1.Bagle Me Inc. advertised with this slogan: â??The Best Bagels on Earth!â? (see photo) BlazingBage

1.Bagle Me Inc. advertised with this slogan: “The Best Bagels on Earth!†(see photo) BlazingBagels, Inc. sued Bagle Me Inc. for fraud and claimed that a survey proved that Blazing Bagels,Inc. (not Bagle Me Inc.) produced the best bagel. However, Bagle Me Inc. also had survey in whichsurvey respondents said Bagle Me Inc. produced the best bagel. Based upon case law that we’vediscussed and read in class, the court should hold that:Bagel Me Inc. violated the Magnuson-Moss Act because of their deceptivestatements.Bagle Me Inc.’s statement is mere sales puffery and not fraud.Bagel Me Inc.violated the Fraud Act because of their false statements about theirbagels.Bagle Me Inc.’sstatement is a warranty (or guarantee) and, since Blazing Bagels hasthe best bagels, Bagle Me Inc.’s statement constitutes fraud.2.9 pointsQUESTION 21.Penny Dollar owned and operated several successful businesses. Penny’s adult sonrecently graduated from college with an music degree, so Penny decided to help Bill set up amusic store. Specifically, Penny Dollar entered into an Agreement with Music Wholesale andDistribution to supply equipment and supplies to her son, Bill Dollar, to start his store. Inthe agreement between Penny Dollar and Music Wholesale and Distribution, Clause(paragraph) 7 stated: “This instrument contains the entire agreement of the parties. Nooral or other statements, proposals, or agreements shall be binding on either of the parties.”Clause 7 restates the which of the following rules:Doctrine of promissoryestoppelParol evidence ruleQuasi-contract doctrineStatute of Frauds2.9 pointsQUESTION 31.Bud Light underwent thorasic (chest) surgery. A few weeks later, he saw his regulardoctor (not the surgeon) because he had been having difficulties breathing ever since thesurgery. The doctor did a chest X-ray that revealed a laparotomy sponge had been leftinside Bud’s chest. Which statement isfalse?Bud Light could sue the surgeon (and/or hospital) for malpractice.Surgery is always risky, so Bud Light assumed the risk of danger and has no caseagainst the surgeon.Under res ipsa loquitur, the fact of the injury is evidence of negligence. Bud Light hasproven his case against the surgeon for negligence.Bud Light could recover compensation to cover the surgery to remove the sponge pluscompensation for his pain and suffering.2.9 pointsQUESTION 41.Bill Dollar leased space for his music store, Dollar Music, at Mayfaire ShoppingCenter in Wilmington. Did the lease contract have to be in writing to be legallyenforceable?YesNo2.9 points1.QUESTION 5Michael Rosella is accused of taking millions of dollars in relief funds after the gulf oil spill and isalso accused of pretending to be a certified public accountant in Wilmington. Rosella acted as anattorney for a firm he created where he represented a bay side property in Louisiana called Barataria Bay.Rosella claimed they lost millions after the BP Oil Spill, but the property never existed. Rosella receivedmore than $2.3 million.Julie Williams met Rosella in 2014 after she got a call from a friend about a new accountant that the friendfelt was up to no good. “He had business cards sitting on his desk saying he was a certified publicaccountant. Which he claimed he was,†said Williams. Records show that Rosella wasn’t and hasn’t beena licensed CPA since 1999.Has Rosella engaged in fraud?YesNo2.9 points1.QUESTION 6Bill Dollar opened a music store called Dollar Music. In one of his orders, he ordered five dozenassorted “MIDI Cables and snakes.” If a dispute arises and a court decided that “MIDI Cables andsnakes” was ambiguous, could evidence of trade usage or industry custom be used in court to clarify orexplain the meaning of “MIDI Cables and snakes?â€YesNo2.9 pointsQUESTION 71.On October 1, 2014, Armand Hammer of Tuff Equipment Co. and Duane Pipe of Pipeand Sons Construction signed a Lease Agreement for a Hyundai backhoe. On October 10,2014, Duane Pipe and his employee, Dusty Carr, went to Tuff Equipment Co. (in Dusty’struck) to pick up the backhoe they had leased. Unfortunately, Dusty Carr saw his enemy,Bob Katz, who is a Tuff Equipment Co. employee. Two other Tuff Equipment Co. employeesand Armand Hammer (owner of Tuff Equipment Co.) were standing with Bob Katz. In frontof everybody, Dusty Carr yelled at Bob Katz: “You are a smelly, old clown, Bob!People should be afraid of you.