Business Law Midterm Notes PDF

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Belmont University Business Law I (MGT 2410) Midterm Exam Review and Notes...

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Business Law 1 Belmont University MGT 2410 Business Law 1 Midterm Exam Notes/Review

Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is the parties' intent Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The elements of this, and any other, contract include Consideration Mona asserts that a deal she entered into with Nate is an unenforceable contract. Defenses to the enforcement of a contract include the lack of a party's voluntary consent. Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail's promise only. Clay offers to pay Dorianne $50 for a golf lesson for Estee. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have a bilateral contract Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form, and Pinky gives Opie a check for the price. This check is a formal contract. On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. Under the present-day view, these parties had unilateral contract as soon as Outdoor began to perform

On behalf of the jazz group Synco-Passion, their manager Raul agrees to a performance in the Quay Club on May 1. Portia, acting for Quay Club, sends a written copy of the agreement to Raul to be signed. Typically, businesspersons put their contracts in writing to ensure proof of the contracts' existence Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have an express contract When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is an implied contract Following negotiations with Merchants Storage Company, Lonny enters into an informal contract to clean the loading dock. This means that the parties' contract requires no special form. Sam and Tiffany enter into an implied contract. This is a contract in which the parties' conduct defines the contract's terms Scot enters into a contract with Tiffany that later proves voidable at Tiffany's option. If she elects to avoid any duty to perform under the contract both parties are released from it. Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover the cost of the aid from Noel even if Noel was not aware of the aid. Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be determined by reference to the face of the instrument

Diaz and Cuzco enter an express contract for the construction of a warehouse. Express contract terms are given, in relation to the parties' course of performance, more priority. National Grocers, Inc., enters into a contract with Overland Shipping Company for the delivery of a shipment of fresh produce. If ambiguities appear in the contract, they will be construed against the party who drafted the contract Fanny tells Eden that she will sign a lease if it includes a clause permitting Fanny to extend the lease at the same amount of rent. Fanny's intent to sign the lease is determined by reference to Fanny's words and action. Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is a statement of future intent. Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is not a valid offer because the terms are not definite. Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the reward because he did not know of the reward. Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is terminated Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has rejected the offer and made a counteroffer Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, "I'll pay no more than $5,000." Grant says, "Forget it." Grant's offer was terminated by

Ivy Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate after a reasonable period of time Alan offers to transfer Beth's DVDs to digital flash drives for $150 plus the cost of the drives. The mailbox rule will not apply if Beth accepts the offer by e-mail Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is required urgently. It would be most reasonable for Unified to accept via a fax sent to TF as soon as the offer is received Deepwater Mining Corporation offers to sell East China Refining, Inc., a certain quantity of unrefined oil. If East China sends an acceptance via Deepwater's authorized mode of communication, it will be effective when it is sent. Flem, a user of GameCenter.com's Web site, can download gaming software for free if he first clicks on "I accept" after viewing certain terms. This is a contract that includes the terms. Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision not to make and sell copies of the song. This provision is a click-on agreement. Magic Math Corporation makes business accounting software, which is packaged with a shrink-wrap agreement. National Distribution Company distributes the software to retailers, including an Office Stuff store, where Peg buys a package of it. The parties to the shrink-wrap agreement are Magic Math and Peg only. Lightspeed Corporation makes computers, each of which is packaged with a shrinkwrap agreement. Milo buys a Lightspeed desktop. The terms of the shrink-wrap agreement are most likely enforceable if

Milo expressly agrees to the terms in the shrink-wrap agreement. Howie enters into a contract with Ida over the Internet to buy soybeans as a hedge against falling prices in corn. Neither party prints out a hard copy. Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can not be "denied legal effect" because it is only in electronic form. Somethin'-in-the-Oven Corporation and Cookin' Good, Inc., transact a deal under the UETA. Other state law applies to a dispute between the parties relating to the formation of the parties' contract. Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products, via e-records. Under the UETA, an e-record is considered sent when it leaves the sender's control. Kelsey promises to pay Jon, her son, $15,000 if he obtains his degree at Ivy University, where he is currently in his second year. Jon graduates. Kelsey is required to pay, because Jon obtained a degree at Ivy. Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be legally sufficient. Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She accepts and hands the book to Vince. Sun-Hi's delivery of the book is consideration. Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay. Their agreement is unenforceable because Agro's performance was a preexisting duty. Panini Vittles, Inc., contracts with Qino to deliver its sandwiches. Later, the parties decide to cancel their contract. They can

rescind their contract if it is executory Mary promises to pay her assistant Ned $10,000 in consideration of the services he provided over the years. Mary never pays Ned. Mary is not liable, because the consideration is in the past. Homebuyers Mortgage Corporation's promise to pay its employees a year-end bonus "if it seems like a good idea at the time" is an illusory promise. Domestic Auto Sales, Inc., promises its salaried employees a bonus at the end of the year if management thinks it is warranted. This promise is unenforceable because it is not supported by consideration. Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores. Nixie agrees and quits her job with Pic-U Grocery, but Herm does not hire her. Herm is most likely liable to Nixie under the doctrine of promissory estoppel. Cherry is injured in an accident caused by Bronco. Bronco agrees to pay Cherry $2,500 if she agrees to release him from further liability. Cherry agrees. If Cherry's damages ultimately exceed $2,500, she can not collect the balance from Bronco. Berkie's bicycle is damaged in an accident caused by Imogene. Berkie agrees not to sue Imogene if she will pay for the damage. If she fails to pay, Berkie can bring an action for breach of contract. This is a covenant not to sue. Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based on promissory estoppel. Betty pledges to donate $1,000 to the Children's Hospital. On the basis of the pledge, the hospital orders additional equipment. Betty reneges on the pledge. The hospital sues Betty. If the court enforces the pledge, it will be

