Final Exam Study Guide

A manufacturer having a restriction on territories in the form of a sole outlet is a perse violation

False

An obligor required to render a performance under a contract can transfer the duty to perform to another person whenever desired

False

Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal

False

The past performance of the parties under a continuing contract is irrelevant in determining what the contract means

False

Under the Sherman Act competitors are permitted to agree not to deal with certain buyers

False

Under the _______ Amendment, agency officials have the right to conduct________ with a warrant, but a(n) ________ inspection is permitted when violations are dangerous to public health and safety

Fourth, inspections, warrantless

_________, very common in international business, is the granting of permission to use a trademark, trade name, or copyright under specified conditions.

Franchising

Which is NOT a correct statement concerning a liquidated damages clause?

If the clause is enforced, the injured party has a choice between compensatory damages or liquidated damages.

Voir dire examination is used in connection with

Jury selection

When Bart proposed to Linda, . Pressing her for a favorable response, Bart telephoned Linda and promised her $100,000 if she would marry him. Linda then accepted the proposal. Bart contracted with Quick Builders for the construction of a home Bart intended to move into with Linda after their marriage. Construction by Quick was not very quick because Quick was not paying subcontractors the sums that they were owed. They, in turn, were not completing their work. To expedite matters, Bart called the subcontractors and assured them that Bart would pay any sums that Quick Builders did not pay if they would complete the construction Bart and Linda married and the subcontractors completed the work. Quick Builders did not pay the subcontractors in full. Bart failed to pay Linda the $100,000. Both Linda and the subcontractors sued Bart. Discuss the probable outcome of the lawsuits.

Linda will not win her lawsuit because contract made in consideration of marriage must be evidenced in writing and signed by the party disputing the contract (Bart). The subcontractors will win their lawsuit . Bart made the promise in his own benefit so promise to pay will stand.

Roberta, an educated person, purchased real estate from Maurice. Roberta did not read entirely the contract that she signed. As a result, she did not notice the provision in the contract about the interest imposed on the unpaid portion of the purchase price. She refused to pay the interest specified in the contract. Maurice sued her. Could he recover?

The fact that she did not read the contract does not excuse her from paying the interest. Unless she can prove she was under duress, there was fraud, or misrepresentation occurred then she must pay the interest stated in the contract.

Which of the following is not a necessary element of promissory estoppel?

The promisor must intend or should reasonably expect that the promisee will rely on the promise.

Quickness Computer, Inc. is a manufacturer of computers. A Hollywood star indicated onnational television that Quickness was his favorite computer. Buoyed by this comment,sales of Quickness computers surged. Since demand outpaced supply, Quickness decided tosell no more computers unless an accompanying software package was purchased. Acompetitor informed the Office of the Attorney General of this policy, asserting it wasillegal. Decide

This is a tying sale which is a violation law to force purchasers to buy items they do not want in order to buy items they do want. Quickness would be in violation of the Sherman Antitrust Act.

"Preemption" means that the federal regulatory scheme is controlling.

True

A revocation of an offer is ordinarily effective after the offer has been accepted.

True

A trespass to personal property is any unpermitted entry below, on, across, or above the land of another

True

Agency investigations of possible violations of agency rules are handled through independent enforcement agencies

True

An option contract gives one of the parties an absolute right to enter into a second contract at a later date

True

At common law, a minor cannot be held contractually liable for his or her necessary medical expenses when the parent is unable or unwilling to pay

True

Freedom from economic domination is a personal right protected under United States law

True

The doctrine of promissory estoppel is also known as the doctrine of beneficial reliance.

True

The private life of an ordinary citizen is subject to strict scrutiny

True

The privileges and immunities clause means that if a business owner moves from California to Texas, she can engage in the same business

True

When contributory negligence is proven, damages awarded are reduced based on the plaintiff's degree of fault but the plaintiff can still recover some damages.

True

Wilma was an employee of the Electric Storage Battery Company. She was fired. She claimed that she was fired because she was a member of a labor union. The employer asserted that she was fired because she was a poor worker. Wilma filed an unfair labor practice complaint with the National Labor Relations Board. Its examiner held a hearing at which evidence was presented showing that Wilma was a poor worker. Other evidence presented showed that the employer was opposed to labor unions. The Board decided to believe Wilma's witnesses and concluded that she had been fired because she belonged to the union. Can the employer appeal this decision?

Yes

Which of the following is not illegal?

a "giveaway" to every tenth person entering a department store

If no time period for performance is specified in a contract

a reasonable time for performance will be implied

Three defenses are commonly raised to the extraterritorial application of U.S. antitrust laws. They are

act-of-state, sovereign compliance, and sovereign immunity doctrines

Consideration is not required in

agreements to modify contracts for the sale of goods

Immanuel Kant's categorical imperative theory

believes you have to be fair and ethical whether you want to be or not.

Counterfeiting is

both a federal and state crime

Crimes are generally defined and their punishments specified by

codes and statutes.

The ethical category of integrity and truthfulness is best expressed as maintaining one's values and principles:

despite the consequences or costs.

