Sam orally agreed to sell Jamie some land for

Questions1. Sam orally agreed to sell Jamie some land for $500,000. Jamie paid Sam the $500,000;Sam gave Jamie the deed to the land. Jamie took possession of the land and began buildinga cabin on it. One month later, Sam tried to retake possession of the land by arguing thatthe contract for the sale was invalid because it was oral, not written. Sam sued Jamie toinvalidate the contract and retake the land.The court will likely conclude that Sam will:a) Win; the sale exceeded $500 so the contract must be written to be valid under theStatute of Frauds.b) Win; all land sales contracts must be written.c) Lose; because the contract was fully executed Sam cannot rescind the contract.d) Lose; because Jamie had begun building a cabin on the property, Sam cannot rescindthe contract.2. On Tuesday, Jon offered to sell his CD collection to Sandy for $100. Sandy replied,"I’m interested. I’ll think it over and let you know Thursday whether I want to buy theCDs." On Wednesday, Jon agreed to sell the CDs to Jason, and Jason immediately gave Jona letter that stated:"Jon, I will buy your CD collection for $100. As we agreed, I will pay you on Friday when Ipick up the CDs. Yours truly, Jason."Upon Jon’s receipt of this letter on Wednesday, what best describes Jon’s contractagreement(s)?a) By forming an agreement with Jason, Jon breached his contract with Sandy because hedid not effectively revoke his offer to Sandy.b) Jon has formed contracts with both Jason and Sandy because Jon did not effectivelyrevoke his offer to Sandy and created an enforceable written agreement with Jason.c). Jon and Jason have formed a valid, enforceable contract; Jon’s offer to Sandy wasproperly revoked.d) Jon effectively revoked his offer to Sandy, but has not formed an enforceablecontract with Jason because Jason has not yet paid for the CD collection.3. Mac and Rhamad signed a business contract with a clause that provides that if adispute arises they must submit to binding arbitration to resolve the dispute. After theyhad been doing business together for a year, a dispute arose under the terms of thecontract. Rather than submit to arbitration, Mac filed a lawsuit against Rhamad. Mostlikely the court will:a) Hear the lawsuit because Mac cannot be compelled to submit to arbitration; he isconstitutionally entitled to a jury trial if he requests a trial.b) Conduct a hearing, then order a remedy without compelling Mac to submit toarbitration or to a jury trial.c) Compel Mac to submit to arbitration to resolve the dispute.d) Hear the lawsuit in a trial, then compel Mac to submit to arbitration, if Mac is notsatisfied with the trial decision.4. Roxy, while driving through Wyoming to her home in Montana, accidentally lost controlof her car and drove it through a window into a store owned by Colt. Colt sued Roxy in aWyoming court for damages to his store.Will the Wyoming court likely be able to exercise jurisdiction over Roxy?a) No, because Wyoming has no in personam (personal) jurisdiction over Roxy, and cannotexercise its long arm statute only in cases involving automobile accidents.b) No, because Wyoming has no in personam jurisdiction over Roxy, and cannot justifyminimum contacts in this case.c) Yes, Wyoming can exercise jurisdiction in this case because there is a federal questioninvolved due to the diversity of citizenship between the parties.d) Yes, because Wyoming can assert in personam jurisdiction over Roxy under theminimum contacts test.5. Assume a salesperson intentionally made one of the following statements – knowing thatthe statement was false – to a customer considering a purchase. Which statement couldcreate liability for fraudulent misrepresentation if the customer made the purchase?a)b)c)d)“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.”6. Ram was walking down the sidewalk by a construction project site in a downtown area.The project was owned and operated by Modern Construction, Inc. and was surrounded byorange plastic fencing typically used for construction projects. Ram stopped to watch ametal beam being lifted by a crane on the construction site. As the beam swung throughthe air, Ram thought it was going to fall and jumped forward quickly off the sidewalk andinto the construction project property, falling into and smashing the orange plasticfencing. As Ram landed inside the construction project, the beam fell near Ram. Thebeam did not hit Ram but some rocks were thrown onto Ram as the beam fell, cutting hisarm so that it required 35 stitches.If Ram sues Model Construction for negligence, the likely result will be that Ram will:a) Lose, because he assumed the risk as a trespasser on the construction site andtrespassers can never recover damages.b) Lose, because pedestrians are always liable under contributory