Spring 2018 Business Law Fundamentals O'Hara 2018 D

Size: px

Start display at page:

Download "Spring 2018 Business Law Fundamentals O'Hara 2018 D"

Julianna Allison
5 years ago
Views:

1 Page 1 of 7 as your signature PRINT your name EXAM #2 Business Law Fundamentals LAWS 3930 sections -001, Chapters 1-4, 24, 6, 7, 9-19 INSTRUCTIONS: 1. Affix your printed name as your signature in the space provided above. 2. This is a closed book exam. It is an objective test of your subjective knowledge. group work is academic dishonesty earns the student a course letter grade of "F". You may make up your white copy of the exam as much as you wish. RECALL: To calculate your grade with the answer key you need to mark your answers on your white copy of your exam. 3. The time for this exam is limited to the duration of a twice-a-week day class meeting time (i.e., 75 minutes [e.g., day exam starts at 10:30am ends at 11:45am]). Time is forecasted as not being a constraint for any student. 4. Both print your last name bubble in your last name on your blue computer graded bubble sheet in the appropriated location. 5. Both print your NU ID number bubble in your NU ID number on your blue computer graded bubble sheet in the appropriate location. 6. This is a True-False exam. Use A for True. 7. Read carefully. Think. Read closely. Think. Recall, this is an objective test of your subjective knowledge. 8. Recall the material difference between i.e. (that is) versus e.g. (for example). 9. This is not a trivia test. Accordingly, never is a question false because of a number in the question. For example, if a question describes Amd. X, then the number is accurate (e.g., the question is not about Amd. IX). The question might be false for a reason other than the number. Similarly, the Latin is not the source of falsity. Both numbers Latin are included solely to aid the student's recall. 10. Students taking their Exam #2 on Tuesday at 10:30am shall turn in both [1] white copy of exam; [2] completed blue answer sheet. Students taking their Exam #2 on Tuesday at 6:00pm shall turn in both [1] white copy of exam; [2] completed blue answer sheet. Students taking their Exam #2 in the Wednesday 6:00pm class shall exchange their blue answer sheet for an answer key retain their white copy of the exam. Tuesday morning Tuesday evening students may, between 7:15 & 7:30pm Wednesday, retrieve their white copy exam an answer key from Professor O'Hara in MH 120 again between 8:40 & 8:50pm; Thursday morning from O'Hara's suite secretary in MH This Exam #2's default worth is 300 points of a course total of 1,000 points. There are 52 questions graded as if there only are 50. Accordingly, each correct answer on Exam #2 is worth 6.0 course points. 12. WARNING: A student earns NEGATIVE TEN COURSE POINTS for each failure to comply with Instruction #1, Instruction #4, /or Instruction #5. WARNING: Exam score of zero if fail to answer correctly question #52. See NOTE E on page 2 of 6.

2 Page 2 of 7 NOTES: A. Recall the material difference between i.e. (that is) versus e.g. (for example). B. Use bubble A for TRUE use bubble B for FALSE. C. For clarity in distinguishing a "principal" from a principal as well as distinguishing an "agent" from an agent, quote marks will be used for the generic words "principal" "agent" no quote marks will be used for the specific words principal agent. That is, "principal" "agent" refer to all three relationships (i.e., principal agent; principal independent contractor; employer employee). Similarly, quote marks are used to distinguish a transaction that fails to achieve lawful contract status thus is a mere "contract" a force that does not achieve unlawful duress status thus is mere "duress". D. The quote marks described in NOTE C. might be the very essence of the question's truth or falsity. For example, it is true to say "An employee is one of the three relationships in "agent"."; it is false to say "An employee is an agent.". E. Different students have different versions of this Exam #2. For a student's blue bubble sheet to be correctly scored requires that student to record that student's version of this Exam #2. AT THE BOTTOM RIGHT OF THIS PAGE, WHAT LETTER FOLLOWS THE YEAR 2018? RECORD THAT LETTER AS YOUR ANSWER TO graded QUESTION 52. Failure to correctly record your version shall earn you a score of zero on Exam #2. F. All appeals of this exam s questions must be: [F1] typed; [F2] signed by the student in three ways, typed name, hwritten signature, typed university identification number; [F3] immediately following the [F2] signature, list in sequence, solely by number, each of the questions being appealed; [F4] since this exam's design (i.e., 52 questions graded as 50) presumes two professor errors, harmless error exists with two flawed question; thus, an appeal must appeal three or more questions must prove at least three questions to be objectively ambiguous for there to be one non-harmless error; [F5] after the [F3] list, argue each question, one at a time; [F6] at the beginning of each question s [F5] appeal, identify at least two reasonable meanings that the question could have had; [F7] in each [F5] appeal, argue why one or more of the [F6] identified reasonable meanings is as appropriate or is more appropriate than the meaning used for the answer key answer; [F8] the signed appeal must be personally hed to the instructor (or to the instructor's suite secretary in MH 228) no later than the first 15 minutes of your class section's first class meeting following Exam #2 time: time is of the essence.