†Then Dusty punched Bob in the face and broke Bob’snose. Bob saw the punch coming and felt fear of imminent harm, but he just couldn’tduck in time. Dusty realized what he had done and got back into his truck and droveaway. Everybody laughed because everybody knew that 60 year old Bob Katz was not”smelly,” but he works as a clown every year for the county fair. Bob Katz has wonseveral awards for his excellent clowning. What did Dusty do?Assault onlyAssault, battery, anddefamation.Assault and battery, but notdefamation.Battery only3 points1.1.QUESTION 8Tuff Equipment and Pipe and Sons Construction made an agreement with thefollowing relevant terms:Return of equipment. At the end of the term, lessee shall return theequipment freight prepaid to lessor at the place from which equipment was shipped in asgood condition as it existed at the commencement of the term, reasonable wear and tearexcepted.2.Insurance. Lessee shall at all times during the term of this lease at itsexpense keep equipment insured to the amount of at least Twenty-Six Thousand (26,000)Dollars ($) for such risks as lessor shall require, with carriers acceptable to lessor, forlessor’s benefit. Lessee will deliver the policies of insurance to lessor. Lessor shall beentitled to receive all insurance proceeds collected under the policies.3.Purchase Option. Lessee has the option to purchase the equipment during the termof the lease upon payment of $25,900 and 80% of rental payments shall be credited toward the purchaseprice and the balance of such purchase price shall be paid in cash.On October 12, 2014, Justin Case (an employee of Pipe and Sons Construction) was drivingthe Hyundai backhoe the company had leased from Tuff Equipment. Unfortunately, Justinwas driving under a bridge in North Carolina and didn’t realize the backhoe was still in the”lift” position. Justin and the backhoe ran right into the bridge (see photo). Even moreunfortunate was that Pipe and Sons Construction never obtained insurance coverage for thebackhoe. Pursuant to the contract with Tuff Equipment, which of the following is the beststatement about what Pipe and Sons Construction must do?Pipe and Sons Construction doesn’t need to repair the backhoe before returning itto Tuff Equipment at the end of the lease because a construction accident is alwaysconsidered “reasonable wear and tear”.Pipe and Sons Construction must sue employee Justin Case to force Justin to pay for thedamaged backhoe.Pipe and Sons Construction must repair the damage to the backhoe before returning itto Tuff Equipment when the lease expires or purchase the backhoe instead of returningit to Tuff Equipment.3 points1.QUESTION 9Wickles, who had a textile company in the port city of Bristol, England, agreed to buya shipping container load of North Carolina cotton from Raffel “to arrive by the ship Apexfrom Wilmington.†The price for the container load of cotton was $300,000 and Wickleswould transfer the funds once the cotton arrived in Bristol.However, two ships were named Apex. One (from Liberia) would arrive in Bristol in Octoberand the other (from Jamaica) would arrive in Bristol in December. Wickles meant theOctober Apex and Raffel meant the December Apex. Since the ship didn’t arrive inOctober, Wickles sued Raffel for breach of contract. What should the court decide?This is a case in which the Buyer (Wickles) should win because the Buyer is alwaysright.This is a case in which the Seller (Raffel) should win because the Seller is always right.This is a case of mutual mistake, so there was no contract and the court cannot enforceanything (i.e., Wickles loses).This is a classic breach of contract case and Raffel owes Wickles $300,000.2.9 pointsQUESTION 101.Summer Beach is owner and President of a 5-store chain of tourist shops in NorthCarolina called Beach Toys. Knowing you are skilled in business law, Summer has asked youabout a recent problem. Summer hired Hugh DeMann to be Chief of Security for the BeachToys stores. The Beach Toys – DeMann written agreement stated that DeMann would beginwork on October 1, 2014 and the contract would end on September 30, 2015. The contractalso stated that DeMann would be paid $4,000 per month and could only be terminatedbefore September 30, 2015 “for good cause.†DeMann enjoyed his work at Beach Toys andreceived good reports from store managers, but after three (3) months, Summer firedDeMann because she thought DeMann was “too arrogant.” Does DeMann have anenforceable legal claim against Summer Beach and/or Beach Toys?No, because a contract that cannot be completed within one year violates the ParolEvidence Rule.No, because a contract that cannot be completed within one year violates the Statuteof Frauds.Yes, because of the doctrine of res ipsa loquitur.Yes. Summer violated the terms of the contract, so Beach Toys probably will oweDeMann damages (the salary) for the remainder of the contract (9 months).2.9 pointsQUESTION 111.Bill Dollar hired Melody Sung to work in his music store. The contract stated only thefollowing:The Employee shall commence employment on January 15, 2015, andshall work as a salesperson for an hourly salary of $15 / hour.The Employee shall work 9:00 am through 5:30 pm, Monday throughFriday, and such additional hours as are required by the Employer for