Business Law > EXAM > LEG 100 Practice Milestone 2 Questions And Answers( Complete solution A+ Guide) (All)

LEG 100 Practice Milestone 2 Questions And Answers( Complete solution A+ Guide)

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LEG 100 Practice Milestone 2 1 Which of the following is an example of an implied contract? Hannah orders a pizza for delivery, which will cost $20. Alec agrees to buy Fiona's computer for... $400. Cheryl cleans her neighbor's house after they negotiate a price of $100. Jonah hires a plumber to complete repairs to his bathroom, for which he promises to pay $200. CONCEPT Different Types of Contracts 2 Cynthia orders 100 blue shirts for her screenprinting business from Juan, a shirt supplier. When Cynthia receives the shirts, she discovers that half of them are blue, but the other half are pink. She accepts the delivery, and says nothing to Juan about the issue. What remedy does Cynthia have in this scenario? Cynthia has no recourse, because a buyer surrenders all rights to remedy if he or she accepts non-conforming goods. Cynthia can recover what she paid for the pink shirts, as well as any compensatory damages that stem from the breach. Cynthia has no remedy unless she notifies Juan of the non-conforming goods within a reasonable time period. Cynthia may recover what she paid for the all of the shirts, since half of the order was non-conforming. CONCEPT Buyer's Remedies Under the Uniform Commercial Code 3 Select the sales contract that violates the provisions of the UCC for contract remedies. A sales contract that extends the statue of limitations for contract breaches to three years A sales contract that includes an unreasonable liquidated damages clause A sales contract that excludes all remedies for contract breaches A sales contract that excludes commercially-related consequential damages CONCEPT Remedies in General Under the Uniform Commercial Code 4 When is the remedy of specific performance justified? When the injured party requests it When a monetary award of compensatory damages would not be adequate to pay the damages suffered When the party in breach of the contract has a demonstrated history of breaking contracts When the party in breach of the contract is unable to pay compensatory monetary damages CONCEPT Equitable Remedies: Specific Performance and Injunction 5 Which of the following would be a legal justification for a seller to "avoid" a contract for a new car purchase? The car's price is lower at another dealership. The car's fuel efficiency is less than represented. The buyer is 17 years old. The buyer's down payment check bounced. CONCEPT Limitations on Contract Remedies 6 Select the statement that is true of current products liability law. It shifts some of the costs of industrial expansion onto manufacturers, rather than exclusively burdening consumers. It is less important now that consumer products are more sophisticated. It has changed little in the last several hundred years. It forces buyers to take primary responsibility for the products they purchase. CONCEPT Products Liability 7 A welder borrows a new face shield from a coworker when soldering metal in a new building. When sparks hit the shield, they penetrate the plastic and burn the welder's face. The welder sues the manufacturer of the shield. How strong is the negligence case against the product manufacturer? Weak, because the plaintiff knowingly assumed the risk of burns when he became a welder. Weak, because there is no privity of contract between the welder and the manufacturer. Strong, because the manufacturer did not place a warning on the face shield. Strong, because the product is clearly not safe for its intended use. CONCEPT Negligent Products Liability 8 A man goes skydiving. He jumps out of the plane, and as he approaches the ground, a strong gust of wind comes out of nowhere and causes him to land roughly. He suffers a broken ankle and sues the skydiving company for negligence. Assuming it is true, which of the following would represent a strong defense against the negligence claim? The skydiving company had the man sign a form that released them from all responsibility for injury under any circumstances. The man assumed the risks associated with a dangerous and unpredictable activity like skydiving. There is no circumstance that would defend against this negligence claim. The man has been very vocal in the past about his dislike of the owner of the skydiving company. CONCEPT Negligent Torts: Damages and Defenses 9 Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt supplier. Juan ships the shirts right away, but three months go by and Cynthia still has not paid for them. What remedy does Juan have in this scenario? Juan has no recourse in this scenario except to require that Cynthia pay in cash ahead of delivery for any future orders. Juan may recover the shirts that he shipped to Cynthia if they are still in her possession, but he must pay for shipping costs. Juan may recover the shirts that he shipped to Cynthia, including those that she screenprinted and resold to her customers. Juan may declare the contract cancelled and sue Cynthia for the unperformed balance that is due to him. CONCEPT Seller's Remedies Under the Uniform Commercial Code 10 Which of the following is a primary source of law for real estate contracts? Statutory law Common law CISG UCC CONCEPT Sources of Contract