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Business Law
Business Law Review
139
Business
11/18/2012

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Cards

Term
An offer to form a unilateral contract is accepted by a promise to perform
Definition
False
Term
An express contract must be in writing
Definition
False
Term
An executed contract is one that has been fully performed
Definition
True
Term
A counteroffer terminates an offer
Definition
True
Term
A promise to do what one already has a legal duty to do is not consideration
Definition
True
Term
The age of majority in most states is eighteen years
Definition
True
Term
A minor can disaffirm a contract only after reaching the age of majority
Definition
False
Term
A contract with an unlicensed professional is always enforceable
Definition
False
Term
A covenant not to compete that is part of an employment contract will generally be enforceable to the extent that its terms are reasonable
Definition
True
Term
When both parties are mistaken as to the same material fact, neither party can rescind the contract
Definition
False
Term
One of the elements of fraudulent misrepresentations is intent to deceive
Definition
True
Term
A contract entered into under duress is voidable
Definition
True
Term
The Statute of Frauds requires that fraud must be provided by a writing
Definition
False
Term
An oral contract for transfer of land is enforceable
Definition
False
Term
Jill offers to pay Kyle $500 if he jogs across the Golden Gate Bridge, Kyle can accept the offer only by jogging across the bridge. If Kyle jogs across the bridge, he and Jill will have formed
Definition
A Unilateral Contract
Term
Tom enters a coffee shop in which he has an open account, fills a cup of coffee, holds it up so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that he will be billed for it at the end of the month. Tom has formed
Definition
An Implied-In-Fact Contract
Term
Federal Oil Company and Great Apartments, Inc. sign a contract in which Federal agrees to deliver heating oil in exchange for Great's promise to pay for it. Federal delivers the oil. The contract is
Definition
Executory on the part of Great
Term
Curt promises to buy illegal copies of CD's and DVD's from Donna, who promises to deliver on May 1. These promises are most likely
Definition
Void
Term
Ann offers to buy a laser printer, with a case of paper and an extra cartridge, from Best office Products for $200. Curt Best's representative, says "OK, but no paper and no extra cartridge.: Curt has
Definition
Rejected the offer and made a counteroffer.
Term
First Steel Corporation offers to sell Great Foundries, Inc. seven tons of steel. Great Foundries sends an acceptance via First Steel's authorized mode of communication. This acceptance is effective when it is
Definition
Sent
Term
Jeff offers Kelly $800 for her 3-year-old computer. Kelly accepts, If a dispute arises, a court would likely

A. Enforce the deal after questioning the adequacy of consideration
B. Not question the adequacy of the consideration
Definition
Not question the adequacy of consideration
Term
U.S. Brokerage's promise to pay its employees a year-end bonus 'if it seems like a good idea at the time" is

A. An Enforceable Contract
B. An Illusory Promise
C. An Unconscionable Contract
Definition
An illusory promise
Term
George and Holly disagree as to the exact amount one owes the other. They form a new agreement that, on fulfillment will discharge the prior obligation. This is

A. An accord and satisfaction
B. A Covenant not to sue
C. A release
Definition
An accord and satisfaction
Term
Chris, a minor, signs a contract to purchase alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is

A. Valid but may be disaffirmed
B. Valid but may not be disaffirmed
C. Void as a matter of law
Definition
Void as a matter of law
Term
Ruth, a minor, charges groceries at Sam's Mart. two days later, ruth disaffirms the purchase. Ruth owes Sam's Mart

A. The Reasonable Value of the Groceries
B. The Retail value of the groceries
C. Nothing
Definition
The reasonable value of the groceries
Term
Joe, a minor, is living at home with his parents, bus signs a lease with a landlord to rent an apartment. Joe can

A. Disaffirm the lease because his parents can be held liable for it
B. Disaffirm the lease without liability
C.Not Dissafirm the lease because an apartment is a "necessary."
