blaw exam 2 review questions
Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV). In most states, Rita may a. disaffirm the contract. b. disaffirm the contract only if she makes full payment. c. disaffirm the contract only if she returns the SUV in good condition. d. not disaffirm the contract due to the misrepresentation.
a. disaffirm the contract.
Mary Kate Inc. allows Ashley Company to use Mary Kate's trademark as part of Ashley's domain name. This is a. a license. b. a likelihood of consumer confusion. c. cybersquatting. d. trademark dilution.
a. a license.
County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Doyle to Ezra, the furnished information is mistaken. Refer to Fact Pattern 15-3. The contract between Doyle and Ezra that includes the mistake may be rescinded if the mistake involves a. a material fact. b. any fact. c. value or quality. d. any of the choices.
a. a material fact.
Employees of Bodegas & Bistros Inc. (B&B) maintain a password-protected social media page to "vent about work." When B&B learns of the page, the company intimidates the network that operates it into revealing the password. After reviewing the posts, B&B fires the participants. Most likely, this is a. a violation of the Stored Communications Act. b. within B&B's rights as an employer. c. a subject for dispute resolution by B&B's Internet service. d. a "business-extension exception" under the Electronic Communications Privacy Act.
a. a violation of the Stored Communications Act.
Orb, Inc., does business online around the globe. The United Nations Convention on the Use of Electronic Communications in International Contracts and other international agreements improve global commercial certainty by a. all of the choices. b. determining an Internet user's location for legal purposes. c. providing that e-signatures are the equivalent of signatures on paper. d. providing for the recognition of judgments by other nations' courts.
a. all of the choices.
Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would a. allow the parties to rescind the contract. b. award damages to Flora for the mistake. c. award damages to Global for the mistake. d. enforce the contract as is.
a. allow the parties to rescind the contract.
Jess, a nurse practitioner, renders aid to Kurt, who is injured and unconscious. Jess can recover the cost of the aid from Kurt a. as if the parties had entered into an actual contract. b. only if Kurt recovers because of the aid. c. only if Kurt was aware of the aid. d. under no circumstances.
a. as if the parties had entered into an actual contract.
Dana downloads music into her computer's random access memory, or RAM, without authorization. This is a. copyright infringement. b. within Dana's rights as a computer user. c. a basis of liability for the computer maker if it does not act against Dana. d. none of the choices.
a. copyright infringement.
Edge is a video game featuring interactive extreme sports. The graphics used in the game are protected by a. copyright law. b. patent law. c. trademark law. d. none of the choices.
a. copyright law.
The idea for "Price + Profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by a. copyright law. b. patent law. c. none of the choices. d. trade secrets law.
a. copyright law. or d. trade secrets law.
Omni Insurance Company violates a state licensing statute when selling a policy to Petra, in whose state Omni is not licensed to sell insurance. As a member of the class of persons protected by the statute, Petra can a. do nothing with respect to the policy. b. enforce the policy and recover from the insurer. c. only enforce the policy. d. only recover from the insurer.
b. enforce the policy and recover from the insurer.
Basso downloads to his computer several of Dante's copyrighted sound recordings without permission. Basso shares these recordings through a P2P network, but requires everyone who downloads the songs to sign an agreement stating they will not sell the songs. This is a. a violation of copyright law. b. a "fair use" exception to the provisions of the act. c. not a "fair use" exception to the provisions of the act. d. all of the choices.
a. a violation of copyright law.
Elbert uses FedEx in a scheme to defraud Global Sales Company by obtaining merchandise to which he is not entitled. Found guilty of mail fraud, Elbert can be punished by a. imprisonment for up to 50 years b. imprisonment for up to 20 years and/or fines c. fines up to $5 million d. none of the choices
b. imprisonment for up to 20 years and/or fines
Rhonda asks Steve, "Do you want to hire me to repair your fishing net?" This is a. a valid offer. b. not a valid offer because the terms are not definite. c. not a valid offer because Rhonda did not express an intent. d. not a valid offer because Steve did not respond.
b. not a valid offer because the terms are not definite.
RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment Company copies the design without RiteMade's permission. Steel's conduct is actionable provided a. consumers are confused. b. Steel's conduct is intentional. c. Steel's conduct reduces the value of RiteMade's design. d. RiteMade's design is patented.
d. RiteMade's design is patented.
Jade puts up a collection of sports memorabilia for bids on BuyBuy, an Internet auction site. Khalil makes the highest bid and sends the payment, which Jade receives, but she does not send the collection. This is a. hacking. b. identity theft. c. phishing. d. cyber fraud.
d. cyber fraud.
Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump a. imposes a moral obligation on Kim to pay Leo b. imposes no obligation on Kim unless she is satisfied with the job c. is not sufficient consideration because it is not goods or money d. is the consideration that creates Kim's obligation to pay Leo
d. is the consideration that creates Kim's obligation to pay Leo
Rhino causes a disturbance at Soufflé Café. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by a. a fine only. b. a fine and imprisonment up to one year. c. a fine and imprisonment up to six months. d. a fine and imprisonment up to ten days.
b. a fine and imprisonment up to one year.
Marketing Inc. offers to create a campaign to increase N'Ice Creamery Inc.'s online business. N'Ice agrees to pay for the service. These parties have a. no contract. b. an express contract. c. an implied contract. d. a quasi contract.
b. an express contract.
Vicky asks Walt to repair a pair of boots. There is no discussion of price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is a. an express contract b. an implied contract c. a quasi contract d. no contract
b. an implied contract
Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can a. recover the balance for lack of consideration. b. recover the balance because the consideration was past. c. recover the balance due to unforeseen events. d. not recover the balance.
d. not recover the balance.
Berto pushes Consuela to the ground, grabbing her smartphone as she falls. The use of force or fear is required for this act to constitute a. burglary. b. any crime. c. larceny. d. robbery.
d. robbery.
Baylor obtains a loan from City Bank at 4.5 percent interest. Their state's usury statute limits interest rates to a 3.5 percent maximum. Baylor's contract with the bank is enforceable only if a. Baylor does not attempt to disaffirm it. b. the bank does not attempt to disaffirm it. c. both Baylor and the bank knew of the state limit. d. none of the choices.
d. none of the choices.
Web Marketing Inc. buys and sells domain names with the click of a mouse. A domain name can be bought and sold many times. Each change of owner is registered automatically as part of a mass registration. In this environment a. cybersquatting can flourish. b. typosquatting occurs unintentionally through clerical misspellings. c. brands and trademarks are automatically protected from cybersquatters. d. the Federal Trade Commission can sanction Web Marketing.
a. cybersquatting can flourish.
Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is a. effective. b. not effective because comedy is not a serious subject. c. not effective because Anton's tutoring will be subjective. d. not effective because Brooke has no knowledge of the subject.
a. effective.
Lou offers to service Millie's heating and air conditioning system for one year for $500. Under the mirror image rule, Millie's response will be considered an acceptance if the terms of the acceptance a. exactly mirror those of the offer. b. change the items offered, but do not change the price. c. change the price, but do not change the items offered. d. change both the price and the items offered.
a. exactly mirror those of the offer.
Laird is an employee of Motor Parts, an auto parts store. On the orders of his employer, he switches trademarks on parts that come into the store to be sold to consumers. This is most likely a. forgery. b. larceny. c. robbery. d. obtaining goods by false pretenses.
a. forgery.
Rose commits an act via e-mail against Savers Bank, a business in Texas, where the act is a cyber crime. Rose resides in Utah where the act is not a crime. Prosecution of Rose in Texas involves questions of a. jurisdiction. b. "maximum contacts." c. the immunity of Internet service providers. d. encryption.
a. jurisdiction.
Coffee Brokers, Inc., offers to buy Dining Company's coffee-roasting services for a certain price. Dining responds that the price is too low and thereby rejects the offer. The offer is a. terminated. b. valid for a reasonable time to give Interstate a "second chance." c. valid for the period of time prescribed by a state statute. d. valid until Interstate revokes the offer.
a. terminated.
Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they a. want to avoid potential disputes. b. are conscious of those rules. c. are not conscious of those rules. d. have a moral obligation to do so.
a. want to avoid potential disputes.
Reprise Entertainment, Inc., a U.S. television and movie production company, files suit against Substantivo TV, Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the United States and Mexico are signatories to TRIPS and under that agreement, Reprise is entitled to receive a. better treatment than Substantivo. b. the same rights and protections in Mexico as Substantivo. c. nothing. d. fewer rights and protections in Mexico than Substantivo.
b. the same rights and protections in Mexico as Substantivo.
Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is a. a browse-wrap term. b. a click-on agreement. c. a shrink-wrap agreement. d. a partnering agreement.
b. a click-on agreement.
Jeff is seventeen years old. Legally, Jeff is considered a. an adult. b. a minor. c. ratified. d. emancipated.
b. a minor.
Ren offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ren and Sara will have a. a bilateral contract. b. a unilateral contract. c. a void contract. d. an executive contract.
b. a unilateral contract.
Quiana, an employee of Reservations-for-Less, Inc., pays Sven, an employee of Reservations-for-Less' competitor Travel Cheap, Inc., for a secret company pricing schedule. This may be a. an effective marketing strategy. b. commercial bribery. c. creative legal bookkeeping. d. money laundering.
b. commercial bribery.
Bobbie is a minor subject to her parents' care and control. She signs a contract to rent a lake cabin from Cleve for one year. Before the end of the term, Bobbie moves out. She can a. avoid liability for the rent but not disaffirm the contract. b. disaffirm the contract and avoid liability for the rent. c. disaffirm the contract but not avoid liability for the rent. d. neither disaffirm the contract nor avoid liability for the rent.
b. disaffirm the contract and avoid liability for the rent.
Lee applies to Marketing Corporation for a position as a software engineer. Lee has no training in computers or programming and no background as an engineer. After Lee is hired, Marketing learns the truth. The employer can rescind the contract on the basis of a. none of the choices. b. fraud. c. mistake. d. undue influence.
b. fraud.
Laurel enters into a contract to sell her bike to Melanie. Melanie takes possession of the bike as a minor and continues to use it well after reaching the age of majority. She has a. expressly ratified the contract. b. impliedly ratified the contract. c. expressly disaffirmed the contract. d. impliedly disaffirmed the contract.
b. impliedly ratified the contract.
Sal contracts with Tasty Pizza to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract. Refer to Fact Pattern 13-3. Sal and Tasty a. may rescind their entire contract. b. may rescind their contract to the extent that it is executory.-not completely performed c. must perform their entire contract. d. must perform the part of their contract that is executory.
b. may rescind their contract to the extent that it is executory.-not completely performed
Emma, a minor, buys a water bottle, a set of weights, and a treadmill from Fitness Warehouse. Later, Emma disaffirms the deal. If the goods are still in her possession or control, she can keep a. the water bottle, but not the weights or the treadmill. b. none of the goods. c. only the damaged or used goods. d. all of the goods.
b. none of the goods.
Lauren files a suit against Moving Service for breach of contract, based on what Lauren claims was Moving's offer. For a court to determine if a contract has been breached, under the common law, the offer must include terms that are a. exactly precise. b. reasonably definite. c. unequivocally approximate. d. vague or uncertain.
b. reasonably definite.
Ossie enters a convenience store and points a gun at the clerk Pico. Ossie forces Pico to open the cash register and give him all the money. Ossie will most likely be charged with a. burglary. b. robbery. c. larceny. d. receiving stolen property.
b. robbery.
Foster promises to buy Gideon's trumpet for $75. Gideon is a. a grantee. b. a grantor. c. a promisee. d. a promisor.
c. a promisee.
On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had a. an expired contract when Neil said that he had changed his mind. b. a quasi contract when Neil said that he would pay for certain work. c. a unilateral contract because Outdoor has substantially performed. d. no contract.
c. a unilateral contract because Outdoor has substantially performed.
