BAM 521 Publisher Pearson Prentice Hal, Business Law .docx

BAM 521
Publisher:
Pearson Prentice Hal,
Business Law
Text: Contemporary Business and Online Commerce Law
Sixth Edition, 2009
ISBN: 10 013-601500-X
Author(s):
Henry R Cheeseman
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(214
97,0);(0,0);(0,21487);(21497,21487)posrelh0posrelv0pib
a.
Business Law
Multiple Choice Questions (Enter your answers on the enclosed
answer sheet)
~The court's decision in Brown v. Board of Education had what
effect on the decision
~ made in Plessy v. Ferguson?
b. It showed that precedent can be overruled and IS not
binding in every situation.
c. It applied the Doctrine of Stare Decisis
d. It showed that the Constitution IS not subject to
interpretation.
e. It applied the principle of preemption
f. It followed precedent.
2) Someone who believes that law is a reflect on of those in
power, believes in which
school of jurisprudential thought?
a, The Analytical School.
b. The Natural School.
c. The Command School.
d. The Historical School

e. The Psychological School
(""hiCh of the following is a false statement regarding the
citizenship and immigration
~liCY of the United States?
a. Immigration quotas are different for each foreign country.
b. The first immigration quota policy was enacted in the
1920s.
c. The immigration quota policy was repealed after World
War II.
d. There is an immigration quota policy in effect today In the
United States.
e. Immigration laws are administered and enforced by the
United States Customs and
Immigration Service.
4) The remedy, or relief that was available in the law courts of
England was:
a. specific performance.
b. monetary awards for damages.
c. fines and imprisonment.
d. returning the parties to their positions before the dispute
arose.
e. Any of the above, and any other remedy determined to be
fair in the particular case.
5) Chancery Courts were also known as:
a. Criminal Courts
b. Equity Courts.
c. Legal Remedy Courts.
d. Merchant Courts.
e. Law Courts.
P'
'Business
Law
65

6) When statutes are organized by topic the
resulting compilation of law is known as:
a. precedent.
b. a code.
c. civil law.
d. topical presentation
e. common law.
7) Which of the following IS not empowered to establish
administrative agencies?
a. A state executive branch.
b. Concress.
c. A federal or state judicial branch
d. A state leoislative branch.
e. The federal executive branch.
f7:J For which of the following in the U.S. Congress can the
number to which a state is
~ entitled change over time?
a. All members of the U.S. Congress.
b. Senators.
c. Both Senators and representatives.
d. Neither senators nor representatives
e. Representatives.
Ia? ~e power of the federal government to make treaties with
Native American Nations
L/r~~arding land and land use IS derived from the:
a. Privileces and Immunities Clause.
b. Supremacy Clause.
c. First Amendment.
d. Commerce Clause.
e. Equal Protection Clause
10) If there is an area of interstate commerce that the federal
government has chosen not
to regulate, the states can
a. not regulate in that area because states cannot pass laws
affecting interstate com-
merce

b. reoulate in that area so long as the state law does not
unduly burden interstate com-
merce.
c. not requlate in that area because the federal covernrnent's
decision to not regulate in
an area implies that there is to be no requlation in that area at
any level.
d. reculats without restriction In that area.
e. regulate in that area so long as it first gets the requisite
approval from Congress.
I
Business
Law
/16')'Inmost cases, following a decision by the
~ Court of Appeals:
a. either party has a right to have the Supreme Court review
the merits of the case.
b. either party can request that the Supreme Court review the
merits of the case, but the
Supreme Court denies this request in most cases
c. the case cannot be appealed further.
d. the Circuit Court of Appeals decision must be reconfirmed
by the District Court where
the case was origi na lIy tried.
e. either party can request that the Supreme Court review the
merits of the case, with
the request being granted unless the Circuit Court of Appeals
decision was c early
correct.
~iCh of the following is true regarding federal question
jurisdiction?
a. There is a dollar-amount limit of $75,000 on federal

question cases that can be
brought in federal court.
b. There IS a dollar-amount limit of $100,000 on federal
c. There is no dollar-amount limit on federal question cases
that can be brought in fed-
eral court.
d. There is a dollar-amount limit of $50 000 on federal
brought in federal court
e. There is a dollar-amount limit of $10,000 on federal
r::l"'hen parties to a contract agree upon which state court will
have Jurisdiction should
'(/I~tigation become necessary that contract clause is called a:
a. jurisdiction selection clause
b. choice-of-Iaw clause.
c. s andings clause.
d. venue selection clause.
e. forum-selection clause.
19) Which of the following pleadings could typically be filed by
a defendant in a lawsuit?
a. Answer and complaint.
b. Complaint and cross-complaint.
c. Cross-complaint and reply
d. Answer and cross-complaint.
e. Motion to intervene and complaint.
I.
Business Law
,;8
20) When an appellate court receives a case

appealed to it, it will:
a. retry the case with a new jury.
b. review the record of the trial court so see if there were any
errors of law made by the
judge.
c. review the jury's verdict to see If the appellate court
judges would have reached the
same result.
d. review the record to see if it would have made the same
decision as the jury.
e. retry the case with the appellate court judge acting as the
jury.
21) In general, an appellate court might typically reverse which
of the following?
a. The trial court's conclusions of law
b. The jury's findings of fact.
c. Both A and B.
d. Neither A nor B.
e. The trial court's findings of fact.
22) Arbitrators and mediators are also called:
a.
impartials.
b.
disinteresteds
c.
dispassionates.
d.
neutrals.
e.
equitables
23) The best descnptlon of misappropriation of the right to
publicity is:
a. publicizing private information about someone without
that person's consent.
b. publishing the creative work of another and claiming that

