LEGL 2700 Test 2 Jason Epstein
Questions and Answers | Latest Update |
2024/2025 | 100% Pass
What is the primary purpose of a bailment?
✔✔ The primary purpose of a bailment is to transfer possession of personal property from one
party to another for a specific purpose, with the expectation that the property will be returned.
How does employment-at-will affect termination of employment?
✔✔ Employment-at-will allows either the employer or the employee to terminate the
employment relationship at any time, for any reason, as long as it is not illegal.
In a contract, what is the significance of performance versus breach?
✔✔ Performance refers to fulfilling the obligations specified in a contract, while breach refers to
failing to meet those obligations, which may lead to legal consequences.
What does agency relationship involve in business transactions?
✔✔ An agency relationship involves one party (the agent) acting on behalf of another party (the
principal) in business transactions, with certain rights and responsibilities.
1
,What is the role of disclosure in real estate transactions?
✔✔ Disclosure involves providing potential buyers with all relevant information about a
property, including any known defects or issues, to ensure informed decision-making.
What is the parol evidence rule and its application in contract disputes?
✔✔ The parol evidence rule restricts the use of oral or external evidence to alter or contradict the
terms of a written contract that is intended to be a complete and final agreement.
How does liquidated damages differ from compensatory damages?
✔✔ Liquidated damages are predetermined amounts specified in a contract to be paid in the
event of a breach, while compensatory damages are calculated based on the actual loss suffered.
What is the importance of due diligence in business acquisitions?
✔✔ Due diligence is important in business acquisitions as it involves thoroughly investigating
and evaluating the target company to uncover any potential risks or issues before finalizing the
deal.
What is consideration in contract law, and why is it important?
2
, ✔✔ Consideration is something of value exchanged between parties in a contract, and it is
important because it provides the basis for the enforceability of the contract.
What is a covenant not to compete and when might it be enforceable?
✔✔ A covenant not to compete is a contractual agreement where one party agrees not to enter
into or start a competing business within a certain geographic area and time period; it is
enforceable if it is reasonable in scope and duration.
What does vicarious liability mean in the context of employer-employee relationships?
✔✔ Vicarious liability means an employer can be held legally responsible for the actions of
employees performed within the scope of their employment.
What is tortious interference and its potential consequences?
✔✔ Tortious interference occurs when one party intentionally disrupts another party's
contractual or business relationships, potentially leading to legal liability for damages.
What is fraudulent misrepresentation and how does it affect contracts?
3
Questions and Answers | Latest Update |
2024/2025 | 100% Pass
What is the primary purpose of a bailment?
✔✔ The primary purpose of a bailment is to transfer possession of personal property from one
party to another for a specific purpose, with the expectation that the property will be returned.
How does employment-at-will affect termination of employment?
✔✔ Employment-at-will allows either the employer or the employee to terminate the
employment relationship at any time, for any reason, as long as it is not illegal.
In a contract, what is the significance of performance versus breach?
✔✔ Performance refers to fulfilling the obligations specified in a contract, while breach refers to
failing to meet those obligations, which may lead to legal consequences.
What does agency relationship involve in business transactions?
✔✔ An agency relationship involves one party (the agent) acting on behalf of another party (the
principal) in business transactions, with certain rights and responsibilities.
1
,What is the role of disclosure in real estate transactions?
✔✔ Disclosure involves providing potential buyers with all relevant information about a
property, including any known defects or issues, to ensure informed decision-making.
What is the parol evidence rule and its application in contract disputes?
✔✔ The parol evidence rule restricts the use of oral or external evidence to alter or contradict the
terms of a written contract that is intended to be a complete and final agreement.
How does liquidated damages differ from compensatory damages?
✔✔ Liquidated damages are predetermined amounts specified in a contract to be paid in the
event of a breach, while compensatory damages are calculated based on the actual loss suffered.
What is the importance of due diligence in business acquisitions?
✔✔ Due diligence is important in business acquisitions as it involves thoroughly investigating
and evaluating the target company to uncover any potential risks or issues before finalizing the
deal.
What is consideration in contract law, and why is it important?
2
, ✔✔ Consideration is something of value exchanged between parties in a contract, and it is
important because it provides the basis for the enforceability of the contract.
What is a covenant not to compete and when might it be enforceable?
✔✔ A covenant not to compete is a contractual agreement where one party agrees not to enter
into or start a competing business within a certain geographic area and time period; it is
enforceable if it is reasonable in scope and duration.
What does vicarious liability mean in the context of employer-employee relationships?
✔✔ Vicarious liability means an employer can be held legally responsible for the actions of
employees performed within the scope of their employment.
What is tortious interference and its potential consequences?
✔✔ Tortious interference occurs when one party intentionally disrupts another party's
contractual or business relationships, potentially leading to legal liability for damages.
What is fraudulent misrepresentation and how does it affect contracts?
3
