UMUC - The Undergraduate School Business and Professional Programs BMGT 380 - Final Exam – Fall 2017 GOOD LUCK!! Exam Instructions: Open book exam: may use textbook, class notes/lectures, class conferences (do not use the internet as many legal sources are inaccurate; you do not need any material other than the textbook, class notes/lectures, class conferences to complete the exam). No time limit on exam. Submit exam preferably in word doc to assignment folder under “Final Exam”. ALLOW EXTRA TIME TO POST PROPERLY. YOU ARE ENTIRELY RESPONSIBLE FOR CHECKING THAT EXAM POSTS PROPERLY AND that you posted the correct file. The exam is worth a total of 100 points. Section I. Multiple Choice: 30 questions/60 points USE THE ANSWER SHEET included at the bottom of this page for answers; copy and paste it as is, no changes, please. Please do not copy Multiple Choice questions to the answer sheet. Put letter of correct answer on the answer sheet at the bottom of this page. There is only one correct answer to each question. Each question is worth 2 points. This is an application-oriented exam; you will not find the answer to questions verbatim in the text.  If you believe a question is not covered in any of the assigned materials, you have missed the issue and need to re-think. 1. Farmer grows grain on his farm in Nebraska for feed for the chickens that he raises on that same farm. He later sells the chickens to meat packing companies within the state of Nebraska. The production of grain on the farm: A. Affects interstate commerce and, therefore, can be subject to federal regulation. B. Only indirectly affects interstate commerce and, therefore, can be subject to state, but not federal, regulation. C. Only indirectly affects interstate commerce, and thus is not subject to federal regulation under the commerce clause. D. Directly affects intrastate commerce, but more indirectly affects interstate commerce and, therefore, can be subject to federal regulation under the commerce clause. 2. Which of the following would typically take place in an appellate court? A. Direct examination of witnesses by attorneys. B. Choosing a jury. C. Testimony of witnesses. D. None of the above. 3. Larry, an Oregon resident, inherited land in Missouri. Through a Missouri attorney, Larry sold the land to Will, a Missouri resident, under a valid written sales contract. Larry later refused to go through with the sales deal, so Will sued Larry in a Missouri court. Larry claimed the Missouri court had no jurisdiction over him because has never been in Missouri or had any other contacts with Missouri. Assume that the Missouri court has subject matter jurisdiction in this case. Does the Missouri court otherwise have jurisdiction to hear this case? A. No, because there is diversity of citizenship in the case, only a federal court has jurisdiction to hear the case. B. Yes, because the Missouri court can claim in rem (property) jurisdiction over Larry in ...

1. UMUC - The Undergraduate School
Business and Professional Programs
BMGT 380 - Final Exam – Fall 2017
GOOD LUCK!!
Exam Instructions:
Open book exam: may use textbook, class notes/lectures, class
conferences (do not use the internet as many legal sources are
inaccurate; you do not need any material other than the
textbook, class notes/lectures, class conferences to complete the
exam).
No time limit on exam.
Submit exam preferably in word doc to assignment folder under
“Final Exam”. ALLOW EXTRA TIME TO POST PROPERLY.
YOU ARE ENTIRELY RESPONSIBLE FOR CHECKING THAT
EXAM POSTS PROPERLY AND that you posted the correct
file.
The exam is worth a total of 100 points.
Section I. Multiple Choice: 30 questions/60 points
USE THE ANSWER SHEET included at the bottom of this page
for answers; copy and paste it as is, no changes, please. Please
do not copy Multiple Choice questions to the answer sheet.
Put letter of correct answer on the answer sheet at the bottom of
this page. There is only one correct answer to each question.
Each question is worth 2 points.
This is an application-oriented exam; you will not find the
answer to questions verbatim in the text. If you believe a
question is not covered in any of the assigned materials, you
have missed the issue and need to re-think.
1. Farmer grows grain on his farm in Nebraska for feed for the
chickens that he raises on that same farm. He later sells the

