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1. GPS Devices Inc. sponsors a “Finders Keepers!” contest in which Erwin
and other entrants agree to race to certain locales to win small prizes
and collect clues that lead to the “Grand Lost Treasure,” which the first
finder will be awarded. GPS reserves the right to cancel the contest or
change its terms at any time. If Erwin challenges this reservation in
court, the court will most likely hold that GPS 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 small prizes but not the grand prize.
d. reduce the amount of the grand prize but not the small prizes.
1. Leticia contracts with Mariana to sell land that, unknown to either party,
has groundwater contaminated from adjacent land that was occupied several
decades earlier by a chemical manufacturing plant. When this is discovered,
Leticia asserts the doctrine of commercial impracticability. This doctrine
applies only when, with respect to an event that renders performance
impossible, at the time the contract was formed the parties
a. could not have reasonably foreseen the supervening event.
b. could have reasonably foreseen the supervening event.
c. should have foreseen the supervening event, reasonable or not.
d. should not have foreseen any supervening events.
1. Jaime, a cocoa bean farmer in Columbia, forms an alliance with Irwin,
an importer and marketer in the United States. Their products carry a
Fair Trade label. This means that Jaime
a. accepts whatever price for his products that the market will bear.
b. receives a stable minimum price for his products.
c. employs forced labor at a fair price whenever possible.
d. produces crops as cheaply as possible to keep his prices
minimal.
1. Michigan and many other states have set limits on the amount of
general noneconomic damages that can be awarded in tort cases.
Noneconomic damages include damages for
a. disfigurement.
b. lost income.
c. medical expenses.
d. property damage.
1. New York enacts a statute that requires a label on a video game to
warn parents when “the range of options available to a player include
dismembering or sexually assaulting the image of a human being.” On
appeal from a challenge by gamemakers, the state asks a federal court
to enforce the statute. Based on the decisions of other federal courts in
cases involving similar statutes, the court in this case is most likely to
a. refuse to extend restrictions on sex-based content to violence in
video games.
b. expand the label’s warning to include other forms of violence.
c. impose market-share liability on makers of violent video games.
d. replace the voluntary rating system currently in use.
1. The Anti-Counterfeiting Trade Agreement is most likely to apply to
a. pirated copyrighted works distributed via the Internet.
b. personal financial information on its owner’s laptop.
c. legally downloaded recordings on a user’s iPod.
d. a business firm’s trade secrets cached on the firm’s server.
1. Orly’s debts are discharged in a liquidation bankruptcy. Pester &
Recover, Inc., buys the discharged debt obligations. With respect to
these debts, Pester
a. can do nothing.
b. can pressure Orly into paying them.
c. must give Orly additional help to rebuild her life after the
discharge.
d. must report the debts to credit reporting agencies as
“discharged.”
1. Ray and Strip Mines, Inc., enter into a contract for a sale of the coal
beneath Ray’s land for a fraction of the value of the coal and the cost to re-
store the land. A court is most likely to determine that this deal is unfair
under
a. the concept of unconscionability.
b. the doctrine of promissory estoppel.
c. the principle of freedom of contract.
d. the Statute of Frauds.
1. Movies, Inc. (MI), releases on DVD Nothing to Hide, a film focusing
on the lack of privacy in cyberspace. Owen posts online computer code
that cracks the DVD’s encryption, allowing users to make unauthorized
copies. MI files a suit against Owen. The court is most likely to rule
that
a. computer code is a form of “pure speech.”
b. the First Amendment completely protects computer code.
c. the First Amendment does not apply to computer code.
d. the First Amendment protects computer code to a lesser extent.
