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1,204 terms

Department Exam

STUDY
PLAY
1.
_____ The offeror is the party with the power to decide whether to create a contract.
2.
_____ An offer made as a joke, where a reasonable person would conclude that it was made as a joke, cannot result in a contract.
3.
_____ The communication of an offer can be made by the offeror or the offeror's agent.
4.
_____ Generally, advertisements, catalogs, price lists, etc. are not treated as offers.
5.
_____ A counteroffer is treated as both a revocation and a new offer.
6.
_____ Consideration can consist of giving up a legal right.
7.
_____ A promise to act or to refrain from doing an act can serve as consideration.
8.
_____ The mirror image rule permits the offeree's acceptance of a contract to vary from the offer.
9.
_____ A person who delegates his contractual duties is fully relieved of any further duty to perform under that contract.
10.
_____ When both parties to a contract are minors, either or both of them may avoid the contract.
11.
_____ A parent or parents who sign a contract on behalf of their minor child may disaffirm the contract just as their child may.
12.
_____ A party who makes a mistake about the value of the object of a contract is normally permitted to avoid the contract.
13.
_____ A plaintiff must prove that he suffered actual injury to recover damages for fraud.
14.
_____ A party to a contract may delegate his rights arising from the contract to another person.
15.
_____ The nonbreaching party normally may not recover punitive damages in a breach of contract claim.
16.
_____ Expenses, such as those incurred to obtain performance from a source other than the original contracting party, are called consequential damages.
17.
_____ An express contract may be either written or oral.
18.
_____ An incidental beneficiary can directly sue the maker of a contract in the case of breach.
19.
_____ The mirror image rule requires that the acceptance exactly match the offer.
20.
_____ Giving up a legal right to do something is enough to legally qualify as consideration.
21.
_____ A quasi contract is another name for an oral contract.
22.
_____ "I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilateral contract.
23.
_____ If a person who has been declared incompetent by a court enters into an agreement, that agreement is void, because it does not meet all the requirements of a binding contract.
24.
_____ Alice makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract. Betty now realizes she was deceived and wants to get out of the contract. This contract is voidable at Betty's option only.
25.
_____ Nathan promises to take Debra to the show on Friday night. He then changes his mind so that he can stay home and study his business law. Nathan can be sued for breach of contract by Debra for breaking his promise.
26.
_____ Generally, an offer is effective as soon as it is dispatched.
27.
_____ An offer must be communicated to the offeree or his agent in order for the offer to be effective.
28.
_____ If Bill tells Sara that he will give her two days to decide if she wants to buy his car, he cannot sell it to anyone else during that time.
29.
_____ Generally, a contract exists when an offer has been accepted.
30.
_____ If the offer specifies it MUST be accepted by letter, a telegram will not be a valid means of acceptance.
31.
_____ If an offer states that it MUST be received by a certain date, receipt is presumed in those situations when acceptance is mailed.
32.
_____ The party to whom an offer is made is an offeree.
33.
_____ A counteroffer operates as a rejection of the original offer.
34.
_____ Contracts have a number of legally essential elements, among which are an agreement and consideration.
35.
_____ The law enforces all promises, therefore, all promises are contracts.
36.
_____ On July 12th, 2008, Louis offers to employ Teresa as head chef in his restaurant next year. The very next day, Teresa accepts the offer. The parties agree on a term of nine (9) months, and a $10,000 salary per month. Per their agreement, Teresa is to begin work on January 1. This contract falls within the scope of the statute of frauds, and thus will likely have to be in writing to be enforceable.
37.
_____ An offer can never be validly accepted by the offeree's silence.
38.
_____ Wendy offers to pay Jose $1,000 if he agrees to promise to paint her house this month. If Jose accepts the offer, it will create a unilateral, executed contract.
39.
_____ A contract to provide lawn and landscaping service for "the next six (6) months" falls within the scope of the statute of frauds, and must be in writing to be enforceable.
40.
_____ Fred offers to paint Debbie's home for $500. Debbie tells Fred she will only pay $450, and Fred agrees. Under these facts, Debbie is the "offeror."
41.
_____ Sarah, an artist, e-mails Patricia and offers to paint her portrait for $499.99. Patricia calls Sarah back and accepts the offer. Sarah promises to paint the portrait within one (1) year, if not sooner, and Patricia agrees to pay within six (6) months of the portrait's receipt. This is an enforceable, bilateral, executory contract.
42.
_____ Sue leases her 3 Bedroom, 2-bath home to Trisha for $300,000 for one year. The parties sign a written lease. Article 2-A of the UCC governs this contract.
43.
_____ Bob, a schoolteacher, sells his neighbor Sam an old office chair at a garage sale. Bob has given Sam an "implied warranty of merchantability."
44.
_____ Sue sells her 3 bedroom, 2 bath home to Trisha for $300,000. The parties sign a written contract. Article 2 of the UCC governs this contract.
45.
_____ A contract for lawn mowing services falls under the scope of Article 2 of the UCC.
46.
_____ For Article 2 of the UCC to apply, at least one party to the contract must be a merchant.
47.
_____ Pat, who owns an appliance store, has a garage sale at his home where he sells old furniture and books. He sells a set of books to his neighbor Judy. Pat is considered a merchant under Article 2 of the UCC in selling the books to Judy.
48.
_____ The UCC imposes a duty of good faith on the performance and enforcement of every contract it covers.
49.
_____ Under a unilateral contract only one party makes a promise.
50.
_____ A void contract is a contract that one or both parties may cancel, at their option.
51.
_____ A promises to pay B $50 if B will mow A's lawn. B completely and satisfactorily mows A's lawn. This is a unilateral contract.
52.
_____ An express contract is a contract that is evidenced by a writing.
53.
_____ A revocation normally is effective at the time it is dispatched by the offeror.
54.
_____ A rejection normally is effective at the time it is dispatched by the offeree.
55.
_____ The offeror's death automatically terminates an offer, but the offeree's death does not.
56.
_____ An advertisement offering a reward for the return of lost property usually is treated as an offer for a uilateral contract.
57.
_____ An assignee must give consideration to the assignor in exchange for the assignment.
58.
_____ In general, ambiguities in a written agreement are resolved against the party who drafted the agreement.
59.
_____ Under the "American Rule" governing successive assignments, the first assignee in time has the superior right.
60.
_____ Rolland just bought a new pair of eye glasses. He had to go to the eye doctor for an exam and to get a prescription. He then took the prescription to the eye-glass store to by his new glasses. Rolland's visit to the eye doctor is governed by the UCC; the purchase of his glasses from the eye-glasses store is not.
61.
_____ The mirror image rule permits the offeree's acceptance of a contract to materially differ from the offer.
62.
_____ A counter-offer will generally be treated as an implied revocation, and a new offer.
63.
_____ If a rejection is placed in the mail, with the proper address and postage, it will generally be considered effective on "deposit."
64.
_____ One of the key issues in a promissory estoppel case is whether the defendant made a promise to the plaintiff that the plaintiff detrimentally relied upon.
65.
_____ In order for an offer to be legally valid under the common law, it must have reasonably definite terms.
66.
_____ Advertisements are typically considered valid offers.
67.
_____ One purpose of contract law is to make business matters more predictable.
68.
_____ The elements to a contract are agreement, consideration, legality, and capacity.
69.
_____ Robert agrees to buy a car from Jane for $400. This contract must be in writing to be enforceable.
70.
_____ "I'll pay you $1,000 if you promise to paint my house this month." If the offeree accepts, this is a unilateral contract.
71.
_____ A person who makes a contractual offer is referred to as an "offeree."
72.
_____ A person who makes a contractual promise is referred to as a "promisee."
73.
_____ All promises are enforceable as contracts.
74.
_____ Advertisements are generally not considered as offers to enter into a contract.
75.
_____ Under the common law, an offeree's proposal to make a material change in the terms of an offer will most likely constitute a counter-offer.
76.
_____ Mary was mistaken about a material fact concerning a contract she made with Bob. Mary can avoid the contract on the grounds of "fraud."
77.
_____ Under the "mailbox rule," some acceptances are deemed effective upon dispatch.
78.
_____ A party can always avoid a contract on the basis of a unilateral mistake of value.
79.
_____ Agreement is usually evidenced by an offer and an acceptance.
80.
_____ An offeror's subjective beliefs or assumptions determine his or her intent to contract.
81.
_____ Under the common law, an offer must contain reasonably definite terms to be enforced.
82.
_____ An offer does not need to be communicated to the offeree to be effective.
83.
_____ A promise to do some specified thing in the future is an offer.
84.
_____ Any agreement made "after a few drinks" can be avoided for lack of seriousness of intent.
85.
_____ A price list is considered an offer.
86.
_____ An expression of opinion is not a valid offer.
87.
_____ When a contractor submits a bid for a construction project, the submission of the bid is an offer.
88.
_____ A "quasi-contract" is not really a contract.
89.
_____ An "express" contract must be in writing.
90.
_____ Parol evidence is never admissible.
91.
_____ If an offeree makes a counteroffer, he becomes the "counter-offeror."
92.
_____ The UCC applies to contracts for services as well as to contracts for the sale of goods.
93.
_____ Under the UCC, the mirror image rule applies in the same manner as under common law.
94.
_____ In ordinary sales transactions, the implied warranty of fitness for a particular purpose can be disclaimed, but the disclaimer must be in writing and conspicuous.
95.
_____ Implied warranties of merchantability can never be disclaimed.
96.
_____ A model used in connection with selling goods will usually amount to a warranty that the goods will be as the model indicates.
97.
_____ A statement that a particular truck can haul a 3,000 pound load would be treated as an opinion and would not become an express warranty.
98.
_____ The implied warranty of merchantability requires that goods be fit for the ordinary purposes for which they are intended.
99.
_____ For the implied warranty of fitness for a particular purpose to apply, the seller must have actually known the purpose for which the buyer was purchasing the goods.