it IS yours.
c. claiming credit for the accomplishments of another
d. publicly claiming to have accomplished something that you
have not accomplished
e. attempting to use another living person's name or identity
for commercial purposes
without that person s consent.
24) A landowner owes a duty of ordinary care to:
a. licensees and invitees.
b. licenses and invitees only if business activities are
involved.
c. invitees only
d. licensees only.
e. none of the above.
k
Business
Law
69
25) Sam, who weighs 250 pounds, calls his 110 pound
girlfriend, Alice, one morning
while she is at work. He says, "You are to stay In your office
until midnight. If you
come to my house before midnight, I will make you sorry that
you did." Assuming
that Alice usually leaves her office at 5:00pm but stays until
midnight that night
because of the threat if Alice files a false imprisonment case
against Sam, a court
most ikely will find that
a. there was no false imprisonment because Sam and Alice
previously knew one another.
b. there was false imprisonment because Sam's threat forced
Alice to stay in the office.

c. there was no false Imprisonment because Alice could have
left the office and stayed
away from Sam's house, and because the threat related to future
harm.
d. there was false imprisonment only if Alice can prove she
reasonably feared Sam.
e. there was no false imprisonment because Alice's office was
not a prison, even though
it might have felt like one to Alice.
l.
Business Law
Multiple Choice Questions (Enter your answers on
the enclosed answer sheet)
GhiCh of the following is true about crimes?
a. Recklessness never provides a sufficient criminal intent.
b. Criminal liability exists only if there is a victim who
suffered damages.
c. A criminal defendant will be found guilty whenever the
jury believes it is more likely
than not that the defendant committed the crime.
d. Torts always accompany crimes, although the civil case is
often not brought.
e. For some crimes recklessness provides a sufficient
criminal intent.
2) Sam is charged with the crime of theft and has also had a
civil suit filed against him
by the victim. Which of the following could not be a consistent
outcome?
a. Not guilty in the criminal case, not liable in the civil case.
b. Guilty in the criminal case, not liable in the civil case.
c. Not guilty in the criminal case, liable in the civil case.
d. Guilty in the criminal case, liable in the civil case.
e. Both A and D.
3) Which of the following is true about how plea bargaining

usually works?
a. A defendant pleads guilty to the charged crime or to a
lesser offense in exchange for
receiving a lighter sentence than if the defendant were to be
tried and found guilty of
the original charges.
b. A defendant who is serving a prison sentence for a crime
the defendant was convicted
of can get the sentence reduced for good behavior, community
service or similar rea-
sons.
c. A defendant waives certain constitutional rights in
exchange for a lighter sentence.
d. A defendant waives the right to a jury trial and the judge
determines guilt or inno-
cence.
e. Both C and D.
4) Which is true about corporate criminal liability?
a. Because a corporation cannot be sent to prison, they
generally cannot be held crimi-
nally liable for the actions of their officers.
b. If the criminal conduct can be traced to a specific person
or persons, those persons
will be liable and not the corporation.
c. Corporations have never been subject to criminal liability
because they cannot go to
jail.
d. There can be liability for both the individuals who commit
crimes and for the corpora-
tion on whose behalf the crimes were committed.
e. There can be no liability for individual employees of a
corporation, but the corporation
can be held responsible for the crimes committed.
147
m.
Business Law

5) Which of the following statements is true?
a. The attorney-chent privilege is the only privi ege that has
been recognized under the
Fifth Amendment.
b. Even if immunity from prosecution has been granted, the
defendant may still refuse
to testify.
c. The guarantee has been extended to include all business
records and documents.
d. The Fifth Amendment guarantee against self-incrimination
does prohibit the taking of
fingerprints against a suspect's will.
e. The Fifth Amendment guarantee against self-Incrimination
does not prohibit the tak-
ing of fingerprints against a suspect's will.
6) The Miranda decision requires that a criminal suspect be
notified of the following
except:
a. the fact that anything the suspect says may be used against
the suspect.
b. the right to have an attorney appointed if the suspect
cannot afford one.
c. the right to a trial by jury.
d. the nght to have a lawyer present during Interrogation.
e. the right of the suspect to remain silent.
7) The following can properly be the subject of a patent except:
a. asexually reproduced plants.
b. conceptual ideas.
c. designs for manufactured objects.
d. mechanical processes.
e. compositions of matter.
@hiCh of the following is true about copyright law in the

United States?
a. A work must be published in order to receive COPYright
protection.
b. A copyright is not created by the process of registration
c. A copyright must be registered before public disclosure of
the copyrighted material.
d. State copyright laws supplement the federal copyright
laws.
e. Both C and D.
(;;) bountries began entering into treaties with each other that
provrded protection of
UI~ternational property rights In the:
a. only since 2000.
b. 1700s
c. 16005.
d. 19005
e. 1800s.
148
n
Business
Law
149
G
Jhhn has invented a device to monitor
tie tire pressure on bicycle tires. This
de-
vice consists of a tire pressure sensor on the tire with a radio
transmitter and a receiv-
er mounted on the handlebars to give a readout of the pressure.
The radio transmit-
ter is similar to existing designs but one has never been used in
this way. The
product cannot be produced for less than $120, but John's