A condition subsequent can alter but not terminate a contract

false

A contract can only involve two parties: the promisor and the obligor.

false

A party may ask for legal, but not equitable, remedies in a single court

false

An agreement between real estate brokers to never charge a commission less than 6% isnot an example of price fixing.

false

An en banc decision within a U.S. Court of Appeal only requires a panel of three judges.

false

Fees charged by a lender for the reasonable expense of making a loan, such as the cost ofappraising property, are treated as interest for purposes of the usury law.

false

In a benefit-detriment approach, consideration is a benefit received by the promisee

false

It is necessary that a third-party beneficiary be identified by name

false

Larceny is best defined as the taking of personal property from the presence of the victimby the use of force or fear

false

No writing is required for a service contract that can be performed within one year after the date of the agreement

false

Only the parties who signed the original contract can have rights with respect to thatcontract

false

Ordinarily, contracts for the performance of personal services are specifically ordered

false

Parol evidence is not admissible to show fraud, duress or mistake.

false

Parties to illegal agreements are generally not entitled to help from the courts.

false

The United States utilizes a bicameral division of government

false

The beneficiary of a life insurance policy is not subject to any policy restrictions that hadbeen agreed to between the insured and the insurance company.

false

Within each state in the United States, only the U.S. Constitution is in force

false

Administrative regulations:

generally have the force of statute

Under the Sherman Act, any person who attempts to monopolize any part of the trade or commerce among the states shall be

guilty of a misdemeanor

An administrative regulation

has the force of law

According to the book Building and Growing a Business Through Good Times and Bad, companies with 100 years of consistent dividends

have a strong commitment to values

A motion for a directed verdict is appropriate:

immediately after the presentation of all evidence at trial

A contract of record is also referred to as a(n)

implied contract

Computer crimes include

intentional damage to information stored on a computer.

The failure to have a license will not render agreements void if the license

is readily obtainable by anyone who offers payment of a required fee

One of the motions that can be made after a verdict has been entered is a motion for a:

judgment notwithstanding the verdict

The tort of invasion of privacy includes all of the following except

misappropriation of another's name.

An obligation to pay for the reasonable value of services rendered when there is no contract would be called

quasi-contractual.

A(n) __________ contract is a contract to buy all requirements of the buyer from the seller.

requirements

The statute of frauds

requires that a contract for the sale of land be evidenced by a writing

The DMCA provides a(n) _______ for internet service against claims of _______

safe harbor, copyright infringement

Under which of the following doctrines is it held that a foreign sovereign cannot be sued unless it engages in illegal commercial conduct?

sovereign immunity

Smarts and Then Some, Inc. developed a software program after several years of researchand development. The particular software program was then test-marketed, at which pointa competitor filed suit claiming that the Smarts and Then Some program violated thecompetitor's copyright on a program they too were test-marketing. What is the test to determine whether a copyright has been violated?

substantial similarity test

U.S. courts will assume jurisdiction and apply antitrust laws to conduct business outside the United States if the activities of the business firms outside the United States have a direct, substantial, and foreseeable impact on U.S. commerce. This is based on what principal

the "effects" doctrine

Suppose Sheriff Roland desires to search your home. What law requires that the sheriff obtain a search warrant

the Fourth Amendment of the United States Constitution

Meetings are to be open to the public under

the Sunshine Act

To analyze a copyright infringement claim in the context of computer programs, courts will primarily examine:

the number of significant program steps that are substantially similar.

A business' right to commercial speech - or advertising - has the same protections as a natural person

true

A condition precedent must occur before a party to a contract has an obligation to perform

true

A contract made by an incompetent person after a guardian has been appointed is voidable.

true

A waiver of a breach may be either express or implied

true

Advertisements that call for an act may be deemed to be a unilateral contract

true

An agreement may involve the performance of several promises, some of which are illegal and some legal

true

An incidental beneficiary has the right to sue either party if there is a breach of contract

true

An incompetent person may ordinarily avoid a contract in the same manner as a minor.

true

Bruce is a donee beneficiary to a life insurance contract if he is listed as the beneficiary

true

Causing someone's character to be questioned is a wrong against the person and is the tort of defamation

true

Commercial impracticability discharges a party's contractual obligations when the contract becomes more expensive to perform due to drastic and severe economic downturns.

true

Contract provisions that limit the remedies of the parties are generally unenforceable.

true

If an offer is indefinite or vague, no contract arises from an attempt to accept it

true

If either the offeror or offeree dies or becomes mentally incompetent before the offer is accepted, the offer is automatically terminated.

true

If there is a reference to a third party to determine a dispute, in most cases the decision is binding.

true

It is not necessary that some person be harmed for an act to be considered a crime

true

Protection for trade dress is available under the Lanham Act

true

TRIPS extends the Paris Convention to special protection for "well-known marks"

true

The doctrine of promissory estoppel is also known as the doctrine of beneficial reliance

true

The parties may agree that the adequacy of performance under a contract is to be determined by a third party

true

Trademarks may be used to protect the exclusive right to identify either products or services.

true

Trademarks may be used to protect the exclusive right to identify either products orservices

true

Under the "bedrock view" of Constitutional interpretation, the purpose of a constitution is to state certain fundamental principles for all time.

true

When a party expressly declares before the time for performance arrives that the contract will not be performed, such a declaration is called an anticipatory repudiation

true

John, a 17-year-old, purchased a ping-pong table and four new ping-pong paddles. A weekafter he turned 18, John tried to return the ping-pong paddles. He told the seller that he haddecided to keep the table. Can John avoid the contract in this way

yes