Subject (SQ): BUSINESS AND CORPORATE LAW

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Can Robert’s statement “This is the sharpest car on the market” support a claim for misrepresentation?

Robert makes the following statement while negotiating the sale of his car, “This is the sharpest car on the market.” His statement may support a claim for:

A misrepresentation.

B fraud.

C fraud and misrepresentation.

D none of the above.

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You're reporting an error for "BCL – L1 – SA – Q30 – Contract Law"

What is true about the “reasonable person” standard in tort law?

Which of the following statements is correct concerning the “reasonable person” standard in tort law?

A   The reasonable person standard varies from person to person.

B   The reasonable person standard focuses on the defendant’s subjective mental state rather than on the defendant’s behaviour.

C   A person with a physical disability must act as would a reasonable person with the same disability.

D   A person with a mental disability must act as would a person with the same mental disability.

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Eckerly Realty’s offer expires June 30. Masse’s acceptance arrives July 1. Is there a contract?

On May 1, 2005, Eckerly Realty Inc. mailed a written offer to Masse for the sale of an office building. The offer included an express term that it would expire on June 30, 2005, if the acceptance was not delivered into the hands of the offer by the expiration date. On June 30, 2005, at 8:00 a.m., Masse sent a written acceptance to Eckerly via Masse’s personal messenger. However, the messenger was not able to deliver the acceptance until July 1, 2005. On July 2, 2005, Eckerly contacted Masse, informing him that the acceptance had been delivered one day late. As a result, Eckerly refused to honour the acceptance. Which of the following is the most correct statement?

A   However, if Masse would have mailed the acceptance on June 30, 2005, a contract would have been created.

B   There is a contract between Eckerly and Masse. The moment that Masse gave the acceptance to the messenger; a contract was        formed because acceptances are valid immediately upon dispatch.

C   There is a contract between Eckerly and Masse. The fact that the acceptance arrived only one day late is of no significance.

D   There is no contract between Eckerly and Masse.

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Which contracts fall under the statute of frauds?

In most states the following types of contracts are within the statute of frauds:
A   Contracts for the sale of an interest in personal property.
B    Contracts that can be performed within a year from the date of their formation.
C   Contracts for the sale of goods.
D   Contracts for the sale of goods for a price of $500 or more.

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Donny throws a knife at Sally, missing her. Is he liable for assault or battery?

Donny threw a knife at Sally, intending to injure her severely. However, Donny missed Sally. Sally saw the knife just as it whizzed by her head, missing it by about one inch. As a result, Sally was very scared. Sally sued Donny for assault and battery. Which of the following is most correct?

A Donny will be liable for battery, but not assault.

B Donny will be liable for assault, but not battery.

C Donny will be liable for assault and for battery.

D Donny will not be liable for either assault or battery because this is only a criminal matter.

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What is the body of law establishing rights between persons and providing redress?

The body of law which establishes rights between persons and provides for redress for violation of those rights is known as:

A   Criminal Law.

B   Civil Law.

C   The Uniform Commercial Code.

D   Stare decisis

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Back-Talk offers to sell servers to Gatekeeper, who requests faster delivery. Is there a contract?

On May 1, Back-Talk Computer Store offered to sell five (5) computer servers to Gatekeeper Company for $5,000.00 each, delivery to be on May 30. Later that day (May 1), Gatekeeper responded that it would buy the computers only if they were delivered within three business days. Back-Talk notified Gatekeeper the next day, May 2, that it would not be able to deliver the goods within the time requested by Gatekeeper. Which of the following is true regarding Back-Talk’s offer?

A   There is no contract between Back-Talk and Gatekeeper.

B   Gatekeeper’s additional term became part of the contract, so Back-Talk is obligated to deliver the goods within three business         days.

C   Back-Talk’s offer was accepted by Gatekeeper.

D   Gatekeeper may later accept Back-Talk’s May 1 offer if it is then willing to accept delivery in four weeks.

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

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.

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

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.

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

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.

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