Sophia Learning Business Law Unit 2 Milestone 2.docx - You...

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You passed this Milestone 19 questions were answered correctly . 2 questions were answered incorrectly . 1 Zahra and Joseph sign a contract worth $1,000. When Zahra breaks the contract, Joseph loses the $1,000. Which type of monetary award does Joseph receive if he is later awarded $1,000? Nominal damages Incidental damages Restitution Compensatory damages CONCEPT Monetary Awards 2 Select the true statement about the Convention on Contracts for the International Sale of Goods (CISG). Its purpose is to unify contract law among countries to facilitate international trade. It governs international sales contracts for all countries in the world. It governs the international sale of services in addition to goods. Parties to the Convention must re-approve the treaty every five years. CONCEPT Sources of Contract Law
3 A manufacturer of a disposable butane lighter is sued for the wrongful death of two adults and a child under strict products liability law when the family's house burned down as a result of the six-year-old child setting bed clothes on fire using the manufacturer’s butane lighter. The allegation against the manufacturer is based on the theory that the lighter was defective because it did not have a childproof device to prevent children from igniting the lighter. This butane lighter had the words: “Keep Out of Reach of Children” written on the outside of the lighter body. How strong of a case does the family's estate have in its strict product liability lawsuit against the manufacturer based on the lighter being a defective product? Strong, because lighters are unavoidably unsafe. Weak, because it would be difficult to prove with certainty that the lighter was the cause of the fire. Weak, because there was no evidence that the product was unreasonably dangerous in normal use. Strong, because the product only contained a warning to keep the lighter away from children, but did not provide a childproofing mechanism. CONCEPT Strict Products Liability 4 In most cases, an enforceable contract has to include consideration, which __________. means that both parties have full mental capacity to form an agreement must be an exchange of legal value between the parties to the agreement
must be morally or economically adequate to make the bargain a fair one is defined as an offer extended from one party to the other CONCEPT Contract Formation 5 Contracts function as a symbol of __________ in modern society. wealth oppression free will disorder CONCEPT General Perspectives on Contracts 6 A laundry detergent company advertises that its new product can remove any stain from clothes in just one wash, although company testing has shown that it oftentimes takes two or three washes for a stain to disappear.

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