Business Law 2nd Milestone Sophia

1

A red car crashes into a blue car at night on a dark road. The driver of the blue car sues the

other driver for negligence.

Assuming it is true, which of the following would represent a strong defense against the

negligence claim?

The red car was rushing to the scene of another accident to provide medical care.

Both drivers assumed the increased risk associated with driving at night.

The driver of the blue car was drunk and driving erratically, which caused the accident.

Neither driver was wearing a seatbelt.

CONCEPT

Negligent Torts: Damages and Defenses

2

Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a

shirt supplier. Before Juan ships the shirts, he discovers through conversations with other

shirt suppliers that Cynthia is insolvent and is unlikely to pay for the shirts upon their

delivery.

What remedy does Juan have in this scenario?

Juan has 10 days to determine whether or not Cynthia is actually insolvent, at which point he

must ship the shirts or cancel the contract.

Juan must ship the shirts regardless; otherwise, he will be in breach of contract.

Juan has no recourse in this scenario, since Cynthia is insolvent.

Juan may refuse to deliver the shirts unless Cynthia pays in cash ahead of delivery.

CONCEPT

Seller's Remedies Under the Uniform Commercial Code

3

Tort law is similar to criminal law in that __________.

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they both have primarily developed in common law courts

they both require a wrongful act by a defendant for the plaintiff to recover

they both require specific intent on the part of the defendant

they both require specific intent on the part of the plaintiff

CONCEPT

Introduction to Tort Law

4

An example of foreseeable damages from a faulty repair of your car that led to an

accident would be __________.

your loss of one year's wages from a job, since you were fired that day for being late after the

accident

your loss of a winning lottery ticket that blew away in the wind during the accident

additional hotel and travel charges that you incurred, because you missed your flight that day

as a result of the accident

the cost to repair your vehicle, as well as all damage to other vehicles involved in the accident

CONCEPT

Limitations on Contract Remedies

5

A 60-year-old man develops lung cancer, and sues the manufacturer of an asbestoscontaining material. The man worked in construction for 45 years, and often used the

asbestos-containing material in building projects. He believes that the asbestos-containing

material was unreasonably unsafe, because friends of his in the construction trade who used

alternative materials did not develop lung cancer.

How strong is the negligence case against the product manufacturer?

Strong, because the alternative materials used by his friends were much safer.

Weak, because the manufacturer can claim preemption.

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Strong, because the manufacturer failed to warn users of the potential dangers of asbestos.

Weak, because proximate cause is difficult to prove in the absence of other, similarlyaffected individuals.

CONCEPT

Negligent Products Liability

6

A laundry detergent company advertises that its new product can remove any stain from

clothes in just one wash, although company testing has shown that it oftentimes takes two or

three washes for a stain to disappear.

Which type of intentional tort does this represent?

Tortious interference with contract

Defamation

Misrepresentation

This action does not rise to the level of an intentional tort.

CONCEPT

Intentional Torts

7

Select the example that is inconsistent with the provisions of the UCC for contract

remedies for a seller's breach of contract.

An appliance company sells a defective stove that injures its owner. The sales contract

excludes responsibility for consequential damages except those deemed unconscionable, so

the company replaces the stove and compensates the woman for her injury.

In its sales contract, a software company specifies that its sole obligation in the event that its

software is defective is to replace it with a non-defective copy.

In order to be more competitive with buyers, the sales contract for a television manufacturer

extends the statute of limitations for breach of contract claims to six years.

The sales contract for a shoe company specifies that the statute of limitations for any charges

of breach of contract shall be limited to two years.

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CONCEPT

Remedies in General Under the Uniform Commercial Code

8

Heidi purchases an original work by one of her favorite sculptors from an art dealer for

$8,000. When the sculpture is delivered, Heidi has it inspected by an art appraiser, who

informs her that the sculpture is a fake. When Heidi calls the art dealer to tell him the news,

he is honestly shocked and appalled.

What remedy does Heidi have in this scenario?

Heidi is entitled to recover the purchase price of the sculpture, as well as the money she spent

to have the sculpture appraised.

Heidi has no recourse in this scenario, because she accepted delivery of a non-conforming

good.

Heidi is only entitled to recover the money that she paid for the sculpture.

Heidi may sue the art dealer for specific performance and require the dealer to secure the

original sculpture in any way possible.

CONCEPT

Buyer's Remedies Under the Uniform Commercial Code

9

A driver is texting and runs into a pedestrian crossing the road at a crosswalk. The pedestrian

suffers a broken leg and is rushed to the hospital.

Is the driver liable for negligence if the pedestrian sues?

No, because it would be difficult to prove that the driver's texting was the proximate cause of

the pedestrian's broken leg.

Yes, because the driver broke the law by texting while driving.

No, because even though the driver was texting while driving, the pedestrian had a duty to

look out for possible dangers before entering the crosswalk.

Yes, because the driver had a duty of care which was breached by texting while driving, and

the pedestrian had legally recognizable injuries directly resulting from that breach.

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