BLaw - Midterm

Bee is an employee of Credit Agency Inc. On the termination of Bee's position, Credit pays Bee $10,000 to agree not to disclose the employer's confidential information. Later, Bee sells the information to Debt Records LLC for $100,000. In a suit for breach, Credit is most likely to recover a. all future profits from Debt. b. $10,000 from Bee. c. $100,000 from Debt. d. $110,000 from Bee.

$10,000 from Bee.

Under a state long-arm statute, a court can exercise jurisdiction only over certain nonresident defendants.

. True

A statute enacted by the Wyoming state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts will weigh the burden that it imposes on interstate commerce against a. the federal government's authority to regulate the matter. b. the state's interest in regulating the matter. c. the statute's impact on noneconomic activity. d. the purpose of interstate commerce.

. the state's interest in regulating the matter.

Section _______ of the __________ Act provides that U.S. antitrust laws can be applied to situations that occur outside the United States.

1 Sherman

The United Nations Convention on Contracts for the International Sale of Goods (CISG) was created in _________.

1980

A patent for an invention lasts for _____ years.

20

Choice of forum

A clause that sets out which country or location will be used to hear disputes about the contract

Choice of law

A clause that sets out which statutes, constitutions and regulations will be used to interpret provisions of the contract

Condition precedent

A condition in a contract that must be met before a promise becomes absolute

Condition subsequent

A condition in a contract that terminates a party's absolute promise to perform

Which of the following represents a condition precedent? a. A contract for life insurance predicated on the applicant passing a health examination. b. An employment contract between an accounting firm and accountant that allows for the termination of the employee in the event he is charged with a crime. c. A contract between a buyer and seller that provides for the delivery of goods in exchange for payment at the time of delivery.

A contract for life insurance predicated on the applicant passing a health examination

Sales contract

A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price

Covenant not to compete

A contractual promise to refrain from competing with another party for a certain period of time and within a certain geographic area

Reformation

A court-ordered correction of a written contract so that it reflects the true intentions of the parties.

Which of the following is NOT among the types of contracts and clauses that are often held to be contrary to public policy? a. An exculpatory clause b. A contract in restraint of trade c. A divisible, or severable, contract

A divisible, or severable, contract

Quotas

A limit on quantity of goods that can be imported

Collective mark

A mark used by members of an association or labor union to certify the region, materials, mode of manufacture, quality, or accuracy of the goods or services

Certification Mark

A mark used by one or more persons to certify the regional origin, quality or accuracy of a good or service

Service mark

A mark used in the sale or advertising of services to distinguish the services of one person from another

Which of the following is NOT a category of trade secret? a. A customer list b. Production techniques c. Pricing information d. A marketing logo

A marketing logo

Bilateral Mistake

A mistake made by both parties. If both parties are mistaken about a material fact, such as the identity of the subject matter, either party can avoid the contract. If the mistake relates to the value or quality of the subject matter, either party can enforce the contract.

Unilateral Mistake

A mistake made by only one of the parties. Generally, the mistaken party is bound by the contract, unless the other party knows or should have known of the mistake, or the mistake is an inadvertent mathematical error in addition, subtraction, or the like that is committed without gross negligence.

Which of the following has nothing to do with false imprisonment? a. An interference with the freedom to move without constraint. b. A person is made fearful of unwanted and possibly harmful contact with another person. c. Intentional confinement or restraint of another person's activities without justification.

A person is made fearful of unwanted and possibly harmful contact with another person.

In which of the following situations would strict liability apply: (Select all that apply) a. A company transports wheat for processing but does not exercise reasonable care at all times b. A person keeps a tiger as a pet, which bites a guest in the person's home c. A person keeps a rabbit as a pet, which bites a guest in the person's home unexpectedly d. A company who transports highly flammable gases but exercises reasonable care at all times

A person keeps a tiger as a pet, which bites a guest in the person's home A company who transports highly flammable gases but exercises reasonable care at all times

Which person can be judged criminally reckless? a. A person who is not aware of the circumstances b. A person who consciously disregards a substantial and unjustifiable risk c. A person who acts in an unconsciously risky manner

A person who consciously disregards a substantial and unjustifiable risk

Merchant

A person who is engaged in the purchase and sale of goods. Under the Uniform Commercial Code, a person who deals in goods of the kind involved in the sales contract

Intended beneficiary

A person who is not a party to a contract but who the contracting parties meant to benefit from the contract and has rights to sue if the contract is not performed

Third party beneficiary

A person who is not a party to a contract but who will benefit by the performance of the contract

Incidental beneficiary

A person who is not a party to a contract but who will benefit from the performance of a contract; this person has no right to sue if the contract is not performed

Rescission

A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made

Condition

A situation that will trigger an obligation under a contract or terminate an existing obligation

Nominal damages

A small monetary award granted when no actual economic harm has been done

Which of the following is NOT slander per se? a. A statement that another has committed improprieties while engaging in a business, profession, or trade b. A statement that another has committed or has been imprisoned for a serious crime c. A statement that another has engaged in a sexual affair while married d. A statement that another has a loathsome disease (such as sexually transmitted diseases or mental illness)

A statement that another has engaged in a sexual affair while married

Tariffs

A tax on goods that are imported

Predominant-factor test

A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services

Contributory negligence

A theory in tort law under in which a complaining party's own negligence contributed to or caused his or her injuries No matter how insignificant the plaintiff's negligence was relative to the defendant's negligence, the plaintiff is precluded from recovering any damages.

Comparative negligence

A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person's proportionate negligence

Which of the following occurrences will NOT terminate an offer? a. Acceptance b. Revocation c. Rejection

Acceptance

The doctrine of strict product liability does NOT apply to which of the following? a. Bottlers b. Distributors c. Processors d. Wholesalers e. Advertising agencies f. Manufacturers g. Assemblers h. Packagers i. Retailers

Advertising agencies

Which of the below is required for a seller or lessor to properly exercise a right to cure a defect in delivered goods? a. A delivery is rejected because the goods were nonconforming. b. The time for performance has not yet expired. c. The seller or lessor provides timely notice to the buyer or lessee of the intention to cure. d. The cure can be made within the contract time for performance. e. All of these

All of these

To successfully assert a design defect, a plaintiff has to show that a reasonable ____________ design was available and that the defendant's failure to ___________ the alternative design rendered the product _________.

Alternative, adopt, not unreasonably safe

Mutual rescission

An agreement between the parties to cancel their prior, valid agreement,

Accord

An agreement between two parties to substitute the consideration in a contract for new consideration

Requirements contract

An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires

Output contract

An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces

Licensing

An agreement to allow foreign manufacturers to use one's intellectual property to produce and sell goods in their countries

Joint venture

An agreement with a foreign company where the U.S. firm owns part of the operation.,

Penalty

An amount in the contract that sets forth a punishment for breach

Liquidated damages

An amount in the contract that sets forth a reasonable estimate of damages,

Which of the following statements could be a valid offer? a. A statement of an intention to do something in the future b. An auction without reserve c. Advertisements d. An invitation to negotiate e. An expression of opinion

An auction without reserve

Rescission

An equitable remedy to "undo" a contract

Reformation

An equitable remedy to correct a contract to accurately reflect the true intentions of the parties

Specific performance

An equitable remedy where a court orders one party to complete their obligations under the contract

Restitution

An equitable remedy where a person is returned to his or her original position

Anticipatory repudiation

An indication before the deadline of a contract by word or action that a party will not perform the obligations of the contract

Firm offer

An offer (by a merchant) that is irrevocable without consideration for a period of time (not longer than three months). A firm offer by a merchant must be in writing and must be signed by the offeror

________ is not copyrightable.

An original idea

Battery

An unexcused and harmful or offensive physical contact intentionally performed

Assault

Any intentional and unexcused threat of immediate harmful or offensive contact

Usage of trade

Any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that will be observed with respect the transaction in question.

The CISG is similar to ___________ of the UCC.

Article 2

Morabido mails registered letters, sends e-mails, and places ads in local newspapers where it sold a defective weed killer. Huntington knows of the recall but ignores it, applies the weed killer to his crops, suffers damages, and sues. Which defense can Morabido use at trial? a. Preemption b. Assumption of risk c. Causation

Assumption of risk

Punitive damages

Awarded in tort cases to punish the wrongdoer and to deter others from similar wrongdoing

Why can't you sue the manufacturer when a sharp knife cuts you? a. Because you implicitly signed an agreement against such lawsuits when you bought the knife. b. Because knife manufacturers are subject to market-share liability. c. Because there is a commonly known danger of cutting oneself when using a knife

Because there is a commonly known danger of cutting oneself when using a knife.

Under the __________ , when a U.S. citizen writes a book, every signatory to that convention recognizes the U.S. author's copyright. The ___________. Agreement establishes standards for international protection of patents, trademarks, and copyrights. The __________ Protocol allows a U.S. company to register its trademark abroad by submitting a single application and designating in which other countries the trademark shall be registered. And in 2011, a number of nations signed the _____________ Trade Agreement to combat piracy and global counterfeiting. Ch 8

Berne Convention, TRIPS, Madrid, Anti-counterfeiting

Wrongful act Civil Law? Criminal Law?

Civil: Causing harm to a person or to a person's property Criminal: Violating a statute that prohibits some type of activity.

Remedy Civil Law? Criminal Law?

Civil: Damages to compensate for the harm or a decree to achieve an equitable result Criminal: Punishment (fine, imprisonment, or death)

Party who brings suit Civil Law? Criminal Law?

Civil: The person who suffered harm. Criminal: The state

Burden of proof Civil Law? Criminal Law?

Civil: preponderance of the evidence. Criminal: Beyond a reasonable doubt.

____________ is a delivery model that enables delivery to users of on-demand services from third-party servers over a network. _________ is the sharing of resources (such as files, hard drives, and processing styles) among multiple computers without necessarily requiring a central network server.

Cloud computing Peer-to-Peer (P2P)

Statute of Frauds Requirements Common Law? UCC?

Common Law: All material terms must be included in the writing. UCC: Writing is required only for sale of goods priced at $500 or more, but the contract is not enforceable beyond the quantity specified.

Contract Terms Common Law? UCC?

Common Law: Contract must contain all terms UCC: Open terms are acceptable if parties intended to form a contract, but the contract is not enforceable beyond the quantity term.

Acceptance Common Law? UCC?

Common Law: Mirror image rule applies. If additional terms are added in acceptance, a counter-offer is create UCC: Additional terms will not negate acceptance unless acceptance is expressly conditioned on assent to the additional terms.

Contract Modification Common Law? UCC?

Common Law: Modification requires consideration UCC: Modification does not require consideration

Irrevocable Offers Common Law? UCC?

Common Law: Option contracts (with consideration). UCC: Merchants' firm offers (without consideration).

In 1980, Congress passed the _____________ , which amended the Copyright Act to include computer programs.

Computer Software Copyright Act

Punitive damages

Damages intended to punish wrongdoing

Compensatory damages

Damages that compensate the party for the loss of the bargain,

The ____________ was passed to give significant protection to owners of copyrights in digital information.

Digital Millennium Copyright Act

There is no ___________ to warn about risks that are commonly known. A seller must warn those who purchase its product of the harm that can result from the __________ misuse of the product. Courts apply a ____________ test to determine if the warnings adequately alert consumers to the product's risks.

