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Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This a. creates an illegal contract by adding a clause to […]

A bilateral contract comes into existence at the moment an offer is made. A minor may disaffirm a contract only if the subject matter is illegal. Answer: f Americans with a Better Cause (ABC), a nonprofit organization, files a suit […]

A release does not require consideration to be legally binding. Proximate cause exists when injuries sustained were too remotely connected to an incident to trigger liability. Answer: F A party who substantially performs his or her duties under a contract […]

At a prison in Ohio, inmate Steve recruits other inmates to play Towers & Trolls, a potentially violent, fantasy, role-playing game. Ryan, the prison’s warden, confiscates the game materials and bans its play at the prison. Under the principles discussed […]

Michelle gives out a business card with an e-mail address on it. According to the comments that accompany the UETA, it may be reasonable to infer that Michelle has consented to a. transact business electronically. b. submit to the jurisdiction […]

The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that a. Congress writes checks and the other branches balance the budget. b. each branch has some power to […]

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy’s wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer […]

Vishing is phishing that involves voice communication. A quasi contract is a true contract. Answer: f An implied contract is not an actual contract. Answer: F Apparent authority arises from what the principal makes clear to the agent. Answer: Answer: […]

Common law is the best and only source of legal authority. Any crime committed with a computer is a cyber crime. Answer: F Remedies of the agent for breach of duty by the principal follow normal contract and tort remedies. […]

The use of a person’s likeness for commercial purposes without permission is not an invasion of privacy. Ordinarily, “ignorance of the law is an excuse,” or a valid defense to criminal liability. Answer: F If a contract for a sale […]

If a buyer breaches a contract while the seller is still in possession of the goods, the seller can resell the goods and hold the buyer liable for any loss. Alternative dispute resolution refers to any method for resolving a […]

A buyer who accepts nonconforming goods cannot revoke the acceptance. Under the UCC, the validity of a contract depends on its price term. Answer: F A promise to do something that one has a prior legal duty to do is […]

Trademark dilution requires proof that consumers are likely to be confused by the unauthorized use of a mark. Normally, when a nonbreaching party has been damaged by a breach of contract, he or she has a duty to mitigate those […]

A buyer has an insurable interest in identified goods. Article 2 of the UCC governs contracts for sales of goods. Answer: t Under the Statute of Frauds, oral contracts are void. Answer: F If a contractual promise is not fulfilled, […]

Exchanging pirated, copyrighted works with others is not a crime unless money is involved. A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers. Answer: T Performance that provides a party […]

Gary threatens physical harm to force Hugh to sell his business, Imported Goods, Inc., to Gary for a below-market price. This is a. duress. b. fraud. c. puffery. d. undue influence. The Alabama Consumer Protection Agency (ACPA) investigates the marketing […]

Summit Supply Company contracts for a sale of medical equipment to Valley Immediate Care Corporation. Summit can enforce its right to payment a. only after Valley has actually inspected the goods. b. only after Valley has had an opportunity to […]

A suspect cannot be tried twice in the same court for the same crime. The purpose of the exclusionary rule is to encourage criminals to provide exclusive evidence of their crimes. Answer: F Ratification occurs when a principal accepts responsibility […]

Kelly and Lucas sign a written contract for the sale of Kelly’s Koffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement. The writing that Kelly and Lucas signed […]

Sable and Rex agree while talking on the phone to form a partnership to deal in transfers of real property. Their partnership agreement is legally binding a. only if a copy of the agreement is filed in the appropriate state […]

The River City Council, the Santa Clara County Board, the Texas state legislature, and the U.S. Congress enact laws. These laws constitute a. administrative law. b. case law. c. stare decisis. d. statutory law. Glen is an agent for Hi-Flite, […]

Corporate ethical policies must be clearly communicated to be effective. Misrepresentation of an opinion is an element of fraud. Answer: F Consequential damages are awarded to cover all of the remote consequences of whatever injury a nonbreaching party suffers. Answer: […]

Congress can only pass legislation that falls within the limits set up by the U.S. Constitution. Tropical Vittles, LLC, hires Sophie to act as its agent to buy a ten-acre tract of land from Rico for $1,000 per acre. Tropical […]

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading. A contract between Kwik Import Company in Los Angeles and Macro Retail Corporation in New York does not expressly state which party bears […]

Omni Corporation is a Pennsylvania-based firm that does business throughout the United States. With respect to this circumstance, the UCC has been adopted by, and applies in, a. a few of the states. b. all of the states, in whole […]

An integrated contract is the final embodiment of the terms of an agreement. A contract may include a clause stating that no damages can be recovered for a certain type of breach. Answer: T Unforeseen difficulties that justify a demand […]

Convenience Mart, Inc., is a closely held corporation. Convenience Mart is a. eligible to make public offerings of securities. b. exempt from filing a certificate of incorporation. c. generally allowed to restrict the transfer of its stock. d. taxed in […]

Flossy promises to pay her cousin Garth, who is dangerously obese, $10,000 if Garth loses 100 pounds within the next two years. Garth agrees, performs his part of the bar- gain, and asks for the money. Flossy refuses to pay, […]

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that a. approximately conform to all of […]

Minka uses her computer to secretly install software on hundreds of personal computers without their owners’ knowledge. Minka’s secretly installed software allows her to forward transmissions from her unauthorized network to even more systems. This network is a. a hacker. […]

The purpose of tort law is to punish criminal wrongdoers. A defense available in an action based on a negligence theory is that the plaintiff failed to prove one or more of the required elements. Answer: T A reasonable, lawful, […]

Unless a contract provides otherwise, it is assumed to be a destination contract. Under their police powers, states can regulate private activities to protect or promote the public order, health, safety, morals, and general welfare. Answer: T A person who […]

To rescind a contract for fraud, a plaintiff must prove an injury. If it can be shown that a trespass to personal property was warranted, a complete defense exists. Answer: T One guideline to evaluating the ethics of a particular […]

In Export Co. v. Imports, Inc., there is no precedent on which the court can base a decision. The court can consider, among other things, a. neither public policy nor social values. b. public policy only. c. public policy or […]

Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deala student loan accruing interest at a certain rate and payable beginning on a certain datewas unfair because the consideration for their contract was inadequate. “Adequacy” […]

Inferior Company, which is based on South Carolina, makes and sells products that are poorly made. Jack, who is a resident of North Carolina, buys an Inferior product and suffers an injury through its use. The diversity of citizenship between […]