Reference no: EM133201626

Contracts

Question 1. In the context of termination of an offer, ______ occurs when an offeror retracts the offer before the acceptance.

A. rejection
B. reversion
C. novation
D. revocation
E. rescission

Question 2. The legal mechanism for evaluating the existence of an incentive for a person's promise to establish a binding contract and acts as a receipt of a legal benefit or the suffering of a legal detriment is ______.

A. collusion
B. accord and satisfaction
C. consideration
D. reversion
E. novation

Question 3. Which of the following terms refers to a person's ability to be bound by a contract?

A. legality
B. capacity
C. usability
D. negotiability
E. measurability

Question 4. If a minor fails to disaffirm a contract within a reasonable time after reaching majority, the minor is said to ______ the contract.

A. transcend
B. terminate
C. rescind
D. ratify
E. breach

Question 5. Which of the following statements is true about intoxicated and mentally incompetent persons in a contract?

A. A court of law legally terms mentally incompetent persons as "infants" to a contract.
B. A court prevents intoxicated persons from making a contract voidable in any circumstance.
C. The capacity to contract is simply lost due to intoxication and mental incompetency even before a court can adjudge a person of such mental incompetency.
D. A court measures capacity to contract by whether an adult is capable of understanding the nature and purpose of the contract.
E. The complexity of a contractual transaction and the mental capacity of an adult are irrelevant in controlling the right to disaffirm a contract.

Question 6. Jason owns a painting company and offers to paint Julie's house for $2,000 with his crew to start work this coming Friday. Julie counters with $1,700 with his crew to start work this coming Friday. Do Jason and Julie have a binding and enforceable contract? Why or why not?

Question 7. Responding to an online advertisement, Mary buys a vacation home in the Ozarks for $200,000. She signs the papers, scans them and emails them to the seller who signs them and sends them back. Mary wires the purchase price of $200,000 to the seller. Mary and her family arrive at the address of the vacation home and it is a vacant lot. Mary has a legal cause of action against the seller for: (2 points)

A. Negligence
B. Defamation
C. Fraud
D. Criminal Trespass

Responding to an online advertisement, Mary buys a vacation home in the Ozarks for $200,000. She signs the papers, scans them and emails them to the seller who signs them and sends them back. Mary wires the purchase price of $200,000 to the seller. The seller mails Mary the title and keys to the house. At closing, the seller had represented to Mary that there were no hazardous wastes or toxic chemicals buried underground. A year later, Mary discovered that was not true. What would have to be true for Mary to bring a cause of action for fraud against the seller?

Question 8. In order for a contract to be enforceable, it must satisfy these three elements:

Question 9. Dr. Smith signed a contract with Resurrection Hospital to begin work at the Hospital in six months for an annual compensation of $250,000. Prior to his start date, he receives a better offer from another employer and emails the Hospital that he will not be joining their staff after all.
Did Dr. Smith and the Hospital have a binding and enforceable contract? Why or Why Not? If yes, what are the Hospital's potential damages? If no, is Dr. Smith free to accept the new offer without consequences? (2 points)

Question 10. Dr. Johnson signed a contract with Family Practice Associates, LLC, a group of 10 private practitioners. The contract contains a restrictive covenant which prohibits Dr. Johnson from practicing medicine for 1 year and within 5 miles of the group's office. In States that permit restrictive covenants, is it likely that this covenant would be enforceable? Why or why not? (2 points)

The contract above contained a clause which said that any violation of this restrictive covenant will result is a mandatory payment to Family Practice Associates, LLC of $250,000, an agreed upon amount of damages because they could be difficult to otherwise estimate and prove. This type of remedy is called:

A. Compensatory Damages
B. Liquidated Damages
C. Consequential Dames
D. Punitive Damages

Question 11. Mary Jones signs a personal services contract with the ABC Manufacturing Company to sell its medical devices. She is a top salesperson. Her contract contains a covenant not to compete which restricts her from competing with the Company if she ever leaves it for any reason. As a general rule, in States where such restrictive covenants are enforceable, they must be reasonable in two respects. Name them:

If Mary's contract is governed by Nebraska law and the covenant not to compete is enforceable, the Company can sue Mary for which of these remedies:

A. Monetary damages that are provable
B. Specific performance of a personal service contract
C. Injunctive relief
D. Punitive damages
E. All of the above
F. A, C and D only
G. A and C only
H. A, B and C only

Question 12. Mr. Jackson is an 85-year old senior citizen and resident in the memory care unit of Tranquility Village. He walks out an unlocked door to a nearby Open House on Sunday afternoon and signs a contract to buy the house for $350,000. Is this purchase contractually voidable by Mr. Jackson or his daughter as his legal guardian on his behalf? Why or why not?

Torts

Question 13. Legally, a tort is any civil wrong other than a breach of contract.

___ True ___ False

Question 14. One is not liable for another's injury unless he or she has a duty toward the person injured.

___ True ___ False

Question 15. In business, negligence can occur when employees cause injury to customers or others.

___ True ___ False

Question 16. To successfully prove a cause of action for negligence, the plaintiff must prove:

A. Carelessness and damages
B. Carelessness, causation and damages
C. Breach and damages
D. Duty, breach and damages
E. Duty, breach, causation and damages

Question 17. Jack injures his ankle and is taken to a hospital. Airi, a doctor, applies a cast to Jack's injured ankle. Airi warns Jack not to exert pressure on his injured leg until the cast is removed. Jack ignores Airi's advice and injures his leg again when playing basketball while still having the cast. Jack files a malpractice suit against Airi claiming that she did not set the cast properly. Which of the following defenses is Airi most likely to use in this scenario?

