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BUSI 561 Quiz 1 – Question and Answers

1. Which of the following are common classifications of torts?
2. What does the term “negligence per se” mean literally?
3. Hair Stylist Woes. Maryann went to see her hair stylist, 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. As far as the statements made to her friends are concerned, which of the following is true in regards to Maryann’s statement that Candy cannot recover because Candy has not suffered a loss of income?
4. If a car stopped at a red traffic light is struck in the rear by another vehicle, it is negligence per se.
5. In some situations, the law specifies the duty of care one individual owes to another.
6. A bilateral contract is a promise exchanged for an act.
7. The person who agrees to the terms of an offer by another party is called the _____.
8. Refusal to Pay. Business law teacher, Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby’s yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform. Which of the following is true regarding Max’s statement that he did not have to pay the emergency room charges?
9. Marcy’s Mom. Marcy’s mother, Sue, did not want her to date until she was older. She also wanted Marcy to attend law school. Just before Marcy started her freshman year in college, Sue told Marcy that if Marcy would refrain from dating until she received her law degree, then Sue would pay off all Marcy’s school loans and throw in an extra $50,000. Marcy agrees and states, “Thanks, Mom, and by the way, when I graduate I’m throwing you a big party for all you’ve done for me!” Sue smiles and hugs Marcy. Marcy finished law school and asked for payment of her loans, the $50,000 in cash, and for a car. Sue said, “No way – I know you went out on some dates during law school, and I never agreed on the car.” Marcy said those were just study nights and that her mother had never objected to Marcy’s frequent statements that she wanted a car upon graduation. Sue asks about the party. Marcy tells her that she is nuts because there is no way Marcy can afford a party since Sue has backed out of the deal. After some serious negotiation, Marcy and Sue settled their dispute with Sue agreeing to pay for half of Marcy’s school loans and for all the expenses of Marcy’s upcoming wedding, and to forget about Marcy throwing a party for her. What type of alleged debt was involved in the dispute between Marcy and Sue involving the school loans, additional funds, car, and party?
10. In a unilateral contract, one party’s consideration is a promise and the other party’s consideration is an act.
11. Which of the following is true under the UCC regarding checks marked “paid-in-full”?
12. A person who has the legal ability to enter into a binding contract has _____.
13. Beauty Shop Woes. When Janice went to work as a hairstylist in Rick’s beauty shop, she entered into an agreement with Rick, whereby, if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena’s hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liabilities before she did anything with Treena’s hair. Treena, however, sued anyway. The agreement Rick and Janice entered into is referred to as which of the following?
14. When a contract is deemed against generally accepted public policy, the courts will determine the agreement to be _____.
15. A breach occurs whenever a party fails to perform her obligations under the contract.
16. Which of the following was the result on appeal in the Case Opener, the case in which Sara Creek Property Company argued that an award of damages, rather than an injunction, was the appropriate remedy in response to its alleged breach of contract by allowing a new pharmacy to move into a shopping mall in competition with Walgreen’s?
17. What doctrine arose from cases in England in which parties, who had contracted for rooms along a parade route for the king’s coronation, received their money back when the coronation was canceled because the king became ill?
18. Which of the following occurs when the purchased goods are transferred to the buyer from the seller at either the time of the sale or some time later by the seller’s delivery?
19. Under Article 2(A) of the UCC “a transfer of the right to possession and use of goods for a term in return for consideration” is a _____.
20. Under Article 2(A) of the UCC, a person who acquires the right to possession and use of goods under a lease is a(n) _____.