Blaw 2
Which of the following principles under the Berne Convention of 1886 requires that each member nation protect artists of all signatory nations equally?
The national treatment principle
Which of the following is not a possible defense to a contract?
The offeree lost his job and can't pay anymore.
A(n) _____ is best described as an agreement presented on a take-it-or-leave-it basis or as the only chance the presented party will have to enter into it.
adhesion contract
A(n) _____ results from a false statement about a fact material to an agreement that the person making it believed to be true.
innocent misrepresentation
The mail-box rule is not applicable when there is _
instantaneous communication
Which of the following is not an element necessary to show a mutual mistake in a contract?
The mistake was so serious that the contract is unconscionable, that is, so unreasonable that it is outrageous
Which of the following statements is true of Sabbath laws?
These laws do not apply to contracts for obtaining necessities and anything related to health or survival.
When the courts deem a contract integrated, parol evidence is generally
inadmissible
Which of the following can be used as a defense to the enforcement of a contract?
lack of genuine assent
The effect of both _____________ and ____________ is that the victim can either rescind the contract or keep the contract and sue for damages.
negligent misrepresentation; fraudulent misrepresentation
Which of the following types of contracts does not fall within the statute of frauds?
Contracts for the sale of goods totaling less than $400
Which of the following can be in the form of an oral contract to be enforceable?
Mutual promises to marry
Which of the following is not a means of discharging a contract by operation of law?
Mutual rescission
A key feature of a voidable contract is that:
one or both parties have the ability to either withdraw from or enforce the contract.
In a unilateral contract, if one party's consideration is a promise, the:
other party's consideration will be an act.
When a party to a contract has so much more bargaining power than the other that he or she dictates the terms of the contract, then such a contract would likely be rescinded on which of the following grounds?
Unconscionability
Under the UCC, a(n) ____________ is an agreement whereby the buyer agrees to purchase all of his or her goods from one seller.
requirement contract
In which of the following situations would the contract in question be void?
An individual who has been adjudicated insane enters into a contract.
Which of the following types of contracts is required to be recorded in a written contract or memorandum?
Contracts for the sale of goods totaling more than $500
Which of the following refers to agreements in which parties pay consideration for the chance, or opportunity, to obtain an amount of money or property?
Gambling
Which of the following statements is true of the rights of an assignee to a contract?
An assignee cannot be assigned the rights to a contract when the contract is personal in nature.
Suppose KJI Inc. had contracted to buy 20 shirts from XYZ Shirt Retailers at $15 each and will sell the shirts at $25 each. XYZ fails to deliver the shirts and now ABC has to buy the same shirts for $17 each. If KJI brings a case against XYZ, the probable measure of recovery will be _
$40
A(n) ___________ contract is a contract in which one or both parties has the ability to either withdraw from or enforce the contract.
voidable
After a football game, Tyler and Austin want to enter into a contract together. Tyler is completely sober, but he knows Austin is very intoxicated and is so impaired that he is unable to understand the terms of the contract. If they enter into a contract, the contract would be
voidable
Section 16 of the Restatement of Contracts provides that contracts of an intoxicated person are _____ if the other party had reason to know that intoxication rendered the person unable to understand the nature and consequences of the transaction.
voidable
A(n) _____ is best described as a statement made in court, under oath, or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing.
admission
A ___ occurs when the patent holder issues a license to use the patented object only if the licensee agrees to buy some nonpatented product from the holder.
tying arrangement
Which of the following is not considered a material term?
Quantity Price Subject matter Parties
Which of the following is not an example of something that can be trademarked?
Book
For a court to enforce a promise, who must offer consideration?
Both sides
What is a patent?
It protects the expression of a creative idea and also the underlying idea.
Which of the following is not an element of fraudulent misrepresentation?
Justifiable reliance on the false statement by the innocent party A false statement about a material fact of the contract Intent to deceive All of these are elements required to prove fraudulent misrepresentation
Which of the following statements is true of trade secrets?
