Securities may be sold during the prefiling period.
The UCC assumes that the seller has the right to transfer title free and clear of
infringements of intellectual property rights of which the buyer does not have
knowledge.
In the U.S., surgeons use a heart-lung standard rather than a brain-death standard in
order to determine death.
Bid rigging is legal because it has recently been removed from the category of
price-fixing.
A buyer who has accepted goods may later revoke the acceptance if the buyer can show
that the defects substantially impair the value of the goods.
Federal Trade Commission regulations outlaw ads that exert a moral pressure to
purchase a product or service.
Because of the law, we rely on the goodwill and dependability of one another.
If a quasi-contract is imposed, the amount of damages for a breach is based upon the
fair market value of any service provided to the defendant.
The majority of the U.S. Supreme Court Berghuis v. Thompkins ruled that absent an
explicit invocation of the right to remain silent, police may continue to interrogate a
suspect, and what the suspect says may be used against him in court.
A seller or lessor is allowed to sell goods to another buyer when the original buyer is in
breach and the goods have not yet been delivered.
In order to satisfy the requirement of negotiability that payment be at a time certain or
on demand, acceleration of payment is not allowable.
Any contract that is not a formal contract is an informal contract, also called a simple
contract.
Federal securities law does not require that target corporations assist aggressors in any
way.
In rem jurisdiction references jurisdiction over a person.
A party only has a limited number of challenges for cause in jury selection.
When an asset purchase occurs, the acquiring corporation assumes ownership and
control over tangible, but not intangible, assets of the selling corporation.
An illusory promise is not a consideration.
Med-arb is a type of ADR method.
During the winding-up process, the partners may not engage in a business that
competes with the partnership business.
A stock subscription agreement signed before incorporation may obligate a person to
purchase shares in the corporation.
Identification of when the risk of loss attaches is important in regards to the right of
indemnification.
A debtor must be insolvent to file a voluntary petition for bankruptcy under Chapter 7.
Remaining partners have a right to continue a partnership after dissolution.
Today, courts hold that once an offeree begins performance on a unilateral contract, the
offeror must hold the offer open for a reasonable time to allow the offeree to complete
the performance.
There is federal U.S. legislation titled “Statute of Frauds”.
Specific performance is an order requiring that the breaching party fulfill the terms of
the agreement.
A person may revoke a will by physically destroying it.
Delivering a car to a merchant for repair cannot qualify as an entrustment.
The term “cover” refers to buyers or lessees substituting goods for those due under a
sales or lease agreement.
Title to property may not be put in the name of a partnership.
In reference to the case of Credit Alliance Corp. v. Arthur Anderson & Co., what did the
court rule regarding the effort to hold the defendant accounting firm liable on a
third-party reliance theory?
A. The plaintiff was allowed to recover because the Ultramares Rule was applied.
B. The plaintiff was not allowed to recover because the Carroll Rule was applied.
C. The plaintiff was allowed to recover because it was a foreseen user.
D. The plaintiff was allowed to recover because it was in a foreseen class of users.
E. The plaintiff was not allowed to recover because the court did not find the necessary
link between the plaintiff and the accounting firm.
Under the UCC which of the following refers to the history of dealings between the
parties in the particular contract at issue?
A. Trade norm
B. Course of dealing
C. Anticipated trade dealing
D. Usage of trade
E. Course of performance
What are the three primary types of liability assessed against accountants under
common law?
A. Negligence, breach of contract, and accounting misalignment
B. Breach of contract, fraud, and accounting misalignment
C. Fraud, negligence, and accounting misalignment
D. Breach of contract, negligence, and innocent misrepresentation
E. Negligence, breach of contract, and fraud
Helen worked for ABC Company as the company treasurer. She took 20 of ABC
Company’s checks, labeled as belonging to ABC Company. Over the course of one year,
she signed and mailed the checks to American Express, her own credit card company, to
pay her own credit card debt. Assuming the court follows the case in the text, Watson
Coatings Inc., v. American Express Travel Services Inc., which of the following is the
most likely result in a lawsuit by ABC Company against American Express to recover
the amounts of the checks?
A. ABC Company will prevail because American Express, as a payee, does not qualify
as a holder in due course.
B. ABC Company will prevail because American Express should have realized that
fraud was involved from the fact that the checks were ABC Company checks.
C. ABC Company will prevail because fraud was involved.
D. American Express will prevail and will not be required to return funds.
E. American Express will have to return ½ of the funds because the parties were equally
at fault, American Express for taking the checks, and ABC Company for not more
carefully supervising its employee.
