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A buyer's material breach gives the seller the right to refuse to deliver the goods.
a. True
b. False
"Scriveners error is another (fancier) name for a typo.
a. True
b. False
The "tipper" of inside information can be convicted of a crime, the "tippee" cannot.
a. True
b. False
Which of the following is generally NOT in the introductory paragraph of a contract?
a. The date of the contract
b. The covenants of the contract
c. The parties to the contract
d. The nature of the contract
Which of the following is correct?
a. A copyright can be renewed once it expires.
b. A patent can be renewed once it expires.
c. A trademark can be renewed as long as the mark is still in use.
d. Copyrights, patents and trademarks are not renewable.
In order for the government to obtain a criminal conviction, it must prove its case
beyond a reasonable doubt.
a. True
b. False
Tu-thumbs buys a used paint sprayer from the local paint store. The sprayer had a large
sign on it which said "ASIS." The dealer made no promises or statements concerning
the performance of the paint sprayer. When Tu-thumbs attempts to spray paint his
house, the trigger on the sprayer sticks in the "on" position and before Tu-thumbs can
pull the electrical cord to cut the power, paint is sprayed all over his prize Borzoi dog
that is scheduled to be shown in a dog show the next day. Tu-thumbs sues the
dealership. Who wins?
a. Dealer wins; there were no express warranties and all implied warranties have been
successfully disclaimed.
b. Tu-thumbs wins; he can recover on the basis of express warranties.
c. Tu-thumbs wins; he can recover on the basis of the implied warranty of
merchantability because the word "merchantability" was not used in the disclaimer.
d. Dealer wins; even though there were implied warranties, the damage to the dog could
not have been foreseen.
Janelle has an art collection that she wants to sell. She calls Amber and tells her to sell
the art collection for her at an upcoming auction. Amber agrees. This is an example of
a. apparent authority.
b. respondeat superior.
c. intermediary agency.
d. express authority.
Historically, many countries had dissimilar and confusing intellectual property rules
covering copyrights, trademarks, and patents. Which of the following served to clarify
and harmonize the trade related aspects of intellectual property?
a. GATT
b. NAFTA
c. CISG
d. TRIPs
Under the federal legislation known as OSHA
a. employers must keep records of all workplace injuries.
b. employers must keep records of positive results of workplace drug tests.
c. employers must keep a record of recognized hazards used in the workplace.
d. employers may monitor workers e-mail messages if the monitoring is done in the
ordinary course of business and the employer provides the e-mail system.
Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the
acceptance must be in writing by USPS next-day service. Which of the following
acceptances will create a contract between Travel Lines and Elaine?
a. Elaine calls Travel Lines and states that she will buy the tickets.
b. Elaine sends a fax to Travel Lines stating she will buy the tickets.
c. Elaine sends a letter by USPS next-day service to Travel Lines stating that she will
buy the tickets.
d. All of the above responses will create a contract between Travel Lines and Elaine
since they constitute reasonable means of communication.
A salesclerk at Sparkle Jewelry Store observed a customer remove a ring from a display
case and put it in his pocket. In most states, Sparkle
a. can reasonably detain the customer for suspicion of shoplifting.
b. cannot detain the customer but can alert the police.
c. cannot detain the customer but once the customer leaves the store, the salesclerk can
make a citizen's arrest.
d. cannot detain the customer but can sue for conversion.
The Miranda warning insures that the criminal suspects understand their constitutional
rights relatingto
a. search and seizure.
b. self incrimination.
c. double jeopardy.
d. having a jury trial.
Under the Fair and Accurate Credit Transactions Act (FACTA),
a. a creditor may not discriminate against a borrower on the basis of race, sex, religion,
or age.
b. a debt collector may not harass or abuse debtors.
c. a credit card company must promptly investigate and respond to any consumer
complaints about a credit card bill.
d. a consumer has the right to obtain one free credit report every year from each of the
three major reporting agencies.
Ryan, a minor, contracted to sell his auto to Ed, a 28-year-old. Ryan later refused to
complete the sale. If Ed sues to enforce the contract, Ed will
a. win because Ryan was the seller.
b. win because minors can only avoid contracts for the sale of land.
c. lose, as the contract is void.
d. lose, because the contract is voidable by Ryan.
