Legal Test #2

43. Bill agrees to sell an acre of land to Cliburn for $5,000. Bill fails to go through with the deal when the market price of the land is $7,000. If Cliburn cannot obtain the land through specific performance, he may recover a. $7,000. b. $5,000. c. $2,000. d. nothing.

. $2000

56. If a contract contains the statement, "time is of the essence," which of the following is/are true? a. time is a condition of the contract. b. the contract must specify a reasonable time for performance. c. a failure to timely perform by one of the parties is a material breach of the contract. d. A and C.

. A and C

39. Finnegan and Ewan want Dribble to replace Finnegan as a party to their contract. They can best accomplish this by agreeing to a. an accord and satisfaction. b. an assignment. c. a novation. d. a nullification.

. A novation

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

. A quota

20. Closed meetings of the Office of Community Planning and Development and other federal administrative agencies are permitted when a. the subject of the meeting concerns an employee accused of a crime. b. the subject of the meeting involves litigation in which the OCPD is involved. c. the subject of the meeting involves matters relating to future rulemaking. d. all of the above. e. A and B only.

. All of the above

16. The functions of the National Transportation Safety Board, like those of other federal administrative agencies, include a. adjudication only. b. rulemaking only. c. enforcement only. d. all of the above. e. A and B only.

. All the above

52. Basil and Rosemary enter into a contract for the sale of Basil's condominium to Rosemary. She transfers her right to be recorded in the mortgage/conveyance records of her county as the owner of the property to her son Sage. This transfer is a. a delegation. b. an assignment. c. prohibited. d. a negotiation.

. An assigment

23. Statutes designed to make administrative agencies more accountable to the public include a. Administrative Procedures Act. b. Government in Sunshine Laws. c. Freedom of Information Act. d. A and C. e. B and C.

. B and C

44. McCoy enters into a contract to operate a Tasty Yogurt franchise, which Cor Tasty agrees to keep in place as long as McCoy maintains his business license. Mar Under the circumstances, Tasty's duty to perform is a. absolute. b. conditional. C. substantial. d. none of the above.

. Conditional

28. Seafood Restaurant Company pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by a. Congress, through enabling legislation. b. the courts, through the adjudicatory process. c. the U.S. Constitution, through the 10th Amendment. d. the U.S. Department of the Treasury, through a final rule.

. Congress, through enabling legislation.

59. Miley and Rico enter into a contract for the sale of Miley's recording studio to Rico. When Rico is unable to attend the closing, he asks Oliver to perform his duties for him. This transfer of duties is a. a delegation. b. an assignment. c. prohibited. d. a negotiation.

. Delegation

34. Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is a. confiscation. b. expropriation. c. appropriation. d. sovereignty.

. Expropriation

5. Ricky accuses Sara of fraud. Normally, the reliance giving rise to fraud is based on a statement of material a. law. b. fact. c. opinion. d. none of the above.

. Fact

40. To sell his house to Rosemary, Sage does not tell her that the foundation was built on unstable pilings. Rosemary may be able to avoid the contract on the ground of Select one: a. duress. b. fraud. c. mistake. d. undue influence.

. Fraud

53. Gia orally promises Heck that she will buy his fishing trawler. For this promise to be enforceable under the doctrine of promissory estoppel a. the trawler must be considered to be "goods." b. Heck must act in reliance on Gia's promise to his detriment. c. Gia's promise must be in writing. d. none of the above.

. Heck must act in reliance on Gia's promise to his detriment

9. Dependable Appliances, a retail store, must use reasonable care on its premises to warn its patrons of a. all risks. b. hidden risks. c. obvious risks. d. no risks.

. Hidden risks

60. The term "material," when used in a legal sense, means a. insignificant. b. relevant. c. important. d. admissible.

. Important

45. Dylan enters into a contract to manage the operations of Cash's accounting office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be a. cancelled. b. compromised. c. altered. d. performed.

. Performed

Caleb is a witness in a controversy involving the U.S. Drug Enforcement Administration. Caleb can be compelled to appear before an administrative law judge if he is served with a. an order for procedural due process. b. a subpoena duces tecum. c. a subpoena. d. any of the above.

