LW121 Final Exam

Question 1

Sid and Barry are having lunch together at the local pizzeria. Barry is upset because he lost his brand new iPod earlier that day. Sid tells Barry that he has an extra iPod Nano he got for Christmas that's still in the box. Sid tells Barry that since they're friends, he'll let Barry have it for $50. Barry says: "That's fantastic, Sid, you've made my day. I'll stop by your room tonight with the cash." Based on this, which of the following statements is true?

Accepted Answer

d. All of the above.

Answer

a. Sid made an offer to sell the iPod to Barry.

Answer

b. Barry accepted Sid's offer.

Answer

c. A contract has been entered into.

Question 2

In the case of Mesaros v. U.S. Mint that we studied in class, which of the following statements best describes the legal analysis in the Court's decision:

Accepted Answer

b. The advertisement received by the Mesaros was a solicitation to make an offer to buy. It was not an offer to sell the coins by the Mint.

Answer

a. The Mint was liable to the Mesaros for breach of contract because the Mint didn't satisfy the commemorative coin orders on a 'first come, first served' basis.

Answer

c. The Mint is not liable to the Mesaros because the Mint is an instrumentality of the government so it can't be sued.

Answer

d. The Mint was liable to the Mesaros for breach of contract because a contract was formed when the Mesaros sent in their order form.

Answer

e. The Mesaros made a counteroffer by sending in their order form which the Mint accepted so the Mint is liable to the Mesaros for breach of contract.

Question 3

On Monday, Bob sends Sally a written offer to buy Sally's sailboat for $1,500. On Wednesday, Bob is hit by a bus and is killed. Sally sends Bob a written acceptance of the offer on Friday (without knowing that Bob has been killed). Which of the following statements best describes the situation:

Accepted Answer

c. Bob's death automatically terminated the offer so Sally's 'acceptance' is of no legal effect.

Answer

a. Since Sally didn't know about Bob's death when she sent the acceptance, a valid contract has been formed.

Answer

b. Since there was an offer and acceptance in this case, a contract has been formed.

Answer

d. Bob's surviving relatives are legally bound to buy the sailboat from Sally.

Answer

e. If a reasonable person would have known of Bob’s death before Friday, then there is no
contract formed.

Question 4

Seller was trying to sell his house for $250,000. On January 5, 2012, Buyer went to the Post Office and sent Seller a signed written offer to buy Seller’s house for $235,000 (which Seller received on January 8, 2012). On January 9, 2012, Seller went to the Post Office and sent a letter to Buyer stating that Seller was willing to sell the house to Buyer for $245,000 (which Buyer received on January 11, 2012). On January 12, 2012, Buyer went to the Post Office and sent Seller a letter stating his agreement to buy the house for $245,000 (which Seller received on January 14, 2012). Under these circumstances, which of the following is true:

Accepted Answer

a. Buyer and Seller entered into a contract on January 12, 2012.

Answer

b. Buyer and Seller entered into a contract on January 14, 2012.

Answer

c. No contract has been entered into because Seller made a $245,000 counteroffer to Buyer.

Answer

d. Buyer and Seller entered into a contract on January 5, 2012.

Answer

e. Buyer and Seller entered into a contract on January 9, 2012.

Question 5

Seller says to Buyer, "I'll sell you my car for $10,000." Buyer says, "I accept your offer but will pay $9,700." As a result, at this point:

Accepted Answer

e. The only open offer is for $9,700.

Answer

a. Seller must sell car to Buyer if Buyer gives Seller $9,700.

Answer

b. There are two open offers.

Answer

c. If the value of the car is really $9,700, then Seller is obligated to sell the car for this amount.

Answer

d. The only offer open is for $10,000.

Question 6

EliMart ran a newspaper ad in the February 13, 2011 edition of the New Haven Register “Huge selection of Juicy Couture Bling Hoodies – Regularly $125, special price $50 on February 14, 2011.” Millie is a huge fan of Juicy Couture and, having seen the ad in the newspaper, was looking forward to buying one of these hoodies at the sale price. When she got to the store bright and early on February 14, 2011, she couldn’t find any of the Bling hoodies at the sale price. The store clerk apologized and told her they didn’t have any more of those hoodies in stock. She showed her a Champion Brand hoodie with the Bobcat logo which was in stock and cost only $65. Millie is not interested in the Bobcat hoodie (she already has three of them in her closet). Based on these circumstances, which of the following is true?

Accepted Answer

b. Millie has not entered into a contract with EliMart but she is entitled to a ‘rain check’ under Connecticut consumer protection law.

Answer

a. EliMart has entered into a contract with Millie for the purchase of a Juicy Couture Bling Hoodie for $50.

Answer

c. Because the store clerk has offered Millie a substitute hoodie, EliMart has satisfied all of its obligations under contract law and under consumer protection law.

Answer

d. Millie has entered into a contract with EliMart for the purchase of a Juicy Couture Bling Hoodie at the sales price of $50 and she is entitled to a ‘rain check’ under Connecticut consumer protection law.

Answer

e. EliMart offered to sell the Juicy Couture Bling Hoodie for $50 to all readers of the newspaper ad.

Question 7

Which of the following statements is true regarding an advertisement?

Accepted Answer

c. An advertisement is generally considered an invitation to make an offer to buy.

Answer

a. An advertisement is always considered an offer to sell which can be accepted or rejected by
the customer.

Answer

b. The customer can accept the advertiser's offer to sell just by furnishing the advertised price.

Answer

d. If the advertisement is sent by the U.S. government it is considered an offer that can be
accepted by replying to the ad.

Answer

e. If the advertised product is necessary for a person’s life and welfare, then the advertisement is
considered an offer to sell.

Question 8

Bill Maher stated on The Tonight Show that he would donate $5 million to a charity of Donald Trump’s choice if Trump proved that he is not the ‘spawn of his mother having sex with an orangutan.’ Trump formally accepted Maher’s offer by sending a copy of his birth certificate showing that he is indeed “the son of Fred Trump, not an orangutan” and he demanded the $5 million for charity. Maher ignored Trump’s demand. Trump then sued Maher for breach of contract. Based on this, which of the following statements is true?

Accepted Answer

a. If reasonable people would conclude under these circumstances that Maher was just joking when he made this $5 million offer, then no contract has been formed.

Answer

b. Whenever there is an offer and an acceptance, a contract is formed so Maher is contractually obligated to donate $5 million to a charity of Trump’s choice.

Answer

c. Trump accepted Maher’s offer and a contract was formed when he placed a copy of his birth certificate in the U.S, mail.

