Shared Flashcard Set

Details

Business Law Final
Law Business Final
151
Business
Undergraduate 3
04/22/2012

Additional Business Flashcards

 


 

Cards

Term
The offeror is the party with the power to decide whether to create a contract.
Definition
F
Term

An offer made as a joke, where a reasonable person would conclude that it was made

as a joke, cannot result in a contract

Definition
T
Term
3. The communication of an offer can be made by the offeror or the offeror's agent.
Definition
T
Term
4. Generally, advertisements, catalogs, price lists, etc. are not treated as offers.
Definition
T
Term
5. A counteroffer is treated as both a revocation and a new offer.
Definition
F
Term
6. Consideration can consist of giving up a legal right.
Definition
T
Term
7. A promise to act or to refrain from doing an act can serve as consideration.
Definition
T
Term

8. The mirror image rule permits the offeree's acceptance of a contract to vary from the

offer.

Definition
F
Term

9. A person who delegates his contractual duties is fully relieved of any further duty to

perform under that contract.

Definition
F
Term

10. When both parties to a contract are minors, either or both of them may avoid the

contract.

Definition
T
Term

11. A parent or parents who sign a contract on behalf of their minor child may disaffirm the

contract just as their child may.

Definition
F
Term

12. A party who makes a mistake about the value of the object of a contract is normally

permitted to avoid the contract.

Definition
F
Term
13. A plaintiff must prove that he suffered actual injury to recover damages for fraud.
Definition
T
Term

14. A party to a contract may delegate his rights arising from the contract to another

person.

Definition
F
Term

15. The nonbreaching party normally may not recover punitive damages in a breach of

contract claim.

Definition
T
Term

16. Expenses, such as those incurred to obtain performance from a source other than the

original contracting party, are called consequential damages.

Definition
F
Term
17. An express contract may be either written or oral.
Definition
T
Term
18. An incidental beneficiary can directly sue the maker of a contract in the case of breach.
Definition
F
Term
19. The mirror image rule requires that the acceptance exactly match the offer.
Definition
T
Term
20. Giving up a legal right to do something is enough to legally qualify as consideration.
Definition
T
Term
21. A quasi contract is another name for an oral contract.
Definition
F
Term

22. "I promise to pay you $100 if you will promise to fix my car next month." This is an offer

for a unilateral contract.

Definition
F
Term

23. If a person who has been declared incompetent by a court enters into an

agreement, that agreement is void, because it does not meet all the requirements of a

binding contract.

Definition
T
Term

24. Alice makes a material misrepresentation of fact to Betty, and based upon the

misrepresentation, Betty enters into a contract. Betty now realizes she was deceived and

wants to get out of the contract. This contract is voidable at Betty's option only.

Definition
T
Term

25. Nathan promises to take Debra to the show on Friday night. He then changes his mind

so that he can stay home and study his business law. Nathan can be sued for breach of

contract by Debra for breaking his promise.

Definition
F
Term
26. Generally, an offer is effective as soon as it is dispatched.
Definition
F
Term

27. An offer must be communicated to the offeree or his agent in order for the offer to be

effective.

Definition
T
Term

28. If Bill tells Sara that he will give her two days to decide if she wants to buy his car, he

cannot sell it to anyone else during that time.

Definition
F
Term
29. Generally, a contract exists when an offer has been accepted.
Definition
T
Term

30. If the offer specifies it MUST be accepted by letter, a telegram will not be a valid means

of acceptance.

Definition
T
Term

31. If an offer states that it MUST be received by a certain date, receipt is presumed in

those situations when acceptance is mailed.

Definition
F
Term
32. The party to whom an offer is made is an offeree.
Definition
T
Term
33. A counteroffer operates as a rejection of the original offer.
Definition
T
Term

34. Contracts have a number of legally essential elements, among which are an

agreement and consideration.

Definition
T
Term
35. The law enforces all promises, therefore, all promises are contracts.
Definition
F
Term

36. On July 12th, 2008, Louis offers to employ Teresa as head chef in his restaurant next

year. The very next day, Teresa accepts the offer. The parties agree on a term of nine (9)

months, and a $10,000 salary per month. Per their agreement, Teresa is to begin work on

January 1. This contract falls within the scope of the statute of frauds, and thus will likelyhave to be in writing to be enforceable.

Definition
T
Term
37. An offer can never be validly accepted by the offeree's silence.
Definition
F
Term

38. Wendy offers to pay Jose $1,000 if he agrees to promise to paint her house this month.

If Jose accepts the offer, it will create a unilateral, executed contract.

