Henry R.Cheeseman, University ofSouthern California
Text: Contemporary Business and Online
Sixth Edition, 2009
Multiple Choice Questions(Enter
your answers on the enclosed
What was the U.S. Supreme Court’s
reaction to a case where a business
executive was found guilty of aiding and abetting
in the bribery of an Internal
Revenue Service Agent even though the Internal Revenue Service agent had
been found not guilty of the bribery in a separate trial?
Because one of the defendants had been
found guilty, then both should
have been fou nd gu i Ity.
Because of the inconsistent
outcomes, a third combined trial was ordered to
reconcile the different outcomes.
This simply underscores the fact that
there is always the possibility that dif-
ferent juries might
reach different results in a given situation.
Because one of the defendants had been
found not guilty, they both should
have been found not gu i Ity.
in both cases were thrown out,making
it possible,though not
mandatory, that one or both defendants would have to face another trial.
2) The followers of this school of
jurisprudential thought are known as realists:
the Command School.
that believes that free market forces should
determine the outcomes to lawsuits is:
The Command School.
The Critical Legal Studies
The Law and Economics School.
4) Which of the following is an example
of an equitable remedy?
that may not be modified
fashioned by a chancery court fashioned to fit the particular situa-
Any remedy granted by the merchant court.
A remedy required
to be approved by the law court.
by a judge.
5) Which of the following
is true about the creation of courts in
The different types of courts were
created in order to handle different types of
cases, but the remedies available to the different courts
were the same.
courts were created to allow remedies that could not
be granted by
the law courts.
courts were created to allow remedies that could not be granted by
the law courts.
The merchant courts were created in
order to have more flexibility in fashion-
ing remedies than the chancery courts.
The law courts were createdin
order to have broader jurisdiction than the
6) Which of the following statements is
true about treaties?
Treaties are valid only if they do not
conflict with a statute passed by Con
The U.S. Constitution
provides that the president, with the advice and con-
sent of one-half of the Senate, may enter into treaties with foreign govern-
The U.S. Constitution provides that the
president, with the advice and con-
sent of two-thirds of the Senate, may enter into
treaties with foreign govern-
The U.S. Constitution provides that the
president,with the advice and con-
sent of three-fourths of the Senate, may enter into treaties with foreign gov-
Treaties are valid only if they do not
conflict with a statute passed by Congress
or any of the state legislatures.
7) A localzoning
lawis an example of which of the following?
8) The process of critical legal
thinking includes which of the following?
A judge must specify the issue presented
by the case.
A judge must identify the applicable law
for the case.
A judge must identify the key facts in
A judge must apply the law to the facts
to come to a conclusion that answers
the issue presented.
All the above involve the process of
critical legal thinking.
that she has been discriminated against because of her sexual
orientation. Although federal law does not prohibit this
believes that the law should be changed in order to make the members of
society more accepting of gay individuals. Mary’s beliefs most closely corre-
spond to which school of jurisprudence?
Natural Law School.
10) In what year was the U.S.
For which of the following in the U.S.
Congress can the number to which a
state is entitled change over time?
Neither senators nor representatives.
Both Senators and representatives.
All members of the U.S. Congress.
12) In relation to freedom of speech:
commercial speech receives no protection
due to its profit motive.
all speech receives the same degree of
it is not an absolute right.
commercial speech receives
thesame protection as any other speech or any
most speech critical of the government
can berestricted because such
speech can be destabilizing.
13) Which of the following
is true regarding obscene speech?
Because the definition
of obscene is so subjective,it
cannot be restricted or
Obscene speech and offensive speech
receive the same degree of protection.
Even though the definition
of obscene speech is subjective, if speech is deter-
mined to be obscene, it loses all constitutional
It cannot be prevented, but can be
subject to time, place or manner restric-
The U.S. Supreme Court
has set out a clear definition of what speech is de-
fi ned as obscene and therefore unprotected.
