TRUE/FALSE (3 points each)
1. All agreements between two competent parties are contracts. _______
2. To be legally enforceable, contracts must be in writing. _______
3. Implied contracts are neither oral nor written. _______
4. In order for an offer to be valid, it must be definite and certain. _______
5. A direct, unqualified rejection terminates an offer. _______
6. The Mailbox Rule states that an acceptance sent by the postal system is effective when received by the
7. Consideration is one of the elements of a contract. _______
8. The courts generally do not rule on the adequacy of consideration. _______
9. An agreement based on an illusory promise is enforceable if the purpose of the agreement is legal.
10. A contract performed because “it is the right thing to do” is an example of forbearance consideration.
11. Past consideration is a promise to repay someone for a benefit after it has been received. _______
12. A promise to do something that one is already required to do, either by law of by contract, is valid
13. An agreement to perform an illegal act is void and unenforceable. _______
14. The Statute of Frauds specifies that certain types of contracts must be in writing. _______
15. A valid contract can be entirely hand written.
16. An agreement that cannot be completed within six months must be in writing. _______
17. The Parol Evidence Rule affects the enforceability of contracts that include oral or written changes in
the terms of an existing contract. _______
18. An agreement for the sale of real estate must be in writing to be enforceable.
19. The Statute of Frauds applies only to contract that have yet to be performed.
20. It is legally permissible to delegate contract obligations to perform certain tasks. _______
21. Contracts for personal service that rely on specialized skills may be assigned. _______
22. An agent is reasonable in assuming that he or she has the authority that is related to the responsibilities
covered in the contract of agency. _______
23. An agent is liable to the principal for any losses that result from the agent’s neglect or incompetence.
24. The primary distinction made by the IRS between an employee and an independent contract is the
number of hours worked per week. _______
25. An agent must be of legal age to contract. _______
26. Apparent authority is an agent’s authority that stems from the reasonable beliefs of third parties based
on the principal’s actions. _______
27. Actual authority is the authority an agent possesses as a result of the principal’s dealings with the
28. Workers’ compensation laws are designed to ensure that all employees are paid fairly. _______
29. OSHA, as an administrative agency, can impose a fine for a health or safety violation. _______
30. The protected class created pursuant to the Age Discrimination in Employment Act is a person over the
age of 50. _______
BA226 Final Exam Fall 2021
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31. When the federal government is not delegated a specific power, to where is it delegated and under
what authority? (5 points)
32. List three ways an offer can be terminated.
33. List five types of contracts that must comply with the Statute of Frauds.
34. Albert says to Blaine, “I will give you $100 for taking care of my dog while I was on vacation last month.”
Is this an enforceable contract, and why or why not? You do not need to list all the elements of a
contract for this answer. (5 points)
35. Allen calls Baker, a motorcycle collector, and says, “I will sell my 1985 Harley-Davidson motorcycle to
you for $1,000.” Allen does not know that his motorcycle is a rare model and is actually worth $50,000.
Being a collector, Baker is aware of its value. The next morning, Baker shows up at Allen’s house with
$1,000 cash to buy the motorcycle. Allen takes the cash and gives the keys to Baker. Nothing was put
in writing but they shake hands and Baker rides away on the motorcycle. The next day, Allen learns the
true value of the motorcycle and calls Baker to ask for return of the motorcycle. There is no law that
prohibits this transaction. Both Allen and Baker are over 18 years old and mentally competent.
describe all of the elements of a valid contract and explain whether each element is satisfied or not (or
doesn’t apply, as applicable to these facts), and explain whether there is or is not a valid contract. (40
BA226 Final Exam Fall 2021
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EXTRA CREDIT (Optional – 15 points each)
(1) Describe the characteristics of an agency relationship.
(2) Describe an example of an agency relationship, including third parties with whom the agent might incur
liability, using an example from the news, school or real life. Identify the principal, agent and third parties,
and what sort of authority the agent has and why (actual or apparent).
(3) What is it called when the principal knowingly takes no steps to clarify the agent’s authority after the agent
(4) What is it called when one person allows a third party to believe that another person is their agent even
when they aren’t?
Explain what factors are used to differentiate independent contractors from employees.
(1) What are the elements that must be proven by the plaintiff in a negligence lawsuit.
(2) Describe facts from a recent news story regarding an injury or death of each element and how there may
be proof of negligence in that situation. If the story doesn’t give enough facts, you can assume (make up)
whatever facts you think would satisfy each of the elements of a negligence case.
(1) While the homeowners are on vacation, a man breaks into a home to steal the owner’s flat screen TV. He
carries the TV out of the house but it turns out to be too heavy. He leaves the TV on the driveway and flees the
scene with nothing. What crimes under common law has he committed?
(2) A woman sneaks up behind another woman, reaches into the woman’s purse, takes $100 out of her wallet,
then changes her mind and puts the money back. What crimes under common law has she committed?
(3) Abel plans for weeks to kill his co-worker, Ben, when he arrives for work at the office on December 1. On
that date, Abel breaks into the office while it is closed to wait for Ben. Ben arrives at the office with Curtis,
another co-worker. Abel aims a gun at Ben. Seeing this, Curtis pulls out his concealed carry gun and shoots at
Abel. The bullet ricochets off a wall and kills Ben. Discuss what crimes, if any, Abel has committed? Discuss
crimes, if any, Curtis has committed?
BA226 Final Exam Fall 2021
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BA226 Fall 2021
Mid-Term exam assignment
Read this article: https://www.cnn.com/2020/04/22/business/business-schoolscoronavirus/index.html
Choose one of two perspectives:
1. You represent the student, Srishti Warman, and she wants to get back the money she paid
Cambridge for her MBA degree.
2. You represent the school, and it refuses to pay back the money it received from Srishti Warman.
Prepare a 2 to 3-page argument supporting the position you choose. You may assume whatever facts
you need (meaning you get to make up facts not in the article consistent with the position you choose)
to make your arguments. The form of the essay will be like an IRAC legal analysis. Use this format:
Paragraph 1: A discussion of the facts in the article you think are important in reaching your conclusion.
Paragraph 2: The additional facts you are assuming (making up) that are not inconsistent with the
article, and that will support your conclusion.
Paragraphs 3 – 10: An application of at least one legal concept from each of chapters 8 through 15 of
the textbook to one or more of the facts from paragraphs 1 and 2. For each legal concept, cite the text
section number. This is the heart of the paper and where most of the grade comes from; I.e., your
thoughts and analysis of whether or not an enforceable contract exists between the school and the
student, including the elements of a contract, its performance and discharge.
Paragraph 11: Your conclusion about why or why not an enforceable contract exists, and if so, was
there a breach of contract, and if so, what the remedy should be.
Due: Wednesday, November 10.
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