Duty, foreseeable, reasonableness

Which of the following instances of circumvention (bypassing) of copyright are allowed under the Digital Millennium Copyright Act? Choose four. a. The test marketing of a new video game b. Enabling parents to monitor their children's internet use c. Protection of personal privacy d. Conducting encryption research e. The testing of computer security

Enabling parents to monitor their children's internet use Protection of personal privacy Conducting encryption research The testing of computer security

Which of the following would NOT be considered an exculpatory clause that a court would hold as contrary to public policy and therefore unenforceable? a. Exculpatory clauses in bungee-jumping contracts b. Exculpatory clauses in residential property leases c. Exculpatory clauses in contracts with employees d. Exculpatory clauses found in rental agreements for commercial property ch 12

Exculpatory clauses in bungee-jumping contracts

A color scheme can never qualify for trademark protection. a. True b. False

False

A company that provides a phone to an employee for business use is not prohibited from intercepting personal communications made on it. a. True b. False

False

A copyright is an intangible property right, meaning that you can touch and feel it. a. True b. False

False

A corporation can refuse to produce business records that might subject the firm to criminal prosecution. a. True b. False

False

A party does not need to have legitimate grounds to appeal a trial court's decision. a. True b. False Chapter 5

False

A person will never be liable for conversion if they bought goods in good faith, even if those goods were stolen. a. True b. False

False

A trespasser will be liable for any damage caused to the property and generally can hold the owner of the land liable for injuries sustained on the premises. a. True b. False

False

Adults who enter into contracts with minors can avoid their contractual duties just as the minors can. a. True b. False

False

An attorney's conduct is judged by the reasonable person standard. a. True b. False

False

An individual who has been the subject of a crime can prosecute the alleged criminal. a. True b. False Chp 10

False

Because an intentional tort requires intent, a harmful motive is required. a. True b. False

False

Both intended and incidental third party beneficiaries may sue to enforce a contract, so long as their rights have vested. a. True b. False

False

Fraudulent appropriation of another's property with which a person has been entrusted is the crime of receiving stolen goods. a. True b. False

False

If a business process (and information relating to that process) cannot be patented, copyrighted, or trademarked, there is nothing a business can do to protect it. a. True b. False

False

If performance is substantial, the other party is not entitled to damages. a. True b. False

False

If the seller is a merchant, risk of loss to goods held by the seller passes to the buyer when the buyer signs the contract. a. True b. False

False

In 2003, Congress enacted the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act, which prohibits the sending of unsolicited commercial emails. a. True b. False

False

In the absence of any specific agreements, the buyer must make payment at the time and place the contract is signed. a. True b. False

False

Infringement of a trademark requires intent to infringe, as well as federal registration. a. True b. False

False

Invasion of privacy cases can be brought only against private individuals, not organizations. a. True b. False

False

Jack sees an injured person lying on Frank's property. Jack crosses Frank's property to rescue the injured person. Jack has committed trespass to land. a. True b. False

False

Most contracts need to be performed to the personal satisfaction of each contracting party. a. True b. False

False

On appeal of a court's grant or denial of a motion for summary judgment, the appellate court must defer to the trial court's ruling on the issue. a. True b. False

False

Only ten countries have adopted the CISG. a. True b. False

False

Parties to sales and lease contracts are not free to agree to terms different from those stated in the UCC. a. True b. False

False

Ronald suffers from dementia, which impacts his brain function, but he also has healthy periods when his mind is fully functioning. During one of these healthy periods, Ronald enters into a contract, which he later seeks to avoid. In a majority of states, the contract will not be enforced because of Ronald's dementia. a. True b. False

False

Similar to trademark infringement, a claim of trademark dilution in the online world requires proof that consumers will likely be confused by a connection between the unauthorized use and the mark. a. True b. False

False

The Outer Space Treaty declares that internationally recognized political boundaries extend from Earth into the farthest reaches of space. a. True b. False

False

The UCC provides that a sale or lease contract will fail for indefiniteness if more than one of its terms is left open. a. True b. False

False

The act of state doctrine is frequently employed in importing cases. a. True b. False

False

The basic purpose of tort law is to punish criminal wrongdoers. a. True b. False

False

The common law of contracts and the Uniform Commercial Code are exactly the same. a. True b. False

False

The first sale doctrine states that once a copyrighted work is sold, it may be resold only with the permission of the original owner. a. True b. False

False

The reasonable person standard concerns itself with how a particular person would act and not with how an ordinarily prudent person should act. a. True b. False

False

Under the CISG, an acceptance is effective on dispatch, similar to the rule under the UCC. a. True b. False

False

Under the categorical imperative, an unethical decision that would have only a small impact is acceptable as long as no one else in society acts the same way. a. True b. False

False

Under the privileges and immunities clause, the federal government has the power to regulate commercial activities among the states. a. True b. False

False

When a minor who has entered into a contract opts to avoid that contract, she or he can choose the particular portions of the contract to disaffirm. a. True b. False

False

When the defense of comparative negligence is successful at trial, it completely absolves the defendant of liability. a. True b. False

False

You accidentally bump into someone on the sidewalk and that person falls but is unharmed. Nonetheless, that person usually can successfully sue you for damages. a. True b. False

False

he breach of a contract for a sale of goods qualifies for specific performance only when substantially identical goods can be bought or sold in the market. a. True b. False

False

The _________ Amendment reads in part that no person "shall be compelled in any criminal case to be a witness against himself."

Fifth

The __________ Amendment provides protection against unreasonable searches and seizures and requires that probable cause exist before a warrant for a search or an arrest can be issued.

Fourth

Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." Fair value is the price of Mont Blanc's goods in a. the United States. b. France. c. the world market. d. the European market.

France.

A mark may be registered as a trademark with the federal government if it meets one of two criteria. Select the two correct criteria. a. If it is intended to be in use in commerce within two years b. If it is intended to be in use in commerce within six months c. If it currently has been documented d. If it currently is being used in commerce

If it is intended to be in use in commerce within six months If it currently is being used in commerce

Emancipation

In regard to minors, the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child.

Lease agreement

In regard to the lease of goods, an agreement in which one person (the lessor) agrees to transfer the right to the possession and use the property to another person (the lessee) in exchange for rental payments

F.O.B. (free on board)

Indicates that the selling price of goods includes transportation costs to the specific place named in the contract. The seller pays the expenses and carries the insurance to the place named.

There are several remedies available to a copyright owner for copyright infringement. Select three of them from this list. a. Liens b. Injunction c. Specific performance d. Damages e. Rescission f. Criminal penalties

Injunction, Damages, Criminal penalties

General damages

Intended to compensate individuals (but not companies) for the nonmonetary aspects of the harm suffered from a tort, such as pain and suffering

Compensatory damages

Intended to compensate or reimburse a plaintiff for actual losses

Special damages

Intended to compensate the plaintiff for quantifiable monetary losses, such as medical expenses

Which of the following is NOT an element of negligence? a. Intent b. Breach c. Causation d. Damages e. Duty

Intent

Select the three basic sources of international law from the list. a. International organizations b. International customs c. The Berne Convention d. The United Nations' Recognition and Enforcement of Arbitral Awards e. Treaties and agreements f. The Uniform Commercial Code

International organizations International customs Treaties and agreements

Constance tells Jill, her best employee, "Your work is so good, if I like what you do over the next six months, I'll give you a $1,000 bonus." Constance does not give Jill the bonus, so Jill sues. Most likely: a. Jill will not win, because Jill didn't prove that her work was satisfactory. b. Jill will not win, because this is an illusory promise without consideration. c. Jill will win, because this an accord and satisfaction.

Jill will not win, because this is an illusory promise without consideration

Joe could not recover for the intentional infliction of emotional distress if his neighbor, Mike, sent him a text message saying that Joe's mother was killed in a car accident if: a. Mike knew it was untrue. b. Mike was not upset. c. Joe was upset. d. Joe knew it was untrue.

Joe knew it was untrue.

The most important statutory protection for trademarks is the: a. Patent, Trademark, and Copyright Act. b. Larman Copyright Act. c. Leghy Act. d. Lanham Act

Lanham Act

Select the TWO public policy reasons from the following list for the application of strict liability in product liability cases: a. Manufacturers are in a better position to determine privity of contract b. Manufacturers can better bear the cost of injury c. Manufacturers are bailors and therefore better bear the cost of injury d. Manufacturers should bear the cost of injury as an operating expense since it is profiting from its activities

Manufacturers can better bear the cost of injury Manufacturers should bear the cost of injury as an operating expense since it is profiting from its activities

Delivery ex-ship (delivery from the carrying vessel)

Means that risk of loss does not pass to the buyer until the goods are properly unloaded from the ship or other carrier

Mitigation

Minimization of damages by the plaintiff

The landmark United States Supreme Court case with respect to a criminal defendant's procedural rights is: a. Miranda v. Arizona. b. United States v. Booker. c. People v. Roscoe.

Miranda v. Arizona.

Which one of the following crimes has no statute of limitations? a. Murder b. Larceny c. Fraud d. Insider trading e. Robbery f. Traffic violations

Murder

A major international convention, or treaty, that assists in the enforcement of arbitration clauses is the: a. Wyoming Convention. b. New York Convention. c. Pennsylvania Convention. d. Rome Convention.

New York Convention

Eighth Amendment

No excessive bail and no cruel and unusual punishment

In a strict product liability lawsuit, who has to show why or in what manner the product became defective? a. The plaintiff b. The defendant c. No one

No one

Fifth Amendment

No person can be forced to be a witness against himself or herself

Officer Spangler believes that John Doe is a criminal. He asks a judge to issue a general warrant that allows Spangler to go through John Doe's belongings in his house. Will the judge agree? a. Yes, because police officers must be given deference for their suspicions. b. No, because police officers do not require warrants. c. No, because a search warrant must describe exactly what and where can be searched.

No, because a search warrant must describe exactly what and where can be searched.

Gunter installs a large glass door in his house and then runs into it, breaking his nose. Gunter sues the manufacturer, because he was not warned about the possibility of such an injury. Will Gunter prevail in his lawsuit? a. Yes, because sellers of large glass doors are held to strict liability standards. b. Yes, because manufacturers must provide adequate warnings. c. No, because everyone knows that people may run into glass doors; therefore, the manufacturer does not have to provide such a warning.

No, because everyone knows that people may run into glass doors; therefore, the manufacturer does not have to provide such a warning

Cooktop, Inc., manufactures cooktops on which Juarez burns his fingers. Has Cooktop, Inc., unreasonably violated its standard duty of care? a. No, because stoves get hot and some people get burned when they are careless. b. No, if Cooktop disclaimed all liability for accidents. c. Yes, if Cooktop placed no warnings about the possibility of being burned.

No, because stoves get hot and some people get burned when they are careless

Hobbs owns a small internet service provider. He is sued by Allison because someone who pays Hobbs a monthly fee posted a defamatory statement about Allison. Will Allison prevail in court? a. No, because Allison lives in a different state. b. No, because the Communications Decency Act treats Internet service providers differently from print publishers. c. Yes, because it doesn't matter where the defamatory statement was published.

No, because the Communications Decency Act treats Internet service providers differently from print publishers.

Because you are suspected of sending out bulk unsolicited e-mail advertisements, the FTC asks your internet service provider to supply information on what you do in foreign jurisdictions. Will you succeed in a lawsuit against your internet service provider for providing such information to the FTC? a. Yes, because your ISP should have obtained permission from the Commerce Department. b. No, because the U.S. Safe Web Act provides immunity to the ISP from liability for such action. c. Yes, because you should have been asked first.

No, because the U.S. Safe Web Act provides immunity to the ISP from liability for such action.

Sergio contracts to hire Belinda to work for him at $3,000 per month, reserving the right to cancel the contract at any time. Two days before Belinda is scheduled to start work, Sergio exercises his option-to-cancel clause. Will Belinda be successful in a lawsuit against Sergio? a. No, because the promise was illusory and, therefore, unenforceable. b. Yes, because the promise did involve adequate consideration. c. Yes, because she should have been allowed to work at least one month.

