BLAW 2080 - Mind tap exam 2 PDF

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BLAW 2080 - Mind tap exam 2...

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1 1.) Carmen owns a 2009 Toyota Camry that has been driven 24,000 miles and, to his knowledge, has no mechanical problems. He offers to sell the car to his friend Jamie for $12,000. Jamie accepts Carmen's offer. Jamie and Carmen have Answer: an express contract 2.) Kandis offers to pay Tim's way through college if he will give her one of his kidneys in return. He is a perfect donor match and accepts Kandis's offer, signing a contract. Their contract is Answer: void 3.) Paul goes to a bar, has seven shots of whiskey, and then goes to an electronics store and buys a $2,500 stereo system. If he later wants to avoid the contract based on his intoxication when he bought it, he will need to prove that Answer: he lacked the mental capacity to enter into the contract. 4.) Keisha contracts with a broker to invest all of her savings. The year goes badly, and she loses almost all the money. She is too ill to return to work and will be penniless if she cannot avoid the contract. Which of the following applies? Answer: She has no legal recourse. 5.) Marcy tells Jessica that she will buy Jessica a new dress if she reads a book by Friday night. Jessica begins reading and has only two chapters left to finish when Marcy tells Jessica that she has changed her mind and will not buy the dress. Under the modern approach to contracts, Marcy and Jessica Answer: formed a unilateral contract as soon as Jessica began reading 6.) KJ Games, in Colorado, designs computer games that it markets and sells to customers via the Internet. A click-on agreement accompanies every download; no game can be installed on a buyer's computer if the buyer does not click on the words "I agree" when prompted. The click-on agreement clearly states in capital letters that all disputes will be settled in Colorado's state courts. Buyers of KJ's games are most likely Answer: required to file any lawsuits in Colorado. 7.) Ryan sends Michael a letter of intent for the purchase of a tract of land. The letter of intent outlines the purchase price, the legal description, and the financing terms. A paragraph is included that states this is a non-binding agreement, and is an offer to enter into negotiations. Answer: The letter of intent is an invitation to negotiate, which is not an offer. 8.) The doctrine that prevents an offeror from revoking an offer once the offeree has justifiably relied to his detriment or has begun performance is known as Answer: promissory estoppel 9.) Samantha owes her landlord, Alec, $6,000 in rent. Samantha wants to assign to Alec the right to receive the $5,000 from Patty, but the contract between Patty and Samantha contains a clause prohibiting its assignment. If Samantha assigns the rights anyway, a court will most likely Answer: not honor the clause prohibiting assignment because a contract cannot prevent assignment for one to receive monetary payments. 10.) Troy, who is 18, offers to sell Jenna, who is also 18, his car for $5,000. Jenna accepts Troy's offer, but only agrees to pay $4,500 for the car. Which of the following contract elements has not been met? Answer: Acceptance 11.) executory contract Answer: a contract that has not as yet been fully performed

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2 12.) executed contract Answer: a contract that has been completely performed by both parties 13.) At a given point in time, contract law does NOT reflect which of the following? Answer: our physical well-being 14.) bilateral Answer: a promise for a promise 15.) unilateral Answer: a promise of an act 16.) formal Answer: requires a special form for creation 17.) informal Answer: requires no special form for creation 18.) express Answer: formed by words 19.) implied Answer: formed by the conduct of the parties 20.) Requirements for a valid contract do NOT include _________ Answer: a fair price 21.) People make promises all the time, so promises have little to do with contract law. (TF) Answer: false 22.) A contract is ______________ Answer: a promise or agreement that can be enforced in court 23.) four requirements for a valid contract. Answer: -consideration -legality -agreement -contractual capacity 24.) contract Answer: an agreement that can be enforced in court, formed by two or more parties, each of whom agrees to perform or to refrain from performing some act now or in the future. 25.) promisee Answer: a person to who a promise is being made

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3 26.) promisor Answer: a person who makes a promise 27.) An implied contract differs from an express contract in that the conduct the parties creates and defines the terms of the contract. (TF) Answer: true 28.) the actions that potentially involve contractual relationships that the courts might enforce. Answer: -buying a house -buying insurance -buying services of a lawyer 29.) If the offeree can accept simply by promising to perform, then the contact is unilateral. (TF) Answer: false 30.) informal Answer: requires no special form for creation 31.) formal Answer: requires special form for creation 32.) express Answer: formed by words (oral, written, or a combination). 33.) unilateral Answer: a promise for an act (acceptance is the complected performance of the act). 34.) implied Answer: formed by the conduct of the parties 35.) bilateral Answer: a promise for a promise 36.) Assume that Eva tells Maria that she will buy Maria a new dress if Maria reads a book by Friday night. Maria begins reading but has a chapter left to finish when Eva says she has changed her mind and will not pay for the new dress. Under the modern approach to contracts, Eva and Maria: Answer: formed a unilateral contract as soon as Maria began reading the book. 37.) The objective theory of contracts tells us that a party's intention to enter into a legally binding agreement is judged by the personal belief of at least one of the parties. (TF) Answer: false 38.) Promises that involve moral obligations are the basis of contract law. (TF) Answer: false 39.) valid contract

