Download FinalBUL2011 - justiceinmotion

Business Law
Final Examination
1/6/2011
J. Rodriguez, Esq.
Directions:
Write your name here ________________________________
Mark the right answer for every question
1. The elements necessary for a contract are an offer, an acceptance, and
consideration. T F
2. A writing is necessary for goods over $500. T
F
3. An oral contract is not valid. Every contract, to be recognized by law, must be
written. T F
4. A promisor makes a promise to a promisee. T F
5. One of the ways to discharge a contractual obligation is by waiver. T
6. A minor lacks capacity to enter into a contract. T
F
7. You can kill an offer by a counteroffer and by lapse.
T
8. A contract that is impossible to perform is discharged.
F
F
T
F
9. The conversation rule is a New York based rule that states: contracts can be made
during a conversation. A written contract is unnecessary for items under $500.
T
F
10. A contract for a $900 mental health session, which is an hour long, must be in
writing.
T F
Directions: Circle Y or N for yes or no. Yes is used when there is a contract that the
law will enforce. No is used when a contract does not exist.
11. Alfred, a 16 year old student at Sunset High School, purchases an $84,000
Porsche at The Collection. A week later, he decides to return it. Y N
12. Javas gets an advertisement in the mail that reads: “Cars at auction starting at
$34. Come one, come all.” When he arrives at the dealership, he demands the $34
car and (wiping his nose) he says, “I accept.” He then tugs at his pocket and expels
exactly $34. Y N
13. Maria responds to an ad that states: “Become a T-Mobile representative. Make
up to $2000 per week.” She calls and says, “You guys gotta pay me in advance, but I
accept the job you offered.” Y N
14. Apple Computer, Inc. entered into a written agreement with SGI, Inc., whereby
they agreed to pay the sum of $11 million for three Cray Supercomputers. They
wrote it down.
Y N
15. Jessee tells Rocio: “Go into that church and steal me a chicken. I’ll give you $50.”
Rocio does it and then demands payment. Y N
16. Rocio is selling LSD (a potent hallucinogen that happens to be against the law in
this jurisdiction) in the following manner: “Doses, doses, buy my doses, so I can go in
the concert and get more doses.” Ileana accepts and gives her $5, the usual price. Y
N
17. Juliet and Romeo enter into a written agreement whereby Juliet agrees to
purchase “All of the roses produced by Romeo’s estate, the South Farthing, for $1
per pound, and for the duration of one year.” Y N
18. Darth and Luke enter into an oral agreement whereby Darth agrees to build the
Deathstar for $5000. Building the Deathstar will take a minimum of 18 months. Y
N
19. Darth and Luke enter into a written agreement whereby Darth agrees to build
the Deathstar for $5000. Building the Deathstar will take a minimum of 18 months.
Y N
20. Ermenegildo Zegna agrees, in writing, to sell his prized collection of ties to
Nicole, for $5000. One week later, Nicole brings the prized ties back and says: “I am
a girl, dude. I don’t want these.” Y N
Directions: Choose the best answer out of the four choices given.
21. An agreement to slander a third person would not be enforceable because
slander is a(n):
a. crime.
b. civil wrong, a.k.a. Tort.
c. infringement of privacy.
d. assault.
22. A small breach in a contract is called
a. a Material breach
b. a breach
c. a Minor breach
d. a punitive breach
23. When you know someone will breach before they actually breach a contact, your
choice(s) is(are):
a. Settle
b. Demand performance and wait (wait and sue)
c. sue immediately
d. all of the above
24. If an offeree accepts an offer before it is effectively revoked:
a. a void contract is formed.
b. a voidable contract is formed.
c. an unenforceable contract is formed.
d. a valid contract is formed.
25. The elements of a contract include all of the following except:
a. an agreement.
b. two or more competent parties.
c. consideration.
d. an illegal purpose.