“Check Cashing Business.” Susan owns and operates a check cashing business. A
regular customer, Bob, comes in and cashes a $2,000 check issued by ABC Trucking.
The day after Susan cashed the check, she received a notice from ABC Trucking that
some checks had been stolen. It was later discovered that the checks she cashed for Bob
had been stolen. At the time she took the check, Susan was very busy with several
customers in line. She simply glanced at the check and cashed it. A reasonable
examination would have revealed that the check had been materially altered and
changed from the amount of $200 to $2,000. Susan decided that she needed to hire
some people to help her because she also had a problem with another check. On the
same day that she took Bob’s check, she took a check from another customer, Maurice.
It was later discovered that the check, which was four months old, was the subject of a
dispute between Maurice and the issuer of the check for whom Maurice had done some
work. The issuer claimed that the work was improperly done. Both ABC Trucking and
the issuer of the check to Maurice had stopped payment on the checks. Susan claimed
that as a holder in due course, she was entitled to payment on both checks.
What is the effect on Susan’s status as a holder in due course in taking the check from
the customer that was four months old?
A. There is no effect on her status as a holder in due course because an instrument such
as a check is only considered overdue if it is outstanding for 150 days.
B. There is no effect on her status as a holder in due course because an instrument is
only considered overdue if it is outstanding for 180 days.
C. There is no effect on her status as a holder in due course because an instrument is
only considered overdue if it is outstanding for one year.
D. It has no effect because a check is never considered overdue.
E. She would not be considered a holder in due course because a check is considered
overdue 90 days after its date.
Which of the following is false regarding the extent of real property ownership rights?
A. A landowner’s rights to property extend to airspace.
B. A landowner has water rights consisting of the legal use of water flowing across or
underneath the property so long as landowners downstream are not deprived of water.
C. A landowner has mineral rights.
D. A landowner is prohibited from cutting branches of a neighbor’s tree hanging over
into the landowner’s premises.
E. Interests in land range from temporary to permanent to future.
Which of the following is the most popular form of business ownership in the U.S.?
A. Sole proprietorship
B. Limited partnership
C. Limited liability partnership
D. Corporation
E. Limited liability company
A mechanic’s lien is created by ____.
A. Acknowledgement
B. Consent
C. Foreclosure
D. Mortgage
E. Statute
Zachary, who has been authorized to write a check from a company account to pay
employees, draws bonus checks from the company account for five fictitious
employees, endorses the checks in their names, and deposits those into his own bank
account. Which of the following is true regarding whether the company will be required
to take the loss on the checks?
A. Under the fictitious payee rule, the company will be required to take the loss on the
checks unless the company can obtain the funds from Zachary.
B. Under the imposter rule, the company will be required to take the loss on the checks
unless the company can obtain the funds from Zachary.
C. Under the transferor rule, the company will be required to take the loss on the checks
unless the company can obtain the funds from Zachary.
D. Under the employee-liability rule, in addition to its rights in regard to Zachary, the
company will be able to recover from any bank that cashed the checks.
E. Under the banking liability act, in addition to its rights in regard to Zachary, the
company will be able to recover from any bank that cashed the checks.
Which of the following is true regarding the origin and meaning of the phrase
respondeat superior?
A. It is a Latin phrase meaning “release the agent.”
B. It is a French phrase meaning “agency liability.”
C. It is a German phrase meaning “liability without fault.”
D. It is a Latin phrase meaning “let the superior speak.”
E. It is a French phrase meaning “let the agency stand.”
Which of the following would likely be formed by farmers who want to pool certain
crops together to ensure that they get a high market price for their crops?
A. A business trust
B. A syndicate
C. A joint venture
D. A joint stock company
E. A cooperative
“Rough Start.” Debby, who just graduated from college, wanted to buy a new car. She,
however, did not have much of a credit history, and the bank would not give her a loan
unless she had a cosigner who agreed to be liable on the loan along with Debby.
Debby’s father cosigned with Debby on her loan at the bank. Debby also wanted to start
a real estate business. She needed funds with which to do so. Her boyfriend, George,
agreed in a signed writing with the bank that he would pay Debby’s start-up loan for the
real estate business if Debby did not do so. Unfortunately, Debby did not make any
money in the real estate business. She went bankrupt as did George who had been
acting as her receptionist.
Which of the following is the correct term for the agreement entered into between
George and the bank?
