82 terms

Business Law

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A contract is an agreement that can be enforced in court.
TRUE
There are no exceptions to the rules that contracts voluntarily entered into will be enforced.
FALSE
ex) duress, fraud
An agreement includes an offer and acceptance.
TRUE
Parties cannot form a contract without putting the terms in writing.
FALSE
An advertisement is generally an invitation to negotiate.
TRUE
A counteroffer terminates an offer.
TRUE
If no time for acceptance is specifies in an offer, the offer terminates at the end of a reasonable time.
TRUE
Under the mailbox rule, an acceptance can be valid as soon as it is sent.
TRUE
Inadequate consideration may indicate fraud, duress, or undue influence.
TRUE
Two parties can mutually agree to rescind a contract.
TRUE
Jay tells Kim that he will buy her textbook from the last semester for $80. Kim agrees. Jay and Kim have
an express contract
Employment Sources Inc. enters into a contract with Fred. If Fred is a minor, this contract is most likely
voidable
Ann promises to buy a house from Ben, who promises to vacate the property on July 1. If these promises are in writing, they are most likely
enforceable
Curt promises to buy illegal copies of CDs and DVDs from Donna, who promises to deliver on May 1. These promises are most likely
void
Delta Electronics Inc. makes an offer to the owners of Eagle Computer Corporation to buy the entire company. The power to revoke the offer rests with
??????
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
rejected the offer and made a counteroffer
Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will offer to buy it for $90,000." Dina has
rejected the offer and made a counteroffer
Ace Sales Corporation plans to move to a new office. Ace offers to sell its office furniture to Beta Marketing Inc. but does not specify a time for Beta to respond. The offer expires
after a reasonable period of time
Alpha Inc. defends against a breach of contract suit by Beta Corporation by claiming that the consideration for their contract was inadequate. A court will not normally evaluate the adequacy of consideration unless it is
grossly inadequate
Kay contracts to sell her RV to Larry. Larry builds a structure behind his house in which to keep the RV. Kay's later attempt to cancel the contract is
not effective because Larry has detrimentally relied on Kay's offer
A minor can disaffirm a contract only after reaching the age of majority.
FALSE
If a minor disaffirms a contract, he or she must disaffirm the entire contract.
TRUE
A person who enters into a contract when he or she is intoxicated can void the contract if he or she did not comprehend the legal consequences.
TRUE
A legal guardian cannot enter into legally binding contracts on behalf of a mentally incompetent person.
FALSE
A contract that calls for the performance of an illegal act is not enforceable.
TRUE
A covenant not to compete is never enforceable.
FALSE
When both parties are mistaken as to the same material fact, neither party can rescind the contract.
FALSE
An innocent party may enforce a fraudulent contract.
TRUE
To recover damages for fraud, a plaintiff must prove an injury.
TRUE
A contract that by its own terms cannot be performed within a year must be in writing to be enforceable.
TRUE
Betty, a minor, signs a contract to buy and SUV by misrepresenting her age to be 21. In most states, Betty may
disaffirm the contract only if she returns the SUV in original condition
Ruth, a minor, charges groceries at Sam's Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's Mart
the reasonable value of the groceries
A court adjudicates Holly mentally incompetent and appoints a guardian. Holly subsequently signs a contract to sell her house. The contract is
void
Dave signs a contract with Ellen to kill Frank. Ellen pays Dave but he refuses to perform. Ellen can
not enforce the contract (illegal)
Joy and Karl contract for the sale of Joy's prize-winning show dog for $1,000. Unknown to either party, the dog has died. Karl is
not required to pay due to the mutual/bilateral mistake
In selling networking software to Wide World Sales Corporation, Beth tells Wide World's purchasing agent that the software is "excellent". This is
puffery
Deb and Eve sign a written contract. Deb claims that the parties later orally agreed to modify the contract. Any oral modification is likely
not enforceable
Mike and National Computer Service enter into an oral contract under which Mike agrees to program computers for NCS for 2 years. This contract is
not enforceable
Management Associates Corporation wants to sell its office building and furnishings to National Properties Inc. A writing is not required for
the sale of an office chair, valued at $50, to NPI
Alan and Britney enter into an agreement. 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
Britney only
The prosecution in a criminal case need only establish by a preponderance of the evidence that the defendant committed the crime.
FALSE
Only the government prosecutes criminal defendants.
TRUE
Law enforcement officials are required to advise suspects of their constitutional rights before beginning any interrogation.
