Devry BUSN 420 Week 8 Final Exam

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Devry BUSN 420 Week 8 Final Exam

Question 1. (TCO 5) An appliance seller promised a restaurant owner that a home dishwasher would fulfill the dishwashing requirements of a large restaurant. The dishwasher was purchased but it was not powerful enough for the restaurant. Under the Sales Article of the UCC, what warranty was violated? (Points : 10)

  • The implied warranty of marketability.
  • The implied warranty of merchantability.
  • The express warranty that the goods conform to the seller’s promise.
  • The express warranty against infringement.

Question 2. (TCO 5) Under the Sales Article of the UCC, which of the following statements is correct regarding risk of loss and title to the goods under a sale or return contract? (Points : 10)

  • Title and risk of loss are shared equally between the buyer and the seller.
  • Title remains with the seller until the buyer approves or accepts the goods, but risk of loss passes to the buyer immediately following delivery of the goods to the buyer.
  • Title and risk of loss remain with the seller until the buyer pays for the goods.
  • Title and risk of loss rest with the buyer until the goods are returned to the seller.

Question 3. (TCO 5) EG Door Co., a manufacturer of custom exterior doors, verbally contracted with Art Contractors to design and build a $2,000 custom door for a house that Art was restoring. After EG had completed substantial work on the door, Art advised EG that the house had been destroyed by fire and Art was canceling the contract. EG finished the door and shipped it to Art. Art refused to accept delivery. Art contends that the contract cannot be enforced because it violated the Statute of Frauds by not being in writing. Under the Sales Article of the UCC, is Art’s contention correct? (Points : 10)

  • Yes, because the contract was not in writing.
  • Yes, because the contract cannot be fully performed due to the fire.
  • No, because the goods were specially manufactured for Art and cannot be resold in EG’s regular course of business.
  • No, because the cancellation of the contract was not made in writing.

Question 4.(TCO 8) Drew bought a computer for personal use from Hale Corp. for $3,000. Drew paid $2,000 in cash and signed a security agreement for the balance. Hale properly filed the security agreement. Drew defaulted in paying the balance of the purchase price. Hale asked Drew to pay the balance. When Drew refused, Hale peacefully repossessed the computer. Under the UCC Secured Transactions Article, which of the following remedies will Hale have? (Points : 10)

  • Obtain a deficiency judgment against Drew for the amount owed.
  • Sell the computer and retain any surplus over the amount owed.
  • Retain the computer over Drew’s objection.
  • Sell the computer without notifying Drew.

Question 5.(TCO 8) Under the UCC Secured Transactions Article, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? (Points : 10)

  • Filing a security agreement.
  • Taking possession of the instrument.
  • Perfecting by attachment.
  • Obtaining a duly executed financing statement.



(TCO 1) Your company has been sued for product liability and has a case going to trial next week. In researching some of the applicable cases, you have found some favorable language that interprets the applicable statute. Your supervisor has asked you to write a summary of the circumstances under which the judge should rely on existing case law to determine the intent and purpose of a statute.
How do case law and statutory law interact in the American legal process? Does one trump the other or take priority? When there is a statute and case law that apply, does the court have any discretion in how to apply the law to your case? (Points : 20)

(TCO 2) The state of Delmarva is making an effort to become greener and conserve more energy to set an example for its corporations from a corporate social responsibility standpoint. The state would therefore like to ban the power utilities from using any advertising if conservation could be accomplished by less restrictive means.
Is Delmarva within its rights as a state to pass this legislation in the interest of energy conservation? Why or why not? What type of speech is the state trying to limit? What, if any, protections are available for the utility companies? (Points : 20)

(TCO 3) Jane lives in Florida and owns a small fresh fruit market. Robert lives in Georgia on a peach farm. For years, Jane and Robert have worked together; Jane buying peaches from Robert and Robert selling peaches to Jane for resale. Jane travels across the border to Georgia to buy her peaches because she knows that Robert has the best peaches in Georgia and her customers love them and come from miles to buy them from her. Jane contracted with Robert to buy 4 bushels of peaches and traveled to Georgia, as usual, to pick them up. Unfortunately, before Jane arrived, Robert sold her peaches to Xavier, a gentleman from North Carolina who was passing through and insisted on buying every last peach available. Jane wants to sue Robert for breach of contract.
Can Jane sue Robert? What claims could she raise and in what court would she raise them? Explain your answer from a jurisdictional standpoint using the above scenario. What types of jurisdiction are at play? (Points : 20)

(TCO 4) Sandy mails a letter back to Andrea that she has signed; the letter makes reference to a car Andrea has for sale and Andrea’s desired price. When Andrea later delivers the car to Sandy, Sandy returns the car, claiming she does not want the car and that they did not have a contract, so she is not bound to keep the car. Andrea, however, claims they do have a contract and wants to enforce said contract for the price of the car. What standard would the court use to determine whether there is a contract between the parties for the sale of the car? (Points : 20)

(TCO 5) What is the Uniform Commercial Code (UCC)? What transactions are covered by the UCC? Provide two original examples of transactions that would be covered by the UCC in a business context. (Points : 20)

(TCO 6) Explain your understanding of administrative law. How would you classify administrative law from a categorical standpoint as it fits in the context of other areas of law and what procedures are involved in the administrative process as it pertains to an agency’s function and purpose? (Points : 20)

(TCO 7) Smart Corporation began marketing phone in 2002 under the mark “Smart.” In 2008,, Inc., a different company selling different products, such as school supplies and the like, begins using “smart” as part of its website URL and registers “sMART” as its domain name. Can Smart Corporation stop this use of “sMART”? If so, what must the company show? Use the scenario given to explain your answer in this context. (Points : 20)

(TCO 8) Provide a scenario that demonstrated a situation involving online defamation. What laws apply and what issues will arise in this context? How would this be classified as a cybertort and what is that by definition? How are tort theories being applied in cyberspace? (Points : 20)

(TCO 9) We often hear reference to the doctrine of respondent superior in a business context. Explain this doctrine. What are the ramifications of actions taken in the context of this doctrine once it is that someone is an agent? What are the key factors that can be used to determine whether an agent’s actions are within the scope of their employment? Explain these factors in the context of an original agency example demonstrating their importance. (Points : 20)

(TCO 10) Tim and Tom are twins. They live and work near the beach and are also partners in TnT, Inc., a bicycle messenger service. When deliveries are few, especially in the summer, Tom without telling Tim, rents the extra bicycles to tourists who want to explore the resort area. Because the bicycles aren’t being used for deliveries, is it acceptable for Tom to keep the proceeds he receives from renting leasing the unused bicycles? Explain your answer based on the facts in the scenario in the context of partnership law.