Whichof the following types of speech are unprotected meaning that they are
not protected by the First Amendment and may be totally forbidden by the
Speech thatincites the violent or revolutionary overthrow of the government.
Fighting words that are likely to provoke a hostile or violent response form an
Dangerous speech (including suchthings as yelling “fire” in a crowded the-
All the above are unprotected speech.
None of the above are unprotected speech.
Which of the following would be a violation of the freedom of religion protec-
tionsin the U.S. Constitution?
The government preventing the practice of unpopular or
The government establishing a time in school for persons to
practice the reli-
gion of their choice.
The government promoting a religion as better than other religions.
a and b only.
16) Substantive due process requires that:
a law treat all persons the same.
a notice and hearing be given before one is deprived of life, liberty
a defendant not be tried twice for the same crime.
a criminaldefendant have an attorney present at all times.
government statutes,ordinances and regulations be clear and
Assume that the state of Coloradoinstitutes a law
requiring that persons
from outside the state of Colorado take a skiing
exam and obtain a skiing
Iicense before bei ng aIlowed to ski at a down hillresort on ru ns other
the beginner runs. The fee for thislicenseis $75. Colorado residents are
not required to get a license because most
to ski prop-
erly at an early
age. This statute could be challenged under:
the EqualProtection Clause.
the Interstate Commerce Clause.
the Privileges and Immunities Clause.
none of the above because thisis anintrastate commerce
issue that does not
unduly burden interstate commerce.
18) The generaljurisdiction
trial court in the federal system is called the:
United States Circuit Court.
United States Inferior Court.
United States District Court.
United States Trial Court.
United States General Court.
19) Which of the following is true?
Very important cases are usually
initially tried in the U.S. Supreme Court.
In the federal court system, there are
usually two levels of appeal by right.
The U.S. Supreme Court chooses to review
only half of those cases that it is
asked to review.
When a case is appealed, the appellate
court usually holds a new trial.
The U.S. Supreme Court chooses to review
only a small fraction of those
cases that it is asked to review.
Which of the following
is an example of concurrent jurisdiction shared by
federal and state courts?
Copyrights and trademarks.
None of the above, each is considered
exclusive federal jurisdiction.
There will never be a dissenting opinion
filed when the U.S. Supreme Court
has issued atn).
opinion written by the Chief Justice.
22) The concept of in personam
jurisdiction is that:
the case has been filed
at the correct location with the state.
special requirements must be met in
non-business cases involving individu-
a party has a personal stake in the outcome
of a particular case.
the court has jurisdiction over the
a court has the power to make and
enforce a judgment against a particular
parties to a contract agree upon which state
court will have jurisdiction
become necessary, that contract clause
is called a:
jurisdiction selection clause.
venue selection clause.
friends, Mary and Dean,are hiking
in the Colorado mountains when a
walked byits owner, Wally,who
is from Wyoming, bites Dean,caus-
ing injury. Mary was not disturbed physically or emotionally
but wants Dean
to sue Wally. Dean does not want toincur
the cost.Which of the following is
Whether Mary has standing
depends on whether Mary files the suit in state or
Mary has standing
if Wally agrees she can sueinstead of Dean.
Mary will have standing
only if she files the lawsuit in Wyoming.
Mary does not have standing to sue Wally,
the owner of the dog.
Mary has standing
ifDean consents to Maryfiling
25) Which ofthe
following are in the proper order from first to
Complaint; answer; cross-complaint;
26) In connection
with the pleadings in alawsuit,
what is an answer?
The response of the plaintiff to questions
posed by the judge.
The response of the defendant to
questions posed by the judge.
The response of the defendant to the plaintiff’s
The response of the judge to the plaintiff’s
Both a and b.
Live testimony taken under oath before
the trial is a discovery device known
28) What is “voir dire?”
A discovery method to learn about the other party’s case.
The jury deliberation process in a trial.
The U.S. Supreme Court’s case selection process.
A motion to dismiss a case.
The jury selection process in a trial.