26. A person lacks contractual capacity if:
a. the person is a chronic alcoholic who does not comprehend that a
contract is being made or understand its consequences..
b. the person is a drug addict who does not comprehend that a contract is
being made or understand its consequences..
c. because of mental impairment, the person does not comprehend that a
contract is being made or understand its consequences.
d. all of the above.
27. Alfred said to Rocio, "I'll give you $100 for that bracelet." Rocio replied, "$135."
Alfred said, "NO thanks." Rocio then said that she accepted the $100, but
Alfred was no longer interested and said there was no contract. Rocio insists
there is a contract. Result?
a. Alfred's offer of $100 was open and accepted by Rocio, forming a
contract.
b. Rocio's counteroffer of $135 terminated Alfred's offer of $100.
c. Rocio's statement, "$135" was a negotiating statement that did not
terminate the offer of $100.
d. Alfred's offer of $100 was irrevocable.
28. Which of the following can be consideration for a promise?
a. refraining from beating one's spouse
b. promising to refrain from beating one's spouse
c. refraining from smoking cigarettes
d. refraining from using cocaine
29. A promise to pay a contractor a bonus to complete construction of a building
according to the contract is:
a. binding if the promise is in writing.
b. binding if the promise is made by a merchant under duress.
c. binding if the promise is made to an insane and intoxicated minor.
d. ordinarily not binding on the promisor because of the pre-existing duty
rule.
30. An oral contract can be enforced when it relates to:
a. the purchase of a television set for $200.
b. the sale of an interest in land for $400.
c. managing a factory for five years.
d. a promise to answer for the debt of another.
31. When Rocio the bus driver informs Alfred (the customer) that after the next
quarter she will no longer administer his business’ finances for the contractual sum
of $5,000 per pay quarter, Alfred may:
sue.
a. wait for Rocio to perform the contract and then when she doesn’t perform,
b. sue immediately.
c. waive and renegotiate a higher fee.
d. all of the above.
32. When someone says “forget about those last $50 you owe me on this contract.
It’s on me,” this is called:
a. damages
b. direct
c. Waiver
d. the measure of damages
33. Most contracts are discharged by:
a. artificial and inconsequential tender of performance.
b. performance by the parties.
c. operation of law.
d. substantial performance.
34. A debt of $19 is perfectly discharged (executed) when the debtor:
a. tenders the creditor a $100 bill, but the creditor refuses it because the
creditor cannot make change.
b. tenders the creditor a $19 bill, but the creditor refuses it because the
creditor wants smaller bills.
c. gives the creditor a check for $19 and the creditor accepts it.
d. gives the creditor a check for $19 and the creditor cashes the check at the
debtor's bank.
35. If no time period for performance is specified in a contract:
a. the contract is unenforceable.
b. time shall be of the essence.
c. a reasonable time for performance will be implied.
d. time will be ignored by the courts.
36. A landlord who continuously accepts late rental payments without collecting the
late fee provided in the lease:
a. waives the late fee.
b. will collect the late fee at a later date.
c. is ignorant of the late fee.
d. allows the tenant to repudiate the lease.
37. When an anticipatory repudiation of a contract occurs, the aggrieved person's
option(s) include (also see question 31):
a. do nothing and wait for performance per the contract.
b. immediately declare breach of contract.
c. consider the contract canceled.
d. all of the above.
38. If Jesus and Maria make a contract whereby Maria is to provide 500 widgets for
$500, and Jesus fails to pay the $500, causing Maria to sue for exactly $500, then
Maria is suing:
a. only for direct damages.
b. only for consequential damages.
c. only for punitive damages.
d. all of the above.
39. What someone must pay when there is a breach is called:
a. breachers
b. direct
c. Waiver
d. the measure of damages
40. An American soldier fighting in Afghanistan stumbles upon an enormous set of
TV production equipment. Figuring that he has encountered the home of the most
notorious producer of videos in the world, the soldier walks inside and stumbles
into the man himself: Osama bin Laden. The soldier holds him at gunpoint and
Osama surrenders. Upon incarceration, the soldier requests the 25 million dollar
bounty that the government has promised for bin Laden. The American government
refuses payment. You are the lawyer for the government. What will you allege as
your reason for non-payment?
a. conditions bilateral to the creation of a precedent contractual obligation.
b. consequential damages for repudiated late fees.
c. pre-existing duty.
d. frustration of purpose due to “act of God.”
