Business Test 2 (Ch. 2,8,9,10)

Flo wants to file a suit against Gerry. For a court to hear the case, a. Gerry must agree. b. the court must have jurisdiction. c. the parties must have no minimum contacts with each other. d. both parties must own property.

Huey, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against Huey in Indiana. Regarding this suit, Indiana has a. federal jurisdiction. b. in personam jurisdiction. c. in rem jurisdiction. d. no jurisdiction.

A Rhode Island state court can exercise jurisdiction over Standard Business Corporation, an out-of-state defendant, if Standard has minimum contacts with a. the state. b. the United States. c. any lawyer or law firm. d. any of the choices.

Milo files a suit against Nick in an Ohio state court, noting that Nick op¬erates a Web site through which Ohio residents have done substantial business with him. The court is most likely to have jurisdiction over Nick if Milo's claim arises from a. anything an Ohio resident has done. b. Nick's Web site activities. c. nothing an Ohio resident has done. d. something other than Nick's Web site.

David, an Alabama resident, files a suit in an Alabama court against QuickAds, an Internet company based in Georgia that provides advertising services. QuickAds only contact with persons in Alabama has been through QuickAds's passive advertising. The Alabama court is a. likely to have jurisdiction over the case. b. not likely to have jurisdiction over the case. c. likely to refer the case to a higher district court. d. likely to refer the case to an appellate court.

Mary files a suit against Nichelle in a state court over an employment contract. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court. After the state's highest court's review of Mary v. Nichelle, a party can appeal the decision to the United States Supreme Court if a. a federal question is involved. b. a question of state law remains unresolved. c. the party is unsatisfied with the result. d. the state trial and appellate court rulings are different.

Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Over this case, Mississippi state courts have a. concurrent jurisdiction with federal courts. b. concurrent jurisdiction with other state courts. c. exclusive jurisdiction. d. no jurisdiction.

The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice Cream Co. v. Pecan Corp. is heard in an appellate court. The difference between a trial and an appellate court is whether a. a trial is being held. b. the court is appealing. c. the parties question how the law applies to their dispute. d. the subject matter of the case involves complex facts.

Carol files a suit against Duffy in a state trial court and loses. Carol a. cannot take her case any higher in the court system. b. can insist that the United States Supreme Court hear her case. c. can plead her case before an appellate court. d. can plead her case before a small claims court.

Ballpark Sportsfield, Inc., files a suit against Concessions & Tailgate Services. The document that informs Concessions & Tailgate that it must file an answer within a specified time period is a. the answer. b. the complaint. c. the writ of certiorari. d. the summons.

Gilbert wants to initiate a suit against Healthways Insurance Company by filing a complaint. The complaint should include a. an explanation of the proof to be offered at trial. b. a statement refuting any defense that the defendant might assert. c. a motion for judgment on the pleadings. d. a statement alleging the facts showing the court has jurisdiction.

Sofia files a suit against Turista Airlines, Inc. Turista responds that it appears from the pleadings that the parties do not dispute the facts and the only question is how the law applies to those facts. Turista supports this response with witnesses' sworn statements. This is a. a counterclaim. b. a motion for judgment on the pleadings. c. a motion for summary judgment. d. a motion to dismiss.

Destiny and Enzo engage in a business transaction. When a dispute arises, Destiny initiates a lawsuit against Enzo by filing a complaint. If Enzo files a motion to dismiss, he is asserting that a. Destiny did not state a claim for which relief can be granted. b. Destiny's statement of the facts is not true. c. Destiny's statement of the law is not true. d. Enzo suffered greater harm than Destiny.

Avery files a suit against Beth, alleging that she failed to pay him for two months' labor at her Choice Cheese Factory. Beth denies the charge and claims that Avery breached their contract to produce a certain quantity of cheeses and owes Beth damages for the breach. Beth's claim is a. a contra charge. b. a counterclaim. c. a counterpoint. d. a cross-complaint.

Ronnie files a suit in a state court against Sheri. The case proceeds to trial, after which the court renders a verdict. If either party appeals, the clerk of the trial court will send to the clerk of the appellate court within a prescribed pe¬riod of time a. a brief including the arguments of both parties. b. a copy of the record on appeal. c. an explanation for the verdict. d. a statement of the grounds for reversal.

First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics' representative being present. If this meeting substantially prejudices General Hydraulics' rights, a court will most likely a. compel arbitration. b. review the merits of the dispute. c. review the sufficiency of the evidence. d. set aside any award.