A. A suretyship
B. A guaranty
C. A certified agreement
D. An acknowledged agreement
E. An executory promise
“Pet Pig Farm.” Marcy wanted to buy Lucy’s land and use it to breed small pigs to be
kept as pets. Marcy told Lucy that having water on the property was very important
although she did not mention to Lucy her plan to breed small pigs. Lucy assured her
that a spring ran through one corner of the property. Therefore, Marcy agreed to buy the
farm. Marcy, who loved pigs, assumed that the neighbors would be pleased with the
pigs being in the area. Lucy also agreed to sell Marcy a used truck for $5,000. After the
contract for the land sale was entered into, Marcy had a land survey done, and it was
discovered that actually the spring did not run through the corner of Lucy’s property.
The area in which the spring ran actually belonged to a neighbor. Additionally, when
Lucy brought Marcy the used truck, Marcy said, “That’s not the truck!” It was
discovered that Lucy, who had two trucks, thought that Marcy had bought the older
truck although Marcy thought she had purchased the newer truck. Marcy was also
surprised when she received a petition signed by all surrounding landowners objecting
to the presence of the pigs and threatening to sue Marcy for nuisance. It will cost Marcy
more than she had agreed to pay Lucy in order for Marcy to obtain a similar farm which
actually has a spring on it.
Assuming that Lucy innocently made a misrepresentation regarding the spring running
through the corner of the farm with no reason to believe that was incorrect, which of the
following is true, considering only the lack of a spring issue, if Marcy does not want to
go through with the sale?
A. Marcy may rescind the contract and recover compensatory damages.
B. Marcy may rescind the contract, but she may not recover damages.
C. Marcy may sue for damages, but she may not rescind the contract.
D. Marcy may rescind the contract, or she may keep the contract and sue for damages.
E. Marcy has no remedy based on an innocent misrepresentation based on the theory
that she should have checked more closely before entering into the contract.
Which of the following is false regarding workers’ compensation?
A. Before workers’ compensation, an injured employee’s only recourse was to sue the
employer for negligence.
B. For administrative convenience, most states exclude certain types of businesses and
small firms from coverage under workers’ compensation laws.
C. Workers retain the option to sue their employers for negligence for work-related
injuries.
D. Some states allow businesses with sufficient resources to be self-insured, rather than
participating in the state program.
E. Workers’ compensation laws ensure that covered workers injured on the job can
receive financial compensation through an administrative procedure, rather than having
to sue their employer.
A ______ is a person or party that has an obligation to the secured party.
A. creditor
B. debtor
C. secured creditor
D. secured debtor
E. transaction debtor
“Scuba Diving.” Marcy invented a new type of mask that was not subject to fogging for
scuba divers and obtained a patent on it. She agrees to allow Jenny to manufacture and
sell the mask. She receives a sum of money for every mask that Jenny sells. Marcy also
entered into an agreement with Frank to allow him to sell the masks, but only if he also
purchased non-patented diving suits from Marcy. All parties proceeded to do very well
with their sales.
Marcy’s agreement with Jenny allowing Jenny to sell the mask is referred to as which of
following?
A. A license
B. A patent agreement
C. A trade agreement
D. An illegal agreement
E. A franchise agreement
“High Maintenance.” Paul, who runs a retail jewelry store, went with Jane, to whom he
was engaged to be married, to a wholesale jewelry store. Paul had no express, written
agreement with Jane by which she was his agent. The wholesaler jeweler, Pam, asked
Paul if Jane was buying for him. Paul did not want to embarrass Jane so he nodded in
agreement. A few minutes later Paul whispered to Jane, outside the hearing of the
wholesaler, that she should not make any purchases. Paul and Jane had a big
disagreement over money that evening, and Jane broke off their engagement. The next
day Jane went back to the wholesale jeweler and purchased a string of pearls for
$2,000. Jane also purchased a fur jacket for $3,000 from a store, owned by Harry, that
was next door to the jewelry store. She told Harry that Paul wanted a fur jacket for a
model in his store and that Paul would be glad to pay Harry for the jacket.
Which of the following is the most likely result if Pam, the wholesaler jeweler, sues
Paul for the price of the pearls?
A. Pam will win assuming that she can prove that she reasonably believed, based on
Paul’s conduct, that Jane was acting as his agent.
B. Pam will lose because it was her responsibility to ask Paul for written documentation
that Jane was his agent.