Definition
Disaffirm the lease without liability
Term
Owen buys a motorcycle while still a minor and continues to maintain and operate it after reaching the age of majority. Most courts would hold that he had:

A.Dissafirmed The Contract
B. Ratified The Contract
C.Rescinded The Contract
Definition
Ratified the contract
Term
A court adjudicates Holly mentally incompetent and appoints a guardian. Holly subsequently signs a contract to sell her house. The contract is
Definition
Void
Term
Joy and Karl contract for the sale of Joy's prize-winning show dog for $1000. Unknown to either party, the dog has died. Karl is
Definition
Not required to pay due the mutual mistake
Term
Mike and National Computer Services (NCS) enter into an oral contract under which Mike agrees to program computers for NCS for two years. This contract is
Definition
Not Enforceable
Term
Management Associates Corporation wants to sell its office building and furnishings to National Properties, Inc. (NPI) A writing is not required for
Definition
the sale of an office chair, valued at $50, to NPI.
Term
A THIRD PARTY HAS NO RIGHTS TO A CONTRACT TO WHICH HE OR SHE IS NOT A PARTY
Definition
FALSE
Term
MOST CONTRACTS ARE DISCHARGED BY OPERATION OF LAW
Definition
FALSE
Term
IN A CONTRACT FOR A SALE OF GOODS, THE USUAL MEASURE OF COMPENSATORY DAMAGES IS THE DIFFERENCE BETWEEN THE CONTRACT PRICE AND THE MARKET PRICE
Definition
TRUE
Term
IN A CONTRACT IN WHICH GOODS AND SERVICES ARE COMBINED, THE CONTRACT IS ALWAYS CONSIDERED AN AGREEMENT FOR THE SALE OF GOODS
Definition
FALSE
Term
IF A CONTRACT FOR A SALE OF GOODS DOES NOT INCLUDE THE TERMS FOR PAYMENT, THERE IS NO BASIS FOR ENFORCING IT
Definition
FALSE
Term
UNDER THE MIRROR IMAGE RULE, AS APPLIED UNDER THE UCC, AN OFFER MUST BE ACCEPTED IN ITS ENTIRETY WITHOUT MODIFICATION OR RESERVATION, OR NO CONTRACT IS FORMED
Definition
FALSE
Term
A DESCRIPITIVE LABEL OR WORDING IN PROMOTIONAL MATERIAL MAY CREATE AN EXPRESS WARRANT
Definition
TRUE
Term
AN IMPLIED WARRANTY OF MERCHANTABILITY ARISES IN EVERY SALE OR LEASE BY A MERCHANANT WHO DEALS IN GOODS OF THE KIND SOLD OR LEASED
Definition
TRUE
Term
A PLAINTIFF CANNOT SUCCEED IN A SUIT FOR NEGLIGENCE AGAINST A MANUFACTURER UNLESS THE PLAINTIFF BOUGHT THE DEFECTIVE GOOD FROM THE MANUFACTURER
Definition
FALSE
Term
TO SUCCEED IN A PRODUCT LIABLITY SUIT BASED ON STRICT LIABILITY, A PLAINTIFF MUST PROVE THAT A PRODUCT WAS IN A DEFECTIVE CONDITION WHEN THE DEFENDANT SOLD IT.
