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BUSI 561 Quiz 2 – Question and Answers

1. Which is not an intention tort against one’s economic interest?
2. Which of the following is an unforeseeable event, which interrupts the causal chain between the defendant’s breach of duty and the damages the plaintiff suffered?
3. Assumption of the risk is a doctrine, which makes it easier for a plaintiff to prevail in a lawsuit.
4. The classifications of torts may be different in foreign countries.
5. If a car stopped at a red traffic light is struck in the rear by another vehicle, it is negligence per se.
6. Quasi-contracts are legally the same as implied-in-law contracts.
7. Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. 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 the 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. In the lawsuit in which Barry sues Helen for the return of the $5,000, which of the following is the most likely result?
8. Which of the following are the two most important primary sources of contract law?
9. Bank Robbery. Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. Which of the following is true regarding the offer of the reward?
10. Forbearance is sufficient consideration for a valid and enforceable contract.
11. 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?
12. Because their contracts are _____, minors have the right, until a reasonable time after reaching the age of majority, to _____, or avoid, their contracts.
13. Guardians may be appointed for which of the following?
14. Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?
15. If the contract contains a clause in which an event must occur in order for a party’s duty to arise, then that contract contains a condition subsequent.
16. The termination of the contract is known as __________.
17. A condition ______ is a future event that terminates the obligations of the parties when it occurs.
18. Tender of delivery is the moment goods are picked up by the buyer.
19. A common-carrier delivery contract occurs if a buyer and seller execute a contract and the seller subsequently places the goods with an independent contractor for delivery to the buyer.
20. Wrecked Furniture. Ralph buys new furniture for his living room from Good Times Furniture. It is agreed that the goods will be placed with a common carrier for delivery. The contract between Ralph and Good Times is ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier’s hands or whether the seller had the duty to deliver the goods to Ralph’s home. Unfortunately, on the way to Ralph’s home, through no fault of the delivery driver, the delivery truck got wrecked and the furniture was significantly damaged. What type of contract is presumed based upon the fact that the contract was ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier’s hands or whether the seller had the duty to deliver the goods to Ralph’s home?