Business Law Teste 3 - Blackboard Learning System 4/6/11...

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Unformatted text preview: Blackboard Learning System 4/6/11 8:13 PM . Your Eocatican; Home Page; > Bus _!.__aw I txarr > Assessments > Ail Slfijmissigfi > View Attempt View Attempt 1 of 1 Title: Bus Law I Exam 3 Started: April 3, 2011 2:10 PM Submitted: April 3, 2011 3:20 PM Time spent: 01:10:10 Total score: 92/100 = 92% Total score adjusted by 0.0 Maximum possible score: 100 Done 1. Ex 3: 1 An express contract is one in which the agreement is shown by acts and conduct of the parties. Student Response Value Correct Answer False 100% False Score: 2/2 2. Ex 3, 2 A bilateral contract is essentially an exchange of promises. Student Response Value Correct Answer True 100% True Score: 2/2 3. Ex 3, 3 An option contract gives one of the parties an absolute right to enter into a second contract at a later date. Student Response Value Correct Answer True 100% True Score: 2/2 4. Ex 3, 4 The principle behind the quasi contract is to prevent unjust enrichment. Student Response Value Correct Answer True 100% True Score: 2/2 5. Ex 3, 5 http:/fmycommnet.blackboardxom:SOfwebct/cobaltMainFrame.dowebct?appforward=lwebct/viewMYWebCTdowebct Page 1 of 6 Blackboard Learning System 416/11 8:13 PM Generally, advertisements, catalog prices, and circulars are offers that can be accepted. Student Response Value Correct Answer False 100% False Score: 2/2 6. Ex 3, 6 An agreement is not too indefinite to be binding if a standard or formula is provided by which variable factors can be determined. Student Response Value Correct Answer True 100% True Score: 2/2 7. Ex 3, 7 Counteroffers are limited to those that directly contradict the original offer. Student Response Value Correct Answer False 100% False Score: 2/2 8. Ex 3, 8 The parent of a minor is liable for payment of the purchase price of a contract that the minor has avoided. Student Response Value Correct Answer False 100% False Score: 2/2 9. Ex 3, 9 A contract made by an incompetent person after a guardian has been appointed is voidable. Student Response Value Correct Answer False 100% False Score: 2/2 10. Ex 3, 10 The concept of consideration has clearly been phased out of the law. Student Response Value Correct Answer False 100% False Score: 2/2 httpzlfmycommnet.blackboard.com:80[webct,’cobal[MainFrame.dowebcflappforwardnfwebct/viewMyWebCT.dowebct Page 2 of 6 Blackboard Learning System 11. Ex 3, 11 Past benefits already received by a promisor cannot be consideration for a later promise. Correct Answer Student Response Value True 100% True Score: 2/2 12. Ex 3, 12 True consideration occurs only when the value of one promise is equal to the value of the promise given by the other party. Student Response Value Correct Answer False 100% False Score: 2/2 13. Ex 3, 13 A contract is not in itself unlawful if one of the parties intends to make unlawful use of the subject matter of the contract, a fact known by the other contracting party. Student Response Value Correct Answer True 100% True Score: 2/2 14. Ex 3, 14 Where a court recognizes an agreement to be illegal, a lawsuit based on that agreement may be dismissed by the court even if neither plaintiff nor defendant raised the issue of illegality. Student Response Value Correct Answer True 100% True Score: 2/2 15. Ex 3, 15 Forbearance may constitute consideration. Student Response Value Correct Answer True 100% True Score: 2/ 2 16. Ex 3, Case 2 John received a promotion at work and felt new clothes would be necessary in the new position. John went to a local store and charged three ties on his charge account at a cost of $60 each. Bill, a friend of John's, saw a sidewalk vendor selling ties at a cost of three for $10 and bought three at that price. The friends compared purchases that night and found that they had httpz,’,lmycommnet.blackboard.com : 80/webct/cobaltMainFrame.dowebct?appfonvard =lwe bctlviewMyWe bCT.dowe bct 4/5/11 8:13 PM Page 3 of 6 Blackboard Learning System 17. 18. 19. purchased identical ties. John became enraged and said that he would not pay the charge— account bill because the ties were clearly not worth $60 each. Bill indicated that he would testify in John's behalf if John were sued. What would be the probable outcome of the lawsuit? Student The outcome will be that John will lose the case. John on his own will went to the Response: store and purchased the goods for $60. Just because another store was charging less, does not give him the right to not pay the charge-account. Sampie John will lose the case because John received consideration that he bargained for, Correct i.e., the ties. The court will not concern itself with the question of whether John Answer received enough or adequate consideration. Score: 10/ 10 Ex 3 Case 4 2. On Monday Pat mailed an offer to Joan. The last sentence of the offer read, "Acceptance of this offer must be received in mv office by 10:00 Wednesdav morning. " Joan received the offer on Tuesday morning and had her secretary mail an acceptance on Tuesday afternoon. Pat received the acceptance on Thursday morning. Joan claimed under the maiibox rule there was a binding contract. Decide. Student The mailbox ruie states that when the acceptance is posted back by mail. Since Joan Response: mailed the letter before the due date. So the offer iegally has been accepted. Sample There was no binding contract. The mailbox rule was avoided in this case by the Correct requierement that the acceptance be received in Pat‘s office by a certain time and Answer date. Score: 8/10 Ex 3 Case 7 The Martin family owned a home that was badly in need of repair. Mrs. Martin worked outside the home as did Mr. Martin. One day, after the Martins left for work, a home repair crew drove up and began to put aluminum siding on the Martin house. The Martins returned home for dinner after work. By that time, the entire front of the house had been aluminum—sided. The foreman asked, "Mr. and Mrs. Wolf, how do you iike the job?" The Martins replied that they loved the job, but the Wolfs lived next door. When it became clear that the repair crew had made an error, the foreman insisted that the Martins had to pay. Decide. Student Since the Martins were unaware that their house was going to be repaired, they do Response: not have to pay for