2. chickens to meat packing companies within the state of
Nebraska. The production of grain on the farm:
A. Affects interstate commerce and, therefore, can be subject to
federal regulation.
B. Only indirectly affects interstate commerce and, therefore,
can be subject to state, but not federal, regulation.
C. Only indirectly affects interstate commerce, and thus is not
subject to federal regulation under the commerce clause.
D. Directly affects intrastate commerce, but more indirectly
affects interstate commerce and, therefore, can be subject to
federal regulation under the commerce clause.
2. Which of the following would typically take place in an
appellate court?
A. Direct examination of witnesses by attorneys.
B. Choosing a jury.
C. Testimony of witnesses.
D. None of the above.
3. Larry, an Oregon resident, inherited land in Missouri.
Through a Missouri attorney, Larry sold the land to Will, a
Missouri resident, under a valid written sales contract. Larry
later refused to go through with the sales deal, so Will sued
Larry in a Missouri court.
Larry claimed the Missouri court had no jurisdiction over him
because has never been in Missouri or had any other contacts
with Missouri. Assume that the Missouri court has subject
matter jurisdiction in this case. Does the Missouri court
otherwise have jurisdiction to hear this case?
A. No, because there is diversity of citizenship in the case,
only a federal court has jurisdiction to hear the case.
B. Yes, because the Missouri court can claim in rem (property)
jurisdiction over Larry in this case as the owner/seller of the

3. Missouri property.
C. Yes, because the Statute of Frauds applies to the sale of
land, and the contract was written, the Missouri court has
personal jurisdiction over Will, and Larry.
D. No, because although the Missouri court has property
jurisdiction over Will, the court does not have the necessary
property jurisdiction over Larry in this case.
4. Jonah hired Marty, who is 16 years old, as his agent to buy
up to a maximum of 50 used Dell 101 model laptops at a price
of $200 each, or less. Marty bought 40 used Dell 101 model
laptops for $100-200 using a written contract. Jonah was
pleased with the laptops and accepted the contract and paid for
the 20 laptops.
Marty then bought 25 more Dell 101 model laptops for $150
each on Jonah’s behalf. Marty signed a written contract for the
purchase of these 25 laptops with the seller, Used Tech, Inc.
Jonah refused to accept and pay for these 25 laptops. What
reason would justify Jonah’s refusal to pay for the laptops and
honor the contract with Used Tech, Inc.?
A. The contract with Used Tech is illegal because Marty is a
minor.
B. There is no justification, the contract with Used Tech is valid
because Marty signed a contract with Used Tech for the
purchase of the 25 laptops.
C. The contract with Used Tech for the 25 laptops is voidable
because Marty acted outside the scope of the agency agreement
with Jonah.
D. This contract is voidable under the UCC because Marty is
not a merchant.
5. Mimi took her granddaughter to Roller Coaster World theme
park often to ride the Thriller Diller roller coaster. The roller
coaster is in a fenced, gated area. Customers pay for the ride as
they board the Thriller Diller, or at the end of the ride as they
leaved the gated area.
On Saturday, Mimi and her granddaughter boarded the Thriller

4. Diller, and waved at the attendant as the ride began. At the end
of the ride, Mimi refused to pay for the ride.
The most likely conclusion is that:
A. Mimi’s actions implied that she intended to pay for the ride;
she is legally bound to pay for the ride.
B. Mimi’s actions implied that she intended to pay for the ride,
but she is not legally bound to pay as there was no written
agreement, or evidence of an agreement, such as a ticket for the
ride.
C. Applying the subjective intent test, Mimi is not bound to pay
for the ride because she and the attendant did not discuss the
need for paying for a ticket for the ride.
D. Applying the objective test, there was no clearly
communicated offer and acceptance, thus no enforceable
contract; Mimi is not bound to pay for the ride.
6. Sandy orally agreed to sell Rolf her house for $400,000.00.
Rolf gave Sandy a check for $10,000.00 as deposit on the house.
They agreed to complete the sale on a specific day in 3 weeks
when Rolf would pay Sandy the remaining $390,000.00 and
Sandy would give the deed for the house to Rolf.
2 weeks later Sandy went to Rolf’s home, returned his
$10,000.00 check, and told Rolf she had changed her mind
about selling her house.
Rolf believes they had a binding sales contract and that Sandy
must sell him the house because he gave Sandy a deposit for the
purchase of the house. Sandy believes she and Rolf did not
have a binding contract.
What would you conclude about the agreement between Sandy
and Rolf?
A. Sandy and Rolf had a binding contract; both agreed to the
sale and oral contracts can be enforceable.
B. Sandy and Rolf had a binding contract because Rolf gave
consideration for the contract by giving Sandy the $10,000.00
deposit.
C. Sandy and Rolf did not have a binding contract as the
contract had not been fully performed.

