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Which statute prohibits discrimination on the basis of disability by the federal
government, federal contractors, and all entities that receive federal funds?
a. The Civil Rights Act of 1866
b. The Equal Pay Act of 1963
c. The Rehabilitation Act of 1973
d. The Family and Medical Leave Act of 1993
Which of the following statements about torts is correct?
a. A tortious act is always a criminal act.
b. A criminal act is always a tortious act.
c. A tortious act may also be a criminal act.
d. All the above are correct.
Management's duty to have a rational business purpose, avoid illegal behavior, and
make informed decisions refers to its:
a. duty of care.
b. duty of loyalty.
c. duty of openness.
d. duty of fairness.
What guidelines has the Supreme Court set forth when awarding punitive damages in
most cases?
a. Punitive awards should not exceed compensatory damages by more than a factor of
nine.
b. The Supreme Court has not set any limits for punitive awards.
c. Punitive awards should not exceed compensatory damages by more than a factor of
one hundred.
d. The Supreme Court has stated that punitive damages are allowed only when there are
no compensatory damages awarded.
Tina is an undercover police officer. One evening she is posing as a prostitute in a bar.
Larry, a salesman who is attending an out-of-state convention, begins talking with Tina.
After about ten minutes, Tina suggests going to her room for a good time but points out
he will need to "donate" $100 to her. Arriving at Tina's hotel room, Larry asks if she is a
policewoman. Tina lies and says she is not. When Larry gives her $100, Tina shows him
her identification and arrests him.
a. Larry appears to have been the victim of entrapment since Tina lied about being a
police officer.
b. Larry appears to have been the victim of entrapment since Tina was the one who
suggested the activity that resulted in Larry's arrest.
c. Both of the above are correct.
d. None of the above is correct.
Martina developed a new type of apple tree which could be reproduced through
grafting. She cannot protect her rights in this tree by obtaining a plant patent since the
tree cannot be reproduced by planting its seeds.
a. True
b. False
Uncle Brandon promises to give his motorcycle to you at the end of the month. This
transaction is governed by UCC, Article 2, because a motorcycle is within the definition
of "goods.
a. True
b. False
Crytrin Manufacturing, Inc. contracted with Molfrey, Inc. to manufacture three large
pieces of equipment. The contract contained a clause stating that Crytrin agreed to
repair or replace any defective equipment, but that was the only remedy Molfry would
have. This clause:
a. is an effective disclaimer.
b. will not keep Molfry from obtaining consequential damages since, under the UCC,
consequential damages cannot be excluded.
c. is a limitation of remedy clause, which limits or excludes normal remedies permitted
under the Code.
d. limits any express warranties made by Crytrin.
Owners in a joint tenancy with the right of survivorship cannot transfer their interest
during their lifetime.
a. True
b. False
Which of the following is true regarding an open price term?
a. It makes the contract unenforceable.
b. The price may be fixed by the seller.
c. The price is the "reasonable" price at the time of delivery.
d. The price is set by the buyer.
When Angelena was shopping for a new lawn mower, the salesman, Mark, told her the
model she was interested in cuts an 18 swath and the only maintenance it needs is an oil
change and a new sparkplug at the beginning of each mowing season. He hands her a
warranty booklet which describes that model as a mulching mower and says it has a
five-year full warranty. The booklet also disclaims "any warranties or statements made
by any agent or salesperson or that appear elsewhere in this booklet. The effect of the
written disclaimer is:
a. that it is valid to disclaim only the written warranties within the booklet.
b. that it is valid to disclaim both oral and written warranties.
c. it does not disclaim either the oral or written warranties.
d. that it disclaims the oral warranties, but not the written warranties.
The behavior of top executives regarding ethical issues has little effect on the behavior
of the employees of the organization.
a. True
b. False
Which of the following statements is incorrect concerning liquidated damages?
a. A liquidated damages clause will be enforced if, when the contract was made, it was
difficult to estimate actual damages.
b. The amount of liquidated damages must be a reasonable estimation of the actual
harm resulting from a breach.
c. Nominal damages are not the same thing as liquidated damages.
d. Liquidated damages are enforceable even if the amount is considered to be a penalty
on the breaching party.
The EEOC is the federal agency responsible for enforcing Title VII.
a. True
b. False
The Sixth Amendment declares that a person cannot be tried twice for the same
criminal offense.
a. True
b. False
Contracts must begin with the word, "whereas in order to be legal.
a. True
b. False
Under the Robinson-Patman Act was it is legal to charge a different price for a product
if...
a. the items are the same
b. the cost of doing business is less with one buyer over another
c. Competition is lessened.
d. All the above.
