Black hired Blue Automation to build a special machine to be used by Black in th
ID: 1862878 • Letter: B
Question
Black is liable for this amount to Blue; Black may not recover his damage from Gray Motor Company.
Blue has a right to demand payment for whatever time had been invested in the machine, but not the profit he would have made on it.
Blue has a right to demand payment for whatever time had been invested in the machine, plus the profit he would have made on it.
Question 7. 7. Black bought an automatic machine from White to replace a machine that had previously required two employees to operate. In selling the machine to Black, White pointed out the saving in the cost of the employees' time. White also stated that "Productive capacity will be doubled"? with the new machine. Hourly production increased even more than double -- 1,100 pieces per hour against 500 pieces per hour previously. However, there was a problem involved. The machine seldom ran an hour without breaking down. Whenever it broke down, either one or two machine service personnel would be called upo n to fix it. After a month , one person was ordered to stand by for breakdown whenever the machine was scheduled to run. Weekly production on the automatic machine is only slightly greater than previous weekly production on the hand-operated machine. Select the most correct statement. (Points : 4) It is very likely that Black can win on the basis of fraud.
If there is a false representatio n made to induce a sale, Black waited too long to pursue either a remedy for fraud or a remedy for breach of warranty.
The prediction as to future performance may not likely to be treated as fact and, therefore, will probably not sustain the charge of fraud.
How long White has worked on the machine to cure the defects or "bugs"? has no bearing on the outcome in this situation.
Question 8. 8. Identify the INCORRECT statement dealing with types of contracts: (Points : 4) A lump-sum contract. Advantage: Price is known when contract is made. Disadvantages: Diverse interests of contractor and owner, cost of changes, time and as cost of estimating.
Cost-plus-percentage contract. Advantages: Rapid start, flexibility. Disadvantage: Incentive for contractor to control cost.
Cost-plus-fixed-fee contract. Advantages: No incentive to increase costs to earn more fee , fairly rapid start (minimal estimate needed), rapid completion. Disadvantage: Cost of changes.
Combination unit-price and lump-sum contract. Advantage: Variation in quantity requirements automatically handled. Disadvantage: Time and cost of estimating.
None of the above
Question 9. 9. What danger is there in requiring a contractor to perform according to a particular method? There are at least two legal dangers in such dictatorial requirements. (Points : 4) If detailed method is required, a high probability exists that a court would see a master-servant relationship in existence rather than the owner-independent contractor relationship. The owner, then, becomes liable in much greater degree for the acts of the contractor.
By requiring a particular method, the owner may find that the contractor has no responsibility for the results of his/her performance. That is, if one follows the boss' orders as to method, then it is not his/her fault if the boss is displeased with the results.
Both of the above.
None of the above.
Question 10. 10. A person becomes a(n) __________ at the moment of taking possession of abandoned personal property. (Points : 3) bailor
bailee
constructive bailee
owner
Question 11. 11. __________ property means land and things embedded in the land. (Points : 3) Real
Personal
Intangible
Tangible
Question 12. 12. White, an electrical engineer, goes to work for the ABC Company to design automation circuitry. No patent agreement is required of him. Using company time and facilities (in part), he develops a new product and makes application for a patent on it. If he obtains a patent, what rights, if any, will the ABC Company have in the product? (Points : 4) Since the work was done partly on company time, using company facilities, ABC Company has at least shop rights available in the invention.
To claim exclusive assignment of the patent, the ABC Company must prove that part of White's job was to invent products for the company.
If the product is a reasonable extension of White's job, the company may be able to establish its right to be assigned the patent.
All of the above.
None of the above.
Question 13. 13. If White had signed an agreement to assign patent rights to the ABC Company but had developed the product at home, using only his own time and facilities. According to US Law , the ABC Company has the right to have the patent assigned to them based on the agreement to assign to them. (Points : 4) True
False
Question 14. 14. Identify the step not in the patenting application procedure from the applicant's point of view. (Points : 4) Locate a patent attorney or agent and contract for his/her services.
Research other patents for similar inventions.
Draw up application and specification. File application in patent office.
Continue revisions and resubmissions until patent is issued.
File legal documents with the court to block others from using your invention.
Question 15. 15. Black, an engineer, is injured while visiting the White Manufacturing Company. Black was splattered in the face with hot metal from a die-casting machine which he was observing at the time. What defense might be used in a tort claim? (Points : 4) The White Company should have used adequate precautions to prevent injury to visitors in general and, in particular, to him, and that his injury was the result of their negligence in not protecting him.
Voluntarily assumed a risk which he knew or should have known and that under the circumstances the nature of die casting machines is, in itself, a substantial warning of danger; that, therefore, should have taken reasonable precautions to prevent injury.
Protective equipment should have been supplied to him for use during his visit (if none was supplied) or, that which was supplied was inadequate to prevent injury.
Negligent in not warning of potential danger.