Lawful discovery of a secret through reverse engineering means there is no longer a trade secret to be protected.
Which of the following elements of a contract refers to the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms?
Legal capacity
Valerie is an incidental beneficiary to a contract. One of the parties to the contract breaches the contract. Valerie wishes to sue. Whom can she sue to enforce the contract?
Neither of the two parties
Do mutual promises to marry require a writing?
No, because mutual promises to marry do not fall within the statute of frauds
Suppose Bekah agrees to do bodywork on Fatima's car. In exchange, Fatima agrees to be a poker dealer at Bekah's underground casino. In the state where Bekah and Fatima live, there is a gaming statute that says all games of chance other than slot machines and the state lottery are illegal. Would the agreement between Bekah and Fatima be enforceable?
No, because part of this agreement violates a law and therefore, the agreement calls for crime.
Todd leaves his babysitter, Zach, a voice mail message saying, "I need someone to watch little Joey and Hilary on Friday night. If you can babysit on such late notice, I'll pay you an extra $40 on top of your usual rate. If I don't hear from you by 5 p.m. tomorrow, I'll assume we have a deal." If Zach does not call back, has a contract been created?
No, because silence under these circumstances will not constitute acceptance.
Each of the following is true of a mutual mistake of fact EXCEPT?
One form of a mutual mistake occurs when one party makes a mistake about a material fact, and the other party knows about the mistake
Suppose you are a donee beneficiary, if you have problems with the contract, whom can you sue?
Only the person who was supposed to perform for you
Which of the following is not a criteria necessary for a work to be copyrightable?
Original Creative Fixed A work must be all of these to be copyrightable
are best described as contractual obligations imposed by the courts in order to prevent one party from being unjustly enriched at the expense of another.
Quasi-contracts
are created by the courts to prevent one party from being unjustly enriched at the expense of another.
Quasi-contracts
Which of the following rights can be assigned?
Real property rights
Each of the following is true of the law of contracts EXCEPT?
The law of contracts serves as statutory law
Which of the following is true of authorized means of acceptance of an offer?
The means by which an offeree can communicate acceptance to an offeror can be expressly stated in the offer.
Which of the following indicates that the terms of an acceptance must reflect the terms of an offer?
The mirror-image rule
Which of the following statements is false regarding compensatory damages?
They are foreseeable damages that result from special circumstances arising outside the contract itself.
Suppose Frank owns a vintage Porsche in mint condition. He agrees to sell it to Smith, but the night before the parties are to exchange money for the title, a hurricane rips through Frank's town and collapses the roof of the garage into the Porsche. The car is no longer in mint condition or even sellable. The parties are thus discharged from their obligations under the contract. Why?
This is a situation arising from objective impossibility.
Which of the following is an exception to the preexisting duty rule?
Unforeseen circumstances
You are the head of a start-up company that makes several apps available for sale online. You have relatively small revenues in your first 2 months in business, and your business is headquartered in California. Should you register your trademark with the USPTO?
Yes, because your online sales can occur throughout the country and you want to protect their interstate use.
Usury occurs when:
a party gives a loan at an interest rate above the legal maximum.
In a(n) ______________ , the seller is treated as making an offer to accept the highest bid and therefore must accept it.
auction without reserve
A(n) _____ occurs when a party outside a primary agreement promises to fulfill one of the original party's obligations if the original party fails to fulfill it.
collateral promise
A _____ identifies the producers of a product as belonging to a larger group, such as a trade union.
collective mark
Removing 10,000 miles from the odometer on a pre-owned car before selling it is an example of:
concealment.
