1) Given today’s global communications network, most companies can assume that
their actions in other nations will go unnoticed.
2) Any federal, state, or local affirmative action program that uses racial or ethnic
classifications as the basis for making decisions is subject to strict scrutiny by the
courts.
3) An insurance company may cancel an insured’s policy for any reason and at any
time.
4) Under the U.S. Constitution, the judicial branch interprets the laws.
5) In general, an illegal contract is void.
6) Employers can monitor employees ‘ electronic communications made in the ordinary
course of business, including employees ‘ personal communications.
7) A recording statute allows deeds to be recorded to give notice to the public.
8) When you download an application on your smartphone, you are typically entering
into a license agreement.
9) For an insurance contract to be binding, consideration in the form of a premium must
be given.
10) A valid will is one that represents the maker’s intention to transfer and distribute his
or her property.
11) Tort law provides remedies for acts that cause personal injury but not for acts that
interfere with physical security.
12) Misstatements or misrepresentations in an application for insurance can affect the
amount of a premium but cannot void a policy.
13) To gain authorization for hiring a foreign worker, an employer must show that no
U.S. Worker is qualified, willing, and able to take the job.
14) Jonah tells Levi he will give him an Xbox if Levi does Jonah’s chores for a month.
Levi promises to do the chores. Jonah and Levi have formed a
a.a bilateral contract.
b.a formal contract.
c.a unilateral contract.
d.no contract.
15) 1.North Carolina 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.” In a challenge to the statute by game
makers, the state asks a federal court to enforce the statute. The state fails to show that
the statute is justified by a compelling government interest or that it is narrowly tailored
to serve that interest. The court is most likely to
a.hold that the statute is unconstitutional and refuse to enforce it.
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.
16) Kurt writes a check on his account at Liquidity Bank to Mandy, a famous singer.
The person claiming to be Mandy is an imposter, however, named Nila. Nila indorses
the check to Outsize Portions, a casino, restaurant, and nightclub, for which Liquidity
Bank cashes it. Ultimately, the loss will most likely fall on
a.Kurt.
b.Liquidity Bank.
c.Mandy.
d.Outsize Portions.
17) BBQ, Inc., makes and sells grills to Cook’s Choice and Grill Mart, retailers of
kitchen appliances, outdoor cooking equipment, and related utensils. Their contracts
limit consequential damages when the loss is commercial in nature. This is prima facie
unconscionable with respect to
a.BBQ.
b.Grill Mart.
c.Cook’s Choice.
d.none of these parties.
18) Sweetwater Caf© defaults on debts to Town & Country Bank and Uno Loan
Company. Town & Country perfected its security interest before Uno. Town & Country
takes possession of the collateral in which it has a security interest. On a sale of the
collateral, the proceeds will be applied first to
a.Sweetwater’s previous payments on the debts.
b.Sweetwater’s unpaid payments on the debts.
c.the balance of Sweetwater’s debt to Town & Country.
d.the balance of Sweetwater’s debt to Uno.
19) Rafe obtains a fire insurance policy on his vacation cabin near Smoky Mountain
from Torchlight Insurance Company. The cabin is lost in a fire, but the parties dispute
the amount of Torchlight’s liability under an ambiguous clause in the policy. A court
would most likely
a.interpret the clause against Rafe.
b.interpret the clause against Torchlight.
c.rewrite the clause and apply it as rewritten.
d.strike the clause from the policy.
20) Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal
land. For this action, an environmental impact statement is
a.prohibited.
b.required.
c.unnecessary.
d.voluntary.
21) Via the Internet, Porcio sabotages the computer system of Quik Chik’n Company, a
fast-food restaurant operator, to alter the ingredients in the company’s recipes and
products so that consumers of the foods become ill. Porcio is a
a.cyberterrorist.
b.botnet.
c.virus.
d.worm.
22) Rochelle, an accountant, enters into a contract to provide services to Sky Transport
Inc. Rochelle does not finish the work within the contract′s deadline. Sky Transport
pays a penalty for the missed deadline and hires Turbo to complete the job. Rochelle is
most likely liable for
a.nothing.
b.Sky Transport’s penalty and the cost to hire Turbo.
c.Sky Transport’s penalty only.
d.the cost to hire Turbo only.
23) Larry enters into a contract with Motivational Education Services to host a panel
discussion at a sales conference. When the conference is postponed indefinitely, Larry
asks a court to cancel the contract and return the parties to the positions that they held
before its formation. This request involves
a.specific performance.
b.an injunction.
c.rescission.
d.an action that the court cannot order.
24) Nonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from
Piper and sends $1,500 as a down payment. When Nonny sends Piper the rest of the
price, she refuses to ship the collection. Nonny should seek
a.damages.
b.quasi-contractual recovery.
c.rescission.
d.specific performance.
25) Because many products cannot be made entirely safe for all uses, sellers or lessors
are liable only for products that are unreasonably dangerous.
26) The general law of agency does not apply to negotiable instruments.
27) The type of bankruptcy proceeding most commonly used by corporate debtors is the
Chapter 11 reaffirmation.
28) A mini-trial is a private proceeding in which each party€s attorney argues the
party€s case before the other party.
29) Only the United States has created regulations for global Internet transactions.