FINAL EXAM BUSINESS LAW CUSTIN
Court's jurisdiction over out-of-state defendants.
A "long-arm" statute allows:
Tort
A ______ is a civil wrong other than a breach of contract.
Complaint
A ________ must state the remedy requested in the case.
False
A defendant must be more than 25% at fault before the plaintiff can recover, according to the pure comparative negligence defense.
Which statement would NOT be considered an example of consideration?
A promise to pay your employees as required by law
In general, which of the following is least likely to unconstitutionally burden interstate commerce?
A state law requiring in-state liquor distillers to post the prices at which they will sell in-state, and not to exceed those prices when they sell in other states.
False
A strict-liability tort occurs when a defendant acts with the intention of engaging in a specific act that ultimately results in injury.
No, because courts have consistently found it is not foreseeable that playing certain video games or viewing certain websites would result in murder.
A teenager plays Grand Theft Auto and runs over people in the game. The teen decides to recreate the game in real life, driving his vehicle up onto the sidewalk and running over two people. The victims pursue a claim against the maker of grand theft auto for negligence, arguing the game makers had a duty of care. Are the victims likely to prevail?
Stare decisis
According to ______, judges in current cases follow whenever possible the interpretation of law determined by judges in prior cases.
Resi psa loquitor
According to the lecture, which of the following is not a category of torts?
Which of the following is true regarding silence as acceptance?
An offeree's silence is considered acceptance when he/she indicates so
Alana, who manages a flower shop, sells Jose a shotgun. Jose is unemployed, and Alana has never sold a firearm before. Which of the following statements is true?
Article 2 of the UCC applies because a shotgun is a movable thing.
The primary authorization of constitutional powers is given to Congress under
Article I of the Constitution
Under the authority of the commerce clause, Congress can pass laws as long as what criteria are met?
As long as the law affects commerce among the states, or interstate commerce in some way, the regulation is generally constitutional
governmental agencies or entities
As of today in California, which of the following entities is not subject to joint and several liability?
False
Assumption of the risk is a doctrine which makes it easier for a plaintiff to prevail in a negligence lawsuit.
Why must federal legislation that affects business be based on an expressed constitutional grant of authority?
Because the federal government has only those powers granted to it by the Constitution
Forum selection clause
Bob is a merchant in New York and Betty is a merchant in California. Bob wants to do business with Betty but he is concerned that if a lawsuit should result from their transaction, he might have to travel to California and hire a California litigation to litigate the dispute. What type of clause should Bob try to include in his contract with Betty that will probably assure him that if litigation ensues, it will take place in New York?
BWC could not meet its burden of establishing sufficient minimum contacts.
Bubble Wrap Co. (BWC), an Atlanta corporation, has its principal place of business in New York. John, a resident of Florida, asserted on his website that BWC is engaged in ongoing criminal activity, scams, and phishing. BWC sued John in the U.S. District Court for the District of New York, alleging defamation and injury to BWC's business in New York. John filed a motion to dismiss the case alleging that neither motion and dismissed the case because:
How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace?
By discriminating between merchants and nonmerchants
No, Ted's posting alone is not enough to create sufficient "minimum contacts".
Calvin, a resident of South Park, Colorado, creates a website called "But Seriously" which acts an electronic billboard for posting funny stories. Ted, a resident of Northridge, California, posts a story on the website. Stu, another California resident from San Diego, files a lawsuit against Calvin in a federal district court in California, claiming that Calvin had defamed him on his website. Based on these facts, does Calvin have sufficient "minimum contacts" to give the California federal district court in personal jurisdiction over him?
It is unlikely that the student can recover because the accident could not have been avoided even with reasonable care.
Claudio, who has never had prior health issues, suddenly has a heart attack while driving. He runs over a student who is crossing the street, breaking her leg. Which of the following is true?
Codes
Collections of legislation, often on the same subject, passed by the Congress are called _______.
Which source of law requires the acceptance to be a "mirror image" of the offer in order to form a contract?
Common law
Enumerated powers are those powers that the_________can exercise.
Congress
Which of the following statements is true of consideration?
