(13) Bruce Banner approaches Tony Stark and proposes to work together to develop a new form of vehicle that will both drive and fly. Bruce suggests that he does research and development of the engine and electronical components if Tony Stark designs the shape of the car to be both aerodynamic and crash resistant. Tony is concerned about liability and taxes. What type of entity should Bruce suggest to convenience Tony to work together?

(a) Double sole proprietorship

(b) General partnership

(c) Limited partnership

(d) Limited Liability Corporation

(14) Peter Parker begins a business of swing through the city to deliver food. In the past when he swung through the city, he hit a few pedestrian (people walking) and injured them. He knows that he is likely to hit people again, so to avoid personal liability, he forms a S Corporation called "Swing and Eat, Inc." Swing and Eats, Inc. has its own bank accounts, holds annual meetings, keeps records, and adopts bylaws. In one of Peter's food delivery working for his own company, he swings through the city and hits the Black Widow injuring her. Black Widow sues Swing and Eat, Inc., but finds that there are not enough assets (money) to pay for her medical bill. So, Black Widow sues Peter Parker. What is the likely outcome?

(a) She wins. Black Widow is likely to be able to pierce the corporate veil because Swing and Eats, Inc. was only formed to avoid personal liability.

(b) She wins. Black Widow is likely to take advantage of the business judgment rule finding that forming a company to avoid personal liability is unlawful.

(c) She loses. Peter is allowed to form a corporation to avoid personal liability and there is nothing to suggest she can pierce the corporate veil.

(d) She loses. Peter Parker has superpowers and she is likely to lose in a physical fight between them.

(15) Thanos is defeated. The Avengers team decides to disband and the members throw away and abandon their equipment including the Iron Man's suit, Thor's hammer, Hawkeye's bow and arrow, Captain America's shield, etc. Peter Parker (also known as Spiderman) needs money to attend FIU so he collects all these items to sell them. Without doing anything else, Peter sells them online on eBay (online auction website). What type of entity is formed?

(a) Sole Proprietorship

(b) Partnership

(c) Limited Liability Company

(d) Corporation

(16) I Which of the following statement is not an offer to form a contract?

(a) "I am considering selling you my computer for $500."

(b) "I will sell you my computer for $500."

(c) "I am offering to sell you my computer for $500."

(d) "If you give me $500, you can have my computer."

(17) Spiderman, who is a student at FIU, sees the student newspaper and finds at advertisement that reads, "Great selections of computers for sale at the FIU Computer Store. Many computers are priced as low as $100." Spiderman immediately goes to the FIU Computer Store, goes straight to the clerk, and tells the store clerk, "I accept your offer for a computer for $100." How best can this transaction be described?

(a) Spiderman has formed a contract to buy a computer for $100.

(b) Spiderman has made an offer to buy a computer for $100.

(c) Spiderman has made a counteroffer to buy a computer for $100.

(d) Spiderman began the process of preliminary negotiations.

(18) Captain America loses his shield during his fight with the Winter Soldier. Despite his best efforts, he is unable to find it so he posts a reward sign offering $100 to the first person who finds and returns the shield. As Iron Man is flying through the city, he notices a shiny glimmer. When he flies down to investigate, he notices the shield and immediately returns it to Captain America. After returning the shield, Iron Man sees the reward sign and returns to Captain America to claim the reward. Is Captain America required to pay the reward?

(a) Yes. Iron Man found and returned the shield so he should be paid the reward.

(b) No. Iron Man left before asking for the reward so there is no obligation to pay.

(c) No. Iron Man was not aware of the offer so no contract could be formed.

(d) Yes. But Iron Man must first defeat Captain America in a hand-to-hand combat.

(19) Batman's Bat-mobile is broken and will not drive. He offers to Spiderman $1,000 to repair his Bat- mobile. Spiderman does not respond, but the following day, he comes to Batman's home and fixes the car. After the car is repaired, Spiderman asks to be paid by Batman. Which of the following is true?

a. Batman does not need to pay Spiderman anything.

b. Batman must pay Spiderman as he fixed her car per the term of the offer.

c. Batman does not need to pay Spiderman so long as Batman doesn't drive her car.

d. Batman and Spiderman are superheroes, so contract law does not apply to them.

(20) Batman has been fighting for justice for years in Gotham. Commission Gordon decides to hire Batman as a full-time police officer, and among his duties is to catch criminals. Gordon agrees to pay Batman a salary of $100,000 per year and Batman accepts. One night while Batman was not working, he read a wanted poster sign for the capture of Riddler with a reward of $100,000. The next day, while Batman was assigned to do training at the police station, he saw Riddler driving down the streets of Gotham in his signature Riddler vehicle. Batman climbs out the window and captures Riddler.

