Graded Homework

Voiding the contract

Resulting in a discharge of contract duties

Having no effect on the contract

Making the contract voidable

An express condition

A condition precedent

An implied condition

A covenant

a.

A bilateral or mutual mistake

b.

A unilateral mistake

c.

A unilateral palpable mistake

d.

Both a. and c.

A.

For a court to refuse to enforce a covenant not to compete
the covenant must be unreasonable in both time/duration and space/geography.

B.

Regarding covenants not to compete, it is best for the
employer to “err on the side of caution” and make the covenant as
broad as possible for area and as long as possible for time.

C.

Covenants not to compete are illegal and void in most
states since they may prevent people from working in their fields and in
their home towns.

D.

As a general rule, courts will find a time period of six
months to be a reasonable one in a covenant not to compete in an employment
contract.

A.

The Uniform Commercial Code is an example of federal
Congressional law in the United States.

B.

The Uniform Commercial Code’s implied warranty of fitness
for a particular purpose applies only to merchants.

C.

To disclaim the implied warranty of merchantability the
exact word “merchantability” must be used.

D.

A Uniform Commercial Code contract must have a definite
price term or it will be struck down for vagueness.

Corporations have always been just as subject to criminal
liability as individuals.

Because a corporation cannot be sent to prison, they
generally cannot be held criminally liable for the actions of their officers.

If the criminal conduct can be traced to a specific person
or persons, those persons will be liable and not the corporation.

There can be liability for both the individuals who commit
crimes and for the corporation on whose behalf the crimes were committed.

Both the limited and general partners have unlimited
liability for the partnership debts.

Neither the limited nor the general partners have
unlimited liability for the partnership debts.

The limited partners have limited liability and the general
partners have unlimited liability for the partnership debts.

The limited partners have unlimited liability and the
general partners have limited liability for the partnership debts.

a.

The Age Discrimination in Employment Act protects against
age discrimination in the workplace.

b.

Language discrimination in the form of
“English-only” policies can be a form of national origin
discrimination.

c.

Even an employee at-will can sue for wrongful discharge if
she was terminated because of her gender.

d.

An employer is allowed to have an Affirmative Action plan
that has rigid and fixed quotas for hiring based solely on race due to the
history of discrimination in the United States.

Subject matter and in personam and in rem.

Subject matter or in personam or in rem.

Subject matter and either in personam or in rem.

In rem and either subject matter or in personam.

The acceptor

The offeror

The assignee

The offeree

A guaranty contract.

Unenforceable under the Statue of Frauds because it cannot
possibly be performed within one year.

Enforceable under the Statute of Frauds.

A and C only.

administrative rules and regulations.

case law.

detailed codified law.

executive pronouncements.

A.

The goods are suitable for the ordinary purposes for which
they are used.

B.

The goods are adequately contained, packaged, and labeled.

C.

The goods are priced justly and fairly.

D.

The goods within each unit or part are of an even quality.

Reasonable grounds for detainment are necessary only if
the period of detainment is long.

The length of detainment is not relevant as long as there
is a reasonable grounds for detainment.

Any investigation and the period of detainment must both
be reasonable.

Merchants do not have any ethical responsibility to
investigate possible investigations of the suspect because this is the job of
the police.

Punitive damages.

Liquidated damages.

Consequential damages.

Conditional damages.

Bilateral.

Unilateral.

Quasi.

Implied in fact.

a.

In a non-disclosed principal situation, the agent is
typically initially liable to the third party.

b.

Under the ratification doctrine, a principal can ratify
and thus authorize an agent’s contract with a third party that was not
originally authorized by the principal.

c.

Under the imputed knowledge and notice doctrine, a
principal can be charged with the knowledge of facts that had been disclosed
to the principal’s agent.

d.

All of the above.

application of the law.

consideration of the creditability of the evidence.

findings of fact.

interpretation of the conduct of the witnesses.

only obtain compensatory damages from Gail.

rescind the contract and receive restitution

either obtain damages or rescind the contract.

none of the above.

An actual lessening of competition.

The relevant product market.

The relevant geographic market.

The likelihood of a substantially lessening of competition
or the tendency to create a monopoly.

a.

By a preponderance of the evidence.

b.

By clear and convincing evidence.

c.

Beyond a reasonable doubt.

d.

None of the above.

Securities include not only stocks and bonds but also
other forms of investment contracts pursuant to U.S. legal interpretation.

The common types of securities are stocks and bonds issued
by corporations.

When a security is offered to the public, the Securities
and Exchange Commission generally requires that investors be provided with a
prospectus.

“Blue sky” laws refer to federal securities laws found in
blue colored law books in the United States.

a.

Congress typically delegates to administrative agencies
the power to make laws in the form of rules and regulations.

b.

Administrative agencies, such as the Occupational Health
and Safety Administration, cannot conduct inspections since an inspection is
a “search,” which can only be conducted by the police or other law
enforcement agency pursuant to a traditional criminal law search warrant.

c.

Administrative agencies typically can impose civil fines
after a due process hearing in which a person or business is adjudicated to
be in violation of an agency rule or regulation.

d.

The decisions of administrative agencies can generally be
appealed to the traditional court system assuming that procedural
requirements for an appeal are met.

a.

Patent law

b.

The employment at-will doctrine

c.

Copyright law

d.

The National Labor Relations Act.

