Part 2-A: Multiple Choice Questions with Explanations - Business In Law read, answer and explain 1. Ma Rainey made the following offer to Levee: "I will pay you $500 if you agree to play trumpet on my next recording." Levee replied that he promised to play trumpet on Ma's next recording. At this point, the contract is an (A) executed, bilateral, express contract; (B) executory, bilateral, implied-in-law contract; (C) executed, unilateral, express contract; (D) executory, bilateral, express contract. Answer:______Explanation: 2. Richard entered Smith Rock's Rocking Used Cars to purchase a used car. Richard found a 2014 Mazda CX-5 with a sales price of $11,000. After Smith answered all of Richard's questions about the car, Richard and Smith agreed to a cash sale at the listed price. As Richard was leaving Rocking Used Cars to go to his bank to get the money to pay for the car, Smith told Richard that he heard that Gloria Estefan formerly owned the car. Richard later learned that Gloria Estefan never had owned the car. If Richard seeks to rescind the deal based on Smith's statement, Richard will (A) win because he relied on the misrepresentation; (B) win because the salesman made a misrepresentation of a material fact; (C) lose because he did not rely on the misrepresentation.; (D) lose because Smith made a unilateral mistake. Answer:______Explanation: 3. Hilary has a baseball bat and a great deal of anger towards Donald. Which of the following is true: (A) It is possible for Hilary to batter Donald without assaulting him, and it is possible for Hilary to assault Donald without battering him. (B) It is possible for Hilary to batter Donald without assaulting him, but Hilary cannot assault Donald without battering him. (C) It is possible for Hilary to assault Donald without battering him, but Hilary cannot batter Donald without assaulting him. (D) It is not possible for Hilary to batter Donald without assaulting him, and it is not possible for Hilary to assault Donald without battering him. Answer:______Explanation: 4. Harriett raises and sells rare tropical birds of extremely colorful plumage. To keep her birds happy and healthy, and to keep their plumage as colorful as is possible, she feeds them Tropical Bird Chow, which she buys from the local pet store. Pursuant the UCC, Harriett is (A) a merchant of both the tropical birds and Tropical Bird Chow; (B) a merchant of the tropical birds, but not of Tropical Bird Chow; (C) a merchant of Tropical Bird Chow, but not of the tropical birds;(D) a merchant of neither the tropical birds nor of Tropical Bird Chow. Answer:______Explanation: 5. In June 2019 Gwen entered into a contract with a theatrical producer to star in a new Broadway musical during the 2020-2021 theatrical season. The show went into rehearsals in November 2019, began preview performances in early February 2020 and then opened for an indefinite run on March 10, 2020. Gwen's contract called for her to remain in the lead role for the shorter of one year from opening night or the entire run of the show. Unfortunately, during the preview performances, Gwen had been spending time with an old friend who had just returned from a tour of China. At the cast party after the opening night, Gwen developed severe respiratory symptoms and had to be rushed to the emergency room. She was diagnosed with coronavirus, fell into extremely labored and difficulty breathing, was placed on a ventilator, and died on March 14, 2020. Her estate (A) is obligated to find another performer of similar talents who will agree to take over Gwen's role for the remainder of her contract term; (B) is discharged from any further obligations under the contract; (C) will be discharged from any obligations under the contract only if it can be shown that Gwen's death was unexpected; (D) will not be discharged and, if the play's producers have to pay more in order to hire a comparable substitute performer at the last minute, the estate will be responsible for the difference in pay. Answer:______Explanation: 6. Big Bang for the Buck Inc. (BBB) operated a dynamite manufacturing plant in a rural area in the state of Bucolica. On one stormy night, Andre was driving along the highway in Bucolica on which BBB's facility was located. Just as Andre approached the boundary of the BBB property, one of the large trees that BBB used to screen its facility from the highway came down in a crash as a strong gust of wind blew through the area. Andre's car was demolished when the tree fell on it, and Andre suffered some serious but not fatal injuries. Upon recovering Andre filed an action against BBB based on a theory of strict liability. Does Andre have a valid claim? (A) Yes, because BBB was engaged in an ultrahazardous activity on its property in Bucolica. (B) Yes, because it was negligence per se for BBB to use tall trees to screen its facility from the highway. (C) No, because the accident was not caused by the ultrahazardous activity on BBB's property or the ultrahazardous nature of BBB's product. (D) No, because Andre was contributorily negligent by driving near a dynamite manufacturing plant. Answer:______Explanation: 7. Now, let us revisit out friend Richard, whom we met in question 2. Suppose instead of buying the used Mazda CX-5, Richard instead bought from Smith Rock's Rocking Used Cars a 2017 Jaguar F-Pace on credit for $30,000. To settle some old gambling debts, Smith then assigned to Bruno all his rights to receive money from Richard. Neither Smith nor Bruno informed Richard of the assignment at the time that it is was made. Therefore, Richard continued to make his required monthly loan payments directly to Smith. After about six months, Smith left the country for the Bahamas with the money. If Bruno then sues Richard for the missing six payments (A) Bruno will not be able to collect the money from Richard; (B) Bruno will be able to collect the money from Richard; (C) Richard is liable for the six monthly payments because Bruno paid consideration for the assignment through the forgiveness of Smith's gambling debts; (D) Richard cannot raise the defense of previous payment. Answer:______Explanation: 8. Lois had been a children's day care provider for several years in the small town of Smallville. She started a small business, Loving Care with Lois LLC, pursuant to which she operates a day care facility. At one point in time, Lois decided to give up small town living and move to Metropolis, the closest big city, for excitement and adventure. She sold Loving Care with Lois LLC to Jimmy. In the purchase and sale agreement with Jimmy, Lois agrees not to open a competing business within five miles of Smallville for a period of two years. After nine months of the big city life and a failed