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BUSI 561 Quiz 2 with Answers

1. Blow-Up. Jeanie is hauling several containers of gasoline in her vehicle in preparation for riding her personal watercraft. On the way home, Jeanie stops at the automatic teller machine at her bank and exits her car. Holly pulls behind her and negligently rear-ends Jeanie’s car. The car explodes and results in the bank building burning to the ground. The bank sues Holly for negligence claiming that Holly should have to pay for the entire bank building. The bank claimed that it should be able to recover under the res ipsa loquitur doctrine. Which of the following is true regarding whether Holly is the proximate cause of the bank burning?
2. Cat Chaser. Annette, who is angry because her neighbor, William, allows his dog to chase her cat, decides that she wants to get even. She moves a number of farm animals into her backyard and begins playing music at all hours of the night. She also steals a nice lawn chair off of William’s deck. So intends to keep the chair and not give it back. Annette further took a rake off of William’s deck that she plans to return after she finishes raking her leaves. William did not give her permission to take the rake. William is unhappy about the whole situation and wants to sue. What action would William have against Annette for taking the rake?
3. Assumption of the risk is a doctrine, which makes it easier for a plaintiff to prevail in a lawsuit.
4. To be successful in an intentional tort, the plaintiff must show that the defendant intended to harm the plaintiff.
5. Hair Stylist Woes. Maryann went to see her hairstylist, Candy. Maryann, who had black, curly hair, requested straight, blond hair. Candy told her that she could make that change, but there would be significant upkeep involved. Candy made the change, but Maryann did not do the upkeep required. She also falsely claimed that Candy did not do what Maryann asked her to do, that Candy lied to her, and that Candy was professionally incompetent. Maryann made the statements to friends of hers. She also wrote an editorial in her college newspaper to the effect that Candy’s shop should be avoided at all costs because Candy was incompetent. In fact, Candy was a good hair stylist and enjoyed a good reputation up until the time that Maryann started her criticism. Candy threatened to sue Maryann for defamation, but Maryann told Candy that Candy could not prevail because Candy could not prove loss of income. Candy had to admit that while her reputation had been damaged somewhat, the damage was primarily among the college population. Her income kept increasing from other segments of the community, and she had suffered no net loss. The defamation printed in the school newspaper would be which of the following?
6. Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning.
7. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale, noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say “Sold”, Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, “I revoke.” Barry, however, immediately yelled “Sold.” When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family’s good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. What is the likely result in the lawsuit Barry brought against Chris?
8. Inez, wishing to sell a used business law book, calls Janice and tells her that if she does not hear from her within twenty-four hours.
9. She will assume that Janice wishes to purchase the book for $50. After the expiration of twenty-four hours, which of the following is correct regarding the status of the proposed book sale?
10. A _____ contract is one that contains all the legal elements of a contract.
11. Garage sale. Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200. Dawn replies that “I’ll think about it and buy it if I decide to do so.” Richard also calls Denise and offers to give Denise a used business law book. She is excited to receive the book and tells him that she will pick it up the next day. Richard also agrees to sell a communications book for $50 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit, offers Richard $20 for the business law book and Richard sells it to him. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $60 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $60.
12. Denise is very angry because Richard did not save the book for her and claims that he breached a contract because she had accepted his offer. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her. Exactly 31 days later, Dawn tells Richard that she would like the computer. She tells him that her response constituted consideration in that it bound him to an option contract and that he should have awaited her final decision. Richard tells Sam that he needs to return everything for a full refund. Sam refuses. Which of the following is true regarding Dawn’s statement that her response was sufficient consideration to bind Richard to an option contract and that he should have awaited her final decision?
13. Garage sale. Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200.
14. Dawn replies that “I’ll think about it and buy it if I decide to do so.” Richard also calls Denise and offers to give Denise a used business law book. She is excited to receive the book and tells him that she will pick it up the next day. Richard also agrees to sell a communications book for $50 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit, offers Richard $20 for the business law book and Richard sells it to him. Sam also offers Richard $50 for the used computer (busi 561 quiz 2). Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $60 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $60. Denise is very angry because Richard did not save the book for her and claims that he breached a contract because she had accepted his offer. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her (busi 561 quiz 2). Exactly 31 days later, Dawn tells Richard that she would like the computer. She tells him that her response constituted consideration in that it bound him to an option contract and that he should have awaited her final decision. Richard tells Sam that he needs to return everything for a full refund. Sam refuses. Which of the following is true regarding the dispute between Richard and Sam regarding whether Sam must return anything?
15. In the case of Smith v. Riley, referenced in the text.
16. What did the court rule in regard to whether a purchase in the amount of “the sum of One Dollar ($1.00) and other good and valuable consideration” was sufficient consideration to support an agreement?
17. If a person’s mental deficiencies have resulted in his being adjudicated insane and a guardian has been appointed for him, he has no capacity to enter into contracts and any contract he attempts to enter into is void.
18. Making regular payments under a contract after reaching the age of majority will probably constitute implied ratification of the agreement.
19. A minor may be given full legal capacity to enter into contracts when he or she becomes _____.
20. Monetary damages are also referred to as ______ damages.
21. Creaky and Toady. Beverly decides to go on a great trip to Hawaii.
22. She needs someone, however, to take care of her two dogs, Creaky and Toady, while she is gone. Creaky has hives, and Toady passes gas frequently because of a digestive problem. Beverly hires Frank three months in advance and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks (busi 561 quiz 2). Frank comes over two months before Beverly is set to leave, takes one look at Creaky and Toady, and declares that they are too creepy to be around. Beverly then hires Alice who agrees to care for Creaky and Toady. Two weeks before Beverly is set to leave, however, Alice calls and tells her that she just broke both her legs in an automobile accident, sustained other injuries, and has been put on bed rest for two months. Finally, Alice hires Betty to care for the dogs and heads off to Hawaii where she has a great time (busi 561 quiz 2). Unfortunately, when Beverly returns home, she finds that Betty fell in love with Creaky and Toady and has absconded with them. It was a month before Beverly was able to get a court order requiring their return. Which of the following is true regarding Alice’s refusal to keep Creaky and Toady?
23. A _____ occurs whenever a party fails to perform her obligations under the contract.
24. A firm offer may be oral or written.
25. According to common law, when a seller transfers goods to a buyer, the buyer gets only voidable title if the buyer is a minor.
26. The United Nations Convention on Contracts for the International Sale of Goods governs _____..