Question 1

A contract to commit an unlawful act or to violate public policy is void.

Accepted Answer

Contracts that involve illegality or violate public policy are considered void, meaning they have no legal effect.

Question 2

To prove that an act, such as dropping a can of paint onto a homeowner's property, was negligent, the homeowner must demonstrate:

Accepted Answer

All three elements are necessary to prove negligence: the defendant must owe a duty of care to the plaintiff, the defendant must breach that duty of care, and that breach must be the cause of the plaintiff's injury or damage to their property.

Question 3

The median award for damages in civil cases is $90,000.

Accepted Answer

The median award for damages in civil cases varies significantly depending on the type of case, jurisdiction, and year of the study. However, many studies and reports suggest that the median award is often lower than $90,000.

Question 4

John Parrimore and Mary Gonzales have entered into a _____. The legal and enforceable agreement between the two parties creates an obligation or duty to either do or not to do something specific.

Accepted Answer

A contract is a legal and enforceable agreement that creates an obligation or duty to either do or not to do something specific. A binding agreement and agency agreement could also create obligations, but they may not necessarily be as legally enforceable or structured as a traditional contract. A partnership involves a business relationship between two or more parties, but it may not necessarily involve a formal agreement or contract.

Question 5

An employee's actions fall within the scope of his employment if _____.

Accepted Answer

An employee's actions fall within the scope of his employment if they are performed to fulfill contractual duties owed to his employer and if the employer is in some control, directly or indirectly, over the employee's actions. Therefore, both options A and B are correct. Option C, regarding contractual capacity, is not relevant to determine if the employee's actions fall within the scope of his employment.

Question 6

Offer and acceptance are the two parts of consideration in a contract.

Accepted Answer

Offer and acceptance are the elements that form the agreement in a contract, while consideration is a separate element that refers to what each party gets in return for fulfilling the contract terms.

Question 7

The standard for determining proximate cause is generally foreseeability.

Accepted Answer

Proximate cause is determined by the foreseeability of the consequences of an action or omission. It asks whether a reasonable person could have anticipated the harm that ultimately resulted from the defendant's conduct.

Question 8

The basic obligation that one person owes another not to cause harm or an unreasonable risk of harm is called _____.

Accepted Answer

The basic obligation that one person owes another not to cause harm or an unreasonable risk of harm is the duty of care.

Question 9

Which of the following involves an exchange between an offeror and an offeree

Accepted Answer

A contract involves an exchange between an offeror (the party making an offer) and an offeree (the party accepting the offer). An agreement is a meeting of the minds between parties, but may not involve an exchange of offers and acceptance. Cause in fact and duty of care are legal concepts that relate to causation and negligence, respectively, but do not involve an offer and acceptance.

Question 10

Which of the following is NOT one of the requirements of a legal contract

Accepted Answer

While it is ideal for parties to agree not to cause harm or unreasonable risk to each other, this is not a requirement for a legal contract. The requirements are mutual agreement, legal capacity, and exchange of something of legal value (consideration).

Question 11

The law assumes that, when performing employment duties, an employee is under the control of the employer.

Accepted Answer

This is known as the "control test" and is a fundamental principle in employment law. It means that the employer is responsible for the actions of their employees while they are performing their duties, and can be held liable for any harm caused.

Question 12

The law works to make business relationships as predictable as possible.

Accepted Answer

The law provides clear guidelines and regulations that aim to make business relationships as predictable and consistent as possible. This helps businesses to understand their rights and obligations and facilitates smooth interactions between different parties in the business world.

Question 13

Discuss employer-employee contracts and the doctrine of respondeat superior.

Accepted Answer

The answer of Discuss employer-employee contracts and the doctrine of...

Question 14

A contract is _____.

Accepted Answer

A contract is an exchange of a promise for an act, it is legally enforceable, and it must have an offerer and an offeree. Therefore, all of the options (A), (B), and (C) are correct, making (D) the best choice.

Question 15

A contract that has been broken _____.

Accepted Answer

When a contract has been broken, it means that one or both parties have failed to fulfill their obligations as outlined in the agreement. This is a breach of the contract, and the injured party may have the right to seek legal remedies such as damages or specific performance. The other choices are not relevant to a broken contract; a contract that has been broken is not necessarily unenforceable, it may or may not be executed at a later date depending on the circumstances, and contractual capacity refers to the ability of parties to enter into a contract, not to a contract that has already been formed.

Question 16

If a LuLu's Diner employee spills scalding hot coffee on a customer causing third degree burns, the owner of LuLu's Diner is held responsible for the employee's actions.

Accepted Answer

As per the concept of vicarious liability, an employer is responsible for the actions of their employees while they are performing work-related duties. Therefore, LuLu's Diner owner will be held responsible for the employee spilling hot coffee on a customer.

Question 17

Litigation takes an average of 6 months from the time a complaint is filed until a judgment is rendered.

Accepted Answer

The average time for litigation can vary greatly depending on the case complexity and court system backlog. It can take several months to several years to reach a judgment.

Question 18

Most actions of any kind set in motion a series of consequent actions, and the court must decide the point beyond which a defendant is no longer liable for these actions. This point is called _____.

Accepted Answer

Proximate cause is the point beyond which a defendant is no longer liable for the consequent actions set in motion by their actions. Cause in fact, actual cause, and cause of duty are all related concepts but do not refer specifically to the point of liability.

Question 19

Respondeat superior translates as _____.

Accepted Answer

Respondeat superior is a legal principle that holds an employer responsible for the actions of its employees when those actions occur within the scope of employment. It translates to "let the master answer for the servant's actions."

Question 20

A contract can be enforced only if it has:

Accepted Answer

In order for a contract to be enforceable, it must have a legal purpose. This means that the subject matter of the contract must not be illegal or against public policy. While the agreement of one party and the requirement of performance are important elements of a contract, they alone do not make a contract enforceable. The age of the parties involved is also not necessarily a determining factor in the enforceability of a contract.

Quiz 16: The Legal and Regulatory Environment of Business