Mgt 340 Final Exam

Front 1

Define Contract

Back 1

promise or set of promises for breech of which the law gives us a remedy
set of voluntary promises that law will enforce for private parties

Front 2

Court and contracts

Back 2

court will not interfere with the terms of a contract

Front 3

All promises are contracts.

Back 3

False

Front 4

Common law

Back 4

man made law

Front 5

Sources of contract law

Back 5

common law
uniform commercial code

Front 6

uniform commercial code

Back 6

developed because of need for uniformity
article 2 deals with the selling of goods

Front 7

define good

Back 7

a movable thing; not a service of intangibles

Front 8

5 types of contracts

Back 8

bilateral vs unilateral
express vs implied
void vs voidable
unenforceable
executory vs executed

Front 9

define Bilateral Contract

Back 9

promise for a promise
promise to do one thing if promise to do something else

Front 10

define Unilateral contract

Back 10

one party makes a promise and the other party acts in response to that promise
promise in exchange for a performance
promise for an act

Front 11

define express contract
give exampled

Back 11

one where parties overtly and expressly manifest their intent to enter into an agreement
written or oral
ex: lease

Front 12

define implied contract

Back 12

inferred or implied by behaviors or parties or circumstance
ex: doctor or dentist office

Front 13

define quasi contract

Back 13

sometimes used by the court
when court treats it as a contract when none exists
used when one pary has been given a benefit to the detriment of another

Front 14

define void contract

Back 14

legal requirement is missing

Front 15

define voidable contract

Back 15

can be enforced but could be canceled by one or more of the parties
ex: contract with a minor

Front 16

define unenforceable contract
give example

Back 16

all requirements are present, but contract faulty because of some other legal rule
ex: want remedy after statue of limitations are up

Front 17

executory contract

Back 17

while parties are still performing under contract

Front 18

executed contract

Back 18

all performances have been completed per terms of agreement

Front 19

Contract formation
list all parts needed for contract to be present

Back 19

agreement
consideration
capacity
genuineness of assent
legality of purpose

Front 20

agreement
list and define 2 parts of agreement

Back 20

offer - promise to do something or refrain from doing something
acceptance - offeree's positive response to the offerors proposed contract

Front 21

Agreement - offer
requirements of a valid offer

Back 21

present intent to enter into a contract - more than joking, or invitation to do business
reasonably define the terms of contract
communication of the offer to the offered

Front 22

examples of critical terms (part of agreement for contract)

Back 22

payment
method
quantity
identification of parties
define subject matter

Front 23

agreement - offer
duration of offer

Back 23

revocation - offer can be revoked anytime prior to acceptance
set duration within the offer itself
if no duration established, use what is reasonable
offer can expire by rejection; counteroffer is a form of rejection

Front 24

agreement - offer
option contract

Back 24

seller leaves offer on the table for a particular duration of time
typically, party being offered contracts pays for this option while they decide whether to accept contract or not

Front 25

agreement - acceptance
mirror image rule

Back 25

acceptance terms must reflect the offer terms
anything else is counter offer

Front 26

anyone can accept the offer

Back 26

false. only the offeree can accept the contract

Front 27

agreement - acceptance
mailbox rule

Back 27

acceptance is affective when sent, even if it is never received

Front 28

define consideration

Back 28

bargain for a legal value that one party agrees to pay or provide to secure the promise of another
distinguishes a contract from a gift
courts do not determine how much consideration is enough

Front 29

contract - consideration
preexisting legal duty rule

Back 29

if already obligated to do something, not enough consideration for a contract

Front 30

define statute of fraud
give example

Back 30

certain contracts to be enforceable have to be in writing
Ex: contract for sale of land, contracts in consideration of marriage, contract for the sale of goods over $500

Front 31

define parole evidence rule

Back 31

when a contract has been reduced to a writing, with the intent that the written document represents the entire agreement, neither party can introduce oral or written evidence to prove or disprove contract

Front 32

exceptions to parole evidence rule

Back 32

presence of fraud
complete contract
ambiguities

Front 33

contract - types of capacity

Back 33

age capacity - must be 18 years of age
mental capacity - are they mature enough to appreciate what they are getting into? are they able to understand the terms of contract?

