midterm_answer_Solutions - Business Law I AEM 320; NBA 560...

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Business Law I AEM 320; NBA 560 October 2007 Midterm Exam ANSWER KEY Each question on this exam was worth 25 points, with points being awarded as follows to denote letter grades: 25 A+ 24 A 23 A- 22 B+ 21 B 20 B- 19 C+ 18 C 17 C- 16 D+ 15 D 14 D- less than 14 really awful Your letter grade for the exam should reflect the following scale [the mean was 80]: 100 97 A+ 96 91 A 90 88 A- 87 85 B+ 84 80 B 79 76 B- 75 73 C+ 72 69 C 68 65 C- 64 61 D+ 60 57 D 56 52 D- If after reading the explanation of the answers set forth below you believe that your overall exam grade is too low, please bring your exam to office hours and we can discuss why you believe a regrade is appropriate. Please be aware that I will review ALL answers, not just those you feel are unfair. If you don’t want a regrade but just want more feedback as to what you did wrong, feel free to discuss that with me as well.
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Business Law I Please refer to the following facts when answering the questions on this exam: Oliver owns a commercial building in downtown Ithaca. Patsy leases space on the first floor of the building where she operates a clothing store. Peter leases the other half of the first floor where he has a jewelry store. The upper floors are leased to Premium Consulting Inc, as office space. To protect the building from fire and theft, Oliver enters into a contract with Ajax Alarm Co. whereby Ajax will install a comprehensive burglar and fire alarm system, and Ajax employees will monitor the system 24 hours a day. It is possible to install a system that is also hooked directly to the Ithaca police and fire departments so that they can respond immediately should an alarm in the building be triggered, but this feature would double the cost of the project so Oliver decides not to purchase that type of alarm system. The Oliver/Ajax contract describes the system that Ajax will install, outlines Ajax’s continuing duties with regard to monitoring the system, and sets out the payment terms, both for the original system and for the monitoring service. In addition, the contract contains the following clauses: An integration clause A clause that limits Ajax’s liability for injury or damages arising from its failure to perform the contract to $1,000 A clause that allows Ajax, but not Oliver, to terminate the contract at will A clause that provides that New York law, including its UCC provisions, will govern the contract Peter and Patsy’s entire inventory is destroyed when a fire sweeps through the building, setting off the sprinkler system. The Ajax employee monitoring the alarm system had fallen asleep in his chair so he did not see the warning signal that was automatically sent out when the short- circuit occurred. By the time he realized what was happening and called the fire department, the damage had been done. An investigation into the cause of the fire indicated that it was arson.
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This homework help was uploaded on 02/20/2009 for the course AEM 3200 taught by Professor Grossman,d. during the Fall '07 term at Cornell University (Engineering School).

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midterm_answer_Solutions - Business Law I AEM 320; NBA 560...

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