100.
_____ An implied warranty of merchantability arises in every sale or lease by a merchant.
101.
_____ A seller's statement that "this is a terrific used car" generally creates an express warranty.
102.
_____ A buyer from a thief can acquire title to the goods as a good faith purchaser.
103.
_____ A contract for the sale of goods must include a price to be enforceable under the UCC.
104.
_____ In ordinary sales transactions, the warranty of title can be disclaimed or modified only by specific language in a contract.
105.
_____ Implied warranties of merchantability can never be disclaimed.
106.
_____ According to the UCC, unless otherwise specified or agreed upon, all goods in a contract must be rendered in a single delivery.
107.
_____ The UCC, not common law, covers the sale of real estate and services.
108.
_____ When an offer governed by the UCC does not specify a means of acceptance, it can be accepted by any means reasonable under the circumstances.
109.
_____ The UCC always governs breach of contract cases involving a combination of services and tangible movable goods.
110.
_____ In order to be liable for negligence a person must have owed a duty of care to the plaintiff.
111.
_____ Tim and his friend are playing catch in the back yard when Tim suddenly throws the ball over the fence into the neighbor's yard where it breaks a window. This is trespass to real property, even if Tim himself does not go onto the property to get the ball.
112.
_____ Truth is a complete defense to defamation.
113.
_____ Arthur offers Bob, an employee of Carl, a job with his company at a yearly salary of $10,000 more than Bob receives under the contractual relationship between Bob and Carl. Arthur knows about the contract between Bob and Carl and knows that the contract should run for another five years, but Arthur wants Bob to work for him. Arthur probably is liable to Carl for intentional interference with contractual relations.
114.
_____ The same act can never be both a tort and a crime.
115.
_____ Because he's a good friend, and has known Hilda a long time, Scott fixes Hilda's car as a surprise for her birthday. When Hilda sees it, she is so happy, she promises to give Scott $1000 the following week for doing the work. He gratefully accepts. A court would likely find that: 1) this promise to be supported by valid consideration; and 2) Hilda's promise to pay $1000 is enforceable as a contract.
116.
_____ One distinction between nuisance and trespass to land is that trespass to land involves intrusions by human beings, while nuisance involves intrusions by other forces.
117.
_____ In order to be liable for conversion, the defendant must know that the property rightfully belongs to someone else.
118.
_____ In a strict liability case, the plaintiff still must prove that the defendant breached a duty.
119.
_____ Even though no one else had developed an invention like that of the patent applicant, the application will be denied if, at the time of the invention, the invention would have been obvious to a person having ordinary skill in the area.
120.
_____ A copyright owner's failure to use a proper copyright notice does not cause her to forfeit copyright protection.
121.
_____ Consent can be raised as a defense to battery.
122.
_____ Bill dictates a letter to his assistant, Barbara. The letter is addressed to Betty Bonds, his accountant, and in it, he accuses Betty of being dishonest - when he knows she is not! Barbara never types the letter, and does not send it to Betty. Nevertheless, Bill has likely committed the tort of defamation.
123.
_____ In a defamation suit where the plaintiff is a "public figure," the defendant must prove that the plaintiff acted "with actual malice."
124.
_____ A fanciful use of ordinary words may be trademarked.
125.
_____ Tort law provides legal remedies for both personal injury and property damage.
126.
_____ In tort law, intent means only that the actor intended the consequences of his or her act or knew with substantial certainty that certain consequences would result from the act.
127.
_____ To commit an intentional tort, a person need not act with a harmful motive.
128.
_____ An assault may be committed when a person acts in a way so as to create an apprehension of offensive contact in the distant future.
129.
_____ A battery occurs only if the victim suffers actual physical harm.
130.
_____ Libel involves the written communication of defamatory language.
131.
_____ Puffery is fraud.
132.
_____ To commit the tort of trespass to land, a person does not need to actually harm the land.
133.
_____ Conversion is wrongfully taking or retaining an individual's personal property and placing it in the service of another.
134.
_____ An arbitrary use of ordinary words may not be trademarked.
135.
_____ A service mark is used to distinguish products produced by the federal government from those produced by private corporations.
136.
_____ Brad doesn't like Rob and especially dislikes Rob's new felt hat, so he intentionally knocks it off Rob's head in order to embarrass Rob. Brad has committed a battery.
137.
_____ In a defamation action, the plaintiff must prove that the defendant communicated a false statement to a third party.
138.
_____ A tort is a violation of a duty imposed by the civil law.
139.
_____ Under the new Restatement (Third) of Torts, a manufacturing defect exists only when it is shown that: 1) the product has departed from its intended design; and 2) the manufacturer failed to exercise "due care" in the manufacturing process.
140.
_____ Written defamation is called "slander."
141.
_____ Opinion is generally a valid defense in a defamation lawsuit because it cannot be proven to be true or false.
142.
_____ In order for a plaintiff to win a case involving intentional infliction of emotional distress, she must prove the defendant acted in an extreme and outrageous manner.
143.
_____ Prior to any battery, an assault (even if only momentarily) must have occurred.
144.
_____ Punitive damages are intended to punish the defendant.
145.
_____ An employee who divulges secret trade information cannot be sued.
146.
_____ Infringement is the unauthorized use of the intellectual property of another
147.
_____ Electronic surveillance for the purpose of acquiring trade secrets is permissible under the law of unfair competition.
148.
_____ For a mark to be protected under federal law, it must be registered with the Patent and Trademark Office.
149.
_____ Trade secrets are information held as confidential by a company and its employees.
150.
_____ A trademark differs from a service mark in that the latter describes services.
151.
_____ A copyright does not last forever.
152.
_____ A copyright would protect a photograph.
153.
_____ Georgia's company may lawfully discover Samantha's company's trade secrets if Samantha's company fails to take reasonable precautions to protect their trade secrets.
154.
_____ A patent may be renewed.
155.
_____ Knowing and intentional infringement of a mark can be a criminal offense.
156.
_____ Komco Computer Company has developed a new and innovative magazine and television ad campaign that it would like to protect from use by its competitors. Komco may copyright its magazine and television ads.
157.
_____ The word "truck" cannot be a trademark for trucks, although it could be a trademark for a new brand of designer jeans.
158.
_____ A patent is available for an idea as well as a tangible application.
159.
_____ Computer software may be patentable.
160.
_____ If a trademarked name acquires a generic meaning the owner of the trademark loses protection.
161.
_____ Persons found liable for a tort usually must either pay a fine or serve time in prison.
162.
_____ Some torts are crimes.
163.
_____ "Res ipsa loquitur" means "the thing speaks for itself" and raises a presumption of breach of duty and causation in negligence cases.
164.
_____ The plaintiff's burden of proof in a tort action is beyond a reasonable doubt.
165.
_____ Bob writes an all-new, original, marching song. Bob's song is copyrightable.
166.
_____ Dan lends Susan $500. She agrees to pay Dan $100 a month until the $500 is paid. She gives Dan her diamond ring to hold until she fully satisfies the debt. The ring is "collateral."
167.
_____ Filing a petition for bankruptcy automatically stays most legal actions filed against the debtor.
168.
_____ Bob throws a ball across his neighbor's property, and the ball then lands in the street; this could constitute "trespass to land."
169.
_____ Bob sends Larry Lawyer, his attorney, a letter in which he accuses him of being "an incompetent lawyer." Larry is not incompetent, and Bob knows that the statement he is making is false. This constitutes the tort of defamation.
170.
_____ A party trying to establish mutual mistake as a defense to the enforcement of a contract must show that the other party had "scienter" (guilty knowledge) of the mistaken fact.
171.
_____ A security interest is not enforceable after the creditor's rights have attached to the collateral.
172.
_____ A chair bought by a business office would be classified as a consumer good.
173.
_____ In order for an artisan's lien to be valid, the lienholder normally must have possession of the property.
174.
_____ Where the creditor has possession of the collateral, the security agreement may be oral.
175.
_____ A security agreement may cover after-acquired property of the debtor--if it says so.
176.
_____ Attachment of a security interest is a necessary condition for its perfection.
177.
_____ Bob has not paid his ex-wife alimony as required under court order. His ex-wife is trying to collect the alimony Bob owes her. Bob files a bankruptcy petition. This automatically stays his ex-wife's collection efforts.
178.
_____ Negligence may best be described as an intentional tort.
179.
_____ When a court determines whether the defendant has breached his or her duty of care to the plaintiff, the court asks whether the defendant acted the way a reasonable person would in similar circumstances.
180.
_____ Compensatory damages include damages for past and future pain and suffering.
181.
_____ A company is generally not liable for the criminal acts of its employees.
182.
_____ One who participates in an activity subject to strict liability will be held liable for damages resulting from the activity even if he exercised reasonable care in undertaking the activity.
183.
_____ Strict liability for defective products requires the plaintiff to show there was a defect in the product that caused the injury.
184.
_____ In some cases, failure to warn about a product's dangers can make an otherwise safe product defective.
185.
_____ Generally, sellers must design their products to be safe when foreseeably misused.
186.
_____ To succeed in a product liability suit based on strict liability, a plaintiff does not need to prove why or how a product became defective.
187.
_____ Defendants who engage in ultrahazardous activities are almost always strictly liable for any harm they cause.
188.
_____ A defendant who engages in an ultrahazardous activity is liable for any harm that results from the activity.
189.
_____ Unless the warranty of merchantability is expressly disclaimed, all merchants warrant that the goods they sell are fit for the general purpose for which they are intended to be used.
190.
_____ A security interest is enforceable only if the collateral is in the possession of the secured party.
191.
_____ To have an enforceable security interest in collateral that is in the possession of the secured party, there must be a written security agreement.
192.
_____ A security interest is not enforceable unless the creditor's rights have attached to the collateral.
193.
_____ A security agreement's description of collateral as "all the debtor's assets" is sufficient to reasonably identify the property.
194.
_____ To create an enforceable security interest, the secured party must give value.
195.