No, because the promise was illusory and, therefore, unenforceable.

Which of the following is NOT an element of the tort of wrongful interference with a contractual relationship? a. A third party must be aware that the contract exists. b. A third party must intentionally cause one of the parties to break the contract. c. None of these d. A valid, enforceable contract must exist between two parties. Chapter 6

None of these

Lessee

One who acquires the right to the possession and use of goods under a lease

Lessor

One who transfers the right to the possession and use of goods under a lease

Three of the most common open terms for which the UCC provides numerous provisions to fill the gaps in a contract are: (select all that apply) a. Quality b. Payment c. Quantity d. Lease-term e. Delivery f. Price

Payment Delivery Price

Course of dealing

Prior conduct between parties to a contract that establishes a common basis for their understanding

Alicia offers to sell a purebred cat for $200. Neither Alicia nor the buyer discusses the cat's ancestry, but the buyer believes that it comes from a championship line and agrees to the price. Upon discovering that the cat is only worth $50, can the buyer rescind the contract based on her mistake? a. Probably not, because the buyer made a mistake about the cat's value, not a mistake about a material fact. b. Yes, because the cat was clearly not worth $200. c. Probably yes, because the buyer made a mistake about a material fact.

Probably not, because the buyer made a mistake about the cat's value, not a mistake about a material fact.

_____________ unconscionability occurs if a contract is entered into, or a term becomes part of the contract, because of a party's lack of knowledge or understanding of the contract or the terms.

Procedural

Tangible property

Property that has physical existence and can be distinguished by the senses of touch, sight, and so on, such as a car.

Intangible property

Property that is incapable of being apprehended by the senses (such as by sight or touch), such as intellectual property

Slander of Title

Publishing false information about another's legal ownership of property that results in financial loss to the property's owner

By which of the following methods can a party not terminate an offer? a. Rejection b. Counteroffer c. Revocation d. Repudiation

Repudiation

F.A.S. (free alongside)

Requires the seller, at his or her own expense and risk, to deliver the goods alongside the carrier before risk passes to the buyer

C.I.F. or C.&F. (cost, insurance, and freight or just cost and freight)

Requires, among other things, that the seller "put the goods in insurance of a carrier" before risk passes to the buyer

Sixth Amendment

Right to a speedy public trial by jury

____________ occurs when courts look at the risk of harm from a product as designed compared to the utility to the user and to the public.

Risk-utility analysis

Dumping

Sale of goods in a foreign country at less than fair value

Exporting

Selling goods made in the United States to customers in other countries,

Which of the following activities is NOT prohibited by the CAN-SPAM Act? a. Deceptive information b. Misleading information c. False return addresses d. False information e. Sending messages to randomly generated e-mail addresses f. Sending junk mail via the USPS

Sending junk mail via the USPS

Defamation (libel or __________) is a false statement of fact, not made under _____________, that is communicated to a third person and that causes damage to a person's reputation. For public figures, the plaintiff must also prove that the statement was made with actual _______ . Invasion of privacy is the publishing or otherwise making known or using information relating to a person's _________ life and affairs, with which the public has no legitimate concern, without that person's ____________ or approval.

Slander, privilege, malice private, permission

Past consideration

Something given or some act done in the past, which cannot ordinarily be consideration for a later bargain

Consequential damages

Special damages that are a foreseeable result of the breach but not a normal expectation of a breach

________________ often allow for unlimited liability for manufacturers of defective products, no matter how far in the past. a. Statutes of limitation b. Strict liability claims c. The Restatement of Torts d. Statutes of repose Ch 7

Statutes of limitation

Which of the following is usually NOT an acceptable defense to criminal liability? a. Insanity b. Strong desire c. Justifiable use of force d. Duress e. Necessity f. Entrapment

Strong desire

When one party anticipatorily repudiates a contract, what two options does the nonbreaching party have? a. Enforce the contract but at a new price that is more favorable to the nonbreaching party b. Enforce the contract immediately c. Sue for punitive damages d. Sue for breach of contract immediately e. Wait until the deadline for performance to sue

Sue for breach of contract immediately Wait until the deadline for performance to sue

Which of the following acts normally does NOT constitute a conversion? a. Temporarily borrowing a friend's textbook and then returning it b. Mistakenly believing that you are entitled to goods that are not your own c. The taking of electronic records and data without the owner's permission

Temporarily borrowing a friend's textbook and then returning it

Which of the following agreements is not a major international agreement related to space? a. The Alien Life Form Examination Agreement b. The Registration Convention c. The Rescue Agreement d. The Liability Convention

The Alien Life Form Examination Agreement

U.S. citizens, and even foreign citizens, can sue for injuries caused by violations of certain international laws or treaties in U.S. courts under which law? a. The Fair Treatment Act b. The Foreign Action Act c. The Universal Court Access Law d. The Alien Tort Claims Act

The Alien Tort Claims Act

Which agency investigates consumer complaints of privacy violations? a. The Department of Agriculture b. The Federal Housing Authority c. The Federal Trade Commission d. The Fair Data and Security Agency e. The Federal Communications Commission f. The Social Security Administration

The Federal Trade Commission

Which act prevents cell phone companies and social media networks from divulging private communications to certain entities and individuals? a. The Stored Communications Act b. The Digital Data Storage Act c. The Data Breach Security Act

The Stored Communications Act

Sovereign immunity

The U. S. courts will not hear a case against the government of another nation except in limited circumstances

Act of state doctrine

The U.S. courts will not evaluate the validity of another nation's governmental acts

Age of majority

The age at which an individual is considered legally capable of conducting himself or herself responsibly

Course of performance

The conduct that occurs under the terms of a particular agreement; such conduct indicates what the parties to an agreement intended it to mean

Which of the following does NOT have to be true for the Anticybersquatting Consumer Protection Act to apply? a. The domain name is identical or confusingly similar to the trademark of another. b. The one registering or using the domain name has a "bad faith intent" to profit from that trademark. c. The domain name has siphoned customers resulting in a loss of profit from the trademark.

The domain name has siphoned customers resulting in a loss of profit from the trademark.

What happens when evidence obtained in violation of the rights spelled out in the Fourth, Fifth, and Sixth Amendments is presented at trial? a. The jury is told to review the evidence, and to consider it against the weight of the violations. b. The evidence must be excluded from the trial proceedings and not presented to the jury. c. The jury is not told about the violations and asked to consider the evidence from an unbiased perspective.

The evidence must be excluded from the trial proceedings and not presented to the jury

Breach

The failure, without legal excuse, to perform the obligations of the contract

Performance

The fulfillment of one's duties under a contract

The Electronic Communications Privacy Act does NOT prohibit which one of the following? a. The intentional interception of an employee's personal electronic communications by an employer on a non-employer-supplied device b. The intentional interception of an electronic communication of an employee by an employer on an employer-supplied device c. The intentional interception of a phone call by a person not a party to the phone call d. The intentional disclosure of information obtained by electronic interception not subject to exclusion under the ECPA.

The intentional interception of an electronic communication of an employee by an employer on an employer-supplied device

Disaffirmance

The legal avoidance, or setting aside, of a contractual obligation

Courts in a growing number of states place additional duties on the minor when the minor disaffirms. These duties include: a. The minor must pay a fine. b. The minor is responsible for damages to the property returned. c. The minor must immediately appear in court. d. The minor is responsible for the depreciation of that returned property. e. The minor is responsible for ordinary wear and tear for the returned property.

The minor is responsible for damages to the property returned. The minor is responsible for the depreciation of that returned property. The minor is responsible for ordinary wear and tear for the returned property.

Which of the following is not an element of fraudulent misrepresentation? a. The misrepresentation of opinions b. Justifiable reliance by the deceived party c. Damage suffered as a result of the reliance d. An intent to induce another to rely on the misrepresentation

The misrepresentation of opinions

Which of the following is not a necessary element for an offer to be effective? a. The offer must be communicated to the offeree. b. The terms of the officer must be reasonably certain. c. The offeror must have a serious intention to be bound by the offer. d. The offer must be fair ch 12

The offer must be fair

What is NOT one of the requirements for a merchant's firm offer? a. The offer must be signed. b. The offer must state the date for all future shipments. c. The offer must be written or electronically recorded, such as in an e-mail.

The offer must state the date for all future shipments.

Who is the promisor in a bilateral contract that benefits a third party? a. The party that made the promise that benefits the third party. b. Both parties to the bilateral contract are the promisors. c. The party that made the promise that does not benefit the third party. d. Neither of the parties.

The party that made the promise that benefits the third party.

Sale

The passing of title (evidence of ownership rights) from the seller to the buyer for a price

Novation

The substitution, by agreement, of a new contract for an old contract with all rights and duties under the old contract being terminated

Expropriation

The taking of privately held property for a public purpose and with just compensation

Confiscation

The taking of privately held property without a proper public purpose or just compensation

Discharge

The termination of an obligation under a contract

Tender

The unconditional offer to perform by someone who is ready, able, and willing to perform

What will a court generally not review to determine whether a contract's terms are definite? a. The identification of consideration. b. The value of the consideration. c. The identification of the parties. d. The time of payment, delivery, or performance.

The value of the consideration.

When can social media posts be used by law enforcement? (Choose all that apply.) a. To further federal regulators' investigation into illegal activities b. To determine the identities of suspects c. To detect and prosecute criminals d. To locate a suspect

To further federal regulators' investigation into illegal activities To determine the identities of suspects To detect and prosecute criminals To locate a suspect

Patent infringement is a ______. It is committed when one uses, makes, or __________ another's patented design, product or process without _____________ . This is true even if the patented product is not yet put in to _____________ .

Tort, sells, permission, commerce

A U.S. court will likely uphold a contract created in the United Kingdom because the U.K.'s laws are generally compatible with those of the United States. a. True b. False

True

A buyer promises to purchase everything he or she needs, so the promise constitutes a requirements contract. a. True b. False

True

A complaint contains a brief summary of the facts necessary to show the party filing the complaint is entitled to relief. a. True b. False

True

A federal court will apply federal law in a case involving a federal question. a. True b. False

True

A law that that limits a fundamental right may be held to violate substantive due process. a. True b. False

True

A mistake of fact, as opposed to a mistake of law, can often excuse criminal liability if the mistake negates the mental state necessary to commit the crime. a. True b. False

True

A nation that launches objects into space is absolutely liable for personal injury and property damage caused by its objects on Earth or in flight. a. True b. False

True

A trade name may be protected under trademark law and may be registered with the federal government so long as it is also used as a trademark or service mark. a. True b. False

True

A trademark is a distinctive mark or motto that a manufacturer stamps, prints, or otherwise affixes to its own goods. a. True b. False

True

Agreement is normally evidenced by an offer and an acceptance. a. True b. False ch 12

True

An acceptance sent by means not expressly or impliedly authorized normally is not effective until it is received by the offeror. a. True b. False

True

An anticipatory repudiation of a contract is considered a material breach. a. True b. False

True

An intervening event that acts as a superseding (overriding) cause may relieve the defendant of liability for injuries caused by the intervening event. a. True b. False

True

Any party purchasing insurance must have a sufficient interest in the insured item to obtain a valid policy. Insurance laws—not the UCC—determine sufficiency. a. True b. False

True

Arbitration differs from other forms of alternative dispute resolution in that a third party hearing a dispute makes a decision for the parties. a. True b. False

True

Because each type of warranty is created in a different way, the manner in which a warranty can be disclaimed varies with the type of warranty. a. True b. False

True

By 2016, about half of all states had enacted legislation to protect individuals from having to disclose their social media passwords to potential employers. a. True b. False

True

Compensatory damages replace what was lost because of what the breaching party did and for this reason are often said to "make the person whole." a. True b. False

