BUS Final Exam Review

Dr. Gonzalez ordered specialized surgical equipment from Physician's Supply Co., but his order was not delivered by the agreed date. Gonzalez is under no obligation to minimize damages since the contract was breached by Physician's Supply, not Gonzalez.

False

Either party may demand rescission of a fully executed oral contract if it was required to have been in writing under the statute of frauds.

False

Emails and their attachments are not subject to pretrial discovery

False

Frank suffers from a mental impairment due to a brain injury from a airplane accident. He contracts with Glena to purchase her dining room furniture. A month later, he tries to void the contract. If he is unable to return the furniture, a court will not rescind the agreement unless Frank can show that Glena acted in bad faith.

False

Fraudulent, but not innocent, misrepresentation permits the injured party to rescind a contract.

False

Gadberry lives in a "common interest development" (CID) and has parked his new pickup truck in his driveway. The Neighborhood Association informs him that, according to their regulations, he may not have a truck in the sight of passersby. The Association has made an unconstitutional restriction of the property rights of residents of the CID.

False

General deterrence is intended to teach a specific defendant not to repeat criminal conduct

False

Generally, neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

False

Hankrin Corp. is incorporated under Delaware law and has its principal place of business in Annapolis. For diversity purposes, it is considered a resident only of Maryland.

False

Hannah orally agrees to sell her house to Brett for $175,000. If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay, most courts will not enforce the contract since it was not in writing.

False

If Gloria threw a rock which hit Merle, she is liable for an intentional tort of battery only if she intended to injure or harm Merle.

False

If Lorenzo is seeking an injunction against Brenda to prevent her from selling materials that infringe his copyright, he is entitled to a jury trial if the value of the materials is over $100.

False

If Milan asks a court to order Pamela to stop reprinting his copyrighted material, he is seeking a legal, rather than an equitable, remedy.

False

If a salesperson says, "This is a great car and it's really fun to drive," but the car turns out to be a lemon, the salesperson has committed fraud.

False

If both parties believe they have a binding contract, this belief is controlling if there is later a question about the validity and enforceability of the agreement.

False

If interrogatories are being used as a form of discovery, the party being questioned must generally answer all the questions orally under oath.

False

If the President vetoes a bill, it can still become a law if both the House and the Senate approve it with a 51% majority

False

In an advertisement, FreshAir, Inc. stated that its air freshener lasted for 3 hours while the competitor, Smell Sweet, lasted for only 36 minutes. In. fact, Smell Sweet freshens the air for more 2 hours. FreshAir has not violated the Lanham Act because the First Amendment's guarantee of freedom of speech applies

False

In negotiating the purchase of a vehicle, the sales representative told Karla, "I guarantee that you will be personally satisfied with this car." The guarantee was written on the contract when Karla purchases the car. If a controversy arises over Karla's satisfaction, the court will apply a subjective standard, which means Karla's judgment must be reasonable.

False

Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.

False

Under the law of most states, a corporation cannot be held responsible for committing crimes

False

In most states dram acts apply to: a) liquor stores, bars, and restaurants but not to social hosts b) liquor stores, bars, restaurants and to social hosts c) social hosts, liquor stores, and bars d) none of the above

A

When courts reconsider economic duress, they consider all the following factors EXCEPT: a) relative bargaining power b) financial distress c) legitimate business actions d) relative size of the contract

D

M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged by: a) full performance b) agreement c) rescission d) accord and satisfaction

A

Melody is a recent graduate of State Law School. She lands an impressive employment contract with the firm of Dewey, Cheathem, and Howe, Attorneys at Law, on the stated provision that she pass the upcoming bar exam. This provision in the employment agreement is a(n): a) condition precedent b) condition subsequent c) implied condition d) concurrent condition

B

Which of the following relationships will ordinarily not create an insurable interest? a) husband and wife b) doctor and patient c) debtor and creditor d) chief executive officer and corporation

B

Eric was charged with attempted murder. His defense was that he was insane at the time of the act. A jury accepted Eric's defense. Eric will: a) probably be committed to a mental hospital and when that hospital determines he is no longer a danger to society, he will be released b) be declared guilty, but will have to serve his sentence in a mental hospital rather than in prison c) have to be committed to a mental hospital until her regains his sanity, at which time he will be retried d) be sent to prison once he is released from the mental ward

A

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes. The potatoes are beginning to rot. If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad, then this action would be considered: a) a reasonable mitigation of damages b) an attempt to maximize damages c) an attempt to realize an unwarranted profit d) conversion

A

If in 1900 the Minnesota Supreme Court ruled that a minor can void a contract at any time during minority and in 2008 the courts in Minnesota still follow this ruling, this is an example of: a) stare decisis b) the bystander rule c) statutory law d) enabling legislation

A

A civil case generally proceeds as follows: a) answer, complaint, discovery, trial, verdict b) complaint, answer, trial, discovery, verdict c) complaint, answer, discovery, trial, verdict d) discovery, complaint, answer, trial, verdict

C

If a contract is made with a person required by law to hold a license, and the purpose of the license is protection of the public, the contract made by an unlicensed person will generally be unenforceable.

True

A contract clause which specifies the amount of damages to be paid in the event of a breached is called: a) a covenant of damages clause b) a reliance interest of damages clause c) a liquidates damages clause d) an incidental damages clause

C

Important steps in the criminal process, in the proper order, include: a) probable cause hearing, search, arrest, indictment, arraignment, plea bargain, and trial b) arraignment, booking, bail hearing, trial, and grand jury indictment c) arrest, probable cause hearing, motion to suppress, booking, and trial d) indictment, arrest, probable cause hearing, plea bargain, arraignment, trial, and appeal

A

In a comparative negligence state, if the plaintiff in a negligence lawsuit is found to be 30% negligent, the plaintiff would recover: a) 70% of damages b) all of damages c) name of damages d) 30% of damages

A

If a minor can cancel a contract, it can be done at any time during minority or within a reasonable time after reaching majority.

True

A United States district court is: a) the primary federal trial court b) an appellate court c) a small claims court only d) none of the above

A

A promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an: a) enforceable requirements contract b) enforceable output contract c) unenforceable, illusory contract d) unenforceable promise based on past consideration

A

Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the office one night, Adam, wearing a mask, stepped out from behind some bushes. He pointed a handgun made out of licorice at her and demanded her purse. He then pushed the candy gun to her head and told her if she told anybody he'd kill her. Linda was very scared during the whole incident. She did not think it was funny when Adam pulled the mask off and took a bite out of the gun as he gave her the purse back. Did Adam commit the tort of intentional infliction of emotional distress? a) Yes, as his conduct was intentional b) Yes, but only if Adam intended to cause Linda serious emotional distress c) No, since he was only playing a practical joke d) No, since Linda was not physically hurt by Adam

A

After the plaintiff has presented her case, the defendant may be granted a a) directed verdict b) summary judgement c) judgment n.o.v d) judgment on the pleadings

A

An agreement to pay a lesser amount to settle an unliquidated debt is: a) enforceable; as there is consideration b) unenforceable, as there is no consideration c) enforceable in only some states d) unenforceable as a violation of public policy

A

An insurance contract is not considered to be a legalized form of gambling because: a) one must have an insurable interest in the person being insured b) insurance contracts are underwritten by reputable companies c) insurance activities are regulated by the state department of insurance d) all of the above

A

Barb has been a children's day care provider for several years in the small town of Sallton. She has decided to give it all up and move to the big city for excitement and adventure. She sells her business to Ken, agreeing not to open a competing business within five miles of Sallton for a period of nine months. After five months of the big city life, Barb is broke and moves back to Sallton. She opens a small day care business. Ken sues on the noncompete clause. What is the most likely result? a) Ken wins. The agreement is enforceable b) Barb wins. The agreement is denying her the right to do the only thing she knows how to do c) Barb wins. The agreement is not enforceable because it is not ancillary to a legitimate bargain d) Barb wins. The agreement is not enforceable as to time

A

Contemporary law's principle of collective responsibility, such as all partners being personally responsible for the debts of the partnership, had its roots in: a) the Anglo-Saxon method of ensuring public order through tithing b) the Anglo-Saxon practice of using "oath helpers" c) the English use of "shire Reeves" d) the English system of feudalism

A

Dana hires Paris to paint a portrait of her poodle, "Mack." The painting is to be done to Dana's personal satisfaction. Upon completion of the painting, which of the following will be true? a) Dana may refuse to accept the painting of she really does not like it b) Dana may refuse to accept the painting only if a reasonable person would not like it c) Dana may refused to accept the painting if she cannot afford to pay for it d) Dana may not refused to accept the painting

A

Diane, a police officer, stops Tim's car for a traffic offense. While talking to Tim, she shines a flashlight into the passenger compartment of Tim's car and sees evidence of drug paraphernalia. Which statement is correct? a) Diane may search the passenger compartment of the car and any place else in the car, including the trunk, without Tim's consent b) Diane may search the passenger compartment of the car without Tim's consent; however, she may not reach the trunk of the car without his consent or without a search warrant c) Diane may not search the passenger compartment of the car (nor any place else) without Tim's consent or a search warrant. However, she can require Tim to remain parked until the search warrant is brought to her d) Under the above circumstances, Diane can write Tim a traffic citation but cannot search the vehicle

A

If the offer does not specify a type of acceptance, the offeree may accept in any reasonable manner and medium.