the Employee tocompetently perform the duties of the position.This contract of employment may terminate at any time if there is justcause based upon non-performance of duties by Employee.Did the Agreement have to be in writing to be enforceable according to the Statute ofFrauds?YesNo2.9 pointsQUESTION 121.Which of the following statements is false?The motive of the defendant (alleged tortfeasor) is an essential element in a negligencecaseImplied warranty of fitness for ordinary purpose means that the product will work asexpected (example: a shoe can be worn without falling apart after wearing it).The defense to defamation is the truth of the matter asserted (alleged defamatorystatement is true).Causation is determined by a two-prong test: actual cause (cause in fact or “but for”)and proximate cause (foreseeability).2.9 points1.QUESTION 13Do or Die, a television reality show, requires all participants to sign a contract withthe following clause: “Participant hereby understands that the Do or Die reality showinvolves extreme or high-risk activities and Participant assumes all risks of the extremeactivity. Participant agrees to not hold Do or Die, Inc. liable for any injury or damageParticipant may suffer by accidents or injuries while participating in the Do or Die realityshow.†James Bond was seriously injured while extreme high-altitude skiing in a Do orDie reality show episode because the skis broke in half.The producer of Do orDieadmitted to reporters that they purposefully gave Bond defective skis in order to makethe show more exciting and increase the show’s audience ratings. The producer also toldreporters, “So what? The guy can’t sue us anyway!” Which of the following choices isthe best statement of the applicable law?James Bond has a legal right to sue Do or Die and probably will win because he did notassume the risk that Do or Die would provide him defective equipment to improve theshow’s ratings.James Bond has no legal right to sue Do or Die because he assumed all risk no matterwhat happened and must abide by the contract.James Bond has a legal right to sue Do or Die since exculpatory clausesare always unconscionable.2.9 pointsQUESTION 141.Willie Maykit was in Florida riding his motorcycle on a four lane bridge (2 laneseach direction). The speed limit on the highway was 60 miles per hour (mph), and theforensic evidence (e.g., skid marks, etc.) showed that Willie was riding at 55-58 mph.Witnesses testified that Willie was popping wheelies (riding on the back wheel only) andweaving in between and around the cars in a dangerous manner. Suddenly, a car inthe right lane began to move to the left lane just as Willie was passing on hismotorcycle. The force of the collision made Willie hit the barrier on the left side of theroadway and he flew into the air. Willie was killed and his estate sued Justin Credible,the driver of the car that hit him. What should Justin argue in his defense?Photo shows the point where Willie and the car collided. The photo is not necessary foranswering the question.Justin should argue that the state government is liable for to Willie’s estate because itwas negligent in setting the speed limit at 60 and placing barriers at the side of theroad.Justin should argue “contributory negligence” and “assumption of the risk.”Specifically, Willie Makeit contributed to his own injury and assumed the risk ofrecklessly weaving in and around the cars.Justin should argue “negligence per se” since Willie was speeding on the highway.Justin has no excuse and will pay for intentionally killing Willie.2.9 points1.QUESTION 1583-year-old Gladys Feran, suffering from dementia, was a resident at Cleveland’s LarchwoodVillage Retirement Community. In April 2009, Feran fell and broke her pelvis. She died two weeks later.Her family alleges that the cause of death was “blunt impact to trunk with fracture of pelvis.â€Feran had fallen at least 16 times during her 17-month stay at Larchwood. Feran’s family was nevernotified about any of these falls, and they only learned of them once Feran was transported to the hospitalafter her final fall. In addition, once the family learned of the multiple falls, the administrators atLarchwood denied that the falls ever occurred and told the family that Gladys Feran was the only residentwho had ever fallen at Larchwood.In attempting to discover what had happened, the family learned that at least two earlier falls occurredwhen Gladys Feran was pushing other residents in wheelchairs because Larchwood’s employee, GenePoole, told her to do so. Feran had also suffered a fractured clavicle and hip in prior falls. Moreover,Feran’s family discovered that many residents had suffered falls and injuries. Discovery showed thatone employee, Gene Poole, was with or near Feran for almost every one of Feran’s falls.Discovery showed that Gene Poole worked at two other senior