Answer

d. If Trump can prove that he really thought Maher was making him a serious offer, then Trump will be able to enforce this contract.

Answer

e. No contract is formed because Trump made Maher a counteroffer by sending him a copy of his birth certificate.

Question 9

Sally was out driving her red Mazda Miata one summer day enjoying some serious top-down touring. She happened to see her friend Barbie in town and Barbie said:

"Wow, I'd sure love to have a car like that! If you're ever interested in selling that little roadster, please let me know!"
Sally replied: "Actually, I'm buying a new BMW convertible so I'll sell you this car for $4,200 if you're interested."
Barbie was a little taken aback with this offer and told Sally: "Well, let me think about it and get back to you."
Later that evening, Sally was looking at her old photo album and realized how much fun she's had in that Miata and that she doesn't really want to sell it at all. She called Barbie and explained to her: "I've changed my mind about the Miata. I'm not going to sell it. See you at the Club." Barbie responded: "Oh, what a shame, I was just about to call you to finalize the deal."

Under these circumstances which of the following is true?

Accepted Answer

e. Sally effectively revoked her offer to sell the Miata. No contract was formed.

Answer

a. Sally can not revoke her offer in such a short time. She is required to leave her offer open for
a reasonable period of time.

Answer

b. If Barbie can prove that she really planned to call Sally to accept the offer before she got
Sally's phone call, then a contract was formed.

Answer

c. There was an offer and acceptance. A contract was formed.

Answer

d. Barbie rejected Sally’s offer when she said she would think about it.

Question 10

Which of the following statements is true regarding an auction with reserve:

Accepted Answer

a. The bidder is making an offer to buy.

Answer

b. The auctioneer is making an offer to sell.

Answer

c. The bidder is accepting the auctioneer's offer to sell.

Answer

d. The bidder is making an offer to sell.

Answer

e. None of the above.

Question 11

Fred owns an antique shop specializing in antique maps. Jack, a customer, admires an antique map of New Haven County that doesn't have a price tag on it. Fred tells Jack he can have the map for $100. Jack says, "No thanks, that's way too much! I won't pay that!" The next day, Jack reconsiders and goes to the shop and tells Fred he'll take it for $100. Which is true at this point?

Accepted Answer

b. Fred can tell Jack that the price is now $150.

Answer

a. Under the mirror image rule, a contract was formed.

Answer

c. Jack can force Fred to take the $100 in exchange for the map.

Answer

d. If $100 is the objectively reasonable value of this map, Fred must accept Jack's offer to take it
for $100.

Answer

e. Jack's acceptance of the $100 offer is effective only if Fred has not yet revoked his offer.

Question 12

Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres. Later, Robert refuses to buy any land from Wally. Wally sues Robert. Which of the following statements is true?

Accepted Answer

d. Wally loses because this agreement is too indefinite since it does not identify which 40 acres
are to be sold.

Answer

a. Wally wins and has to let Robert choose exactly which 40 acres he is buying.

Answer

b. Wally wins and can decide exactly which 40 acres he is selling.

Answer

c. Wally wins. There was an offer and an acceptance.

Answer

e. Wally loses because Robert's reply was a counteroffer.

Question 13

Barbara the Buyer entered into a signed written contract on January 2nd with Stella the Seller for the purchase of Stella’s 2005 red Mazda Miata for a purchase price of $3,500. The contract provided for the closing to take place on January 15th (in other words, the money would be paid by Barbara and the Miata delivered by Stella on January 15th). On January 3rd Barbara changed her mind about buying Stella’s car and she phoned Stella to tell her she wouldn’t be going ahead with the purchase. Which of the following is true?

Accepted Answer

c. Barbara is not legally entitled to terminate this contract.

Answer

a. If Barbara has an objectively good reason for changing her mind, she has the legal right to terminate the contract.

Answer

b. Because Barbara notified Stella of her decision within three (3) days after signing the contract, this is a valid termination.

Answer

d. Stella has the right to terminate the contract because she is the seller but Barbara does not
have this right.

Answer

e. Either party can terminate this contract under the mailbox rule.

Question 14

Sally offered to sell her bicycle to Bob for $100. Bob said that $100 was too much, but that he would give her $75. Sally said no. Then, Bob said that he would pay Sally the entire $100. Which of the following statements best describes this situation?

Accepted Answer

e. C and D.

Answer

a. Sally has effectively revoked her offer

Answer

b. Bob has effectively accepted Sally's original offer.

Answer

c. Bob's statement that he would give Sally $75 operated as a rejection of Sally's original offer.

Answer

d. Bob's statement that he would give Sally $75 operated as an offer by Bob.

Question 15

An offer is terminated upon which of the following:

Accepted Answer

e. All of the above

Answer

a. A counteroffer

Answer

b. A rejection

Answer

c. A timely revocation of the offer.

Answer

d. Death of the person making the offer.

Question 16

Bill sends the following e-mail to Sid: "Would you be willing to sell me your mustang convertible for $5,000?" Sid replies by e-mail: "I couldn't sell that car for less than $7,500." Bill immediately replies by e-mail: "It's a deal. I'll be over with a cashier's check for $7,500 tomorrow." Has a contract been formed?

Accepted Answer

b. No contract was formed since Sid's e-mail was not an offer to sell his car.

Answer

a. A contract was formed through acceptance of a counteroffer.

Answer

c. A contract was formed because Bill accepted Sid’s offer by performance.

Answer

d. A contract was formed through offer and acceptance.

Answer

e. Under the mirror image rule, no contract was formed.

Question 17

The requirement that the terms of the acceptance be the same as those of the offer is the:

Accepted Answer

d. Mirror image rule.

Answer

a. Objective theory of contracts rule.

Answer

b. Subjective theory of contracts rule.

Answer

c. Implied terms rule.

Answer

e. Firm offer rule.

Question 18

In the case of Leonard v. Pepsico, which was the basis for the raisin board assignment, which of the following statements best describes the Court's conclusion:

Accepted Answer

a. Mr. Leonard lost because the general rule is that an ad is not an offer to sell the advertised
product. It is a solicitation to make an offer to purchase.

Answer

b. Mr. Leonard lost because he sent a check instead of Pepsi points to obtain the military harrier jet.

Answer

c. Mr. Leonard won because he accepted Pepsi's offer and Pepsi must pay him the cash value of a
military harrier jet.

Answer

d. The Court concluded that it did not have enough evidence to make a ruling.

Answer

e. Mr. Leonard won based on the subjective theory of contracts.