True

Contracts for the sale of goods only qualify for specific performance if the goods are unique. a. True b. False

True

Courts and administrative agencies usually uphold an employer's right to terminate a person based on his or her violation of a social media policy. a. True b. False

True

Criminals engage in money laundering because they wish to conceal the identity, source, and destination of illegally gained funds. a. True b. False

True

Digital sampling can constitute copyright infringement. a. True b. False

True

Employees' posts on social media may be protected under labor law. a. True b. False

True

Ethics is a branch of philosophy that focuses on morality. a. True b. False

True

Exculpatory clauses release a party from liability in the event of monetary or physical injury no matter who is at fault. a. True b. False

True

Generally, compensatory damages for breach of contract are reduced by any loss that the innocent party has avoided. a. True b. False

True

Generally, for a criminal act to have occurred, a person must have committed the guilty act and had a wrongful mental state. a. True b. False

True

Generally, you can use the amount of non-deadly force necessary to protect yourself, your dwelling, or other property and avoid criminal liability. a. True b. False

True

If a contract is divisible into legal and illegal portions, a court may enforce the legal portion but not the illegal one, so long as the illegal portion does not affect the essence of the bargain. a. True b. False ch 12

True

If a defective product injures a bystander, the bystander can sue the manufacturer for strict liability. a. True b. False

True

If a defendant can succeed in convincing the court that a plaintiff's injury resulted from a commonly known danger, the defendant normally will not be liable. a. True b. False

True

If an additional term relates to payment, quality, quantity, price, time, and place of delivery, the CISG considers the added terms as material alterations. a. True b. False

True

If an individual is a victim of computer theft under the Computer Fraud and Abuse Act, the individual may be able to bring a civil suit against the violator to obtain damages, an injunction, and other relief. a. True b. False

True

If the evidence of a defendant's guilt was obtained improperly, it normally cannot be used against the defendant in court. a. True b. False

True

If the parties do not expressly discharge the old contract when writing a novation, the old contract will be impliedly discharged if the new contract's terms are inconsistent with the old contract's terms. a. True b. False

True

If two parties substitute a new contract for an old one and the court finds that there was a preexisting duty, then the new contract will be invalid because there was no consideration. a. True b. False

True

In a strict product liability lawsuit, the product must be in a defective condition when the defendant sells it. a. True b. False

True

In contract law, ratification is the act of accepting and giving legal force to an obligation that previously was not enforceable. a. True b. False

True

In contracts that involve the sale of both goods and services, once a court decides that such a contract is primarily a goods contract, any dispute, even over the services portion, will be decided under the UCC. a. True b. False

True

In determining whether a use is "fair use" of copyrighted material, the effect of that use upon the potential market for the work is often the most important factor. a. True b. False

True

Individuals who frequently buy and consume supersized portions of food will not succeed in lawsuits against the manufacturers if they become overweight. a. True b. False

True

International law can be defined as a body of law formed as a result of international customs, treaties, and organizations, which governs relations among or between nations. a. True b. False

True

Merchants are held to a higher standard of performance or duty than are nonmerchants. a. True b. False

True

Once an accord is made, the original obligation is suspended until the accord agreement is fully performed. a. True b. False

True

One dollar is a common amount for nominal damages. a. True b. False

True

Parties to an international contract can agree in advance to allow a third party to resolve any contract dispute through an arbitration clause. a. True b. False

True

Punitive damages are rarely awarded in contract cases. a. True b. False

True

Subsequent to the America Invents Act of 2011, the first person to file a patent application receives patent protection. a. True b. False

True

The Anticybersquatting Consumer Protection Act applies to all domain name registrations and trademarks. a. True b. False

True

The Federal Trade Commission can effectively force a private company to consent to the agency's review of the company's privacy and data practices. a. True b. False ch 9

True

The United Nations has issued guidelines that require nations to remove space objects that are no longer in operation so long as this can be done safely and in a controlled manner. a. True b. False

True

The broad language of the Racketeer Influenced and Corrupt Organizations Act (RICO) has allowed it to be applied to cases that have little or nothing to do with organized crime. a. True b. False

True

The doctrine of strict product liability applies to suppliers of component parts. a. True b. False

True

The first step in making an ethical decision is to understand the problem. a. True b. False

True

The most potent weapons against white-collar criminals include the federal laws prohibiting mail and wire fraud. a. True b. False

True

The requirement that an offer be properly communicated to the offeree means that the offeror must inform the offeree about the offer in some effective way. a. True b. False

True

The warranty of title called "no liens" protects buyers who purchase goods that are subject to a creditor's security interest. a. True b. False

True

Unlike the UCC, the CISG does not apply to consumer sales. a. True b. False

True

Using another's trademark in a meta tag will normally constitute trademark infringement. a. True b. False

True

Voir dire refers to the jury selection process. a. True b. False

True

When a buyer breaches a contract for a sale of land, the seller can recover the difference between the contract price and the market price of the land. a. True b. False

True

When a foreign country represents a substantial market for a U.S. manufacturer, the firm may enter into an agreement for the distribution of its products in that market by a foreign distributor. a. True b. False ch 11

True

When a seller breaches a contract for a sale of goods, knowing the buyer plans to resell the goods, the buyer can recover the lost profits from the planned resale. a. True b. False

True

When one party has no reason to know that a contract is illegal, that party can often recover any benefits conferred in a partially executed contract. a. True b. False ch 12

True

Widely known facts and common sequences are not copyrightable. a. True b. False

True

Without establishing cause in fact, a plaintiff cannot succeed on a claim even if she proves injury. a. True b. False

True

physical attack can be a tort, a crime, or both. a. True b. False

True

____________ is the act of buying domain names that are similar to well-known domains, except for slight misspellings. ______________ is the act of registering a domain name that is the same as, or confusingly similar to, the trademark of another and then offering to sell that domain name back to the trademark owner.

Typosquatting Cybersquatting

Because the federal CAN-SPAM Act applies only to e-mails originating in the United States, Congress enacted the ____________.

U.S. Safe Web Act

Shockingly inadequate consideration can indicate the existence of what exceptions? Choose three. a. Undue influence b. Fraud c. Duress d. Mistake of law e. Unawareness f. Ignorance

Undue influence Fraud Duress

Most state laws with respect to protection of information of a commercial value are based on the: a. Model Business Corporations Act. b. Uniform Trade Secrets Act. c. Uniform Commercial Code. d. Model Trademark Act. Ch 8

Uniform Trade Secrets Act.

Which of the following are the two broad classifications of torts? Select two. a. Unintentional torts b. Actionable torts c. Intentional torts d. Criminal wrongs

Unintentional torts, Intentional torts

Sales contracts between parties residing in the United States and foreign countries are typically governed by the: a. United Nations Convention on Contracts for the International Sale of Goods (CISG) b. International Civil Law Convention Code c. Uniform Sale of Goods Act for Canada

United Nations Convention on Contracts for the International Sale of Goods (CISG)

Which two choices does the non-breaching party have when anticipatory repudiation occurs? a. Wait to see if the repudiating party will decide to honor the contract b. Renegotiate the contract by asking for payment immediately c. Treat the repudiation as a final breach by pursuing a remedy d. Ignore the anticipatory repudiation and hope for the best

Wait to see if the repudiating party will decide to honor the contract Treat the repudiation as a final breach by pursuing a remedy

Fourth Amendment

Warrant must be issued with probable cause

Which of the following questions does a court NOT ask to determine whether the requirement of causation is met? a. Was there intent to cause? b. Was there proximate cause? c. Was there causation in fact?

Was there intent to cause?

Fully integrated contract

When a contract completely sets forth all the terms and conditions agreed to by the parties and is intended as a final statement of their agreement.

Which of the following would NOT be an indicator of third party rights vesting in a contract? a. When the third party materially alters her position in detrimental reliance on the contract. b. When the incidental third party beneficiary becomes aware of the benefit to her. c. When the third party demonstrates express consent in the agreement to a contract formed for her benefit. d. When the contract's conditions for vesting are satisfied.

When the incidental third party beneficiary becomes aware of the benefit to her.

In which situations do people have a reasonable expectation of privacy? Choose two. a. When they enter their personal banking information with an online mortgage lender b. When they tweet about bad customer service at a restaurant c. When they disclose credit information to obtain a loan online d. When they send an email through a work computer

When they enter their personal banking information with an online mortgage lender When they disclose credit information to obtain a loan online

Seasonably

Within a specified time period; if no period is specified, within a reasonable time.

To test computer security and conduct encryption research, Solutions Inc. circumvents the encryption software and other antipiracy protection of Tech Corporation's software. Under the Digital Millennium Copyright Act, this is a. a "fair use" exception to the provisions of the act. b. prohibited but not a violation of copyright law. c. permitted for reconsideration every three years. d. a violation of copyright law. chp 9

a "fair use" exception to the provisions of the act.

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is a. a breach of contract. b. a condition. c. a novation. d. an operation of law. ch 13

a condition.

When a country's government seizes privately owned property of foreign investors without paying just compensation, it is known as ____________.

a confiscation

Cuisine Café files a suit in a state court against Dining Tables Inc., alleging a breach of contract. The case proceeds to trial, after which the court renders a verdict. Cuisine decides tterm-85o appeal to a state appellate court. Its attorney must make sure that the clerk of the trial court sends to the clerk of the appellate court, within a prescribed period of time a. an explanation for the verdict. b. a statement of the grounds for reversal. c. a brief including the arguments of both parties. d. a copy of the record on appeal. Chapter 5

a copy of the record on appeal.

A precedent is a. a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles. b. a lawsuit in which a number of persons join together. c. the chief executive officer of the United States. d. the fundamental procedure by which the government exercises its authority.

a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.

Enrique accesses Finance Bank's computer system without authority to obtain protected financial records. Under federal law, this is a. a crime but not a felony. b. a felony if it was done for a commercial purpose. c. a felony if the bank brings a civil suit against Enrique. d. not a crime.

a felony if it was done for a commercial purpose.

Suite Properties files a suit in a state court against Tower Offices. At the conclusion of the plaintiff's case, the defendant files a motion asking the judge to direct a verdict in its favor on the ground that the plaintiff presented no evidence to support its claim. This is a motion for a. a judgment as a matter of law. b. a new trial. c. judgment n.o.v. d. a judgment in accordance with the verdict.

a judgment as a matter of law.

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in those transactions, Brooke has the status of a. a consumer. b. an agent or other intermediary. c. a merchant. d. an employer and manager.

a merchant.

Bey files a suit against Cruises Inc. The defendant wants to respond that it appears from the pleadings the parties do not dispute the facts, that the only question is how the law applies to those facts, and that this response can be supported with witnesses' sworn statements. Cruises should file a. a motion for summary judgment. b. a motion to dismiss. c. a motion for judgment on the pleadings. d. a counterclaim.

a motion for summary judgment.

One of the major exceptions to the doctrine of sovereign immunity is when: a. a nation engages in commercial activity within the United States. b. a nation engages in military action. c. a nation opposes participating in the United States court system. d. a nation engages in an action to protect the health of its citizens.

a nation engages in commercial activity within the United States.