living facilities before workingat Larchwood and had been fired for carelessness with elderly residents. Which of thefollowing is NOT a valid cause of action (claim) for the Feran family lawsuit againstLarchwood?Negligent hiringNegligenceNegligent or intentionalmisrepresentationIntentional battery3.1 points1.QUESTION 16WidgetCo hired Al Dente as a delivery person.The written contract stated:The Employee shall work 7:30 am through 4:30 pm, Monday throughFriday, and such additional hours as are required by the Employer for the Employee tocompetently perform the duties of his position. The Employee shall use his best effortson behalf of the Employer.This contract of employment may terminate upon the occurrence of any ofthe following events: (a) the death of the Employee; (b) the failure of the Employee toperform his duties satisfactorily after notice or warning thereof; (c) for just cause basedupon non-performance of duties by Employee; (d) economic reasons of the Employerwhich may arise during the term of this Agreement and which may be beyond thecontrol of the Employer.The Employer shall pay to the Employee as compensation for services,and the Employee agrees to accept the sum of $ 20 per hour, payable monthly.This Agreement constitutes the complete understanding between theparties, unless amended by a subsequent written instrument signed by the employerand employee.When WidgetCo’s President, Ima Boss, and Al Dente were negotiating the employmentcontract (and before the contract was signed), Ima Boss told Al that he would receive healthinsurance through the company after three months of employment. No statement abouthealth insurance was included in the written contract. After six months, WidgetCo still hadnot provided Al Dente with health insurance of any kind and Al Dente told Ima Boss thatWidgetCo had breached the contract of employment and he threatened to sue the company.Did WidgetCo. breach the contract?Yes, because Ima Boss and WidgetCo promised to provide Al Dente with healthinsurance after three months and this promise was an additional term of thecontract.No,sincethiswasn’tavalidcontractNo, because the oral statement about insurance wasn’t part of the written contractand does not comply with contract requirement for amendments.3.2 points1.QUESTION 17Matthew was on a Delta flight from Amsterdam to Minneapolis after a business trip.His company, Widgetco, had purchased the ticket. The in-flight dinner was served andMatthew took a bite and felt something very sharp that injured his gum. Matthew looked athis sandwich and found a needle in the turkey meat. The needles were discovered insandwiches which were made by Delta’s caterer in Amsterdam. Needles turned up on twoflights to Minneapolis and Atlanta. Matthew sued Delta Airlines and Delta’s caterer, GateGourmet, based on product liability and warranty theories. The defendants used thedefense that Matthew wasn’t seriously injured. Based on the case law discussed in class andthe text, what should the court rule?and Gate Gourmet served a defective product and mustcompensate Matthew for his injury.The rule is “caveat emptor” or let the buyer beware, so Matthew cannot sue DeltaAirlines and Gate Gourmet for a bad sandwich.Matthew will have to sue his company for his injuries because his company purchasedDelta Airlinesthe airline ticket.Matthew wasn’t really injured, so Delta Airlines and Gate Gourmet cannot beforced to compensate Matthew for his alleged injury or the mere fact that there wasa foreign object in the sandwich.2.9 pointsQUESTION 181.Jack said to Jill, “If you go up the hill with me, I’ll give you a dollar.” Jill said nothing,but went up the hill with Jack. Does Jack have to give Jill the dollar?Yes, because Jack made and offer and Jill accepted by doing something she was notobligated to do (consideration). Jack needs to pay Jill $1.No, because contracts must be written in order to be legal.No, because Jill didn’t verbally accept Jack’s offer.2.9 points1.QUESTION 19An agreement was made between Tuff Equipment Co., of La Vergne,Tennessee (lessor) and Pipe & Sons Construction, Inc. (lessee), having its principal place ofbusiness in Asheville, North Carolina. The agreement was for a lease of a Hyundaibackhoe for use in construction projects. A dispute arose about the use of theequipment and the relevant parts of the contract were:1.Location. The equipment shall be used only for projects of Jackson & SonsConstruction, Inc. within the state of North Carolina, and lessee shall not remove it from saidstate without the written consent of lessor.2.No assignment. Neither this lease nor any right or interest thereunder shallbe assigned by lessee in any respect whatsoever.3.Choice of law. This lease and agreement shall be deemed to have been executedand entered into in the State of Tennessee, shall be construed and performed in accordance with the