One major problem with using negligence for product
liability is that the plaintiff must show some specific act of negligence.

Failure to warn about a generally or commonly known danger
usually will lead to liability.

Strict liability is a “no fault” system.

To be held liable in strict liability, the product must be
in essentially the same condition as when it left the defendant’s control.

Writing

Parties

Price

Subject Matter

Rule of reason violations must be proven beyond a
reasonable doubt and per se violations must be proven with a preponderance of
the evidence.

Rule of reason violations require an agreement with at
least one other party, but per se violations can occur without an agreement
with others.

Rule of reason violations relate to actions brought by
private parties and per se violations relate to actions brought by the
government.

Rule of reason violations ultimately may be proven to be
legally acceptable, but per se violations cannot be deemed to be acceptable
under any circumstances.

A.

A state court can use a Long-Arm statute to obtain in
personam
jurisdiction over non-residents.

B.

A court can issue a summons ordering a defendant named in
a complaint to appear in court.

C.

Interrogatories are written statements given by witness
after a trial.

D.

Small claims courts have limited jurisdiction.

a.

A third party creditor beneficiary

b.

A third party done beneficiary

c.

A third party incidental beneficiary

d.

An assignee.

A.

An agent who has held herself out as having higher-than-customary
knowledge and skills will be held to that higher standard when doing the
principal’s business.

B.

The “reasonable person” standard typically applies to the
degree of care required of an agent when conducting the principal’s business.

C.

Most information that comes to the attention of an agent
is assumed to be known by her principal.

D.

Duties of loyalty and accountability are not duties that
the agent owes to his or her principal since the agent is not a fiduciary
like a partner.

The Racketeer Influenced and Corrupt Organizations Act.

The Organized Crime and Innocent Victims Act.

The Crime Victims Compensation Act.

The Habitual Criminal Damages Recovery Act.

a.

A bilateral or mutual mistake

b.

A unilateral mistake

c.

A unilateral palpable mistake

d.

Both a. and c.

In a limited partnership, the liability of the limited
partner generally is limited to the amount of capital he or she has invested
in the partnership.

In most states, limited liability partnerships are
available to all types of business people.

In winding up a general partnership, creditors are paid
before partners receive their capital contributions.

A partnership technically legally “dissolves” when a
partner ceases to be associated with the carrying on of partnership business.

expressly ratifying the contract after Tom reaches the age
of majority.

failing to disaffirm the contract within a reasonable time
after Tom reaches the age of majority.

ratifying the contract before Tom reaches the age of
majority.

impliedly ratifying the contract after Tom reaches the age
of majority.

A.

Reasonable and justifiable reliance

B.

False statement of material fact

C.

Intent to deceive

D.

Physical injury.

Contribution to a private university to help fund an
entrepreneurship center

Generous gratuity paid to the young widow of the
corporation’s founder

Entering a joint venture with another business

Installation of antipollution equipment not yet required
by law

Incorporators must sign and execute the articles of
incorporation of a U.S. corporation.

Most states in the U.S. limit the duration of a
corporation to fifty years plus a day, which time period can be renewed.

A tenancy at will under U.S. law is created by an express
contract by which personal property is leased for a specific period of time.

A quitclaim deed warrants more than any other deed under
U.S. real estate law.

a.

Misappropriators of inside information

b.

Insiders and tipees in conspiracy with insiders

c.

Inadvertent tipees who are in a fiduciary relationship
with the disclosing party

d.

All of the above.

a.

The board must act as a collective body to legally bind
the corporation.

b.

The board is protected for poor business decisions by the
“business judgment rule.”

c.

The board is responsible for establishing of major
corporate polices and exercises ultimate control of the corporation.

d.

Board members are automatically entitled to compensation
for serving on a board based on federal corporate law but the compensation
must not be “excessive” and the shareholders must approve of the
compensation “package.”

in transit.

received.

sent or dispatched.

written.

It is very egalitarian as all people and groups affected are
counted.

It has a broad stakeholder component that is similar to modern
business constituent group analysis.

It conforms to the way most people think about acting by
focusing on the consequences of an action.

All are advantages.

Seek to overthrow unjust governments by any means at their
disposal

Categorize the issues according to profitability and legality

Evaluate their actions in light of how they treat human beings

Take whatever steps are necessary to survive since one can say
categorically that it is a “moral jungle” in the business world.

Immanuel Kant would support the Golden Rule of religion (“Do
unto others as you would have them do unto you”).

Ethical relativism has been widely adopted as an ethical theory
because of its universal moral norms and strict guidelines.

A corporation that moves jobs overseas to take advantage of
lower pay scales is usually adhering to a broad stakeholder theory of social
responsibility.

Social audits are now the legally mandated norm in the corporate
world.

a.

Utilitarian ethics if the overall greater good is achieved by
paying the bribe even though there are certain negative consequences for some
stakeholders (such as the competition and the host society).

b.

Ethical egoism from the vantage point of the company paying the
bribe if they really need the contract with the foreign government and they
have a policy of “letting the locals deal with the locals.”

c.

Ethical relativism if making the lavish “gifts” (that
is, “bribe” payments”) to foreign government officials is
considered to be an acceptable and appropriate practice and custom in the
host county.

d.

All of the above.

Encourages unethical behavior

Fosters conformance with society’s standards

Mandates acting in the employer’s best interest