Bob Buyer went shopping for furniture for his man cave. He saw an antique wooden chair that he really liked. The label on the chair stated that the chair would easily support 800 pounds. Bob purchased the chair and is later injured when the chair broke while supporting only 250 pounds. Bob sues Sleazy for breach of an express warranty.
Based on the factual situation answer the following true/false question.
The label created an express warranty thereby making the seller liable.
Group of answer choices
A. True
B. False
Answer
- A. True
Explanation:
Express warranty can be written or spoken. This depends on the specifications given by the manufacturer or the seller, regarding the product’s quality and reliability. If the product fails in this regard, the manufacturer or the seller is held liable. According to the manufacturer, the chair would support 800 pounds, which turns out to be untrue. Bob can sue the manufacturer under express warranty.
Which of the following is an example of a fiduciary duty owed by an agent to a principal?
a. duty of personal performance
b. duty not to breach the agency contract
c. duty to ratify on behalf of the principal
d. duty to avoid conflicts of interest
Answer
- d. duty to avoid conflicts of interest
Explanation:
A fiduciary duty refers to an obligation of the agent, to act in the best interest of the principal. Two obligations fall under fiduciary duty of agent to the principal. The obligation to avoid conflicts of interest and the obligation to not take advantage of a privileged position. This is because the principal exposes himself to the agent, creating a trust and confidence relationship between the two.
While at home alone, Carla decides to sell her computer to Mike for $500, so that she can buy one.
a. Who is the offeror?
b. Who is the offeree?
c. Is this an offer?
d. Why or why not?
Answer
- a. Who is the offeror? = Carla
b. Who is the offeree? = Mike
c. Is this an offer? = No
d. Why or why not? = No defined terms, and the offer is not communicated to Mike.
Explanation:
The offeror is the party that makes an offer to another. Offeree is the party who accepts or rejects the offer. A valid offer requires three elements: Communication, commitment, and definite terms. For an offer to be a valid offer, the offeror must communicate the terms to the offeree. In the provided case, Carla did not communicate the terms of the offer to Mike. Additionally, there were no defined terms of the offer as to what the offeree would gain in the contract.
Search warrants are used
- By Administrative Law Judges
- For searches of highly regulated, inherently dangerous business
- For Executive Agencies
- Administrative Agencies’ investigation
Answer
-
- By Administrative Law Judges
Explanation:
Search warrants are issued by administrative law judges to allow designated people to enter a property for certain purposes specified in the warrant. This is important because property owners are protected by constitution against unlawful searches. In many countries and states, search warrants are not used to aid a civil process.
DOLLAR DAMAGES ARE CONSIDERED INADEQUATE AND SPECIFIC
PERFORMANCE IS CONSIDERED THE PROPER REMEDY WHEN A CONTRACT
FOR THE SALE OF A UNIQUE ITEM IS BREACHED BY THE BUYER.
WHICH ONE OF THE FOLLOWING USUALLY IS NOT CONSIDERED TO BE A
UNIQUE ITEM?
(A) PERSONAL PROPERTY IN GENERAL
(B) ANTIQUES IN GENERAL
(C) REAL ESTATE IN GENERAL
(D) STOCK OF A CLOSELY-HELD CORPORATION IN GENERAL
Answer
- (A) PERSONAL PROPERTY IN GENERAL
Explanation:
Unique assets include real estate, closely-held businesses, mineral interests, loans and notes, life insurance, tangible assets and collectibles. Collectibles include works of art, antiques, stamps, coins and bullion, gemstones, and other miscellaneous assets. Personal property is not considered a unique asset.
Reference
https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/unique-hard-to-value-assets/pub-ch-unique.pdf
AS A GENERAL RULE, AN ORAL CONTRACT THAT IS REQUIRED BY THE
STATUTE OF FRAUDS TO BE IN WRITING IS:
(A) ILLEGAL
(B) UNENFORCEABLE
(C) CONTRARY TO PUBLIC POLICY
(D) VOIDABLE
(E) VOID
Answer
- (D) VOIDABLE
Explanation:
Oral contracts are enforceable, but the statute of frauds requires that some kinds of contracts be in writing. A contract that is required to be in writing would be considered voidable if no written agreement exist between the parties. This implies that one party can reject the contract and not be held liable for breach.
Alon works for the Greater Coffee Company and invents a coffee machine, develops a one of a kind coffee flavor and then leaves the company to start his own company, Unique Coffee. Which of the following is TRUE?
a. Alon cannot use his invention or his coffee flavor in his new company as they are Greater Coffee’s property.
b. Alon cannot use the coffee machine and the coffee flavor as it is his trade secret.
c. If more than two people know the coffee flavor there is not trade secret protection
d. Unique Coffee is a generic term and may be registered for trademark protection.
