Business Law Homework

Business Law Homework


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  1. Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise.
    A. An offer for the sale of land.
    B. An offer to purchase stock on a stock exchange.
    C. An offer that says that it will stay open for one week.
    D. An offer with a valid five-day option attached to it.
  2. In determining whether the consideration requirement has been satisfied to form a contract, the courts will be required to decide whether the consideration
    A. was bargained for.
    B. was fair and adequate.
    C. has sufficient economic value.
    D. conforms to the subjective intent of the parties.
  3. Beal offered in writing to sell Crane a piece of land for $150,000. If Beal dies, the offer will
    A. automatically terminate prior to Crane’s acceptance.
    B. automatically terminate despite Crane’s prior acceptance.
    C. terminate prior to Crane’s acceptance only if Crane received notice of Beal’s death.
    D. remain open for a reasonable period of time after Beal’s death.
  4. Article 2 of the UCC does not apply to a sale of:
    A. ball bearings.
    B. wheat that has been harvested.
    C. corporate stock.
    D. a new car.


  1. The primary distinction between an action based on innocent misrepresentation and an action based on common law fraud is that, in the former, a party need not allege and prove
    A. that there has been a false representation.
    B. the materiality of the misrepresentation.
    C. reasonable reliance on the misrepresentation.
    D. that the party making the misrepresentation had actual or constructive knowledge that it was false.
  2. Westlake Online, an Internet services provider, includes in its “clickwrap” contract a clause stating that California courts have “exclusive jurisdiction” over subscribers’ disputes with Westlake Online. This clause will most likely be:
    A. unenforceable because it was not the result of bargaining.
    B. enforceable if it is considered reasonable by a court.
    C. unenforceable against a subscriber in another state.
    D. enforceable if the subscriber does not file a motion to dismiss.


  1. A valid assignment always requires:
    A. consideration.
    B. writing.
    C. filing with a local court.
    D. an intention to assign.
  2. In deciding whether consideration necessary to form a contract exists, a court must determine whether
    A. the consideration given by each party is of roughly equal value.
    B. there is mutuality of consideration.
    C. the consideration has sufficient monetary value.
    D. the consideration conforms to the subjective intent of the parties.
  3. The standard of proof in a criminal case is:
    A. proof by a preponderance of the evidence.
    B. proof beyond a reasonable doubt.
    C. proof that is “more likely than not”.
    D. proof beyond a shadow of a doubt.
  4. Which of the following best illustrates duress?
    A. Bob was to deliver goods worth $500 to Pam on October 1, but failed to do so. Pam tells Bob that unless he pays her $600, which it cost her to obtain goods from another supplier, she will sue him in court.
    B. Diana, a real estate agent, brings her car in for repair at Eric’s Auto Repair. After examining the car, Eric gives Diana a $500 estimate for the work to be done. Diana needs her car to do her job, so she reluctantly agrees to the repairs.
    C. Len has contracted to sell goods to Mel. Knowing that Mel needs the goods to be delivered on a specific date, Len threatens to withhold delivery on that date unless Mel agrees to pay a higher price.
    D. Bill persuades his elderly mother to withdraw her life savings from the bank and make an interest-free loan to him.
  5. 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 lawyer 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?
    A. Forum selection clause
    B. Confession of judgment clause
    C. Jurisdiction selection clause
    D. Parties selection clause
  6. D owes C a debt the amount of which is subject to a good faith dispute. The parties agree to settle the debt, with D promising to pay C $15,000 and C promising to release D on the $25,000 debt. The settlement agreement:
    A. is supported by consideration.
    B. lacks consideration because C is not giving D any legal value.
    C. lacks consideration because D is promising to perform a preexisting legal obligation.
    D. is binding under UCC section 2-209 even though there is no consideration.
  7. An important difference between duress and undue influence is that:
    A. duress always makes contracts void, while undue influence makes contracts voidable.
    B. duress involves physical compulsion, while undue influence involves economic compulsion.
    C. the scope of duress has contracted since the 19th century, while the scope of undue influence has expanded since the 19th century.
    D. duress is wrongful coercion while undue influence is unfair persuasion.
  8. Strict liability offenses:
    A. dispense with the requirement of proof of any criminal intent on the part of the defendant.
    B. are so classified because the punishments imposed on violators are especially harsh in comparison to the punishments for other criminal offenses.
    C. impose liability on a defendant for the act of another party.
    D. are commonly criticized on the ground that a person may not be convicted of such an offense without being shown to have committed a wrongful act.
  9. Once an assignment occurs, the assignee acquires:
    A. limited rights.
    B. greater rights than the assignor.
    C. same rights as the assignor had prior to assignment.
    D. no rights at all.
  10. Jim saw an advertisement in the Daily News stating the Wolf Sporting Goods Store was “offering to sell Browning shotguns, model 100, for $400.” Jim went the next day to Wolf’s store and said “Here is $400, I accept your offer to sell me a Browning model 100 for $400”. Has an enforceable contract been formed?
