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The power of federal agencies is limited by:
a. statutory control in the enabling legislation and the Administrative Procedures Act.
b. political control by Congress and the President.
c. judicial review.
d. All of these.
Which of the following is an example of an exculpatory clause?
a. Creditor charges 38% interest on a loan.
b. Seller is not responsible for property damage regardless of the cause of the injury.
c. Buyer agrees to pay any costs of litigation.
d. Employee agrees to never work for a competing company.
The title of a contract should be:
a. general, like "Memorandum of Agreement..
b. written like a sentence, with only the first letter capitalized.
c. short -- no more than five words.
d. descriptive of the agreement, and typed in all capital letters.
Kelly is upset with her supervisor and believes his conduct violates the terms of her
union's collective bargaining agreement (CBA). The union filed a grievance on Kelly's
behalf. Who will conduct the grievance hearing?
a. The U.S. Court of Appeals.
b. The National Labor Relations Board.
c. A member of the company's management team.
d. A replacement worker.
A tenancy with no fixed duration is a:
a. tenancy from month to month.
b. tenancy at will.
c. periodic tenancy.
d. tenancy for years.
Mulcare Corp. started a compliance program to prevent and detect criminal conduct
within the company and had specific, high-level officers in charge of overseeing the
program. The company effectively communicated the program to its employees and
monitored those employees who were in a position to cheat. It promptly disciplined
anyone who broke the law. One effect of having this program is:
a. federal investigators would no longer investigate the company since Mulcare could
take care of any problems internally.
b. federal investigators might be convinced to limit any prosecution to those directly
involved rather than attempting to get a conviction against high-ranking officers or
against the company itself.
c. the Federal Sentencing Guidelines no longer apply.
d. any cases would be prosecuted in state, rather than federal, court.
Consideration can be a promise or an act.
a. True
b. False
Under the UCC statute of frauds, the writing for a sale of goods must:
a. state quantity.
b. state price.
c. be signed by both parties.
d. be notarized.
A party to a contract has a duty to investigate the other party's factual statements.
a. True
b. False
An inmate in a state prison claims his United States Constitutional rights prohibiting
cruel and unusual punishment are being violated by the state correctional facility. This
case:
a. may not be decided by a federal court since it involves a state facility.
b. must be decided by the state court where the inmate established residency before
going to prison.
c. is a federal question case over which the federal courts have jurisdiction.
d. cannot be heard, as prisoners lose the right to sue.
"I'll sell you my car if I decide to sell it" is an example of:
a. a conditional offer.
b. an unliquidated offer.
c. a unilateral contract.
d. an illusory promise.
Paid surrogacy contracts are viewed by the legislative majority in all states as immoral
and illegal.
a. True
b. False
Linda assigns to Ben a right to receive rent payments. The law implies the following
warranty on Lindas part:
a. the tenant is solvent.
b. Linda actually has a right to the rental payments.
c. the tenant will actually pay.
d. No warranties are implied by law in an assignment.
Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the
office one night, Adam, wearing a mask, stepped out from behind some bushes. He
pointed a handgun made out of licorice at her and demanded her purse. He then pushed
the candy gun to her head and told her if she told anybody he'd kill her. Linda was very
scared during the whole incident. She did not think it was funny when Adam pulled the
mask off and took a bite out of the gun as he gave her the purse back. Which statement
is correct?
a. Adam committed an assault but not a battery.
b. Adam committed a battery but not an assault.
c. Adam committed an assault and a battery.
d. Adam committed neither an assault nor a battery since he used a candy gun and was
only playing a joke on Linda.
In the case of Panavision Int'l v. Toeppen, the Ninth Circuit Court of Appeals affirmed
the district court's decision. This means that the Ninth Circuit approved the district
court's decision and upheld the outcome in the case.
a. True
b. False
Lori works for Big Corporation as an "at will" employee. Richard, owner of a small
store, offers to pay Lori much more money if she will leave Big Corp and work for his
store. When Lori starts to work for Richard, Big Corp correctly claims Richard is liable
for tortious interference with a contract.
a. True
b. False
Robin and Bellman, both merchants, orally agree to a contract for the sale of $5000 of
accessories. Bellman, the buyer, sends to Robin, the seller, a written confirmation of the
sale, which is sufficient against Bellman under the statute of frauds and which Bellman
signs. Robin does not sign. Robin fails to perform the contract and does not ship out the
goods. Bellman sues. This contract is:
a. unenforceable, because Robin did not sign any contract.
b. unenforceable, because Bellman did not pay for the goods.
c. enforceable, because Bellman sent the written confirmation of the sale, thereby
partially performing the contract.
d. enforceable even without Robin's signature because both parties are merchants.