What is the one requirement that is NOT necessary for a writing (or electronic record) to be sufficient to satisfy the UCC's statute of frauds? a. a notary public's signature b. a signing by the party against who enforcement is sought c. an indication that the parties intended to form a contract

a notary public's signature

Storage Facilities Inc. files a suit in a state court against TransShip LLC, seeking allegedly unpaid rent for a warehouse. TransShip losses the suit and decides to appeal. TransShip's attorney must file, with the clerk of the trial court, within a prescribed period of time a. a transcript of the trial and copies of the exhibits. b. a notice of appeal. c. the judgment order from which the appeal is taken. d. a formal refusal to abide by the verdict

a notice of appeal

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is a. a novation. b. specific performance. c. an accord and satisfaction. d. a mutual agreement to rescind. ch 13

a novation

The United States Supreme Court issues an opinion that can be found at __ U.S. __, 138 S.Ct. 617, 199 L.Ed.2d 501. "617" is a. the number of the case in its chronological sequence. b. the number of the volume in an unofficial report of the Court's decisions. c. the number of the volume in the official reports of the Court's decisions. d. a page number in the referenced volume.

a page number in the referenced volume.

The availability of different remedies is a factor that can affect a. a party's decision to litigate in a certain court. b. the in rem jurisdiction of a court. c. the determination of whether a court can exercise jurisdiction. d. standing, venue, and other threshold issues.

a party's decision to litigate in a certain court

A preexisting duty might exist because of a duty imposed by ___________________ and a duty imposed by law.

a previous contract

The government of Japan sets a limit on the amount of beef that can be imported from the United States. This is a. a dumping duty. b. a quota. c. a tariff. d. an antidumping duty. ch 11

a quota.

Some contracts state that the contract needs to be performed to the satisfaction of another. The "other" typically is ____________.

a reasonable person

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a. a lease. b. a sublease. c. a contract for services. d. a sale. ch 14

a sale.

Misrepresentation by conduct involves: a. a buyer preventing a seller from knowing the true value of the object of the sale b. a party who really does not wish to enter into the contract. c. a seller preventing a buyer from learning of some fact that is material.

a seller preventing a buyer from learning of some fact that is material.

Olivia says to Jim, "I think I'll sell my new digital camera for $100 because I'm never going to use it." This statement constitutes: a. a valid offer. b. a statement of future intent. c. an agreement to agree.

a statement of future intent.

Which of the following represents a demonstration of acceptance of goods by a buyer? (Choose all that apply.) a. The buyer or lessee indicates (by words or conduct) to the seller or lessor that the goods are conforming or that he or she will retain them in spite of their nonconformity. b. The buyer or lessee fails to reject the goods within a reasonable period of time. c. The buyer performs any act inconsistent with the seller's ownership of the goods. d. None of these.

a. The buyer or lessee indicates (by words or conduct) to the seller or lessor that the goods are conforming or that he or she will retain them in spite of their nonconformity. b. The buyer or lessee fails to reject the goods within a reasonable period of time. c. The buyer performs any act inconsistent with the seller's ownership of the goods.

The basic obligation of a buyer in performing a sales or lease contract is to: a. accept and pay for conforming goods in accordance with the contract. b. negotiate the quality of the goods in a contract. c. negotiate terms of payment for conforming goods.

accept and pay for conforming goods in accordance with the contract.

Under the principle of rights theory, a key factor in determining whether a business decision is ethical is how that decision a. supports the right to make a profit. b. causes consequences that would follow if everyone acted the same way. c. affects the rights of others. d. compares to religious principles.

affects the rights of others.

Because of the loss of significant amounts of revenue as a result of unauthorized digital downloads, file-sharing has created problems for a. all of the choices. b. recording artists and their labels. c. the companies that distribute file-sharing software. d. the motion picture industry.

all of the choices

Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm's managers, legal concepts can be useful for Power's a. all of the choices. b. accounting and finance manager. c. marketing manager. d. human resources manager.

all of the choices

Resort Hotel Corporation, a U.S. firm, establishes a wholly owned subsidiary in Singapore. As a parent corporation, with respect to the subsidiary, Resort retains complete ownership of a. more than half, but less than all, of the facilities in Singapore. b. none of the facilities in Singapore. c. no more than half of the facilities in Singapore d. all of the facilities in Singapore.

all of the facilities in Singapore.

The Uniform Commercial Code facilitates commerce a. in countries that were once colonies of Great Britain. b. in international markets. c. between the states and the federal government. d. among the states.

among the states.

Consolidated Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Consolidated empowers Doha Ltd., an Egyptian firm, to enter into contracts in certain countries on behalf of Consolidated. This is a. a distribution agreement. b. indirect exporting. c. an agency relationship. d. direct exporting. ch 11

an agency relationship.

Jess, a salesperson for Kitchens Inc., shows Lane, a buyer for Metro Diner, display items in Kitchens' showroom, stating that any purchased equipment will match the display. This is a. puffery. b. an implied warranty. c. a statement of opinion. d. an express warranty.

an express warranty.

Seven companies agree that they will not compete against each other, will set prices, and not hire each other's employees. Such a contract will be a. an illegal contract in restraint of trade b. permitted as acceptable competition c. an illegal contract only if it is a secondary part of the contract

an illegal contract in restraint of trade

A usurious contract involves __________________.

an illegally high rate of interest

Cornel and Deanna resolve their dispute over the subsidence of Cornel's real property due to Deanna's excavation for an irrigation pond by having a neutral third party render a binding decision. This is a. early neutral case evaluation. b. arbitration. c. mediation. d. negotiation.

arbitration.

The general rule regarding the warranty of good title in most sales contracts is that the warranty: a. arises automatically. b. arises only after the buyer has inspected the goods. c. does not apply to sales contracts, only to lease contracts.

arises automatically.

Owen buys light fixtures from an online merchant under a contract covered by the UCC. He first receives an insurable interest in the lamp: a. as soon as he takes possession of the goods. b. at the moment the contract was formed. c. at the moment the seller tenders the goods for delivery. d. at the moment the goods covered by the contract are identified.

at the moment the goods covered by the contract are identified.

Contract law allows a contract to be ____________ on the basis of mistake. Only a mistake of ___________ makes a contract voidable. The mistake must involve some _____________ fact.

avoided fact material

Ordering a party to perform what was promised is a. beyond the court's authority. b. an equitable remedy. c. an action. d. an unenforceable demand.

b. an equitable remedy

Which tort provides a basis for a criminal prosecution as well as for a tort action? a. Battery b. Invasion of privacy c. Libel

battery

A person who engages in unexcused and harmful or offensive physical contact against someone else has committed: a. battery. b. false imprisonment. c. conversion. d. assault.

battery.

A restaurant owner requires new employees to sign a covenant not to compete in the restaurant business in the entire United States for five years. Such a covenant will a. be deemed contrary to public policy because of excessive duration and unreasonable geographic restriction b. be deemed not contrary to public policy c. be deemed against public policy because the restaurant business is not competitive

be deemed contrary to public policy because of excessive duration and unreasonable geographic restriction

Pascal's new Mercedes won't start one morning and he screams to his passenger, "For a thousand bucks, I'd get rid of this car." The passenger normally cannot buy the car for $1,000: a. because Pascal did not write anything down. b. because Pascal's subjective intent can't be known. c. because a reasonable person would know that a serious offer was not being made.

because a reasonable person would know that a serious offer was not being made.

A ___________ agreement is an agreement formed by ___________ nations to govern their ____________ .

bilateral two relationships

In a suit to compel arbitration, a court will order a dispute to be arbitrated if a. both parties consented to it. b. the relevant state or federal statute does not include such claims. c. all of the choices. d. the rules for the arbitration are fair to at least one of the parties.

both parties consented to it.

Meds-Free Inc. enters into a contract to sell its product line to Naturopath Clinic, which later sells some of the items to Oneida, a patient and consumer. Article 2 of the UCC applies to a. the sale from Med-Free to the clinic only. b. none of the transactions. c. the sale from the clinic to its patient only. d. both transactions.

both transactions.

Espinoza is sixteen but looks much older. She purchases a diamond bracelet, but decides nine months later that it was unwise to spend the money, so she: a. can disaffirm this contract only if she has turned eighteen b. can return the bracelet, but will only receive fifty percent of what she paid for it c. can return the bracelet and get all of her money back

can return the bracelet and get all of her money back

In a suit by Climate Action Now (CAN) against DeForest Inc., CAN serves a written request for the defendant to admit the truth of matters relating to the trial. DeForest's admission in response a. conclusively establishes the matter for trial. b. is the basis for a default judgment in the plaintiff's favor. c. is irrelevant. d. completely absolves the defendant of the issue in question. ch 5

conclusively establishes the matter for trial.

Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is a. the act of state doctrine. b. expropriation. c. the doctrine of sovereign immunity. d. confiscation.

confiscation

Each of the following is an example of a manufacturing defect except: a. conformity with design specifications. b. a physically flawed product. c. an incorrectly assembled product. d. nonconformity with design specifications

conformity with design specifications.

In the interest of fairness and equity, the courts may allow an exception to the preexisting duty rule when ___________________.

contract performance involves unforeseen difficulties

Article 2 of the UCC governs ___________.

contracts for the sale of goods

When you borrow a friend's tablet device and refuse to give it back, you have committed: a. conversion of personal property. b. trespass to land. c. trespass to title. d. disparagement of property.

conversion of personal property.

Retailers collect information about consumers using ________.

cookies

Jade transfers selected musical recordings, without the copyright owners' authorization, through her phone to her friends. Jade does not charge her friends for this "service." This is a. a license. b. copyright infringement. c. "fair use." d. goodwill.

copyright infringement

A business corporation that acts to ensure its employees are treated fairly and its operations minimally impact the environment is applying the concept of a. corporate social responsibility. b. moral minimum. c. triple bottom line. d. categorical imperative.

corporate social responsibility.

The bases for an action in strict liability that are set forth in the Restatement (Second) of Torts Section 402A can be summarized by the following six requirements. The product must have been in a ____________ when the defendant sold it. The defendant must normally be engaged in the ______________ (or otherwise distributing) that product. The product must be _____________ to the user or consumer because of its defective condition (in most states). The plaintiff must incur ________________ to self or property by use or consumption of the product. The defective condition must be the proximate ______________ of the injury or damage. The goods must not have been substantially ________________ from the time the product was sold to the time the injury was sustained.

defective condition, business of selling, unreasonably dangerous physical harm, proximate and actual cause, substantially changed

The perfect tender rule of the UCC generally requires that the seller: a. reclaim the goods at any time before payment. b. be a good faith dealer when negotiating a sale of goods and performing delivery. c. deliver or hold at the buyer's disposal goods that conform to the contract's terms in every respect. d. deliver to buyer goods that closely conform to the contract's terms.

deliver or hold at the buyer's disposal goods that conform to the contract's terms in every respect.

Barge Company and Cove Harbor dispute the meaning of their contract. Unable to agree on settlement, the parties prepare for trial. To obtain information, they engage in discovery. This includes gaining access to each other's witnesses and other types of evidence by a. improper requests and related tactics. b. voir dire and a writ of certiorari. c. depositions and other devices. d. subterfuge and similar methods.

depositions and other devices.

The enforceability of a liquidated damages clause normally requires two things: 1) When the contact was entered into, it was apparent that the damages would be ____________ to estimate in the event of a breach; 2) The amount set was _____________.

difficult reasonable

Airbud Corporation, a U.S. firm, signs a contract with Bueno Computadores Ltd., an Argentinean firm, for a shipment and payment for Airbud's goods. This is a. direct exporting. b. indirect exporting. c. licensing. d. a distribution agreement.

direct exporting.

Dom enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be a. breached. b. altered. c. performed. d. discharged.

discharged.

One of the major problems in pursuing an online defamation claim is that: a. ISPs will generally intervene in the lawsuit to prevent infringement on free speech of the individual who made the post. b. if the person posting the defamatory statements deletes the post, then there is no longer a valid claim. c. discovering and proving the identity of the person who posted the defamation can be difficult.

discovering and proving the identity of the person who posted the defamation can be difficult.