Definition
F
Term

39. A contract to provide lawn and landscaping service for "the next six (6) months" falls

within the scope of the statute of frauds, and must be in writing to be enforceable.

Definition
F
Term

40. Fred offers to paint Debbie's home for $500. Debbie tells Fred she will only pay $450,

and Fred agrees. Under these facts, Debbie is the "offeror."

Definition
T
Term

41. Sarah, an artist, e-mails Patricia and offers to paint her portrait for $499.99. Patricia

calls Sarah back and accepts the offer. Sarah promises to paint the portrait within one (1)

year, if not sooner, and Patricia agrees to pay within six (6) months of the portrait's receipt.

This is an enforceable, bilateral, executory contract.

Definition
T
Term

42. Sue leases her 3 Bedroom, 2-bath home to Trisha for $300,000 for one year. The

parties sign a written lease. Article 2-A of the UCC governs this contract.

Definition
F
Term

43. Bob, a schoolteacher, sells his neighbor Sam an old office chair at a garage sale. Bob

has given Sam an "implied warranty of merchantability."

Definition
F
Term

44. Sue sells her 3 bedroom, 2 bath home to Trisha for $300,000. The parties sign a

written contract. Article 2 of the UCC governs this contract.

Definition
F
Term
45. A contract for lawn mowing services falls under the scope of Article 2 of the UCC.
Definition
F
Term
46. For Article 2 of the UCC to apply, at least one party to the contract must be a merchant.
Definition
F
Term

47. Pat, who owns an appliance store, has a garage sale at his home where he sells old

furniture and books. He sells a set of books to his neighbor Judy. Pat is considered a

merchant under Article 2 of the UCC in selling the books to Judy.

Definition
F
Term

48. The UCC imposes a duty of good faith on the performance and enforcement of every

contract it covers.

Definition
T
Term
49. Under a unilateral contract only one party makes a promise.
Definition
T
Term
50. A void contract is a contract that one or both parties may cancel, at their option.
Definition
F
Term

51. A promises to pay B $50 if B will mow A's lawn. B completely and satisfactorily mows

A's lawn. This is a unilateral contract.

Definition
T
Term
52. An express contract is a contract that is evidenced by a writing.
Definition
F
Term
53. A revocation normally is effective at the time it is dispatched by the offeror.
Definition
F
Term
54. A rejection normally is effective at the time it is dispatched by the offeree.
Definition
F
Term
55. The offeror's death automatically terminates an offer, but the offeree's death does not.
Definition
F
Term

56. An advertisement offering a reward for the return of lost property usually is treated as

an offer for a unilateral contract.

Definition
T
Term
57. An assignee must give consideration to the assignor in exchange for the assignment.
Definition
F
Term

58. In general, ambiguities in a written agreement are resolved against the party who

drafted the agreement.

Definition
T
Term

59. Under the "American Rule" governing successive assignments, the first assignee in

time has the superior right.

Definition
F
Term

60. Rolland just bought a new pair of eye glasses. He had to go to the eye doctor for an

exam and to get a prescription. He then took the prescription to the eye-glass store to buy

his new glasses. Rolland's visit to the eye doctor is governed by the UCC; the purchase of

his glasses from the eye-glasses store is not.

Definition
F
Term

61. The mirror image rule permits the offeree's acceptance of a contract to materially differ

from the offer.

Definition
F
Term
62. A counter-offer will generally be treated as an implied revocation, and a new offer.
Definition
F
Term

63. If a rejection is placed in the mail, with the proper address and postage, it will generally

be considered effective on "deposit."

Definition
F
Term

64. One of the key issues in a promissory estoppel case is whether the defendant made

a promise to the plaintiff that the plaintiff detrimentally relied upon.

Definition
T
Term

65. In order for an offer to be legally valid under the common law, it must have reasonably

definite terms.

Definition
T
Term
66. Advertisements are typically considered valid offers.
Definition
F
Term
67. One purpose of contract law is to make business matters more predictable.
Definition
T
Term
68. The elements to a contract are agreement, consideration, legality, and capacity.
Definition
T
Term

69. Robert agrees to buy a car from Jane for $400. This contract must be in writing to be

enforceable.

Definition
F
Term

70. "I'll pay you $1,000 if you promise to paint my house this month." If the offeree accepts,

this is a unilateral contract.

