LWB 30073 | Course Paper

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A contract is ______________ if one or both of the parties, without breaching the

contract, have the ability to either withdraw from the contract or enforce it.

A. Voidable

B. Executory

C. Implied

D. Executed

E. Void

Which of the following is a promise made by a bank to pay a payee a certain amount of

money at a future time?

A. A note

B. A draft

C. A novation

D. A check

E. A certificate of deposit

Which of the following is true regarding payment and the place for delivery if those

terms are left open under the UCC?

A. There is no contract if these terms are omitted.

B. If payment terms are omitted, payment is due at the time and place at which the

buyer is to receive the goods, and the place for delivery is the seller’s place of business.

C. If payment terms are omitted, payment is due at the time and place at which the

buyer is to receive the goods, and the place for delivery is the buyer’s place of business.

D. If payment terms are omitted, payment is due at least 10 days prior to the date set for

delivery, and the place for delivery is the seller’s place of business.

E. If payment terms are omitted, payment is due at least 10 days prior to the date set for

delivery, and the place for delivery is the buyer’s place of business.

What has the U.S. Supreme Court held regarding whether U.S. courts must rely on

customary international law?

A. The U.S. Supreme Court has held that U.S. courts may disregard customary

international law.

B. The U.S. Supreme Court has held that even if a governing international agreement

says otherwise, a U.S. court must rely on customary international law.

C. The U.S. Supreme Court has held that even if a controlling executive act is to the

contrary, U.S. courts must rely on customary international law.

D. The U.S. Supreme Court has held that regardless of the existence of any legislative

act to the contrary, U.S. courts must rely on customary international law.

E. The U.S. Supreme Court has held that in the absence of a governing international

agreement or controlling executive or legislative act or judicial decision, U.S. courts

must rely on customary international law.

Which of the following is not a real defense to enforcement of a negotiable instrument?

A. Infancy (being below the legal age of consent), to the extent that it makes a contract

void

B. Discharge through insolvency proceedings (bankruptcy)

C. Forgery

D. Impairment of collateral

E. Fraud in the factum

Which of the following is generally true regarding a storekeeper who detains a

suspected shoplifter?

A. There is no special rule for shopkeepers. Shopkeepers commit the tort of false

imprisonment if they detain anyone even if that person is suspected of shoplifting.

Instead, the police should be called.

B. When a retailer has a reason to believe that a person is guilty of shoplifting, the store

may question the person about said shoplifting in a reasonable manner and for a

reasonable length of time.

C. Whenever a retailer has a reason to believe that a person is guilty of shoplifting, the

store may detain the person for any length of time but may not ask any questions prior

to the arrival of the police.

D. The shopkeeper may detain the shoplifter only for a reasonable length of time but

may not ask any questions prior to the arrival of the police.

E. The shopkeeper may detain a shoplifter but for no longer than 20 minutes because by

law it is assumed that it should take no longer than that amount of time for law

enforcement officers to arrive.

Which of the following is true regarding state rights in relation to the UCC?

A. Because the UCC is a federal law, states have no rights to change it.

B. Each state is allowed to rewrite parts of the UCC to reflect the wishes of its state

legislature.

C. States must adopt the UCC in full or not at all.

D. State legislatures may make changes to Article 2 of the UCC but not to any other

articles.

E. State legislatures may make changes to Article 2(A) of the UCC but not to any other

articles.

“Missed Payments.” Robin, who loved water sports and relaxing in hot tubs, purchased

a hot tub on an installment plan and was to pay the seller monthly. Her last payment

was made on January 2, 2008. After several attempts at collection, the seller brought a

lawsuit against her for sums remaining on the account on January 3, 2013. Robin

defended on the basis that the statute of limitations had run. The seller claimed,

however, that adequate time remained because the UCC applies a flexible statute of

limitations; and, at any rate, sellers have at least five years in which to sue. Robin also

arranged to purchase a personal watercraft. By contract with the seller, Robin was to

pay an initial deposit within 10 days of the sale at which point she could take

possession of the watercraft making monthly payments thereafter. Recognizing that a

personal watercraft would not allow her to invite all her friends on lake trips, a couple

of days after purchasing the personal watercraft, Robin purchased a pontoon boat.