_____ Collateral is not the subject of a security interest.
196.
_____ An authenticated security agreement can be in an electronic medium.
197.
_____ For a creditor to have an enforceable security interest, it is necessary that the debtor have rights in the collateral.
198.
_____ A chair bought by a business office would be classified as a consumer good.
199.
_____ A financing statement is effective even if it is filed electronically.
200.
_____ For a financing statement to be valid, it must contain a description of the collateral.
201.
_____ An improper filing does not render a secured party unperfected.
202.
_____ The state office in which a financing statement should be filed depends on the debtor's location.
203.
_____ A pledge is a promise made by a debtor to take reasonable care of the property.
204.
_____ Filing a financing statement with the appropriate public office is the only way to perfect a purchase-money security interest in consumer goods.
205.
_____ A purchase-money security interest in consumer goods is perfected automatically at the time of a credit sale.
206.
_____ A purchase-money security interest arises when a seller or lender provides a buyer with the "purchase money" to buy goods.
207.
_____ A mechanic's lien can be enforced to obtain payment for work that adds value to personal property.
208.
_____ A creditor with a mechanic's lien on property can prevent the sale of the property but cannot sell the property to satisfy the debt.
209.
_____ A debt does not have to be past due before a creditor can begin legal action against a debtor.
210.
_____ An artisan's lien is effective only if a creditor has possession of the property.
211.
_____ If a debtor cannot, or will not, pay a judgment, a creditor can only resort to "self-help" to collect.
212.
_____ A writ of execution is a court order to seize a debtor's property after the entry of a final judgment in a creditor's lawsuit against the debtor.
213.
_____ In a contract of suretyship, the surety is secondarily liable on an obligation and becomes primarily liable only when the debtor cannot pay the debt.
214.
_____ Before a surety can be required to answer for the debt of a debtor, the debtor must have defaulted on the underlying obligation.
215.
_____ A contract of suretyship must be in writing to be enforceable
216.
_____ A surety can use any defenses available to a debtor to avoid liability on the obligation to the creditor.
217.
_____ Bankruptcy law has one goal: to ensure equitable treatment to creditors who are competing for a debtor's assets.
218.
_____ Bankruptcy proceedings are held in federal bankruptcy courts.
219.
_____ A bankruptcy court looks at the totality of a debtor's circumstances to determine whether the debtor's petition for relief under Chapter 7 constitutes substantial abuse.
220.
_____ The filing of a petition for bankruptcy will automatically stay most legal actions against the debtor.
221.
_____ It is possible, on a debtor's bankruptcy, that an unsecured creditor might receive nothing to cover the debt.
222.
_____ A creditor's extension of time to a debtor for making payment, without the consent of the surety, will not discharge the surety.
223.
_____ Filing bankruptcy will automatically discharge all debts, including student loans and child support payments.
224.
_____ A creditor with an artisan's lien on property can sell the property to satisfy the debt.
225.
_____ A guarantor is secondarily liable on an obligation.
226.
_____ A guarantor becomes primarily liable only when a debtor cannot pay a debt.
227.
_____ Before a surety can be required to answer for the debt of a debtor, the debtor must have defaulted on the underlying obligation.
228.
_____ In order for a contract to be valid, it must:
a.
be made by a writing signed by adults
b.
be fully performed on both sides
c.
contain an offer, acceptance, and consideration
d.
be properly filed
229.
_____ Consideration can best be described as:
a.
Something of legal value
b.
Thinking about entering into a contract
c.
A counteroffer
d.
A signature on a contract
230.
_____ In order for someone to avoid a contract on the grounds of intoxication, the level of intoxication must have been:
a.
At or above the legal limit
b.
Only high enough that he was able to notice it
c.
At least as high as that of the other party
d.
So great that he didn't comprehend the nature of the agreement he was entering into
231.
_____ Jill, aged 30, enters into a written contract for the sale of her car with Ginny, aged 17. Under these facts:
a.
Jill may disaffirm the contact since Ginny is a minor
b.
Ginny can disaffirm the contract but only until a reasonable time after she turns 18
c.
The contract is void
d.
The contract is illegal
232.
_____ If a contract or contract clause is found to be unconscionable, the courts can do which of the following?
a.
Refuse to enforce the contract
b.
Refuse to enforce only the unconscionable portion
c.
Limit the application of the unconscionable portion
d.
a, b, and c
233.
_____ George and Martha enter into an oral contract for the sale of George's office building. Before Martha takes possession, this contract is:
a.
Enforceable by George only
b.
Enforceable by Martha only
c.
Enforceable by either party
d.
Not enforceable
234.
_____ Mike makes a contract with Rich with the intent to benefit Mary. This is:
a.
An assignment
b.
A delegation
c.
A third party beneficiary contract
d.
None of the above
235.
_____ Sue makes a contract with Tom that indirectly benefits Judy, although neither Sue nor Tom intended that result. Judy is:
a.
An assignee
b.
An assignor
c.
An intended beneficiary
d.
An incidental beneficiary
236.
_____ John offers to pay Mary $100 if she can drive at 100 miles per hour on Interstate 95 for at least five minutes. If Mary drives her Mustang at 100 miles per hour on Interstate 95 for six minutes, she and John will have formed
a.
A bilateral contract
b.
A unilateral contract
c.
A performance contract
d.
No contract
237.
_____ Al tells Barb that he will buy her textbooks from the previous semester for $75. Barb agrees. Al and Barb have:
a.
An express contract
b.
An implied-in-fact contract
c.
An implied-in-law contract
d.
A quasi contract
238.
_____ One often hears the expression "time is of the essence" which suggests that doing things in a timely fashion is important. If that is the case, which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?
a.
Forty-eight hours
b.
Seven days
c.
Thirty days
d.
Forty-five days
e.
There is no set amount of time and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.
239.
_____ U.S. Stone promises to pay its employees a year-end bonus "if it seems like a good idea at the time." This is an example of:
a.
an enforceable promise
b.
an unconscionable promise
c.
an illusory promise
d.
a unilateral contract
240.
_____ Christopher promised to sell his car to Jason and Jason promised to pay Christopher $7,500 for the car. This contract may be classified as:
a.
a bilateral contract
b.
a unilateral contract
c.
a voidable contract
d.
none of the above
241.
_____ To be enforceable, a non-competition clause in an employment agreement must:
a.
be jus terci
b.
be notarized
c.
be reasonable in scope, time and geographical limitations
d.
all of the above
242.
_____ The elements of a valid contract include:
a.
Agreement
b.
Consideration
c.
Legality
d.
Capacity
e.
All of the above
243.
_____ Usually, quasi contracts are imposed by the court:
a.
On parties who would not otherwise enter into valid contracts
b.
To avoid the unjust enrichment of one party at the expense of another
c.
When the amount of the contract is for $499 or less
d.
If a formal seal on the contract is required
244.
_____ If Harry promises to pay Larry not to park in a no-parking zone in front of Harry's house, then the agreement is:
a.
Enforceable because Larry is giving up the right to do something that he could otherwise do in the absence of the agreement
b.
Enforceable because the agreement accomplishes Larry's goal that the no-parking zone in front of his house be kept clear
c.
Not enforceable because Larry has no legal right to park in the no-parking zone
d.
Not enforceable because the no-parking zone is owned by the city
245.
_____ U.S. Brokerage promises to pay its employees a year-end bonus "if it seems like a good idea at the time." This is an example of:
a.
An enforceable contract
b.
An unconscionable contract
c.
An illusory contract
d.
A unilateral contract
246.
_____ Joe has made an offer to Frank. Joe is therefore an offeror and Frank an offeree. Which of the following is a way in which Frank can manifest intent to enter into a contract with Joe?
a.
By performance only
b.
By a return promise only
c.
By performance or by a return promise
d.
By performance, by a return promise or by a counteroffer
e.
By a signed writing only
247.
_____ You offer $1000 to anyone who can return your lost cat, Kitty. John returns Kitty and requests the money, you however refuse to pay and argue that there is no binding contract. Which of the following is true regarding your position?
a.
You are incorrect because there is a binding bilateral contract
b.
You are incorrect because there is a binding unilateral contract which John accepted by performing
c.
You are correct because there is no binding bilateral contract
d.
You are correct because there is no binding unilateral contract
e.
You are correct because John acted incorrectly by the manner of attempted acceptance
248.
_____ Allison wishes to ensure that an offer from Jason to sell him (Allison) his speedboat is held open for a set period of time. Allison may do so by entering into a[n] ______________ contract with the Jason.
a.
Clear
b.
Explicit
c.
Unrevokable
d.
Option
e.
None of the above
249.
_____ Jim who is in declining health believed that he had only a few months to live. Not wanting to die alone, Jim asked Jane to quit her job in New York City and move down to South Florida to look after him until his death. He promised to leave his house for Jane after his death. Jane according quit her job and moved to South Florida to take care of Jim. Three weeks after Jane's move, Jim died. Unfortunately, there was not written agreements etc. and Jim's relatives wanted Jane out. The only way to avoid injustice here is to enforce the promise?
a.
Promissory agreement
b.
Promissory estoppel
c.
Quasi estoppel
d.
Quasi agreement
e.
Promissory performance
250.
_____ Joey went to the Harvest Festival, where he stopped at Anderson's booth where she was selling landscape paintings. Joey admired one of the paintings which did not appear to be for sale. Joey said to Anderson, "I will give you $200 if you give me that painting right now." Anderson said nothing in response, but she gave Joey the painting, and Joey gave her $200 in cash. This is an example of a contract that is now:
a.
Bilateral and executed
b.
Bilateral and executory
c.
Unilateral and executed
d.
Unilateral and executory
251.
_____ Joe goes to the dentist to have a tooth extracted. Joe never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later the dentist bills Joe, and Joe refuses to pay. After that, the dentist sues Joe. Which of the following is true?
a.
The dentist can recover under quasi-contract
b.
