ETH 321 OUTLET Imagine Your Future /eth321outlet.com ETH 321 OUTLET Imagine Your Future /eth321outlet. | Page 17

•
since Zehmer claimed to be "high as a Georgia pine" and it was only t
he liquor talking, there was no contract.
•
because negotiations and modifications to the written agreement laste
d between 30-
40 minutes, it appeared that both parties were serious so even if Zehme
r had no objective intent to sell the farm he is still bound by his actions
and the contract was enforceable.
•
because the terms were fair, the parties are bound by the contract rega
rdless of their intent or capacity.
7- What must Congress do first to establish an administrative agency?
• obtain judicial approval the creation.
• enact an enabling statute.
• nothing, it is an executive power.
• research if a new agency is needed
8-
Which of the following will be a valid defense in a strict products liabil
ity case?
• consent.
• comparative negligence.
• assumption of risk
• contributory negligence.
9-
Modern Corporation operates a steel mill. They have never contributed
anything to the local community and they knowingly pollute both the
air and river that runs by their mill. Their reasoning is that the cost to
install pollution control devices would diminish their profits and they d
on't support the community because they provide jobs and don't think t
hey owe anything else to the citizens in their area. Donating to the com
munity would also diminish profits. Which theory of corporate social r
esponsibility are they exhibiting?
• the narrow view a/k/a invisible hand theory.
• the broad view a/k/a management's hand theory.