Level 1 – Page 9

BCL – L1 – SA – Q23 – Tort

When does strict product liability apply to defective and dangerous products?

Question

Under which of the following situations does strict product liability apply?

A Sale of a defective and unreasonably dangerous product.

B Manufacture of a defective and unreasonably dangerous product.

C Both (a) and (b) are correct.

D Neither (a) nor (b) are correct.

Answer

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Tags: Defective Product, Manufacture, Sale, Strict Product Liability, Tort
Level: Level 1

Topic: Tort

Bill purchased a can of Sipep from the Ajax Minimart. After he finished drinking the Sipep, Bill noticed that the can contained dead insects stuck on the inside bottom of the can. In a strict product liability tort action against Ajax, Bill must prove, among other things, that:

A Ajax is a merchant selling Sipep.

B Ajax knew or should have known of the defective condition.

C Ajax had prior notice of other similar problems with Sipep products.

D Ajax placed the dead insects into the can.

Answer

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Tags: Defective Product, Merchant, Strict Product Liability, Tort
Level: Level 1

Topic: Tort

BCL – L1 – SA – Q21 – Contract Law

Sammy sues Larry for non-payment of $400 for a car after 8 years. Is the contract enforceable?

Question

Sammy agreed to sell, and Larry agreed to buy Sammy’s car for $400, payable upon delivery. Sammy delivered and left the car with Larry. However, Larry failed to pay Sammy the $400. After eight years had passed following the delivery and acceptance of the car by Larry, Sammy sued Larry in state court for failure to pay him the $400. Based only on the above stated facts, which of the following statement is most accurate? Assume the UCC applies and the statute of limitations for oral contracts is two years and for written contracts is four years.

A No contract was ever created between Sammy and Larry.

B A contract was created but likely not enforceable because the statute of limitations has expired.

C A contract was created, but it is only enforceable if it is in writing.

D A contract was created and is enforceable.

Answer

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Tags: Breach of Contract, Contract Law, Enforceability, Statute of Limitations, UCC
Level: Level 1

Topic: Contract Law

BCL – L1 – SA – Q20 – Tort

Assesses negligence liability in a car accident.

Question

David was negligently driving south on Market Avenue when his car rear-ended a car driven by Patricia. The force of the impact forced Patricia to rear-end Thomas’ car. In turn, the force of the second impact caused Thomas’ car to hit a lamppost, which then fell on a house owned by Paul. The force of the impact scared Paul, causing him to immediately have a heart attack. Paul sues David for negligence. If Paul recovers, the most likely reason is:

A Paul was able to prove that David proximately caused Paul’s injuries.

B Paul was able to prove that the damages he suffered were caused by David.

C Paul was able to prove that David breached a duty of due care owed by David to Paul.

D Paul was able to prove all the above (a, b & c).

Answer

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Tags: Damages, Duty of care, Negligence, Proximate Cause
Level: Level 1

Topic: Tort

BCL – L1 – SA – Q19 – Contract Law

Evaluates if a letter about a watch is an offer.

Question

Jackson Jewellers wrote to Miller, “We have received an exceptionally self-winding Rolox watch which we will sell to you at a very favourable price.”

A The letter is an offer to sell.

B A valid offer cannot be made by letter.

C The letter contains a valid offer which will terminate within a reasonable time.

D The letter lacks one of the essential elements of an offer.

Answer

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Tags: Certainty of Terms, Contract Formation, Offer
Level: Level 1

Topic: Contract Law

BCL – L1 – SA – Q18 – Contract Law

Assesses if a letter constitutes a valid offer.

Question

Barnes wrote Morgan, “I will sell you my house and lot at 123 East Elm Street, Accra, Ghana for $950,000 payable upon merchants.” If the letter contains terms which are deemed sufficiently certain and definite, which of the following statements is correct?

A Barnes’ letter is not an offer unless Barnes intended it to be an offer.