True

Roger assaulted Jim in a tavern, causing medical expenses and lost wages. Which of the following is true? a) Roger can be prosecuted by the state for a criminal offense and Jim may sue him for money damages b) If Roger is convicted of criminal assault, Jim is not allowed to sue him for money damages since that would violate the double jeopardy clause of the Constitution c) If Jim refuses to press charges against Roger, the state cannot initiate a criminal proceeding against him d) Jim can either elect to sue for money damages or proceed with criminal charges

A

Sid burned his own warehouse in an attempt to collect on a fire insurance policy. Sid has committed: a) arson b) larceny since he committed an act intended to wrongfully obtain money from his insurance company c) a crime called "burning to defraud insurers" since the crime of arson only applies to property owned by another person d) an intentional tort, but not a crime since a person has a right to destroy his own property

A

The Administrative Procedure Act: a) applies to all federal agencies b) applies to executive branch agencies but not to independent agencies c) applies to independent agencies but not to executive branch agencies d) does not apply to federal agencies

A

The Grand Performance Hall is in the process of remodeling and is scheduled to open for business after being closed for 50 years. As part of the remodeling, it is installing a new sound system. The sound system is to be installed by Sound Systems, Inc. on or before April 10. Opening night of the hall is May 1. The contract states that "time is of the essence" because of the opening-night deadline. Sound Systems has some financial difficulties and doesn't deliver the system until April 20. Grand Hall refuses to accept it, and Sound Systems sues. What result? a) Grand Hall wins; the contract date was strictly enforceable b) Sound Systems wins; the contract was substantially performed c) Grand Hall wins; there was commercial frustration d) Sound System wins; there was a true impossibility

A

The US Supreme Court's holding in Ward's Cove Packing v. Atonio: a) differed from the holding in Griggs v. Duke Power CO partly because the Court was more conservative at the time Ward's Cove was decided b) upheld the ruling in Griggs v. Duke Power Co c) found that overt racial discrimination existed d) set forth a "business necessity" requirement for employment hiring practices

A

The Uniform Electronic Transmission Act (UETA): a) declares that a contract or signature may not be denied enforceability just because it is in electronic form b) was passed by Congress in 2002 c) creates a safe cyberspace environment in which business communications cannot be intercepted or fraudulently altered d) all of the above

A

The United States has taken a position that legal issues are best resolved by lawsuits involving parties with conflicting interests presenting their strongest possible case to a neutral fact-finder. Because of this, the legal system in the United States is considered: a) an adversary system b) a conflict system c) an alternative dispute resolution system d) a mediation system

A

The Utah Court of Appeals in the Dementas v. Estate of Tallas case found: a) the trial court correctly determined that there was no consideration to support Tallas's promise b) Utah applies the "moral obligation" exception to the requirement of consideration, and therefore Tallas's promise was supported by consideration c) because Utah does not recognize the "moral obligation" exception to the requirement of consideration, Dementas prevails d) the trial court's finding that the services rendered by Dementas to Tallas were performed gratuitously was erroneous

A

The biggest chance in litigation in the last decade is: a) an explosive rise of electronic discovery b) a decrease in the use of discovery c) the replacement of interrogatories with depositions d) the use of juries in appellate courts

A

The concept of stare decisis focuses most on: a) predictability b) flexibility c) legislative intent d) change

A

The first step a court takes in choosing a remedy is to determine: a) what interest it is trying to protect b) if the damages can be quantified with reasonable certainty c) if punitive damages should be awarded d) whether the injured party mitigated its damages

A

The last protected trait added by Congressman Smith of Virginia to the bill which became Title VII of the Civil Rights Act of 1964 was: a) sex(gender) b) sexual orientation c) national origin d) race

A

The primary purpose of RICO was: a) to be a tool against organized crime b) to raise revenue c) to prosecute non-citizens d) to prosecute those engages in tax fraud

A

Tommie, a six-year-old child, was seriously injured when he stuck a fork into an electrical outlet. His parents sued the restaurant where the incident occurred, claiming it should have had child protective guards on the outlets. Whether the restaurant is liable will be dependent upon whether: a) the incident was reasonably foreseeable b) the parents exercised enough supervision of their child c) this is negligence per se d) this is an ultra hazardous activity

A

Vicki entered in written contract to buy a car from Valley motors. The written contract included a provision that stated "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant. This is: a) an integration clause b) a statute of frauds clause c) parol evidence d) an exculpatory clause

A

Vivian goes to an auction and see a rare antique lamp that is an identical match to one she already has. At the proper time she bids on the lamp and is the highest bidder. Even though she is the highest bidder, the auctioneer refuses to accept her bid and withdraws the lamp from the auction. Can the auctioneer do that? a) Unless otherwise stated, the auctioneer had the right to withdraw the item before the fall of the hammer b) Generally, the auctioneer must sell to the highest bidder. Vivian will get the lamp c) Generally, the auctioneer is the offeror and the bidders are the offerees so there is a contract and Vivian will get the lamp d) Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp

A

Wayne worked in an office. He had no criminal record, had never had a complaint made against him about his work or his conduct, and had been a faithful employee for nearly 20 years. One day, Wayne followed his supervisor to his home and fatally shot him. The estate of the supervisor sued the company, claiming it should have been aware of Wayne's growing frustration with work. The company's best defense will be that a) there was no way to foresee that the incident would happen b) the incident occurred away from the office c) the killing was the result of a personal conflict between Wayne and the supervisor d) even if the company had been aware of Wayne's difficulty with his supervisor, Wayne did not have any criminal history

A

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions? a) totally integrated contracts b) incomplete contracts c) ambiguous contracts d) oral contracts

A

Which of the following are generally considered to be legal offers? a) placing an item up for auction b) catalog advertisements c) price lists d) a note scribbled on a restaurant napkin that includes the details of the offer

D

A contract most likely will be declared unconscionable if: a) it is unbalanced, making it unfair to one party b) it contains a cancellation clause c) it is oppressive and the weaker party did not fully understand the consequences of the agreement d) it is signed by a minor for an item of luxury

C

Under the UCC, which of the following contracts may be enforceable, even without a written memorandum? a) the seller is specially manufacturing the goods for the buyer b) the seller admits in court that there was a contract c) the seller delivered to sign the agreement d) all of the above

D

A court: a)will enforce any express conditions intended by the parties. b) may refuse to enforce an express condition intended by the parties if the court determines it is unfair and harmful to the general public. c) requires strict performance if a clause of the contract expressly demands it. d) applies an objective standard whenever ruling on a personal satisfaction contract.

B

A customer in a restaurant would be considered ________ to whom the restaurant owner owes a duty ________. a) a licensee; to warn of known dangers b) an invitee; of reasonable care c) a social guest; only to avoid intentionally injuring him d) none of the above

B

Laura, a brain surgeon, committed a negligent act when she ran a red light and injured Randy, a pedestrian crossing the street. Randy was a mentally impaired adult. a) the "reasonable person" standard does not apply to Laura since she is an extraordinary person b) Both Laura's and Randy's conduct will be based on the "reasonable person" standard c) the "reasonable person" standard does not apply to Randy since he is mentally impaired d) the "reasonable person" standard does not apply to Laura nor Randy given their respective degrees of extreme intelligence (one high or low)

B

Mary contracted to buy 100 table lamps. Under the terms of the agreement, Mary is to pay for the lamps upon delivery. This is an example of: a) a condition precedent b) a concurrent condition c) a condition subsequent d) a service condition

B

A condition: a) is created only when the phrase "provided that" or a similar phrase introduces it. b) is an event that must occur before a party becomes obligated under a contract. c) must be expressly stated, although it can be created by informal language. d) will not be enforced by the courts unless formal language is used, regardless of the intent of the parties to create a condition.