When an entire contract is conditioned on something else's occurring first, that first event is known as a(n) _
condition precedent
Paul pays a premium of $20,000 every year on a life insurance plan. The insurance company will have to pay his wife an annual pension of $30,000 on Paul's death. Thus, Paul's wife will be referred to as a _____.
donee beneficiary
A(n) _____ occurs when, after reaching the age of majority, a person states orally or in writing that he or she intends to be bound by the contract entered into as a minor.
express ratification
The _____ provides that others may reproduce a portion of a copyrighted work for purposes of criticism, comment, news reporting, teaching, scholarship, and research.
fair-use doctrine
In a contract made by a minor, the:
minor has the right to disaffirm the contract before or within a reasonable time of reaching the age of majority.
In contract law, _____ refers to having an erroneous belief about the facts of a contract at the time the contract is concluded.
mistake of fact
Agreements for a sale of goods in which the total price is $500 or more are required by the Uniform Commercial Code (UCC) to be recorded in a written contract. This writing need only state the:
quantity to be sold.
The mirror-image rule says that the terms of the acceptance must mirror
the terms of the offer
If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise:
to do the extra work is valid consideration.
In some states, courts consider the purpose of the licensing statute when determining the effect of the agreement. If a licensing statute is intended simply to generate revenue, then the contract of an unlicensed person is
valid
If a person has been adjudicated insane and has a guardian appointed, any contract the person attempts to enter into is:
void
Suppose your boss tells the people you work with, "If any worker shows up at my house on Saturday and helps me clean my pool for three hours, I will pay the worker $75." You show up and help with the pool cleaning. What type of contract did you and your boss create?
Unilateral contract
In a contract, _____ refers to a promise the courts will require the parties to obey
legal assent
In a liquidated debt,
once the debtor makes a different payment, the debt is satisfied and the creditor may not collect anything else
Suppose Victor promises to stop smoking cigarettes during the winter. What type of promise has Victor made?
A promise to refrain from doing something
Each of the following is an example of a discharge by mutual agreement EXCEPT?
Alteration of the contract
Which of the following terms refers to a future event that terminates the obligations of the parties to a contract when it occurs?
Condition subsequent
_ is best described as what a person will receive in return for performing a contract obligation.
Consideration
In employment contracts, what is the purpose of covenants not to compete?
It restrains an employee from competing with her boss for a designated period of time after she quits her current job.
Which of the following occurs when a party to a contract unjustifiably fails to substantially perform his obligations under the contract?
Material breach
Technically, minors can disaffirm contracts for necessaries, but they will still be held liable for the reasonable value of the necessary. Which of the following is generally an example of a necessary?
Medical services Shelter Clothing Food All of these
The minor's right to disaffirm is designed to protect the minor from competent parties who might otherwise take advantage of him or her. But most states have determined that the minor should not have the right to disaffirm which of the following types of contracts?
Minors should not have the right to disaffirm all of these types of contracts
If the terms of acceptance of a contract do not reflect the terms of the offer, which of the following prevents a contract from being formed?
Mirror-image rule
Which of the following elements is not necessarily required for a legally binding contract?
Money is exchanged
_ occurs when a party gives a loan at an interest rate exceeding the legal maximum.
Usury
This type of contract is not a contract because either its object is illegal or it has a serious defect.
Void contract
In which of the following cases is parol evidence inadmissible?
When a contract is deemed integrated by the courts
Which of the following statements is false?
With intended beneficiaries, contracting parties did not intend to benefit the third party with their contract.
Bruce agrees to lease Tim's commercial property until Bruce is offered a job from his dream company, Google. The condition to which Bruce and Tim are agreeing to is called:
a condition subsequent.
__ seeks to blend other agreements either into the final agreement or into something explicitly identified as being outside the final agreement.
A merger clause
Which of the following types of agreements is not a type of agreement that is generally illegal in many states?
Agreements for the sale of a used product
Which one of the following is considered to be a legally binding offer?
Auctions without reserve
What was the Supreme Court's ruling in Qualitex Co. v. Jacobson Products Co.?
Color can be trademarked.
Which of the following is a foreseeable damages resulting from circumstances arising outside the contract itself?
Consequential damages
_ are best described as foreseeable damages that result from special facts and circumstances arising outside a contract itself.