Front 34

exceptions to mental capacity

Back 34

intoxication
mentally impaired - voidable
legal incompetence - void
not as much protection for intoxicated as for age capacity

Front 35

define genuineness of assent

Back 35

parties must knowingly agree on the same thing

Front 36

types of genuineness of assent

Back 36

misrepresentation or fraud
duress

Front 37

genuineness of assent - contract
define misrepresentation and fraud

Back 37

misrepresentation - usually because someone has relied upon an opinion
lacks the intent to deceive
fraud - intent to deceive
both can be voidable contract

Front 38

genuineness of assent - contract
define duress

Back 38

when one part is physically forced into a contract or when you've been deprived of a meaningful choice to enter into an agreement

Front 39

genuineness of assent - contract
2 types of duress

Back 39

physical - gun to your head
emotional - have to enter into a contract because you have no other choice
makes contract voidable at option of person with duress

Front 40

genuineness of assent - contract
define undue influence

Back 40

when one part uses a close personal relationship with another party to gain contractual benefits
relationship of trust, reliance between parties

Front 41

genuineness of assent - contract
example of undue influence

Back 41

elderly people being tricked into leaving all of their money to their caregiver upon death

Front 42

contract - legality of purpose
define

Back 42

a contract that is for legal purpose

Front 43

genuineness of assent - contract
define unconscionable contract
give example

Back 43

so one sided, to enforce it would be unfair
price fixing; against public policy

Front 44

contract - remedies
list 2 and define types of remedies

Back 44

law - legal remedies, usually monetary remedies
equity

Front 45

contract - remedies
define compensatory damages

Back 45

to put the parties in the position they would have been if the breech had not occurred

Front 46

contract - remedies
define consequential damages

Back 46

any indirect losses experienced because of breech

Front 47

contract - remedies
example of incidental damages

Back 47

cost of phone calls, transportation, etc.
have a duty to mitigate loss

Front 48

contract - remedies - equity
define specific performance

Back 48

a court will require the breeching party to perform as directed under the contract

Front 49

contract - remedies - equity
define injunctive relief

Back 49

a court orders a party to do something or prevent a part to do something

Front 50

contract remedies
list 2 types of equity

Back 50

specific performance
injunctive relief

Front 51

Requirements of Credit Contract

Back 51

How much is being financed
Rate of interest
payment information
penalties for late/non payment
any statutory disclosures you're required to make

Front 52

List statutory requirements - credit contract

Back 52

state usury laws
sub-prime lending market
equal credit opportunity act
truth in lending act
advertising
credit cards fair credit billing act
fair credit reporting act

Front 53

define state usury laws

Back 53

charging an interest rate higher than maximum permitted by law

Front 54

penalties for state usury laws

Back 54

depends on jurisdiction
making contract void
require creditor to forfeit interest and principal
some say forfeit anything above and beyond legal rate
pay monetary find

Front 55

define sub-prime lending market

Back 55

loans where a high rate of interest is charged and the debtor is usually required to pledge collateral

Front 56

define equal credit opportunity act

Back 56

piece of federal legislation that was passed to ensure that credit would be awarded or denied based upon the merits of an applicant (ability/inability to pay)

Front 57

Equal credit opportunity act - designed for...

Back 57

to combat gender discrimination

Front 58

Equal credit opportunity act - restrictions

Back 58

not based on race, religion, gender, or age
not supposed to ask: planning on having a family/child, marital status, receive child support payments, etc.

Front 59

Equal credit opportunity act - enforced by

Back 59

FTC
can bring forth private lawsuits
receive punitive damages

Front 60

define truth in lending act

Back 60

make sure debtors are treated fairly through adequate disclosure of information/credit terms

Front 61

requirements of TILA

Back 61

debtor must be a natural person
loan has to be for a household or personal use
creditor must be in the business of extending credit
credit is subject to some sort of finance charge

Front 62

requirement of advertising financing

Back 62

must disclose all of the terms

Front 63

responsibilities of credit cards

Back 63

not supposed to send credit cards to your home
most you can be responsible for as a credit card holder is $50

Front 64

define fair credit billing act

Back 64

allows the debtor the opportunity to challenge figures that show up on monthly statements
debtors responsibility

Front 65

fair credit reporting act is designed to..

Back 65

protect debtors
can challenge things on credit report

Front 66

requirements for enforcement of credit contracts

Back 66

collateral
creditor collateral rights
fair debt collection practices act
judgment

Front 67

2 types of collateral

Back 67

security interest
security agreement

Front 68

list creditor collateral right

Back 68

can't harass debtors
protects creditor

Front 69

describe fair debt collection practice act

Back 69

third party creditors
initial creditor has assigned account to third party
cannot show up at inconvenient places
cannot call during inconvenient hours

Front 70

describe judgment or credit contract

Back 70

can start collecting
try to avoid judgment because it costs money

Front 71

describe bankruptcy

Back 71

designed to give debtor a fresh start
happens because of medical bills, loss of job, divorce, mismanagement of money
federal law

Front 72

forms of bankruptcy

Back 72

chapter 7 - liquidation petition/straight bankruptcy
chapter 11 - reorganization
chapter 13 - wage earner petition

Front 73

Bankruptcy - general

Back 73

liquidation petition/straight bankruptcy
available to businesses and individuals
voluntary or involuntary
given protection or relief - creditors cannot get assets
trustee liquidates assets and pays off creditors

Front 74

reform in chapter 7

Back 74

house used to be off limits for liquidation
certain dollar amount by way of equity on home
clothes, jewelry are usually safe