Definition
TRUE
Term
GEORGE AND HOLLY DISAGREE AS TO THE EXACT AMOUNT ONE OWES THE OTHER. THEY FORM A NEW AGREEMENT THAT, ON FULFILLMENT WILL DISCHARGE THE PRIOR OBLIGATION. THIS IS
Definition
AN ACCORD AND SATISFACTION
Term
ALAN AND BRITNEY ENTER INTO AN ORAL CONTRACT. ALAN LISTS THE TERMS ON A SHEET OF PAPER THAT INCLUDES HIS BUSINESS LOGO AND ADDRESS, AND SIGNS IT. BRITNEY DOES NOT SIGN THE PAPER. THIS AGREEMENT IS ENFORCEABLE BY
Definition
BRITNEY ONLY
Term
A CONTRACT BETWEEN COMPUTERS, INC. AND DIGITAL COPORATION CONTAINS A CLAUSE STATING THAT ANY ASSIGNMENT IS VOID . THIS EFFECTIVLEY PROHIBITS
Definition
ALMOST ANY ASSIGNMENT EXCEPT FOR RIGHT TO PAYMENT
Term
A-ONE CONSTRUCTION COMPANY ENTERS INTO A CONTRACT WITH BEN TO REMODEL CAROL'S HOME STORE, USING PRODUCTS FROM DELTA BUILDING SUPPLIES. EATS CAFE IS NEXT TO CAROL'S HOME STORE. THE REMODELING IS A GIFT FROM BEN TO CAROL. CAROL IS
Definition
AN INTENDED BENEFICIARY
Term
A-ONE CONSTRUCTION COMPANY ENTERS INTO A CONTRACT WITH BEN TO REMODEL CAROL'S HOME STORE, USING PRODUCTS FROM DELTA BUILDING SUPPLIES. EATS CAFE IS NEXT TO CAROL'S HOME STORE. THE REMODELING IS A GIFT FROM BEN TO CAROL. EATS PROPERTY WILL INCREASE AFTER CAROL'S STORE IS REMODELED. EATS IS
Definition
AN INCIDENTAL BENEFICIARY
Term
KRIS CONTRACTS TO WORK EXCLUSIVELY FOR LOCAL COMPANY DURING MAY FOR %5000. ON APRIL 30 LOCAL CANCELS THE CONTRACT. KRIS FINDS ANOTHER JOB DURING MAY BUT EARNS ONLY 3,000. KRIS FILES A SUIT AGAINST LOCAL. AS COMPENSATORY DAMAGES. KRIS CAN RECOVER
Definition
$2000
Term
MONA CONTRACTS TO REPAIR A COMPUTER FOR NEW DATA, INC. (NDI) MONA KNOWS THAT WITHOUT THE COMPUTER, NDI WILL LOSE A SALE. MONA DOES NOT PERFORM AS PROMISED. NDI FILES SUIT AGAINST MONA. AS CONSEQUENTIAL DAMAGES. NDI CAN RECOVER
Definition
THE LOSE OF PROFIT FROM THE LOST SALE
Term
ROY'S CHICKN SNACK ORDERS CHICKEN FROM STANDARD FOOD SUPPLIER, BUT STANDARD DOES NOT DELIVER. ROY'S WILL PROBABLY BE UNABLE TO ENFORCE THE AGREEMENT IF THE PARTIES
Definition
DID NOT SPECIFY A QUANTITY TERM
Term
PAT, A SALESPERON, FOR QUALITY TEXTILES, INC. SHOWS ROSA, A FABRIC BUYER FOR STYLE CLOTHING COMPANY, SAMPLES OF CLOTH, STATING THAT ANY SHIPMENT WILL MATCH THE SAMPLES. THIS STATEMENT IS
Definition
AN EXPRESS WARANTY
Term
GREAT FOODS, INC. SELLS FIFTY MP3 PLAYERS TO HAPPY STORES, INC. TO AVOID LIABILITY FOR MOST IMPLIED WARRANTIES, GREAT GOODS SHOULD STATE IN WRITING THAT THE PLAYERS ARE SOLD
Definition
AS IS
Term
FUN STUFF CORPORATION MANUFACTURERES SKATEBOARDS, WHICH IT SELLS TO GOOD TIMES STORES, GOOD TIMES SELLS THE SKATEBOARDS TO CONSUMERS, INCLUDING HOLLY. IN A PRODUCT LIABILITY SUIT BASED ON STRICT LIABILITY DUE TO A DEFECT IN THE SKATES, HOLLY MAY RECOVER FROM
Definition
FUN STUFF AND GOOD TIMES
Term
Webster vs. Blue Ship Team Room
Definition
Bone in fish
Term
Hammer v. Sidway
Definition
5,000 to son , there was consideration. Had to pay the 5,000 because he gave up the things
Term
Lucy v. Zehmer
Definition
Objective Theory,
Term
SEC v Texas Guilford Suplher
Definition
10b-5's prohibition against insider trading (they kept secrets about the amount of oil they had found)
Term
1933 Act vs 1934 Act
Definition
1993 requires disclosure, 1934 regulations and registration of SEC
Term
Hadley vs. Baxendale
Definition
was not forceeable. mill part, taking it and not responding.