TRUE
Breaking and entering into the dwelling of another with the intent to commit a felony is burglary.
TRUE
Obtaining another person's phone card number so that it may be used to make unauthorized long-distance calls is theft.
TRUE
A bribe must consist of money to be a crime.
FALSE
Forfeiture of a business interest and dissolution of a business are possible penalties under RICO.
TRUE
In most courts, a person is not responsible for a criminal act if, as a result of a mental defect, he or she lacked substantial capacity to appreciate the wrongfulness of the act.
TRUE
Most crimes must be prosecuted within a certain number of years.
TRUE
Evidence obtained in violation of the Fourth, Fifth, and Sixth Amendments is normally excluded from a criminal trial.
TRUE
Gail is a private lender who is charged with filing false claims in bankruptcy proceedings against her debtors. The standard of proof to find a defendant who has been charged with a crime guilty is
beyond a reasonable doubt
Earl, driving while intoxicated, causes a car accident that results in the death of Frank. earl is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for more than
one year
Adam is charged with the commission of a crime. To find criminal liability, most crimes require
a specified state of mind and the performance of a prohibited act
Ira signs Jill's name, without her authorization, to the back of a check made out to her. This is
forgery
Evan is charged with a crime. Almost all federal courts and some state courts would not hold Evan liable if, at the time of the offense, as a result of a mental disease of defect, Evan lacked substantial capacity to
appreciate the wrongfulness of his conduct and obey the law
Barb allows Candy to enter Barb's warehouse and take a DVD player. Charged with theft, Candy can successfully claim, as a defense,
consent
Diane points a gun at Edie, threatening to shoot her unless she takes a certain file from great Pharmaceutical Corporation. Charged with theft, Edie can successfully claim as a defense,
duress
Helen points a gun at Irma, threatening to shoot her. Irma hits Helen, causing her death. Charged with homicide, Irma can most likely successfully claim as a defense,
self-defense
Mary, who is charged with a crime, claims that Nick, a government agent, entrapped her. For entrapment to be a valid defense
Mary must not have been predisposed to commit the crime, Nick must have pressured Mary into committing the crime, and Nick must have suggested that the crime be committed.
Alan, the president of Beta Investments, and Colin, Beta's accountant, are charged with a crime, after the police search Beta's offices. Under the exclusionary rule
illegally obtained evidence must be excluded from a trial
Tort law provides legal remedies for both personal injury and property damage.
TRUE
An assault may be committed when a person acts in a way so as to create an apprehension of offensive contact in the distant future.
FALSE
-true if it said NEAR future
A store manger may delay a suspected shoplifter if the manager has probable cause to justify delaying the suspect.
TRUE
Normally, fraud can occur only when there is reliance on a statement of fact.
TRUE
If it can be shown that a trespass to personal property was warranted, a complete defense exists.
TRUE
A reasonable person standard determines whether allegedly negligent conduct resulted in a breach of a duty of care.
TRUE
The plaintiff has the burden of establishing beyond a reasonable doubt that a tort has occurred.
FALSE
Beyond a Reasonable Doubt
Criminal Law
Preponderance of the Evidence
Civil Law
For the purpose of establishing negligence, causation in fact exists if an injury would have occurred even without the defendant's act.
FALSE
Under the doctrine of comparative negligence, both the plaintiffs and the defendants negligence are taken into consideration.
TRUE
Strict liability is liability without fault.
TRUE
Bob pushes Carol. Carol falls and breaks her arm. Bob is liable for the injury
if Bob intended to push Carol
Kate believes that George is about to hit her. To prevent harmful contact in dangerous situations, a person may use
force that is reasonably necessary
Leo hears Mona falsely accuse Nick of stealing from their employer. The statement is defamatory
because a third party heard it
Todd files a suit against United Media Corporation for defamation. Actual malice must be shown for recovery of damages if Todd is
a public figure
Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she
represents as a fact something that she knows is untrue
Multiple Dwellings Corporation owns an apartment building. MDC must use reasonable care to ensure that its tenants are not injured
in common areas
Dependable Appliances must use reasonable care on its premises to warn its patrons of
hidden risks
Opal enters the Powerball Triathlon, an athletic competition. Regarding the risk of injury, Opal assumes those risks
normally associated with this event
An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's park fails to maintain its equipment as required. Kathy, a patron, is injured thereby. Jack has committed
negligence per se
D-Struct is a demolition firm. During an operation Earl a passerby, is injured. Under the theory of strict liability, D-Struct is liable
whether or not its crew was at fault