under the doctrine of promissory estoppel. Dante enters into a contract with Rosalinda, who does not have contractual capacity. Dante can enforce the contract if Rosalinda does not choose to avoid the contract. Orin relinquishes the right to his daughter Neko's control, care, custody, and earnings. This act is emancipation. Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract does not change the fact that Phil is bound by the contract. Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is void as a matter of law. Elmo, a minor, misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos. Ordinarily, Elmo can disaffirm the contract under any circumstances Jenna, a minor acting on her own, signs a contract to buy a horse and its tack from Field Equine Ranch. Later, after taking possession of the horse and tack, Jenna disaffirms the deal. She must return both the horse and the tack. Ruth, a minor, charges groceries at Sam's Mini-Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's the reasonable value of the groceries. Jacquie signs a contract to buy a car just before reaching the age of majority. After reaching the age of majority, Jacquie does not take possession or make payments. Most courts would hold, with respect to the contract, that this is disaffirmance.

Max, a minor subject to his parents' care and control, signs a contract to rent an apartment from Noel for one year. Before the end of the term, Max moves out. Noel sues for the rent for the rest of the term. Max can disaffirm the contract and avoid liability for the rent. Lindsey, an emergency medical technician, is called to an accident scene by Nicole and renders medical care to Marvin, a minor. Lindsey may recover the cost from Marvin. On Tim's eighteenth birthday, he decides that he no longer wants to keep a car he bought from Woody's Autos, Inc., when he was seventeen. His right to disaffirm the deal will depend on whether Tim acts within a reasonable period of time. Delia enters into, and fails to disaffirm soon after reaching the age of majority, a contract with Electronics Stores, Inc. (ESI). Later Delia attempts to disaffirm the contract. ESI files a suit against her. The court will most likely consider the contract ratified if it is executed. Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is enforceable. Fernando obtains a consumer loan from Greater Regional Credit Union at an interest rate that exceeds the state's maximum. Greater Regional has committed usury. Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery—a medical procedure. This contract is enforceable by no one. Brasilia, a real estate broker licensed only in Connecticut, concludes a land sale in Delaware. She can not collect the commission, keep it, or foreclose on the property.

Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000. Cross-Country delivers the crates, but Baldwin does not pay. Cross-Country learns that the crates contained stolen goods. CrossCountry can recover $5,000 from Baldwin. Smitty enters into an illegal bargain with Taylor. Smitty can enforce the contract or recover for its value if he has been induced to enter into the bargain as a result of more than one year. Stu makes an offer to Tina to enter into a contract. Tina accepts the offer. A valid contract requires a valid offer and a valid acceptance. Debit & Credit Accounting Services and Brickwork Construction Company negotiate a contract. If it has all of the elements necessary for one of the parties to enforce it in court, it is Valid Courtney promises to buy illegal digital copies of music and movies from Devin, who promises to deliver on August 15. These promises are most likely void. Cory enters into a contract with Diane to act as her personal sports trainer. If they later dispute the meaning, and the contract contains unclear terms, the rules of contract interpretation will give effect to the parties intent as expressed in their contract Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a "personalized" letter inviting him to buy any item in the catalogue at the advertised price. This is not an offer Quick Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company. Before accepting the offer, Rapid learns that the palettes have been sold to Speedy Trucking Corporation. Quick is not liable, because the sale revoked the offer to Rapid

Overnight Delivery Service delivers a package to Pam. At the request of Overnight's delivery person, to acknowledge receipt Pam signs a digital pad. This signing creates a digitized handwritten signature. Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by email will be considered effective when sent. Todos Ltd. agrees to supply United Steel, Inc., with minerals from Venezuela. When the government is unexpectedly overthrown in a revolution, Todos can obtain the goods only at a much higher price. United agrees to pay but later files a suit to recover the difference. The court will most likely rule that an unforeseen difficulty supported the contract modification here Suki works for Renaldo. At the end of her first year, Renaldo promises to pay her a bonus for her "four quarters of success." Renaldo's promise is unenforceable because Suki's performance is past. Speedy Assembly Company promises its employees a 10-percent raise at the end of the year if productivity has increased and management feels it is warranted. Speedy must do nothing. Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words "payment in full." Nat cashes the check. This discharges the entire debt if the debt is unliquidated. Boyd is a minor. As a minor, Boyd has the capacity to enter into a valid contract

Stacy, a minor, charges the cost of an expensive leather jacket at a Girl's Trend store. Two nights later, Stacy loses the jacket at Minors Only Club. She disaffirms the jacket's purchase. Stacy owes Girl's Trend the reasonable value of the jacket if it is deemed "necessary". Mica, a minor, signs a contract to pay National Fitness Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continued to use the club. This act is ratification. Opie enters into a contract with Belle. Later, Opie is adjudged mentally incompetent. Raye, Opie's daughter, attempts to void Opie's contract with Belle on the ground of Opie's incompetency. The contract is enforceable if Opie had capacity at the time the contract was formed. Bree is a real estate broker licensed only in Minnesota. She concludes a sale in North Dakota on O'Reilly's behalf. Bree's contract with O'Reilly to be paid a certain commission for the sale is Unenforceable....