preliminary marketing
studies indicate that the product could not be sold for more than
$25. Which of the
followi ng is true?
a. John cannot get a patent because the transmitter part is not
a new invention.
b. John can get a provisional patent which would provide
limited protection until he can
redesign It so that it can be made for under $25.
c. John cannot get a patent because the inability to produce
the product at a cost low
enough to sell it means that it does not meet the usefulness
requirement.
d. John can obtain protection for his invention even if
someone else files a patent ap-
plication for the same invention so long as John actually
invented his first and only if
he pays a fee of $1 ,000.
e. John can obtain protection for his Invention even if
someone else files a patent appli-
cation for the same Invention so long as John actually invented
his first.
~. Rusiness law teacher Sue Smith copies 5 pages out of a 999
page book in the library
Vcr use in class. Ms Smith did not want her students to have to
purchase the entire
book because of the expense Involved. A qrumpv library
assistant calls the publisher
of the book and informs on Ms. Smith. Is Ms. Smith in trouble?
a. It is unlikely that Ms. Smith will be In trouble because her
use of a few pages would
probably constitute a "fair use" under trademark law
b. Yes, Ms. Smith will be liable for trademark violation
because the students should have
been required to buy the book.
c. Yes, Ms. Smith will be liable for copyright violation

because the students should have
been required to buy the book.
d. It IS unlikely that Ms. Smith will be in trouble because her
use of a few pages would
probably constitute a "fair use" under copyright law.
e. Ms. Smith will be liable for copyright Violation only if she
made a profit from the use.
12) Wh ich of the followi ng statements is true regard i ng the
relationsh i p of law and eth ics?
a. The legal requirements will almost always be the same as
the ethical requirement
because the law is based on the ethical standards.
b. In some cases ethics will require a higher standard of
conduct than the law, but never
vice versa.
c. In some cases the law will require a higher standard of
conduct than ethics, but never
vice versa.
d. There IS a disagreement about legal standards of conduct
but not about ethical stan-
dards of conduct.
e. Depending on the circumstances, the law can require a
higher, lower, or the same
standard of conduct as ethics demands.
()
Business Law
150
13) Someone who believes that moral
decisions should be made such that the
greatest
amount of good in total results from the actions, believes in
which moral theory?
a. Kantian ethics

b. Rawls's distributive justice theory.
c. Utilitarianism.
d. Ethical fundamentalism.
e. Ethical relativism.
14) A criticism of utilitarianism IS that:
a. moral and ethical rules are too rrgid and fixed over time.
b. some persons would take actions that they believe to be
moral, but which most per-
sons in society believe to be immoral.
c. decisions require the measurement of qualities that are not
subject to precise mea-
surements
d. decisions are not allowed to take into account an
individual's station or place in soci-
ety.
e. Both C and D.
~ ~'SS promoted which of the following?
~:-' The belief that the moral rules should be determined by
persons who have a "veil of
ignorance" about their place or station in society.
b. The belief that a person must decide what course of action
is proper based on that
person's own set of beliefs or feelings
c. Determining which couse of action produces the greatest
amount of good for the
greatest number of people
d. A set of universal rules based on reasoning which must be
applied in all situations
and are characterrzed by reversibihty
e. The consultation of an outside source, such as a book or
person for guidance.
16) Big Green Company is considennq introducing a new
product to replace an existing
product. The new product would result In Increased revenues.
but slightly lower over-
all profits because the product will cause injury to a few users

and Big Green will
compensate persons who are injured. The introduction of this
product would be the
proper decision under:
a. the moral maximum theory, but not under the moral
minimum theory
b. neither the moral minimum theory nor the profit
maximization theory.
c. both the moral minimum theory and the profit
maximization theory.
d. the moral minimum theory, but not under the profit
maximization theory
e. the profit maximization theory but not under the moral
minimum theory
n.
Business Law
~~der the objective theory of contracts,
~~act could result from an offer made:
a. due to fraud.
b. due to a need to sell an item quickly.
c. by someone who clearly had Alzheimer's disease.
d. under duress.
e. by someone who was clearly intoxicated.
18) Under the objective theory of contracts, whether or not a
contract exists is based on:
a. the statutory offers.
b. the objective contractor standard.
c. the judicial standard.
d. the objective constitutional standard.
e. the reasonable person standard
19) What is required for a contract to be an express contract?
a. It is performed immediately after formation.

b. It is performed for mutual benefit.
c. It is stated in words.
d. It is written and signed
e. All of the above.
20) A contract under seal is called a/an:
a. quasi contract.
b. informal contract.
c. bilateral contract.
d. express contract.
e. formal contract.
Qn agreement that is lacking consideration
a. wi II not be an enforceable contract, but may be enforced
under the theory of prom is-
sory estoppel.
b. is void as against public policy
c. is not enforceable, and thus cannot be performed.
d. IS enforceable only If in writing.
e. will be enforced only against the party who gave
consideration.
151
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osrelh0posrelv0pib
o.
Business Law
152
22) Offeror says, "1'11 sell you my car for
$15,000" Offeree says, "I accept your offer but
will pay $14 000." What is true at this point?
a. This was a conditional acceptance
b. Offeror must sell car to Offeree If Offeree gives Offeror
$15,000.

