Law E2 5355

Congress has introduced the Fair Minimum Wage Act of 2013, which would increase the minimum wage to __________ by 2016.

$10.10 per hour

Generally, employees who earn less than _____ per week are automatically considered eligible for minimum wage and overtime as required by the Fair Labor Standards Act.

$455

Which of the following is considered in determining whether use of copyrighted material constitutes fair use?

(1) The purpose and character of the use, (2) the economic effect of the use on the copyright owner, (3) the nature of the work used, and (4) the amount of the work used.

Under traditional common law, the acceptance must be the __________ of the offer.

Mirror image

The tort of intentional infliction of emotional distress protects a person's right to peace of mind.

True

Under the doctrine of __________, the plaintiff may recover only the proportionate amount of damages attributable to the defendant's negligence.

Comparative negligence

Which of the following are damages that give the plaintiff the benefit of its bargain, putting the plaintiff in the case position it would have been in if the contract had been fulfilled?

Expectation damages

Which of the following is true regarding private employer monitoring of employee e-mail on company-owned equipment?

Most courts have upheld a private employer's right to monitor employee e-mail on company-owned equipment.

To prove __________ in a product liability case, the injured party must show that the defendant did not use reasonable care in the design or manufacture of its product.

Negligence

Tort damages generally attempt to restore the plaintiff to the same position he or she was in before the tort occurred.

True

Trespass may occur below the surface of land.

True

Under the UCC, the buyer may reject any or all of the goods if the goods fail to conform to the contract.

True

Under the UCC, the implied warranty of merchantability guarantees that the goods are reasonably fit for the general purposes for which they are sold, and that they are properly packaged and labeled.

True

Under the preemption defense, certain federal laws and regulations that set minimum safety standards are held to preempt state-law product liability claims.

True

When entering into contracts with companies in other nations, a manager should understand whether that company's laws are based civil codes, rather than on case-by-case common law.

True

How long must an employee have worked for an employer in order to be eligible for leave provided by the Family and Medical Leave Act?

Twelve Months

Which of the following is true regarding compensation for hours worked under the Fair Labor Standards Act when an employee is asked to be on standby—that is, available to return to work while off duty?

If an employee is asked to be on standby, the hours spent on standby will not be counted as hours worked if the employee is generally free to use the time for his or her own purposes.

Under the Family and Medical Leave Act, eligible employees are entitled to _____ weeks of leave per year.

12

Under federal law, individuals under the age _____ have no protection from discrimination based on age.

40

A(n) __________ plan is a defined contribution pension plan funded with contributions by the participants or a combination of participant and employer contributions.

401(k)

Which of the following is true regarding causation in a failure-to-warn claim?

In an extreme case, a judge may set aside a jury verdict on causation grounds.

Mandy purchased a business law book and used it during her business law class. She later loaned the book to Steven, and then to Christen. Another student accused her of copyright violation and threatened to report her to the book publisher and also to her school's ethics board. Did Mandy violate the copyright laws?

No, because her loans would be covered under the first sale doctrine.

Fact Pattern 10-1 Polly buys a new iron and uses it for a few months without incident. She was surprised, however, when one day the iron gave her a significant shock. She suffered no lasting damages, but did have some pain from the incident. A few weeks later she read in the newspaper that the manufacturer had known for over a year about the iron's propensity to shock users, but had refused to take recall measures. She also read that some users had been severely shocked. Polly was outraged but wondered if she could sue because she really did not have significant injuries. Refer to Fact Pattern 10-1. Which of the following would be an advantageous type of action with which Polly should become associated?

A class action

Which of the following is governed by Article 2 of the UCC?

A contract for sale of office supplies

Which of the following does NOT involve liability for an intentional tort?

A defendant is found liable based on successor liability

A court might consider a product to be unreasonably dangerous if:

a less dangerous alternative was commercially feasible but was not produced.

The "Inside Story" focuses on Employers' Policies Regarding Employees' Use of Social Media. The NLRB issued guidelines to protect employees' use of social media, especially concerning:

concerted activity under Section 7 of the NLRA, including communication to each other about wages, hours, and working conditions.

The main question for the U.S. Supreme Court in CASE 10.4 Mutual Pharmaceutical Co., Inc. v. Bartlett (2013) was whether:

consumers could sue generic drug manufacturers for defectively designed drugs that makes them unreasonably dangerous.

In regard to successor liability, courts applying the __________ look for constancy between the buyer and seller to determine whether the successor company is essentially a mere continuation or reincarnation of the predecessor entity.

continuity-of-enterprise approach

A third party beneficiary is someone who is not:

A party to the original contract.

Which of the following is true regarding the filing of a claim under Title VII?

A plaintiff is required to file a charge with the EEOC; but in the event the EEOC does not pursue the matter, the plaintiff may proceed personally after receiving a right-to-sue letter from the EEOC.

In which of the following situations would the doctrine of res ipsa loquitur apply?

A post operative x-ray showed a surgical sponge in your stomach.

To which of the following does the statute of frauds apply?

A promise to pay the debt of another person

On a failure to warn claim, adequate warnings and instructions for a product's safe use can shield a manufacturer from liability for a:

A properly manufactured and designed product

In regard to strict liability in tort, which of the following is true in the case of a seller of used goods?

A seller of used goods is strictly liable for defective repairs made by the seller.

An otherwise copyrightable work that is prepared by an employee within the scope of employment, is called a(n) __________ and belongs to the __________.

A work for hire, employer

In CASE 11.1 Association for Molecular Pathology v. Myriad Genetics, Inc. (2013), the U.S. Supreme Court held that under U.S. Patent Laws isolated DNA is:

not eligible for patent protection because it is naturally occurring.

In CASE 11.2 American Broadcasting Companies, Inc. v. Aereo, Inc. (2014), the U.S. Supreme Court ruled for American Broadcasting Companies, finding that Aereo had:

engaged in direct copyright infringement when it publicly performed ABC's live broadcasts.

The principal federal law prohibiting discrimination in employment on the basis of age is:

ADEA

Alice typically mows her own lawn whereas her neighbor pays to have her yard mown by ABC Law Service. Alice notices one day that an apparently new employee of ABC is mowing Alice's yard by mistake. She says nothing. When the employee asks for payment, Alice refuses on the basis that the yard mowing was a mistake and that she has no contract with ABC. Which of the following is true regarding whether ABC could recover against Alice?

ABC could likely recover on a theory of quantum meruit

The U.S. Supreme Court has held that in order for a public official or public figure to recover damages for defamation by a media defendant, there must be a showing of:

Actual malice

If a product valuable to society is unavoidably unsafe, the __________ determines whether the dangerous product is also defective.

Adequacy of the warning label

A(n) __________ contract occurs when one party is induced to enter a contract on a "take it or leave it" basis.

Adhesion

__________ includes demotions, reductions in pay or other actions that affect an employee's status in a tangible manner.

Adverse employment action

Fact Pattern 12-1 Ricardo, an Italian citizen, who is trained in a specialized form of computer programming that is highly in demand, is interested in coming to work in the U.S. A friend of his told him that he could come to the U.S., but that he would not be protected by U.S. employment laws and regulations. Ricardo also understands that a strictly enforced rule is that he could only work in the U.S. for three years. Ricardo is inclined to come to the U.S. but would like additional information regarding his rights and the process. Refer to Fact Pattern 12-1. Which of the following would enable Ricardo to work in the U.S.?

An H-1B visa

Which of the following does Executive Order 11246 require that federal contractors include in every nonexempt government contract?

An agreement not to discriminate in employment on the basis of race, color, religion, sex, or national origin.

The Fair Labor Standards Act requires that, with some exceptions, every employee be paid __________ for hours worked in excess of __________ hours in a workweek.

one and one-half the regular rate of pay; 40

According to the text, is an employer negligent for failing to protect an employee from being attacked by a dog, whether or not the dog is known to have abnormally dangerous propensities? (See the Labaj v. VanHouston case.)

An employer can be negligent for failing to protect an employee from getting attached by a dog, even if the dog is not known to possess abnormally dangerous propensities.

The Bilski v. Kappos case referenced in the text, involved a question of whether a business process explaining how buyers and sellers of commodities in the energy market can use hedging to protect against price fluctuations is patentable. How did the U.S. Supreme Court rule?

