LEB 323 Spring 2025 Final Exam Study Guide

Key Concepts

• Quantum Meruit: A legal principle where a person can recover the reasonable value of services provided when no formal contract is in place.

• Fraud: Misrepresentation of a material fact, with the intent to deceive, causing harm to another party.

• Title VII/Employment Discrimination: A U.S. law that prohibits employment discrimination based on race, color, religion, sex, or national origin.

• Strict Product Liability: Legal doctrine holding manufacturers and sellers liable for defective products that cause injury, regardless of fault.

• Failure to Warn: A type of liability arising when a product lacks proper safety warnings, leading to user harm.

• Reasonable Accommodation: Requirements for employers to modify work environments to accommodate employees' needs, especially for disabilities or religious beliefs.

• Scope of Employment/Authority: Determines when an employer is liable for an employee's actions based on whether those actions are within the range of their job duties.

• Assumption of the Risk: A legal defense asserting that a person cannot claim damages for injuries they knowingly assumed risk for.

• User Misconduct: When a consumer's improper use of a product may limit or negate liability claims against the manufacturer.

• Requirements of an Offer/Counteroffer: An offer must be clear and communicated, while a counteroffer rejects the original offer and proposes new terms.

• Fiduciary Duty: The legal obligation of one party to act in the best interest of another, often discussed in the context of real estate transactions.

• Promissory Estoppel: A legal principle enforcing a promise made without a formal contract when one party relied on that promise to their detriment.

• Intentional Torts: Civil wrongs resulting from intentional acts, leading to legal liability.

• Independent Contractor: A person contracted to perform work for another but is not an employee and retains control over how work is done.

• Duties of Agents and Principals: Obligations agents owe to their principals in a legal or business relationship, such as loyalty and disclosure.

• Apparent Authority: When a third party reasonably believes an agent has authority to act, even if the agent lacks formal authority.

• Implied Authority: Authority that isn't explicitly stated but inferred from actions or circumstances.

• Quasi-Contract: A legal obligation that arises in the absence of an agreement to prevent unjust enrichment.

• Implied Contract: A contract formed through conduct rather than written or spoken words.

• Hostile Work Environment Sexual Harassment: Workplace harassment characterized by unwelcome comments or behaviors that create a hostile or intimidating work environment.

• Limitations on Mailbox Rule: Rules governing when and how contract acceptance is effective, often tied to when it is received rather than when sent.

• Latent Defect: A defect that is not immediately apparent and may not be discoverable through reasonable inspection.

Review Questions

1. Homeowner Payment: A homeowner must pay for work performed under quantum meruit if they were aware work was being done and did not intervene.

2. Verbal Agreements in Texas: Generally unenforceable for real estate as the Statute of Frauds requires written contracts.

3. Appearance Policy under Title VII: Can be lawful if uniformly applied without discrimination.

4. Inadequate Warnings in Product Liability: Warnings that do not adequately communicate the severity of potential dangers are inadequate.

5. Retailer Liability: Retailers can be liability for defective products they sell, even if they did not manufacture them, due to their role in the distribution chain.

6. Religious Accommodation under Title VII: Employers must accommodate employees' religious beliefs unless it imposes an undue hardship.

7. Employer Liability during Employee Commute: Generally, employers are not liable for negligent acts of employees during their commute.

8. Assumption of Risk in Malfunctioning Equipment: May not apply if the employee was assured the equipment was repaired and function was concealed.

9. Manufacturers' Claim of Foreseeable Misuse: Cannot avoid liability if misuse is foreseeable.

10. Contract Negotiation with Counteroffers: A buyer must accept all counteroffer changes for a binding contract to be formed.

Essay Tips

• Disclosure Responsibility: Consider whether the party should have disclosed defects or issues about the property.

• Investigative Responsibility: Assess if the party had a duty to investigate based on visible defects.

• Influence of Misrepresentation: Evaluate if misrepresentation affected the decision to enter a contract.

• Actual Injury: Determine if there was real damage caused by the misrepresentation.

• Fiduciary Duties: Know the duties owed by real estate brokers to their clients.