B

A national magazine published an article about a famous television star. The television personality is upset because the information contained in the story is not correct. If the actress sues the magazine: a) she will need to show that the magazine has a history of being "reckless" with facts on a regular basis b) she will need to show that the magazine either knew the story was false or acted with reckless disregard to the facts c) she will need to show that the magazine failed to attempt to verify the story by trying to contact her or her agent before the story was printed d) she will need to show that the magazine could have discovered that the story was false but failed to do so

B

Al contracted to sell his house to Bev. Subsequently, they both changed their minds and agreed to cancel the contract. The contract between Al and Bev is discharged by: a) full performance b) rescission c) accord and satisfaction d) novation

B

An exculpatory clause is generally unenforceable when: a) it attempts to release a party from liability for ordinarily negligent behavior b) it involves public transportation c) it is written clearly and in bold, large print d) the affected activity is a recreational activity

B

An intentional tort involves conduct in which: a) the defendant intended to harm the plaintiff b) the defendant intended a certain physical act which ends up hurting someone c) injuries are caused to someone because of the defendant's neglect or oversight d) there is resulting punishment, including prison, for the defendant

B

An unliquidated debt can be described as: a) a debt in which both its existence and amount is in dispute b) a debt in which the existence or amount is in dispute c) a debt disputed by the creditor but not the debtor d) a debt undisputed by either party

B

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true? a) Jane can still accept the offer and John must find a 1955 Thunderbird to sell b) The offer is terminated by law c) Dick can still revoke his offer so long as he does so before Jane accepts d) Jane can still accept the offer. She will be entitles to the insurance proceeds

B

Dodger bought an insurance contract from Liberty Farm Co. The policy contained a clause stating that all claims for losses had to be reported within 45 days after the date of the loss or the claim would be barred. Time is stated to be of the essence. Dodger sustained a covered farm loss, but did not report it to Liberty Farm until 50 days later. Liberty Farm denied coverage for the claim. If Dodger sues, who wins? a) Dodger wins; the contract was substantially performed b) Liberty Farm wins; there was failure of a condition subsequent c) Dodger wins; courts will not enforce a time-of-the-essence clause d) Liberty Farm wins; the impossibly doctrine applies

B

Don was driving his truck when a board fell out of the truck bed and onto the road. Alice, who was driving closely behind Don's truck, tried to avoid the board, swerved and struck a telephone pole, causing her severe injuries. Which of the following is correct? a) Don is strictly liable to Alice for her injuries b) In a comparative negligence state, the actions of Don and Alice will be weighed to determine liability c) Don was not negligent in allowing the board to fall out of his truck d) Don is engaging in ultra hazardous activity

B

Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the United States declared war on Mexico. Thoreau felt that there was a higher law than the law of the land. Which theory of jurisprudence was he applying? a) Legal Positivism b) Natural Law c) Legal Realism d) Common Law

B

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate. They draft a letter of intent which: a) protects both parties by ensuring the other side is serious and creates a binding agreement on the issues on which the parties have agreed thus far b) may or may not be an offer, depending on the exact language and whether the document indicates that the parties have reached an agreement c) has no legal effect, but provides a record for the parties as to where the negotiations stand d) courts will consider to be a valid offer which the other party must accept if offered in good faith

B

Illegally obtained evidence is not permitted to be used at a criminal trial based upon the a) silver plate doctrine b) exclusionary rule c) fair play doctrine d) Eighth amendment

B

In January 2008, Professor Now entered into a contract with State University. She agreed to teach full time during the 2008-2009 academic year. Professor Noe died on May 31, 2008. Her estate: a) is obligated to find another person who will agree to teach during the academic year b) is discharged from any further obligations under the contract c) will be discharged from any obligations under the contract only if it can be shown that her death was unexpected d) will not be discharged. If the University has to pay more in order to hire a comparable substitute professor at the last minute, then the estate will be responsible for the difference in pay

B

In bailment cases, exculpatory clauses: a) are very rarely used b) are somewhat more likely to be enforced than in other types of cases c) ordinarily involve an attempt to limit liability for damage to persons rather than property d) none of the above

B

In order to satisfy the statute of frauds, a writing must: a) be a formal written document drafted by an attorney b) be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises c) be notarized d) all of the above

B

In the case of Sepulveda v. Aviles, the New York Supreme Court, Appellate Division, found evidence of undue influence in: a) the relationship based on family connection between Seals and Aviles b) Aviles's use of Seals' funds and credit cards c) opinions of Aviles and Seals' attorney about Seals' mental state at the property closing d) All of the answers are correct

B

Jaime offered to buy Kevin's bike. Jamie is the: a) offeree b) offeror c) mortgagor d) trustee

B

Jennifer substantially performs her service contract with Gretchen. Due to Jennifer's failure to render complete performance, Gretchen: a) is discharged from any further contractural obligations b) is required to pay the full contract price, minus the value of Jennifer's defective performance c) is required to pay the full contract price d) may declare a material breach and pay only for the value received

B

Mercury Motors inadvertently mixes up a work order on Peter's car. Peter brought the car in to have the tires rotated. Mercury tuned up the motor by mistake, conferring a benefit on Peter. If Mercury Motors insists that Peter pay for the price of the tune-up, Mercury Motors: a) can recover its reliance interest b) cannot recover its expectation interest because there was no enforceable agreement c) will win based on breach of contract d) will lose because a personal service contract was involved

B

Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1. The contract contained a provision which required all modifications to be written and signed by the company presidents. In early August, an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil; one in September and the second one in December. By September 30, when only 500 gallons had been delivered, NSB sued. The likely outcome of this lawsuit is: a) NSB wins because the modification was not supported by new consideration b) NSB wins because the modification has to be in writing c) Mid-American Oil wins because the UCC governs this case and no new consideration is required d) Mid-American Oil wins because new consideration was present

B

Miguel reprogrammed a cellular telephone so that it intercepted electronic funds transfers and rerouted them to Miguel's bank account. What crime has he committed? a) insurance fraud, since the bank's insurance will have to cover the misdirected frauds b) wire fraud c) mail fraud d) embezzlement

B

Mike owns a house in a poor area of a large city. Mike is on disability and his total monthly income is $700. A sales representative visits his home, selling a water purification system. Mike signs a contract that calls for monthly payments of $500 for the next 10 years. The water system is worth no more than $1000. Mike thought he was signing a permission slip allowing the salesman to conduct a free water test to determine the toxins in the water. How would a court most likely describe this contract? a) the contract is fully enforceable as written b) the contract is unenforceable because it is unconscionable c) the contract is enforceable, but only up to the value of the water system d) the contract is unenforceable because it is exculpatory

B

Psychologist Holtz is working with a patient, Rebecca, who has expressed the intention to seriously harm two of her acquaintances. If you apply the principle set forth by the Supreme Court of California in the Tarasoff v. Regents of the University of California case, Psychologist Holtz: a) has, because of the bystander rule, no duty to earn the foreseeable victims about Rebecca's expressed intention to harm them b) has a duty to exercise reasonable care to protect foreseeable victims of Rebecca's violence c) is in a special relationship with patients, and this relationship creates a privilege of confidentiality between the communicants d) will be held to a strict duty of care and will be held liable for any victim's injuries if Holtz failed to warn a them of Rebecca's potential violence toward them

B

Randi, a resident of Oregon, was involved in a auto accident while in Idaho. The other party lives in Wyoming. Randi wishes to recover the $28,000 cost to repair her car. The most appropriate court for her to file her lawsuit is in a: a) federal court in Idaho b) state court in Idaho c) federal court in Wyoming d) federal court in Oregon

B

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for damages. Neal will be able to recover: a) the amount in the liquidated damages clause b) the difference between Solomon's contract price and the amount. paid by Renny c) Solomon's contract price d) an amount which depends on whether Solomon intentionally breached because he found cheaper socks somewhere else

B

TECO Coal Corporation is interested in the inspections that the U.S. Bureau of Mines has conducted over the past year. To secure this information, TECO should: a) issue a subpoena duces tecum b) make a Freedom of Information Act request c) make a de novo request d) assert the substantial evidence rule

B

The Miranda warning insures that the criminal suspects understand their constitutional rights relating to: a) search and seizure b) self incrimination c) double jeopardy d) having a jury trial

B

The criminal penalties under RICO include all EXCEPT: a) imprisonment b) capital punishment c) confiscation of property acquired through the criminal activity d) fines

