Portrait Painting Contract Dispute

Sexual Harassment ADR. Jenny is very angry with her supervisor, Sleaze, at the Mexican fast-food restaurant at which she works which is owned by an international company located in Mexico. He has been making inappropriate sexual comments to her and other employees. Jenny decides to sue and retains a lawyer, Brice. Brice talks with the owners of the restaurant and is informed that Jenny signed an agreement to arbitrate any claims. Brice tells Jenny that it is completely up to her and that if she wishes, she can disregard the arbitration agreement and proceed to court. Jenny informed Brice about other employees who had complained about sexual harassment and entered into mediation agreements. Brice promises her that he will get copies of all documents and everything that was taken down by the court reporter at those mediations. He also tells Jenny in response to her question about the possibility of mediation in her case to forget it because mediation is pretty much the same thing as arbitration. What is the effect of the arbitration agreement on Jenny's ability to file an action in court? Multiple Choice The arbitration agreement would not affect Jenny's ability to file a court action in a sexual harassment case although it would bar her right to file a court action in other types of cases. The arbitration agreement would completely bar Jenny's ability to file a court action. By law the arbitration agreement may only delay for 60 days Jenny's ability to file a court action. By law the arbitration agreement may only delay for 6 months Jenny's ability to file a court action. More information is needed regarding the provisions of the arbitration agreement before it can be determined if it would bar an action in court.

Shaky Bicycles. Rhonda, an incorporator who filed the articles of incorporation for ABC Corporation, a corporation set up to sell bicycles, listed the correct town and street but incorrectly put the wrong street number in the document. Helen, a manufacturer of bicycle parts, had sold a number of parts to ABC Corporation. Unfortunately, the corporation was not making any profit, and Helen was not paid in a timely manner. Rhonda told her that the corporation was not liable because it was not validly formed due to the address mistake. Bernice, another creditor of ABC Corporation, also claimed that a shareholder of Shaky Bicycles, Slick, was personally liable to her. Bernice alleged that Slick committed fraud against her when he told her that ABC Corporation was making large amounts of money, that if she would only lend $*,* to the corporation he would marry her, and that the corporation would make so much money that she would be wealthy in six months. She made the loan, but the corporation has been unable to repay her. Slick told her that he is sorry, but that her only avenue of recovery is through the corporation. Which of the following is the likely result of Helen's attempt to hold the corporation liable for her debt? Multiple Choice She will likely be successful. She will be successful, but only if ABC Corporation renounces its de jure status. She will be successful, but only if ABC Corporation renounces its de facto status. She will be successful, but only if ABC Corporation has at least * shareholders. She will likely be unsuccessful.

A quorum is: Multiple Choice the maximum number of officers a corporation can have the minimum number of directors that must be present at each meeting of the board of directors the maximum number of directors that can be present at each meeting of the board of directors the maximum number of shareholders a corporation can have the minimum number of shareholders a corporation can have

Which of the following is not considered a business tort? Multiple Choice slander of title trade libel public disclosure of private facts disparagement slander of quality

A(n) ________blank results if an agent tries to represent and act on behalf of more than one principal in the same transaction. Multiple Choice fiduciary breach collaboration breach breach in conflict conflict of interest breach by overreach

Self-dealing occurs when directors or officers violate their duty of: Multiple Choice due care prudence reasonableness diligence loyalty

Med-arb is a dispute resolution process in which the parties agree to start out in arbitration and, if the arbitration is unsuccessful on one or more points, to move on to mediation. Group startsTrue or False

Which is the most difficult part of establishing the defense of assumption of the risk? Multiple Choice Showing that the plaintiff assumed the risk of the actual harm suffered Showing that the defendant was aware that the plaintiff assumed the risk Showing that the plaintiff was aware of applicable law Showing that the plaintiff signed the contract assuming the risk without duress Showing that the defendant was either contributorily or comparatively negligent (depending on the jurisdiction in which the case is tried)

An outside director is one who: Multiple Choice is an officer of the corporation is an employee of the corporation does not have any post-secondary education is not an officer or an employee of the corporation serves as a director for a foreign corporation

Machine Malfunction. Bruno, the president of a corporation operating workout facilities, convinced the board of directors to approve a large purchase of a type of fitness machine called "Perfect Body." Bruno had carefully investigated the machine and did a presentation to the board on its purported benefits. Unfortunately, after the purchase, it was announced that "Perfect Body" was actually a very dangerous machine that should not be used. The manufacturer of "Perfect Body" went bankrupt, and the corporation lost $*,* on the purchase of the machines. The shareholders are furious and want to sue Bruno and the directors. The board of directors agrees to allow Frances, the ringleader of the shareholders, to purchase stock of the company at below its fair market value. She purchases a considerable amount of stock on that basis, but says that the shareholders plan to continue with an action against Bruno and the board members. Under which of the following should Bruno and the board of directors defend themselves in an action brought by shareholders for harming the corporation? Multiple Choice The Superior Judgment Rule The Research and Investigation Rule The Business Judgment Rule The Rule of Corporate Integrity There is no defense.