The court ruled that the claimed invention was not a patent-eligible process because it was an abstract idea.

In the McKennon v. Nashville Banner Publishing Co. case referenced in the text, after-acquired evidence of the plaintiff-employee's misconduct was introduced in a lawsuit filed under the ADEA. How did the U.S. Supreme Court rule?

The court ruled that under such circumstances, remedies available to the plaintiff should be limited to back pay and should not include reinstatement or front pay.

__________ of a contract occurs when one party knows ahead of time that the other party will __________.

Anticipatory repudiation, breach the contract

A(n) __________ mark is a real word whose ordinary meaning has nothing to do with a trademarked product.

Arbitrary

Liquidated damages are damages that:

Are agreed upon

Commercial transactions involving the sale of goods, movable personal property, are governed by which of the following?

Article 2 of the Uniform Commercial Code

Which of the following is true regarding assault?

Assault is an intentional, nonconsensual act that gives rise to the apprehension that a harmful or offensive contact is imminent.

Under the doctrine of __________, when a person voluntarily and unreasonably assumes the risk of a known danger, the manufacturer is not liable for any resulting injury.

Assumption of risk

Trudy, a female manager at ABC Company, was surprised to learn that one of her male employees had accused her of sexual harassment. Trudy denied all charges. After a long and expensive battle in court, the jury ruled in favor of ABC Company on all charges. A few days after the trial, Trudy's supervisor fired her for no apparent reason. Trudy obtained evidence in the form of interoffice memos that she was fired because of the charges brought against her. Trudy thought that was unfair because she was completely vindicated by the jury. Are any remedies available to her under Title VII?

At least one court has ruled that Trudy has a cause of action under Title VII based upon retaliation.

If a sales contract requires or authorizes the seller to ship goods by carrier, when does the risk of loss pass to the buyer if the contract does not require delivery at a particular destination?

At the time the goods are properly delivered to the carrier

The __________ doctrine imposes liability for physical injury to child trespassers caused by artificial conditions on the land.

Attractive nuisance

Which of the following will NOT create an express warranty under the UCC?

Expressing an opinion about the quality of the goods.

Fact Pattern 7-1 Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so he asked Prudence if she would hold the offer open for him for one week for $50. Prudence said sure, and the parties signed a contract to the effect that Prudence would hold the car. A few hours later, Bobby unexpectedly offered Prudence $3,500 for the car, and Prudence sold it to him on the spot. Danny decided to buy the car, but when he came by to pick it up the next day, it was gone. Prudence gave Danny his $50 back telling him that was her only obligation and that if he had any complaints, he could take it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it. Refer to Fact Pattern 7-1. What damages, if any, could Danny likely collect against Prudence in litigation over the car?

Compensatory damages consisting of $500

Conditions __________ occur when the mutual duties of performance are to take place simultaneously.

Concurrent

__________ damages compensate a party for losses that occur as a foreseeable result of the breach.

Consequential

Under the doctrine of __________, the plaintiff's negligence is an absolute bar to recovery against the defendant.

Contributory negligence

Paul attempted to hit Bruce without good cause; but Bruce ducked, and Paul hit Alice instead. Alice was shocked when she felt the blow because she had been looking the other way and did not see it coming. Which of the following is true regarding the cause of action, if any, Alice would have against Paul?

Based on the theory of transferred intent, Alice would have a cause of action against Paul for battery.

Which of the following is the exercise of dominion and control over the personal property, rather than the real property, of another?

Conversion

Which of the following is true regarding battery?

Battery is the intentional, nonconsensual, harmful or offensive contact with the plaintiff's body or with something in contact with it.

Ann promises to give Carlos $50 if he promises to sell her a business law book. This is an example of a(n) __________ contract.

Bilateral

Which of the following is a type of conditional promise?

Both a condition concurrent and a condition subsequent

Which of the following is an online agreement that appears on a website but does not require the user to take any action to express his or her consent to the agreement?

Browse-wrap agreement

When the seller provides the buyer with a document enabling them to pick up goods held at an independent warehouse, the risk of loss passes to the buyer when the:

Buyer receives the document entitling it to pick up the goods.

In CASE 13.1 Green v. Franklin National Bank of Minneapolis (2006), plaintiff sued her employer-Bank after a co-worker repeatedly called her "monkey" and used other slurs. In its decision, the court held for the __________, ruling that __________.

plaintiff, the statements were sufficient to create a "racially hostile" work environment but that the plaintiff could not recover because the defending employer took prompt and appropriate remedial action against the offending employee.

Fraud in the __________ occurs when a party is persuaded to sign one document thinking that it is another.

Factum

Trespass to personal property and conversion are different names for the same tort.

False

Which state court was the first to adopt the doctrine of strict product liability?

California

In 1963, the state of __________ became the first state to adopt the __________ theory, after the state supreme court decided the __________ case.

California, strict liability, Greenman v. Yuba Power Products

Which of the following is an example of an arbitrary trademark?

Camel

If a sales contract requires the seller to ship the goods by carrier and specifies the destination, the risk of loss passes to the buyer when the:

Carrier tenders the goods to the buyer at the specified destination

A __________ placed on a product indicates that the product has met the certifier's standards of safety or quality.

Certification mark

Chris sold Valerie a home containing a wood stove which could not be removed from the home without causing substantial damage. Shortly after the sale, Valerie sustained significant smoke damage due to a malfunction of the stove. She told Chris that she was going to sue him under the UCC. Chris told her that was not possible. Which of the following is true?

Chris is correct because the stove would likely be a fixture not covered by the UCC.

__________ purport to give an employer the right to recoup some or all of an employee's stock option gain if he or she goes to work for a competitor within a certain period of time following exercise of the option.

Clawback provisions

Under the doctrine of __________, the plaintiff's damages in a strict liability action may be reduced by the degree to which his or her own negligence contributed to the injury.

Comparative fault

Under federal law a retailer who had no role in the manufacture of a defective good may not be held liable to a consumer injured by the good.

False

Which of the following is true regarding computer software is considered a product subject to state product liability law?

Courts examining the issue have reached varying results regarding whether computer software is a product subject to state product liability law.

Under 2-711 of the UCC, a buyer has a remedy called "cover". What is cover and when can it be used?

Cover applies when nonconforming goods are delivered to the buyer, giving him the right to cancel the contract and buy the goods elsewhere with reimbursement for any extra costs.

If the promisee entered into the contract in order to discharge a duty he or she owed the third party, then the third party is a(n) __________ beneficiary.

Creditor

The practice of __________ occurs when an individual registers a famous trademark as an Internet domain name and then offer to sell the domain name to the trademark owner for a ransom.

Cybersquatting

Under federal law, manufacturers, but not sellers, may be held strictly liable for a defective product.

False

Which of the following are generally NOT subject to the employment-at-will rule?

Employees who have express employment contracts for a fixed term and public employees

The courts that have considered click-wrap licenses have generally found that the licenses are:

Enforceable

The FDA requires that manufacturers provide full labeling in __________ for nonprescription drugs sold in the United States mainland.

English only

The __________ is the primary enforcer of civil rights legislation in the United States.

Equal Employment Opportunity Commission (EEOC)

Under the Children's Online Privacy Protection Act, websites are prohibited from collecting personal information from children regardless of whether parental consent is obtained.

False

Under the UCC doctrine of commercial impracticability as applied by the UCC, a failure to perform is a breach even if performance is made impractical by an event unforeseen by the contract.

False

Void means the same thing as voidable in contract law.

False

Which of the following is generally true regarding an award of lost future earnings in discrimination cases?

Damages for lost future earnings may be awarded in addition to damages for front pay.

Which of the following is true regarding how damages may be awarded in a patent infringement case?

Damages may be awarded based on (1) the patent holder's lost profits, (2) the infringer's profits, or (3) a reasonable royalty for the infringer's use of the invention.

Which of the following is not a part of the measure of compensatory damages?

