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A trademark lasts for:
a. 20 years after the application is filed.
b. 70 years after the death of the creator.
c. 10 years, but it can be renewed for an unlimited number of terms as long as it is used.
d. as long as it is kept confidential.
A jury decision in a civil case:
a. must be unanimous.
b. must be reached in the same day the case is heard.
c. depends on whether or not the parties have agreed to have their case decided by less
than a unanimous verdict.
d. is achieved by informal deliberations.
The privacy of e-mail is regulated by:
a. the federal ECPA.
b. spyware.
c. both a and b.
d. neither a nor b. There is currently no regulation of e-mail privacy.
Donna defaulted on her loan owed to Second State Savings and Loan. The loan was
secured with Donna's car. Donna used the car for personal and family reasons. Which
statement is correct?
a. Second State may take Donna's car without a court order if this can be done without a
breach of the peace.
b. Second State may take Donna's car without a court order even if it means a breach of
the peace.
c. Second State may not take Donna's car because it is a consumer good.
d. Second State may not take Donna's car because perfection was automatic.
In many states today a landlord must use reasonable care to maintain safe premises and
is liable for foreseeable harm.
a. True
b. False
An assignment is effective but not necessarily enforceable from the moment it is made,
regardless of whether the assignor notifies the obligor.
a. True
b. False
Van is using his wrench as a hammer when the wrench breaks and a piece flies off,
injuring his neighbor who is helping Van change a tire on Van's car. If Van sues the tool
manufacturer, its best defense will be:
a. consent.
b. warranties have been disclaimed.
c. product misuse.
d. that the claim is an economic loss only.
A buyer has an insurable interest in goods when they are identified.
a. True
b. False
Barbara, a skilled welder, was hired at Mainco Enterprises for a welding position. She
was asked to sign noncompete clauses limiting future employment if she left Mainco. A
court would be very likely to enforce the noncompete clause unless the time or
geographic restriction is unreasonable.
a. True
b. False
The Children's Online Privacy Protection Act:
a. deals only with the collection of data that will be disclosed to children.
b. deals only with collecting, from children, information that will be disclosed publicly.
c. regulates the activities of Internet operators.
d. is enforced by the EEOC.
e. Both b and c.
If the FTC determines a business has violated the law, it will normally try to get the
business to voluntarily stop the activity.
a. True
b. False
E-mation entered into a contract with a consumer, Ezra, a recent immigrant to the
United States, who spoke very little English, and had no formal education. The contract
provided for Ezra to pay $2500 for a computer system. The system was worth $400. If
E-mation sued Ezra for enforcement the contract, what is the most likely result?
a. The contract is enforceable because of the Statute of Frauds.
b. The contract is enforceable because of the parol evidence rule.
c. The contract is enforceable because of the underlying reference rule.
d. The contract is unenforceable because it is unconscionable.
Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per
acre. Robert replies that he does not need 200 acres of land but would like to buy 40
acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres.
Later, Wally refuses to sell any land to Robert. What is the result?
a. Robert wins; this is an enforceable contract with complete and definite terms.
b. Robert wins; the UCC will decide which 40 acres are to be sold.
c. Wally wins; the original offer was not intended to be an offer but merely an invitation
to negotiate.
d. Wally wins; this agreement is too indefinite since it does not identify which 40 acres
are to be sold.
A possessor of non-negotiable paper has the same rights as the person who made the
original contract.
a. True
b. False
Hilda owes Lex $3,000, which is an undisputed amount. If she offers him her car in full
settlement of the debt and he accepts, the agreement is binding and he can no longer
claim she owes him anything on the original debt.
a. True
b. False
Contracts that do not arise from mutual agreement but are created by courts to avoid
unjust enrichment are:
a. express contracts.
b. implied contracts.
c. quasi-contracts.
d. unilateral contracts.
Amanda, a recent university graduate, needed a car to get to her new job. To help
Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda
default. Ted's promise to pay the loan is a collateral promise. His promise must be in
writing to be enforceable.
a. True
b. False
Which of the following would be notice of an overdue instrument?
a. Taking a demand instrument after a request for payment is made.
b. Taking an instrument one day after the due date.
c. Taking a check 91 days after its issue date.
d. All of the above illustrate overdue instruments.