c. There are two open offers.
d. The offeree's statement was a revocation of the $15,000
offer
e. The only open offer IS for $14 000
23) Mary promises to give her car to her friend. The friend
sells his current car at a fairly
low price because he is expecting to get a nearly new car at no
cost from his rich and
generous friend, Mary. Mary changes her mind and decides to
keep the car. If the
friend sues Mary the court most likely will:
a. based on the theory of promissory estoppel require Mary to
pay damages to the friend
for any loss he incurred in connection with Mary's not keeping
her promise.
b. require Mary to give her friend the car because Mary made
an Illusory promise.
c. require Mary to give her friend the car because his sale of
his car was consideration.
d. not require Mary to do anything unless it can be proven
that she subjectively intended
to cause her friend monetary diffculty.
e. not require Mary to do anything because this was a gift
promise
ehiCh of the followmq is not true?
a. What constitutes a necessary varies over time and can
differ from state to state.
b. A minor can stili disaffirm a contract for a reasonable time
after reaching majority.
c. A minor does not have to wait until reaching majority to
disaffirm a contract.
d. In most states a minor who misrepresents his or her age
has no duty to place the

com petent party In status quo if the minor disaffirms the
contract.
e. A minor must pay the agreed price on a contract for
necessaries.
r thY purchased a used car from Mint Motors Inc. on her
sixteenth birthday and will
~~ making 48 monthly payments to Mint. Thirteen months later
the car was stolen
and was never recovered. Which of the following statements is
correct?
a. The cars theft is an automatic ratification of the contract
because it is now
impossible to return the car.
b. Kathy ratified the contract by driving the car for thirteen
months.
c. Kathy may demand a new car from Mint as a penalty for
dealing with a minor.
d. Kathy may not disaffirm the contract if she ratified the
contract either orally or in
writing prior to the theft ..
e. Kathy may disaffirm the contract because she IS a minor.
BuslDess Law
r.
answer sheet)
1) In general, what is the effect of one party being mistaken
about the subject matter of
a contract?
a. The mistaken party can rescind the contract.
b. Either party can rescind the contract, and the mistaken

party can recover damages.
c. Neither party can rescind the contract or recover damages.
d. Either party can rescind the contract and/or recover
damages.
e. Either party can rescind the contract.
r;;~ Krysa v. Paine, where Paine s Car Company was found to
have committed fraud
Un the sale of a truck to Krysa, what did the court rule
regarding the punitive damages
award?
a. Punitive damages are allowed at 9: 1 in cases involving
personal injury but in con-
tracts must adhere to a 3: 1 ratio.
b. Punitive damages are limited to 9: 1 in all cases.
c. Punitive damages should never have a cap or their function
as a deterrent and punish-
ment would be lost.
d. Punitive damages are not available in a fraud action based
on a contract.
e. Punitive damages of 27: 1 are permitted in cases of
extreme fraud.
~he knowledge of a statement's falsity or the "guilty mind," in a
fraud in the induce-
~ent case is also known as:
a. parol knowledge.
b. justifiance.
c. reliance.
d. scienter.
e. guilty intent.
/lJndre has made a statement that the average person would
realize is puffery. Andre
(A guilty of:
a. duress.
b. fraud.
c. innocent misrepresentation.
d. undue influence.

e. nothing.
5) In Wilson v. Western National Life Insurance Company,
involving the party who lied
allegedly regarding prior drug abuse in order to obtain life
insurance, what was
the holding of the court when the party later died from a drug
overdose?
208
s.
209
t. The life insurance company had to pay the proceeds
because if the plaintiffs medical
records had been consulted, the drug abuse would have been
discovered.
u. The life insurance did not have to pay the proceeds only
because the deceased's wife
was unaware of the misrepresentation.
v. The life insurance had to pay the proceeds because the
deceased's wife actually paid
the premiums.
w. The life insurance company had to pay the proceeds
because the plaintiff was not
using drugs during the time the application for insurance was
made.
x. The life insurance company did not have to pay the
proceeds because of the conceal-
ment of the drug abuse
6) Undue influence is characterized by one party being put at
a disadvantage in a con-
tract due to:
a. a party taking advantage of superior knowledge about the
subject matter in a contract.

b. a party taking advantage of a fiduciary relationship.
c. a party taking advantage of the other partys legal
circumstances.
d. a party taking advantage of economic advantage In a
transaction.
e. a party taking advantage of it being less urgent for that
party to reach an agreement.
7) If a judge rules that a party has lost its case because of the
Statute of Frauds, the
judge has essentially stated that:
a. the losing party was found by the court to have lied, and
will therefore lose the case
b. the losing party purposely deceived the other party about a
material fact.
c. the losing party cannot enforce an oral contract that should
have been in writing.
d. the winning party has proven criminally fraudulent conduct
on the part of the losing
party.
e. the losing party is not allowed to introduce evidence to
contradict a written agree-
ment.
8) Frank had a bicycle that he advertised for sale, honestly
believing it to be a 1999
model even though it was actually a 1996 model There were
significant improve-
ments in the frame material, not readily apparent, made between
1996 and 1999 to
this model bicycle. The buyer believed Frank's statement that it
was a 1999 model,
and was excited to be getting a model incorporating the
improvements. After discov-
ering that the bike was actually a 1996 model, the buyer could
avoid the contract on
the basis of:

a.
unilateral mistake.
b.
fraud
c.
mutual mistake
d.
Band C
e.
none of the above
Busmess Law.
y.
!':'~e owner of a gym tells Ruppert that if he joins the gym for a
year and hires a per-
~'nal trainer, his body will be more attractive to women and his
life will change for-
ever. Ruppert joins and hires a personal trainer but otherwise
his life remains the
same. The statements of the gym owner could be described as:
a. statements of fact.
b. statements of opinions.
c. predictions about the future
d. both Band C.
e. A, Band C.
~ ~~h of the following is the false statement?
Wegal right arisi ng from a breach of contract may be assigned.
b. The same right can be assigned more than once.
c. You must get everyone's consent to make a novation.
d. Purely mechanical duties are not delegable.
e. There is a guarantor in a delegation.
II) When there has been an assignment of rights under a
contract who has a duty to
notify the obligor of the assignment?

a. The assignor.
b. The assignee.
c. Both the assignor and the assignee
d. Neither the assignor nor the assignee.
e. Whichever party is nearer the obligor geographically.
~-w,en an obi igor transfers her obi igation to perform a
contract duty to another, th is is
lYown as am).
a.
delegation.
b.
accord.
c.
den igration.
d.
assignment.
e.
stipulation.
13) When there is an accord and satisfaction, when are the
duties under the original con
tract discharged?
a. When the accord is formed
b. When the duties of the original contract are fully
performed by one of the parties.
c. When the original contract is breached.
d. When the duties under both the original contract and the
accord are fully performed
by both parties.
e. When the duties under the accord are fully performed by
both parties.
210
BusIQess Law__ _ _
z.