Directions: circle T or F for True or false.
41. When one party breaks the contract, the contract is said to be breached. T
F
42. Generally, when a person of legal age makes a contract with a minor, the
contract is voidable by either party. T
F
43. A minor is deemed to have capacity to enter into contracts for “necessaries.” T
F
44. A person who has drunk too much alcohol and then snorted too much cocaine at
a party and signs a contract may be able to rescind that contract for lack of capacity.
TF
45. Ordinarily, acourt will not consider whether someone paid too much for a
contract. T F
46. A contract for services over $500 requires a writing to be enforceable. T
F
47. If there is no writing there is no contract. T
F
48. Performance of the contractual provisions must be exactly as detailed in the
contract, unless it is waived or modified. TF
49. Full performance of a contract can be waived and yet a reservation to sue
despite the waiver can be made. T
F
50. A counteroffer effectively kills the initial offer. T
F
51. While working at Dyemond Security, Michelle acquires the confidence of
Greg (the owner) and eventually starts “doing the books.” Michelle makes all
the cash and check deposits, handles all the credit card deposits, and also
handles all of the “accounts payable.” During the course of her three year
stint at Greg’s company, Michelle wrongfully appropriated $120,000. When
questioned, Michelle said, “He shoulda paid me more considering all the
work I do.” Michelle can be charged with…
a. Racketeering
b. Unlawful vending
c. Embezzlement
d. Terrorist connections
52. After Michelle is convicted (for two years) of the above crime, Greg posts the
following on his FaceSpace (a mix between MySpace and FaceBook):
“Michelle got what she deserved. That no-good, lying thief deserves to rot.”
Michelle sues Greg for Libel (published defamation). What result?
a. Michelle will lose her lawsuit, since expression of both truth and
opinion are the best defenses to defamation
b. Michelle will lose her lawsuit because FaceSpace does not constitute
“publication,” in the strictest sense
c. Michelle will win her lawsuit, because the false statement (s) was
published (online) to a third party (everyone)
d. Michelle will win her lawsuit because being called a thief, when
untrue, is defamation per se
53. In the Dyemond Security warehouses, Greg, Zoren, and Hector, run a series of
what he terms “Private Enterprises for Private Men.” These include an
exclusive Eastern European bride service (composed exclusively of women
acquired during the course of human trafficking), a Love and “Massage”
service (a prostitution ring), a Pleasure service (a Bolivian drug ring), and a
“Release your pressures” service (an automatic rifle firing range). Greg can
be charged with:
a. Racketeering
b. Unlawful vending
c. Embezzlement
d. Terrorist connections
54. While protecting Karina (a famous boxer’s star daughter), Hector speeds
away from a paparazzi scene that would have resulted in “a possible
incident.” While speeding, Hector accidentally runs over Katya (who at the
time was running across the street without looking), killing her almost
instantly. Hector will not be charged with murder because:
a. He was just doing his job
b. Karina has too much influence
c. Paparazzi speeding laws will protect him from prosecution
d. This is an accident. There was no mens rea for this to be a homicide.
55. In the example above, Katya’s estate sues Karina and Hector. Karina and
Hector can partially protect themselves with the following legal doctrine:
a. He was just doing his job
b. Katya assumed the risk of being run-over when she crossed the street
without looking (Assumption of Risk)
c. Truth is a defense to defamation
d. There was no contract between Katya and Karina
56. When Michelle gets out of jail, she does “brutish and terrible things” to Greg,
and is accused by the State. Michelle is sentenced to serve seven years.