It is not a violation of United States law for a domestic company to import goods
created by forced or indentured child labor if this type of "labor is commonly allowed
in that foreign country.
a. True
b. False
Most courts hold that a seller of goods is NOT entitled to consequential damages.
a. True
b. False
How did it come about that China, France, Russia, the United Kingdom and the United
States are the five permanent members of the United Nations Security Council?
a. They were the primary victors in World War II.
b. They are the nations with the largest populations.
c. They are the economic leaders of the world.
d. They are the nations with the largest military forces.
If interrogatories are being used as a form of discovery, the party being questioned must
generally answer all the questions orally under oath.
a. True
b. False
The Clayton Act was enacted
a. because the courts were too strict in their enforcement of the Sherman Act.
b. to clarify the provisions of the Sherman Act.
c. to eliminate price discrimination that reduced competition.
d. to allow the FTC to enforce antitrust laws.
Brandon orally assigned his right to $100 from a lawn mowing contract to Will as a gift.
This assignment is
a. not valid because it was not in writing.
b. valid even though it was oral and there was no consideration from Will.
c. irrevocable once Brandon has told Will about the gift.
d. not valid because Will gave no consideration for the assignment.
Statutory law is to legislative bodies as common law is to
a. rulemaking.
b. agencies.
c. courts.
d. administrative regulations.
Oxtren, Inc. is a tools wholesaler. Oxtren sent M&E Tools a purchase order offering to
buy 200 Model 308 milling & drilling machines with R-8 spindles. The purchase order
stated the credit term to be 2% discount if payment was made in 10 days, with the full
amount due in 30 days. M&E responded with an acceptance form accepting the offer.
The acceptance form, however, stated that full payment was due on delivery and that
disputes under the contract would be settled by arbitration.
(A) Do the parties have an agreement?
(B) What is the payment term?
(C) Is the arbitration clause part of the agreement?
The two basic elements of consideration are intention and agreement.
a. True
b. False
If a court awards nominal damages it will generally
a. award compensatory damages as well.
b. not make a determination as to whether there has been a breach of the contract.
c. award punitive damages for the intentional breach of the contract.
d. award a very small amount of money.
The issue in the Kruser v. Bank of Americacase involved
a. lost credit cards.
b. unauthorized withdrawls.
c. unfair interest rates.
d. privacy.
Insurance obtained by a limited partnership on the life of the general partner would be
a. double indemnity insurance, because both the limited partnership and the general
partner are insured.
b. key person life insurance, because the general partner is a key person, contributing a
great deal to making the business successful.
c. a co-insurance policy because both the limited partnership and the general partner are
insured.
d. whole life or straight life insurance which builds a cash value.
If in 1900 the Minnesota Supreme Court ruled that a minor can void a contract at any
time during minority and, in 2014, the courts in Minnesota still follow this ruling, this is
an example of
a. stare decisis.
b. the bystander rule.
c. statutory law.
d. enabling legislation.
Which of the following is TRUE about Affirmative Action?
a. Affirmative action is required by Title VII.
b. Affirmative action is prohibited by Title VII.
c. Affirmative action is allowed in goverment contracts if it can show the programs are
needed to overcome specific past discrimination.
d. Affirmative action programs are usually voluntary on the part of employers, since
courts have no power to order remedies for past discrimination.
In Delaware, lawsuits involving corporations are tried in a special court called
a. corporate court.
b. CEOs court.
c. common court.
d. chancery court.
On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell $10,000 in
restaurant supplies. On January 18, Hylavian mailed a letter to Quastrar accepting the
offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar
sent a letter revoking the offer. Hylavian received this letter on January A contract
between Quastrar and Hylavian
a. was not formed because the revocation was effective before the acceptance was sent.
b. was not formed because the revocation was effective before the acceptance was
received.
c. was formed on January 18.
d. was formed on January 20.
The Federal sentencing guidelines are just guidelines. Judges do not have to follow
them.
a. True
b. False
A civil case generally proceeds as follows:
a. answer, complaint, discovery, trial, verdict.
b. complaint, answer, trial, discovery, verdict.
c. complaint, answer, discovery, trial, verdict.
d. discovery, complaint, answer, trial, verdict.
