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Business and Professional Programs
BMGT 380 – Final Exam
There are 25 multiple choice questions; there are 9 essay
questions.
The exam is worth a total of 100 points.
Each question is worth 2 points.
This is an application-oriented exam; you will not find the
answer to questions verbatim in the text.
If you believe a question is not covered in any of the
assigned materials, you have missed the issue and need to re-think.
Put letter of correct answer on the answer sheet at the
bottom of this page. There is only one correct answer to each question.
1. Sam orally agreed
to sell Ramie some land for $500,000. Ramie paid Sam the $500,000; Sam gave
Ramie the deed to the land. Ramie took possession of the land and began
building a cabin on it. One month later, Sam tried to retake possession of the
land by arguing that the contract for the sale was invalid because it was oral,
not written. Sam sued Ramie to invalidate 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.
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
Ramie had begun building a cabin on the property, Sam cannot rescind the
contract.

2. On Tuesday, Sam
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
the CDs.” On Wednesday, Sam agreed to sell the CDs to Jason, and Jason
immediately gave Sam a letter that stated:
“Sam, I will buy your CD collection for $100. As we
agreed, I will pay you on Friday when I pick up the CDs. Yours truly,
Jason.”
Upon Sam’s receipt of this letter on Wednesday, what best
describes Sams contract agreement(s)?
a) By forming an agreement with Jason, Sam breached his
contract with Sandy because he did not effectively revoke his offer to Sandy.
b) Sam has formed
contracts with both Jason and Sandy because Sam did not effectively revoke his
offer to Sandy and created an enforceable written agreement with Jason.
c). Sam and Jason have formed a valid, enforceable contract;
Sams offer to Sandy was properly revoked.
d) Sam effectively revoked his offer to Sandy, but has not
formed an enforceable contract 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 a dispute arises they must submit to binding arbitration
to resolve the dispute. After they had been doing business together for a year,
a dispute arose under the terms of the contract. Rather than submit to
arbitration, Mac filed a lawsuit against Rhamad. Most likely the court will:
a) hear the lawsuit
because Mac cannot be compelled to submit to arbitration; he is
constitutionally entitled to a jury trial if he requests a trial.
b) conduct a bench trial, then order a remedy without
compelling Mac to submit to arbitration 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 not satisfied with the trial decision.
4. Roxy, while
driving through Wyoming to her home in Montana, accidentally lost control of
her car and drove it through a window into a store owned by Colt. Colt sued
Roxy in a Wyoming 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 cannot exercise its long arm statute only in cases
involving automobile accidents.
b) no, because Wyoming has no in personam jurisdiction over
Roxy, and cannot justify minimum contacts in this case.
c) yes, Wyoming can exercise in personam jurisdiction in
this case because any state court has personal jurisdiction in every diversity
of citizenship case.
d) yes, because Wyoming can assert in personam jurisdiction
over Roxy under the minimum contacts test.
5. Assume a
salesperson intentionally made one of the following statements – knowing that
the statement was false – to a customer considering a purchase. Which statement
could create liability for fraudulent misrepresentation if the customer made
the purchase?
a) In my opinion, this car is in flawless mechanical
condition.
b) This crane will probably lift about 10,000 pounds.
c) This car is a real gem.
d) 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
by orange plastic fencing typically used for construction projects. Ram stopped
to watch a metal beam being lifted by a crane on the construction site. As the
beam swung through the air, Ram thought it was going to fall and jumped forward
quickly off the sidewalk and into the construction project property, falling
into and smashing the orange plastic fencing. As Ram landed inside the
construction project, the beam fell near Ram. The beam did not hit Ram but some
rocks were thrown onto Ram as the beam fell, cutting his arm badly 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 and trespassers can never recover damages.
b) Lose, because pedestrians are always contributorily
negligent in such cases involving 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 Constructions
negligence.
7. Kim carelessly
parked her car on a steep hill, leaving the car in neutral and failing to
engage 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 yards away. The roof of the burning barn fell and damaged a
passing car owned by Ray. Can Ray likely 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 Rays car, even though Kim did not directly hit the car.
c) No, because of the unforeseeable intervening force
doctrine.
d) No, regardless of Kims negligence in parking the car as
her negligence was not the proximate cause of the accident and harm that
occurred to Ray.
8. Li sued Don in
negligence. Lis losses total $100,000. Under a contributory negligence system,
if Li is found to be contributorily negligent for her own injuries, what
damages will Li like recover from Don?
a) None.
b) $100,000.
c) $100,000 minus the percentage of fault (e.g., 20%, 60%,
etc.) for which Li was responsible.
d) $100,000 minus the percentage of fault for which Li was
responsible, so long as Li was not more than 50% responsible for the injuries.
9. Don promised to buy his girlfriend, Sophie,
a new car so Sophie sold her old car. Don now refuses to buy Sophie the car.
Sophie has a job that requires her to have a car to get to work. If Sophie sues
Don to enforce the promise, the likely result is that the promise will:
a) Be enforced under
promissory estoppel because Sophie reasonably relied on Don’s promise, to her
detriment.
b) Not be enforced as Sophie was not unjustly enriched
simply because she did not receive the car.
c) Be enforced because the car is a necessity for Sophie and
all contracts for necessities are binding and enforceable for all parties even
if contract formation is flawed.
d) Not be enforced as Dons promise was a gift to Sophie;
Sophie gave consideration, but Don did not.
10. X and Y agreed
that X would sell Y his small business, including the land on which the
business was situated, for $500,000. Both X and Y knew at the time the contract
was formed that the business was actually worth $800,000. Is this a valid,