The dentist can recover under an implied contract theory
c.
a and b are true
d.
The dentist cannot recover because there was no express contract here
252.
_____ A makes an offer to sell B some land, using a normal letter. The offer says nothing about an authorized or stipulated means of acceptance. B accepts using a normal letter. Which of the following is true?
a.
The acceptance is effective upon dispatch
b.
The acceptance is effective when it is received
c.
The acceptance would be effective upon dispatch regardless of the means of communication used
d.
Two of the above are correct
253.
_____ Carlos has entered into a contract to sell his house to Juan. Carlos knows that the house has a bad termite infestation that significantly reduces the value of the house. However, the topic of termites never came up and Carlos did not volunteer any information about the termites. Juan is not aware of the termite problem. Under the law of most states, has legal misrepresentation occurred here?
a.
no, because Carlos made no statement that was false
b.
no, because a seller does not have a duty to reveal all faults
c.
yes, because a seller must always inform a buyer about defects that are not obvious
d.
yes, because this involved a latent defect in real estate
254.
_____ Punitive damages are most likely to be awarded in which of the following contract cases?
a.
Jack was not satisfied with the goods he purchased from Acme Company
b.
Jill rejected the portrait Hansel painted of her because it did not meet her satisfaction
c.
Big Insurance Company acted in bad faith in denying Pete's claim
d.
Henry breached his promise to Kate to perform accounting services
255.
_____ Paul promises to marry Sarah who in turn promises to marry Paul. The consideration for each promise is ______.
a.
A completed act, in this case the marriage
b.
The beginning of action in acceptance, even if it is not complete
c.
An acknowledgement of each party's promise
d.
A return promise
e.
An agreement to marry
256.
_____ A promise to do something that you are already obligated to do is ______.
a.
Valid consideration because it is illusory consideration
b.
Valid consideration only in the employment context
c.
Valid consideration because it is past consideration
d.
Valid consideration only if a sale of goods is involved
e.
Not valid consideration
257.
_____ The elements of promissory estoppel include all of the following except:
a.
Agreement
b.
Consideration
c.
Capacity
d.
none of the above
258.
_____ Christopher promised to sell his car to Jason and Jason promised to pay Christopher $7,500 for the car. The parties have not yet performed their respective promises. This contract may be classified as:
a.
an executed, bilateral contract
b.
an executory, unilateral contract
c.
an executory, bilateral contract
d.
an executed, unilateral contract
259.
_____ May tried to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick's Pre-owned Autos, hands May $10. This is:
a.
a valid acceptance because May is seriously frustrated
b.
a valid acceptance because Nick is a car dealer
c.
not a valid acceptance because May does not seriously intend to sell
d.
not a valid acceptance because Nick is a car dealer
260.
_____ Alan, a representative of Beta Services, Inc., makes an offer to Carol, the owner of Delta Products, Inc. The offer is effective even if:
a.
Alan does not communicate it to Carol
b.
Alan secretly does not intend to be bound by the offer
c.
Carol is not capable of accepting the offer
d.
the terms of the offer are not reasonably definite
261.
_____ Owen announces that he plans to sell his business, Payroll Service Company (PSC), at a price below its market value. Quality Bookkeeping, Inc., gives Owen a check for the stated amount. Owen:
a.
Is bound to sell PSC to Quality Bookkeeping
b.
May refuse to accept the check, because he only expressed an intent to do something in the future
c.
May refuse to accept the check, because he only expressed an opinion as to the worth of the business
d.
May refuse to accept the check because he only expressed a willingness to discuss a possibility of entering into a contract
262.
_____ Ellen is selling her classic cars in an auction "without reserve." During the auction, Ellen can withdraw the cars:
a.
at no time
b.
before the auctioneer announces that the cars have been sold
c.
before the cars are delivered to the buyers
d.
only if the bids are extremely low
263.
_____ Which of the following is true regarding promissory estoppel?
a.
it requires that the promisor should reasonably expect to induct the promisee's action or forbearance
b.
damages awarded for promissory estoppel always equal the value of the promise relied upon by the promise
c.
it requires consideration
d.
it applies only when one or both parties is a merchant
264.
_____ An oral contract that is covered by the statute of frauds is:
a.
Voidable
b.
Void
c.
Unenforceable
d.
Executory
265.
_____ An executed contract is one that:
a.
Has been terminated by operation of law
b.
Has been terminated by the parties voluntary agreement
c.
Has been fully performed by one or both parties
d.
Has been fully performed by both parties
266.
_____ An executed contract is one that:
a.
Has been terminated by operation of law
b.
Has been terminated by the parties voluntary agreement
c.
Has been fully performed by one or both parties
d.
Has been fully performed by both parties
267.
_____ A contract whose formation is induced by duress (force or compulsion) is:
a.
Void
b.
Voidable
c.
Unenforceable
d.
Executory
268.
_____ A void contract:
a.
Is a contract that one or both parties can cancel at their option
b.
Is a contract, even though the courts will not enforce it
c.
Creates no legal obligations
d.
Is a contract that is created by operation of law rather than by the agreement of the parties
269.
_____ Which of the following cannot be disaffirmed until after the age of majority?
a.
A contract that affects title to real estate
b.
A contract for a necessary
c.
A contract that is fully executed
d.
A contract for the sale of goods
270.
_____ Contracts made by severely intoxicated people:
a.
Are void rather than voidable
b.
Cannot be disaffirmed until the person has regained his mental faculties
c.
Cannot be ratified until the person has regained his mental faculties
d.
Are always binding, because the law does not want to reward drug or alcohol abuse
271.
_____ In order to satisfy the Statute of Frauds, the parties' writing must:
a.
Be signed by both parties
b.
Be notarized
c.
Be signed by the party to be charged with enforcement of the contract (the person using the statute of frauds as a defense) or his agent
d.
Contain all the necessary contract terms in one document
272.
_____ First National Bank offers to lend money to Todd at 15% interest. Before Todd accepts the offer, a statute is enacted prohibiting loans at interest rates greater than 12%. According to common law, Todd and the bank have:
a.
A contract for a loan at 15% interest
b.
A contract for a loan at 12% interest
c.
A contract for a loan at no interest
d.
No contract for a loan
273.
_____ Bill contracts to repair a computer for National Distributors. Bill knows that without the computer, National will lose an important sale. Bill does not repair the computer on time, and National files suit against him. As consequential damages, National might be able to recover:
a.
The loss of profit National experienced as a result of the computer not being repaired on time
b.
The cost of a replacement computer
c.
The difference between Bill's quote to repair the computer and what it actually costs National to have the computer repaired
d.
Nothing
274.
_____ The Statute of Frauds is:
a.
A defense to prevent the enforcement of an oral contract
b.
A claim stated by the nonbreaching party
c.
A criminal wrong that requires intent
d.
A civil wrong under the theory of negligence
275.
_____ Edgar promises Alice that a certain used car is a "real gem." Edgar offers to let Alice take the car for a test drive, but Alice declines. She pays for the car and drives off but soon realizes that the car's suspension system is in poor condition. Alice:
a.
May rescind the contract on the grounds of unilateral mistake
b.
May rescind the contract on the grounds of fraud
c.
May rescind the contract on the grounds of misrepresentation
d.
Was not defrauded
276.
_____ George and Martha enter into an oral contract for a sale of George's tree farm. Before Martha takes possession, under the Statute of Frauds this contract is:
a.
Enforceable by George only
b.
Enforceable by Martha only
c.
Enforceable by either party
d.
Not enforceable
277.
_____ Each of the following is a requirement, or an element, for a contract to be valid except:
a.
Capacity
b.
Agreement
c.
Legality
d.
Offer
e.
Consideration
278.
_____ Acceptance of a bilateral contract occurs:
a.
When there is an exchange of a promise for an act
b.
Only if there is no detrimental reliance
c.
At the time of actual performance
d.
By the exchange of promises
279.
_____ The day before the final exam, Professor Jones tells the class: "I promise to give everyone an "A" on this exam, and you don't have to do a thing for it!" Upon hearing this, Christopher yells "yippee!!" and throws his textbook out the window (where it is promptly set upon and completely destroyed by the FAU owl!). When the grades come out, Christopher receives an "F." Christopher's best argument to enforce Professor Jones' promise would probably be:
a.
res ipsa loquitor
b.
quasi-contract
c.
impossibility (it was impossible for him to pass)
d.
implied-in-fact contract
e.
promissory estoppel
280.
_____ Trevor offers a reward for the return of his golden retriever, "Six." He posts signs all over the neighborhood, but not on his own block. Justin, his 15-year old next door neighbor, finds Six at the park, and delivers him to Trevor - without seeing the reward signs or knowing about the reward offer! Trevor is happy to get Six back, but refuses to pay Justin any reward. If they go to court and litigate the matter, what will each likely argue?
a.
Justin will argue promissory estoppel; Trevor will argue that the contract it is voidable due to Justin's obvious lack of capacity
b.
Trevor will argue that his offer to pay the reward was not effective as to Justin, as Justin did not know of the offer; Justin will seek relief for unjust enrichment under a quasi-contract theory
c.
Trevor will argue lack of capacity; Justin will claim "implied promissory estoppel"
d.
none of the above
281.
_____ The mailbox rule means the:
a.
Offers and acceptances must be communicated in a certain way to be effective
b.
Offers and acceptances are effective at the time they are mailed
c.
In some cases, a properly dispatched, or sent, acceptance is effective even if the offeror never received it
d.
A properly dispatched, or sent, revocation of an offer is effective when mailed even if the offeree never received it
282.
_____ A contract in which both parties exchange promises is a(n):
a.
A voidable contract
b.
Bilateral contract
c.
Unilateral contract
d.
Quasi contract
283.
_____ A person who makes a promise is a(n):
a.
Promisor
b.
Promise
c.
Offeror
d.
Executor
284.
_____ Which of the following is not generally required in order to have a valid contract?
a.