Which if the following is true regarding the capture of Riddler?

(a) Batman can collect the reward money because at the time of capture, he was assigned to training and not capturing criminals.

(b) Batman can collect the reward money because the wanted poster is a unilateral contract offer to anyone who captures Riddler.

(c) Batman cannot collect the reward money because he failed to accept the offer prior to capturing Riddler.

(d) Batman cannot collect the reward money because there is no consideration for capturing the Riddler.

(21) Taylor Swift is scheduled to have a concert at FIU. FIU has agreed to pay Taylor Swift $100,000 to perform and she accepted. Steve, a graduate student at the Engineering school who has not yet take the Business Law class, is so excited, he offers to pay Taylor Swift an addition $5,000 to perform at FIU. Taylor Swift finishes her concert and asks Steve to pay her. Which of the following statement is most accurate?

(a) Steve has no obligation to pay because Taylor Swift had a pre-existing obligation.

(b) Taylor Swift is not entitled to get paid because FIU's payment is sufficient consideration.

(c) Steve is obligated to pay because Taylor Swift had no pre-existing obligation to Steve.

(d) Students at FIU cannot form a contract with singers until they have taken Business Law class.

(22) Batman plans to open an athletic shoe store. Batman places an advertisement in the newspaper showing running shoes with the price of $100 per pair. Within hours after the store opens for business, the store is sold out of all the running shoes. In this situation, which of the following is more accurate?

a. Batman had made an offer to the people reading the ad.

b. Batman has made a contract with the people reading the ad.

c. Batman had made an invitation seeking offers.

d. Any customer who demands the running shoe is entitled to them at the $100 price.

(23) Read the preamble below.

THIS PURCHASE AND SALE AGREEMENT is by and between Peter Parker ("Spiderman"), a New York resident with his primary resident at 123 Uncle Ben Road, New York City, NY 10001, and Tony Stark, Inc. ("Iron Man"), a Pennsylvania limited liability company with its principal place of business located at 321 Avengers Ave, Philadelphia, PA 19111. The effective date of this Purchase and Sale Agreement ("Agreement") is March 17, 2022 and effective with signed by both parties. Throughout this Agreement, Spiderman and Tony Stark may be individually referred to as "Party" (as the context will determine which party) or collectively as "Parties."

What error, if any, is found in this preamble?

(a) Both Peter Parker and Tony Start were mis-abbreviated as "Spiderman" and "Iron Man," respectively.

(b) Peter Parker should have been identified as a sole proprietor as he is an individual.

(c) Tony Stark, Inc. entity type was mis-identified.

(d) The preamble is perfect in every way.

(24) In the same agreement identified in question 23, the recital reads as follows.

Whereas, Iron Man is the sole owner of a certain nano-technology suit ("Suit") that can be used by Spiderman to fight crime in New York City and is identified by serial no. 123-321 with a picture of the Suit attached as Exhibit 1;

Whereas, Iron Man desires to sell the Suit to Spiderman for the costs identified in this Agreement; and Spiderman desires to purchase the Suit from Iron Man for such price; and

Whereas, this Agreement sets forth the terms and conditions for the sale of the Suit to Spiderman.

Spiderman asks you [the student taking the test] if he signs the contract, whether he can use the Suit in outer space to fight Thanos if the recital states that the Suit is only to be used in New York City (see first recital). What answer can you give Spiderman that will be correct under contract law?

(a) The recital is part of the agreement and any restrictions found therein will have due force and effect.

(b) The recital is part of the agreement, but it does not have any legal bearing unless it is brought into the agreement by language that incorporates it into the agreement.

(c) By adding "whereas," an outdated anchor, the agreement is likely to be viewed as outdated and have no force and effect.

(d) The recital suggests that this agreement is not likely to have consideration so the agreement will have no force and effect, and Spiderman can use the Suit as he deems appropriate.

(25) In the agreement between Spiderman and Iron Man, Spiderman is concerned that after buying the Suit, the Suit may malfunction. Specifically, Spiderman read in the instruction manual that it has an "Instant Tickle" function that will try to tickle anyone who comes near the Suit (In the movie Endgame, it has "Instant Kill," but we won't bring that fact scenario to this exam). Spiderman is concerned that if the Suit malfunctions and activates the Instant Tickle function, many people will be upset and sue Spiderman for violating their rights not to be tickled. In which section of the Agreement would Spiderman put terms to protect himself from liability for malfunctions of the Suit built and sold by Iron Man?

(a) Preamble

(b) Recital

(c) Indemnification

(d) Boilerplate