(2) ~ICh of the following IS true?
•....
a. If a contract can be performed, but doing so has become
illegal, performance will be
discharged on the basis of Impossibility.
b. A party can generally get out of a contract if it had entered
into the contract without
all information relevant to the contract.
c. Death of a party will always result In discharge of that
party's duties.
d. A seller's duty to sell goods .s discharged due to
impossibility if the seller is unable to
acquire the goods from its normal supplier.
e. Both A and B.
~ ,VorldRest Hotels has contracted with QuickBuild
Construction to build a 650-bed
votel in Downtown Dallas. Marty has entered into a lease
agreement for retail space
in an adjacent building to open a gift shop catering to the hotel
guests. QuickBuild
was aware of Marty's lease agreement. QuickBuild breached its
contract with Worl-
dRest by not completing the hotel until seven months after the
contractual due date.
Because the hotel was late opening and there were seven months
when the hotel had
no guests, Marty lost considerable profits in the retail shop.
Marty has sued Quick-
Build to recover these lost profits. Which of the following is
true?
a. Marty is a donee beneficiary of QuickBuild's contract to
build the hotel.
b. Because QuickBuild is now in debt to Marty for the lost
profits, Marty is a creditor
beneficiary of the hotel construction contract.

c. Marty can recover in the Situation on the basis of an
assignment of rights.
d. Marty cannot recover because Marty is an Incidental
beneficiary of the hotel construc-
tion contract.
e. The court would likely order QuickBuild to delegate its
duties on future contracts so
that they are finished on time.
16) What is tender of performance in connection with a
contract?
a. Performance whose terms have been ordered by the court.
b. One party's completion of duties under the contract.
c. An uncondtional offer by a contracting party to perform
his or her obligations under a
contract.
d. A party's offering substitute performance that is superior
to the performance called for
in the contract.
e. A party's offering to perform prior to full payment.
17) What kind of damages Will be awarded when there is no
actual financial loss?
a. Special damages
b. Nominal damages
c. Compensatory damages.
d. Consequential damages
e. There are no damages that a court will award in the
absence of an actual flnancial
loss
llusme.ss Law
aa.
@hat does the term 'mitigation" refer to In connection with
damages?
a. The calculation of lost profits in determining damages

b. The combination of the different kinds of damages into a
single dollar amount.
c. The duty of the breaching party to make a damages
payment as soon as practical.
d. The requirement of the non-breaching party to allow the
breaching party one final
chance to perform the contract before being entitled to collect
damages.
e. The duty of a non-breaching party to make reasonable
efforts to reduce damages.
~-What is the modern rule for who gets to keep an engagement
ring given by the man to
Uhe woman If the planned wedding does not occur?
a. It must be returned to the man regardless of who broke off
the engagement.
b. It will be based on who was determined by the court to be
more at fault in causing the
engagement to be broken off.
c. It will go to the party who has the least financial resources
at the time the engage-
ment is broken.
d. The party who did not break off the engagement gets to
keep It.
e. The woman can keep it regardless of who breaks off the
engagement.
20) What was the result in the Ethtcs Spotlight In the book in
which "Kurupt was alleg-
edly Induced by Death Row Records to breach an exclusive
recording agreement with
the Brumfield?
a. Death Row Records was held liable for the tort of
intentional interference with a con-
tract but could not be held liable for punitive damages.
b. Death Row Records was held liable for the tort of
tract but could not be held liable for compensatory damages.

c. Death Row Records was not held liable for anything
because the plaintiff had been
prosecuted for fraudulent activities, and Death Row Records
assisted the singer in
avoiding a bad deal
d. Death Row Records was not held liable for the tort of
intentional interference with a
contract.
e. Death Row Records was held liable for the tort of
tract, and was held liable for compensatory and punitive
damages.
I::,~ Reno Attorney General of the United States v. American
Civil Liberties Union
l7o~vOlving a law restricting the sending of certain sexually
oriented information over the
Internet, the U.S. Supreme Court ruled that:
a. the Telecommunications Act of 1996 violated the U.S
Constitution for its restrictions
on the transfer of indecent material over the Internet.
b. the Communications Decency Act violated the U.S.
Constitution for its restrictions on
the transfer of indecent material over the Internet.
c. the Internet had grown to a point that it should be placed
into private ownership that
could contract regarding sexual content with individual service
providers.
d. the Communications Decency Act did not violate the U S
Constitution in any manner.
e. individual states could decide whether the
Telecommunications Act of 1996 violated
the U.S. Constitution.
'12
BlJsloes!> Law

