Question 34

Lawrence and Jane were negotiating a contract, for the purchase and sale of widgets, over cocktails. Jane believed that Lawrence was completely intoxicated and she was hoping to take advantage of his condition to get the best possible deal for herself. Lawrence, however, knew what Jane was trying to do because he was really only slightly impaired. He therefore manipulated the situation to sign two contracts. The first was to his advantage and the second benefitted Jane. Lawrence believed that he would be entitled to enforce the first, but walk away from the second. Which of the following is most likely to be TRUE?

1.Both deals are enforceable because Lawrence was not truly incapacitated.

2.Neither deal is enforceable because Jane believed Lawrence to be intoxicated and therefore could not have reasonably expected to enforce either transaction

3.A court will enforce the first contract, but not the second, because Jane tried to take advantage of Lawrence before he tried to take advantage of her.

4.A court will enforce the second contract, but not the first, because Lawrence knew the true facts, but Jane did not.

5.Neither contract is enforceable because even a person who pretends to be intoxicated does not have contractual capacity

Question 33

Because he was considering buying Susanne's car, Logan asked two questions: (a) Does the car have new tires? (b) Has the car suffered any structural damage? Susanne answered the first question immediately and truthfully, but she was unsure of the second answer. She therefore told Logan that she would have it inspected would get back to him regarding the second question. Over the next few days, however, Susanne forgot about the inspection. When Logan called to ask about structural damage, she simply lied and said that the inspector told her that the car was in perfect condition. Logan then bought the car. If it turns out that the car did have structural damage before the sale, which of the following statements is most likely to be TRUE?

1. 1.At most, Susanne may have to take the car back and return Logan's money
2. 2.Logan is stuck with the car
3. 3.Susanne may be entitled to get the car back even if Logan wants to keep it.
4. 4.Susanne may be sued for damages in tort.

5.Susanne has committed innocent misrepresentation

Question 32

Molly decides to sell her house by way of a private sale. After advertising and showing the house, she receives a written offer from an interested purchaser using a standard form document assembled from a do-it-yourself legal kit. Molly studied the offer and wished to change two of its terms. The interested purchaser agreed to the changes and reflected those changes in the document. Molly signed the document and cashed the down payment cheque. Two days later, Molly spotted an extremely onerous and somewhat unusual term that was not brought to her attention when reading the document. As a result, Molly wishes to cancel the contract. Which of the following is most likely TRUE?

1. 1.Molly will fail because she is bound by her signature to the written agreement
2. 2.Molly will fail, but only because she cashed the cheque
3. 3.Molly will succeed because the term was onerous and unusual.
4. 4.Molly will succeed because she was not given reasonable notice of the onerous and unusual term.

5.Molly will succeed unless the purchaser expressly drew her attention to the clause.

Question 31

Reeni was interested in purchasing a car. After searching the classified ads, she found a car in which she was interested, being sold by Ethan, whom she had never met. Ethan knew that his car was in need of new tires, a new muffler, and would soon need a new clutch and a brake job. Consequently, he was hoping that, when they met, Reeni would not ask too many questions. When she wanted to go for a test drive, Ethan gave her the keys and said that he trusted her to go alone and that doing so would allow her to test it in a less inhibited fashion. Really, he just did not want her to ask about any of the car's problems. Reeni took the car by herself and, on the basis of its performance, bought it at Ethan's listed price, no questions asked. Which of the following statements is most likely to be TRUE?

1.Ethan is not required to disclose the car's problems during pre-contractual negotiations if Reeni does not ask about them

2.Silence can never amount to a misrepresentation.

3.Ethan owed Reeni a special duty to disclose the problems with his car.

4.By failing to accompany Reeni in the test drive, Ethan breached a duty of utmost good faith

5.Reeni would succeed in an action against Ethan for misrepresentation

Question 30

Dunlop sold tires to Mew. The parties' contract prohibited Mew from reselling the tires unless its sub-buyer agreed to abide by Dunlop's list price for the tires. Mew resold the tires to Selfridge. Under its contract with Mew, Selfridge agreed to (1) abide by Dunlop's list price, and (2) pay $50 to Dunlop for each tire that it sold in violation of that list price. Selfridge resold 10 of the tires to its own customers for less than Dunlop's list price. Which of the following statements is most likely to be TRUE?