Question 19

Seller says to Buyer Bob: "I'll sell you my bicycle for $400." Buyer Bob says: "Great, but I can only pay you $200 now. I'll pay you the other $200 next Friday and pick up the bicycle then." Seller responds: "Well, I wouldn't do this for everyone, but since I know you’re a man of your word, Bob, I’ll take that deal.” Buyer Bob and Seller shake hands to show their agreement. Which of the following statements is true:

Accepted Answer

b. Seller and Buyer have entered into a contract.

Answer

a. There is no contract between Buyer Bob and Seller because Buyer Bob's initial response was a counter offer.

Answer

c. If Seller can find a different buyer who will pay him $400 all in cash, he can revoke his offer to
Buyer Bob.

Answer

d. If Buyer Bob changes his mind, he does not have to buy Seller's bike.

Answer

e. There is no contract between Buyer Bob and Seller under the mirror image rule.

Question 20

In the case of The City of Everett v. Estate of Sumstad that we studied in class, the Supreme Court of the State of Washington ruled that:

Accepted Answer

a. The Mitchells as high bidder at the auction are entitled to the $32,207 because under all the circumstances, a reasonable person would conclude that the auction was for the sale of the safe and its unknown contents.

Answer

b. The Estate of Sumstad was entitled to the $32,207 because the terms of the will govern.

Answer

c. The Mitchells as high bidder at the auction are entitled to the $32,207 because they genuinely
intended to buy the safe as well as its contents.

Answer

d. The Estate of Sumstad and the Mitchells are each entitled to one-half of the $32,207.

Answer

e. The City of Everett was entitled to the $32,207 under the state law governing ownership of hidden
valuables.

Question 21

On May 1, 2010, the Dean of the Business School of Boston University sent Professor Smith a letter offering him a job as professor of business law. The letter included all of the details of the appointment including salary, benefits, job responsibility and a start date of August 1, 2010. Professor Smith immediately replied by letter on May 3, 2010: "Great. I accept your offer of employment but the start date needs to be August 8, 2010. My mother is having a serious operation the first week of August and I need to be with her." When Mom's operation was re-scheduled to July, Professor Smith wrote the Dean on June 1, 2010 to say that he would be starting on August 1st. Based on these facts, which of the following statements is true?

Accepted Answer

a. No contract was formed.

Answer

b. A contract was formed as soon as the Dean received Smith's acceptance letter dated May 3, 2010.

Answer

c. A contract was formed when Smith mailed his June 1st letter to the Dean.

Answer

d. The Dean of the Business School is under a pre-existing duty to enter into this contract.

Answer

e. A contract was formed under the unforeseen circumstances exception.

Question 22

Brian and Sally have entered into a written contract in which Brian has agreed to buy Sally’s antique desk for $10,000. The closing is scheduled to take place two weeks after the signing of the contract. Three days before the scheduled closing, Sally dies. Because of Sally’s death the following is the legal effect on the contract:

Accepted Answer

d. The contract is legally binding on Sally’s estate which is bound to complete the transaction in
accordance with the signed contract.

Answer

a. The contract would only be terminated if both Brian and Sally were to die.

Answer

b. Sally’s estate has the option to terminate the contract without penalty.

Answer

c. If the antique desk is objectively worth $15,000, then the contract is not legally binding on Sally’s
estate.

Answer

e. Death of either party to a contract always terminates the contract.

Question 23

Mary, age 16, buys a car from Friendly Auto Dealers.  She pays $1,500 for the car.  It turns out that the car is really worth $2,500. Friendly wants to disaffirm the contract and get the car back. Which of the following best describes this situation?

Accepted Answer

b. Because Mary is a minor, this contract is voidable by Mary.

Answer

a. Because Mary is a minor, this contract is void and Friendly can get back the car by paying Mary $1,500.

Answer

c. Because Mary has driven the car, the contract cannot be disaffirmed.

Answer

d. Because Mary is a minor, this contract is void and Friendly can get the car back by paying Mary
$2,500.

Answer

e. If Friendly disaffirms the contract within a reasonable period of time then the contract can be
rescinded by Friendly.

Question 24

Bob, a 16-year-old minor, buys a snowmobile from Sam, an adult, for $2,000. Bob uses it for 8 months and then advertises the snowmobile for sale for $3,000 but has not yet sold it. At this point:

Accepted Answer

c. Bob can still disaffirm the contract.

Answer

a. Either Bob or Sam can disaffirm the contract.

Answer

b. Bob has ratified the contract by trying to sell the snowmobile.

Answer

d. Bob has ratified the contract by using the snowmobile for 8 months.

Answer

e. Bob cannot disaffirm the contract because 8 months is not a reasonable time.

Question 25

Ralph overhears Stella’s plans to go skydiving over spring break. Ralph doesn’t really know Stella but, figuring it’s worth a chance, Ralph rushes out and buys an insurance policy for $100,000 on Stella’s life. Stella does in fact die as a result of jumping out of the airplane. Under these circumstances, which of the following is true?

Accepted Answer

e. Under no circumstances will Ralph be legally entitled to recover the insurance proceeds since he does not have an insurable interest in Stella.

Answer

a. Since the insurance company issued the policy, Ralph will be able to recover the insurance proceeds.

Answer

b. The only basis for the insurance company to withhold payment to Ralph would be if he failed to pay the premium due on the policy.

Answer

c. If Ralph can prove that he wasn’t responsible for Stella’s death, he will be able to recover the insurance proceeds.

Answer

d. This insurance policy is unconscionable so Ralph is not legally entitled to recover the insurance proceeds.

Question 26

Bob and Sally are keen supporters of their college varsity sports teams. Bob is convinced that the men’s basketball team this year will make it into the Final Four (semi-finalist round of the national tournament). Sally doesn’t think the men’s basketball team has a strong enough team to do that well this year. Sally is convinced that the women’s rugby team will win the national tournament this year. They agree on the following bets:

Bet #1:If the men’s basketball team this year does make it into the Final Four, Sally will pay Bob $100. If the team does not make it into the Final Four, Bob will pay Sally $100.

Bet #2: If the women’s rugby team does win the national tournament this year, Bob will pay Sally $250. If the team does not win the national tournament this year, Sally will pay Bob $250.

It turns out that the women’s rugby team wins the national tournament but the men’s basketball team does not make it to the final four this year. Based on this information, which of the following statement(s) is/are true?

Accepted Answer

c. Neither of these bets are legally enforceable because gambling contracts are illegal unless specifically authorized by statute.

Answer

a. If the men’s basketball team had made it into the Final Four, a Court would have enforced the terms of Bet #1 issuing a judgment against Sally in the amount of $100.

Answer

b. Since the women’s rugby team won the national tournament, a Court will enforce the terms of Bet #2 and issue a judgment against Bob in the amount of $250.

