Business Law I, Bmgt 380, Midterm

Topics: Contract, Lawn mower, Offer and acceptance Pages: 13 (3816 words) Published: November 8, 2012
Business Law I, BMGT 380
Midterm Examination

This midterm examination is open book, open notes, but you are on the honor system not to seek assistance from anyone to complete this exam. There are 25 multiple choice questions worth 2 points each and 10 essay questions worth 5 points each, for a total of 100 points. Answer all the questions because for the essays partial credit is given where appropriate. Just submit the question number and your answer. Please do not submit the entire exam with questions and your answers because it will take up too much memory and it will take too much time to grade the exams. So delete everything but the question number and your answer (i.e. “1.c”) and submit to the Assignments section of WT no later than 9pm March 17. 5 point penalty for each day late.

Good luck. Mike Nye, Instructor

1. Sandy had applied for a permit with a federal administrative agency to operate a business within the boundaries of a popular national forest. The agency grants a limited number of these permits that allow operation of the business during the busy tourist season. The agency has turned down Sandy's application even though she received a permit in the prior year, paid the related fees on time, and violated none of the permit's conditions. The agency granted a permit to a different applicant who had never run this type of business previously. If Sandy appeals the decision to a court, what standard of review will they most likely use?

a.The arbitrary and capricious abuse of process test.
b.The substantial evidence test.
c.The unwarranted by the facts test.
d.The unfair result test.

2. The two general elements required in a crime area:

a.Criminal act and damages.
b.Criminal act and criminal intent.
c.Criminal act and at least one impartial.
d.Criminal act and resultant harm.

3. Where one party takes advantage of a confidential relationship when entering into a contract, the remedy would be based on:

c.Undue influence.
d.Unilateral mistake.
e.Fraud in the execution.

4. Karen offered to pay Kim $25 if Kim would cut Karen's grass. Kim got her lawn mower and started to mow the lawn. After Kim was about 80% completed, Karen came out and told Kim that she had changed her mind, did not want the yard mowed, and would not pay Kim. Kim finished the job and sues Karen for the $25. What would be the probable result?

a.Kim wins; this is a bilateral contract, which Kim accepted by promising to mow the lawn; Karen is bound by it. b.Karen wins; this is a unilateral contract, which Karen can revoke at any time prior to the completion of the act. c.Kim wins; this is a unilateral contract and Karen cannot revoke her offer once Amy has made a substantial beginning to her performance. d.Karen wins; this is an offer for a bilateral contract and because Kim never promised to mow the lawn, there is no contract.

5. Undue influence is characterized by one party being put at a disadvantage in a contract due to:

a.A party taking advantage of superior knowledge about the subject matter in a contract.
b.A party taking advantage of economic advantage in a transaction. c.A party taking advantage of it being less urgent for that party to reach an
d.A party taking advantage of a fiduciary relationship.
e.A party taking advantage of the other party's legal circumstances.

6. Paragrunt Studios hires Harry Ford to play Indiana Bones in one of its new movies. Harry decides that he cannot fulfill this contract so he assigns his rights and delegates his duties under the contract to Tom Smellnik, another famous actor and friend of Harry. Which of the following best describes this situation?

a.Paragrunt Studios must accept Smellnik, so long as he is an equally capable actor.
b.Paragrunt Studios must accept Smellnik whether he is a good actor or not.
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