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Combo with BUL 17 MC and 15 others

STUDY
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McCall and Teresa enter into a contract for the distribution of McCall's produce to local restaurants for which Teresa agrees to pay. McCall transfers his right to payment under the contract to Midtown Bank. This transfer is

a. a delegation.
b. an assignment.
c. a novation.
d. prohibited.
b. an assignment.
Tanya attempts to free herself from the duties of her contract with Drew by telling Drew to find someone else to perform them. This is

a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.
d. none of the choices.
Fitch and Gert enter into a contract for the distribution of Fitch''s produce to local restaurants and wineries for which Fitch agrees to pay Gert. Gert transfers his right to payment under the contract to Honor Bank. This transfer is

a. a delegation.
b. an assignment.
c. an obligato.
d. prohibited.
b. an assignment.
Bret and Cory enter into a contract under which Bret agrees to sell his textbook to Cory for $60 at the end of the fall semester. Bret wants to transfer his right to payment for the book to Del. This transfer

a. is prohibited.
b. may be oral or written.
c. must be implied.
d. must be in writing.
b. may be oral or written.
Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell. Ewell transfers his right to payment under the contract to Flex Construction Company. Flex is

a. a delegatee.
b. an assignee.
c. an obligee.
d. a prohibitee.
b. an assignee.
Nashville Harmonies Inc. and Taylor enter into a contract for Taylor to write six songs for which Nashville agrees to pay her. Taylor transfers her right to payment under the contract to Omni Entertainment Agency. In the transfer of rights, Taylor is

a. a delegator.
b. an assignor.
c. an obligor.
d. an alien.
b. an assignor.
Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000. Uri wants to transfer his right to the ownership of the house to Val, his niece. This transfer

a. is prohibited.
b. may be oral or written.
c. must be implied.
d. must be in writing.
d. must be in writing.
Manny wants to transfer his right to buy $400 of pistachio nuts under a contract with Nila to Opie. To ensure that the transfer of the right is valid, Manny must

a. designate Opie as a "delegate."
b. file a notice of assignment in the public records.
c. tell Nila that he has no right and no liability under the contract.
d. none of the choices.
d. none of the choices.
Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000. Uri wants to transfer his right to the ownership of the house to Val, his niece. This transfer generally

a. cannot be prohibited.
b. cannot be allowed.
c. can be prevented.
d. can be circumvented.
a. cannot be prohibited.
A contract between Drill-Bit Sharpeners, Inc., and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

a. any assignment.
b. no assignment.
c. only an assignment of contract rights to personal services.
d. only an assignment that would change the obligor's risk.
a. any assignment.
Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him. This is

a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. an alienation.
d. an alienation.
Commercial Shipping, Inc., and Dock Services Corporation enter into a contract under which Commercial agrees to pay Dock to load Commercial's trucks. Dock transfers its duty to load the trucks to East Harbor Transport Company. Dock is

a. a delegator.
b. an assignor.
c. a payor.
d. a righter.
a. a delegator.
Miley and Rico enter into a contract for the closing of a sale of Miley's recording studio. When Rico's schedule conflicts, he asks Oliver to perform his duties at the closing. This transfer of duties is

a. a delegation.
b. an assignment.
c. prohibited.
d. a negotiation.
a. a delegation.
Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid. Sid transfers his duty to log the tract under the contract to Timber Logging Company. Timber is

a. a delegatee.
b. an assignee.
c. an obligee.
d. a prohibitee.
a. a delegatee.
Floyd and Grady enter into a contract by which Floyd promises to deliver fer¬tilizer to Grady. Floyd subsequently transfers this duty to Hiram. Floyd is

a. a delegatee and an obligee.
b. a delegatee but not an obligee.
c. a delegator and an obligor.
d. a delegator but not an obligor.
c. a delegator and an obligor.
Reba and Sly enter into a contract by which Reba promises to deliver newly printed marketing brochures to Sly. Reba later transfers her duty under the contract to Troy. Reba is

a. a delegator and an obligor.
b. a delegator only.
c. an obligor only.
d. none of the choices.
a. a delegator and an obligor.
Parsley, a world-famous chef, signs a contract to give lessons in French cooking to Curry. Parsley wants to transfer his duties under the con¬tract to Relish, the operator of a hot dog concession. The transfer is

a. valid because the performance required is of a nonpersonal nature.
b. valid if Relish is a highly regarded vendor.
c. not valid because performance depends on Parsley's personal skills.
d. not valid if Curry does not hold Relish in high regard.
c. not valid because performance depends on Parsley's personal skills.
Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves

a. a right to receive payment.
b. a right to Ben's services.
c. rights under Ivy's insurance policy against Ben's failing to perform.
d. a right whose transfer is otherwise expressly prohibited by statute.
a. a right to receive payment.
Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month. Jocasta can¬not transfer this duty

a. under any circumstances.
b. without continuing to be potentially liable.
c. without Kevin's consent.
d. without paying Kevin at least one monthly fee.
b. without continuing to be potentially liable.
Fiorella and Midwest Agri-Ship, Inc., enter into a contract for Midwest to transport a silo of corn for which Fiorella agrees to pay Midwest. Due to schedule conflicts, Midwest contacts Hybrid Crop Transport Company, to which Midwest "assigns all rights under the contract." This transfer is

a. an assignment and a delegation.
b. an alienation and a negotiation.
c. an obligation and a cancelation.
d. prohibited.
a. an assignment and a delegation.
Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is

a. absolved of any liability under the contract.
b. in breach of the contract with Joy.
c. liable to Joy if Leza does not perform.
d. liable to Leza for inducing a prohibited contract.
c. liable to Joy if Leza does not perform.
Vernon contracts with Whitney to provide concierge services to Yerba Buena Hotel. This is

a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. a novation.
c. a third party beneficiary contract.
Lois takes out a life insurance policy with Mega Insurance Corporation that names her son, Nero, as the bene¬ficiary. This is

a. a delegation.
b. an assignment.
c. a third party incidental beneficiary contract.
d. a third party intended beneficiary contract.
d. a third party intended beneficiary contract.
Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys. Gladys is

a. an assignee.
b. an intended beneficiary.
c. an incidental beneficiary.
d. a delegatee.
b. an intended beneficiary.
Jen is a third party beneficiary under a contract between Kyla and Leo. Kyla and Leo can modify or rescind their contract without Jen's consent

a. at any time.
b. at no time.
c. only after Jen's rights have vested.
d. only before Jen's rights have vested.
d. only before Jen's rights have vested.
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store. The remodeling is a gift from Clio to Dewey, Clio's nephew and the owner of Dewey's Home Store. Halfway through the project, Bayside refuses to finish the job. The contract can be enforced against Bayside by

a. Clio only.
b. Clio or Dewey only.
c. Clio, Dewey, or Eagle only.
d. Clio, Dewey, Eagle, or Fresh Food.
b. Clio or Dewey only.
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store. The remodeling is a gift from Clio to Dewey, Clio's nephew and the owner of Dewey's Home Store. Dewey is

a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
d. an intended beneficiary.
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store. The remodeling is a gift from Clio to Dewey, Clio's nephew and the owner of Dewey's Home Store. The value of Fresh Food's property will increase after Dewey's store is remodeled. Fresh Food is

a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
c. an incidental beneficiary.
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store. The remodeling is a gift from Clio to Dewey, Clio's nephew and the owner of Dewey's Home Store. Eagle will realize a profit from the sale of prod¬ucts to Bayside to remodel Dewey's store. Eagle is

a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
c. an incidental beneficiary.
Dale signs a contract with Everbest Insurance Company that intentionally confers a benefit on Flo. Flo's rights under the contract will vest

a. automatically.
b. if she manifests assent to the contract or materially al¬ters her po¬si¬tion in justifiable reliance on it.
c. only if she manifests assent.
d. only if she materially alters her position in justifiable reliance.
b. if she manifests assent to the contract or materially al¬ters her po¬si¬tion in justifiable reliance on it.
Olivia contracts for the sale of this year's strawberry crop to Phoenix, with payment to go to Rural Cooperative Association. The contract reserves to Olivia and Phoenix the right to modify its terms. Rural Cooperative's right to payment is

a. not affected by the reservation.
b. subject to any change that Olivia and Phoenix make.
c. limited only if Rural Cooperative agrees to any changes.
d. terminated by the reservation.
b. subject to any change that Olivia and Phoenix make.
Heather and Genice agree that Genice can satisfy her debt to Heather by pay¬ing the money directly to Fava (to whom Heather owes a debt). The designation of this con¬tract as a third party benefi¬ciary contract is determined by the intent to benefit

a. all of the parties.
b. Heather only.
c. Genice only.
d. Fava only.
d. Fava only.
Xtra Finance Company is a creditor beneficiary in a deal that involves Yvon and Zack. Xtra, like most creditor beneficiaries, is

a. a donee beneficiary.
b. an incidental beneficiary.
c. an intended beneficiary.
d. none of the choices.
c. an intended beneficiary.
Linus and Marlena agree that Linus will fix Marlena's roof in exchange for $8,000. Linus spends half of the amount due under the contract to acquire the materials for the job from Natural Roofing Supplies. Natural Roofing is

a. a delegatee.
b. an intended beneficiary.
c. an incidental beneficiary.
d. an alien to the contract.
c. an incidental beneficiary.
George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property. This is

a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. an alienation.
c. a third party beneficiary contract.
Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta can

a. do nothing but make a deal with .a different service provider.
b. do nothing but temporarily suspend operations and wait.
c. file a criminal complaint against Even-Flo.
d. sue Even-Flo for damages.
d. sue Even-Flo for damages.
Clarice pays Damien $10,000 to design an ad campaign for her Sweetwater Coffee Stand chain. The next day, Damien tells Clarice that he has accepted a job in New York and cannot design her campaign. She files a suit against Damien. As compensatory damages, she can recover

a. $100,000.
b. $10,000.
c. $1,000.
d. $0.
b. $10,000.
Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week. When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays $450 per week for a year. Ilsa is entitled to recover

a. the amount of the wages that Handy promised only.
b. the difference between the wages at the two jobs only.
c. the difference between the wages at the two jobs plus $100.
d. $100 only.
c. the difference between the wages at the two jobs plus $100.
Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer else¬where for $6,500. Pam's measure of damages is

a. $1,500 only.
b. $1,500 plus incidental damages.
c. incidental damages only.
d. $0.
b. $1,500 plus incidental damages.
Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to

a. establish, as a matter of principle, that ISI acted wrongfully.
b. provide Hybrid with funds for a foreseeable loss beyond the contract.
c. provide Hybrid with funds for its loss of the bargain.
d. punish ISI and set an example to deter others from similar acts.
c. provide Hybrid with funds for its loss of the bargain.
Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it according to the contract specifications. Candy hires Do-We Fix-It Company to finish the project. Candy may recover from Beachside

a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
c. the costs needed to complete construction.
Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development. If Estelle breaches the contract, Desmond's remedy would most likely be

a. a certain ratio of the amount that Estelle has in liquid funds.
b. a percentage of Estelle's unrealized profit.
c. the difference between the land's contract and market prices.
d. specific performance.
c. the difference between the land's contract and market prices.
Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development. If Desmond breaches the contract, Estelle's remedy would most likely be

a. a certain ratio of the amount that Desmond has in liquid funds.
b. a percentage of Desmond's unrealized profit.
c. the difference between the land's contract and market prices.
d. specific performance.
d. specific performance.
Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside sells the acreage to Fealty Realty, and fails to go through with DA's deal on the agreed date, when the market price of the land is $17,000. DA may recover

a. $17,000.
b. $15,000.
c. $2,000.
d. $0.
c. $2,000
Mona contracts to repair a computer for NuData, Inc. (NDI). Mona knows that without the computer, NDI will lose a sale. Mona does not perform as promised. NDI files a suit against Mona. As consequential damages, NDI can recover

a. the cost of a new computer.
b. the difference between Mona's price and the actual cost of repair.
c. the loss of profit from the lost sale.
d. nothing.
c. the loss of profit from the lost sale.
Dobry Die & Mold, Inc., enters into a contract with Chet's Refitting Service to fix Dobry's precisely engineered molding equipment. If Chet's delays the repair for five days, knowing that Dobry will lose a certain percentage of profit for the delay, Dobry might be awarded consequential damages to

a. establish, as a matter of principle, that Chet's acted wrongfully.
b. provide Dobry with funds for a foreseeable loss beyond the contract.
c. provide Dobry with funds for its loss of the bargain.
d. punish Chet's and set an example to deter others from similar acts.
b. provide Dobry with funds for a foreseeable loss beyond the contract.
Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover

a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
d. profits plus the costs incurred up to the time of the breach.
Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover

a. $13,000.
b. $10,000.
c. $3,000.
d. $0.
b. $10,000.
Medical Centre enters into a contract with Local Motion Fitness Club for discounted memberships for the Centre's employees. If the Club breaches the contract and the Centre enters into a contract with KO Sports for the same service at a lower price, the Centre might be awarded nominal damages to

a. establish, as a matter of principle, that the Club acted wrongfully.
b. provide the Centre with funds for a foreseeable loss beyond the contract.
c. provide the Centre with funds for its loss of the bargain.
d. punish the Club and set an example to deter others from similar acts.
a. establish, as a matter of principle, that the Club acted wrongfully.
Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to

a. establish, as a matter of principle, that QuikBilt acted wrongfully.
b. provide Pure with funds for a foreseeable loss beyond the contract.
c. provide Pure with funds for its loss of the bargain.
d. punish QuikBilt and deter others from similar acts.
d. punish QuikBilt and deter others from similar acts.
Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry

a. compensatory damages.
b. consequential damages.
c. nominal damages.
d. punitive damages.
c. nominal damages.
Bret contracts to work for City Construction Corporation (CCC) dur¬ing July for $4,500. On June 30, CCC cancels the contract. Bret declines a similar job with Downtown Builders, Inc., which would have paid $4,000. Bret files a suit against CCC. As compensatory damages, Bret can recover

a. $4,500.
b. $4,000.
c. $500.
d. $0.
c. $500.
Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to

a. reduce the damages that Fashion might otherwise suffer.
b. reduce the loss that Great Promotions might otherwise suffer.
c. punish Great Promotions and deter others from similar acts.
d. take no action.
a. reduce the damages that Fashion might otherwise suffer.
Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

a. avoid reletting the premises to recover damages from Ray.
b. make reasonable efforts to relet the premises to mitigate dam¬ages.
c. relet the premises to recover damages from Ray.
d. sell the premises to recover damages from Ray.
b. make reasonable efforts to relet the premises to mitigate dam¬ages.
Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000. On April 30, Little cancels the contract. Kris finds another job dur¬ing May but earns only $3,000. Kris files a suit against Little. As compen¬satory damages, Kris can recover

a. $3,000.
b. $2,000.
c. $1,000.
d. $0.
b. $2,000.
Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corpo¬ration. Fresh Food does not pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale represents

a. a breach of contract.
b. a mitigation of damages.
c. rescission and restitution.
d. specific performance.
b. a mitigation of damages.
Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager for two years. If Rig breaches the contract, Scott has a duty to

a. do nothing.
b. reduce the damages that Scott might otherwise suffer.
c. rescind the contract with Rig.
d. punish Rig and set an example to deter others from similar acts.
b. reduce the damages that Scott might otherwise suffer.
Mikayla enters into a contract with Logan to provide surface material for Mikayla's tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is

a. an excessive estimate of the loss on a breach.
b. a reasonable estimate of the loss on a breach.
c. designed to penalize the breaching party.
d. intended to quickly provide cash to the nonbreaching party.
b. a reasonable estimate of the loss on a breach.
Drew contracts to sell a residential duplex to Evan. The contract pro¬vides that if Drew does not close the deal by September 15, he must pay Evan one-half of the contract price. This provision is not enforceable be¬cause it is

a. a liquidated damages clause.
b. a mitigation clause.
c. a nominal damages clause.
d. a penalty clause.
d. a penalty clause.
Home Delivery Corporation and Interstate Transport, Inc., sign an agree¬ment that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti¬mate but approximately $1,000." This is

a. a liquidated damages clause.
b. a mitigation of damages clause.
c. a nominal damages clause.
d. a penalty clause.
a. a liquidated damages clause.
Rural Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location. Rural advances Shovel 10 percent of its cost. If the parties rescind the contract, Shovel's refund of the payment would be

a. a penalty.
b. liquidated damages.
c. restitution.
d. specific performance.
b. liquidated damages.
Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract

a. Lou must return the $50 and Mira must return the player.
b. Lou must return the $50 only.
c. Mira must return the player only.
d. the parties can keep the "benefits" of their bargain.
a. Lou must return the $50 and Mira must return the player.
Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship Ira the collection. Ira should seek

a. damages.
b. reformation.
c. rescission.
d. specific performance.
d. specific performance.
Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. If Hollis breaches the contract, Grady's normal remedy would be

a. damages.
b. quasi contract.
c. reformation.
d. specific performance.
d. specific performance.
Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court will most likely

a. award damages to Dino.
b. cancel Dino and Eve's contract.
c. order Eve to perform the contract.
d. reform Dino and Eve's contract.
a. award damages to Dino.
Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within "3" days, although the parties intend "30" days. Refined cannot convince Select to amend the contract. Refined should seek

a. damages.
b. reformation.
c. rescission.
d. specific performance.
b. reformation.
Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson's farm acreage for four corn-planting seasons. After Jaime prepares the land and plants the first crop, Karson says that their deal is off. Jaime can most likely recover

a. in quasi contract.
b. in reformation.
c. in restitution.
d. on the parties' existing contract.
a. in quasi contract.
A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is

a. enforceable because the parties are protected from liability.
b. enforceable because the parties consented to it.
c. enforceable if the parties have equal bargaining power.
d. not enforceable.
d. not enforceable.
Creekside Property Corporation enters into a contract with Downstream Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

a. a limitation-of-liability clause.
b. an exculpatory clause.
c. an illegal clause.
d. a quasi contract.
a. a limitation-of-liability clause.
To avoid liability for intentional injuries, Vermont Power Corporation in¬cludes in its contracts an exculpatory clause. This is

a. enforceable if the other parties are protected from liability.
b. enforceable if the other parties consent to it.
c. enforceable if the other parties have equal bargaining power.
d. not enforceable.
d. not enforceable.
Lark enters into a contract to mine gravel in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this con¬tract are discharged like those under most contracts, the duties will be

a. repudiated.
b. breached.
c. performed.
d. rescinded.
c. performed
Dylan enters into a contract to manage the operations of Cash's account¬ing office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be

a. canceled.
b. compromised.
c. altered.
d. performed.
d. performed.
Belle enters into a contract to subdivide and sell housing lots in Cole's hillside field if Dell City annexes the property within the next year. Belle's duty to perform is

a. absolute.
b. conditional.
c. illusional.
d. irresolute.
b. conditional.
Daphne agrees to buy Eduardo's Chef's Table restaurant on the condi¬tion that Financial Credit Company approves the financing. This ap¬proval is

a. a concurrent condition.
b. a condition precedent.
c. a condition subsequent.
d. a condition conjectural.
b. a condition precedent.
Tia signs a lease that states that any change in the zoning law that af¬fects the lease will cause its termination. Union City's zoning board adopts a new zoning classification that affects the lease. This adoption satis¬fies

a. no condition.
b. the condition precedent.
c. the concurrent condition.
d. the condition subsequent.
d. the condition subsequent.
Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his busi¬ness license. Yummy's duty to perform is

a. absolute.
b. conditional.
c. licentious.
d. operational.
b. conditional.
Jill contracts to sell Ken her MP3 player for $50. This contract will be fully discharged when Jill and Ken