5. D. Sandy and Rolf did not have a binding contract; the contract
needed to be written to be enforceable under the circumstances.
7. Edgar, an independent contractor, was hired by ABC
Enterprises, Inc. (ABC) as a consultant to assist ABC in
implementing a new IT system. Edgar agreed to provide
consulting advice to ABC 10 hours per week for 6 weeks. In
exchange, ABC agreed to pay Edgar $2500 per week, payable in
a lump sum of $15,000 at the end of 6 weeks. Edgar and ABC
had a valid written contract including these terms.
After 4 weeks of consulting, Edgar told ABC he needed an
additional $500 per week for the remaining 2 weeks to cover
expenses. Edgar said ABC needed to pay him a total of $16,000
for the 6 weeks of consulting. ABC orally agreed to amend the
contract and pay the additional money.
At the end of 6 weeks, ABC was very satisfied with Edgar’s
consulting work. ABC gave Edgar a check for $15,000 for the
consulting but refused to pay the additional $1000 Edgar had
requested.
Edgar claims he and ABC had a valid contract to pay him an
extra $1000, for a total of $16,000.
What is true about the modified agreement, and the amount
owed to Edgar?
A. The modified agreement is enforceable because both parties
gave legal consideration for the new contract terms: ABC
agreed to pay an extra $1000, Edgar agreed to continue to
consult for ABC.
B. The modified agreement is enforceable because, under the
UCC rules, all contract modifications are valid if the parties
consent.
C. The modified agreement is unenforceable; ABC and Edgar
agreed orally to the extra $1000, but there was no written
contract covering the new contract terms.
D. The modified agreement is unenforceable because both
parties did not give new consideration for the contract
modification contract.

6. 8. Alternative dispute resolution (ADR) is an important
alternative for resolving civil disputes because ADR can:
A. Promote judicial efficiency.
B. Promote compromise and consensus between parties.
C. Promote quicker resolutions to disputes.
D. All of the above.
E. Two of the above only.
9. Park Pharmaceuticals, Inc. manufactured a headache pain
relief drug that was marketed under the trade name, Free. A
study by the federal Food and Drug Administration (FDA)
revealed that Free is likely to cause high blood pressure in
users. Consequently, the U.S. Congress enacted legislation
prohibiting the shipment and sale of Free in the U.S., pending
further testing by Park and the FDA. This law banning Free is
probably:
A. Constitutional because the U.S. Congress has the power to
regulate activity that directly affects interstate commerce and
the ban on the sale of Free is clearly an effort to regulate
commerce of pharmaceuticals.
B. Constitutional under the police power doctrine to protect
consumers.
C. Unconstitutional because the law violates Park’s rights
under the equal protection clause of the U.S. Constitution
because the law treats Park differently than other
pharmaceutical companies.
D. Unconstitutional because there is no conclusive evidence
that Free is unsafe for consumers.
10. Wendell and Langdon signed a business contract with a
clause that provides that if a dispute arises they will submit to

7. binding arbitration to resolve the dispute. After they had been
doing business together for a year, a dispute arose under the
terms of the contract. Rather than submit to arbitration,
Wendell filed a lawsuit against Langdon. Most likely the court
will:
A. Hear the lawsuit in a trial, and then compel Wendell to
submit to arbitration, if appropriate under the circumstances.
B. Hear the lawsuit because Wendell cannot be compelled to
submit to arbitration as that would be a violation of his
constitutional rights; he is entitled to a jury trial upon request.
C. Require Wendell to submit to arbitration to resolve the
dispute.
D. Require Wendell and Langdon to enter into mediation to
reach an agreement.
11. An increasing number of food trucks operate in the city
center of Washington near tourist attractions and government
offices. Sometimes the food trucks park on the sidewalks,
curbside in the streets, and in parking spaces and tourist bus
routes, thus, impeding pedestrians and interfering with vehicle
traffic. The city enacted an ordinance that permits food trucks
to operate only in designated, marked areas off sidewalks and
off streets within the city.
Several food truck owners are upset and believe the ordinance is
an unconstitutional interference with their rights to operate
private businesses. They also believe the ordinance
discriminates against them because brick and mortar businesses
in the area do not have similar restrictions.
Which of the following statements is true about the ordinance?
A. The ordinance unduly discriminates against the food truck
vendors as other businesses in the area are not similarly
restricted.