Answer

d. Because the amounts wagered are less than $500, both these gambling contracts are legally enforceable.

Answer

e. a and b.

Question 27

The salesman at Best Buy tells a customer that the newest iPhone is the ‘coolest’ smartphone on the market. This statement is:

Accepted Answer

a. Puffery.

Answer

b. Fraud.

Answer

c. Misrepresentation.

Answer

d. Unconscionable.

Answer

e. Stare Decisis.

Question 28

Mark was shopping for a used car in February. He went to AutoMegaWorld and test drove a used 2007 Tiger XL. While driving the car, he looked at the climate control center and noticed that the temperature lever was marked "cold" at one end in blue and "hot" in red at the other end. Mark assumed that the "cold" marking meant that the car had air conditioning. Mark wanted to finally have an air-conditioned car. He did not discuss air conditioning in any way with the salesperson. Mark bought the car. Later, when Mark was showing his new car to friends, one of them pointed out to him that the car was not air conditioned. Which
of the following statements best describes this situation?

Accepted Answer

Mark cannot rescind the contract because this is a unilateral mistake by Mark.

Answer

Mark can rescind the contract on the basis of bilateral mistake.

Answer

Mark can rescind the contract on the basis of unilateral mistake.

Answer

Mark can rescind the contract on the basis of fraud by the salesperson.

Answer

Mark cannot rescind the contract because this is a contract for the sale of goods in excess of $500.

Question 29

Seller is showing Buyer around his gas station property in Southern California.  The property is on the market for $500,000. Seller tells Buyer that the gas station building is structurally sound even though Seller knows that the building suffered serious (but hidden) damage from a minor earthquake. The Buyer believes Seller’s assurances about the structural soundness of the building. The Buyer does not care about the structural soundness of the building because he plans to demolish the building to put up a Starbucks. Buyer purchases the property for $500,000 and in the process of demolishing the building realizes that the Seller was a lying toad – in fact, the building was not structurally sound. It probably would have fallen down within a year due to (hidden) damage from the earthquake. If Buyer sues Seller under these circumstances, which of the following is true:

Accepted Answer

c. Buyer will lose because he did not rely on the Seller’s statement regarding the structural soundness
of the building.

Answer

a. Buyer will win because Seller made a false statement of material fact.

Answer

b. Buyer will win because this is a unilateral mistake of fact.

Answer

d. Buyer will lose under the pre-existing duty rule.

Answer

e. Buyer will lose because this is a bilateral mistake of fact.

Question 30

Consolidated Metals, Inc. (“CMI”), a multi-national corporation, entered into a signed contract with Star Logistics, Inc., (“Star”) another large corporation with world-wide operations. Under the contract Star agreed to provide warehousing services for CMI’s just-in-time inventory requirements. The contract contained a provision limiting Star’s liability for contract damages to $100,000. When $1,000,000 worth of CMI’s inventory was damaged as a result of Star’s breach of contract, CMI sued Star claiming damages of $1,000,000. Star defended against the claim on the basis of the limitation of liability provision in the contract and offered CMI $100,000 as full payment for any and all contract damages. CMI claimed that the limitation of liability provision in the contract was unconscionable and therefore unenforceable. Under these circumstances, the most likely result is:

Accepted Answer

b. The limitation of liability provision in the contract is enforceable because it was freely entered into by sophisticated corporations.

Answer

a. The limitation of liability provision in the contract will not be enforced because it is unconscionable.

Answer

c. The limitation of liability provision in the contract is enforceable because it results from oppression and surprise.

Answer

d. The limitation of liability provision in the contract will not be enforced due to unforeseen circumstances.

Question 31

Hilda Homeowner enters into a signed written contract with Calvin Carpenter to add a 15 foot by 15 foot deck to the back of her house. The contract price for the work is $4,750 including all material and labor. They agree that the work will be done while Hilda is vacationing in New Hampshire during the first two weeks of July. Calvin completes the deck in the first week of July and leaves his invoice for $4,750 in Hilda's mailbox. When he hadn’t been paid for some time, Calvin called Hilda suggesting that he stop by the house that evening to collect payment for the deck. Hilda agreed that Calvin should come over and that evening they had the following discussion:
“Hope you had a nice vacation, Hilda. All I need is my check for $4,750 and I’ll be on my way.”
“Calvin, I’m not pleased with the work you’ve done. It looked a little on the small side when I first saw it so I asked my son to measure it up for me. It turns out the deck you built is only 12 foot by 12 foot. That’s a lot smaller than our contract called for.”
“Gee, Hilda, I’m awfully sorry about that. I guess I just got a little confused. Tell me, how much are you willing to pay for the deck?”
“Calvin, you’re a real nice boy and I want to be fair to you. How would it be if I pay you $3,000 for the job?”
“Hilda, that’s fine with me. I’ll take the $3,000.”
Hilda paid Calvin the $3,000 and they signed a mutual release agreement in which they each agreed not to sue the other about any aspect of the transaction. If Calvin sues Hilda to recover the additional $1,750, the likely result would be:

Accepted Answer

Calvin loses because Hilda is under a pre-existing duty to pay him the full $4,750.

Answer

Calvin wins because both parties are bound to the terms of the original agreement.

Answer

Calvin wins because this was a unilateral mistake on his part.

Answer

Calvin loses because this is an enforceable settlement of an amount in dispute known as an accord and satisfaction.

Answer

Calvin wins under the leading object rule.

Question 32

Pauline is a philanthropist and regularly donates large amounts of money to charities in her town, Middlesborough. She is on the Board of Trustees of the Middlesborough Symphony Orchestra and for ten years has donated to the annual pledge drive. In 2004 she agreed to contribute $20,000 to the Symphony and signed a Pledge Card agreeing to make the contribution in two installments, $10,000 on May 1, 2004 and $10,000 on November 1, 2004. The Symphony did not make any specific plans in reliance on this pledge. Pauline made the first payment. In the summer, Pauline had an argument with several other members of the Board of Trustees and she resigned from the Board. (The argument had nothing to do with Symphony business.) Pauline sent a letter to the Symphony advising them that she had found a much better use for the $10,000 and would not be making payment on the balance of the pledge. The remaining members of the Board of Trustees are disappointed with this decision and are considering suing Pauline for the $10,000 remaining contribution. If they bring suit against Pauline, the most likely result will be:

Accepted Answer

b. Pauline will win the suit and will not have to make the $10,000 contribution.

Answer

a. Pauline will not have to make the $10,000 contribution and she can recover the $10,000 she already contributed.

