Everything CORRECT is highlighted in GREEN
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-Wompterton
[Link] spending $1 million to build a garage to house his collection of cars, Jerry
hosted a “garage warming” party for his neighbors. At the party, one of the
neighbors, George, asked Jerry if he’d be willing to sell the garage. Jerry laughed,
“Oh sure, why don’t you just give me $100 in $1 bills?” George replied, “OK. it’s a
deal.” When George brought over $100 in $1 bills the next day, Jerry refused to
sell the garage. Under these circumstances:
Jerry and George have not created a contract because Jerry was obviously joking;
George could not reasonably have believed that Jerry intended an offer.
Jerry and George have created a contract because Jerry made an offer, George
accepted, and there was consideration.
Jerry and George have created a contract because it doesn’t matter that Jerry was
kidding; parties are bound by their representations.
Jerry and George have not created a contract because Jerry paid $1 million for the
garage, and George only brought over $100,000; the price must be reasonably related
to the original cost.
[Link] told Bernadette that he would sell her his car for $8,000. Bernadette
agreed. Arturo is ready to transfer ownership of the car, but now Bernadette
refuses to pay.
Arturo and Bernadette entered a contract. Bernadette has breached it.
Arturo and Bernadette never had a contract, since Arturo never accepted Bernadette’s
counteroffer.
Arturo and Bernadette never had a contract, since there was no “promise.”
Arturo and Bernadette had an agreement, but there is no contract since Bernadette
never paid.
[Link] a basketball game, as a Matador basketball player was dribbling the ball,
a player from the opposing team stabbed him with a knife. As a result of this act
there was:
A crime and a tort of battery.
No crime or tort of battery since both players voluntarily consented to participating in
the basketball game knowing of the risk of bodily injury.
Only a crime; not a tort of battery.
Only a tort of battery; not a crime.
[Link] broke into Anne’s jewelry store at night, while Anne was still on the
premises. When Anne heard the display cases being broken:
Anne has the right to use a gun to shoot Dilbert to protect the jewelry; however she
only has the right to shoot him in an arm or leg, not at his head or chest.
Anne does not have the right to use a gun to shoot Dilbert to protect the jewelry.
Anne’s only recourse is to call the police to stop Dilbert from stealing her merchandise.
Anne has the right to use a gun to shoot Dilbert in the back to protect her property.
[Link] a televised, title prize fight at a Las Vegas hotel, Luis threw a punch
which hit Michael in the face. As a result:
This would ordinarily be a battery, however since Michael consented to the fight, he
has no viable legal action against Luis.
This would ordinarily constitute strict liability for engaging in an inherently dangerous
activity, however since Michael consented to the fight, he has no viable legal action
against Luis.
This would ordinarily be an act of negligence, however since Michael consented to the
fight, he has no viable legal action against Luis.
This would ordinarily be an action of intentional infliction of emotional distress,
however since Michael consented to the fight, he has no viable legal action against
Luis.
[Link] signs an employment contract before starting work at Larry's
advertising agency. Included in the contract is a clause that states that if the
parties have a dispute, a neutral, nonjudicial third party will decide the matter.
Determine what will happen when Darren and Larry have a dispute when Larry
refuses to make Darren a partner in the agency.
Darren will file a lawsuit in court, and the mediator will decide the case.
Darren and Larry will appear before an arbitrator, whose decision the court will likely
uphold.
The case must go to the state labor board for resolution dispute.
Either Darren will file a lawsuit in court, and the mediator will decide the case; OR,
Darren and Larry will appear before an arbitrator, whose decision the court will likely
uphold can occur; it depends on the parties’ agreement at the time of the dispute.
[Link] purchases a loaf of Webber’s bread, which he later uses to make
sandwiches for a church luncheon. Unfortunately, Bob and several church
members became ill after eating the sandwiches. Later, they discovered that the
bread had been exposed to or contained insecticide. As a result,
The church members will only be able to sue Webber’s Bread if the company was
negligent in preparing the product.
Under the law of defective products, the grocery store that sold the bread can have
liability, only if it was negligent in storing the bread.
Bob will be the only person who can recover against Webber’s Bread using strict
product liability since he actually purchased the bread.
Bob and the church members can recover under strict product liability and may sue all
of those in the “stream of commerce,” including the grocery store where Bob purchased
the bread.