If Crosby and Dash are in disagreement as to the exact amount of money that Crosby
owes Dash, then they may choose to form a new agreement at a set amount. If they both
perform the new agreement, their conduct would be an example of:
a. a rescission.
b. a contract modification.
c. a preexisting duty.
d. an accord and satisfaction.
Myrtle walks into Hank's Hardware Store and says, "I need metal storage shelves that
can hold 500 pounds." Hank directs her to a metal storage shelving system, which
Myrtle buys. When Myrtle puts 475 pounds of weight on the shelves, they collapse.
Hank's Hardware breached the warranty of merchantability.
a. True
b. False
Which of the following is not an element of a tying agreement under the Clayton Act?
a. The seller requires the buyer to purchase the two products together,
b. The seller is shutting out a significant part of the market for the tied product.
c. The seller has no significant power in the market place.
d. All the above.
Summary judgment is appropriate when there are no essential facts in dispute.
a. True
b. False
If Gloria threw a rock which hit Merle, she is liable for an intentional tort of battery
only if she intended to injure or harm Merle.
a. True
b. False
Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few
months, returns it to Tuneland, and demands his money back. In a majority of states,
Roger may return the stereo and he does not have to pay for the use of the stereo or the
damages.
a. True
b. False
Under a contract for the sale of land, the statute of frauds:
a. does not apply if the purchase price for the land is less than $500.
b. requires that the entire agreement be in one single document.
c. requires the defendant to sign the agreement.
d. does not apply if the total price of the land is to be paid in less than one year..
Mark's home had burned to the ground. When he met with his insurance adjuster, she
accused him of burning down the house, and said she would have him criminally
prosecuted if he didn't settle the claim for much less than the house was worth. Mark
agreed to the settlement. If he changed his mind, he can probably rescind the settlement
on the basis of:
a. fraud.
b. duress.
c. undue influence.
d. mistake.
Beth owned an original United States flag. She had previously loaned the flag to Ross, a
lawyer, so that he could display the flag on the wall behind his office desk. One day
while visiting Ross in his office and admiring the flag, Beth said to Ross, "You are so
fond of that flag, I would like you to have it!" Ross responded with a gracious "thank
you." In this situation:
a. Beth has not made a valid, binding gift of the flag because gifts are never binding and
can always be revoked by the donor.
b. Beth has not made a valid, binding gift of the flag because the donor must deliver the
property to the donee, which was not done here.
c. Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for
Ross's legal services.
d. Beth has made a valid, binding gift because she intended to transfer present
ownership to Ross and Ross accepted the flag.
At her neighbor's garage sale, Constance buys a vanity dressing table from her
neighbor, Carlos, for $160. Constance purchased the vanity table for her own personal
use, without any knowledge that Carlos had signed a security agreement giving All
Purpose Furniture, Inc. a security interest in the vanity table. All Purpose Furniture did
not file a financing statement. Constance does not know that Carlos is still paying off
the purchase money security interest and owes All Purpose Furniture, Inc. $400. Under
these circumstances:
a. Constance takes the vanity table subject to All Purpose's security interest because All
Purpose's security interest automatically perfected. A perfected security interest takes
priority.
b. Constance takes the vanity table free of All Purpose's security interest because she is
a buyer of consumer goods
c. Constance takes the vanity table free of All Purpose's security interest because she is
a buyer in the ordinary course of business.
d. Constance must pay All Purpose $400 or the table must be resold, and she and All
Purpose will proportionately share the proceeds from the sale of the table.
Ethel's Exercise World plans to order three weight machines from Pete's Push, Pedal
and Pull, Inc. for a total of $15,000. Pete's demands that Ethel's friend, Moneybags, a
wealthy independent businesswoman (not connected with Ethel's business in any way)
promise to pay Pete's for the three machines if Ethel's Exercise World does not. Which
of the promises in this problem must be in writing to be enforceable?
a. The promise made by Ethel's Exercise World to buy the weight machines.
b. Moneybag's promise to pay if Ethel's Exercise World doesn't.
c. Both Moneybag's promise and Ethel's Exercise World's promise.
d. None of the promises in this problem need to be in writing.