Answer

c. Pauline will lose the suit and be required to make the payment because she signed a Pledge Card
and a signed written agreement is always enforced by the Courts.

Answer

d. Pauline will win the suit only if she contributes this $10,000 to another worthy cause.

Answer

e. Pauline will lose the lawsuit because this is an illusory promise.

Question 33

Grandfather promises his 18 year old grandson that if grandson refrains from using cocaine or other illegal drugs while he is in college, grandfather will give him $10,000 when he graduates from college. They both sign a written contract documenting this agreement. Grandson has, in fact, refrained from using cocaine or other illegal drugs throughout college and at graduation he asks grandfather for the promised $10,000. Under these circumstances, which of the following is true?

Accepted Answer

c. This contract is not enforceable because it is not supported by consideration since grandson’s
promise was to refrain from taking illegal actions (using illegal drugs).

Answer

a. This contract is enforceable under the pre-existing duty rule.

Answer

b. This contract is not enforceable under the pre-existing duty rule.

Answer

d. This contract is enforceable because grandson’s promise is an agreement to forbear from taking
action he had a legal right to do.

Answer

e. This contract is enforceable because it is in writing and signed by both parties.

Question 34

Mrs. Smith was pleased to see little Mary Jackson standing outside the supermarket selling Girl Scout Cookies. Mary asked Mrs. Smith if she would like to buy 4 boxes of shortbread cookies again this year and Mrs. Smith said yes: "put me down for my usual 4 boxes, Mary." Mary thanked Mrs. Smith and told her that the money would help the Girl Scout Foundation in its charitable projects. Mary told Mrs. Smith that she would deliver the cookies in 3 weeks and would collect the money then. When Mary came back with the cookies, Mrs. Smith told her that she had changed her mind now that the doctor had told her that her blood sugar was too high. She wouldn't buy the cookies. Which of the following statements is true under these facts:

Accepted Answer

a. Mrs. Smith entered into a legally enforceable contract to purchase the cookies.

Answer

b. Mrs. Smith is not legally obligated to purchase the cookies because the Girl Scout Foundation is a
charitable organization.

Answer

c. Since Mary is 12 years old, Mrs. Smith can disaffirm the transaction due to lack of contractual
capacity.

Answer

d. If Mrs. Smith had notified Mary that she didn't want to purchase the cookies within 1 week after
their meeting, this would constitute a valid and timely rescission of the contract.

Answer

e. Mrs. Smith is not legally obligated to purchase the cookies under the doctrine of promissory
estoppel.

Question 35

Bob the builder enters into a signed written contract with Hilda Homeowner. The contract provides that Bob will build a family room addition to Hilda's house. The contract price is a flat fee of $18,500 with all the work to be completed by September 1. On August 15, Bob asks to meet with Hilda. He tells her that he has more work than he can handle for the month of August. He tells Hilda that if she wants the work done by September 1, she will have to pay him an additional $2,500. Hilda is very upset about this but doesn't want to delay the construction project past September 1. She agrees and enters into a signed written modification agreement with Bob in which she agrees to pay him an additional $2,500 if the construction is completed by September 1. Which of the following is true:

Accepted Answer

b. The second contract at the additional price of $2,500 is unenforceable because it is not supported by consideration.

Answer

a. Because it was unforeseen that Bob would demand more money from Hilda, under these circumstances, the second contract for the additional $2,500 will be enforced.

Answer

c. The second contract at the additional price of $2,500 is unenforceable under the doctrine of promissory estoppel.

Answer

d. Hilda was under a pre-existing duty to pay Bob the additional $2,500 in accordance with the modification agreement so she is legally obligated to pay the additional $2,500 to Bob.

Answer

e. The second contract is enforceable as an exculpatory clause.

Question 36

Owner enters into a signed written contract with Contractor to excavate a cellar for Owner’s s new house for a stated price of $10 per cubic yard of material excavated. Although they haven’t specifically discussed it, both Owner and Contractor have based this pricing on an assumption that there would not be bedrock beneath the surface (since bedrock had not been encountered before in this part of town). After Contractor starts work he unexpectedly encounters solid bedrock and advises Owner of this fact. Under these circumstances:

I. If Owner and Contractor enter into a signed written modification agreement increasing the contract price to $13 per cubic yard of material excavated, the modification agreement is enforceable under the unforeseen circumstances exception to the pre-existing duty rule.
II. If Owner and Contractor do not agree to the terms of a modification to the original contract, Contractor can rescind the contract based on bilateral mistake of fact.

Accepted Answer

c. I and II

Answer

a. I only

Answer

b. II only

Answer

d. Neither I nor II

Question 37

Seller and Buyer negotiate for the sale of a house on 10 acres of land.  They orally agree on a price of $200,000, with a $5,000 payment to be made in 3 days and the balance to be paid in 60 days at the closing when the deed will be delivered. Buyer sends Seller a letter in which all these terms are included, along with $5,000 in cash. The letter is signed by Buyer. With Seller's permission, Buyer begins construction of a 1,000 square foot addition to the house prior to closing. Seller does not complete the transaction and is in breach of contract. Buyer seeks to enforce the contract. Under these circumstances:

Accepted Answer

d. All of the above.

Answer

a. The Seller can make a good argument that an oral agreement to sell real estate is not enforceable under the Statute of Frauds.

Answer

b. The Buyer can make a good argument that he has partially performed by making a partial payment of the purchase price and by making improvements on the land so the Court should enforce the oral agreement.

Answer

c. The Buyer can make a good argument that he justifiably relied on the Seller's promise, that injustice would result from a failure to enforce the oral agreement, and under the doctrine of promissory estoppel the Court should enforce the oral agreement.

Question 38

Amanda, a recent university graduate, needed a car to get to her new job. Andy of Andy’s Auto World agreed to make a $7,500 car loan to Amanda to finance her purchase of a car if Amanda would provide a creditworthy guarantor for the car loan. To help Amanda obtain the loan for the car, Ted, a friend, orally told Andy that he would pay the loan if Amanda didn’t. If Amanda stops paying the loan and Andy sues Ted to recover the balance due on the loan, the most likely result would be:

Accepted Answer

a. Andy will lose because a guaranty agreement is required to be in writing to be enforceable.

Answer

b. Andy will lose because an agreement for the sale of goods in excess of $500 is required to be in
writing to be enforceable.

Answer

c. Andy will win because Ted orally agreed to guaranty Amanda’s loan.

Answer

d. Andy will win because Amanda’s failure to make the loan payments was an unforeseen
circumstance.

Answer

e. Andy will lose because he was under a pre-existing duty to guaranty the loan.