Consideration is required in all contracts
Sameer promises his uncle, Farouk, that he will study everyday and get straight A's during the spring semester in exchange for having his tuition paid for the fall semester. Farouk agrees, but after Sameer studies all semester and receives straight A's, Farouk refuses to pay, saying that no such contract ever existed. Which of the following is true?
Consideration was present, there was an enforceable contract, and Farouk has wrongfully refused to pay
Which types of transactions are governed by the Uniform Commercial Code?
Contract for the sale of goods.
Forum selection clause
Contracts sometimes contain a provision reciting that disputes between the parties regarding matters connected with the contract must be litigated in the courts of a particular state. What is such a provision called?
Which statement is true regarding the adequacy of consideration?
Courts seldom the adequacy of consideration but will do so if fraud is involved.
Venue
Defending against a federal district court suit by Paul, Dan claims that Paul has sued him in the wrong federal district court. Dan has raised a question of:
True
Even if a harmful product cannot be traced back to a particular manufacturer, a plaintiff may still be able to recover in a products liability action under the market share theory.
the amount in controversy must exceed $75,000.
For federal "diversity" jurisdiction to exist:
The______Amendment says that no state shall "deny to any person... the equal protection of the laws."
Fourteenth
The________Amendment extends most of the provisions in the Bill of Rights to the states.
Fourteenth
Mr. Green creates a unilateral contract with his nephew, Paul. Mr. Green promises to buy Paul a laptop if he gets accepted to college. In order for Paul to accept this contract what must he do?
Get accepted into college
False
Good Samaritan statutes impose liability upon people for refusing to stop at accident scenes.
Which of the following is NOT a basic element of a contract?
Goods
0
If the plaintiff is awarded $50,000 and is only 10% at fault, what is she entitled to under contributory negligence?
the plaintiff asserts so.
In a case where concurrent jurisdiction exists, a state court may decide a case involving federal questions if:
False
In a product liability lawsuit, a mere bystander may not invoke the doctrine of strict-liability.
Venue
In general, a court has _______ if it is a territorially fair and convenient forum in which to hear the case.
True
In some situations, the law specifies the duty of care one individual owes to another.
What can an offeror do to minimize the risk posed by the mailbox rule?
Include a receipt stipulation in the contract
Enforceable if it is considered reasonable by a court.
Infobox Online, an Internet services provider, includes in its "clickwrap" contract a clause stating that California courts have "exclusive jurisdiction" over subscribers' disputes with Inbox Online. This clause will most likely be:
Brandon installs two-way mirrors in the dressing room of his ladies' clothing store. He secretly uses the mirror to watch women while they try on clothing. Which of the following torts has Brandon committed?
Intrusion on an individual's affairs or seclusion
Which of the following statements is true of freedom of speech?
It covers both verbal and written communications
Which of the following is true of the Commerce Clause in present times?
It has become a federal power with an extensive regulatory reach
Which of the following is true regarding promissory estoppel?
It requires reasonable reliance on the promisor's promise
Quasi in rem jurisdiction
Jack, a resident of Texas, sued Jill, a resident of Kentucky, alleging breach of contract. Jack may attach Jill's bank account in Kentucky to recover the amount of the judgement from the account, if his suit is successful. This is an example of:
In rem
Jurisdiction based on the presence of property within the state is called _______
Kim has a duty to come to the aid of Lennithia because she negligently hit her.
Kim negligently hits Lennithia with her car. Which of the following is true?
Battery only.
Kyle plans to punch Patrick. He calls Patrick and tells him he will punch him tomorrow at 4:00PM. At 2:00PM the next day, Kyle sneaks up behind Patrick. Patrick does not see Kyle coming, but Kyle punches him in the back of the head. What torts did Kyle commit?
_______, a tort theory, is used to recover damages as a result of printed defamation of character.
Libel
Summary Judgement
Malcolm has brought a lawsuit against Will. Malcolm feels that there is no genuine issue of material fact in dispute, and also that he is entitled to win this case as a matter of law. What legal procedure would allow Malcolm to win this case as quickly as possible?
False
Negligence per se is the same thing as negligence.
Milner Developers proposed an offer to Henry Wright, an independent contractor, offering to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response. Wright responded to the offer with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract?
No, because Wright's letter was a counteroffer to the original offer.
Congress has the power to regulate commerce among the states. In pursuance of this power, it passed a legislation forbidding women from crossing state lines to buy or sell good. Will the statue be held constitutional?
