Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of
champagne in 5 days. The parties negotiated and meant to say in the written agreement,
delivery in 50 days. If the evidence is clear that the two parties intended to agree to 50
days, the courts will probably apply the remedy of:
a. reformation.
b. rescission.
c. restitution.
d. reliance.
You should hire a lawyer to review any legal papers you have to sign, including such
papers as lease agreements or car purchases.
a. True
b. False
Circus Pizza contracted with Art to run its birthday parties. Art’s responsibilities
included supervising the children and organizing the games. Circus did not investigate
Art’s background, which included a history of assaulting children. Art assaulted a
7-year-old girl in the restaurant’s kitchen during a birthday party. Circus Pizza:
a. cannot be liable for the damages because Art committed an unforeseeable intentional
tort.
b. cannot be held liable for the damages because Art’s conduct was not in the scope of
employment.
c. may be held liable on the basis of negligent hiring.
d. may be held liable only if Circus actually knew of Art’s background.
The fastest growing method of dispute resolution in the United States is:
a. arbitration.
b. negotiation.
c. mediation.
d. litigation.
Life Principles are set by your parents and do not change over time.
a. True
b. False
In order to satisfy the statute of frauds, a writing must:
a. be a formal written document drafted by an attorney.
b. be signed by the defendant and contain the name of each party, the subject matter of
the agreement, and the essential terms and promises.
c. be notarized.
d. All of the above.
A buyer who is unable to obtain cover:
a. will be limited to the remedy of incidental damages.
b. will be limited to the remedy of consequential damages.
c. will lose the money or goods invested in the breached contract.
d. may be allowed the remedy of specific performance.
Which of the following would be an example of a civil lawsuit?
a. George is being prosecuted for bank fraud.
b. The government has initiated an action against Jeff for operating a motor vehicle
under the influence of alcohol.
c. Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
d. The district attorney is bringing Ali to court for violating the city’s keg ordinance.
Generally, filing bankruptcy stops the collection activity of creditors.
a. True
b. False
Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of
champagne in 5 days. The parties negotiated and meant to say in the written agreement,
delivery in 50 days. If the two cannot settle this dispute, and Archie still wants to
deliver the champagne, then Archie should sue for the remedy of:
a. reformation.
b. rescission.
c. restitution.
d. reliance.
An express contract:
a. must be in writing.
b. may be inferred by the conduct of the parties involved.
c. has both parties setting forth their intentions.
d. is not valid in many states.
Which of the following types of contracts cannot be either contradicted or
supplemented by evidence of prior agreements or expressions?
a. Totally integrated contracts.
b. Incomplete contracts.
c. Ambiguous contracts.
d. Oral contracts.
Chapter 7 bankruptcy petitions may only be filed voluntarily..
a. True
b. False
Most courts hold that a seller of goods is not entitled to consequential damages.
a. True
b. False
In a civil case, the plaintiff must prove the case:
a. by a preponderance of the evidence.
b. by clear and convincing evidence.
c. beyond a reasonable doubt.
d. None of these; the burden of proof is on the defendant.
Jessica was a former employee of Mark. When potential employers called Mark for a
reference about Jessica, he stated she was not a very good worker and had been fired for
excessive absences. He said he believed Jessica was on drugs, but he did not know for
sure. Jessica learned what Mark was saying and sued him. In most states:
a. it was legal for Mark to say what he said if it was true and Mark was not motivated
by ill will.
b. it was legal for Mark to say what he said, since courts have consistently ruled that
former employers are immune from lawsuits for giving references.
c. it was not proper for Mark to say what he said, since courts have consistently ruled
that former employers should not give references over the telephone or in writing
without the former employee’s written authorization.
d. though it was proper for Mark to talk about Jessica’s work-related history, he acted
improperly when he said he thought she was on drugs.