negligence in such casesinvolving trespassing.c) Win, because it is always foreseeable that a beam could fall on a rescuing pedestrian.d) Win, if the beam fell because of Model Construction’s negligence.7. Kim carelessly parked her car on a steep hill, leaving the car in neutral and failing toengage the parking brake. The car rolled down the hill and knocked down an electric line.The sparks from the broken line ignited a grass fire that spread to a barn several yardsaway. The roof of the burning barn fell and damaged a passing car owned by Ray. Can Raylikely recover damages from Kim under ordinary negligence?a) Yes, because Kim was negligent in parking the car.b) Yes, because Kim set in motion the chain of events that resulted in damage to Ray’s car,even though Kim did not directly hit the car.c) No, because of the unforeseeable intervening force doctrine.d) No, regardless of Kim’s negligence in parking the car as her negligence was not theproximate cause of the accident and harm that occurred to Ray.8. Lee sued Don in negligence. Lee’s losses total $100,000. Under a contributorynegligence system, if Lee is found to be contributorily negligent for her own injuries, whatdamages will Lee like recover from Don?a) None.b) $100,000.c) $100,000, less the percentage of fault (e.g., 20%, 60%, etc.) for which Li wasresponsible.d) $100,000, less the percentage of fault for which Li was responsible, so long as Li wasnot more than 50% responsible for the injuries.9. Don promised to buy his girlfriend, Sophie, a new car so Sophie sold her old car. Donnow refuses to buy Sophie the car. Sophie has a job that requires her to have a car to getto work. If Sophie sues Don to enforce the promise, the likely result is that the promisewill:a) Be enforced under promissory estoppel because Sophie reasonably relied on Don’spromise, to her detriment.b) Not be enforced because Sophie received money from the sale of her old car; if shealso received the new car from Don, she would be unjustly enriched.c) Be enforced because the car is a necessity for Sophie and all contracts for necessitiesare binding and enforceable for all parties even if contract formation is flawed.d) Not be enforced as Don’s promise was a gift to Sophie; Sophie gave consideration, butDon did not.10. X and Y agreed that X would sell Y his small business, including the land on which thebusiness was situated, for $500,000. Both X and Y knew at the time the contract wasformed that the business was actually worth $800,000. Is this a valid, enforceablecontract?a) Yes, provided the contract was in writing, in accordance with the Statute of Frauds andthe parties freely consented.b) Yes, provided the contract was in accordance with state statutory law that permitsreal estate sales for 40% or more below market value.c) No, because $500,000 is not valid consideration for a business worth $800,000.d) No, because X has no pre-existing legal duty to sell his business.11.Fine Art Corp. sent a written offer to buy 10,000 pencils for a total of $10,000from Faber Pencil Co. Both parties are merchants. Faber can accept the offer by:a)b)c)d)Promising to ship the pencils.Promptly shipping the pencils.Accepting the offer on Faber’s own written standard form contract.All of the above could be valid acceptance.12.Ralph, a 16-year old minor, is manager for the high school football team. Ralphsigned a contract to purchase alcoholic beverages from Liquormart, Inc. for the teamparty. This contract is:a)b)c)d)Void as a matter of law because it is illegal to sell alcohol to minors by state law.Void only if Ralph misrepresented his age and told Liquormart he was an adult.Valid and enforceable, but Ralph has the right to disaffirm because he is a minor.Valid and enforceable, if Liquormart knew that Ralph was a minor.13. Which of the following activities may involve the use of a contract, and/or constitutea sales contract?a)b)c)d)e)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.14. Fay was admitted to Global Associates, an existing general partnership on January,2014. In August, 2014, a partnership debt that was incurred in October, 2013 came due.Fay is:a) Not liable for the debt because the debt was incurred prior to her joining thepartnership.b) Only liable for the debt up to the amount of her capital contribution to thepartnership.c) Personally liable only for 50% of the total debt if 50% of the other partners do notpay.d) Personally liable for the full extent of the debt if the other partners do not pay.15. Kelly, Lars and Mona agreed to be partners in Neighborhood Deliveries (ND), allsplitting the profits equally. Kelly contributed 70% of the capital upon formation of thepartnership. Later, the partners agreed to dissolve the partnership as it was not asprofitable as they had expected, and its liabilities