C. Pam will lose unless it can be established that Jane at some time in the past had
actual authority to act as Paul’s agent.
D. Pam will win only if she can show that through reasonable investigative efforts on
her part Jane cannot be located.
E. Pam will win only if she can show that Jane has no assets with which to pay for the
necklace.
“Refusal to Pay.” Business law teacher Debby needed some yard work done. She told
her class that she would give $50 to the first person who mowed her yard. She also
entered into an agreement with Betty who agreed to trim some shrubbery for $40. Max
went to mow Debby’s yard. Unfortunately, just as he finished mowing, a neighborhood
dog bit him, and he had to go to the emergency room for a couple of stitches. Debby
refused to pay Max because she said that he had angered the neighbors and their dog,
and that he was more trouble than he was worth. Secretly, Debby was glad about the
dog bite because she felt it gave her an excuse not to pay. Max refused to pay the
emergency room because he said that they did not have a binding, bilateral contract.
Betty refused to trim the shrubbery because she got a better offer and claimed that she
was not bound on the contract until she started to perform.
Which of the following is correct regarding Betty’s statement that there was no
contract?
A. Betty is correct. There was no contract because she had not started working.
B. Betty is incorrect because there was a bilateral, express agreement.
C. Betty is incorrect because there was a bilateral, implied agreement.
D. Betty is incorrect because there was a unilateral, express agreement.
E. Betty is incorrect because there was a unilateral, implied agreement.
Which of the following is true regarding the liability of a partner for a mistake?
A. A partner who makes an honest mistake in fulfilling his or her responsibilities to the
partnership is not held personally liable for the mistake.
B. A partner who makes an honest mistake in fulfilling his or her responsibilities to the
partnership is held personally liable for the mistake, but only to the extent of his or her
capital contribution.
C. A partner who makes an honest mistake in fulfilling his or her responsibilities to the
partnership is held personally liable for the mistake, but only to the extent that he or she
shares in profits.
D. A partner who makes an honest mistake in fulfilling his or her responsibilities to the
partnership is held personally liable for the mistake, but only to the extent that he or she
shares in losses.
E. A partner who makes an honest mistake in fulfilling his or her responsibilities to the
partnership is held fully personally liable for the mistake.
Which of the following is false regarding international treatment of evidentiary matters?
A. German law does not have a parol evidence rule.
B. France has a limited parol evidence rule.
C. The parol evidence rule in France does not apply to commercial contracts.
D. England requires that promises to pay for the debt of others be in writing.
E. England has significantly increased the number of contracts falling within the statute
of frauds since the original act was passed.
Which of the following is true regarding steps taken by news corporations to protect
confidential records?
A. News corporations are putting numerous security barriers and encryptions around
their records so that nobody can gain access to them.
B. News corporations are attempting to protect information written by their own
employees, but efforts are not made to protect confidential sources because
constitutional protection does not extend to confidential sources.
C. News corporations are not bothering with security barriers to the extent as in
previous decades because government regulation requires that information be turned
over, and there is no point in taking drastic measures to protect such information.
D. New regulations make significant privacy barriers illegal in regard to news
corporations, so many barriers have been or are being removed.
E. Because of the respect given to confidential records by the U.S. government and its
enforcement agencies, news corporations see little need to enhance protection of
confidential records.
Which of the following is true regarding the Uniform Mediation Act?
A. There is no Uniform Mediation Act because of the controversy involved in
attempting to negotiate such an act.
B. It provides for a mediation privilege but does not specifically require that mediators
identify conflicts of interest, and all states have adopted it.
C. It does not provide for a mediation privilege but does specifically require that
mediators identify conflicts of interest, and all states have adopted it.
D. It provides for a mediation privilege but does not specifically require that mediators
identify conflicts of interest, and less than half the states have adopted it.
E. It provides for a mediation privilege, mediators are required to identify any conflicts
of interest, and less than half the states have adopted it.
Which of the following types of agency occurs when a principal leads a third party to
believe another individual serves as his or her agent, but the principal has actually made
no agreement with the so-called agent?
A. Expressed agency
B. Implied agency
C. Apparent agency
D. Ratification
E. Endorsement
“Courtroom Surprises.” Wilma agrees to sell Wally her house for $200,000. Wilma,
Wally, and the house are all located in Tennessee. She also orally agrees to sell her used
car to Wally for $1,000. Wilma and Wally discuss the fact that the house needs some
repairs. Wilma gives Wally a key and tells him to do whatever he wants with the house.
