LWB 86248 | Course Paper

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What types of ADR techniques exist in Japan?

A. Compromise and conciliation, but not arbitration

B. Conciliation and arbitration, but not compromise

C. Arbitration, but not compromise or conciliation

D. Compromise, conciliation, and arbitration

E. ADR is outlawed in Japan

Which of the following is true regarding ways by which a party’s contractual

obligations may be discharged?

A. Performance is the only way a party’s contractual obligations may be discharged.

B. The failure of a condition to occur and performance are the only ways a party’s

contractual obligations may be discharged.

C. Operation of law is the only way a party’s contractual obligations may be discharged.

D. Discharge may occur through material breach by one or both parties.

E. Discharge may not occur through the failure of a condition to occur.

A document that outlines the principal-agent relationship that allows an agent to make

medical decisions for a principal who is unable to participate in medical decisions is

called a _____.

A. Living will

B. Health care proxy

C. Medical decision contract

D. Medical agent proxy

E. Living health proxy

Which of the following is movable property that is not attached to land?

A. Real

B. Personal

C. Valued

D. Appraised

E. Substantive

Which of the following are written contracts intended to be the complete and final

representation of the parties’ agreement?

A. Complete contracts

B. Integrated contracts

C. Adhesion contracts

D. Bilateral contracts

E. Acknowledged contracts

What was the result at the federal appellate court level in Trunk v. San Diego, the case

in the text involving whether the presence of a cross on federal land near a Korean War

memorial violated the First Amendment?

A. The court ruled that the presence of the cross violated the First Amendment.

B. The court ruled that the presence of the cross did not violate the First Amendment

because the cross promoted the service of veterans, not a religion.

C. The court ruled that the presence of the cross did not violate the First Amendment

because it was initially erected by private parties and had historical significance.

D. The court ruled that the presence of the cross did not violate the First Amendment

because although it was erected by public authorities, it had historical significance

independent of its governmental ties.

E. The court ruled that the presence of the cross did not violate the First Amendment

because although it did promote a particular religion, that religion was practiced by

large numbers of the surrounding citizens.

Which of the following is another name for debt securities?

A. Stocks

B. Bonds

C. Certificates of deposit

D. Equity securities

E. Preferred debt

How many states engage in at least some regulation of gambling?

A. 50

B. 47

C. 40

D. 35

E. 10

Which of the following was the result in Double Diamond Properties v. BP Products,

the case in the text in which the plaintiff sought a declaratory judgment that a restrictive

covenant prohibiting the purchase of gasoline from any source other than the defendant

was no longer enforceable because the defendant had assigned its right to supply

gasoline to another entity?

A. The court ruled that the covenant remained enforceable because the defendant

continued to provide gasoline on an indirect basis as allowed by the covenant, and the

plaintiff failed to prove other challenges to it.

B. The court ruled that the agreement remained enforceable because the intent of the

parties when entering into the agreement was that the plaintiff receive gasoline only

from the defendant or from an entity of the defendant’s choosing.

C. The court ruled that the covenant was not enforceable because the defendant no

longer supplied the plaintiff with gasoline recognizing that the reference to indirect

sales in the covenant meant merely that the plaintiff had the option to obtain defendant’s

brand of gasoline either from the defendant or indirectly from another supplier.

D. The court ruled that the covenant was not enforceable because it was unreasonable

as to the parties.

E. The court ruled that the covenant was not enforceable because it was injurious to the

public by reason of its effect on gasoline trade in the area.

Which of the following is false regarding the perfect tender rule?

A. In relation to the perfect tender rule, sometimes norms for a particular trade do not

permit a buyer to reject goods with minor flaws.

B. In relation to the perfect tender rule, the UCC requires that courts consider course of

dealing.

C. In relation to the perfect tender rule, the UCC requires that courts consider course of

performance.

D. Parties may by contractual language limit the rigidity of the perfect tender rule.

E. The perfect tender rule is satisfied when material elements of a contract are satisfied

even if some nonmaterial elements may not be satisfied.

“Tutoring Concerns.” Wally and Sally want to go into business together and plan on

offering a tutoring service to high school and college students. Wally proposes that they

share control of the business and split profits equally and not bother with a written

agreement. Sally, however, is concerned about being able to pay their debts since they

will have to rent tutoring space, and purchase computers and supplies. She is also

concerned about parents and students who may sue if their test scores do not improve.

She tells Wally that she just bought a new boat and car, and that she does not want her

assets to be in jeopardy. She tells Wally that they should form a corporation to shield

their personal assets. Wally, however, tells their personal assets are not in danger with

his proposal because they are a business and that, furthermore, forming a corporation

would even result in tax being imposed twice.

What type of arrangement did Wally propose with his suggestion that they share control

of the business and split profits equally, not bothering with a written agreement?

A. A joint sole proprietorship

B. A partnership

C. A corporation

D. An S corporation

E. A limited partnership

Which of the following was the result in the Case Opener, the case in which the

company was found to have generated waste with excessive concentrations of PCBs?