8. B. The ordinance is a violation of the food truck vendors’
constitutional rights to operate their private businesses without
undue interference from the government.
C. The city can justify the ordinance as a constitutional exercise
of the right of governments to regulate private businesses for
any reason under the interstate commerce clause.
D. The city can justify the ordinance as a constitutional exercise
of its police power to protect the safety and welfare of the
general public.
12. Computers, Inc. (Computers) and Management Enterprises
Company (Management) agreed that Computers would sell
Management its computing business, including the land on
which the business was situated, for $600,000. Both Computers
and Management knew at the time the contract was formed that
the business and land were actually worth $1,000,000. Is this a
valid enforceable sales contract?
A. No, because Computers would not have agreed to sell the
business for 40% less than its value unless it was under duress
by Management to sell.
B. No, because $600,000 is not valid consideration for a
business worth $1,000,000.
C. Yes, provided the contract was in accordance with state
statutory law that permits real estate sales for 40% or more
below market value.
D. Yes, provided the contract was in writing, in accordance with
the Statute of Frauds, and the parties freely consented.
13. Fay was admitted as a new partner in Charmed City
Chocolates, a general partnership, in May 2017. In June, while
delivering a chocolate order to a residence, Charmed City’s
delivery employee negligently crashed into the rear of a parked

9. car destroying a bicycle mounted on the back of the car and
damaging the rear of the car.
Which of the following is true about liability for the employee’s
negligence?
A. Charmed City is not liable for the accident as it was the
result of the employee’s negligence.
B. Charmed City is liable for the accident, but Fay is not liable
as she was admitted to the partnership only 1 month prior to the
accident.
C. The delivery driver is an employee-agent of Charmed City,
and Charmed City is liable for the acts of its employees.
D. The delivery driver is an employee-agent of Charmed City,
but Charmed City is not liable for the negligent acts of its
employees.
14. Accounting Temps, Inc. (Temps) has 50 employees who
work in offices on two floors of Temps’ business office
building. There are no elevators in the building. Taylor, a
Temps employee for three years, has an office on the second
floor. Following a fall, Taylor has a permanent leg injury and
difficulty walking up and down stairs. Taylor requested to be
moved to a first floor office, but Temps stated there is no space
available on the first floor and that it would be unfair to move
someone else from a first floor office because all employees on
the first floor have seniority over Taylor. Temps promised to
move Taylor when a first floor office becomes available. In the
meantime, Temps offered to have another employee help Taylor
up and down the stairs to the second floor daily.
Is Temps handling the situation properly?
A. Yes, Temps is required to make reasonable accommodation
for Taylor, and has done so by promising to move Taylor to a
first floor office as soon as possible, and by offering to help
Taylor on the stairs daily.
B. Yes, Temps is required to make “reasonable accommodation”
for Taylor, but not at the inconvenience of other employees who
might have to move offices.

10. C. No, Temps should immediately move Taylor to a first floor
office or find temporary first floor office space until permanent
office space is available on the first floor.
D. No, Temps should install an elevator to the second floor if
first floor office space is available.
15. Jan went to a truck dealership and said that she wanted to
buy a truck capable of hauling a 5000-pound load, and that she
wanted the salesperson to recommend an appropriate truck. The
salesperson selected a certain truck for Jan that he stated would
haul a 5000-pound load. Jan bought the truck the salesperson
selected. The truck was mechanically sound, but would haul
only a 2500-pound load. If Jan sues the dealership, which
product liability claim would provide Jan with the best chance
of winning?
A. Breach of implied warranty of fitness for a particular
purpose.
B. Breach of contract.
C. Breach of implied warranty of merchantability.
D. Negligence, because the truck that could not handle a 5000-
pound load.
E. All of the above.
16. Uncle promised to buy his nephew, Dave, a new truck to
use in his business. Counting on having a new truck, Dave sold
his old truck. Uncle now refuses to buy Dave the truck. Dave
needs the truck to operate his business and to get to his business
office.
Can Dave possibly enforce the promise and require Uncle to buy
the truck for him?
A. Yes, because the truck is a necessity for Dave and all
contracts for necessities are binding and enforceable for all