You receive a letter telling you that you will start receiving a box of fresh fruit each month and that if you don't want them, you have to reply within seven days. You ignore the offer. Your silence ________________.

does not constitute an acceptance of an offer

Dwelling Inc. enters into a contract with Estate Management to manage and maintain Dwelling's apartment complex. Their contract contains a clause that limits Estate's liability except in cases of gross negligence or willful misconduct. With respect to this clause, a court would most likely a. reform it. b. reallocate the risk expressed in it. c. enforce it. d. refuse to enforce it

enforce it.

The Federal Aviation Administration is working to ___________ for private spacecraft. Federal law has given ___________ the ownership of any minerals or other resources retrieved from space locations. The classification of any spacecrafts in the United States as __________ makes it difficult for private companies to compete in the space market.

establish criteria private companies defense articles

The UCC provides rules of construction for interpreting contracts. When the court considers a construction unreasonable, the UCC establishes the following order of priority. Which of the following expresses the correct order of priority? a. course of dealing, express terms, course of performance, usage of trade b. course of performance, express terms, usage of trade, course of dealing c. usage of trade, course of dealing, express terms, course of performance d. express terms, course of performance, course of dealing, usage of trade

express terms, course of performance, course of dealing, usage of trade

The following are times when additional terms do not become part of a contract: 1) The original offer ___________ acceptance to its terms; 2) The new or changed terms ______________ the contract; 3) The offeror _____________ to the new or changed terms within _________________. Ch 14

expressly limited materially alter objects a reasonable period of time

If someone uses a small amount of a copyrighted work for a nonprofit, educational purpose, it may be a legal use under the ________ doctrine.

fair use

A belief in the possibility that a person committed a crime is sufficient probable cause to support the issuance of an arrest warrant. a. True b. False Chap 10

false

A federal statute applies only to those states that agree to apply it within their borders. T/F

false

A law based on a suspect trait will not stand under the equal protection clause even if it is necessary to promote a compelling government interest. a. True b. False

false

A resident of one state, when in another state, can be denied the privileges and immunities of that state for any reason. a. True b. False

false

A state may not restrict certain kinds of advertising, even in the interest of preventing consumers from being misled. a. True b. False

false

All covenants not to compete are contrary to public policy and therefore illegal. a. True b. False

false

All gambling contracts in the United States are illegal. a. True b. False

false

An effective offer requires that a reasonable price be related to market value. a. True b. False

false

Because a corporation is a legal entity and not a human being, there can never be corporate criminal liability. a. True b. False

false

Because a donee beneficiary is merely receiving a gift, a donee beneficiary cannot win a lawsuit if the contract is not performed. a. True b. False

false

Because federal wiretapping law was enacted before social media networks existed, it does not apply to communications through social media. a. True b. False

false

Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one specific area of the law. T/F

false

Covenants not to compete are not permitted when they involve the sale of an ongoing business. a. True b. False

false

If a restriction imposed on speech by the government is content neutral, then a court will not allow it. a. True b. False

false

If performance is substantial, the other party's duty to perform is excused. a. True b. False

false

In a criminal case, the object is to obtain a remedy. T/F

false

In a product liability action, a contractual relationship between the manufacturer and the injured plaintiff must exist before the plaintiff can sue the manufacturer in court. a. True b. False

false

In considering a trial court's judgment, an appellate court bases its opinion on its de novo review of the evidence. a. True b. False

false

Independent regulatory agencies are not subject to the authority of the president. T/F

false

Internet service providers are generally treated the same as print publishers and other media regarding liability for defamation. a. True b. False

false

Judging a job applicant based on what an online search reveals about the applicant's activities outside the workplace universally is viewed as ethical. a. True b. False

false

Judicial review is the process through which Congress approves or rejects judicial appointments. a. True b. False

false

Nonverbal expression of belief is not a constitutionally protected form of expression. a. True b. False

false

Only Congress may pass a law in conflict with the Constitution. a. True b. False

false

Ordinarily, any party to a contract has a duty to come forward and disclose facts that the other party does not know about. a. True b. False

false

Ordinarily, every party to a contract has a duty to come forward and disclose facts. a. True b. False

false

Outcome-based ethics deals with traditional standards of behavior. a. True b. False

false

Output and requirements contracts are basically the same thing. a. True b. False

false

Posting negative comments about other individuals on your social media is always protected speech. a. True b. False

false

Privacy rights receive no protection under federal law. a. True b. False

false

State governments do not have any authority to regulate interstate commerce. a. True b. False

false

The U.S. government does not generally regulate private spaceports and the launch and reentry of private spacecraft. a. True b. False

false

The free exercise clause prohibits the government from passing laws that have any impact on religion. a. True b. False

false

There are criminal penalties for copyright violations of online materials only if the copies are made purely for financial gain. a. True b. False

false

Tracking vehicle movements by authorities with a GPS does not require a search warrant. a. True b. False

false

Under the Outer Space Treaty, the first nation to declare an intent to explore another planet or other celestial body is entitled to one year to complete preparations and launch, and during that time no other nation or private entity may attempt to explore that declared space. a. True b. False

false

Under the law that governs the international sale of goods, a merchant's firm offer is irrevocable only if the merchant gives assurances in a signed writing. a. True b. False

false

When a manufacturer argues that it engaged in reasonable quality control efforts, that argument will act as a sufficient defense in a strict product liability lawsuit. a. True b. False

false

When there is a direct conflict between a federal law and a state law, both laws are rendered invalid. a. True b. False

false

Under the Trademark Dilution Revision Act, a plaintiff must prove that the plaintiff owns a __________ mark that is distinctive; the defendant has begun using a mark that is _________ the famous mark; the similarity between the defendant's mark and the famous mark gives rise to a(n) ______________ between the marks; and this is likely to _________ the distinctiveness of the famous mark or harm to its _______.

famous, diluting, association, impair, reputation

Rory, the chief executive officer of Spout Off Inc., a website for short rants, claims that certain state and federal government actions infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to limit a. only the power of the federal government. b. federal and state actions. c. only the claims of individuals. d. only the conduct of corporations and other commercial entities.

federal and state actions.

Crimes such as arson, murder, rape, or robbery that carry the most severe sanctions are known as __________ . Lesser crimes, ___________ , are punishable by a fine or imprisonment for up to one year in other than a state or federal penitentiary. In criminal law, petty ____________ are the least serious kinds of criminal offenses, such as traffic or building-code violations.

felonies misdemeanors offenses

Levon files a suit against Manufacturing Corporation. The defendant believes that even if the plaintiff's statement of the facts is true, according to the law the defendant is not liable. Manufacturing Corporation should a. seek an admission of the truth of the matter relating to the trial. b. ask for a deposition. c. file a motion to dismiss. d. issue a summary judgment ch 5

file a motion to dismiss.

Jill is much stronger than Jack and stares at him in a menacing way. One day she tells Jack that she is going to beat him if she ever sees him again. Several hours later she sees Jack coming out of his house and proceeds to punch him in the face. Jack will probably bring a lawsuit against Jill: a. for battery only, because Jack was punched. b. for assault and battery, because there was both a threat and a harmful action. c. for assault only, because Jack was punched.

for assault and battery, because there was both a threat and a harmful action.

On her local television station, Jessica Aign advertises a "magic" cream that corrects baldness, even though she knows that the cream is just hand lotion. She may be tried: a. under state law only. b. for the federal crime of wire fraud. c. for the crime of embezzlement.

for the federal crime of wire fraud.

Chic signs Del's name, without authorization, to the back of Del's paycheck, which was issued by Earth Foods Market. This is a. larceny. b. no crime. c. robbery. d. forgery

forgery

Luc, a vehicle dealer, offers to sell Mel a truck and trailer, which Luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, Mel confronts Luc, who says he was not trying to fool Mel—he was only trying to make a sale. This is a. puffery. b. a mistake of value. c. a valid defense to a charge of fraud. d. fraudulent misrepresentation.

fraudulent misrepresentation.

Because a thief has no title to stolen goods, anytime the thief sells those goods, she or he has breached the warranty of ___________ imposed by the Uniform Commercial Code.

good title

Loss of _______ occurs when another party uses a domain name similar to yours.

goodwill

Sven goes to a bar, drinks eight shots of bourbon, and then goes to an electronics store, where he buys a large flat-screen TV for $2,500. If he later wants to void the contract based on his intoxication when he bought it, he will need to prove that a. his capacity to act would be classified as "legally unstable" b. the store clerk knew that he was intoxicated c. he lacked the mental capacity to enter into the contract

he lacked the mental capacity to enter into the contract

When the chief financial officer, or other executive, of a corporation is unsure whether a certain business action is legal, she should act a. in her own best interest. b. in the best short-run interest of the company. c. to maximize profit. d. honestly and responsibly.

honestly and responsibly.

Protection of trade secrets extends to both __________ . Because of this, there is no ________ requirement. But secret information must be known by someone, and so companies usually attempt to protect the secrets through _______ agreements.

ideas and their expressions, registration, confidentiality

If a buyer breaches a contract, the risk of loss to __________ goods immediately shifts to the buyer.

identified

Data Inc. adheres strictly to the goal of maximizing profits. Data will benefit from ethical behavior a. if its owners are happy with the revenue. b. if customer service is good. c. under no circumstances. d. if it efficiently allocates scarce resources.

if customer service is good.

Steps toward tort reform in the federal government and a number of states include all of the following except: a. capping the amount that attorneys can collect in contingency fees. b. increasing the burden of proof in negligence cases. c. requiring the losing party to pay both the plaintiff's and the defendant's expenses. d. limiting the amount of both punitive damages and general damages that can be awarded.

increasing the burden of proof in negligence cases

When a grand jury decides that someone should be charged for an alleged crime, such a charge is called an _____________.

indictment

A creditor beneficiary can sue to enforce a contract because they are an _____________________.

intended beneficiary

When a user or customer is injured because of fraudulent misrepresentation, the seller must have: a. Intended to cause injury. b. intended to induce the buyer's reliance on the misrepresentation. c. not known the user would rely on his statements. d. been negligent in its statements.

intended to induce the buyer's reliance on the misrepresentation.

Which of the following is NOT an element of fraud? a. intent to deceive b. intent to improve one's bargaining position c. justifiable reliance on a misrepresentation

intent to improve one's bargaining position

Those who enter retail premises are called business ________ . A landowner has a duty to discover and remove any _________ dangers to customers. When risks are __________, owners need not warn of them.

invitees, hidden, obvious

A homicide is classified as _________ when it results from an act of criminal negligence and there is no intent to kill.

involuntary manslaughter

The third type of warranty of title is the "no infringements" warranty, which automatically arises if the seller _____________.

is a merchant

Assumption of the risk: a. is not a viable defense in a product liability action. b. can only be used if the plaintiff was more than 50% liable. c. is only a viable defense for a negligence action. d. is a viable defense in a product liability action.

is a viable defense in a product liability action

Barney files a suit against Courtney, who fails to respond. Consequently, Courtney a. will have a second opportunity to respond at a pretrial conference. b. in effect refuted the suit, which will be dismissed. c. is subject to a judgment of default. d. is considered to have denied the plaintiff's claim

is subject to a judgment of default.

One of the basic differences between a common law and a civil law legal system is that: a. judges in civil systems do not allow witnesses to speak during trials. b. judges in civil systems often actively question witnesses. c. judges in civil systems are elected by the people.

judges in civil systems often actively question witnesses.

