Question

Question 5.Choose Ture or False

1. Labeling a term sheet “nonbinding” without additional disclaimers is always sufficient to prohibit enforcement of an agreement or imposition of an obligation to negotiate in good faith.

True /False

2. An implied contract is a contract that is not explicitly articulated but is found to exist based on conduct of parties.

True/ False

3. A choice of law provision in a contract specifies which state’s laws will govern the contract.

True /False

4. A new real property owner may be liable for hazardous waste on that property.

True/ False

5. Strict product liability requires showing that the defendant was in the chain of distribution of a product sold in defective condition and the defect caused an injury.

True /False

6. Third-party liability insurance cannot protect businesses from liability to others based out of conduct of business.

True /False

Answer 1

1. False. Simply labelling a sheet as non-binding is not sufficient. A preliminary term sheet is mandatory

2. True - Implied Contract  is a legally-binding obligation that derives from the actions, conduct, or circumstances of one or more parties in an agreement.

3. True - A "choice of law" /"governing law" provision in a contract allows the parties to agree that a particular state's laws will be used to interpret the agreement, even if they live in a different state.

4. True - Property owner is at risk of suffering substantial civil and criminal penalties, as well as liability for common law is he is not careful with environmental norms

5. False- In strict product liability the defendant only needs to prove that the product was defective.

6. True - Third party liability cannot cover over the conduct of business itself.