Damages to deter others from engaging in similar conduct

Fact Pattern 7-1 Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so he asked Prudence if she would hold the offer open for him for one week for $50. Prudence said sure, and the parties signed a contract to the effect that Prudence would hold the car. A few hours later, Bobby unexpectedly offered Prudence $3,500 for the car, and Prudence sold it to him on the spot. Danny decided to buy the car, but when he came by to pick it up the next day, it was gone. Prudence gave Danny his $50 back telling him that was her only obligation and that if he had any complaints, he could take it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it. Refer to Fact Pattern 7-1. Did Danny have any type of contract with Prudence, and if so what type?

Danny had an option contract with Prudence

Which of the following is true regarding the effect of death and incapacity on an offer?

Death or incapacitation of either party terminates an offer.

In a(n) __________, the employer guarantees that the participant will receive an annual benefit for life following retirement, or the actuarial equivalent of such a benefit, based on a formula in the plan regardless of contributions made or the plan's investment performance.

Defined benefit pension plan

A __________ defect occurs when, even though the product is manufactured according to specifications, it is unreasonably dangerous to users.

Design

__________ is the publication of statements derogatory to the quality of the plaintiff's business, to the business in general or to the plaintiff's personal affairs in order to discourage others from dealing with him or her?

Disparagement

Whether a contract is a bilateral or unilateral contract depends upon whether the sale of goods is involved.

False

Under the __________ doctrine, under certain circumstances, a person may infringe the copyright owner's exclusive rights without liability in the course of such activities as news reporting, education, scholarship, or research.

Fair use

A contract for the sale of land is governed by Article 2 of the UCC.

False

A counteroffer does not terminate the original offer.

False

A product liability action brought in tort generally permits recovery of economic damages suffered by a purchaser of an inferior or defective product whereas a breach of warranty action would not allow such a claim.

False

A tort is a type of civil or criminal wrong.

False

According to the text, most advertisements are treated as offers, rather than as invitations to negotiate.

False

An employer may not be held directly liable under tort law for the failure to use care in issuing a reference.

False

An illegal contract is generally considered a voidable contract.

False

As defined by the UCC, "good faith" involves the observance of objective reasonable commercial standards of fair dealing but there is no requirement as to honesty in fact.

False

Because other countries have applied principles of assumption of risk, the U.S. is the only country where the tobacco industry faces legal problems.

False

Courts enforce liquidated damages as a form of a penalty.

False

Generally, an offeror may not revoke an offer before the offeree has had a reasonable time in which to consider it.

False

Generally, prior to upholding a contract, a court will carefully scrutinize the value of consideration to be sure that the contract is a fair one.

False

In CASE 9.2 Coomer v. Kansas City Royals Baseball Corp oration (2014), the defendant argued that the spectator assumed the risk of a "flying hotdog."

False

In a unilateral contract, a promise is given in exchange for another promise.

False

In most states shopkeepers who detain and later release a shoplifter may be held liable for false imprisonment even if the detention was reasonable and based on reasonable cause.

False

In regard to a product liability action, a disclaimer of liability is generally effective.

False

Intent cannot be implied.

False

Many states have professional licensing statutes which provide that if a party to a contract does not have a required license, the other party must still pay and can sue in court for damages.

False

Most states in the United States have adopted strict product liability whereby an injured person may recover damages by showing that a defendant was negligent.

False

Only a licensed attorney can hold a power of attorney.

False

Procedural unconscionability is easier to prove in a commercial setting than when an individual consumer is involved.

False

Reliance damages are awarded in addition to expectation damages.

False

The Class Action Fairness Act of 2005 moved many class actions from federal courts into state courts.

False

The European Union applies strict liability to services.

False

The UCC applies identical rules concerning the sales of goods to merchants and nonmerchants.

False

The UCC has adopted the "mirror image" rule.

False

The UCC treats fixtures as goods.

False

The Uniform Computer Information Transactions Act is a federal law.

False

The United States is regarded as providing adequate privacy protection under privacy laws of the European Union.

False

The assumption of risk doctrine makes the manufacturer liable for a resulting injury.

False

The main holding in CASE 10.1, MacPherson v. Buick Motor Co. (1916), was Buick's liability without privity of contract with the buyer, MacPherson.

False

The tort of conversion requires that the defendant know that the goods belonged to the plaintiff.

False

The tort of malicious prosecution protects the right to enjoy the benefits of legally binding agreements.

False

To recover for a defective product, an injured person must be in a contractual relationship (privity) with the seller.

False

A(n) __________ mark is a coined term having no prior meaning until used as a trademark in connection with a particular product.

Fanciful

The preemption defense involves certain __________, which set minimum safety standards for products.

Federal laws

The CASE 11.3 Kirtsaeng v. John Wiley & Sons, Inc. (2013) involves the __________ which holds that once a copyright owner sells a copyrighted product, the owner cannot prevent its resale or transfer to others.

First Sale Doctrine

__________ are items of personal property attached to real property that cannot be removed without substantial damage.

Fixtures

In CASE 7.2, Kurashige v. Indian Dunes, Inc. (1988), plaintiff Kurashige, used Indian Dunes Park for motorcycle dirtbike riding. Prior to entering the park he signed a general release. Kurashige was injured and sued Indian Dunes. How did the court rule and why?

For the defendant, holding that the release was not unconscionable, and that all the risk was on the plaintiff.

Fact Pattern 12-1 Ricardo, an Italian citizen, who is trained in a specialized form of computer programming that is highly in demand, is interested in coming to work in the U.S. A friend of his told him that he could come to the U.S., but that he would not be protected by U.S. employment laws and regulations. Ricardo also understands that a strictly enforced rule is that he could only work in the U.S. for three years. Ricardo is inclined to come to the U.S. but would like additional information regarding his rights and the process. Refer to Fact Pattern 12-1. If Ricardo comes to the U.S. to work with appropriate documentation, for how long will he generally be authorized to work?

For up to six years

Under federal law, it is illegal to employ anyone under the age of __________, except in specified agricultural occupations.

Fourteen

If parties to a contract dispute a missing term, the court could simply fill-in the missing term using the __________ provisions of the UCC.

Gap-Filler

The __________ prohibits employers from using genetic information to make decisions about hiring, firing, or compensation.

Genetic Information Nondiscrimination Act

Fact Pattern 11-1 Samantha develops a new type of comb that effectively removes loose dog hair and eliminates problems with shedding. Samantha had never seen such a comb on the market and was very surprised when she received notification that she was being sued for patent infringement by the holder of a patent on a similar type of comb. Samantha investigates and determines that the earlier patent was valid. Her friend Harry, a first year law student told her that she could not be guilty of patent infringement because she was not aware of the earlier patent, and that she should proceed to at least sell the rest of her inventory. Refer to Fact Pattern 11-1. Assuming the validity of the earlier patent, which of the following is true regarding Harry's statement that Samantha could not be guilty of patent infringement because she was unaware of the earlier patent when she began marketing her combs?

Harry was incorrect, and Samantha can be held liable for direct patent infringement.

Fact Pattern 9-1 Frank belongs to the same country club as his former physician, Dr. Bozo. Frank recently started dating Dr. Bozo's former wife, Alice, and decided to find a new physician. Frank found out that Dr. Bozo has been telling their mutual friends at the club about Frank's high blood pressure and problems with anxiety. Frank is very angry, confronts Dr. Bozo on the golf course, and tells him that he is going to sue him under a federal law protecting medical information. Dr. Bozo laughs and says in front of a number of Frank's golfing buddies, "I'm not surprised that you're going nuts and that you have high blood pressure—hanging out with Alice has done that to many a man." Refer to Fact Pattern 9-1. What right of action, if any, would Frank have against Dr. Bozo?

He could not sue Dr. Bozo directly under any federal statute enacted to protect privacy rights, but he could likely prevail in a common law action for the public disclosure of private facts.

Employers must complete a(n) _____ form showing verification of the identity and employment eligibility of all persons hired.

I-9

__________ occurs when a __________, such as the name, address, Social Security number, and/or name of the employer, and then uses this information to access the victim's credit.

Identify theft, thief steals personal information

Which of the following is true regarding employment laws within the European Union?

In order to facilitate trade, the European Union has mandated that all member states apply the same laws regarding employment.

Which of the following is true regarding acceptance?

In the absence of a provision in an offer regarding how acceptance is to be made, acceptance is effective upon dispatch into a mailbox.

Some courts have recognized a form of employee trade secret misappropriate under the __________ Doctrine, which recognizes that former employees who go to work for a competitor in a similar capacity will eventually disclose trade secrets gained in their former employment.

