Practice Questions LEB 320F

Sidney makes the following gifts: $10,000 to her brother Bill for his birthday. $20,000 to her sister Sue for her college tuition. $30,000 to the Red Cross Assume that the payment for Sue's tuition is made directly to Sue's university. What amount is subject to the gift tax? A. $0 B. $5,000 C. $20,000 D. $45,000

A. $0

Rick, when he was 16 years old, bought a used car from Car World for $5,000. He drove the car for a year and put 15,000 miles on the odometer. He was also involved in a minor accident. At age 17, Rick wants to disaffirm the contract with Car World and get a full $5,000 refund. Car World objects. Its owner says, "Look, the car has higher miles than it did last year, and even if it wasn't damaged from the wreck, I could only sell it for $4,000. And with the damage on top of the higher miles, I can't sell it for more than $3,000. And besides, I sold this car more than a year ago - I shouldn't have to issue any refund at all." What refund should Rick receive if a court applies the rule that is applicable in most states? A. $5,000 B. $4,000 C. $3,000 D. $0

A. $5,000

Ann, Bob, and Carol, are involved in a pro-life organization. Ann and Bob often carry signs in a picket line in a park near an abortion clinic. Ann's condems abortions in a general way. Bob's claims that a doctor who works at a clinic across the street does not have a medical license, and the claim is untrue. Carol hands out pro-life leaflets to coworkers at a corporation where she works, but her boss asks her to stop. Which of the three have engaged in protected free speech? A. Ann B. Bob C. Carol D. Ann and Bob E. Ann and Carol

A. Ann

Ron punches Tommy twice for no good reason. After the second punch, Tommy tackles Ron to the ground and in so doing breaks Ron's arm. Tommy gets up, but Ron stays down, almost motionless. Tommy is so angry, he kicks Ron in the ribs before leaving. Which of Tommy's actions probably amount to self-defense? A. The tackle B. The kick C. Both A and B D. None of the above

A. The tackle

Watkin Fuel Co. sued competitor Carroll Independent Fuel Co. for trademark infringement. Carroll registered the domain names of Watkins-fuel.com, watkinsfuel.net, watkinsfuel.org, and similar marks. Both firms sell heating oil, kerosene, and diesel oil. Watkins has long been the leader in these markets in Washington and Oregon, there states there it operates. Carroll also operates there, selling to the same high-end customers that Watkins targets. Plaintiff's name (Watkins Fuel Co.) is trademarked with the USPTO. Watkin's president found about all of this when customers began asking him if his company had been purchased by Carroll. They wondered, because when they were on the Internet, the web address watkinsfuel.com (and others) landed them at Carroll's website. Watkins sued. Which of the following is true? A. Watkins will probably win on a trademark infringement theory B. Watkins will probably win on a trademark dilution theory C. Watkins will probably lose on both theories

A. Watkins will probably win on a trademark infringement theory

A promise on June 1, 2020, to perform for two hours at a wedding reception on August 12, 2021. Does this contract need to be in writing to satisfy the Statute of Frauds? A. Yes B. No

A. Yes

Max, a resident of Texas, sues Houston Police Department after he is arrested during a protest. He claims his free speech rights under the U.S. Constitution has been violated. He seeks $50,000. Can he bring his claim to federal court? A. Yes B. No

A. Yes

Roger shows up at his friend Fred's house. Fred did not invite him over, but Fred is glad to see him, and the two sit down to watch a baseball game. Later, Roger uses a bathroom at Fred's house, and he receives an electrical shock from a light switch. Fred know that the switch was badly wired, because his cousin received a shock from the same switch last week. Did Fred have a legal duty to warn Roger about the faulty switch? A. Yes B. No

A. Yes

Walter makes watches. No smartwatches, digital watches, or even battery-powered watches for him - he works with tiny gears and makes old-fashioned mechanical watches. One summer, he invented a new configuration of gears that allows for a watch to keep track of multiple time zones in an entirely new way. He calls the new watch the "Neptune," and plans to start selling it in his shop. Is Walter's design the kind of things that can be protected as a trade secret? A. Yes B. No

A. Yes

Consider the following timeline. June 1 - Y receives an offer in the mail from X. June 2 - X mails letter of revocation June 3 - Y mails acceptance at 5 pm June 4 - Y receives the revocation June 5 - X receives Y's acceptance Do X and Y have a contract? A. Yes, as of June 3 B. Yes, as of June 5 C. No

A. Yes, as of June 3

Bill says proudly to his friend Dean, "Look! I just got the new iPhone!" Holding it side-by-side with his old iPhone, he says with great enthusiasm, "It's so much better! Look what it can do! Wow!" Dean thinks the phones are the same as Bill rambles on and on. Dean gets really. really bored for a while. But, his attention returns when Bill says, "I need to get rid of this old one. I guess it's not worth much now, not with all these upgrades on the new one!" "Hmmm... can you make calls and check baseball scores on the old one?" Dean asks. "Suer, but oh baby, not like you can on the new one! I mean, the pixel count alone..." "How much would you want for it?" Dean asks. "Oh. Ah... I'll sell it to you for $50." "I'll take it," Dean says. "Oh, ah... OK," Bill says. "But, you know, I didn't really want to sell it. I, ah... I really never meant to, you know, make a real contract or anything. I was just, ah, just talking." Has bill made an offer? A. Yes, because his objective intent was to make an offer B. No, because his subjective intent was to not make an offer C. No, because he did not use the word "offer" in the statement underlined above. D. No, because he did not write his offer down.

