1. Sports Fit Company sponsors the “$100,000 Game” in which
contestants compete in ten separate athletic events over a period of
weeks. Sports Fit announces that the winner of each event will be
awarded $5,000 with the “Ultimate Champion”—the winner of the most
events—awarded $50,000. If the “$100,000 Game” is treated as a
unilateral contract, Sports Fit can
a. cancel the contest or alter its terms at any time.
b. not modify the terms of the contest after it begins.
c. reduce the amount of the event prizes but not the grand prize.
d. reduce the amount of the grand prize but not the event prizes.
1. Bonnie contracts to deliver a crop of soybeans to Farmers Co-op. A
tornado destroys the crop on her farm. The buyer insists that she deliver by
acquiring soybeans on the open market. She claims that this is prohibitively
expensive. Her best argument against enforcing the contract is
a. frustration of purpose.
b. objective impossibility of performance.
c. anticipatory repudiation.
d. commercial impracticability.
1. Hamidi, a coffee farmer in Kenya, forms an alliance with Guthrie, an
importer and marketer in Ireland. Their products carry a Fair Trade
label. This means that Hamidi
a. accepts whatever price for his products that the market will bear.
b. produces crops with genetically modified organisms.
c. puts children to work whenever possible.
d. uses environmentally sustainable farming methods.
1. California caps noneconomic damages in medical malpractice
cases at $250,000. California and other states hope that such limits will
reduce health-care expenditures by reducing
a. the frequency and severity of medical malpractice claims.
b. the frequency and severity of occurrences of medical negligence.
c. the number of legal and financial personnel, including attorneys.
d. the size of medical staffs, including “nonessential” personnel.
1. Iowa enacts a statute that requires a label on a video game to warn
parents when “the range of options available to a player include killing
and maiming the image of a human being.” Gamemakers file a suit
against the state to block the statute’s enforcement. Based on the
decision of a California court in a case involving a similar statute, the
court in this case is most likely to rule that the statute
a. extends restrictions on sex-based content to violence in video
games.
b. violates the First Amendment’s guarantee of freedom of speech.
c. imposes market-share liability on makers of violent video games.
d. replaces the voluntary rating system currently in use.
1. The Anti-Counterfeiting Trade Agreement is most likely to establish an
international governing body to be
a. subject to the World Intellectual Property Organization.
b. under the auspices of the World Trade Organization.
c. part of the Internet Corporation for Assigned Names and
Numbers.
d. separate and distinct from existing groups.
1. Dale’s debts are discharged in a liquidation bankruptcy. With respect to
Dale’s prebankruptcy debt, Even Stevens Credit Reporting Agency must
automatically report
a. nothing.
b. the debt as “discharged,” except the nondischargeable debt.
c. the debt as “discharged,” including the nondischargeable debt.
d. the debt as “unpaid.”
1. Topographical Engineers, Inc., which is new to its business, offers its
services at less than half their possible market price to United Road
Crew Construction, Inc., which knows the services’ value. United’s
decision to accept the offer without commenting on the price could be
justified by
a. the concept of unconscionability.
b. the doctrine of promissory estoppel.
c. the principle of freedom of contract.
d. the Statute of Frauds.
1. Merchandise Presentation Company enters into a contract with Newt to
perform certain services for a certain price. Newt is later dissatisfied
with what he claims is a low level of service for a high price. Whether
this deal is unconscionable is subject to
a. the interpretation of a court.
b. the opinion of the buyer.
c. the position of the seller.
d. the precise definition in UCC 2–302.