    A. Yes, because the ad was an offer.
    B. Yes, because the price was less than $500.
    C. No, because the ad was not a contract offer.
    D. No, because the acceptance was oral.
  11. In order for the consideration requirement in contracts to be met:
    A. the consideration given by each party must be of roughly equal value.
    B. each party must give consideration.
    C. the consideration must have monetary value.
    D. the consideration must consist of some form of property.
  12. A court has held that a certain contract violates public policy. This contract will be treated the same as:
    A. an illegal contract.
    B. a contract between a minor and an adult.
    C. a private contract.
    D. a public contract.
  13. Which of the following damages can be recovered by plaintiff who usually wins a tort case?
    A. Injunction
    B. Punitive
    C. Compensatory
    D. Damages for mental agony
  14. Ahmed promises to sell his boat to Mendel, and Mendel promises to buy it from Ahmed. What type of contract is this?
    A. A unilateral contract
    B. A quasi contract
    C. A bilateral contract
    D. A promissory estoppel contract
  15. Which of the following is least likely to constitute ratification of a contract made by a minor?
    A. Performing one’s duties under the contract after reaching the age of majority.
    B. Accepting performance from the other party to the contract after the age of majority.
    C. Failing to disaffirm a completely executory contract within one month after the age of majority.
    D. Making an oral statement that “I ratify the contract.”
  16. Which of the following is a constraint on the power of judicial review?
    A. Constitution’s explicit and clear language.
    B. Judge’s refusal to strictly adhere to the doctrine of stare decisis.
    C. Harmony between modern judicial review and democracy.
    D. Judges willingness to declare statutes unconstitutional.
  17. Payne entered into a written agreement to sell a parcel of land to Stevens. At the time the agreement was executed, Payne had consumed alcoholic beverages. Payne’s ability to understand the nature and terms of the contract was not impaired. Stevens did not believe that Payne was intoxicated. The contract is
    A. void as a matter of law.
    B. legally binding on both parties.
    C. voidable at Payne’s option.
    D. voidable at Stevens’ option.
  18. Which of the following is covered by the statute of frauds?
    A. A real estate mortgage.
    B. A $300 contract for the sale of pencils.
    C. A contract that can be performed within a week.
    D. A $100 VCR repair.
  19. In order for an offer to confer the power to form a contract by acceptance, it must have all of the following elements except
    A. communication to the offeree and the communication must be made or authorized by the offeror.
    B. sufficiently definite and certain.
    C. communication by words to the offeree by the offeror.
    D. manifestation of an intent to enter into a contract.
  20. Raj went to the Napa Valley Harvest Festival, where he stopped at Tina’s booth where she was selling paintings of vineyards. Raj admired a painting of vineyards, which did not appear to be for sale. Raj said to Tina, “I will give you $200 if you give me that painting right now.” Tina said nothing in response, but she gave Raj the painting, and Raj gave her $200 in cash. This is an example of a contract that is now:
    A. Bilateral and executed.
    B. Bilateral and executory.
    C. Unilateral and executed.
    D. Unilateral and executory.


  1. The Fourth Amendment to the U.S. Constitution requires that officers of the government may not conduct:
    A. any searches or seizures of individuals’ real or personal property.
    B. any searches or seizures of individuals’ real property.
    C. any searches or seizures of individuals’ personal property.
    D. any unreasonable searches or seizures of individuals’ real or personal property.
  2. The law enforcement officers searched the house of co-occupants Ron, Jeff and Joe for firearms without a warrant. Ron consented to the search, while the others objected to the intrusion of their privacy. Is this a violation of the Fourth Amendment?
    A. No, because Ron has consented to the search.
    B. No, because consensual searches without warrants does not violate the Fourth Amendment.
    C. Yes, because searches without warrant are unconstitutional.
    D. Yes, because other co-occupants present at the time of the search had objected to the search.
  3. Which of the following defines “transferred intent”?
    A. A person who is liable for his negligence.
    B. A defendant who is liable for another person’s illegal act.
    C. Master who is liable for servant’s act during his employment.
    D. A defendant who intends to injure one person but actually injures another.
  4. Store owners’ “conditional privilege” defense against intentional tort claims brought by detained shoplifting suspects, recognized by most states, usually:
    A. requires only that the store owner acted with reasonable cause in detaining the suspect.
    B. requires only that the store owner detains the suspect for a reasonable length of time.
    C. extends only to false imprisonment claims.
    D. requires that the store owner act with reasonable cause, in a reasonable manner, and detain the suspect for only a reasonable length of time.
