LSBS Midterm
When terms in contracts conflict, it is called:
the "battle of the forms"
Strict liability in tort rule in product injury cases is described in:
the Restatement (Second) of Torts Sect. 402A
The most important part of the Constitution with respect to businesses is:
the commerce clause
The first pleading is commonly called:
the complaint
The case that led in adopting a general rule imposing strict liability in tort was:
Greenman v. Yuba Power
Scienter means a defendant knew false information was being passed to another party
true
Shrinkwrap" agreements that come attached to products have no legal validity.
true
The Lanham Act helps provide trademark protection.
true
The Restatement of Contracts is an authoritative source that presents and summarizes the common law of contracts.
true
Under the common law of contracts, unlike under Article 2, an acceptance may not deviate from the terms of the offer without being either a rejection or a counteroffer.
true
Under the common law, a contract is not formed unless there is no question that an offer has been accepted. Article 2 provides that a contract can be formed in any manner, including "conduct" that shows an agreement between the parties
true
When the courts use the doctrine of promissory estoppel (detrimental reliance), it means that despite the lack of the elements of a contract, the court may require payment to be made as if a contract had existed
true
The U.S. Constitution was ratified and became effective in:
1789
____________ of the Uniform Commercial Code governs the law of commercial sales
Article 2
Which area of law is most likely to impact directly the finance and accounting departments of a company?
Credit regulation
George Washington presided over a convention at which the U.S. Constitution was drafted in which city?
Philadelphia
Tender is:
a valid and sufficient offer of performance under a contract
In an orderly society, law and the legal system help to:
all of the answers are part of the role of law
A trademark may be a:
all of the other choices
An invention must be which of the following to get a patent?
all of the other choices
An adversary system of justice does not:
all of the other choices are correct
In which of the following cases was the manufacturer held liable based on failure to warn:
all of the other specific choices are correct
Which of the following could be a trade secret?
all of the specific choices could be a trade secret
The defendant's reply to the complaint, in which the defendant admits or denies the allegations, is known as:
an answer
Postal authority is an example of:
an area states may not regulate
most federal judges are
appointed by the president
US. district courts:
are the trial courts of the federal system
_____________ judges are the only federal judges not appointed by the President.
bankruptcy court
The Napoleonic Codes were early examples of
civil law
Morality concerns:
conformity to rules of correct conduct within the context of a society, religion, or other institution
The motion to dismiss for failure to state a claim or cause of action (a demurrer) is an allegation by the:
defendant that the law furnishes no remedy for plaintiff's claimed injury
To begin the litigation process, the plaintiff must first:
determine in which court to bring the action
Under the ____________"whoever, with intent to convert a trade secret that is related to or included in a product that is produced for or placed in interstate or foreign commerce to the economic benefit of anyone other than the owner thereof, and intending or knowing that the offense will injure any owner of that trade secret" is subject to prosecution.
economic espionage act
Some companies have employees take ethics classes online, rather than attend a classroom lesson. One of the advantages to online classes is:
employees must be more attentive than when grouped in a large auditorium
A(n) ____________ is "an interest in land which (a) is or may become possessory and (b)is ownership measured in terms of duration."
estate
A(n) _______________ is created by a seller's promise or guarantee as to the quality, safety, performance, or durability of goods being sold.
express warranty
"Unless you say no, then you must buy my car for $5,000," says A. B says nothing. B must buy the car
false
A generic trademark is licensed to all firms in the same industry.
false
Acceptance of an offer must be conditional, unequivocal, and legally communicated to be effective
false
An intoxicated person has no capacity to contract.
false
Article 2A is a recent addition to the UCC that extends it to cover the sale of real estate in commercial transactions.
false
Before the UCC interstate contracts for the sale of goods were primarily governed by federal common law.
false
Freedom of contract means businesses may enter into any contracts they wish to.
false
If your laptop computer is stolen, and then sold by the thief to a buyer who does not know it is stolen (is "innocent"), new title is created for the innocent buyer
false
In contrast to the common law of contracts, a merchant's firm offer under Article 2 may be revoked within a reasonable time without consideration and is irrevocable with consideration for a period not to exceed 3 months.
false
Intellectual property must show some evidence of labor having been provided to create it for protection to be granted.
false
The basic elements of a contract are: offer, acceptance, consideration, genuine consent and court approval.
false
The statutes of frauds provision of the UCC states that contracts for the sale of goods worth $500.00 or more must be "sealed."
false
Under the UCC, an offeror may not impose a term in an offer that does not allow the offeree to change terms of the offer.
false
When the tort of interference with contractual relations occurs, the party responsible for the tort is the party who breached an existing contract.
false
You discover that the word "wheelbarrow" has not been registered as a trademark. You can register the word as your trademark so long as you are a producer of wheelbarrows and apply it to that product.
false
Sometimes states legislate on the same subject as Congress. If Congress passes a regulation:
federal regulation takes precedence over state laws that conflicts with the federal standards
The ________________ means that there are also responsibilities imposed on parties who commit to binding relationships in contracts.
freedom of contract
When commercial rent includes charges for lighting, cleaning, parking lot maintenance, etc it is referred to as:
gross rent
Ethics, in the context of business practitioners
has to do with rules or standards governing the conduct of members of a profession and how standards are put into action within an organization
The U.S. Constitution provides that the judicial power (the court system) is:
in one Supreme Court and in lower courts as Congress may establish
Intellectual property owners can sue for ________________ if their intellectual property is used without authorization.