Which of the following is a duty owed by the principle to the agent? Multiple Choice Duty of notification Duty of accounting Duty of reimbursement and indemnification Duty of performance Duty of loyalty

if you had to pick one

In contracts other than those governed by the Uniform Commercial Code (UCC), which of the following is/are required for a writing to be considered sufficient under the statute of frauds? Multiple Choice Identification of the parties to the contract Identification of the subject of the agreement Identification of the law applicable to the contract Identification of the parties to the contract, identification of the subject of the agreement, and identification of the law applicable to the contract Identification of the parties to the contract and the subject of the agreement, but not the law applicable to the contract

When may a court rule that parol evidence might be admissible to further the court's understanding of an agreement? Multiple Choice When a court determines that a written agreement represents a complete and final version of the agreement When a court determines that a written agreement does not represent a complete and final version of the agreement When a court determines that there is disagreement between the parties over performance of the agreement When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable When a court determines that neither party failed to obtain counsel to determine if signing the agreement was advisable

Puppy Woes. Sam promised to sell Linda a Welsh Corgi puppy for $* but backed out of the deal. Linda sued Sam in state court for breach of contract. Linda asked for a jury in her complaint. During jury selection, one juror, Ann, said that she did not think they could be fair to Linda because Linda did not appear to be a dog lover. Linda asked that Ann not hear the case, and the judge excused Ann. Linda also decided that another juror, Sandy, looked at her in a grumpy manner so she asked the judge to excuse that juror from serving. The judge did so. After the jury was chosen, Linda made a statement to the jury, as did Sam. Linda then called to the witness stand a friend of hers, Brenda, who heard the discussion held between Linda and Sam regarding the purchase of the puppy. Brenda testified under questioning by Linda that she heard Linda say that she would pay $* for the puppy and that she also heard Sam say that he would sell the dog for that amount. Unfortunately for Linda, Brenda also testified in response to questioning by Sam that Sam distinctly told Linda that he would only sell the puppy to her if Linda came with cash for the puppy within seven days. Linda did not show up with the money for ten days and Sam had already sold the dog to someone else. The judge ruled in favor of Sam. The challenge to the juror who seemed grumpy is referred to as a(n): Multiple Choice Peremptory challenge. Voluntary dismissal. Stipulated challenge. Involuntary dismissal. Perfunctory challenge.

Torts are civil wrongs that typically arise from a breach of contract. Group startsTrue or False

Under what circumstance(s) may an arbitration award be set aside under the Federal Arbitration Act? Multiple Choice Only when the arbitrator failed to make a final and definite award Only when the award was the basis of fraud Only when the arbitrator displayed bias When the arbitrator failed to make a final and definite award, the award was the basis of fraud, or the arbitrator displayed bias None of these, since the United States Congress repealed the Federal Arbitration Act in * as part of its "Contract with America" legislative initiative

Which of the following may be assigned even in the presence of an anti-assignment clause? Multiple Choice Assignments made by operation of law Assignments for the right to receive monetary payments Assignments for the right to receive damages for a breach of contract to sell goods or services Assignments made by operation of law and assignments for the right to receive monetary payments, but not assignments for the right to receive damages for a breach of contract to sell goods or services Assignments made by operation of law, assignments for the right to receive monetary payments, and assignments for the right to receive damages for a breach of contract to sell goods or services

Nasty Break-Up. Harold wants to purchase a lot next door to Sarah's home that is owned by Sarah. Harold knows Sarah will not sell the lot to him because they dated in the past and had a nasty break-up. Harold agrees with Alice that Alice will purchase the lot from Sarah for him. Alice and Sarah reach an agreement and enter into a contract whereby Sarah is to sell the lot to Alice for a price within the scope of Alice's authority. Alice tells Sarah nothing about her plan to later transfer the lot to Harold. Before title to the lot is transferred to Alice, Harold tells Alice that he no longer wants the lot. Alice tells Sarah about Harold. Sarah tells Alice that as far as she is concerned, Alice has bought the lot. Sarah says that she plans to move anyway and really does not care whether Alice or Harold ends up with the lot. She just wants her money. Which of the following is true regarding whether Harold is liable to Alice for the cost of the lot if Alice pays Sarah the purchase price? Multiple Choice Harold is liable to Alice for the cost of the lot. Harold is liable to Alice for the cost of the lot, but only if the contract between Harold and Alice expressly stated that he would reimburse her for the cost of the lot. Harold is not liable to Alice for the cost of the lot. Harold can avoid liability to Alice, but only if he can establish that unexpected circumstances caused him to refuse to purchase the lot from her.

