TRUE/FALSE
___1. An agency relationship is not a fiduciary relationship.
___2. If a contract involves a sale of goods over $500 and services, the primary purpose of the contract (is it predominantly a sale of goods, or predominantly a provision of services?), as established in court, will determine whether the contract was required to be in writing to be enforceable (subject to any applicable exception).
___3. Smith agrees to construct a building addition for Jones that is to match the roofline of the existing building, so that there will be a seamless flow from the original building to the addition. Jones discovers after the construction is complete, and winter has set in, that there are icing problems, because the addition does not match the roofline--it is several inches off. A court would likely hold that Smith's failure to align the roofline would discharge Jones from any obligation to pay Smith the last construction payment due.
___4. Washington allows a lawsuit to be brought for wrongful discharge from (or termination of) employment, as an exception to the “terminable at will” employment doctrine, if there is some violation of public policy, but the plaintiff must be able to establish that there is a public policy that has been violated.
___5. Jason, a choreographer, agrees that he will choreograph a dance for Laura, if Laura gets past the first level of eliminations in a television dance show's auditions. Laura does not get past the first level of eliminations. Jason is discharged from the obligation to choreograph the dance.
___6. Corporate directors and officers have fiduciary duties to the corporation, based upon the position of trust and loyalty held by them, requiring them to put the corporation first, and not "self-deal.”
___7. A competitor has standing to sue, and a viable claim, on the ground that it has been "injured in his business or property by reason of a violation" of the Racketeer Influenced and Corrupt Organizations Act (RICO), when the competitor claims to have lost a competitive advantage because of mail or wire fraud.
___8. The owners of a corporation are the board of directors.
___9. Washington's Consumer Protection Act can be used to enforce its Landlord-Tenant Act provisions.
___10. In awarding a remedy for a breach of contract involving the sale of goods, a court will typically award the non-breaching party the difference between the contract price and the market price of the goods, as compensatory damages (plus any incidental expenses).
___11. In a contract involving the sale of land, an award of money damages is always the most appropriate remedy to seek when the seller has breached the agreement.
___12. Punitive damages are usually awarded in breach of contract actions.
___13. Briana makes an offer to sell purses to Charlotte, and Charlotte accepts, but adds some slight modifications. Briana and Charlotte are both merchants. Briana and Charlotte do not have a contract, because the "mirror image" rule applies to contracts for the sale of goods.
___14. While a tenant has an expectation of privacy under the Landlord-Tenant Act, a landlord is given the right under the Act to enter the tenant’s premises, upon giving the required notice, to inspect the premises, make necessary or agreed repairs, alterations, or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.
___15. Washington's Consumer Protection Act requires, among other things, proof of the defendant's unfair or deceptive act or practice.
___16. One advantage of the sole proprietorship is that the owner's losses are limited to the amount he or she has invested into the enterprise.
___17. In Washington, a non-professional bailee might be able to limit liability to the property owner for loss of the goods that are the subject of the bailment (e.g., an automobile).
___18. The theory of “piercing the corporate veil” is used to determine if an individual with a relationship (e.g., agent/owner/manager) to a business organization (e.g., corporation or LLC) should be held personally liable to others for injuries caused to them.
___19. Under the UCC, a merchant who sells one type of good will be considered a merchant for any other type of good that he or she may sell outside of his or her business.
___20. An agent with express authority from a principal to sell real property at a non-judicial foreclosure sale for a stated minimum amount will still bind the principal to a sale of that real property for a lower amount, if the agent mistakenly opened the bids for sale of the property at that lower amount, and the buyer could have reasonably relied upon the agent’s apparent authority to sell the property for the lower amount.
___21. In the UCC, “revocation of acceptance” is the equivalent of the common-law equitable remedy of rescission.
___22. In order for a court to confirm that two “partners” have truly formed a partnership through their written agreement to acquire real estate, the partners must prove that they are actively carrying on a business; mere passive ownership of property is not enough to establish the existence of a legal partnership.
___23. Reformation as a contract remedy is available for court order when fraud or mutual mistake (for example, a clerical error, or a mistake in the legal description of real property) is present.
___24. The court, if granting a remedy of rescission, would likely also order restitution.
___25. The Major League Baseball Stadium Public Facilities District’s lawsuit against a contractor for Safeco Field construction defects was held by the Supreme Court to be exempt from the six-year statute of “repose” (limitations) provided in RCW 4.16.310, because the Supreme Court found that the stadium construction was “for the benefit of the state.”