Consequential damages
Which of the following contractual duties would generally not be delegable?
Contract for a famous artist to paint a portrait
Which of the following falls under Article 2 of the Uniform Commercial Code (UCC)?
Contract for the sale of a good All contracts are governed by either common law or the Uniform Commercial Code (UCC). If the contract is for the sale of a good, it falls under Article 2 of the UCC; if it is for anything else, it falls under common law.
Which of the following contracts falls within the statute of frauds?
Contracts related to an interest in land
A court may prevent the offeror from revoking his offer under when which of the following occurs?
Detrimental reliance
One complication with contracts occurs when an assignor assigns two or more parties the same right, and confusion arises as to which party has the right to the contract. To solve this problem, the minority of states has adopted the __________, which states that the first assignee to give notice of assignment to the obligor is the party with rights to the contract.
English rule
Which one of the following holds that contracts that would normally fall under the statute of fraud if negotiated by the principal must be in writing even if negotiated by an agent?
Equal dignity rule
Suppose a 17-year-old, Kendall, enters into an agreement to purchase a Harley Davidson from an ad she saw in the paper. She will pay $1,000/month until the bike is paid off. After making the third payment, Kendall turns 18 and decides to move out of state. She e-mails the seller of the motorcycle and tells him not to worry because even though she is moving, she still intends to make her monthly payments to purchase the bike. The above scenario is an example of what legal concept?
Express ratification
The ___ provides that others may reproduce a portion of a copyrighted work for purposes of "criticism, comment, news reporting, teaching, scholarship, and research."
Fair-use doctrine
On the streets of New York, a man sells you a pocket watch for $20. He says all the watch needs is a new battery and it will be just like new and work perfectly. You buy a new battery for the watch, but the watch still does not work. The man selling the watch knew that the watch would not work, even with a new battery, but he told you it would anyway. The above scenario is an example of what?
Fraudulent misrepresentation
In determining whether the fair-use doctrine provides a valid defense to a claim of copyright infringement, Section 107 of the Copyright Act requires that the court weigh four factors. Which of the following is not a factor the Act considers?
How much money the copyrighted material should be worth 4 factors: The effect of the use on the potential market for or value of the copyrighted work The nature of the copyrighted work The amount and substantiality of the portion used in relation to the copyrighted work as a whole The purpose and character of the use
Which of the following is true of an accord and satisfaction?
If a creditor inadvertently cashes a debtor's "paid in full" check, he can repay the debtor the same amount within 90 days to invalidate an accord and satisfaction.
Which of the following examples has never been a way of identifying a contract under seal?
If both parties sign the contract, it is presumed to be under seal
is the possession of a mental or physical defect that prevents a natural person from being able to enter into a legally binding contract.
Incapacity
Which one of the following is most limited in taking legal action as a third-party beneficiary?
Incidental beneficiary
Suppose Joey and Mikey enter into a contract together. Joey says he will pay Mikey $100,000 to kill one of Joey's enemies. Both parties know this contract involves the undertaking of an illegal act. Under which element of a contract is this contract not enforceable?
Legal object
Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation?
Louis has not accepted the offer as required by the offeror, and there is no contract.
Suppose an operator of a weight scale certifies the weight of a good that is for sale. However, the accuracy of the scale used to weigh the good has not been checked in more than four years, even though the weight scale operator could have easily checked the accuracy of the scale. The scale gave an improper weight measurement that resulted in many problems with the shipping and sale of the product. The above scenario is an example of what?
Negligent misrepresentation
Donna is an accountant and decides to do her friend Mike a favor by filing his taxes for free. Mike is very thankful and tells Donna "I will pay you $500 for being so kind and generous!" Mike fails to keep his promise and does not pay Donna the $500. Donna then brings an action to have the promise enforced. Will the court hold that a contract exists?
No, past consideration is no consideration at all.