enforceable contract?
a) Yes, provided the contract was in writing, in accordance
with the Statute of Frauds and the parties freely consented.
b) Yes, provided the contract was in accordance with state
statutory law that permits real 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 $10,000 from Faber
Pencil Co. Both parties are merchants. Faber can accept the offer by:
a) Promising to ship
the pencils.
b) Promptly shipping the pencils.
c) Accepting the offer on Fabers own written standard form
contract.
d) All of the above could be valid acceptance.
12. Ralph, a 16-year old minor, is manager for
the high school football team. Ralph signed a contract to purchase alcoholic
beverages from Liquormart, Inc. for the team party. This contract is:
a) Void as a matter
of law because it is illegal to sell alcohol to minors by state law.
b) Void only if Ralph misrepresented his age and told
Liquormart he was an adult.
c) Valid and enforceable, but Ralph has the right to
disaffirm because he is a minor.
d) 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 constitute a sales contract?
a) Purchasing
medications from a pharmacy.
b) Hiring a contractor to make home repairs.
c) Purchasing insurance policies from an insurance agent.
d) Selling books to customers in a bookstore.
e) All of the above.
14. Fay was admitted
to Global Associates, an existing general partnership on January, 2014. In
June, 2014, a partnership debt incurred in October, 2013 came due. Fay is:
a) Not liable for the
debt because the debt was incurred prior to her joining the partnership.
b) Only liable for the debt up to the amount of her capital
contribution to the partnership.
c) Personally liable only for 50% of the total debt if 50%
of the other partners do not pay.
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), all splitting the
profits equally. Kelly contributed 70% of the capital upon formation of the
partnership. Later, the partners agreed
to dissolve the partnership as it was not as profitable as they had expected,
and its liabilities were greater than its assets.
The losses are paid by:
a) All the partners
in proportion to their capital contributions.
b) All the partners in proportion to their share of the
profits.
c) Kelly alone because she contributed the most capital.
d) Lars and Mona because they contributed the least amount
of capital.
16. CCs Day Spa,
LLC, is a member-managed limited liability company. So long as it is in
accordance with state law, and unless the members previously agreed otherwise,
voting rights will be apportioned according to:
a) Participation in management.
b) Capital contributions.
c) The number of members.
d) Each individual transaction of the LLC, and will vary
with each transaction.
17. Jim and Kiley
are architects and members of JK, PC, a professional corporation. Jim and Kiley
supervise Luc, an employee of JK. As a member of JK, Jim and Kiley
a) Are personally
liable for any/all tort(s) committed by Kiley.
b) May be personally liable for malpractice committed by Luc
working within the scope of his job at JK.
c) Has limited liability for any of Kileys acts of
malpractice.
d) Has no liability for any torts committed by Luc.:
18. Kisha operates
River Valley Soccer, an athletic equipment shop as a sole proprietorship. Taxes
on the businesss income are paid by
a) 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 loan acquired 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 stores in 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 in Maryland were infected with
bacteria. Determine the constitutionality of the Virginia statute. The statute
is:
a) Unconstitutional; it violates grocery store owners
substantive and procedural due process 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 Virginias
police power.
d) Constitutional; the statute imposes an undue burden on
intrastate and interstate commerce.
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 corporations in which
all shareholders have unlimited liability.
b) LLCs can be
formed without any specific steps being taken by the owners as compared with
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 private
corporations that must sell shares publically to investors.
21. Pete, who
collects antique cars, hired Ann as his agent to find and purchase a 1965 Ford
Mustang on his behalf. Ann found a Mustang like Pete wanted, but Ann fell in
love with the car and purchased it for herself.
Which of the following illustrates Anns liability, if any,
in her duty as agent to Pete in this situation?
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 with Petes funds.
c) Ann usurped an opportunity for Pete, but has not violated
the duty of loyalty to Pete by competing with Petes interests.
d) Ann violated the duty of loyalty to Pete by competing
with Petes interests, and has usurped an opportunity for Pete.
22. Ed hired Frankie, who is 13 years old, to buy a computer
on Eds 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 be bound by authorized
contracts Frankie enters into on Eds behalf.
b) This is a valid
agency relationship even though Frankie is a minor, but Ed would have the
option of disaffirming any contracts Frankie enters into on Eds behalf.
c) This is a valid
agency relationship even though Frankie is a minor, but Frankie would not be
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 the following situations?
a) A lawsuit challenging the constitutionality of a new
state statute.
b) A dispute between neighbors over a property boundary.
c) An alleged theft of patio furniture from the patio of a
house.
d) 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 Windell Hotels, Inc. in Cabo Mar, Mexico. Windell Hotels is
an international hotel chain incorporated in Delaware with hotels in North and
South America; Windell Hotels has no hotels in Arizona but does advertise and
book reservations for all its hotels over the internet.
While a guest in the hotel in Cabo Mar, Jones was walking
across the hotel lobby, and slipped and fell on the wet marble floor that had
been just washed by the maintenance staff. The staff had placed a wet floor
sign on the lobby floor on the side wall of the lobby.
Jones was taken to the nearest Mexican hospital where
surgery was necessary to place a pin in his broken leg. Anxious to return home
and see his regular doctor, Jones flew out of Mexico shortly after the surgery.
He required two plane seats and an ambulance to meet him at various airports.
His health insurance would not cover his hospital stay in Mexico as it was
located outside the U.S. When back in Arizona, Jones was unable to work for 8
weeks and required another surgery to remove the pin. He also required several
weeks of physical therapy.

