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