Term
A contract is an agreement that can be enforced in court
Definition
True
Term
An agreement includes an offer and acceptance
Definition
True
Term
A contract can only be created when a promise is given in exchange for another promise
Definition
False
Term
In an implied-in-fact contract, the parties; conduct creates and defines the terms of their contract
Definition
True
Term
An executed contract is one that has been fully performed
Definition
True
Term
An offer must be communicated to the offeree in order to be effective
Definition
True
Term
Intent to contract is determined by the offeror's subjective intentions, beliefs, or assumptions
Definition
False
Term
Under the mailbox rule, an acceptance can be valid as soon as it is sent
Definition
True
Term
A promise to dow what one already has a legal duty to do is not condisderation
Definition
True
Term
A covenant not to compete in the sale of an onging business is unforceable
Definition
False
Term
Pete a judge can apply the doctrine of quasi contract to dispute between Quality Service Company and Regulated Office Styems
Definition
only if there is not valid contract cover the area in question
Term
Ann offers to buy a laser printer, with a case of paper and an extra cartridge, from Best Office Products for $200. Curt, Best's representative, says "OK, but no paper and no extra cartrdige." Curt has
Definition
rejected the offer and made a counteroffer
Term
Wally's Warehouse offers to sell a certain used forklit to Value Lumber Outlet, but it is stolen before Value accepts. Most likely, Wallys must obtain
Definition
nothing to for Value because the theft terminated the offer
Term
Shelby offers to make copies of Relay Company's business conference videotapes, CDs, DVDS, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when
Definition
Sent
Term
Quality Steel 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 the consideration if
Definition
something of value passed between the parties
Term
Webline Retail Sales, Inc. promises its salaried employess a bonus at the end of the year if managment thinks it is warranted. This promise is
Definition
unenforceable because it is not supported by consideration
Term
Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilies. Six months later, after reaching the age of majority. Mica continues to use the club. This act is
Definition
Ratification
Term
Intoxicated but fully aware of the consequences, Uri agrees to a two year cell-phone service contract with Wander Talk, Inc. At more than average market price. This contract is
Definition
Enforceable
Term
A court adjucates Huck mentally incompetent and appoints Inez to be his guardian. Later without Inez's knowledge Huck signs a contract to sell his farm to Kyle for its real market value. This contract is
Definition
Void
Term
In a contract in which goods and services are combined, the goods part of the contract is goverened by UCC Article 2 and the services part of the contract is governed by the common law of contracts
Definition
False
Term
Under the mirror image rule, an offer must be accepted in its entirety without modification or reservation, or no contract is formed
Definition
True
Term
An independent contractor is an employer who controls his or her agent's performance
Definition
False
Term
A fidicuary relationship involves trust and confidence
Definition
True
Term
A covenant not to compete that is part of an employment contract and contains reasonable terms will be generally enforceable.
Definition
True
Term
A principal is not liable to a third party for any contract made by the agent acting outside the scope of his or her authority
Definition
True
Term
Under the doctrine of respondeat superior, an agent is liable for the principal's negligence.