bb.
Cz) ;krder to obtain a domain name, one must
a. obtain clearance from the U.S Patent and Trademark office
that the name is not con-
fusingly similar to another name and pay the appropriate fee.
b. verify that the name is not already taken complete a
registration form, and pay the
appropriate fee.
c. apply for the name with the appropnate county agency;
state the purpose for which
the name will be used; and if the use IS approved, pay the
appropriate fee
d. apply for the name and if within the waiting period there
are no objections to the ap-
plicant taking the name pay the appropriate fee
e. post notice at the Network Web office of the intent to use
the name. directly notify
parties who might object to obtain their waiver of objection and
pay the appropriate
fee.
I 23) T}e Counterfeit Access Device and Computer Fraud and
Abuse Act makes it illegal to
~o each of the following except:
a. access a computer to knowingly obtain financial records of
financial institutions.
b. access a computer to knowingly obtain grades and personal
information pertaining to
students at a college or university.
c. access a computer to knowingly obtain restricted
governmental information.
d. access a computer to knowmqly obtain consumer reports of
consumer reporting agen-
cies.
e. all of the above are illegal under the Counterfeit Access
Device and Computer Fraud

and Abuse Act.
(
4) }Jnder the Uniform Computer Information Transactions Act
the licensee can revoke
/acceptance of the information if
a. there is a material breach and discovery of the
nonconformity was difficult at the time
of delivery but was later discovered
b. there s a breach of any kind and discovery of the
nonconformity was difficult at the
time of delivery but was later discovered
c. there is a material breach and after discovering the
nonconformity at the time of
del ivery, the I icensor agreed to cure the defect but has not
done so.
d. there IS a breach of any kind, and after discovering the
nonconformity at the time of
del ivery the I icensor agreed to cure the defect but has not done
so.
e. A or C Will allow the licensee to revoke acceptance.
r~he Electronic Communications Privacy Act makes it a crime
to do which of the fol-
~OWing?
a. To intercept an electronic communication while in transit.
b. To intercept an electronic communication at the point of
transmission.
c. To intercept an electronic transmission when stored by a
router or server or after
receipt by the Intended recipient.
d. Both A and B.
e. A, Band C.
213
cc
Business Law

answer sheet)
(2) ~hat is the definition of "goods" under Article 2 of the
UCC?
a. "Goods" are defined as tangible things that are Immovable
at the time of their identi-
fication to the contract.
b. "Goods" are defined as fixtures.
c. "Goods" are defined as intangible things that are
immovable at the time of their iden-
tification to the contract.
d. "Goods" are defined as Intangible things that are movable
at the time of their identifi-
cation to the contract.
e. "Goods" are defined as tangible things that are movable at
the time of their identifica-
tion to the contract.
(2)~~egarding differences under Article 2 of the UCC in the
treatment of merchants and
L/nonmerchants, which is true?
a. Article 2 holds merchants to a lower duty than non
merchants.
b. Article 2 applies to merchants, but never to nonmerchants.
c. Article 2 contains several provisions that either apply only
to merchants or impose a
greater duty on merchants.
d. Article 2 does not differentiate at all between merchants
and non merchants, and they
are treated the same under all circumstances.
e. None of the above is true.
f::: Where a contract for the sale of goods does not mention the
place of delivery for the
V goods, which of the following is true?
a. The seller IS obligated to deliver the goods to the buyer's
place of business.
b. The contract fails for failure to state a material term.

c. The seller is obligated to deliver the goods at the seller's
place of business.
d. Sellers without a place of business are obligated to deliver
the goods at the seller's
home.
e. Both C and 0 are true.
I
4~nder the UCC, if an offer is received by mall, the acceptance:
L
a. can be made by another means, but only if the offer so
states.
b. must also be made by mail
c. can be made in any commercially reasonable manner
d. is effective on Iy once it is received by the offeror.
e. can be canceled by the offeree at any time during the
period of a firm offer.
270
clef
Business
Law
a.
b.
c.
d.
e.
)he parol evidence rule would not allow
which of the following items Into
evidence
when interpreting a written contract?
EVidence of the meaning of a term in the parties' line of
business that differs from the
meaning of that term in everyday language.

Evidence based on prior conduct in similar contracts between
the parties to explain
the meaning of an ambiguous term in the contract.
Evidence of a price change agreed upon after the contract was
signed
Evidence of an oral statement regarding the contract pnce made
when the written
contract was signed that was different from the price in the
written contract.
All the above would be allowed into evidence under the parol
evidence rule.
271
~ ~hat is required to meet the writing requirement of the statute
of frauds under the
Vu'CC?
a. I n cases where both parties are merchants, a writi ng
signed by the party to be charged
or a written confirmation of an oral agreement that is sent by
one party to the other
and not objected to by the other party; in all other transactions,
a writing signed by
the party to be charged.
b. I n cases where at least one party is a merchant, either a
writi ng signed by the party
to be charged or a written confirmation of an oral agreement
that is sent to the mer-
chant and not objected to by the merchant; in transactions not
involving a merchant,
a writing signed by the person to be charged
c. I n cases where both parties are merchants, a writing
signed by the party other than
the party to be charged at the end of the document.
d. In all cases, a writing signed by the party to be charged.
e. In all cases, a writing signed by all parties to the contract.

