Week 8 : Final Exam – Final Exam
1. (TCO 1) Your company owns a piece of land and is in the middle of purchasing this property to expand their footprint in the community. At the last minute, the seller has backed out of the deal, leaving you with few options. Your supervisor wants to explore the options for remedies in this case.
What remedies would be available given the type of transaction and outcome at stake? Would legal damages make the company whole? What equitable remedies may be available? Explain your answer highlighting the difference between remedies at law and remedies at equity? (Points : 20)
2. (TCO 2) Given the current economic climate nationwide and locally, the state of Delmarva would like to impose a higher tax on out-of-state companies doing business in the state than it imposes on in-state companies. The reason behind the legislature’s enactment of this law is to protect the local firms from out-of-state competition because they are losing local business, which is affecting the state’s economy.
Is this law legal, or is it a violation of equal protection for a state to impose? What legal standards could the court apply in evaluating the constitutionality of a law and which would apply in this instance? Explain. (Points : 20)
3. (TCO 3) Jane lives in Florida and owns a small fresh fruit market. Robert lives in Georgia on a peach farm. For years, Jane and Robert have worked together; Jane buying peaches from Robert and Robert selling peaches to Jane for resale. Jane travels across the border to Georgia to buy her peaches because she knows that Robert has the best peaches in Georgia and her customers love them and come from miles to buy them from her. Jane contracted with Robert to buy 4 bushels of peaches and traveled to Georgia, as usual, to pick them up. Unfortunately, before Jane arrived, Robert sold her peaches to Xavier, a gentleman from North Carolina who was passing through and insisted on buying every last peach available. Jane wants to sue Robert for breach of contract.
Can Jane sue Robert? What claims could she raise and in what court would she raise them? Explain your answer from a jurisdictional standpoint using the above scenario. What types of jurisdiction are at play? (Points : 20)
4. (TCO 4) Sandy mails a letter back to Andrea that she has signed; the letter makes reference to a car Andrea has for sale and Andrea’s desired price. When Andrea later delivers the car to Sandy, Sandy returns the car, claiming she does not want the car and that they did not have a contract, so she is not bound to keep the car. Andrea, however, claims they do have a contract and wants to enforce said contract for the price of the car. What standard would the court use to determine whether there is a contract between the parties for the sale of the car? (Points : 20)
5. (TCO 5) Joe makes an offer to sell an order of produce to Bud for $550. It is a great deal and Bud jumps at the chance to accept Joe’s offer. Before Bud can get the money together, Joe sells the produce to Sal because he needs the money right away for a down payment on a tractor. Is the contract between Joe and Bud enforceable under the UCC? If Joe and Bud have an e-mail exchange that documents their agreement, does this change your answer? Why or why not? (Points : 20)
6. (TCO 6) Explain the function and purpose of an administrative agency. At what level of government do we find agencies, and how and by whom or what are they empowered to do what they do? (Points : 20)
7. (TCO 7) SoftWorld Products, Inc. develops, patents, and markets a new software program that is expected to the Internet market by storm. Seeing the potential of SoftWorld Products, Inc.’s new system, Global Gurus, LLC, proceeds to sell SoftWorld Products, Inc.’s program without its permission.
Does this practice constitute patent infringement? If so, what steps could SoftWorld Products, Inc. take to save itself the financial burden of suing Global Gurus, LLC for patent infringement and that would simultaneously enable to profit from the sales being made by Global Gurus, LLC? (Points : 20)
8. (TCO 8) Your Company, Inc. wants to do business with My Company, LLC. Because our companies are both savvy, they would like to conduct their business online. What determines the effect (or lack thereof) of the electronic documents evidencing the parties’ deal according to the Uniform Electronic Transactions Act (UETA)? Is a “signature” from one of the company’s a necessary part of the deal? Explain you answer by elaborating on the scenario with the facts you think are necessary to support your position.(Points : 20)
9. (TCO 9) Agency law plays a big part in corporate responsibility (and liability). Differentiate between an employee and an independent contractor. What is the difference and what are the key factors that must be considered in determining one’s status as an employee or independent contractor? Once status is determined, what affect will it have on the responsibilities of the agent? The principal? Is one status better than another? Why? Explain your answers using a representative example involving a principal, an agent, and a situation that would call the agent’s status into question. (Points : 20)
10. (TCO 10) What are the main features of a traditional corporation? What are the main features of a Limited Liability Company? What are the similarities and differences we can look to when trying to determine which entity will best suit our needs in a given situation? In the context of entity selection, discuss the main features of these two entities and compare the liability that a corporation would be exposed to as it relates to shareholders/owners of a corporation as opposed to the members of a limited liability company (LLC). Would your choice change if the situation involved an act of fraud? Why or why not? (Points : 20)
|1. (TCO 5) An appliance seller promised a restaurant owner that a home dishwasher would fulfill the dishwashing requirements of a large restaurant. The dishwasher was purchased but it was not powerful enough for the restaurant. Under the Sales Article of the UCC, what warranty was violated? (Points : 10) [removed] The implied warranty of marketability.
[removed] The implied warranty of merchantability.
[removed] The express warranty that the goods conform to the seller’s promise.
[removed] The express warranty against infringement.
|2. (TCO 5) EG Door Co., a manufacturer of custom exterior doors, verbally contracted with Art Contractors to design and build a $2,000 custom door for a house that Art was restoring. After EG had completed substantial work on the door, Art advised EG that the house had been destroyed by fire and Art was canceling the contract. EG finished the door and shipped it to Art. Art refused to accept delivery. Art contends that the contract cannot be enforced because it violated the Statute of Frauds by not being in writing. Under the Sales Article of the UCC, is Art’s contention correct? (Points : 10) [removed] Yes, because the contract was not in writing.
[removed] Yes, because the contract cannot be fully performed due to the fire.
[removed] No, because the goods were specially manufactured for Art and cannot be resold in EG’s regular course of business.
[removed] No, because the cancellation of the contract was not made in writing.
|3. (TCO 5) High sues the manufacturer, wholesaler, and retailer for bodily injuries caused by a power saw High purchased. Which of the following statements is correct under strict liability theory? (Points : 10) [removed] Contributory negligence on High’s part will always be a bar to recovery.
[removed] The manufacturer will avoid liability if it can show it followed the custom of the industry.
[removed] Privity will be a bar to recovery insofar as the wholesaler is concerned if the wholesaler did not have a reasonable opportunity to inspect.
[removed] High may recover even if he cannot show any negligence was involved.
|4. (TCO 8) Second Best Buy, Inc., is a retailer of small appliances. Second Best Buy gives Chase Financial Corporation a security interest in the inventory owned by Second Best Buy, Inc. Chase files a financing statement to perfect its interest. Who has higher priority in the collateral than Chase? (Points : 10) [removed] The stockholders of Second Best Buy.
[removed] A buyer in the ordinary course of Second Best Buy’s business.
[removed] A subsequent lien creditor.
[removed] A subsequent trustee in bankruptcy.
|5. (TCO 8) Mars, Inc. manufactures and sells VCRs on credit directly to wholesalers, retailers, and consumers. Mars can perfect its security interest in the VCRs it sells without having to file a financing statement or take possession of the VCRs if the sale is made to _____ (Points : 10) [removed] retailers.
[removed] wholesalers that sell to distributors for resale.
[removed] wholesalers that sell to buyers in the ordinary course of business.
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