The stability and predictability of the law is essential to business activities. ANSWER: TRUE 2. Uniform laws apply in all states, including those in which the laws have not been adopted. ANSWER: FALSE 3. A state law that conflicts with the U. S. Constitution will be deemed unconstitutional. 4. Damages is a remedy at law. 5. Equitable remedies include injunctions and decrees of specific performance. 6. How the courts interpret a statute determines how that statute is applied. 7.
Minimum contacts with a jurisdiction are never enough to support restriction over a nonresident defendant. 8. Contradistinction’s exists when both federal and state courts have the power to hear a particular case. 9. Any lawsuit involving a federal question can originate in a federal court. 10. Venue is the term for the subject matter off case. 1 1 . The federal equivalent of a state trial court is a U. S. Court of appeals. 12. Alternative dispute resolution refers to any method for resolving a dispute outside the court system. 13. An arbitrator can never render a legally binding decision.
ANSWER: False 14. The checks and balances in the U. S. Constitution prevent any one branch f government from exercising too much power. 15. When there is a direct conflict between a federal and a state law, the state law is rendered invalid. 16. The First Amendment does not protect commercial speech as extensively as noncommercial speech. Answer: TRUE 17 A business firm’s profits may suffer if the firm acts unethically. 18. An ethics program can clarify what a company considers to be unacceptable conduct. 19. Corporate ethical policies and programs must be integrated throughout the firm to be effective. 0. The purpose of tort law is to provide remedies when legally protected interests have been invaded. 21 -Unintentionally causing a party to break a contract may constitute wrongful interference with a contractual relationship. 22. To determine whether a duty of care has been breached, a judge asks how he or she would have acted in the same circumstances. 23. Business owners have no duty to exercise reasonable care to protect invitees. Answer: FALSE 24. The degree of care to be exercised in a situation can vary with a person’s profession or occupation. 25. F no harm results from an allegedly negligent act, there is no liability. Multiple choice questions (2 points each) 1. Clue, a Delete Dairy salesperson, follows Edna, a salesperson for Festive Foods, a Delete competitor, as Edna visits stores to make sales. Clue solicits each of Dean’s customers. Clue is most likely liable for c. Wrongful interference with a business relationship. 2. K Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize K instead of Purity. This is d. None of the choices. 3. Bette backs out of City Parking Garage, colliding with Dill’s car.
Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as d. A reasonable person. . Reaching for a bottle of soda from a display in a Big Bargains store, Cody slips in a puddle of spilled soda and falls, suffering an injury. Biggs employees are not aware of the spilled soda until Cody falls. In a suit against Big, Cody will most likely d. Win, because the spilled soda was foreseeable. 5. Caleb is driving a car in which Dona is a passenger when an accident occurs. Caleb and Dona are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dona on a negligence theory because d.
Dona was not injured. 6. Sam, an engineer, supervises the construction of a new bridge. When the bridge collapses due to faulty construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to the same standard of care as b. Other engineers. 7. Nick sees Opal, a stranger, in peril, but does not attempt to rescue her. Opal could successfully sue Nick for b nothing. 8. Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls, smashing through the roof off house, killing Chris. But for Barb’s negligence, Chris would not have died.
Regarding the death, the crash is the a. Cause in fact. 9. Lieu enters Mountain Triathlon, an athletic competition in which Lieu has never competed. Regarding the risk of injury, Lieu assumes the risks d. Normally associated with the Triathlon. 10. Beth is injured in a car accident and sues Cal, alleging negligence. Cal claims that Beth was driving more carelessly than he was. Comparative negligence may reduce Beet’s recovery a. Even if Beth was only slightly at fault. 1 1 -Earth Movers, Inc. , uses dynamite to prepare land for highway projects. Strict liability is imposed on this activity because c. He activity is off dangerous nature. 12. Eva owns Fast-Rate Salvage, a demolition company. A demolition by a Fast- Rate crew injures Glen, a passerby. Under the theory of strict liability, Eva must pay for Glen’s injury d. Whether or not the Fast-Rate crew was at fault. 13. Expert Papers, Inc. , contracts with Fabricated Building Corporation to repave Fabricator’s parking lot for which F-fabricated agrees to pay. The elements of this, and any other, contract do not include d. Practicality. 14. Bib claims that Carol breached their contract. Carol responds that she never intended to enter into a contract with Bob.
The intent to enter into a interact is determined with reference to b. The objective theory of contracts. 15. Mona asserts that a deal she entered into with Ante is an unenforceable contract. Defenses to the enforcement of a contract include d. The lack Of a party’s genuine assent. 16. Fool tells Gregory that she will buy his textbook from last semester for $65. Gregory agrees. Fool and Gregory have b. An express contract. 17. Phil enters into a contract with Quality Resorts, Inc. , to work as a chef. Under the plain meaning rule, the meaning Of this contract must be determined by reference to c. He face of the instrument. 8. Interstate Coffee Brokers, Inc. (CUBIC), offers to sell Java Roasters, Inc. , fifty bags of coffee beans. Java rejects the offer. The offer is a. Terminated. 19. Bill offers to sell his Consumer Service Center business to Diana for $100,000. Diana replies, “The price is too high. I Will buy it for $90,000 ” . Diana has c. Rejected the offer and made a counteroffer. 20. General Credit Corporation’s promise to pay its employees a year-end bonus “if it seems like a good idea at the time” is b. An illusory contract. 21 -Deanne and Lowell enter into a contract for the design of an addition to
Dyne’s house for which he agrees to pay Lowell. Lowell transfers his right to payment under the contract to Flex Construction Company. Flex is b. An assignee. 22. Pat, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1 ,OHO. Pat’s attempt to transfer his contract duties to Ruth, an inexperienced pianist, will probably be d. Prohibited because Pat and Ruth have very different skill levels. 23. Lois takes out a life insurance policy with Mega Insurance Corporation that names her son, Nero, as the beneficiary. This is d. Hired party intended beneficiary contract. 24. Mona contracts to repair a computer for Inundate, Inc. (NDIS). Mona knows that without the computer, NDIS will lose a sale. Mona does not perform as promised. NDIS files a suit against Mona. As consequential damages, NDIS can recover c. The loss of profit from the lost sale. 25. Era orally agrees to buy a unique collection of sports memorabilia for $1 ,OHO from Jane and sends her $250 as a down payment. When Air sends her the rest of the price, Jane refuses to ship Air the collection. Air should d. Specific performance.