Inevitable disclosure

A court order prohibiting a defendant from continuing a certain activity would be called a(n):

Injunction

The tort of negligence does not include the element of:

Intent

Under Section 2-207(2), if only one party is a merchant, an acceptance containing additional terms:

Is considered a proposal for additions to the contract

Which of the following is generally true regarding front pay in discrimination cases?

It is equal to what the employee would have received had he or she not been discharged and is generally awarded when reinstatement is inappropriate.

Priscilla bought a new CD with her favorite Christmas music on it. She promptly proceeded to copy it for 15 of her best friends, including Brenda, and provided it free of charge. Unknown to Priscilla, Brenda's brother, Chris, was a member of the band. When he found out how Brenda got the disk, he angrily called Priscilla and accused her of copyright infringement. Is he correct that Priscilla is guilty of copyright infringement?

It is likely that Priscilla would be found guilty of copyright infringement.

Fact Pattern 11-2 Professor Peter enjoys using a small manual containing information on employment laws in his business law class. The manual costs $100 and is published by We Publish book publishers. Because Professor Peter wants to save his students some money, he copies the manual and has ABC Copy Store make copies for students. Students are required to purchase the copies directly from the copy store. Professor Prudence, who dislikes Peter because she believes he blocked her tenure application, hears about the deal and notifies the publishing company. The publishing company demands that the process be stopped and prepares to seek damages. Refer to Fact Pattern 11-2. Can Professor Peter be found guilty of copyright infringement?

It is likely that he would be found guilty of copyright infringement particularly since he arranged for copying of the entire manual, not limited sections.

Which of the following is true regarding a mistake of judgment?

It is not a valid defense to enforcement of a contract

What is the major provision of the Equal Pay Act of 1963?

It mandates equal pay for equal work without regard to gender.

What is the major provision of the Civil Rights Act of 1866 (Section 1981)?

It prohibits racial discrimination by employers of any size in the making and enforcement of contracts, including employment contracts.

Under the Convention on Contracts for the International Sale of Goods (CISG), an offer becomes effective when:

It reaches the offeree

Which of the following is true regarding the Gramm-Leach-Bliley Financial Modernization Act?

It requires that financial institutions provide privacy protections to consumers, that customers be given notice before the sharing of personal information with other entities occurs, and that customers be given the right to opt out of disclosures to third parties.

A few years ago Bernice purchased some medication through her veterinarian for her aging pet iguana, Scales, who had a skin disease. Scales died a few months after beginning the medication. At the time of the death, Bernice thought that Scales had died of natural causes. She just read in the newspaper, however, that a number of reptilian type animals had been harmed by the drug Scales ingested. Bernice immediately talked to her veterinarian who told her that while she now believes the medication was harmful to Scales, it was manufactured by a number of different manufacturers, and there is no way to determine the exact manufacturer of the medication given to Scales. Which of the following is Bernice's best chance at recovery?

Market-share liability

Fact Pattern 7-2 Hester offers to sell her house to Frank for $250,000. Frank says that he would like to think about it, and Hester says that is fine. The next day, Martha, Hester's friend, says that she will give Hester $240,000 for the house. Hester really likes Martha more than Frank and signs a contract to sell the house to Martha. Later that day Hester sees Frank walking up her driveway. She immediately opens the window and yells "I revoke the offer on the house" before Frank says anything. Frank replies that he accepts the offer and expects to purchase the home. Frank tells Hester that while he has not yet taken steps to sell his own home or get a loan, he feels confident that there will be no problem with those matters and he is a ready, willing, and able buyer. Refer to Fact Pattern 7-2. Which of the following is true regarding whether Hester's attempted revocation was effective?

It was effective because Hester issued the revocation before Frank could accept.

Which of the following is true regarding Japan's discrimination protection?

Japanese statutory law prohibits sex discrimination.

Polly sold Jason a used car for $1,000. Their contract provided that the engine in the car was in good shape, a true statement as far as Polly knew. Unfortunately, the day after Jason purchased the car, it broke down and was discovered to have significant engine problems. Jason told Polly that he wanted a refund. Polly told him that he was not entitled to a refund because she did not lie and that as far as she knew, there was nothing wrong with the car. Which of the following is true?

Jason is entitled to a refund because of a breach of an express warranty.

Under the doctrine of __________ liability, once the court determines that multiple defendants are at fault, the plaintiff may collect the entire judgment from any one of them, regardless of the degree of that defendant's fault.

Joint and several

In a state that had adopted the Uniform Electronic Transactions Act, Kiera and Ben entered into a contract whereby Ben would clean Kiera's house once a week for eighteen months for $75 per week. The transaction was done electronically, and both Kiera and Ben signed through the use of an electronic signature. Unfortunately, problems resulted when Ben failed to show up as scheduled. Ben told Kiera that the contract was not good because his signature was made electronically. Kiera told him that he was wrong and that he needs to get up to date with the modern age. Which of the following is correct regarding the dispute?

Kiera is correct that her electronic signature is sufficient

An example of a fanciful trademark is:

Kodak

The federal trademark act is known as the __________ Act.

Lanham

What does the term respondeat superior mean?

Let the master answer

Written defamation is known as:

Libel

A statute of __________ prevents recovery for product injuries by limiting the time period for recovery from the date when the injury occurred.

Limitations

Programs in effect in some states requiring employers to pay employees wages approximating the real cost of living in the locality are called __________ ordinances.

Living wage

Which of the following is NOT a rationale of strict product liability?

Manufacturers should not escape liability simply because they acted negligently as opposed to intentionally.

A product that was sold without a component part properly fastened to the product is an example of a __________ defect.

Manufacturing

__________ do not relieve a contracting party from their responsibilities under the UCC doctrine of commercial impracticability.

Market fluctuations

Under the UCC, a firm offer only applies to:

Merchants

When an idea and its expression are inseparable, the __________ doctrine dictates that the expression is not copyrightable.

Merger

Fact Pattern 13-1 Sam, who is age 60, was told by Big Company that he was being laid off. Sam was offered a severance package of $5,000 if he would waive his rights to sue for age discrimination under the Age Discrimination in Employment Act. Sam believed that his age was a factor in the decision to lay him off; but he really needed the money, so he signed an agreement whereby Big Company agreed to pay him $5,000 and he agreed to waive his rights against Big Company for age discrimination. Sam was given seven days to consider whether to enter into the agreement, and the agreement provided that it was final the date it was signed. Refer to Fact Pattern 13-1. Did the agreement Sam signed comply with the Older Workers' Benefit Protection Act?

No, because it did not give Sam at least twenty-one days to consider whether to enter into the agreement, and also because it did not give Sam at least seven days following execution of the agreement during which he could revoke it.

A defendant is not liable for trademark infringement if its use is __________ use, meaning that it uses the mark to talk about the mark itself.

Nominative

The defense of __________ is available when a trademark user truthfully uses a competitor's mark to identify the competitor's product for the user's own purposes.

Nominative use

In CASE 12.2 Edwards v. Arthur Anderssn LLP. (2008), plaintiff Edwards was a tax manager at an Arthur Anderson office in Los Angeles. Arthur Anderson was later indicted for its role in the Enron debacle, but an AA subsidiary HSBC offered to hire Edwards conditioned on signing a "termination of non-compete" agreement (TONC). Edwards signed the employment offer but not the TONC. The offer was rescinded and Edwards was terminated. Edwards sued. The main issue dealt with California's statutory ban on most:

Noncompete agreements

Fact Pattern 7-1 Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so he asked Prudence if she would hold the offer open for him for one week for $50. Prudence said sure, and the parties signed a contract to the effect that Prudence would hold the car. A few hours later, Bobby unexpectedly offered Prudence $3,500 for the car, and Prudence sold it to him on the spot. Danny decided to buy the car, but when he came by to pick it up the next day, it was gone. Prudence gave Danny his $50 back telling him that was her only obligation and that if he had any complaints, he could take it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it. Refer to Fact Pattern 7-1. What damages, if any, could Danny likely collect against Bobby in litigation over the car?

None

Which of the following allows the filing of a lawsuit previously barred by the running of the statute of limitations?

