Reference no: EM131092677

True/False

Mark your scantron answer sheet (A) for true or (B) for false.

1. Under the objective theory of contracts, the intention to enter into a contract is judged by the all of the relevant outward, objective facts as interpreted by a reasonable person.

2. An action may be legal but not ethical.

3. It is necessary for contracts to contain reasonably certain and definite terms.

4. A judge will not challenge the adequacy of consideration; where parties have freely, knowingly and voluntarily bargained for the consideration the court will treat it as adequately valuable to them and uphold the bargain as made by them.

5. When a buyer refuses to accept and pay for goods and breaches a contract, then the seller can demand as damages the difference between the contract price he would have received less the price he was paid when he resold the goods. Thus the market price is subtracted from the contract price and the seller's reasonable expectations are met if the result is positive.

6. Contractual damages are designed to compensate a non-breaching party for the loss of the bargain and thus that party's reasonable expectations will be satisfied.

7. Punitive damages are often awarded in breach of contract actions.

8. Punitive damages may be awarded in a case where an insurance company has been shown to have acted unethically and in bad faith denied benefits to the insured.

9. As a general rule, contracts involving an interest in land must be proven with a writing to be enforceable in a court of law.

10. A unilateral offer can only be accepted by the Offeree doing the act requested by the Offeror.

11. It is not necessary to prove a contract to sell land by a writing when both parties admit in court that they entered into a contract.

12. Consideration may be either a bargained for legal benefit or a bargained for legal detriment.

13. A contract exists and can be enforced even where one side's alleged consideration was a past act that benefitted him.

14. The parole evidence rule requires a promise made in consideration of marriage be proven by a writing.

15. A tailor who does not have a writing proving the existence of a contract for a tailored made suit, can avoid dismissal of the case under the exception to the statute of frauds for specially made goods.

16. Partnership agreements are not in general required to be in writing by the statute of frauds, however they would be required to be in writing if a party by agreeing to become a partner acquires an interest in land.

17. Under the mailbox rule, an acceptance is only effective when received.

13. The mailbox rule is not the rule in international agreements.

14. A contract in which one of the parties is to receive an illegal good (such as cocaine) is unenforceable and void.

15. Virtue ethics places an emphasis on development of good character and habits.

16. Aristotle held that virtue is often a matter of degree, that is virtue is the mid-point between two vices that are extremes. (That Courage is mid way between foolhardiness and cowardice.)

17. Everyone who advocates a utilitarian approach agrees that the good to be sought is pleasure.

18. John Stuart Mill would view a prosperous and happy slave state as being ethically good if it created more happiness than misery on average for most people. That is; if it created the most happiness for the most people.

19. Kant believed that a good motive was more important than a good outcome.

20. Kant believed that there were no exceptions to our duty to tell the truth and never lie.

21. All Utilitarians would agree that a rise in Gross Domestic Product would always fulfill the need for ethical management of the economy.

22. Aristotle's virtue ethic placed its key emphasis on practical wisdom (Prudence) in ethical decision making.

23. Barry Schwartz advocated the use of incentives for ethical decision making; so we would not have to depend on the practical wisdom of teachers, judges or politicians .

24. The absence of rules and regulations prevents virtue ethics from being a flexible approach to ethics.

25. Barry Schwartz states that the key to our happiness is a Utilitarian approach to ethical issues.

26. Specific Performance is available to buyers of houses, because each one has a unique locattheion (address).

27., The owner of a theater can get an order from a court which requires a singer to Mill his contract to come and sing in his theater and thereby fulfill the contract he signed.

28. A farmers damages will be determined by the standard measure of damages if a dealer with who he contracted to sell his crops breaks the contract; therefore the farmer will not get the remedy of Lost Profits.

29. A new car dealership will not be limited by the standard measure of damages; in cases where he can prove Lost Profits even though he merely resold the car after a buyer breach the contract by refusing to take delivery.

30. The seller of a house or a car may be limited by an agreed upon a non-punitive damage clause but not a theater owner.

31. Many religions have a sacred text that defines certain duties which are often interpreted literally as absolute rules which must be obeyed by the believers of that religion.

32. /The non-breaching party to a contract must act to avoid the consequences of the other parties breach whenever he can do so.

32. The Parole Evidence rule requires contracts for the sale of land to be in writing.

33. Partial performance of a contract is an exception to the statute of frauds.

34. Quantum Meruit is awarded in cases where a judge invokes an equitable remedy to avoid unjust enrichment.

Multiple Choice

Identih, the letter of the choice that best completes the statement or answers the question then mark your blue scantron with that letter

35. Overeliance on rules and incentives is bad because it

A) Leads to too much power to those in authority such as judges
B) Destroys the unity of the community
C) Creates People who only things for incentives

36. Wisdom in dealing with other people does not require

A) Knowing when and how to bend the rules
B) Knowing when to improvise in service of the right aims
C) The Will to do the right thing
0) Incentives aligning others interest with our interests

37. According to Barry Schwartz the key to happiness is

A) Pleasure B) money C) Fame D) Practical Wisdom

38. Which is an exception to the Parole evidence Rule

A) Specially made goods
8) Performance
C) Confirmation between Merchants
D) none of the above

39. Which ethical theory provides support for the following statement, " A mistake is inexcusable, if by proper study and preparation the actor would have had the character to have been able to avoided it."

a. virtue
b. utilitarianism

c. Duty
d. Rights

40. Which of the following is not recognized in most states as an exception under the statute of fraud.

a. Admissions made inside of court
b. Performance of the contract
c. The contract alleged is for specially made goods
d. Ethical considerations concerning the good faith of one of the parties.

41. In general, which of the following would allow either party to rescind the contract.

a. A unilateral mistake of fact
b. A unilateral mistake of value
c. A mutual mistake of fact.
d. One sides performance becomes unethical

42. Which of the following is a goal of contract remedies, we discussed in class.

a. Deterring unethical or criminal activity
b. Punishing the breaching party
c. Promoting economic growth and consumer welfare
d. Fullfilling the non-breaching party's reasonable expectations

43. In making decisions for United Merchandising Company, Jay uses a cost-benefit analysis. Seeking to produce the most profitable consequence for the owners without harming others. This is probably most consistent with

a. duty-based ethics.
b. Kantian ethics.
c. Utilitarianism
d. None of the above

44. Which ethical theory provides support for the following statement, "An action is right if it does the most good for the most people"

a. Virtue
b. Utilitarianism

c. Duty

d. None of the above

Three 3 Modified Essay with True/False

Indicate whether the sentence or statement is true or false. Briefly explain your answers in less than 25 words. If false, change the identified word or phrase to make the sentence or statement true. Write your answer below the question, write or print legibly.

1. Virtue ethics places an emphasis on development of good character and habits. Aristotle held that virtue is often a matter of degree. Explain & Give an example

2. Everyone who advocates a utilitarian approach agrees that the good to be sought is pleasure. Discuss: Are there any other candidates which might be better suited for deciding whether a consequence is good or not.

3. Utilitarians are often said to promote programs that create the greatest good for the greatest number.

Discuss: How well does this describe Mill's utilitarian ethics. Can you clarify how John Stuart Mill would view a prosperous and happy slave state.