a. agree to sign a bill of sale.
b. exchange the player for the $50.
c. sign a receipt.
d. shake hands and go their separate ways.
b. exchange the player for the $50.
Candy enters into a contract under which she agrees to pay Dino for a business survey and review of her competitors. Dino agrees to deliver the survey by July 1. Candy's offer, on July 1, to pay Dino is

a. complete.
b. substantial.
c. tender.
d. tough.
c. tender.
Eton and Fiona sign a contract by which Eton agrees to deliver a wash¬ing machine on July 31 in exchange for Fiona's promise to pay the $500 pur¬chase price on July 31. The delivery of the washing machine and the payment of $500 are ex¬amples of

a. conditions precedent.
b. concurrent conditions.
c. conditions subsequent.
d. speculative conditions.
b. concurrent conditions.
Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates. Lake Port's offer to perform, when Lake Port is ready, willing, able to do so, is

a. tandem.
b. tonnage.
c. tender.
d. tinder.
c. tender.
Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 P.M. and 6 A.M. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been

a. absolute.
b. complete.
c. conditional.
d. substantial.
b. complete.
Even-Bilt Construction contracts to build a warehouse for Discount Sales Mart. Even-Bilt completely performs. Discount Sales is entitled to

a. an accord.
b. rescission.
c. damages.
d. nothing more.
d. nothing more.
Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums, Inc. Shady Grove is entitled to

a. damages.
b. nothing more.
c. repudiation.
d. alteration.
a. damages.
Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., which plans to open Eat Up Restaurant in that location. If BRI completes most of the work promised in the contract, its performance will be

a. absolute.
b. complete.
c. material.
d. substantial.
d. substantial.
Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. Kip's late attempt to fix the roof is most likely

a. a material breach.
b. complete performance.
c. excused by Lacy's refusal to make further payments.
d. substantial, but not complete, performance.
a. a material breach.
Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. Lacy's refusal to make further payments is most likely

a. a material breach.
b. complete performance.
c. excused by Kip's failure to fix the roof.
d. substantial, but not complete, performance.
c. excused by Kip's failure to fix the roof.
Mutual Company enters into a contract to employ Neil as an investment man¬ager for two years. During the first year, Neil is often absent without explana¬tion and when present fails to adequately monitor and manage Mutual's investments. Neil's performance is most likely

a. a material breach.
b. a minor breach.
c. Mutual's breach.
d. no breach.
a. a material breach.
Mutual Company enters into a contract to employ Neil as an investment man¬ager for two years. During the first year, Neil is often absent without explana¬tion and when present fails to adequately monitor and manage Mutual's investments. With respect to Mutual's duties, Neil's per¬formance most likely

a. discharges Mutual from the contract.
b. has no effect on Mutual's performance.
c. increases Mutual's duties under the contract.
d. suspends Mutual's duty to perform.
a. discharges Mutual from the contract.
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris. Under the circumstances, with respect to damages, Chris can

a. bring an action immediately.
b. bring an action only after the contract's two-year term begins.
c. bring an action only after the contract's two-year term ends.
d. do nothing
a. bring an action immediately.
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris. Bell's repudiation is most likely

a. a material breach.
b. a minor breach.
c. Chris's breach.
d. no breach.
a. a material breach.
Solid Toolmakers, Inc., contracts to sell its business to Titan Hardware Corpo¬ration. Before either party has performed, rescission of this con¬tract requires

a. a mutual agreement to rescind.
b. consideration.
c. performance by all of the parties.
d. an accord and satisfaction.
a. a mutual agreement to rescind.
Jane and Kelly want Lucy to replace Kelly as a party to their con¬tract. They can best accomplish this by

a. a mutual agreement to rescind.
b. an accord and satisfaction.
c. a novation.
d. an alteration of the contract.
c. a novation.
Quito contracts with Rewind Graphix, Inc., to pay $5,000 for its work on the animated film "Song." After Rewind performs, they sign an accord, in which Quito promises to pay $4,000 within ten days instead of $5,000 later. But Quito does not pay. Rewind can sue Quito

a. under no circumstances.
b. on the accord only.
c. on the accord or the original obligation.
d. on the original obligation only.
c. on the accord or the original obligation.
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. Through no fault of Eve's Farm & Garden, a fire de¬stroys the apples before they are delivered. The contract with Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.
b. discharged.
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. Evelyn dies before the apples are delivered to Hill & Dale. The contract with Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.
c. not affected.
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. A strike delays delivery of the apples by ten days. The contract with Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.
d. suspended.
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. When bad weather destroys Eve's Farm & Garden's apple crop, the obliga¬tion to deliver apples to Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.
b. discharged.
Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. When the market price for apples exceeds the price in the contract with Hill & Dale, Evelyn decides not to deliver the apples. The contract with Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.
a. breached.
Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated gravel in payment. Clyde's neighbor Earl challenges the dig as an illegal gravel pit. A court orders the digging to stop. Clyde's contract with Deephole is

a. breached.
b. discharged.
c. not affected.
d. suspended.
b. discharged.
Best Construction, Inc., contracts to build a store for Cheesy Pizza Company, with Cheesy's payment due on June 1. On June 1, Cheesy's bank is closed, and for this reason, Cheesy claims it cannot pay Best on time. In this situation

a. Cheesy's bank is in breach of contract.
b. Cheesy is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
b. Cheesy is in breach of contract.
On April 1, OK Contractors, Inc., contracts to build a store for Lo-Cost Jewelers at a specific location in Metro City. On May 1, Metro changes its zoning laws to prohibit the construction of a commercial building at that location. When the store is not built, Lo-Cost files a suit against OK. In this situation

a. OK is in breach of contract.
b. Metro is in breach of contract.
c. the contract is discharged.
d. the contract is suspended
c. the contract is discharged.
Flo agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract. Flo's estate

a. is discharged from any contractual liability.
b. must find a competent accountant to fulfill the contract.
c. must pay liquidated damages.
d. must refund any money paid to Flo on the contract.
a. is discharged from any contractual liability.
Blueberry Café signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 per¬cent. Blueberry's best argument for avoiding payment to County Credit is that

a. performance of the contract is commercially impracticable.
b. payment of the loan would force the debtor into bankruptcy.
c. the law has rendered performance of the contract illegal.
d. the specific subject matter of the contract has been destroyed.
c. the law has rendered performance of the contract illegal.
Sam contracts to harvest Tina's crop on August 1. Due to an unexpected regional fuel shortage, Sam cannot perform on the specified date. This

a. breaches the contract.
b. discharges the contract.
c. has no effect on the contract.
d. suspends the contract.
d. suspends the contract.
Frank agrees to lease an apart¬ment from Gena for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is can¬celed ten days before its date. Frank's con¬tract with Gena

a. is discharged.
b. is not affected.
c. is postponed until another event is scheduled.
d. must be performed immediately.
a. is discharged
Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states "12 percent." The Statute of Frauds governs

a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.
b. contracts that must be in writing to be enforceable.
Crestview Properties. Inc., and Deft Investment Corporation enter into a con¬tract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at

a. more than $500.
b. more than $5,000.
c. more than $50,000.
d. any price.
d. any price
Timber, Inc., and Wood Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood. Under the Statute of Frauds, this contract is enforceable by

a. the seller.
b. the buyer.
c. any interested third party, such as the mortgagee or title company.
d. none of the choices.
d. none of the choices.
Stuffed Fauna, Inc., and Taxidermy Storage Company enter into a long-term lease for a warehouse. To be enforceable, the lease

a. must be in writ¬ing.
b. must be in writ¬ing only if the lease is valued at $500 or more.
c. must be in writing only if the lease is for longer than one year.
d. need not be in writing.
a. must be in writing.
Kirk Custodial Service and Green Energy Company enter into an oral contract under which Kirk agrees to provide custodial service for Green's facilities for two years. This contract is en¬forceable by

a. Kirk.
b. Green.
c. any interested third party, such as a janitorial supplies provider.
d. none of the choices.
d. none of the choices.
Garden & Yard Landscaping enters into an oral contract with Penelope under which she agrees to work on a Garden & Yard project on Valley Country Club's golf course for sixteen months. The con¬tract is enforceable by

a. Garden & Yard.
b. Penelope.
c. any interested third party, such as Valley Country Club.
d. none of the choices.
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d. none of the choices.
Cody and Debora enter into an oral contract under which Cody agrees to work on Debora's ranch for not less than ten days. This contract is enforce¬able by

a. Cody only.
b. Debora only.
c. either party.
d. neither party.
c. either party.
Ewald and First Star Company enter into an oral contract under which Ewald agrees to pro¬vide delivery service for First Star for nine months. This con¬tract is enforceable by

a. Ewald only.
b. either party.
c. First Star only.
d. neither party.
b. either party.
Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle's debt if he does not. Ilsa does not get any per¬sonal benefit from the agreement. This contract is enforceable by

a. any party.
b. Jiffy only.
c. Jiffy or Kyle.
d. none of the parties.
d. none of the parties.
Natalie agrees to assume Orina's debt to Consumer Credit Corporation. Natalie does not get any personal benefit for the agreement. To be enforceable, the prom¬ise must be in writing if the debt is for

a. more than $500.
b. more than $5,000.
c. more than $50,000.
d. any amount.
d. any amount.
Fitch agrees to assume Gandy's debt to Hybrid Seed Corporation. Fitch does not get any personal benefit for the agreement. To be enforceable, the prom¬ise

a. must be in writ¬ing.
b. must be in writ¬ing only if the debt is valued at $500 or more.
c. must be in writing only if the debt will not be repaid within one year.
d. need not be in writing.
a. must be in writ¬ing.
Delta, Inc., agrees to assume a debt of Evenflo Company to First State Bank. The agreement is not in writing. To be enforceable, the promise must be for the benefit of

a. any party.
b. Delta.
c. Evenflo.
d. First State.
b. Delta.
Reel Graphics, Inc., agrees to assume a debt of Suave Marketing Company to Town Credit Union. This promise is for Reel's benefit. To be enforceable, the promise

a. must be in writ¬ing.
b. must be in writ¬ing only if the debt is valued at $500 or more.
c. must be in writing only if the debt will not be repaid within one year.
d. need not be in writing.
d. need not be in writing.
Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers

a. the apartment lease, and the textbook and car purchases.
b. the apartment lease and the car purchase only.
c. the apartment lease only.
d. the textbook and car purchases only.
b. the apartment lease and the car purchase only.
Pablo and Melia enter into an oral contract for Pablo's sale to Melia of a laptop computer for $400. Assuming the terms can be proved, the con¬tract is enforceable by

a. the seller or the buyer.
b. the manufacturer of the laptop.
c. any third party who overheard the parties making the agreement.
d. none of the choices.
a. the seller or the buyer.
Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers

a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.
b. the employment contract and the laptop purchase only.
Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of

a. the digital music, the MP3 player, and the speakers.
b. the MP3 player and the speakers only.
c. the MP3 player only.
d. the speakers only.
d. the speakers only.
Ollie buys a cup of coffee for $2, a magazine for $5, and a cellphone for $600. The requirement of a writing for the enforceability of a contract for a sale of goods at a certain price or more is governed by

a. the common law.
b. the parol evidence rule.
c. the parties' agreement.
d. the Uniform Commercial Code.
d. the Uniform Commercial Code.
Little's Video Store and Major TV Sales Corporation enter into an oral contract for Major's sale to Little's of eighteen DVD players for $80 each. After Little's takes possession of the players, but before it makes payment, this contract is

a. enforceable only if it is in writing.
b. enforceable only if it is oral.
c. enforceable whether it is oral or in writing.
d. not enforceable.
c. enforceable whether it is oral or in writing.
Beta Grocers orders by phone twenty cartons of canned beets from Carotene Food Packers, Inc. After ten cartons are delivered and accepted, Beta repudiates the contract. Carotene can enforce the contract to

a. any extent because the order was placed orally.
b. no extent because the order was placed orally.
c. the extent of the ten accepted cartons.
d. the extent of the twenty ordered cartons.
c. the extent of the ten accepted cartons.
Mei orally promises Nester that she will buy his fishing trawler for $10,000. Before either party acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by

a. the seller or the buyer.
b. the marina where the trawler is docked.
c. the state in which the trawler is located.
d. none of the choices.
d. none of the choices.
Nori files a suit against Mica to enforce an oral contract for the sale of lakeshore property that would otherwise be unenforceable under the Statute of Frauds. The court could enforce the deal if

a. Nori foreseeably and justifiably relied on Mica's promise to her detriment.
b. Mica denies the existence of any contract.
c. neither party has begun to perform.
d. the deal does not involve customized goods.
a. Nori foreseeably and justifiably relied on Mica's promise to her detriment.
Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

a. every term.
b. the essential terms.
c. the preliminary terms.
d. the qualitative terms.
b. the essential terms.
Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the terms on a sheet of the center's letterhead stationery, which only Theo signs. This agreement is most likely enforceable against

a. neither Theo nor Uma.
b. Theo and Uma.
c. Theo only.
d. Uma only.
c. Theo only.
Chocolate Bites, Inc., and Delite Distribution, Inc., sign a written con¬tract for a sale of goods. To be enforceable, this written contract must include

a. a correct title, such as "Purchase Order" or "Sales Invoice."
b. a declaration of the subject matter.
c. a quantity term.
d. the parties' names.
c. a quantity term.
Macho Marketing, Inc., and Nacho Food Corporation (NFC) discuss the terms of a contract. Macho faxes NFC a memo on Macho's letterhead that summarizes the items on which they agree, including a two-year term. NFC begins to perform, but Macho refuses to pay. NFC begins to perform, but Macro refuses to pay. The transaction between Macho and NFC falls within the Statute of Frauds'

a. collateral-promise provision.
b. one-year rule.
c. sales-of-goods stipulation.
d. secondary-contracts section.
b. one-year rule.
Macho Marketing, Inc., and Nacho Food Corporation (NFC) discuss the terms of a contract. Macho faxes NFC a memo on Macho's letterhead that summarizes the items on which they agree, including a two-year term. NFC begins to perform, but Macho refuses to pay. NFC begins to perform, but Macro refuses to pay. Between Macho and NFC, the memo is

a. an oral contract.
b. a pre-contract.
c. a written contract.
d. no contract.
c. a written contract.
Chloe files a suit against Digital Consultants, Inc. (DCI), to enforce a con¬tract. The only written evidence of the contract is a memo in DCI's files written on DCI's let¬terhead and signed by a DCI officer. The con¬tract can be en¬forced if the memo includes

a. a correct title, such as "Chloe-DCI Contract."
b. all essential terms.
c. a statement of the consideration.
d. the parties' addresses.
b. all essential terms.
Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states "12 percent." The parol evidence rule governs

a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.
c. the admissibility in court of oral evidence.
Kelly and Lucas sign a written contract for the sale of Kelly's Coffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement. Lucas later disputes some of the provisions of the deal with Kelly. If the dispute results in litigation, a court will most likely exclude evidence that

a. buttresses the written terms.
b. contradicts the written terms.
c. duplicates the written terms.
d. reinforces the written terms.
b. contradicts the written terms.
Kelly and Lucas sign a written contract for the sale of Kelly's Coffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement. The writing that Kelly and Lucas signed is

a. a completely integrated contract.
b. a conditionally integrated contract.
c. an agreeably integrated contract.
d. an obviously integrated contract.
a. a completely integrated contract.
Glen and Haj sign a written contract. Glen claims that the parties later orally agreed to modify the contract. Any oral modification is likely not enforceable if it falls under

a. the doctrine of promissory estoppel.
b. the "main purpose" exception.
c. the "partial performance" exception.
d. the Statute of Frauds.
d. the Statute of Frauds.
Ginamarie files a suit against Gaming Innovators Unlimited, Inc., to enforce a written con¬tract between the parties. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove

a. an orally agreed-on condition precedent.
b. terms discussed orally before the contract but not contained in it.
c. terms discussed orally at the time of the contract that contradict the written terms.
d. nothing.
a. an orally agreed-on condition precedent.
Odell and Poppy sign a contract for the sale of Odell's Pizza Parlor to Poppy. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Odell must first buy the building from Quin, after which Odell and Poppy will negotiate a final price. Poppy later disputes some of the provisions of the deal with Odell. If the dispute results in litigation, a court will most likely admit evidence of

a. ambiguous additional terms.
b. consistent additional terms.
c. contradictory additional terms.
d. fraudulent additional terms.
b. consistent additional terms.
Odell and Poppy sign a contract for the sale of Odell's Pizza Parlor to Poppy. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Odell must first buy the building from Quin, after which Odell and Poppy will negotiate a final price. The writing that Odell and Poppy signed is

a. a completely integrated contract.
b. a conditionally integrated contract.
c. a partially integrated contract.
d. a supplementally integrated contract.
c. a partially integrated contract.
Lina, an employee of Manual Labor Industries (MLI), is injured in a work-related accident. Based on the diagnosis of Newt, a doctor, Lina accepts $50,000 from MLI and waives the right to future claims. Newt's diagnosis later proves to have been wrong. Newt's misdiagnosis is, in terms of its impact on Lina's agreement with MLI,
a. a mutual mistake of fact.
May is a stockbroker. Due to May's statements, Nora believes that the price of OK!, Inc., a widely traded stock, is going to in¬crease sub¬stantially. Nora buys 500 shares of OK! at $10 per share, but the price soon drops to $2. Nora can successfully recover
a. nothing.
Nano Corporation offers to sell a robotic device to Opal Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Opal accepts the written offer. Opal's best argument in favor of enforcement of the contract is that

a. a bilateral mistake does not afford relief from a contract.
b. a mistake of value does not afford relief from a contract.
c. a unilateral mistake does not afford relief from a contract.
d. the price was below the prices of comparable devices.
c. a unilateral mistake does not afford relief from a contract.
Nano Corporation offers to sell a robotic device to Opal Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Opal accepts the written offer. Nano's best defense against enforcement of the contract is that Opal knew

a. a bilateral mistake supports the cancellation of a contract.
b. a mistake of value supports the cancellation of a contract.
c. a unilateral mistake supports the cancellation of a contract.
d. the price was below the prices of comparable devices.
d. the price was below the prices of comparable devices.
Dante, a popular performer, dies. His spouse Caitlin sells their house to Buck. Un¬known to Caitlin or Buck, in one of the closets is the mas¬ter recording of an unreleased album. With respect to this recording, Buck can

a. keep it because Caitlin should have known about it.
b. keep it because the sale of a house includes everything in it.
c. not keep it because there was no voluntary consent to its sale.
d. not keep it because the sale of a house includes nothing in it.
c. not keep it because there was no voluntary consent to its sale.
Metro City and Nu Hi-way Construction Company enter into a construction contract that includes six pages of detailed estimates. Later Metro, whose engineer compiled the figures, discovers that some numbers were added incorrectly, but Nu refuses to make changes. Metro may

a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of economic duress.
c. rescind the contract on the basis of mistake.
Business Investment Company and Chic Properties, Inc., contract for the sale of a retail mall. A mutual mistake of fact will make it possible for ei¬ther party to rescind the contract

a. if the mistake of fact is immaterial.
b. if the mistake of fact is material.
c. under any circumstances.
d. under no circumstances.
b. if the mistake of fact is material.
Grover contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Grover is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. The parties' belief about the adjacency of the property is

a. a bilateral mistake.
b. a fraudulent misrepresentation.
c. a unilateral mistake.
d. unconscionable.
a. a bilateral mistake.
Grover contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Grover is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. Because of the parties' belief about the adjacency of the property, their contract is

