Liberty university busi 301 quiz 2 complete solutions
1. Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted’s promise is enforceable as long as he goes to the bank, declares his promise to guarantee Amanda’s loan in front of witnesses and shakes hands on the deal giving his word.
2. If the offer specifies no time limit in which to accept:
3. Josh is negotiating the sale of his car with Jonathan. Jonathan asks if the car has ever been in an accident and Josh replies, “No, it has never been in an accident.” In fact, the car was nearly totaled the year before when Sheila, Josh’s girlfriend, driving Josh’s car, hit a wet spot and skidded into a pole. Shehad it repaired without telling him about the accident. Josh has committed:
4. Which of the following statements may be grounds for a misrepresentation, innocent or fraudulent, to occur?
5. In Leonard v. Pepsico, the court ruled against Leonard and refused to enforce the purchase of a Harrier Jet because:
6. When an assignment is made, the assignee has the right to reform the contract and change the obligor’s rights and duties as they wish.
7. Generally, courts do enforce a strict compliance standard for contact conditions.
8. Which of the following is classified as an equitable remedy?
9. Alan has accepted a new job. Which of the following is not a contract condition related to that job
10. Fred’s Flooring (FF) contracts with Harry homeowner to install wood flooring throughout Harry’s home. Harry was to purchase the flooring and the contract was solely for installation. Payment was to be 20% at the time that the work commenced and 80% once the flooring was installed. Harry purchased the flooring materials and paid the 20%, so FF began work. When FF was half way completed, Harry realized that he didn’t have the money to pay FF upon completion so he bolted the doors and refused access. If FF wants to rescind the contract and be paid for work completed, FF would sue for:
11. UCC gap fillers will not be used and are not applicable to contracts when the contract clearly specifies a contract term or condition.
12. Article 2 rules for acceptance of offers are more rigid than common law rules.
13. Betsy is moving to New Mexico and offers to sell her television to April. April isn’t sure if she can afford it and asks for a week to decide. If Betsy agrees to hold the offer open for a week and makes the promise in writing, Betsy has given April a firm offer.
14. The UCC will permit an incomplete or slightly ambiguous contract to be enforced using each of the following criteria except: judicial input of any terms necessary to m
15. In the absence of a specific contract provision regarding the details of payment the UCC provides that:
16. Disparagement has to do with industries, companies and corporations and not individuals
17. Courts enforce fraudulent misrepresentation for intentional lies but will not enforce fraudulent misrepresentation for negligent ones.
18. Assume that Iowa has passed a law requiring that anyone riding or operating a motorcycle wear a helmet. Mary enters Iowa Harley Davidson and wants to take a test ride on. She doesn’t have a helmet with her and they don’t have one her size available, so the proprietor lets her go without one. If she crashes and is injured, the proprietor has committed negligence per se
19. Bill is a lab technician and in charge of safety inspections and injury prevention due to faulty equipment at a university chemistry lab and Bill’s job includes the repair of faulty equipment. One morning, as a result of his inspection, Bill discovers a gas burner with a broken valve and does a very poor job of repairing it, using techniques not considered proper or acceptable. When the morning class arrives, Halle uses the faulty burner and is burned when it catches fire. Bill’s negligence is based on:
20. Amanda is driving towards a busy intersection. As she goes through the intersection she looks down and reaches to adjust the radio in her car. She runs a red light and hits another car which then runs into a utility pole, knocking it down and causing a power loss in a 3-mile radius. It takes the utility company 48 hours to restore electricity to the area because of a strike by the utility union. Kimberly sues Amanda because all the food in her refrigerator and freezer spoiled due to the power outage. What will the result be?
21. The bankruptcy trustee is appointed to represent the creditors.
22. The order of payment for unsecured creditors in bankruptcy is specified in the state’s UCC statutes.
23. Nora loaned money to Susan and received a signed security agreement from Susan. What could Nora do to make sure she has priority as a creditor
24. What is not a requirement for the undue hardship standard?
25. What is not a major change to bankruptcy law in the Bankruptcy Abuse Prevention and Consumer Protection Act?
26. In order to establish undue influence, the following must be proven:
27. If a contract is deemed to be illegal it is considered:
28. Robert is about to graduate college and his parents tell him that because he is the first member of the family to graduate college, they want to buy him a new, but inexpensive car. They have the money to buy the car and Robert is excited to get his gift. Robert owns a used car and sells it the night before graduation because he doesn’t want to pay insurance on two automobiles. On graduation day, his parents tell him that they have decided to use the car money for a vacation and there will be no car.