None of these choices because any such law would be unconstitutional

Employees who must be paid both minimum wage and overtime as required by the Fair Labor Standards Act are referred to as __________ employees.

Nonexempt

Which of the following are defenses to patent-infringement claims?

Noninfringement, invalidity of the patent, misuse of the patent, and innocent infringement

In the classic case, Palsgraf v. Long Island Railroad (1928) discussed in the text, the court denied Mrs. Palsgraf's claim of negligence on the ground that her injuries were __________, therefore the railroad employee's actions were not __________ of her injuries.

Not foreseeable, proximate cause

Which of the following is a technique by which a new party is substituted for one of the old parties, and a new contract is written (with the consent of all old and new parties) to effect the desired change?

Novation

The wrongful interference with the right to the quiet use and enjoyment of land is associated with the tort of:

Nuisance

Which of the following are included within OSHA requirements regarding posting of information?

OSHA requires that notices of any potentially dangerous conditions be posted and also that citations for penalties be posted.

The federal agency responsible for enforcing the provisions of the Occupational Safety and Health Act is the:

Occupational Safety and Health Administration.

Denial of promotion in retaliation for a person's refusal to respond to his or her supervisor's sexual advances is referred to as __________ harassment.

quid pro quo

An agreement between two parties that provides that the seller will sell all of a product that he produces to the buyer is called a(n):

Output contract

Fact Pattern 12-2 Paige is 64 years old and would like to retire from her job at a large accounting firm. She, however, is concerned about health insurance. She would not be eligible for Medicare benefits until age 65, and due to some serious health conditions, she would not be able to obtain insurance in the private market. She has good health insurance at the accounting firm and is considering putting off her retirement so that she can keep it. Refer to Fact Pattern 12-2. Assuming Paige exercises her rights under federal law to maintain her insurance with the accounting firm upon her resignation, which of the following is true regarding the premiums?

Paige would have to pay all the premium

Under the __________ rule, when a contract is unambiguous any evidence of contemporaneous statements are __________in court.

Parole evidence, inadmissible

The term __________ is used to describe a nonpracticing entity that purchases one or more patents with the intent to enforce the patents against infringers, rather than to manufacture a patented product or supply a patented service.

Patent troll

What are the four basic types of intellectual property?

Patents, copyrights, trademarks, and trade secrets

Renee owns a small restaurant that sells hamburgers as one of its main attractions. She puts up a sign that says "Best Burgers in the County". Peter does an exhaustive investigation of all restaurants in the county and asks his friends to do the same. They all determine that actually a restaurant run by their friend Sam has the best burgers in the county. Peter tells Renee that unless she takes down her sign, he is going to sue her for breach of warranty and false advertising. Renee tells him that he has no cause of action. Who is correct?

Peter is incorrect because Renee was engaged in "puffing"

A contract is __________ when one party is induced to enter a contract without having any meaningful choice.

Procedurally unconscionable

What type of efficiency exists when competition among individual producers drives all but the lowest-cost producers of goods or services out of the market?

Productive

Which of the following is NOT one of the basic elements for formation of a valid contract?

Promissory estoppel

Fact Pattern 10-1 Polly buys a new iron and uses it for a few months without incident. She was surprised, however, when one day the iron gave her a significant shock. She suffered no lasting damages, but did have some pain from the incident. A few weeks later she read in the newspaper that the manufacturer had known for over a year about the iron's propensity to shock users, but had refused to take recall measures. She also read that some users had been severely shocked. Polly was outraged but wondered if she could sue because she really did not have significant injuries. Refer to Fact Pattern 10-1. What type of damages would likely give Polly the most significant recovery?

Punitive

Under which of the following systems may a plaintiff recover for any amount of the defendant's negligence, even if the plaintiff was the more negligent party?

Pure comparative negligence

Under the UCC, the __________ term(s) must be in a writing order to satisfy the statute of frauds.

Quantity

Title VII prohibits discrimination based on which of the following?

Race, color, religion, national origin, or sex

CASE 10.2 Branham v. Ford Motor Co. ( 2010) was reversed and remanded for a new trial, with plaintiff ordered to prove the __________ approach, after the court adopted the __________ regarding defective product claims.

Reasonable alternative design, Restatement (Third)

The Semiconductor Chip Protection Act of 1984 created a highly specialized form of intellectual property, called a(n):

Registered mask work

Which of the following are damages that compensate the plaintiff for any expenditures it made in reliance on a contract that was subsequently breached?

Reliance damages

An agreement between two parties that provides that the buyer will buy all of a particular product from a particular seller is called a(n):

Requirements contract

UCC Section 2-319 expressly authorizes the buyer and seller to allocate the __________ between them as they see fit.

Risk of loss

In CASE 7.1 SIGA Technologies, Inc. v. PharmAthen, Inc. (2013) the main issue before the Supreme Court of Delaware was whether:

SIGA had breached its obligation to negotiate the licensing agreement in good faith.

Sneaky opened a new dress shop catering to college aged students. Sneaky advertised for sales associates but would only hire applicants who had been trained in computer skills in high school. Sally, age 50, was denied employment on the basis that although she was highly skilled in computer usage, she obtained her training after high school. Computer training was not available in Sally's high school nor was it typically available in high schools during that time period. Sally sued for age discrimination. Sneaky denied liability pointing out that his advertisement only referred to computer training. It in no way referenced an age requirement. Sneaky claimed that the fact that all his associates were younger was simply a coincidence. Which of the following is true regarding Sally's claim?

Sally should win under a disparate impact theory if she can show that the requirement systematically excludes individuals protected by the Age Discrimination in Employment Act.

A descriptive mark that is initially unavailable for protection can still become protectable if it acquires __________ meaning.

Secondary

The term, "Holiday Inn" has a(n) __________, because the public associates the term with a particular provider of hotel services.

Secondary meaning

A __________ is used in conjunction with services.

Service mark

Which of the following is not a type of U.S. patent?

Service patent

Roxanne has a serious heart condition. She has worked as an administrator with employer-sponsored health insurance at Big Company for ten years. She has been offered a great job at Up and Coming Company that she would like to take. It pays slightly less but has great opportunities for advancement. Up and Coming has health insurance, but there is a preexisting condition with the insurance excluding coverage for any preexisting health condition for six months. Roxanne says that if she takes the job at Up and Coming she will not be able to afford to continue her health insurance from Big Company. Up and Coming wants her to start immediately. She is in a quandary about what to do. What would you advise her to consider?

She should consider relying on the Health Insurance Portability and Accountability Act which would likely prohibit enforcement of the preexisting condition exclusion.

Fact Pattern 11-1 Samantha develops a new type of comb that effectively removes loose dog hair and eliminates problems with shedding. Samantha had never seen such a comb on the market and was very surprised when she received notification that she was being sued for patent infringement by the holder of a patent on a similar type of comb. Samantha investigates and determines that the earlier patent was valid. Her friend Harry, a first year law student told her that she could not be guilty of patent infringement because she was not aware of the earlier patent, and that she should proceed to at least sell the rest of her inventory. Refer to Fact Pattern 11-1. Assuming the validity of the earlier patent, which of the following is true regarding Samantha's rights to legally continue selling the combs?

She should stop selling the combs immediately

Richard is starting a new security service. He tells his attorney, Kiera, that while he plans to prohibit all acts of discrimination and harassment, he cannot be all places at all times. Richard asks Kiera if there is anything he can do to limit his liability. What should she tell him?

She should tell him that he should have a policy provided to all employees offering to correct any offensive conduct, and that an unreasonable failure by an employee to take advantage of corrective opportunities offered through the policy would help him avoid liability.

A(n) __________ places the license terms on the outside of a box containing software.

Shrink-wrap license

Spoken defamation is known as:

Slander

Which of the following products has traditionally been viewed as "unavoidably unsafe" by the courts?

Some vaccines

Under the __________ defense, a manufacturer is not liable to a sophisticated user of its product for failure to wan of a risk harm, or danger if the sophisticated user knew or should have known of the risk, harm, or danger.

Sophisticated user

If a new law of general application indirectly affects a government contract, making the government's performance impossible, the __________ will protect the government in a subsequent suit for breach of contract.