B

The primary source of federal power to regulate the business is the: a) Supremacy clause b) Commerce clause c) Contract clause d) Privilege and Immunities clause

B

The remedy of reformation a) applies only when money damages are inadequate b) can be used to correct mistakes in the original contract c) is available if fraud is involved d) is a commonly used remedy

B

When a contract falls within the statute of frauds but is not reduced to a writing, the contract is: a) illegal b) unenforceable c) void d) voidable

B

When the Food and Drug Administration prohibits a certain drug from being marketed in the United States, this is: a) private law b) an administrative regulation c) legal negativism d) an executive order

B

Which of the following events would probably excuse performance of a contract based on commercial impracticability? a) the price of a raw material increases slightly so that the contract will not be as. profitable b) an unforeseeable trade embargo causes prices to triple c) the promisor of personal services dies d) the subject matter of the contract is destroyed

B

Which of the following is an example of an exculpatory clause? a) creditor charges 38% interest on a loan b) seller is not responsible for property damage regardless of the cause of the injury c) buyer agrees to pay any costs of litigation d) employee agrees to never work for a competing company

B

Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job? a) the costs of psychological counseling b) the costs of mailing resumes to prospective employers c) the costs of a new wardrobe for future interviews d) the costs of cosmetic surgery

B

Which of the following played a role in the creation of the US government by solving the problem of federalism a) the Visigoths b) the Iroquois Native Americans c) Confucius d) Alexis de Tocqueville

B

Which of the following statement, if made by a seller who knows the statement to be untruthful, would not be misrepresentation of material fact resulting in a cause of action for fraud? a) "this horse is only 6 years old" b) "there is no better car in the world" c) "the tires have less than 5,000 miles on them" d) "this car gets 28 miles per gallon"

B

Which of the following statements is correct? a) Violent street crime results in a greater monetary loss to society than white-collar crime b) White-Collar crime results in a greater monetary loss to society than violent street crime c) Studies are not able to calculate the estimated value of white-collar crime since most white-collar crime is never publicly disclosed d) Studies are not able to accurately calculate the estimated value of either violent street crime or white-collar crime

B

the main difference between the UCC requirements for a writing for a contract for the sale of goods and the common law is that the: a) UCC requires only the signature of both parties b) UCC does not require all the teams of the agreement to be in writing c) common law requires only an indication that the parties reached an agreement d) common law requires only the signature of the defendant and the quantity of goods being sold

B

Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the office one night, Adam, wearing a mask stepped out from behind some bushes. He pointed a handgun made out of licorice at her and demanded her purse. He then pushed the candy gun to her heard and told if she told anybody he'd kill her. Linda was very scared during the whole incident. She did not think it was very funny when Adam pulled the mask off and took a bite out of the gun as he gave her purse back. Which statement is correct? a) Adam committed an assault but not a battery b) Adam committed a battery but not an assault c) Adam committed an assault and a battery d) Adam committed neither an assault nor a battery since he used a candy gun and was only playing a joke on Linda

C

An example of the type of relationship required to find undue influence would be: a) a salesperson-purchaser relationship b) a bartender-customer relationship c) a doctor-patient relationship d) a neighbor-neighbor relationship

C

An inmate in a state prison claims his United States constitutional rights prohibiting cruel and unusual punishment are bring violated by the state correctional facility. This case: a) may not be decided by a federal court since it involves a state facility b) must be decided by the state court where the inmate established residency before going to prison c) is a federal question case over which the federal courts have jurisdiction d) cannot be heard, as prisoners lose the right to sue

C

As set forth in the Restatement Second of Contracts, which of the following duties are imposed on the parties in the performance and enforcement of a contract? a) perfect performance; honesty b) strict performance; team work c) good faith; fair dealing d) negotiation; arbitration

C

Bert had his driver's license suspended by the state department of transportation. He believes his constitutional due process rights were violated by the administrative agency. Can he immediately file a court action to have agency's actions reviewed? a) Yes. A court has the jurisdiction to immediately review an agency's alleged unconstitutional action b) Yes. Bert must specifically allege his constitutional rights have been violated and file a court action in federal court - not a state court c) No. Bert but first utilize the administrative agency's procedures to review the suspension before he seeks judicial review by a court d) No. A court of law does not have jurisdiction to review an administrative agency's actions

C

If Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably a) set aside the agreement as being unfair b) set aside the agreement because the consideration is inadequate c) not set aside the agreement based on thee adequacy of the consideration d) not set aside the agreement because of the UCC

C

If a condition does not occur: a) public policy will require only substantial performance by the party for whom the condition failed. b) the requirement of good faith will be eliminated. c) one party will probably be discharged without performance being required. d) it is considered an anticipatory breach.

C

If a court orders rescission and restitution of a contract under which Nala sold a baseball card to Shirley in exchange for $450: a) Shirley must return the baseball card b) Nala must return the $450 c) both a and b d) neither a or b

C

In the historic case of Homer v. Sidway, the nephew: a) lost, as there was no consideration b) lost, as thee uncle was dead c) won, as there was consideration d) won, as there was a completed gift

C

Jack mails an offer to Joan that states, "I offer to sell you my car for $2000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result? a) Jack has a deal. His offer was intended and contains definite terms b) Jack has a deal. Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer c) Joan is not bound. Generally an offeree must say or do something to accept an offer d) Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail

C

Jeff picks up a piece of metal pipe and swings it around, hitting Gary across the back of the head. What factor would be required for Jeff's employer to be liable to Gary? a) Jeff was at the factory when it happened b) Jeff voluntarily hit Gary c) Jeff was moving the pipe as part of his work responsibilities when he hit Gary d) Gary cannot be an employee of the same company as Jeff

C

Larry purchased a Leisure Lawnmower because the company salesperson intentionally misled him by assuring him that the mower was self-propelled, had a mulching feature, and had a five-year unlimited manufacturer's warranty. When Fred finds out that his new Leisure Lawnmower is not self-propelled, does not mulch, and has a 90-day warranty, he may successfully sue for: a) reformation of the contract only b) restitution only c) restitution and possibly punitive damages d) compensatory damages only

C

Larsen entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrester answered all of Larson's questions, Forrester and Larson agreed to a sale. As Larson was leaving to get the money to pay for the car, Forrester told Larson that Robert Redford formerly owned the car. Larson later learned that Robert Redford had never wound the car. If Larson sees to rescind thee deal based on Forrester's statement. Larson will: a) win because he relied on the misrepresentation b) win because there was a misrepresentation of a material fact c) lose because he will not be a able to prove reliance on the misrepresentation d) lose because Forrester made a unilateral mistake

C

Marty, a 16-year-old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest are paid in full. Which of the following is correct? a) the contract is void and Marty has no obligation b) the contract is now voidable by Cream-of-the-Crop Cycles c) Marty has ratified the contract and is now bound by its terms d) Marty has ratified the contract but can still get a return of the payments made while he was a minor

C

Mary owns $3,800 on her credit card. She sends the credit card company a check for $800 with the notation "payment in full" on the check. If the credit card issuer cashes the check: a) Mary's balance will automatically be paid in full if the $3,800 amount was a liquidates debt b) Mary's balance will automatically be paid in full regardless of whether the amount of $3,800 was liquidated or unliquidated c) the check may be subject to a UCC exception to the general rule for accord and satisfaction cases involving checks d) Mary's balance will automatically be paid in full if the $3,800 amount was an unliquidated debt

C

Negligence concerns harm that: a) is unforeseeable b) arises intentionally c) arises by accident d) is always substantial

C

On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell a $10,000 in restaurant supplies. On January 18, Hylavian mailed a letter to Quastrar accepting the offer. Quastrar received an acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian a) was not formed because the revocation was effective before the acceptance was sent b) was not formed because the revocation was effective before the acceptance was received c) was formed on January 18 d) was from on January 20

C

One morning, Miles placed a thumbtack on the chair of the office manager where he worked. He had no quarrel with the office manager, but thought this would be funny. Two days after sitting on the tack, the office manager was hospitalized with an infection caused by the tack. Which of the following is correct? a) Miles actions were negligent b) No tort has been committed c) Miles committed an intentional tort d) Miles is strictly liable

C

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true? a) Police Officer Paul is not entitled to the reward because past consideration is never valid consideration b) Police Officer Paul is entitled to the reward because he puts his life on the line everyday c) Police Officer Paul is not entitled to the reward because he was under a pre-existing duty to make the arrest d) Police Officer Paul is not entitled to the reward but may have an argument under promissory estoppel

