Quiz - Final

Created by nkirn 

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Damages are designed to compensate a nonbreaching party for the loss of the bargain.

True

the amount of damages on a breach of contract is the difference between the value of what was promised and the value of what was delivered or performed.

True

The usual measure of compensatory damages is the difference between the contract price and the market price

true

Damages are awarded for whatever injus=ry a nonbreaching party suffers, whether or not the breaching party could have forseen the injury.

False

Punitive damages are often awarded in breach of contract cases.

False

In most situations, an innocent party does not have a duty to mitigate the damages that he or she suffers

False

The only contractual remedy not available in cases involving fraus is rescission.

False

Eve contracts to repain a computer for ND Inc. Eve knows that w/o the computer, ND will lose a sale. Eve does not perform as promised. ND files a suit against Eve. As a consequential damages, ND can recover:
A. The cost of the new computer
B. the difference between Eve's price and the actual cost of the repair
C. the loss of profit from the lost sale
D. nothing

C

Helen contracts to sell he land to Mike on 7/1. 0n 6/30, Helen tells Mike that she will not go through with the deal. Mike files a suit against Helen. Mike can recover:
a. the difference between the contract price and the market price of the land only
b. the land only
c. either the difference between the contract price and the market price of the land or the land itself
d. nothing

C

Nationwide seeks punitive damages in a suit against Regional. Generally, punitive damages may be recovered when a contract has been breached:
a. in almost all cases
b. only if the contract involved the sale of goods
c. only if the contract involves the sale of land
d. only if the breach is directly related to the commission of an intentional tort.

D

Employees who deal with thrid parties are agents of their ers.

True

An 1099 may not act in the capacity of an agent

False

There does not need to be a written agreement between two parties to create an agency relationship

True

If a contract is or must be in writing, the agent's authority must be in writing

True

Apparent authority exists if a principal causes a third party to believe reasonably that an agent has authority to act, even if the agent does not.

True

Erin is the agent of Franco, an actor. Erin makes a deal for Franco to act in a new movie for Great Productions. The contract is binding on Franco if it is signed on his behald by:
a. Erin
b. Great Productions
c. SAG
d. none

A

Janet and Julie work at ABC interiors. Janet is a designor who works with clients of ABC on interior design projects. ABC closely supervises all of its designers, and dictates their work schedules. Julie works part-time in the evenings cleaning the offices.

Janet is ABC's:
a. ee but not agent
b. ee and agent
c. 1099
d. ee, agent and 1099

B

Janet and Julie work at ABC interiors. Janet is a designer who works with clients of ABC on interior design projects. ABC closely supervises all of its designers, and dictates their work schedules. Julie works part-time in the evenings cleaning the offices.

Julie is ABC's:
a.agent but not ee
b. ee and agent
c. 1099
d. ee or 1099, depending on whether ABC controls the details of her physical performance.

D

Helen retains Jack to act as her authorized business agent. helen doesn't know that Jack is a minor. Jack enters into a contract on Helen's behalf. the contract is:
a. binding on Helen
b. binding on Jack
c. void
d. voidable

A

Alex, an agent for Paul, signs an agreement on paul's behalf but neglects to tell Paul that the agreement requires the payment of certain taxes. The govt prosecutes Paul for failing to pay texes. Paul is:
a. not liable, because he was not informed of the tax liability by Alex
b. not liable, because he was not given adequate notice
c. liable, because Alex's knowledge is imputed to Paul
d. liable, because paying taxes is mandated by the constitution

A

A partnership may be treated as a separate legal entity for certain purposes, including the collection of judgments.

True

For federal income tax purposes, a partnership is a tax-paying entity.

False

Agreements to form a partnership can be oral, written, or implied by conduct.

True

Unless otherwise specified in the partnership agreement, profits are shared equally and losses are shared in the same ratio as profits.

True

Only those partners having an interest of 5 percent or more of the partnership are entitled to inspect partnership books and records.

False

A person to whom a partner transfers his entire partnership interest is, without doing anything more, a partner in the business.

False

A partnership may be dissolved by judicial decree only if a partner is adjudicated insane

False

In general, creditors of individual partners have priority over creditors of the partnership itself in the distribution of partnership assets.

False

The liability of a partner for partnership debts is limited to the amount of capital he invests in the partnership.

False

Tom owns ABC, a sole prop. In a sole prop, the liability of the owner is:
a. unlimited
b. limited to the amount of his original investment
c. limited to the amount of his original investment plus any subsequent capital expenditures
d. limited by state statute and varies from state to state

A

Adam, the owner of AA, a sole prop, wishes to increase his business capital. This objective can best be accomplished by
a. issuing an additional stock
b. borrowing funds from lenders
c. bringing in additional partners
d. none

B

Greats Games is a partnership. Much of the law that governs the operation of partnerships is based on the principles of:
a. agency law
b. constitutional law
c. contract law
d. none

A

Edward and Mark agree over the phone to go into business as partners. The fact that they have not yet reduced their agreement to writing will;
a. have no effect on the formation of their partnership
b. prevent them from holding themselves out as partners
c. violates the statute of frauds
d. none