A. Yes, because his objective intent was to make an offer

Paul Plaintiff sues Donna Defendant in a tort case. He accuses her of running a stop sign and hitting his car and seeks damages to compensate him for this losses. Paul's case will be a _________ lawsuit. In the case, Paul's burden of proof will be to prove his case __________________. A. civil; by preponderance of the evidence B. civil; beyond a reasonable doubt C. criminal; by preponderance of the evidence D. criminal; beyond a reasonable doubt

A. civil; by preponderance of the evidence

Ann sues Bill in a negligence lawsuit. What type(s) of damages can she seek? A. compensatory damages B. punitive damages C. both A and B D. none of the above

A. compensatory damages

Ellen Engineer works for AlphaCo. She is not an officer in the company. She reviews a report on land the company owns in west Texas. The report expresses confidence that there is a significant amount of previously undiscovered oil under the surface of the land, and that the company stands to make tens of millions of dollars from the resource. The next morning, Ellen buys thousands of shares of AlphaCo stock. When the news about the new oil field breaks later that month, Ellen's shares double of AlphaCo stock. Ellen is liable for insider trading as (ag) A. corporate insider B. temporary insider C. misappropriator D. tippee E. none of the above; because she is not an executive

A. corporate insider

Jack and Jill each own a Chewbacca action figure. Jill's is even still in its original box. Their toys, like most of the figures from the same production run have a problem - the feet fall off at the slightest touch. The few figures in the world that have sturdy feet are worth fifty times what the flawed figures are worth. Carl Collector talks to Jack over the phone. "Does the Chewie you are selling have the 'feet fall off' thing?" he asks. Jack glances at his footless action figure. "Nope," he replies. Carl agrees to buy it. Carl next calls Jill and asks her the same question. Jill doesn't know one way or the other, since her action figure is still in the box. She could find out if she looked. but she is not about to check too closely. "No way," she says. "The feet are sturdy." Carl agrees to buy it. Jack has committed ______________, and Jill has committed ________________. A. fraud; fraud B. fraud; innocent misrepresentation C. innocent misrepresentation; fraud D. innocent misrepresentation; innocent misrepresentation

A. fraud; fraud

Ronny sells his successful seafood restaurant to Ken. Initially, Ronny plans to retire. But in the weeks after handing the restaurant over to the new owner, many of Ronny's customers reach out to him and tell him how much they miss having him around. Ronny decides to open a brand new seafood restaurant a few blocks away from the old one. This infuriates Ken, who points out that Ronny agreed to a noncompete clause in the contract that transferred ownership of the old restaurant to Ken. In it, Ronny promised not to open a competing restaurant for one year in the same town. "It's a free country," Ronny says. "It's a new business under a new name. You only bought the old one. Leave me alone." The noncompete clause ____________ the ancillary requirement. If Ken sues to enforce it, a court probably ______________ issue an injunction ordering Ronny not to open a new restaurant for a year. A. meets; will B. meets; will not C. fails to meet; will D. fails to meet; will not

A. meets; will

Bill says, "I hate Steve!" Steve's boss hears the exclamation, and later fires Steve because he no longer trusts him. Steve has to go into business for himself. Tom says, "Steve stole $1000 from me when I hired him to do my taxes!" This is not true. Steve's largest client fires him. Bill has commited ___________, and Tom has commited ___________. A. no type of defamation; slander per se B. no type of defamation; libel C. slander; slander per se D. slander; libel

A. no type of defamation; slander per se

Vince proposes to hire Donny to mow his lawn once a week over the summer for $40 per week. The two sign an agreement to that effect. Vince is the ___________ in this relationship, and Vince ________ need to have the capacity for the arrangement to be valid. A. principal; does B. principal; does not C. agent; does D. agent; does not

A. principal; does

After a long day of creating online course materials, Prentice and Bredeson have a fender-bender in the faculty parking lot. They briefly consider fighting, but they soon realize that neither is particularly good at fighting, so they decide to sue each other instead. At trial, the evidence shows that at the time of the accident, Prentice was behind the wheel eating a cheeseburger and fiddling with his radio, and that Bredeson was talking on two cell phones. The jury concludes that the wreck was 60% Bredeson's fault and 40% Prentice's fault. Bredeson will recover 40% of his losses in which type of system? A. pure comparative negligence B. modified comparative negligence C. both A and B D. none of the above

A. pure comparative negligence

Carl challenges a statute under the 14th Amendment right to equal protection. He argues that the law makes distinctions based upon race, and that it must be struck down. The court will apply ____________ scrutiny to the claim. If it wishes to keep the law in place, the government will have to convince the court that it is necessary to further a(n) ______________ state interest. A. strict; compelling B. strict; important C. intermediate; compelling D. intermediate; important

