1. Mary was disfigured in a road accident. Employers refused to hire her because of her
appearance. What ethical character traits have the employers failed to exercise?
Ans: They are not exercising fairness or compassion.
1. What are the elements of the formalist theory?
Ans: The elements of the formalist theory include offer, acceptance, mutual assent, capacity,
consideration, and legality.
2. Jacob promises to pay Ariel $200
1. Jason was arrested under a city ordinance that made distributing handbills on the city streets a
crime. Jason argued that the U.S. Constitution guaranteed his right to free speech under the First
Amendment. The local prosecutor argued tha
1. In June, the Dan contracted with Terry to build a stone path leading from the road to their
vacation home. They asked him to complete the job within 11 months. Explain whether Terry and
the Dan must enter into a written agreement for such
Chapter 1 Assigned QRD
1-10 Even #
2. Positive law says that the law comes from social institutions rather than from
God, from human nature, or from human rationality. Natural law instead
originates from a superior force that stands outside the everyday e
1. A United Nations agency has requested an advisory opinion from the International Court of
Justice concerning the applicability of the Geneva Conventions to a rebellion within an African
nation. No party to the actual conflict has made a r
1. ARA Co. plans to sell stock to investors with a Web site offer form. Discuss the federal
securities regulations, if any, that ARA must comply with.
Ans: ARA is offering securities through interstate commerce and must file a registration
1. AXB Co. has made a variety of unsecured, undisclosed, large personal loans to top
management officials. Benita audits AXB and discovers this problem. Discuss what type of audit
opinion Benita is likely to issue.
Ans: An adverse opinion wo
1. Adam found out from a friend that the Eaton Credit Bureau had passed on several inaccurate
credit reports to three banks, all of which refused to give Adam a loan. Adam went to the credit
bureau but was told that he could not see what was
1. Larry Construction Co. contracts to build a warehouse for Mechanical Industries Inc. in
Greenfield. The contract is silent concerning permits and licenses and merely quotes a total price
for completing the job. A week into construction, G
1. Morgan purchased a house for $150,000, paying $15,000 in cash and giving a mortgage to a
bank for the balance. When Morgan defaulted on the loan, the bank foreclosed and sold the house
for $25,000 less than Morgan owed. Morgan believed he
1. Shandy has a steady income but is behind on her payment of debts. Shandy wants to pay her
debts, but needs some relief from her creditors. Discuss what type of the Bankruptcy Procedure
would best fit in this case.
Ans: Chapter 13, individ
1. Marcus is a car purchasing agent for Cello Motors, a used car dealer. Marcus attends wholesale
auto auctions and notices that some autos have consistently greater demand and higher prices.
Marcus forms a car purchasing partnership with Vi
1. Whitney signs her will and then realizes that she needs witnesses. She finds two friends, tells
them the signature is hers and the two friends sign the document. Discuss if this method is valid.
Ans: Whether the will is considered valid d
1. July 14, 20-, Milwaukee, Wisconsin. One year after date, I promise to pay to the order of
Sara Decruz, $1,000 with interest. [Signed] George Ray. Is this instrument a note or a draft?
Ans: The instrument is a note because it is a
1. Waldo, the landlord, wrongfully withholds a $200 security deposit from Ellen, the tenant.
Discuss the legal remedies available to Ellen.
Ans: Ellen may sue for double or triple damages, court costs, and attorneys fees in most
1. Dan loaned Chet a pair of binoculars to use while attending a baseball game. The binoculars
were stolen when Chet left them on a vacant seat when he went to buy refreshments. Was Chet
liable for damages for the loss? Why or why not?
1. Marshal flew her ultra light airplane 200 feet above the surface of a vacant lot owned by
Jacobs. When Jacobs complained, Marshal claimed that she was flying in navigable airspace.
Was Marshal correct? Explain.
Ans: No, except for when it
1. Cassie owed Ty $5,000. In order to pay this debt Cassie ordered Eunice, who owed her $7,000,
to pay $5,000 of this debt directly to Ty. Discuss the legal terms used to describe the various
parties in this situation.
Ans: Cassie is the ass
1. Cheru contracts with Dona to sell him an antique German car and to completely restore it. Due
to a shortage of parts, Cheru is unable to finish the project on time. What will be required if
Cheru and Dona agree to a mutual rescission?
1. Evergrow Produce Co., contracted with Steve for 15 tons of lettuce to be grown on Steves
farm. At the time of their agreement, the lettuce had not been planted. Was this a sale? Why or
Ans: No, since the lettuce had not yet been
1. Jana uses a bad check to buy goods from Malik. Jana resells the goods to Dakota who knows
nothing about the bad check. Explain if Malik can recover the goods from Dakota.
Ans: This is a fraud situation and Jana has obtained voidable title
1. Mega Finance Co. is found guilty of usury. Explain what likely penalties Mega Finance faces.
Ans: Some states make the entire contract void. Other states allow the lender to collect only the
principal. Still others permit recovery of the
1. Luke used cardboard and putty to cover the holes in the bottom of a rowboat. He then sold the
boat to Mathew. When Mathew took the boat out on the lake, it floated for about 30 minutes and
then sank. On inspection, Mathew discovered the c
1. Kevingrove Art Gallery falsely tells art collectors that many artworks being sold by Yesse Art
Gallery are forgeries. On what basis may Yesse Art Gallery sue Kevingrove Art Gallery?
Ans: Kevingrove Art Gallery has committed the tort of di
1. Monica lives in an apartment complex. One night she hears screams and what sound like
gunshots, but she fails to call 911. Has Monica committed a crime due to her failure to call 911?
Ans: No. In the absence of a legally imposed
1. Ned and Jacob operate a restaurant as equal partners. Ned wants to reinvest the profits and
Jacob wants to distribute and spend the profits. If they litigate, the court will likely order the
business assets sold which will destroy the inc