a. unavoidable.
b. unconscionable.
c. unenforceable.
d. voidable.
d. voidable.
Jill and Karl contract for the sale of Jill's horse for $1,000. Unknown to either party, the horse has died. Karl is

a. entitled to another horse of equivalent value.
b. not required to pay due to the mutual mistake.
c. not required to pay due to the unilateral mistake.
d. required to pay because he assumed the risk the horse might die.
b. not required to pay due to the mutual mistake.
Moore Properties, Inc., offers in writing to sell to Lawn Acres Development Corporation a certain half-acre of land for "$112,000." After Lawn Acres signs the offer in acceptance and returns it, Moore discovers that the price should have been stated as "$121,000." The effect of Moore's misstatement of the price will most likely fall on

a. Moore and Lawn Acres, who must split the difference.
b. Moore only.
c. Lawn Acres only.
d. neither Moore nor Lawn Acres.
b. Moore only.
Moore Properties, Inc., offers in writing to sell to Lawn Acres Development Corporation a certain half-acre of land for "$112,000." After Lawn Acres signs the offer in acceptance and returns it, Moore discovers that the price should have been stated as "$121,000." Moore's misstatement of the price is

a. a bilateral mistake.
b. a fraudulent misrepresentation.
c. a unilateral mistake.
d. unconscionable.
c. a unilateral mistake.
Hillside Homes, Inc., and Ideal Builders, Inc., enter into a construction contract that includes six pages of detailed calculations. Later Hillside, whose project manager compiled the figures, discovers that some numbers were multiplied incorrectly, but Ideal refuses to make changes. A court would most likely

a. allow the parties to rescind the contract.
b. award damages to Hillside for the mistakes.
c. award damages to Ideal for the mistakes.
d. enforce the contract without requiring changes.
a. allow the parties to rescind the contract.
At an auction, Vigo bids on an object, believing that it is worth more than the price asked. When the item proves to be less valuable, Vigo is

a. liable on the bid.
b. not liable on the bid because Vigo misestimated the value.
c. not liable on the bid because the auctioneer misstated the value.
d. not liable on the bid because the object was probably overpriced.
a. liable on the bid.
Leyte believes an old comic book he owns has little value, but Milo is con¬vinced it is a valu¬able collector's item. Leyte sells it to Milo for $10 before learning it is worth $1,000. Leyte can

a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of puffery.
d. rescind the contract on the basis of puffery.
Ralph offers to sell Sophie, who is seventeen years of age, a car about which Ralph intentionally misrepresents several material facts. In reliance on the misrepresentations, Sophie buys the car. To prove fraud in this transaction, Sophie would have to show that

a. Ralph intentionally deceived Sophie.
b. Ralph made statements that were obviously exaggerated.
c. Sophie does not know anything about cars.
d. Sophie is under eighteen years of age.
a. Ralph intentionally deceived Sophie.
Genie.com initiates an online dating service. To attract subscribers and encourage participation, Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users. Fooled by the false profiles, Ham buys a subscription. He is most likely a victim of

a. undue influence.
b. fraud.
c. mistake.
d. nothing.
b. fraud.
Cooper offers to sell Gable his sport utility vehicle (SUV) and says that it has never been in an accident. Relying on Cooper's statement, Gable buys the SUV. Later, when it develops mechanical problems, Gable can

a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of puffery.
b. rescind the contract on the basis of fraud.
In selling paving stones to Yard & Garden Supply, Trey tells Yard & Garden's buying representative that the stones are "soft as carpet." This is

a. unconscionable.
b. fraud.
c. mistake.
d. puffery.
d. puffery.
Olin convinces Pia, who has no artistic ability, that Pia has considerable talent and induces Pia to pay Olin $10,000 for art lessons. When Pia realizes the truth, she files a suit against Olin. Pia is most likely to recover on the basis of

a. fraud.
b. mistake.
c. puffery.
d. undue influence.
a. fraud.
Dom, a salesperson for Excel Autos, promises Fern that a certain car will give her a "smooth ride." Dom offers a test drive, which Fern de¬clines. She buys the car but soon realizes that its suspension is in poor condi¬tion. Fern

a. can rescind the contract on the ground of fraud.
b. can rescind the contract on the ground of misrepresentation.
c. can rescind the contract on the ground of mistake.
d. was not defrauded.
d. was not defrauded.
Gina induces Hugh to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features. When Hugh discovers the truth, he can

a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of undue influence.
b. rescind the contract on the basis of fraud.
In selling inventory control software to Apex Auto Parts Corporation, Bond tells Apex's purchas¬ing agent that the software is "almost human." This is

a. fraud.
b. duress.
c. puffery.
d. undue influence.
c. puffery.
Roc buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roc later learns that the law does not permit the land to be used for housing. Roc may

a. not rescind the contract.
b. rescind the contract only if Roc did not know the law before the deal.
c. rescind the contract only if Steve knew about the law before the deal.
d. rescind the contract only if the law is not common knowledge.
a. not rescind the contract.
Darla sells a all-terrain, off-road vehicle to Esteban without disclosing that the odome¬ter, which reads 30,000 miles, was disconnected 50,000 miles ago. Darla is most likely liable for

a. duress.
b. fraud.
c. mistake.
d. nothing.
b. fraud.
In negotiating a contract with Mikayla for the use of an empty bottling plant to bottle and market natural spring water, Nero makes a statement that he believes not to be true with respect to a ma¬te¬rial fact in the deal. Nero is guilty of

a. a mistake.
b. fraud.
c. puffery.
d. nothing.
b. fraud.
Dale files a suit against Eve, alleging that she used fraud to induce him to enter into a con¬tract with her. Proof of an injury is required

a. to recover damages.
b. to rescind the contract.
c. to undo Eve's influence.
d. under no circumstances.
a. to recover damages.
Augustus, who is Bertha's guardian, convinces her to buy a certain parcel of land from Christy at a greatly inflated price. Augustus may be liable for

a. mistake.
b. puffery.
c. unconscionability.
d. undue influence.
d. undue influence.
Lacy uses undue influence to induce Mina to sign a contract to invest her National Education Fund student loan money in Overseas Bank. Mina may

a. avoid the contract.
b. do nothing after Mina signs the contract.
c. recover from National for a failure to monitor Mina's money.
d. recover from Overseas for a failure to undo Lacy's influence.
a. avoid the contract.
Daphne, an accountant, uses undue influence to induce her client Emily to invest in Faux Plastico, Ltd., a business with little potential. When Emily learns the truth, she can

a. do nothing.
b. enforce the contract but not rescind it.
c. enforce the contract or rescind it.
d. rescind the contract but not enforce it.
c. enforce the contract or rescind it.
Noddy threatens physical harm to force Odell to sell his business, Pasta Palace, Inc., to Noddy for a below-market price. This is

a. duress.
b. fraud.
c. puffery.
d. undue influence.
a. duress.
Flo enters into a contract under Gail's threats. Later, Flo refuses to perform, claiming that she acted under duress. Flo sues to rescind the contract. Gail claims that duress is a defense to enforcement of a contract, not a ground for re¬scission. The court will probably rule in favor of
a. Flo only.
b. Flo and Gail.
c. Flo or Gail, but not both.
d. Gail only.
a. Flo only.
Flo enters into a contract under Gail's threats. Later, Flo refuses to perform, claiming that she acted under duress. Gail sues to enforce the contract. To be guilty of duress, Gail must have threatened
a. a civil suit.
b. a lost opportunity.
c. a social snubbing.
d. a wrongful act.
d. a wrongful act.
Gregor uses duress to force Honi to agree to pay him for protecting Honi's Coffee Shop against vandalism and destruction. Honi may

a. avoid the contract or choose to carry it out.
b. do nothing once she has agreed to pay.
c. recover from her insurer for a failure to direct her "protection."
d. recover from the local police for a failure to protect her "direction."
a. avoid the contract or choose to carry it out.
Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to per¬form, Ripe Produce files a suit to enforce the contract. To defend successfully on the ground of un¬con¬scionability, Pete must show that enforcement of the contract would be

a. economically meaningless.
b. legally worthless.
c. manifestly unfair or oppressive.
d. undeniably valuable.
c. manifestly unfair or oppressive.
Dante enters into a contract with Rosalinda, who does not have contractual ca¬pacity. Dante can enforce the contract if Rosalinda

a. does not choose to avoid the contract.
b. is a minor.
c. can obtain the funds to pay for the benefits of the contract.
d. is intoxicated or men¬tally incompetent.
a. does not choose to avoid the contract.
Jill is fifteen. In most states, Jill would be considered a minor because she is under the age of

a. sixteen.
b. eighteen.
c. twenty.
d. twenty-one.
b. eighteen.
Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is

a. valid but may be disaffirmed.
b. valid but may not be disaffirmed.
c. void as a matter of law.
d. void unless it is also signed by Edie, the manager of Dine & Drink.
c. void as a matter of law.
Orin relinquishes the right to his daughter Neko's control, care, custody, and earnings. This act is

a. disaffirmance.
b. emancipation.
c. ratification.
d. severability.
b. emancipation.
Fernando, a seventeen-year-old, signs a contract to sell his car to Gusto Used Autos. Fernando receives a better offer the next day from Hi-Valu Cars & Trucks, Inc., and accepts the new offer. Fernando is

a. liable to Gusto and must sell it a car of comparable value.
b. liable to Gusto and must sell it his car.
c. not liable to Gusto because he is a minor.
d. not liable to Gusto because the sale of the car disaffirmed their deal.
d. not liable to Gusto because the sale of the car disaffirmed their deal.
Jacquie signs a contract to buy a car just before reaching the age of major¬ity. After reaching the age of majority, Jacquie does not take possession or make payments. Most courts would hold, with respect to the contract, that this is

a. disaffirmance.
b. emancipation.
c. ratification.
d. rescission.
a. disaffirmance.
On Tad's eighteenth birthday, he decides that he no longer wants to keep a car he bought from U-Pick Autos, Inc., when he was seventeen. His right to disaffirm the deal will depend on

a. the car's condition when Tad bought it.
b. the car's current condition.
c. whether Tad acts within a reasonable period of time.
d. whether U-Pick has the right to disaffirm.
c. whether Tad acts within a reasonable period of time.
Clay, a minor, signs a contract to buy a car from Delta Motors by mis¬repre¬senting his age as twenty-one. Clay fails to make the pay¬ments. Delta sues. In most states, Clay can

a. not return the car nor avoid further liability.
b. not return the car but can avoid further liability.
c. return the car and avoid further liability.
d. return the car but cannot avoid further liability.
c. return the car and avoid further liability.
Betty, a minor, signs a contract to buy an SUV by misrepresenting her age to be twenty-one. In most states, Betty may

a. disaffirm the contract.
b. disaffirm the contract only if she first makes full payment.
c. disaffirm the contract only if she returns the SUV in orig¬inal condition.
d. not disaffirm the contract.
a. disaffirm the contract.
Gina, a minor, enters into a contract to buy a tractor from Herb, an adult. If the deal is set aside, restoring Gina and Herb to the positions they held be¬fore the contract is required in

a. all states.
b. most states.
c. no states.
d. some states.
d. some states.
Jack, a minor, takes out an automobile insurance policy and pays a $1,000 pre¬mi¬um. If Jack disaffirms the contract, he can most likely recover

a. $500.
b. $1,000.
c. $1,500.
d. nothing.
b. $1,000.
Dudley, a minor who is under his parents' care and control, signs a contract to rent an apartment from Ewan for one year. Before the end of the term, Dudley moves out. Ewan sues for the rent for the rest of the term. Dudley can

a. avoid liability for the rent but not disaffirm the contract.
b. disaffirm the contract and avoid liability for the rent.
c. disaffirm the contract but not avoid liability for the rent.
d. not disaffirm the contract nor avoid liability for the rent.
b. disaffirm the contract and avoid liability for the rent.
Ruth, a minor, charges groceries at Sam's Mart. Two days later, Ruth disaf¬firms the purchase. Ruth owes Sam's Mart

a. the reasonable value of the groceries.
b. the retail value of the groceries.
c. the wholesale value of the groceries.
d. nothing
a. the reasonable value of the groceries.
Curt, a doctor, renders medical care to Dora, a minor. Happy for a success¬ful outcome, Dora buys and sends a gift to Curt, and hires the band Elation to perform at her next birthday celebration. Most likely to be considered a necessary is

a. the medical care.
b. the thank-you gift.
c. the band.
d. none of the choices.
a. the medical care.
Delia enters into, and fails to disaffirm soon after reaching the age of ma¬jority, a contract with Electronics Stores, Inc. (ESI). Later Delia attempts to disaffirm the contract. ESI files a suit against her. The court will most likely consider the contract ratified if it is

a. executed.
b. exculpatory.
c. disaffirmed.
d. rescinded.
a. executed.
Mica, a minor, signs a contract to pay National Fitness Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is

a. disaffirmance.
b. emancipation.
c. ratification.
d. unconscionable.
c. ratification.
Elle, a minor acting on her own, signs a contract to buy a horse from Field Equine Ranch. Later, Elle disaffirms the deal. Liability most likely rests with

a. Elle and her parents.
b. Elle only.
c. Elle's parents only.
d. neither Elle nor her parents.
d. neither Elle nor her parents.
Opie enters into a contract with Belle. Later, Opie is adjudged mentally in¬competent. Raye, Opie's daughter, attempts to void Opie's contract with Belle on the ground of Opie's incompetency. The contract is

a. enforceable if Opie had capacity at the time the contract was formed.
b. enforceable if Belle is also incompetent.
c. enforceable if Raye knew of the contract when it was formed.
d. void.
a. enforceable if Opie had capacity at the time the contract was formed.
Intoxicated, Clio agrees to sell her restaurant, Diners Café, to Evan for half of its real market value. This deal is most likely voidable if Clio

a. appears intoxicated to Evan.
b. disaffirms the contract after becoming sober.
c. is so intoxicated as to have no memory of the deal.
d. is so intoxicated as to lack comprehension of the legal consequences.
d. is so intoxicated as to lack comprehension of the legal consequences.
A court adjudicates Holly mentally incompetent and appoints a guardian. Holly subsequently signs a contract to sell her house. The contract is

a. enforceable if Holly comprehended the consequences.
b. enforceable if Holly knew she was entering into a contract.
c. enforceable if the house was entirely paid for.
d. void.
d. void.
Desiree and Eduardo decide to wager, in violation of a state statute, on the out¬come of a soccer game. They each deposit money with Felipe, who agrees to pay the winner of the bet. Before the game begins, Eduardo tells Felipe that he has changed his mind about the bet. Eduardo can recover

a. the amount of his bet and the amount of Desiree's bet.
b. the amount of his bet minus Felipe's expenses.
c. the amount of his bet only.
d. nothing.
c. the amount of his bet only.
Fernando obtains a consumer loan from Greater Regional Credit Union at an interest rate that exceeds the state's maximum. Greater Regional has

a. created a risk for the purpose of assuming it.
b engaged in a restraint of trade.
c. violated a licensing statute.
d. committed usury.
d. committed usury.
Nick represents himself as a contractor in Ohio, but he is not licensed in that state. A contract between Pat and Nick by which Nick agrees to build a warehouse for Pat in Ohio is

a. enforceable only if Pat does not object after learning of Nick's status.
b. enforceable only if Pat knows that Nick is unlicensed.
c. enforceable only if the outcome is successful.
d. not enforceable.
d. not enforceable.
Bree is a real estate broker licensed only in Minnesota. She concludes a sale in North Dakota on O'Reilly's behalf. Bree's contract with O'Reilly to be paid a certain commission for the sale is

a. enforceable if O'Reilly comprehended the consequences.
b. enforceable if O'Reilly knew Bree was not licensed in North Dakota.
c. enforceable if the amount of her commission is reasonable.
d. unenforceable.
d. unenforceable.
Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery—a medical procedure. This contract is enforceable by

a. Jolie.
b. Jolie's medical insurance company.
c. Keaton.
d. no one.
d. no one.
John agrees to sell his sports equipment store to Kay and, as part of the sale, promises not to open a similar store in the United States for twenty years. John's promise is

a. an unreasonable restraint of trade like all covenants not to compete.
b. unreasonable in terms of geographic area and time.
c. unreasonable in terms of Kay's "goodwill" and "reputation."
d. valid and enforceable.
b. unreasonable in terms of geographic area and time.
First National Bank signs an agreement not to compete with City Bank that will bar City Bank from continuing to operate in the state in which both banks do almost all of their business. The agreement is likely

a. an unreasonable restraint of trade.
b. enforceable.
c. enforceable if it is ancillary to an agreement by the First National Bank to purchase all of the assets of the City Bank.
d. none of the choices.
c. enforceable if it is ancillary to an agreement by the First National Bank to purchase all of the assets of the City Bank.
Lora signs a covenant not to compete with her employer, Midstate Distribu¬tion, Inc. The covenant will be enforced if it

a. does not require either party to obtain a business license.
b. is reasonable with respect to geographic area and time.
c. is supported by consideration.
d. none of the choices.
b. is reasonable with respect to geographic area and time.
As part of a sale of a business, Lee signs a covenant not to compete that is unreasonable in its essential terms. To prevent undue hardship, a court will most likely

a. enforce the covenant as written.
b. enforce the covenant but evaluate its effects over time.
c. reform the covenant's terms.
d. refuse to enforce the covenant without additional consideration.
c. reform the covenant's terms.
Sam signs a covenant not to compete with his employer, Topp Sales Company. A court decides that the covenant is overly restrictive. The court will likely

a. enforce it as written so as not to interfere with the parties' freedom of contract.
b. enforce it but evaluate its effects over time.
c. reform its terms to prevent any undue burdens.
d. refuse to enforce it unless Topp pays additional consideration.
c. reform its terms to prevent any undue burdens.
A contract between Kim and Larry to lease real property contains an excul¬patory clause. This clause is

a. enforceable only if either party is in a business important to the pub¬lic interest.
b. enforceable only if the lease involves residential property.
c. generally enforceable as a matter of public policy.
d. generally unenforceable.
d. generally unenforceable.
Bret runs an illegal business and pays Cal, a law enforcement officer, not to interfere. The payments are discovered. Bret and Cal are sent to prison. Bret can successfully sue Cal for the return of

a. all of the money paid to Cal.
b. only the money paid to Cal that has been spent.
c. only the money paid to Cal that has not been spent.
d. none of the choices.
d. none of the choices.
A contract between Lou and Mike requires a transfer of stolen goods for counterfeit currency. This contract is

a. enforceable.
b. void.
c. voidable at the option of either party.
d. voidable at the option of the party having less bargaining power.
b. void.
Regular Insurance Company violates a state statute when selling an insur¬ance policy to Simone. As a member of the class of persons protected by the state statute, Simone can

a. do nothing with respect to the contract.
b. enforce the contract or recover the payment.
c. only enforce the contract.
d. only recover the payment.
b. enforce the contract or recover the payment.
Through fraudulent means, Roy induces Sal to sign a contract to in¬vest with him her profits from Tasty Café. When Sal learns the truth, she may

a. do nothing with respect to the contract.
b. enforce the contract only.
c. enforce the contract or recover the money paid.
d. recover the money paid only.
c. enforce the contract or recover the money paid.
Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She accepts and hands the book to Vince. Sun-Hi's delivery of the book is

a. not consideration because its transfer is a preexisting duty.
b. not consideration because its exchange is not a bargain.
c. consideration.
d. not consideration because its value is legally insufficient.
c. consideration.
Triple-D Cinemas promises to pay Shakir $1,000 to repair and clean its marquee. The act of doing this work is

a. not consideration because its performance is a preexisting duty.
b. not consideration because its exchange is not a bargain.
c. consideration.
d. not consideration because its value is legally insufficient.
c. consideration.
Dave's Hobby Town and Eva's Yarn Shoppe are adjacent stores with adjoining parking lots. Dave offers Eva a discount on purchases from Dave's store if Eva will not tow the cars of Dave's customers who park in Eva's lot.