were greater than its assets.The losses are paid by:a)b)c)d)All the partners in proportion to their capital contributions.All the partners in proportion to their share of the profits.Kelly alone because she contributed the most capital.Lars and Mona because they contributed the least amount of capital.16. CC’s Day Spa, LLC, is a member-managed limited liability company. So long as it is inaccordance with state law, and unless the members previously agreed otherwise, votingrights will be apportioned according to:a)b)c)d)Participation in management.Capital contributions.The number of members.Each individual transaction of the LLC, and will vary with each transaction.17. Jim and Kiley are architects and general partners of JK Designs. Jim and Kileysupervise Luc, an employee of JK Designs. As partners, Jim and Kileya) Are personally liable for any/all tort(s) committed by Luc.b) May be liable for malpractice, but not torts, committed by Luc while Luc is workingwithin the scope of his job at JK.c) May be liable for torts committed by Luc while Luc is working within the scope of hisjob at JK.d) Have no liability for any torts committed by Luc at any time.18. Kisha operates River Valley Soccer, an athletic equipment shop, as a soleproprietorship. Taxes on the business’s income are paid bya) No one; since it is a sole proprietorship there are no business taxes.b) Kisha as the sole owner.c) The state or federal government if Kisha holds a Small Business Administration loanacquired to start her business.d) The business entity of River Valley Soccer, not Kisha personally.19. Assume that Virginia enacted a law prohibiting, until further notice, all grocery storesin Virginia from selling all powdered spices manufactured in, or shipped from, Maryland.This law was enacted because it was discovered that the spices recently manufactured inMaryland were infected with bacteria. Determine the constitutionality of the Virginiastatute. The statute is:a) Unconstitutional; it violates grocery store owners’ substantive and procedural dueprocess rights under the 5th and 14th Amendments because they are private businesses.b) Unconstitutional; the statute imposes an undue burden on interstate commerce.c) Constitutional; it is a valid exercise of Virginia’s police power.d) Constitutional; the statute involves the sale of goods which is valid under UCC rules,thus, the state constitution does not apply.20. Distinguish which of the following is an advantage of limited liability companies (LLCs)over corporations.a)Only one member of a LLC must have unlimited liability as compared with corporationsin which all shareholders have unlimited liability.b) LLCs can be formed without any specific steps being taken by the owners as comparedwith corporations that must file Articles of Incorporation with the State.c) In most cases, a LLC can choose whether to be taxed as a partnership or corporation,as compared with corporations that are subject to double corporate taxation.d) LLCs can choose whether to sell shares publically to investors, as compared to privatecorporations that must sell shares publically to investors.21. Pete, who collects antique cars, hired Ann as his agent to find and purchase a 1965Ford Mustang on his behalf. Ann found a Mustang just like Pete wanted, but Ann fell inlove with the car and purchased it for herself.Which of the following illustrates Ann’s liability, if any, in her duty as agent to Pete in thissituation?a) Ann has not violated the duty of loyalty to Pete; she can find another Mustang for him.b) Ann has not engaged in self-dealing because she did not purchase the Mustang withPete’s funds.c) Ann usurped an opportunity for Pete, but has not violated the duty of loyalty to Pete bycompeting with Pete’s interests.d) Ann violated the duty of loyalty to Pete by competing with Pete’s interests, and hasusurped an opportunity for Pete.22. Ed hired Frankie, who is 13 years old, to buy a computer on Ed’s behalf.Which of the following identifies the legal relationship between Ed and Frankie?a) This is a valid agency relationship even though Frankie is a minor, and Ed would bebound by authorized contracts Frankie enters into on Ed’s behalf.b) This is a valid agency relationship even though Frankie is a minor, but Ed would havethe option of disaffirming any contracts Frankie enters into on Ed’s behalf.c) This is a valid agency relationship even though Frankie is a minor, but Frankie would notbe entitled to any payment under the terms of the agency because he is a minor.d) This is an invalid agency relationship because Frankie is a minor.23. Mediation might be more reasonable and appropriate than a trial in which of thefollowing situations?a)b)c)d)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 are appropriate for mediation.Answer questions 24-25 