infringement
Trademarks, trade names, patents, and copyrights represent a category of property called
intangible property
In cases involving businesses, where the public enters the business as a part of doing business, the law presumes the property:
is safe for public admission
If, instead of allowing a plaintiff to sue all manufacturers of a given product, a court allows defendants to bring in other manufacturers as defendants, this is known as:
joint and several liability
The ______________ evolved in commerce over the centuries.
law of contracts
19th century English courts referenced ______________ when resolving contract disputes.
lex maercatoria
_____________ means that the good "must be of a quality comparable to that generally acceptable in that line or trade."
merchantable
A binding promise may be defined as one:
none of the other choices
The commerce clause of the U.S. Constitution:
none of the other choices
Federal judges may be impeached for
none of the other choices are correct
In an affirmative defense:
none of the other choices are correct
The U. S. Supreme Court was created by:
none of the other choices are correct
The doctrine of judicial immunity means judges may:
none of the other choices are correct
There are ________ federal districts in the court system
none of the other choices are correct
There are limits on Congressional power to regulate commerce. Congress may not:
none of the other choices are correct
A manufacturing defect is one which:
occurred during the manufacturing stage and for which the consumer will be compensated
An amendment to the Constitution may be approved to become effective by:
passing 3/4 of the state legislatures after passing by a 2/3 vote in the Senate and House
Which is the correct order of stages for a typical lawsuit:
pleadings, discovery, pretrial, trial, appeals
If a defendant does not respond to the plaintiff's complaint the court will:
presume the claims of the plaintiff are true and grant the plaintiff the relief requested in the complaint
Which of the following is not a potential statutory limit on potential tort liability:
products made in foreign country under their liability laws for sale in the U.S.
Enforcement of law in a society is important because it:
provides some predictability and uniformity to the boundaries of acceptable conduct
A _____________ an unreasonable interference with a right held in common by the general public.
public nuisance
Which is not a stage in a typical lawsuit?
repose
The Constitution intends for the judiciary to have:
significant independence from the other parts of the government
Risk-utility balancing refers to the fact that:
some products cannot be made completely safe
One who by experience and expertise is aware of the possible health hazards associated with the use of a product and who has an obligation to inform its employees and customers of potential hazards is referred to as a:
sophisticated user
A landlord rented space to a furniture store that would provide a good business environment. The landlord rented the next space to an exercise studio. The studio was very noisy, causing the furniture store to lose business. The store owner complained to the landlord, who would do nothing. The store owner broke the lease before it was up and was sued by the landlord. The court would be likely to hold that:
the furniture store owner suffered constructive eviction
Unknown hazards products liability cases involve:
the largest dollar volume of products liability cases
The term of copyright protection is
the life of the author plus 70 years
The party claiming to have suffered an injury that the law can remedy is:
the plaintiff
The United States Constitution divides governmental power to prevent:
the tyranny the founders experienced under King George III
In the American court system:
there is a federal system and a similar system of trial and appeals courts in each state
Express contracts occur when:
there is a written or oral expression of intent by the parties to enter into a legally binding agreement
"Exxon" is an arbitrary and fanciful trademark.
true
"I will pay you $100 to not sell your $500,000 house to anyone else for the next month so I can see if I can get the money together to buy it," you say. "Ok," says the home owner. The $100 payment is an option contract.
true
"Thermos" is a generic mark.
true
A fee simple is the most common form of real property ownership
true
A voidable contract is a contract that one party has the right to avoid.
true
An offer is made to the offeree
true
Article 2 allows the parties to enter into a binding agreement even though the contract price is to be determined at a later date.
true
Companies that suffer from sales of counterfeit goods may take action to seize the goods.
true
Consideration is something of value in exchange for a promise
true
Contracts in many low income countries are more difficult and costly to enforce than they are in more developed countries.
true
Every state, except Louisiana, has adopted Article 2 of the UCC
true
If parties enter into a contract by mistake, the contract may be disaffirmed.
true
If the sale of a good involves services that are of greater value than the goods themselves, the contract falls under the common law, not Article 2.
true
In a case alleging interference with a contractual relation, the defendant must have known the plaintiff had a contract with a third party
true
In medieval Europe, rules governing trading among merchants developed called the law merchant.
true
Infringement means a seller causes confusion about the origins of a product by improper use of a trademark.
true
Intellectual property is also called intangible property.
true
Jones is "a merchant" under Article 2 even if he knows little about textile machinery but hires Smith as his agent to sell textile machinery. Smith has 25 years' experience in the textile industry.
true
Modern commercial law traces its roots to ancient rules known as the law merchant
true
Most contracts are bilateral.
true
Moveable property, or personal property, may be called chattel.
true
Not all promises are enforceable contracts.
true
Registration of a trademark helps in the process of obtaining protection in other countries.
true
Retired pesticide workers develop brain tumors. Evidence shows all were exposed to the chemical Kudzu. Kudzu has been around for 30 years, and this is the first sign of a problem with the product. In a lawsuit against the producer of Kudzu, the workers will likely:
win if the manufacturer did not undertake tests to determine effects on users
In response to declining public image and to internal problems, most corporations now have:
written codes of ethics