Entrapment can be a valid defense to a criminal act.
a. True
b. False
Typos are almost always detrimental to the validity of a contract because they cause the
contract to not reflect the true agreement of the parties.
a. True
b. False
Factors influencing whether a servant is acting within the scope of employment include
all but which of the following?
a. The act is similar to the one the principal authorized.
b. The act is not seriously criminal.
c. The act took place during hours that the servant is generally employed.
d. All of the answer choices are factors in determining if an act is "within the scope of
employment.
When an appellate court hears a case, it may:
a. affirm the decision.
b. reverse the decision.
c. modify the decision.
d. All of these are correct.
Mohammad was an employee in the new product development department of Estay Inc.
Mohammad was directly involved in the development of a new product that Estay
intended to launch in 6 months. Estay took great care to keep information concerning
the new product a secret. Ceries, Inc., a competitor of Estay, persuaded Mohammad to
leave Estay to direct Ceries' marketing department. Which statement is correct?
a. Mohammad can share with Ceries the confidential information he knows about
Estay's new product because he was directly involved in its development.
b. Mohammad can share with Ceries the confidential information he knows about
Estay's new product because his agency relationship with Estay is terminated.
c. Mohammad cannot share with Ceries the confidential information he knows about
Estay's new product because of the equal dignities rule.
d. Mohammad cannot share with Ceries the confidential information he knows about
Estay's new product because he has a duty not to disclose confidential information he
acquired during the agency.
The federal government has preempted the field of online privacy, so states may not
pass their own online privacy statutes.
a. True
b. False
John enters into a contract to paint Chad's house. When Chad decides on a color, John
will buy the paint and paint the house for the price of $2,500. This contract is governed
by:
a. the common law of contracts governs because this is a mixed contract (one for
services and goods).
b. the common law of contracts governs because the predominant factor of the contract
is for the sale of services and not goods.
c. the Uniform Commercial Code governs because a sale of goods is involved.
d. both the common law and the Uniform Commercial Code will govern this contract.
Kent Weston wrote a check for $500 payable to the order of Chester Jones. Chester
indorsed the back of the check as follows: "Chester Jones." The check is now:
a. order paper.
b. bearer paper.
c. a cashier's check.
d. special paper.
The Civil Rights Act of 1866 offers plaintiffs the possibility of higher compensatory
and punitive damage awards than plaintiffs who file under the Civil Rights Act of 1964.
a. True
b. False
Dean Builders agrees to purchase all of its sump pump requirements for the new houses
it builds from Satisfactory Sump Pump, Inc. These two business have had similar
agreements the last three years and Dean's requirements have averaged 100 sump
pumps per year. This year there was an unusually wet spring and Dean's requirements
doubled to 200 sump pumps. Because of the high demand of sump pumps, the market
price of the pumps tripled. Satisfactory Sump Pump, Inc. delivers 100 pumps at $75,
the contract price. Satisfactory has exhausted its inventory and cannot deliver any more,
so Dean buys the other 100 pumps from other suppliers at $225 each. Dean sues
Satisfactory Sump Pump, Inc. for the additional expense. What is the most likely result?
a. Satisfactory Sump Pump, Inc. wins; output and requirements contracts are not
enforceable since no quantity is stated.
b. Dean wins; Satisfactory Sump Pump, Inc. agreed to meet the needs of Dean and did
not do so, which is a breach.
c. Satisfactory Sump Pump, Inc. wins; requirements contracts are governed by a good
faith standard, and it was unreasonable for Dean to demand so many additional pumps.
d. Dean wins; the requirement of good faith applies only between merchants, and Dean
is not a merchant.
Megan agrees to sell Nancy her Rolex watch but they do not specify a price. In such a
case, the court would not enforce the agreement because all of the essential terms are
not present.
a. True
b. False
When considering both imports and exports, the country trading the most goods with
the United States is:
a. Canada.
b. China.
c. Japan.
d. Mexico.
The legal right to sue for a breach of contract is subject to a statute of limitations.
a. True
b. False
Approximately how much merchandise is stolen from United States retail stores every
year?
a. $10 million
b. $50 million
c. $10 billion
d. $25 billion
The case of Carafano v. Metrosplash.com, Inc. held:
a. the Fourth Amendment applies to computers.
b. Congress, in enacting the Communications Decency Act, intended that ISPs should
not be held liable for information provided by someone else.
c. Congress had weighed free speech interests with protection of the public from
offensive or obscene materials and determined that protection of the public was more
important in the Internet setting.
d. Matchmaker, because it had provided the questionnaires for collecting information
from its users, must be considered an "information content provider under the
Communications Decency Act, and it is therefore liable under the Act.