No, because it conflicts with equal protection guarantee
A reporter receives information from several highly credible sources that a famous actress is pregnant and that the father of the baby is not her husband. The story is later proved untrue. The actress sues for defamation. Is she likely to be successful?
No, because the reporter did not act with actual malice.
Carl Critic has just announced his choices of the worst Hollywood actresses of the year, and Stella Starr has been named the worst of the worst. Carl's announcement, made in his weekly column titled "Random Musings by Carl Critic" and published in the local paper, claims that he believes her to have the least amount of talent in the movie industry and that she "can't act her way out of a paper bag." When Stella reads Carl's column, she immediately starts to cry hysterically and then decides to sue him. Does she have a valid case of libel?
No, this was merely Carl's opinion
Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?
Partial payment is consideration if an unqualified debt is involved
exclusive jurisdiction
Patent cases being litigated in the federal system are an example of this.
The First Amendment provides that "Congress shall make no law... abridging the freedom of speech." What is often described as being at the "core" of the First Amendment?
Political speech
Which of the following is true regarding the groups generally considered to be public figures for purposes of the public figure privilege to actions for defamation?
Politicians and entertainers, but not small business owners, are generally considered to be public figures
Common law
So significant is the role of judges in the United States that they determine the meaning of the Constitution and can declare void the legislation of Congress and the acts of the president. This illustrates that the legal system in the United States is based on _______.
requires that the store owner act with reasonable cause
Store owners' "conditional privilege" defense against tort claims brought by detained shoplifting suspects, recognized by most states, usually:
The Bill of Right comprises the first_______amendments to the U.S. Constitution.
Ten
Which amendment states the powers that the Constitution does not give to the federal government are reserved for the states?
Tenth
Judith George makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree, Helga Holmes must respond if she accepts. If Helga accepts the offer using a normal letter, which of the following is true?
The acceptance is effective upon dispatch
Gabrielle is three months behind on her mortgage, and her lender filed negative information affecting her credit rating. Gabrielle mailed one monthly payment to the lender along with a letter stating that she was making the payment on the condition that the lender remove negative material sent to credit reporting agencies. The lender cashed the check but did not remove the negative information. Gabrielle sues the bank for breach of contract. Which of the following is most likely result?
The bank will win because under the preexisting duty rule, Gabrielle was already legally obligated to make the payment, and there was no consideration to support the contract.
Mr. Green enters into a contract with Mr. Blue who is a crab fisherman. Mr. Green and Mr. Blue know that Mr. Blue has already caught the number of crabs allowed for the season. But Mr. Green and Mr. Blue agree to a contract to exceed the quota. What is the status of the contract between Mr. Green and Mr. Blue?
The contract is void since it attempts to contract for services that are illegal.
Linda wanted to replace the old carpet in her home. She entered into a contract with Carpet Co., for the purchase and installation of a new carpet. The price of the carpet was 3000$ and the cost of the labor to install the carpet was 150$. Later, Linda became dissatisfied with the transaction and now wants to sue Carpet Co. Linda wants to apply the contract rules of the UCC, but Carpet Co., wants to apply the contract rules of the common law. Which source of law should govern this case?
The contract rules of the UCC apply, because the predominant purpose of the contract was for the sale of goods
[Junk Food] Denise McCrae is a school-board member in Mariposa County. Appalled by the amount of junk food in the school, she convinces the state legislature to pass an ordinance that no stores may sell any unhealthy junk food within 600 feet of any school or daycare center. A political science teacher questions whether the regulation is valid and is told that it is a valid exercise of the jurisdiction's police power to protect its citizens. Convenience stores balk at the regulation and challenge it in court claiming that the law impermissibly affects interstate commerce. Part 1 Restrictions on states' authority to pass laws that substantially affect interstate commerce are referenced by which of the following?
The dormant commerce clause
[Junk Food] Denise McCrae is a school-board member in Mariposa County. Appalled by the amount of junk food in the school, she convinces the state legislature to pass an ordinance that no stores may sell any unhealthy junk food within 600 feet of any school or daycare center. A political science teacher questions whether the regulation is valid and is told that it is a valid exercise of the jurisdiction's police power to protect its citizens. Convenience stores balk at the regulation and challenge it in court claiming that the law impermissibly affects interstate commerce. Part 2 What do courts generally presume regarding laws passed in accordance with states' police power?