Dave's discount is legally sufficient consid¬eration

a. because it is a promise of something of value.
b. only if Dave adds a cash rebate.
c. only if Eva uses it.
d. under no circumstances.
a. because it is a promise of something of value.
Dave's Hobby Town and Eva's Yarn Shoppe are adjacent stores with adjoining parking lots. Dave offers Eva a discount on purchases from Dave's store if Eva will not tow the cars of Dave's customers who park in Eva's lot.

Eva's forbearance from towing is legally sufficient consid¬eration

a. because it is a promise of something of value.
b. only if Dave's customers park in Eva's lot.
c. only if Eva's customers cannot park in her lot because it is full.
d. under no circumstances.
a. because it is a promise of something of value.
Braxton questions whether there is consideration for his contract with Tawny to exchange his accounting services for her payment of a certain amount. To constitute consideration, there must be

a. a payment of money.
b. a performance of services.
c. a bargained-for exchange.
d. detrimental reliance.
c. a bargained-for exchange.
Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

a. objectively worthy.
b. grossly inadequate.
c. legally sufficient.
d. practically sound.
c. legally sufficient.
Jean promises to pay Khalil $500 because "he does not have as much money as other people." Jean's promise is

a. enforceable because society wants people to keep their promises.
b. enforceable because the redistribution of wealth is a valid social goal.
c. not enforceable because Jean could have given more.
d. not enforceable because Khalil has not given consideration in return.
d. not enforceable because Khalil has not given consideration in return.
Leif offers Miley $1,000 for her three-year-old laptop computer. Miley ac¬cepts. If a dispute arises, a court would likely

a. enforce the deal after questioning the adequacy of consideration.
b. not question the adequacy of the consideration.
c. rewrite the deal after questioning the adequacy of consideration.
d. set aside the deal after questioning the adequacy of consideration.
b. not question the adequacy of the consideration.
Sonic Board Corporation files a suit against Custom Fabricators Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the considera¬tion if

a. there is a large disparity in the amount of consideration exchanged.
b. Sonic asserts that there is inadequate consideration.
c. something of value passed between the parties.
d. the consideration is worth less than $100.
c. something of value passed between the parties.
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal—a student loan accruing interest at a certain rate and payable beginning on a certain date—was unfair because the consideration for their contract was inadequate.

A court is most likely to evaluate the adequacy of consid¬era¬tion if

a. a thing exchanged has no intangible value to one of the parties.
b. something exchanged is not of direct economic or financial value.
c. the items exchanged were of unequal value.
d. there is a gross disparity in the value of the consideration exchanged.
d. there is a gross disparity in the value of the consideration exchanged.
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal—a student loan accruing interest at a certain rate and payable beginning on a certain date—was unfair because the consideration for their contract was inadequate.

"Adequacy" of consideration refers to

a. "how much" consideration is given.
b. legally sufficient value in the eyes of the law.
c. the intangible value to a contracting party of a thing exchanged.
d. the substantiality of the consideration exchanged.
a. "how much" consideration is given.
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal—a student loan accruing interest at a certain rate and payable beginning on a certain date—was unfair because the consideration for their contract was inadequate.

If, as Brad claims, the consideration in this problem is inadequate, it may indicate a lack of

a. accord in Brad's satisfaction with the value of the deal.
b. bargained-for exchange or mutual assent.
c. flexibility on the part of College Credit to accommodate Brad's needs.
d. "heft," "substance," or "weight" in the terms of the contract.
b. bargained-for exchange or mutual assent.
Nationwide Business Company and One-State Sales, Inc., agree to si¬multa¬neously rescind their contract and enter into a new agreement under which their duties are the same. Nationwide later sues One-State to enforce the new agreement. The court

a. may apply the preexisting rule or allow the rescission.
b. must allow the rescission.
c. must apply the preexisting duty rule.
d. must not apply the preexisting rule or allow the rescission.
a. may apply the preexisting rule or allow the rescission.
Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.If CCC offers no reason for the extra $100,000, but says only that it will otherwise stop construction, the agreement is

a. enforceable as an accord and satisfaction.
b. enforceable because of unforeseen difficulties.
c. unenforceable as an illusory promise.
d. unenforceable due to the preexisting duty rule.
d. unenforceable due to the preexisting duty rule.
Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay. If CCC offers, as a reason for the extra $100,000, that ordinary business expenses have increased, the agree¬ment is

a. enforceable as an accord and satisfaction.
b. enforceable because of unforeseen difficulties.
c. unenforceable as an illusory promise.
d. unenforceable due to the preexisting duty rule.
d. unenforceable due to the preexisting duty rule.
Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay. If CCC offers, as a reason for the extra $100,000, that extraordinary unforeseen difficulties will add consid¬erable cost to the project, the agreement is

a. enforceable as an accord and satisfaction.
b. enforceable because of unforeseen difficulties.
c. unenforceable as an illusory promise.
d. unenforceable due to the preexisting duty rule.
b. enforceable because of unforeseen difficulties.
Baked Stuff Company agrees to supply Comida Café with all the corn chips that it re¬quires for a year. A sudden blight caused by an organism hitherto unknown in the United States results in a shortage of corn, and the price rises sharply. Baked Stuff asks Comida to pay a higher price for the chips. This request is

a. invalid as an attempt at extortion or the so-called holdup game.
b. invalid under the preexisting duty rule.
c. valid as a risk ordinarily assumed in business.
d. valid due to the unforeseen difficulty of the sudden price increase.
d. valid due to the unforeseen difficulty of the sudden price increase.
Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay. Their agreement is

a. unenforceable because Agro's performance was a preexisting duty.
b. unenforceable because Bucolic's promise was illusory.
c. enforceable.
d. unenforceable because its performance is unforeseeably difficult.
a. unenforceable because Agro's performance was a preexisting duty.
Numeric Methods Corporation promises to give stock options to Orin, a project schedule manager, for projects that have already been completed ahead of schedule. This promise is

a. enforceable because it is a new contract.
b. enforceable because it is an illusory promise.
c. enforceable because it is supported by past consideration.
d. unenforce¬able.
d. unenforce¬able.
Superior-Plus Properties, Inc., and Topps Construction Company sign a contract that specifies the amounts to be paid for a building project at various stages and on its completion. Additional compensation may be jus¬tified by

a. any business obstacles that arise after the time of the contract.
b. changes in the market price of needed materials during the contract.
c. extraordinary difficulties unforeseen at the time of the contract.
d. no circumstances.
c. extraordinary difficulties unforeseen at the time of the contract.
Sal contracts with Tasty Pizza Company to deliver its frozen pizza and pasta products to U-Chuse Market and other grocery stores. Both parties change their minds, however, and inform each other that they would like to cancel the contract. The next day, Sal changes her mind again and once more offers to deliver Tasty's products. Tasty is willing to deal, but for a new price. Sal and Tasty

a. may agree to a new contract, but it cannot include a new price.
b. may agree to a new contract that includes the new price.
c. must perform their original contract.
d. must perform the part of their original contract that is executory.
b. may agree to a new contract that includes the new price.
Sal contracts with Tasty Pizza Company to deliver its frozen pizza and pasta products to U-Chuse Market and other grocery stores. Both parties change their minds, however, and inform each other that they would like to cancel the contract. Sal and Tasty

a. may rescind their entire contract.
b. may rescind their contract to the extent that it is executory.
c. must perform their entire contract.
d. must perform the part of their contract that is executory.
b. may rescind their contract to the extent that it is executory.
Joel contracts to hire Huong for one year to tend the orchids in his commercial greenhouse but reserves the right to cancel the employment on one month's notice at any time after Huong begins work. This promise is

a. enforceable.
b. illusory.
c. unliquidated.
d. unforeseen.
a. enforceable.
Suki works for Renaldo. At the end of her first year, Renaldo promises to pay her a bonus for her "four quarters of success." Renaldo's promise is

a. unenforceable because Suki's performance was a preexisting duty.
b. unenforceable because Suki's performance is past.
c. enforceable.
d. unenforceable because Suki's performance is not legally sufficient.
b. unenforceable because Suki's performance is past.
General Credit Corporation promises to pay its chief finance officer Hughie and other employees a year-end bonus "if it seems like a good idea at that time." This is

a. an enforceable contract.
b. an illusory contract.
c. an unconscionable contract.
d. a unilateral contract.
b. an illusory contract.
XL Retail Sales, Inc., promises its head buyer Yancey and other salaried employees a bonus at the end of the year if management thinks that the circumstances indicate "a job well done." This promise is

a. enforce¬able.
b. unenforce¬able because it is not supported by consideration.
c. unenforce¬able because the dollar amount is missing.
d. unenforce¬able because the employees are paid salaries.
b. unenforce¬able because it is not supported by consideration.
Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words "payment in full." Nat cashes the check. This dis¬charges the entire debt

a. if the debt is liquidated.
b. if the debt is past due.
c. if the debt is unliquidated.
d. under no circumstances.
c. if the debt is unliquidated.
George and Halle disagree as to the exact amount one owes the other. They form a new agreement that, on fulfillment, will discharge the prior obli¬gation. This is

a. a covenant not to sue.
b. an accord and satisfaction.
c. a release.
d. promissory estoppel.
b. an accord and satisfaction.
Dag and Enita are in an auto accident. Dag offers Enita $2,000 if she promises not to pursue her potential legal claim against him. Enita agrees. Later, Enita discovers that it will cost $1,500 to repair her car and $4,000 to cover her medical expenses for a latent injury. The agreement between Dag and Enita is

a. a covenant not to sue.
b. an accord and satisfaction.
c. a release.
d. promissory estoppel.
c. a release.
Dag and Enita are in an auto accident. Dag offers Enita $2,000 if she promises not to pursue her potential legal claim against him. Enita agrees. Later, Enita discovers that it will cost $1,500 to repair her car and $4,000 to cover her medical expenses for a latent injury. In Enita's suit against Dag to recover her repair and medical expenses, Enita will most likely recover

a. half the amount to pay those costs over what Dag already paid her.
b. nothing.
c. the estimated amount to pay those costs and any other liability.
d. the exact amount to pay those costs and no more.
b. nothing.
In a skateboarding accident with Ryan, Starla is injured. Ryan's insurance company's offers her $25,000 to release him from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release

a. bars Starla's further recovery from Ryan.
b. is unenforceable because Starla's injuries are unforeseeably difficult.
c. is unenforceable because Ryan has a preexisting duty to pay.
d. is unenforceable because the release is an illusory promise.
a. bars Starla's further recovery from Ryan.
Berkie's bicycle is damaged in an accident caused by Imogene. Berkie agrees not to sue Imogene if she will pay for the damage. If she fails to pay, Berkie can bring an action for breach of contract. This is

a. a covenant not to sue.
b. an accord and satisfaction.
c. an illusory promise.
d. a release.
a. a covenant not to sue.
Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores. Nixie agrees and quits her job with Pic-U Grocery, but Herm does not hire her. Herm is most likely liable to Nixie under

a. the concept of accord and satisfaction.
b. the doctrine of promissory estoppel.
c. the preexisting duty rule.
d. no circumstances.
b. the doctrine of promissory estoppel.
Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based on

a. an illusory promise.
b. a release.
c. past consideration.
d. promissory estoppel.
d. promissory estoppel.
Milo files a suit against Neighbors Insurance Corporation under the doctrine of prom¬issory estoppel. Milo must show that

a. Milo justifiably refused to fulfill a promise to Neighbors.
b. Milo justifiably relied on Neighbors's promise to his detriment.
c. Neighbors justifiably refused to fulfill a promise to Milo.
d. Neighbors justifiably relied on Milo's promise to its detriment.
b. Milo justifiably relied on Neighbors's promise to his detriment.
Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is

a. an acceptance of an offer.
b. an invitation to accept an offer.
c. an offer.
d. a statement of future intent.
d. a statement of future intent.
Wanda tells Vito that she would like to buy his Chocolate Goodies store. Vito declines, but later decides to sell and sends to Wanda, and others, a flyer describing the de¬tails. Wanda responds with a letter of "acceptance." Wanda and Vito have

a. a contract.
b. no contract, because Vito sent the letter to more than one party.
c. no contract, because Vito was only inviting bids.
d. no contract, because the letter was an invitation to negotiate.
b. no contract, because Vito sent the letter to more than one party.
Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind, she can withdraw her collection

a. only before the auctioneer announces that the items are sold.
b. only before the auctioneer delivers the items to the buyers.
c. under no circumstances.
d. within thirty days after the auction.
a. only before the auctioneer announces that the items are sold.
Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig changes his mind at the auction, he can withdraw his property

a. only before the auctioneer announces that the ranch is sold.
b. only before the auctioneer delivers the deed to the buyer.
c. under no circumstances.
d. within thirty days after the auction.
c. under no circumstances.
Yvon asks Zac, "Do you want to buy one of my fishing rods?" This is

a. a valid offer.
b. not a valid offer because the terms are not definite.
c. not a valid offer because Yvon did not state an intent.
d. not a valid offer because Zack did not respond.
b. not a valid offer because the terms are not definite.
Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information lead¬ing to the apprehension of a certain criminal. CCS could normally terminate the offer by placing

a. a full-page ad in the local paper and a thirty-second commercial on the local station.
b. a notice in the "Legal Announcements" section of the paper.
c. a notice to the news departments of the local stations.
d. any, or none, of the choices.
a. a full-page ad in the local paper and a thirty-second commercial on the local station.
Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

a. creates an illegal contract by adding a clause to BPI's offer.
b. makes the offer irrevocable for three days if BPI accepts.
c. negates BPI's offer by changing the price term.
d. voids BPI's offer by extending the time term.
b. makes the offer irrevocable for three days if BPI accepts.
Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, "Forget it. I changed my mind." Elmore's offer was terminated by

a. Elmore.
b. Ford.
c. Grace.
d. no one—Elmore's offer is still open.
a. Elmore.
Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejec¬tion first, then changes his mind and sends an acceptance. Whether they have a contract is determined by

a. Kyle's rejection.
b. Kyle's subjective intent.
c. whatever Jane decides.
d. whether Kyle's rejection or acceptance is received first.
d. whether Kyle's rejection or acceptance is received first.
Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate

a. after a reasonable period of time.
b. after a typical work week (five business days).
c. after a usual month (thirty calendar days).
d. never.
a. after a reasonable period of time.
Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, "I'll pay no more than $5,000." Grant says, "Forget it." Grant's offer was terminated by

a. Grant.
b. Honda.
c. Ivy.
d. no one—Grant's offer is still open.
c. Ivy.
Lovett County Bank offers to lend money to Kino, the owner of Java Stop, at 15 percent interest. Before Kino accepts, a state statute is enacted prohibiting loans at rates greater than 12 percent. Kino and the bank have

a. have a contract for a loan at 15 percent interest.
b. have a contract for a loan at 12 percent interest.
c. have a contract for a loan at 0 percent interest.
d. no contract for a loan.
d. no contract for a loan.
Wally's Warehouse offers to sell a certain used forklift to Value Lumber Outlet, but it is stolen before Value ac¬cepts. Most likely, Wally's must obtain

a. a forklift for Value if Wally's insurance covers the loss.
b. a forklift for Value if it still wants one.
c. nothing for Value because that would extend the time of the offer.
d. nothing for Value because the theft termi¬nated the offer.
d. nothing for Value because the theft termi¬nated the offer.
Kim sends an offer to Leo to cut down and remove a tree for $200. Kim says, "If you say nothing, I will consider you to have accepted my offer." If Leo does not respond, he will be deemed to

a. accept the offer.
b. make a counteroffer.
c. reject the offer.
d. none of the choices.
d. none of the choices.
Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when

a. received.
b. sent.
c. followed up by a confirmation letter sent by regular mail.
d. composed on a Relay computer.
b. sent.
Mayfair Company offers to sell a certain mall to Galleria Stores, Inc., for a certain price if it accepts before 10 A.M. Monday. A contract is formed if Galleria's acceptance is received

a. before 10 A.M. Monday.
b. before midnight Monday.
c. before twenty-four hours of 10 A.M. Monday.
d. within a reasonable time of 10 A.M. Monday.
a. before 10 A.M. Monday.
Tomato Farms (TF) offers to sell United Grocers, Inc., a boxcar load of tomatoes. The offer is sent via fax. An acceptance is re¬quired urgently. It would be most reasonable for United to accept via

a. a fax, a letter, or a phone call to TF within two weeks.
b. a fax sent to TF as soon as the offer is received.
c. a letter mailed to TF within two days.
d. a phone call to TF within five business days.
b. a fax sent to TF as soon as the offer is received.
Bret enters into a contract with Collegiate University over the Internet to take an online course titled "Internet Law." This is an e-contract because

a. the contract was entered into over the Internet.
b. the contract was formed between a student and a university.
c. the contract will be performed online.
d. the subject matter of the contract is "Internet Law."
a. the contract was entered into over the Internet.
Flem, a user of GameCenter.com's Web site, can download gaming software for free if he first clicks on "I accept" after viewing certain terms. This is

a. a contract that does not include the terms.
b. a contract that includes the terms.
c. not a contract but the terms are enforceable.
d. unenforceable.
b. a contract that includes the terms.
Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision not to sell copies of the song. This provision is

a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.
b. a click-on agreement.
Jelly Jar Company includes in its online offers a provision that indicates any disputes arising under the contract must be resolved in Kansas. Lena, a resident of Maine, accepts Jelly Jar's offer. If a dispute arises, a court will most likely rule that it must be resolved in

a. Kansas.
b. Kansas or Maine.
c. Maine.
d. the location selected by the first party to file a suit.
a. Kansas.
Magic Math Corporation makes business accounting software, which is packaged with a shrink-wrap agreement. National Distribution Company distributes the software to retailers, including an Office Stuff store, where Peg buys a package of it. The parties to the shrink-wrap agreement are

a. Magic Math and National Distribution only.
b. Magic Math and Peg only.
c. Magic Math, National Distribution, Office Stuff, and Peg.
d. Office Stuff and Peg only.
b. Magic Math and Peg only.
Lightspeed Corporation makes computers, each of which is packaged with a shrink-wrap agreement. Milo buys a Lightspeed desktop. The shrink-wrap agreement is most likely enforceable if

a. Milo buys the computer directly from Lightspeed.
b. Milo expressly agrees to the terms in the shrink-wrap agreement.
c. Milo reads the shrink-wrap agreement.
d. the terms in the shrink-wrap agreement concern warranties.
b. Milo expressly agrees to the terms in the shrink-wrap agreement.
Final Foto, Inc., makes photo and video editing software, which includes a shrink-wrap agreement. Gert buys a package of the software. With respect to the contract for the software's purchase, the shrink-wrap agreement may not be enforced if

a. Gert does not read it.
b. Gert learns of it after contracting.
c. Gert learns of it before contracting.
d. the quality of the software is poor.
b. Gert learns of it after contracting.
Mica buys "Nature," a movie, through Open View, an online entertainment vendor. Before completing the purchase and downloading "Nature," Mica must review a warning not to make and sell a copy of it. This warning is