C

Public policy means the law that comes from the: a) state legislature b) executive branch of the government c) courts that decide what would have a negative impact on society d) constitution

C

Ralph is a professional football player. He signs a valid contract with the Jets. Later, the Giants offer him more money, so he signs a contract with them. If the Jets sue Ralph, the most likely result would be? a) The court will order Ralph to play with the Jets b) The court will order Ralph to play with the Jets, but Ralph is entitled to be paid he amount he negotiated under the Giants contract c) The court with enjoin Ralph from paying with any team other than the Jets d) The court will order Ralph to pay compensatory damages in the amount of the difference between the 2 contracts

C

Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Renita should: a) ignore the confirmation b) call the seller and object to the confirmation as soon as she gets back from her two-week vacation c) object to the confirmation in writing within 10 days d) return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods

C

Seth told the salesperson at Outdoor Times that he wanted the sleeping bag that was advertised in the Sunday paper; one that would keep him comfortable if the temperature drops to 10 degrees Fahrenheit. The salesperson told Seth they were sold out of that bag, but there were two other styles that would meet his needs and were the same price. Seth insisted he wanted the advertised bag and threatened to sue for breach of contract. Which is true? a) Outdoor Times is guilty of "bait and swap" b) Seth will prevail in his case, as Outdoor Times is responsible for having sufficient stock of advertised items c) Seth will not prevail, as the advertisement was simply an invitation to negotiate d) Outdoor Times must provide Seth with a raincheck, ensuring he can buy the same bag at the sales price at a later date

C

Statutes of limitations: a) define how much money the injured party can sue for under a breach of contract claim. b) define whether there has been substantial performance of a contract or a material breach. c) limit the time in which an injured party may sue. d) only apply to the sale of goods. There is no statute of limitations on a service contract.

C

Suppose that Lenny Lawyer enters into an agreement with Cindy Client that his fee will be a percentage of the recovery Lenny obtains for Cindy in her pending divorce. State law makes such a contingency fee arrangement illegal in divorce actions. What will be the probable outcome if Lenny attempts to enforce the agreement? a) The contract will be valid. Cindy would nit have been able to afford an attorney otherwise and therefore Lenny was doing a public service b) The contract will be voidable at Cindy's option c) The contract will be void as violating a statute. Lenny will not be able to recover anything d) the contract will be unenforceable if Lenny did not get the agreement in writing

C

The Consumer Product Safety Commission (CPSC) is an independent federal administrative agency. Which statement is correct about the chairperson? a) The chairperson serves at the whim of the President and can be fired at any time b) The chairperson can only be fired by the President for good cause c) The chairperson cannot be fired by the President since the CPSC is an independent agency d) The chairperson has a lifetime appointment and cannot be fired

C

The Minnesota legislature passed a law requiring that employers allow each employee adequate time within each four consecutive hours of work to utilize the nearest convenient restroom. This law is a) an executive order b) an ordinance c) a statue d) a stare decisis

C

The Theft of Honest Services statute: a) is violated if an employee draws sick leave pay on a day when she is not sick b) applies only to government officials c) prohibits both public and private employees from taking bribes or kickbacks d) was not passed into law due to a presidential veto

C

The United States v. Lopez case demonstrates which of the following? a) there are no limitations on the federal government's power pursuant to the Interstate Commerce Clause b) the extensive power of the states to regulate interstate commerce c) limitations on federal power d) gun ownership cannot be regulated

C

The concept than an injured party may recover consequential damages only if the breaching party should have foreseen them was established in: a) Bi-Economy Market, Inc. v. Harleysville Ins. Co of New York b) Putnam Construction & Realty Co. v. Byrd c) Hadley v. Baxendale d) Toscano v. Greene Music

C

The distinction between a condition precedent and a condition subsequent a) is important because it determines whether the burden of proof is beyond a reasonable doubt or preponderance of the evidence b) seldom arises in insurance cases c) determines who has the burden of proof d) is important because it determines whether the condition must be express of whether is can be implied

C

Under a contract for the sale of land, the statute of frauds: a) does not apply if the purchase price of the land is less than $500 b) requires that the entire agreement be in one single document c) requires the defendant to sign the agreement d) does not apply if the total price of the land is to be paid in less than one year

C

Under the Uniform Commercial Code, an agreement modifying a contract: a) always requires consideration b) requires consideration only when the sale of goods is involved c) may not require consideration d) requires consideration only when one of the parties is incompetent

C

West Virginia passed a statute regulating working conditions in its mines. If the statute is challenged in court on substantive due process grounds: a) it would be presumed invalid and would be struck down since it involves a fundamental right to work b) it would be presumed invalid but would be struck down only if it is necessary to achieve a compelling government interest c) it would be presumed valid since it regulates economic or social conditions d) it carries no presumptions, but must be evaluated based on the procedures involved

C

Which of the following would be an example of a civil lawsuit? a) George is being prosecuted for bank fraud b) The government has initiated an action against Jeff for operating a motor vehicle under the influence of alcohol c) Gretta hit Rita in a bar during happy hour. Rita is now suing her for injuries d) The district attorney is bringing Ali to court for violating the city's keg ordinance

C

Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment; one-half payable in 30 days at the time of closing when the title will be transferred. The buyer, Willis, is to have possession immediately. Willis pays Leslie $25,000, takes possession of the land, and starts building a house. At the time of closing, Willis has made a substantial beginning on the house. However, Leslie refuses to transfer the title, claiming the oral contract is not enforceable. This contract is: a) enforceable, because the statute of frauds does not apply to this interest in land b) unenforceable, because there is no writing signed by Leslie c) enforceable, because Willis has partially performed the oral contract and made improvements on the land d) unenforceable, because the parol evidence rule applies

C

Zero, Inc. agreed to build Millie a storage building for $8,000. After beginning the project, Zero realized that it could not complete the job and make a profit. Zero demanded $9,500 to complete the building. Millie agreed to pay the $9,500. When the project was complete, Millie tendered $8,000 to Zero for the job. If Zero sues Millie for the remaining $1,500: a) Zero will win because there was consideration for the additional $1,500 b) Zero will win because Millie had a pre-existing duty to pay any additional amounts c) Zero will lose because there was no legal consideration to support the additional $1,500 d) Zero will lose because the UCC does not require consideration to modify an existing contract

C

If Jane persuades Linda to buy her horse by telling Linda that the horse runs "like the wind," then Jane's statement is: a) fraud b) misrepresentation c) a unilateral mistake d) puffery

D

Virginia borrowed money from G & L Lending at 35% interest per year. The state maximum interest rate is 20% per year. Virginia defaulted on the loan. What amount can G& L collect from Virginia? a) G & L will be able to collect the principal plus 20% interest per year b) G & L will be able to collect the principal but not any interest c) G & L will not be able to collect either the principal or interest d) Any one of the above may be correct. The answer depends on the particular state law

D

The US Supreme Court was asked to decide whether same-sex sexual harassment is a violation of Title VII of the Civil Rights Act. This law forbids discrimination in employment in the basis of sex. In interpreting statues, the court may use which of the following: a). the plain meaning rule b) legislative history c) public policy d) all of the above

D

The doctrine of preemption is based on the Constitution's: a) Commerce Clause b) Due Process Clause c) Equal Protection Clause d) Supremacy Clause

D

The government itself prosecutes the wrongdoer in a case involving behavior so threatening that society outlaws it altogether. This kind of case involves a) procedural law b) private law c) civil law d) criminal law

D

The intent of the offeror to extend an offer to the offer is generally determined by reference to: a) the beliefs of the offeror b) the subjective intention of the offeror c) the assumptions of the offeror d) the words and conduct of the offeror

D

Tony fell and injured himself in a Mega Toy Store. Mega Toy Store is incorporated in Delaware. Tony is a resident of Nevada but was injured in a Mega Toy Store located in Arizona. Mega Toy does not do business in Nevada. Tony's damages exceed $100,000. If Tony decides to sue Mega Toy Store: a) he may file the lawsuit in an Arizona state court b) he may file the lawsuit in a federal district court in Arizona c) he mist file the lawsuit in a federal district court because the federal courts would have diversity jurisdiction in this case d) either a or b

D

A subpoena duces tecum is different from an ordinary subpoena in that a subpoena deuces tecum: a) can only be given to an expert to require a personal appearance before a court or administrative hearing b) is binding on a person even if it is mailed to the person rather than handed to her by a process server c) allows for privileged or confidential information to be turned over the a court or administrative agency d) requires the person to bring specified documents to the court or administrative building

