Attached is my BGMT 380 Final. I need it completed by tomorrow evening. Both multiple choice, and essay questions?
Business Law I Final Exam
Fiorentino/Fall 2016 1 BMGT 380 - Final Exam ? Fall 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
Fiorentino/Fall 2016 2 d) Yes, because Wyoming can assert in personam jurisdiction over Roxy because the
accident happened in the state of Wyoming.
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
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
d) Win, if the beam fell because of Model Construction?s negligence.
6. Don promised to buy his girlfriend, Sophie, a new car so relying on Don?s
promise, 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. Business Law I Final Exam
Fiorentino/Fall 2016 3 d) Not be enforced as Don?s promise was a gift to Sophie; Sophie gave consideration,
but Don did not.
7. 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 Faber?s own written standard form contract.
d) All of the above could be valid acceptance.
8. 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.
9. Fay was admitted to Global Associates, an existing general partnership on January
2014. In August 2014, a partnership debt that was incurred in October 2013 came
due. Fay is:
a) Not liable for the debt because the debt was incurred prior to her joining the
b) Only liable for the debt up to the amount of her capital contribution to the
c) Personally liable only for 50% of the total debt if 50% of the other partners do not
d) Personally liable for the full extent of the debt if the other partners do not pay.
10. 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.
11. Jim and Kiley are architects and general partners of JK Designs. Jim and Kiley
supervise Luc, an employee of JK Designs. As partners, Jim and Kiley
a) Are personally liable for any/all tort(s) committed by Luc.
b) May be liable for malpractice, but not torts, committed by Luc while Luc is
working within the scope of his job at JK. Business Law I Final Exam
Fiorentino/Fall 2016 4 c) May be liable for torts committed by Luc while Luc is working within the scope of
his job at JK.
d) Have no liability for any torts committed by Luc at any time.
12. Kisha operates River Valley Soccer, an athletic equipment shop, as a sole
proprietorship. Taxes on the business?s 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.
13. Mediation might be more reasonable and appropriate than a trial in which of the
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 is appropriate for mediation.
Answer questions 14-15 regarding the following scenario:
Scenario: Jones, a resident of Arizona, booked reservations for a vacation at World
Hotels, Inc. in Cabo Mar, Mexico. World Hotels is an international hotel chain
incorporated in Delaware with hotels in North and South America; World Hotels has
no hotels in Arizona but does advertise and book reservations for all its hotels over
the internet, in any state. World Hotels has booked reservations in the past with
residents of Arizona.
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
sidewall 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.
14. Jones wants to sue World Hotels, Inc. for negligence 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. Business Law I Final Exam
Fiorentino/Fall 2016 5 b) No, because federal court does not have jurisdiction in cases that do not involve
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
15. It would be easier for Jones to bring the lawsuit in Arizona state court, but he
wonders if the court can get World Hotels to come to Arizona. Can the Arizona state
court impose jurisdiction over World Hotels to bring the company to court in
a) No, because the subject of the lawsuit took place in a foreign country.
b) No, because the corporation does not have sufficient minimum contacts 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 World Hotels has sufficient minimum contact with the state of
Arizona to justify the court?s use of the long arm statute.
16. Dan went to Doctor to have an x-ray. Dan did not sign a written contract, and
Dan and Doctor did not make an oral agreement regarding the x-ray. When Doctor
billed Dan $500 for the x-ray, Dan refused to pay. Doctor sued Dan to recover the
$500. Which of the following is true about Doctor's lawsuit?
a) Doctor can recover under the quasi-contract theory of promissory estoppel.
b) Doctor can recover under an implied contract theory.
c) Doctor cannot recover because there was no express contract.
d) Doctor cannot recover because Dan did not give consideration for the bargain.
17. Under the UCC, Section 2-207 (the "battle of the forms" provision), it is provided
that, when both parties to a contract are merchants, any additional terms added in
the acceptance of a standard form contract can properly, validly become part of the
contractual agreement UNLESS:
a) The original offer expressly limits any acceptance only to the terms in the
original standard form offer.
b) The additional terms in the acceptance materially alter the terms of the original
standard form offer.
c) The offeror notified the offeree, within a reasonable period of time, that the
additional terms were not acceptable.
d) All of the above could be true.
18. Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a
contract stating, among other things, an exculpatory clause that FC? Business Law I Final Exam
Fiorentino/Fall 2016 6 ?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 Member?s use of facilities or
participation in any sport, exercise or activity within the club premises??
Leon sustained head injuries when a treadmill on which he was walking collapsed at
FC. Leon sued FC for his injuries. The court most likely will rule:
a) In favor of Leon because the exculpatory clause is against public policy.
b) In favor of Leon because the exculpatory clause is too broad in scope.
c) In favor of FC because the exculpatory clause is not unconscionable under the
d) In favor of FC because it had a valid enforceable contract with Leon as Leon
knowingly signed the contract.
ESSAY: 3 points each.
Instructions: Frame a complete definition of the legal question asked and explain
how the law applies to the facts. Suggested length is at least one to two paragraphs.
1. Refer to the scenario for Multiple Choice questions 14-15 above to answer the following essay question #1 only:
Jones sued World 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 World Hotels? Please discuss all the elements of
negligence in your answer. Are there any defenses that World Hotels can use to
relieve it from liability? Explain.
2. Dan, Fran and Stan want to establish a bike sales and rental shop. Dan and Fran
will be actively involved in managing the business operations, and Stan is investing
most of the money. The 3 want to use a form of business organization that will give
limited liability to each of them. Using THREE of the seven factors as discussed in
class (liability, taxation, financing, management, liquidity, formalities, and life of
business) discuss what would be the best type of business organization to limit their
liability, and why?
3. On May 3, Racer contacted Oscar by writing offer sent registered mail whether he
could drive Oscar?s one-of-a-kind, specially designed championship racecar in the
Miami 500 Race on July 15 for a fee of $2500. Oscar responds in an acceptance sent
registered mail on May 5 and received May 10th. On July 1, the racecar was destroyed
in an accidental fire in a storage warehouse where the racecar was being stored
prior to the race. Oscar owns no other racecars, so Oscar considered the contract
discharged. Racer claimed that he is still entitled to the $2500 fee because he and Business Law I Final Exam
Fiorentino/Fall 2016 7 Oscar had a valid enforceable contract. First, determine whether there is a valid
contract with all necessary elements. Second, if a valid contract exists, consider
whether there is an issue with a defense.
4. Sam wrote a letter to Julia?s Lawn Service stating, ?I will pay you $600 if you will
remove the 3 elm trees from my front lawn not later than September 1.? On August
29, Julia removed the 3 elm trees from Sam?s front lawn. Sam refused to pay Julia; he
claimed that they did not form a valid, enforceable contract because Julia did not
respond in writing to his letter. Julia sued Sam for breach of contract. Does a valid
contract exist? Explain discussing the necessary elements. If so, does Julia have a
viable claim to sue for breach?
This question was answered on: Sep 18, 2020
Buy this answer for only: $15
This attachment is locked
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 18, 2020EXPERT
GET INSTANT HELP/h4>
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.