A. strict; compelling

Tom and Jim, a couple married in 2016, have four significant assets: - $50,000, in a bank account into which they have both deposited their paychecks since 2016. - a $200,000 home that Tom paid off in 2014 - a $30,000 car that they bought in 2018 - a $20,000 car that Jim inherited from his grandmother in 2019 What is the total value of Tom and Jim's community property if they live in a community property state? A. $30,000 B. $80, 000 C. $100,000 D. $280,000 E. $300,000

B. $80, 000

Consider Abner v. Doubleday, a case that will be heard by a U.S. Court of Appeals. Which of the following can you say is definitely true? A. Abner was the plaintiff in the original lawsuit brought to district court B. Abner is bringing the appeal to the U.S. Court of Appeals C. Abner was the defendant in the original lawsuit brought to district court D. Both A and B are definitely true E. None of the above are definitely true

B. Abner is bringing the appeal to the U.S. Court of Appeals

Sue rents a Segway scooter. While riding around downtown, she spots her arch enemy Archie, who is standing on a sidewalk facing away from her and looking at his phone. Sue grimaces, sets her shoulders, and accelerates to the Segway's top speed of 5 miles per hour. With a look of pure rage, she zeros in on Archie, who is still looking at his phone and scrolling through an endless stream of nothing in particular. Eventually, Sue reaches Archie and runs into him from behind, knocking him down to the sidewalk. Archie never saw it coming. In the fall, he breaks his wrist. A. Assault B. Battery C. Both A and B D. None of the above

B. Battery

Alice is distracted by her navigation system and strikes Al's car with her car. Brenda is driving 50 miles per hour over the posted speed limit while drunk when she strikes Bill's car. Which of has likely to committed an intentional tort? A. Alice B. Brenda C. Both A and B D. None of the above

B. Brenda

Alice is distracted by her navigation system and strikes Al's car with her car. Brenda is driving 50 miles per hour over the posted speed limit while drunk when she strikes Bill's car. Which of them has likely committed an intentional tort? A. Alice B. Brenda C. Both A and B D. None of the above

B. Brenda

According the an example in the module, in the 1990s, leaders at Sears Auto Centers set aggressive goals that caused many Sears employees to widely overcharge for work and to perform unnecessary repairs. Other similar examples involved Washington Mutual and Wells Fargo. The problem at the heart of the companies' troubles was... A. Failure to adopt a code of ethics B. Improperly structured compensation C. A lack of effective ethics training D. None of the above

B. Improperly structured compensation

Imagine that Peter, who works for Pepsi, puts 200 cans of Pepsi into an empty vending machine on Monday morning. Later that day, Karl Klutz buys a Pepsi from the same machine and takes it out onto a second floor balcony. Karl sees Vince Victim down below, waves to him, and fumbles the Pepsi. The can describes a perfect arc and conks Vince on the head, knocking him unconscious. When he comes to, Vince feels like filing a lawsuit. Whose actions are a proximate cause of this injury? A. Peter B. Karl C. Both A and B D. None of the above

B. Karl

I say to you, "I'll sell you this pen for one dollar." "How about 50 cents?" you ask. "Well, I don't really know much about rap," I reply. "No," you say, shaking your head. "For the pen. I'll pay you 50 cents for the pen." "Ah," I say. "No, that's not enough." "OK, OK, I'll buy it for $1," you say. Do we have an accepted offer? A. Yes B. No

B. No

Lauren is distracted by a bee in her car, and while paying attention to the bee, she fails to notice Ron's car until it is too late to avoid a collision. Has LAura been negligent? A. Yes B. No

B. No

Vince goes to a baseball game. The back of his ticket says, "team is not liable for injuries in the stands." Vince has a few beers and taunts the shortstop throughout the game. Late in the game, Vince says something very unpleasant about the shortstop's mother. The shortstop drops his glove, charges into the stands, and beats Vince senseless. When Vince gets out of the hospital, he sues the team. The team wants to escape liability and points out that their exculpatory clause on the back of Vince's ticket covers this kind of thing. Will a court likely enforce the exculpatory clause and prevent Vince from seeking damages? A. Yes B. No

B. No

For many years, McDonalds ads sometimes featured a dopey character called the "Hamburglar". Assume that the Hamburglar approaches Ronald McDonald on a sidewalk, pulls out a knife, and demands Ronald's wallet. Ronald is no clown... well, actually, he is a clown, but no matter... and so Ronald hands over the wallet. Question: Does the Hamburglar have an appropriate name in this scenario? A. Yes, he has committed burglary B. No, in this case, he should be called the Hamrobber C. No, in this case, he should be called the Hamlarcener D. No, in this case, he should be called the Hamembezzler

B. No, in this case, he should be called the Hamrobber

Tom discovers a new type of tree exploring deep in a forest on a remote island. No one appears to have used it for anything before, and Tom would like exclusive rights to sell wood. Sarah create a new wood-like product in her lab. It is substantially stronger than any known natural wood. Can Tom and Sarah obtain patents that will cover their respective discoveries? A. Tom can receive a patent B. Sarah can receive a patent C. Both Tom and Sarah can receive a patent D. Neither Tom nor Sarah will receive a patent

