the video game development is publicly disclosed three weeks later, Sidney and Uri both sell their stock for a big profit. Sidney and Uri would be liable for insider trading
if they purchased their Tech Software stock before the Tech Software video game development became public information.
Michelle and Nicole do business as One World Realty, Inc. Michelle acts on the corporation’s behalf in a deal with Property Acquisition Company, but fails to account to One World for the profit received from the deal by taking the money for herself. To her firm, Michelle is:
liable for the breach of loyalty
Company A files a suit against Company B. Before going to trial, the parties submit the dispute to a panel of disinterested third parties (other than a court) with expertise in the subject matter in dispute. This panel renders a decision, which decision is legally binding. This is
arbitration.
Prospective Enterprises (PE) employs Quinn to buy property for a possible com¬mercial development. Quinn secretly, personally, buys some of the property and sells it to PE at a profit. Quinn has breached
the duty of loyalty
Quality Aluminum Corporation files a suit against Rite Tool Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of consideration if
something of value passes between the parties.
Earth Conserve, Inc. was formed in the State of Georgia, but given the expansion of its business, Earth Conserve wants to do business in Alabama. When Earth Conserve was formed in the State of Georgia what formation document did it file with the Georgia Secretary of State and what document does it need to file with the Alabama Secretary of State to conduct business in Alabama?
Articles of Incorporation and Certificate of Authority, respectively.
If you do not voluntarily consent to a contract, you may
rescind or cancel the contract
Machine Corporation requires its employees to have a high school diploma because it can demonstrate that there is a definite connection between a high school edu¬ca¬tion and job performance. In a suit against Machine Corporation under Title VII, this requirement is shown to have a discriminatory effect. The employer has
a business necessity defense.
Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with this statute is monitored by
the Equal Employment Opportunity Commission
Bright Lights Company files a suit against Key Lighting Corporation. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a group of third parties who are not judges. These parties collectively render a legally binding decision. This is:
arbitration.
Detailed Designs Company, an architectural firm, wants to hire Eduardo, a noncitizen. Under the Immigration Act of 1990, a temporary work visa is most likely to be set aside for a noncitizen who is
a “person of extraordinary ability.”
A definition of the term contractual capacity is:
the ability to enter into a contractual relationship.
During an evening of drinking where each person had two beers, the CEO of Movie House A says to David, who is twenty-two years old, “Movie House A will pay you $1000 to be the set photographer on next Saturday for Movie House A’s new thriller, Scared of the Dark.” David says nothing in response and the CEO, and David and the CEO engage in no further dialogue. On Saturday, David shows up to the set and starts taking photographs. What type of contract exists?
a unilateral contract
