In: Economics
BUSINESS LAW 1 (3 Questions)
25 . Abby hires Bob to paint her house. Bob negligently leaves a ladder on
the jobsite. A F edEx driver comes to deliver a package after dark and
trips over the ladder, badly injuring himself. The FedEx driver sues
Abby for Bob’s negligent act under the doctrine of respondeat superior .
Which of the following would be a good defense for Ab by to raise?
a) Bob did not intend to injure the FedEx driver
b) Abby did not know that Bob left the ladder there
c) Bob was an independent contractor not an employee of Abby
d) Abby did not order the package the FedEx driver was delivering;
her roommate did ____
26 . Suppose a contract contains a condition precedent. The occurrence
or satisfaction of that condition precedent:
a) renders the contract voidable
b) triggers a party’s duty to perform
c) renders the contract void ab initio
d) negates the existence of a meeting of the minds ____
2 7. The President of the United States can be a source of law by doing
which of the following?
a) a d judicating disputes between the chambers of Congress
b) creating administrative agencies
c) issuing executive orders
d) declaring laws unconstitutional ____
25. Respondeat superior applies to employment relationship. The employer is held responsible for employees' negligent acts. But this doctrine is not applicable to contractual relationship. Thus, Abby can use option C. She can say that Bob was an independent contractor not an employee of Abby
26. When a contract has condition precedent, it means that the contract will be enforced depending upon the fulfillment of the certain condition. For example, the teacher may say that if you complete this chapter by tomorrow, you will get an A grade. There is an condition precedent in this contract. Unless the condition is fulfilled, the contract remains void.
But once the condition precedent is fulfilled, the contract become Voidable.
Thus, correct option is A.
27. The correct option is C. The president can issue executive orders. Article 2 of the US constitution provides this right to the President.