Question 39

Which of the following contracts is not required to be in writing under the Statute of Frauds?

Accepted Answer

b. A contract to buy a couch for $450.

Answer

a. A contract to buy a farmhouse for $350,000.

Answer

c. A contract to buy a car for $6,000.

Answer

d. A three-year employment contract.

Answer

e. A five-year lease of a warehouse.

Question 40

Christopher Smith was looking to sell his home in Cheshire, CT for $500,000. John Doe had looked at the house and decided he wanted to buy it. Doe contacted Smith over the phone and in their conversation they made an agreement for the sale of the house for $480,000. Soon after, Doe sent Smith a signed letter detailing the terms of their agreement. About three weeks later, Smith entered into a contract with Bill to sell the house for $495,000. If Doe sues Smith for breach of contract, which of the following is true:

Accepted Answer

c. The contract between Smith and Doe is unenforceable, because there is no writing signed by Smith.

Answer

a. The contract between Smith and Doe is enforceable, because Doe had partly performed the contract by sending the letter to Smith.

Answer

b. Because Smith and Doe had agreed on the terms over the phone, there is a valid enforceable contract.

Answer

d. The contract between Smith and Doe is enforceable, because Doe made an offer to purchase the
house before Bill did.

Answer

e. The contract between Smith and Doe is unenforceable because it is against public policy.

Question 41

What is the general goal of awarding compensatory damages in a breach of contract situation?

Accepted Answer

c. Place the non breaching party in the same position as if the contract had been fully
performed.

Answer

a. Punish the breaching party for the wrongdoing.

Answer

b. Modify the contract terms to be more equitable to the parties.

Answer

d. Require the breaching party to actually do what was called for in the contract.

Answer

e. Place the non breaching party in the same position he was in before the contract was entered
into.

Question 42

On February 1, Barbara Buyer entered into a legally binding enforceable written contract with Suzy
Seller agreeing to buy Suzy's 1994 red Mazda Miata on February 15 for $2,500. On February 3, Suzy sends Barbara an e-mail advising Barbara that she has changed her mind and will not be selling her Miata to Barbara. Which of the following statements is/are true?

Accepted Answer

e. B and D

Answer

a. Since Suzy notified Barbara of the cancellation of the contract within 3 business days, Suzy is not in breach of contract.

Answer

b. Suzy is in breach of contract.

Answer

c. Since Barbara has not paid Suzy a deposit, Suzy can cancel the contract at any time.

Answer

d. If Barbara can find a substantially similar 1994 red Mazda Miata to buy for $2,500 from
someone else and if she has not incurred any expenses as a result of Suzy's change of mind then Barbara is not entitled to collect any damages from Suzy (except possibly nominal damages).

Question 43

Landscaper Larry enters into a legally binding enforceable contract to grade and re-seed Owner’s back yard for $1,700. Owner pays Landscaper Larry a deposit of $1,000 prior to the start of work. Landscaper Larry starts the grading but stops work without completing the job and is in breach of contract. Owner contacts five other landscapers and gets quotes to complete the job. The quotes range from $850 to $975. Owner hires the substitute landscaper with the lowest quote ($850) to finish the work. What amount of damages, if any, is Owner entitled to recover from Landscaper Larry based on these facts?

Accepted Answer

b. $150

Answer

a. $850

Answer

c. $125

Answer

d. $1,700

Answer

e. $1,000

Question 44

Painter enters into a legally binding enforceable contract to paint the exterior of Owner's home for $2,500. Owner has paid Painter a $1,500 up-front deposit and agrees to pay Painter the balance upon completion of the job. Painter stops work without completing the job and is in breach of contract. Owner pays his cousin $1,800 to finish the job. Owner chose not to use a reputable professional painter who gave him a quote for $1,400 to finish the job. What amount of damages, if any, is Owner entitled to recover from Painter based on these facts?

Accepted Answer

a. $400

Answer

b. $0

Answer

c. $1,500

Answer

d. $2,500

Answer

e. $800

Question 45

George the general contractor enters into a signed written contract with Olivia the owner in which he agrees to install a swimming pool in Olivia's backyard. The contract price is $30,000 inclusive (George is responsible for paying for all supplies and all subcontractors from the $30,000 contract price.) In setting this $30,000 contact price, George has calculated all of his costs and has included $8,000 for his profit. Before work starts, Olivia finds out that she has been laid off from her job. She tells George not to start the job. George is able to cancel all of his orders with his suppliers at no cost. Similarly, the two subcontractors he has lined up to help on the job tell him not to worry, they'll have no problem finding other work to fill the time slots. Although he tried as hard as any reasonable man could, George is unable to replace this project. Under these circumstances, what damages, if any, is George entitled to recover from Olivia:

Accepted Answer

e. $8,000.

Answer

a. $0.

Answer

b. $38,000.

Answer

c. $22,000.

Answer

d. $3,000

Question 46

Stuart Student has entered into a legally binding enforceable written contract with Professor Gedge agreeing to build a stone wall in the front of her flower garden. The contract provides that Stuart will complete the job by May 15th at a cost of $750. Stuart never turns up for work. Finally on June 1st, Stuart calls Prof. Gedge and tells her that he can't do the job at all. Which of the following statements is true?

Accepted Answer

c. Stuart is in breach of contract and can be held liable for contract damages.

Answer

a. If Stuart explains to Prof. Gedge that his best friend needed Stuart to drive him to California for experimental treatment for a serious disease, Stuart will not be in breach of contract.

Answer

b. Since Prof. Gedge hadn't paid Stuart a deposit, Stuart's failure to perform is not a breach of contract.

Answer

d. If Stuart had called Prof. Gedge before May 15th to tell her that he didn't want to do her
project, then he would not be in breach of contract.

Question 47

Adam has entered into a legally binding enforceable contract to buy a house in Michigan for a price of $450,000. Before the closing, he learns that he will be transferred to Connecticut for work and doesn't know what to do. His realtor advises him to go ahead and purchase the Michigan house and then he can put it right back on the market to re-sell it. Which of the following statements is true?

Accepted Answer

c. In making his decision, Adam should estimate the damages he could be held liable for if he were to breach the contract. With that information, he should consider negotiating a settlement with the seller to agree to mutually terminate the contract.

Answer

a. Adam has absolutely no option but to purchase the Michigan house since he entered into a signed written contract.

Answer

b. Because he has such a good reason for not wanting to buy the Michigan house, Adam will not be held liable for breach of contract.

Answer

d. If Adam can prove that he didn’t know about the job transfer when he signed the real estate contract with the seller, he can legally terminate the contract without the seller’s consent.