Whatever these “brutish and terrible things” were, Michelle’s crimes were:
a. A misdemeanor
b. A felony
c. Strict liability
d. Under the patriot act
57. When Michelle is sent off to jail, she leaves Arianna in charge of her
possessions: a big-screen TV (worth 4k), an Acura TL (worth 45k), and a bed
(worth $10k). Arianna sold the TV (she claims it stopped working), sold the
car (she claims it was too much “upkeep”), and sold the bed (she claims it
caught fleas). Michelle sues Arianna for:
a. A felony
b. Strict liability
c. Conversion
d. Trespass to chattels
58. When Michelle is sent off to jail, she leaves Arianna in charge of her
possessions: a big-screen TV (worth 4k), an Acura TL (worth 45k), and a bed
(worth $10k). Arianna returned the TV with a series of awful marks all over
the back (about $250 damage; she claims her cat went nuts), the car with a
dented fender (she claims she hit a deer), and the bed with a few bad springs
(she had to sleep somewhere). Michelle sues Arianna for:
a. A felony
b. Strict liability
c. Conversion
d. Trespass to chattels
59. Roberto has taken a serious liking to his furtive role as, what he terms, “the
avenging angel.” As avenging angel, Roberto stands in a dark corner of the
mall wearing his trenchcoat and flashes unsuspecting onlookers. Upon one of
these flashings, Sophia becomes “sick to [her] stomach,” vomits on Roberto,
and thereafter is unable to sleep ever again. Sophia sues Roberto for:
a. Defamation of character in the form of slander
b. Negligence
c. Intentional infliction of emotional distress
d. Conversion (he converted himself into the avenging angel)
60. Roberto is hauled away by the police for disturbing the peace, exposure,
public indecency, and resisting arrest with violence. Sophia goes home and
makes a post on her FaceSpace: “He should be in jail forever for what he did
to me: exposing himself to a young woman like that. It makes me sick.”
Roberto sues her for defamation. What result?
a. Roberto will win because the false statement was published online
and to a third party
b. Roberto will win because being mentioned as an “exposer” like that
constitutes defamation per se
c. Roberto will lose because truth and opinion are the best defenses to
defamation
d. Roberto will lose because he was hauled away by the police (even if
he wasn’t charged)
61. Never sue:
a. The aristocrat
b. The deep pocket
c. The big company
d. The homeless guy
62. Roberto “The Avenging Angel” has been released and is now “really serving
time” at his local Wal-Mart. Upon reasonable suspicion of theft, Roberto stops
Greg and asks him for his receipt. Greg produces the receipt, Roberto checks
the merchandise, and concludes that Greg did not, in fact, steal anything. The
entire process takes a couple of minutes. This is:
a. Public indecency, exposure, and cause for IIED
b. False imprisonment
c. Not false imprisonment, because of the shopkeeper’s privilege
d. False imprisonment despite the shopkeeper’s privilege
63. Roberto stops Jonathan upon reasonable suspicion of theft and asks Jonathan
to produce a receipt. Jonathan declines. Jonathan is taken to a back room
where he is kept for four hours (until Courtney the cop arrives). A search
reveals that Jonathan stole nothing. This is:
a. Public indecency, exposure, and cause for IIED
b. Not false imprisonment, since the police were involved
c. Not false imprisonment, because of the shopkeeper’s privilege
d. False imprisonment despite the shopkeeper’s privilege
64. In the example above, Jonathan is subjected to the “avenging angel”
treatment throughout the four hours, as Roberto ties Jonathan to the chair
and then flashes his body parts to Jonathan. Jonathan gets an instant fever,
breaks out in hives, and develops what the medical community later refers to
as “post-exposure boils.” He can never sleep again; nor can he go within a
mile of a Wal-Mart. This is:
a. IIED and false imprisonment
b. False imprisonment, but not IIED
c. IIED but not false imprisonment
d. Another reason why you should always show the receipt
65. In the example above, Wal-Mart did not conduct a proper background check
that would have revealed Roberto’s prior charges. They can be sued for:
a. Defamation
b. Conversion
c. Negligence
d. A felony
66. Jonathan sues Wal-Mart an acquires $40 million dollars in a settlement. He
places Michelle in the Master and Commander position, where Michelle has
access to all of his accounts, and can do and undo as she wishes. He pays
Michelle two thousand dollars per week. At the end of the first month,
$39,999,550 are missing, and Jonathan brings the authorities to investigate.