Front 75

chapter 11

Back 75

reorganization
popular among businesses but individuals are eligible
voluntary or involuntary
debtors work out a payment plan on debt
keep all of their assets
allows businesses to remain open

Front 76

chapter 13

Back 76

wage earner petition
only available to individuals
debtor must have a steady stream of income
limited amount of debt
only voluntary
creditors restricted from getting debtors assets
allowed 3-5 years to pay off all debt

Front 77

creditor priority in bankruptcy

Back 77

secure creditors
priority creditors - child support, wages of employees
general creditors

Front 78

non-dis-chargeable debt

Back 78

money to government
student loans
child support

Front 79

Define principal agent relationship
characteristics

Back 79

one party acts on behalf of another
consensual
bother owe fiduciary duties to each party
both expections from each party

Front 80

agency power of attorney

Back 80

limited

Front 81

principal

Back 81

granting authority to agent
the one who has something done on their behalf
employer

Front 82

agent

Back 82

person who has been hired by the principal
the one acting on the behalf of the principal
principal is bound by act agent does
employees

Front 83

master server relationship

Back 83

relationship where the principal/master excercises a great deal of control over the agent/servant
master is responsible for the negligent acts commited by servant

Front 84

level or supervision
master servant relationship

Back 84

the greater the level of supervision the more it looks like the masater servant relationship
look at to determine if the you have this relationship

Front 85

things to look at when determinign if master servant relationship

Back 85

level of control
length of relationship
regularity of hours or pay
nature of work in question

Front 86

independent contractor

Back 86

hired by principal to perform a specific tast, but not under direct control or supervision of the hiring party
prinicapl usually not responsible for negligence

Front 87

agency law

Back 87

stems from common law
not statutory in nature

Front 88

express authority

Back 88

employment contract; express agreement
agent given express authority to act on behalf of principal

Front 89

requirements of express authority

Back 89

record (not necessarily mandatory)
capacity - capacity of prinicapl; are they of a certain age, mature enough to understand agreement

Front 90

implied authority

Back 90

extension of express authority
not specifically covered in agreement

Front 91

apparent authority

Back 91

prinicpal hold themselves out to a third party as if they have an agent
look at what third party thinks

Front 92

agents duties

Back 92

duty of loyalty
duty of obedience
duty of care

Front 93

principals duties

Back 93

duty of compensation
duty of reimbursement
duty to treat agent fairly

Front 94

disclosed principal situation

Back 94

3rd party knows agent is working on behalf of prinicpal and principal is known
principal is liable

Front 95

partially disclosed principal

Back 95

3rd party knows agent is working on behalf of principal but principal is not known
can hold agent or principal liable

Front 96

undisclosed principal situation

Back 96

3rd party does not know that a princiapl exists
agent liable

Front 97

when is principal agent contract terminated?

Back 97

when task is complete
agent quits
principal fires agent

look for lingering apparent authoiry

Front 98

termination of contract - notice

Back 98

give notice to people you do business with so that there is no lingering apparent authority

Front 99

at will agreement

Back 99

serve at the pleasure of your employer
agent can quit at anytime
principal caan fire agent

Front 100

fair labor standards act
flsa

Back 100

apply to all businesses that affect interstate comerce
federal law
enabling statute that sets of administrative agencies to take care of employee law issues

Front 101

issues - flsa

Back 101

minimum wage
regulation of overtime pay
child labor provisions

Front 102

flsa - enforcement

Back 102

department of labor

Front 103

penalties - flsa

Back 103

fines
injunctions - civil
criminal punishment
remedies for private action

Front 104

equal pay act - flsa

Back 104

illegal to pay males and females different if they have the same type of responsibilities

Front 105

osha

Back 105

occupational safety and health act
federal agency designed to deal with workplace safety issues
establish workplace safety standards and enforces them

Front 106

what osha does
not the definition

Back 106

handle complaints
surprise inspections
record keeping

Front 107

penalties - osha

Back 107

injunctions
civil prosecution
criminal charges

Front 108

employee impairment

Back 108

increased liability for employers
decreased productivity
drug testing - legal; reasonable suspicion

Front 109

cobra

Back 109

ability to purchase continued health insurance at the group rate for a certain period of time

Front 110

family and medical leave act

Back 110

allows employee with a family need up to 12 weeks of unpaid leave in any 12 month period
must be given a similar job when return

Front 111

social security

Back 111

those who could work shoulder the responsibility to those that could not work
death benefits, disability, retirement
employee pays half; employer pays half
protects socity

Front 112

unemployment compensation

Back 112

allows someone who looses their job through no fault of their own, give % of compensation for approximately 26 weeks, but be able and available to work

Front 113

workers comp

Back 113

to provide benefits to those who are injured while on the job

Front 114

how employer gets workers comp coverage

Back 114

purchase private insurance
contribution to a state managed fund
individual employer can pay our claims themselves

Front 115

workers comp benefits

Back 115

half to two-thirds of regular wages
length of time varies depending on type of injury