Answer
- a. Alon cannot use his invention or his coffee flavor in his new company as they are Greater Coffee’s property.
Explanation:
When Alon developed coffee machine at Greater Coffee Company, the idea was considered as a trade secret including the unique coffee flavor. However, the trade secret ceases to exist the moment another employee understands the process. The requirement is that the owner of the trade secret must make reasonable efforts to keep the information secret. The invention remains a property of Greater Coffee Company and ALon cannot use them in his business. Alon was hired to work for Greater Coffee Company and any invention made during the course of employment remains the property of the employer.
Under the Anti-Counterfeiting Trade Agreement (ACTA), member nations:
a.) are prohibited from conducting random border searches of electronic devices not based on probable cause.
b.) are required to establish border measures that allow officials, on their own initiative, to search commercial shipments of imports and exports for counterfeit goods.
c.) are not allowed to keep the suspect goods unless the authorities can prove the goods in transit are counterfeit.
d.) do not have authority to make requests of online service providers concerning the identity of suspected trademark and copyright infringers without probable cause.
Answer
- b.) are required to establish border measures that allow officials, on their own initiative, to search commercial shipments of imports and exports for counterfeit goods.
Explanation:
Under ACTA, member nations are required to establish border measures which allow the officials to search commercial shipments of imports and exports for counterfeit goods, on their own initiative. Member nations are free to perform random searches on electronic devices like laptops and tablet devices, for infringement content. If the nation’s border authorities believe that goods in transit are counterfeit, ACTA allows the authorities to keep the goods unless the owner proves that the goods are non-infringing and authentic.
An assignment is
- the transfer of an agreement in such a way that the transferee becomes a holder.
- the transfer of your rights under a contract to someone else.
- a negotiable instrument payable to the order of the person holding it.
- a restrictive endorsement that allows for the transfer of an instrument from one party to another.
Answer
-
- the transfer of an agreement in such a way that the transferee becomes a holder.
Explanation:
In transferring instruments, an assignment refers to the transfer of a contract right from one person to another. In transferring instruments, an assignment refers to the transfer of a contract right from one person to another. This is applicable when the holder of the instrument dies or goes bankrupt.
Becky filed a complaint with the EEOC against her employer for discrimination based on the fact that she was protected under the Americans with Disability Act. Her employer was investigated and the EEOC can do the following:
a. negotiate and settle with the employer.
b. discuss the investigation with the Administrative Law Judge.
c. register the employee with the executive department.
d. petition a civil court to hear the case.
Answer
- a. negotiate and settle with the employer.
Explanation:
If the EEOC case investigation finds the charge of discrimination is supported by facts and evidence, the EEOC begins with an attempt to solve the complaint by mediation process or settlement. If many workers are affected by the unlawful act, then EEOC may proceed by filing a legal case directly without any mediation. The complaining party receives a ‘right to sue’ letter to file a lawsuit against the employer. The complaining employee is required to cooperate with the EEOC in its investigation, otherwise the case will be dismissed.
National Konsumer Kompany (NKK) currently uses a trademark that neither it nor anyone else has registered with the government. Under federal trademark law, NKK
a. can register the mark for protection if it is distinctive.
b. cannot register a mark that has been used in commerce.
c. has committed trademark infringement.
d. must postpone registration until the mark is out of use for six months
Answer
- a. can register the mark for protection if it is distinctive.
Explanation:
A trademark refers to intellectual property rights that protects against counterfeiting and infringement. The mark must be distinctive and not registered by another individual or party before. National Konsumer Kompany (NKK) can register the trademark if it is distinctive.
Suretyship is a pledge to pay ones own debts and obligations true or false
Answer
- True
Explanation:
Suretyship is a pledge to pay debts and obligations through a third party that is held liable if the debtor fails to do so. It means that the creditor can demand payment from the surety when the debt is due. Surety is involved when the debtor wants to make certain that the debt is paid.
ACTIONABLE FRAUD CAN BE DEFINED AS REQUIRING ALL THE FOLLOWING ELEMENTS EXCEPT FOR:
(A) KNOWLEDGE OF THE MISREPRESENTATION OF A MATERIAL FACT BY THE SPEAKER
(B) ACCURATE REPRESENTATION OF A MATERIAL FACT
(C) JUSTIFIABLE RELIANCE
(D) INJURY
Answer
- (B) ACCURATE REPRESENTATION OF A MATERIAL FACT
Explanation:
The following are elements of an actionable fraud:
- Misrepresentation -The party gave false information
- Knowledge of a false misrepresentation – The speaker was aware of the false information
- Intent to deceive – The speaker must have had an intention to deceive or not tell the truth
- Justifiable reliance by the victim – The other party relied on speaker’s information
- Resulting damages – The misrepresentation resulted to damages on the other party.