Because the seller of the pontoon boat demanded cash, Robin paid the total sales price

prior to delivery. Unfortunately, when the pontoon boat was delivered, Robin found that

it had a less powerful motor than the seller represented. Robin notified the seller of the

problem, but the seller claimed to have no obligation to remedy the problem. Although

recognizing that she paid too much for it, Robin decided that since lake season was

underway, she would keep the pontoon boat. Because Robin paid full price for the

pontoon boat, she was unable to pay within 10 days the deposit on the personal

watercraft. The seller refused to deliver the watercraft, and sold it to another customer.

Robin informed the seller that the refusal to deliver the watercraft was wrongful and

that she was going to exercise her right to cover.

Which of the following is true regarding any right to “cover” in regard to a buyer’s

rights under the UCC?

A. The UCC does not recognize any concept called a right to cover.

B. The UCC recognizes that sellers have a right to cover and find substitute buyers in

the event of a breach of contract.

C. The UCC recognizes the right of cover in regard to the right of sellers to cover

transactions involving installment sales with financing statements.

D. The UCC recognizes the right of buyers to cover, or substitute, goods for those due

under a sales agreement.

E. The UCC recognizes the right of sellers to resell goods to other buyers in order to

cover contractual obligations.

The parties’ discharge of their obligations by doing what they respectively agreed to do

under the terms of the contract is called ____.

A. Discharge by tender

B. Discharge by performance

C. Discharge by finishing

D. Discharge by absolution

E. Discharge by reason

Which of the following occurs if a tenant moves out of leased premises before the end

of the term, has no intent to return, and had defaulted on rent payments?

A. Forfeiture

B. Negation

C. Surrender

D. Refusal

E. Abandonment

“Beauty Shop Woes.” When Janice went to work as a hair stylist in Rick’s beauty shop,

she entered into an agreement with Rick whereby if she left she would not work for

another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new

techniques. After nine months, Janice was offered a great job down the street at a new

beauty shop, she quit Rick, and had a number of customers follow her down the street

to her new job. Rick claimed that she had signed a contract and had no right to go to

work at the new shop. Janice disagreed and told Rick that no judge in the country would

enforce such an agreement. Janice told Rick that she was more worried about a

customer who was threatening to sue her because her hair turned green after Janice

worked on it. Janice said that she knew that the customer’s hair was damaged; but that

she told the customer that odd results could result from a dye attempt, and had her sign

a contract that she released Janice from all liability and would not sue. The customer,

however, sued anyway.

Which of the following is true regarding Janice’s claim that no judge in the country

would enforce such an agreement?

A. She is correct because such agreements are considered in restraint of trade in every

state.

B. She is incorrect because such agreements are criminally illegal in every state.

C. She is incorrect because while no court would approve a geographical restriction,

some courts recognize time restrictions as being valid.

D. She is incorrect because all courts approve such agreements so long as it can be

shown the employee gained a benefit other than pay from the employment.

E. She is incorrect because courts across the country vary in regards to the

enforceability of such agreements.

A ______ corporation is a corporation created by the government to help administer

law.

A. Public

B. Private

C. Closely held

D. Domestic

E. Publicly held

“Hot Dress.” Doreen writes a check for a dress to Hot Dresses Inc., a small specialty

shop whose shares are owned primarily by Betty. Betty decided to go on an extended

European vacation and temporarily closed down the shop the day after Doreen wrote

the check. When Betty returned, she had a number of other things to do and did not take

Doreen’s check and some other checks to the bank for three months. Betty was

independently wealthy and only ran the shop as a hobby, so she had not been in need of

funds. When Betty finally took Doreen’s check to the bank, Betty requested that her

bank, ABC Bank, deposit the check into her account. When ABC Bank, however,

requested payment from Doreen’s bank, XYZ Bank, the check was dishonored because

of insufficient funds in Doreen’s account. Although Betty did not particularly need the

funds, she did not like to feel as if she had been cheated; therefore, she demanded that

Doreen make the check good.

