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Appendix C for Unit Three
Questions on the Features
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
CHAPTER 9—INSIGHT INTO ETHICS:
CAN A COMPANY THAT SPONSORS A CONTEST CHANGE THE PRIZE FROM
WHAT IT ORIGINALLY OFFERED?
1. Arnold enters a Bunco tournament hosted by Bunco Players Association
(BPA). During the event, Arnold signs an agreement that stipulates BPA will
pay all of the winner’s fees and expenses to attend the Bunco World Games,
but if the winner does not attend, he or she agrees to repay the funds. Arnold
wins and BPA pays his expenses, but he does not go to the World Games. In
BPA’s suit to recover the expended funds, a court is most likely to rule that the
agreement is
a. an invalid modification of the tournament contract between Arnold and
BPA.
b. binding to the extent that the parties “split the difference.”
c. not binding because it was signed “during the event.”
d. binding and Arnold must repay the funds.
CHAPTER 10—INSIGHT INTO SOCIAL MEDIA:
“CATFISHING”: IS THAT ONLINE “FRIEND” WHO YOU THINK IT IS?
2. Evita pretends to be “Faith” online, fooling Garth into believing that Faith is his
friend. When Garth learns the truth, he is embarrassed and feels humiliated.
But he cannot recover damages because he cannot prove an actual injury,
which is a requirement for recovery in these circumstances on the ground of
a. mistake.
b. fraudulent misrepresentation.
c. undue influence
d. unconscionability.
CHAPTER 11—INSIGHT INTO E-COMMERCE:
TAXING WEB PURCHASES
3. Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel,
a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to
consumers at a retail rate. One recent effort by cities to collect taxes from e-
commerce has focused on
a. hotels that sell blocks of rooms at wholesale rates.
b. non-resident consumers who reserve rooms in in-state hotels.
c. online travel companies.
d. the dire financial straits of the cities during the latest recession.
APPENDIX C FOR UNIT THREE 3
CHAPTER 13—INSIGHT INTO ETHICS:
WARNING LABELS FOR VIDEO GAMES
4. 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.
CHAPTER 14—INSIGHT INTO THE GLOBAL ENVIRONMENT:
IS IT LEGAL TO RESELL TEXTBOOKS PURCHASED ABROAD?
5. Nguyen has her family buy and ship textbooks legally produced in Vietnam to
her for resale in the United States. The U.S. owners of the copyrights on the
items file a suit against Nguyen, alleging infringement. Applying a decision of
the United State Supreme Court in a similar case, the court in this case is most
likely to rule in favor of Nguyen on the basis that
a. U.S. copyright law does not apply to works that are made outside the
United States.
b. Nguyen offered “good” prices for the books.
c. Nguyen imported the books “with the authority of the owner” (her family).
d. the first sale doctrine applies in these circumstances.
4 TEST BANK—UNIT THREE: THE COMMERCIAL ENVIRONMENT
CHAPTER 16—INSIGHT INTO SOCIAL MEDIA:
LIVE CHATTING WITH YOUR STATE’S BANKRUPTCY COURT
6. The U.S. Bankruptcy Court for the District of Arizona uses online live chatting
as part of a strategic initiative to educate the public about bankruptcy. Those
who have used the live chat services include
a. individuals interested in filing for bankruptcy without an attorney.
b. paralegals.
c. real estate lawyers who have expanded into bankruptcy law.
d. all of the choices.
UNIT THREE—FOCUS ON ETHICS:
ETHICS AND THE COMMERCIAL ENVIRONMENT
7. Gladys enters into a contract with Hydraulic Fracturing, Inc., for a sale of the oil
beneath Gladys’s land for a fraction of the value of the oil and the cost to
restore the land after the oil is extracted. 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.
APPENDIX C FOR UNIT THREE 5
8. To complain about Discount Retail Corporation’s products, Edsel opens a Web
site with the domain name “discountretailcorporationsucks.com.” Discount
Retail files a suit against Edsel. If the court rules in the defendant’s favor, it will
most likely be on the basis of
a. a likelihood of confusion.
b. a right to privacy.
c. the freedom of speech.
d. trademark law.
