Business Law Teste 4 Final Exam

Business Law Teste 4 Final Exam - Blackboard Learning...

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Unformatted text preview: Blackboard Learning System 5112/11 10:33 AM a Your location; Home Page > Business Law I Final Exam > Assessments > flew All Submissions > View Attempt View Attempt 1 of 1 Title: Business Law I Final Exam Started: May 8, 2011 1:25 PM Submitted: May 8, 2011 2:41 PM Time spent: 01:16:07 Total score: 81/100 = 81% Total score adjusted by 0.0 Maximum possible score: 100 1. FX13 If a principal terminates an agency without giving notice of the termination to third persons, the agent may retain the power to make contracts that will bind the principal and third persons. Student Response Value Correct Answer False 0% True Score: 0/2 2. FX7 A contract may prohibit the assignment of any rights arising thereunder. Student Response - Value Correct Answer True 100% True Score: 2/2 3. FX12 Damages representing annoyance may be recovered in a breach—of—contract action as consequential damages. Student Response - I Value Correct Answer False 100% False Score: 2].? 4. FX5 An incidental beneficiary is the same thing as a third—party beneficiary. http:,ffmycommnetblackboard.com:80/webctlcobaltMainFrame.dowebct?appforward=lwebctlviewMyWebCTdowabct Page 1 of 6 'Blackboartl Learning System 5/12/11 10:33 AM Student Response Value Correct Answer False 100% False Score: 2/2 5. FX14 In the partially disclosed principal situation, the agent is considered a party to the contract. Student-Response. Value Correct Answer ' True 100% True Score: 2/2 6. FX3 When a contract falls within the statute of frauds, the signatures of both parties must be shown to the court. Student Response I Value Correct Answer False 100% False Score: 2/2 7. FX10 An anticipatory repudiation must be clear, absolute, and unequivocal. Student Response Value Correct Answer True 100% True Score: 212 8. FX6 An assignee of a contract can bring suit on the contract only in the name of the assignor. Student Response Value Correct Answer True 0% False Score: 0/2 9. FX9 Performance of a contract sometimes is excused on the ground of economic frustration. Student Response Value Correct Answer http:f Imycommnet.blackboard.com:80lwebcticobaltMainFrame.dowebct?appforwardulwebct/yiewMyWebCTdowebct Page 2 of 6 'Blackboafd Learning System 10. 11. 12. http:/f mycommnet.blackboard.com:SD/webct/cobaltMainFrame.dowebct?appforward=/Webct/ViewMYWe bCT.dowebct 5/12/11 10:33 AM True 0% False Score: 0/2 FX 1 Under the statute of frauds, an oral contract must be completed within one year after performance begins. Student Response Value Correct Answer False 100% False Score: 2/2 FC1 Bob and Marge entered into a contract for the sale of 100 widgets. Marge was to pay Bob $200 for the widgets. Marge paid Bob $100 and Bob delivered the widgets. Subsequently, Bob made an assignment of his rights under the contract to Laura to whom he owed $200. Bob delivered notice of the assignment to Marge. Laura demanded $200 from Marge. Marge refused to pay and Laura sued her. DECIDE. Student Laura has the right to sue Marge for the payment owed. Marge was notified that Response: there has been an assignment of rights to Marge from Bob for the payment. Laura now has the right to demand payment from Marge for the balance of $100. Sample Marge is liable to Laura for only the $100 due at the time of the assignment. The Correct assignee receives only the rights due the assignor at the time the assignment is Answer made. Score: 10/10 FC2 Barnes agrees with Morgan to enter into the management of a new subdivision of residential housing. Morgan appoints Barnes as his manager for the duration of the development program. During the course of the construction, Barnes decides to use funds specified for the subdivision for an office-space project that Barnes alone has been interested in completing. Morgan is very angry on learning of Barnes' actions and terminates the agency. Barnes insists that the agency cannot be terminated in this manner. Is Barnes correct? Student Yes. His action to use funds specified for the subdivision for an office—space project Response: was not for his own benefit. Besides, If Morgan want to terminate the contract, she should notify Bob clearly why his action was not right before she terminates it. Sample No. Morgan hired Barnes to manage a new subdivision. Barnes has been authorized Correct to transact all affairs in connection with the subdivision. As such, Barnes is a general Answer agent. In most cases, either party to an agency relationship has the power to terminate that relationship at any time. Therefore, Morgan has the power to terminate the agency. However, there is a possibility of liability for damages if the termination was not accomplished in a lawful manner. Given that Barnes has been guilty of misconduct, the discharge of Barnes will be without liability. Care should be Page 3 of6 Blackboard Learning System 13. 14. 5i12/Il 10:33 AM taken to ensure that third parties are given notice of the agency termination. Score: 7/10 FXC4 Doctor Proctor was employed by the Norwalk Medical Clinic. 1 year after his employment began, the clinic requested him to sign, and he voluntarily signed, an agreement not to practice medicine for 1 year within 5 miles of Norwalk after leaving the employ of the clinic. 6 months later, Dr. Proctor resigned from the clinic and opened his own practice in Norwalk. The clinic sued Dr. Proctor. DECIDE. Student The clinic has the right to sue Dr. Proctor. He clearly violated the time limit on his Response: contract. This would cause an economic impact on the clinic, because his patients would go to his new practice facility. Sample In order to enforce a covenant not to compete the agreement must be reasonably Correct limited in both time and geography. It may not be so broad as to prohibit the former Answer employee from working in the field the employee was working in for the employer. The promise not to compete must also be supported by consideration. In this case the agreement not to compete is reasonably limited as to time and geography, but not supported by consideration. Dr. Proctor was already working for the employer and received no additional benefit by agreeing at the time he signed the covenant not to compete. Therefore, the employer may not enforce the covenant not to compete. Score: 7/10 FXC7 Barnes agrees with Morgan to enter into the management