29) The decision made by an administrative law judge is
Which of the following is an example of an executive power
granted to an
The power to investigate a violation of a statute or
The responsibility to determine licensing requirements for pharmacists.
The right to issue an interpretive rule.
The right to adjudicate a case through an administrative
The right to issue a substantive rule.
Brooke has fallen asleep on the beach. Eight guys, who are
all friends of
hers, getinto a circle around
her and one gets real close and screams,
“snake” into her ear. When she jumps up screaming, they all start
at her. What tort, if any, have they committed?
Negligent infliction of emotional distress.
All of the above.
None of the above.
The doctrine that is applied when a defendant violates an
intended to prevent the injury in question to persons of a class that includes
the plaintiff is:
negligence per se.
concurrent statutory violation.
proximate cause statute.
res ipsa loquitur.
33) A dram shopis
another name for:
a factory thatillegally
a house of iII
a bar or tavern.
involving a death from bee stings,which
of the following
sets forth the ruling of the Court of Appeals
as to whether a defendant who
hires a person to work with bees can be held liable for the failure
to warn of
A defendant whohad
knowledge of the dangers of working
with bees can be
basis for the failure
to warn of some dangers, but
the danger of anaphylactic
shockis too remote for there to be a danger to
warn about that.
There is noliability
when the unpredictability of animals,birds
or bees isinvolved.
would only exist
if the defendant was aware that the plaintiff
nothing about bees andintentionally
kept the dangers a secret.
There could benoliability
it is assumed that if a person
agrees to work withbees,they
are aware of the dangers.
A defendant who has knowledge of the
dangers of working with bees can be
basis for the failure to warn of dangersincluding
the possibility of dying
from anaphylactic shock.
Sam getinto aheated
over whether a political
candidate has beenguilty of fraud. Sam
makes a fist and actsasifheis
is apprehensive of immediate harm, but
Sam drops his
arm before he actually hits bill and says he
was just kidding. Sam also apolo-
gizes for any inappropriate behavior. For which tort or torts could Sam be
Assault and battery.
None of the above. Sam could
not be heldliable
for anything because he
said he was just kidding and apologized.
cause requirement for a negligence
tort is most likely not met
in a building
supply store carelessly
drops a small can of paint
that breaks open and is ignited from a spark caused when the metal can hits
a patient becomes sick from a doctor
carelessly prescribing the wrong medi-
the victim of an accident was aware,
prior to the actual accident, that the ac-
cident was likely to occur.
a customer becomesill
from food that is carelessly packed at a processing
a driver injures a pedestrian when
rounding a curve at twice the legal speed
Probable cause is most directly
associated with which step of the criminal
In Atwater v. Lago Vista, Texas, in which
a mother sued for alleged violation
of her civil rights after she was handcuffed and arrested for a seat belt
tion, what did the U.S. Supreme Court decide?
The mother’s Fifth Amendment rights were
violated by the unreasonable sei-
zure of her person.
The mother’s Fourth Amendment rights
were violated by the unreasonable
seizure of her person.
There was no violation of the mother’s
The mother’s First Amendment rights were violatedbythe stop.
There was no violation of the mother’s
Constitutional rights only because she
struck the police officer before he arrested her.
To find someone guilty of receiving
stolen property, it is sufficient to prove
that the defendant:
was in possession of stolen property.
the wrongfultaking of the property and intended to
true owner of the property.
knowingly received the stolen property
and intended to deprive the true owner
of the property.
intended to keep the property himself.
paid for the property and intends to
keep it himself.
40) Which of the following statements is true?
The Fifth Amendmentguarantee against self-incrimination does not prohibit
the taking of fingerprints against a suspect’s will.
The Fifth Amendment guarantee against self-incrimination does
taking of fingerprints against a suspect’s will.
Even if immunity from prosecution has been granted, the defendant may still
refuse to testify.
The attorney-client privilege is the only privilege that has been
under the Fifth Amendment.