A. That the company had no liability because it had not intentionally generated the

waste.

B. That the company had no liability because it was the responsibility of the federal

government to clean up the waste.

C. That the company had no liability because it was the responsibility of the state

government to clean up the waste.

D. That the company was liable because it failed to monitor in a manner that would

have revealed the waste in a timely manner.

E. That the company was liable under federal law because it failed to clean up the

hazardous area in a timely manner.

“Accidental Sale.” Robby entrusted his automobile to ABC Motors for repair. The

manager of ABC Motors, who did a very poor job with inventory, accidentally sold the

car to Connie. Connie, who paid cash for the car, had no idea that the car did not belong

to ABC Motors and paid fair market value for it. When Robby went to pick up the car,

he was very upset that it was gone. The manager of ABC Motors told him that he was

very sorry, but that his only recourse would be against Connie.

Which of the following is true regarding the manager’s statement that Robby’s only

recourse is against Connie?

A. The manager is correct.

B. The manager is incorrect only if Robby has a writing signed by a representative of

the repair shop guaranteeing the safety of the car.

C. The manager is correct only if Connie can be found.

D. The manager is correct only if Connie’s deal was for less than 10% of the fair market

value of the car.

E. The manager is incorrect, and Robby can sue ABC Motors.

Which of the following is known as a substitute for cash?

A. A negotiable instrument

B. A nonnegotiable instrument

C. A payable document

D. A nonpayable document

E. An endorsed payable document

“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.

The fund, funded primarily by taxes on corporations in industries that create significant

amounts of hazardous waste, and used to handle clean-up of hazardous waste such as

that on the farm is called the ____.

A. Clean-Up fund

B. Hazardous duty fund

C. Superfund

D. Primary payment source

E. Secondary payment source

“Machine Malfunction.” Bruno, the president of a health club operation called ABC

Health Club, convinced the board of directors to approve a large purchase of a type of

fitness machine called “Perfect Body.” Bruno had carefully investigated the machine

and did a presentation to the board on its purported benefits. Unfortunately, after the

purchase, it was announced that “Perfect Body” was actually a very dangerous machine

that should not be used. The manufacturer of “Perfect Body” went bankrupt, and ABC

lost $200,000 on the purchase of the machines. The shareholders are furious and want

to sue Bruno and the directors. In an attempt to appease her, the board of directors

agrees to allow Frances, the ring leader of the shareholders, to purchase stock of the

company at below its fair market value. Frances purchases a considerable amount of

stock on that basis, but says that the shareholders plan to continue with an action

against Bruno and the board members.

Which of the following is true regarding liability of Frances, if any, for purchasing the

stock at below its fair market value?

A. If the board wanted to offer it to her, they had that right, and there is no consequence

to Frances.

B. She is liable for double the stated corporate value of the stock in addition to any

price she already paid.

C. She is liable for the stated corporate value of the stock in addition to any price she

already paid.

D. She is liable for paying the difference between the price she paid for the shares and

the stated corporate value of the shares.

E. She is liable for paying the difference between the price she paid for the shares and

the stated corporate value of the shares plus a $10,000 penalty.

Which of the following is true regarding the use of working papers in negligence cases

involving the accountant’s work?

A. Working papers can be used as evidence in negligence cases.

B. Working papers cannot be used as evidence in negligence cases.

C. Working papers can be used as evidence in negligence cases only if a bank is the

plaintiff.

D. Working papers can be used as evidence in negligence cases only if a non-corporate

plaintiff is involved.

E. Working papers may be used as evidence in negligence cases only if the accountant

failed to provide the client with copies of them.

“Squirt Gun Mishap.” Zora decided to purchase a large squirt gun for her son, Rambo,

to use while playing in the pool. The squirt gun was of the very elaborate variety and

had a number of different attachments for different sprays of water. The squirt gun came

with instructions for assembly and use, and provided warnings against various types of

misuse. The pamphlet that came with the squirt gun advised that the squirt gun should

be used only under adult supervision, that it must not be used by children under eleven,

and that nothing should be put into the squirt gun except water. Rambo had a party for

his tenth birthday at the pool. A number of children came. One of the children, Sam,

who was ten years old at that time, decided to load pebbles along with water into the

gun. He began shooting with the pebbles and hit Alice in the eye, requiring an

emergency room visit. Alice required some minor surgery, but sustained no permanent

injury. Alice’s parents complained that they looked at the squirt gun when they initially

arrived at the party but did not notice any warnings whatsoever affixed directly to the

product. Alice’s parents want to sue someone for something, but they do not particularly

want to sue Rambo’s mother.

Which of the following is true regarding a lawsuit brought by Alice’s parents against the

manufacturer for negligence?

A. Because neither Alice nor her parents were in privity of contract with the seller, no

one other than Rambo’s mother may be sued for negligence.