Question 48

Homeowner and Contractor enter into a signed written contract which provides that Contractor will build a sunroom off of Homeowner's family room at an agreed upon price of $9,000. The home is in West Hartford, Connecticut and Contractor is registered as a home improvement contractor as required by Connecticut Home Improvement Contractor Statutes. The contract complies with the statutory requirements for a home improvement contract EXCEPT THAT the contract does not contain the required notice of the Owner's Three-Day Cancellation Right. Contractor finished the project and did an excellent job. He presented his bill for $9,000 to Homeowner but Homeowner has not paid it and shows no signs of paying it. Contractor has sued Homeowner to collect the $9,000. Based on the governing Home Improvement Contractor Statutes, the result would be:

Accepted Answer

b. The contract is unenforceable so Contractor cannot recover anything.

Answer

a. Contractor can enforce the contract and recover the $9,000 contract price as compensatory damages.

Answer

c. Contractor is entitled to recover double damages in the amount of $18,000 due to the
customer's bad faith in refusing to pay the balance due.

Answer

d. Contractor can only recover one-half of the contract price ($4,500) because the contract does
not contain a notice of the Owner's Three-Day Cancellation Right.

Question 49

In the Barrett Builders v. Miller case which we studied in class, a Connecticut home improvement contractor performed home improvements for a homeowner. The contractor’s written contract did not contain a notice of the owner’s three-day cancellation right. The contractor conceded that under the Connecticut Home Improvement Act, the contract was unenforceable. However, the contractor sought recovery under a common law doctrine. Which of the following statements best describes the Connecticut Supreme Court’s decision in this case?

Accepted Answer

d. The homeowner won the case because the Court held that a contractor cannot recover on a claim of restitution when the contract does not comply with the requirements of the statute.

Answer

a. The contractor won the case because the homeowner could not prove that she planned to cancel the contract within three days after signing the contract.

Answer

b. The homeowner won the case because she proved that the contractor installed shoddy cabinets in her remodeled kitchen.

Answer

c. The contractor won the case because the homeowner acted in bad faith when she stopped payment on a check with which she paid the contractor.

Question 50

Which best describes assumption of the risk in a negligence case?

Accepted Answer

c. If the plaintiff knowingly and willingly subjected herself to an obvious risk this is a defense
to a claim of negligence.

Answer

a. Under the common law doctrine of res ipsa loquitor, a plaintiff is presumed negligent unless
the risk is assumed by the defendant.

Answer

b. The plaintiff is more at fault than the defendant in causing the accident.

Answer

d. The defendant is not liable if the plaintiff's injuries resulted from gambling or some other
immoral activity.

Question 51

Steve slips on a broken bottle of ketchup in the local WalMart. In order to prevail in a claim of negligence against WalMart, Steve will be required to prove:

Accepted Answer

e. All of the above.

Answer

a. The store owed Steve a duty of care.

Answer

b. The store failed to exercise reasonable care under all the circumstances by allowing the
ketchup to be on the floor.

Answer

c. It was reasonably foreseeable that an injury such as this could occur under these circumstances

Answer

d. Steve suffered an injury as a result of the store’s failure to exercise reasonable care.

Question 52

Which of the following situations would create liability under the traditional common law doctrine of Strict Liability for Ultra Hazardous Activities?

Accepted Answer

a. A pet chimpanzee owned by Sally attacks Sally's best friend Mavis.

Answer

b. A contractor fails to complete construction of the Tower of Death for Six Flags over New
England by the contract deadline.

Answer

c. Suzie loses control while water skiing at Lake George and crashes into the dock.

Answer

d. Stuart has too much to drink at Leon’s Sports Bar and while driving home he crashes into a
police station.

Answer

e. All of the above.

Question 53

Susan was employed as a junior baker at Teddy's Bakery and Cafe ("Teddy's").  In the middle of her shift, her boss (Teddy) asked Susan to drive over to the local farmer’s market to pick up his order of fresh blueberries. Teddy’s does not have any company cars. Susan drove her own car over to the farmer’s market. On the way there, Susan was distracted because she was thinking how yummy the blueberry muffins and the blueberry pies would be. Not paying attention to her driving, Susan ran a red light and crashed into Bob’s car. Bob was injured and his car was totaled. Based on these facts, which of the following is/are true:

Accepted Answer

d. A and B.

Answer

a. Bob has a strong claim against Susan on a theory of negligence.

Answer

b. Bob has a strong claim against Teddy’s on a theory of vicarious liability known as respondeat superior.

Answer

c. Since Susan was not driving a company car, Teddy’s cannot be held liable for Susan’s car
accident.

Question 54

Stuart went to Barnes and Noble and paid $15 for Justin Timberlake’s newest album on CD. He knows that his friend Peter would also really like to have this music. Which of the following is true:

Accepted Answer

c. If Stuart listens to the CD, decides he doesn’t like the music and gives the CD to Peter (without making any copies of the music), there is no violation of copyright law.

Answer

a. If Stuart burns a copy of the CD to his laptop and then he sells the original CD to Peter for less than $1.00, there is no violation of copyright law.

Answer

b. If Stuart burns just one song from the CD to his laptop and then he gives the original CD to Peter, there is no violation of copyright law.

Answer

d. Under the first sale doctrine, since Stuart legally purchased this music, he can do anything he wants with the CD.

Question 55

Professor Jones made multiple copies of four entire chapters from a book called "How to Study Better.” There are nine chapters in total in the book. Jones handed a copy of these four chapters to each of her fifty students (free of charge). The author of the book believes the professor has violated his copyright. Under these circumstances, which of the following is true?

Accepted Answer

b. The professor has infringed the author's copyright.

Answer

a. Since the professor did not make any money from this act, she has not infringed the author's copyright.

Answer

c. If the professor had scanned the four chapters into a pdf form and posted the pdf on
Blackboard (to which only her students have access) then the professor would not be
infringing the author's copyright.

Answer

d. The professor has not infringed the author's copyright because under the fair use doctrine, a
professor is legally entitled to make unlimited copies of any author's work, in whole or in
part, so long as the materials are used solely for teaching purposes.

Answer

e. The professor has infringed the author’s trademark.

Question 56

Which of the following scenarios is an example of copyright infringement:

Accepted Answer

d. All of the above.

Answer

a. Prof. McNamara is very impressed with a textbook written by Barbara Sullivan. To
supplement the textbook McNamara is currently using in her college course, the professor makes 100 copies of five chapters of Sullivan’s eight-chapter book. The professor distributes these copies to her 100 students.

Answer

b. Martha borrows a CD from the public library and burns a copy of the CD to her laptop.