As defined in the UCC, under which of the following circumstances would presentment

have occurred?

A. When Doreen presented the check to Hot Dresses Inc.

B. When Betty took the check to ABC Bank.

C. When ABC Bank requested payment from XYZ Bank.

D. When XYZ Bank notified Betty that it would not pay based upon insufficient funds.

E. When Betty requested that Doreen make the check good.

Today’s law of contracts originated from judicial decisions in ______.

A. France

B. Italy

C. Spain

D. England

E. Switzerland

Under which of the following type of damages do the parties specify in advance the

damages if there is a particular kind of breach?

A. Consequential

B. Punitive

C. Liquidated

D. Nominal

E. Repugnant

“Sexual harassment ADR.” Jenny works at the Mexican fast-food restaurant which is

owned by an international company located in Mexico. Jenny is very angry with her

supervisor, Sleaze, as he has been making inappropriate sexual comments to her and

other employees. Jenny decides to sue and retains a lawyer, Brice. Brice talks with the

owners of the restaurant and is informed that Jenny signed an agreement to mediate and

also to arbitrate any claims. Jenny informed Brice about other employees who entered

into such agreements and later complained of harassment. Brice promises her that under

federal law, he is legally entitled to get copies of all documents used during any other

mediations and arbitrations and that he is also entitled to get detailed information

regarding what was said and agreed upon by them. Brice also tells Jenny that, while he

is not going to bring it up now, if they so choose, Brice and Jenny can avoid the

arbitration agreement because under a new federal law, such agreements cannot be

enforced if one of the companies involved is internationally based. He also tells Jenny

in response to her question about the possibility of mediation in her case to forget it

because mediation is pretty much the same thing as arbitration. Brice tells Jenny that an

option is to arbitrate and, if the outcome is bad at arbitration, file a court action in

federal court. Brice says that the federal court judge would not consider an arbitrator’s

decision in making a determination.

Assuming that Uniform Mediation Act provisions and the Federal Arbitration Act apply,

can Brice obtain information regarding what occurred at previous mediations and

arbitrations?

A. Under federal law, Brice is entitled to all documents introduced at both mediations

and arbitrations, and he can also get copies of statements, but only for proceedings at

which a court reporter was present.

B. Under federal law, in regard to mediations, Brice can get copies of any written

documents reviewed but not accounts of statements; and he cannot get any information

regarding previous arbitrations.

C. Under federal law, Brice can get accounts of statements but not copies of written

documents in regard to both mediations and arbitrations.

D. Under federal law, Brice can get copies of documents but not accounts of statements

in regard to both mediations and arbitrations.

E. Federal law does not entitle Brice to any information from previous mediations or

arbitrations.

Who calls the creditors’ meeting in a Chapter 7 proceeding?

A. The trustee

B. The interim trustee

C. The bankruptcy judge

D. The district court judge

E. At least three of the creditors

Which of the following references shares that have a fixed face value noted on the stock

certificate?

A. No par-value shares

B. Par-value shares

C. Watered stock

D. Valued stock

E. No-valued stock

Milly’s best friend and roommate, Sarah, is getting ready for a big date. Sarah had her

hair and nails done, bought a new dress, and spent two hours getting ready. Just as

Milly sees Sarah’s date coming down the street, Sarah comes out and asks Milly how

she looks. Unfortunately, the stylist did a terrible job, the nails are an odd shade of

purple, and the new dress is extremely unflattering. Sarah has no time to change.

Discuss what Milly would say and why under the following principles:

(a). Deontology

(b). Act utilitarianism

(c). Rule utilitarianism

(d). Virtue ethics

Which of the following may be sued in product liability actions?

A. Retailers, wholesalers, and manufacturers.

B. Retailers and wholesalers but not manufacturers.

C. Wholesalers and manufacturers but not retailers.

D. Retailers and manufacturers but not wholesalers.

E. Manufacturers but not retailers or wholesalers.

Which of the following must occur for a drawer to become liable on a check?