• Consequences of Breach: Understand potential court actions for breach of fiduciary duty.

• Scope of Employment: Grasp its significance in employer liability and provide examples supporting both sides.

1. Contract Formation: This question addresses the rules surrounding offers and counteroffers in contract law. An offer has specific terms, including the acceptance deadline, and any changes made by the recipient can result in a counteroffer rather than an acceptance.

2. Implied Contracts: This question focuses on the concept of implied contracts, where an agreement may be inferred from actions or circumstances rather than explicitly stated. It examines whether a lack of written agreement undermines an implied understanding between parties.

3. Offer and Acceptance: It looks into the principles of contract law regarding offer and acceptance. A request for quotes is generally not an offer, but a firm acceptance of a clear offer can create a binding contract.

4. Capacity to Contract: This question highlights the legal concept of capacity, particularly concerning minors. Generally, contracts made by minors can be disaffirmed, allowing them to recover the full consideration paid.

5. Implied Warranty of Merchantability: This focuses on the consumer protection laws that guarantee products are fit for ordinary use. A breach occurs when a product fails to perform as expected, leading to injury.

6. Express Contracts and Payment for Services: This question explores the validity of express contracts and how they can be established through communication, with emphasis on the rights and obligations of parties when no prompt action is taken.

7. Enforceability of Oral Contracts: This question examines the enforceability of oral agreements under the Statute of Frauds, which requires certain agreements to be in writing to be enforceable.

8. Negligence and Warnings: This question revolves around negligence claims, particularly focusing on the failure to warn consumers of known dangers associated with using a product, thereby causing harm.

9. Breach of Contract and Lack of Seriousness: It assesses the necessity of clear acceptance and consideration in contract law, emphasizing that mere discussion is not sufficient for forming a legally binding agreement.

1. Aqua Net Case
In this case, Allison's actions led to her injuries. The question assesses liability concerning product warnings.

• Possible Outcomes:

  • a. She could win if the warning on the can was found insufficient to warn potential users about the specific danger posed by trying to puncture the can.

  • b. The argument that hair spray shouldn't contain alcohol is not valid; many hair products do.

  • c. She could lose because the product had the appropriate warnings about not puncturing the can and using it near flames.

  • d. Her age might not be a determining factor in this case regarding her capacity for negligence.

  • e. This option leaves room for considering other factors.

2. Eagle and West's Agreement
In this situation, West needs to present arguments based on the nature of their agreement.

• Arguments for West:

  • Implied contract based on Eagle's request for services and repeated assurances of payment.

  • Argument of quantum meruit for compensation based on the work done.

• Potential Damages for West:

  • Likely to recover the reasonable value of the services rendered, reflecting the estimated cost provided initially ($1200 to $1500).

3. Don and Jack's Furniture Contract
This case involves analyzing if an enforceable contract exists between Don and Jack regarding the furniture sale.

• Arguments for Don:

  • The April 30 letter provided specific terms for the sale, suggesting an offer was made.

  • Jack acknowledged acceptance by sending the $3000 check, thus acting on the agreement.

• Arguments for Jack:

  • He may claim his June 3 letter was a counteroffer and that his intention was limited to purchasing certain items.

  • He did not sign the April 30 contract before sending the check.

4. Ohs vs. Ford Motor Company
In this strict product liability case, key factors include product design and potential danger.

• Ohs' Argument:

  • The absence of engineered safety features in the Ford van makes it unreasonably dangerous.

  • Evidence of similar vehicles having such safety features indicates a standard that Ford did not meet.

• Ford's Defense:

  • Asserts that its vehicles are safe as designed and that any additional features would not guarantee safety in this specific case.

  • Cost-benefit analysis challenges the practicality of the suggested safety feature.

• Summary Judgment Consideration:

  • The judge should not grant summary judgment if there are genuine disputes regarding the facts concerning product safety and market standards, as well as if the risk vs. benefit analysis raises legitimate questions.

These scenarios encapsulate various aspects of contract and product liability law, involving considerations of implied contracts, enforceability, and product safety standards.