D

A successful insanity defense: a) results in the defendant's being back on the streets within a much shorter time than if the defendant were convicted and sent back to prison b) is used in about 10% of all criminal cases c) is a favorite outcome for juries since they ordinarily dislike convicting felons and sending them to prison d) results in a "not guilty" verdict, even if the prosecution proves the defendant committed the criminal act

D

Adam moved into an apartment complex. The rules of the complex prohibit unmarried men and women from living together in the same apartment. When Adam's friend, Diane, moved into the apartment he was served with eviction papers. Adam claims the apartment complex is violating his constitutional rights since it allows married couples to live together. Is Adam right? a) Yes. His equal protection rights have been violated b) No. His fundamental right of cohabitation has not been violated c) Yes. He and Diane are being treated differently than married couples d) No. Constitutional protections do not extend to privately owned apartment complexes

D

After an appellate courts hears a case, it may: a) affirm the decision b) reverse the decision c) modify the decision d) all the above are correct

D

Approximately how much merchandise is stolen from United States retail stores every year? a) 10 million b) 50 million c) 10 billion d) 25 billion

D

E-mation, Inc hires Marvin to steal trade secrets from one of its competitors for $10,000. Marvin demands half of the money up front. E-mation pays Marvin $5000 but Marvin decides not to pursue theft of the trade secrets. E-mation sues Marvin for the return of the $5000. What will the court do with this contract? a) the court will order Marvin to return the $5000 b) the court will order Marvin to return the $5000 with interest c) the court will order Marvin to obtain the trade secrets d) the court will not do anything to help E-mation get its money back

D

E-trex, Inc. wanted Prince, a professional basketball player, to endorse its products. Prince, however, was not interested. E-trex was not deterred and hired a person who looked and sounded liked Prince for its commercials. a) E-trex has defamed Prince b) E-trex has interfered with a contract c) E-trex has interfered a prospective change d) E-trex's conduct raises the issue of commercial exploitation

D

For the purpose of the statute of frauds, an interest in land includes: a) a house b) a real estate mortgage c) an easement d) all of the above

D

Generally, a seller has no duty to disclose facts. However, there is a duty to disclose information or facts if the disclosure is necessary to: a) correct a previous assertion b) correct a basic mistaken assumption on which the other party is relying c) report a latent deficit that the buyer would not be expected to discover d) all of the above are true

D

Generally, constitutional protections do NOT apply to: a) acts of the federal government b) acts of state government c) acts of administrative agencies d) acts of privately owned businesses

D

Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities. The festivities were unexpectedly cancelled because of concern over a terrorist attack. Harry is: a) obligated to pay the $100 b) not obligated to pay under the commercial impracticability doctrine c) not obligated to pay under the force majeure doctrine d) not obligated to pay under the frustration of purpose doctrine

D

In which case is the offer still valid at the time the acceptance is made? a) Hal offered to sell a book to Sid. Hal died, and Sid sent an acceptance two days later b) By-Waste Co. telephones XXX Co. offering to dispose XXX Co.'s chemical waste by a particular method. XXX says it has another way to dispose of the waste. Then XXX finds out the method it planned to use violates environmental protection statutes, so it sends a letter of acceptance to By-Waste c) Ray offers to sell his AT&T stock for a particular price by May 1. On May 2, Kathy agrees to buy the stock d) In a face-to-face transaction, Pat offers to sell Mike his stereo and Mike accepts e) All of the above

D

Jackie hires Charles to lay new carpet in her bedroom. Charles does such a bad job, that the only way to fix the carpet is to start over and relay the carpet. Which of the following best describes this situation? a) This is substantial performance. Jackie must still pay something to Charles b) This is a material breach. Jackie must still pay something to Charles c) This is a substantial performance. Jackie owns nothing to Charles d) This is a material breach. Jackie owns nothing to Charles

D

Jamie is building a house on her lot. She invites Earnie of Earnie's Excavation to bid on the excavation job. Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky. Based on the assumption that the soil in Jamie's lot will be similar, he and Jamie agree that the excavation will cost $3,000. When Earnie starts digging, he learns there is solid rock under Jamie's lot. Earnie says it will cost an extra $2,500 for the excavation work. Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000. If Earnie sues, the most likely result would be a) Jamie wins, as Earnie was under a preexisting duty to dug the basement b) Earnie wins as this modification is governed by the UCC and consideration is not required to enforce a modification of the agreement c) Jamie wins as Earnie was not acting in good faith an just wanted to put Jamie in a situation where she didn't have a choice but to agree with more money d) Earnie wins, as the modification was due to unforeseen difficulties

D

Jim told his manager, Lana, that a co-worker, Diane, had been in prison for theft. Lana checked into the matter and, when she learned that Diane had served time in prison for theft, fired her. a) Jim is liable to Diane for defamation b) Jim is liable to Diane for defamation unless he can show a legitimate reason for having to tell Lana about Diane's prison history c) Jim is liable to Diane for defamation only if she is a public figure d) Jim is not liable to Diane for defamation

D

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100 bucks!" John has: a) made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100 b) made a firm offer and will be bound by his offer for a reasonable period of time c) made an acceptance to the first person who can product $100 d) not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer

D

Linda agrees to buy Missy's Greyhound race dog for $2,000. Linda is to deliver the money and take possession of the dog the next morning. That night, running his best race ever, the dog runs away from Missy, never to be seen again. a) Linda must give $2000 for the dog, but only if the dog was insured b) Linda must give $2000 for the dog, but only if Missy can find a replacement dog within a reasonable time c) Linda must give $2000 for the dog d) None of the above; the contract duties are discharged

D

Peter, a minor, purchased a car from ACME Motors. Using a fake ID, he misrepresented his age to be 18. The contract is fully executed. Which of the following is correct? a) Peter cannot disaffirm the contract because a car is a necessary b) Peter cannot disaffirm the contract because of this misrepresentation c) Peter can disaffirm the contract, because a minor must be saved from his own poor judgement including his lie d) either b or c may be applicable depending on the law of jurisdiction in which the contract was formed

D

Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he was intending to put onto Marsha's pickup truck. The exploding tire injured Marsha and frightened a neighborhood dog, which ran down the street and knocked Phillip down, injuring his knee. Phillip sued the mechanic. In applying the Palsgraf v. Long Island Railroad Co. decision to this case, Phillip would: a) win because the mechanic was negligent in over inflating the tire, which led to Phillip's injury b) win baed on negligence per se c) lose because the court would apply the doctrine of res ipsa loquiter d) lose because, although the mechanic's conduct was negligent toward Marsha, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no to duty to him

D

Reformation is: a) a type of restitution b) a form of quantum meruit. c) a form of quasi-contract. d) uncommon.

D

Robin and Bellman, both merchants, orally agree to a contract for the sale of $5000 of accessories. Bellman, the buyer, sends to Robin, the seller, a written confirmation of the sale, which is sufficient against Bellman under the statute of frauds and which Bellman signs. Robin fails to perform the contract and does not ship out the goods. Bellman sues. This contract is: a) unenforceable, because Robin did not sign any contract b) unenforceable, because Bellman did not pay for the goods c) enforceable, because Bellman sent the written confirmation of the sale, thereby partially performing the contract d) enforceable even without Robin's signature because both parties are merchants

D

Roxanne was injured when she fell in a hole while walking across her landlord's parking lot. She and her lawyer hope they can settle the claim. Which of the following statements about settlements is correct? a) A case can be settled provided it has not been filed with the court b) A case can be settled provided. test discovery has not commenced c) A case can be settled provided the jury has not heard any testimony d) A case can be settled at any time

D

The Kelsoe v. International Wood Products, Inc. case was an example of: a) promissory estoppel; b) partial performance c) illusory promises d) lack of consideration

D

The UCC deals with unconscionability in a contract by providing that a court may: a) refuse to enforce the contract b) enforce the remainder of the contract without the unconscionable clause c) limit the application of any unconscionable clause as to avoid any unconscionable result d) all of the above

D

Which of the following is most likely to constitute fraud? a) a false prediction that a painting's value will rise b) a false statement that a used car is "the best deal in town" c) a false statement that a 30,000 car attracts members of the opposite sex d) Silence as to a toxic waste problem on real property that the buyer would not reasonably find

D

Disputants Martin and Daulton have hired Thurman to mediate their disagreement. Although Martin and Daulton must accept whatever decision Thurman makes, the mediation has the advantage of keeping Martin and Daulton out of court.