Mutual assent
b.
A lawful purpose
c.
A fair bargain
d.
Parties who have contractual capacity
285.
_____ Elvis makes an offer to Miguel, but before Miguel can accept, the state supreme court decides a case that makes the offer illegal. What is the effect of the court decision on the offer?
a.
The court decision automatically terminates the offer
b.
The court decision has no effect on the offer
c.
The court decision acts as a condition on the offer
d.
The court decision acts as a rejection of the offer by the offeree
286.
_____ In general, which of the following will not terminate an offer to purchase real property?
a.
The death of the offeree
b.
The death of the offeror
c.
An inquiry by the offeree as to size of the lot
d.
An acceptance that adds a material item
287.
_____ Lynn offers to sell his house to Dennis for $50,000. Dennis responds, "I will pay you $50,000 if you will paint the second floor." This response could be described as:
a.
An acceptance
b.
A counteroffer
c.
A rejection
d.
An invitation
288.
_____ Eddie agreed to sell stolen bicycles to Foster for $500 and Foster agreed to buy them. Which statement accurately describes their agreement?
a.
The agreement is a voidable contract, which the parties may later affirm
b.
The agreement is void and unenforceable
c.
The agreement is enforceable if it is stated in writing
d.
The agreement is a valid contract
289.
_____ Roger promised to sell his car to Reggie and Reggie promised to pay Roger $3,000 for the car. The parties have not yet performed their respective promises. This contract may be classified as:
a.
An executed, bilateral contract
b.
An executory, bilateral contract
c.
An executed, unilateral contract
d.
An executory, unilateral contract
290.
_____ Jackie offered to pay Glen $500 in consideration for Glen's complete trimming of all trees located on Jackie's property. This offer is an offer for a unilateral contract. Under these facts:
a.
Glen can accept the offer by promising to trim the trees
b.
Glen can accept the offer by completely trimming the trees
c.
Glen can accept the offer by promising to trim the trees or by completely trimming the trees
d.
Glen cannot accept the offer, offers for unilateral contracts are illegal
291.
_____ Gordon promises to pay Joseph $150 if Joseph promises to take notes for him next week in Business Law. Joseph agrees, and takes the notes. On Friday, he delivers the notes to Gordon, who pays him the $150. This contract is:
a.
voidable and unilateral
b.
bilateral and executed
c.
void and executory
d.
voidable and executed
292.
_____ Under the terms of a written contract, Jillian delivers certain goods to Mary with the agreement that she may use and test them for the purpose of determining whether she wishes to buy them. The title and risk of loss to the goods is to remain with Jillian until Mary calls and agrees to the sale. The best way to describe this transaction is as:
a.
a "merchant's" firm offer
b.
a sale on approval
c.
an entrustment
d.
a consignment
e.
none of the above
293.
_____ The common law governs contracts:
a.
For services
b.
For real estate
c.
For employment
d.
All of the above
294.
_____ Which of the following contracts would not be governed by Article 2 of the UCC?
a.
The sale of a car
b.
The sale of land
c.
The sale of furniture
d.
The sale of a case of Pepsi Cola
295.
_____ Under Article 2 of the UCC, a contract is usually enforceable even if which of the following terms is omitted:
a.
Price
b.
Quantity
c.
Price or quantity
d.
Neither price nor quantity
296.
_____ The doctrine of caveat emptor means:
a.
Let the seller beware
b.
Let the seller be liable for all damages
c.
Let the buyer beware
d.
That the legal remedy must be just and fair
297.
_____ The distinction between contracts that are covered by Article 2 of the Uniform Commercial Code (UCC) and those that are not is:
a.
Basically dependent upon whether the subject matter of the contract involves the purchase or sale of goods
b.
Based upon the dollar amount of the contract
c.
Dependent upon whether the Statute of Frauds is involved
d.
Of relatively little or no importance because the common law and UCC are invariably the same
298.
_____ Article 2 of the UCC does not apply to a sale of:
a.
Ball bearings
b.
Wheat that has been harvested
c.
Corporate stock
d.
A new car
299.
_____ Why does it matter whether or not a contracting party is an Article 2 merchant?
a.
Because this is the test for determining whether Article 2 applies
b.
Because contracts between merchants are covered by the Restatement (Second) of Contracts rather than by Article 2 of the UCC
c.
Because Article 2 sometimes creates different rules for merchants in sale-of-goods cases
d.
Actually, the term merchant has little or no practical significance
300.
_____ The "confirmatory memorandum" exception to the UCC's Statute of Frauds provision:
a.
Requires that the memorandum be signed by the party to be bound
b.
Requires that the memorandum be sent within ten days after the contract is made
c.
Applies even though the memorandum does not satisfy the UCC's writing requirement
d.
Requires that both parties to the contract be merchants
301.
_____ S and B make an oral contract whereby S agrees to sell B 480 widgets (goods) at a price of $480. Later, the parties want to modify the contract so that the price would become $520. This modification:
a.
Must be in writing
b.
Must be oral because the first contract was oral
c.
Can be oral but need not be
d.
Is unenforceable because the first contract is unenforceable
302.
_____ In order to recover for breach of an express warranty, a plaintiff must show that:
a.
the warranty was part of the basis of the bargain
b.
the seller gave a sample or model of the goods
c.
the warranty was in writing
d.
the warranty used the words "warrant" or "guarantee"
303.
_____ Intellex, a small computer chip-designing firm, contracts with Intech, a chip manufacturer, to design a new-generation computer chip. This contract is governed by:
a.
The common law of contracts
b.
Article 2 of the UCC
c.
Article 2A of the UCC
d.
There is not enough information to answer this question
304.
_____ Barry agrees to let Hillary work for him in his political campaign. She is to give speeches on his behalf, and generally try to persuade people to vote for Barry. In exchange, she is to be paid a yearly salary of $100,000. The contract is for two years, and is to commence next month. They both sign and date the agreement. Under these facts, Article 2 of the UCC requires:
a.
a signed writing
b.
that Hillary act in "good faith"
c.
that Bob conduct himself in a "commercially reasonable" manner
d.
both a and b above
e.
none of the above
305.
_____ The Benson Ball Bearing Company orally agrees to sell 10,000 boxes of ball bearings to the Smith Motor Company at a rate of $10 per box, for a total of $100,000, and Smith orally agrees to pay that amount. Benson delivers 5,000 boxes, but Smith refuses to pay, citing the Statute of Frauds. Here, Smith is obligated to pay:
a.
Nothing
b.
$50,000
c.
$75,000
d.
$100,000
306.
_____ The following will create an express warranty except:
a.
A material statement of fact
b.
A description of the item
c.
A statement about the value of the goods
d.
A sample of the item
307.
_____ Which of the following is not one of the aspects of the implied warranty of merchantability?
a.
The goods are fit for the ordinary purposes for which they are used
b.
The goods are adequately contained, packaged, and labeled
c.
The price of the goods is not excessive, taking into account the goods' grade and quality
d.
The goods are of such quality that they pass without objection in the trade
e.
The goods within each unit are of an even quality
308.
_____ Which of the following is not necessary in order for the implied warranty of fitness for a particular purpose to apply?
a.
The seller knows or has reason to know of the buyer's intended use of the good
b.
The seller is a merchant
c.
The seller states that the goods will serve the purpose of the buyer's intended use
d.
The buyer buys in reliance on the seller's skill and judgment
309.
_____ Randy bought a flashlight that was fully operable, however it had a small dent. If Randy sues for breach of implied warranty of merchantability:
a.
He may recover damages regardless of whether the seller was a merchant
b.
He may recover damages only if the seller is NOT a merchant
c.
He may not recover damages since the flashlight is fit for its ordinary purpose
d.
He may not recover damages since they did not have a valid contract
310.
_____ Uptown Office Systems pays Tech Products $100 to use a Tech computer for a month. Under the UCC, this will be considered
a.
A negotiable transaction
b.
A consignment
c.
A lease
d.
A sale
311.
_____ Jason purchased a used car from Car-Max when he was 17. The day after he turned 18, he decides he no longer wants the car and drives over to Car-Max. He tells the manager that he is exercising his right to disaffirm the contract and that the car is in the lot. He wants his money back. His right to disaffirm the deal will depend on:
a.
the car's condition when Jason bought it
b.
the car's current condition
c.
whether Jason acts within a reasonable period of time
d.
he cannot disaffirm, he is now an adult
312.
_____ Organics R Us promises to sell to Whole Foods 100 bushels of fancy red organic apples. A wild fire destroys Organic's orchard while being harvested. If Organics does not deliver 100 bushels as agreed:
a.
Whole Foods can enforce the contract because it has been breached
b.
Whole Foods cannot enforce the contract because it has been discharged
c.
Nothing happens, because the agreement has been suspended
d.
Whole Foods can buy 100 bushels from another vendor and sue Organic for the additional cost in obtaining 100 bushels from another vendor
313.
_____ Mark and Jason enter into a contract in which Mark agrees to deliver cement to Jason at a construction site. They neglect to include a price in the agreement. A court will
a.
Refuse to enforce the agreement
b.
Select the lower quoted price for cement and insert it into the contract
c.
Determine a reasonable price for the cement and insert it into the contract
d.
Refuse to hear the case
314.
_____ Ron and Wolf form a contract in which no mention is made of how the goods are to be delivered. In general, the UCC will require that the delivery take place at:
a.
The seller's place of business
b.
The buyer's place of business
c.
Either the seller's or the buyer's place of business
315.
_____ Grey contracts to purchase tea from Lipton but does not specify an exact amount of tea. Lipton subsequently breaches the contract. Grey will probably be:
a.
Unable to enforce the agreement under any circumstances
b.
Unable to enforce the agreement only if Grey's loss is substantial
c.
Able to enforce the agreement against Lipton for failing to sell Grey its output
d.
Able to enforce the agreement against Lipton for failing to supply Grey's requirements
316.