B. Sarah can receive a patent

Paul Plaintiff, a resident of Texas, files a lawsuit in Texas against Don Defendant, a resident of California. Don receives notice of the lawsuit, and tells his lawyer, "I don't want to travel to Texas to be sued by this guy." Don's lawyer says, "Maybe you don't have to." The lawyer argues that the Texas court lacks personal jurisdiction over Don. Paul's lawyer argues that the court does have personal jurisdiction, and the case should proceed. Six months before, Don travelled to Texas, signed a contact with Paul while he was there, and returned to California. He has made no other trips to Texas, and has had no other interactions with the state. In Paul's lawsuit, he alleges that Don has breached that contract. Which of the following types of personal jurisdiction does the Texas court have over Don? A. General personal jurisdiction B. Specific personal jurisdiction C. Both A and B D. None of the above

B. Specific personal jurisdiction

- A church requires that employees in its youth ministry be Christians - A large computer manufacturer requires that its employees be Christians - A small dry cleaners that employs 10 people requires its employees be Christian Which of these could be successfully sued under the Civil Rights Act? A. The church B. The computer manufacturer C. The dry cleaners D. B and C E. A, B, and C

B. The computer manufacturer

Walter makes watches. No smartwatches, digital watches, or even battery-powered watches for him - he works with tiny gears and makes old-fashioned mechanical watches. One summer, he invented a new configuration of gears that allows for a watch to keep track of multiple time zones in an entirely new way. He calls the new watch the "Neptune," and plans to start selling it in his shop. Which of the following can Walter probably trademark? A. The design for his new kind of gear movement. B. The name of his new kind of watch: "Neptune" C. Both A and B

B. The name of his new kind of watch: "Neptune"

Ann Agent works for Pete Principal. Pete tells her, "Drive the company truck up to Dallas, pick up a shipment of widgets from Alpha Co, and bring them back to Austin." As Ann is driving the company truck up to Dallas, it runs low on gas. Ann fills up the tank. Is Pete obligated to pay for the gas? A. Yes, because Ann had express authority to buy gas. B. Yes, because Ann had implied authority to buy gas. C. Yes, because Ann had apparent authority to buy gas D. No

B. Yes, because Ann had implied authority to buy gas.

Picture a Rolex. Oyster Perpetual. Self-winding. Certified Chronometer. Nice. But this Rolex has a problem. Because Seller Sam once dropped it, its second hand and the shaft that turns is bent ever so slightly. No one would really notice. But every so often, the flaw causes the movement to get stuck, and the watch stops keeping accurate time. To avoid committing fraud, does Seller Sam have an obligation to disclose this defect to Ben Buyer? A. Yes, but only if Sam is a watch expert or in the business of selling watches B. Yes, whether or not Sam is a watch expert or in the business of selling watches C. No, because if he does not make a false statement, he can't commit fraud

B. Yes, whether or not Sam is a watch expert or in the business of selling watches

Fred logs into his TD Ameritrade account and buys one share of Apple stock. He is delighted that he now owns 1/4,330,000,000th of the company. Fred's share of Apple stock is ... A. a debt security B. an equity security C. it is impossible to tell from the information given

B. an equity security

Jed promises to move his neighbor's furniture to a new apartment next Saturday, and the neighbor agrees to pay $300 for Jed's work. What kind of contract does Jed have with the neighbor? A. unilateral B. bilateral

B. bilateral

Milton Friedman argued that corporations are agents of _________. He _____________ argue that corporations should be socially responsive. A. capital; would B. capital; would not C. society; would D. society; would not

B. capital; would not

A child says, "All my friends are allowed to text as late as they want to!" Her parents reply, "If everybody else jumped off a cliff, would you jump, too?" The child is forming her belief about acceptable conduct through a filter of ... A. obedience to authority B. conformity bias C. groupthink D. overconfidence bias

B. conformity bias

June does not qualify for a car loan. She calls her aunt from the car dealership, and the aunt decides to help out her favorite niece. Over the phone, the aunt tells the general manager of the finance department, "Go ahead and loan her the money, and if she misses the payments, I'll make them." The aunt's promise ______________ contain the elements of a guaranty contract. If the car dealer makes June the loan, and if June fails to make payments, the aunt's promise _____________ be enforceable. A. does; will B. does; will not C. does not; will D. does not; will not

B. does; will not

Ann teaches at UT and also writes textbooks for different publishers. While at UT, she has regular teaching and committee assignments. She reports to a department chair and a Dean, and she is paid a regular salary. While working for UT, she is an ________________. When writing the books, she is commonly paid a flat rate per project. "We'll pay you X number of dollars to write a 300-page textbook on business ethics by June 1," the publisher might say. The publishers typically do not set specific hours, and she does not typically have the writing managed while it is being done. While writing the books, Ann is an _______________. A. employee; employee B. employee; independent contractor C. independent contractor; employee D. independent contractor; independent contractor

B. employee; independent contractor

Jack loses a huge sum in a lawsuit with Pat Plaintiff, and he does not pay Pat for a long time. Pat's lawyer goes back to court and seeks the court's help in collecting what is owed. The court issues a document that empowers a sheriff to seize Jack's car and sell it at auction to raise part of the money. The court issues a second document that order's Jack's bank to deliver some of Jack's deposits into the custody of the court. The first document is a writ of ______________, and the second document is a writ of ________________. A. execution; execution B. execution; garnishment C. garnishment; execution D. garnishment; garnishment