Law 11 A glass soda bottle manufacturer is sued for strict product liability after Roger is injured by a soda bottle that exploded when he attempted to open it by banging it across a steel radiator. The manufacturer defends against strict product liability by alleging that Roger intentionally misused the glass bottle by trying to open the bottle as he did instead of using a bottle opener. How does Roger's claim stand up to the manufacturer's defense? Roger is likely to win, because the soda bottle did not come with a warning that it should only be opened with an appropriate bottle opener. Roger is likely to lose, because he suffered no real economic loss when the soda bottle exploded. Roger is likely to lose, because banging a glass bottle against a steel radiator to open it could reasonably be considered a misuse of the product. Roger is likely to win, because misuse of a product is not a recognized defense to strict products liability claims. CONCEPT Problems with Strict Products Liability 12 When Tom's furniture delivery is delayed three weeks beyond the date stipulated in his contract, he has to temporarily rent furniture to furnish his apartment. The delivery company is required to pay for his rented furniture. This is an example of which type of monetary award? Punitive damages Consequential damages Restitution Incidental damages CONCEPT Monetary Awards 13 Select the factor that would always render a contract unenforceable. If a party to the contract changes his or her mind If the terms of the contract are not in writing If a party to the contract lacks the ability to financially perform their obligations under the contract If a party to the contract lacks the mental capacity to understand the contract CONCEPT Unenforceable Contracts 14 Two men pass one one another on a street. One man has a large dog, who barks loudly at the other man when they pass. Is the dog owner liable for negligence if the other man sues? Yes, because it was foreseeable that a dog might bark at someone passing by. No, because causation would be difficult to prove. No, because there was no legally recognizable injury. Yes, because there was a lack of intent to cause harm. CONCEPT Negligent Torts: Liability 15 Two men at a baseball game get into an argument over the umpire's call, and one man throws a punch that hits the other. Which type of intentional tort does this represent? Assault only Battery only This action does not rise to the level of an intentional tort. Assault and battery CONCEPT Intentional Torts 16 Which of the following best describes the essential elements of a valid and enforceable contract? Offer and acceptance, consideration, legality, and capacity Consent, execution, performance, and structure Offer and acceptance, consideration, performance, and intent Performance, legality, consent, and written form CONCEPT Contract Formation 17 Which contract generally must be in writing under the Statute of Frauds? Rory plans to purchase a used car for $12,000. Walter orders a meal to go from his favorite pizza restaurant. Masha promises to pay $1,000 toward a vacation rental that he is renting with his sister. Darcy agrees to write a college application essay for a friend, who will pass it off as his own. CONCEPT Statute of Frauds 18 In which scenario would strict liability most likely apply? A woman ingests a pesticide that was packaged in a bottle resembling a juice container. A woman orders coffee from a restaurant and burns her mouth when she takes her first sip. A man tosses a cigarette out of his car window, and it winds up starting a fire. A man stands on a chair to reach a book. The chair tips over and he falls. CONCEPT Strict Liability 19 Jane sues the manufacturer of a treadmill after she was hurt when using it. While running, Jane stumbled and the treadmill carried her violently backward, causing significant personal injuries. Jane argues that the treadmill had a defective design by not incorporating a “kill switch” that would instantaneously stop the treadmill from moving if a user stumbled. How strong of a case does Jane have for strict product liability based on the defective design of the treadmill? Strong, because the treadmill was unreasonably dangerous under normal use without a “kill switch,” a technology that is available and not overly expensive to incorporate. Weak, because none of the treadmills produced by this manufacturer incorporate "kill switches." Weak, because in order for Jane to get injured in such a manner, she must have been using the treadmill in a way for which it was not designed. Strong, because the dangers of running on a treadmill are not commonly known. CONCEPT Strict Products Liability 20 Contracts and contract law __________ economic transactions. organize discourage complicate limit CONCEPT General Perspectives on Contracts 21 A tortious act is different from a criminal act in that __________. a criminal act is a public wrong against the people, and a tortious act is a private wrong against an individual a criminal act is purely immoral, while a tortious act is not necessarily immoral a criminal act is always potentially punishable by incarceration, and a tortious act is punishable only by monetary damages a criminal act always involves violence, and a tortious act is always nonviolent CONCEPT Introduction to Tort Law [Show More]

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