_____ Robert agrees to paint Amanda's leased home in return for $1000. The contract provides that Amanda will provide the paint for the job. This contract:
a.
is governed by Article 2 of the UCC
b.
is not governed by the UCC
c.
is governed by Article 2A of the UCC
d.
all of the above
317.
_____ National Vehicles contracts to sell ten P.T. Cruisers to Imperial Leasing, which contracts to lease the P.T. Cruisers to Recreation Rentals. Don, the owner of National Vehicles, gives a P. T. Cruiser to Paula. Article 2A of the UCC applies to:
a.
The sale only
b.
The lease only
c.
The sale and the lease only
d.
The sale, the lease, and the gift
318.
_____ Digital Computer Company agrees to sell Office Supplies, Inc. (OSI), computers for OSI to sell in its stores. Generally, a contract between these parties will be rendered unenforceable if it does not include:
a.
The location for delivery of the goods
b.
The method of payment for the goods
c.
The price of the goods
d.
The quantity of the goods
319.
_____ Lois offers to sell Clark fifty bushels of corn. Clark responds, "I agree to purchase fifty bushels only if the corn is Grade A quality." In these circumstances
a.
A contract is formed
b.
A contract is formed only if Lois can secure fifty bushels of Grade A corn
c.
Clark's statement is a counteroffer
d.
Clark's statement is an acceptance
320.
_____ Pastry chefs refer to a "baker's dozen" as consisting of a collection of thirteen baked goods rather than twelve (twelve is one dozen by definition). This is an example of:
a.
A course of dealing
b.
Trade usage
c.
Course of performance
d.
Caveat emptor
321.
_____ A contract between Fresh Fruit Corporation and Green Grocer, Inc., requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is:
a.
A shipment contract
b.
A destination contract
322.
_____ Dick steals Jane's watch and later sells the watch to Sally. Jane can recover the watch from Sally
a.
Under any circumstances
b.
Only if Sally knew that the watch was stolen
c.
Only if Sally did not know that the watch was stolen
d.
Only if Sally gave legally sufficient consideration for the watch
323.
_____ Laren Engineering contracts for a sale of flight instruments to Boyer Aircraft. Before the date on which performance is due, Laren notifies Boyer that it will not be able to perform the contract as agreed. This is:
a.
Anticipatory repudiation
b.
Perfect tender
c.
Rescission
d.
Revocation of acceptance
324.
_____ Suzanne purchases from the Hair Care Store a hair dryer that, according to the box it is packed in, contains three speeds and 1,500 watts. Suzanne subsequently discovers that the box contains only a towel with instructions. Suzanne may recover damages from the Hair Care Store due to its breach of:
a.
An express warranty
b.
A warranty of title
c.
The implied warranty of merchantability
d.
An implied warranty of fitness for a particular purpose
325.
_____ Ben, a salesperson for Pre-owned Motors, states to Joan that "this is the best vehicle ever designed." This statement creates
a.
An express warranty only
b.
An implied warranty of fitness for a particular purpose only
c.
Both an express warranty and an implied warranty of fitness for a particular purpose
d.
Nothing
326.
_____ Walt sells Ray a case of crystal goblets, but Ray refuses to examine the crystal for defects at the time of the sale. Ray later discovers a defect. Which of the following is true?
a.
Ray may recover damages from Walt for breach of the implied warranty of merchantability
b.
Ray may recover damages from Walt for breach of the implied warranty of fitness for a particular purpose
c.
Ray cannot recover from Walt since he waived his right to inspect
d.
Ray cannot recover from Walt since Walt is protected by the Statute of Frauds
327.
_____ If Bud threatens to shoot Steve with a gun that Bud knows is unloaded but Steve thinks is loaded:
a.
Steve cannot recover damages because he suffered no actual injury
b.
Steve can recover damages for battery
c.
Steve cannot recover damages because Bud did not intend to harm him
d.
Steve may recover damages for assault
328.
_____ Which of the following can be raised as a defense to a claim of defamation?
a.
That the statement was true
b.
That there was a constitutional privilege to comment about the plaintiff who is a public figure and that the statement was made without malice
c.
That there was a conditional privilege to make a defamatory comment on another's statements in order to protect legitimate self-interest
d.
All of the above
329.
_____ The tort of ______________ is a false communication which injures a person's reputation and good name by disgracing him and diminishing the respect in which he is held.
a.
False light
b.
False imprisonment
c.
Defamation
d.
Disparagement
330.
_____ While he is working for a local software company, Norbert secretly creates a completely original software game. To avoid being discovered, he does not register a copyright on the game. Under these facts, which of the following is not accurate?
a.
if the Company discovers the game, and sells it as its own, Norbert can immediately sue for copyright infringement in state court
b.
software is not generally copyrightable
c.
by failing to timely register a copyright, Norbert may have lost any right he had in the game to the Company
d.
all of the above
331.
_____ Bob sneaks up behind Robert and smacks him hard on the back of his head. These facts could constitute:
a.
the tort of assault
b.
the tort of battery
c.
assault and battery
d.
none of the above
332.
_____ Which of the following are not valid defenses to a claim for negligence:
a.
comparative negligence
b.
contributory negligence
c.
negligence per se
d.
assumption of the risk
e.
none of the above
333.
_____ The elements of a cause of action in negligence include all of the following except:
a.
the defendant must owe the plaintiff a duty of care
b.
an enforceable contract between the parties
c.
an injury caused by a breach of the applicable duty of care
d.
none of the above
334.
_____ Bill tells several people in his business law class that Mike, a fellow student, is "a dishonest criminal - and he has smallpox too." Which of the following facts, if true, would benefit Bill most if Mike were to sue him for defamation?
a.
Mike incurred no "special damages" as the result of the comments
b.
Mike is a dishonest criminal, and he does have smallpox
c.
Both a and b above
d.
None of the above
335.
_____ The seller of a defective widget is being sued by a buyer under a strict liability theory. Which of the following facts, if true, would not be beneficial to the seller's defense?
a.
that the seller was not engaged in the business of selling widgets
b.
that the widget had been altered after the seller sold it
c.
that the seller had taken all steps possible to ensure a safe product
d.
that the product was not unreasonably dangerous
336.
_____ Harold comes up with an idea for a new type of pen that can write underwater. Harold can protect his new pen idea by:
a.
A trademark registration
b.
A copyright registration
c.
Applying for patent
d.
A service mark registration
337.
_____ Jill develops a new espresso machine, which she names "Quik Shot." She also writes the operating manual to be included with each final product. Jill could obtain trademark protection for:
a.
the espresso machine only
b.
the name only
c.
the operating manual only
d.
the espresso machine, the name, and the operating manual
338.
_____ Bob pushes Carol. Carol falls and breaks her arm. Bob is liable for the injury:
a.
If Bob intended to push Carol
b.
Only if Bob did not intend to break Carol's arm
c.
Only if Bob had a bad motive for pushing Carol
d.
Only if Bob intended to break Carol's arm
339.
_____ Jill accuses of Ken of committing an assault. A person commits an assault if he or she creates in another an apprehension or fear of:
a.
Future harm
b.
Immediate harm
c.
Past harm
d.
Past, present, or future harm
340.
_____ Kate believes that George is about to hit her. To prevent harmful contact in dangerous situations, a person may use:
a.
Any force
b.
Any force, except force that is likely to cause death
c.
Force that is reasonably necessary to prevent the harmful contact
d.
No force
341.
_____ Larry is sued for assault and battery. Larry can raise defense of property as a defense to the charge of:
a.
Assault only
b.
Battery only
c.
Assault or battery
d.
None of the above
342.
_____ Ron, the manager of Sav-Mart Discount Store, detains Tina, whom Ron suspects of shoplifting. Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina:
a.
Did not actually shoplift
b.
Had not shoplifted in the past
c.
Had probable cause to leave the premises
d.
Was detained for an unreasonably long time
343.
_____ Mary is accused of slander. Slander includes:
a.
Oral defamatory statements only
b.
Written defamatory statements only
c.
Oral and written defamatory statements
d.
None of the above
344.
_____ Leo hears Mona falsely accuse Nick of stealing from their employer. The statement is defamatory:
a.
Because a third party heard it
b.
Only if Nick suffers emotional distress
c.
Only if the statement is also published in the media
d.
Only if the statement was made in an annoying manner
345.
_____ Assault and battery both require:
a.
Physical contact between the defendant's body and the plaintiff's body
b.
Awareness of the attempted physical contact at the time it occurs
c.
Reasonable apprehension of a harmful or offensive physical contact
d.
None of the above
346.
_____ Which of the following is generally true regarding the tort of conversion?
a.
It involves both real property (land and interests in land) and personal property
b.
As its name implies, conversion always involves the transformation of the plaintiff's property into something else--e.g., its destruction, alteration, etc.
c.
A defendant who buys or sells stolen property may be liable for conversion even if she does so in good faith and without knowledge of the theft
d.
Conversion involves all interferences with the plaintiff's property rights--whether serious or nonserious
347.
_____ Which of the following essentially is a "defense" to the negligence defense called contributory negligence--that is, something that will knock out an otherwise-good contributory negligence defense?
a.
Last Clear Chance
b.
Res Ipsa Loquitur
c.
Proximate Cause
d.
The "Substantial Factor" Doctrine
348.
_____ Bodily contact that is harmful or offensive can give rise to the tort of:
a.
Assault
b.
Battery
c.
Defamation
d.
Appropriation
349.
_____ Joe was angry with a clerk and, standing a foot away from the clerk, Joe drew his arm back with a clenched fist and stated, "I am going to punch your lights out." What tort did Joe commit?
a.
Libel
b.
False imprisonment
c.
Battery
d.
Assault
350.
_____ Which of the following statements about torts is correct?
a.
A tortious act is always a criminal act
b.
A criminal act is always a tortious act
c.
A tortious act may also be a criminal act
d.
All the above are correct
351.
_____ Punitive damages are intended to:
a.
