2004 midterm - Mid-Term Examination, Winter 2004 Course:...

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Unformatted text preview: Mid-Term Examination, Winter 2004 Course: ACTG 1P71 Date of Examination: February 28, 2004 BROCK UNIVERSITY Number of Pages: 15 Number of Students: 200 Number of Hours: 2.0 Instructor: G.W. McCann Questions 1, 2 and 3 are to be answered directly on the examination paper. Do NOT exceed the space provided. DO NOT continue answers on the back of a page. sufficient. The space provided is Questions 4, 5 and 6 are to be answered in ONE workbook. Write your name, student number and seminar leader’s name on the front page of the workbook. m NOT exceed one workbook in your answers and m NOT write on the back of pages in the workbook The space provided is sufficient. No examination aids other than those specified are permitted. Use or possession of unauthorized materials will automatically result in the award of a zero grade for this examination. g Question 1 2 NAME: STUDENT #: Marks 2O 35 SEMINAR LEADER: (Circle One) Suggested Minutes 32 56 Virginia Workman Thomas Wall Katharine King Brad Troup Maureen Murphy Sharon Mackay Awarded QUESTION 1 (18 Marks) For each of the following, select the ONE best answer and circle the appropriate letter. CIRCLE ONLY ONE and make your choice clear. There is no deduction for an incorrect answer. 1. Which of the following statements is/are correct in relation to tort law? A. B. C. D. E. An act must be intentional to be classified as a tort. The main purpose of tort law is to impose punishment on a wrongdoer. Sometimes a wrongful act will be both a crime and a tort. Tort law compensates victims of wrongful conduct. C. and D. above. 2. Which of the following constitutes an assault? A. B. C. D. E. bumping into another in a crowded hallway; an offensive gesture from another motorist; a bystander struck by a ball during a baseball game; pointing an unloaded gun at another who does not know whether or not it's loaded; all of the above. 3. In which case has a battery taken place? $3.095? F11 an uninvited kiss; a doctor, with the patient's consent, amputating a badly infected leg; a youth smashes a window of an empty parked car; the attempt to stop a thief from stealing your purse by striking her with your umbrella; punching your opponent in an Olympic boxing match. 4. Which of the following is the test used by the court in a negligence action for personal injury to determine if the defendant owed the plaintiff a "duty of care"? A. B. C. D. Would a reasonable person have foreseen that type or kind of injury? Would a reasonable person have acted like that in the circumstances? Would a reasonable person have foreseen that the plaintiff would have been affected by the action of the defendant? Would a careful person have acted like that in the circumstances? 5. The "standard of care" in a negligence case is defined as: F. what the average person would do under the circumstance; G. what a particularly prudent person would do under the circumstances; H. what a reasonably prudent person would do under the circumstances; I. all of the above; J. both (a) and (0). Which of the following is not a defense to a negligence action? No duty was owed No damage was suffered The defendant was being reasonably careful Thin Skull Rule Voluntary assumption of risk meow» Which one of the following situations will not cause an offer to lapse? insanity of the offeree. the offeror has not stipulated a time limit and the offeree does not accept within a reasonable time. the offeror sells the subject matter of the intended contract to someone else before hearing from the offeree. death of the offeror. the offeree has not accepted within a stipulated time. as o a? In order to be successful in a negligence action the plaintiff must prove: the defendant owed a duty of care; the defendant's conduct caused damage to the plaintiff; the defendant acted intentionally; the plaintiff was not contributorin negligent; both (a) and (b); all of (a), (b) and (c). macaw» A unilateral contract can best be described as: a contract in which the person making the offer determines all the terms a contract that can be revoked by the offeror a contract that is valid only when the offeree performs the act specified in the offer a contract that binds a party Without his being aware of it All of the above 91.50.33? 10. 11. 12. 13. 14. 4 Assume that all the other requirements for a valid contract are present and indicate which of the following would not be a binding agreement because of a problem with consideration. A. B. Although an antique dealer told May her statute was worth $500, she later agreed to sell it for $100. Mr. Ng promises to give $50 to a local theatre association and makes that promise under seal. Laura promises to pay a carpenter an additional $100 if he will build an extra second cabinet for her files. John, back from a month in Ottawa, promises to give Sam, a neighbour $50 for having kindly shovelled his walks while he was away. Jones agrees to accept $800 as full payment of a $1,000 debt when Kahn, the debtor, pays the $800 a week before the due date. Which of the following is true of a misrepresentation? an opinion of an expert cannot be a misrepresentation; a purely innocent misrepresentation will not affect the enforceability of a contract; in order to be actionable, a misrepresentation must have induced the innocent party to enter into the contract; all of the above; none of the above. Which of the following statements are true? A. B C. D. E all breaches of contract result in an award of damages; only damages which could be reasonably anticipated by the parties are compensable in a breach of contract case; victims of breach must take reasonable steps to mitigate their damages; all of the above; both (b) and (c). An injured party in a breach of contract case Where the contract contains a liquidated damages clause is entitled to which of the following? A B. C. D. E. all the damages that naturally and directly flow from the breach; the damages set out in the liquidated damages clause in the contact; the damages set out in the liquidated damages clauses provided that the amount set out represents an honest attempt by the parties to pre-estimate the damages; all damages that the injured party could not manage to mitigate; an award of specific performance. When is contract is deemed illegal, what is the likely response of the court? 