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Home » Business Law » Page 1601

Business Law

Q: Which of the following imposes on a manufacturer a duty to design its products so that they are safe not only for their intended use but also for any reasonably foreseeable use? A. Risk-utility test B. Miller test C. Consumer expectations test D. Dominant factor test

Q: Nolan has an accident when he misses a stop sign and crashes into another car whose driver is drunk. Nolan, in spite of having sustained $11,000 worth injuries, is able to recover only $8,800 as his own negligence is found to be 20 percent responsible for the injury. The type of negligence defense most likely availed in this case is: A. comparative negligence. B. contributory negligence. C. assumption of risk. D. statute of limitations.

Q: The historic rule that any contribution by the plaintiff to his or her own harm constitutes a complete bar to recovery is called _____. A. comparative negligence B. strict liability C. contributory negligence D. statute of limitations

Q: An intentional invasion of a persons solitude is labeled a(n) _____ if it would be highly offensive to a reasonable person. A. intrusion B. false light C. fraud D. assault

Q: Which of the following statements is true of a false light claim? A. It would need to be highly offensive to a reasonable person. B. It involves injury to ones reputation rather than emotional well-being. C. It deals with interferences that often take the form of light, noise, smell, or vibration. D. It is often treated as the tort of injurious falsehood.

Q: Mark, the owner of a dry cleaning store, refuses to return an expensive tuxedo to Jim, his customer, for a day as he mistakenly believes that Jim has not made payments for the services availed in the past three months. This is an example of a(n) _____. A. trespass to personal property B. misappropriation C. conversion D. injurious falsehood

Q: Which of the following is an intentional tort that is directed against the property of a person? A. Misappropriation B. Injurious falsehood C. Libel D. Battery

Q: Which of the following describes the tort of nuisance? A. It occurs when an individuals name or image is wrongfully used without permission for commercial purposes. B. It is a form of defamation that is directed against the property of a person. C. It is the situation in which enjoyment of ones land is impaired because of some tortious interference. D. It involves an intentional interference with a persons right to fully enjoy his or her personal property.

Q: Which of the following is a necessary condition for establishing defamation? A. A true statement about the victim B. Harm to the victims reputation C. A statement that is so inherently damaging that actual injury need not be shown D. Communication of a false statement to only the victim

Q: Which of the following statements is true of libel? A. Libel, leaving a more permanent stain, generally requires a showing of actual harm. B. Any dead person can be the victim of defamation. C. Libel about a companys products or property often is treated as the tort of injurious falsehood. D. Courts do not treat defamatory radio and television statements as forms of libel.

Q: When an individuals name or image is wrongfully used without permission for commercial purposes, it is called a(n) _____. A. assault B. intrusion C. false light D. misappropriation

Q: Which of the following statements is true of the tort of negligence? A. Intent is absent, but because of one partys carelessness, another has suffered injury. B. It is limited to unreasonably dangerous products and practices. C. It is a no-fault concept where an individual is responsible for harm without proof of carelessness. D. The plaintiff needs to show that the harm itself was intended.

Q: Intentionally touching another in a harmful or offensive way without legal justification or the consent of that person is a(n) _____. A. assault B. battery C. defamation D. fraud

Q: Intentionally causing another to reasonably believe that he or she is about to be the victim of a battery is a(n) _____. A. slander B. libel C. indictment D. assault

Q: Puffing creates an express warranty.

Q: A description of goods which is made part of the basis of a bargain creates an express warranty that the goods shall conform to the description.

Q: A full warranty requires free repair of any defect.

Q: Strict liability requires proof of negligence on the part of the defendant.

Q: Under strict liability, coverage generally extends to only personal injuries and not property damage.

Q: To establish a successful negligence claim, a plaintiff must establish that the defendant owed a duty of due care to the plaintiff.

Q: A showing of res ipsa loquitur requires that the accident ordinarily would not happen absent the defendants negligence.

Q: The risk-utility test holds that a product is negligently designed if the benefits of a products design are outweighed by the risks that accompany that design.

Q: According to the contributory negligence defense, a plaintiffs recovery is reduced by a percentage equal to the percentage of the plaintiffs fault in the case.

Q: In many states, a plaintiff who willingly enters a dangerous situation and is injured will be given a nominal amount as recovery.

Q: A warranty is simply a non-contract-based guarantee.

Q: Conversion is the situation in which enjoyment of ones land is impaired because of some tortious interference.