A

Larry, Shary and Mike are partners in Pan. Mike contributes 75% of the capital. The partners agree to split the profits equally. When Pan proves unprofitable, the partners decide to dissolve the partnership. Pan's liabilities are greater than its assets. Who pays for the losses:
a. Mike because he contributed most of the capital
b. Shary and larry because they contributed the least of the capital
c. All the partners in proportion to their capital contributions
d. All of the partners in proportion to their shares of the profits

D

Alvin and Cleo for a partnership to operate Four Hotel. When Alvin suspects Cleo of failing to account for all of the receipts, Alvin sues Cleo for an accounting and dissolution. The court will likely order;
a. an accounting only
b. a dissolution only
c. an accounting and dissolution
d. none

C

Erica is a partner in a medical firm and applies for a loan with a bank on behalf of the partnership w/o the authorization of the other partners. If the bank knows that Erica is not authorized to take out loans on behalf of the partnership, then;
a. the partnership alone will be liable for repayment
b. Erica alone will be liable for repayment
c. the partnership and Erica will be jointly liable for repayment
d. the partnership and Erica will ne jointly and severally liable for repayment

B

Ben is admitted to an existing partnership. Several debts and obligations incurred prior to the date of his admission become due. Ben is:
a. personally liable for those debts and obligations
b. liable for those debts and obligations only up to the amount of his capital contributions
c. not required to contribute any money to the satisfaction of these debts and obligations
d. none

B

Ira and Jeff are partners in Landsea. When the US govt declares that the equip is military sensitive and can no longer be exported, the partnership dissolves:
a. as soon as Ira and Jeff agree it is dissolved
b. as soon as Ira and Jeff change their citizenship
c. by operation of law unless Ira and Jeff decide to change the nature of their business and continue in the partnership
d. none

C

The income of a sole prop is taxed as his personal income

True

In most states, one of the requirements for partnership status is that the firm must file a certificate of partnership with the appropriate state office.

False

When a parcel of land is sold, and the land has growing crops, the sale does not include the crops, unless otherwise specified.

False

When a parcel of land is sold, and the land has fixtures on it, the sale includes the fixtures, unless otherwise specified.

True

In a fee simple defeasible, ownership rights are conditioned on the occurance or nonoccurence of a specified event or actions.

True

The holder of a life estate has the right to mortgage the property

...

A grantor is a person to whom the property is transferred.

False

A quitclaim deed warrents more than any other deed.

False

The government can take private property for a private use.

False

Constructive eviction occurs when a landlord evicts a tenant for complaining to a government agency about the condition of leased premises.

False

A landlord is not entitled to sell leased property unless the tenant agrees to the sale.

False

Midtown Development, Inc., owns a city block in LA. Besides the land, Midtown has relatively exclusive rights to:
a. the air space above the land only
b. the soil and minerals underneath the land only
c. the air space above the land, and the soil and minerals underneath it
d. none

C

Steve owns farmland on which there are growing crops. Steve sells the land to Tina under a contract that specifically excludes the crops. The sale:
a. does not include the crops, because of the sales contract
b. does not include the crops, regardless of the sales contract
c. includes the crops, because of the sales contract
d. includes the crops, regardless of the sales contract

A

Nina owns land in Oregon. Her ownership rights include the right to sell or give away the property without restriction, as well as the right to commit waster, if she chooses. Nina's ownership interest is:
a. a fee simple defeasible
b. a fee simple absolute
c. an execurtory interest
d. eminent domain

B

Betsy deeds a plot of land to Select University. The deed contains the following language: To select University, as long as it remains a university." Betsy has given Select University:
a. a fee simple absolute
b. a fee simple defeasible
c. a nonpossessory interest
d. a remainder

B

Meredith, a basketball fan, transfers by deed a plot of land to State University. The deed contains the following language: "To State University, as long as the basketball teams wins every game, then to Merit College."
Merit's interest in the property is:
a. an executory interest
b. a remainder
c. a reversionary interest
d. all of the above

A or C

Meredith, a basketball fan, transfers by deed a plot of land to State University. The deed contains the following language: "To State University, as long as the basketball teams wins every game, then to Merit College."
State University's interest in the property is:
a. a fee simple defeasible
b. an executory interest
c. a reversionary interest
d. none

A

A utility company obtains from Dan the right to run its power lines over Dan's property. The utility company has obtained:
a. a profit in gross
b. a profit appurtenant
c. an easement in gross
d. an easement in appurtenant

C

Ronny's land is burdoned by an easement. The easement is properly recorded in the appropriate county office. If Ronny sells his land to Karen:
a. the land will continue to be burdened by the easement
b. the sale to Karen will extinguish the easement
c. the land will continue to be burdened by the easement, but only if Karen had actual notice of the easement at the time of the sale.
d. the easement will become a license to the party benefited by the easement, ad Karen has the poser to revoke the license at any time.

A

Grant wants to transfer the ownership of his warehouse to Lee by deed. To do so requires:
a. the grantee's signature only
b. the grantor's signature only
c. the grantee's and grantor's signatures
d. none

B

Loretta rents a basement apartment from Larry. Larry refuses to fix a serious plumbing problem, and the basement floods every time Loretta uses the water. Larry has breached the:
a. implied warrenty of habitability
c. covenant of quiet enjoyment
c. warrenty against waste
d. warrenty of possession

A

A&B Storage signs a 6 month lease to occupy a warehouse. This is:
a. a periodic tenancy
b. a tenancy at sufferance
c. a tenancy at will
d. a tenancy for years

D

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