In reliance on her promise to sell the house, Wally sells his home, gets a loan, and has a
new roof put on Wilma’s house because of leaks that needed to be repaired to prevent
further damage. When presented with the written agreements of sale for the home and
the car, however, Wilma refuses to sign either. Wally sues, and the case proceeds to
trial. Wilma tells the judge in court under oath that she orally agreed to sell the house
but that she changed her mind before signing and that she believes she has protection
under the statute of frauds. She tells the judge that no agreement was ever made
regarding the car and that she also has protection under the statute of frauds regarding
that matter.
Which of the following is true regarding Wilma’s statement to the judge under oath that
she orally agreed to sell the house?
A. The statement has no effect because of the statute of frauds.
B. The statement would be excluded from consideration as parol evidence but only
because it involved an amount in excess of $5,000.
C. The judge would be estopped from considering the evidence.
D. The statement would be classified as an admission and would establish an exception
to the statute of frauds involving the agreement on the house.
E. The statement would be excluded from consideration because of the collateral
interest rule.
A(n) ______ endorsement is the endorser’s signature along with a named endorsee.
A. Blank
B. Allonge
C. Qualified
D. Special
E. Specific
The _______ is the supreme law of the land.
A. U.S. Constitution
B. Declaration of Independence
C. U.S. Code
D. Model Law
E. Uniform Code
A party who claims that he or she could not understand contractual terms because of
tiny, hard-to-read print on the back of an agreement and the excessive use of legalese is
referring to which of the following?
A. Substantive unconscionability.
B. Adhesion conscionability.
C. Procedural unconscionability.
D. Exculpatory clauses.
E. An in pari delicto agreement.
A[n] ______ is an agreement between an applicant and an insurance company that
gives temporary insurance until the company decides to accept or reject the insurance
application.
A. Application
B. Binder
C. Notarization
D. Approval
E. Anticipatory agreement
Under the UCC, a secured party’s interest in proceeds lasts for ______ after the debtor
receives the proceeds.
A. 30 Days
B. 60 Days
C. 1 Year
D. 5 Days
E. 10 Days
“Fixture Mishap.” Trudy owns a hardware shop that also sells expensive bathroom
fixtures. Theresa, a whiz with tools, purchased for $400 some expensive powder room
fixtures for her bathroom. Trudy had only one set of the fixtures Theresa wanted.
Although Theresa noticed a slight discoloration on one of the faucets, she went ahead
with the contract because Trudy indicated that she would remedy the situation should
the problem become worse. Because they were friends and attended the same church,
Trudy gave Theresa 90 days in which to pay. A month later and before she paid for the
fixtures, Theresa called Trudy and told her that the fixtures were corroding, the
discoloration had worsened, and the fixtures looked terrible. Trudy told her that she
would get replacements, but six months later they had not arrived. Trudy told Theresa
that they were on back order. At that point, Theresa purchased fixtures elsewhere for
$500 and informed Trudy that she could pick up the corroded fixtures at her front door.
Trudy picked up the fixtures. They were obviously defective, but Trudy was able to
resell them for $100. Trudy told Theresa that she would have gladly provided fixtures
that would not corrode if she had only a bit more time, that Theresa should have given
her a chance to do so, and that as far as Trudy is concerned, Theresa owes $300. What
is the likely effect of Trudy reselling the defective fixtures for $100?
A. That is the only remedy Trudy will receive.
B. The $100 will be deducted from the $400 Theresa owes leaving Theresa owing
Trudy $300.
C. Trudy will be allowed to keep the $100 and is still entitled to receive $400 from
Trudy.
D. Because of the extra work involved, Trudy will be required to deduct only half of the
$100 from Theresa’s debt, leaving Theresa owing $350.
E. After the $100 is deducted, Trudy and Theresa will be required under the UCC to
split the difference leaving Theresa owing $150.
“Third-Party Woes.” Trudy owed Sam $40 for a book she purchased from him. Trudy
mowed Betty’s yard for $40 and agreed with Betty that Betty would pay Sam for the
book. Sam is not aware of the assignment. Betty pays no one. Trudy also mowed Bob’s
yard for $40. She agreed with Bob that Bob would give the payment to Sally
representing Trudy’s birthday present to Sally. Bob later refuses to do so saying that
promises to give gifts are not enforceable. He then moves out of town. Trudy tells both
Sam and Sally that she is broke and that they will have to get any amounts due from
Betty and Bob respectively. Sally is very unhappy because she wanted to buy a new
pair of sandals with the money.