7) Which of the following is true relating to a "firm offer"
under the UCC?
a. It must be in writing and signed by the merchant
b. It can be made only by a merchant.
c. It may provide that the offer remain open for any period of
time up to SIX months.
d. A. Band C.
e. A and B only.
(8) ,Susan decides to buy new carpet for her home. She goes to
Carpet City and chooses
Uthe carpet she likes. As part of the deal, Carpet City agrees to
install the carpet. The
carpet is installed while Susan is at work. When she returns
home and sees it, Susan
immediately notices problems The carpet is not the same quality
of carpet she or-
dered, and the color is off. Does the UCC apply, and why or
why not?
~f'
Business Law
a. The UCC does not apply because the
deal with Carpet City included service that is not
covered by the UCC
b. The UCC does not apply because it does not apply to
mixed contracts of goods and
services.
c. The UCC applies because it applies to service contracts as
well as to contracts for the
sale of goods.
d. The UCC applies because the predominant part of the
transaction between Susan and
Carpet City was the sale of goods.
e. The UCC does not apply because Susan and Carpet City

did not agree in writmq be-
fore the carpet was installed that the UCC would apply.
@iCh of the following situations creates a sale that falls under
UCC sales law rules?
a. Dr. Mackey agrees to teach at Pollak university for 1 year.
b. Abc rentals rents a cement mixer to Isabel
c. Katherine makes a contract to purchase a shed that requires
assembly. The contract
price is for $8 000.00 which includes $400.00 for labor.
d. Allison contracts to pay Mike $880.00 to have her bedroom
painted. $800.00 is
for labor and $80.00 is for the paint.
e. All of the above are UCC sales contracts.
!~ ~~eller who is located in Atlanta, Georgia contracted to sell
a shipment of peaches to
L/the 1910 fruit gum company located In Buffalo, New York.
The peaches were sold
f.o b. Buffalo. Seller delivered the peaches to the proper earner
in Atlanta and the
peaches were destroyed during shippmg. Under these facts:
a. Seller bears the risk of loss and IS responsible.
b. Seller and buyer share the risk of loss.
c. This is a trick question; goods can t be shipped f.o.b.
Buffalo.
d. Buyer bears the risk of loss and IS responsible
e. Neither the seller nor the buyer bear risk of loss, the
carrier bears the risk of loss.
G :V~h of the following is true regarding a shipment contract?
a. Such contracts require the seller to bear the risk of loss to
the goods during their
transportation.
b. The risk of loss does not pass until the goods are tendered
to the buyer at the speci-
fied destination.
c. It requires the seller to deliver conforming goods to the

buyer by use of the seller's
own trucks.
d. It requires the seller to ship goods conforming to the
contract to a buyer via a carrier.
e. It requires the seller to deliver conforming goods to a
specific destination.
ff
Business
Law
~
12) When a seller breaches a contract for
the sale of goods by delivering
V nonconforming
goods that are so nonconforming that the buyer has the right to
reject them, the risk
of loss:
a. is unaffected by the seller's breach.
b. is transferred to the buyer as a matter of law within 24
hours.
c. remains on the seller until the nonconformity is cured or
the buyer accepts the non-
conform i ng goods
d. remains on the seller indefinitely.
e. is transferred to the buyer upon delivery of the
nonconforming goods, but is trans-
ferred back to the se lIer if the buyer returns the goods.
r) nder Article 2A of the UCC, for which types of lease(s) is the
risk of loss on the les-
~or d uri ng the term of the lease?
a. Ordinary leases.
b. Both ordinary and finance leases
c. Finance leases.
d. Neither ordinary nor finance leases.

e. Loss-shifting leases.
~1n Lindholm v. Brandt, when Malmberg sold Lindholm's "Red
Elvis" to Brandt, the
court found that:
a. Malmberg had been entrusted with the artwork but had a
void title because he
breached the terms of the entrustment so he couldn't pass good
title to Brandt.
b. Malmberg had been entrusted with the artwork and could
pass the voidable title to
Brandt because Brandt qualified as a good faith purchaser
c. Malmberg had stolen the artwork and could pass the void
title to Brandt because
Brandt qualified as a good faith purchaser.
d. Malmberg had been entrusted with the artwork and could
pass the void title to Brandt
because Brandt qualified as a good faith purchaser.
e. Malmberg had stolen the artwork, so he couldn't pass his
void title to Brandt.
"
( 1 c)JOSh had a computer that needed repair. He took the
computer to a used computer
Y dealer that repaired computers as well. While talking with
the owner, Josh learned
that the owner also knew how to repair bicycles. Josh happened
to need some re-
pairs done on his bike, so he left it at the computer shop as
well. A week later, Josh
went to pick up his bike and computer. When he got to the
store, the owner said he
had bad news. He had hired a new employee who was totally
incompetent and had
sold a number of items that were in for repair. He sold both
Josh's computer and his
bike. The store owner knows who purchased them from the
credit card records. In

this situation, assuming he can locate the purchasers, Josh can
recover:
a. his computer but not his bike.
b. both his bike and his computer.
c. his bike, but not his computer
d. neither his bike nor his computer.
e. the computer only if Josh can establish that the purchases
had not resold it.
)
(;;[ Assuming that goods are nonconforming and that the
nonconformity substantially
impairs their value to this buyer, which of the following
additional factors must be
present for a valid revocation of the acceptance of goods?
pp
Business
Law
a.
b.
c.
d.
e.
(
17)
a.
b.
c.
d.
e.
.-...

L8)
a.
b.
c.

d.
e.
19)
Nothing else is necessary to revoke the acceptance of the goods.
The cocos were accepted on the reasonable assumption that the
seller could and
would cure the nonconformity.
The goods were accepted before the nonconformity was
discovered, and the noncon-
formity was difficult to discover.
Both Band C must be present in order to revoke the acceptance
of the goods.
If either B or C is present, the acceptance of the goods can be
revoked.
I
Which of the following must be met in every Instance in order
to revoke an accep-
tance of goods?
The seller s promise to cure the nonconformity has not been
met.
The seller must have fully paid for the goods prior to
revocation.
The nonconformity is one that substantially impairs the value of
the goods.
The goods were accepted before discovery of the nonconformity
and the seller had
assured the buyer that the goods were conforrnnq.
The goods were accepted before discovery of the nonconformity
and the nonconfor-
m ity was one that was d iffic u It to discover.
)
Which of the following is true regarding the rights of the buyer
or lessee if the goods
fai I to conform to the sales or lease contract in any way?
The buyer or lessee may accept the whole.

