business law exam #3

2. The general rule is that, contracts entered into during minority can be disaffirmed as soon as they are formed. Which of the following is an exception to the rule?

Contracts affecting the title to real estate

28. Which of the following is an exception to a minor's right to disaffirm?

a. A contract for a student loan

38. What types of transactions are governed by the Uniform Commercial Code?

a. Contracts for the sale of goods

15. Unlike traditional contract law, modern contract law places a strong emphasis on...

a. Equality of bargaining power

23. A voidable contract...

a. Is a contract that one or both parties can cancel at their option

36. Most of the court's attention in trademark infringement cases is concerned with the...

a. Likelihood of confusion over the trademark

3. Pat is a rich boy whose parents supply him with every conceivable necessity of life. While still a minor, Pat buys a coat on credit from a men's store for $5,000. After wearing the coat for a while, Pat decides that it bores him and that he would like to disaffirm. Which of the following is most likely to be true? Assume that Pat is still a minor.

a. Pat can disaffirm the contract, and he must return the coat.

21. Which of the following factors have influenced the character of modern contract law?

a. The emergence of perceived differences in bargaining power b. The growing use of standard-form contracts c. Fewer face-to-face transactions

27. Which of the following is true about situations where a minor misrepresents her age to get an

a. Today, some courts allow a minor to disaffirm despite the misrepresentation

18. The ingredients that go into Kentucky Fried Chicken are known as a...

a. Trade secret

24. Generally speaking, advertisements do not constitute offers.

a. True

32. A void contract creates no legal obligations

a. True

37. The essence of a contract is that it is a legally enforceable promise or set of promises.

a. True

4. When determining the presence of the intent to accept, a subjective standard is used.

a. True

7. A trademark is any word or symbol used by a seller to identify its products from the competition.

a. True

8. Generally speaking, the UCC's rules for the definiteness of an offer make it easier to form a contract than traditional common law rules.

a. True

19. The Latin term, promissory estoppel, can be interpreted as...

b. A promise which another party took to be serious and thus created reliance upon the fulfillment of such promise

22. A contract for the sale of illegal goods is voidable

b. False

29. Under the common law mailbox rule, a signed acceptance to an offer with proper postage addressed to the following Pat "The Natural" Manning, Delaware, U.S.A., would be considered accepted the moment it was dispatched.

b. False

30. In a copyright infringement case, the successful plaintiff may recover either the damages sustained by the plaintiff or the profits realized by the defendant, but not both.

b. False

5. What can an offeror do to minimize the risk posed by the mailbox rule?

b. Include a receipt stipulation in the contract

35. Offers that fail to provide a specific time for acceptance are invalid because they are deemed to be indefinite

b. Likelihood of confusion over the trademark

12. Under the common law of contracts, an acceptance...

b. Must be the mirror image of the offer

11. "Bodybuilder" supplement-enhanced diet soup would be best classified as which type of mark?

b. Suggestive

6. Mr. Yellow delivers a stack of newspapers to Mr. Green's store to see if he wants them. A note attached indicates the stack of papers is $50. Mr. Green without communicating an acceptance sold the entire stack of papers to his customers. What is the status of the agreement between Mr. Yellow and Mr. Green?

b. There is a contract because Mr. Green accepted by implied action

31. If a 15-year-old is kicked out of their house, and therefore signs a one-year lease agreement on an apartment for $600 per month, what is true if they only live there 2 months (never paying the rent), break the lease and move-in with their grandparents? a. They may disaffirm the lease, and they won't have to pay anything

b. They may disaffirm the lease, but they will owe $1,200 for the two months they lived there

26. Which of the following is normally an acceptance?

c. A "grumbling acceptance"

25. Contract Law that emerged in the U.S. during the 19th century held as its central principle...

c. Meeting of the wills (freedom of contract)

39. The most flexible form of law governing contracts in the U.S. is...

c. The Uniform Commercial Code

33. Which is true of a good faith contract with the mentally impaired, in which the other party had no reasonable cause to know of the incapacity?

c. The contract cannot be dissolved unless the party is placed in status quo.

14. A unilateral contract is executed when...

c. The offeree fulfills some duty specified by the offeror

34. Raj went to the Gilroy Artichoke Harvest Festival and stopped at Tina's booth where she was selling paintings of Artichokes. Raj admired on of the paintings, which did not appear to be for sale. Raj said to Tina, "I will give you $200 if you give me that painting right now." Tina gave Raj the painting, and Raj gave her $200 in cash. This is an example of a contract that is...

c. Unilateral and executed

9. Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this?

d. A bilateral contract

17. Which of the following is not eligible for trademark protection?

d. A generic term

10. What is the term to describe a plaintiff's failure to exercise reasonable care for her own safety?

d. Assumption of risk

20. An executory bilateral contract is one that...

d. Has been fully performed by both parties

40. Mike Minor buys some real estate as investment. The contract obligates Mike to make monthly installment payments for 10 years. Mike reaches the age of majority one month after making the contract. After this, Mike makes 25 monthly payments under the contract, but then decides that he wants to rescind the deal. Which of the following is most true?

d. Mike cannot disaffirm because he has already ratified the contract

13. What can the plaintiff usually elect to receive in lieu of the basic remedy in a case of copyright infringement?

d. Statutory damages

16. Which of the following is least likely to fall within the scope of what is protected by the copyright on the work in which it appears?

d. The theme of a short story

1. Capacity is the ability to enter into legal obligations

true