Definition
False
Term
A principal is reponsible for all intentional torts committed by an agent
Definition
False
Term
Willful violtions of the Securities Act of 1933 may be subject to criminal proscecution
Definition
True
Term
The Secruties Exchange Act of 1934 provides continious perioidic discolsures by publicy held corporations
Definition
True
Term
The basic purpose of antitrust law is to regulate economic competition
Definition
True
Term
Persons in foreign nations cannot be subject to US antitrust law
Definition
False
Term
An inuured party's common-law suit against a polluter may be dismissed for lack of standing
Definition
True
Term
Once the government begins to clean up a waste disposal site, only the party who generated the waste must contribute to the cost
Definition
False
Term
ABC Construciton Company enters into a contract with Betty to remodel Ben's Health Food Store, using produce from Lowe's. XYZ is a health foods restaurant next door to Ben's store and several of Ben's customers stop by XYZ to eat meals. The remodleing is a gift from Betty to Ben. Halfway through the project, ABC refuses to finish the job. The contract can be enforced against ABC by
Definition
Betty or Ben only
Term
During the first week in November the following events occured:
Nov 1 Cinds a letter to Betty offering to sell a rare book for $250
Nov5 Betty receives the revoation and Cindy receives the counteroffer. Is there a contract between Betty and Cindy?
Definition
yes, the offer accpeted Before Betty had notice of the revoation and before Ann had notice of the counteroffer
Term
If Rudy offers Oscar $500 for his $2000 plasma TV and OScar knowling and voluntarily agrees to the offer then
Definition
A court will probably not question the adequacy of consideration
Term
Jeff was a subcontract, biddding on a contract for ABC Corp total bid of 3500 $35000....
Definition
Although there is a unliateral mistake, Jess should be able to rescind the contract because it was a clerical error and ABC knew that there was a mistake
Term
Slick sells Guillbe an oridanry maple tree which according to Slick grows money
Definition
Slick will win because Gullible's reliance on Slick's ridiuclous claims was not justified
Term
In order to satisfy the common law of Statute of Frauds, the writing to evidence the contract must
Definition
both b & c but not A
Term
Mark works as a bartender at The Little Nipper, A local bar...
Definition
Although the statue is regulatory, its purpose is to raise reveneu. Little Nipper wins
Term
Boozer Betty is an alcholic. One day in a bar, betty contract to sell her grandmother's diamond
Definition
The contract is voidable by Betty if she was so intoxicated at the time of the contract that she could not understand the nature and consequence of the transcation
Term
Mango Corporation believes that Melon Corporation engages in anticompetitive behavior
Definition
Mango, its competitors, The FTC and Us Dept of Justice
Term
Cadrio Inc makes and sells Drawdown the most prescibed name brand heart medicine
Definition
a violation of the Sherman Act
Term
Dhani, an ccount for Eurkea Inc
Definition
Dhani, Fay, Geoff and Hu are all iable for insider trading.
Term
Dispare-impact discrimination occurs when an emplyer intentionally discirminated against an employee who is a member of a protected class
Definition
False
Term
Damages are available for victims of intentional employment discriminiation based on gender, religion, age, or disability
Definition
True
Term
Under the Americans with Disabilities Act of 1990, a person with a mental impairment that substantially limits everyday activies is not disabled
Definition
False
Term
The americans with disabilities act of 1990 defines disable persons as personas imparied mentally or physically in any way
Definition
False
Term
One of the disadvantages of a sole proprietorship is that the owner is liable for the losses of the business
Definition
True
Term
An association cannot be a parternship without an express agreement
Definition
False
Term
In most states a general partner is jointly and severally liable for all partnership obligations
Definition
True
Term
A limited liability company cannot be taxed as a partnership
Definition
False
Term
The beneficiaris of a business trust are personally laible for its obligations
Definition
True
Term
Contract law governs franchise relationships
Definition
True
Term
The act of state doctrine provides that only a head of state can make treaties with another nation
Definition
False
Term
A foreign state is iummune from the jurisdiciton of U.S. courts as long as the state is involved in commerical activity in the US
Definition
False
Term
Restrictions on exports may include tariffs
Definition
False
Term
Restrictions on imports may inlcude quotas
Definition
True
Term
The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members