The buyer or lessee may reject the whole.
The buyer or lessee may accept any commercial Unit and reject
the rest.
Both A and B are true.
Both A, B, and C are true.
What is the right of the buyer or lessee to purchase or rent
substitute goods if the
seller or lessor fails to make delivery of the goods called?
a. The right to recovery.
b. The right to purchase.
c. The nght to cover
d. The right to recoup.
e. The right to capture.
G'wlJat are the rights of the aggrieved party If an anticipatory
repudiation occurs?
a. The aggrieved party may await performance by the
repudiating party for a commer-
cially reasonable time.
b. The aggrieved party must await performance for 7 days.
c. The aggrieved party may await performance for 48 hours.
d. The aggrieved party may treat the contract as breached at
the time of the anticipatory
repudiation which gives the aggrieved party an immediate cause
of action.
e. Both A and D.
&iCh of the following is presumed to become part of the "basis
of the bargain"?
274
Business Law
275
a. Statements of "puffing".
b. All statements of opinion by the seller.
c. All statements of fact by the seller at the time the contract

is made.
d. A and Conly.
e. A and B only.
@hiCh of the following best describes a defect in packaging
under products liability'
a. The packaging of a product fails to contain necessary
warnings about the dangers
associated with a product.
b. The packaging of a product is such that it allows the
product to spoil.
c. The packaging of a product contains misleading or
deceptive information about the
product contained inside.
d. The packaging of a product, such as a bottle or can, causes
an injury to the user.
e. The packaging of a product allows children to access a
product, such as drugs or
poisons, that is generally safe when used as directed, but can be
harmful if not used
properly.
Dn Elsroth v. Johnson & Johnson, involving cyanide placed in
Tylenol capsules causing
Uiane Elsroth's death, the court found:
a. the construction of tamperproof packaging is impossible.
b. Johnson & Johnson had not followed Food and Drug
Administration guidelines appro-
priately by using only three tamper resistance techniques when
a minimum of four
were required.
c. liability for defective design involves the product itself but
not the product packaging.
d. A and B only.
e. A and Conly.
A Philip MorrisUSA v. Williams, the Supreme Court looked at
the issue of punitive
~mages in product liability suits and decided:

a. the Due Process Clause of the Constitution forbids the use
of punitive damages to
punish a defendant for injuries to non parties.
b. treble punitive damages are warranted in product liability
cases.
c. punitive damages are not permitted in product liability
suits.
d. punitive damages may not exceed 9X the compensatory
damages.
e. the Equal Protection Clause of the Constitution forbids the
use of punitive damages to
punish a defendant for injuries to non parties.
8WhiCh of the following best describes the defense of
correction of a defect?
a. The defense applies even in a situation where a user
received a recall notice to correct
the defect but did not comply with the notice.
b. It applies only if the manufacturer replaces the defective
product at no additional
charge to the owner.
c. The defense applies only if the particular sample of the
item was repaired, thus fixing
the defect.
d. The defense applies if the user realizes there is a defect
and assumes the risk.
e. The defense applies if a product is redesigned such that
future production does not
contai n the defect.
Welcome!
For this course, you will read each chapter of the US History
text (green cover). While you read, you will take notes on each
chapter using Cornell, outlining, etc. You will turn in your
notes to me. Then, you will complete chapter questions, video

responses and primary source analysis online, too. Finally, you
will take one quiz per unit on the material, as well as a final at
the end of each semester, which will all be online.
Thank you and please let me know should you have any
questions or concerns.
When students begin to study US History, many are
apprehensive to learn dates and figures, events and people.
Others squirm when they think about a bunch of dead guys that
did a bunch of stuff. Still, some actually look forward to
studying our nation's heritage and the path that has led us to
where we are today. In half a page, please explain how you feel
about US History. Do you enjoy studying US History? What are
you looking forward to studying this year? What are you
apprehensive about? Submit your assignment here to Moodle by
uploading the file. If you have any questions, please email or
come by. Good luck!
· Due Dates:
Intro Journal & Questionnaire: Tuesday, June 18
Units 1 & 2: Friday, June 21
Unit 3&Semester 1 Final&Unit 4: Friday, June 28
Unit 5 & Unit 6: Friday, July 5
Final: Tuesday, July 9
Unit 1: Chapters 2-4 & 6
· Chapter 2 Notes Assignment
· Chapter 2 Questions Assignment
· Chapter 2 Video Review Assignment
· Chapter 2 Primary Sources Assignment

· Extra Credit Assignment
· Unit 1 Quiz (Chapters 2-4 & 6)
Unit 2: Chapters 7-9
· Chapter 7 Videos Assignment
· Chapter 8 Reading Questions Assignment
· Unit 2 Quiz (Chapters 7-9)

· Unit 3 Quiz
· Semester 1 Exam Quiz
Unit 4: Chapter 13-17
· Chpater 13 Reading Questions Assignment
· No Primary Sources for Chapter 14.
· Chapter 16 Primary Source Assignment

5
Unit 5: Chapters 18-19 & 21-22
· No Primary Source for Chapter 19
· Chapter 21 Vidoes Assignment
This topic 6

· Final

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