[Link] Elvin is holding 200 pounds of potatoes in storage for Chef Noble but
Chef Noble has breached the contract by failing to pay for the potatoes. The
potatoes are beginning to rot. If Farmer Elvin sells the potatoes to a local diner to
make potato soup and salad, then this action would be considered:
An attempt to maximize damages
A reasonable mitigation of damages.
An attempt to realize an unwarranted profit.
Conversion
9.A homeowner tells a prospective buyer of his home that the downstairs
bedroom is 10 x 9 feet because he measured it himself. However, his
measurements were incorrect and the bedroom is actually 9 15/16 feet x 9 feet.
The homeowner’s statement:
would not support an action for misrepresentation because the statement is likely not
material.
would support an action for innocent misrepresentation.
would likely play a significant role in inducing a reasonable person to enter into a
contract to purchase the home.
is a material misrepresentation since it was stated intentionally.
[Link] owned a speedboat that was not operating correctly. She hired Gail, a
mechanic, to determine what needed to be repaired or replaced on the boat. Gail
concluded that the boat needed over $5,000 of work to run safely. Upset by the
news, Betsy decided to get a second opinion from Kathy, another mechanic.
Kathy advised Betsy that the boat only needed a new fuel pump, which cost
considerably less than $5,000. Betsy decides to sell her boat instead of repairing
it. When a prospective buyer asks Betsy whether the boat has been inspected by
a mechanic, she will:
be required to disclose only Gail’s report since she made the first inspection.
be required to disclose both reports.
be required to disclose only Kathy’s report since her estimate was less than Gail’s
estimate.
not be required to disclose either report to the buyer.
[Link], a new property owner, was told by the previous owner that the
home she purchased had no termites and no termite damage. One month after
taking possession of the property, Catherine knew that her home was infested
with termites because she saw evidence of their presence. In addition, an
exterminator told her that the pests had caused damage to the wood structure.
However, Catherine loved her home and lived in the home for ten more years.
When Catherine decided to relocate, she filed a lawsuit against the previous
owner based on fraud. As a result, Catherine will:
win her lawsuit.
win her lawsuit for rescission.
win her lawsuit for damages.
lose her lawsuit.
12.A statute of limitations for an alleged breach of contract:
Generally commences on the date of the breach.
Does not apply if the contract was oral.
Requires that a lawsuit be commenced and a judgment rendered within a prescribed
period of time.
Does not apply if the contract was in writing.
[Link] of the following are true statements concerning the statute of limitations
except:
For all court cases, the statute of limitations is three years.
Typically the statutory period runs from the date the legal claim arises to the date the
lawsuit is filed.
A statute of limitations is a rule that establishes a time limit for filing a lawsuit.
Even if a court has the power to hear a particular case, the operation of a statute of
limitations may prohibit the court from exercising that power.
14. Civil law:
Defines the rights and duties that exist between private parties.
Is comprised of principles and rules intended to protect all of society.
Generally provides for punishment by fine or imprisonment for failure to abide by its
prescribed standards.
Defines public wrongs prohibited by a state or the federal government.
[Link] a general rule, punitive damages:
are often awarded in construction cases.
are always available to plaintiffs who are minors.
are available to award an innocent party when a technical injury with no actual
damages occurs.
are not awarded for a breach of contract.
[Link] Enterprises orally agreed to buy 100 junctions from Valley Junction,
Inc. at a cost of $100 each (for a total contract price, therefore, of $10,000). Valley
sent 30 junctions and Gomez accepted the shipment, sending payment for $3,000.
However, Gomez had its major client cancel a job, so they no longer needed the
junctions. Gomez attempted to rescind, reasoning that because there was no
writing and the contract fell within the Statute of Frauds they were not bound. A
court would probably conclude:
There was not an enforceable agreement, however under the UCC, part performance
makes that portion of the agreement binding on Gomez. Gomez may not return the 30
Junctions, but is not obligated to purchase the remaining 70.
There was an enforceable agreement; since the contract dealt partially with services, it
does not fall within the Statute of Frauds. Gomez is liable for the entire contract.
There was originally no enforceable agreement, however, once Gomez accepted part
performance, they ratified the originally unenforceable contract and are consequently
bound to the agreement.
There was never an enforceable agreement. Gomez may return the 30 Junctions and
receive a refund of $3,000.
