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Questions and Answers of
Business Law Today
Daniel Davidson told Velma Evans that he would hire her to work on an architectural job. He gave her a date to show up for work and told her to leave her present job. Relying on Davidson’s
Mers was arrested and charged with a felony. Dispatch Printing, his employer, told him that he had to be suspended. However, Mers was also told that he could return to work if the case against him
The Mighty Fine Food Emporium agreed to buy such fruits and vegetables as it “might desire” for one summer season from Kennelsworth Farms and Vineyards. In return for this promise, Kennelsworth
Graham O’Hanlon, without any mention of payment, helped his friend, Patricia Tippon, move from Westerville to Pepper Pike. The entire move took 48 hours to complete. At the end of the day, after
Vanoni Biological Supplies, Inc., contracted with the Hayden Institute to supply the Institute with 24,000 biological specimens for a series of experiments that the Institute has agreed to perform
Seier agreed to pay $10,000 to Peek in exchange for all the stock in a corporation. The agreement was placed in writing. Nevertheless, when the time came for payment, Seier refused to live up to his
N.B. West Contracting Co., Inc., agreed to repave Koedding’s parking lot. When the repaving work was done, Koedding was unsatisfied with the quality of the work. Consequently, he informed West of
Evans used his credit card to run up a $98.75 bill with the Rosen Department Store. When Rosen tried to collect, Evans wrote a check for $79.00. He wrote on the check that he meant it to be “full
Jill Anderson agreed to purchase William and Teresa Dawson’s flower shop for $75,000. Anderson paid the Dawsons $20,000 when the contract was signed. She also agreed to pay the balance of $55,000
Tim W. Koerner and Associates, Inc., was a distributor for electrosurgical products for Aspen Labs, Inc. Zimmer U.S.A., Inc., purchased Aspen and replaced Aspen’s distribution system with its own.
Trisko purchased a loveseat from the Vignola Furniture Company. The loveseat arrived at Trisko’s home in a damaged condition. Vignola agreed to repair the loveseat if Trisko agreed not to sue.
Literature instructors are fond of saying that a poem, a play, a novel, or a short story is considered good, sometimes even great, if it has stood the “test of time.”The same is true of many
Although he does not necessarily endorse the position himself, in his book, Public Goods, Private Goods , Raymond Geuss of Cambridge University notes that some people have suggested that there ought
In Example 9-6, legally Hansen does not have to pay Everett a single penny, despite her promise to do so. However, is she ethically bound to keep her pledge and deliver to Everett the $35 that she
Executory contracts, those which have not been fully performed by both parties, may be repudiated by a minor at any time. True/False
Ratification is the willingness to abide by contractual obligations. True/False
Necessaries are the same for all persons. True/False
For a contract to be voidable by a person with a mental impairment, the mental problem must exist at the time the contract was made. True/False
A person declared to be insane by competent legal authority cannot be denied the right to enter contracts. True/False
A contract made by a person who is intoxicated is completely void. True/False
The illegal practice of charging more than the amount of interest allowed by law is called usury. True/False
If a license is required simply to raise revenue, the lack of a license will make a contract void. True/False
A restrictive employment covenant limits a worker’s employment options after leaving his or her present job. True/False
Persons who agree to commit criminal acts for a promised consideration are involved in a conspiracy. True/False
When both parties to an illegal agreement are equally wrong in the knowledge of the operation and effect of their contract, they are said to be in pari delicto . True/False
If the legal part of a contract can be removed from the illegal part, without changing the essential nature of the contract, the court will enforce both parts. True/False
What is the age of minority and what is the age of majority?
What is the legal status of a contract made by a minor?
What is the difference between ratification and disaffirmance?
What are the effects of mental impairment on a contract?
What is the contractual capacity of a drugged or intoxicated person?
What is the legal status of an agreement to commit a tort or a crime?
What agreements are illegal under statutory law?
What agreements are contrary to public policy?
What happens under the doctrine of in pari delicto ?
What are the effects of illegality?