  5. What is the main difference between an assignment and a novation?
    A. In a novation the original obligor is completely discharged from his/her obligations under the contract.
    B. In a novation the original obligee is completely discharged from his/her obligations under the contract.
    C. In a novation the original obligor remains secondarily obligated.
    D. In a novation both the original obligee and the original obligor remain obligated.
  6. Which of the following is not a basic element of contract?
    A. An offer and an acceptance of that offer
    B. Consideration
    C. Contractual capacity
    D. Any objective
  7. Mitch, an attorney, accepts an offer for an attorney position at The Firm. Grisham, the managing partner of The Firm, sends Mitch an Employment Policy Manual, which contains policies regarding attendance and confidentiality prior to Mitch’s first day. Grisham includes a note advising Mitch to carefully review the Manual as he would be expected to adhere to its policies. During his first week at The Firm, Mitch is seen leaving the office at noon with copies of files tucked under his arm and not returning. He is also observed giving the copied files to a man not associated with The Firm. At the end of the week, Mitch is terminated for violating the terms of the Employment Policy Manual. Which of the following is true?
    A. Mitch may recover his moving expenses under the doctrine of promissory estoppel.
    B. The Firm breached its express contract with Mitch by terminating him.
    C. The Employment Policy Manual is part of the implied contract between Mitch and The Firm.
    D. The Firm may recover Mitch’s salary under the doctrine of quasi-contract
  8. Sandra took advantage of a confidential, trusting relationship with Ruth when they entered into a contract. Now Ruth has a remedy based on:
    A. duress.
    B. unconscionability.
    C. undue influence.
    D. fraud in the execution.
  9. The Double Jeopardy Clause:
    A. establishes that a person cannot be prosecuted by the state for a state crime after being acquitted of a federal crime, if the two alleged crimes involved essentially the same facts.
    B. establishes that a single criminal act with multiple victims cannot result in more than one criminal prosecution.
    C. protects criminal defendants from having to undergo more than one prosecution by the same sovereign for the same criminal offense.
    D. bars a private plaintiff from pursuing a civil case.
  10. Statute of State X provides that every sale of fertilizer should be accompanied with a statement prescribing particulars as to quantity, price, date, name of consumer etc. at the time of its sale and delivery. John, a fertilizer seller, prepares the statement and offers it to the buyer, but fails to give it at the time of delivery. This agreement:
    A. is unenforceable.
    B. is illegal.
    C. is voidable.
    D. is enforceable.
  11. With regard to an agreement for the sale of real estate, the Statute of Frauds
    A. does not require that the agreement be signed by all parties.
    B. does not apply if the value of the real estate is less than $500.
    C. requires that the entire agreement be in a single writing.
    D. requires that the purchase price be fair and adequate in relation to the value of the real estate.
  12. “Books are Us” (BU) is a bookstore. BU is being sued for defamation after it sold a book containing false, defamatory statements about the plaintiff. BU’s best defense to this lawsuit is that:
    A. BU is not the distributor of the book
    B. BU is not the publisher of the book
    C. BU did not intend to harm the plaintiff
    D. BU did not violate any criminal law or regulation in selling the book
  13. Sally wanted to replace the old carpet in her home. She entered into a contract with Good Carpet Co. (GCC) for the purchase and installation of a new carpet. The price of the carpet was $3,000 and the cost of the labor to install the carpet was $150. Later Sally became dissatisfied with this transaction and wants to sue GCC. Sally wants to apply the contract rules of the UCC, but GCC wants to apply the contract rules of the common law. Which source of law should govern this case?
    A. The contract rules of the UCC apply, because the contract included the sale of goods.
    B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods.
    C. The contract rules of the common law apply, because the contract included services, which are governed by the common law.
    D. The contract rules of the common law apply, because all contracts are governed by the common law.
  14. Which of the following will be legally binding on all the parties despite the lack of consideration?
    A. A promise to donate money to a charity which was relied upon by the charity in incurring large expenditures.
    B. An oral employment agreement for a term of nine months from the date the agreement was formed.
    C. An irrevocable oral promise by a merchant to keep its offer open for 60 days.
    D. A material modification signed by the parties to a contract to purchase and sell a parcel of land.
  15. Generally, contracts entered with a minor are voidable. However there are certain statutorily carved exceptions to the right to disaffirm. Which of the following is not an exception?
    A. Transaction of medical insurance contract.
    B. Transaction of buying a car.
    C. Transaction of educational loan.
    D. Transaction of marriage.
  16. Amos entered into a contract with Jerry for the sale of Amos’ boat. Which set of legal rules governs this transaction?
    A. Contract rules of the Common Law
    B. Contract rules of the Uniform Commercial Code
    C. Equity rules that ensure fairness in transactions
    D. Marine law
  17. The actions that an appellate court takes usually include:
    A. receiving new evidence if it was not available at the trial.
    B. correcting legal errors made by the trial judge.
    C. making a new, more correct determination of the facts.
    D. correcting the factual errors of the case.
  18. The Statute of Frauds
    A. prevents the use of oral evidence to contradict the terms of a written contract.
    B. applies to all contracts having consideration valued at $500 or more.
    C. requires the independent promise to pay the debt of another to be in writing.
    D. applies to all real estate leases.
  19. You purchased your home in 1995 and took out a mortgage at that time with an interest rate of 5%. Now you want to sell the home. Current interest rates are 6.5%. The buyer would like to “take over” your mortgage and pay the lower interest rate. This might be possible under what legal procedure?
