QUESTION 1
1. Digital Products Company agrees to sell to Eagle Manufacturing, Inc., a customized software system. If Eagle materially breaches the contract, the remedies available to Digital include the right
to cancel the contract only.
to recover damages only.
to cancel the contract and recover damages.
none of the above.
0.5 points
QUESTION 2
1. Oscar makes an offer to Desiree, mailing the offer on March 15. Desiree receives the offer on March 19, and on that day mails a rejection of the offer back to Oscar. Later that day, the 19th, Desiree changes her mind and mails an acceptance of Oscar. The rejection is received by Oscar on March 25. Oscar then sells the subject matter of the contract to another party. On April 1, Oscar receives the acceptance from Desiree, which Oscar promptly throws away. Desiree insists that there is a contract between her and Oscar and sues him when he refuses to perform or pay damages. The result of a lawsuit under the common law likely would be that:
Oscar will prevail since he received the rejection first.
Oscar will prevail since it would not be fair to him to enforce the contract since he unknowingly sold the subject matter to another party.
Oscar will be liable for breach of contract.
Oscar will prevail since contract law forbids the use of the mail for contracting since the mail is at times slow and unreliable.
0.5 points
QUESTION 3
1. To acquire the ownership of a strip of waterfront property by adverse possession, Glen must occupy the property exclusively, continuously, and peaceably for a specified period of time
in an open and adverse manner.
until the owner files suit.
without the owner’s knowledge.
with the state’s permission.
0.5 points
QUESTION 4
1. Miriam is so bothered by the loud, noisy, gross, offensive bug extermination commercials on television during the dinner hours. She wants to stop them so she sues one company for the tort of intentional infliction of emotional distress. The likely result of this lawsuit will be:
Miriam will prevail if she can convince a court that she is squeamish about bugs.
Miriam will prevail if the company does not have permission from the Federal Trade Commission to advertise bug extermination services during the dinner hour.
Miriam will lose since the company’s conduct is not sufficiently outrageous or atrocious.
Miriam will lose since the tort of intentional infliction of emotional distress requires some type of physical impact on the victim.
0.5 points
QUESTION 5
1. Best Office Company promises to pay Carl $1,000 to repair the roof on Best’s building. Carl fixes the roof. The act of fixing the roof
imposes a moral obligation on Best to pay Carl.
imposes no obligation on Best unless it is personally satisfied with the job.
is not sufficient consideration because it is not goods or money.
is the consideration that creates Best’s obligation to pay Carl.
0.5 points
QUESTION 6
1. On March 1, Bigge Company sent a letter to Marianne, via express mail, offering to employ her to audit Bigge’s financial statements for the current year for $10,000. In the letter, Bigge stated that Marianne had two weeks to accept the offer. On March 5, Marianne sent Bigge a FAX that stated: “The price for the audit appears to be too low. Would you consider paying $12,000”? Bigge received the FAX. The next day, LaToya offered to conduct the audit for $8,000. On learning of LaToya’s offer, Marianne immediately emailed Bigge, agreeing to do the work for $10,000. Bigge received this email on March 7. Bigge retains LaToya to do the audit. Whereupon Marianne sues for breach of contract. The most accurate statement regarding the resolution of this law suit is?
A.
Bigge wins since Marianne rejected the offer.
B.
Bigge wins since it had retained LaToya to do the audit.
C.
Marianne wins if her statement is construed to be a mere inquiry and not a counteroffer.
D.
Marianne wins since Bigge gave Marianne two weeks to accept the offer.
0.5 points
QUESTION 7
1. Eagle Skis, Inc., makes and sells skis. In deciding whether the skis are merchantable, a court would consider whether
Eagle violated any government regulations.
the skis are a quality product.
the skis are fit for the ordinary purpose for which such goods are used.
the skis are made in an efficient manner.
0.5 points
QUESTION 8
1. Arabella and Mirabella formed a partnership to own and operate a fashion boutique. They agreed to share profits and losses equally. They also agreed that Arabella’s main contribution to the partnership would be $100,000 as a capital contribution to the partnership; and that Mirabella’s main contribution would be to manage the business as the managing partner. Unfortunately, after two years of trying to succeed, the business did not do well, and they decided to close the business. After all the outside creditors to the partnership were paid, there was nothing left. What is the legal obligation of the partners to each other?
None, since Arabella lost her money and Mirabella lost her time in managing the business; so they are even.
Mirabella must pay the $100,000 back to Arabella since Arabella is regarded as a creditor.
Mirabella must pay Arabella $50,000.
Arabella must pay Mirabella a fair wage for the two years to be in compliance with federal labor law.
0.5 points
QUESTION 9
1. Lisa and Ann are disputing ownership of a piece of real estate. Lisa brings a lawsuit to clear title to the property. This lawsuit must be heard:
Before the state court in the county where the property is located.
In the state supreme court since it has original jurisdiction of all real estate lawsuits in the state.
In federal court since this is a title issue.
Wherever Lisa resides.
0.5 points
QUESTION 10
1. Big Oil Company requires that all employees when working on an oil rig in its Gulf of Mexico holdings must speak English to enhance communication, for safety reasons, and so rig foreman-woman can do their supervisory jobs. Big Oil Company has notified the employees of the policy, given them time to adapt, and will provide English language training to those employees whose English language skills are poor. Also, while the employee are on the rig but not working, that is, in the cafeteria, dormitory, and “break” rooms, they can speak any language they want, though the company has advised them to be inclusive of their fellow employees. Big Oil Company is likely acting how?
a.
Illegally since language discrimination in the form of English-only policies is always a Title VII violation since people have the civil right to speak their primary language at all times and places.
b.
Illegally since language discrimination is illegal discrimination in all cases under Title VII of the Civil Rights Act.
c.
Legally since there was a legitimate reason for the policy and it was gradually adopted.
d.
Legally but only if the primary non-English language spoken by the majority of the non-English-speaking employees which was prohibited was Spanish, whereas other “foreign” languages not as frequently heard were permitted.
