Burns Medicine Shop developed a website where customers could ask the pharmacists
questions and could refill prescriptions online. What statute requires Burns to have and
disclose a privacy policy to anyone using the website?
a. The FTC Act.
b. The Electronic Communications Privacy Act.
c. The Gramm-Leach-Bliley Privacy Act.
d. No statutes presently require websites to have or disclose a privacy policy.
The power to create laws regulating international commerce is given jointly to
Congress and the states under the U.S Constitution.
a. True
b. False
The duties of the buyer include all of the following except:
a. acceptance of conforming goods.
b. payment for conforming goods.
c. delivery of the documents of sale to the seller as a tender of goods.
d. notifying the seller of rejection of non-conforming goods within a reasonable time.
In seeking to determine whether there is a meeting of the minds, the courts look to how
a reasonable person would objectively view the language or actions of the parties.
a. True
b. False
If there is a conflict between a state and federal law, generally the federal law will
prevail because of the:
a. federalism doctrine.
b. Supremacy Clause.
c. paramount doctrine.
d. Interstate Commerce Clause.
The Clayton Act prohibits anti-competitive mergers.
a. True
b. False
If you have an established relationship with a buyer, you can sell small tracts of land
without a written contract.
a. True
b. False
MagNet is a U.S. company based in Utah. It is negotiating to sell $4 million worth of
computer goods to a French company, L’la. L’la is insisting that the contract be
governed by the CISG. What are some of the primary differences between the UCC and
the CISG?
The main difference between the UCC requirement for a writing for a contract for the
sale of goods and the common law is that the:
a. UCC requires only the signature of both parties.
b. UCC does not require all the terms of the agreement to be in writing.
c. common law requires only an indication that the parties reached an agreement.
d. common law requires only the signature of the defendant and the quantity of goods
being sold.
You receive an e-mail telling you that your banks website is undergoing some security
updates and you need to log in to update your account information. Conveniently, there
is a link in the e-mail allowing you to easily log in. Most likely this is an example of:
a. hacking
b. phishing
c. hunting
d. shilling
The Environmental Protection Agency was investigating whether Exgrow, Inc. violated
the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning
pollution. To get the reports, EPA should use:
a. a stare decisis.
b. a de novo.
c. an excaliber.
d. a subpoena duces tecum.
The First Amendment to the U.S. Constitution explicitly protects citizens from
abridgment of the right of free speech by any level of government.
a. True
b. False
Graham, an adult, purchases a car from a minor, and subsequently sells it to Harlow,
another adult. Harlow paid full value for the car and had no reason to know that
Graham had purchased the car from a minor. Which of the following best describes this
situation?
a. Graham had good title and Harlow gets good title.
b. Graham had good title and Harlow gets a voidable title.
c. Graham had voidable title and Harlow gets good title.
d. Graham had void title and Harlow gets void title.
Roger assaulted Jim in a tavern, causing medical expenses and lost wages. Which of the
following is true?
a. Roger can be prosecuted by the state for a criminal offense and Jim may sue him for
money damages.
b. If Roger is convicted of criminal assault, Jim is not allowed to sue him for money
damages since that would violate the double jeopardy clause of the Constitution.
c. If Jim refuses to press charges against Roger, the state cannot initiate a criminal
proceeding against him.
d. Jim can either elect to sue for money damages or proceed with criminal charges.
The idea that courts should not be heavily involved in lawmaking, but rather should
only rule in cases where the Constitutionality is clear is known as:
a. judicial review.
b. judicial activism.
c. judicial reform.
d. judicial restraint.
If a minor can cancel a contract, it can be done at any time during minority or within a
reasonable time after reaching majority.
a. True
b. False
Ernest operates an ice cream stand during the months of May, June, July, and August.
Ernest’s ice cream machine is broken and needs a new part to run. He contracts to have
the part shipped to him by special carrier. Ernest emphasizes that the part needs to be
delivered by April 25 and the carrier agrees, knowing that Ernest intends to open his
stand May 1. If the shipper fails to deliver the part on April 25, Ernest will be able to
recover consequential damages caused by the delay.
a. True
b. False
Wedney, Inc. sold a meat processing machine to Yoro Chickens, taking a security
interest in the machine. Yoro Chickens defaulted on the loan. Wedney repossessed the
machine. Wedney would like to retain the machine to use as a model. Which of the
following statements is correct?
a. Wedney must notify the debtor that it intends to retain the machine and give Yoro 20
days to object.
b. By taking possession, Wedney automatically foreclosed on the collateral. Wedney has
valid title and need do nothing else.
c. Since the machine is equipment, Wedney cannot retain the machine. Wedney must
dispose of the collateral in a commercially reasonable manner.
d. Wedney can retain the machine but must pay Yoro the surplus, the difference between
the fair market value of the machine and the amount of the debt.
The Bankruptcy Code uses the term “bankrupt to refer to a person who cannot pay his
debts.
a. True
b. False
In good faith, Clinton gave Jane $500 for a negotiable promissory note made out to
Jane for $550. She needed some money before the due date on the note, and Clinton
had no notice of outstanding claims or other defects of the note. Clinton:
a. has more rights than Jane.
b. has the same rights as Jane.
c. has only conditional rights because they depend on Janes rights.
d. cannot transfer the note to anyone else.
Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in
exchange for Rick’s promise to pay $5 per box. Lucy delivers the candy. Rick pays for
the goods. This contract is fully executory.
a. True
b. False
Which of the following statements is correct?
a. It is much easier for a government employer to test an employee for drugs or alcohol
than it is for a private employer.
b. Generally speaking, in most states, it is easier for a private employer than the
government to test an employee for drugs or alcohol.
c. Neither may test for drugs or alcohol.
d. Both may test for drugs or alcohol without restriction.
Which of the following is least likely to be regarded as a necessary?
a. Rent.
b. Food.
c. Medical expenses.
d. Educational expenses.
Brad was having financial difficulties and thought bankruptcy might be in his future. He
transferred his sports car to his brother with the agreement that if he didnt file for
bankruptcy within the next 18 months, his brother would return the car to him. Brad did
file for bankruptcy in ten months. The bankruptcy trustee can bring the car back into
Brads estate for the purpose of providing assets for Brads creditors.
a. True
b. False
In order for a copyright holder to collect money damages from a person who used
copyrighted material, it must be proven that:
a. the infringement was intentional.
b. the copyright holder sustained more than $500 in actual damages.
c. the copyrighted material contained the copyright symbol, name of the copyright
holder, and the year of copyright.
d. None of the above.
During the hiring interview, Supervisor Staci told Henry that as long as he did his job as
requested, he would have a job until he retired. Courts have been willing to enforce
such an oral promise under the Truth in Hiring doctrine, even if the companys top
management did not approve the statement.
a. True
b. False
The burden of proof required in a criminal case is:
a. clear and convincing.
b. a preponderance.
c. beyond a reasonable doubt.
d. highest degree of honesty.
Don was standing in a cafeteria line holding a plate. Tim was upset with Don. Tim
turned Don around and grabbed the plate, jerking it out of Don’s hand. Tim then held
the plate up and threatened to break it over Don’s head. Tim has committed:
a. a battery, but not an assault.
b. an assault, but not a battery.
c. both an assault and a battery.
d. neither an assault nor a battery.
A color cannot be trademarked since it cannot be kept from use by other businesses.
a. True
b. False
The President of the United States:
a. creates federal common law.
b. can veto Congressional legislation.
c. determines the constitutionality of statutes.
d. passes statutes.
Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland. Big
Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to
Hardhat. The documents required by the letter of credit are presented to the bank for
payment while the goods are still in transit. Is Hardhat entitled to be paid?
a. No, payment is not due until the goods are delivered.
b. No, payment is not due until 30 days after delivery.
c. No, payment is not due until the buyer has had a reasonable time to inspect the
goods.
d. Yes, the letter of credit is a promise by the bank to pay when certain documents are
presented.
The last protected trait added by Congressman Smith of Virginia to the bill which
became Title VII of the Civil Rights Act of 1964 was:
a. sex (gender).
b. sexual orientation.
c. national origin.
d. race.
A drawee has primarily liability on a draft.
a. True
b. False
Landscaper Lottie used her machinery, employee labor, and her expertise to landscape
Opal’s new guest home. Opal fails to pay for the landscaping because she has run out of
money. Lottie files a lien against the real property. This lien is called:
a. an artisan’s lien; her landscape design is a work of art.
b. a landlord’s lien; Opal is planning to rent the guest house to a tenant.
c. a mechanic’s lien; it was created by improving real property.
d. a purchase money security interest.
Explain what the General Agreement on Tariffs and Trade (GATT) is and give pro and
con arguments concerning this agreement.
Discuss the concept of consideration.
The plaintiff, Donald Laird has a bachelor of science degree in animal science, had
previously been employed at the university’s swine research center, had managed a feed
mill, had been employed as a herdsman for Hog Breeders, Incorporated, had worked for
five years for Armour & Company at its feeder pig operations, and was a branch
manager of the Scribner Co-op, Inc. for 14 years. Laird’s assistant manager while at the
Co-op was Gary Ruwe. When Laird quit the Co-op, Ruwe became the manager. Later,
Laird went to Co-op to purchase some feed ingredients for his hogs. In speaking with
Ruwe, Laird learned that the Co-op grain bin was not operating properly and therefore
the corn was not drying properly. If the corn does not dry properly, it can collect mold
and insects. Laird said he would take 1300 bushels of corn if Ruwe could pull the corn
out of the middle of the grain bin. The corn was delivered to Laird where he noticed
some damaged corn and an odor that indicated that the corn may have mold. Laird did
not reject the shipment, however. Laird then began to feed the corn to his hogs. The
boars began to develop pneumonia, began vomiting, and would not eat regularly. When
it was time for the sows to farrow, the sows had an abnormally high number of
miscarriages and stillborns. The ultimate conclusion was that the corn delivered was
tainted with vomitoxins, a toxic substance that made the corn unmarketable as feed.
Laird sued the Co-op for breach of the implied warranties of fitness for a particular
purpose and merchantability. In order to recover under the warranty of fitness for a
particular purpose what does Laird have to prove? What is the implied warranty of
merchantability? Does Laird have a successful claim with this warranty?