3 Page 3 of 7 QUESTIONS: (Recall page 2's Notes C D.) 1. T F All citizens all consumers always are natural persons (i.e., human). 2. T F The Ninth Amendment limits the People to expressly granted constitutional rights. 3. T F In Amendment XI the USA States individually collectively surrendered their sovereign immunity with respect to law suits in the federal courts. 4. T F A defendant has committed a tort if the defendant owed the plaintiff a duty of care breached that duty, thereby proximately causing the plaintiff's legally recognized injury thus owing the plaintiff damages. 5. T F Different areas of law require different amounts of capacity: contract > crime > tort > wills. 6. T F In all contracts all tort damages are mere economic loss; but, punitive damages always are awarded for a bad faith breach of any contract. 7. T F There are four transactions that create legally enforceable promises without being contracts: bailment, warranty, license, covenants not to compete. 8. T F All of the elements of a contract are agreement, capacity, consideration, legal subject matter, form, reality of assent. 9. T F Express is in words. 10. T F Everything that is express is implied. 11. T F A quasi "contract" only is available if the plaintiff does not have an adequate remedy at law. 12. T F Promissory estopple requires the plaintiff's justifiable reliance to have been reasonably foreseeable to the defendant. 13. T F A unilateral contract is executed on one side upon acceptance. 14. T F Silence can not be acceptance.

4 Page 4 of T F A contract's agreement requires an offeror's offer (i.e., sufficiently definite that the court can enforce the parties' objective agreement) the offeree's acceptance (i.e., an unequivocal affirmation of the offer). 16. T F The Mailbox Rule permits the offeror to revoke an acceptance by the offeree as long as the revocation satisfies the Mirror Image Rule. 17. T F Four terms of a contract are presumed to be material: parties, time, consideration, legal subject matter. 18. T F Consideration for a contract requires a bargained for exchange of value. 19. T F Because the presumption of the common law of contracts is that the parties do not desire a contract, modification of a contract (e.g. novation) requires a whole new contract. 20. T F An accord satisfaction requires good will as consideration. 21. T F An illusory promise does not create a contract. Both an output contract a requirements contract avoids merely being an illusory promise since both use an objective measure of quantity. 22. T F A valid contract is an example of freedom of contract. A void "contract" is an example of freedom from contract. 23. T F All ambiguities in all adhesion contracts always are interpreted against the drafting party. Thus, the court will reform rather than void an adhesion contract. 24. T F An exculpatory clause is a liquidated damages clause. 25. T F Legally, a UCC consumer's good faith is identical to a merchant's good faith because both require both honesty in fact commercial reasonableness. 26. T F Capacity is the ability to grasp the natural consequences of one's actions. 27. T F A natural person who reaches the age of majority is presumed to have capacity a minor is presumed to not have capacity. Both of those presumptions can be rebutted.