The authorities determine that Michelle has been funneling the money into
one of her accounts in the Caymans. They charge her with:
a. Racketeering
b. Unlawful vending
c. Embezzlement
d. Terrorist connections (because of the Caymans)
67. As Jonathan is panhandling a mile away from the Wal-Mart, he sees Zoren
attempting to rob Sophia and mutters to himself: “Ain’t nothin’ I can do here.”
He then goes back to panhandling, asking folks to “help me get back my 40
million.” Sophia is badly hurt, and all of her money is taken. She notices that
Jonathan saw everything and could have helped. Because she recognized
Jonathan as “The 40-million dollar man,” she sued him. Jonathan’s best
defense is:
a. Sophia assumed the risk of being robbed by being out on a public
street where panhandlers converge
b. Sophia was not damaged
c. Sophia’s injuries were not foreseeable by Jonathan
d. Jonathan had no duty to Sophia whatsoever
68. Jonathan won his lawsuit, in the above example, and Sophia was forced to
pay his fees and costs (which were substantial). Jonathan is now “back on
top,” as he walks out of the courthouse and, without looking at any of the
7,000 signs, steps into a building whose foundations are strapped with TNT
that is scheduled and ready to blow. The building indeed blows and twentysix stories fall on top of Jonathan. Jonathan sustains some injuries and sues
the company, Dyemond Explosives. What result?
a. Jonathan loses, because he should have read the 7,000 signs and
known about the risks of going into a building strapped with
explosives
b. Jonathan wins because explosives are an ultra-hazardous activity, and
regardless of the 7,000 signs the Dyemond Explosive company is
strictly liable for any damages that may result from their activity
c. Jonathan wins because he’s a winner
d. Jonathan loses because he assumed the risk
69. Jonathan wins a settlement of 40 million dollars from Dyemond Explosive,
and he recalls that it was Courtney the cop who pulled him out of the rubble.
He feels guilty that Courtney the cop should work for $60k a year while he’s
been the 40-million dollar man twice. So he calls Courtney over and
announces, to the press, “Because you saved my life that day, I’m going to
give you, Courtney, a million dollars a year for the rest of your life.” Courtney
accepts. Once the press leaves, Jonathan pulls back on the offer, claiming he
just wanted a “Stop the Presses” moment. Courtney sues Jonathan. What
result?
a. Jonathan must give her a million dollars a year because it was
announced to the press
b. Jonathan must give her a million dollars a year because Courtney
accepted the offer
c. Jonathan doesn’t have to give her anything, because past
consideration is no consideration and because this would’ve been
considered a gift
d. Jonathan doesn’t have to give her anything because of his diminished
capacity after the blast
70. Courtney the cop gets plenty of press out of the above events, and is offered a
job by the local news agency, Dyemond News. Courtney accepts a two year
deal as a beat reporter at $100k a year, with medical and benefits. The
contract is signed and witnessed. Courtney tosses her badge and gun, saying
“thank God I never have to do this again.” On her first day of work, Greg (the
owner of the news company) tells her: “We have no work for you. Go back to
patrolling the streets where you belong.” Courtney’s smile turns upsidedown and she promptly sues Dyemond. What result?
a. Courtney will win, as there was a good offer, good acceptance, and
good consideration
b. Dyemond will win because this was a two-year contract, and any
contract over a year must be in writing
c. Courtney will win because she lost the previous case with Jonathan,
and because there should be some moral compensation in quasicontract
d. Courtney will win a million dollars a year, which is what she would
have been entitled to win in the prior suit
71. Courtney gets her job as a news reporter back, and on her first day she has a
breaking story about Diomnys and Jess, two supposedly crooked cops who
were in her former department. Diomnys and Jess sue Courtney and
Dyemond news for defamation in the form of libel. What result?
