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Business Law – Anticipatory repudiation

Anticipatory repudiation may be used when a party has knowledge that either a complete or a partial breach will occur by the other party.
Steve is an avid bicyclist and sends in a $150 fee to participate in an across-the-state ride in the Midwest. A week before the ride, he breaks his leg. Unless the contract specifically provides for no refunds under any conditions, he will be able to receive a refund based on impossibility.
Substantial performance will be enforced only if the deviation from complete performance is not material to the contract.
Impossibility of performance is subjective, meaning that one of the parties may unilaterally decide that performance is impossible, thus discharging the contract.
The United Nations Convention on Contracts for the International Sale of Goods does not recognize a formal writing requirement similar to the UCC statute of frauds requirement.
UCC risk of loss provisions will govern the terms of a contract even if the parties have specified risk allocation in the contract.
If a seller has delivered nonconforming goods that have been rejected, upon notice of an intent to cure, the seller automatically then has 15 days to deliver conforming goods.
If two companies enter into a sales contract and the shipping terms are omitted from the agreement, the contract will automatically become a shipping contract.
Inducing someone to break a contract with a third party is tortious conduct.
Regarding defamation, a qualified privilege exists in courtrooms and legislative hearings.
Dirk is the delivery driver for Papa Pepperoni’s Pizza. On a delivery he spotted Marvin, his main competition for the affections of his girlfriend Jolene. He accelerated his truck and hit Marvin, breaking both his legs. Under these circumstances, this is
Multiple Choice

a negligent tort.
an intentional tort.
a crime but not a tort.

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A plaintiff who knows there is a substantial danger associated with certain conduct and goes ahead with the dangerous activity anyway gives the tortfeasor the defense of
Multiple Choice

assumption of the risk.
Res ipsa loquitur.
strict liability.
superseding cause.

Isabelle was a reporter for KTUV News. She reported on the nightly news that Sharaf, an engineering professor at the city’s university, was a prime target of a State Department terrorism investigation and was credibly accused of aiding international terrorists to attack the United States. Although Isabelle had received this information from a reliable government source and had no malice against Sharaf, the story was completely false, Sharaf was innocent. Sharaf’s reputation in the community was ruined. His friends avoided him and students stopped signing up for his classes. He was eventually fired by his dean. Which of the following is Isabelle guilty of?
Multiple Choice

Isabelle is not guilty of defamation due to an absolute privilege.
Isabelle is guilty of libel for telling a lie that caused injury to Sharaf.
Isabelle is guilty of slander for telling a lie that caused injury to Sharaf.
Isabelle is not guilty of defamation due to a qualified privilege.

The state of Montana legislature passed a law requiring that all visitors to factories wear safety glasses. Carl Cutcorner, a supervisor at Shirk Machines, told a visiting group of teachers and students from a local high school that there were not enough safety glasses for all of them, so several went without while on the facility. Penny, a teacher, suffered an eye injury when a metal shaving flew off a machine and hit her in her unprotected eye. If Penny files suit against Shirk Machines and Cutcorner and the court rules that Shirk and Cutcorner breached their duty. The negligence analysis without requiring Penny to delve into the reasonable person analysis or prove negligence, is an application of
Multiple Choice

negligence per se.
res ipsa loquitur
strict liability.
superseding cause.

In a products liability case, the injured party can pursue a legal remedy against the seller of the product based on all of the following theories except
Multiple Choice

strict liability.

CompAmerica (CA), an internet service provider, provided the online platform for thousands of customers to publish their online content. CA did not edit, review or reformulate content posted by customers. One of those customers was a rumor website named Scandalcity, which published several false and defamatory statements about Roger, a high school principal. These included lies that he had stolen money from his high school and was selling drugs to students. Roger was fired and sued CA for providing the platform for these defamatory statements, under the theory that CA was a publisher. What should be the result of Roger’s lawsuit?
Multiple Choice

CA should win because internet service providers have immunity and safe-harbor as publishers from defamation claims.
CA should win because internet defamation requires that specific malice be proven, and this was not present in CA’s actions.
Roger should win because this is libel and CA was the publisher.
Roger should win because this is trade libel, as it involves Rogers profession, and CA was the publisher.

Which of the following is correct of the UCC?
Multiple Choice

It applies in every state.
It applies only to agreements for the sale of goods.
It is federal law.
It is binding on all commercial transactions.

Carla’s Cars (CC) and Trixie’s Transmissions (TT) entered into a contract for CC to purchase transmissions from TT. Certain terms of the contract were in compLETE and somewhat ambiguous. Under the UCC, this contract will be allowed to be enforced using each of the following criteria except the:
Multiple Choice

typical standards followed by the industry in which CC and TT operate.
letters, emails and oral exchanges between CC and TT.
trial judge’s input of any terms necessary to maintain fairness between CC and TT.
manner in which CC and TT have dealt with their commercial conduct in the past.

Which of the following contracts would be properly subject to the rules of a UCC sales contract?
Multiple Choice

Jenny sells the rights to several patents that she developed as a medical researcher for $500,000.
Forrest rents his house in Daytona Beach during Spring Break for $501 a day.
Lieutenant Dan signs a contract to work for a federal government agency for three years in consideration of $100,000 per year.
Bubba purchases three pounds of peaches from a roadside stand near Macon for $10.

Stewart’s Submarines contracts with Brando’s Battery Supply (BBS) to purchase 100 batteries. There is no provision in the contract stating when the payment is to be made for the batteries that are delivered by BBS. The UCC requires that payment be made in full
Multiple Choice

within 30 days of the time and place that delivery occurs.
within 10 days of the time and place that delivery occurs.
within a reasonable period of time after delivery occurs.
at the time and place that delivery occurs.

Ginger signed a contract with Trickyco, a large corporation, it was a standard preprinted contract. There was no bargaining for the terms of the contract and Ginger was offered it on essentially a take-it-or-leave-it basis. This type of contract is known as a/an
Multiple Choice

multilateral contract.
adhesion contract.
void contract.
duress contract.

The completion of a contract when both parties no longer have obligations under it because they have performed everything in good faith is known as
Multiple Choice

Operation of Law.
dismissal of obligorship.
Substantial Performance.

Big Insurance Corporation had a provision in their insurance contract with Gerald that said the following: “No lawsuit to recover under this contract shall be valid unless the suit is filed within 18 months of the time of the insured’s loss.” Which of the following types of conditions is this?
Multiple Choice


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