17. Warranty law is based on Article 2 of the Uniform Commercial Code (state law); there is no federal warranty law.
a. true b. false.
18. Which is a correct statement of the master-servant doctrine regarding torts committed in the scope of employment?
a. the employee is liable for her own torts, but the employer must reimburse her
. b. the employer is liable, the employee is not.
c. the employer is liable, but the employee must reimburse the employer.
d. both the employer and the employee are liable.
e. the employer is not liable if the employee was doing something that she knew was not allowed.
19. Dubious promised his niece that he would give her shares of stock in Bulgemobile Motors when she graduated from college. Because of that promise, Niecelet did not get a part-time job during her senior year Upon graduation, she re- minded him of the promise; he said the value of the stock had decreased significantly and his portfolio was depleted, so he was forced to change his mind. Can Niecelet enforce the promise?
a. Yes, because of the mailbox rule.
b. Yes, because of detrimental reliance.
c. No, because of lack of consideration.
d. Yes, because of the full faith and credit doctrine.
e. No, because there was an implied condition precedent to the offer.
20. Why are sales of securities pervasively regulated by the government?
i Buyers of securities really get nothing of tangible value, but rather are entrusting their investment into the hands of others
. ii. Very few people really understand how securities work, so buyers need protection.
iii. Successful business capitalization requires public faith in the integrity of the market.
iv. Common-law remedies for sales fraudin securities or otherwise â€”are inadequate to compensate victims.
v. Conspiracies in restraint of trade do not have a long common-law history.
a. i and iv.
b. i, iii, and iv
c. ii and v.
d. iii only.
e. i and iii.