A. contributory negligence
B. private necessity
C. retaliation
D. absolute truth
E. consent

Question 18. Which of the following statements is true of comparative negligence?

A. It completely bars a plaintiff from recovering any damages.
B. It requires a plaintiff and a defendant to settle their dispute through arbitration.
C. It allows a plaintiff to claim only punitive damages but not actual damages.
D. It allows a plaintiff to claim damages without establishing proximate causation and causation in fact.
E. It compares a plaintiff's fault with a defendant's and reduces the damage award proportionally.

Question 19. Antonio and Fred are playing soccer when Fred accidently kicks Antonio's shin during a pass. Antonio is seriously injured and is unable to play for at least six months. If Antonio sues Fred, which of the following defenses is Fred most likely to use?

A. cause in fact
B. assumption-of-the-risk
C. statute of repose
D. strict liability
E. proximate cause

Question 20. Which of the following statements is true of punitive damages?

A. Juries award punitive damages to all cases tried and proven for negligence.
B. The key to the award of punitive damages is a defendant's motive.
C. Punitive damages are awarded depending on the degree of suffering endured by a plaintiff.
D. Punitive damages are awarded if a defendant agrees to a rescission.
E. Punitive damages are awarded to a plaintiff only in cases of assault.

Question 21. Mr. Smith is leaving his hotel for dinner. It is located in a high-income neighborhood with hardly any crime and the hotel has no history of assaults on its premises. Mr. Smith is robbed as he approaches his car. He sues the hotel for negligence for failing to protect a business invitee.

A. A business has no duty to protect absent knowledge that criminal assaults are taking place or about to take place and is not liable to Mr. Smith.
B. Mr. Smith should have stayed at the hotel and had dinner at its on-site restaurant.
C. The hotel should have retained mobile security units to monitor its parking lot.
D. A business has a duty in all cases to protect business invitees and is liable to Mr. Smith.

Question 22. The Supreme Court has ruled that punitive damages cannot be unreasonably disproportionate to awards of compensatory damages and established a general ratio in the State Farm case in your textbook. What is the ratio: _________________________________________________.

Question 23. Joe drives an over-the-road semi for Walmart. He becomes sleepy because he has exceeded the maximum number of permissible driving hours per day, as recorded on his truck. This has happened before and Walmart was aware of Joe's habit. Joe falls asleep and crashes into Bob who is driving perfectly safely and injuring Bob and totaling his car. Which of the following is true:

A. Joe can be sued for negligence
B. Walmart can be sued for negligence
C. Bob can be sued for contributory negligence
D. All of the above
E. Both A and B

Question 24. Alex is a professional football player. As he completes a run his momentum takes him to a concrete surface near the field where he slips and tears his ACL. He misses the next season due to his injury and recovery needs. The loss of his livelihood has left him depressed and despondent. He sues relevant parties for negligence. Identify at least three components of his likely overall claim for damages?

Question 25. The type of damages that Alex can prove in the question above is called

Question 26. Ms. Neinstein attends a baseball game at Dodger Stadium and is hit by a foul ball. She sues the Dodgers. What legal defense will be asserted by the Dodgers?

Question 27. Lucy is driving down Clarkson street in Fremont and accidentally runs a stop sign and crashes into Mike who was turning onto Clarkson street after an evening at the Corner Bar. Mike sues Lucy claiming damages to his shoulder and his car. Lucy acknowledges that she ran the stop sign saying it was covered by a tree branch and she didn't see it. She also said Mike's turn was sharp and erratic and his left low beam headlight was out which made it difficult for her to determine if a car or a motorcycle was turning. What is the most likely outcome of this case applying Nebraska law?

Question 28. You are the HR director for your company. A former employee asks you to provide a written recommendation and referral for a new job. You send the prospective employer a summary of the former employee's dates of employment, position he held, the fact he was disciplined on two occasions for unexcused absences from work and falsifying expense reports - all to which he had admitted. He does not get the new job. He sues your company for slander based on the referral. Does he win or lose the suit?

___ Wins ___ Loses

Question 29. John and Bob are the final candidates for the CEO position at the company. Both are internal candidates and are interviewed by the Board of Directors. During his interview, Bob lets slip that he is aware that John is a habitual recreational drug user and he believes that could put the company in a bad light if John receives this promotion. Bob gets the CEO job. John later finds out about Bob's comments and sues him for slander. Describe the considerations that would affect whether John wins or loses his suit.

Question 30. Traditional media outlets like newspapers enjoy absolute immunity from defamatory statements because they are fully protected by the First Amendment and freedom of the press.
___ True ___ False

Question 31. Social media outlets like Twitter cannot be sued for defamatory statements made by its users.
____ True ___ False

Question 32. In Iannelli v. Burger King, discussed in our textbook, the plaintiffs argued that commercial enterprises like Burger King have a general duty to exercise reasonable care toward its patrons, including a duty to safeguard against assault when circumstances provide warning signs that the safety of its patrons may be at risk. What was the holding of the court?

Question 33. Jim is an employee of Acme Chemical Company. At lunch, Jim gets drunk. While making his afternoon deliveries, he crashes into another car, killing the driver. Acme Chemical Company can face punitive damage awards for Jim's behavior.
___ True ___ False
Arbitration

Question 34. Explain the difference between mediation and arbitration.

Question 35. Explain the advantages of arbitration over litigation.

Question 36. Arbitration Case Attached - Ms. Carol Fern
Read the arbitration case and answer question 3 only (if you were an arbitrator in this case, how would you rule and why). To receive full credit your answer must be thorough and include a complete analysis of the case.