15. 16. 17. mung? The contract is declared void and the parties are returned to their former positions. The contract is voidable and the innocent party can get their money back. The court will treat the contract as if it had never existed but not assist the parties. The parties will be required to return anything taken under the contract. The courts will treat a breach as it does under any other contract. Specific performance is an appropriate remedy where: WUOW? there is a liquidated damages clause in the agreement; damages are considered not to be an adequate remedy; the claim for damages is particularly large; the contract calls for personal services by a specific individual; all of the above. A bank may require that someone who guarantees the debts of another to obtain independent legal advice for which the following reasons? wagon? the guarantor uses a different bank; to avoid a defence of undue influence; to avoid a defence of duress; to avoid a defence of quantum meruit; all of the above; both (b) and (c). A court may make an order to amend or "rectify" a written agreement Where they are satisfied that: A. B. C. D. E. the parties negotiated a complete, unconditional agreement; the agreement the parties negotiated was not subsequently renegotiated; the written agreement contains an error in recording the agreement of the parties; all of the above; both (b) and (c). 18. 19. 20. 6 Which is a requirement for a valid statutory assignment? A. the assignment must be of a benefit, not an obligation; B. there must be a complete assignment, not a partial assignment; C. the assignment must be in writing; D. the promissor must receive notice of the assignment; E. all of the above. The goal of damages for breach of contract is: to put the parties into the positions they occupied before the contract was entered into; to give the victim of the breach the value of his reasonable expectations from the bargain; to punish the party who is in breach; all of the above; none of the above. WUQW? Which of the following statements is true? past consideration is no consideration; the court will not generally examine the sufficiency of consideration in a contract; a professional may be held to a higher standard of conduct than an ordinary person; a contract with an infant is never enforceable; all of the above; all of (a), (b) and (c). venom? QUESTION 2 (35 Marks) Complete each of the following questions with the most appropriate word or phrase. In all cases, very few words are required, so be as precise as you can. A. The concept that a plaintiff in a negligence claim may be partly responsible for his own injuries is called When a party intending to claim damages for a breach of contract takes reasonable steps to reduce the amount of losses for which compensation will be claimed, that party is said to have their damages. A contract is no contract at all. A contract, on the other hand, does exist and has legal effect, but one of the parties has the option to terminate it. An enforceable agreement to keep an offer open for acceptance for a specified period of time is a special kind of contract called The concept which provides that an employer can be held responsible for the torts of her employees during the course of their work is called involves the communication or publication of defamatory material in oral (not written) form. involves the communication or publication of defamatory material in written form. A contract, the performance of which is practically impossible or fundamentally changed by the interference of an unforeseen event, is said to be (2 Marks) (2 Marks) In a case where "A" sells something to "B", who is a rogue and does not pay "A", and "B" subsequently sells to "C", what does the court want to know about "C" before ruling in her favour? Truth is one defense to the tort of defamation. Name three others: (1) (2) (3) A person driving a bus is held to a higher standard of care than a person driving a car. True: False: The fact that it was an accident excuses a person from the injury caused to another. True: False: Courts will award compensation to anyone who suffers financial loss because of negligent statements. True: False: It is not necessary for a plaintiff to show injury to self or loss of property as a result (3 Marks) of defendant's negligence. True: False: Sometimes, in obvious cases, a plaintiff will be excused from proving that the defendant failed to meet the standard of care because of the principle known as " ". (Note: either the Latin or the English expression is acceptable. What are the elements necessary for an agreement to be enforceable in the courts? (1) (2) (3) (4) (5) (6) sometimes A valid contract must be based on a fair bargain. True: False: A voidable contract is one that can be ended by either party. True: False: How does an offer differ from an invitation to treat? (6 Marks) 10 In each of 1 - 9, below, select the item from the Key that is most appropriate (Note: it is possible for an item in the Key to be used more than once but only where it is the most appropriate answer.) Key: (a) invitation to treat (b) offer (c) gratuitous promise (d) bilateral contract (e) unilateral contract (f) mistake (g) illegality of object (h) rescission (i) non est facturn (j) rectification (k) none of the above Mrs. Wright pledged to give Planned Parenthood Association a $200 donation during its annual fund raising campaign. An announcement in the newspaper read as follows: "$200 reward for the return of