1.Selfridge is required to pay $500 ($50 for each of the tires) to Dunlop only if Selfridge's contract with Mew is under seal.

2.Selfridge is required to pay $500 to Mew.

3.Selfridge is required to pay $500 to Dunlop.

4.As a result of the contract between Mew and Selfridge, privity of contract exists between Dunlop and Selfridge

5.Dunlop is not entitled to any payment from Selfridge because Dunlop was not privy to the agreement between Selfridge and Mew.

Question 29

In late April, Harper Corp placed an advertisement in a newspaper that said: "We cater parties. Up to 150 people for only $3000. No hidden fees or costs." The manager of Martin Inc telephoned Harper and left a voice message that said, "We are calling to place an order to have a party for 150 people on the first of June." The next day, the manager of Harper called Martin and explained that, due to a scheduling conflict, it could not stage a party on the first of June. Martin now says that a contract had been created and that Harper has breached that agreement. Which of the following statements is most likely to be TRUE?

1.Because a contract cannot be created between corporations, Harper Corp cannot be held liable to Martin Inc.

2.A contract was created between the parties as soon as Martin left its message on Harper's answering machine, regardless of when Harper listened to that message

3.Because an advertisement is generally presumed to be an invitation to treat, Martin's telephone message was not a contractual acceptance

4.In classifying the nature and effect of Martin's telephone message, a judge would focus exclusively on the intention that Martin had at the time that he called.

5.If it did not actually have a scheduling conflict, Harper would be obligated to satisfy Martin's order.

Question 28

Morris posted a notice promising to pay a $250 reward to anyone who found his lost cat. Morris saw Edna, his neighbour, and drew her attention to the notice. She expressed sympathy, but said that she did not have time to help because she was rushing off to work. When she returned home early that afternoon, however, she went to Morris's house to tell him that she would look for the cat. Although he was not at home, she searched the area, found the animal, and returned it to his house. Morris now refuses to pay Edna the $250. A court would most likely say that Edna is entitled to

1. 1.nothing because Morris is entitled to revoke his offer at any time
2. 2.payment because a contract was created through her act of acceptance in acting on the offer
3. 3.nothing because she was required to communicate her acceptance in writing
4. 4.payment because the offeree decides whether an offer has been open for a reasonable period
5. 5.nothing because she rejected Morris's offer when she said she had to rush to work

Question 27

Luke sued Michelle for negligence. In formulating the standard of care, the court will properly consider whether or not

1. 1.Michelle has liability insurance
2. 2.Luke has personal injury insurance
3. 3.there was great social utility to the act that Luke was performing when he was injured
4. 4.Michelle took precautions against reasonable foreseeable risks.

5.a reasonable person in Luke's position would have realized that Michelle's actions might cause damage

Question 26

Brownie Inc and Chewy Ltd are competitors in the chocolate bar market. Brownie has developed a four-part strategy in an effort to win the "trade war" with Chewy. First, Brownie's advertisements falsely claim that its product are calorie-free. Second, those advertisements also state that Chewy's products are manufactured from third-rate ingredients. Third, those advertisements also say that Chewy's products are proven to cause cancer. And fourth, Brownie occasionally packages its products in such a way as to make consumers believe that they are buying Chewy products. Which of the following statements is TRUE?

1. 1.If Brownie's products are not calorie free, Brownie will be held criminally liable for misleading advertising.
2. 2.Brownie may be held liable for injurious falsehood if Chewy's products are not made from third-rate ingredients and if Chewy suffered a loss of sales as a result of that statement
3. 3.If Chewy's products do not cause cancer, Brownie may be held liable under the tort of deceit as long as it should have known that its statement was false.

4.The court will find a crime was committed every time that Brownie packaged its products to trick customers into thinking that they were actually buying Chewy's products

5.Brownie cannot be held liable for injurious falsehood unless it knew that it was committing a tort when it made a particular statement

Question 25

Roark Construction Inc built a new high-rise apartment building on a piece of land that it called Randville. Six months after the building was completed, Cooper, the owner of the neighbouring property, proved on the basis of records and documents at the land titles office that Roark's new building extended 1 metre over the boundary between the two properties, and therefore is partially located on Cooper's property. Roark was entirely unaware of that fact during the construction process. Which of the following statements is TRUE?