An individual who lacks contractual capacity may not hire an agent to make contracts on his or her behalf. Group startsTrue or False

An intended beneficiary can enforce her rights to a contract but only once the rights mature. Group startsTrue or False

Company X hires Cheryl to enter into contracts on behalf of Company X. What type of relationship is this? Multiple Choice Principal-agent General partnership Employer-independent contractor Limited partnership Agency by estoppel

If a third party is aware that an agent is making an agreement on behalf of a principal, but the third party is unaware of the identity of the principal, the principal is classified as a partially disclosed or a(n) ________blank principal. Multiple Choice unidentified undisclosed veiled constructively extant secret

Cat Chaser. Annette, who is angry because her neighbor William allows his dog to chase her cat, decides that she wants to get even. She moves a number of farm animals into her backyard and begins playing music at all hours of the night. She also steals a nice lawn chair off William's deck. She intends to keep the chair. Annette further took a rake off William's deck that she plans to return after she finishes raking her leaves. William did not give her permission to take the rake. William is unhappy about the whole situation and wants to sue. What claim would William have against Annette for taking the lawn chair? Multiple Choice Trespass to personal property Conversion Private nuisance Negligence

Bill contracts with Judy to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Bill's duty to Judy, if any? Multiple Choice Bill has no duty to Judy if she did not expressly object to the delegation. Bill has no duty to Judy, regardless of whether she objected to the delegation. Bill continues to be contractually bound to Judy to ensure that her car gets washed. Bill continues to be contractually bound to Judy to ensure that her car gets washed, but only if the contract expressly prohibited delegation. Bill continues to be contractually bound to Judy to ensure that her car gets washed, unless he already paid Paul for the job.

A fiduciary is a person who has a duty to act primarily for their own benefit. Group startsTrue or False

Venue is determined by: Multiple Choice State statute. The trial judge. The trial jury. The United States Constitution. Case law.

Partial performance cannot override the statute of fraud’s requirement for a written agreement. Group startsTrue or False

A(n) ________blank tort occurs when the defendant commits an intentional act on the person, property, or economic interest of another. Multiple Choice criminal quasi-criminal intentional negligence strict liability

Nasty Break-Up. Harold wants to purchase a lot next door to Sarah's home that is owned by Sarah. Harold knows Sarah will not sell the lot to him because they dated in the past and had a nasty break-up. Harold agrees with Alice that Alice will purchase the lot from Sarah for him. Alice and Sarah reach an agreement and enter into a contract whereby Sarah is to sell the lot to Alice for a price within the scope of Alice's authority. Alice tells Sarah nothing about her plan to later transfer the lot to Harold. Before title to the lot is transferred to Alice, Harold tells Alice that he no longer wants the lot. Alice tells Sarah about Harold. Sarah tells Alice that as far as she is concerned, Alice has bought the lot. Sarah says that she plans to move anyway and really does not care whether Alice or Harold ends up with the lot. She just wants her money. Which of the following is true regarding whether Alice is personally bound on the contract with Sarah? Multiple Choice Alice is not personally bound, because she was acting Harold's behalf. Alice is personally bound, unless she can establish that Sarah would not have sold her the lot if she had known that Harold was involved. Alice is personally bound, unless she can establish that Harold has the funds with which to pay Sarah. Alice is not personally bound unless Harold has legally filed for bankruptcy. Alice is personally bound.

An unaffiliated director is an outside director who: Multiple Choice does not have business contacts with the corporation serves as director of a foreign corporation serves as director for a private corporation does not own any stock in any company does not have stock in the company they serve as director

Under the equal dignities rule, contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent. Group startsTrue or False

A tort that provides ranchers and farmers with a cause of action when someone spreads false information about the safety of food product is: Multiple Choice fraudulent misrepresentation trade libel slander of title food disparagement intentional interference with contract

Which of the following is correct regarding the statute of frauds? Multiple Choice It relates to fraudulent contracts. It addresses illegal contracts. It exists at the federal level. It requires that all contracts be in writing. Some states have statutes of frauds created by judicial decision rather than by legislation.

An agency relationship that arises when an individual misrepresents herself as an agent for another party and that party accepts the unauthorized act is an: Multiple Choice implied agency agency by default agency by ratification expressed agency agency by circumstance

Onyx agrees to sell his tractor to Blaze for $*,*. Onyx assigns his right to receive payment from Blaze to Buzz. Buzz is the: Multiple Choice Donor beneficiary Debtor beneficiary Delegator Assignor Assignee

Which of the following is true regarding the status of an agent as a fiduciary? Multiple Choice Although a principal is a fiduciary, an agent is not. An agent is only a fiduciary if the principal and agent agreed in a written contract that the agent would be a fiduciary. An agent is only a fiduciary if the principal and agent agreed by written or oral contract that the agent would be a fiduciary. An agent is only a fiduciary to the principal if a transaction of $*,* or more is involved. An agent is a fiduciary of the principal.

The Securities and Exchange Commission (SEC) has established that any shareholder who owns more than ________blank worth of stock in the corporation can submit proposals to be included in proxy materials. Multiple Choice $*,* $*,* $*,* $*,* $*