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Business Law I Final Exam 1

Fiorentino/Spring 2016

Directions: Read each question carefully. Base your answers only on the facts given

in the fact pattern. If you believe additional information is necessary to answer the

question, please let me know.

MULTIPLE CHOICE: 1 point each

Instructions: Select the best answer and if you wish to defend your answer, give a

two-to-three sentence explanation as to why you believe it is the correct choice.

1. 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 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 Jamie 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 under

the Statute 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

rescind the contract.

2. 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 hearing, 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.

3. 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 jurisdiction in this case because there is a federal

question involved due to the diversity of citizenship between the parties.

Business Law I Final Exam 2

Fiorentino/Spring 2016

d) Yes, because Wyoming can assert in personam jurisdiction over Roxy because the

accident happened in the state.

4. 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.”

5. 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 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 liable under contributory negligence 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 Construction’s negligence.

6. 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 because Sophie received money from the sale of her old car; if

she also 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

necessities are binding and enforceable for all parties even if contract formation is

flawed.

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Business Law I Final Exam Fiorentino/Spring 2016 1 Directions: Read each question carefully. Base your answers only on the facts given in the fact pattern. If you believe additional information is necessary to answer the question, please let me know. MULTIPLE CHOICE: 1 point each Instructions: Select the best answer and if you wish to defend your answer, give a two-to-three sentence explanation as to why you believe it is the correct choice. 1. 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 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 Jamie 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 under the Statute 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 rescind the contract. 2. 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. ...
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