Practice

Flashcard 1
Front: What is the main issue in the Stambovsky case?
Back: Misrepresentation in real estate contracts; seller disclosed the house was haunted to the public but not to the buyer.

Flashcard 2
Front: What legal principle did the Stambovsky case establish?
Back: Sellers must disclose unique conditions they’ve publicized, even if caveat emptor usually applies.

Flashcard 3
Front: What is the main issue in the Jacobs & Youngs case?
Back: Substantial performance in construction contracts; the builder used non-specified pipe but of equal quality.

Flashcard 4
Front: What legal principle did the Jacobs & Youngs case establish?
Back: Substantial performance doctrine: minor deviations from a contract do not prevent enforcement if the deviation is trivial and innocent.

Flashcard 5
Front: What is the main issue in the Fitl case?
Back: Breach of contract and damages; buyer discovered a baseball card was altered and worthless after purchase.

Flashcard 6
Front: What legal principle did the Fitl case establish?
Back: Notification of a defect must be given within a reasonable time, but earlier notice would not have fixed the issue in this case.

Flashcard 7
Front: What is the main issue in the Coca-Cola case?
Back: Trademark infringement; competitors used the name "Koke" to imitate Coca-Cola.

Flashcard 8
Front: What legal principle did the Coca-Cola case establish?
Back: Trademarks are protected based on their current meaning and public recognition, not their historical origins.

Flashcard 9
Front: What is the main issue in the Lundberg case?
Back: Breach of contract; a farm manager guaranteed six live foals but only one was produced.

Flashcard 10
Front: What legal principle did the Lundberg case establish?
Back: Apparent authority: a principal is bound by an agent’s actions if the principal creates circumstances leading third parties to believe the agent has authority.

Flashcard 11
Front: What is the main issue in the Guth case?
Back: Breach of fiduciary duty; Guth used company resources to start Pepsi-Cola for personal gain.

Flashcard 12
Front: What legal principle did the Guth case establish?
Back: Corporate officers must act in the best interest of the company, not for personal gain.

Flashcard 13
Front: What is the main issue in the Schaefer case?
Back: Breach of contract; Schaefer was not paid his salary and bonuses by the LLC.

Flashcard 14
Front: What legal principle did the Schaefer case establish?
Back: LLC members are not personally liable for the LLC’s debts unless they act outside their role in the LLC.

Flashcard 15
Front: What are the elements of a valid express contract?
Back: 1. Offer, 2. Acceptance, 3. Consideration, 4. Capacity, 5. Legality, 6. Intent of parties.

Flashcard 16
Front: What is promissory estoppel?
Back: A promise is enforceable if one party relies on it to their detriment, even without consideration.

Flashcard 17
Front: What is the Statute of Frauds?
Back: Requires certain contracts (e.g., real estate, marriage, goods over $500) to be in writing.

Flashcard 18
Front: What is the difference between secured and unsecured creditors?
Back: Secured creditors have collateral (e.g., house, car), while unsecured creditors do not (e.g., credit card debt).

Flashcard 19
Front: What is the purpose of a UCC-1 financing statement?
Back: To perfect a security interest in goods, giving the creditor priority over other claimants.

Flashcard 20
Front: What is the Business Judgment Rule?
Back: Protects corporate directors from liability for bad decisions unless there is fraud or gross negligence.

Flashcard 21
Front: What is piercing the corporate veil?
Back: Holding a company or individual liable for another company’s debts by proving they are the “alter ego” of each other.

Flashcard 22
Front: What debts are not discharged in bankruptcy?
Back: Student loans, alimony, child support, punitive damages, and back taxes.

Flashcard 23
Front: What is the difference between compensatory and punitive damages?
Back: Compensatory damages cover actual losses, while punitive damages punish intentional wrongdoing.

Flashcard 24
Front: What is the purpose of a non-compete clause?
Back: To prevent employees from working for competitors or starting competing businesses after leaving the company.

Flashcard 25
Front: What is the FTC’s proposed rule on non-competes?
Back: Prohibits non-competes in employment agreements and requires employers to rescind existing non-compete clauses.

Flashcard 26
Front: What is the difference between an employee and an independent contractor?
Back: Employees are agents of the employer, while independent contractors are not, limiting employer liability for their actions.

Flashcard 27
Front: What is the doctrine of substantial performance?
Back: A party who substantially performs a contract, despite minor deviations, is entitled to payment, with adjustments for any differences in value.

Flashcard 28
Front: What is the purpose of a merger/modification clause?
Back: To state that the written contract represents the entire agreement and can only be modified in writing.

Flashcard 29
Front: What is the purpose of a liquidated damages clause?
Back: To predetermine damages in case of a breach, avoiding the need to prove actual damages.

Flashcard 30
Front: What is the difference between common law and statutes?
Back: Common law evolves through court decisions, while statutes are written laws passed by legislatures.

Flashcard 1
Front: What is the main issue in the Stambovsky case?
Back: Misrepresentation in real estate contracts; seller disclosed the house was haunted to the public but not to the buyer.