Suppose you hired the band Journey to perform at your event. Could Journey arbitrarily transfer their performing duties to Britney Spears to perform instead?
No, this duty is personal in nature and the performances would vary significantly.
_ is present when the party making the fraudulent assertion believed it was false or had no regard for whether it was true or false.
Scienter
Which of the following options is the best example of fair use of a copyrighted work?
Setting your DVR to record a television show that you will miss while at class
If no means of communicating the acceptance is specified, what type of means of accepting is generally not acceptable?
Telephone Mail E-mail Fax
Which of the following can be trademarked?
The Batman logo
How does the Universal Copyright Convention (UCC) differ from the Berne Convention of 1886?
The UCC allows members to make exceptions to common rules as long as they are not inconsistent with the essence of the treaty, whereas the Berne Convention does not.
Which of the following statements is false concerning liquidated damages?
The courts specify the amount of liquidated damages a plaintiff receives.
Which of the following examples falls under the domain of copyright law?
The full-length film "The Godfather"
Under what circumstance could lack of genuine assent apply to a contract?
The offeror engages in fraud and misrepresentation in concern to the contract.
Which of the following statements is true of copyrights?
Titles and short phrases are copyrightable.
is best described as those special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade the other and interfere with that person's ability to make his or her own decision.
Undue influence
Which of the following statements accurately brings out the difference between bilateral and unilateral contracts?
Unilateral contracts call for actions, not promises, whereas bilateral contracts involve promises in exchange for promises.
In which scenario is parol evidence permitted in court?
When contracts have been subsequently modified When contracts are conditioned on orally agreed-on terms When contracts are incomplete When there are voidable or void contracts All of these
In which of the following cases is the assignment of rights prohibited?
When the assignment increases the risk or duties the obligor would face in fulfilling the original contract
When is a contract voidable?
When the contract is entered into by a minor
Natalie promises Brett that she will pay him $1,000 for painting her house. Brett then agrees and purchases the painting materials, costing him $300. The following day Brett arrives at Natalie's house to paint but she had hired Kobe instead. Is Brett entitled to damages?
Yes, Brett relied on Natalie's promise and bought all the paints with his own money.
Suppose Jared purchases a life insurance policy. Life insurance policies do not vest until the promisee's death. Jared originally made his wife Carla the intended beneficiary, but now that they are divorced, he wishes to make his daughter Haley the beneficiary instead. Can Jared change the beneficiary?
Yes, because Carla's rights were not vested yet.
Paul appoints Kofi to act as his agent. Kofi enters into an agreement for Paul with John that cannot be completed within one year according to the contractual terms. Had Paul contracted directly with John would the agreement be within the statute of frauds and require a writing? Does the agreement between Kofi and John also require a writing?
Yes, pursuant to the equal dignity rulev
Suppose Xavier receives an offer to play on a minor-league hockey team a few states away from where he currently lives. He moves out of his apartment, turns down offers from other teams, and moves all his possessions to a new apartment close to the hockey arena. After moving there, Xavier is then told there is no position for him anymore! May he sue the hockey team?
Yes, this situation looks like promissory estoppel.
Suppose Susie enters into a contract that she would give Mikhail her trailer on four acres of wooded backcountry if he agrees to supply her with $25,000 of illegal cocaine and heroin. If Mikhail wanted to prove with oral evidence that the contract was void or voidable, could he?
Yes, void or voidable contracts are an exception to the parol evidence rule
To succeed on a claim for misappropriation of trade secret, a plaintiff must show:
a trade secret actually existed, and the defendant acquired it through unlawful means, and the defendant used the trade secret without permission
Agreements regarding marriage in which one party is gaining something other than a return on his or her promise to marry _
are within the statute of frauds and therefore must be in writing
The law of contracts is primarily
common law
For a promise to be enforced by the courts, there must be
consideration
Contracts that are required to be in writing by the statute of frauds include:
contracts of suretyship promises.