. Subpoena

8. Dru tells his Excel company coworkers that Fiona, Excel's office manager, is stealing from their employer. The statement is defamatory only if a. a coworker believes it. b. Fiona suffers emotional distress. c. the statement is true. d. the statement is false.

. The statement is false

31. Congress created the Environmental Protection Agency and authorized it to regulate air and water pollution. This action by Congress is a. an assignment of Congress's duties. b. a delegation of Congress's legislative power. C. unconstitutional. d. arbitrary and capricious.

. a delegation of Congress's legislative power.

49. Lois takes out a life insurance policy that names her son, Matt, as the beneficiary. This is a. a delegation. b. an assignment. c. a third party beneficiary contract. d. all of the above.

. a third party beneficiary contract

46. Mona and Nero want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. an alteration of the original contract.

. an accord and satisfaction

61. A contractual provision that usually accompanies a hold harmless agreement is a. a condition. b. a stipulated damages provision. c. an indemnification agreement. d. none of the above.

. an indemnification agreement.

The Federal Trade Commission (FTC) issues an order relating to the advertising of Discount Mart, Inc. Discount appeals the order to a court. The court may review whether the FTC's action is a. arbitrary, capricious, or an abuse of discretion. b. unsatisfactory to one or more parties. c. illegal under criminal laws. d. in violation of ethical precepts.

. arbitrary, capricious, or an abuse of discretion.

6. Louis-larger and stronger than Mica- threatens to hit Mica just before hitting and injuring him. Mica files a suit against Louis assault and battery. Mica will most likely recover for a. assault and battery. b. assault but not battery. c. battery but not assault. d. neither assault nor battery.

. assault and battery

57. The case of Hadley v. Baxendale is an early case known for its holding regarding a. consequential damages. b. compensatory damages. c. punitive damages. d. nominal damages.

. consequential damages

36. Super Tools Company makes tools for consumers and construction professionals. While using a Super tool to replace an electrical outlet, Tom neglects to shut off the power and is electrocuted. Against a suit filed by Tom's heirs Super's best defense is a. assumption of risk. b. contributory negligence. C. negligence per se. d. superseding cause.

. contributory negligence

66. Dion contracts to build a store for Ella for $500,000 with payments to be in installments of $50,000 as the work progresses. Dion finishes the store except for a cover over a compressor on the roof. A cover can be installed for $500. Ella refuses to pay the last $50,000 installment. If Dion's breach is not material, a. each party has a claim against the other. b. Dion has a claim against Ella for $50,000, but Ella has no claim against Dion. c. Ella has a claim against Dion for the failure to cover the compressor, but Dion has no claim against Ella. d. neither party has a claim against the other.

. each party has a claim against the other.

4. Nina is injured in a truck accident and sues Owen, alleging negligence. Owen claims that Nina was driving carelessly. Comparative negligence may reduce Nina's recovery a. even if Nina was only slightly at fault. b. only if Nina was as equally at fault as Owen. c. only if Nina was less at fault than Owen. d. only if Nina was more at fault than Owen.

. even if Nina was only slightly at fault.

27. Following an adjudication, the administrative law judge (ALJ) issues a decision which contains a. a final judgment. b. findings of fact and conclusions of law. c. findings and conclusions of liability. d. none of the above.

. findings of fact and conclusions of law.

30. The U.S. Fish and Wildlife Service orders Elin to stop using a certain type of fishing net from her boat. To appeal this order to a court, Elin must a. appeal simultaneously to the agency and the court. b. bypass all administrative remedies and appeal directly to the court. c. first exhaust all administrative remedies. d. none of the above.

. first exhaust all administrative remedies.

17. The U.S. Mine Safety Administration conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in a. all industries. b. highly regulated industries. c. no industries. d. newly regulated industries only.

. highly regulated industries

21. Kenya issues bonds to finance the construction of an international airport. Kenya sells some of the bonds in the United States to Lacy. A terrorist group destroys the airport, and Kenya refuses to pay interest or principal on the bonds. Lacy files suit in a U.S. court. The court is most likely to hear the suit a. if Kenya's acts constitute a confiscation. b. if Kenya's acts constitute an expropriation. c. if Kenya's selling bonds is a "commercial activity." d. under no circumstances.