24. Jones wants to sue Windell Hotels, Inc. in federal court
for $450,000 to recover all his medical expenses in Mexico and the US; for
$50,000 for the cost of the plane trip from Mexico to Arizona, the 2 plane
seats and ambulance costs in various airports; $10,000 for 8 weeks of lost
wages; and $50,000 for pain and suffering resulting from the injury. Can he 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 involve federal laws.
c) Yes, because the Federal Court may have jurisdiction over
citizens of different states and the lawsuit involves damages greater than
$75,000.
d) No, because the Federal Court has no jurisdiction over an
accident that occurred in Mexico.

25. It would be
easier for Jones to bring the lawsuit in Arizona state court, but he wonders if
the court can get Windell Hotels to come to Arizona. Can the Arizona state
court impose jurisdiction over Windell 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 contact with Arizona to allow 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 Windell Hotels has sufficient minimum
contact with Arizona the state to justify the courts use of the long arm
statute.

Scroll down, please to begin the essay portion of the exam.

Section: Section II. Essay: 9 questions/50 points
Questions 1-8 = 5 pts each; question 9 = 10 pts
Use the answer sheet at the end of the exam. Number each
answer. DO NOT recopy questions.
Answer each question in complete paragraphs; do not list or
answer in phrases (points will be deducted for doing so).
None of these questions can be adequately/comprehensively
answered in just a paragraph, so be comprehensive, in depth in your answers,
but be careful to not include irrelevant information.
Points will be deducted for answers that are not well
justified, not sufficiently comprehensive.
Use APA in text citations, as appropriate but please do not
use direct quotes. Use only classroom notes/comment and assigned reading or
watching materials as resources, which is all you need to complete the exam.
DO NOT use any outside, internet resources as they are often
inaccurate.
Follow directions carefully. Answer all parts of each
question.
Be sure to directly answer the question(s) asked.
___________________________________________________________________
Refer to the scenario for Multiple Choice questions 24-25
above to answer the following essay question #1 only:
1. Jones sued Windell
Hotels, Inc. for negligence to recover damages for his injuries resulting from
the fall in the Cabo Mar hotel.
Will Jones likely be successful in the negligence lawsuit
against Windell Hotels? Explain fully why or why not.

2. Clarkson and Lee did not have a contract, but Clarkson
completed extensive landscaping in Lees yard by mistake while Lee was away on
vacation. Clarkson sent Lee a bill for the landscaping service but Lee refused
to pay.
Determine the likely result if Clark sues Li to recover the
costs of the landscaping.

