Bus 250 Final || Questions and 100% Accurate Answers.
Civil Law correct answers Regulates the rights and duties between parties
Agent correct answers A person who acts for someone else
Bilateral Contract correct answers A promise made in exchange for another promise
Common Law correct answers Judge-made law
Law made when judges decide cases and then follow those decisions in later cases
Predictability and flexibility are the most important goals
Still predominates in contract law, agency law, and tort law
Contract correct answers A legally enforceable agreement
Equal Dignities Rule correct answers If an agent is empowered to enter into a contract that must
be in writing, then the appointment of the agent must also be written
Executed correct answers An agreement in which all parties have fulfilled their obligations
Fiduciary Relationship correct answers The trustee must act in the best interests of the
beneficiary
The beneficiary places special confidence in the fiduciary who, in turn, is obligated to act in
good faith and candor, doing what is best for the beneficiary, rather than acting in his own best
interest
Agents have a fiduciary duty to their principals
Gratuitous Agent correct answers Someone not paid for performing duties
Held to a lower standard because he is doing his principal a favor
Liable if they commit gross negligence, but not ordinary negligence
Defendant correct answers The party being sued
Executory correct answers An agreement in which one or more parties has not yet fulfilled its
obligations
Intermediary Agent correct answers Someone who hires subagents for the principal
Jurisprudence correct answers The philosophy of law
The theory and study of law. It strives to answer questions such as, what is law? What is the real
nature of law? Can there be such a thing as "illegal" law
Express Contract correct answers An agreement with all the important terms explicitly stated
,Jointly and Severally Liable correct answers All members of a group are liable. They can be sued
as a group, or any one of them can be sued individually for the full amount owed. But the
plaintiff cannot recover more than the total she is owed
Noncompetition Agreement correct answers A contract in which one party agrees not to compete
with another
Legal Positivism correct answers The law is what the sovereign says it is
Leaves no room for question of morality
Legal Realism correct answers Who enforces the law is more important than what is in writing
Argues that lawmakers can overcome personal bias
Nonphysical Tort correct answers One that harms only reputation, feelings, or wallet
Whether intentional or unintentional are treated like a contract claim: The principal is liable only
if the employee acted with express, implied, or apparent authority
Promissory Estoppel correct answers A possible remedy for an injured plaintiff in a case with no
valid contract, when the plaintiff can show a promise, reasonable reliance, and injustice
A plaintiff show in order to prevail in a promissory estoppel claim The defendant made a
promise to the plaintiff, The plaintiff did rely on the promise, The only way to avoid injustice is
to enforce the promise, and The defendant knew the plaintiff would likely rely on the promise
It allows a party to recover without a contract in certain circumstances, but these types of claims
rarely succeed in court
Natural Law correct answers An unjust law is no law at all
Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the US
declared war on Mexico. Thoreau felt that there was a higher law than the law of the land
The notion of civil disobedience is founded on this principle
Vague and sometimes difficult to determine
Quantum Meruit correct answers "As much as he deserves"—the damages awarded in a quasi-
contract case
Principal correct answers A person who has someone else acting for him
Has substantial liability for the actions of their agents
Plaintiff correct answers The party who is suing
Quasi-Contract correct answers A possible remedy for an injured plaintiff in a case with no valid
contract, when the plaintiff can show benefit to the defendant, reasonable expectation of
payment, and unjust enrichment
Respondeat Superior correct answers A principal is liable for certain torts committed by an agent
Subagents correct answers Someone appointed by an agent to perform the agent's duties
,Void Agreement correct answers A contract that neither party can enforce, because the bargain is
illegal or one of the parties had no legal authority to make it
Precedent correct answers The tendency to decide current cases based on previous rulings
Earlier decisions by the state appellate courts on similar or identical issues
Sovereign correct answers The recognized political power, whom citizens obey
Voidable Contract correct answers An agreement that may be terminated by one of the parties
Creating an Agency Relationship correct answers To create one, there must be:
-A principal
-An agent
-Mutually consenting that the agent will act on behalf of the principal and
-Subjecting to the principal's control
-Creating a fiduciary relationship
Statutes correct answers A law created by a legislature
Contract Law correct answers Based on the notion that you are the best judge of your own
welfare
For the most part, you are free to enter into any agreement you want, subject to whatever rules
you choose, and the law will support you
However, this freedom is not limitless, as the law imposes certain contract requirements
Varies from state to state
In the twelfth and thirteenth centuries, promises were not binding unless a person made them in
writing and affixed a seal to the document. This was seldom done, so most promises were
unenforceable
Control correct answers Principals are liable for an agent's acts because they exercise control
over that person
If principals direct their agents to commit an act, it seems fair to hold the principal liable when
that act causes harm
Acceptance correct answers Once a party receives an offer, he must respond to it in a certain way
Adjudicate correct answers To hold a formal hearing about an issue and then decide it
Elements Not Required for an Agency Relationship correct answers -Written agreement
-Formal agreement
-Compensation
Administrative Law Judge (ALJ) correct answers An agency employee who acts as an impartial
decision maker
, Written Agreement correct answers In most cases, an agency agreement does not have to be in
writing
An oral understanding is valid, except in one circumstance-the equal dignities rule
According to this rule, if an agent is empowered to enter into a contract that must be in writing,
then the appointment of the agent must also be written
Capacity correct answers The parties must be adults of sound mind
The ability of a party to enter a contract in the first place
Bill correct answers A proposed statute, submitted to Congress or a state legislature
Consent correct answers Certain kinds of trickery and force can prevent the formation of a
contract
Refers to whether a contracting party truly understood the terms of the contract and whether she
made the agreement voluntarily
Formal Agreement correct answers The principal and agent need not agree formally that they
have an agency relationship
So long as they act like an agent and a principal, the law will treat them as such
Compensation correct answers An agency relationship need not meet all the standards of contract
law
An agency agreement is valid even if the agent is not paid
Consideration correct answers There has to be bargaining that leads to an exchange between the
parties
The inducement, price, or promise that causes a person to enter into a contract and forms the
basis for the parties' exchange
Two basic elements: bargained-for exchange and value
Requires a legal benefit to the promisor or a legal
detriment to the
promisee
Stare Decisis correct answers "Let the decision stand," that is, the ruling from a previous case
Makes the law more predictable
Offer correct answers All contracts begin when a person or a company proposes a deal, but only
proposals made in certain ways amount to a legally recognized offer
An act or statement that proposes definite terms and permits the other party to create a contract
by accepting those terms
Two questions that determine whether a statement is an offer:
Do the offeror's words and actions indicate an intention to make a bargain?
Are the terms of the offer definite?
If they are vague there is no contract, even if the offeree accepts, because the court does not have
enough information to know what to enforce