    A. Accord and satisfaction
    B. Assignment
    C. Status quo
    D. Discharge
  20. In which of the following circumstances is a debt settlement not a binding contract?
    A. Where the amount of the debt is uncertain or subject to dispute.
    B. Where the amount of the debt is certain and undisputed.
    C. Where the only consideration the creditor gives the debtor is his promise not to sue the debtor on the original debt.
    D. Where the settlement is part of a composition agreement.
  21. On May 1, A makes a written offer to B for the sale of A’s car. On May 2, A mails B a letter revoking the offer. On May 3, A telephones B to tell him that he is revoking the offer. On May 4, B learns that A has sold the car to C. On May 5, A’s letter finally gets to B. A’s offer terminated on:
    A. May 2.
    B. May 3.
    C. May 4.
    D. May 5.
  22. In which of the following cases is avoidance of a contract for mutual mistake least likely?
    A. Where the adversely affected party contracted with conscious knowledge that he did not know a fact that wound up hurting him.
    B. Where the parties are mistaken about a basic assumption that they never consciously considered.
    C. Where the adversely affected party gets less value out of the contract and the other party gets an unbargained-for windfall.
    D. All of the above make it very unlikely that either party can avoid the contract due to mutual mistake.
  23. You wish to download free software from the Internet. The download procedure includes a page titled “download now” that asks you to “please review” the licensing agreement that is available to you on another web page. The “download now” page has a button that initiates the download process. You click that button, without going to the licensing agreement page. The licensing agreement page contains an arbitration provision. Are you bound by this provision?
    A. Yes, because the “please review” statement in the “download now” page informed you of the licensing agreement.
    B. Yes, because when you clicked the button to initiate the download process you agreed to the provisions in the licensing agreement.
    C. No, because you did not perform an action that indicated your assent to the licensing agreement.
    D. No, because clicking on the software button cannot indicate assent to a contract.
  24. Which of the following is false about the power of courts?
    A. Courts are not absolutely bound to favor one technique of statutory interpretation over another.
    B. Courts can distinguish prior decisions in common law cases.
    C. State Supreme Courts can overrule their own prior decisions.
    D. Trial courts can decide abstract propositions of law even though there is no real case or controversy between existing parties with a tangible stake in the outcome of the controversy.
  25. In an assignment/delegation, which party remains secondarily liable on the obligation that has been delegated?
    A. Assignor/Delegator
    B. Assignee/Delegatee
    C. Third party
    D. Obligee
  26. Which of the following is false regarding equity?
    A. Today, most states have abolished separate equity courts.
    B. The typical equitable remedy is money damages.
    C. The rules of equity are not very precise and technical.
    D. Equitable principles cannot defeat statutes.
  27. A contract whose formation is induced by duress (force or compulsion) is:
    A. void.
    B. voidable.
    C. unenforceable.
    D. executory.
  28. A newspaper advertisement made to the general public:
    A. usually is an offer.
    B. can be revoked by using a similar newspaper advertisement.
    C. can only be rejected by using a similar newspaper advertisement.
    D. is a firm offer that cannot be revoked.
  29. Joe sells his business to Shirley. During the negotiations, Joe negligently tells Shirley that the business has turned a profit for the last five years. In reality, the business operated at a loss for each of those years. However, Shirley did not hear Joe’s misstatement. Shirley cannot rescind the contract because:
    A. Joe’s false statement was negligent rather than intentional.
    B. Joe’s misstatement was not material.
    C. Shirley did not actually rely on Joe’s misstatement.
    D. Shirley did not justifiably rely on Joe’s misstatement.
  30. Anti-assignment clauses in contracts generally are:
    A. enforceable but read narrowly.
    B. enforceable and read broadly.
    C. unenforceable because they are unconscionable.
    D. unenforceable because they are void.
  31. Able Co. entered into a contract with Baker Co. for the sale of goods. Both parties are merchants under the UCC. Each party used its own form as an offer and acceptance. On the back of each form there were minor terms that conflicted with each other. What is result of these minor differences in terms on the forms used by the parties?
    A. There is no contract here because there is no “mirror image” between the offer and the acceptance.
    B. There is no contract here because there is no “meeting of the minds.”
    C. A contract does result, and it includes Baker’s terms.
    D. A contract does result, and it includes the terms agreed upon plus gap-fillers from the UCC.
  32. Dave tells Dora that Phil, a financial advisor, has been stealing money from his clients. Dora then repeats Dave’s statement to Tom, telling Tom that the information comes from Dave. All these statements are oral, defamatory, and false. Phil sues Dave and Dora for defamation. Which of the following is true? Don’t consider defenses and privileges.