the work. Unless they knew that their house was going to be repaired then they would have to pay. Sample While most of the elemnts of a quasi-cantract are present, there is no unjust Correct enrichment. Since the Martins were unaware of the fact that they were being Answer enriched, they would not have to pay for the improvement. Because they would have had no opportunity to stop the work from being done, the Martins would be enriched, but not unjustly. Score: 6/10 Ex 3 case 6 Art and Mary were good friends who went through high school and college together. Art eventually became a college philosophy professor and Mary went into the business world. Mary became a Senior vice—president of a management firm and learned many of the company's trade secrets. Both Art and Mary signed one~year contracts with their respective employers. The httpzllmycommnetblackboard.com:80.fwe bct/cobaltMainFrame.dowebct?appforward= fwebct/viewMVWebCTdowebct 4/6/11 8:13 PM Page 4 of 6 Blackboard Learning System 20. contracts contained clauses that provided that they would not compete against their former employers for a period of one year after leaving their jobs. The area covered by the restrictions for both Art and Mary was a radius of 500 miles from the place of employment. Both Art and Mary resigned and within two months took other jobs. Art went to work for another college 50 miles away, teaching philosophy. Mary took a job 75 miles from her former employment. Her new position was similar to her former job. The former employers sued to enforce the anticompetitive covenants in the original contracts. Decide both lawsuits. Student In the case for Art, he clearly violated the anticompetitive contract that he signed Response: with his former employer. There was both a time limit and an area limit which he could not compete against his former employer, which he both violated. In the case for Mary, she also violated her anticompetitive contract that she signed. She took a similar position at a place that violated the 500 mile limit. Also she took the position within 2 months of resigning from her old employer, which violated the 1 year restriction. In both cases the former employer wiil be able to enforce the anticompetitive covenants. Sample The case against Art, the professor, will likely fail because the restrictive covenant is Correct not necessary to protect the interest of the former employer. It is doubtful that a Answer philosophy professor would be inflicting any harm on the former employer by teaching elsewhere. The lawsuit against Mary will be successful because she knew trade secrets. She held a high position in her former company, and her competition could cause it harm. The restriction is reasonable. Score: 8/10 Ex 3 Case 5 Dave Tompkins was up late one night watching a television campaign for a charitable organization. One of Tomkins' favorite performers appeared to promote the campaign, and this prompted Dave to telephone in a pledge. Tomkins pledged $10,000 to the charity and, feeling good about his action, finally went to sleep. The next morning, Tomkins regretted making the pledge because its enforcement would cause great financial hardship to Tompkins. Will the charity be able to legally enforce the pledge Tomkins made? Student The charity wiil be able to legally enforce the pledge. The charitable organization is Response: depending on the pledge made by the donors, and Dave would know that while watching the TV program. Tomkins is bound by his pledge to the charitable organization. Ordinarily, courts do not consider the adequacy of the consideration given for a promise (pledge). However, Tomkins could argue that he received nothing for the promise to pay $10,000. Unfortunateiy for Tomkins, courts do allow enforcement of voluntary subscriptions to charitable enterprises. This exception to the adequacy—of— consideration rule is based primariiy on public policy considerations. The courts wish to promote the seriousness of the giving of donations to worthy organizations by making such contributions enforceable. 10/10 Sampie Correct Answer Score: 21. Ex 3, case 3 Bill offered to have Joe supply his office workers with computer terminals for $25,000. Joe looked over Bill's first floor office and agreed to do so but for $35,000. Bill agreed. When Joe did a closer survey of Bill's office he found that there were 50 employees that needed computer terminals and that the true value of the contract was $65,000. Joe sought to set the contract aside claiming Bill acted in reckless disregard of the truth because Bill had failed to tell Joe the number of terminals needed when he made the original offer to Joe. Decide. http:,' {mycommnet.blackboard.com:80/webct/cobaltMainFrame.dowe bct?appfon~ard= lwebctlviewMyWebCT.dowebct 4/6111 8:13 PM Page 5 of 5 Blackboard Learning System 4/6/11 3:13 PM Student Since Bill allowed Joe to survey the office, there is no reckless disregard of the truth Response: by Bill. It is Joe's fault for incorrectly surveying the office floor. Sample The contract may not be avided by Joe. There is no fraud involved. Fraud would Correct require a misrepresentation by Bill. Bill allowed Joe to survey the office. It was Joe's Answer mistake that he did not survey the entire office. Score: 10/ 10 22. Ex 3, Case. 1 John, a 17—year—old, purchased a Ping-Pong table and four new Ping'Pong paddles. A week after he turned 18, John tried to return the Ping—Pong paddles. He told the seller that he had decided to keep the table. Can John avoid the contract in this way? Student The oniy way that John can avoid the contract is if he returns the table with the Response: paddles. He cannot avoid a contract with just a partial return. Sample John may avoid the contract only by returning both the Ping—Pong paddles and the Correct table. To avoid a contract, a minor must disaffirm the entire contract. The minor Answer cannot ratify or affirm part of a voidable contract and avoid or disaffirm the rest. The entire contract either must be ratified or avoided. Score: 10/ 10 Done http:,’,fmycommnet.blackboard.com:80lwebct,’cobaltMainFramedowebctkppfonvard:lwebct/viewMyWebCT.dowebct Page 6 of 6 ...
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Business Law Teste 3 - Blackboard Learning System 4/6/11...

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