Exam 19: Business Law

The law recognizes that an agent's primary responsibility is to look out after his or her own interests.

Aaron Wright is a sales agent for Grandfather Clocks Unlimited, and he has the company's explicit recognition of his ability to finalize sales contracts. He negotiated a sales agreement with Bhatti's Furniture Stores for the delivery of 50 clocks by the 30th of the month. Bhatti's did not receive the clocks on time to satisfy the customer orders they intended to fill. The principal is liable for making good on this promise because Aaron was acting according to which of the following?

The main difference between civil cases and criminal cases is that criminal cases are concerned only with felonies, while civil cases are concerned only with misdemeanours.

When goods are shipped from the seller to the buyer, the risk of loss due to damage or spoilage always rests with the party who held legal title to the goods at the time the loss occurred.

A statute of limitations limits the size of monetary payments a jury can award to the injured party in civil trials.

Precedents are laws based on rulings by government regulatory agencies that Parliament has given authority to regulate a specific type of activity.

Case law (or common law) refers to laws that result from rulings, called precedents, made by judges who initially hear a particular type of case.

Which of the following is a code that establishes the fundamental rules and principles that govern a particular organization or entity?

A civil law court would be most likely to hear cases concerning which of the following?

Which type of damages are monetary payments a party who breaches a contract is ordered to pay in order to compensate the injured party for the actual harm suffered due to the breach of contract?

Common law generally considers minors as lacking the legal capacity to enter into most types of binding contractual agreements.

Compensatory damages refer to monetary payments a party who breaches a contract is ordered to pay in order to compensate the injured party for the actual harm suffered due to the breach of the contract.

What laws, which may be written and passed by federal, provincial, or city governments, are enacted by legislative bodies?

The statute of frauds stipulates that certain types of contracts, such as those involving the sale of land, must be in writing in order to be enforceable.

Which of the following requires certain types of contracts to be in writing in order to be enforceable, such as contracts that take more than a year to complete or that involve the sale of goods worth $500 or more?

A key duty of the agent in a principal-agent relationship is to act in the best interests of the principal.

Merlotta Winery Inc. hires several agents to represent the firm across the nation. The firm has the legal right to expect these agents to be loyal, make a sincere effort to effectively complete their duties, maintain open lines of communication about their work, and to keep accurate records.

Bernie Ashby travels throughout the country representing the Cosgate Corporation Advertising Agency. He visits with major corporate accounts and has the authority to negotiate binding sales contracts. If Bernie creates a crime while pursuing his duties, the Cosgate Corporation will be held legally responsible for his actions even if they did not approve or support his illegal actions.

Henry, who is already 25, promised in writing to give his buddy Jake $250 as a gift when he celebrated his 25th birthday. Jake thanked Henry and kept the written promise in his wallet. But when the date arrived, Henry decided not to make the payment. Jake was understandably disappointed and plans to sue Henry for breach of contract in order to require him to make good on his promise. Why is Jake's lawsuit unlikely to be successful?

An agent may be acting illegally if he or she disobeys lawful instructions issued by the principal.