    A. Phil can recover against Dave and Dora without proving special damages.
    B. Because Dora only repeated Dave’s statement and identified Dave as its author, she can’t be liable to Phil.
    C. Because Dave only communicated his statement to Dora, and not to an appreciable number of people, he can’t be liable to Phil.
    D. Phil must prove special damages in order to recover against Dave and Dora.
  33. Carter owns a parcel of land. Smith, one of Carter’s closest friends and an attorney, has persuaded Carter to sell the land to Smith at a price substantially below fair market value. At the time Carter sold the land he was resting in a nursing home recovering from a serious illness. If Carter desires to set aside the sale, which of the following causes of action is most likely to be successful?
    A. Duress
    B. Undue influence
    C. Fraud
    D. Misrepresentation
  34. Which of the following is not a complete defense to criminal liability?
    A. Intoxication
    B. Voluntary intoxication
    C. Infancy
    D. Insanity
  35. To announce the grand opening of a new retail business, Hudson placed an advertisement in a local newspaper quoting sales prices on certain items in stock. The grand opening was so successful that Hudson was unable to totally satisfy customer demands. Which of the following statements is correct?
    A. Hudson made an invitation seeking offers.
    B. Hudson made an offer to the people who read the advertisement.
    C. Anyone who tendered money for the items advertised was entitled to buy them.
    D. The offer by Hudson was partially revocable as to an item once it was sold out.
  36. Assume that an applicable state statute makes it a crime for a private citizen to own or possess a machine gun. For approximately three weeks, police officer Joe Monday had had probable cause to believe that Lemuel “Lemme” Wastem, a private citizen, possessed an arsenal of machine guns in his apartment. Acting on this probable cause but without a warrant, Monday knocked on the door of Wastem’s apartment late one evening as Wastem was writing a letter to his mother. Monday asked whether he could come in to talk to Wastem. Wastem let Monday in. Then, without Wastem’s consent, Monday began searching the apartment. He proceeded down a hall, through a closed door to Wastem’s bedroom, and opened the also-closed door to Wastem’s bedroom closet. There, Monday found several machine guns sitting on the floor of the closet. He arrested Wastem for an alleged violation of the statute mentioned above. In a pre-trial motion, Wastem’s attorney has asked that the court apply the exclusionary rule and suppress the evidence yielded by Monday’s search of Wastem’s apartment. Should the evidence be suppressed?
    A. No, because Monday had probable cause to believe that Wastem had the machine guns in his apartment.
    B. Yes, because the unconsented search did not fall within the exceptions to the general rule that warrantless searches are unreasonable.
    C. No, because Wastem voluntarily allowed Monday to enter the apartment and because the machine guns were in plain view in the closet.
    D. Yes, because the search, though warrantless, was conducted by an officer who was acting to further the public’s safety.
  37. The effect of a valid delegation of duties is that it:
    A. discharges the delegator from any further liability.
    B. is an automatic novation.
    C. discharges the obligee from any further liability.
    D. appoints the delegatee to perform the delegator’s duty to the obligee.
  38. You are standing on a street corner. A truck belonging to the Safety First Trucking Co. (SFTC) carrying radioactive nuclear waste has a tire blown out, which causes the truck to overturn near you. Radioactive waste escapes from the truck and covers half your body. As a result, you suffer serious medical harm. What legal theory of recovery is available to you and will not require you to prove that SFTC was at fault?
    A. Negligence
    B. Express warranty
    C. Implied warranty
    D. Strict liability
  39. When is the revocation of an offer effective?
    A. When received by the offeror
    B. When received by the offeree
    C. When sent by the offeree
    D. When sent by the offeror
  40. Edna is the leading brain surgeon in the United States. She enters into a contract to perform a difficult brain operation on Ben. Edna is very busy and wants to assign this contract to a less experienced surgeon, Charles. This would be Charles’ first operation of this type. Ben can object to this assignment and prevent it because the contract between Ben and Edna is:
    A. a contract for services to be performed in the future (executory).
    B. a contract involving personal skill.
    C. a services contract.
    D. an employment contract.
  41. Ian, a lawyer, sent an offer to Raymond on October 1 offering to sell Ian’s car for $5,000. The offer did not contain a provision stating when it would terminate. Under these circumstances, when will that offer terminate?
    A. After 5 days, as per the “5 day rule.”
    B. After 10 days, as per the “10 day rule.”
    C. After a “reasonable” period of time.
    D. The offer will not terminate until either Ian or Raymond communicate that their willingness to enter that transaction has ended.
  42. Edna, who runs a flower shop, sells Jim a shotgun. Jim is unemployed, and Edna has never before sold a firearm in her life. Which of the following is true?