3. Racer contracted in writing to drive Owners
one-of-a-kind, specially designed championship race car in the Miami 500 Race
on July 15 for a fee of $2500. On July 1, the race car was destroyed in an
accidental fire in a storage warehouse where the race car was being stored
prior to the race. Owner owns no other race cars, so Owner considered the
contract discharged. Racer claimed that she is still entitled to the $2500 fee
because she and Owner had a valid enforceable contract.
Compare and contrast the rights and obligations of Racer and
Owner under the contract as of July 1.

4. Compare and contrast the rights and possible liabilities
for a merchant selling goods in As Is condition with the rights and possible
liabilities for selling goods with an express warranty stating, This product
is quality Grade A.

5. Aaron plans to
open Aarons Pet Supplies, a pet supplies outlet, and plans to hire 2 part-time
employees. Aaron will invest only his own money in the business. He does not
expect to make any profit for at least 2 years and to make very little profit
for the next 3 years after the first 2 years. He does expect to make a profit
eventually.
Which form of business organization is most appropriate and
easiest for Aaron to use in opening his pet store and why? (there is only one
correct answer)

6. There are extensive federal regulations governing
airplanes and pilots. Assume that the state of New York passed a statute
containing numerous requirements, some conflicting with federal regulations,
covering operation of airplanes and licensing of airplane pilots.
If the New York state statue is challenged as being
unconstitutional, what is the likely result? Describe the applicable law and
rationale for your conclusion.

7. Fran, Joe, and Mike formed a general partnership to operate
a flower shop called Fresher Flowers. One of Frans jobs is to make deliveries
using the partnership truck. In one such delivery, Fran negligently ran a stop
sign, striking a car driven by Peggy, causing damage to the car and injury to
Peggy.

Analyze and describe (1) the personal liability of Fran,
Joe, and Mike, (2) the liability of the partnership, Fresher Flowers.

8. Mark plans to open a barbeque restaurant. He can either
open the business as a sole proprietorship or obtain a franchise for Smokin
Hot Bar-B-Q.
Compare and contrast the advantages and disadvantages of
opening the business as a sole proprietorship and a franchise.

9. 10 points
Leon, a bank vice president, joined Fitness Center, Inc.
(FC). He signed a contract for the membership. The contract stated, among other
things, an exculpatory clause that FC
shall not be liable for any claim, demand, cause of action
of any kind whatsoever for, or on account of death, personal injury, property
damage or loss of any kind resulting from or related to Members use of
facilities or participation in any sport, exercise or activity within the club
premises
While working out at FC, Leon sustained back injuries when a
treadmill on which he was walking suddenly collapsed at FC. Leon sued FC for
his injuries.
Discuss:
a. Is the exculpatory clause in the contract valid or
invalid in Leons case and why?
b. Possible product liability claim(s) for which Leon could
sue FC and why product liability claims might be applicable to this case
c. Possible ordinary (non-product liability) negligence
claim for which Leon could sue FC and why a negligence claim might be applicable
to this case
d. The likely outcome if Leon sues FC under product
liability
e. The likely outcome if Leon sues FC under ordinary
negligence