Definition
F
Term
71. A person who makes a contractual offer is referred to as an "offeree."
Definition
F
Term
72. A person who makes a contractual promise is referred to as a "promisee."
Definition
F
Term
73. All promises are enforceable as contracts.
Definition
F
Term
74. Advertisements are generally not considered as offers to enter into a contract.
Definition
T
Term

75. Under the common law, an offeree's proposal to make a material change in the terms

of an offer will most likely constitute a counter-offer.

Definition
T
Term

76. Mary was mistaken about a material fact concerning a contract she made with

Bob. Mary can avoid the contract on the grounds of "fraud."

Definition
F
Term
77. Under the "mailbox rule," some acceptances are deemed effective upon dispatch.
Definition
T
Term
78. A party can always avoid a contract on the basis of a unilateral mistake of value.
Definition
F
Term
79. Agreement is usually evidenced by an offer and an acceptance.
Definition
T
Term
79. Agreement is usually evidenced by an offer and an acceptance.
Definition
T
Term
80. An offeror's subjective beliefs or assumptions determine his or her intent to contract.
Definition
F
Term
81. Under the common law, an offer must contain reasonably definite terms to be enforced.
Definition
T
Term
82. An offer does not need to be communicated to the offeree to be effective.
Definition
F
Term
83. A promise to do some specified thing in the future is an offer.
Definition
T
Term

84. Any agreement made "after a few drinks" can be avoided for lack of seriousness of

intent.

Definition
F
Term
85. A price list is considered an offer.
Definition
F
Term
86. An expression of opinion is not a valid offer.
Definition
T
Term

87. When a contractor submits a bid for a construction project, the submission of the bid

is an offer.

Definition
T
Term
88. A "quasi-contract" is not really a contract.
Definition
T
Term
89. An "express" contract must be in writing.
Definition
F
Term
90. Parol evidence is never admissible.
Definition
F
Term
91. If an offeree makes a counteroffer, he becomes the "counter-offeror."
Definition
F
Term
92. The UCC applies to contracts for services as well as to contracts for the sale of goods.
Definition
F
Term

93. Under the UCC, the mirror image rule applies in the same manner as under common

law.

Definition
F
Term

94. In ordinary sales transactions, the implied warranty of fitness for a particular purpose

can be disclaimed, but the disclaimer must be in writing and conspicuous.

Definition
T
Term
95. Implied warranties of merchantability can never be disclaimed.
Definition
F
Term

96. A model used in connection with selling goods will usually amount to a warranty that

the goods will be as the model indicates.

Definition
T
Term

97. A statement that a particular truck can haul a 3,000 pound load would be treated as an

opinion and would not become an express warranty.

Definition
F
Term

98. The implied warranty of merchantability requires that goods be fit for the ordinary

purposes for which they are intended.

Definition
T
Term

99. For the implied warranty of fitness for a particular purpose to apply, the seller must

have actually known the purpose for which the buyer was purchasing the goods.

Definition
T
Term
100. An implied warranty of merchantability arises in every sale or lease by a merchant.
Definition
T
Term

101. A seller's statement that "this is a terrific used car" generally creates an express

warranty.

Definition
F
Term
102. A buyer from a thief can acquire title to the goods as a good faith purchaser.
Definition
F
Term

103. A contract for the sale of goods must include a price to be enforceable under the

UCC.

Definition
F
Term

104. In ordinary sales transactions, the warranty of title can be disclaimed or modified only

by specific language in a contract.

Definition
T
Term

105. According to the UCC, unless otherwise specified or agreed upon, all goods in a

contract must be rendered in a single delivery.

Definition
T
Term
106. The UCC, not common law, covers the sale of real estate and services.
Definition
F
Term

107. When an offer governed by the UCC does not specify a means of acceptance, it can

be accepted by any means reasonable under the circumstances.

Definition
T
Term

108. The UCC always governs breach of contract cases involving a combination of

services and tangible movable goods.

Definition
F
Term

109. In order to be liable for negligence a person must have owed a duty of care to the

plaintiff.

Definition
T
Term

110. Tim and his friend are playing catch in the back yard when Tim suddenly throws the

ball over the fence into the neighbor's yard where it breaks a window. This is trespass to

real property, even if Tim himself does not go onto the property to get the ball.

Definition
T
Term
111. Truth is a complete defense to defamation.
Definition
T
Term

112. Arthur offers Bob, an employee of Carl, a job with his company at a yearly salary of

$10,000 more than Bob receives under the contractual relationship between Bob and Carl.

Arthur knows about the contract between Bob and Carl and knows that the contract should

run for another five years, but Arthur wants Bob to work for him. Arthur probably is liable

to Carl for intentional interference with contractual relations.