B. Privity of contract is not necessary in order to sue for negligence so the fact that

neither Alice nor her parents were in privity of contract with the seller would not

prevent a negligence based action.

C. Although privity of contract is not an issue, Alice’s parents would be unable to

prevail in a negligence action because Alice did not sustain permanent physical injury.

D. Although privity of contract is not an issue, Alice’s parents would be unable to

prevail in an action against the manufacturer for negligence because they did not read

the instruction booklet.

E. Alice’s parents would be prohibited from suing the manufacturer because of the

federal law prohibiting lawsuits for failure to warn in cases involving children.

What does the term CIF when used as a shipping term represent?

A. Cost, insurance, and freight

B. Collateral, insurance, and freight

C. Commerce, insurance, and freight

D. Cost, indemnity, and freight

E. Cost, insurance, and flight

Which of the following is a treaty with the purpose of prohibiting the international trade

of endangered plants and animals?

A. The Endangered Species Treaty

B. The International Endangered Plants and Animals Protocol

C. The Endangered Plants and Animals Agreement

D. The Convention on International Trade in Endangered Species

E. The Humane Protection Agreement

Tina, an experienced pool contractor, and Bruce agree on a price for Tina to build a pool

in Bruce’s backyard. Tina discovers that she did not initially figure in enough of a

charge for labor. She tells Bruce that unless she receives an extra $5,000 with which to

hire workers, she cannot complete the job. Bruce agrees thinking to himself that he has

a way out. When Tina finishes the pool, Bruce refuses to pay the additional $5,000.

Which of the following is the most likely result of their dispute?

A. Bruce will be required to pay because a typical, unilateral contract is involved, and

he got the benefit of his bargain.

B. Bruce will be required to pay because a typical, bilateral contract is involved, and he

got the benefit of his bargain.

C. Bruce will be required to pay because unforeseen circumstances are an exception to

the preexisting duty rule.

D. Bruce will not be required to pay because he provided no additional consideration,

and the preexisting duty rule applies.

E. Bruce will only be required to pay ½ of the agreed upon amounts because of the

calculations involved under the preexisting duty rule.

Within the statute of frauds, “land” encompasses not only the land and soil itself but

anything ______ to the land.

A. Relating

B. Adjacent

C. Contracted

D. Attached

E. Pertinent

When a person who makes a misrepresentation has no knowledge about the falsity of

the claim, it is said that the person lacked ____.

A. Information

B. Premeditation

C. Planning

D. Plotting

E. Scienter

An employee’s significant deviation from the employer’s business is often referred to as

a _______.

A. Spree of his own choosing

B. Romp against instruction

C. Leisure against direction

D. Pleasure seeking spree

E. Frolic of his own

Jack went into a hardware store to purchase a saw. He told the salesclerk that he wanted

a saw that would cut through copper tubing. The salesclerk referred Jack to a wall of

saws, and Jack purchased one. What kind of warranty, if any, did the salesclerk make?

A. The salesclerk made an express warranty, a warranty of trade usage, and a warranty

of fitness for a particular purpose.

B. The salesclerk made a warranty of fitness for a particular purpose, but not an express

warranty of a warranty of trade usage.

C. The salesclerk made an express warranty and a warranty of trade usage, but not a

warranty of fitness for a particular purpose.

D. The salesclerk made an express warranty, but not a warranty of fitness for a

particular purpose or a warranty of trade usage.

E. The salesclerk made a warranty of trade usage, but not a warranty of fitness for a

particular purpose or an express warranty.

Which of the following is a type of document of title issued by a person engaged in the

business of transporting goods that verifies receipt of goods for shipment?

A. Warehouse receipt

B. Delivery order

C. Receipt order

D. Negotiable receipt

E. Bill of lading

To which of the following loans does the Truth-in Lending Act apply?

A. Loans to a natural person

B. Loans to a natural person and to a limited partnerships

C. Loans to a natural person, loans to a limited partnership, and loans to a general

partnership

D. Loans to natural person, loans to a limited partnership, loans to a general

partnership, and loans to a corporation

E. All loans

What actions does the UCC provide that a court can take if it discovers that a contract

or lease provision or the contract or lease as a whole is unconscionable?

A. The contract is void.

B. The court can only refuse to enforce the contract or lease in total.

C. The court can only refuse to enforce the parts of the contract or lease that are unfair.

D. The court either can refuse to enforce the contract or lease or can enforce the parts of

the contract or lease that are fair.

E. The court has no power to enforce the lease and must award the innocent party

punitive damages.

A person who creates a trust is knows as a _____.

A. Benefactor

B. Trustor

C. Trustee

D. Settlor

E. Settlee

Which of the following was the result on appeal in Lucy Mydlach v. DaimlerChrysler

Corp., the case in the text involving whether the plaintiff could bring a revocation of

acceptance claim against a vehicle manufacturer and the statute of limitation under the

Magnuson-Moss Act?

A. The court ruled that a revocation of acceptance claim could be brought against a