Gail hires Harry to design an office building. Dissatisfied with the look of the building, Gail sues Harry for negligence. Harry can successfully defend against the suit by showing that he
a. designed the building as attractively as any ordinary person could.
b. designed the building as attractively as Gail could.
c. did not injure Gail.
d. does not know much about art.
Answer: C
Business Law
- McCoo buys eNet, a company that provides Internet access, and takes out property insurance with InsCo to cover a loss of the equipment. Two years later, McCoo sells eNet. Six months after the sale, eNet's equipment is stolen. Under InsCo's policy, McCoo can recover
- Techniqua Corporation makes computers. To insure its products to cover injuries to consumers if the products prove defective, Techniqua should buy
- Biz investo, Inc., has property insurnace with Coverall Insurance, Inc. Biz Investo suffers a loss in a burglary, but the parties cannot agree on the amount of recovery. Under an appraisal and arbitration clause
- Espresso Company has insurance policies with General Insurance, Inc., and InsurCorpo covering the risk of loss of Espresso's building in a fire. Each policy has a multiple insurance clause. If the building is partially destroyed in a fire, Espresso can collect from each insurer
- Deb takes out a fire insurance policy with Eagle Insurance Company on her $200,000 warehouse. The policy contains a coinsurance with a specified percentage of 80 percent. Deb insurances the property for $160,000. In a fire, she suffers a $100,000 loss. She can recover
- Pam states, on her application to Quality Insurance, Inc. for a life insurance policy, that she has not been hospitalized briefly. One year later, Pam dies from a cause unrelated to the earlier hospitalization. Quality denies payment. If Pam's beneficiary sues Quality, the beneficiary will
- Tom buys a house and obtains from Union Insurance Company a fire insurance policy on the property. If fire destroys the house, to collect payment under the policy, Tom's insurable interest
- Kirby is an executive with DigiCom, Inc. Because his death would cause a financial loss to the firm, it insures his life. Later, he resigns to work for a competitor, E-Tech Corporation. Six months later, Kirby dies. Regarding payment for the loss, DigiCom can
- Ollie applied to ProRata Insurance Company for a fire insurance policy for his warehouse. To obtain a lower premium, he misrepresents the age of the property. The policy is granted. After the ware is destroyed by fire, ProRata learns the true facts. ProRata can
- Satellite Communications, Inc., takes out an insurance policy on its plant with United Insurance, Inc. United could cancel the policy
- Elman is an officer for Fizzy Frothy Confections Concession Corporation. When acting for Fizzy in ordinary business situations, Elman is
- Myra gives Noel the impression that Opal is Myra's agent, when in fact she is not. Noel deals with Opal as Myra's agent. Regarding any agency relationship, Myra
- Estimable Finance Company hires Flotilda, who holds herself out as possessing special accounting skills, to act as its agent. As an agent, Flotilda must use the degree of skill or care expected of
- Gifford, a salesperson at Hubris Electronics store, tells Irma, a customer, "Buy your home theatre system here, and I'll set it up for less than what Hubris would charge." Irma buys the system, Gifford sets it up, and Irma pays Gifford, who keeps the money. Gifford has breached the duty of
- Sympatico Symphonic Instruments, Inc., and Rudy wish to enter into an agency relationship for the purpose of buying musical instruments for Sympatico's inventory. This relationship requires
- Campbell is a salesperson for DownRiver Enterprises, Inc. In detemining whether Campbell is DownRiver's employee or an independent contractor, the most important factor is
- Stetson asks Toni, a real estate broker, to sell his land. Toni learns that Rancho Grande LLC is willing to pay a high price for the land. Instead, however, Stetson sells the land to United Cattle Corporation. Toni sues Stetson. Toni will
- Doug agrees to act as an agent for Carpet & More Corporation (CMC) on a commission basis. The agreement does not call for Doug to pay expenses out of his commission. CMC is required to
- NY Cupcakes, Inc. (NYC), tells Milena, whose business is purchasing for others, to select and buy $2,000 worth of fresh fruit as directed, keeping an account for the expense in NYC's name. NYC and Milena
- Seaway shipbuilders, Inc., hires Rowena and Querida as employees to deal with third-party purchasers and suppliers. Rowena and Queria are
- Shirley borrows $100,000 from Ridgetop Credit Union to buy a home, which secures the loan. Three years into the term, she stops making payments on it. Ridgetop repossesses and auctions off the property to Toby. The sale proceeds are not enough to cover the unpaid amount of the loan. In most states, Ridgetop can ask a court for
- Duke borrows $150,000 from Community Bank to buy a home. If he fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. This is
- Upstate Bank has made mortgage loans to consumer that qualify for the Home Affordable Modification Program (HAMP), which offers incentives to lenders to change the terms of certain loans. The purpose of HAMP is to
- Bayside Credit Corporation makes mortgage loans to consumers secured by their principal homes. For a Bayside loan to qualify as a Higher-Priced Mortgage Loan (HPML), its annual percentage rate must exceed, by a certain amount,
- Dylan borrows $150,000 from Countywide Credit Union to buy a home. By recording the mortgage, Countywide protects its