Question

1. sally and maria form an LLC. Sally runs a red light causing an accident. The person injured can

a. not sue sally to reach her personal assets.

b. not sue the business, as it is a LLC.

c. sue Sally to reach her personal assets and the business, but not Maria.

d. sue Sally and Maria to reach their personal assets.

2. Normally, after an offer has been accepted, but before the contract has been executed, the offeror is free to revoke the offer if a better opportunity presents itself or if it looks like the contract terms will not favor the offeror.

a.         True b.         False

3. An agreement for the sale of a house does not need to be in writing if the deal will be completed within one year.

            a.         True.

            b.         False

4. Marv offered to sell his watch to Mitch for $150. Mitch said, "Great.  I'll take it, but I will only pay you $125 for it."

a.         Mitch's response was a rejection and a counteroffer.  For a valid contract to be formed, Marv must now accept Mitch's offer.

b.         A contract has been formed for the sale of the watch for $125.

c.         A contract has been formed for the sale of the watch for $150.

d.         A contract has been formed, but the parties will still have to negotiate to reach an agreed upon price.

5. Sally forms a contract with Bill to shoot Sam in return for $5000. This contract is

a.         voidable.

b.         unenforceable.

c.         formal.

d.         void.

6. When faced with a contract problem, the first thing you should do is ask

1. is the value of the contract over $500?
2. are both parties merchants?
3. is the contract governed by the common law or the UCC?
4. all of the above

7. Mark, a minor, agrees to rent an apartment for a year.  The landlord is an adult. The contract is

a.         voidable by the landlord.

b.         voidable by Mark.

c.         voidable by either the landlord or Mark.

d.         void.

8.

Ben and Frank, two attorneys, shared office space, a telephone line, and the services of a paralegal.  They were very careful to tell all new clients that they were not doing business together, that they were simply sharing office space and personnel.  Ben missed a filing deadline and issued for malpractice.  In the lawsuit, only Ben can be named as a defendant

a.         as he is the one who committed the malpractice.

b.         because Frank never worked on the case.

c.         unless a court were to find that Ben and Frank had been working together in a partnership.

d.         unless a court were to find that Ben and Frank had been working together in a corporation.

Answer 1

1.In certain cases personal assets of one individual can be affected .Here Sally can sue her personal assets and business, but not Maria

Ans:c.sue Sally to reach her personal assets and business,but mot Maria

2.The offerer has all rights to revoke or change it before a formal contract is made ,once a contact is done it cannot be altered legally

Ans:True

3.A house agreement is made of 11 months and then not as be changed as it is invalid thereafter Similarly when a sale of house is to be done a contract is necessary

Ans:False

4.This is a form of offer where the person deserves the rights to express the amount from their side,acceptance and rejection can be done or decided by the offerer

Ans:d.a contract have been formed,but the parties still have to negotiateto reach an agreed up in price