The laws are valid
Discovery
The right of ______ is available for information that is not subject to a recognized legal privilege and is relevant to the case or likely to lead to other information that may be relevant.
SOnia goes to have her hair trimmed and agrees to pay 40$ to the stylist. While there, Sonia decides that she would also like highlights. The stylist informs her that highlights will cost an additional 30$. Sonia agrees to the price, gets the highlights. but refuses to pay the extra amount. What is likely result in a dispute between Sonia and the stylist and why?
The stylist will win because she did additional work in exchange for the extra payment, therefore, Sonia's promise was supported by valid consideration.
Nina sent a letter to Adrian that stated she wanted to hire him to decorate the interiors of her house. she wrote that he must accept the offer by mail. Adrian received the letter and telephoned Nina to say that he accepted the offer. Which of the following statements is true in this case?
There is no acceptance and no contract in this situation as it is clearly mentioned by the offeror that the acceptance must be by mail.
Why does public figure privilege exist?
To encourage free discussion about public figures
Which of the following is given first priority when various laws are not consistent?
U.S. Constitution
Manufacturers, distributors, retailers
Under a strict product liability theory, who may be held liable to an injured party?
Risk-utility
We determine whether a product is unreasonably dangerous by the following test.
Oral examinations of a party by the opposing party's attorney.
What are orals definitions?
Who, Purpose, and How
What do the letters "WPH" mean in reference to the "WPH Framework for Business Ethics" discussed in the text?
Jurisdiction
What is a court's power to hear a case and to issue a decision binding on the parties called?
Compensatory Damages
What type of damages is awarded to an injured party in a tort case to cover damages for the harm that the injured party suffered?
Strict-liability
What type of torts occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes?
False
When a plaintiff uses res ipsa loquitur, the plaintiff must show direct evidence of the defendant's lack of due care to prove the defendant's negligence was the cause of harm.
Being in privity of contract
When an individual is a party to a contract, the law recognizes that individual as
Manufacturing
When an individual product has a defect making it more dangerous than identical products, that individual product is said to have which of the following defects?
Opinions
When judges who decide appeals from trial courts make decisions on legal issues, they write their decisions, or _________ , setting out reasons.
Citations
Which of the following are essential to locate prior precedents?
Interrogatories are a commonly utilized form of discovery.
Which of the following characterizes discovery?
Breach of Contract
Which of the following is NOT one of the four distinct torts that make up the invasion of privacy cause of action?
To compensate innocent persons who are injured
Which of the following is a purpose of tort law?
Avvo.com
Which of the following is a source of information about attorneys?
Mediation
Which of the following is a type of ADR?
Obtain insurance
Which of the following is an action you can take to protect yourself from strict liability?
Contract laws require parties to live up to promises because keeping promises is part of our ethical inclination to encourage trust.
Which of the following is an example of how ethics shapes business law?
Using Madonna's name to sell women's apparel
Which of the following is most likely to involve liability for violating the so-called "right of publicity"? In each case, assume that the plaintiff's name, likeness, work, etc. was appropriated without the plaintiff's permission.
Intentional injury
Which of the following is not a category of strict liability?
State of the art defense
Which of the following is not considered an illusory defense?
A foreseeable risk of harm
Which of the following is required to establish a duty?
There are four distinct torts related to it.
Which of the following is true of "invasion of privacy"?
Summons
Which of the following notifies the defendant that he, she, or it is being sued.
The unquestionable nature of the rules in most absolutist repositories seems overly inflexible when applied to different situations.
Which of the following presents a problem when considering the theory of ethics known as absolutism?
U.S. Constitution and Amendments
Which of the following sources of law ranks the highest in the hierarchy of sources of law?
They typically involve a request for damages or other appropriate relief that does not involve punishment of the wrongdoer.
Which of the following statements is true of civil cases?
Negligence, strict product, and breach of warranty.
Which of the following theories of recovery are commonly used in product liability cases?
The amount of the punitive-damage award is determined by the wealth of the defendant and the maliciousness of the action.
Which statement is true regarding punitive damages in product liability cases?