1. 1.Cooper cannot successfully sue for damages because it did not notify Roark of the problem until after the building was completed.

2.A court almost certainly will grant an injunction that requires Roark to demolish its building and start the construction project over again.

3.Roark may be held liable for an intentional tort even though it did not intend to commit any tort at all.

4.Roark will be held liable for a trespass to land only if it unreasonably failed to check the documents at the land titles office.

5.Because Roark committed an honest, though foolish, mistake the court will likely award punitive damages to Cooper

Question 24

During an argument, Sylvia flew into a rage and hit her friend Ian in the head with a baseball bat. Which of the following statements is TRUE?

1.In the normal course of events, Ian could prosecute Sylvia for her crime

2.Sylvia breached a civil obligation that she owed to society as a whole.

3.Sylvia breached a public obligation that she owed to Ian personally

4.If a court decides that Sylvia has violated a public obligation, it will probably award damages against her.

5.Sylvia probably has committed both a tort and a crime.

Question 23

Kirndeep recently received a bachelor of business administration. She has, however, always dreamed of representing people with legal problems. She has come to you for advice and guidance regarding the various possibilities. Which of the following statements is TRUE?

1.Lawyers always make more money than paralegals

2.Paralegals are permitted to help clients draft legal documents, but they are never entitled to appear in courts or tribunals.

3.Paralegals are allowed to represent clients in small claims courts and administrative tribunalsin some jurisdictions in Canada.

4.Paralegals are more heavily regulated than lawyers

5.Before starting a private practice, a paralegal is required to complete a period of articles with a law firm.

Question 22

A provincial government recently enacted a statute that established a scholarship for "Aboriginal students who are enrolled at Canadian universities." Melissa, a university student whose ancestors were all born in England, believes that the scholarship is unconstitutional because it unfairly discriminates against her on the basis of her race. If Melissa brought that complaint to court, a judge would likely say that

1.the scholarship presumably is unconstitutional because it discriminates on the basis of race..

2.the scholarship is unconstitutional because the federal government has exclusive jurisdiction over education as a result of section 92 of the Constitution

3.the scholarship is valid under section 15(2) of the Charter because it is aimed at improving the conditions of a disadvantaged group

4.because Canadian universities are private institutions, theCharter's provisions do not apply to them

5.Melissa is entitled to participate in the scholarship scheme because she is a woman and because the Charter prefers rights based on sex to rights based on race.

Question 21

Which of the following statements best explains why the courts use an objective test to determine whether or not there is an intention to create legal relations?

1. 1.It would not be fair to recognize a contract unless both parties actually intended to be bound by that contract.
2. 2.The law of contracts is intended to protect reasonable expectations
3. 3.The reasonable person test is only useful for determining subjective intentions
4. 4.The courts are confident that people do not lie in court.

5.An objective test is used if a party is a company, while a subjective test is used if a party is a human being

Question 20

In early March, Mathilde offered to rent her cottage to Tom for the first two weeks of July at a price of $1200. Mathilde did not impose any restrictions on acceptance. Tom did not yet know when his vacation was scheduled, so he did not immediately respond to Mathilde's offer. At the end of June, Tom learned that he was entitled to vacation during the first two weeks of July. He therefore arrived at the cottage on July 1st and told Mathilde for the first time that he was accepting her offer. Which of the following statements is most likely TRUE?

1.Tom has the right to stay at the cottage because he accepted Mathilde's offer by silence.

2.Tom has the right to stay at the cottage because he accepted Mathilde's offer by conduct

3.Tom does not have the right to stay at the cottage because Mathilde's offer lapsed after being open for acceptance for a reasonable length of time

4.Tom has the right to stay at the cottage because Mathilde created an enforceable option when she made an offer without any restrictions on acceptance

5.Tom has the right to stay at the cottage because Mathilde's offer remained open for acceptance until she revoked it, or until Tom either accepted it or rejected it

Question 19

Joan wants to buy a prime piece of real estate from Guiaumme, but she is waiting to find out whether the bank will give her a loan. In order to make sure that Guiaumme does not sell the land to anyone else, Joan gives him $5000 in exchange for his promise that, for a certain period of time, she alone has the right to accept his offer to sell. This type of agreement is called

1.A conditional offer

2.A firm offer

3.An option

4.a proposal

5.a tender