False

A defendant who engages in setting off fireworks at a fully licensed Fourth of July show is liable for harm that results from the activity only if the plaintiff proves the harm was foreseeable

False

A gambling contract is legal unless it is specifically prohibited by state statute.

False

A party to a contract has a duty to investigate the other party's factual statements

False

Abdulla hired Granite Construction to build an addition onto his home. Granite Construction dug the foundation but then abandoned the project. Granite Construction is entitled to receive the full contract price minus the value of the defects.

False

Ahmi was a witness in a lawsuit. When asked why he fired Rana, Ahmi replied, "Rana was fired for willful misconduct." Indeed, Rana had not engaged in any misconduct. Rana will be able to successfully sue Ahmi for defamation based on what Ahmi said in court.

False

Alice signs a contract with Bob to buy Bob's house for $150,000, with the clause, "if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years." Assume that Alice tries but is unable to obtain the described loan, and therefore refuses to proceed with the purchase. Alice is in breach of the contract.

False

An illusory promise is valid consideration

False

Any contract involving a sale of goods of $100 or more must be in writing.

False

April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on all six contracts to sell her computer for $500.

False

Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in recycled paper cartons. A shortage of paper makes paper cartons much more expensive, so Jessie uses styrofoam cartons and ships the eggs. Lester is entitled to cancel the contract based on this deviation of terms in the contract.

False

Because of the concept of stare decisis, the U. S. Supreme Court, in interpreting a statute in 2009, will necessarily interpret certain statutory language in the same way as the U. S. Supreme Court interpreted the same statutory language in 1971.

False

Billy owes a liquidated debt of $3000 to Rayna, his personal weight trainer. Billy sends Rayna a check for $300 on which he has marked, "Payment in Full." If Rayna cashes the check she will not be able to successfully sue Billy for the remainder of the debt.

False

Candy, Inc. signed an agreement with Sweet Plantation. Under the contract, Candy, Inc. agreed to purchase all the sugar cane Sweet Plantation grew during the coming season. This contract will be unenforceable due to its vagueness.

False

Common law, like statutory law, is prospective

False

Concurrent conditions arise when there is both a condition precedent and a condition subsequent.

False

Congress can create a statue on any topic at all

False

Contracts in which one party agrees to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.

False

Courts enforce all promises in the interests of simple morality.

False

Courts normally require consideration to be approximately equal on both sides of the bargain.

False

Cynthia and Brian were friends. Brian was a dare devil. Because of his antics, Cynthia thought that Brian wasn't long for this life. Cynthia purchased a life insurance policy on Brian's life. Subsequently, Brian was killed in a car accident. Since Cynthia and Brian were friends, Cynthia had an insurable interest in his life and will be entitled to the insurance proceeds.

False

Denton agreed to build a cedar deck for the Thrashers for $7,000. After he began the work, the Thrashers asked him to add cedar flower boxes at one side. Denton replied he would, but it would cost an additional $600. The Thrashers would not be obligated to pay the additional sum because the original agreement already obligated Denton to complete the deck for $7,000.

False

Under Section 230 of the Communications Decency Act, Internet service providers are held responsible for defamatory postings by their members or users.

False

Irving is shopping at the local Computers R Us store and agrees to buy a powerful computer for his home "on the condition of personal satisfaction." If Irving takes the computer back to the store for no reason other than that he doesn't like the computer, then the seller will have no choice but to accept the computer and terminate the contract.

False

John was a licensed physician in Michigan. When he retired to Florida, he started providing medical services to the people in his condo, relying on his Michigan license. Isaac, John's next-door neighbor, owed John $2000 for medical services. John will be able to enforce the contract he made with Isaac.

False

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss

False

Marvin contracts with House Painters R Us to paint the interior of his house lemon yellow throughout. The total contract price is $7,000. House Painters R Us's anticipated profit on the job is $4500. If Marvin breaches the contract before House Painters R Us has begun work on the job and has not incurred any expenses, then its damages will be $7000.

False

Most contracts are discharged by mutual agreement of the parties.

False

Most state legislatures have passed legislation to reimburse crime victims directly through the state government.

False

Nella offers to sell her crop of strawberries, which have just been picked, to Morgan's Market. Since she does not specify a time limit for acceptance, Morgan's can accept the offer the following week, as long as Nella has not revoked it.

False

Nominal damages are awarded in contract cases in which a damage amount was named in the contract.

False

Obscene speech is protected by the First Amendment.

False

On Monday, Mick put an offer in the mail to Sheri to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning.

False

Palsgraf v. Long Island Railroad Co. addressed the issue of furnishing alcohol to minors

False

Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash, payable on April 30, 2012." This writing is sufficient under the statute of frauds to make the contract enforceable.

False

Primary methods of alternative dispute resolution include litigation and mediation.

False

Pushy Pat, a persuasive salesman, talked Naive Nancy into purchasing something she didn't really need or want. Naive Nancy may rescind the contract because of undue influence.

False

Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee. The coffee was to be delivered on September 1. Since the contract included a date for performance, time is of the essence and the delivery date is strictly enforceable.

False

Ramona, age 42, orally agreed to work for Brahma, Inc. for the rest of her life for $50,000 per year. This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

False

Rudolph overhears Macy's plans to go skydiving over spring break. Not really knowing Macy, but figuring it's worth a chance, Rudolph rushes out and buys an insurance policy for $100,000 on Macy's life. Macy does in fact meet her demise jumping out of the airplane. Rudolph can collect the $100,000.

False

Section 2-306 of the UCC expressly disallows output contracts in the sale of goods

False

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

False

Taking a service without paying for it is a common type of larceny.

False

Tess, a tenant, moves from her apartment in breach of the lease agreement. The landlord, Lenny, may not attempt to rent the apartment to rent the apartment until the date of the lease expiration, and so has no recourse to minimize damages

False

The "takings clause" prevents the government from taking private poverty for any reason

False

The First Amendment to the US Constitution explicitly protests citizen from abridgment of the right of free speech by any level of government

False

The Framers of our Constitution, a true cross section of the population at the time, created the Constitution by amending the Articles of Confederation, which had been the governing document of the colonists

False

The Occupational Safety and Health Administration (OSHA) has proposed rules aimed at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. ATC, Inc. should challenge the proposed rules in court to prevent them from becoming final rules

False

The Sixth Amendment declares that a person cannot be tried twice for the same criminal offense

False

The UCC requires consideration for agreements modifying contracts for the sale of goods

False

The age of majority in all states is 21

False

The doctrine of contributory negligence is followed in most states.

False

The power to create laws regulating international commerce is given jointly to Congress and the states under the US Constitution

False

There is only one valid reason to punish criminals - deterrence

False

Vick Value Company makes values for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, "To our valued customers." Honest Hank Hardware orders a variety of values at the prices quoted on the price list. Vick Value must honor the prices on the list and sell the valves to Honest Hank.

False

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000. "Olga replies, "I accept," and hands him $2,000. A contract exists.

False

When Randy accepted a job with Buren Construction, Randy signed the following agreement, "Upon termination of my employment with Buren Construction, I agree never to work for another employer as an electrician." If Randy resigns from Buren Construction, this agreement would be upheld under the theory of freedom of contract.

False

When measured in dollars, street crime costs society more than twice as much as white-collar crime.

False

Whittle sent an order over the Internet for a $1,200 garage door. His name keyed onto the order will only be effective as a signature sufficient to create a "writing" "signed by the party against whom enforcement is sought" if he follows up with a signature on paper.

False

Wilfred was driving too fast for the icy road conditions and hit Sally's car. Sally can sue Wilfred in criminal court

False

Working out some frustrations after a bad game, Jessica angrily hits a baseball and then sees it is flying toward the umpire. She yells, "Watch out!" The umpire ducks and the ball misses him. Since there was no physical contact, no assault or battery occurred.

False

The UCC recognizes commercial impracticability as a ground for discharge of a contract

True

The Uniform Commercial Code provides that, under circumstances, a merchant has NOT signed it

True

The legal right to sue for a breach of contract is subject to a statute of limitations

True

The majority of work done by legislative bodies is performed in committees.

True

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts, but now the British government has repealed the writing requirement for most contracts.

True

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he may void the contract.

True

Under the UCC, the buyer is entitled to consequential damages if the seller could have reasonably foreseen them.

True

Under the statute of frauds, the writing must: be signed by the defendant; and must state with reasonable certainty the name of each party, the subject matter of the agreement, and all of the essential terms and promises.

True

You have placed an antique sofa up for auction and the auctioneer has not made any special announcements about the sale. You can withdraw the sofa at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.