a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.
a. a browse-wrap term.
Overnight Delivery Service delivers a package to Pam. At the request of Overnight's delivery person, to acknowledge receipt Pam signs a digital pad. This signing creates

a. a cybernotarized signature.
b. a digitized handwritten signature.
c. an asymmetric .cryptosystemic signature.
d. a public-key infrastructure digital signature.
b. a digitized handwritten signature.
Nero and Oona negotiate a contract. Nero prints out a hard copy to review before both parties sign the electronic form of the contract. Neither party signs the hard copy. Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), the signatures can

a. be denied effect because they are in electronic form.
b. be denied effect because Nero has not signed a hard copy.
c. be denied effect because Oona has not signed a hard copy.
d. not be denied effect because they are in electronic form.
d. not be denied effect because they are in electronic form.
Dino and Elle engage in a transaction that involves e-documents. The E-SIGN Act applies if those documents include

a. a divorce decree or a prenuptial agreement.
b. a health-insurance termination.
c. an agreement subject to Article 2 of the Uniform Commercial Code.
d. an eviction or a foreclosure.
c. an agreement subject to Article 2 of the Uniform Commercial Code.
Lively Toys Store and Movin' Products Company (MPC) enter into an e-contract under which MPC agrees to ship a case of electronic, remote-controlled bugs to Lively Toys, which agrees to pay on delivery. The Uniform Electronics Transactions Act (UETA)

a. denies the enforcement of such contracts.
b. does not apply to such contracts.
c. preempts all other laws with respect to such contracts.
d. supports the enforcement of such contracts.
d. supports the enforcement of such contracts.
Order Processing Corporation and Pinpoint Data, Inc., enter into a con¬tract online in a state that has enacted an unmodified version of the UETA. With regard to the E-SIGN Act

a. the E-SIGN Act does not preempt this version of the UETA.
b. the E-SIGN Act preempts this version of the UETA.
c. the "fit" between the acts is an issue for a court to determine.
d. the two acts "cancel" each other's application.
a. the E-SIGN Act does not preempt this version of the UETA.
Michelle gives out a business card with an e-mail address on it. According to the comments that accompany the UETA, it may be reasonable to infer that Michelle has consented to

a. transact business electronically.
b. submit to the jurisdiction of any selected forum.
c. accept and respond to any correspondence sent to that address.
d. nothing.
a. transact business electronically.
Jaime and Kip, consumers, transact a deal over the Internet. Their contract does not mention the UETA. The UETA covers

a. none of the contract.
b. only the part of the contract that involves computer data.
c. only the part of the contract that does not involve computer data.
d. the entire contract.
d. the entire contract.
On behalf of Bay Oyster Company, Celia types her name at the bottom of an e-mail purchase order and submits the order to Deepwater Parts Company. Under the UETA, qualifying Celia's name as her "signature" is

a. attribution.
b. cybernotarization.
c. acceptance.
d. agreement.
a. attribution.
Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products, via e-records. Under the UETA, an e-record is considered sent when it

a. is signed and encrypted, and will be sent without changes.
b. is stored in the sender's back-up system.
c. is composed on the sender's computer.
d. leaves the sender's control.
d. leaves the sender's control.
Consumer Payments Processing Corporation (CPPC) and Mall Kiosk Company make a deal for CPPC's services, via e-records. Under the UETA, an e-record is considered received when

a. it enters the recipient's processing system in a readable form.
b. the recipient is aware of its receipt.
c. the recipient is aware that it has been sent.
d. it leaves the sender's control.
d. it leaves the sender's control.
Cathy assures Don that she will deliver his products as he directs. An as¬sertion that one will do something in the future is part of the defini¬tion of
a. a declaration.
b. a moral obligation.
c. an ethical principle.
d. a promise.
d. a promise.
InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to pay for the service. If InTown does not perform, the firm may be required to

a. do nothing.
b. make another promise.
c. pay damages.
b. perform a different service.
c. pay damages.
Jack promises to buy Kris's computer for $400. Jack is

a. an executor.
b. an offeree.
c. a promisee.
d. a promisor.
d. a promisor.
Tania promises to buy Saki's handheld game-player for $75. Saki is

a. an executee.
b. an offeror.
c. a promisee.
d. a promisor.
c. a promisee.
Bobbie claims that Carl breached their contract. Carl responds that he never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to

a. the conscious theory of contracts.
b. the objective theory of contracts.
c. the personal theory of contracts.
d. the subjective theory of contracts.
b. the objective theory of contracts.
Digital Architecture, Inc., enters into a contract to design robotic software for Chassis Assembly Corporation. The freedom to enter into contracts is

a. a fundamental public policy of the United States.
b. an ambiguous business goal that is irrelevant in terms of the law
c. a philosophical concept that underlies international law.
d. a principle that describes contracting parties' intent.
a. a fundamental public policy of the United States.
Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The requirements of this, and any other, contract do not include

a. consideration.
b. capacity.
c. legality.
d. practicality.
d. practicality.
Mona asserts that a contract she entered into with Nate is unenforceable. Defenses to the enforcement of a contract include

a. a desire not to perform.
b. adverse economic consequences.
c. results that do not match expectations.
d. the lack of a party's genuine assent.
d. the lack of a party's genuine assent.
Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

a. a bilateral contract.
b. a trilateral contract.
c. a unilateral contract.
d. no contract.
a. a bilateral contract.
On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had

a. an expired contract when Neil said that he had changed his mind.
b. a quasi contract when Neil said that he would pay for certain work.
c. a unilateral contract as soon as Outdoor began to perform.
d. no contract.
c. a unilateral contract as soon as Outdoor began to perform.
Peter offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from Rico within 30 minutes. QD can ac¬cept the offer only by meeting the deadline. If QD performs as directed, these parties will have

a. a bilateral contract.
b. a trilateral contract.
c. a unilateral contract.
d. no contract.
c. a unilateral contract.
Lana applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is

a. a bilateral contract that Lana accepted by applying for the job.
b. a quasi contract on which Lana can rely for employment.
c. a unilateral contract that Lana can accept by passing the exam.
d. no contract.
c. a unilateral contract that Lana can accept by passing the exam.
Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word "seal." This is

a. a formal contract.
b. an informal contract.
c. a social contract.
d. no contract.
a. a formal contract.
On behalf of the rock group Uno, their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex, acting for Seaside Productions, sends a written copy of the agreement to Thalia to be signed. Typically, businesspersons put their contracts in writing to

a. ensure proof of the contracts' existence.
b. create substance from form.
c. obtain a check or other negotiable instrument.
d. practice their "letters of credit."
a. ensure proof of the contracts' existence.
When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is

a. an express contract.
b. an implied-in-fact contract.
c. an implied-in-law contract.
d. no contract.
b. an implied-in-fact contract
Bay City Construction, Inc., a contractor, asks Cool Electric, a subcontractor, to provide certain services. Nothing is expressed about payment. Cool provides the services, but Bay City refuses to pay. In Cool's suit to recover, the chief issue is most likely to be whether these parties had

a. a formal contract.
b. an actual contract.
c. an implied-in-fact contract.
d. a voidable contract.
c. an implied-in-fact contract.
Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have

a. an executed contract.
b. an express contract.
c. an implied-in-fact contract.
d. a quasi contract.
b. an express contract.
GR8 Marketing Company and Hot Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service. GR8 and Hot have

a. an executed contract.
b. an express contract.
c. an implied-in-fact contract.
d. a quasi contract.
b. an express contract.
Lou claims that he and Myra entered into an implied-in-fact contract. To establish this contract, it is not necessary to show that

a. a court imposed a promise in the interest of fairness.
b. Lou expected to be paid for providing services or prop¬erty.
c. Lou provided Myra with services or property.
d. Myra failed to reject services or property provided by Lou.
a. a court imposed a promise in the interest of fairness.
Scot and Tiffany enter into an implied-in-fact contract. The parties' conduct

a. defines the contract's terms.
b. finds the contract's facts.
c. terminates any unintended consequences.
d. undercuts any terms based on the facts.
a. defines the contract's terms.
Livewire Company and Kitchen Products, Inc., sign a document that states Livewire agrees to design a Web page for Kitchen Products, which agrees to pay for the service. Livewire and Kitchen Products have made

a. an express contract.
b. an implied-in-fact contract.
c. an implied-in-law contract.
d. a quasi contract.
a. an express contract.
Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's prom¬ise to pay. Avatar delivers. The contract is

a. voidable.
b. executed.
c. executive.
d. executory.
d. executory.
Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's hybrid vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino's is

a. executed.
b. executory.
c. quasi.
d. unenforceable.
b. executory.
Vernon claims that his contract with Ulani is voidable. If their contract is avoided

a. both parties are released from it.
b. both parties must fully perform their obligations under it.
c. a wholly different contract is agreed to.
d. a wholly different contract is imposed "as if" the parties had agreed.
`
a. both parties are released from it.
Employment Sources, Inc., enters into a contract with Fred. If Fred is a mi¬nor, this contract is most likely

a. enforceable.
b. unenforceable.
c. void.
d. voidable.
d. voidable.
Demi promises to buy a house from Caleb, who promises to vacate the prop¬erty on June 1. If these promises are in writing, they are most likely

a. enforceable.
b. unenforceable.
c. void.
d. voidable.
a. enforceable.
Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15. These promises are most likely

a. enforceable.
b. valid.
c. void.
d. voidable.
c. void.
Dot, a real estate agent, tells Elbert, a home seller, that her commission is 12 percent. Elbert agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After the house is sold, Elbert refuses to pay 12 percent. Dot is most likely to recover

a. nothing.
b. on a theory of an express contract.
c. on a theory of an implied-in-fact contract.
d. on a theory of quasi contract.
d. on a theory of quasi contract.
Hubert mistakenly pays property taxes that should have been assessed against Jesse. Hubert can recover the amount from Jesse in quasi contract

a. even if Jesse was not aware of the error.
b. only if Jesse tried to conceal the error.
c. only if Jesse was aware of the error.
d. under no circumstances.
a. even if Jesse was not aware of the error.
In negotiations with Coastal Distribution Company, Briggs Trucking, Inc., in¬sists that their contract be drafted ac¬cording to certain plain language laws. These laws concern the phrasing of

a. contracts.
b. ads.
c. product instruction manuals.
d. documents of delivery.
a. contracts.
Phil enters into a contract with Vacation Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be deter¬mined by reference to

a. any available evidence.
b. any relevant extrinsic evidence.
c. the face of the instrument.
d. the later testimony of the parties.
c. the face of the instrument.
Cory enters into a contract with Dian to act as her personal sports trainer. If they later dispute the meaning, and the contract contains unclear terms, the rules of contract interpretation will give effect to

a. the parties' intent as expressed in their contract.
b. what the defendant claims was the parties' intent.
c. what the plaintiff claims was the parties' intent.
d. what the parties now agree they intended.
a. the parties' intent as expressed in their contract.
Green Grocers, Inc., enters into a contract with Hiway Transport Company for the deliv¬ery of a shipment of fresh produce. If the language in the contract has more than one meaning, it will be construed against

a. the party who drafted the contract.
b. the party with the greater bargaining power.
c. the promisor.
d. the promisee.
a. the party who drafted the contract.
Debit & Credit Accounting Services and Brickwork Construction Company negotiate a con¬tract. Terms in the contract that are the subject of separate negotiation will be con¬sidered subordinate to

a. standardized terms.
b. terms that can be understood only by lawyers and judges.
c. terms that are not negotiated separately.
d. none of the choices.
d. none of the choices.
Holiday Sales Company and Global Distributors, Inc., enter into an express contract for the delivery of imported specialty goods. Express contract terms are given

a. less priority than the parties' prior dealing.
b. less priority than the trade usage in the parties' industry.
c. less priority than the parties' course of performance.
d. more priority than the prior dealing, course of performance, and trade usage.
d. more priority than the prior dealing, course of performance, and trade usage.
John is sales manager for Kleen 'N Brite Products, Inc. Compared to John's personal activities, his business activities most likely involve

a. more complex ethical issues.
b. no ethical issues.
c. simpler ethical issues.
d. the same ethical issues.
a. more complex ethical issues.
In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes

a. fair or just behavior.
b. financially rewarding behavior.
c. legal behavior.
d. religious behavior.
a. fair or just behavior.
Mariah works in the public relations department of New Trends Sales Company. Her job includes portraying New Trends's activities in their best light. In this context, ethics consist of

a. a different set of principles from those that apply to other activities.
b. the same moral principles that apply to non-business activities.
c. those principles that produce the most favorable financial outcome.
d. whatever saves New Trends's "face."
b. the same moral principles that apply to non-business activities.
Lia works for Media Marketing Company. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics consist of

a. "bad" versus "good" publicity.
b. questions of rightness and wrongness.
c. the firm's quarterly revenue.
d. whatever is legal.
b. questions of rightness and wrongness.
Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

a. operators only.
b. operators, owners, suppliers, the community, or society as a whole.
c. owners only.
d. suppliers, the community, or society as a whole only.
b. operators, owners, suppliers, the community, or society as a whole.
Bess runs Creditors Asset Recovery. She recruits clients by misrepresenting the facts and pretending to be licensed in various occupations in Michigan. Bess's conduct most likely warrants

a. an ethical admonishment but no other sanctions.
b. an injunction plus other sanctions.
c. no sanctions but no praise.
d. praise for her aggression in recovering the assets of "deadbeat" debtors.
b. an injunction plus other sanctions.
Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has

a. a legal duty beyond those duties mandated by ethics.
b. an ethical duty beyond those duties mandated by law.
c. any duty beyond those mandated by both ethics and the law.
d. any duty when it is uncertain whether a legal duty exists.
b. an ethical duty beyond those duties mandated by law.
DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid. This is most likely to be challenged as

a. illegal and unethical.
b. illegal only.
c. neither illegal nor unethical.
d. unethical only.
d. unethical only.
Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in

a. all situations.
b. many situations.
c. no situations.
d. practically no situations
b. many situations.
Sharon, the human resources director for Tempo Corporation, at¬tempts to comply with the law in dealing with applicants and employ¬ees. One of the challenges Sharon faces is that the legality of an action is

a. always clear.
b. never clear.
c. sometimes clear.
d. usually clear.
c. sometimes clear.
Kennedy Capital Corporation provides other firms with funds to expand op¬erations. If Kenney strictly complies with existing laws, the firm will

a. fulfill all business ethics obligations.
b. fulfill no business ethics obligations.
c. fulfill some business ethics obligations.
d. not need to fulfill any business ethics obligations.
c. fulfill some business ethics obligations.
Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to en¬sure that Flo-Thru's activities are legal and ethical. The best course for Eden and Flo-Thru is to act in

a. good faith.
b. ignorance of the law.
c. regard for the firm's shareholders only.
d. their own self interest.
a. good faith.
In business deals, Felipe, the chief executive officer of Glazed Donuts, Inc., follows duty-based ethical standards. These are most likely derived from

a. a corporate ethics code.
b. a cost-benefit analysis.
c. philosophical reasoning.
d. the law.
c. philosophical reasoning.
Flexo Trucking Company transports hazard¬ous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regulations permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City's water source, forcing the residents to move away. Flexo acted unethically because

a. Flexo showed reckless disregard for Hill City's residents and others.
b. Garn exceeded the federal time limit.
c. harm was caused by an unfortunate accident.
d. Hill City should have better protected its water source.
a. Flexo showed reckless disregard for Hill City's residents and others.
Tilly, the chief financial officer for USA Products Corporation, at¬tempts to apply Christian precepts in making ethical decisions and in do¬ing business. In applying duty-based ethical standards that are derived from a religious source, Tilly would consider the motive behind an act to be

a. irrelevant.
b. the least important consideration.
c. the most important consideration.
d. the only consideration.
a. irrelevant.
Global Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work. This re¬quires that the employees

a. categorize the issues according to legality, morality, and profitability.
b. consider only the benefits that would accrue to them personally.
c. look only at the result, regardless of the means to attain it.
d. weigh the consequences that would follow if everyone acted the same.
d. weigh the consequences that would follow if everyone acted the same.
Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian relig¬ious ethical standards. With respect to their application, these standards are

a. absolute.
b. analytical.
c. discretionary.
d. utilitarian.
a. absolute
Dion, an accountant for Entertainment Sports, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must

a. achieve the greatest good for the most people.
b. avoid unethical behavior regardless of the consequences.
c. conform to society's ethical standards.
d. place his or her employer's interest first.
b. avoid unethical behavior regardless of the consequences.
In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies his belief that all persons have fundamental rights. This is

a. a religious rule.
b. the categorical imperative.
c. the principle of rights.
d. utilitarianism.
c. the principle of rights.
Ryan, the owner of SuperMart Stores, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision affects

a. the right determination under a cost-benefit analysis.
b. the rights of others.
c. the "right" thing to do.
d. the right to make a profit.
b. the rights of others.
Made4U Goods, Inc., asks its employees, many of whom are mem¬bers of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require

a. a choice among alternatives to produce the maximum so¬cietal utility.
b. a determination of whom an action will affect.
c. an assessment of the effects of alternatives on those affected.
d. the acquiring of the means of production by workers.
d. the acquiring of the means of production by workers.
Solid Tool Company's decision makers view a particular risk in the use of Solid's product as open and obvious. Continuing to market the product without telling consumers of the risk could be justified from a perspective of

a. duty-based ethics.
b. Kantian ethics.
c. rights-based ethics.
d. utilitarian ethics.
d. utilitarian ethics.
Halley, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on

a. moral values.
b. religious beliefs.
c. the consequences of an action.
d. the nature of an action.
c. the consequences of an action.
Bob, research manager for CornAgri Products, Inc., ap¬plies utilitarian ethics to determine that an action is morally cor¬rect when it produces the greatest good for

a. Bob.
b. CornAgri.
c. the fewest people.
d. the most people.
d. the most people.
In making decisions for United Merchandising Company, Vance uses a cost-benefit analysis. This is part of

a. duty-based ethics.
b. Kantian ethics.
c. the principle of rights.
d. utilitarianism.
d. utilitarianism.
In deciding questions of corporate social responsibility, Valley Disposal & Recycling, Inc., is concerned with

a. how the corporation can best fulfill any ethical duty to society.
b. the effect on corporate profits of ignoring any ethical duty to society.
c. whether the corporation owes any ethical duty to society.
d. all of the choices.
d. all of the choices.
Chuckie, president of DrinkUp Fresh Beverages, Inc., does not ap¬ply utilitarianism to business ethical issues. One problem with utilitari¬an¬ism is that it

a. gives business profits priority over production costs.
b. ignores the practical costs of a given set of circumstances.
c. requires complex cost-benefit analyses of simple situations.
d. tends to justify human costs that many find unacceptable.
d. tends to justify human costs that many find unacceptable.
Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of

a. its consumers, the community, and society only.
b. its employees and owners only.
c. its employees, owners, consumers, the community, and society.
d. no one.
c. its employees, owners, consumers, the community, and society.
A common ethical dilemma faced by the management of General Holdings Corporation involves the effect that its decision will have on

a. one group as opposed to another.
b. the firm's competitors.
c. the government.
d. the U.S. Chamber of Commerce.
a. one group as opposed to another.
Superior Energy Corporation engages in ethical behavior solely for the purpose of get¬ting good publicity and thereby increasing profits. Superior is

a. acting unethically in its pursuit of publicity.
b. acting unethically in its pursuit of profits.
c. acting unethically in its setting of priorities.
d. not acting unethically.
d. not acting unethically.
Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions include all of the following except