A. The only requirement is that the holder of the instrument present the instrument to

the drawer in a proper and timely fashion.

B. The only requirement is that the holder of the instrument present the instrument to

the drawee in a proper and timely fashion.

C. The two requirements are that (1) the holder of the instrument present the instrument

to the drawer in a proper and timely fashion and (2) the holder establish that the check

was wrongfully dishonored.

D. The three requirements are that (1) the holder of the instrument present the

instrument to the drawee in a proper and timely fashion, (2) the instrument be

dishonored, and (3) notice of the dishonor be given to the drawer.

E. The four requirements are that (1) the holder of the instrument present the instrument

to the drawee in a proper and timely fashion, (2) the instrument be dishonored, (3)

notice of the dishonor be given to the drawer, and (4) proof provided by the holder that

the check was wrongfully dishonored.

What was the ruling of the court in the case of Welge v. Planters Lifesavers Co., the

case in which the plaintiff injured his hand when a jar containing peanuts broke?

A. That the case would be dismissed because the plaintiff could not establish that the jar

was maintained in a pristine condition after its purchase.

B. That the plaintiff was unable to recover because negligence in manufacture of the jar

could not be established.

C. That the plaintiff was unable to recover because he was not the actual purchaser of

the jar of peanuts.

D. That the plaintiff would be allowed to proceed because negligence was established.

E. That the plaintiff would be allowed to proceed with the lawsuit because of a lack of

evidence that the jar had been damaged after its purchase.

Which of the following is land and everything permanently attached to it?

A. Real property

B. Personal property

C. Absolute property

D. Listed property

E. Fee property

“Coffee shops.” Bernice wants to open a chain of coffee shops but needs some

investors. Her friend Robbie tells Bernice that she should be sure that she satisfies

requirements of the SEC. Robbie tells her that she has to provide information to the

SEC involving a description of the securities, an explanation of how proceeds will be

used, information regarding the management of the company and other matters. He tells

her that she also has to provide a document to the SEC that will be provided as an

advertising tool to potential investors who can rely on it to decide whether they should

buy the securities. Bernice says that she does not want to do that. She explains to

Robbie that insofar as the coffee shop venture is concerned, she does not want to

advertise; and she wants to offer securities only to a limited number of wealthy friends.

Particularly, she has in mind Scott who has a net worth of at least $3 million.

Which of the following is the term for the document referenced by Robbie involving

information provided to the SEC involving a description of the securities, an

explanation of how proceeds will be used, information regarding the management of the

company and other matters?

A. Robbie was wrong, and there is no such document.

B. A confirmation statement.

C. A registration statement.

D. An acknowledgement statement.

E. A reference statement.

Any tenant conduct that causes permanent and substantial injury to the landlord’s

property is considered _____.

A. Trash

B. Waste

C. Negligence

D. Substantial

E. Imperative

The UCC defines an instrument “payable on demand” as one that ____.

A. States that it is payable on demand or at sight, or that it is payable 20 days after

presentment

B. States that it is payable 30 days after presentment

C. Is payable within 10 days after presentment

D. States that it is payable on demand or at sight or otherwise indicates that it is payable

at the will of the holder, or does not state any time of payment

E. States that it is payable on demand or at sight or otherwise indicates that it is payable

at the will of the holder; does not state any time of payment; or is payable within ten

days after presentment

A[n] ______ eviction occurs when a landlord physically prevents a tenant from entering

leased premises.

A. True

B. Actual

C. Constructive

D. Absolute

E. Legal

Which of the following is false regarding express warranties?