Q: Victims of negligence in a product liability case can bring actions against all careless parties in the chain of production and distribution.

Q: Falsely claiming that a competitors product is defective or harmful might constitute injurious falsehood.

Q: Libel generally requires a showing of actual harm.

Q: Raising ones hand as if to strike another even though the blow never transpires constitutes the tort of assault if the victim reasonably thought herself to be in immediate danger.

Q: Describe the purpose of the doctrine of promissory estoppel and list the three elements required to prove it in court. Give an example to illustrate the use of a promissory estoppel.

Q: Explain the term accord and satisfaction and explain how it relates to the discharge of a contract. What are the two ways in which contracts can be discharged by lawful excuses?

Q: Identify and define any three types of damages that may be available as remedies in law in a contract action and give an example of each.

Q: Explain any two types of equitable remedies in contract cases with an example each.

Q: Torts are civil wrongs that arise from contracts.

Q: Intentional torts involve voluntary acts that harm a protected interest.

Q: _____ is an equitable remedy that permits the court to rewrite a contract where it imperfectly expressed the parties true intentions. A. Assignment B. Reformation C. Injunction D. Rescission

Q: A court order that may either require or forbid a party to perform a specified act is a(n) _____. A. rescission B. reformation C. injunction D. quasi-contract

Q: What are the features to be exhibited by a legally enforceable contract? Explain how contracts can be discharged on the basis of conditions.

Q: Explain the difference between a unilateral contract and a bilateral contract and give a concrete example of each. Highlight the different types of contracts that denote the performance and enforceability of a contract.

Q: Describe some of the elements of a valid offer with examples.

Q: Explain the three kinds of irrevocable offers with examples.

Q: Which of the following statements is true of incidental beneficiaries? A. Often a second party receives benefit from a contract. B. The benefit received was not the contracting parties primary purpose or intent. C. The primary purpose in entering a contract is to make a gift to another. D. The beneficiary can sue the contracting party for payment.

Q: Jim makes an agreement to play live music at Rustys Tavern every Thursday night. Last Thursday, he had the flu and hence could not go to Rustys. What can be concluded about the agreement with respect to Jims condition? A. His performance can be excused due to a condition precedent. B. His performance can be excused due to a condition subsequent. C. His absence should be penalized because personal service contracts are never excused. D. His absence should be penalized because there was a nonmaterial breach of contract.

Q: Identify the clause that specifies that an event must occur before the parties to a contract are obliged to perform. A. An express conditions clause B. A conditions concurrent clause C. A conditions precedent clause D. An implied conditions clause

Q: Which of the following statements indicates a material breach of contract? A. A party falls beneath substantial performance and does not have a lawful excuse for that failure. B. Complete performance is not achieved because of minor deviations from the agreed-upon performance. C. Before performance is due, a party indicates by word or deed that she or he will not perform. D. A party performs the tasks and completes the contract.

Q: Which of the following statements is true of the conditions concurrent clause? A. Each performance is independent. B. It specifies that the parties are to perform their duties at the same time. C. An event must occur before the parties are obliged to perform. D. It excuses performance if a future event transpires.

Q: Which of the following statements is true of implied-in-law conditions? A. The court imposes these conditions on the contract to avoid unfairness. B. They are often prefaced by words such as when, if, and provided. C. They are derived by the court from the conduct of the parties and the circumstances surrounding the bargain. D. The parties have no binding duties until the specified event occurs.

Q: Intentional untruths constitute _____. A. misrepresentation B. falsification C. fraud D. mistake

Q: Which of the following statements is true of consideration? A. It is the universally accepted legal value that a party agrees to pay to another. B. It is always settled in terms of tangible goods. C. It consists of a legal detriment to the promisee that is bargained for by the promisor. D. It is received by a promisee from a promisor.