Sovereign acts doctrine

If the contracted goods are unique and fail to be delivered, the buyer can ask a court under 2-716 of the UCC to order:

Specific performance

Which of the following is NOT a type of warranty under the UCC?

Specific performance

Scuba manufacturer designs and sells the best scuba gear on the market. All industry and governmental standards are met, and there is no better technologically feasible design than that used by the manufacturer. There had been no previous problems with the gear, but on one unfortunate day, the breathing apparatus on a unit malfunctioned resulting in a diver needing medical care. Assuming recognition in the jurisdiction involved, which of the following is the best defense to a lawsuit alleging a design defect brought by the diver?

State-of-the-art

A __________ cuts off the right to assert a cause of action after a specified period of time from the delivery of the product or the completion of the work.

Statute of repose

A contract is __________ if its terms are unduly harsh or oppressive or unreasonably favorable to one side.

Substantively unconscionable

CASE 9.1, Kubert v. Best (2013) examined the question of whether a third party who was not present, but was __________ the driver of the car who hit the plaintiff, had __________ the person who was injured.

Texting, a legal duty of care to

As a birthday gift, Ben's uncle promised Ben that he would pay Ben's business school tuition for the next semester. In reliance on that promise, Ben quit his part time job at a fast food restaurant. When the tuition bill became due, Ben's uncle told Ben that he was sorry but that he would not be able to pay the tuition because he just built a new swimming pool at his house, and funds were running short. Ben asks you if there is any basis upon which he could win in litigation against his uncle. Which of the following would be the best advice?

That Ben should sue based on promissory estoppel.

What must a plaintiff show to successfully sue for malicious prosecution?

That a prior proceeding was instituted against him or her maliciously and without probable cause or factual basis, and that the earlier case was resolved in the plaintiff's favor.

Ricardo develops a new type of software and asks you how he should go about making money through distribution of it. He has been told that he should sell the software as opposed to issuing licenses for its use. What should you tell him?

That by licensing, rather than by selling, a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy.

The PLIVA, Inc. v. Mensing case discussed in the text, involved the issue of whether the federal law requirement that generic drugs must bear the same FDA-approved labels as their brand-name counterparts preempts state law claims for failure to warn. What was the holding by the US Supreme Court?

That federal law preempted state law claims for failure to warn.

Fact Pattern 9-3 Alex and Blake got into a heated argument because Alex asked Blake's girlfriend out on a date. Blake decided that he wanted to scare Alex and drew back his fist to hit Alex. He stopped just as he was about to strike Alex in the nose. Alex yelled out, "You didn't scare me. I was ready for a fight!" Later, Alex decides that he would like to sue Blake and asks your advice on issues involving assault and battery. Refer to Fact Pattern 9-3. What would you tell Alex regarding whether he should sue Alex for committing a battery?

That he could not win in an action for battery because Blake did not actually strike him

Fact Pattern 9-3 Alex and Blake got into a heated argument because Alex asked Blake's girlfriend out on a date. Blake decided that he wanted to scare Alex and drew back his fist to hit Alex. He stopped just as he was about to strike Alex in the nose. Alex yelled out, "You didn't scare me. I was ready for a fight!" Later, Alex decides that he would like to sue Blake and asks your advice on issues involving assault and battery. Refer to Fact Pattern 9-3. What would you tell Alex regarding whether he should sue Blake for committing an assault?

That it appears that the necessary elements are present for him to succeed in an action against Blake for assault so long as he can show apprehension of being struck.

In the Ricci v. DeStefano case discussed in the text, seventeen white and one Hispanic firefighters sued the City of New Haven. The plaintiffs alleged the city's refusal to certify test results of an examination, which would have made them eligible for promotion, was a violation of Title VII's ban on disparate treatment. How did the U.S. Supreme Court rule?

That the City of New Haven had engaged in illegal disparate treatment discrimination.

The Nat'l Treasury Emps. Union v. Von Raab case referenced in the text, involved the testing of U.S. Customs Service employees in line for transfer or promotion to certain sensitive positions involving drug interdiction or the handling of firearms. How did th e U.S. Supreme Court rule?

That the drug testing was justified by the need for national security and by the extraordinary safety hazards attendant to the positions involved.

In the Price Waterhouse v. Hopkins case referenced in the text, a female was denied partnership in an accounting firm after being told that to improve her chances for partnership, she should walk more femininely, talk more femininely, dress more femininely, wear make-up, have her hair styled, and wear jewelry. How did the U.S. Supreme Court rule?

That the employer committed sexual stereotyping constituting illegal discrimination.

CASE 13.2, EEOC v. Abercrombie & Fitch Stores, Inc. (2013) involved a question of whether a clothing retailer violated Title VII when it refused to hire a Muslim woman-applicant because she wore a head scarf in violation of its company dress code, and whether the applicant gave proper notice of a religious accommodation. How did the court rule?

That the employer did not violate Title VII because the applicant failed to give proper notice of a religious accommodation.

Following several injuries, a manufacturer of a chain saw installed an additional safety guard. In a lawsuit based on products liability, which of the following is the company's best position in opposition to a plaintiff's efforts to introduce evidence of the modification?

That the modification involved a subsequent remedial measure

In the International Union United Automobile, Aerospace & Agriculture Implement Workers of America, UAW v. Johnson Controls, Inc. case referenced in the text, employer Johnson Controls had a 'fetal protection policy' that essentially barred women from working in unsafe working environments unless the employee could medically document her inability to bear children. How did the U.S. Supreme Court rule?

That the policy was a facially discriminatory policy forbidden under Title VII because it did not also apply to the reproductive capacity of male employees.

CASE 10.3 James v. Meow Media, Inc. (2002) addressed whether a video game manufacturer was strictly liable for a teenager's shooting spree. What was the court's holding?

That the shooting was so aberrant as to be unforeseeable by the video game producer.

Fact Pattern 12-2 Paige is 64 years old and would like to retire from her job at a large accounting firm. She, however, is concerned about health insurance. She would not be eligible for Medicare benefits until age 65, and due to some serious health conditions, she would not be able to obtain insurance in the private market. She has good health insurance at the accounting firm and is considering putting off her retirement so that she can keep it. Refer to Fact Pattern 12-2. Which of the following would likely enable Paige to keep her insurance with the accounting firm until she is eligible for Medicare?

The Consolidated Omnibus Budget Reconciliation Act

The plaintiff in the Thompson v. North American Stainless, LP case referenced in the text , alleged he was fired as a retaliatory action because his finance had filed a complaint of discrimination against their mutual employer. The employer alleged he had no cause of action. How did the US. Supreme Court rule?

The Court ruled that the man was in the "zone of interests" and could sue for retaliation without limitation to his remedies.

In the Chevron USA, Inc. v. Echazabal case discussed in the text, the plaintiff claimed Chevron violated his rights under the ADA when it refused to allow him to work in its refinery because of plaintiff's liver disease and concerns regarding his health. How did the U.S. Supreme Court rule?

The Court ruled that under the ADA an employer is authorized to refuse to hire an individual if the individual's performance on the job would endanger his or her own health owing to a disability.

Which of the following provides whistleblower protection for employees who provide information of illegality to the SEC?

The Dodd-Frank Wall Street Reform and Consumer Protection Act

Which of the following federal laws governs most employer-sponsored retirement plans as well as many other types of employer-sponsored employee benefit plans?

The Employee Retirement Security Act

Which of the following is true regarding India's discrimination protection?

The Indian Supreme Court recognized sexual harassment in the workplace as a personal injury to the affected woman and a violation of her fundamental human rights.

Which of the following is true under the UCC regarding the requirement of privity in regard to a breach of warranty action?

The UCC has alternate provisions regarding the need for privity from which adopting states may choose.

Which of the following is true regarding the UETA in relation to the E-SIGN Act?

The UETA and also the E-Sign Act exclude wills from their coverage.

Based on the text, if employees sue a company who transmits their names and Social Security numbers to managers in the company in an unsecured manner, how might a court rule? ( See the Bodah v. Lakeville Motor Express, Inc. case.)

The court might rule that the employees could not proceed with an action for invasion of privacy because no publication of the information at issue occurred.

In the Holcomb v. Iona College case referenced in the text , a white assistant coach of a college basketball team alleged he was fired because he was married to an African American woman, and sued the college for violation of Title VII. How did the court rule?