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4 Answer: a contract that has the necessary contractual elements: agreement, consideration, legal capacity of the the parties and the legal purpose 40.) enforceable contract Answer: a valid contract that can be enforced because there no legal defenses against it 41.) voidable contract Answer: a party's the option of avoiding or enforcing the contractual obligation 42.) unenforceable contract Answer: a contract exists, but cannot be enforced because of a legal defense 43.) void contract Answer: no contract exists, or there is a contract without legal obligation 44.) Pete calls A-1 Towing when his car won't start. He tells the dispatcher the location of the car, but does not ask for a price and leaves before the tow truck arrives. He obviously does not talk to the driver and does not sign any documents. Therefore, Pete: Answer: owes A-1 for towing his car under an implied contract 45.) When a court examines the objective facts surrounding contract formation, which of the following does it NOT examine? Answer: if the party had the flu while negotiating 46.) Habib is an Arab prisoner being held in a U.S. prison. Another prisoner, Aham, attacks and seriously injures Habib. Habib's family in Saudi Arabia wants to file a lawsuit in a U.S. court against the American company that operates the prison for negligently allowing Habib to be injured. If Habib's family wishes to file a lawsuit alleging a violation of a U.S. treaty they may Answer: be able to bring a lawsuit under the Alien Tort Claims Act 47.) Geo Sox, an American company, agreed to sell copper electric cables to a state-owned company in Nigeria. Geo Sox was given very specific manufacturing requirements and had to invest in new machinery to meet the requirements. Once the order was processed, the Nigerian electric company repudiated the contract, claiming immunity under the Foreign Sovereign Immunities Act (FSIA). However, Geo Sox might prevail in court because Answer: the government of Nigeria cannot defend itself without having a subsidiary of its electrical company based in the United States. 48.) Dunkin Donuts, an American company, licenses Olivia to use its trademark, trade name, and recipes to produce and sell doughnuts in Romania. Payment will include a rather large set-up fee plus a small royalty on all revenues generated by the Romanian company. The type of business arrangement Olivia and Dunkin Donuts have is most likely Answer: a franchise 49.) Electronic Imports, a U.S. company enters into a contract with E Manufacturing, a company based in China. Both companies have a sign agreement with an arbitration provision, that in the event of any disputes, the matter will be arbitrated in the United States. An issue arises that causes E Manufacturing to breach its agreement with Electronic Imports, and E Manufacturing files suit in a court in China. Electronic Imports would rely on which of the following to enforce its arbitration provision in the agreement? Answer: the new york convention 50.) Wai-tung, a Chinese firm, manufactures automobiles. In order to get a foothold in the American market, Wai-tung sells its cars for several thousand dollars below what it charges in China. Wai-tung

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Answer: may have antidumping duties imposed on its imported goods 51.) International law can be defined as a body of law, formed as a result of international customs, treaties, and organizations, that governs relations among or between nations. (TF) Answer: true 52.) A major difference between international law and national law is:__________________ Answer: that government authorities enforce national law. 53.) treaty Answer: an agreement formed between two or more independent 54.) international organizations Answer: in international law, a term that generally refers to an organization composed mainly of nations and usually established by treaty 55.) national law Answer: law that pertains to a particular nation (as opposed to international law). 56.) civil law system Answer: a system of law derived from that of the Roman Empire and based on a code rather than case law. 57.) Highlight three of the basic sources of international law: Answer: -international customs -treaties and international agreements -international organization and conferences 58.) Landers, Inc., an American company, agrees to sell copper electric cables to a state-owned company in Ecuador. Landers was given specific manufacturing requirements and had to invest in new machinery to meet them. Once the order was processed, the Ecuadorian electric company repudiated the contract, claiming immunity under the Foreign Sovereign Immunities Act (FSIA). Nonetheless, Landers might prevail in court because: Answer: of the exception to the FSIA concerning national governments engaging in strictly commercial activities. 59.) One of the basic difference between a common law and a civil law legal system is that: Answer: judges in civil systems often actively question witnesses. 60.) When the foreign state has ________ its immunity either _______ or by implication. Answer: -waived -explicitly 61.) When the foreign state has _________ in commercial activity within the United States or in commercial activity outside the United States that has "a ___________ effect in the United States." Answer: -engaged -direct 62.) When the foreign state has committed a __________ in the United States or has _________ certain international laws. Answer: -tort

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6 -violated 63.) act of state doctrine Answer: a doctrine that provides that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory 64.) expropriation Answer: the seizure by a government of privately owned business or personal property for a proper public purpose and with just compensation 65.) confiscation Answer: a government's taking over privately owned business or personal property without a property for a proper public purpose or an award of just compensation 66.) sovereign immunity Answer: a doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied 67.) The term comity means: Answer: the deference one nation shows for the laws and judicial decrees of another nation 68.) the act of state doctrine is frequently employed in: Answer: expropriation cases 69.) One of the major EXCEPTIONS to the doctrine of sovereign immunity is made when: Answer: a nation takes actions in connection with the commercial activity in the U.S. or that have a direct effect in the U.S. 70.) Venezuela passes a law stating that no dollars are allowed to enter the country, such that Americans traveling to Venezuela have to exchange their dollars for Venezuelan's domestic currency at any border crossing. Natalie, a U.S. citizen, files a lawsuit against Venezuela in a U.S. court challenging the legality of this law. Natalie will most likely: Answer: not prevail because of the act of state doctrine 71.) When a country's government seizes privately owned property of foreign investors without paying just compensation, it is knows as Answer: confiscation 72.) The United States is a member of more than _______ multilateral and bilateral treaties. Answer: 100 73.) The U.S. Constitution gives the _______________ the power "by and with the Advice and Consent of the ____________, to make Treaties, provided two-thirds of the Senators present __________." Answer: -president -senate -concur 74.) A bilateral agreement is an agreement formed by _______ nations to govern their ________ exchanges. Answer: -two -commerical

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