. if Kenya's selling bonds is a "commercial activity."

47. Melissa agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract. Melissa's estate a. is discharged from any contractual liability. b. must find a competent accountant to fulfill the contract. c. must pay damages. d. must refund any money paid to Melissa on the contract.

. is discharged from any contractual liability.

48. At an auction, Max bids on an object, believing that it is worth more than the price asked. When the item proves to be worth less than the price asked, Max is a. liable on the bid. b. not liable on the bid because Max miscalculated the value. c. not liable on the bid because the auctioneer misstated the value. d. not liable on the bid because the object was probably overpriced.

. liable on the bid.

54. Windstar Heli-Pads, Inc. enters into a contract to employ Valerie as an on- site project manager for two years. Windstar breaches the contract. Valerie has a duty to a. do nothing. b. mitigate or reduce the damages that she might otherwise suffer. c. breach the contract with Windstar. d. sue Windstar to deter others from similar acts. *

. mitigate or reduce the damages that she might otherwise suffer.

3. Stefano, an engineer, supervises the construction of a new house. When the house collapses due to faulty construction, the injured parties sue Stefano. As a professional, he is held to the same standard of care as a. ordinary persons. b. other engineers. c. other professionals, including accountants, attorneys and physicians. d. the injured parties.

. other engineers

41. Congresswoman Pelosi and other politicians want to prohibit the import of certain agricultural products that pose a danger to domestic crops. With respect to these products' import, Congress can a. do nothing. b. impose quotas, but not tariffs. c. impose tariffs, but not quotas. d. prohibit the imports.

. prohibit the imports.

68. Cavendish contracts to deliver Bagels & More's products to its customers for $1,500, payable in advance. Bagels pays the money, but Cavendish fails to perform. Bagels can a. obtain restitution of $1,500 but not rescind the contract. b. recover nothing nor rescind the contract. c. rescind the contract and obtain restitution of $1,500. d. rescind the contract only.

. rescind the contract and obtain restitution of $1,500.

19. General Auto Corporation makes cars in the United States. To boost the sales of General Auto and other U.S. car makers, Congress can a. neither set quotas on imports nor tax imports. b. only set quotas on imports. c. only tax imports. d. set quotas on imports and tax imports.

. set quotas on imports and tax imports

67. The principle of contracts law at issue in the question above is a. consequential damages. b. substantial completion. c. mitigation of damages. d. specific performance.

. substantial completion

29. The government of North Korea violates an international law. Persuasive tactics to remedy the situation fail. The only recourse of other nations is to a. authorize the European Union to enforce the law. b. ask the International Court of Justice to enforce sanctions. C. seek enforcement of the law through the United Nations. d. take coercive auction such as severing diplomatic relations, imposing boycotts, going to war.

. take coercive auction such as severing diplomatic relations, imposing boycotts, going to war.

25. The U.S. Department of Homeland Security issues a final rule/regulation. Like the final rules/regulations adopted by other federal administrative agencies, this rule/regulation is published in a. the Administrative Register of the Federal Government. b. the Code of Federal Regulations. c. the Federal Rules of Civil Procedure. d. the United States Code.

. the Code of Federal Regulations.

22. The Federal Energy Regulatory Commission (FERC) wants to close a series of its meetings to the public. To open the meetings, Jennifer or any citizen could sue the FERC under a. the Freedom of Information Act. b. the Government-in-the-Sunshine Act. c. the Regulatory Flexibility Act. d. no federal or state law.

. the Government-in-the-Sunshine Act.

24. The United States and other members of a certain organization have agreed to grant "Normal Trade Relations" status to each other with regard to imports and exports. This organization is a. the World Trade Organization. b. the International Export/Import Bank. c. the United Nations. d. the Convention on Contracts for the International Sale of Goods.

. the World Trade Organization

33. Global Properties, Inc. (GPI), a U.S. firm, owns property in Hong Kong. The government in Hong Kong takes GPI's property without paying for it. A. U.S. court will probably not examine the validity of this act committed by China within 1 its own territory, under a. the act of state doctrine. b. the doctrine of sovereign immunity. c. the principle of comity. d. the World Trade Organization.