Olivia typically takes off her diamond ring while she works and puts it back on when she leaves. One lunch break, she leaves it on her desk. Jenna, a co-worker, takes the ring and does not return it. Jenna has probably committed the crime of ____________.

larceny

Secondary sources of law include:

legal scholars' research

A company may choose to allow a foreign company to produce its goods. In doing so, the U.S. company will __________ its intellectual property and/or technology to the foreign company to use in making the product, and the foreign company will pay the U.S. company ________________.

license royalties

Sometimes, the buyer of goods breaches a contract before the seller produces the goods. If that is the case, the seller can receive ____________ as compensatory damages.

lost profits

When a court determines that a contract was unconscionable at the time that it was made, the UCC allows all of the following EXCEPT which one: a. enforce the remainder of the contract without the unconscionable part b. limit the application of the unconscionable term to avoid an unconscionable result c. refuse to enforce the contract d. make the parties go through with the contract no matter what

make the parties go through with the contract no matter what

Raul uses social media to post links that, when clicked, secretly install software on others' computers without the owners' knowledge Raul's software is designed to harm or disrupt the computers. This program is a. a phish. b. entrapment. c. malware. d. larceny.

malware

Jill and Kane, with their attorneys, meet to try to resolve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is a. arbitration. b. none of the choices. c. mediation. d. negotiation.

mediation.

In Latin, a wrongful mental state is known as: a. mens rea. b. actus reus. c. deus ex machina.

mens rea

A ___________ breach does not discharge the nonbreaching party from the contract and once the breach has been cured, the nonbreaching party must resume performance.

minor

When goods are held by a bailee, risk of loss passes to the buyer when any one of the following occurs: a) The buyer receives a _____________ document of title for the goods; b) The bailee _____________ the buyer's right to ___________ the goods; c) The buyer receives a _____________ document of title, and the buyer has had ____________ to present the document to the bailee and demand the goods. If the bailee __________ to honor the document, the risk of loss remains with the seller.

negotiable acknowledges possess nonnegotiable a reasonable time refuses

Liz and Moss disagree over the amount due under their contract. To avoid involving a third party in the resolution of their dispute, Liz and Moss could resolve their dispute through a. litigation. b. mediation. c. arbitration. d. negotiation ch 4

negotiation.

The Florida legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by a. the federal government only. b. no one. c. the United States Supreme Court only. d. the state of Florida only.

no one.

Equity International Inc., a U.S. firm, and Finance Invest Ltd., a firm in Great Britain, are parties to a contract with a forum-selection clause. The forum specified in the clause must be within the geographic boundaries of a. a "select" forum, such as a United Nations protectorate. b. Great Britain. c. the United States. d. none of the choices.

none of the choices.

Generally, when minors act on their own, their parents are ____________.

not liable for contracts made by their minor children.

Open Range agrees to sell Pinewood Ranch a remote parcel of land for $15,000. Both parties believe the land to be worthless, but beneath it is shale rock containing oil. A court would a. rescind the contract on the basis of a mistake of value. b. rescind the contract on the basis of a mistake of opinion. c. rescind the contract on the basis of a mistake of quality. d. not rescind the contract.

not rescind the contract.

To be patentable, an invention, discovery, process, or design must be: a. creative, useful, and technological. b. technological, not obvious, and common. c. novel, useful, and not obvious. d. creative, beneficial, and inexpensive.

novel, useful, and not obvious.

Something of legally sufficient value may consist of the performance of an action that one is otherwise not ___________ to undertake. Something of legally sufficient value may consist of the ____________ from an action that one has a legal right to undertake, called a forbearance.

obligated refraining

In a civil case, the object is to a. take coercive action against a violating party. b. punish a wrongdoer to deter others from similar actions. c. obtain a remedy to compensate the injured party. d. resolve a dispute to the satisfaction of all concerned parties.

obtain a remedy to compensate the injured party

Trespass to land is defensible by: a. if the trespass does no harm. b. admitting fault. c. obtaining permission for use of that land. d. if the trespass was unintentional.

obtaining permission for use of that land.

Disparagement of Property

occurs when economically injurious falsehoods are made about another's product or property rather than about another's reputation

In an auction, the auctioneer acts as the ___________.

offeree

According to the theory of corporate social responsibility, any decision by corporate management should consider how an action affects the firm's a. shareholders only. b. profit only. c. officers and employees only. d. officers, shareholders, suppliers, customers, and community

officers, shareholders, suppliers, customers, and community

An anticipatory repudiation occurs when: a. the seller breaches after a nonconforming tender. b. the seller breaches after a conforming tender of the entire sale. c. the buyer breaches after tender of full payment. d. one party communicates to the other an intention not to perform.

one party communicates to the other an intention not to perform.

Mobile Device Company (MDC) discovers that defamatory statements about its products are being posted in an online forum. NuView Inc., the Internet service provider whose users are posting the messages, can disclose their identity a. whenever and however the provider chooses. b. only when ordered to do so by a court. c. only in egregious circumstances. d. in no circumstances. chp 9

only when ordered to do so by a court.

The UCC attempts to provide a consistent and integrated framework of rules to deal with all phases _________________ in a commercial sales transaction from start to finish.

ordinarily arising

Sal is arrested on suspicion of armed robbery. His lawyer and he engage in __________ with the prosecuting attorney so that Sal can be granted immunity from prosecution for that serious crime.

plea bargaining

An opportunity for inspection is a condition ___________ to the right of the seller to enforce payment.

precedent

Halogenics, Inc., manufactures a medical device that is heavily regulated by the government and has to undergo a rigorous pre-market approval process. Halogenics can use the following defense if it is sued: a. preemption. b. causation. c. full basis. d. no-knowledge exemption.

preemption.

The U.S. Constitution gives the __________ the power "by and with the Advice and Consent of the ___________ , to make ____________ , provided two-thirds of the _____________ present concur."

president Senate treaties Senators

Something of legally sufficient value may consist of a promise to do something that one has no _____________ legal duty to do.

prior

In a construction contract, if the owner breaches before construction begins, the contractor can receive ___________ . If the owner breaches during construction, the contractor can recover ______________ incurred. If the owner breaches after construction is completed, the contractor can receive the ____________ .

profits profits plus costs contract price plus interest

With respect to spam, thirty-seven states a. prescribe its use. b. prohibit or regulate it. c. preempt the application of federal law on the same subject. d. permit its use by business entities.

prohibit or regulate it

Traditionally, the hundreds of thousands of acts defined as criminal in federal, state, and local laws have been grouped into broad categories, including a. personal crime. b. private crime. c. public crime. d. property crime.

property crime.

Under federal copyright laws, a single-authored book is: a. protected for two generations of heirs after the author dies. b. protected forever. c. protected for the author's life plus seventy years. d. not protected.

protected for the author's life plus seventy years.

Pharma Corporation expresses opinions on political issues through its financial contributions to political action committees and other groups. Under the First Amendment, Pharma's "expression" is most likely a. discouraged. b. prescribed. c. prohibited. d. protected.

protected.

In determining whether a third party is an intended or incidental beneficiary, courts typically use the __________ test. Factors that indicate a party in an intended beneficiary may include whether performance is rendered ___________ the third party, if the third party has the right to ________________ of performance, and if the third party is _____________ mentioned in the contract.

reasonable person directly to control details expressly

When a U.S. firm establishes a wholly owned subsidiary in a foreign country, the parent company usually ______________ .

remains in the United States

Copyright owners generally are protected against unauthorized ____________ of the work, development of ____________ works, distribution of the work, and public ___________ of the work.

reproduction, derivative, display

When a party is fraudulently induced into a contract, that party can _____________.

rescind the contract

When a naïve purchaser relies on the opinion of an expert, the innocent party may be entitled to ___________.

rescission or reformation

Steel Buildings Inc. agrees to sell four portable garages to Truck Service Center. Five days later, Truck refuses delivery and cancels the contract. Steel is entitled to a. force Truck to accept the garages. b. resell the garages but not recover any damages from Truck. c. recover any damages from Truck but not resell the garages. d. resell the garages and recover any damages from Truck.

resell the garages and recover any damages from Truck.

Under the ___________ doctrine, a court may impose criminal liability on a corporate officer who knew about a given criminal violation.

responsible corporate officer

Under the Outer Space Treaty, with respect to a space object and the personnel aboard it, the launching state a. forfeits supervisory authority to the United Nations. b. retains complete jurisdiction and control. c. grants political autonomy to those aboard the object. d. shares dominion and responsibility with the United Nations.

retains complete jurisdiction and control

The key difference between larceny and robbery is that: a. robbery involves force or fear of force; larceny does not. b. larceny involves arson; robbery does not. c. robbery involves breaking into a dwelling; larceny does not.

robbery involves force or fear of force; larceny does not.

One party's intent to deceive the other party to a contract is known as: a. revision. b. scienter. c. caveat emptor.

scienter

Criminal negligence can occur when a defendant was not aware of the risk, but _______________.

should have been aware of it

Once a court has applied a principle to a certain set of facts, that principle must be applied in future cases involving a. any facts. b. similar facts. c. no particular facts. d. different facts.

similar facts.

Jane publishes a newsletter casting into doubt Eliza's ownership of her land. Jane has arguably committed: a. trade libel. b. slander of title. c. slander of quality

slander of title

Consideration can be defined as ________________.

something of value given in exchange for a promise

Erma enters into a contract to buy a tract of riverfront property from Forest Acres to build and sell a residential development. Forest Acres fails to close the sale. Erma's remedy is most likely a. nothing—Forest Acres still owns the land. b. specific performance. c. the difference between the contract and market prices of the land. d. the amount that Erma invested in the project to the date of the closing ch 13

specific performance.

In response to a discovery request by Bakery LLC, the plaintiff in a pending suit against Cinnamon Rolls Inc., the defendant delays a response to gain time to alter some of the data. Subject to possible sanctions, this is a. a brief. b. spoliation. c. voir dire. d. hearsay.

spoliation.

International organizations can adopt ____________ in the form of resolutions or declarations that require member nations to behave in certain ways. They also may create ____________ to be adopted by the member nations.

standards uniform rules

Steel Mill Inc. makes steel forms of substandard quality. Tower Building Company has never bought or used a Steel Mill form, but files a suit against the firm, alleging that its products are defective. The defendant's best ground for dismissal of the suit is that the plaintiff does not have a. minimum contacts. b. exclusive jurisdiction. c. venue. d. standing to sue.

standing to sue.

In product liability suits, statutes of limitations normally are set by: a. federal law. b. state law. c. municipal law. Ch 7

state law.

A person who employs a merchant as a broker, agent, or other intermediary has the __________ of a merchant in that transaction

status

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as a. the supreme law of the land. b. statutory law. c. the basis of all law in the United States. d. uniform law.

statutory law.

The U.S. government can bring an action for any conspiracy to harm competition that has a _________ effect on U.S. commerce. Foreign governments __________ be sued for violations.

substantial can

Heyli is not a resident of Iowa although her website can be accessed by residents of that state. Jen files a suit against Heyli in an Iowa state court. The court is most likely to have jurisdiction over Heyli if Jen's claim arises from a. minimum contacts between Heyli and any Iowa resident. b. substantial business between Jen and Heyli through Heyli's website. c. the Internet's capacity to bypass boundaries. d. no interactivity between Heyli and any Iowa resident through Heyli's website ch 4

substantial business between Jen and Heyli through Heyli's website.

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be a. material. b. substantial. c. complete. d. conditional.

substantial.

Power Company creates a t-shirt design to express support for state tax credits favoring the use of energy-efficient products. The firm distributes the t-shirts to many of its customers. The t-shirts are an example of a. unprotected speech. b. illegal speech. c. symbolic speech. d. commercial speech.

symbolic speech

In order for the rules contained in the UCC to apply to a contract for the sale of goods, the goods must be _____________________.

tangible (have physical existence)

A buyer who offers to pay for goods has ____________ payment and can therefore demand delivery of the goods.

tendered

During the trial of a suit concerning the terms of a contract between Marvel and Nina, the plaintiff's attorney presents evidence from Ochre, who is not an expert in the field about which he is being questioned. Ochre can a. offer his conclusion with regard to the case. b. offer his opinion about any of the evidence. c. testify only about what he personally observed. d. testify about any of the facts in the case.

testify only about what he personally observed.