regarding the following scenario:Scenario: Jones, a resident of Arizona, booked reservations for a vacation at WorldHotels, Inc. in Cabo Mar, Mexico.World Hotels is an international hotel chainincorporated in Delaware with hotels in North and South America; World Hotels has nohotels in Arizona but does advertise and book reservations for all its hotels over theinternet, in any state. World Hotels has booked reservations in the past with residents ofArizona.While a guest in the hotel in Cabo Mar, Jones was walking across the hotel lobby, andslipped and fell on the wet marble floor that had been just washed by the maintenancestaff. The staff had placed a “wet floor” sign on the lobby floor on the side wall of thelobby.Jones was taken to the nearest Mexican hospital where surgery was necessary to place apin in his broken leg. Anxious to return home and see his regular doctor, Jones flew out ofMexico shortly after the surgery. He required two plane seats and an ambulance to meethim at various airports. His health insurance would not cover his hospital stay in Mexico asit was located outside the U.S. When back in Arizona, Jones was unable to work for 8weeks and required another surgery to remove the pin. He also required several weeks ofphysical therapy.24. Jones wants to sue World Hotels, Inc. for negligence for $450,000 to recover all hismedical expenses in Mexico and the US; for $50,000 for the cost of the plane trip fromMexico to Arizona, the 2 plane seats and ambulance costs in various airports; $10,000 for8 weeks of lost wages; and $50,000 for pain and suffering resulting from the injury. Canhe sue in federal court?a) Yes, because federal court always has jurisdiction over citizens of different states.b) No, because federal court does not have jurisdiction in cases that do not involvefederal laws.c) Yes, because the federal court may have jurisdiction over citizens of different statesand the lawsuit involves damages greater than $75,000.d) No, because the federal court has no jurisdiction over an accident that occurred inMexico.25. It would be easier for Jones to bring the lawsuit in Arizona state court, but hewonders if the court can get World Hotels to come to Arizona. Can the Arizona statecourt impose jurisdiction over World Hotels to bring the company to court in Arizona?a) No, because the subject of the lawsuit took place in a foreign country.b) No, because the corporation does not have sufficient minimum contacts with Arizona toallow the Arizona court to use the long arm statute to establish jurisdiction in Arizona.c) Yes, because the Jones is a resident of Arizona and he is the plaintiff in the lawsuit.d) Yes, because World Hotels has sufficient minimum contact with the state of Arizona tojustify the court’s use of the long arm statute.26. Dan went to Doctor to have an x-ray. Dan did not sign a written contract, and Dan andDoctor did not make an oral agreement regarding the x-ray. When Doctor billed Dan $500for the x-ray, Dan refused to pay. Doctor sued Dan to recover the $500. Which of thefollowing is true about Doctor’s lawsuit?a)b)c)d)Doctor can recover under the quasi-contract theory of promissory estoppel.Doctor can recover under an implied contract theory.Doctor cannot recover because there was no express contract.Doctor cannot recover because Dan did not give consideration for the bargain.27. Under the UCC, Section 2-207 (the "battle of the forms" provision), it is providedthat, when both parties to a contract are merchants, any additional terms added in theacceptance of a standard form contract can properly, validly become part of thecontractual agreement UNLESS:a) The original offer expressly limits any acceptance only to the terms in the originalstandard form offer.b) The additional terms in the acceptance materially alter the terms of the originalstandard form offer.c) The offeror notified the offeree, within a reasonable period of time, that theadditional terms were not acceptable.d) All of the above could be true.28. If Earl, a nonmerchant, offered to sell a chair to Isaac, a nonmerchant. Earl’s housecaught fire and destroyed the chair before Isaac accepted Earl’s offer to buy the chair.Consequently,a) The destruction of the chair constitutes an automatic valid revocation of the offer.b) The fire does not automatically revoke the offer, but because neither Earl nor Isaac isa merchant, the offer is revocable at any time at Earl’s option.c) Earl did not validly communicate a revocation to Isaac, so Isaac still has the option ofaccepting Earl’s offer; if Isaac accepts the offer, Earl must obtain a similar chair forIsaac or pay Isaac the equivalent value of the chair.d) Earl’s offer is automatically revoked by the fire, unless the offer was a firm offer.29. Reg offered to sell his motorcycle to Thelma for $8,000. Thelma