B. execution; garnishment

Ted is Jane's boss. Almost every week for the last two years, he has started the Monday morning meeting with a dirty joke. Most of them are about sex. Jan has had enough. Which of the following types of sexual harassment has Ted probably committed? Assume that the company does not have any particular sexual harassment policy. A. quid pro quo B. hostile work environment C. both A and B D. none of the above

B. hostile work environment

Fred is a prospective juror in a case in which Al Attorney will be asking for $10,000,000 in damages. During voir dire questioning, Al gets the feeling that Fred will be unlikely to award such a large sum. He does not have a good argument that Fred will be biased or will fail to be impartial, but he would still like to keep him off the jury. To do so, Al will probably have to use which type of challenge? A. challenge for cause B. peremptory challenge C. neither would be effective for keeping Fred off the jury

B. peremptory challenge

The general standards that constitute the smallest amount of ethical conduct necessary for the functioning of civilization are referred to as ________________. These standards ___________ require defense or justification. A. the moral minimum; do B. the moral minimum; do not C. virtue ethics; do D. virtue ethics; do not

B. the moral minimum; do not

In January of 2020, Ron is hired by a television network to write a screenplay as work for hire for an upcoming episode of one of their popular programs. He delivers the work, and the episode is filmed and aired later in the year. Also in 2020, Ron writes and publishes a science fiction novel. Ron passes away in 2040 Will the copyright on the screenplay or the novel expire first? A. the screenplay B. the novel C. they will expire at the same time

B. the novel

Rex tries to make decisions in such a way as to benefit as many people as possible. Sam tries to treat everyone as he would wish to be treated. Rex takes a _____________ approach to decision making, and Sam follows a ____________ approach. A. utilitarian; utilitarian B. utilitarian; deontological C. deontological; utilitarian D. deontological; deontological

B. utilitarian; deontological

Imagine that Peter, who works for Pepsi, puts 200 cans of Pepsi into an empty vending machine on Monday morning. Later that day, Karl Klutz buys a Pepsi from the same machine and takes it out onto a second floor balcony. Karl sees Vince Victim down below, waves to him, and fumbles the Pepsi. The can describes a perfect arc and conks Vince on the head, knocking him unconscious. When he comes to, Vince feels like filing a lawsuit. Whose actions are causes in fact of this injury? A. Peter B. Karl C. A and B D. None of the above

C. A and B

Tina has a dispute with her next-door neighbor. The neighbor's tree fell over onto her garage roof and cause significant damage. The neighbor has been slow to agree to pay for the damage. Tina says, "I'd like to work this out quickly, and I hope that I can still be friends with my neighbor later - it would be awkward to live next door to someone who is angry with me." Based on Tina's comments, she should start with which of the following? A. A trial B. An arbitration C. A mediation

C. A mediation

Angela is nearly nine months pregnant. She has worked for her current employer on a full time basis for the last 12 months, and her company has 16 employees. She would like to take the next nien weeks off from work. Evaluating under the Family Medical Leave Act, what problems do you see with her expectations? A. The FMLA allows leaves only for illnesses and not for childbirth B. Angela has not worked for her employer long enough to demand leave C. Angela's company is not large enough to be required to comply with the FMLA D. Angela can claim up to six weeks of leave, but not the nine she desires E. All of the above are true statements

C. Angela's company is not large enough to be required to comply with the FMLA

In 1890, Congress passed the Sherman Antitrust Act. In 2008, Congress passed the Genetic Information Nondiscrimination Act. Which of these is/are a statute? A. The Sherman Antitrust Act B. The Genetic Information Nondiscrimination Act C. Both A and B D. None of the above

C. Both A and B

Max sues Houston Police Department after her is arrested during a protest. He claims his free speech under the U.S. Constitution have been violated. Jack sues MegaCorp over crop losses after MegaCorp dumps toxic chemicals into a river that eventually runs across his farm. He sues based on the federal Clean Water Act and also under Texas tort law. Which of these two plaintiffs could bring their case to federal court? A. Max B. Jack C. Both A and B D. None of the above

C. Both A and B

Paul owns two properties outside Woodsfield, Ohio. Gary, after viewing both acreages, makes Paul a written offer to purchase one for $18,000. Paul accepts the offer. It later develops that Gary had one property in mind while Paul, after reading the description contained in Gary's offer, honestly and reasonably believed that Gary was referring to the other property. Who can rescind the agreement? A. Paul B. Gary C. Both can rescind the agreement D. Neither can rescind the agreement

C. Both can rescind the agreement

- Ann was fired in 1960 because of her religious faith - Ben was fired in 2020 for objectively poor work performance. - Carl was fired in 2020 because of his religious faith Which of them would have been in a good position to sue under the Civil Rights Act and win their case? A. Ann only B. Ben only C. Carl only D. A and C E. B and C