a. Diomnys and Jess will win if the story proves to be false
b. Diomnys and Jess will win regardless of whether the story was true or
false
c. Diomnys and Jess will lose because Courtney has had a tough enough
couple of years, and quasi-contract dictates that they shouldn’t harass
Courtney
d. Diomnys and Jess will lose because Dyemond news is too powerful
72. Jonathan offers Diomnys and Jess $100k a year to be his private security,
because everywhere he goes he thinks there may be an exploding building or
a Wal-Mart with employees exposing themselves. They sign a contract for a
year and begin working together. After a month, Jonathan begins to
hallucinate that Diomnys and Jess are betraying him to the Wal-Mart, and
that he will soon be visited by an avenging angel. He fires both Diomnys and
Jess, who both sue. What result?
a. Diomnys and Jess will win if Courtney’s news story proves to be false
b. Diomnys and Jess will win because there was a valid offer, valid
acceptance, and valid consideration; also, because Jonathan breached
the contract
c. Diomnys and Jess will win regardless
d. Jonathan will win because his hallucinations make him unable to
enter into a contract
73. Martine and Natasha enter into an agreement: a dollar for each Ecstasy pill.
Ecstasy is illegal in this jurisdiction. When Martine doesn’t deliver, Natasha
sues. What result?
a. Natasha will win because there was a valid contract and Martine
breached that contract
b. Martine will win because past consideration is no consideration
c. The contract will be ruled void because of illegaility
d. The contract is good despite the illegality
74. Martine and Natasha enter into an agreement: a dollar for each Ecstasy pill.
Ecstasy is Legal in this jurisdiction. When Martine doesn’t deliver, Natasha
sues. What result?
a. Natasha will win because there was a valid contract and Martine
breached that contract
b. Martine will win because past consideration is no consideration
c. The contract will be ruled void because of illegaility
d. The contract is good despite the illegality
75. Leonor and Kareisha enter into an agreement whereby Kareisha will sell
Leonor a car. Because nothing about the key was “spelled out” in the
contract, Kareisha has the car delivered to Leonor’s house, placed in Leonor’s
front yard, and has the title delivered to Leonor. She refuses, however, to give
Leonor the key (which she loves). What result?
a. Kareisha must deliver the key because it is an implied term
b. Kareisha must deliver the key because it is an express term
c. Leonor must make do without the key (she should’ve had it written
down)
d. Kareisha has every right to keep her key
76. Lucy and Stephanie enter into an agreement with Jordany, whereby Jordany
is to deliver his entire stash of ephedrine (legal at the time of the contract)
every month to Lucy and Stephanie’s GNC store. Two years after the contract
has been satisfactorily performed, Congress passes a law making all
ephedrine illegal. What result?
a. Congress probably doesn’t like Lucy and Stephanie
b. The contract can still be performed, but cannot be renewed
c. The contract remains valid, and can be renewed as long as there is a
valid renewal clause
d. The contract is now illegal and void
77. Alex is handling a trust fund for Joel, and in the course of his activities, Alex
“borrows” $2,000,000,000 for himself, which he never returns. This is:
a. Racketeering
b. Fibroid
c. Embezzlement
d. Contract
78. What does the legal appeals system most closely resemble?
a. A ladder/ a staircase
b. A circle
c. A carnival
d. A parade
79. You can only sue for consequential damages when they are
a. substantial
b. beautiful
c. foreseeable
d. reasonable
80. You can terminate an offer by
a. Death
b. Lapse of time
c. Revocation
d. All of the above
Bonus
81. Consideration is best defined as
a. A baseball
b. Quid pro quo
c. Pro hac vice
d. An indictment