BA 3301 EXAM 2 || Already Graded A+.
Question 1
Office manager fired the office receptionist. Manager asked nicely for the set of office keys in
the receptionist's hand. Receptionist said no. Smiling politely, the manager grabbed the keys
from the fired employee. If employee sues the manager, what is the most likely cause of action?
a. Intentional tort of trespass to person
b. Intentional tort of defamation
c. Intentional tort of battery
d. Intentional tort of assault correct answers c. Intentional tort of battery
Question 2
The doctrine holding the employer liable for the torts of the employee when committed within
the employee's scope of employment is ___________ .
a. gratuitous agency liability
b. a breach of agent's fiduciary duties
c. a classic management failure to communicate known as waffling.
d. called respondeat superior correct answers d. called respondeat superior
Question 3
A contract between A and B state that if B breaches the contract, B will pay A $4,000. This term
for contract breach is called __________ .
a. a compensatory damages clause
b. a consequential damages clause
c. a smart clause to put in all contracts
d. a liquidated damages clause. correct answers d. a liquidated damages clause.
Question 4
An exchange by the parties of something of value is known as ________, an essential element to
forming a valid contract.
a. legal purpose
b. consideration
c. legal capacity
d. agreement correct answers b. consideration
Question 5
If an "agent" acts for the sole benefit of a "principal" without the principal's knowledge, can that
principal later take the benefit created by the "agent's" act?
a. No. Because the principal had not given any authority to the agent, there can be no agency,
and no benefit to principal.
, b. This is a crazy question. I cannot imagine a scenario where this kind of thing would happen.
What is my professor thinking?
c. Yes. A principal can ratify the act of that person, thereby giving agency authority (after the
fact) and reaping the benefit of the act.
d. Maybe, but it depends on the amount of the transaction. If $500 or more, the agency must be
in writing to confer a benefit to principal. correct answers c. Yes. A principal can ratify the act of
that person, thereby giving agency authority (after the fact) and reaping the benefit of the act.
Question 6
In merchant to merchant contracts for the sale of goods, when the contract fails to specify a term
like price, or quality, or warranty, if a dispute arises, the merchants can look to ___________ to
supply the missing term.
a. gap filler terms
b. the Internet
c. common law contract terms used in similar transactions
d. their lawyers correct answers a. gap filler terms
Question 7
Merchant S (seller) and merchant B (buyer) agree over the phone on the sale of office furniture
for $5,000. The next day, S sends B an email confirming the sale terms. B decides against the
deal and deletes the email. Three weeks later, S delivers the furniture to B. Is this contract
enforceable against B?
a. It depends on whether the sale price was reasonable.
b. No. The goods cost more than $500, and there is no written agreement signed by B (buyer).
Therefore, B can decide to pass on the sale as the contract was oral, not written.
c. It depends on whether B's situation changed, making the deal irrelevant.
d. Yes. A merchant's confirmation memo satisfies Article 2's statute of frauds, making this
contract enforceable. If B breaches, S can sue for damages. correct answers d. Yes. A merchant's
confirmation memo satisfies Article 2's statute of frauds, making this contract enforceable. If B
breaches, S can sue for damages.
Question 8
Two parties enter into a written contract. Later, both parties decide they do not want to perform.
Neither party has given performance. Can this contract be canceled?
a. Maybe if the decision to get out of the contract is made within a commercially reasonable
time.
b. Yes, the parties can agree to rescission.
c. No. It is in writing so it must be performed.
d. It depends on whether this contract is at common law or under UCC Art. 2. correct answers b.
Yes, the parties can agree to rescission.
Question 9
Question 1
Office manager fired the office receptionist. Manager asked nicely for the set of office keys in
the receptionist's hand. Receptionist said no. Smiling politely, the manager grabbed the keys
from the fired employee. If employee sues the manager, what is the most likely cause of action?
a. Intentional tort of trespass to person
b. Intentional tort of defamation
c. Intentional tort of battery
d. Intentional tort of assault correct answers c. Intentional tort of battery
Question 2
The doctrine holding the employer liable for the torts of the employee when committed within
the employee's scope of employment is ___________ .
a. gratuitous agency liability
b. a breach of agent's fiduciary duties
c. a classic management failure to communicate known as waffling.
d. called respondeat superior correct answers d. called respondeat superior
Question 3
A contract between A and B state that if B breaches the contract, B will pay A $4,000. This term
for contract breach is called __________ .
a. a compensatory damages clause
b. a consequential damages clause
c. a smart clause to put in all contracts
d. a liquidated damages clause. correct answers d. a liquidated damages clause.
Question 4
An exchange by the parties of something of value is known as ________, an essential element to
forming a valid contract.
a. legal purpose
b. consideration
c. legal capacity
d. agreement correct answers b. consideration
Question 5
If an "agent" acts for the sole benefit of a "principal" without the principal's knowledge, can that
principal later take the benefit created by the "agent's" act?
a. No. Because the principal had not given any authority to the agent, there can be no agency,
and no benefit to principal.
, b. This is a crazy question. I cannot imagine a scenario where this kind of thing would happen.
What is my professor thinking?
c. Yes. A principal can ratify the act of that person, thereby giving agency authority (after the
fact) and reaping the benefit of the act.
d. Maybe, but it depends on the amount of the transaction. If $500 or more, the agency must be
in writing to confer a benefit to principal. correct answers c. Yes. A principal can ratify the act of
that person, thereby giving agency authority (after the fact) and reaping the benefit of the act.
Question 6
In merchant to merchant contracts for the sale of goods, when the contract fails to specify a term
like price, or quality, or warranty, if a dispute arises, the merchants can look to ___________ to
supply the missing term.
a. gap filler terms
b. the Internet
c. common law contract terms used in similar transactions
d. their lawyers correct answers a. gap filler terms
Question 7
Merchant S (seller) and merchant B (buyer) agree over the phone on the sale of office furniture
for $5,000. The next day, S sends B an email confirming the sale terms. B decides against the
deal and deletes the email. Three weeks later, S delivers the furniture to B. Is this contract
enforceable against B?
a. It depends on whether the sale price was reasonable.
b. No. The goods cost more than $500, and there is no written agreement signed by B (buyer).
Therefore, B can decide to pass on the sale as the contract was oral, not written.
c. It depends on whether B's situation changed, making the deal irrelevant.
d. Yes. A merchant's confirmation memo satisfies Article 2's statute of frauds, making this
contract enforceable. If B breaches, S can sue for damages. correct answers d. Yes. A merchant's
confirmation memo satisfies Article 2's statute of frauds, making this contract enforceable. If B
breaches, S can sue for damages.
Question 8
Two parties enter into a written contract. Later, both parties decide they do not want to perform.
Neither party has given performance. Can this contract be canceled?
a. Maybe if the decision to get out of the contract is made within a commercially reasonable
time.
b. Yes, the parties can agree to rescission.
c. No. It is in writing so it must be performed.
d. It depends on whether this contract is at common law or under UCC Art. 2. correct answers b.
Yes, the parties can agree to rescission.
Question 9