11. parties even if contract formation is flawed.
B. Yes, under promissory estoppel if Dave reasonably relied on
Uncle’s promise and sold his truck.
C. No, because Dave was not unjustly enriched because he did
not receive the truck.
D. No, because Uncle’s promise to Dave was a gift to Dave;
Dave gave consideration, but Uncle did not.
17. Assume you are the owner of a small business, Greetings,
Inc., that sells greeting cards to retailers. Card Sensations sent
a written offer to you to buy 1,000 birthday cards for $0.60 each
for a total of $600. You can accept the Card Sensations offer
by:
A. Sending written notice to Card Sensations promising to ship
the cards.
B. Not communicating further with Card Sensations, but by
promptly shipping the cards.
C. Accepting the offer by writing, “Greetings, Inc. accepts your
offer to buy 1000 birthday cards for $0.60” and sending the
written acceptance to Card Sensations.
D. All of the above could be valid acceptance.
18. Carl parked his car on a steep hill, leaving the car in
neutral and failing to engage the emergency parking brake. The
car rolled down the hill and crashed into the garage door of
Chase’s house, damaging the door beyond repair.
Can Chase recover damages from Carl for the damage to his
garage door?
A. Yes, because Carl was negligent in parking the car.
B. Yes, if Carl is the owner of the car because he left the car
unattended and is responsible for any damage caused by the car.
C. No, because it is not essential to engage the emergency

12. parking brake to safely park a car.
D. No, because the car’s rolling down the hill was
unforeseeable.
19. Zoe operates Wood Rail Center Sports, an athletic
equipment shop, as a sole proprietorship. She is concerned
about her tax liability, and wondering whether to continue as a
sole proprietorship or to reorganize under another business
structure. Which of the following would be the best advice for
Zoe?
A. Zoe should remain a sole proprietorship; she would have the
same tax liability if she reorganizes as a LLC.
B. Zoe should remain a sole proprietorship; there are no
business taxes on sole proprietorships.
C. Zoe should consider reorganizing as a LLC to reduce her tax
liability.
D. Zoe should consider reorganizing as a corporation to avoid
personal tax liability on business income.
20. Linda was a guest in the Mardell Hotel. While walking
across the hotel lobby, Linda slipped and fell on the wet floor
and broke her leg. Linda required surgery to repair the broken
leg.
Just prior to Linda’s fall, the hotel floor had been washed by the
maintenance staff. The staff had placed a “wet floor” sign on
the lobby floor. Linda now wants to collect damages to
compensate her for medical expenses for her broken leg.
Is it likely Linda can collect compensatory damages to cover
her medical expenses?
A. No, there was a sign posted warning about the wet floor;
Linda assumed the risk by walking across the wet floor.
B. No, it is reasonable the hotel staff would need to clean the
floor and after posting a warning sign, it is not foreseeable that
people would walk on the wet floor and fall.
C. Yes, the hotel had a duty to protect guests from known harm
on the premises of the hotel.

13. D. Yes, unless the warning sign was large and conspicuous.
21. Eagle, Inc. sells motor vehicle parts to dealers. In
response to a dealer’s order, Eagle shipped a crate with a label
that read, “Crate contains one 150-horsepower diesel engine.”
This statement is:
A. An express warranty.
B. An implied warranty of merchantability.
C. An implied warranty of fitness for a particular purpose.
D. None of the above.
22. In December 2016, Charlotte became the 25th partner with
International Enterprises, an existing general partnership with
24 partners. In April 2017, an International Enterprises
partnership debt came due in full in the amount of $100,000.
The debt was originally incurred in June 2016. Charlotte is:
A. Only liable for the debt up to the amount of her capital
contribution to the partnership. B. Not liable for the debt
because the debt was incurred prior to her joining the
partnership.
C. Liable for her pro-rata one-twenty fifth share of the total
debt along with the other partners.
D. Liable for one-twenty fifth of the debt if all the other
partners default on the debt ad refuse to pay.
23. A orally offered to sell B 100 electric toothbrushes, but
neglected to state the price. B accepted the offer via email and
requested delivery within 2 weeks. A received the acceptance
email, but immediately thereafter, A tried to get out of the deal.
Assume that A and B are both merchants, as defined under the
UCC, and have engaged in sales contracts together previously.
At this point which of the following is most likely to be true
about this agreement between A and B?