The distinction between a condition precedent and a condition subsequent:
a. is important because it determines whether the burden of proof is beyond a
reasonable doubt or preponderance of the evidence.
b. seldom arises in insurance cases.
c. determines who has the burden of proof.
d. is important because it determines whether the condition must be express or whether
it can be implied.
Chelvam is the director of quality control. Chelvam rejected some parts as
non-conforming to the specifications. Chelvam’s supervisor directs him to accept the
parts. Which value might give Chelvam the strength to oppose his supervisor?
a. Consideration.
b. Courage.
c. Fairness.
d. Ambition.
Bryson Hardware accepted delivery of the 50 door handles it ordered. If it later finds
the handles do not conform to the contract specifications, it may return the goods only
if:
a. it shows the handles are nonconforming.
b. it shows that the defects substantially impair their value.
c. it can prove it is commercially impracticable for it to keep the goods.
d. the documents of title are in order.
Seventy farmers in Morgan County joined together to hire Rusty to spray their crops
one time (with his dustcropper plane). These farmers have formed a:
a. business trust.
b. cooperative.
c. franchise.
d. joint venture.
An exculpatory clause is generally unenforceable when:
a. it attempts to release a party from liability for ordinarily negligent behavior.
b. it involves public transportation.
c. it is written clearly and in bold, large print.
d. the affected activity is a recreational activity.
DoorWay Computers, Inc., the trademark owner of “DoorWay,” sought a court
injunction to prevent Handyman Hardware, Inc. from using the domain name,
“DoorWay.com.” A jury will decide whether DoorWay is entitled to this remedy.
a. True
b. False
Carey decided to incorporate her business under the name yStar Inc. Before yStar was
incorporated, Carey signed a contract in the name of yStar, Inc. to have some office
space remodeled. Which statement is correct?
a. yStar is liable on the contract because the contract was signed in its name.
b. yStar becomes liable on the contract as soon as it is incorporated.
c. yStar is liable on the contract if the contractor knows that the corporation does not yet
exist.
d. yStar will be liable on the contract only if the corporation adopts the contract.
If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods
for $10,000 when the price should have been $1,000, a court will most likely:
a. enforce the agreement, relying on oral testimony to determine the correct price.
b. only enforce the agreement as written.
c. not hear the case unless both parties are merchants.
d. not enforce the agreement since the writing did not reflect a meeting of the minds of
the parties.
The National Relations Labor Act of 1935 is also known as the:
a. Wagner Act.
b. Taft-Hartley Act.
c. Robinson-Patman Act.
d. Freedom to Work Act.
The Truth-in-Lending Act applies to private individuals who loan money.
a. True
b. False
Arco sells to Melvin 1,000 computers that are stored in Arco’s warehouse. Arco gives
Melvin the ownership documents and Melvin will pick up the computers at the
warehouse. Title has passed to Melvin.
a. True
b. False
The U.S. Supreme Courts holding in Wards Cove Packing v. Atonio:
a. differed from the holding in Griggs v. Duke Power Co. partly because the Court was
more conservative at the time Wards Cove was decided.
b. upheld the ruling in Griggs v. Duke Power Co.
c. found that overt racial discrimination existed.
d. set forth a “business necessity requirement for employment hiring practices.
The Chief Executive Officer of Ticor, Inc. must decide about the disposal of toxic waste
materials. Which of the following considerations should help the CEO reach an ethical
business decision?
a. Toxic waste disposal law.
b. The harm the disposal could cause to the environment.
c. The impact on the business if the decision is publicly disclosed through the news
media.
d. All of these.
Generally, constitutional protections do NOT apply to:
a. acts of the federal government.
b. acts of state government.
c. acts of administrative agencies.
d. acts of privately owned businesses.
An unliquidated debt can be described as:
a. a debt in which both its existence and amount is in dispute.
b. a debt in which the existence or amount is in dispute.
c. a debt disputed by the creditor but not the debtor.
d. a debt undisputed by either party.