Idina admires Jules's collection of guitars. Jules says, "I plan to sell the collection when I get tired of it." Jules's statement is a. an offer. b. not an offer because it has not been communicated to Idina. c. not an offer because Jules expressed only an intent to enter into a future contract. d. an acceptance.
c. not an offer because Jules expressed only an intent to enter into a future contract.
Without authorization, Brady uses the trademark of Ciera Coffee Company to promote cheap, flavorless candy, which is not similar to Ciera's products but diminishes the quality of the coffee company's mark. This is a. cybersquatting. b. typosquatting. c. trademark infringement. d. trademark dilution.
c. trademark infringement.
Data Storage Inc. offers to provide cloud-computing services to Enterprises, LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprises accepts the written offer. Refer to Fact Pattern 15-1. Data Storage's best defense against enforcement of the contract is that Enterprises knew a. a bilateral mistake supports the cancellation of a contract. b. a mistake of value supports the cancellation of a contract. c. a unilateral mistake supports the cancellation of a contract. d. the price was below the prices of comparable services.
c. a unilateral mistake supports the cancellation of a contract.
ConnectWeb, Inc., operates a subscription-based service that extends the software and storage capabilities of its subscribers. This is a. dilution. b. peer-to-peer (P2P) networking. c. cloud computing. d. a distributed network.
c. cloud computing.
In a divorce proceeding, Jonas promises to pay a certain amount of child support to Kelly every month until their daughter Lois is eighteen years old. Jonas's obligation with respect to this promise is a. moral, not legal. b. legal, not moral. c. legal and moral. d. neither legal nor moral.
c. legal and moral.
Kent buys Lizzie's house for $100,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kent's consideration a. inadequate. b. past. c. legally sufficient. d. illusory.
c. legally sufficient.
Leila enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule, if the contract's writing is clear and unequivocal, the meaning of the terms must be determined from a. only evidence not contained in the document. b. any relevant extrinsic evidence. c. only the face of the instrument. d. the later testimony of the parties.
c. only the face of the instrument.
Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to a. cease business. b. make another promise. c. pay money damages. d. perform a different service.
c. pay money damages.
Posing as Visa Bank, Walt e-mails Paula, asking her to update her credit-card information through a link in the e-mail. She clicks on the link and types in the data, which Walt promptly sells to O"Hara. This is a. hacking. b. employment fraud. c. phishing. d. cyberterrorism.
c. phishing.
In selling a commercial building, Riley tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building. Refer to Fact Pattern 15-4. Under these circumstances, Sam's best course of action is most likely to a. scam Riley. b. induce Riley to give him the commission on her next sale. c. recover damages or rescind the contract to buy the building. d. sabotage Riley's career with bad publicity.
c. recover damages or rescind the contract to buy the building.
Pie in the Sky Aircraft Inc. files a suit against Quest Engineering Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if a. there is a large disparity in the amount of consideration exchanged. b. the consideration involves the performance of services. c. something of value passed between the parties. d. the consideration is worth less than $100.
c. something of value passed between the parties.
Ryan is accused of auto theft. Ryan refuses to give information related to his alleged criminal activities because he suspects it will be used to prosecute him. This is a. duress. b. entrapment. c. the privilege against self-incrimination. d. necessity.
c. the privilege against self-incrimination.
Boyd defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal—a student loan accruing interest at a certain rate and payable beginning on a certain date—was unfair because the consideration for their contract was inadequate. Refer to Fact Pattern 13-2. A court is most likely to evaluate the adequacy of consideration if a. a thing exchanged has no intangible value to one of the parties. b. something exchanged is not of direct economic or financial value. c. the items exchanged were of unequal value. d. there is a gross disparity in the value of the consideration exchanged.
d. there is a gross disparity in the value of the consideration exchanged.
Field Construction, Inc contracts with mesa ranch to build a new horse barn on mesa's property for which mesa agrees to pay. The elements of this and any other contract includes
legality