5 Page 5 of T F A minor's voidable contract either can be ratified by the minor upon reaching the age of majority or can be voided by the minor. When voided, the minor must provide the adult restitution (e.g., in Nebraska, the value at the time of return). 29. T F The specific controls the general. Both gambling insurance allocate risk for a price. The default treatment of both gambling insurance is as felonies. But, when done consistent with regulation both gambling insurance are lawful. 30. T F All covenants not to compete are void in Nebraska in California. 31. T F Both a mutual mistake a unilateral mistake require a material mistake of fact. The magnitude of material for a mutual mistake is much smaller than the magnitude of material for unilateral mistake. 32. T F Duress requires an objective force sufficient to overcome the knowing voluntary decisions of the Reasonable Person. 33. T F Undue influence is far harder to prove than is emotional duress. 34. T F The Parole Evidence Rule requires all contracts governed by the Statute of Frauds to be signed by both parties. 35. T F Statute of Frauds requires five types of contracts (e.g., marriage contracts) to have their material terms in writing signed by both the offeror the offeree. 36. T F The Equal Dignity Rule requires an "agent's" authority must satisfy the Statute of Frauds if an "agent's" action must satisfy the Statute of Frauds. Including, the "principal" must sign (i.e., any mark with the current intent to authenticate the record) the "agent's" authority. 37. T F An incorporation by reference clause is the same thing as a merger clause. They are different names for the same legal process. 38. T F An assignment is a transaction that transfers a right. A delegation is a transaction that transfers a duty.

6 Page 6 of T F Both the old common law the new common law of assignments delegations prohibit any transaction that materially alters the reasonable expectations of the parties. 40. T F Because an assignment of all rights separates the rights from the duties all assignment of all rights are void. 41. T F A vested third party (e.g., incidental donee) to a contract has privity, thus is within the zone of protected interests; if that vested incidental donee also suffers an injury in fact, then that vested third party has sting to sue on the contract. 42. T F Ready, willing, able routinely is an implied condition concurrent. Conditions precedent typically turn on while conditions subsequent typically turn off a duty. Making a condition express makes every breach of that express condition a material breach of that contract. 43. T F Performance of a contract can be complete, substantial performance, or a material breach. Both complete performance substantial performance discharge (i.e. render executed) that part of the contract; both substantial performance material breach obligate that performing party to pay damages. 44. T F Compensatory contract damages are to make the non-breaching party whole (i.e., restore loss of the benefit of the bargain). Compensatory contract damages include incidental damages (i.e., cost of going into the market to obtain substitute performance). 45. T F Contract punitive damages are available to the non-breaching party to an employment contract or to an insurance contract when the breaching party's performance is a bad faith breach. 46. T F Contract consequential damages are recoverable damages if reasonably foreseeable to the breaching party.

7 Page 7 of T F Anticipatory repudiation creates in the non-breaching party an election of remedies: either treat it as an immediate breach take up the duty to mitigate damages or merely wait until the contracted time for performance. 48. T F Substantive due process grants freedom from contract due to commercial impossibility (e.g., 10x); whereas procedural due process grants freedom from contract due to commercial impracticability (e.g., 3x). 49. T F A Force Majeure can discharge a contractual duty either by a clause in the contract or by operation of law. 50. T F The duty to mitigate damages is a duty of both the breaching party the non-breaching party. 51. T F Waiver of a contract breach can be implied (e.g. silence for the duration of the statute of limitations). 52. D Answer question #52 E (a.k.a., make up exam) or earn a zero on Exam #2.

Page 1 of 7. Fall 2015 Business Law Fundamentals O'Hara 2015 E

Page 1 of 7. Fall 2015 Business Law Fundamentals O'Hara 2015 E Page 1 of 7 print name as your signature EXAM #2 Business Law Fundamentals LAWS 3930 sections -001-003 Chapters 1-4, 24, 6, 7, 9-18 INSTRUCTIONS: 1. Affix your printed name as your signature in the space