of a new subdivision of residential housing. Morgan appoints Barnes as his manager for the duration of the development program. During the course of the construction, Barnes decides to use funds specified for the subdivision for an office—space project that Barnes alone has been interested in completing. Morgan is very angry on learning of Barnes‘ actions and terminates the agency. Barnes insists that the agency cannot be terminated in this manner. Is Barnes correct? Student Yes. His action to use funds specified for the subdivision for an office-space project Response: was not for his own benefit. Besides, If Morgan want to terminate the contract, she should notify Bob clearly why his action was not right before she terminates it. Sample No. Morgan hired Barnes to manage a new subdivision. Barnes has been authorized Correct to transact all affairs in connection with the subdivision. As such, Barnes is a general Answer agent. In most cases, either party to an agency relationship has the power to terminate that relationship at any time. Therefore, Morgan has the power to terminate the agency. However, there is a possibility of liability for damages if the termination was not accomplished in a lawful manner. Given that Barnes has been guilty of misconduct, the discharge of Barnes will be without liability. Score: 0/10 15. FXC5 http: H mycommnetblackboardcom:Solwebct/ cobaltMainFrame.dowebct?appforward=[webctfviewMYWebCT-doweth Dave signed a contract to purchase his neighbor's 1991 automobile. After signing the contract, Page 4 of 6 Blackboard Learning System 16. 17. http:/l rnycommnetblackboard.com:80/webct!cobaltMainFrame.dowebct?appfonivard=lwebct/viewMyWebCT.dOWEbct 5/12/11 10:33 AM the neighbor decided that she did not wish to sell her car and refused to complete the transaction. Dave attempted to purchase a similar car elsewhere, but the car was a vintage automobile which was not available on the open market. Dave sued the neighbor for specific performance of the contract. Decide. Student Dave can sue for the specific performance of the contract, so to force the neighbor Response: to sell him the car based on the contract that the neighbor signed with Dave. Sample Dave will win the lawsuit for specific performance because the car is unique and no Correct adequate remedy in damages is available to Dave. Dave cannot simply go out and Answer purchase a similar car elsewhere. Score: 20/10 FXC8 Ames, an agent for Baker Antiques, had the authority to purchase early 20th-century American furniture costing a maximum of $1,500 per piece. Ames bought a 19th-century French desk for $3,000 from Carter. Baker was furious when she saw the desk, and she fired Ames. Nevertheless, she put the desk on display in the shop with a $5,000 price tag. When the best offer she got for the desk was $2,500, Baker returned the desk to Carter. Baker told Carter that Ames had exceeded his authority in purchasing the desk, and she demanded that Carter refund the $3,000 that Ames had paid for the desk. Decide. Student Carter would not refund the furniture because Ames was the agent of the principal Response: and has necessary authority whether she did not wrong or not. Ames also would have responsibility to recover Baker's damage because she exceeded her duty. Sample By displaying the desk and making it available for sale with knowledge of Ames' Correct unauthorized act in purchasing it, Baker ratified Ames' act. Judgment will be for Answer Carter. Score: 6/10 FXC6 Cyril made a contract to have his house painted one month from the date of the written contract. The contract was definite and clear in all respects. Cyril inquired with the painter as to when the work could be begun. The painter explained that he was extremely busy and was not sure if he could fulfill the contract. Cyril flew into a rage and immediately hired someone else who painted but at a higher price. Cyril then sued the painter claiming that there was an anticipatory repudiation of the contract by the painter. Decide. Student Judge for the painter. If the other party has changed position, the party making the Response: anticipatory repudiation cannot retract it. In this case, Cyril already hired someone else who painted the house. Sample Cyril will lose the case against the painter because there was no anticipatory Correct repudiation of the contract that would have had to be clear, positive, and Answer unequivocal. Merely stating that you are not sure if you can complete a contract is not a repudiation. Score: 10/10 Page 5 of 6 “Blackboard Learning System Sl12/11 10:33 AM 18. FXC3 Tom Creighton hired Destroy Inc., a demolition company, to level an old building on a busy downtown lot. Destroy Inc. was given full rein to decide on the amount of explosives needed and the placement of the charges. Security for the site on the day of the explosion was contracted out to a private security firm. When the appointed day arrived, the building was brought down. However, the building fell in a slightly different direction than that anticipated by Destroy Inc. Numerous pieces of adjoining property, both real and personal, were severely damaged. Creighton claims that the use of an independent contractor such as Destroy has insulated him from liability. Decide. Student Destroy Inc. is liable for the damages that the building caused. They are an Response: independent contractor who had full authority to destroy the building. Creighton did not make any decisions as to how the building would be brought down. So Destroy Inc. is liable for the damages caused by the building. Sample It generally is true that a person hiring an independent contractor is not iiable for Correct any harm caused by the independent contractor or the independent contractor's Answer employees. Exceptions to this general rule do exist. An exception exists for situations in which the work undertaken by the independent contractor is inherently dangerous. Demolition work accomplished through the use of explosives is just such inherently dangerous work. Creighton cannot hope to shield himself from his duty to protect the public from harm by delegating a dangerous task to another. Score: 7/10 Done http:IImycommnet.blackboard.corn:80/webct/cobaltMainFrame.dowebct?appforward=lwebct/viewMyWebCT.doWebct Page 6 of 6 ...
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Business Law Teste 4 Final Exam - Blackboard Learning...

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