BUSINESS 202 Law Final Exam Questions & Answers | (60 OUT of 60) Points | Graded A

Business Law Final Exam 60 Questions 54 T/F 6 Multiple Choices 1) Parol evidence rule. What that be an exclusionary rule of evidence? 2) Does the statue of frauds generally require that both par ties have to sign the writing? 3) Is a collateral promise an undertaking to be primarily liable for the principle debtor’s debt? 4) Suppose we have an employment agreement with K and A promises to work for K for the rest of his life, must this promise be in writing to be enforceable? 5) B sends f a letter offering to sell f’s car for 2500, f writes back he’ll take it, must they now get together and write a memorandum because this sale is for goods over $500? 6) Does the parol evidence rule apply to partially written agreements? FALSE 7) Does our parol evidence rule not prevent the use of evidence that a party would like to use to establish the defense to prove fraud, duress, or undue influence? 8) English statue of frauds and code provision, they differ in language, but do they have the same basic legal effect that an oral contract for certain identified situations is void? TRUE BUT UNENFORCEABLE NOT VOID? 9) Although the contract of purchase an undeveloped real estate lot, must be in writing to be enforceable, we have a contract to run power lines over someone else’s property does it have to be in writing or need not to be in writing? 10) Is the test under the one year provision of the statute of frauds is whether the terms of contract make it possible for performance to occur in one year? 11) There is a Surety ship provision and has that been interpreted to include promises made to a debtor? 12) Does the executor/administrator provision apply to promises of an executor of a deceased will to the deceased creditors? 13) Has the UETA been adopted by all of the states to give full effect to emergency transactions? 14) Is consideration required in order to have a valid assignment? 15) A enters contract w/ b, as a result of b’s fraud in the inducement, under the contract b has the right of payment $100, b assigns this right of $100 to c, may A assert the defense of fraud in the inducement to avoid paying C $100? 16) Is the right to property, other than money, such as goods, land, is that not assignable? 17) May a promisee and promisor provide that the benefits under a contract will never vest in a third person? 18) In a novation is the delegator discharged and the 3rd party becomes directly bound upon his promise to the obligee? 19) Suppose p has a contract to build a garage, he delegates the wiring job to a local electrician who improperly performs it, is P responsible even thou he delegated the duty? TRUE 20) Are contractual duties assignable? 21) In a 3rd party beneficiary contract do the 3rd parties rights arise after the contract is made? 22) Does UCC prohibit assignments of $5,000 or more? 23) Suppose Ron, owes L $500 due march 1. L assigns his right to the money to a different L, but neither the 1st L nor 2nd L notifies Ron. On March 1st, Ron pays 1st L $500. Is Ron not discharged from his obligation but is liable to the 2nd L for the money? 24) In an assignment or delegation, do the 3rd party rights or duties arise after the contract is made? 25) Does a breach of contract always discharge the injured party from performance under the contract? 26) Is the UCC substantially the same as the common law with regard to the doctrine of material breach of contract? 27) Has the restatement and the code made the traditional test of objective impossibility more stringent by requiring that the performance be actually of literally impossible? 28) Is there only one way to completely and legally discharge a contract? 29) May a contract condition the duty to accept and pay for the performance of the other party upon the approval of a 3rd party? 30) Is an implied in-fact condition and constructive condition the same? FALSE 31)Do concurrent conditions occur when mutual duties of performance are to take place simultaneously? 32) May an employee’s promise of providing ordinary personal services be enforced by an injunction against serving another employer? 33) In order to fully compensate plaintiffs in breach of contract cases, do courts always award punitive damages commensurate with the losses the plaintiff have suffered? 34) Does restitution involve a return of consideration or its value to the aggrieved party? 35) When there is a breach of contract is the non-breaching party required to take reasonable steps to lessen or mitigate the damages that he may sustain? 36) In a partnership is each party an agent of the partnership? 37) As a general rule may a person due through an agent whatever business activity the person may accomplish personally? 38) M employs T to purchase For M a suitable site for an office complex, T owns suitable site himself and sells it to M for the fair market value w/out disclosing to M that he is the owner of the land, has T fulfilled his duties to M because he sold the property at fair market value even through he failed to disclose his ownership of the property? 40) Because the authority that’s given to an agent by a principle is strictly personal does the agent’s death terminate the agency? 41) Does the fiduciary duty of an agent have a bearing on his ability to act on behalf of a competitor of his principle? 42) Does an agency agreement always have to be in writing? 43) All independent contractors are agents but does that mean all agents are independent contractors? 44) In general, a plumber hired to re-due the plumbing in a very nice building, is that plumber an independent contractor and an agent of the building? FALSE 45)According to the restatement, whether an agency relationship has been created it’s determined by using a subjective test? 46) Since the capacity to be a principle depends on the capacity of the principle to do the act himself can that person appoint an agent to act for him in the case he subsequently loses his mental capacity? 47) Is the purpose of agency relationship to allow principles to extend their business activities? 48) M makes a contract with B on behalf of a disclosed principle, if B breaches that contract, in general, M does or doesn’t have a right of action against B? 49) Upon termination of an agency, the agent actual authority ceases, does his apparent authority continue until actual notice of the termination is given to 3rd parties? 50) J writes a letter M, authorizing him to sell her boat and sends a copy of that letter to J who’s a prospective buyer. The next day, J writes M a letter revoking his authority to sell her boat but this time she doesn’t send a copy of the second letter to J. Although M has no actual authority to now sell the boat, does he continue to have apparent authority with respect to J? 51) If an agent extends his actually and apparent authority, the principle will not be bound but does that make the agent a party to the contract? 52) A in the present of B, tells T that A is B’s agent, in reality A had no authority, B hears the statement but doesn’t say anything, in reliance T ships the goods to B on A’s order, is B liable even thou no actual authority existed? 53) May an employer have criminal liability for the acts of his employee? 54) Does the second restatement provide that the death of a principle terminates all authority of an agent including apparent authority even thou no notice is given to 3rd parties? 55) Does the UCC refers to the manner and extent to which the respected parties to a contract have accepted successive tenders of performance by the other party without objection. 56) When would an agent normally be liable on a contract he makes with a 3rd party on behalf of a principle? 57) Under the 3rd restatement is an agent who represents an undisclosed principle discharged from liability if? 58) Who would be liable under the second restatement with regard to actual notice to a 3rd party of the termination of a agents authority to act on behalf of the principle? 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