romance with Clark, who always seemed to be missing when Lois needed him most, Lois lost interest in living in Metropolis and moved back to Smallville. She opened a small day care facility in Bellemeade, the town directly adjacent to Smallville. Jimmy then filed suit against Lois to enforce the non-competition provision of the purchase and sale agreement. What is the most likely result of Jimmy's lawsuit against Lois? (A) Jimmy wins because the non-competition agreement is enforceable. (B) Lois wins because the non-competition agreement is denying her the right to do the only thing she knows how to do. (C) Lois wins because the non-competition agreement is against public policy. (D) Lois wins because the non-competition agreement is unreasonable as to the time and geographic scope of the restrictions. Answer:______Explanation: 9. Upon graduating from college, Angelina announced her plans to enter law school the following fall and to marry Edwin in December. Angelina's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out of school. He called Angelina and promised her $10,000 if she postponed her wedding until after completion of her first year of law school. Angelina agreed and postponed the wedding for a year. Angelina successfully completed her first year of law school, but soon thereafter, her father died. The administrator of her father's estate claimed Angelina was not entitled to the $10,000 because there was no consideration for her father's promise. If Angelina sues the estate, she probably will be (A) unsuccessful because her father's death terminated the contract; (B) successful because there was consideration; (C) unsuccessful because her father received no benefit; (D) unsuccessful because it was merely fatherly advice not to get married during the first year of law school. Answer:______Explanation: 10. One day, while drawing a patient's blood, nurse Alexis accidentally pricks herself with the needle that she had just used on the patient. Heather, another nurse at the hospital, warns Alexis that the patient has Hepatitis C, a virus that can spread through a shared needle. Alexis becomes visibly distraught, and Heather tells nurse Ted that Alexis now has Hepatitis C. In fact, Heather made the whole thing up. She knew the patient had no such illness and just wanted to embarrass her co-worker Alexis. Heather may be found liable for (A) slander; (B) intentional infliction of emotional distress; (C) libel; (D) both slander and intentional infliction of emotional distress. Answer:______Explanation: 11. Harry is a poor Hogwarts student struggling to work and keep up with his advanced studies in magical law enforcement. Petunia, his aunt, promises to pay Harry support of $200 per month for the next six months. Although Petunia did not ask him to, he quits his current part-time job at the Ministry of Magic to devote full time to his studies for the next six months. Petunia makes one payment and then stops with no explanation. If Harry sues, what is the likely result (assuming, of course, that American law prevails even in the magical world)? (A) Petunia would win, as she did not ask Harry to quit his job. (B) Harry would win, as a contract was formed when Petunia promised to pay him the support. (C) Petunia would win, as family members cannot sue each other for breach of an oral promise. (D) Harry might win under the doctrine of promissory estoppel. Answer:______Explanation: 12. Trans Global Airlines offered to sell 10 round-trip tickets to Silvestre. Trans Global stated in the offer that the acceptance must be in writing and delivered by USPS next-day service. Which of the following acceptances will create a contract between Trans Global and Silvestre? (A) Silvestre calls the Trans Global reservation number and states that he will buy the tickets. (B) Silvestre sends a fax to the Trans Global sales office stating he will buy the tickets. (C) Silvestre sends a letter by USPS next-day service to Trans Global stating that he will buy the tickets. (D) All of these responses will create a contract between Trans Global and Silvestre because they constitute reasonable means of communication. Answer:______Explanation: 13. K Krush Fitness ordered five medicine balls from Gym Supplies Unlimited for a total purchase price of $375. Kris, the K Krush owner, ordered the medicine balls by calling Gym Supplies Unlimited and providing the firm credit card number. Gym Supplies Unlimited was to send the medicine balls by overnight courier. K Krush also ordered two new elliptical training machines from Fitness Fixtures, Inc. for a total cost of $2,500 ($1,250 per machine). Again, the K Krush owner ordered the elliptical training machines by calling Fitness Fixtures, Inc. and providing the firm credit card number. Fitness Fixtures, Inc. was to send the elliptical training machines by ground courier. Which of the promises in this problem must be in writing to be enforceable? (A) The promise made by K Krush Fitness to buy the medicine balls. (B) The promise made by K Krush Fitness to buy the elliptical training machines. (C) Both of the promises made by K Krush Fitness. (D) Neither of the promises made by K Krush Fitness. Answer:______Explanation: 14. Billy bought a rotisserie in preparation for a party he was planning. When he put a chicken on the rotisserie, it would not rotate, but stayed in one position where it burned the chicken on one side and left it raw on the other. When Billy returned the rotisserie to the store, the salesperson disclaimed any responsibility because he had never told Billy that the rotisserie would rotate the food as it cooked. Does Billy have any recourse against the store? (A) No, the salesperson did not make any express warranties. (B) Yes, the salesperson made an express warranty just by selling the goods. (C) Yes, because although the salesperson did not make any express warranties, the UCC imposes an express warranty on the sale. (D) Yes, because although the salesperson did not make any express warranties, the UCC imposes an implied warranty on the sale. Answer:______Explanation: 15. Adam enters a dentist office and, without saying any words, points to a damaged tooth that is causing him obvious pain. The dentist, Dr. Louis, treats the tooth immediately. Adam willingly complies with the medical/dental instructions that Dr. Louis gives to him while Dr. Louis is working on the tooth. If Adam then refuses to pay and Dr. Louis sues Adam, what would be the result? (A) Adam would win because there was no contract. (B) Adam would win because of provisions in the UCC. (C) Dr. Louis would win because there was an implied contract between Adam and Dr. Louis. (D) Dr. Louis would win based on quantum meruit. Answer:______Explanation