Compensate the plaintiff for medical expenses
b.
Compensate the plaintiff for lost earnings
c.
Pay the plaintiff for pain and suffering
d.
Punish the defendant
352.
_____ Carlos loves venomous snakes and keeps a number of them at his house. He hits on Ana at a bar and offers to show her his collection. They go back to Carlos' house and Ana is rather impressed with the snakes. Carlos and Ana get amorous and CiCi, Carlos' favorite cobra become jealous. Cici manages to escape from her cage and strikes Ana sending her to the hospital for over a month. Ana sues Carlos. Carlos:
a.
will be strictly liable
b.
is not liable, Ana knew that Carlos had poisonous snakes and she assumed the risk
c.
Carlos Is liable only if he intentionally released the cobra from its cage
d.
is not liable. The cobra bite was unforeseen
353.
_____ Stan calls Sam on the telephone. Stan threatens Sam and tells him that he is coming over to his house the next day to hit him over the head:
a.
Stan has committed a battery
b.
Stan has committed an assault
c.
Stan has committed both a battery and an assault
d.
Stan has not committed an assault because there is no threat of an immediate bodily harm
e.
Stan has not committed an assault because he did not hit Sam
354.
_____ Albert, an entrepreneurial business law student decides to make some money by selling folders with unflattering pictures of all the business law professors. He does not have permission from any of them. Which of the following is true?
a.
Albert has slandered the professors. They are all great looking.
b.
Albert has libeled the professors. They are all great looking.
c.
Albert has appropriated for commercial gain the photographs and invaded the professors' privacy.
d.
Albert has not committed any tort.
355.
_____ Bud Weiser, a truck driver, is involved in an accident with Beemer Silver. He is charged in Broward County with the wrongful death of Beemer Silver. Bud is convicted and sentenced to prison. Beemer's wife:
a.
cannot sue Bud in tort for Silver's death because he already has been tried and double jeopardy bars it
b.
can sue Bud in tort for Silver's death because double jeopardy does not apply
c.
can ask the Broward County State Attorney to file a tort claim as a service to the victims
d.
does not have to do anything else. Bud lost and Mrs. Silver will be compensated for her loss
356.
_____ Hawk Hiking Shoes, Inc., uses Sierra Boots Corporation's mark in Hawk's advertising without Sierra's permission. This is:
a.
copyright infringement
b.
patent infringement
c.
trademark infringement
d.
violation of a trade secret
357.
_____ Ernie's Good Times Restaurant uses a distinctive decor, layout, menu, and style of service. This restaurant's image and overall appearance would be considered:
a.
A certification mark
b.
A collective mark
c.
A service mark
d.
Trade dress
358.
_____ Steve invents a new deep-sea fishing net, which he names "Good Catch." He also writes the operating manual to be included with each final product. Steve could obtain copyright protection for
a.
The fishing net only
b.
The name only
c.
The operating manual only
d.
The fishing net, the name, and the operating manual
359.
_____ Intellectual property consists of which of the following?
a.
Trade secrets
b.
Patents
c.
Trade symbols
d.
All of the above are considered intellectual property
360.
_____ Which of the following items would be patentable?
a.
A distinctive variety of an asexually reproducing plant
b.
A textbook
c.
The theory of relativity
d.
A computer program
361.
_____ The apple which identifies Apple Computers is an example of a:
a.
Trademark
b.
Service mark
c.
Certification mark
d.
Collective mark
362.
_____ An artist would like to protect one of his original oil paintings from being sold as original prints. He may protect his painting by applying for a:
a.
Copyright
b.
Patent
c.
Trademark registration
d.
Service mark registration
363.
_____ A sculptor wishes to protect one of his original works. He may do so by applying for a:
a.
Copyright
b.
Patent
c.
Service mark registration
d.
Trademark registration
364.
_____ Marks such as "Good Housekeeping Seal of Approval" and "Underwriter's Laboratory" are examples of:
a.
Service marks
b.
Certification marks
c.
Collective marks
d.
Trademarks
365.
_____ An example of a "certification mark" would be:
a.
Holiday Inns
b.
Xerox
c.
Real Cheese
d.
Nabisco
366.
_____ The requirements for a patent include all EXCEPT:
a.
The invention must be novel
b.
The invention must be nonobvious
c.
The invention must be practical
d.
The invention must be useful
367.
_____ Janice wrote a song called "Feelings of Love." She wrote the piano score and lyrics for a class she was taking at college and turned it into her professor.
a.
Janice's song was automatically copyrighted when she wrote it down on paper.
b.
If Janice wishes to enforce her copyright, she must first register her song with the Copyright Office.
c.
Both of the above are correct.
d.
Neither of the above is correct.
368.
_____ The Good Housekeeping Seal of Approval is an example of a:
a.
Trademark
b.
Service mark
c.
Collective mark
d.
Certification mark
369.
_____ The logo used to identify the Girls Scouts of America is called a:
a.
Trademark
b.
Service mark
c.
Certification mark
d.
Collective mark
370.
_____ McDonald's famous golden arches and other marks used by the company illustrate a:
a.
Trademark
b.
Service mark
c.
Certification mark
d.
Collective mark
371.
_____ Which of the following started out as a trademark name?
a.
Zipper
b.
Linoleum
c.
Nylon
d.
All of the above
372.
_____ Which of the following is not one of the general categories of torts?
a.
Strict liability
b.
Criminal
c.
Negligence
d.
Intentional
373.
_____ Damages intended to punish a defendant and deter the defendant and others from engaging in the same tortious conduct in the future are called:
a.
Consequential
b.
caveat emptor
c.
punitive
d.
res ipsa loquitor
374.
_____ E&E Explosives was testing some new explosive compounds at its testing facility outside of town. During testing, some new experimental explosives were set off. The reaction caused by these explosives caused an earthquake that damaged several buildings in the town. E&E exercised due care in testing these explosives, but this type of activity poses an inherent risk of harm to others no matter how careful E&E acts. Under these facts:
a.
E&E is liable for the damage to the buildings only if it intentionally tried to cause this harm
b.
E&E is liable for the damage to the buildings only if it acted negligently when testing these explosives
c.
E&E is liable for the damage to the buildings even if it did not intentionally or negligently cause this harm
d.
a and b
375.
_____ A negligence tort may be described as:
a.
One in which the degree of care taken never matters
b.
One in which the plaintiff must prove the defendant intended to harm her
c.
Unintentional or accidental
d.
Premeditated and malicious
376.
_____ In a negligence case, the plaintiff must establish:
a.
Duty, breach, causation, and injury
b.
Duty, breach, foreseeable harm, and injury
c.
Duty, breach, foreseeable harm, and causation
d.
Duty, breach, foreseeable harm, and injury
377.
_____ The burden of proof necessary in a tort action is
a.
Beyond a reasonable doubt
b.
Clear and convincing
c.
A preponderance of the evidence
d.
Substantial
378.
_____ Jennifer writes Maureen a nasty letter in which she says she is a dishonest accountant - even though she knows Maureen is not dishonest. Jennifer has committed which of the following torts:
a.
libel
b.
slander
c.
slander per se
d.
none of the above
379.
_____ Barry calls Hillary on the phone, and offers to sell her his car for $1000. Hillary says she accepts, and Bill tells her he will deliver the car to Hillary's home in the morning. On these facts:
a.
Barry and Hillary have an enforceable contract
b.
the agreement between Barry and Hillary is unenforceable
c.
Barry and Hillary have a voidable contract
d.
none of the above
380.
_____ John writes an e-mail (and sends it to all of his co-workers) that concerns his supervisor Frank's private financial affairs. Frank sues John for invasion of privacy. Which of the following facts, if true, would benefit John in his defense of that suit?
a.
the facts John disclosed were all true
b.
John was not acting with "actual malice"
c.
John believed the facts he disclosed to be true
d.
all of the above
e.
none of the above
381.
_____ Which of the following statements is correct?
a.
A plaintiff must show that the defendant's act was both the factual cause of her injury as well as a foreseeable injury.
b.
A plaintiff must show that the defendant's act was the factual cause of her injury even if the injury was not foreseeable.
c.
A plaintiff must show that the defendant's act created a foreseeable danger even if it was not the factual cause of her injury.
d.
A plaintiff does not have to show that the defendant's act either created a foreseeable danger or that the act was the factual cause of her injury.
382.
_____ Punitive damages are awarded:
a.
For past and future medical expenses
b.
For past and future economic loss
c.
To punish the defendant
d.
For past and future pain and suffering
383.
_____ Martha owns a demolition company. If a pedestrian is injured during a demolition conducted by Martha's company under the theory of strict liability, Martha would be liable:
a.
Only if her employees intended to injure the pedestrian
b.
Only if her employees knew that their actions would result in the injury
c.
Only if the injury was reasonably foreseeable
d.
Whether or not her employees were at fault
384.
_____ In order to recover in a products liability case based on strict liability, the plaintiff must prove that the product had a defect:
a.
That was caused by the defendant
b.
Of any type
c.
That made the product unreasonably dangerous
d.
That the defendant knew existed
385.
_____ If a manufacturer produces a defective product, and sells it to a wholesaler, who sells it to a retailer, who sells it to a consumer, who is injured, which parties in the chain of distribution are potentially liable under strict liability?
a.
Only the manufacturer
b.
Only the manufacturer and the wholesaler
c.
The manufacturer, wholesaler, and retailer
d.
Only the party at fault
386.
_____ New Capital Corporation has a security interest in property owned by Regal Medical Supply Company. As a creditor, New Capital's primary concern is whether:
a.
it has an enforceable security interest in Regal's property to satisfy the debt if Regal defaults
b.
its security interest in Regal's property, if enforceable, will take priority over the security interests and claims of other creditors
c.
both a and b
d.
none of the above
387.
_____ Ace Loan Company has a security interest in collateral owned by Best Tool & Die Company. A security interest in collateral:
a.