Equitable remedies are
court-ordered actions
_ restrict what an employee may do after leaving a company, and they often dictate where, when, and with whom an employee may work.
covenant not to compete
A(n) _____ is best described as a third party that benefits from a contract in which the promisor agrees to pay the promisee's debt.
creditor beneficiary
Ronald contracts with Saba to have her deliver some machinery to his factory. Saba then transfers her duty to Liam, a third party, who delivers the machinery to Ronald. In this scenario, the transfer of Saba's duties to Liam is an example of a(n):
delegation.
A party transferring her or his duties under a contract to a third party is referred to as the __
delegator
Nominal damages are primarily:
designed to signify that the plaintiff has been wronged by the defendant.
A key difference between trademark dilution and trademark infringement is that:
dilution requires that the mark be famous, which is not required by infringement.
A(n) _____________ is a third party who benefits from a contract in which a promisor agrees to give a gift to the third party.
donee beneficiary
When one party is forced to enter into a contract by the wrongful threat of another, the contract is voidable by the innocent party due to
duress
When both parties are mistaken about a current or past material fact, _
either can choose to rescind the contract
Which one of the following is a contract that arises from the conduct of the parties rather than their words?
implied
The legal principle of _____ means that both parties to a contract are equally responsible for an illegal agreement.
in pari delicto
Jason contracts with Kylie to paint her house. In exchange, the small amount of money that Jason owes to a local bank will be paid off by Kylie. In this scenario, the bank is referred to as the:
intended beneficiary.
When a counteroffer is made by an offeree, the original offer:
is terminated.
When there is no dispute over the amount of debt or existence of debt, it is referred to as a _
liquidated debt
A(n) ____________ occurs when a party unjustifiably fails to substantially perform his or their obligations under the contract.
material breach
A criteria for a work to be copyrightable is that it:
must be original and creative.
For an unliquidated debt, _
once the debtor pays the amount agreed on by both the parties, the debt is fully discharged
Lucas is planning to buy a house owned by Janet. He gives her an initial amount of $10,000 to hold the offer open for a 45-day period. Janet will deduct the $10,000 from the purchase price if Lucas purchases the property within those 45 days. If he does not, Janet can keep the $10,000 and offer the house to another party. Which of the following contracts does this scenario best illustrate?
option contract
The _____ makes oral evidence of an agreement inadmissible if it is made before or at the same time as a writing that the parties intend to be the complete and final version of their agreement.
parol evidence rule
The America Invents Act, passed by Congress in 2011,
provides the right to patent an invention to the first person to invent
If the offer is for a unilateral contract, the offeree can accept only by _
providing the requested performance
If a work is freely distributed without notice of copyright, it falls into _
public domain
If an offer merely authorizes certain modes of acceptance but does not condition acceptance on the use of those modes, use of an unauthorized means of acceptance:
results in a contract only after the acceptance is received by the offeror.
A contract is referred to as a(n) _____ when a court can void the illegal part of the contract and enforce the rest as long as they represent the main purpose of the original agreement.
severable contract
A trademark used intrastate is protected under _
state common law
Tracy offers Liam a job as a store manager at a liquor store, which she plans to open in a small property owned by her husband. The property is located near a school. Before Liam accepts the offer, the state passes a rule that liquor stores cannot be located within a five-mile radius of a school. In this scenario, the employment offer terminates due to:
subsequent illegality of the subject matter.
The term __ means the overall appearance and image of a product
trade dress
The term ___ means the overall appearance and image of a product.
trade dress
An agreement can be rescinded on grounds of _____, when one of the parties to the contract has so much more bargaining power than the other that he or she dictates the terms of the agreement.
unconscionability
A(n) ___________ is the result of an error by one party about a material fact. If both parties to a contract are mistaken about a material fact, either can opt to rescind it. This is known as a(n) __
unilateral mistake; mutual mistake
If a trademark is ____________, the holder of the mark may recover damages from an infringer who uses it to pass off goods as being those of the mark owner.
unregistered