Which of the following is the likely result if Sam sues Betty for the $40 that Trudy
owes him for the book?
A. Sam will lose because the attempted delegation was against public policy.
B. Sam will lose because his only right of action is against Trudy.
C. Sam will lose because he was not aware of the assignment before the duties were
completed.
D. Sam will win only if he can prove that Trudy has insufficient funds with which to
pay him.
E. Sam will win.
Set forth the Central Hudson Test for Commercial Speech.
Set forth what a deed must contain in order to be properly drafted.
When must an environmental impact statement be filed under the National
Environmental Policy Act?
For his birthday, Paul’s family purchased for Paul, who tips the scales at over 250
pounds, an exercise bicycle from a popular sports retailer in his community. The first
time that Paul hopped on the bike, it collapsed, throwing him to the floor and severely
bruising his ankle. Paul wants to sue for his injuries. He has an expert in exercise
equipment examine the bicycle. The expert tells him that the bike was properly
manufactured. It was not, however, designed for individuals weighing over 250 pounds.
There was a warning to that effect in the brochure that came with the bicycle, but Paul’s
family threw that away along with the packaging; and Paul never saw it. Is there any
negligence theory under which Paul can recover? If so, what is it, and what must Paul
demonstrate to win?
Two security services, ABC Security and R. Knight Security, propose to merge. Each
corporation has fewer than 10 shareholders. The proposed merger receives majority
shareholder approval. Richard, a minority shareholder who owns 10% of the stock in
Knight Security, however, is very much opposed to the merger. He tells the other
shareholders in Knight Security that unless they convince him otherwise, he will block
the merger. What are Richard’s rights as a dissenting shareholder, and does he have the
power to block the merger?
List three advantages discussed in the text associated with perfection by possession.
List what is required in order for an offer to be considered a firm offer under the UCC.
Also discuss the effect if a firm offer is silent as to time and compare that with the result
of silence as to time under the common law.
Lists four situations under which contractual rights cannot be assigned.
What are the four requirements needed for a valid will?
Define the term “res ipsa loquitur” and set forth what a plaintiff must demonstrate in
order rely upon that doctrine.
Constance was buying a used personal watercraft from Ralph. He told her that the
engine on the watercraft was in good shape. Constance agreed to pay Ralph $4,000 for
the watercraft. She was going to be out of town on vacation, so Ralph and Constance
agreed that when she returned in a week, she would bring over the money and pick up
the watercraft. During that week, Ralph was notified by the manufacturer that the
watercraft was being recalled because it had a faulty engine that needed repair. Ralph
said nothing about the condition of the engine or the recall when Constance came to
pick up the watercraft. They chatted about other matters; she gave him the $4,000, and
took the watercraft. Later, Constance started having problems with the watercraft and
found out that Ralph and other initial purchasers had been notified of the issue with the
engine. She asked for a refund accusing Ralph of fraud. Ralph refused on the basis that
he did not make any misrepresentation. Who is correct and why? For purposes of this
question, assume that sales talk or puffery is not at issue.
Set forth and discuss two exceptions that may be applied to alter the rule that fixtures
remain when a tenant moves.
Richard has insurance with ABC Insurer. Richard has a wreck with Susie. The adjuster
for ABC Insurer orally agrees to pay Susie $1,000 for the damage to her car. The
adjuster, however, gets in trouble with his boss for agreeing to pay too much. He tells
Susie that he is backing out of the deal because the agreement is unenforceable on the
basis that the statute of frauds requires that a contract to pay the debt of another be in
writing. Is the adjuster correct? Why or why not?
Bruce buys a used car from Tony for $5,000. The car is in great shape and Bruce leaves
town in it. Bruce paid Tony with a cashier’s check, but decided that he would rather not
pay at all. Accordingly, he told the bank the check was stolen. What rights, if any,
would Tony have and what liabilities and other problems, if any, would Bruce have?
When may a landlord be found guilty of negligence per se for code violations?
Sally bought a used computer from Polly for $300. Polly told her that the price seemed
fair but that she really had no idea what it was worth and just wanted to get rid of it.
Sally, who knew little about computers, thought she had a great deal. After Sally
returned home, she discovered from a computer expert friend of hers that the computer
was not worth as much as she believed. Sally wanted to return the computer claiming
that they were both mistaken about value, but Polly said, “No way!” Who should win in
the dispute between Sally and Polly and why?