    A. Article 2 of the UCC applies because Edna is a merchant.
    B. Article 2 of the UCC applies because a shotgun is a movable thing.
    C. Article 2 of the UCC does not apply because Edna is not a merchant with respect to shotguns.
    D. Article 2 of the UCC does not apply because Jim is not a merchant.
  43. Pam bought Mississippi State Lottery tickets. Several days later, she learned that someone had won the lottery but that the winner had not yet come forward. She searched for her ticket to see if she had selected the winning numbers, but was unable to find it.
    Although the lottery ticket was gone, Pam still possessed the play slip she had used when she purchased the ticket. She checked the numbers on the play slip and discovered that she had the winning numbers for the lottery.
    Reasoning that the play slip would satisfy the Lottery office, Pam laid her claim. The Lottery Office took the position that Pam needed to produce the actual winning ticket as per the rules, and it denied her claim. Pam sued the Lottery Office for breach of contract and unjust enrichment. Will she succeed?
    A. Yes, because the pay-slip should be proof enough to substantiate her claim on the prize money.
    B. Yes, because this is a good faith claim and Lottery Office should accept Pam’s pay-slip as proof of her winning the lottery.
    C. No, because Pam had made a mistake in losing the original ticket.
    D. No, because the rules of the contract prescribed the ticket must be shown to claim the money. Pam had accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money.
  44. Which of the following is true regarding promissory estoppel?
    A. It requires that the promisor should reasonably expect to induce the promisee’s action or forbearance.
    B. It requires a written promise.
    C. It requires consideration.
    D. It applies only when one or both parties is a merchant.
  45. Which of the following contracts or contract provisions is most likely to be enforced?
    A. A gambling contract.
    B. A contract that violates a licensing statute whose aim is regulatory.
    C. A contract that violates a licensing contract whose aim is to raise revenue.
    D. A loan agreement that charges an interest rate which exceeds the limit set by state law.
  46. Carlos signed a contract to work as an auto parts manager for Jones Chevrolet. This contract is governed by:
    A. Article 2 of the UCC.
    B. state common law.
    C. the doctrine of promissory estoppel.
    D. the law of quasi contract.
  47. Administrative agencies make:
    A. executive orders.
    B. agency decisions.
    C. ordinances.
    D. common law.
  48. Polk is seeking to avoid performing a promise to pay Lake $800. Polk is relying upon lack of consideration on Lake’s part sufficient to support his promise. Polk will prevail if he can establish that
    A. Lake’s only claim of consideration was the relinquishment of a legal right.
    B. prior to Polk’s promise, Lake had already performed the requested act.
    C. the contract is executory.
    D. Lake’s asserted consideration is only worth $250.
  49. Sue wanted to purchase a car. She went to “Honest Bob’s” used car sales. She was interested in a classic 1956 Jaguar XK 140 roadster. Bob told her “this is a great car – it runs like a dream, it is a sweet ride”. Bob’s statements are legally considered to be:
    A. opinion statements.
    B. material representations.
    C. non-material representations.
    D. fraudulent, if they are false.
  50. Arnold agrees to lease Bob the fourth floor of his house. Arnold himself resides on the second floor. The person typing the contract strikes the wrong key, and the contract reads, “second floor.” Neither Arnold nor Bob notices this error when they read and sign the contract. What will the Court do?
    A. Avoid the contract
    B. Rescind the contract
    C. Enforce the contract
    D. Reform the contract
  51. A minor entered into a contract with GEM & Co. On attaining majority, he wishes to enforce the contract, the adult party must:
    A. perform the contract.
    B. rescind the contract.
    C. abandon the contract.
    D. ratify the contract.
  52. Joe goes to the dentist to have a tooth extracted. Joe never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later the dentist bills Joe, and Joe refuses to pay. After that, the dentist sues Joe. Which of the following is true?
    A. The dentist can recover under quasi-contract.
    B. The dentist cannot recover under an implied contract theory.
    C. The dentist can recover under the doctrine of promissory estoppel.
    D. The dentist cannot recover because there was no express contract here.
  53. Which of the following is most likely to be classed as a nuisance (rather than as a trespass to land)?
    A. Firing a machine gun through an adjoining landowner’s airspace.
    B. Chasing another person onto an adjoining landowner’s land.
    C. Leaving smelly, unsanitary garbage on your ex-landlord’s land after the expiration of your lease.
    D. Allowing thick smoke from your manufacturing operations to continually drift over an adjoining landowner’s land.
  54. Martin wrote Dall and offered to sell Dall a building for $200,000. The offer stated it would expire 30 days from April 1. Martin changed his mind and does not wish to be bound by his offer. If a legal dispute arises between the parties regarding whether there has been a valid acceptance of the offer, which one of the following is correct?
    A. The offer can be legally withdrawn for the stated period of time.
    B. The offer will not expire before the 30 days even if Martin sells the property to a third person and notifies Dall.
    C. If Dall categorically rejects the offer on April 10, Dall cannot validly accept within the remaining stated period of time.
    D. If Dall phoned Martin on May 30, and unequivocally accepted the offer, a contract would be created, provided that Dall had no notice of withdrawal of the offer.