. the act of state doctrine.

64. E-Equip, Inc. agrees to sell ten servers to First Bank. When E-Equip tries to deliver the servers. First Bank refuses to accept them. There is nothing wrong with the servers. E-Equip sues First Bank, seeking damages. E-Equip is entitled to the difference between a. E-Equip's lost profits and the market price. b. E-Equip's lost profits and the contract price. c. the contract price and the market price. d. the market price and E-Equip's lost profits.

. the contract price and the market price.

42. Great Hardware Store agrees to hire Carol for one year at a salary of $500 per week. When Great cancels the contract, Carol spends $100 to obtain a similar job that pays $450 per week for a year. Carol is entitled to recover a. the amount of the wages that Great promised only. b. the difference between the wages at the two jobs only. . c. the difference between the wages at the two jobs plus $100. d. $100 only.

. the difference between the wages at the two jobs plus $100.

35. UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela seizes UniOil's property, UniOil asks the U.S. Court to order the property's return. The court rules that Venezuela is exempt from the court's jurisdiction. This is а. еxpropriation. b. the act of state doctrine. c. the doctrine of sovereign immunity. d. the principle of comity.

. the doctrine of sovereign immunity.

State and federal transportation agencies may issue regulations that conflict. When a state regulation conflicts with a federal regulation, a. the federal regulation takes precedence. b. the state regulation takes precedence. c. the regulation are mutually void. d. the regulations are of equal effect.

. the federal regulation takes precedence.

51. Under Louisiana law "cause" is defined as a. something of value given in exchange for a promise. b. an element of a tort claim. c. the object or purpose for which the parties entered the contract. d. all of the above.

. the object or purpose for which the parties entered the contract.

69. Stuart claims that he and Trina entered into a contract. The intent to enter into a contract is ultimately determined with reference to a. the unconscionable theory of contracts. b. the objective theory of contracts. c. the personal theory of contracts. O' d. the subjective theory of contracts.

. the objective theory of contracts

58. The rule established by Hadley v. Baxendale provides that for the non- breaching party to obtain the type of damages the case involved, he must prove that a. the other party intentionally breached the contract. b. the other party committed fraud at the time the contract was made. . c. the other party knew or should have known of special circumstances that could result in the non-breaching party's suffering more than actual losses. d. awarding the non-breaching party his actual out-of-pocket losses will not adequately compensate him.

. the other party knew or should have known of special circumstances that could result in the non-breaching party's suffering more than actual losses.

32. Pakistan giving effect to the laws and court decisions of the United States is an application of a. the act of state doctrine. b. the doctrine of sovereign immunity. c. the principle of comity. d. the World Trade Organization.

. the principle of comity

62. The contractual provision referenced in the question above provides that one party to the contract agrees a. not to hold the other party liable for breach of contract. b. to excuse the other party only from an intentional failure to perform his obligations. c. to pay attorney's fees, costs and any judgment obtained by a third party against the other party to the contract. d. to assume any liability imposed on the other party if the liability arises from the other party's performance or non-performance of his contractual duties. X

. to pay attorney's fees, costs and any judgment obtained by a third party against the other party to the contract.

18. The Federal Aviation Administration (FAA) issues a subpoena duces tecum to ABC Company. This is an order a. to produce the company's business records and other documents to the FAA. b. for the company's CEO to appear before the FAA at a hearing. c. for a search warrant to be issued to ABC. d. for an adjudication.

. to produce the company's business records and other documents to the FAA.

38. Fran is an 80-year old widow with no business experience. Fran's nephew Mark urges her to sell some of her stock at a price below market value to Tim, Mark's "business" partner. Fran, relying on Mark, agrees to sell the stock to Tim. Fran may be able to avoid the contract on the ground of a. duress. b. fraud c. mistake. d. undue influence.

. undue influence

7. Ron, the manager of Sav-mart Discount Store, detains Tina, whom Ron suspects of shoplifting. Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina a. did not actually shoplift. b. had not shoplifted in the past. c. had probable cause to leave the premises. d. was detained for an unreasonably long time.