C. Carl only

Jeff discovers a shopping bag left on a counter next to a sink in the restroom at Macy's. Inside is a new leather jacket. There is a receipt showing that an unidentified person paid $400 cash for the jacket. If this happens in a state that follows common law rules, which of the following statements is true? A. Jeff is now the owner of the jacket B. Jeff has a right to possess the jacket until and unless the true owner is found C. Macy's has a right to possess the jacket until and unless the true owner is found D. None of the above

C. Macy's has a right to possess the jacket until and unless the true owner is found

A fast food restaurant in a college town would benefit from a contract between a construction firm and the university calling for the construction of a four-level parking facility on campus property just across the street from the restaurant. The builder breaches the contract with the university by refusing to go ahead with the project, and the university looks like it may scrap the plans for the parking garage altogether. Can the owner of the restaurant sue to enforce the construction contract? A. Yes, because it is a creditor beneficiary B. Yes, because it is a donee beneficiary C. No, because it is an incidental beneficiary D. No, because a third party that has not signed an agreement never has rights to enforce the contract

C. No, because it is an incidental beneficiary

A wife attacks her husband with an ax, knocking him down. As she is about to decapitate him, a bystander intervenes, catching the ax on it's downward flight. The bystander's hand is badly mutilated. The husband jumps up and promises to pay the bystander $1,000 for saving his life. When he later does not pay, the bystander sues the husband. Is consideration present that supports the promise to pay the $1,000? A. Yes B. No, because the bystander did not suffer a detriment C. No, because the promise to pay did not induce the detriment D. No, because the wife caused the detriment to the bystander, and she is not a party to the lawsuit

C. No, because the promise to pay did not induce the detriment

Sidney signs a contract to sell her vacation house. Tom makes an agreement to work as an engineer for a local tech company. Veronica makes a deal in which she will sell her collection of rare books. Which of these contracts would be covered by Article 2 of the Uniform Commercial Code? A. Sidney's only B. Tom's only C. Veronica's only D. A and B E. B and C

C. Veronica's only

Al contracts to sell land in Montana to Bob for $60,000. Bob later discovers - after signing the contract but before paying for the land, that the actual value of the land is only $30,000. Even though Al did not mislead Bob in any way, Bob refuses to pay, and Al sues. Can Al enforce the contract? A. No, because of the preexisting obligation rule B. No, because of the peppercorn rule C. Yes

C. Yes

DuPont was constructing a large refining plant designed to enable the use of its new, secret process for producing methanol. Someone who knows a great deal about such refining processes could figure out how DuPont's new process worked by seeing and studying the facility under construction, and so DuPont put security measures in place as the plant was under construction, including a privacy fence around the construction site, restricted access with locked gates, ID checks, and guards who patrolled the perimeter. But, a competitor rented a small airplane, flew over the construction site, and took aerial photographs. (In more modern times, drones would make this kind of thing much, much easier.) DuPont sued. The defendant's competitor claimed that the plant design should not count as a trade secret because DuPont did not take reasonable steps to protect the design. Will the plant design be determined to be a trade secert? A. No, because it is not the kind of thing that can be a trade secret B. No, because DuPont did not take reasonable measures to protect the design. C. Yes

C. Yes

Zehmer is a farmer who owns the Ferguson farm. Lucy is a neighbor who has attempted to buy that farm before. Lucy see Zehmer in a restaurant and tells him: "I bet you wouldn't take $50,000 for that farm." Zehmer replies: "Yes, I would, too. You wouldn't give fifty." The parties then talked about a potential deal for 40 minutes, writing up one version and then amending it when it dawned on them that Zehmer's wife needed to agree. The document the Sehmers signed said: "We hereby sell to W.O. Lucy the Ferguson Farm complete for $50,000, title satisfactory to the buyer." The parties were drinking alcohol at this time, but were not so drunk as to not understand what they were doing. Later, when Lucy tried to pay, the Zehmers claimed that they were only kidding - it was all a big joke. Lucy sued to enforce the deal. Does a contract exist? A. No, because Zehmer lacked the required subjective intent to sell B. No, because the offer was not sufficiently definite. C. Yes

C. Yes

Lenny hires Richard to demolish a small office building on a property that he has acquired. Richard will use controlled explosions to bring the old building down. When he does the job, Richard uses too much dynamite. A chunk of the old building is blasted across the street and destroys Pam's car. Can Pam sue Lenny for Richard's actions? A. Yes, if Richard is an employee of Lenny's B. Yes, if Richard is an independent contractor C. Yes, absolutely, whether Richard is an employee or an independent contractor D. No, absolutely not.

C. Yes, absolutely, whether Richard is an employee or an independent contractor

Ann lives in a state that has a 2-year statute of limitations and a 10-year statute of repose on negligence cases. Two bad things happened to her in 2018. First, she is involved in a car accident that is entirely the fault of Donny Driver. Immediately after the wreck, she is operated on by Sally Surgeon. Sally does a careless job of reconstructing Ann's elbow, but it is done in a way that causes no initial pain and Ann does not notice until 2020. Now it is 2021. Ann is frustrated by her elbow pain, and decides that she wants to sue both Donny and Sally. Can her her lawsuit proceed if the defendants raise the defenses described in this section? A. Yes, against Donny and Sally B. Yes, against Donny only C. Yes, against Sally only D. No