29. That you must pass all your courses satisfactorily and pay all outstanding bills before you may receive your diploma is an example of a:
30. Ace Towel Company is shipping 500 towels to Red Hose, Inc. Ace is located in New York and Red Hose is located in Boston. If the contract is specified to be a shipment contract:
31. Your school’s bookstore has ordered 1000 sweat shirts with your school’s logo printed on the front. The goods are being manufactured and printed in another state and are to be delivered to the bookstore. The contract is silent as to when title and risk of loss passes. If the sweatshirts are totally destroyed en route:
32. Robin operates a demolition company. Even if she acts with the greatest of care and has committed no negligent acts, she may still be strictly liable for a tort if someone is injured due to flying debris resulting from a controlled blast she conducts.
33. Guarantors are secondarily liable on debts they guarantee.
34. There is no reorganization plan filed in a Chapter 7 bankruptcy.
35. In which of the following is it not usual to have a trustee named?
36. Damages agreed to when the contract is initially negotiated and written are called:
37. Which of the following is designed to prevent unjust enrichment?
38. If a contract between merchants does not contain a specific contract provision regarding the details of payment, the UCC provides that payment be made in full within 10 days of the time and place that delivery occurs
39. Output contracts must specify a certain amount of goods to be sold; however, requirements contracts will be valid under the UCC even if the specific quantity of goods to be purchased is not specified in the contract.
40. A plane flying from New York to Paris has crashed into the Atlantic Ocean with no survivors. The plane’s flight recorder is under two miles of water and cannot be recovered. The weather was clear, the pilots were rested and competent and the plane’s maintenance record was in compliance with all applicable standards. Because negligence cannot be proven, relatives of the deceased passengers cannot sue the airline
41. Robin operates a demolition company. Even if she acts with the greatest of care and has committed no negligent acts, she may still be strictly liable for a tort if someone is injured due to flying debris resulting from a controlled blast she conducts.
42. If a store owner witnesses an act of shoplifting, they may reasonably detain the alleged thief and be shielded from a charge of false imprisonment.
43. Ted is on trial for murder, during the trial, the prosecutor refers to Ted as a vicious killer. Even though there is enough evidence to justify the trial, Ted is acquitted by the jury. If Ted sues the prosecutor for defamation:
44. Which of the following is not considered a non-dischargeable debt?
45. Larry has had a few beers and is starting to get a bit drunk. He isn’t acting strangely and he’s conducting conversations without slurring words. Larry, should he enter into a contract in this state would be considered mentally incompetent and his contract would be void
46. Doll World has contracted with Eyes-R-Us to purchase 100,000 plastic eyes to use for a line of dolls that Doll World plans to have manufactured and for sale by December 1st. The contract is for delivery to be made on or before October 1st as it will take two months to attach the eyes and then pack and ship the finished dolls to stores for a December 1st sales date. On September 1st, the sole EyesR-Us manufacturing plant burns to the ground due to negligence and all their machinery and stock is destroyed. When Doll World calls Eyes-R-Us they are told that the plant will be rebuilt, new machinery will be obtained and they expect to complete the contract on time. No one in the industry believes the claims made by Eyes-R-Us can be fulfilled in a one month period.
47. Lucy entered Williamson’s Auto Mart to purchase a used car. Lucy found a used vehicle with a sales price of $11,000. After Ted answered all of Lucy’s questions, Ted and Lucy agreed to a sale and a contract was signed. As Lucy was leaving to go to the bank to get the money to pay for the car, Ted told Lucy that Oprah had formerly owned the car. Lucy was overjoyed because she worshipped Oprah. Lucy later learned that Oprah had never owned the car. If Lucy seeks to rescind the deal based on Ted’s statement, Lucy will:
48. Discharge occurs the moment that the debtor files the Chapter 7 bankruptcy petition.
49. You are a contractor and you have just installed a wood deck for a customer. The contract calls for a payment of $5,000 upon satisfactory completion. The customer is satisfied, but states that they cannot pay now but will pay when they get the money. You may sue for specific performance to collect the $5,000 owed.