Comity means: a. that one nation may take the property of the citizens of another nation for just compensation. b. that lawyers recognize the legal decrees of other states and nations. c. that one nation will show deference for the laws and decrees of another nation.

that one nation will show deference for the laws and decrees of another nation.

A speedy trial, a trial by jury, a public trial, and the right to confront witnesses are guaranteed by a. the Fifth Amendment. b. the Fourth Amendment. c. state law, not the U.S. Constitution d. the Sixth Amendment.

the Sixth Amendment.

The major space law treaties were concluded by ____________.

the United Nations Committee on the Peaceful Uses of Outer Space (COPUS)

The international organization charged with the responsibility for eliminating trade barriers including tariffs is ________. a. UNICEF b. the WWF c. the CIA d. the FBI e. the WTO

the WTO

The utilitarian theory of ethics does not require a. a determination of whom an action will affect. b. an assessment of the effects of alternatives on those affected. c. a choice among alternatives to produce the maximum societal utility. d. the acquiring of the means of production by workers.

the acquiring of the means of production by workers.

Article 19 of the CISG provides that a contract may be formed even though an acceptance contains additional terms, unless ______________.

the additional terms materially alter the contract

Ty, a citizen of Utah, files a suit in a Utah state court against Vancouver Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that a. the case is being heard for the first time. b. the court has a unique method of deciding whether to hear a case. c. the subject matter of the suit is interesting and new. d. the court has unusual procedural rules.

the case is being heard for the first time

The National Association of Manufacturers (NAM) announces a new industry code of ethics. The effectiveness of this code will be determined by a. the commitment of NAM's members to enforcing the code. b. the relationship between the code and the law. c. the success of the campaign publicizing the code. d. the similarity of the code to the personal values of NAM's members.

the commitment of NAM's members to enforcing the code.

In a construction contract, when the contractor breaches, the damages are measured as _____________.

the cost of completion

Faiz enters into a contract to buy 350 acres from Grain Farm to cultivate hops and open a brewery. Faiz fails to make the purchase. Grain Farm's remedy is most likely a. the amount that Faiz expected to invest in the brewery. b. nothing—Grain Farm still owns the land. c. a percentage of Faiz's unrealized profit. d. the difference between the contract and market prices of the land.

the difference between the contract and market prices of the land.

In most states, when a seller of real estate breaches a contract and sells the land to someone else, the measure of compensatory damages is: a. the difference between the market price and the contract price. b. fifty percent of the contract price. c. the contract price. d. the market price of the land.

the difference between the market price and the contract price.

The standard measure of compensatory damages can be stated as: a. the benefit to the breaching party for the breach of contract. b. the difference between the promised performance and the actual performance. c. the profit to the innocent party. d. the difference between the contract value and the market value with a penalty for poor behavior.

the difference between the promised performance and the actual performance.

The measure of damages for a breach of contract where there was substantial performance is: a. the price of the contract. b. the difference in value between the performance that was rendered and the market value of the performance. c. the cost of having perfect performance by another skilled vendor. d. the difference in value between the performance that was rendered and the performance if the contract had been performed perfectly.

the difference in value between the performance that was rendered and the performance if the contract had been performed perfectly.

The jurisdiction of the federal courts is limited because a. the federal government has limited powers. b. the states can exercise their authority under long arm statutes. c. Congress sets the limits. d. the territory of the United States is limited.

the federal government has limited powers.

One good defense against strict product liability is that _____________.

the goods were altered after they were sold.

Teresa must resolve a business problem for which she believes there is no easy answer. She identifies the reasons for this belief before analyzing solutions. In terms of the IDDR approach, this is a. the decision step. b. the inquiry step. c. the discussion step. d. the review step.

the inquiry step

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price-fixing agreement with Total World Sports, a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if a. the agreement was made in Switzerland. b. the price fixing has a substantial effect on U.S. commerce. c. the Swiss government agrees to be sued in the United States. d. the agreement was made in the United States.

the price fixing has a substantial effect on U.S. commerce.

Ray, the manager of Soy Farm Inc., must decide whether to plant genetically modified seed that could spread to the crop of an adjacent farm, whose owner opposes its use. Not using the seed could cut Soy's production and profitability, impacting its owners, employees, creditors, and others. If Ray considers all of these factors in making his decision, he is likely applying a. the principle of rights theory. b. religious principles. c. utilitarianism. d. the categorical imperative.

the principle of rights theory.

Global Project, a U.S. firm, owns property in Hong Kong. The government of China seizes the property. The firm claims that this is confiscation. The government claims that it is expropriation. The difference concerns a. the business of the firm and the citizenship of its owners. b. none of the choices. c. the purpose of the seizure and the payment of compensation. d. the location of the seizure and the nature of its government.

the purpose of the seizure and the payment of compensation

Privity of contract refers to: a. the level of fraudulent misrepresentation in a contract. b. the relationship that exists between the parties to a contract. c. the relationship between the manufacturer and the seller of a dangerous product. d. the length of time a contract has existe

the relationship that exists between the parties to a contract.

In a case based on diversity of citizenship, a court will apply a. the relevant state law. b. the law that produces the most equitable result. c. any law that the parties to the case agree to apply to their dispute. d. federal common law.

the relevant state law.

If the contract does not indicate where the goods will be delivered, then the place of delivery will be one of the following: a) _______________ ; b) the seller's ____________ , if the seller has no business location; c) the ____________ of the goods, if both parties know at the time of ______________ that the goods are located somewhere other than the seller's business.

the seller's business location residence origin contracting

Federal regulations concerning medical devices directly conflict with a certain state law. Under the U.S. Constitution, which law takes precedence is determined by a. the commerce clause. b. the supremacy clause. c. the full faith and credit clause. d. the privileges and immunities clause.

the supremacy clause

Market-share liability is a: a. theory used to reduce damages based on a plaintiff's proportion of fault. b. theory used to require that an injury was caused by a specific defendant. c. theory used to divide damages among multiple distributors of a harmful product.

theory used to divide damages among multiple distributors of a harmful product.

The main reason that U.S. firms establish manufacturing plants abroad is that: a. they increase their shipping costs. b. they can better manage marketing campaigns. c. they can reduce costs. d. they can control trade barriers.

they can reduce costs.

Goods may not be imported to the United States if ________________.

they come from a country designated an enemy of the United States.

A person who commits a tort is known as a: a. criminal. b. maladjustor. c. perpetuator. d. tortfeasor. e. instigator

tortfeasor

The distinctive color, furniture, labels, logos, and employee uniforms that might be used by a company are known as its: a. formal trade list. b. trade dress. c. collective mark. d. trademark.

trade dress.

You throw a small birthday party for a friend at a county park. The park closes at sundown, but you and your friend want to come back early the next day to continue the fun, so you leave some of your belongings in the picnic area to hold your spot. Most likely you have committed: a. trespass to land, but you have a complete defense. b. trespass to land. c. trespass to personal property.

trespass to land.

Obtaining goods by false pretenses is a form of theft that involves __________. If you know that a friend has given you stolen goods, you will be guilty of __________.

trickery receiving stolen goods

A U.S. firm can expand internationally through a joint venture. a. True b. False

true

A constitution is a primary source of law. T/F

true

A local ordinance commonly has to do with a matter concerning only a local governing unit. T/F

true

Acme, Co. was using dynamite to blast rocks at a quarry. They exercised all reasonable care, but Tom was still injured by a piece of debris. Acme can be held strictly liable for Tom's injury. a. True b. False

true

Carmen agrees to cook twenty dinners for Hal. In exchange, Hal will repair all of the plumbing in Carmen's house. Carmen has offered legally sufficient consideration because Carmen has promised something of value. a. True b. False

true

Corporations are normally liable for the crimes committed by their agents and employees within the course and scope of their employment. a. True b. False

true

Corporations enjoy many of the same rights and privileges as natural persons do. a. True b. False

true

Courts generally assume the existence of contractual capacity. a. True b. False

true

Courts often refer to secondary sources of law for guidance in interpreting and applying a primary source of law. T/F

true

Foreign companies have established plants in the United States to avoid import duties that are imposed on products entering the United States from their countries. a. True b. False

true

If a seller breaches a contract by supplying non-conforming goods, risk of loss will not immediately pass to the buyer. a. True b. False

true

If a seller fails to deliver conforming goods, the measure of recovery in the buyer's suit for damages is the difference between the contract price and the market price at the time the buyer learns of the breach. a. True b. False

true

In commercially impracticable situations, the perfect tender rule no longer applies. a. True b. False

true

In sales law, a warranty is an assurance or guarantee by the seller or lessor about the quality and features of the goods being sold. a. True b. False

true

Many of the more than 4,000 federal criminal offenses do not require a specifically wrongful mental state. a. True b. False

true

Many states have also enacted laws that punish behavior criminally without the need to show criminal intent. a. True b. False

true

Misrepresentation of law ordinarily does not entitle a party to relief from a contract. a. True b. False

true

Online defamation occurs when an individual communicates a false statement about a person through the internet. a. True b. False

true

Only if a state legislature adopts a uniform law does that law become part of the statutory law of that state. T/F

true

State regulatory powers are often referred to as police powers. a. True b. False

true

The Digital Millennium Copyright Act protects copyrighted material from piracy online. a. True b. False

true

The basis of a civil law system is a written code of laws. T/F

true

True/False In the United States, the law consists of written laws and court decisions.

true

Under the Proposed Consumer Privacy Bill of Rights, consumers have a right to reasonable limits on the personal data that companies collect and retain. a. True b. False

true

When an innocent party is fraudulently induced to enter into a contract, the contract normally can be avoided because that party has not voluntarily consented to its terms. a. True b. False

true

When religious practices work against public policy, the government can act. a. True b. False

true

When bargains are so oppressive that the court decides to relieve innocent parties of their duties, such bargains are deemed _____________.

unconscionable

Any contract to commit a crime is in violation of a statute and therefore ___________.

unenforceable

Build-It Inc. applied an inexpensive but untested technique to brace a transit tunnel wall. The technique was legal but the tunnel collapsed, killing several commuters. Build-It's action was a. ethical because the technique inexpensive and untested. b. ethical because the technique was legal. c. unethical because the technique was inexpensive. d. unethical because the technique was untested.

unethical because the technique was untested.

Because many products cannot be made 100 percent safe for all uses, sellers are only liable for products that are ____________.

unreasonably dangerous

Under the UCC, a contract that contains open terms will be: a. valid if the parties intended to form a contract and there is a good basis for a court to grant a remedy b. valid if the contract involves the sale of land or other real property c. valid as long as the parties express "serious" interest in negotiating

valid if the parties intended to form a contract and there is a good basis for a court to grant a remedy

A bailee is someone: a. who temporarily cares for your personal property without passage of title. b. to whom you donate an item of personal property. c. who is also known as a buyer or lessee and can accept title of property.

who temporarily cares for your personal property without passage of title.

Marte hires Pilar to represent her in a lawsuit. Pilar is not a licensed attorney, although she claims to be one, so the contract between Marte and Pilar _____________.

will not be enforced

While an alphabetical listing of phone customers cannot be copyrighted, the yellow pages and advertising sections of a phone book may be copyrightable because the: a. yellow page information is selected and arranged in an original way. b. yellow pages are distinctly yellow. c. yellow pages deal with businesses and not individual names

yellow page information is selected and arranged in an original way.