The Magnuson-Moss Warranty Act only covers face-to-face sales, not catalog or
Internet sales.
a. True
b. False
Kjell is the vice president of international sales for Oxtren, Inc, a U.S. company. To
secure a multimillion dollar contract for his company, Kjell paid a Mongolian
governmental officer $10,000. Kjell:
a. has violated the Foreign Corrupt Practices Act.
b. has not violated the Foreign Corrupt Practice Act because the payment was a grease
payment.
c. has not violated the Foreign Corrupt Practices Act because the government official
was from Mongolia, not the United States.
d. has not done anything illegal because Congress has not ratified the Convention of
Combatting Bribery of Foreign Public Officials in International Transactions.
Pamela is planning to sell her home decorating store to her daughter. Pamela has:
a. a greater duty to reveal problems in the business because her daughter assumes she
will be honest.
b. no duty to disclose hidden defects in the business.
c. a lesser duty to reveal problems in the business because she has a relationship of trust
with the buyer.
d. a duty to report only any latent defects she knows about that her daughter should not
be expected to discover herself.
Injunctions are frequently used by courts to force employees to complete their
contractual obligations with their employers.
a. True
b. False
Banner enters into a contract with Sylvia to buy her house for $150,000. Sylvia decides
later not to sell because she is so emotionally attached to the house. Banner insists that
he is entitled to the house. Banner can successfully sue for specific performance.
a. True
b. False
Miranda v. Arizona considered the intent requirement in an armed robbery case.
a. True
b. False
The legal term for a promise in a contract is "provision.
a. True
b. False
Great State Bank took a security interest in Gresham, Inc.'s meat processing equipment.
Gresham defaulted on the loan. Which statement is correct?
a. Great State Bank may take possession of the collateral.
b. Great State Bank may ignore its rights in the collateral and sue Gresham for the
money owed.
c. Both a and b are courses of action that Great State Bank may follow.
d. Neither a nor b are courses of action that Great State Bank may follow.
The initial term for which a financing statement will be effective is:
a. one year.
b. five years.
c. ten years.
d. two years.
If the court awards a partition to co-tenants, the court will normally attempt a partition
by kind. If partition by kind is impossible because there is no fair way to divide the
property, the court will order the real estate sold, and the proceeds equally divided.
a. True
b. False
Which of the following contracts is most likely to be declared unconscionable?
a. A consumer sales contract which charges 300 times the fair market value of the
goods.
b. A consumer sales contract which limits the consumer's remedies to repair or
replacement.
c. A contract between wholesaler and retailer which adds delivery charges at 15% of the
costs of the goods.
d. A sales contract between wholesaler and retailer which limits remedies such as
consequential damages.
Intellectual property:
a. producers are likely to be adequately paid in the free market.
b. production is not subsidized by the government.
c. typically is expensive to produce but cheap to reproduce and transmit.
d. typically is expensive to produce, copy, and transmit.
Claude agrees to lease his house to Irvin for nine months, the lease to begin six months
from the signing of the contract. Under the statute of frauds:
a. the lease is not required to be in writing.
b. the lease is required to be in writing because of the one-year rule.
c. the parol evidence rule renders the lease voidable.
d. the lease is a collateral promise which must be in writing.
To prosecute under the Robinson Patman Act it is necessary to prove:
a. price discrimination occurred and it lessoned competition.
b. price discrimination occurred but the parties are not in competition with each other.
c. clearly separate products are tied together for purchase and sale.
d. non of these answers are correct.
Which of the following types of property would be goods under the Uniform
Commercial Code?
a. A promissory note.
b. A stock.
c. A patent.
d. A computer.
A proxy is a vote that is mailed in, like an absentee ballot.
a. True
b. False
The Miranda warning insures that the criminal suspects understand their constitutional
rights relating to:
a. search and seizure.
b. self incrimination.
c. double jeopardy.
d. having a jury trial.