Intentional torts
Which type of tort is the most willful of torts?
Negligence
______ is the failure to use reasonable care, with harm to another party occurring as a result.
Originalism
______ stands for the idea that courts should interpret the Constitution only according to the intentions of those who wrote it.
Civil law courts
_______ do not make law nor do their judges think themselves obligated to follow prior judicial decisions called precedents.
Punitive damages
________ are intended to punish flagrant wrongdoers and to deter them.
Federal question
________ jurisdiction exists when the case arises under the Constitution, laws, or treaties of the United States
Trepass
_________ to land may be defined as any authorized or unprivileged intentional intrusion upon another's real property
Aaron promises to sell his boat to Matt, and Matt promises to buy it from him. What type of contract is this?
a bilateral contract
The Uniform Commercial Code dispenses with the requirement for consideration in contracts that involve:
a merchant's firm written offer of an irrevocable contract
To qualify as a contract, a set of promises must be based on a voluntary agreement, which is made up of an offer and an_____of that offer.
acceptance
Generally, constitutional protections do not apply to
acts of privately owned businesses
Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now:
bilateral, executory, and express
Article 2 of the UCC does not apply to a sale of:
corporate stock
In the United States, the power of states to regulate is:
exclusive in the domain of intrastate commerce
The separation of powers between levels of government is known as________.
federalism
Which of the following is true regarding the protection of "fighting words" under the First Amendment?
fighting words are unprotected speech under the First Amendment
Mitch is photographed attending a public school board meeting where violent protestors attacked members of the school board. Later, when Mitch runs for the school board, a local newspaper publishes Mitch's picture next to that of the violent protestors. Mitch may sue:
for creating a false light
The promise to refrain from doing something that a party has a legal right to do, or the promise of inaction, is known as:
forbearance
"The challenged law must be necessary to the fulfillment of a compelling government purpose." This is laid down for the:
full strict scrutiny test
Which of the following statements is true of preemption?
if a federal law preempts a subject, then any state law that attempts to regulate the same activity is unconstitutional
The sex discrimination test is an example of the:
intermediate scrutiny
Under the common law, an offer for a unilateral contract:
is accepted by full performance of the requested act
Which of the following statements is true of the strict scrutiny approach?
it is applied to cases involving classifications directed at fundamental rights
A promise to do something that one is already required to do either by law or by contract represents no additional sacrifice and is:
not valid consideration
Under the Takings Clause, a "taking":
occurs when the government uses formal eminent domain procedures to condemn private property
An______is a proposal by the one person to another that is intended to create legal relations on acceptance by the person to whom it is made.
offer
In determining whether the offeree accepted the offer, the court looks for the offeree's__________ intent to contract.
present
Which of the following is not a defense to defamation?
publication
The equal protection standard is generally judged in a lenient manner. However, laws that discriminate regarding________are made to undergo a much more rigorous test.
race
The________is a very relaxed means-ends test of constitutionality which challenged laws usually pass with ease.
rational basis test
According to_______, most of the Constitution's individual rights provisions block only the actions of government bodies, and not private bodies, in cases of violation of rights.
state action
Greg signed a contract to work as an auto-part manager for Jones Chevrolet. This contract is governed by:
state common law
Assume that Iowa has passed a statue requiring all noncitizens to sit in the back of public buses. That statues would be reviewed using
strict scrutiny
Which of the following requires that courts in all states uphold contracts and public acts of every state thereby protecting wills, divorce decrees, and judgements in civil courts?
the full faith and credit clause
Valencia secures a good grade with a 4.0 GPA in her admission test. However, she is denied admission by a community college. She files a suit stating that she was discriminated on the basis of race. She claims that she was rejected because the college used race as an important factor, giving applicants belonging to minority groups a greater chance for admission than students with similar credentials belonging to disfavored racial groups. In deciding this case using the equal protection clause, which of the following approaches is most likely to be used by courts?
the strict scrutiny approach
An oral contract that is covered by the statue of frauds is:
unenforceable
When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) __________ has been created.
unenforceable contract
Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you 2004 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her 200$ in cash. This is an example of a contract that is now:
unilateral and executed
Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?
valid contracts
A contract where formation was induced by duress is an example of a contract that is:
voidable
A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called an:
voidable contract
