1. C: An LLC, or a limited liability company, protects someone from liability by shielding their personal assets from company assets as long as they do not comingle personal and business accounts and meet other related legal requirements. This is the best structure for Alexander because he will be protected but does not have to appoint a board of directors or pay annual dues associated with a corporation.
2. D: When a contract is created, both sides must give consideration in order for the contract to be binding. Ms. Smith gave consideration in the form of the promise to pay the $200. However, her son did not make a promise or offer any consideration for the contract. Therefore, the contract cannot be enforced against Ms. Smith because she received no consideration of any sort, either in the form of a promise from her son or otherwise, for her promise.
3. A: When Joseph gave Caroline a life estate, Caroline received the right to enjoy the property for the remainder of her life. Caroline’s interest thus expired upon her death, meaning she cannot will an interest in the property to anyone. Upon Caroline’s death, the property would revert to the remainderman named in the life estate (if such a person existed) or to the person who originally owned the estate (i.e., the person with a fee simple absolute, or absolute and undivided ownership). In this case, Joseph had absolute ownership until he granted Caroline a life interest, so when Caroline died, the life interest ended and Joseph regained total ownership.
4. C: An agency law doctrine known as respondeat superior stipulates that the master (in this case, the employer) can be held responsible if the employee’s actions are performed in the course of routine work duties. Because Clark was a delivery person, he was acting in the scope of employment when he was delivering the package. Therefore, the employer can be