It is legal for a private employer to use lie detector tests as part of its usual hiring
process.
a. True
b. False
If the President vetoes a bill and if both the House and Senate repass the bill by a
two-thirds margin, the bill becomes law.
a. True
b. False
In order to be considered sexual harassment, behavior must be so severe that it
interferes with an employees ability to work.
a. True
b. False
Murphy stops at a garage sale and purchases an oak rocking chair. Murphy and the
seller agree that Murphy will pick up the rocking chair the next day when Murphy will
return with a truck. That night, there is an earthquake and the rocking chair is
swallowed up by earth and totally destroyed. In this case, the seller had the risk of loss
and must refund the purchase price to Murphy.
a. True
b. False
Outline the focused, multi-step process recommended for reading a contract before you
agree to it.
Identify the considerations the United States Supreme Court outlined for calculating
punitive damages.
Sandy worked for a small printing company. She found a new job that would pay much
more. In accordance with company policy, she gave her employer a two-week notice
that she would be leaving. Her employer was upset she was quitting, so he terminated
her employment immediately. Sandy was upset because she thought she had acted
properly by giving her employer two weeks' notice. Her new employer will not be able
to employ her for two weeks. Sandy believes her employer has breached the
employment agreement and she should be paid for the two weeks between jobs. Is she
right? Explain.
What are some of the advantages for a business to incorporate in Delaware?
Violations of antitrust law are either per se violations or rule of reason violations. What
are the differences between these two types of violations? Give examples of each.
Mabel, an 85-year-old widow who is in poor health, signs a contract with the only
nursing home in Anytown (the nearest alternative facility is 75 miles away). The
contract obligates Mabel to pay $4,000 per month for the rest of her life and for her
estate to pay the same amount for the period of time that the unit sits empty upon her
death. Mabel's daughter believes this agreement amounts to an adhesion contract. What
is an adhesion contract? What factors will a court look at in determining whether an
adhesion contract exists?
In a construction contract, there is a $1000 per day estimate of damages for each day
that the contract runs over the completion date. The contractor is 30 days late when the
job is completed, resulting in a prospective damage award of $30,000. What is this type
of clause, and when will it be enforced?
Jasmine agrees to purchase 1500 tons of recycled glass from Louie, the price to be
determined at the time of delivery. Is such an agreement enforceable? Compare the
common law with Article 2 of the UCC.
Oxtron, Inc. arranged for two employees, Kaiya and Gary, to attend "The Business
Ethics 2008 Conference: Maintaining Credibility" in New York City. Although Gary
goes to New York, he does not participate in the conference. Instead, he takes in the
local attractions. Kaiya fully participated in the conference. Using ethical standards,
describe what Kaiya should do about Gary's failure to participate in the conference.
Oxtron, Inc. is considering establishing a program that actively encourages ethical
behavior. What reasons would support Oxtron's adoption of an ethics program?
Faith owns a copyright in a book she recently wrote. She applies for a $10,000 loan
through Cumberland Bank and wants to use the copyright as collateral. Explain if and
how the bank can perfect a security interest in such collateral.
Identify four factors courts consider in deciding the validity of commercial
impracticability and frustration of purpose claims.
In January, All Seasons, Inc. ordered $4000 of fireworks from Kaboom Ltd. with
delivery to be on or before June 1. On April 15, Kaboom notifies All Seasons that it will
not be able to perform the contract as agreed. How will the law characterize Kaboom's
actions? Does All Seasons have to wait until June 1 before buying fireworks from
another supplier?
Wilmas arm is broken when Paula knocks her down during an argument. If Wilma sues
Paula for battery, what damages is Wilma likely to receive?
Ken decided to open a retail boat dealership. He expects that many of his sales will be
credit sales. What should Ken do to protect his interests in the collateral in the credit
sales that he makes?
Discuss the tenant's and the landlord's basic duties under a landlord-tenant relationship.
Baker Furniture sold 50 living room sets to King's Department Store. The parties did
not agree on passage of title, but the delivery term was F.O.B. place of shipment.
Discuss title and risk of loss regarding the furniture.
Dan was arrested and taken to an interrogation room for questioning. After signing a
statement waiving his Miranda rights, he agreed to answer questions without a lawyer.
After about ten minutes, he told the officers he changed his mind and wanted to talk to a
lawyer before answering any more questions. The officers left the room and then came
back in. They told Dan that his partner was confessing to the crime and that, "If your
partner confesses first and makes a deal, you're the one who's going to go down for
this." Dan looked at them without saying anything. After a minute, the officer began
questioning Dan again and he confessed to the crime after about an hour. Is this
confession admissible?
Yount, Inc. is interested in expanding its business to include exporting its products to
several other countries. Discuss two federal statutes that should be considered before
making the decision to export.
Explain the overall purposes of the Sherman Antitrust Act, the Clayton Act, and the
Robinson-Patman Act. How do each of these Acts relate to each other?
