Barbara orally agreed to sell Bobby some land for $500,000. Bobby paid Barbara the $500,000; Barbara gave Bobby the deed to the land. Bobby took possession of the land and began building a cabin on it. One month later, Barbara tried to retake possession of the land by arguing that the contract for the sale was invalid because it was oral, not written. Barbara sued Bobby to invalidate the contract and retake the land.Win, because the sale exceeded $500 so the contract must be written to be valid under the Statute of Frauds.Win, because all land contracts must be written.Lose, because the contract was fully executed Barbara cannot rescind the contract.Lose, because Bobby had begun building a cabin on the property, Barbara cannot rescind the contract.Julie and Jaime signed a business contract with a clause that provides that if a dispute arises they must submit to binding arbitration to resolve the dispute. After they had been doing business together for a year, a dispute arose under the terms of the contract. Rather than submit to arbitration, Julie filed a lawsuit against Jaime.

Most likely the court will:

• Hear the lawsuit because Julie cannot be compelled to submit to arbitration as she is constitutionally entitled to a jury trial if she requests a trial.
• Conduct a hearing then order a remedy without compelling Julie to submit to arbitration or to a jury trial.
• Compel Julie to submit to arbitration to resolve the dispute.
• Hear the lawsuit in a trial then compel Julie to submit to arbitration if Julie is not satisfied with the trial decision.

• Mediation might be more reasonable and appropriate than a trial in which of the following situations?
• A lawsuit challenging the constitutionality of a new state statute.
• A dispute between neighbors over a property boundary.
• An alleged theft of patio furniture from the patio of a house.
• None of the above situations are appropriate for mediation.

• Randy, while driving through Ohio to her home in California, accidentally lost control of his car and drove it through a window into a store owned by Ted. Ted sued Randy in an Ohio court for damages to his store.

Will the Ohio court likely be able to exercise jurisdiction over Randy?

• No, because Ohio has no in personam (personal) jurisdiction over Randy, and cannot exercise its long arm statute in cases involving automobile accidents.
• No, because Ohio has no in personam jurisdiction over Randy, and cannot justify minimum contacts in this case.
• Yes, Ohio can exercise jurisdiction in this case because there is a federal question involved due to the diversity of citizenship between the parties.
• Yes, because Ohio can assert in personam jurisdiction over Randy under the minimum contacts test.
• Assume a salesperson intentionally made one of the following statements (knowing that the statement was false) to a customer considering a purchase. Which statement could create liability for fraudulent misrepresentation if the customer made the purchase?
• In my opinion, this car is in flawless mechanical condition.
• This crane will probably lift about 10,000 pounds.
• This car is a real gem.
• This is an original painting by the artist, Pablo Picasso.

• Bart promised to buy his nephew, Jonathan, a new car so Jonathan sold his old car. Bart now refuses to buy Jonathan the car. Jonathan has a job that requires him to have a car to get to work. If Jonathan sues Bart to enforce the promise, the likely result is that the promise will:
• Be enforced under promissory estoppels because Jonathan reasonably relied on Barts promise, to her detriment.
• Not be enforced because Jonathan received money from the sale of his old car; if he also received the new car from Bart, he would be unjustly enriched.
• Be enforced because the car is a necessity for Jonathan and all contracts for necessities are binding and enforceable for all parties even if contract formation is flawed.
• Not be enforced as Barts promise was a gift to Jonathan.

• Which of the following activities may involve the use of a contract, and/or constitute a sales contract?
• Purchasing medications from a pharmacy.
• Hiring a contractor to make home repairs.
• Purchasing insurance policies from an insurance agent.
• Selling books to customers in a bookstore.
• All of the above.

• Peter and Kelly are architects and general partners of PK Designs. Peter and Kelly supervise Luke, an employee of PK Designs. As partners, Peter and Kelly
• Are personally liable for any and all tort(s) committed by Luke.
• May be liable for malpractice, but not torts, committed by Luke while Luke is working within the scope of his job at PK Designs.
• May be liable for torts committed by Luke while Luke is working within the scope of his job at PK Designs.
• Have no liability for any torts committed by Luke at any time.

• Naomi operates Go Sports, an athletic equipment shop, as a sole proprietor. Taxes on the business income are paid by
• No one, since it is a sole proprietorship there are no business taxes.
• Naomi as the sole owner.
• The state and federal government if Naomi holds a Small Business Administration loan acquired to start her business.
• The business entity of Go Sports, not Naomi personally.

• Which of the following elements is not necessary to prove the tort of negligence:
• Duty to conform to a certain standard of care
• Breach of duty
• Damages
• Intent of the party