. was detained for an unreasonably long time

2. Melvin, a wholesale dairy products salesperson, follows Nadine, another wholesale dairy products salesperson, as she contacts her customers. Melvin solicits each of Nadine's customers for business. Melvin is most likely liable for a. appropriation. b. assault. C. conversion. d. wrongful interference with a business relationship.

. wrongful interference with a business relationship

55. A third-party beneficiary of a contract a. has a legal right to unilaterally cancel the contract only. b. can demand performance from the obligor only. c. can sue the obligor directly for breach of contract only. d. A and B e. B and C

B and C

Driving a car negligently, Rollo crashes into a phone pole. The pole falls, smashing through the roof of a house, killing Silky. But for Rollo's negligence, M Silky would not have died. Regarding the death, the crash is the a. cause in fact. b. intervening cause. c. proximate cause. d. superseding cause.

Cause in fact

26. North Korea confiscates the property of foreign investors. Oman expropriates foreign investors' property. Generally observed legal principles of international law are violated by a. neither North Korea's confiscation nor Oman's expropriation. b. North Korea's confiscation and Oman's expropriation. c. North Korea's confiscation only. d. Oman's expropriation only.

North Korea's confiscation only.

63. A hold harmless agreement is a. an agreement by one party to a contract to pay any damages for which the other party to the contract may be found liable. b. an agreement by one party to a contract to assist the other party to the contract in performing his obligations thereunder. C. an agreement by one party to a contract to assume any liability arising out of the other contracting party's performance or non-performance of his or her contractual duties. d. an agreement by one party to a contract to transfer all of his rights under the contract to a third party.

an agreement by one party to a contract to assume any liability arising out of the other contracting party's performance or non-performance of his or her contractual duties.

GPS, Inc. designs and sells technology for advanced global positioning systems that can be used to pinpoint the location of virtually any person or object. As a for-profit corporation that does business in interstate commerce, GPS may be subject to regulations issued by a. certain federal administrative agencies only. b. certain federal agencies and/or state agencies in states in which GPS does business. c. neither federal nor state agencies. d. certain state agencies in states in which GPS does business only.

certain federal agencies and/or state agencies in states in which GPS does business

70. Gio questions whether there is consideration for his contract with Huey. Consideration has two elements - there must be a bargained-for exchange and the value of whatever is exchanged must be a. adequately sufficient. b. definitely sufficient. c. economically sufficient. d. legally sufficient.

legally sufficient

50. AAA Properties, Inc. leases a 20,000 square foot office building to Business Con Corporation (BC). At the time they entered into the lease agreement, the amount of damages AAA would incur if BC defaults was difficult to determine. Therefore, 1.00 the parties included a provision in the lease that says if BC defaults, AAA would be entitled to a payment of $40,000. This provision is likely a. an unenforceable penalty because at the time of the lease, the amount of damages on default was too difficult to determine. b. an unenforceable penalty because the amount is excessive. c. liquidated damages because at the time of the lease, the amount of damages on default was difficult to determine and the estimate is reasonable. d. liquidated damages because the lease was for an office building.

liquidated damages because at the time of the lease, the amount of damages on default was difficult to determine and the estimate is reasonable.

Marie, a driver for National Transport Company, causes a five-car accident on an interstate highway. Marie and National are liable to a. all those who are injured. b. only those whose injuries could reasonably have been foreseen. C. only those whose cars were immediately ahead and behind Marie's vehicle. d. only those who do not have insurance.

only those whose injuries could reasonably have been foreseen

65. Tony and Carol contract for the sale of Tony's business. Carol gives Tony a down payment, and Tony gives Carol the keys to one of his stores. Before the contract is fully performed, however, they agree to return the down payment and keys, and cancel the sale. This is a. accord and satisfaction. b. reformation of contract. c. novation. d. rescission and restitution.

rescission and restitution

GPS, Inc. designs and sells technology for advanced global positioning systems that can be used to pinpoint the location of virtually any person or object. A dispute arises between GPS and Fong, Ltd., a Chinese firm. GPS obtains a judgment in a U.S. court against Fong. Whether this judgment will be enforced by a court in China depends on the Chinese court's application of a. the act of state doctrine. b. the doctrine of sovereign immunity. c. the principle of comity. d. the World Trade Organization.

the principle of comity.