lawsthereof, and enforced by the state courts of Tennessee.4.Exclusion of oral statements. This instrument contains the entire agreement ofthe parties. No oral or other statements, proposals, or agreements shall be binding on either of theparties.Pipe and Sons Construction, Inc. sued Tuff Equipment Co. in a North Carolina trialcourt, demanding compensatory damages for breach of contract. TuffEquipment Co. filed a lawsuit in a Tennessee trial court against Pipe and SonTuffEquipment Co.s Construction, Inc. for breach of contract because Pipe and SonsConstruction, Inc. used the leased equipment in Tennessee. Which lawsuitshould be dismissed by the court in which it was filed, and why?Pipe and Sons Construction, Inc. lawsuit against Tuff Equipment Co. becauseof the terms of the Agreement.Pipe and Sons Construction, Inc. lawsuit against Tuff EquipmentCo. because Tuff Equipment Co. is located in Tennessee and a defendantmust always be sued in its home state.Tuff Equipment Co.’s lawsuit against Pipe and Sons Construction, Inc.because a plaintiff (Pipe and Sons Construction) has the right to file alawsuit in its home state..3 points1.QUESTION 20In a lawsuit for a negligent tort, Plaintiff Hazle Nutt proved that she walked into aGolden Corral restaurant, slipped on a puddle of water and fell to the floor. Plaintiff Nuttalso proved that she broke a fingernail and bruised her hip when she fell.The DefendantGolden Corral showed the judge and jury surveillance video that proved the restaurantplaced a warning sign in clear view of customers, all other customers avoided the water onthe floor, and Hazle Nutt ignored the sign and stepped in the water. In a contributorynegligence state (such as North Carolina), what should the court do?The court must apply the doctrine of contributory negligence and and allow the jury tocompare the actions of Hazle Nutt with that of Golden Corral, reducing Hazle Nutt’sdamage award (i.e., money) appropriately.The court must apply the doctrine of contributory negligence and dismiss Hazle Nutt’slawsuit against Golden Corral. (i.e., Golden Corral wins)The court must apply the doctrine of res ipsa loquitur and hold that Hazle Nutt wouldnot have fall except for the puddle of water, therefore Hazle Nutt wins her lawsuitagainst Golden Corral.2.9 pointsQUESTION 211.The limitation of liability stated on the back of this parking ticket is valid andenforceable as a contract.TrueFalse3 pointsQUESTION 221.Jim was leaving a building and went through the revolving door at the entrance to the officebuilding. Suddenly, the revolving door jammed and the glass shattered. Jim suffered somecuts, but no serious injury.Forensic evidence proved that an electrical short caused thedoor to jam and the short was caused by a defective transistor in the motor. What kind of alegal situation is this? (Photo not necessary for answering question)ProductliabilityNegligenceIntentionaltortBreach ofcontract2.9 points1.QUESTION 23Iggy Azalea told Justin Bieber that she would pay him “$1 trillion†if Justin wentonstage in women’s clothing at his next concert. Justin thought Iggy was crazy, but Justinagreed and wore a beautiful red evening gown at his next concert. Iggy wouldn’t pay andJustin sued her for breach of contract. The judge ruled that the contract was not validbecause a vital element failed, so Iggy didn’t have to pay Justin. Why?Lack of genuine assentIggy merely made an invitation tonegotiateLack of purposeLack of consideration2.9 pointsQUESTION 241.Don Quixote sold his business, Quixote’s Bar and Grill, to Abby Hoffmann. Quixote toldHoffman during the negotiations that the business has had sales averaging $2 million for thepast four years and a profit margin of 10%. The records demonstrated that the sales of $2million was correct, but Quixote had never recorded his salary of $100,000 per year.Consequently, the profit margin was actually 5% rather than a 10% profit margin. After oneyear, Hoffman realized that Quixote hadn’t recorded a salary and filed a lawsuit against DonQuixote. At trial, Quixote stated on the witness stand, “I didn’t think I was supposed to recordmy own salary since it was my business. Why? Was I supposed to do that?” Which of thefollowing describes a valid cause of action (theory) for Hoffman’s lawsuit?Breach of warrantyBreach of contractDefamationNegligentmisrepresentation2.9 points1.QUESTION 25Mandy is 17 and has been working at Love Your Style clothing store for two months.Sadly, her immediate boss(shift supervisor Moe Lester, married, 40 years old) has beenbothering her alot, asking her on dates, “accidentally” bumping into her, telling her howbeautiful she is, and whispering obscene things to her. In other words, her boss has beensexually harassing her. Mandy has asked the store manager to talk to Moe, but nothinghas happene… 

 

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