a. an individual's conscience.
b. business rules and procedures.
c. loopholes in the law or company policies.
d. promises to others.
c. loopholes in the law or company policies.
Spencer Hydraulics Corporation's ethics committee is asked a business ethics question—should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price? A practical method to investigate and solve this question involves all of the following steps except

a. absolution.
b. decision.
c. inquiry.
d. justification.
a. absolution.
Ethical standards would most likely be considered violated if Retail Mart Corporation deals with a company in a developing nation that

a. agrees to produce goods at Retail Mart's desired price.
b. goes unnoticed by "corporate watch" groups.
c. exploits its workers.
d. pays its workers less than the U.S. minimum wage.
c. exploits its workers.
Bilt-Well Construction Corporation makes a side payment to a govern¬ment official in Nigeria to obtain a contract. In the United States, this is

a. illegal and unethical.
b. illegal but not unethical.
c. unethical but not illegal.
d. legal and ethical.
a. illegal and unethical.
To assist in detecting illegal bribes, Cut Rite Contractors, Inc., and all U.S. companies, must

a. conceal financial records that reveal past bribes.
b. keep records that "accurately and fairly" reflect financial activities.
c. make bribes through third parties rather than directly to officials.
d. permit payments to foreign officials that are unlawful in that country.
b. keep records that "accurately and fairly" reflect financial activities.
Doyle steals Carmen's computer and its software. This is computer crime in which the computer is

a. the object of the crime.
b. the subject of the crime.
c. the instrument of the crime.
d. irrelevant to the crime.
a. the object of the crime.
Through a series of e-mail messages, Hudson convinces Gwen to transfer funds to Hudson to invest in Fried Critter Company stock on Gwen's behalf. Fired Critter stock does not exist. This is computer crime in which the computer is

a. the object of the crime.
b. the subject of the crime.
c. the instrument of the crime.
d. irrelevant to the crime
c. the instrument of the crime
Swinborn sells "Tyger" steroids over the Internet. He is arrested and charged with the sale of a controlled substance. This is cyber crime, which is

a. a crime in which the letter "y" is used in the misspelling of a word.
b. a crime .that occurs in the virtual community of the Internet.
c. a crime that is less real than the same crime in the physical world.
d. no crime.
b. a crime .that occurs in the virtual community of the Internet.
Elisa steals Filbert's personal information from Filbert's computer. This is computer crime in which the computer is

a. the object of the crime.
b. the subject of the crime.
c. the instrument of the crime.
d. irrelevant to the crime.
b. the subject of the crime.
Julio meets Inez on Hello!, a social networking Web site. Inez asks Julio to pay her expenses to travel to meet him in Center City. He sends the funds, but she does not make the date. This is

a. online embarrassment but not fraud.
b. online date-dumping but not fraud.
c. an online wake-up call but not fraud.
d. online fraud.
d. online fraud.
Jean sends e-mail to Irwin promising a percentage of the amount in an African bank account for assistance in transferring the funds to a U.S. bank account. Irwin forwards his account number, but the funds are never sent. Instead, Jean quickly withdraws the funds in Irwin's account. This is

a. online greed but not fraud.
b. an online "fool-me-once, shame on you" occurrence but not fraud.
c. online gambling but not fraud.
d. online fraud.
d. online fraud.
Harvey puts up a guitar for bids on eWay, a Web auction site. Faith makes the highest bid and sends the payment, which Harvey receives, but he does not send the guitar to her. This is online

a. auction fraud.
b. puffery.
c. retail fraud.
d. frustration but not fraud.
a. auction fraud.
Omar sends Nell an e-mail ad touting software that will cloak its user in "the anonymity of the Internet." Nell pays Omar for the software, which is never delivered to her. This is online

a. auction fraud.
b. puffery.
c. retail fraud.
d. frustration but not fraud.
c. retail fraud.
Travis sends Una a link to a purported e-birthday card that when clicked on downloads software to her computer to record her keystrokes and send the data to Travis. He uses the data to obtain her personal information and access her financial resources. This is

a. identity theft.
b. birthday bashing.
c. regifting.
d. Windows shopping.
a. identity theft.
In cyberspace, Bret attempts to steal consumers' credit card numbers stored in the networked computers of Cinco Corporation, a financial payments service provider. The quantity of data that can be stolen is limited by

a. the distance between the computers of Bret and Cinco.
b. the discrepancy in time between the locations of Bret and Cinco.
c. the speed of the connection between the computers of Bret and Cinco.
d. the same physical limits that exist in the "real" world.
c. the speed of the connection between the computers of Bret and Cinco.
Rossi uses cyber tools to steal the personal information of unsuspecting consumers online. Like other cyber thieves, Rossi is most likely to

a. sell the data to other thieves online.
b. use the data to make purchases online.
c. use the data in retail outlets in the "real" world.
d. sell the data on a street corner in the "real" world.
a. sell the data to other thieves online.
Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Oswald promptly sells to Moe. This is

a. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing.
c. phishing.
Posing as Sterling Bank, Roxanne e-mails Quentin, asking him to update his personal banking information by calling a certain phone number. He makes the call and supplies the data, which Roxanne promptly sells to Porcio. This is

a. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing.
d. vishing.
Posing as a representative of Global Games Company, Ferris e-mails Evan, a job seeker, asking him to forward personal banking information so that if he is hired, payroll checks can be deposited directly into his account. Evan supplies the data, which Ferris promptly sells to Dixie. This is

a. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing.
b. employment fraud.
Via e-mail, Vern makes repeated credible threats to Ursula that put her in reasonable fear for her safety. This is

a. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing
a. cyber stalking.
In posts in online chat-rooms, Ramona makes repeated credible threats to Pierce that put him in reasonable fear for his safety. This is a crime in

a. most states.
b. only a few states.
c. no state.
d. California only.
a. most states.
Nestor establishes a phony account in Meet+Greet, a social network, and creates a fictitious persona to cyberbully Leona. This is

a. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing.
a. cyber stalking.
Impersonating Sophie, Ralph makes provocative comments online that deceive others into threatening Sophie, putting her in reasonable fear for her safety. Under federal law, this is

a. a crime only if a person who believes the comments acts on them.
b. a crime only if Sophie and Ralph are in the same jurisdiction.
c. not a crime.
d. a crime.
d. a crime.
Minka uses her computer to secretly install software on hundreds of personal computers without their owners' knowledge. Each of the computers that Minka has appropriated and installed software on is

a. a hacker.
b. a bot.
c. a botnet.
d. a worm.
b. a bot.
Minka uses her computer to secretly install software on hundreds of personal computers without their owners' knowledge. Minka's secretly installed software allows her to forward transmissions from her unauthorized network to even more systems. This network is

a. a hacker.
b. a bot.
c. a botnet.
d. a worm.
c. a botnet.
Minka uses her computer to secretly install software on hundreds of personal computers without their owners' knowledge. Minka's software is harmful to the computers on which she installed it. This program is

a. malware.
b. badware.
c. harmware.
d. infectware.
a. malware.
Jared uses his computer to secretly install software on thousands of personal computers without their owners' knowledge. The program can reproduce itself and spread from one computer to another via any USB port. This program is

a. a hacker.
b. a bot.
c. a virus.
d. a worm.
d. a worm.
Boris programs software to prompt a computer to continually crash and reboot. Boris's goal is to install this program on various companies' computer systems without the companies' knowledge. The program can reproduce itself, but must be attached to a host file to travel from one computer network to another. This program is

a. a hacker.
b. a bot.
c. a virus.
d. a worm.
c. a virus.
Iggy uses his computer to break into Hye Technology Company's computer. Iggy is

a. a hacker.
b. a bot.
c. a botnet.
d. a worm.
a. a hacker.
Via the Internet, Rocky sabotages the computer system of Quik Chik'n Company, a food manufacturer, with the purpose of altering the levels of ingredients of the company's products so that consumers of the food become ill. Rocky is

a. a cyberterrorist.
b. a botnet.
c. a virus.
d. a worm.
a. a cyberterrorist.
Sierra digitally copies "Rampage" and other recent films without the authorization of the owners and transfers those copies freely to others via file-sharing Web sites. This is

a. piracy.
b. spamming.
c. phishing.
d. vishing
a. piracy.
Taylor digitally copies business software without the authorization of the owners and sells the copies to others via the Internet. Under federal law, this is

a. a crime only if the copies are not the same as, or close to, the original.
b. a crime only if Taylor and the buyers are in different jurisdictions.
c. not a crime.
d. a crime.
d. a crime.
Maksum floods virtual mailboxes with unsolicited junk e-mail, consisting of ads and other messages. This e-mail is

a. spam.
b. bot.
c. piracy.
d. phish.
a. spam.
Gladstone regularly sends unsolicited commercial e-mail to hundreds of millions of recipients. This e-mail is prohibited or regulated in

a. most states.
b. only a few states.
c. no state.
d. California only.
a. most states.
Ollie transmits unsolicited ads to millions of virtual mailboxes, using misleading and deceptive information, including false return addresses. Under federal law, this is

a. a crime only if the recipients previously asked to be "opted out."
b. a crime only if HHH and the recipients are in foreign jurisdictions.
c. not a crime.
d. a crime.
d. a crime.
In Las Vegas, Nevada, Kurt places a bet on a football game with a bookmaker via a Web site based in Las Vegas. In Cleveland, Ohio, Dorothy places a bet on the same game with a bookmaker via a Web site based in Cleveland. Gambling is regulated in

a. all states.
b. only a few states.
c. no state.
d. Ohio only.
a. all states.
Jaime operates Internet gambling sites in countries where this is legal. Jaime accepts e-payments at the sites and pays winnings through foreign-based banks. U.S. federal law bars

a. using e-payments at online gambling sites.
b. placing bets in countries where Internet gambling is legal.
c. paying gambling winnings through foreign-based banks.
d. none of the choices.
a. using e-payments at online gambling sites.
Patricia commits an act via e-mail against Othman Finance Company, a business in California, where the act is a cyber crime. Patricia resides in New York where the act is not a crime. Prosecution of Patricia in California involves questions of

a. jurisdiction.
b. "maximum contacts."
c. the immunity of Internet service providers.
d. encryption.
a. jurisdiction.
Dinsmore Corporation employs Coolwater Cyberspace Security, Inc. to protect the integrity of Dinsmore's computer system. Coolwater assigns Brigit and each of Dinsmore's other authorized users an individualized password. A serious security problem would most likely exist if Brigit

a. does not change the password.
b. changes the password immediately.
c. changes the password on a regular basis.
d. changes the password at irregular intervals
a. does not change the password.
Rashad accesses Quant Company's computer system without authority to obtain protected financial data. Under federal law, this is

a. a felony if it is committed for a commercial purpose.
b. a felony if Quant brings a civil suit against Rashad.
c. not a crime.
d. a crime, but not a felony.
a. a felony if it is committed for a commercial purpose.
Vladimir is a "payday" lender charged with filing false claims in bankruptcy proceedings against his customer-debtors. The standard of proof to find a defendant who has been charged with a crime guilty is

a. a preponderance of the evidence.
b. beyond all doubt.
c. beyond a reasonable doubt.
d. clear and convincing evidence.
c. beyond a reasonable doubt.
Biff wrongfully takes an unopened carton from a Cold Storage Warehouse loading dock, puts the carton in his car, and drives away. This is

a. burglary.
b. forgery.
c. larceny.
d. no crime.
c. larceny.
Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know

a. Milo.
b. Nadine.
c. that the marimba is stolen.
d. what a marimba is.
c. that the marimba is stolen.
Ramon sets fire to his house. At common law, the crime of arson could be committed only if a person burned down

a. a commercial building.
b. an unoccupied structure.
c. his or her own house.
d. the house of another person.
d. the house of another person.
Ira signs Jill's name, without her authorization, on the back of a check made out to her. This is

a. burglary.
b. forgery.
c. larceny.
d. no crime.
b. forgery.
Leah gains access to government records and alters certain dates and amounts in her favor. This is

a. embezzlement.
b. forgery.
c. larceny.
d. no crime.
b. forgery.
Jake is charged with embezzlement. Embezzlement is not robbery because embezzlement may be committed without

a. a criminal act.
b. a criminal intent.
c. taking property from its owner.
d. the use of force or fear
d. the use of force or fear.
On the orders of their corporate employer, Della and Efron, employees of Fabulous Fashionista, a clothing store, switch trademarks on clothing that comes into the store to be sold to consumers. This is

a. forgery.
b. larceny.
c. obtaining goods by false pretenses.
d. no crime.
b. larceny.
Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires

a. fraudulently appropriating another's property.
b. obtaining lawful possession of property.
c. physically taking property from its owner.
d. the use of force or fear.
a. fraudulently appropriating another's property.
Mariah takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away. Nita has likely committed

a. burglary.
b. forgery.
c. larceny.
d. no crime.
c. larceny.
Riley, a State Bank employee, deposits into his account checks that are given to him by bank customers to deposit into their accounts. This is

a. embezzlement.
b. larceny.
c. money laundering.
d. no crime.
b. larceny.
In relation to Edie's solicitation of investors in a nonexistent business, she is charged with "mail fraud." This requires, among other things,

a. claiming that an item is "in the mail" when it is not.
b. deceiving postal authorities as to the content of an item of mail.
c. depositing items in the postal system without proper postage.
d. mailing or causing someone else to mail a writing.
d. mailing or causing someone else to mail a writing.
Mona offers Ned, a building inspector, money to overlook the violations in her new warehouse. Ned accepts the money and overlooks the viola¬tions. Mona is charged with the crime of bribery. The crime occurred when

a. Mona decided to offer the bribe.
b. Mona offered the bribe.
c. Ned accepted the bribe.
d. Ned overlooked the violations.
b. Mona offered the bribe.
Dirk, an employee of Ergonomic Elevators, Inc., pays Ferbie, an employee of Ergonomic's competitor G-Force Risers Company, for a secret G-Force pricing schedule. This is

a. an effective marketing strategy.
b. commercial bribery.
c. creative legal bookkeeping.
d. money laundering.
b. commercial bribery.
Rick manages an illegal gambling operation in his Sushi Bar & Grill. Rick reports the profits of the gambling operation as income from Sushi's legitimate activities on its tax returns. This is

a. embezzlement.
b. larceny.
c. money laundering.
d. no crime
c. money laundering.
Bruno is a businessperson with investments in legal and illegal opera¬tions. Bruno may be subject to penalties under RICO

a. for making an unprofitable, but legal, investment.
b. for the commission of any business fraud.
c. only in a case involving a "racket."
d. only in a case involving organized crime.
b. for the commission of any business fraud.
Sandy, a businessperson, is convicted of RICO offenses. Sandy's penalties may include

a. closing down a business, but not forfeiting its assets or selling it.
b. forfeiting business assets, but not closing it down or selling it.
c. selling a business, but not closing it down or forfeiting its assets.
d. closing down a business, forfeiting its assets, or selling it.
d. closing down a business, forfeiting its assets, or selling it.
Naomi, a businessperson, is charged with RICO offenses. Naomi may be subject to penalties under RICO only if she

a. committed two or more certain federal or state crimes.
b. has never been convicted of a crime.
c. intends to commit future RICO offenses.
d. was previously convicted of a crime.
a. committed two or more certain federal or state crimes.
Smitty, driving while intoxicated, causes a car accident that results in the death of Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for

a. any period of time.
b. more than one year.
c. more than six months.
d. more than ten days.
b. more than one year.
Domino causes a disturbance at El Nino Cafe. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punish¬able by

a. a fine only.
b. imprisonment up to one year.
c. imprisonment up to six months.
d. imprisonment up to ten days.
b. imprisonment up to one year.
Vance points a gun at Workman, threatening to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense

a. insanity.
b. duress.
c. entrapment.
d. self-defense.
d. self-defense.
Evan is charged with a crime. Almost all federal courts and some state courts would not hold Evan liable if, at the time of the offense, as a result of a mental disease or defect, Evan lacked substantial capacity to

a. appreciate the wrongfulness of his conduct only.
b. appreciate the wrongfulness of his conduct and obey the law.
c. appreciate the wrongfulness of his conduct or obey the law.
d. obey the law only.
c. appreciate the wrongfulness of his conduct or obey the law.
Page points a knife at Ray's daughter, threatening to hold her hostage and "cut" her unless Ray takes a certain file from Skelter Supplies Corporation, his employer. Charged with theft, Ray can successfully claim as a defense

a. insanity.
b. duress.
c. entrapment.
d. self-defense.
b. duress.
Yvon is charged with the crime of theft for taking Zach's briefcase, which Yvon mistakenly thought was hers. A mistake of fact is a defense

a. if the fact was not reasonably made known to the public.
b. if the mistake negates the mental state necessary to commit a crime.
c. if the perpetrator was intoxicated.
d. under any circumstances.
b. if the mistake negates the mental state necessary to commit a crime.
Mary, who is charged with a crime, claims that Nick, a government agent, entrapped her. For entrapment to be a valid defense

a. Mary must not have been predisposed to commit the crime.
b. Nick must have pressured Mary into committing the crime.
c. Nick must have suggested that the crime be committed.
d. all of the choices.
d. all of the choices.
Bob is arrested at his home, after the police search it and seize certain property to be used as evidence. A judge sets Bob's bail, as required by a state statute, and Bob is put on trial. The U.S. Constitution provides safeguards against all of the following except

a. arrests without probable cause.
b. excessive bail.
c. trying someone for a criminal offense.
d. unreasonable searches and seizures.
c. trying someone for a criminal offense.
Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self-incrimination and

a. can be prosecuted only for a crime about which she agreed to testify.
b. cannot be prosecuted for any crime.
c. cannot refuse to testify on Fifth Amendment grounds.
d. can refuse to testify on Fifth Amendment grounds.
c. cannot refuse to testify on Fifth Amendment grounds.
The police arrest Lou, who confesses to a crime. Later, Lou refutes the confession and demands a trial, at which witnesses testify they saw him commit the crime. Lou is convicted and sentenced. The U.S. Constitution provides safeguards against all of the following except

a. deprivations of life or liberty without due process of law.
b. not being allowed to question witnesses.
c. punishment.
d. self-incrimination.
c. punishment.
Alan, the president of Bayside Investments, Inc., and Colin, Bayside's accountant, are charged with a crime, after the police search Bayside's offices. Under the exclusionary rule

a. certain Bayside records are excluded from subpoena.
b. certain parties to a criminal action may be excluded from a trial.
c. illegally obtained evidence must be excluded from a trial.
d. persons who have biases that would prevent them from fairly decid¬ing the case may be excluded from the jury.
c. illegally obtained evidence must be excluded from a trial.
Jeri is indicted. Before she is arrested, she confesses to the crime in a conversation with Kelly, the arresting officer. Kelly then arrests Jeri and advises her of the right to counsel. Later, Jeri claims that her statement should be excluded as evidence from her trial. The statement will most likely be

a. admitted because Jeri knew she did the crime and confessed.
b. admitted because Jeri made it before being advised of her rights.
c. excluded because a confession is not admissible in a criminal trial.
d. excluded because it was elicited before Jeri was advised of her rights.
d. excluded because it was elicited before Jeri was advised of her rights.
Les is indicted. Madge, the arresting officer, advises Les of his right to counsel. Les waives the right and confesses to the crime. Later, Les claims that his confession should be excluded as evidence from his trial. The statement will most likely be

a. admitted because Les knew he did the crime and confessed.
b. admitted because Les made it after being advised of his rights.
c. excluded because a confession is not admissible in a criminal trial.
d. excluded because it was elicited before Les was advised of his rights.
b. admitted because Les made it after being advised of his rights.
Herb, a computer programmer for Inventory Control Corporation, is arrested in his employer's parking lot on suspicion of larceny. Herb must be informed of his right to