Definition
True
Term
A forum-selction clause indicates the place for the resolution of a dispute arising under a contract
Definition
True
Term
Hoppy who works as an employee for Imperial Power Corporation suffers an injury in an accident. Hoppy will be compensated under state workers' compensation laws
Definition
only if the injury occured on the job
Term
Over a forty year period, Ewa worked in a variety of jobs. She was also occasionaly unemployed, briefly hospitalized, and suffered a temporary disability. She retired last year. The key law on all these subjects is
Definition
The social security act
Term
Southwestern Foods Corporation operates a packaging plant near the border between the United States and Mexico. Due to the Location, it would be easier for Southwester to employ noncitiznes, It is legal for U.S. employer to
Definition
None of these choices
Term
Cody believes that Delta Corporation has discriminated against him on the basis of gender. Cody files a suit against Delta under Title VII. TO establish a prima face case of employment discrimination, Cody must show that
Definition
Cody is member of a protected class
Term
Hu believe that he is a victim of a form of employment discrimination that falls under the Title VII of the civil rights act compliance with the statute is monitored by
Definition
the Equal Employment Opportunity Commission
Term
United Industrial Corporation gives preferential treatment in hiring and promotion to the members of all protect classes. This treatment results in discrimination agianst members of the majority . This is
Definition
reverse discrimination
Term
Kyla is a salespoerson for Liberty Financial Corp. Micky is also a Liberty salesperson. Neil is Kyle and Micky's supervisor. Owen is a Liberty customer. Liberty may be liable for sexy harrassment to Kyla by
Definition
Micky, Neil, or Owen
Term
Leigh wants to go into business construction contraction. Among the reasons that would probably convicne Leigh to set up his business as a sole proprietorship would be
Definition
its greater oganizational flexibiility
Term
Build Rite Construction Coorp and Deals R Us Inc combine their efors to build an office and retail complex. Their form of business is
Definition
Joint Ventrue
Term
Omega Corp and Precision Coding Inc two software firms wish to combine their reserach develpopment capaiblites to make a specail lmitied edition computer agme. The most approporaite legal enttity for this might be
Definition
joint venture
Term
Stacy contracts to buy a franchise from Tender Steak House Company. In this contract as in most franchise contract the determination of the terrirtory to be served is made by
Definition
Tender Steak House
Term
The govnt of the United States and the govnts of other nations have the power to enforce their respective national laws withing their borders. THe power to enforce international law within the borders of all nations rests with
Definition
no court or international organization
Term
Michael a citizen of Ireland, and Nina a citizen of US enter into a contract. When nina breaches the contract michael obtains an award of damages in an Irish court. He asks a US court to enforce the award. The US court defers and enforces the irsh courts decree . This is
Definition
the principle of comity
Term
Mountain mining company, A US firm owns property in Bolivia. The govnt of Bolivia seizes teh property for an illegal purpose without paying just compensation. This is
Definition
Confiscation
Term
Sudan seizes the assets of Triage Medical In, A US FIRM Triage's recovery form Sudan in US court may be prevented by
Definition
the act of state doctrine
Term
The US taxes each barrel of imported oil at a flat rate. This is
Definition
a tariff
Term
Chiang LTD a Chinese firm imports its good into the US and offers those goods for sale at a less than fair vaule . This is
Definition
dumping
Term
The US is a member of the WTO which among its members
Definition
minimizes trade barries
Term
Fact Patter First state bank issues a letter of credit in favor of Oboe company an American firm, to faciliate an intertional sales contract to buy resources from Lapland Miningng lTD A finnish company. First State Bank must pay Lapland when lapland
Definition
Complies with the terms and conditions of the letter of credit
Term
Fact Patter First state bank issues a letter of credit in favor of Oboe company an American firm, to faciliate an intertional sales contract to buy resources from Lapland Miningng lTD A finnish company.In a letter of credit the benefiricary is
Definition
Lapland
Term
Suisse Internationle, A swiss maker of athletic equpiment enters into a price fixing agreeement with Total WOrld SPorts a US wholesale of Suisse's proucts. U.S. courts will apply U.S. Antri trust laws if
Definition
The price fixing has a substantial effect on U.S. Commerce