Definition
T
Term
113. The same act can never be both a tort and a crime.
Definition
F
Term

114. Because he's a good friend, and has known Hilda a long time, Scott fixes Hilda's car

as a surprise for her birthday. When Hilda sees it, she is so happy, she promises to give

Scott $1000 the following week for doing the work. He gratefully accepts. A court would

likely find that this promise to be supported by valid consideration; and Hilda's promise to

pay $1000 is enforceable as a contract.

Definition
F
Term

115. One distinction between nuisance and trespass to land is that trespass to land

involves intrusions by human beings, while nuisance involves intrusions by other forces.

Definition
F
Term

116. In order to be liable for conversion, the defendant must know that the property

rightfully belongs to someone else.

Definition
F
Term

117. In a strict liability case, the plaintiff still must prove that the defendant breached a

duty.

Definition
F
Term

118. Even though no one else had developed an invention like that of the patent applicant,

the application will be denied if, at the time of the invention, the invention would have been

obvious to a person having ordinary skill in the area.

Definition
T
Term

119. A copyright owner's failure to use a proper copyright notice does not cause her to

forfeit copyright protection.

Definition
T
Term
120. Consent can be raised as a defense to battery.
Definition
T
Term

121. Bill dictates a letter to his assistant, Barbara. The letter is addressed to Betty Bonds,

his accountant, and in it, he accuses Betty of being dishonest - when he knows sheis not!

Barbara never types the letter, and does not send it to Betty. Nevertheless, Bill has

likely committed the tort of defamation.

Definition
T
Term

122. In a defamation suit where the plaintiff is a "public figure," the defendant must prove

that the plaintiff acted "with actual malice."

Definition
F
Term
123. A fanciful use of ordinary words may be trademarked.
Definition
T
Term
124. Tort law provides legal remedies for both personal injury and property damage.
Definition
T
Term

125. In tort law, intent means only that the actor intended the consequences of his or her

act or knew with substantial certainty that certain consequences would result from the act.

Definition
T
Term
126. To commit an intentional tort, a person need not act with a harmful motive.
Definition
T
Term

127. An assault may be committed when a person acts in a way so as to create an

apprehension of offensive contact in the distant future.

Definition
F
Term
128. A battery occurs only if the victim suffers actual physical harm.
Definition
F
Term
129. Libel involves the written communication of defamatory language.
Definition
T
Term
130. Puffery is fraud.
Definition
F
Term

131. To commit the tort of trespass to land, a person does not need to actually harm the

land.

Definition
T
Term

132. Conversion is wrongfully taking or retaining an individual's personal property and

placing it in the service of another.

Definition
T
Term
133. An arbitrary use of ordinary words may not be trademarked.
Definition
T
Term

134. A service mark is used to distinguish products produced by the federal government

from those produced by private corporations.

Definition
F
Term

135. Brad doesn't like Rob and especially dislikes Rob's new felt hat, so he intentionally

knocks it off Rob's head in order to embarrass Rob. Brad has committed a battery.

Definition
T
Term

136. In a defamation action, the plaintiff must prove that the defendant communicated a

false statement to a third party.

Definition
T
Term
137. A tort is a violation of a duty imposed by the civil law.
Definition
T
Term

138. Under the new Restatement (Third) of Torts, a manufacturing defect exists only when

it is shown that: 1) the product has departed from its intended design; and 2) the

manufacturer failed to exercise "due care" in the manufacturing process.

Definition
T
Term
139. Written defamation is called "slander."
Definition
F
Term

140. Opinion is generally a valid defense in a defamation lawsuit because it cannot be

proven to be true or false.

Definition
T
Term

141. In order for a plaintiff to win a case involving intentional infliction of emotional distress,

she must prove the defendant acted in an extreme and outrageous manner.

Definition
T
Term
142. Prior to any battery, an assault (even if only momentarily) must have occurred.
Definition
F
Term
143. Punitive damages are intended to punish the defendant.
Definition
T
Term
144. An employee who divulges secret trade information cannot be sued.
Definition
F
Term
145. Infringement is the unauthorized use of the intellectual property of another.
Definition
T
Term

146. Electronic surveillance for the purpose of acquiring trade secrets is permissible under

the law of unfair competition.

Definition
F
Term

147. For a mark to be protected under federal law, it must be registered with the Patent

and Trademark Office.

Definition
T
Term
148. Trade secrets are information held as confidential by a company and its employees.
Definition
T
Term
149. A trademark differs from a service mark in that the latter describes services.
Definition
T
Term
150. A copyright does not last forever.
Definition
T
Supporting users have an ad free experience!