BLAW SHIZZZ

43 terms by bwe9 

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IF YOU FAIL YOU NO COME HOME.

Employees with authority to deal and contract with third parties are agents of their employers.

T

Agency relationships do not exist outside employee relationships.

F

There must be a written agreement between two parties to create an agency relationship.

F

Authority must be either express or implied in order for a person to bind another to an act as their principle.

F

Apparent authority requires that a "principle" cause a third party to believe that an "agent" has authority to act.

T

The knowing acceptance by a principle of an unauthorized transaction by an agent will likely be ratification of the transaction.

T

A partially disclosed principal is always liable to a third party for contracts made by the agent acting outside the scope of his or her authority.

F

A principal is not liable for an agent's tort simply because it was committed while the agent was acting within the scope of employment.

F

Beta Distribution Company grants its agent Cathy an exclusive territory in which to sell Beta products. Beta likely cannot compete with Cathy in that territory under the principal's duty of
a. Compensation.
b. Cooperation.
c. Indemnification.
d. Reimbursement

B

Only the manufacturer of a defective product can be strictly liable for an injury or damage caused by the product.

F

Product liability does not apply to suppliers of component parts.

F

Which of the following are the commonly used theories of recovery in product liability cases?
a. Negligence, breach of contract, and breach of warranty
b. Strict 402A product liability, breach of contract, and breach of warranty
c. Breach of warranty, negligence, and breach of contract d. Negligence, strict 402A product liability, and breach of warranty
e. Civil, criminal, and administrative

D

Which of the following must a plaintiff generally show in order to recover in a product liability lawsuit?
a. That the product was defective.
b. That the defect existed when the product left the defendant's control.
c. That the defendant was negligent.
d. That the product is defective and also that the defect existed when the product left the defendant's control.
e. That the product is defective, that the defect existed when the product left the defendant's control and also that the defendant was negligent.

D

Which of the following references the relationship of being a party to a contract?
a. Being in privity of contract
b. Being in association with contract
c. Being in connect to contract
d. Being in affiliation with contract
e. Being connected by contract

A

Which type of warranty would identify the written warranty contained in the box of a product?
a. express warranty
b. implied warranty
c. nascent warranty
d. exculpatory warranty

A

Jill and Kurt enter into a contract under which Jill agrees to pay Kurt $125 for a new briefcase. If Kurt transfers his right to receive payment to Ingrid, Kurt's transfer payment is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. not a delegation, an assignment, or a third party beneficiary contract.

B

Vicky makes a contract with Warren with the intent benefit, by gift, Alex. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. not a delegation, an assignment, or a third party beneficiary contract.

C

Creditor beneficiaries can enforce their rights under a contract whenever the contract is valid.

T

. Which of the following is a contractual party who agrees to do something for the other party?
a. Obligor
b. Obligee
c. Assignor
d. Assignee
e. Boundee

A

What is the term for the party to a contract who transfers her rights to a contract to a third party?
a. Transformative
b. Transfermorph
c. Relator
d. Assignor
e. Assignee

D

A[n] ______ occurs when a party to a contract transfers her duty to perform to a third party who is not part of the original contract.
a. Transfer
b. Assignment
c. Delegation
d. Performance
e. Unenforceable occurrence

C

Bill contracts with Judy to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Bill's duty to Judy, if any?
a. Bill has no duty to Judy so long as she did not expressly object to the delegation
b. Bill has no duty to Judy regardless of whether she objected to the delegation
c. Bill continues to be bound to Judy to see that her car gets washed
d. Bill continues to be bound to Judy to see that her car gets washed only if the contract expressly prohibited delegation
e. Bill continues to be bound to Judy to see that her car gets washed unless he already paid Paul for the job

C

Which of the following is a type of intended beneficiary?
a. Creditor
b. Donee
c. Incidental
d. All the above
e. Creditor and donee, but not incidental

E

Express warranties may be found in advertisements.

T

To invoke the implied warranty of merchantability, the purchaser or lessee must have purchased or leased the good from a merchant.

T

In order to disclaim the implied warranty of fitness for a particular purpose, the seller must disclaim the warranty in writing.

T

Which of the following types of warranties are automatically, as a matter of law, injected into a contract?
a. Express
b. Implied
c. Acknowledged
d. All the above
e. Express and implied, but not acknowledged

B

Which of the following is true regarding the implied warranty of fitness for a particular purpose?
a. It applies in every case in which an express warranty is found
b. It applies in every case in which an implied warranty of merchantability is found
c. It applies in every case in which either an express warranty or an implied warranty of merchantability is found
d. It applies in every sales transaction involving a merchant
e. None of the above

E

CPA QUESTION Yost contracted with Egan for Yost to buy certain real
property. If the contract is otherwise silent, Yost's rights under the contract are:
(a) Assignable only with Egan's consent
(b) Nonassignable because they are personal to Yost
(c) Nonassignable as a matter of law
(d) Generally assignable

D

One of the criteria for a valid assignment of a sales contract to a third party is that the assignment must:
(a) Not materially increase the other party's risk or duty
(b) Not be revocable by the assignor
(c) Be supported by adequate consideration from the assignee
(d) Be in writing and signed by the assignor