Shirley Rhone suffered injuries when a truck struck the vehicle in which she was riding.
State Auto Mutual Insurance Co. was the insurer involved and provided personal injury
coverage. Shirley went to see Dr. Allen, a chiropractor who provided treatments 32
times over a 3-month period. Dr. Allen billed State Auto in three separate billings. After
paying the first two billings in full, State Auto expressed concern about whether Dr.
Allen's charges were excessive. State Auto hired Chiropractic Consultants, Inc. to
evaluate Dr. Allen's billings. The consultants advised that Dr. Allen's billings were
indeed excessive. State Auto then telephoned Dr. Allen and offered a partial payment to
settle the account. After this conversation, State Auto issued and sent a check for $864
payable to Dr. Allen. On the face of the check, State Auto noted the total amount
allocated to each claim and typed 'settlement in full." On the reverse side it said, "The
endorsement of this draft by the payee constitutes a clear release and full settlement of
the claim or account shown on the other side." Upon receipt of the check, Dr. Allen
cashed the check. He then sought payment of an additional $895. State Auto claims
there was an accord and satisfaction with respect to the amount due for services
rendered by Dr. Allen. What are the requirements of an accord and satisfaction? Were
those requirements met in this case?
Define discovery, and identify and explain five of the most important forms of
discovery.
Explain what the General Agreement on Tariffs and Trade (GATT) is and give pro and
con arguments concerning this agreement.
A principal is bound by contracts that an agent enters into with authority. Discuss the
various types of contractual authority an agent may have.
What are three general defenses an employer can raise if sued for violating Title VII of
the Civil Rights Act?
Herb was interviewed for a job on Wednesday. The employer orally offered Herb a job
right on the spot. Herb orally agreed to start working the following Monday, to be
employed from that Monday, for one year thereafter. Three weeks after starting the job
Herb was fired without cause and replaced by the employer's friend. Will Herb be
successful in an action brought against the employer for breach of contract?
Sandra and Joe own a hobby farm as tenants in common. They also own a vacation
home as joint tenants. What is the difference between the tenancy in common and joint
tenancy?
List and discuss the elements necessary to establish negligence.
When a party to a contract fails to fulfill all of her promises, she has breached the
contract. What will a court look at in responding to a breach of contract?
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?
Marcy and Elliot are both sophisticated merchants who deal in diamonds. Marcy
contracted to purchase a diamond for $20,000. The day after the purchase, Marcy took
the diamond to a jeweler's show but the highest offer for the diamond was only
$10,000. Is Marcy's contract for purchase of the diamond for $20,000 unconscionable?
List and explain the five different ways to discharge an instrument according to Article
3 of the UCC.
Identify and discuss the primary sources of contemporary U.S. law.
Reed, a 15-year-old, has run out of money while on a trip away from home. Martha
gives him food, a place to sleep, and his bus fare home, in exchange for Reed's promise
to pay $200 after he got home. Is Reed's promise enforceable?
What are Life Principles and what should one consider when developing his or her own
Life Principles?
What accommodations might an employer be expected to make for a disabled
employee? What standard is used to determine whether an employer would be expected
to make these accommodations?
Discuss the purpose of and problems with the Kyoto Protocol from the perspective of
the United States.
Misha, Gretchen, and Sam were stranded on a mountainside after their plane went down
in a snow storm. They had no means of radio communication and virtually no food or
other supplies. After 18 days, Misha and Gretchen killed Sam, the weakest survivor.
Misha and Gretchen ate Sam. This allowed them to survive until they were rescued.
After they were rescued, they were charged with premeditated first degree murder
under the relevant state statute. Discuss the three schools of jurisprudence and how each
would influence a finding of guilt or innocence for the three charged.
Tim received a letter from his state college stating that he had been expelled from the
school. The letter stated his finance professor reported him to the Dean's office for
cheating and that a committee had decided to expel him. He was reminded in the letter
he had been disciplined earlier that same year for plagiarizing a term paper. Tim
believes his due process rights have been violated by the college. Discuss what factors
should be considered to determine the validity of Tim's claim.