After she was married, Sherri Mitchell, a young woman of 17 years of age, was in an automobile accident in which she was hurt enough to require medical treatment. She was later approached by an
Sperry Ford sold a car to Bowling when Bowling was only 16 years old. Once Bowling had paid the full purchase price in cash, Sperry turned over the car and the certificate of title. After driving the
Quality Motors, Inc., refused to sell a car to Hays because he was only 16 years old. However, Quality told Hays that they would sell the car to an adult and then show Hays how to transfer the title
Lonchyna enlisted in the U.S. Air Force while he was still a minor. Three times he applied for and received educational delays that put off the beginning of his tour of duty. The last time, he
Darwin Kruse was a construction worker. He was injured while working for the Coos Head Timber Company. Subsequent to the accident, Kruse signed an agreement with his employer that granted Kruse
Clear Channel Broadcasting, Inc., required Diane Ignazio to sign a new contract that included an arbitration clause under which she agreed that all grievances that she might have with Clear Channel
Cyberian Enterprises and BrandAid Marketing Corporation entered a deal under which Cyberian was supposed to purchase $21 million in Brand-Aid’s stock. Cyberian, however, did not have the funds
Shannon Audley, a professional model, signed an agreement before starting work on a photo shoot at Bill Melton’s studio. The agreement stated: “I, Shannon Audley, realize that working with wild
Judy Myers and the Terminix International Company entered a contract in which Terminix agreed to inspect Myers’s home and eliminate any termite problem found there. The service cost Myers an
New England Surrogate Parenting Advisors (NESPA) is a nonprofit organization the purpose of which is to match potential surrogate mothers with couples who are unable to have children of their own. In
In February 2011, the Egyptian people displayed their dissatisfaction with the government of Hosni Mubarak by demonstrating in Tahrir Square in Cairo and in the port city of Alexandria. The
A contract is said to be outside the statute if it must be in writing to show that the two objectives of the Statute of Frauds have been met. True/False
An administrator is a person who is named in a will to oversee the distribution of the estate of a deceased person according to the provisions outlined in the will. True/False
Agreements made in consideration of marriage must be in writing to be enforceable. True/False
Whenever an ambiguous term is found in a preprinted contract, that ambiguity is interpreted in favor of the party who wrote the contract. True/False
The principal objective is the main goal that the parties hope to accomplish by entering an agreement. True/False
Parol evidence is another term for written evidence. True/False
Written agreements must always be signed by both parties to the contract. True/False
Facsimile signatures are not acceptable in any state. True/False
A notary is required by law to read and understand all documents that he or she has witnessed. True/False
The E-Sign Act is a model act designed to deal with problems associated with cyber-commerce. True/False
The Uniform Electronic Transactions Act was passed by Congress to deal with the legality of electronic transactions. True/False
The UCITA is not in line with any of the provisions of the E-Sign Act or the UETA. True/False
What are the goals of the Statute of Frauds?
What contracts must be in writing under the Statute of Frauds?
What information must be in a writing under the Statute of Frauds?
What is the standard construction rule?
What are the exceptions to the parol evidence rule?
What is the best evidence rule?
What is the equal dignities rule?
What are the problems associated with cyber-commerce?
What are the latest cyber-commerce statutes?
Several identity theft victims filed a series of class action lawsuits against firms that had not made the changes required by the Fair and Accurate Credit Transactions Act (FACT) by the statutory
Harold Perdue entered an individually negotiated employment contract with Nicholas Paynter. Under terms of the contract, Perdue was to work for Paynter as a private investigator in Paynter’s newly
Meng, a vice-president at Boston University, resigned his position to protest what he regarded as the unethical and unprofessional behavior of the university’s president, John Silber, in
As part of an employment agreement, Bazzy orally promised to give Hall an option to buy 1,000 shares of company stock at $20 per share. Hall brought suit against the company when it refused to sell
Anna Wilson was assistant manager of a Montgomery Ward store. When Montgomery Ward announced that it would be closing the store, the manager quit, leaving Wilson in charge. A district manager orally
Curtis Hendrix orally agreed to compensate Beverly Spertell for services rendered in connection with their living together out of wedlock. Later, when suit was brought to collect the money, Hendrix
Lawson hired Konves to conduct extensive audits of her 87 boutiques, located throughout the United States. As part of the agreement, Lawson required Konves to spend one week at each boutique. Konves
Butler leased a certain piece of property from Wheeler with an option to purchase it at a later date. The agreement was handwritten and consisted of two separate documents, each listing part of the
Ray’s Motor Sales sold a mobile home to Hathaway. Before the written contract was signed, the salesperson told Hathaway that Ray’s would take care of any problems that Hathaway might have with
The Statute of Frauds was first introduced into the legal system in 1677 when Parliament created the Act for the Prevention of Frauds and Perjuries. The act outlined those contracts that had to be in
The cyber-revolution cannot be ignored by anyone who wants to succeed in business today. Manufacturers and sellers regularly use the Internet to advertise, to negotiate, and to send payments across
A third party who provides no consideration and owes no legal duty to the contracting parties is a done beneficiary. True/False
The principle of privity stopped many judges from establishing third party rights. True/False
Incidental and intended beneficiaries have the same rights. True/False
A delegation is the transfer of a contractual right. True/False
The equal dignities axiom has no application in the law of assignment. True/False
It is the responsibility of the assignor to give notice of the assignment to the obligor. True/False
The phrase “assignment of a contract” means the same thing as the phrase “assignment of rights.” True/False
Personal and professional duties are just as transferable as all other duties. True/False
Novations have been outlawed under the Restatement of Contracts. True/False
Very few contracts are discharged by performance. True/False
A condition precedent is a condition that requires the performance of certain actions before the other party to the contract is obligated. True/False
Tender of performance means to offer to do what one has agreed to do under the terms of the contract. True/False
A general release is a document expressing the intent of a creditor to release a debtor from the obligations of an existing and valid debt. True/False
With commercial impracticability, the purpose of a contract is undermined by an unforeseen event. True/False
Stopping a performance once it has begun is called abandonment of contractual obligations. True/False
Actual damages are also called compensatory damages. True/False
Punitive damages cover any expenses paid out by the innocent party to prevent further loss. True/False
The courts order specific performance only when the subject matter of a contract is unique or rare. True/False
What are the legal rights given to all beneficiaries?
What are the legal rights given to incidental beneficiaries?
What is involved in an assignment of rights and a delegation of duties?
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