A

Amanda agrees to pay Jennifer $300 for a pair of tickets to see Jerry Seinfeld. "Seinfeld is my boyfriend Octavio's favorite comedian, and the tickets will be a great birthday present for him," she tells Jennifer. Amanda pays up and tells a delighted Octavio about the tickets, but Jennifer never delivers them. Octavio is a(n) ________________ beneficiary of the agreement, and as such, he ______________ have a right to enforce the contract himself.
(a) donee; does
(b) donee; does not
(c) incidental; does
(d) incidental; does not

A

A novation completely releases an ____________ from any further liability. To be effective, it __________ require the agreement of both the obligor and obligee.
(a) obligor; does
(b) obligor; does not
(c) obligee; does
(d) obligee; does not

A

Vick bought a used boat from Ocean Marina that disclaimed "any and all warranties." Ocean was unaware the boat had been stolen from Kidd. Vick surrendered it to Kidd when confronted with proof of the theft. Vick sued
Ocean. Who prevails?
(a) Vick, because the implied warranty of title has been breached
(b) Vick, because a merchant cannot disclaim implied warranties
(c) Ocean, because of the disclaimer of warranties
(d) Ocean, because Vick surrendered the boat to Kidd

A

To establish a cause of action based on strict liability in
tort for personal injuries resulting from using a defective product, one of the elements the plaintiff must prove is that the seller (defendant):
(a) Failed to exercise due care
(b) Was in privity of contract with the plaintiff
(c) Defectively designed the product
(d) Was engaged in the business of selling the product

D

Which of the following conditions must be met for an
implied warranty of fitness for a particular purpose to arise? : I. The warranty must be in writing. II. The seller must know that the buyer was relying on the seller in selecting the goods.
(a) I only
(b) II only
(c) Both I and II
(d) Neither I nor II

B

Under the UCC sales article, an action for breach of the
implied warranty of merchantability by a party who sustains personal injuries may be successful against the seller of the product only when:
(a) The seller is a merchant of the product involved
(b) An action based on negligence can also be successfully maintained
(c) The injured party is in privity of contract with the seller
(d) An action based on strict liability in tort can also be successfully maintained

A

Which of the following factors is least important in
determining whether a manufacturer is strictly liable in tort for a defective product?
(a) The negligence of the manufacturer
(b) The contributory negligence of the plaintiff
(c) Modifications to the product by the wholesaler
(d) Whether the product caused injuries.

A

At Business University, semester enrollment begins at midnight on April.
Jasper asked his roommate Alonso as a favor to register him for an important required course. Alonso agreed to do so but then overslept. As a result, Jasper could not enroll in the required course he needed to graduate and had to stay in school for an additional semester. Is Alonso liable to Jasper?
(a) No, because an agency agreement is invalid unless the agent receives payment.
(b) No, because Alonso was not grossly negligent.
(c) No, because the cost of the extra semester is unreasonably high.
(d) Yes, because Alonso disobeyed his instructions.

B

Finn learns that, despite his stellar record, he is being paid less than other salespeople at Barry Co. So he decides to start his own company. During his last month on the Barry payroll, he tells all of his clients about his new business. He also tells them that Barry is a great company, but his fees will be lower. After he opens the doors of his new business, most of his former clients move with him. Is Finn liable to Barry?
(a) No, because he has not been disloyal to Barry -- he praised the company.
(b) No, because Barry was underpaying him.
(c) No, because his clients have the right to hire whichever company they choose.
(d) Yes, Finn has violated his duty of loyalty to Barry

D

Kurt asked his car mechanic, Quinn, for help in buying a used car. Quinn recommends a Ford Focus that she has been taking care of its whole life. Quinn was working for the seller. Which of the following statements is true?
(a) Quinn must pay Kurt the amount of money she received from the Ford's prior owner.
(b) After buying the car, Kurt discovers it needs $1000 in repairs. He may recover that amount from Quinn, but only if Quinn knew about the needed repairs before Kurt bought the car.
(c) Kurt cannot recover anything because Quinn had no obligation to reveal her relationship with the car's seller.
(d) Kurt cannot recover anything because he had not paid Quinn for her help

A

Figgins is the dean of a college. He appointed Sue acting dean while he was out of the country and posted an announcement on the college web site announcing
that she was authorized to act in his place. He also told Sue privately that she did not have the right to make admissions decisions. While Figgins was gone, Sue overruled the admissions committee to admit the child of a wealthy alumnus. Does the child have the right to attend this college?
(a) No, because Sue was not authorized to admit him.
(b) No, because Figgins did not ratify Sue's decision.
(c) Yes, because Figgins was a fully disclosed principal.
(d) Yes, because Sue had apparent authority.

D

A principal will not be liable to a third party for a tort
committed by an agent:
(a) Unless the principal instructed the agent to commit the tort
(b) Unless the tort was committed within the scope of the agency relationship
(c) If the agency agreement limits the principal's liability for the agent's tort
(d) If the tort is also regarded as a criminal act

B

Cox engaged Datz as her agent. It was mutually agreed that Datz would not disclose that he was acting as Cox's agent. Instead he was to deal with prospective customers as if he were a principal acting on his own behalf. This he did and made several contracts for Cox. Assuming Cox, Datz, or the customer seeks to avoid liability on one of the contracts involved, which of the following statements is correct?
(a) Cox must ratify the Datz contracts in order to be held liable.
(b) Datz has no liability once he discloses that Cox was the real principal.
(c) The third party can avoid liability because he believed he was dealing with Datz as a principal.
(d) The third party may choose to hold either Datz or Cox liable.

D

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