Liz and Moss disagree over the amount due under their con¬tract. To avoid involving any third party in the resolution of their dispute, Liz and Moss might prefer to use the alternative dispute resolution method of a. arbitration. b. litigation. c. mediation. d. negotiation.

If Cornel and Deanna resolve their dispute by having a neutral third party render a binding decision, they will have used the method of a. arbitration. b. conciliation. c. intervention. d. mediation.

Service Employees International Union and Timberline Products, Inc., have their dispute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to a. none of the choices. b. review the merits of the dispute. c. review the sufficiency of the evidence. d. set aside the award.

To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize eResolve, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts a. not at all. b. until the ODR service has issued a decision. c. with respect to any dispute arising between the parties. d. with respect to this dispute only.

Calltime Phones & Minutes, Inc., makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Delores accepts the offer. A valid contract requires a. a price and a subject. b. a duration and termination provision. c. an offer and an acceptance. d. specific quality standards.

Oscar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce¬able contract. Defenses to the enforcement of a contract include a. a desire not to perform. b. insufficient capital. c. preliminary indications of unsatisfactory results. d. the lack of a party's voluntary consent

Paige offers to pay Quik Delivery (QD) $50 if it picks up and delivers to her a package of business documents from Rico within 30 minutes. QD can accept the offer only by meeting the deadline. If QD performs as directed, these parties will have a. a bilateral contract. b. a trilateral contract. c. a unilateral contract. d. no contract.

Clay offers to pay Dot $50 for a golf lesson for Erin. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have a. a bilateral contract. b. a trilateral contract. c. a unilateral contract. d. no contract.

Lou asks Mark, a cobbler and shoe salesperson, to repair a pair of work boots. There is no discussion of a price, and Lou and Mark do not sign any documents. After the repair, Mark hands Lou a bill. With respect to Lou's obligation to pay the bill, this is a. an express contract. b. an implied contract. c. a quasi contract. d. no contract.

When a rainstorm erupts outside Rita's Souvenir & Gift Shop, Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by a. the conduct of the parties. b. the words of the parties. c. the unforeseeable storm that gave rise to the deal. d. the unexpressed subjective intent of the parties.

Mallory promises to buy illegal digital copies of movies from Nick, who promises to deliver on October 31. These promises are most likely a. enforceable. b. valid. c. void. d. voidable.

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided a. both parties are released from it. b. both parties must fully perform their obligations under it. c. a wholly different contract is agreed to. d. a wholly different contract is imposed "as if" the parties had agreed.

Idina admires Jude's collection of guitars. Jude says, "I plan to sell the collection when I get tired of it." Jude's statement is a. an offer. b. not an offer because it has not been communicated to Idina. c. not an offer because Jude expressed only an intent to enter into a future contract. d. an acceptance.

Younger asks Zoey, "Do you want to buy one of my fishing rods?" This is a. a valid offer. b. not a valid offer because the terms are not definite. c. not a valid offer because Younger did not state an intent. d. not a valid offer because Zoey did not respond.

Liz offers to sell Jock her iPad for $500 without any accessories. Under the mirror image rule, Jock's response will be considered an acceptance if the terms of the acceptance a. exactly mirror those of the offer. b. change the items offered, but do not change the price. c. change the price, but do not change the items offered. d. change both the price and the items offered.

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when a. received. b. sent. c. followed up by a confirmation letter sent by regular mail. d. composed on a Relay computer.

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms a. reasonably clear. b. ambiguous. c. unreadable. d. non-negotiable.

Richie, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is a. a contract that does not include the terms. b. a contract that includes the terms. c. not a contract but the terms are enforceable. d. unenforceable.

Valley Paragliders Association files a suit against Wing Designers, Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if a. there is a large disparity in the amount of consideration exchanged. b. the consideration involves the performance of services. c. something of value passed between the parties. d. the consideration is worth less than $100.

Aaron questions whether there is consideration for his contract with Banquet Hall to exchange his musical performance of country tunes at select social events for Banquet's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be a. objectively worthy. b. precisely adequate. c. legally sufficient. d. practically sound.

Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is a. an enforceable contract. b. an illusory promise. c. an option-to-cancel clause. d. an output contract.

Maya's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Maya $25,000 if she agrees to release him from further liability. Maya agrees. If her damages ultimately exceed $25,000, she can a. recover the balance for lack of consideration. b. recover the balance because the consideration was past. c. recover the balance due to unforeseen events. d. not recover the balance.