True

contract recession can sometimes be based upon a unilateral mistake

True

Ernest operates an ice cream stand during the months of May, June, July, and August. Ernest's ice cream machine is broken and needs a new part to run. He contracts to have the part shipped to him by special carrier. Ernest emphasizes that the part needs to be delivered by April 25 and the carrier agrees, knowing that Ernest intends to open his stand May 1. If the shipper fails to deliver the part on April 25, Ernest will be able to recover consequential damages caused by the delay.

True

Damages must be estimated with reasonable certainty.

True

Dewayne sold a space heater to Vivian, telling her it would heat a 200-square-foot area, even though he knew it would effectively heat only about one third of that space. Dewayne is liable for the intentional tort of fraud.

True

Due to dram shop laws, commercial establishments that serve alcohol bear some liability for injuries caused by their intoxicated patrons.

True

Entrapment can be a valid defense to a criminal act

True

Even if a statute's words have ordinary, everyday significance, the court will look at the legislative history of the law and public policy in order to interpret the statute.

True

From tax returns, the Internal Revenue Service (IRS) has information concerning Elizabeth Jones. Generally, the IRS may not divulge this information to the Federal Bureau of Investigation unless Elizabeth has given written consent.

True

Generally, mandatory arbitration provisions in a contract are valid.

True

A court may, at times, discharge a party who has not performed.

True

A crime is a violation of statutory law

True

A party injured by fraud generally has the choice of suing for damages or rescinding the contract

True

A rule that establishes maximum length of work shifts for air traffic controllers is an example of an administrative regulation.

True

A salesclerk at Braybon's Department Store observed a customer remove a ring from a display case and put it in her purse. In most states, Braybon's will be able to detain the customer for suspicion of shoplifting

True

A summons is a paper ordering a defendant to appear in court at a certain time

True

A tort is a violation of a duty imposed by the civil law.

True

According to the UCC, one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to grant an appropriate remedy.

True

Actual hearings are required in formal administrative agency rulemaking.

True

Actus reus means the "guilty act" and is one element the prosecution must prove in a criminal case

True

After being served with a summons and a copy of the complaint, a defendant usually files a pleading known as an answer, briefly replying to each allegation in the complaint.

True

After her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.

True

Agreeing not to open competing business could be consideration

True

Alice offers to sell her car to Barry for $500, and Barry accepts. Alice's car has a market value of $1,000 but this fact is unknown to Alice. The contract is enforceable.

True

All states allow the remedy of rescinding a contract for the sale of goods while still allowing the remedy of suing for damages.

True

Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral promise. His promise must be in writing to be enforceable.

True

An agreement may violate public policy even if the agreement does not require a party to commit a crime, tort, or violate a statute.

True

An appeals court can rule that a trial court's ultimate ruling was correct even if the trial court made some minor errors during the trial.

True

An economic study has concluded that dram shop laws are effective in reducing underage drinking, over-intoxicated drinkers and bar employee drunkeness.

True

Banner enters into a contract with Sylvia to buy her house for $150,000. Sylvia decides later not to sell because she is so emotionally attached to the house. Banner insists that he is entitled to the house. Banner can successfully sue for specific performance.

True

Boris sky dives out of a plane and gets hung up in a tree, hopelessly suspended and swinging precariously in his parachute from the branches of the tree. Natasha sees that he is in trouble and comes to his rescue. Once Boris is safely on the ground, he gratefully promises to give Natasha half of his life savings account. When he changes his mind, Natasha will probably be unsuccessful in enforcing his promise.

True

Bry, Inc. and Gangl Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract. Bry delivered the sweaters and Gangl accepted and paid for them. Since the contract is fully executed, it makes no difference that it was oral.

True

Carswell, a contractor, enters into a contract with Helen, a homeowner, to remodel her bathroom. The contract provides a specific completion date. The contract provides that if Carswell does not have the job finished by the date, Helen may deduct $200 per day from the contract price until the job is finished. This is an example of liquidated damages.

True

Congress revised and reauthorized the Patriot Act, but the secret national security letter provisions were later limited by a federal appeals court.

True

Consideration can be a promise or an act.

True

Courts have ruled that negligently retaining a violent employee is a tort.

True

Criminal defendants have the right to a lawyer at all the important stages of the criminal process

True

In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of Regents and found a duty of care to avoid furnishing alcohol to underage consumers. If in 2008 a Flagstaff, Arizona plaintiff brings a lawsuit against an Arizona university's fraternity for providing alcohol to members under the legal drinking age, the Hernandez v. Arizona Board of Regents case will serve as precedent.

True

In Angelo-Saxon society, men were put into groups of ten, known as a "tithing" and were individually held responsible for any injury caused by any member of the group. This is the forerunner of the idea of business partnerships

True

In a civil case, the plaintiff must prove the case beyond a reasonable doubt

True

In order for the government to obtain a criminal conviction, it must prove its case beyond a reasonable doubt.

True

In seeking to determine whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

True

In the case of Panavision Int'l v. Toeppen, the Ninth Circuit Court of Appeals affirmed the district court's decision. This means that the Ninth Circuit approved the district court's decision and upheld the outcome in the case

True

Krista, the Director of Advertising at Trein, Inc., approved a series of magazine advertisements using a close-up photograph of celebrity look-alike models driving a train engine with the slogan, "Get on Board with Trein." Each ad included a signature, meant to look like that celebrity's autograph. Since in most cases, these "autographs" are not legible, this series of ads does not commit any tort.

True

Misleading commercial speech may be outlawed altogether without violating the Constitution.

True

Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. Before construction begins, the local zoning board changes the zoning of the parcel and those adjoining it to residential use only. Monumental's contract with Champion is discharged.

True

Most courts hold that a seller of goods is not entitled to consequential damages.

True

Nunnsky's Retail sent out newspaper inserts advertising wool suits for $50. In fact, the store had only two, out-of-style suits for sale at this price. Their other wool suits started at $175. If Nunnsky's acted in bad faith in its advertising, consumers may have protection through state statutes.

True

Opinion is generally a valid defense in a defamation lawsuit because it is not meant to be a factual statement.

True

Parol evidence refers to anything (other than the written contract itself) that was said, done, or written before or as the parties signed the contract

True

Pastor Tom was employed by the First Church for 40 years. On Pastor Tom's retirement there was no adequate pension plan. Two months after the retirement, a wealthy parishioner, in consideration for Pastor Tom's 40 years of faithful service and for being such a "sweet" man, promised to pay him $500 per month for the rest of his life. This promise probably is not enforceable.

True

Professor Jones accuses Rachel, a senior at a large state university, of cheating on an exam. The Professor claims that Rachel must prove to him that she did not cheat. If she fails to convince him, she will be expelled from college. Rachel is being denied her due process rights.

True

Raul agrees to paint Mike's house for $1,000. Before finishing, Raul states it is too high to finish, and Mike offers to pay $1,200 if Raul finishes. Mike's statement that he will pay $1,200 is unenforceable.

True

Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.

True

Res ipsa loquitur shifts the burden of proof from the plaintiff to the defendant

True

Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials, RWH, from TriColor Textiles. TriColor had just finished monogramming the blankets when Rest Well called and canceled the order. TriColor will be able to enforce the agreement even though there was no writing.

True

Revocation is the withdrawal of an offer by the offeror.

True

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. In a majority of states, Roger may return the stereo and he does not have to pay for the use of the stereo or the damages.

True

Silas asks his friend Shelby to come to his property to go fishing at his pond. If he fails to warn her that the dock has a rotten spot and she falls through and is injured, Silas would be held liable in most states.

True

Software clickwrap and shrink-wrap agreements limiting the manufacturer's maximum responsibility to a refund of thee purchase price even if the software destroys your hard drive have generally been found to be binding against customers

True

Spencer, age 18 and of sound mind, has the legal capacity to contract.

True

The Constitution ensures that the states retain all power not given to the national government.

True

The Federal Trade Commission promulgated Telemarketing Sales Rules regulating the activities of telemarketers. One of the rules prohibits telemarketers from calling a person's residence at any time other than between 8:00 am and 9:00 pm. This legislative rule has the effect of a statute.

True

The Milicic v. Basketball Marketing Company, Inc. case illustrated the proper use of a preliminary injunction

True

The Pines, a small motel in central Georgia, may be subject to federal regulation even though it is not close enough to the state borders to have many guests from other states.

True

Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the US Supreme Court subsequently rules that they statue conflicts with the First Amendment of the US Constitution, the statue is void

true