a. a trial by jury.
b. punishment.
c. question witnesses.
d. remain silent.
d. remain silent.
Roy owns Roy's Cafe. A fire destroys the cafe, and Roy is arrested on sus¬picion of setting it to collect the insurance. At the time of the arrest, Roy is not informed of his rights. Any statement Roy makes will be admissible

a. in all circumstances.
b. in some circumstances.
c. in no circumstances.
d. regardless of the circumstances.
b. in some circumstances.
Britney, an employee of Computer Associates, is arrested at work. A grand jury issues a formal charge against Britney for larceny. This charge is

a. an arraignment.
b. an indictment.
c. an information.
d. an inquisition.
b. an indictment.
Mike is arrested at a warehouse in North Industrial Park. A government prosecutor issues a formal charge against Mike for receiving stolen property. This charge is

a. an arraignment.
b. an indictment.
c. an information.
d. an inquisition.
c. an information.
Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury

a. if Ike intended to push Joan.
b. only if Ike did not intend to break Joan's arm.
c. only if Ike had a bad motive for pushing Joan.
d. only if Ike intended to break Joan's arm.
a. if Ike intended to push Joan.
Louis—larger and stronger than Mica—threatens to hit Mica before hitting and injuring him. Mica files a suit against Louis for assault and battery. Mica will most likely recover for

a. assault and battery.
b. assault but not battery.
c. battery but not assault.
d. neither assault nor battery
a. assault and battery.
Jaqy distributes a handbill among her neighbors accusing one of them—Ked—of being a convicted sex offender. The statement is defamatory only if

a. a neighbor repeats it.
b. Ked suffers emotional distress.
c. the statement is true.
d. the statement is false.
d. the statement is false.
Dru tells his Excel Company coworkers that Fiona, Excel's office manager, is stealing from their employer. The statement is defamatory only if

a. a coworker believes it.
b. Fiona feels as if she were falsely imprisoned.
c. the statement is true.
d. the statement is false.
d. the statement is false.
Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is defamatory only if

a. a third party hears it.
b. Hu has not been caught.
c. the statement is puffery.
d. the statement is true.
a. a third party hears it.
Toni files a suit against Universal Media Corporation for defamation. Actual malice must be shown for recovery of damages if Toni is

a. a corporate officer.
b. a non-employee.
c. a private individual.
d. a public figure.
d. a public figure.
Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This is

a. fraud if the statement is the truth.
b. fraud if Jim believes that this statement is not true.
c. fraud if Jim is stating his opinion, not the facts.
d. not fraud.
d. not fraud.
Lew angrily accuses Mandy, a broker with New Financial Services, of fraudulently inducing him to invest in Open Pit Oil Company, whose wells are dry. The reliance that gives rise to liability for fraud is normally based on a statement of

a. emotion.
b. fact.
c. opinion.
d. puffery.
b. fact.
Kai files a suit against Lana based on one of Lana's statements that Kai alleges is fraudulent. To give rise to fraud, the statement must be one of

a. emotion.
b. fact.
c. illusion.
d. opinion.
b. fact.
Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongful inter¬ference with

a. a bargaining relationship.
b. a business relationship.
c. a contractual relationship.
d. a customer relationship.
b. a business relationship.
OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is

a. appropriation.
b. conversion.
c. wrongful interference with a contractual relationship.
d. none of the choices.
d. none of the choices.
Liz trespasses on Mega Corporation's property. Through the use of rea¬sonable force, Mega's security guard Ned detains Liz until the police ar¬rive. Mega is liable for

a. assault and battery.
b. false imprisonment.
c. intentional infliction of emotional distress.
d. none of the choices.
d. none of the choices.
Joy invites Ken into her apartment. Ken commits trespass to land if he

a. enters the apartment with fraudulent intent.
b. harms the apartment in any way.
c. makes disparaging remarks about Joy to others.
d. refuses to leave when Joy asks him to go.
d. refuses to leave when Joy asks him to go.
Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and onto Bella's land. Doyle commits trespass if he

a. does not have Bella's permission to drive on the property.
b. drives onto the property for recreational purposes.
c. harms the property in a material way.
d. harms the property in any way.
a. does not have Bella's permission to drive on the property.
As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed

a. appropriation.
b. conversion.
c. intentional infliction of emotional distress.
d. trespass to personal property.
d. trespass to personal property.
Dian, a clerk at an Entertainment Unlimited store, takes a DVD player from the store without permission. Dian is liable for

a. appropriation.
b. benefiting an employee.
c. conversion.
d. wrongful interference with a business relationship.
c. conversion.
In newspaper ads, Lo-Price Autos falsely accuses My-T Value Vehicles, a competitor, of selling stolen cars. My-T's sales decrease. Lo-Price has most likely committed

a. slander of quality.
b. slander of title.
c. wrongful interference with a business relationship.
d. none of the choices.
b. slander of title.
Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as

a. a blameless person.
b a faultless person.
c. a reliable person.
d. a reasonable person.
d. a reasonable person.
Kelly is injured when she slips and falls on Layla's sidewalk. To determine whether Layla owed a duty of care to Kelly, Layla is subject to the standard of

a. a realistic person.
b. a reasonable person.
c. a recognizable person.
d. a reliable person.
b. a reasonable person.
Cook's Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of

a. all risks.
b. hidden risks.
c. obvious risks.
d. no risks.
b. hidden risks.
Reaching for a bottle of soda from a display in a Bargain Mart store, Cody slips in a puddle of spilled soda and falls, suffering an injury. Bargain Mart's employees are not aware of the spilled soda until Cody falls. In a suit against Bargain Mart, Cody will most likely

a. lose, because Bargain Mart's employees were not aware of the spill.
b. lose, because Cody should have exercised more care.
c. win, because Bargain Mart can recover from the soda bottler.
d. win, because the spilled soda was foreseeable.
d. win, because the spilled soda was foreseeable.
Leon files a suit against Moira, a medical doctor, alleging negligence. As a physician, Moira is held to the standard of

a. a blameless individual.
b a faultless ordinary person.
c. a reliable professional.
d. a reasonable physician.
d. a reasonable physician.
Caleb is driving a car in which Dotty is a passenger when an accident occurs. Caleb and Dotty are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dotty on a negligence theory because

a. both parties were emotionally rattled.
b. Caleb did not apparently intend to cause an accident.
c. Dotty must have been comparatively negligent.
d. Dotty was not injured.
d. Dotty was not injured.
Sam, an engineer, supervises the construction of a new bridge. When the bridge col¬lapses due to faulty construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to the same standard of care as

a. ordinary persons.
b. other engineers.
c. other professionals, including doctors, dentists, and lawyers.
d. those injured in the collapse of the bridge.
b. other engineers.
Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Speedy are liable to

a. all those who were injured.
b. only those who were uninsured.
c. only those whose injuries could have been reasonably foreseen.
d. only those whose vehicles were closest to Ralph's van.
c. only those whose injuries could have been reasonably foreseen.
Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks

a. attributable to the Triathlon in any way.
b. different from the risks normally associated with the Triathlon.
c. greater than the risks normally associated with the Triathlon.
d. normally associated with the Triathlon.
d. normally associated with the Triathlon.
Clyde enters Desert Decathlon, an athletic competition in which Clyde has often competed. Regarding the risk of injury, Clyde assumes the risks

a. attributable to the Decathlon in any way.
b. different from the risks normally associated with the Decathlon.
c. greater than the risks normally associated with the Decathlon.
d. normally associated with the Decathlon.
d. normally associated with the Decathlon.
Nico is a passenger in a car driven by Owen, whose negligence causes an accident, injuring himself. Nico, uninjured, accompanies Owen to Parkside Hospital in an ambulance. The ambulance is hit by a car driven by Quin, injuring Nico. Nico files a suit against Owen, whose best defense is

a. assumption of risk.
b. contributory negligence.
c. negligence per se.
d. superseding cause.
d. superseding cause.
Frank slips and falls on Guy's Harbor Tour Boat and is injured. Frank files a suit against Guy's for $500,000. If Frank is 20 percent at fault and Guy's is 80 percent, under the "50 percent rule" comparative neg¬ligence principles, Frank would recover

a. $0.
b. $250,000.
c. $400,000.
d. $500,000.
c. $400,000.
A state statute requires machinery in industrial plants to include automatic shut-off switches accessible to each employee working on the machine. Steel Company's (SC's) equipment does not have the switches. Trudy, an SC employee, suffers an injury that an accessible shut-off switch would have prevented. Trudy's best theory for recovery against SC is

a. assumption of risk.
b. negligence per se.
c. res ipsa loquitur.
d. strict liability.
b. negligence per se.
George has a badly infected right foot. Herb, George's physician, prescribes amputation. George agrees. During the operation, Herb amputates the left foot. In George's suit against Herb, George's best theory for recovery is

a. assumption of risk.
b. negligence per se.
c. res ipsa loquitur.
d. strict liability.
c. res ipsa loquitur.
An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Key, a patron, is injured. Jack's has committed

a. a dram shop act.
b. contributory negligence.
c. negligence per se.
d. res ipsa loquitur.
c. negligence per se.
Drake pushes Evon into the path of an oncoming car driven by Flip. Gina tries to rescue Evon. Drake is liable for any injuries to

a. Evon and Flip but not Gina.
b. Evon and Gina but not Flip.
c. Evon, Flip, and Gina.
d. none of the parties.
c. Evon, Flip, and Gina.
Jean is playing a computer game on a bad disk that melts in her drive, starting a fire that injures her hands. Jean files a suit against K-Tech, Inc., the game's manufacturer. K-Tech is held liable under the doctrine of strict liability. A significant appli¬cation of this doctrine is in the area of

a. cyber torts.
b. intentional torts.
c. product liability.
d. unintentional torts.
c. product liability.
Oakley posts a defamatory remark about Pierre in "Roominate," an online social network maintained by SocNet, Inc., an Internet service provider. Most likely to be held liable for the remark is

a. Oakley.
b. Pierre.
c. Roominate.
d. SocNet.
a. Oakley.
Moby, a resident of New Jersey, has an accident with Ogden, a resident of New York, while driving through that state. Ogden files a suit against Moby in New York. Regarding Moby, New York has

a. federal question jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.
b. in personam jurisdiction.
Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against Hua in Indiana. Regarding this suit, Indiana has

a. federal question jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.
c. in rem jurisdiction.
Marbled Granite Company files a suit against Natural Stone, Inc., in a Colorado court with gen¬eral jurisdiction. In a Delaware court with limited jurisdiction, E-Sales Corporation files a suit against First State Bank. The differ¬ence between general and limited ju¬risdiction is

a. the subject matter of the cases that the courts can decide.
b. whether a case is being heard for the first time.
c. whether a suit is filed against a single individual or many people.
d. whether a suit is filed by a citizen or by a business.
a. the subject matter of the cases that the courts can decide.
Sam, a citizen of Tennessee, files a suit in a Tennessee state court against United Sales Corporation, a Wyoming company that does business in Tennessee. The court has original jurisdiction, which means that

a. the case is being heard for the first time.
b. the court does not have concurrent jurisdiction.
c. the court has standing.
d. the court has venue.
a. the case is being heard for the first time.
Sam, a citizen of New Mexico, wants to file a suit against Tanya, a citizen of Texas. Their diversity of citizenship may be a basis for

a. any court to exercise in rem jurisdiction.
b. a federal district court to exercise original jurisdiction.
c. a U.S. court of appeals to exercise appellate jurisdiction.
d. the United States Supreme Court to issue a writ of certiorari.
b. a federal district court to exercise original jurisdiction.
Jo files a suit against Lara in a Missouri state court. Lara's only connection to Missouri is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the issue is whether Lara, through her ad, has

a. a commercial cyber presence in Missouri.
b. conducted substantial business with Missouri residents.
c. general maximum contact with Missouri.
d. solicited virtual business in Missouri.
b. conducted substantial business with Missouri residents.
Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio

a. has a sufficient stake in the matter.
b. has jurisdiction.
c. has sufficient minimum contacts with the parties.
d. is a more convenient location to hold the trial
d. is a more convenient location to hold the trial.
Inferior Company sells products that are poorly made. Jack, who has never bought an Inferior product, files a suit against the company, alleging that its products are defective. The firm's best ground for dis¬missal of the suit is that Jack does not have

a. certiorari.
b. jurisdiction.
c. standing.
d. sufficient minimum contacts.
c. standing.
Kit loses her suit against Lou in a Minnesota state trial court. Kit appeals to the state court of appeals and loses again. Kit would appeal next to

a. a U.S. district court.
b. the Minnesota Supreme Court.
c. the United States Supreme Court.
d. the U.S. Court of Appeals for the Eighth Circuit
b. the Minnesota Supreme Court.
The Idaho Supreme Court rules against Jiffy Mart in a case against Kwik Stop Stores, Inc. Jiffy Mart files an appeal with the United States Supreme Court. The Court does not hear the case. This

a. is a decision on the merits with value as a precedent.
b. indicates agreement with the Idaho court's decision.
c. means nothing.
d. means that the Idaho court's decision is the law in Idaho.
d. means that the Idaho court's decision is the law in Idaho.
Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The complaint should include

a. an explanation of the proof to be offered at trial.
b. a motion for judgment n.o.v.
c. a motion for judgment on the pleadings.
d. a statement of the grounds for the court to exercise jurisdiction
d. a statement of the grounds for the court to exercise jurisdiction.
Ula wants to initiate a suit against Valley Farms by filing a complaint. The complaint should include

a. an explanation to refute any defense the defendant might assert.
b. a motion for summary judgment.
c. a motion to dismiss.
d. a statement of the facts necessary to show Ula is entitled to relief
d. a statement of the facts necessary to show Ula is entitled to relief.
Lynn files a suit against Karl. Karl denies Lynn's charges and sets forth his own claim that Lynn breached their contract and owes Karl money for the breach. This is

a. a counterclaim.
b. a crosclaim.
c. an affirmative defense.
d. an irrelevant response.
a. a counterclaim.
Olsen Grocery Company files a suit against Pickle Products, Inc. Pickle responds that even if Olsen's statement of the facts is true, according to the law Pickle is not liable. This is

a. a counterclaim.
b. a motion for judgment on the pleadings.
c. a motion for summary judgment.
d. a motion to dismiss.
d. a motion to dismiss.
Carol files a suit against Downwind Boat Corporation. Downwind responds that it appears from the pleadings the parties do not dispute the facts and the only question is how the law applies to those facts. Downwind supports this response with witnesses' sworn statements. This is

a. a counterclaim.
b. a motion for judgment on the pleadings.
c. a motion for summary judgment.
d. a motion to dismiss.
c. a motion for summary judgment.
Quality Products, Inc., files a suit against Retail Sales Corporation. Sid is a witness for Quality. Tod is a witness for Retail. Quality may direct interrogatories to

a. Retail only.
b. Retail, Sid, or Tod.
c. Sid only.
d. Sid or Tod only.
a. Retail only.
In Ed's suit against First National Bank, the discovery phase would in¬clude all of the following EXCEPT

a. Ed's complaint.
b. Ed's deposition.
c. Ed's requests for First National's admissions.
d. First National's replies to Ed's interrogatories
a. Ed's complaint.
To prepare for a trial between Large Lots Development Corporation (LLDC) and MiniMansion Construction Company (MMCC), MMCC's attorney places LLDC's president under oath. A court reporter makes a record of the attorney's questions and the officer's answers. This is

a. a cross-examination.
b. a deposition.
c. an imposition.
d. an interrogatory.
b. a deposition.
During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is

a. the assessment of the arguments on the issues.
b. the determination of the issues to be argued.
c. the litigation of the issues and arguments.
d. the selection of jurors.
d. the selection of jurors.
In Fancy Frills Corporation's suit against Glamour Stores, Inc., the jury re¬turns a verdict in Fancy's favor. Glamour files a motion asking the judge to set aside the verdict and begin new proceedings. This is a mo¬tion for

a. a judgment in accordance with the verdict.
b. a judgment on the pleadings.
c. a new trial.
d. judgment n.o.v.
c. a new trial.
In Restful Motel's suit against Sleepy Hotels, Inc., the jury returns a verdict in Restful's favor. Sleepy files a motion stating that even if the evidence is viewed in the light most favorable to Restful, a reasonable jury should not have found in its favor. This is a motion for

a. a judgment in accordance with the verdict.
b. a judgment on the pleadings.
c. a new trial.
d. judgment n.o.v.
d. judgment n.o.v.
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court After its review of Kelly v. Lewis, the appellate court can

a. affirm, reverse, or remand all or part of the lower court's decision.
b. only affirm or reverse all or part of the lower court's decision.
c. only remand all or part of the lower court's decision.
d. only reverse or remand all or part of the lower court's decisiona. affirm, reverse, or remand all or part of the lower court's decision.
a. affirm, reverse, or remand all or part of the lower court's decision.
Edie files a suit against Frank. If this suit is like most cases, it will be

a. dismissed during a trial.
b. dismissed or settled before a trial.
c. resolved only after a trial.
d. settled at a trial.
b. dismissed or settled before a trial.
Sid files a suit against Tina. Before going to trial, the parties, with their at¬torneys, meet to try to resolve their dispute. A third party helps them to reach an agreement. This is

a. arbitration.
b. litigation.
c. mediation.
d. negotiation.
c. mediation.
Betty files a suit against Carl. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without involving a third party. This is

a. arbitration.
b. litigation.
c. mediation.
d. negotiation
d. negotiation.
Jim files a suit against Kay. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who renders a legally binding decision. This is

a. arbitration.
b. litigation.
c. mediation.
d. negotiation
a. arbitration.
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. The least expensive method to resolve the dis¬pute between Java and Kaffe may be

a. arbitration because the case will be heard by a mini-jury.
b. litigation because each party will pay its own legal fees.
c. mediation because the dispute will be resolved by a non-expert.
d. negotiation because no third parties are needed.
d. negotiation because no third parties are needed.
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of set¬tling their dispute may be mediation because

a. the case will be heard by a mini-jury.
b. the dispute will eventually go to trial.
c. the process is not adversarial.
d. the resolution of the dispute will be decided an expert
c. the process is not adversarial.
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the ad¬van¬tages of

a. arbitration.
b. conciliation.
c. intervention.
d. mediation.
a. arbitration.
National Consumer Goods Corporation and Paula Purchaser agree to re¬solve their dispute in arbitration. The arbitrator's decision is called

a. a conclusion of law.
b. a finding of fact.
c. an award.
d. a verdict.
c. an award.
Owen, in Pennsylvania, and Quik Jobs, Inc., in Maryland agree to have their dispute resolved in arbitration according to the law of Virginia. This is a ground for a court to

a. do nothing.
b. review the merits of the dispute.
c. review the sufficiency of the evidence.
d. set aside the award.
a. do nothing.
Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having ju¬ris¬dic¬tion may

a. monitor any arbitration until it concludes.
b. order an arbitrator to rule in a particular way.
c. order a party to bring the dispute to court.
d. order a party to submit to arbitration.
d. order a party to submit to arbitration.
In Harley's suit against Irma, the parties meet before going to trial, and each party's attorney argues the party's case before the other party. A third party renders an opinion as to how a court would likely decide the dispute. This is

a. a mini-trial.
b. arbitration.
c. a summary jury trial.
d. early neutral case evaluation
a. a mini-trial.
Molly files a suit against Naomi. They meet, and each party's at¬torney ar¬gues the party's case before a judge and jury. The jury presents an advi¬sory ver¬dict, after which the judge meets with the parties to en¬courage them to set¬tle their dispute. This is