The court ruled that Title VII protects employees from discrimination based on their association with a person of a different race.

Which of the following is NOT a part of a patent application?

The declaration of prior art

Which of the following is NOT true regarding product liability in the European Union according to the European Union product liability directive?

The directive applies to services as well as products

Assuming a jurisdiction permits noncompete agreements, which of the following is considered in determining whether restrictions are reasonable?

The duration of limitations, geographic limitations, and the scope of the activities prohibited

The duration of a copyright granted to a known individual, not a work done for hire, will be:

The life of the author plus 70 years

Which of the following is the majority approach when resolving contradictory terms in pre-printed forms? (See the Richardson v. Union Carbide Industrial Gases, Inc. case)

The majority approach is to apply the knockout rule with conflicting terms knocked out of the contract.

Which of the following members of the chain of distribution cannot be strictly liable in a products lawsuit?

The occasional seller

Fact Pattern 7-2 Hester offers to sell her house to Frank for $250,000. Frank says that he would like to think about it, and Hester says that is fine. The next day, Martha, Hester's friend, says that she will give Hester $240,000 for the house. Hester really likes Martha more than Frank and signs a contract to sell the house to Martha. Later that day Hester sees Frank walking up her driveway. She immediately opens the window and yells "I revoke the offer on the house" before Frank says anything. Frank replies that he accepts the offer and expects to purchase the home. Frank tells Hester that while he has not yet taken steps to sell his own home or get a loan, he feels confident that there will be no problem with those matters and he is a ready, willing, and able buyer. Refer to Fact Pattern 7-2. Which of the following is true regarding the offer to Frank assuming Hester's revocation was ineffective?

The offer was probably still open the next day because a reasonable length of time would not have expired.

Which of the following is true regarding patent misuse?

The patent holder is barred from recovering for any infringement of its patent during the period of misuse.

Which of the following is true regarding remedies for patent infringement?

The patent holder may seek preliminary and permanent injunctive relief and damages, as well as court costs and attorneys' fees.

Which of the following is the best defense to negligence?

The plaintiff contributed to his own injuries.

Which of the following must the plaintiff prove in an Age Discrimination in Employment case?

The plaintiff must prove by a preponderance of the evidence, which may be direct or circumstantial, that age was the but-for cause of the challenged employer decision.

Most courts require that a plaintiff prove reliance on an express warranty in order to recover damages.

True

Most states have adopted the Uniform Electronic Transactions Act.

True

Mutuality of obligation applies only to bilateral contracts.

True

Playing loud music late at night for recreation in a residential neighborhood can constitute a private nuisance.

True

Product liability is the legal liability manufacturers and sellers have for defective products that cause injury to purchasers, users, bystanders, or their property.

True

Strict liability in tort applies only to products, not to services.

True

The Federal Trade Commission takes the position that it is an unfair or deceptive trade practice under the Federal Trade Commission Act for firms to fail to honor their own privacy policies.

True

The Restatement (Third) requires that any claim of design defect be supported by a showing of a reasonable alternative design.

True

To which of the following does Article 2 of the UCC apply?

The sale of goods

The Statute of Frauds requires certain types of contracts to be evidenced by some form of written communication.

True

The UCC does not specifically define an offer or an acceptance.

True

To which of the following does the term "battle of the forms" refer?

The situation in which parties have neglected to bargain over items and then exchange standard printed forms resulting in confusion regarding the terms of the contract.

The UCC permits a contract to be enforced if the parties intended a binding contract, even though important terms may have been left open for later agreement.

True

The UCC requires an obligation of good faith in the performance of every contract or duty covered by the act.

True

Sally purchased a used toaster at a yard sale. The seller told Sally that although the toaster was over ten years old, she had not had any problems with it. Sally takes the toaster home and uses if for a few months. One day, however, as Sally was using the toaster, it malfunctioned and caused a small fire in Sally's kitchen along with significant smoke damage. Sally decides that she wants to sue the manufacturer of the toaster and that she is going to do so within one month of the fire. What would likely be the manufacturer's best defense in a strict liability in tort action brought by Sally?

The statute of repose

Which of the following is NOT typically true of a state workers' compensation statute?

The system is based on the principle that the risks of injury in the workplace should be borne by the state.

The implied warranty of fitness for a particular purpose may apply to merchants and nonmerchants alike.

True

Which of the following is true regarding the UCC's Statute of Frauds?

The writing must be signed by the party to be charged, not necessarily by all parties

Which of the following is true regarding drug testing of public and private employees by employers?

There are greater limits on drug testing in relation to public employees as compared to private employees because public employees have rights under the U.S. Constitution.

Fact Pattern 9-1 Frank belongs to the same country club as his former physician, Dr. Bozo. Frank recently started dating Dr. Bozo's former wife, Alice, and decided to find a new physician. Frank found out that Dr. Bozo has been telling their mutual friends at the club about Frank's high blood pressure and problems with anxiety. Frank is very angry, confronts Dr. Bozo on the golf course, and tells him that he is going to sue him under a federal law protecting medical information. Dr. Bozo laughs and says in front of a number of Frank's golfing buddies, "I'm not surprised that you're going nuts and that you have high blood pressure—hanging out with Alice has done that to many a man." Refer to Fact Pattern 9-1. Is there any federal law prohibiting Dr. Bozo from revealing Frank's medical history?

There is a federal law called the Health Insurance Portability and Accountability Act that prohibits the revelation of private medical information by health care providers.

Which of the following is true regarding genetic testing by employers?

There is a federal law prohibiting employers of over a certain number of employees from firing employees based on genetic information.

Which of the following is an example a statement made by a salesperson that would be considered "puffing"?

This copier is the best in the business

The main issue in CASE 8.1 Option Wireless, Ltd. v. OpenPeak, Inc. (2012) involved the so-called "knockout rule."

True

The tort of false imprisonment requires that the plaintiff either knew he or she was confined or suffered harm as a result of the confinement.

True

According to the UCC, if no amount of time is specifically stated, a firm offer provided by a merchant must be kept open for a reasonable period of time, up to:

Three months

Minerva told Prudence that Prudence could park her farm tractor on Minerva's land but only for one month. Two months later, Minerva is annoyed because the farm tractor is still on her land; and Prudence refuses to move it. Which of the following causes of action, if any, would Minerva have against Prudence?

Trespass

A court is not bound by the Restatement's formulation of product liability law.

True

A design defect may result from the manufacturer's choice of the product's materials.

True

A merger agreement is an agreement between two companies to combine into a single entity.

True

A minor may ratify a contract after reaching the age of majority.

True

A professional athlete injured during practice is deemed to have consented to the physical contact attendant to practice.

True

A promise that neither confers any benefit on the promisee nor subjects the promisor to any detriment is an illusory promise

True

A proposal by a sales representative that is subject to approval by the home office is not an offer.

True

A seller should enter into a contract of indemnity with a manufacturer giving the seller a right to reimbursement if found liable for a defect caused by the manufacturer.

True

A single set of facts may give rise to claims under more than one tort.

True

A statute of repose cuts off the right to assert a product liability action.

True

An objective standard is used in determining whether an offer has been made.

True

An unusual use that is reasonably foreseeable may be considered a normal use of a product.

True

Assumption of risk is a defense to the tort of negligence.

True

Consideration can be either a promise to do a certain act or the performance of the act itself.

True

Efforts to create a comprehensive uniform state law for software licensing have been largely unsuccessful.

True

For a defendant to be held strictly liable, the plaintiff must prove that the defect existed at the time the product left the defendant.

True

France requires bystanders to try and help those in danger if trying to help will not put the bystanders at risk.

True

Generally, if Tom's factory unforeseeably burns down through no fault of his own, Tom is discharged from his contractual obligation to manufacture widgets for Jerry.

True

If the use of a product carries an obvious risk, the manufacturer will not be held liable for injuries that result from ignoring the risk.

True

In certain cases a court may order specific performance rather than monetary damages.

True

Intent may be transferred.

True

Many states have applied Article 2 of the UCC to software licenses either directly or by analogy.

True

Which of the following is NOT a theory on which a product liability claim can be based?

Ultrahazardous activity

If the societal value of an inherently dangerous product outweighs the risk of harm from its use, it is known as a(n) __________ product.