A. They may be part of a brochure.

B. They may not arise from a salesperson’s oral promise.

C. A sample may provide an express warranty.

D. They may be part of a written sales or lease contract.

E. A model may provide an express warranty.

“Fish Fiasco.” Matt agreed to be a limited partner in Susie and Bill’s business of

importing tropical fish. Susie and Bill were general partners. Matt contributed $10,000

to the partnership as his capital contribution. The partnership made a profit of $30,000

the first year. Matt was paid nothing. When he inquired, Susie told him that a limited

partner was only entitled to a share of profits as approved by the general partners and

that perhaps things would be better the next year. The next year, however, importation

was banned because of a fish disease, and the partnership lost money and owed debts of

$60,000. At the end of the year, Susie and Bill asked Matt to contribute $20,000 to

cover the debts. When Matt complained about the amount, Bill told him that he and

Susie were being overly reasonable and that he was legally liable for an even larger

percentage. In an attempt to keep the business afloat, Matt told Susie and Bill that they

should consider suing a customer who had not paid a large account. Susie and Bill

replied, however, that they were morally opposed to lawsuits and that they had the final

say on litigation.

Which of the following is true regarding any responsibility of Matt to share in losses?

A. Matt assumed no liability for the partnership beyond the capital he invested.

B. Matt has a legal obligation to share equally in losses with the general partners.

C. Matt would be responsible for one-half of any losses with the two general partners

having liability for the other half.

D. Matt has no liability for losses at all.

E. Matt has liability for losses only if the general partners are insolvent.

Unless the articles of partnership states otherwise, which of the following is true

regarding the rights of partners to share in the management of a partnership?

A. All partners have a right to participate equally in the management of the partnership.

B. Partners share in management in proportion to the amount of capital contributed to

the partnership.

C. Partners share in management in proportion to the amount of work done for the

partnership.

D. Partners share in management in proportion to their seniority with the partnership

with partners of equal seniority sharing equally in management.

E. Rights to management are suspended until the partners amend the articles of

partnership to address management rights.

Which of the following may a person accused of defamation raise as a defense?

A. Truth but not privilege.

B. Privilege but not truth.

C. Need and truth.

D. Need, truth and privilege.

E. Truth and privilege.

“Not So Slick Trucker.” Slick had a trucking business and advertised that he would

transport “anything.” One day Sleazy Corporation asked him to transport some

hazardous waste and dump it on a farm telling him that, by the way, he should be

careful about touching any of the waste. A friend of Slick’s asked him if he should

check to see if Sleazy Corporation had the proper permits. Slick replied that he was

unconcerned about permits for dumping because he was a mere transporter. A few years

later, federal investigators operating on a tip from someone Slick had cheated in a poker

game, discovered the farm. The material at issue consisted of a pile of hazardous waste

dumped by Slick. The waste was removed; soil was cleaned; and the action, resulting in

a permanent solution, was complete within 6 months. The government requested that

Slick cover the clean-up costs. He refused on the basis that he was simply a trucker and

did not make the waste.

Which of the following is the act passed by Congress for purposes including cleaning

up hazardous sites, such as the farm on which Slick dumped the hazardous waste?

A. The Hazardous Waste Act

B. The Comprehensive Waste Clean-Up Act

C. The Comprehensive Environmental Response, Compensation and Liability Act

D. The Hazardous Discovery, Remediation and Clean-Up Act

E. The Remedial Hazardous Material Act

Which of the following was in Leoff v. S&J Land Co., the case in the text involving a

land dispute and whether a partnership existed?

A. The appellate court upheld the lower court’s decision that a partnership between the

parties existed because the agreement between the parties provided for the sharing of

profits and losses.

B. The appellate court upheld the lower court’s decision that no partnership existed

because, while the parties had an agreement regarding management, no partnership

agreement existed.

C. The appellate court upheld the lower court’s decision that a partnership existed

because the parties were involved in a type of joint venture.

D. The appellate court reversed the lower court’s decision that a partnership existed

because the plaintiff had never judicially admitted the existence of a partnership.

E. The appellate court reversed the lower court’s decision that no partnership existed

because by completing a dissociation, the defendant admitted the existence of a

partnership.

Which of the following is a claim to property by implication of law rather than statute?

A. Broker’s lien

B. Common law lien

C. Consummate lien

D. Possessory lien

E. Vendor’s lien