50. Which of the following is designed to prevent unjust enrichment?
51. One of the professors at your school is very tough and demanding. Many students are doing poorly because they won’t do the work necessary to meet the professor’s high standards. If the class gets together and agrees to give the professor poor evaluations, the class may be guilty of disparagement directed toward this professor
52. Which of the following is not a defense to negligence or strict liability?
53. In a transaction involving unsecured credit, the lender may sell the collateral, put up by the borrower, to satisfy the debt obligation.
54. William’s Plumbing Co. has been losing money steadily and must file a bankruptcy. The company has a choice of filing for Chapter 7 liquidation or Chapter 13 consumer reorganization.
55. Should an adult find out that they have entered into a contract with a minor; the adult may disaffirm the contract if they do so before the minor reaches the legal age.
56. Sangria World sells a variety of wines but specializes in selling the finest brands of sangria. If they enter into an agreement with a winery in Spain to purchase all of the sangria that the winery can produce, this would be:
57. In Palsgraf v. Long Island Railroad Co., the court first articulated and established the concept of:
58. Restitution is an example of a remedy at law.
59. Under the UCC; that the seller must deliver goods in a manner that matches the contract terms in every respect is called the:
60. Generally, mutual mistakes will often lead to the court allowing an avoidance of a contract; however, a unilateral mistake is not usually grounds to cancel a contact.
61. Which of the following is not true regarding a firm offer?
62. The person who is left to operate a business during a Chapter 11 bankruptcy is called a:
63. Scienter must be proven to successfully bring a case of innocent misrepresentation.
64. Brad runs a summer business at the beach selling t-shirts with iron on designs and sayings. He orders 150 royal blue t-shirts in size large from Josh’s T-Shirt Emporium. When the shirts are delivered, Brad discovers that only 148 royal blue size large t-shirts were received. The contract is performed as this would constitute substantial performance and Brad need only pay for the 148 shirts received.
65. Mike enters into a contract with Kathy. Subsequently, Mike delegates his rights and duties to Tom. Mike is now called the:
66. Alana has run a business for over twenty years and has many long term employees who have been very loyal to her over that time. The business is having financial problems and Alana must file for bankruptcy. If she’d like to continue the business and retain most, if not all of her employee’s jobs, she would file a:
67. If a Professor decides to charge a $25.00 admission fee in order to take a regularly scheduled exam:
68. Making payment due when delivery is made is an example of a condition precedent
69. Fred is a mechanic who changes a tire for a customer. If Fred fails to tighten the lug nuts properly and the wheel falls off harming the customer, Fred is guilty of nonfeasance
70. The paper filed by the debtor that begins the bankruptcy proceeding is called a:
71. Aimee is a 20 year old college student. Her parents are worried about her being away from home so they tell her that if she goes both the Fall and Spring semesters without drinking alcohol, they will buy her a new car. Aimee does in fact go both semesters without drinking:
72. Which of the following is an example of negligence per se?
73. Bud and Lou have entered into a written contract in which Bud was to provide 144 tshirts to Lou. During the negotiations leading up to the contract, Lou specified that he wanted all 144 shirts to be royal blue. Bud delivered 144 navy blue t-shirts. When Lou complained, Bud pointed out that the written contract, prepared by Bud, only said blue and since navy is a shade of blue, he has fulfilled his contract and Lou can’t return them. If Lou sues, the court will find that blue, without qualification, is ambiguous so prior oral negotiations may be used to explain and clarify the written contract so Lou would win a lawsuit.
74. When a buyer enters into two simultaneous contracts with two different sellers in order to ensure that the goods they need will be available to them, this is a business tactic called covering.
75. Article 2 of the UCC does not apply to the sale of one’s home