replied, "Your priceis too high. I will purchase your motorcycle for $7,000". Reg agreed and they committedtheir agreement to writing. This transaction can be characterized as:a)An enforceable contract because Reg’s acceptance of Thelma’s offer was a clearlycommunicated acceptance.b) An enforceable contract because Thelma’s counteroffer was less than Reg’s originalofferc) An unenforceable contract because Thelma’s offer was not the mirror image of Reg’soriginal offer as is required under common law contract rules.d) An unenforceable contract unless either Reg or Thelma is a merchant, as defined bythe UCC, because sale of personal property contracts are valid only if one of theparties to the contract is a merchant.30. A ordered 100 19-inch color TV sets from B, and requested prompt shipment of thegoods. B promptly shipped to A 100 21-inch color TV sets. Prior to shipment, B did notnotify A that he was shipping nonconforming TVs as an accommodation. Assuming both Aand B are merchants, under UCC rules, in this case:a) There is no valid acceptance by B; shipping nonconforming goods acts as a counteroffer,and thus, cannot constitute an acceptance or create a valid, enforceable contract.b) Although B shipped nonconforming TVs, A is bound to pay the reasonable value of the21-inch nonconforming TV sets because B’s shipment constituted a valid acceptance, and abinding contract was formed at the time the goods were shipped.c) Although B shipped nonconforming TVs, if A accepts and later sells the 21-inch TVs, Ahas validly accepted the nonconforming goods and is bound to pay B reasonable value forthe 21-inch TVs.d) There is no contract because B’s acceptance (by shipping the goods) is not a mirrorimage of A’s offer.31. A owed B $1,000, collection of which was barred by the statute of limitations, but Awas unaware that period of limitations has passed.a) If C without consideration, orally promised A to pay the debt, B may recover $1,000from Cb) If C, without consideration, Promised A in writing to pay the debt, B may recover$1,000 from Cc) Both of the statement above are correctd) Nether (a) nor (b) is correct32. B & B Tape Co. orally agreed to sell 2,000 boxes of tape to Office Supply, Inc.(Office) at a rate of $1.00 per box, for a total of $2,000. Office orally agreed to thedeal. B & B delivered 1,000 boxes, totaling $1,000. Office accepted the delivery andused and sold the tape, but refused to pay for the goods, citing the Statute of Frauds.Under these circumstances, Office is obligated to pay:a) Nothing, and may keep the tape because the agreement is unenforceable because it wasnot written.b) $1,000 for the 1,000 boxes that Office accepted, but is not obligated to accept, or payfor, any more tapes.c) $2,000 as Office is bound to buy the entire 2,000 boxes of tape.d) $1,000 for the 1,000 boxes that Office already accepted, plus $500 for one-half ofthe remaining 1,000 boxes.33. Employer promised to pay Employee a $10,000 annual pension for the remainder ofEmployee’s life, upon Employee’s retirement. In return, Employee promised to payEmployer $100 per year for each of the years he works until retirement. Employee reliedon this promise and took out a mortgage on a retirement house. Three years later,Employer refused to honor his promise to pay Employee the $10,000 annual pension.Employer’s promise probably is:a. Not binding unless the agreement was in writing; such an agreement is subject to theStatute of Frauds because it is a contract that cannot possibly be performed within 1year.b. Not binding because the $100 per year given by Employee is inadequate considerationcompared to $10,000 annual pension to be paid by Employer.c. Not binding because the pension was to be paid in the future, thus, there was nopresent intent to be bound that is necessary for a valid contract.d. Is binding, under the circumstances, if all the other elements of a contract arepresent.34. Someone who recovers damages for breach of contract typically can recover:a) Only those compensatory damages/losses that can be proven with reasonable certainty.b) For all consequences of the breach, e.g., pain and suffering, whether or not thedamages are foreseeable.c) Only for foreseeable damages.d) Punitive damages.35. A orally offered to sell B 100 premium-grade blue ink ballpoint pens, but neglected tostate the price. B accepted via letter. A received the acceptance letter, but immediatelythereafter, A tried to get out of the deal. Assume that A and B are both merchants, asdefined under the UCC. At this point which of the following is most likely to be true aboutthis agreement between A and B?a) There is no valid contract because the offer is too indefinite.b) There is no valid contract because any offer for the sale of goods must be in writingand signed by both parties….