Q: The doctrine of _____ states that a promisor is stopped from denying the existence of a contract where a promisee has detrimentally relied on that promise. A. ultra vires B. promissory estoppel C. substantial performance D. promissory note

Q: When a promisees primary purpose in entering a contract is to make a gift to another, that third party is a(n) _____ of the contract. A. incidental beneficiary B. contingent beneficiary C. creditor beneficiary D. donee beneficiary

Q: Meg, who is on the lookout for a temporary security officer, approaches a security agency. The agency sends one of its reserve security officers to guard Megs commercial building. Which of the following types of contract does Meg enter into with the security agency? A. Bilateral contract B. Implied-in-fact contract C. Unilateral contract D. Quasi contract

Q: A contract is labeled _____ until all parties fully perform. A. anticipatory B. executory C. contributory D. declaratory

Q: Which of the following types of contracts refers to those entered by minors who have the option, under the law, of either disaffirming or fulfilling most contracts? A. Unenforceable contracts B. Void contracts C. Unconscionable contracts D. Voidable contracts

Q: Skye, who is unaware of Nathans mental incompetency, enters into an agreement with Nathan to paint her house. Skye does not know that Nathan has been adjudged insane by a court of law and therefore is angry at him for not finishing the work on time. This agreement between Skye and Nathan is an example of a(n) _____ contract. A. voidable B. option C. enforceable D. void

Q: When an offeror promises to keep an offer open for a specified period and, in return, the offeree pays consideration, the parties have created a(n) _____ contract. A. voidable B. void C. option D. unenforceable

Q: Sometimes genuine assent is not secured and a contract may be rescinded because one of the parties is forced to agree, for fear of harm. The legal defense available in this situation is _____. A. duress B. undue influence C. fraud D. mistake

Q: A person offers a $100 reward to anyone who finds his lost dog. This is an example of a(n) _____ contract. A. bilateral B. unilateral C. express D. implied-in-fact

Q: Which of the following kinds of contracts must be in writing to be enforceable? A. A contract to construct a building on ones own land B. Mutual exchange of marriage promises C. Promises that can be performed within a year D. A promise by an executor where the payment comes from his or her personal funds

Q: Legally enforceable contracts must exhibit _____, which means parties must have the legal ability to enter the contract; that is, they must be sane, sober, and of legal age. A. genuineness of assent B. consideration C. legality D. capacity

Q: If a mentally incompetent person is unable to understand the purpose and effect of a contract but has not been legally adjudged insane, _____. A. the competent party has an absolute right to rescind the contract B. the contract would not be voidable at the option of the impaired party C. the contract would not be void at the option of the impaired party D. the impaired party would have to pay the reasonable value of any necessaries received under the contract

Q: Which of the following refers to the term blue laws? A. They are laws forbidding the practice of certain professions without a license. B. They are laws forbidding usury. C. They are laws forbidding the conduct of certain kinds of business on Sundays. D. They are laws forbidding gambling.

Q: _____ are agreements that are so thoroughly one-sided that fairness precludes enforcing them. A. Yellow dog contracts B. Quasi-contracts C. Voidable contracts D. Unconscionable contracts

Q: Which of the following exceptional circumstances admits parol evidence? A. To prove circumstances that would validate a written contract B. To delete terms from a complete written contract C. To explain ambiguities in a written contract D. To infer the terms of a contract in a one-sided manner

Q: The victim of a breach can recover just the direct losses from the breach and not any indirect losses that were incurred as a consequence of that breach.

Q: The point of nominal damages is to illustrate the wrongfulness of a breach.

Q: Which of the following statements is true of the Uniform Commercial Code (UCC)? A. It governs contracts for services. B. It covers cars, clothing, and appliances. C. It regulates transactions not involving the sale of goods. D. It covers real estate, stocks, and bonds.

Q: _____ refers to the bargained-for legal value that one party agrees to pay or provide to secure the promise of another. A. Discharge B. Consideration C. Agreement D. Reformation

Q: Problems of unconscionability often arise in situations in which: A. a contract to commit a crime or a tort is illegal and unenforceable. B. the contract, if enforced, would not be in the best interest of the public. C. the bargaining power of one of the parties is much superior to the other. D. a party participates in any potentially hazardous activity.

Q: A third party cannot enforce a contract where that contract was expressly intended to benefit the third party.

Q: Failure to fully perform without a lawful excuse for that failure results in a breach of contract.

Q: According to discharge by operation of law, the contractual responsibilities of a debtor may be discharged by a bankruptcy decree.

Q: Anticipatory breach of contract occurs when a party, before performance is due, indicates by word or deed that she or he will not perform.

Q: A fully performed oral contract, not in compliance with the Statute of Frauds, will be rescinded by the courts.

Q: A valid offer must include the present intent to enter a contract.

Q: An effective offer must be the product of a present intent, it must be definite, and it must be communicated to the offeree.

Q: An offeror cannot revoke an offer any time prior to acceptance.

Q: Unilateral offers are not accepted by performance.

Q: The mailbox rule states that an acceptance is effective when sent even if never received.

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