Question 16. 16. The Green Paper Company has responded to an invitation to set up a plant in a particular community. Several millions of dollars were spent for buildings and equipment. However, in the first few months of operation, numerous complaints have been lodged and injunctions requested. It is claimed that the odors peculiar to the industry have lowered local property values, and that the discharge of "black liquor"? and dyes in the local stream has eliminated fishing. The plant employs approximately 1,000 people. Identify the potential outcomes from court action. (Points : 4) Order the company to do all within its power to alleviate the annoyances, but would stop sh ort of issuing an injunction.
It might consider these annoyances a necessary component of the industrial system and dismiss the case.
Issuing an injunction.
All of the above.
None of the above.
Question 17. 17. Caveat emptor is an appropriate defense today (Points : 3) True
False
Question 18. 18. Only the parties to a sales contract could sue each other under the traditional concept of: (Points : 3) exclusivity of contract.
privity of contract.
privacy of contract.
priority of contract.
Question 19. 19. The White Company produces a combination tool for home use that may be converted to a lathe, drill press, grinder, and many other power tools. Gray bought one of these tools and was injured while using it as a lathe. The injury occurred because the lathe chuck loosened, and the piece on which Gray was working flew out of the chuck, striking him in the head. Gray was out of work for several weeks and has lost partial sight of his right eye. What would you as expert witness make a case? (Points : 4) As plaintiff's expert, you would want to look at whether the product was defective. Specifically, whether there were design and manufacturing defects, or hidden defects.
As the defendant's expert witness, you would want to investigate whether there were any product alterations, product misuse, and whether the product was state of the art and was in compliance with relevant industry standards.
Both a and b above.
Neither a or b above.
Question 20. 20. The Federal Register is a magazine-sized daily (except for weekends and holidays) publication of the U.S. Government Printing Office. It details the most recent activities of U.S. government agencies and is available on the internet. (Points : 3) True
False
Question 21. 21. Agency hearings are quite similar to a court trial but without the rigid, restrictive rules of evidence and procedure used in a trial. How are court trials different from agency hearings ? (Points : 3) Witnesses are sworn in.
Instead of concentrating on an event of the past, it looks to the present situation in some respect, with a view to making an improvement for the future.
The intent is to gather information, usually preliminary to rulemaking
All of the above
None of the above
Question 22. 22. Identify the correct statements:
I. The yellow-dog contract is actually a clause in a labor contract, according to which the employee agrees as a condition of his or her continued employment, not to become a union member. Violation by the employee could cause termination. A union inducing violation is inducing breach of contract. They are now unlawful.
II. A labor injunction was a temporary injunction used to protect an employer's property when strikes or other economic action were threatened. They are now unlawful in nearly all cases.
III. The closed shop is a shop in which new members of the work force must be union members before they can be hired. Making a new closed shop is unlawful, but those already in existence may be maintained. (Points : 4) I, II, and III are correct
I and II are correct but not III
I and III are correct but not II
II and III are correct but not I
Question 23. 23. Identify the correct statements:
I. Picketing is a form of passing information from one person to another and involves disrupting normal business activities ; as such, it has the protection of the first amendment to our constitution.
II. A strike is a concerted refusal to work in the usual manner by a group of employees. The strike may be lawful or unlawful, depending upon the status of the strikers, the objective(s) sought and the means employed by the strikers.
III. Wildcat strike is an unlawful consented refusal to work by a group of employees. Employees engaged in a wildcat strike may be lawfully terminated by the employer.
IV. Featherbedding is the unlawful practice of requiring employees to be retained and paid for work that is not done or not to be done. (Points : 4) I, III , and IV are correct
I and II, and IV are correct
II, III, and IV are correct
Only III and IV are correct
All the above
Question 24. 24. After a 30-day waiting period in an agency shop arrangement, an employee must either join the union or arrange to pay union dues even though the employee does not join. It is a n un lawful practice. Additionally, Collective bargaining is the business meeting between an employer and representatives of the employees in which attempts are made to reach agreements on union-management issues which affect employees. It is usually lawful. (Points : 3) True
False
Question 25. 25. Which of the following is not a defenses that was commonly used by employers before the employers' liability acts when sued by injured employees? (Points : 3) Assumption of risk.
Contributory negligence.
Comparative negligence.
Fellow servant defenses.
Question 26. 26. Hostile work environment sexual harassment: (Points : 4) Cannot be created by unwelcome sexual flirtation and propositions.
Cannot result in an injunction being granted against offensive conduct.
Occurs when a supervisor's conduct does not affect an employee's economic benefits, but causes anxiety and "poisons"? the work environment for the employee.
Can result in the court ordering the business to be sold, upon proper notice, at a publicly-held auction.
Explanation / Answer
QN 17-26:
True
privacy of contract.
Neither a or b above.
False
The intent is to gather information, usually preliminary to rulemaking
II and III are correct but not I
All the above
F
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