Twyla's dock is damaged in an accident caused by Ulric's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulric fails to pay, Twyla can bring an action for breach of contract. This is a. a covenant not to sue. b. an illusory promise. c. an unforeseen difficulty. d. a release.

Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is a. liable to Niki under the concept of rescission and new contract. b. liable to Niki under the doctrine of promissory estoppel. c. liable to Niki under the preexisting duty rule. d. not liable to Niki.

Rosalind, a seventeen-year-old, signs a contract to sell her car to Street Fleet Used Cars. The next day, Rosalind tells Street Fleet that she's decided not to sell the car. Rosalind is liable to Street Fleet for a. the cost of a car of comparable value. b. the value of her performance under the contract. c. the amount of its profit on the deal. d. nothing.

Fletcher signs a contract to buy a new electric guitar and amplifier just before reaching the age of majority. After reaching the age of majority, Fletcher does not take possession or make payments. With respect to the contract, most courts would hold that this is a. disaffirmance. b. emancipation. c. ratification. d. rescission.

Vijay enters into a contract to sell his laptop to Winnie. Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority. Winnie has a. expressly ratified the contract. b. impliedly ratified the contract. c. disaffirmed the contract. d. none of the choices.

Neil, a minor, attempts to return to its former owner, a set of skis that he recently bought, used, and wrecked, in a state in which a duty of restitution is imposed. Neil a. can return the skis "as is" and avoid further liability. b. is not required to return the skis due to his or her minority. c. must return the skis and pay for the damage. d. cannot return the skis unless they can be fully restored.

Felicity, a minor, obtains fruits and other foodstuff on credit from Growers' Market. Later, Felicity disaffirms the purchase. Felicity owes Growers' Market a. the reasonable value of the goods. b. the retail value of the goods. c. the wholesale value of the goods. d. nothing.

On Victor's eighteenth birthday, he decides that he no longer wants to keep a fishing boat he bought from Water Craft, Inc., when he was seventeen. His right to disaffirm the deal will depend on a. why Victor no longer wants to keep the boat. b. why Victor entered into the contract to buy the boat. c. whether Victor acts within a reasonable period of time. d. whether Water Craft has the right to disaffirm.

Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is a. voidable if Fay has a lucid interval at the time of contracting. b. voidable if Fay lacks the capacity to comprehend the consequences. c. voidable if the other party does not realize that Fay is incompetent. d. unavoidable.

Shannon signs a contract with Tevin, an unlicensed contractor, to build a deck and gazebo at the rear of her house. This contract is enforceable by a. Shannon. b. any third party who is not aware that Tevin is not licensed. c. Tevin. d. no one.

Sofia signs a covenant not to compete with her employer, Topmost Sales Corporation. A court decides that the covenant is overly restrictive. The court will likely a. enforce it as written so as not to undercut the freedom of contract. b. enforce it but evaluate its effects over time. c. reform its terms to prevent any undue burden. d. refuse to enforce it unless Topmost pays additional consideration.

Metro City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault. Coco's Chocolate Creations signs a lease with the mall that contains the clause. This is a. a covenant not to compete. b. an adhesion contract. c. an exculpatory clause. d. an illusory promise.

Through fraudulent means, Finlay induces Ethel to sign a contract to invest with him the profits from her business. When Ethel learns the truth, she may a. only enforce the contract. b. only recover what she invested with Finlay. c. enforce the contract or recover what she invested with Finlay. d. do nothing.

Phoebe enters into a contract with Everest for a guided tour of Whitewater Canyon. Everest represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Phoebe is most likely a victim of a. undue influence. b. fraud. c. mistake. d. nothing.

Creighton applies to BigData Corporation for a position as a software engineer. Creighton's resume lists training in computers or programming and background as an engineer when in fact he has neither. After Creighton is hired, BigData learns the truth. BigData can a. not rescind the contract. b. rescind the contract on the basis of fraud. c. rescind the contract on the basis of mistake. d. rescind the contract on the basis of undue influence

Dumont threatens physical harm to force Eddie to sell his business, Citywide Vending, Inc., to Dumont for a below-market price. This is a. duress. b. fraud. c. none of the choices. d. undue influence.

Grant and Hester enter into a contract for a sale of Hester's Pastoral Valley Orchard. This contract a. is prohibited. b. is enforceable whether or not it is in writing. c. must be in writing to be enforceable. d. must be oral and in writing to be enforceable.

Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by a. Air Flo. b. Banyan Grove. c. any third party, such as a HVAC supplies provider. d. none of the choices.

Edward and First Star Company enter into an oral contract under which Edward agrees to provide delivery service for First Star for nine months. This contract is enforceable by a. none of the choices. b. either Edward or First Star. c. any interested third party, such as a First Star customer. d. First Star only.

Sharon agrees to assume a debt owed by Tom's Guitars Inc. to United Funds Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of a. any third party, such as a Tom's customer. b. Sharon. c. Tom's. d. the bank.

Hal's True Hardware Stores and Ideal Tools, Inc., sign a written contract for a sale of goods. To be enforceable, this written contract must include a. a correct title, such as "Purchase Order" or "Sales Invoice." b. a date, such as "October 2014" or "10/2014." c. a quantity term, such as "50 hammers" or "100 boxes of assorted nails." d. the parties' contact information.

Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include a. a correct title, such as "Land Transfer" or "Real Estate Agreement." b. a declaration of the contract's purpose. c. a statement of the source of financing. d. a description of the land.

Orchid and Peony enter into a contract for the sale of Orchid's textbook at the end of the fall semester for which Peony agrees to pay Orchid $75. Peony wants to transfer her right to payment for the book to Queenie. A transfer of this right is a. a delegation. b. an assignment. c. prohibited. d. a third-party beneficiary contract.

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits a. any assignment. b. no assignment. c. only an assignment of contract rights to personal services. d. only an assignment that would change the obligor's risk

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is a. a delegation. b. an assignment. c. a third party beneficiary contract. d. prohibited.

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is a. absolved of any liability under the contract. b. liable to Joy for breach of contract. c. liable to Joy if Leza does not perform. d. liable to Leza for inducing a prohibited contract.

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty a. under any circumstances. b. without continuing to be potentially liable. c. without Miles's consent. d. without paying Miles at least one monthly fee.

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of a. only duties that are personal in nature. b. only duties that are impersonal in nature. c. no duties under the contract. d. all duties under the contract.

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is a. a delegation. b. an assignment. c. a third party incidental beneficiary contract. d. a third party intended beneficiary contract.

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest a. automatically. b. if she demonstrates her consent to the promise at Hilda's request. c. if Indemnity attempts to modify the terms of the contract. d. on the occurrence of the event for which the insurance was procured.

Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be a. absolute. b. complete. c. material. d. substantial.

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. a settlement agreement.

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is a. breached. b. discharged. c. not affected. d. suspended.

Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches the contract, Scrub n' Dry can a. do nothing but make a deal with a different service provider. b. do nothing but temporarily suspend operations and wait. c. file a criminal complaint against Ready Repair. d. sue Ready Repair for damages.

Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2,500, but RSW fails to deliver. Oxley buys the appliance else-where for $3,500. Oxley's measure of damages is a. $1,000. b. $1,000 plus incidental damages. c. incidental damages only. d. $0.

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot a. nothing. b. compensatory damages. c. consequential damages. d. nominal damages.

Copper Conduit, Inc., and Dependable Electric Company sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti¬mate but approximately $1,000." This is a. a liquidated damages clause. b. a mitigation-of-damages clause. c. a waiver-of-breach clause. d. a penalty clause.

Rig Heli-Pads, Inc., enters into a contract to employ Sinead as an on-site project manager for two years. If Rig breaches the contract, Sinead has a duty to a. do nothing. b. reduce the damages that Sinead might otherwise suffer. c. rescind the contract with Rig. d. punish Rig and set an example to deter others from similar acts.

Excavate n' Fill, Inc., enters into a contract with Fred to fill and landscape an abandoned quarry on Fred's land. Fred advances Excavate n' Fill 10 percent of its cost. The parties rescind the contract. Excavate n' Fill's refund of the payment is a. a penalty. b. liquidated damages. c. restitution. d. reformation.

Rikki agrees to sell her Sunrise Breakfast Café to Tia. As part of the deal, Rikki signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely a. damages. b. reformation. c. rescission. d. specific performance.

A contract for a sale of land from Bayside Properties, Inc., to City Development Corporation contains an erroneous legal description. The most appropriate remedy for these parties is a. a quasi contract. b. reformation. c. rescission. d. specific performance.

Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer but Rough Hewn does not pay the price. The lack of a written contract could bar enforcement of this deal. If so, Joe could most likely recover on a theory of a. rescission. b. restitution. c. liquidated damages. d. quasi contract.