Question

QUESTION 1- If a customer slips and falls on the ice in a store’s parking lot, the store may be liable for the tort of:

	negligence
	nuisance
	aggravated assault
	trespass
	assault

question 2-  

Which of the following might prove that a contract was freely entered into by the parties?

	evidence there has only been presumed pressure but not actual pressure
	evidence that the terms of the contracts are fair
	evidence the weaker party received independent legal advice
	evidence the contract was signed in the presence of a witness

Question 3-

Ruby Fashions Ltd. terminated its long-term agency relationship with the Fashion Forward Agency. Fashion Forward had negotiated purchase contracts with retail outlets on behalf of Ruby for several years. What advice would you give Ruby at this time?

	that Fashion Forward can no longer bind Garnett to contracts
	that Fashion Forward has the onus to inform outsiders that it is no longer Ruby’s agent
	that outsiders have an obligation to prove whether or not there is an ongoing agency relationship between Ruby and Fashion Forward
	that Ruby has the onus to inform outsiders that Fashion Forward is no longer its agent

Question 4-

Jasmine is the sole shareholder of FashionPlusYou Inc., which is planning to borrow $100 000 from the bank to finance a second store location. What is Jasmine’s legal position should FashionPlusYou Inc. default on the loan?

	She and the corporation are jointly and severally liable for the debt.
	She and the corporation are not jointly liable for the debt.
	She can be personally sued by the bank but only if FashionPlusYou Inc. Defaults on the loan.
	She has no personal liability with respect to the debt.

course- business law

Answer 1

1. Negligence

According to the Tort Law, there are three types of liabilities, negligence, product liability, and intentional torts. In this case, there was a personal injury to the customer which rules out product liability. Also, intentional torts are planned against a person, which can't happen by falling in an ice-filled parking lot.

2. Evidence that the terms of the contract are fair

Courts consider several factors when determining if pressure is being exerted by one party on another. These include:

• The timeframe for contract performance to be completed by each party.
• The bargaining power each party had when the agreement was made.
• The mental state of each party at the time of the agreement.
• Whether each party believed that the agreement was fair when created.
• If there were reasonable alternatives made when the agreement was created for contract modifications.
• Whether legal remedies were a reasonable solution to contract problems.

3. that Ruby has the onus to inform outsiders that Fashion Forward is no longer its agent

After the contract is terminated, Fashion Forward is no longer bound to honor the negotiations it did for purchase contracts with retail outlets on behalf of Ruby. Similarly, Ruby is also not bound to honor any purchase contracts the retail outlets entered in with Fashion Forward. It is the duty of Ruby to inform all it's existing and potential buyers about the termination of the contract between Ruby and Fashion Forward.

4. She can be personally sued by the bank but only if FashionPlusYou Inc. Defaults on the loan

Since Jasmine is a shareholder of FashionPlusYou, she is not liable for the loan that the company takes from the bank. However, the bank can sue Jasmine for damages incurred to the bank due to the poor performance of the company.