Eliminates the need for a financing statement
b.
Is enforceable when attachment occurs
c.
Is lost when attachment occurs
d.
Must be obtained by possession
388.
_____ General Credit Corporation lends funds to Cathy, a consumer, to apply to the cost of a sport utility vehicle. To have an enforceable security interest, the value that General Credit, or any creditor, must give to Cathy, or any debtor, may be:
a.
A binding commitment to extend credit
b.
Any consideration that supports a simple contract
c.
Any security given for a preexisting obligation
d.
Any of the above
389.
_____ Each of the following owns an All-Rite brand food processor: Diner's Restaurant; Eve, a consumer; Frank, a cooking-school student; and Great Deals, a discount store. As collateral, the processor that would be classified as inventory is owned by:
a.
Diner's Restaurant
b.
Eve
c.
Frank
d.
Great Deals
390.
_____ Bob, a forest-service engineer, buys a four-wheel-drive vehicle to use only for off-road recreational use. Under UCC Article 9, this vehicle would likely be characterized as:
a.
A consumer good
b.
An accession
c.
Equipment
d.
Inventory
391.
_____ Tom offers to sell United Produce Company a boxcar load of tomatoes. The offer is sent via Federal Express overnight because an acceptance is required urgently. It would be reasonable for United to accept via:
a.
a fax, a letter, or a phone call to Tom within two weeks
b.
a fax sent to Tom as soon as the offer is received
c.
a letter mailed to Tom two days later
d.
a phone call to Tom two weeks later
392.
_____ Discount Furniture Company, a creditor, allows Eve, a debtor, to have possession of goods that she bought from Discount even though she has not paid all of the debt. A legally sufficient financing statement need not include:
a.
A description of the collateral
b.
A statement of the reason for Discount's allowance
c.
Discount's name
d.
Eve's name
393.
_____ First Financial, Inc. files a financing statement regarding a transaction with Great Electronics Company. To be valid, the financing statement must contain all of the following except:
a.
A description of the collateral
b.
A statement of the purpose for the transaction
c.
The name of the debtor
d.
The name of the secured party
394.
_____ Credit Extender, Inc. (CE), a creditor, wants to perfect its interest in property owned by Dandy Goods, Inc. (DG). Filing a financing statement:
a.
Gives notice to other creditors of CE's security interest
b.
Is a technicality that has no practical effect
c.
Reduces CE, on DG's bankruptcy, to an unsecured creditor
d.
Transfers DG's property into CE's possession
395.
_____ Adam, a debtor, and Beth, a creditor, sign a security agreement containing a specific description of the collateral. Beth subsequently files a financing statement that contains a more general description. This description:
a.
Invalidates the financing statement only
b.
Invalidates the security agreement only
c.
Invalidates the financing statement and the security agreement
d.
Is sufficient
396.
_____ Ann owes Ben $500 on their contract, but refuses to pay. To collect, Ben files a mechanic's lien, under which security for the debt is represented by:
a.
Ann's personal property
b.
Ann's real estate
c.
The $500 owed under the contract
d.
The contract
397.
_____ A contract between Fresh Fruit Corporation and Good Grocer, Inc., requires Fresh Fruit to deliver goods directly to Good Grocer's place of business. This is:
a.
a shipment contract
b.
a commercial unit shipment contract
c.
an acceptance contract
d.
a destination contrac
e.
none of the above
398.
_____ Office Systems, Inc. pays Tech Products $100 to use a Tech computer for one year. This is:
a.
A sale
b.
A consignment
c.
A lease
d.
A sale on approval
399.
_____ Aaron, a jeweler, repairs Beth's necklace and returns it to her even though she does not pay for the repairs. To recover payment, Aaron can claim:
a.
A mechanic's lien
b.
An artisan's lien
c.
An innkeeper's lien
d.
None of the above
400.
_____ Tina operates a sole proprietorship, a corporation, and a partnership. Tina wants to obtain relief for her individual debts and the debts of her corporation and partnership. Tina may file a petition for each under:
a.
Chapter 7
b.
Chapter 9
c.
Chapter 11
d.
Chapter 13
401.
_____ Phil's voluntary petition for bankruptcy is found to be proper. The order for relief is effective as soon as:
a.
Phil files the petition
b.
Phil posts a bond to cover the costs of the proceedings
c.
Phil's creditors agree to the terms
d.
The trustee collects and distributes the property of Phil's estate
402.
_____ Ansel files a petition for bankruptcy. To give the court the information it needs to decide whether to grant Ansel's request for protection from his creditors, Ansel must include with his petition:
a.
A list of secured and unsecured creditors and the amount of debt owed to each
b.
A statement of Ansel's financial affairs
c.
A list of all the property owned by Ansel
d.
All of the above
403.
_____ Evan files for bankruptcy on Monday. He owes money to Fred, who has a valid security interest in Evan's bicycle. Fred, who is uneasy about Evan's ability to pay, but who does not know about the bankruptcy, tries to repossess the bicycle on Tuesday. Fred:
a.
Can repossess the bicycle and file suit for payment of the debt
b.
Can repossess the bicycle, but cannot file suit for payment of the debt
c.
Cannot repossess the bicycle, but can file suit for payment of the debt
d.
Cannot repossess the bicycle nor file suit for payment of the debt
404.
_____ Roberta goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when:
a.
A court grants a petition in bankruptcy that automatically stays all litigation by creditors against a debtor
b.
A debtor is unable to pay his or her debts as they come due
c.
A debtor's creditors force the debtor into bankruptcy proceedings
d.
A debtor's debts exceed the fair market value of his or her assets
405.
_____ Fred conceals assets from his bankruptcy proceeding with the intent to defraud his creditors. When this is discovered, the court may:
a.
Only deny a discharge
b.
Only distribute Fred's assets to his creditors
c.
Only order that Fred remain liable for the unpaid portions of the creditors' claims
d.
Deny a discharge, distribute Fred's assets to his creditors, and order that Fred remain liable for the unpaid portions of the creditors' claims
406.
_____ Best Credit Corporation lends funds to Cathy, a consumer, to apply to the cost of a sport utility vehicle (SUV), which is the collateral for the loan. An enforceable security interest requires:
a.
a written agreement and Best's possession of the SUV
b.
a written agreement or Best's possession of the SUV
c.
a written agreement only
d.
Best's possession of the SUV only
407.
_____ A voluntary petition under Chapter 7:
a.
Cannot be filed by an insurance corporation
b.
Requires that the debtor's debts exceed his assets by $5000
c.
Requires that the debtor have at least three creditors
d.
Cannot be made by an individual
408.
_____ A bankruptcy petition under chapter 7:
a.
Can only be filed by the debtor
b.
Can only be filed by the debtor's creditors
c.
Can only be filed by the trustee
d.
Can be filed either by the debtor or his creditors
409.
_____ All of the following can be used to perfect an UCC Article 9 security interest, except:
a.
a UCC-1 financing statement
b.
the creditor's possession of the collateral
c.
a security agreement
d.
none of the above
410.
_____ Bob, who works as a park ranger, buys a new motorcycle for $15,000 to drive on weekends. The UCC will likely define the bike as:
a.
consumer good
b.
an accession
c.
equipment
d.
inventory
411.
_____ Ben owes money to Sharon. Ben's mom, Shelly, orally agrees to assume Ben's debt to Sharon. Six months later, when Ben still has not paid Sharon, Sharon demands payment from Shelly. Shelly refuses to pay Sharon and tells her that the agreement is not in writing, that she does not have to pay. Sharon can enforce Shelly's promise to pay the debt if the promise benefits:
a.
Anyone
b.
Shelly
c.
Ben
d.
Sharon
412.
_____ John carelessly bumps into Sally, knocking her to the ground. John has committed the tort of negligence:
a.
Only if Sally is injured
b.
Only if Sally in not injured
c.
Whether or not Sally is injured
d.
Under no circumstances
413.
_____ In considering whether a product has been defectively designed, courts will consider all of the following facts except:
a.
the magnitude and probability of the foreseeable risks of harm
b.
the instruction or warnings accompanying the product
c.
consumer expectations about the product
d.
the likely affects of the alternative design on production costs
e.
none of the above
414.
_____ Someone injured by a product that was purchased new could recover on the basis of:
a.
Breach of warranty
b.
Breach of warranty or negligence
c.
Breach of warranty or strict liability
d.
Negligence of strict liability
e.
Breach of warranty, negligence, or strict liability
415.
_____ Late one night when driving home from work, Scott, a medical doctor, sees a car run off the road. He pulls over, and provides medical aid to the injured driver, who is lying there the entire time unconscious. Later Scott sends the driver a bill for the reasonable value of the services he rendered. Under these facts:
a.
Scott and the driver entered into an implied-in-fact contract
b.
The driver will likely have to pay under "promissory estoppel"
c.
The doctor is entitled to be paid under quasi contract
d.
All of the above
416.
_____ Irving, a professor at the local university, copies a chapter out of a textbook (without permission from the author), and passes the copies out to his students at no charge. If he is sued for copyright infringement, Irving will likely argue:
a.
the text book is not copyrightable
b.
fair-use
c.
absolute privilege
d.
none of the above
417.
_____ Peter publishes confidential information about Patricia over the internet. This could be the tort of:
a.
Defamation
b.
Conversion
c.
Public disclosure of private facts
d.
Harassment
e.
All of the above
418.
_____ Which of the following is not a warranty that could arise under Article 2 of the UCC?
a.
warranty of title
b.
warranty of habitability
c.
warranty of fitness for a particular purpose
d.
warranty of merchantability
419.
_____ Cecilia tells her accountant Robert: "In consideration of all of the work you have done for me last year, I promise to pay you a $10,000.00 bonus." Robert graciously thanks her and says "I accept your offer." Under these facts, Cecilia's promise:
a.
along with Robert's acceptance, created a valid, enforceable contract
b.
is illusory
c.
is likely unenforceable
d.
none of the above