a. court-ordered arbitration.
b. early neutral case evaluation.
c. a mini-trial.
d. a summary jury trial.
d. a summary jury trial.
To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts

a. not at all.
b. until the ODR service has issued a decision.
c. with respect to any dispute arising between them.
d. with respect to this dispute only.
a. not at all.
Business Markets Coalition (BMC), a political lobbying group, wants a certain policy enacted into law. If BMC's policy conflicts with the U.S. Constitution, a law embodying it can be enacted by

a. any state legislature and Congress.
b. any state legislature but not Congress.
c. Congress but not any state legislature.
d. none of the choices.
d. none of the choices.
Under the Constitution, Congress

a. administers the laws.
b. enforces the laws.
c. interprets the laws.
d. makes the laws.
d. makes the laws.
The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that

a. Congress writes checks and the president balances the budget.
b. each branch of government has some power to limit the actions of the other branches.
c. each branch of government may exercise the authority of the other branches.
d. the president "checks" the courts, which "balance" the laws.
b. each branch of government has some power to limit the actions of the other branches.
Savers Mart, Inc., distributes its merchandise to retail outlets on an inter¬state basis. Under the commerce clause, Congress has the power to regulate

a. any commercial activity in the United States.
b. only activities that are in intrastate commerce.
c. only activities that are in local commerce.
d. only activities that are not in commerce.
a. any commercial activity in the United States.
Wisconsin, like other states, may regulate private activities to protect or promote the public order, health, safety, and general welfare under its

a. police powers.
b. taxing powers.
c. spending powers.
d. supreme powers.
a. police powers.
The state legislature of Iowa enacts a transportation statute that impinges on interstate commerce. This statute will be

a. balanced in terms of Iowa's interest in regulating a certain matter against the burden placed on interstate commerce.
b. balanced in terms of the burden on Iowa against the merit and purpose of interstate commerce.
c. struck down.
d. upheld.
a. balanced in terms of Iowa's interest in regulating a certain matter against the burden placed on interstate commerce.
Tori files a suit against the state of Utah, claiming that a Utah state law violates the commerce clause. The court will agree if the statute

a. impinges on citizens' private activities.
b. imposes a substantial burden on interstate commerce.
c. imposes a substantial burden on the state.
d. promotes the public order, health, safety, morals, or general welfare.
b. imposes a substantial burden on interstate commerce.
Levi, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in Chesapeake Bay. The Maryland state legislature enacts a law that bans all commercial fishing in the bay. The state law most likely violates

a. no provision in the U.S. Constitution.
b. the commerce clause.
c. the due process clause.
d. the supremacy clause.
d. the supremacy clause.
Congress enacts a law that sets out a rigorous medical-device premarket approval process for the U.S. Food and Drug Administration to follow. The law includes a preemption provision. Joe is injured by a device that underwent the process and files a claim under New Hampshire state law to recover for the injury. The court will most likely rule that

a. Joe's state law claim preempts the federal law.
b. the federal law and state law claim are concurrent.
c. the federal and state law claim cancel each other out.
d. the federal law preempts Joe's state law claim.
d. the federal law preempts Joe's state law claim.
Congress enacts a law prohibiting toys made in China from being sold in the United States. The Hawaii state legislature enacts a law allowing the sale of Chinese-made toys. Hawaii's law will most likely be

a. rendered invalid under the supremacy clause.
b. rendered valid the free exercise clause.
c. struck down under the due process clause.
d. upheld under the commerce clause.
a. rendered invalid under the supremacy clause.
Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion's principles. The First Amendment guarantees Mike's freedom of

a. religion only.
b. speech only.
c. the press only.
d. religion, speech, and the press.
d. religion, speech, and the press.
Dru, a U.S. citizen, is the owner of Egret, Inc. Egret's competitors include Feathered Friends Company (FFC), which is owned by Greg and Huey. The Bill of Rights embod¬ies a series of protections for Dru against types of interference by

a. FFC and its other competitors only.
b. FFC, Greg, Huey, others, and the government.
c. Greg, Huey, and other private individuals only.
d. the government only.
d. the government only.
The police obtain a search warrant and search Dave's apartment. After yelling obscenities at the officers, Dave confesses to a crime and impli¬cates his friends. The Constitution protects against

a. obscene speech only.
b. others' implication only.
c. unreasonable searches only.
d. obscene speech, others' implication, and unreasonable searches.
c. unreasonable searches only
Bailey, the president of Carmichael Commodities Company, claims that certain actions by the federal government and by the state of Delaware infringe on rights guar¬anteed by the Bill of Rights. All of these rights limit

a. neither Delaware nor the federal government.
b. the federal government only.
c. Delaware and the federal government.
d. Delaware only.
b. the federal government only.
Federico, the president of Gems Retail Corporation, claims that certain ac¬tions by the federal government and the state of New Mexico infringe on rights guar¬anteed by the Bill of Rights. Most of these rights limit

a. neither New Mexico nor the federal government.
b. the federal government only.
c. New Mexico and the federal government.
d. New Mexico only.
c. New Mexico and the federal government.
Serene City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Tyler wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck. In Tyler's suit against the city, a court would likely hold the ordinance to be

a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
b. constitutional under the First Amendment.
Congress enacts the Tight Money Act (TMA) of 2010 to ban "major busi¬ness entities" from making political contri¬bu¬tions that individuals can make. A court would likely hold the TMA to be

a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
a. an unconstitutional restriction of speech.
Expendable Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is given

a. little protection.
b. no protection.
c. significant protection.
d. total protection.
c. significant protection.
Beachside City enacts an ordinance that bans the distribu¬tion of all printed materials on city streets. Carl opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills. In his suit against the city, a court would likely hold the printed-materials ban to be

a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
a. an unconstitutional restriction of speech.
California enacts a statute to ban advertising in "bad taste." This stat¬ute would likely be held by a court to be

a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
a. an unconstitutional restriction of speech.
A Minnesota state statute restricts certain kinds of advertising to protect consumers from being misled. A court would likely hold this statute to be

a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
b. constitutional under the First Amendment.
Machismo Motor Sales Corporation regularly advertises its off-the-road and all-terrain vehicles and other products. Under the First Amendment, these ads and other commercial speech are given

a. less protection than noncommercial speech.
b. more protection than symbolic speech.
c. no protection.
d. the same protection as defamatory speech.
a. less protection than noncommercial speech.
Cordial Drinks, Inc., markets alcoholic beverages. A federal regulation bans the disclosure of the alcohol content of liquor on Cordial's labels and those of other marketers. A court would likely hold this regulation to be

a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
a. an unconstitutional restriction of speech.
In 2010, Congress enacts the Act to Restrict Commercial Speech (ARCS). The ARCS will be considered valid

a. if it directly advances a substantial government interest but goes no further than necessary.
b. if it directly advances a substantial government interest regard¬less of how "far" it goes.
c. under any circumstances.
d. under no circumstances.
a. if it directly advances a substantial government interest but goes no further than necessary.
Brad stands in front of Rustler's Round-Up Café, shouting "fighting words" that are likely to incite Rustler's patrons to respond violently. The First Amendment protects such speech

a. all of the time.
b. none of the time.
c. only if it is noncommercial.
d. only if it is symbolic.
b. none of the time.
Adult Shoppe in Beach City sells a variety of publications, including child pornography. Beach City enacts an ordinance prohibiting the sale of such materials. This ordinance is most likely

a. an invalid restriction of individuals' privacy.
b. an unconstitutional restriction of speech.
c. a violation of adults' rights to enjoy certain privileges.
d. constitutional under the First Amendment.
d. constitutional under the First Amendment.
Melanie engages in speech that harms others' good reputations on her blog at no.lie.com. The First Amendment gives such speech

a. less protection than obscene speech.
b. more protection than symbolic speech.
c. no protection.
d. the same protection as any noncommercial speech.
c. no protection.
Oklahoma enacts a law requiring all businesses in the state to donate 10 per¬cent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. PriceLess Stores files a suit to block the law's enforcement. The court would likely hold that this law violates

a. no clause in the U.S. Constitution.
b. the establishment clause.
c. the free exercise clause.
d. the supremacy clause.
c. the free exercise clause.
Justice For All, a political organization, files a claim to challenge a Colorado statute that limits the liberty of all persons to broadcast "annoying" radio commercials. This claim is most likely based on the right to

a. equal protection of the law.
b. privacy.
c. procedural due process.
d. substantive due process.
d. substantive due process
The Constitution provides that no person shall be deprived of "life, liberty, or property without due process of law." Under this clause, "persons" include

a. animals and other "beings in nature."
b. buildings and other "manmade creations."
c. corporations and other "legal persons."
d. none of the choices.
c. corporations and other "legal persons."
Orin claims that a Pennsylvania state statute infringes on his "substantive due process" rights. This claim focuses on

a. procedures used to make decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Orin's privacy.
b. the content of the statute.
Marie claims that a Nebraska state statute infringes on her "procedural due process" rights. This claim focuses on

a. procedures used in making decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Mary's privacy.
a. procedures used in making decisions to take life, liberty, or property.
A Rhode Island state statute imposes a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this statute to be

a. constitutional under the due process clause.
b. constitutional under the equal protection clause.
c. unconstitutional under the due process clause.
d. unconstitutional under the equal protection clause.
c. unconstitutional under the due process clause.
Vacation Village enacts an ordinance to allow only a few street vendors to op¬er¬ate in certain areas, for the purpose of reducing traffic. A court would likely subject this ordinance to

a. a police power test under the commerce clause.
b. a "rational basis" test under the equal protection clause.
c. intermediate scrutiny under the due process clause.
d. strict scrutiny under the First Amendment.
b. a "rational basis" test under the equal protection clause.
Jon, a law enforcement official, monitors Kelsey's Internet activities—e-mail and Web site visits—to gain access to her personal financial data and student information. This may violate Kelsey's right to

a. equal protection of the law.
b. privacy.
c. procedural due process.
d. substantive due process.
b. privacy.
Krystal is a federal judge. Krystal's judicial decisions are part of case law. This law includes interpretations of primary sources of law. These sources include

a. administrative regulations.
b. articles in law reviews and other legal journals.
c. compilations summarizing court decisions on particular topics.
d. legal encyclopedias.
a. administrative regulations.
Lewis is a state court judge. Like other judges, Lewis often refers to secondary sources of law for guidance. These sources include

a. official comments to statutes.
b. other states' statutes.
c. state constitutions.
d. the U.S. Constitution.
a. official comments to statutes.
Under Ohio's state constitution, the Ohio Environmental Protection Agency issues a new rule, the Polk County Commission approves a new property tax measure, and the professors and students at Ohio Law School publish the results of their most recent legal research. Sources of law do not include

a. the measures approved by local governing bodies.
b. the results of legal scholars' research.
c. the rules issued by state administrative agencies.
d. the states' constitutions.
b. the results of legal scholars' research.
In Nebraska, the highest-ranking (superior) law is

a. a case decided by the Nebraska Supreme Court.
b. a provision in the Nebraska constitution.
c. a rule created by a Nebraska state administrative agency.
d. a statute enacted by the Nebraska legislature.
b. a provision in the Nebraska constitution.
Hawaii enacts a state law that violates the U.S. Constitution. This law can be enforced by

a. no one.
b. the federal government only.
c. the state of Hawaii only.
d. the United States Supreme Court only.
a. no one.
The legislature of the state of Missouri enacts a new statute that sets stan¬dards for the liability of businesses selling defective products. This statute applies

a. only in Missouri.
b. only in Missouri and its border states.
c. in all states.
d. in all states but only to matters not covered by other states' laws.
a. only in Missouri.
The River City Council, the Santa Clara County Board, the Texas state legislature, and the U.S. Congress enact laws. These laws constitute

a. administrative law.
b. case law.
c. stare decisis.
d. statutory law.
d. statutory law.
The U.S. Congress enacts a new federal statute that imposes liability on businesses emitting significant amounts of a certain pollutant into the environment. This statute applies

a. only to matters not covered by state law.
b. only to those states that adopt the statute.
c. to all of the states.
d. to none of the states.
c. to all of the states.
The Federal Trade Commission (FTC) is a government agency that issues rules, orders, and decisions. The Georgia state legislature enacts statutes. The Jackson County Board and the Peach City Council enacts or¬di¬nances. Administrative law includes

a. all law that affects a business's operation.
b. the rules, orders, and decisions of the Federal Trade Commission.
c. statutes enacted by the Georgia state legislature.
d. ordinances created by the Jackson County Board and the city coun¬cil of Peach City, Georgia.
b. the rules, orders, and decisions of the Federal Trade Commission.
Crater Tools Company may be subject to regulations issued by the Occupational Safety and Health Administration (OSHA). Like other administrative agencies, the OSHA affects

a. almost every aspect of a business's operations.
b. almost no aspect of a business's operations.
c. a firm's capital structure and financing, but nothing else.
d. a firm's hiring and firing procedures, but nothing else.
a. almost every aspect of a business's operations.
The Securities Exchange Commission (SEC) is an administrative agency. Like other administrative agencies, the SEC was established to

a. act as a liaison between federal and state governments.
b. impose uniform laws on the states.
c. perform a specific function.
d. standardize laws for the executive and judicial branches.
c. perform a specific function.
The federal government and the state governments constitute the U.S. le¬gal system. This system is based on the legal system of

a. Ancient Greece.
b. England.
c. France.
d. the natural law school.
b. England.
As a judge, Potter applies common law rules. These rules develop from

a. administrative regulations.
b. court decisions.
c. federal and state statutes.
d. proposed uniform laws.
b. court decisions.
Jill is an appellate court judge. In this capacity, Jill establishes a rule of law. Under the doctrine of stare decisis, the principle must be adhered to by

a. all courts.
b. courts of lower rank only.
c. that court and courts of lower rank.
d. that court only.
c. that court and courts of lower rank.
In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a con¬tract for the sale of a car. Now a trial court in the same state is decid¬ing Daphne v. Even Steven Auto Deals, Inc.,, a case with similar facts. Under the doctrine of stare de¬cisis, the trial court is likely to

a. allow the minor the Daphne case to cancel the contract.
b. disregard the Ben case.
c. order the minor in the Daphne case to cancel the contract.
d. require the minor in the Daphne case to fulfill the contract.
a. allow the minor the Daphne case to cancel the contract.
Sam is a judge hearing the case of Local Co. v. National Corp. Applying the relevant rule of law to the facts of the case requires Sam to find previ¬ously decided cases that, in relation to the case under con¬sidera¬tion, are

a. as different as possible.
b. as similar as possible.
c. at odds.
d. exactly identical.
b. as similar as possible.
In Sales Distribution Corp. v. Consumer Products Co., the court decides that a precedent is incorrect or in¬ap¬plicable. The court

a. may rule contrary to the precedent.
b. must apply the precedent.
c. must ask a higher court to rule on the case.
d. must refuse to decide the case.
a. may rule contrary to the precedent.
A state trial court has before it Eagle Manufacturing Co. v. Four Feathers Products Corp., a case with no binding authority. The court can

a. not refuse to decide the Eagle case.
b. postpone deciding Eagle indefinitely.
c. postpone deciding Eagle until there is binding authority.
d. refuse to decide Eagle.
a. not refuse to decide the Eagle case.
In an action against Elin, Frank obtains a remedy. This is

a. an administrative agency's enforcement of its rule.
b. a principle of the law derived from earlier court cases.
c. a statute enacted by a state legislature or Congress.
d. the legal means to recover a right or to redress a wrong.
d. the legal means to recover a right or to redress a wrong.
In Export Co. v. Imports, Inc., there is no precedent on which the court can base a decision. The court can consider

a. neither public policy nor social customs and values.
b. public policy only.
c. public policy or social customs and values.
d. social customs and values only.
c. public policy or social customs and values.
In a suit against Sandy, Taylor obtains a remedy. In the U.S. legal system, this remedy will most likely be

a. an injunction.
b. damages.
c. rescission.
d. specific performance.
b. damages.
Network Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to sell Network a computer system. Network is

a. the appellant.
b. the appellee.
c. the defendant.
d. the plaintiff.
d. the plaintiff.
MaxiMart, Inc., is a discount retailer. MaxiMart's customer service employees are on strike. Sixty of the workers block the entrances to one of MaxiMart's stores. To get them away from the doors, MaxiMart should seek

a. an injunction.
b. damages.
c. rescission.
d. specific performance.
a. an injunction.
In a suit against Clem, Dona obtains the cancellation of a contrac¬t. This is

a. an injunction.
b. damages.
c. rescission.
d. specific performance.
c. rescission.
In a suit against Owen, Phil obtains specific performance. This is

a. an order to do or to refrain from doing a particular act.
b. an order to perform what was promised.
c. a payment of money or property as compensation.
d. the cancellation of a contract.
b. an order to perform what was promised.
Grady is a judge. In his court, Grady may bar a suit if it is not filed within a proper time according to

a. a statute of limitations.
b. the doctrine of stare decisis.
c. the chancellor's discretion.
d. the king's conscience.
a. a statute of limitations.
To Cody, the written law of a particular society at a particular time is most significant. Cody is

a. a legal positivist.
b. a legal rationalist.
c. a legal realist.
d. a person who adheres to the natural law school.
a. a legal positivist.
Beth is a victim of Carl's violation of a criminal law. Criminal law is con¬cerned with

a. the prosecution of private individuals by other private individuals.
b. the prosecution of public officials by private individuals.
c. the relief available when a person's rights are violated.
d. wrongs committed against the public as a whole.
d. wrongs committed against the public as a whole.
When Overseas Exports, Inc., based in New York, does business internationally, the firm may be subject to international law. The sources of this law include

a. the laws of individual nations only.
b. treaties and international organizations only.
c. the laws of individual nations, and treaties and international organizations.
d. none of the choices.
c. the laws of individual nations, and treaties and international organizations.
The title of a case appears as "Duck Sales Corp. v. Egret Supply Co." The party in whose favor the case was decided

a. could be either party.
b. must be neither party.
c. must be Duck.
d. must be Egret.
a. could be either party.
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire's fa¬vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power's favor join in a third separate opinion.

These opinions are collected and published in volumes called

a. citations.
b. codes.
c. regulations.
d. reporters.
d. reporters.
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire's fa¬vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power's favor join in a third separate opinion.

Bellamy's opin¬ion is

a. a concurring opinion.
b. a dissenting opinion.
c. a majority opinion.
d. a per curiam opinion.
a. a concurring opinion.
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire's fa¬vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power's favor join in a third separate opinion.

The opinion joined by the four justices who favor Power is known as

a. a concurring opinion.
b. a dissenting opinion.
c. a majority opinion.
d. a per curiam opinion.
b. a dissenting opinion.
At a prison in Ohio, inmate Steve recruits other inmates to play Towers & Trolls, a potentially violent, fantasy, role-playing game. Ryan, the prison's warden, confiscates the game materials and bans its play at the prison. Under the principles discussed in "A Sample Court Case," Singer v. Raemisch, Ryan most likely acted

a. in violation of Steve's rights under the First Amendment.
b. reasonably in taking the game materials but not in banning its play.
c. reasonably in banning the game but not in taking the materials.
d. reasonably in the circumstances and under the law.
d. reasonably in the circumstances and under the law.
Standard Business Company appeals a decision against it, in favor of Top Flight Corporation, from a lower court to a higher court. Standard is

a. the appellant.
b. the appellee.
c. the defendant.
d. the plaintiff.
a. the appellant.