  55. A written agreement was signed by two parties and it was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence that is offered to
    A. prove the existence of a contemporaneous oral agreement that modifies the contract.
    B. prove the existence of a subsequent oral agreement that modifies the contract.
    C. explain the meaning of an ambiguity in the written contract.
    D. establish that fraud had been committed in the formation of the contract.
  56. Non-compete clauses in contracts:
    A. are never enforced because they violate anti-trust laws.
    B. are never enforced because they are unethical.
    C. are always enforced under the doctrine of “freedom of contract”.
    D. are sometimes enforced if they are reasonable.
  57. In order to satisfy the consideration requirement to form a contract, the consideration exchanged by the parties must
    A. have a monetary value.
    B. conform to the parties subjective intent.
    C. be legally sufficient.
    D. have approximately the same value.
  58. Ann is troubled with the noise of the old generator set up by her neighbor Jose at his residence. The noise the generator makes is unbearable. Ann sues Jose for nuisance. Will she succeed?
    A. No, because it is reasonable noise
    B. No, because generator is not her personal property
    C. No, because she cannot interfere with Jose’s personal matters
    D. Yes, because the noise is interfering with plaintiff’s use and enjoyment of land.
  59. Ted King, a building subcontractor, submitted a bid for construction of a portion of a high-rise office building. The bid contained material errors in computation. Lago Corp., the general contractor, accepted the bid with knowledge of King’s errors. King
    A. must perform the contract unless he can show that Lago acted fraudulently.
    B. must perform the contract according to the stated terms since his errors were unilateral.
    C. will avoid liability on the contract only if his errors were not due to his negligence.
    D. will avoid liability on the contract since Lago knew of King’s errors.
  60. Which of the following is generally true regarding the tort of conversion?
    A. It involves both real property (land and interests in land) and personal property.
    B. As its name implies, conversion always involves the transformation of the plaintiff’s property into something else–e.g., its destruction, alteration, etc.
    C. A defendant who buys or sells stolen property may be liable for conversion even if she does so in good faith and without knowledge of the theft.
    D. Conversion involves all interferences with the plaintiff’s property rights–whether serious or nonserious.
  61. The burden of proof in a civil case is
    A. beyond a reasonable doubt, based on the evidence
    B. a moral certainty, based on the evidence
    C. a preponderance of the evidence
    D. probable cause, based on the evidence
  62. Evan plans to open a Company named “Marryland” for which her trademark is “M”. This trademark in no way resembles the famous McDonald’s Trademark. However, she fears that the latter might think otherwise and sue her in future. Evan wants to take no risk and hence seeks Court’s judgment on the issue. Can she do it?
    A. Yes, she can do it under State and Federal declaratory judgment statutes.
    B. Yes, she can do it because she wishes to seek Court’s opinion.
    C. No, she cannot agitate an issue that has not yet arisen.
    D. No, she cannot agitate the issue as she knows that the two marks are not similar.
  63. Which of the following is most likely to constitute undue influence?
    A. A firm’s bribing someone to break a contract with a competitor.
    B. A clergyman’s using his position and a parishioner’s emotional susceptibility to get the parishioner to contract with the clergyman.
    C. Threatening to commence a frivolous criminal prosecution against someone, in order to get her to contract with you.
    D. Grabbing someone’s hand and forcing him to write an “x” on a contract you have prepared.
  64. Which of the following duties is least likely to be delegable?
    A. A general contractor hired to build an apartment complex.
    B. An artist hired to paint a portrait.
    C. A home repair service’s agreement to fix plumbing problems.
    D. A business’s agreement to deliver goods to a customer.
  65. 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 judgment from the account, if his suit is successful. This is:
    A. in rem jurisdiction.
    B. in personam jurisdiction.
    C. quasi in rem jurisdiction.
    D. venue.
  66. Ann contracted to draw a life portrait of Swift. The contract was signed on December 13, 2007. A week before the work was supposed to commence, Ann became insane. This contract becomes unenforceable due to:
    A. destruction of subject matter.
    B. intervening illegality.
    C. implied revocation.
    D. death or insanity of either party.
  67. Al hires Bob to move his furniture to his new house. On the day of the move, Bob does not feel like moving furniture, so he asks his friend Chuck to move the furniture. Chuck decides to leave before completing the move in order to watch a football game on TV. Al has to delay his move and hire another mover at a higher price. Al wants to sue Bob to recover for his damages. Given these facts, Al will most likely:
    A. win, because Bob is still liable to Al.
    B. win, because Bob’s duty to Al was not delegable.
    C. lose, because it was Chuck, not Al, who failed to fulfill his duty to Al.
    D. lose, because he failed to insist on Bob’s performance.
  68. How does the presence of facts that constitute promissory estoppel make a difference in the law of offer?
    A. It makes option-type promises enforceable, even without consideration.
    B. It does away with the requirement that rejections and revocations be communicated.
    C. It makes an offer automatically revocable at any time.
    D. It does away with the requirement that offers be definite.
  69. The Constitutional right to privacy exists because:
    A. the Constitution expressly provides this right in the Bill of Rights.
    B. the Supreme Court held that it is implicit in the Constitution.
    C. the right to privacy is part of Natural Law.
    D. the Founding Fathers were sensitive to the invasions of privacy committed by the British before the Revolution.
  70. An oral contract that is covered by the statute of frauds is:
    A. voidable.
    B. void.
    C. unenforceable.
    D. executory.
  71. John promised the other co-owners of ship, “Sea Fairy” that he would insure the ship for an upcoming voyage. However, John fails to insure the ship. The ship is ship-wrecked in the turbulent sea. The co-owners sue John for breach of contract. Will they succeed?
    A. Yes, because there was a valid and binding contract between the co-owners.
    B. No, because it was a purely gratuitous promise.
    C. No, because an intervening cause absolved John’s liability.
    D. Yes, because of promissory estoppels.
  72. Officers of the government may search and seize property without a search warrant when:
    A. the officers are not in hot pursuit of an armed suspect.
    B. the officers are not conducting an administrative inspection of a closely regulated business.
    C. the officers seize an article of property that is in plain view.
    D. co-occupant present at the time of the search objected to its occurrence.
  73. Statutes are often vague or ambiguous, because of all the compromises needed to secure enough political support to enact them into law. When a court must apply an ambiguous statute, it needs a tool to discern the intent of the authors of that statute. Such a tool is:
    A. the plain meaning rule.
    B. legislative history.
    C. strict construction.
    D. judicial restraint.
  74. The president of Deal Corp. wrote to Boyd, offering to sell the Deal factory for $300,000. The offer was sent by Deal on June 5 and was received by Boyd on June 9. The offer stated that it would remain open until December 20. The offer
    A. constitutes an enforceable option.
    B. may be revoked by Deal any time prior to Boyd’s acceptance.
    C. is a firm offer under the UCC but will be irrevocable for only three months.
    D. is a firm offer under the UCC because it is in writing.
  75. A and B exchanged standard forms regarding the sale of goods, but the standard forms do not agree on material terms. Under UCC section 2-207, when will there be a contract anyway? Assume that B did not make its acceptance conditional on A’s assent to any additional or different terms.
    A. Only when A and B are merchants.
    B. When B’s form is a definite and seasonable expression of acceptance.
    C. When there is conduct by one party recognizing the existence of a contract.
    D. When the offer expressly limits acceptance to its own terms.
  76. A void contract:
    A. is a contract that one or both parties can cancel at their convenience.
    B. is a contract, even though the courts will not enforce it.
    C. creates no legal obligations.
    D. is created by operation of law rather than by the agreement of the parties.
  77. Which of the following is true about the relationship between mutual mistake and unilateral mistake?
    A. It’s easier to avoid a contract on the basis of unilateral mistake than on the basis of mutual mistake.
    B. To avoid a contract on the basis of unilateral mistake, one must prove the elements needed for mutual mistake, plus something else.
    C. Mutual mistake makes a contract void, while unilateral mistake makes a contract voidable.
    D. There’s little difference between mutual mistake and unilateral mistake; in particular, each requires the same things to be proven.
  78. Parsons, a pedestrian watching a construction project, sees that a metal beam being lifted by a crane is about to drop on some unsuspecting workers. Thus, he rushes to the scene to warn the workers. For his efforts, he is struck by the falling beam. He sues the construction company in negligence. Which of the following is true? Assume that the falling beam was caused by a breach of duty on the company’s part.
    A. Parsons will recover against the company.
    B. Parsons will recover, because it is foreseeable that a pedestrian would run onto the scene of an accident such as this.
    C. Parsons will not recover, because he knowingly and voluntarily assumed the risk of being struck by the beam.
    D. Parsons will not recover, because he should have sued the worker operating the crane.
  79. Kraft Corp. published circulars containing price quotes and a description of products which it would like to sell. Rice, a prospective customer, demands the right to purchase one of the products at the quoted price. Which of the following statements is correct under general contract law?
    A. Kraft must sell the product which Rice demands at the quoted price.
    B. Rice has accepted Kraft’s firm offer to sell.
    C. Kraft has made an offer.
    D. Rice has made an offer.
  80. Mary, a self-employed 16-year-old whose parents are dead, buys a dress on credit for $50. After receiving the dress and discovering that its reasonable value is only $25, Mary tries to disaffirm the deal before paying the $50 (and while she is still 16). In this case:
    A. Mary cannot disaffirm, and she is bound to pay the full $50.
    B. Mary cannot disaffirm, but she is only bound to pay $25.
    C. Mary can disaffirm, and she can return the dress without paying for it.
    D. Mary can disaffirm, and she can keep the dress without paying for it.