Business and Professional ProgramsBMGT 380 – Final Exam There are 25 multiple choice questions; there are 9 essay
questions.The exam is worth a total of 100 points.Each question is worth 2 points.This is an application-oriented exam; you will not find the
answer to questions verbatim in the text.If you believe a question is not covered in any of the
assigned materials, you have missed the issue and need to re-think.Put letter of correct answer on the answer sheet at the
bottom of this page. There is only one correct answer to each question. 1. Sam orally agreed
to sell Ramie some land for $500,000. Ramie paid Sam the $500,000; Sam gave
Ramie the deed to the land. Ramie took possession of the land and began
building a cabin on it. One month later, Sam tried to retake possession of the
land by arguing that the contract for the sale was invalid because it was oral,
not written. Sam sued Ramie to invalidate 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.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
Ramie had begun building a cabin on the property, Sam cannot rescind the
contract. 2. On Tuesday, Sam
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
the CDs.” On Wednesday, Sam agreed to sell the CDs to Jason, and Jason
immediately gave Sam a letter that stated:”Sam, I will buy your CD collection for $100. As we
agreed, I will pay you on Friday when I pick up the CDs. Yours truly,
Jason.”Upon Sam’s receipt of this letter on Wednesday, what best
describes Sams contract agreement(s)?a) By forming an agreement with Jason, Sam breached his
contract with Sandy because he did not effectively revoke his offer to Sandy.b) Sam has formed
contracts with both Jason and Sandy because Sam did not effectively revoke his
offer to Sandy and created an enforceable written agreement with Jason.c). Sam and Jason have formed a valid, enforceable contract;
Sams offer to Sandy was properly revoked.d) Sam effectively revoked his offer to Sandy, but has not
formed an enforceable contract 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 a dispute arises they must submit to binding arbitration
to resolve the dispute. After they had been doing business together for a year,
a dispute arose under the terms of the contract. Rather than submit to
arbitration, Mac filed a lawsuit against Rhamad. Most likely the court will:a) hear the lawsuit
because Mac cannot be compelled to submit to arbitration; he is
constitutionally entitled to a jury trial if he requests a trial.b) conduct a bench trial, then order a remedy without
compelling Mac to submit to arbitration 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 not satisfied with the trial decision. 4. Roxy, while
driving through Wyoming to her home in Montana, accidentally lost control of
her car and drove it through a window into a store owned by Colt. Colt sued
Roxy in a Wyoming 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 cannot exercise its long arm statute only in cases
involving automobile accidents.b) no, because Wyoming has no in personam jurisdiction over
Roxy, and cannot justify minimum contacts in this case.c) yes, Wyoming can exercise in personam jurisdiction in
this case because any state court has personal jurisdiction in every diversity
of citizenship case.d) yes, because Wyoming can assert in personam jurisdiction
over Roxy under the minimum contacts test. 5. Assume a
salesperson intentionally made one of the following statements – knowing that
the statement was false – to a customer considering a purchase. Which statement
could create liability for fraudulent misrepresentation if the customer made
the purchase?a) In my opinion, this car is in flawless mechanical
condition.b) This crane will probably lift about 10,000 pounds.c) This car is a real gem.d) 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
by orange plastic fencing typically used for construction projects. Ram stopped
to watch a metal beam being lifted by a crane on the construction site. As the
beam swung through the air, Ram thought it was going to fall and jumped forward
quickly off the sidewalk and into the construction project property, falling
into and smashing the orange plastic fencing. As Ram landed inside the
construction project, the beam fell near Ram. The beam did not hit Ram but some
rocks were thrown onto Ram as the beam fell, cutting his arm badly 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 and trespassers can never recover damages.b) Lose, because pedestrians are always contributorily
negligent in such cases involving 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 Constructions
negligence.7. Kim carelessly
parked her car on a steep hill, leaving the car in neutral and failing to
engage 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 yards away. The roof of the burning barn fell and damaged a
passing car owned by Ray. Can Ray likely 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 Rays car, even though Kim did not directly hit the car.c) No, because of the unforeseeable intervening force
doctrine.d) No, regardless of Kims negligence in parking the car as
her negligence was not the proximate cause of the accident and harm that
occurred to Ray. 8. Li sued Don in
negligence. Lis losses total $100,000. Under a contributory negligence system,
if Li is found to be contributorily negligent for her own injuries, what
damages will Li like recover from Don?a) None.b) $100,000.c) $100,000 minus the percentage of fault (e.g., 20%, 60%,
etc.) for which Li was responsible.d) $100,000 minus the percentage of fault for which Li was
responsible, so long as Li was not more than 50% responsible for the injuries. 9. Don promised to buy his girlfriend, Sophie,
a new car so Sophie sold her old car. Don now refuses to buy Sophie the car.
Sophie has a job that requires her to have a car to get to work. If Sophie sues
Don to enforce the promise, the likely result is that the promise will: a) Be enforced under
promissory estoppel because Sophie reasonably relied on Don’s promise, to her
detriment.b) Not be enforced as Sophie was not unjustly enriched
simply because she did not receive the car.c) Be enforced because the car is a necessity for Sophie and
all contracts for necessities are binding and enforceable for all parties even
if contract formation is flawed.d) Not be enforced as Dons promise was a gift to Sophie;
Sophie gave consideration, but Don did not. 10. X and Y agreed
that X would sell Y his small business, including the land on which the
business was situated, for $500,000. Both X and Y knew at the time the contract
was formed that the business was actually worth $800,000. Is this a valid,
enforceable contract?a) Yes, provided the contract was in writing, in accordance
with the Statute of Frauds and the parties freely consented.b) Yes, provided the contract was in accordance with state
statutory law that permits real 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 $10,000 from Faber
Pencil Co. Both parties are merchants. Faber can accept the offer by: a) Promising to ship
the pencils.b) Promptly shipping the pencils.c) Accepting the offer on Fabers own written standard form
contract.d) All of the above could be valid acceptance. 12. Ralph, a 16-year old minor, is manager for
the high school football team. Ralph signed a contract to purchase alcoholic
beverages from Liquormart, Inc. for the team party. This contract is: a) Void as a matter
of law because it is illegal to sell alcohol to minors by state law.b) Void only if Ralph misrepresented his age and told
Liquormart he was an adult.c) Valid and enforceable, but Ralph has the right to
disaffirm bec

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