Unavoidably unsafe

Miranda is a cashier at Super Store. Saturday is their busiest day. She tells her supervisor Sam that she needs to be off every Saturday because that is the religious holiday for the religion to which she has recently converted. What are Sam's obligations to Miranda?

Under the law, he must allow her to be off as requested, but only if she can establish that under the tenants of her religious beliefs she is doomed if she does not attend worship services regularly.

Under the doctrine of __________, a court may invalidate an agreement if one party had sufficient influence and power over the other as to make genuine assent impossible.

Undue Influence

Which of the following does NOT generally make a contract voidable?

Unilateral mistake of fact

Leave under the Family and Medical Leave Act is:

Unpaid leave

Which of the following is NOT true regarding current U.S. copyright law?

Use of a copyright notice is required

The __________ doctrine provides that copyright protection does not extend to the useful application of an idea.

Useful article

Which of the following provides some protection to defendants in that they establish a rebuttable presumption about how long consumers can continue to safely use a product?

Useful life statutes

A design dictated by function may be protected by a(n) __________ patent.

Utility

A contract entered into by a minor is:

Voidable

When may a defendant be held liable for vicarious copyright liability?

When he defendant has the right and ability to control the infringer's acts and receives a direct financial benefit from the infringement.

Which of the following is the essential consideration under the UETA for determining the validity of an electronic signature?

Whether the person intended the process or mark provided to act as a signature and whether it can be attributed to that person.

What type of statutes protect employees who report illegal activities going on within their company?

Whistleblower statutes

ABC Company manufactures a contraption meant to enable a rider to fly behind a ski boat. After a few months, ABC begins to hear of injuries when riders crash into water or boats. In hopes of escaping liability, the president of ABC Company decides to discontinue business and sell all assets to XYZ Company. The president of XYZ Company is excited to purchase the assets at a bargain price and help ABC avoid liability based upon the assertion of the president of ABC that XYZ cannot legally be held liable for the flying accidents. Which of the following is true in a majority of states applying the traditional successor liability rule?

XYZ Company will likely be held liable for the accidents based upon the transaction being entered into wrongfully in order for ABC Company to escape successor liability.

Fact Pattern 9-2 Blake lives in a jurisdiction that applies joint and several liability along with the doctrine of contribution. He was involved in a very unfortunate motor vehicle accident. Tony hit Blake's new Mercedes in the rear just as Cathy crossed the center line and sideswiped him. Blake's car was severely damaged, and Blake suffered from whiplash for a few weeks. Blake sued both Tony and Cathy. It was determined at trial that both Tony and Cathy were negligent, that Blake was not negligent, that Tony was 60% responsible for Blake's injuries, that Cathy was 40% responsible for Blake's injuries, and that Blake's total damages were $100,000. Refer to Fact Pattern 9-2. Assuming she has the financial resources or sufficient insurance, can Blake recover the entire $100,000 from Cathy?

Yes

According to the text, can an employer be held liable for negligence when an intoxicated employee causes an automobile accident after drinking alcohol at a company function? (See the Lev v. Beverly Enterprises-Massachusetts, Inc. , case.)

Yes, an employer can be liable to the plaintiff injured in the accident, based upon the principle of vicarious liability.

Helen tells her nephew, Bernard, that she will pay him $100 if he will stop smoking for six months. Helen was hopeful that if Bernard stopped smoking for six months, he would stop altogether. Bernard stops smoking for six months but then resumed his smoking. Helen will not pay him. She says that the type of promise she made cannot constitute a binding contract and that, furthermore, it was at least implied that he would stop smoking for good. Can Bernard legally collect $100 from Helen?

Yes, because his stopping smoking for six months, as agreed, was adequate consideration for the contract.

Fact Pattern 13-1 Sam, who is age 60, was told by Big Company that he was being laid off. Sam was offered a severance package of $5,000 if he would waive his rights to sue for age discrimination under the Age Discrimination in Employment Act. Sam believed that his age was a factor in the decision to lay him off; but he really needed the money, so he signed an agreement whereby Big Company agreed to pay him $5,000 and he agreed to waive his rights against Big Company for age discrimination. Sam was given seven days to consider whether to enter into the agreement, and the agreement provided that it was final the date it was signed. Refer to Fact Pattern 13-1. Does Sam have any rights to sue Big Company for age discrimination?

Yes, because the agreement did not comply with the Older Workers' Benefit Protection Act, Sam can sue the company for age discrimination without having to return the severance payment.

Fact Pattern 11-2 Professor Peter enjoys using a small manual containing information on employment laws in his business law class. The manual costs $100 and is published by We Publish book publishers. Because Professor Peter wants to save his students some money, he copies the manual and has ABC Copy Store make copies for students. Students are required to purchase the copies directly from the copy store. Professor Prudence, who dislikes Peter because she believes he blocked her tenure application, hears about the deal and notifies the publishing company. The publishing company demands that the process be stopped and prepares to seek damages. Refer to Fact Pattern 11-2. Can Copy Store be found guilty of copyright infringement?

Yes, copy stores can be found liable for copyright infringement for copying without obtaining permission.

Fact Pattern 9-2 Blake lives in a jurisdiction that applies joint and several liability along with the doctrine of contribution. He was involved in a very unfortunate motor vehicle accident. Tony hit Blake's new Mercedes in the rear just as Cathy crossed the center line and sideswiped him. Blake's car was severely damaged, and Blake suffered from whiplash for a few weeks. Blake sued both Tony and Cathy. It was determined at trial that both Tony and Cathy were negligent, that Blake was not negligent, that Tony was 60% responsible for Blake's injuries, that Cathy was 40% responsible for Blake's injuries, and that Blake's total damages were $100,000. Refer to Fact Pattern 9-2. Assume Tony or his insurer pays the entire amount and then attempts to recoup amounts from Cathy. Could Cathy be held liable for any amounts?

Yes, she could be required to pay her proportional share under a contribution theory.

In the Garcetti v. Ceballos case discussed in the text, Ceballos a deputy district attorney with the Garcetti's Los Angeles District Attorney's office, wrote a memo to his supervisors recommending they dismiss a case based on factual inaccuracies in the affidavit that secured a search warrant. Thereafter, Ceballos claimed he suffered retaliation and denial of promotion, and filed suit against the DA's office claiming violations of his First, Fourth and Fifth Amendment rights. The U.S. Supreme Court held:

against Ceballos, finding that his First Amendment right was not violated because Ceballos spoke as an employee of the DA's office, not as a citizen.

In quid pro quo sexual harassment cases and hostile environment cases, the employer is always vicariously liable under the __________ standard when a supervisor takes a tangible employment action against a subordinate.

aided-in-the-agency-relation

Fred sued Document Security Company, alleging he had suffered injuries to his hands as a result of attempting to fix a jam in one of Document Security's paper shredders. Fred alleged the shredder was defective because it failed to contain warnings regarding the dangers to fingers and hands while attempting to fix jams. In order to succeed, Fred will have to show:

foreseeable risks of harm could have been reduced or avoided by the provision of reasonable instructions or warnings by Document Security Company.

In the Harris v. Quinn case discussed in the text, the State of Illinois attempted to compel __________ chosen by Medicaid to pay their __________ fees to the bargaining representative representing their union.

home-care personal assistants, fair share

Courts in a minority of states have recognized a bad-faith exception to the at-will employment relationship called the:

implied covenant of good faith and fair dealing.

An impairment is a disability under the ADA only if it__________ an individual's ability to perform __________ as compared with most people in the general population.

substantially limits, a major life activity

An employee may use the Family and Medical Leave Act for:

the birth of a child, the care of a parent, a serious personal health condition rendering the employee unable to do his or her job.

Under the EEOC, gender will qualify as a BFOQ where a gender-based restriction is based on:

the rights of others to privacy.

In CASE 8.2 MacNeil Automotive Products, Ltd. v. Cannon Automotive, Ltd. (2010), MacNeil subcontracted with Canon Automotive to provide floor mats on automobiles. MacNeil claimed the mats were defective and breached the express warranty. The main question before the court was whether:

the sales talk was puffery or an express warranty.

In 1938, the FLSA set the first minimum wage at:

twenty-five cents per hour.