C. Yes, against Sally only

Cobb purchases a gemstone from Drury for $25 and leaves Drury's house. At the time of contracting, both parties believed the stone was topaz. In fact, it turns out to be an uncut diamond worth $700. Drury sues. This scenario is an example of a _____________ mistake, and Drury _____________ be able to rescind the contract. A. unilateral; will B. unilateral; will not C. bilateral; will D. bilateral; will not

C. bilateral; will

Carol and Debby bring separate lawsuits under their 14th Amendment right to Equal Protection. Carol challenges a law that she claims makes distinctions based on gender. Debby challenges a law that she says makes distinctions based on the income level of residents of her state. If the government wishes to keep the challenged laws in place, it will have to convince the court the law is necessary to further a(n) _____________ state of interest in Carol's lawsuit and a(n) ____________ state of interest ini Debby's lawsuit. A. rational; rational B. rational; important C. important; rational D. important; important E. compelling; important

C. important; rational

When Congress passes a statute, it exercises ____________ power. If someone challenges the law in court and argues that the new law violates a part of the Constitution, the courts will use their power of _____________ to evaluate the law. A. executive; judicial review B. executive; separation of powers C. legislative; judicial review D. legislative; separation of powers

C. legislative; judicial review

Alpha Company would like to give $10,000 to be used to fund ads that will seek to help elect Senator Smith. Alpha also runs many kinds of advertisements on TV and the internet, and hopes to be allowed to continue to do so without restriction. The _________________ is/are protected as free speech. A. political donation B. advertisement C. political donation and advertisements

C. political donation and advertisements

Under the Supreme Court's modern interpretation of the Commerce Clause, the most important factor in determining whether a business' activities count as interstate commerce is whether ... A. any customers reside in states other than the business' home state B. any physical items (goods) cross from one state to another C. the activities have any appreciable effect on interstate commerce D. the transactions are substantial in number, or involve a substantial sum of money E. none of the above

C. the activities have any appreciable effect on interstate commerce

Rhonda dies in 2020. Her will divides our wealth up as follows: $12.58 million to my husband Hank $12.58 million to my daughter Debbie $12.58 million to UT How much of Rhonda's estate is subject to taxation under the estate tax? A. $25.06 million B. $12.58 million C. $11.58 million D. $1.0 million

D. $1.0 million

Ron loses his discrimination claim in federal district court. If he wishes, he can appeal his case to a __________ court. If he loses there, he can seek to have his case reviewed by _________. A. a general trial court; his state's supreme court B. a general trial court; the U.S. Supreme Court C. A U.S. Court of Appeals; his state's supreme court D. A U.S. Court of Appeals; the U.S. Supreme Court

D. A U.S. Court of Appeals; the U.S. Supreme Court

Miles sells his house and land to Keisha. He has the following items of interest in his backyard: a lemon tree, a large swing set, and several large chairs. To install the swing set, Miles dug 24-inch holes for each support pole and poured concrete around the poles after they had been lowered into the holes. While of the items in the yard amounts to real property, and therefore passes to Keisha? A. the lemon tree B. the swing set C. the chairs D. A and B E. A, B, and C

D. A and B

Consider the following people, and whether each has the ability to disaffirm a contract. - Al is insane in fact. He signed an agreement, and he understood its nature and effect. - Bob has consumed five beers. He signed an agreement, and he understood its nature and effect. Which of these people can disaffirm their contract? A. Al B. Bob C. Both Al and Bob D. Neither Al nor Bob

D. Neither Al nor Bob

Fred places a verbal order at a store for a new Tag Heuer watch. He pays the full price - $1000 - at the time of the order. The clerk says the watch will arrive in about a week. The next morning, Fred changes his mind about the watch. He goes to the store and argues that he should be able to cancel the order and get his money back. The store refuses, and Fred sues, citing the statute of frauds. Does Fred have a valid argument that the statute of frauds should allow him to escape this deal? A. Yes, because the watch costs more than $500 B. Yes, because the watch has yet been delivered C. Yes, because he is purchasing the watch from a merchant. D. No

D. No

Zena signs an arbitration agreement on her first day at a new job in which she agrees that if she has any disputes with the company in the future, she will not sue and will only pursue a remedy in arbitration. A year later, Zena has a car accident with Barry. Afterwards, they sign an agreement that they will arbitrate the dispute. A month after that, Zena does not get an expected promotion at work, and she thinks it is because her supervisor dislikes her personally and not because of the quality of her work. Now, Zena is upset at both her employer and at Barry, and she would like to "have her day in court" with both of them. That is to say, she wants to sue both, and not go through arbitration. Can she do so? A. She can sue her company only B. She can sue Barry only C. She can sue both her company and Barry D. No, she must arbitrate both disputes

D. No, she must arbitrate both disputes

Consider three promises made by Uncle Will to his three nephews. Promise to Al: "When you turn 21 next year, I'm going to give you my truck." Promise to Ben: "You can drive my truck to school whenever you need to" Promise to Cam: "You're my favorite nephew. I'm giving you my truck for your own. I'll bring it to you." Assume that Uncle Will has not yet delivered the truck Which of these promises currently amounts to a gift and transfers ownership of the truck? A. The promise to Al B. The promise to Ben C. The promise to Cam D. None of the above