Answer

c. Jake uses a free peer to peer file-sharing website to download 20 tracks of his favorite
Beatles' music onto his MP3 player.

Question 57

Which of the following is currently subject to copyright protection?

Accepted Answer

c. A watercolor of Sleeping Giant Mountain painted last month by Alice Artist.

Answer

a. The fact that there are 169 cities and towns in the State of Connecticut.

Answer

b. A poem that was written 150 years ago.

Answer

d. The names and addresses listed alphabetically by name in the local white pages phone
directory.

Answer

e. The rules of baseball.

Question 58

Cabot University in Indiana provides high-speed internet service to its students, faculty and administrators. The students are thrilled to have this high-speed service because it makes it so much easier to download content from the internet. Suzy Student, a freshman, frequently used a peer-to- peer file sharing website to share her music and movies with other users. She also regularly downloaded music and movies made available by others through the file sharing website. Under these circumstances, which of the following statements is true?

Accepted Answer

b. Suzy Student faces potential liability for copyright infringement and the University faces
potential liability for contributory copyright infringement.

Answer

a. Suzy Student is not liable for copyright infringement because she is under the age of 21.

Answer

c. Because no money changed hands, there is no claim for copyright infringement.

Answer

d. Cabot University cannot be held liable for the actions of one of its students because it is a
non-profit educational institution.

Answer

e. Suzy Student has a valid defense to copyright infringement if she can prove that she truly
didn’t know that her actions violated copyright laws.

Question 59

Feist Publications, an advertising and marketing company, plans to publish an area-wide phone directory containing both paid advertising and an alphabetical listing of the names, addresses and phone numbers of all residents in the area. Because it is easy and cheap to do so, Feist plans to use the information in the current white page listings of the phone book published by the local public utility phone company in its own phone directory without obtaining the phone company's permission. The advertising section of Feist's phone directory will be approximately 60% of the entire directory (the residents' phone numbers will take up about 40% of the directory). Under these circumstances, which of the following is true?

Accepted Answer

a. Feist is legally permitted to use the information in the phone company's white page directory without their permission because facts are not subject to copyright protection.

Answer

b. Because the information taken from the phone company's white page directory constitutes less than one-half of Feist's publication, it will not be considered copyright infringement.

Answer

c. Feist will be liable to the phone company for copyright infringement.

Answer

d. Under the doctrine of res ipsa loquitor, Feist will be liable to the phone company for damages
resulting from the unauthorized use of the phone company's white page listings.

Question 60

Which of the following are exclusive rights of the holder of a copyright?

Accepted Answer

e. All of the above.

Answer

a. The right to reproduce (copy) the work.

Answer

b. The right to prepare derivative (or adaptive) works.

Answer

c. The right to distribute the work.

Answer

d. The right to publicly perform the work.

Question 61

Robert started a chain of ‘Sprinkles’ cupcake bakeries in California that also sells its ‘Sprinkles’ products in national chain stores including Williams-Sonoma. (There are several Williams-Sonoma stores in Connecticut.) Robert’s company has registered its trademark ‘Sprinkles’ with the U.S. Patent and Trademark Office for use with bakery goods and retail store services. Recently Josephine opened a neighborhood cupcake shop in New Haven which she calls ‘Sprinkles.’ Josephine was not aware of Robert’s California company or its registered trademark. Based on these facts, if the California company sues Josephine for trademark infringement, which of the following is true:

Accepted Answer

b. In order to win its trademark infringement claim, the California company will have to prove that it holds a valid trademark to ‘Sprinkles’ and that the use of 'Sprinkles’ by Josephine’s cupcake store creates a likelihood of confusion for customers who could think that the New Haven bakery is affiliated with the California company.

Answer

a. In order to win its trademark infringement claim, the California company only needs to prove that it holds a valid trademark for ‘Sprinkles’.

Answer

c. If Josephine can prove that she was unaware of the California company’s registered trademark for ‘Sprinkles’, the trademark infringement claim will be lost.

Answer

d. The California Company can’t win this trademark infringement case against Josephine because the California company does not operate any stores in Connecticut.

Question 62

Which of the following marks is a fanciful trademark?

Accepted Answer

b. Nyquil for the cold medicine

Answer

a. Dixwell Avenue Coffee Shop for a new coffee shop.

Answer

c. Best Buy for a chain of electronics store.

Answer

d. Blue Diamond for nuts.

Answer

e. Prince for a tennis racket.

Question 63

Sylvia hasn’t done her term paper for English 320. Her friend Barbara took this course with a different professor last year and got an ‘A’ on her term paper. Sylvia asks Barbara if she will e-mail her the paper she got an ‘A’ on so Sylvia can change the name on it and submit it as her own. Barbara happily e-mails Sylvia the term paper. Sylvia changes the name on the paper, hands it in and gets an ‘A’ on it. Both Sylvia and Barbara are current students at Quinnipiac University. Under these circumstances, which of the following statements is/are true?

Accepted Answer

e. A and B.

Answer

a. By submitting someone else’s work as her own, Sylvia is in violation of Quinnipiac’s Academic Integrity Policy.

Answer

b. By providing her work to Sylvia knowing that Sylvia plans to change the name on it and submit the work as her own, Barbara is in violation of Quinnipiac’s Academic Integrity Policy.

Answer

c. So long as Sylvia is not caught submitting another student’s work as her own, her actions are entirely ethical.

Answer

d. Sylvia is in violation of Quinnipiac’s Academic Integrity Policy but Barbara is not.

Question 64

Ernie the entrepreneur is looking to open a trendy coffee shop that he plans to call 'Java Joe's Joint'. He needs to raise some money and forms a general partnership to operate the business. Amy, Ben, Caroline and Dan come on board as partners in the Java Joe Partnership with Ernie and each of the 5
partners invests $50,000. Each partner owns a 20% interest in Java Joe Partnership but only Ernie actively involved in the operation of the coffee shop. The Partnership enters into a 5 year lease for space to operate the coffee shop. After 9 months it is clear that the coffee shop is unsuccessful and shuts its doors. If the landlord sues the Partnership and each of the partners for breach of the lease, which of the following is true?

Accepted Answer

a. The landlord can recover damages for breach of the lease from the assets of the Partnership and/or from the five partners.

Answer

b. The landlord can recover damages for breach of the lease from the assets of the partnership but the individual partners are not personally liable for the judgment.

Answer

c. Because Ernie was the driving force in this project, he will be personally liable for damages for breach of the lease but the other partners are not liable.

Answer

d. Unless the partners personally signed a guarantee of the lease, they can not be held liable for damages for breach of the lease.

LW121 Final Exam

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