B Barnes’ letter is not an offer unless Morgan thought Barnes intended to make an offer.

C Barnes’ letter is an offer if a reasonable person with full knowledge of the circumstances would be justified in thinking it was intended as an offer.

D Morgan would be justified in thinking it was intended as an offer.

Answer

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Tags: Contract Formation, Offer, Reasonable Person
Level: Level 1

Topic: Contract Law

BCL – L1 – SA – Q17 – Tort

Evaluates false imprisonment lawsuit against bookstore.

Question

Peter filed a lawsuit for false imprisonment against Smith’s Bookstore. During a visit to Smith’s Bookstore, Smith stopped Peter as he left the store. Smith accused Peter of stealing a book from the store. After briefly looking into Peter’s shopping bag, Smith determined that Peter did not shoplift. He apologized to Peter and released him. On these facts, Smith will likely:

A Win the case, because the shopkeepers’ privilege statute gives store merchants unconditional immunity (protection) from such lawsuits.

B Lose the case because Peter did not shoplift.

C Win the case, but only if a court or trier of fact concludes that Smith had reasonable cause to believe Peter may have shoplifted, detained him for a reasonable time, and in a reasonable manner.

D Lose the case because Smith did not have a warrant.

Answer

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Tags: False Imprisonment, Reasonable Cause, Shopkeepers' Privilege
Level: Level 1

Topic: Tort

BCL – L1 – SA – Q16 – Governance and Ethical Issues

Describes how companies show ethical behaviour.

Question

How can a company demonstrate ethical behaviour?

A Adhering to legal requirements

B Being transparent and accountable

C Maximizing profits at any cost

D Ignoring employee well-being

Answer

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Tags: Accountability, Ethical Behaviour, Transparency
Level: Level 1

Topic: Governance and ethical issues relating to business

BCL – L1 – SA – Q15 – Governance and Ethical Issues

Defines corporate social responsibility.

Question

What is corporate social responsibility (CSR)?

A Maximizing shareholder wealth

B Balancing interests of shareholders and society

C Avoiding legal obligations

D Ignoring environmental concerns

Answer

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Tags: Corporate Social Responsibility, Shareholders, Society
Level: Level 1

Topic: Governance and ethical issues relating to business

BCL – L1 – SA – Q14 – Legal Implications of Companies in Crisis

Explains purpose of bankruptcy proceedings.

Question

What is the purpose of bankruptcy proceedings?

A Punishing company directors

B Liquidating company assets to pay creditors

C Reducing company taxes

D Transferring ownership to employees

Answer

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Tags: Asset Liquidation, Bankruptcy, Creditors
Level: Level 1

Topic: Legal implications relating to companies in difficulty or in crisis

Level (SQ): Level 1

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BCL – L1 – SA – Q23 – Tort

When does strict product liability apply to defective and dangerous products?

BCL – L1 – SA – Q22 – Tort

Bill sues Ajax Minimart for dead insects in a Sipep can. What must he prove in strict product liability?

BCL – L1 – SA – Q21 – Contract Law

Sammy sues Larry for non-payment of $400 for a car after 8 years. Is the contract enforceable?

BCL – L1 – SA – Q20 – Tort

Assesses negligence liability in a car accident.

BCL – L1 – SA – Q19 – Contract Law

Evaluates if a letter about a watch is an offer.

BCL – L1 – SA – Q18 – Contract Law

Assesses if a letter constitutes a valid offer.

BCL – L1 – SA – Q17 – Tort

Evaluates false imprisonment lawsuit against bookstore.

BCL – L1 – SA – Q16 – Governance and Ethical Issues

Describes how companies show ethical behaviour.

BCL – L1 – SA – Q15 – Governance and Ethical Issues

Defines corporate social responsibility.

BCL – L1 – SA – Q14 – Legal Implications of Companies in Crisis

Explains purpose of bankruptcy proceedings.

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