D. None of the above

Gary is a 50 year old, and is addicted to opioids. One morning, he takes a large dose of Oxycontin, and when he arrives to work, he crashes his car into his boss' SUV. "That's it - you're fired!" yells the boss. Which of the following laws can Gary use to get his job back? Assume that Gary's company has 40 employees. A. The ADA B. The ADEA C. The Civil Rights Act D. None of the above

D. None of the above

Roger copies 6 of the 7 elements of Barbara's patent, but does not have anything that is the substantial equivalent of the 7th element in the patent. Which of the following is true? A. Roger has literally infringed on Barbara's patent B. Roger has violated Barbara's patent under the doctrine of equivalents C. Both A and B D. None of the above

D. None of the above

Alice buys a copy of the game Elf War on CD-Rom. She makes a single backup copy and gives the copy to her sister. Has Alice violated the game's copyright? A. No, because consumers are allowed to make a single backup copy B. No, because of the fair use defense C. No, for the reasons A and B D. Yes

D. Yes

Walter makes watches. No smartwatches, digital watches, or even battery-powered watches for him - he works with tiny gears and makes old-fashioned mechanical watches. One summer, he invented a new configuration of gears that allows for a watch to keep track of multiple time zones in an entirely new way. He calls the new watch the "Neptune," and plans to start selling it in his shop. What type of mark is "Neptune"? A. generic B. descriptive C. descriptive D. arbitrary

D. arbitrary

A recent study found that people who are in the center of social networks, who acts as brokers of information for others in the network, are more likely to believe that these others share their moral judgments than other members of the networks. This finding indicates that people at the center of social networks are especially susceptible to the phenomenon of: A. obedience to authority B. conformity bias C. groupthink D. overconfidence bias

D. overconfidence bias

Sam sues AlphaCo, his former employer. In his case, he alleges that AlphaCo illegally discriminated against him. During discovery, Sam's lawyer asks AlphaCo for its employment records over the last 10 years. The lawyer also wants to talk to Sam's former supervisor under oath and ask him about Sam's termination. The demand for the employment records is a(n) _________________. The lawyer would like to talk to the former supervisor as part of a(n) _______________. A. interrogatory; interrogatory B. interrogatory; deposition C. request for production of documents; interrogatory D. request for production of documents; deposition

D. request for production of documents; deposition

The idea of a social contract supports the view that corporations are agents of ______________. The concept of group dynamics as it applies in corporate settings supports the view that the corporation are agents of ______________. A. capital; capital B. capital; society C. society; capital D. society; society

D. society; society

Paul Plaintiff, a resident of Texas, files a lawsuit in Texas against Don Defendant, a resident of California. Don receives notice of the lawsuit, and tells his lawyer, "I don't want to travel to Texas to be sued by this guy." Don's lawyer says, "Maybe you don't have to." The lawyer argues that the court does not have personal jurisdiction, and the case should not proceed. He does not say anything else about the case in the filing. Don's lawyer has filed a(n) __________________. This action ______________ give the Texas court personal jurisdiction over Don. A. appearance; does B. appearance; does not C. special appearance; does D. special appearance; does not

D. special appearance; does not

Sid works at a day care. Most of his coworkers are women. By all accounts, he does a good job caring for the children in his car. One night, the owner of the day care runs into Sid outside a movie theater. Sid is smoking. The owner fires Sid on the spot, citing a strict no smoking policy that is part of Sid's employment contract. "We can't have smokers around the children," she says. The next day, the owner hires a women to take over Sid's duties. Sid sues. He argues that lots of his coworkers, men and women, smoke when off-duty. He presents evidence that 3 men have been caught smoking in the last few years, and 5 women. The men were all fired, and none of the women were fired. Which of the following is probably true? A. Sid has established a prima facie case of disparate treatment discrimination B. The employer will be able to rebut the prima facie case by arguing a legitimate business reason for the firing (the violation of the no-smoking policy) C. Sid will be able to argue that the rebuttal is a mere pretext for his firing D. A and B E. A, B, and C

E. A, B, and C

Which of the following tend to increase the chances that employees will act ethically? A. Hiring ethical people B. Treating employees well C. Adopting a code of ethics D. Conducting effective ethics training E. All of the above

E. All of the above

Adam sues Brenda and claims that Brenda's dog bit his leg. Brenda receives a copy of Adam's complaint, and in her answer, she alleges that her dog bit Adam when he was trespassing in her yard late at night, that he destroyed her fence when he ran away from the dog, and he should pay $500 to compensate her for the fence repairs. Characterize the components of Brenda's answer. A. It contains a denial B. It contains a defense C. It contains a counterclaim D. A and C E. B and C

E. B and C

Billy, age 10, walks into a baseball card shop and tells the owner that he has an Aaron Judge rookie card. The owner offers to pay Billy $25 for the card if he brings it by tomorrow. Billy says, "It's a deal," shakes the owner's hand, and leaves. Select the correct descriptive terms from the pairs below that apply to this deal. unilateral or bilateral valid or voidable or void express or implied executed or executory governed by common law principles or governed by UCC principles

bilateral, voidable, express, executory, contract governed by UCC principles