14. A. There is no valid contract because the offer is too indefinite.
B. There is no valid contract because any offer for the sale of
goods must be in writing and signed by both parties.
C. There is a valid, enforceable contract.
D. There is a valid, enforceable contract only if either A or B
are engaged in international business which makes the
agreement subject to CISG (Contract for International Sale of
Goods) rules.
24. Someone who recovers damages for breach of contract
typically can recover:
A. Only those compensatory damages/losses that can be proven
with reasonable certainty.
B. For all consequences of the breach, e.g., pain and suffering,
whether or not the damages are foreseeable.
C. Only for foreseeable damages.
D. Punitive damages.
25. Cable Corp. contracted online to buy several TV movies
from Movies, Inc. Both parties signed the contract with
electronic signatures. This contract is probably:
A. Valid and enforceable.
B. Valid and enforceable only if the UCC rules apply to the
agreement.
C. Unenforceable under UCITA because electronic signatures
are not valid in 2017.
D. Unenforceable because it was not a click-on contract.
26. A computer Dealer whose place of business is in Atlanta

15. contracts on August 12 to sell 100 personal computers to a
Retailer whose place of business is in Chicago. The contract
does not mention anything about the time or place of delivery.
What are the delivery requirements for this contract?
A. At the Retailer’s place of business within a reasonable time
from August 12.
B. At a convenient place so long as the Dealer notifies Retailer
of the place and time of delivery.
C. At a reasonable place on August 12.
D. There is no obligation for the computer dealer to deliver the
computers as this is not a valid enforceable contract because
the terms are too vague.
27. Johnston Paints contracted in writing with Buyer to deliver
100 one-gallon cans of exterior house paint to Buyer on or
before September 15. On August 15, Johnston informed Buyer
via email that it will be unable to deliver the paint as agreed.
Buyer demanded that Johnston perform the contract, but
Johnston still refused and stated the refusal in a letter to Buyer.
Which of the following best describes Buyer’s rights in this
situation?
A. Buyer must treat the contract as breached on August 15.
B. Buyer must wait until September 15 to determine with
certainty if there has been a breach before entering into another
contract to purchase paint.
C. Buyer may treat the contract as breached on August 15 and
enter into a contract with another paint supplier.
D. None of the above are correct; Buyer must file a lawsuit
against Johnston so that court may determine if a breach of
contract has occurred.

16. 28. Which of the following statements by a salesperson would
create an express warranty for a buyer?
A. “This refrigerator is a great value; you will not find a better
deal.”
B. “This is the best TV we sell; I plan to buy one myself.”
C. “This car is the most reliable and safest vehicle on the road
today.”
D. “This truck had the engine replaced last year.”
29. Charles received an offer from Seller that stated: "I will
sell you my car for $8,500. You have 10 days to accept." On
day 4, Charles called Seller and stated he would pay $8,000 for
the car; Seller refused to accept $8,000. Which of the following
is true?
A. There is no contract; Seller is free to sell the car to another
buyer.
B. Charles has 6 more days to consider Seller’s offer to buy the
car for $8,500; Seller cannot sell the car to another buyer for 6
days.
C. If Seller changes her mind within 6 days, she can make
Charles buy the car for $8,000.
D. If Charles later tells Seller by day 10 that he will buy the
car for $8,500, a contract is automatically formed.
30. Buyer and Seller orally agree to a contract for the sale of
400 shirts at $10 per shirt. Seller fails to perform and deliver
the shirts; Buyer sues. This contract is:
A. Enforceable because the Statute of Frauds does not ever

17. apply to sales of shirts.
B. Unenforceable unless both parties are merchants.
C. Unenforceable because the contract is not in writing.
D. Enforceable; the Statute of Frauds is applicable to this
agreement but oral contracts are binding if both parties are
merchants.
Scroll down, please, to begin the essay portion of the exam.
Section II. Essay: 4 questions/40 points/10 points per question
Use the answer sheet at the end of the exam. Number each
answer. Please do not recopy questions.
Answer each question in complete paragraphs; do not list or
answer in phrases. None of these questions can be
adequately/comprehensively answered in a single paragraph; it
is important to be comprehensive, specific, and detailed in your
answers.
Full points will be earned for answers that are accurate, well
supported, sufficiently comprehensive, and appropriately cited.
Use APA in text citations and References, as appropriate but
please do not use direct quotes. Use only classroom
notes/comments and assigned reading or video materials as
resources - this is all you need to complete the exam.
Please DO NOT use any outside, internet resources as they are
often inaccurate.
_____________________________________________________
______________
1. 10 pts
Joan and Ron bought and paid for six dining room chairs from
Hills Interiors (Hills). Joan and Ron drove their car to the Hills

