Final

Question 1

Domestic Corp

Answer 1

corporation forms in a state and operates business in that same state

Question 2

Foreign Corp

Answer 2

Forms in one state and operates in another state

Question 3

Alien Corp

Answer 3

Forms in one state and operates in another county (planet)

Question 4

Scienter

Answer 4

guilty mind

Question 5

Unilateral Mistake

Answer 5

when only one party is mistaken about a material fact in a contract (believing a fake painting is real)

Question 6

Respondeat Superior

Answer 6

Employers are legally responsible for the actions of their employees within the scope of employment

Question 7

Parol Evidence Rule

Answer 7

prevents parties from using oral evidence that goes against the written contract

Question 8

Prenuptial Rule

Answer 8

Legal agreement made before marriage as to how property will be divided if they get divorced

Question 9

Statute of Frauds

Answer 9

certain contracts must be in writing to be enforced

Question 10

Undue Influence

Answer 10

someone uses power against you to convince you to do something like signing a contract

Question 11

Liquidated Damages

Answer 11

contractually agreed upon amount of money that one party must pay if they breach the contract

Question 12

Nominal Damages

Answer 12

court awards a minimum of one dollar in damages

Question 13

One year rule

Answer 13

if a contract cannot be completed within one year, it must be in writing to be enforced under Statute of Frauds

Question 14

Mitigation of Damages

Answer 14

requires that an injured party takes reasonable steps to reduce the damages caused by the other party

Question 15

Specific Performance

Answer 15

court order requiring a party to fulfill the terms of the contract, typically used for unique or rare items

Question 16

Duress

Answer 16

threats used to force someone into a contract

Question 17

Reformation

Answer 17

allows the court to rewrite a contract to reflect the parties true intentions, usually when the terms are unfair or mistaken

Question 18

Trade Secret

Answer 18

confidential business information that gives a competitive edge like coca cola recipe

Question 19

DBA

Answer 19

doing business as

Question 20

Fraud and Elements to Prove

Answer 20

1. False representation of material fact
2. Intent to deceive
3. The innocent party relied on the misinformation
4. The party suffered financial or physical injury as a result

Question 21

Types of contracts under Statute of Fraud

Answer 21

1. Real Estate Contracts
2. Brokers Commissions
3. Sale of goods over $500
4. If you guarantee something

Question 22

Promissory Estoppel

Answer 22

1. A clear promise is made
2. The promisee relies on the promise
3. The reliance causes the promisee to suffer a detriment
4. It would be unjust not to keep the promise

Question 23

Partnership key rights

Answer 23

1. Right to participate in management
2. Right to share in profits and losses
3. The right to access information and books
4. The right to repayment of loans made to the partnership

Question 24

Franchise

Answer 24

1. Distributorship: car dealerships
2. Chain-Style: Dunkin
3. Processing Plant: bottling companies

Question 25

Coming and Going Rule

Answer 25

Employees cannot receive workers compensation for injuries that occur while commuting to or from work, as those are not in the scope of employment.

Question 26

Martin V. McDonalds

Answer 26

Issue: Is McDonalds liable for negligence? Decision: The court held that McDonalds was negligent for not following up to make sure the security issues were not corrected. If they checked up in security, the gunman would not be able to enter and harm the employees, holding them liable for the safety of their employees

Question 27

Keating V. Goldlick

Answer 27

Issue: Was Goldlick’s negligent conduct committed within the scope of his employment for Lapp Roofing? Decision: The court held that Goldlick was not acting within the course and scope of his employment when his negligent conduct occurred. The job did not pay him to drive the company vehicle while drunk. The court granted judgment to Lapp Roofing on this issue.