two lost Brittany Spaniels." After having read the announcement given in (b) above, Mr. Hong found and returned the two lost dogs. An ad in the moming paper read "Brand New 1998 Ford Escorts $9,499. No payment until January, 1999. We make your first paymen ." "I'll give you $70 for your tennis racquet." Mr. Frank, a foreman supervising some 43 employees, was asked by his secretary to sign a form requesting additional supplies needed on the factory floor. He was not careless when he examined the form but his secretary had cleverly arranged the signature line so that instead of signing a request for supplies he signed a cheque payable to his secretary. What plea, if any, would be used to defend against her action on the cheque? (2 marks) 11 7. A and B entered into a contract for the purchase and sale of three grams of cocaine. B delivered the goods but A didn’t pay. If B sued for payment, the court would not enforce the contract because of which of the above? 8. If Mr. Jay took out a life insurance policy on a stranger, Mr. Wilde (known for his rough and dangerous habits), on which of the above grounds would the insurance company refuse to pay Jay if Wilde did die in one of his wild escapades? 9. What remedy would the courts award if a buyer was induced to enter into a contract because of an innocent misrepresentation by the seller? What must the purchaser of an insurance policy demonstrate about the insured person or thing to avoid the contract being declared void as a wager? Name two exceptions to the principle that a contract cannot be enforced by an outsider or a stranger. (1) (2) Identify three types of damages available to victims of torts. (1) (2) (3) What does "substantial performance" of a contract mean? Y. 12 An offeror puts his offer in the following terms, "If I don't hear from you in two weeks, I will consider this offer as accepted." What is the effect of the offeree's failure to reply? 13 QUESTION 3 (4 Marks) Ian, who was having a dispute with his landlord, Les, called upon an acquaintance of his, Sue, Who happened to be a lawyer. In the course of this conversation about politics and the weather, Ian casually mentioned his problems with his landlord and asked whether he could be within his legal rights to withhold his rent. Sue advised against it. The next week Ian received from Sue a bill for $150.00 for her legal advice. Ian refused to pay and Sue sued. Advise Ian of his rights and what you think the outcome of the lawsuit will be. l4 QUESTION 4 (5 Marks) Frank writes a letter to Joe saying "I offer to sell you my detective agency for $40,000.00. This offer is open for acceptance until 5:00 pm. on Friday, March 13th". Joe receives the offer on Monday, March 9th and he considers it. By Wednesday, March 11th, Joe still can't decide and he calls Frank on the phone and says "I haven't made up my mind yet, will you extend the offer until next Friday, March 20th?". Frank agrees. On Saturday, March 14th, Frank receives an unsolicited offer to buy his business for $50,000.00. Frank wants to accept this offer and tries several times to call Joe to revoke his offer, but without success since Joe has gone out of town for the weekend. Frank leaves a message at Joe's office telling Joe to call him immediately. Frank then accepts the $50,000.00 offer. When Joe arrives at his office Monday morning he sees Frank's message. Before returning the call Joe writes out an acceptance of Frank's offer and drops it in the mail box. He then calls Frank and when Frank advises him that he is revoking the offer, Joe tells him he’s too late. Advise Frank and Joe with respect to their rights on these facts. QUESTION 5 (4 Marks) Chester and Arthur are both toy manufacturers and both have remarkably similar problems. Chester had a customer place an order for $100,000.00 worth of his new “Tickle Me Barney” doll and the customer then refused to take delivery. Chester’s profit margin on the sale would have been $40,000.00. Arthur had a customer place an order for $100,000.00 worth of his “Cabbage Breath Kid” doll and that customer refused delivery. Arthur’s profit on the sale would also have been $40,000.00. The only difference is this: Tickle Me Barney is a big hit and stores can’t get enough of them. On the other hand the Cabbage Breath Kid is somewhat less successful and Arthur fears he may have a bunch left in his warehouse after the Christmas season. Advise Chester and Arthur of their rights and obligations and their chances for success in lawsuits against their respective customers. QUESTION 6 15 (7 Marks) (0 (ii) (4 Marks) Peter grows pumpkins which he sells to vegetable markets. On September 1st, Sherry, a market owner, entered into a contract with Peter who agreed to supply her with 100 pumpkins for Halloween season. The contract called for delivery on October 20th at a price of $1.00 each. Sherry planned to sell them for $2.00 each. On October 15th, Peter phoned Sherry and informed her that he did not intend to perform because another customer had since offered to buy all his pumpkins at $1.50 each. Sherry is angry because the pumpkin supply is dwindling as a result of unseasonably cold October weather. Advise Sherry of her rights and obligations as a victim of anticipatory breach. (3 Marks) Assume further that Sherry hears no further word from Peter and on October 30th purchases 100 pumpkins elsewhere for $1.75 each. She is able to sell only 80 at $2.00 each. She could have sold 100 if she’d had them on October 20th. Advise Sherry as to the amount of damages she can recover. F:\USERS\gelinas\Brock\February 28 (2004).exam.doc ...
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This note was uploaded on 06/08/2010 for the course ACTG 1P71 taught by Professor Maccn during the Winter '09 term at Brock University, Canada.

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2004 midterm - Mid-Term Examination, Winter 2004 Course:...

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