18. warehouse loading dock behind the store to load the chairs into
their car. The loading dock attendant was helping another
customer load furniture when Joan and Ron arrived at the dock.
Joan and Ron waited about ten minutes, then told the dock
attendant they would load the chairs themselves. The six chairs
were sitting on the dock in plain sight so the attendant agreed.
As soon as he was free, the attendant quickly came to help Joan
and Ron load the last of the six chairs into their car.
When Joan and Ron unloaded the chairs at their home, the leg
on one of the chairs was broken in transit. Joan and Ron
returned to Hills with the damaged chair and requested that
Hills replace it. They admitted the chair was not damaged when
it was sitting on the dock before being loaded into their car.
They further claimed that because the dock attendant was
unavailable to load the chairs when they arrived at the dock,
Hills should be responsible for the damaged chair. Joan and
Ron stated they were not professional furniture handlers and
should not have had to load the chairs themselves or be
responsible for any damage.
Should Hills legally be responsible for the damage to the chair?
Why or why not?
If you were the Hills warehouse manager, how would you
handle this situation, and what would be your legal
justification?
2. 10 pts
McAdams Company, a TV manufacturer and supplier in
Minnesota, received an email offer from Discount TVs, a
retailer in New York, stating:
“Please send 300 flat screen 32” Smart TVs manufactured by
McAdams, to Discount TVs. Deliver to Discount TVs, 1100
Main St, Bluffton, New York by August 1, 2017. E. Smith for
Discount TVs.”
McAdams replied by email:

19. “We accept your purchase offer and will send 300 TVs to your
place of business in Bluffton, New York promptly. L. Martinez
for McAdams Company.”
McAdams shipped 300 flat screen 36” Smart TVs at a price of
$150 each to Discount TVs on August 28.
Upon receipt of the 36” TVs, Discount TVs emailed McAdams
Company, stating:
“We ordered 32” TVs and received 36” TVs. We cannot use
36” TVs. Your order is incorrect.”
At this point, what options does Discount TVs have? What
options does McAdams Company have?
3. 10 pts
Marty entered a cross country skiing marathon, sponsored by
Stowe Hills Resort (Resort). Resort advertised the marathon as
being a 10-mile ski course on cleared, groomed trails through a
wooded area. During the marathon, Marty fell when he skied
over a relatively small tree limb on the trail and broke his leg.
Resort claimed the tree limb was not on the trail when the
marathon began and that it could not be responsible for
something blowing onto the trail after the marathon began.
Is Resort be legally responsible to compensate Marty for his
injury? Why or why not?
4. 10 pts
Sally bought a new SUV from a dealer, Machens, Inc. The SUV
was manufactured by International Motors (IM). Sally drove
her SUV without problems for 3 months. Shortly thereafter,
while driving 60 mph (10 miles below the maximum speed
limit) on the highway, the engine suddenly caught fire causing
Sally to crash into the guard rail on the side of the highway and
crash into a ditch. The car was a total loss, and Sally sustained

20. a broken leg and second degree burns on both arms.
Sally wants to sue for her injuries.
A. What area of law is applicable to Sally’s legal claim and
why/how is this area of law applicable?
B. What possible legal claims can Sally sue for to recover
damages for her physical injuries and the loss of her car? Why?
C. What party(ies) can Sally sue and why?
Scroll down for Answer Sheet
ANSWER SHEET: BMGT 380 Fall 2017
Name: ___________________________________
Post this answer sheet in the assignment folder in the Final
Exam tab, please.
Put letter only of correct answer by each number in CAPS. DO
NOT recopy questions; do not copy the answer, use only the
letter of the correct answer.
There is only one correct answer to each question.
Multiple Choice:
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ESSAY: Write your answer by each essay question number.
USE AS MUCH SPACE AS NEEDED FOR YOUR ANSWER by
expanding the answer space; answers will be longer than the
space below.
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End of Exam !!!! Thank you for following instructions.