The guaranteehas been extended toinclude all business
records and docu-
In New York v.Berger,when a warrantless search of Berger’s junkyard uncov-
ered stolen vehicles and parts, Berger challenged the search and the Su-
preme Court said:
warrantless searches arenevervalid unless the officer witnesses the crime
closely regulatedindustries enjoy less privacy protection than other types of
warrantless searches are allowed regarding all businesses but never
citizenin their home.
the expectation of privacyis the same regarding businesses andindividuals.
a statute can never provide a constitutionally adequate substitution for a war
are a combination of rights containedin the Fifth, Sixth and
are all containedin the Sixth Amendment.
are a combination of rights contained in the Fifth and Eighth Amendments.
are a combinationof rights contained in the Fifth and Sixth Amendments.
are all containedin the Fifth Amendment.
Which of the following is an effect of the Sony Bono Copyright
sion Act of 1998?
Copyright protectionwas extended from 17 to 20 years.
The length of validity for a corporate copyright was extended to be
as fora copyright held by an
Copyright protectionfor music was extended so that it is now longer than
for other types of copyrighted material.
Individuals were granted copyright protection for their
life plus 70 years.
Copyright protectionwas extended to computer programs.
What was the resultin the case in which James W.Newton, Jr. sued after
Beastie Boys used six seconds of a Newton compositionin a song.
The Beastie Boys use of Newton’s composition did not
constitute a fair use
because a song wasinvolved, and fair use is not a viable defense when a
claim is made that portions of a song were illegally used.
The Beastie Boys use of Newton’s composition did not constitute a
because the Beastie Boys were
attempting to profit off of Newton’s composi-
The Beastie Boys use of Newton’s composition was unfair,
and Newton did
not have to prove damages in order to recover.
The Beastie Boys use of Newton’s composition was brief
enough to be consid-
ered fair use.
The Beastie Boys use of Newton’s composition did not
constitute a fair use
because Newton could prove he suffered money damages because of the ac-
tions of the Beastie
Willful copyright infringement can be punished with a
award up to:
Each of the followingis a word that has lost
its trademark due to generic use
47) Which of the following is true about the Paris
It protects copyrights only.
It protects patents and trademarks only.
It protects trademarks only.
It protects copyrights and trademarks only.
It protects patents only.
48) Kantian ethics
social contract theory of mortality.
In Pizza Hut,Inc.
v.Papa John’s International,Inc.,
which Pizza Hut sued
Papa John’s claiming
that Papa John’s slogan “Better Ingredients. Better
Pizza” was false advertising,what
was the Court’s ruling?
had violated the False Advertising Act.
The slogan was a statement of opinion,
not a statement of fact upon which
The slogan was an example
of “puffery” that is not actionable under the Act.
had violated the Lanham Act.
Both band c.
50) The categoricalimperative
is an integral part of:
moral minimum theory.
Locke and Rousseau’s
theory of social contract.
Kant’s duty ethics.
maximizing profit theory.
Rawl’ theory of social
The theory of business social
responsibility that holds that a business has a
duty to generally do good for society is:
Mary finds a wallet
in the library that is filled with case. She
would like to
keep the money but decides to turn it in to the
lost-and-found office because
if it were her wallet,she would like the person
who found it to do the same.
Mary reached her decision in accordance with:
Whichofthe followingis not needed in all cases in order to have a valid con-
A signed written document.
How has the government rolein contract regulation changed since the
ing of the United States?
There is lessfederal,but more state involvement today than in the
Thereisless state and federalgovernmentinvolvement today than in the
There is greater state and federal government involvement
today than in the
Thereisless state,but more federal involvement today thanin the past.
Thereis approximately the same degree of state and federalgovernmentin-
volvement today asinthe past.
55) Whichofthefollowing are two terms for the same concept or situation?
Implied-in-fact contract and quasi-contract.
Implied-in-Iaw contract and quasi-contract.
Formal contract andimplied-in-Iaw contract.
The United Nations Convention on Contracts for the International Sale of
Goods provides rules that govern:
the formationof contracts.
the performance of contracts.
all of the above.
none of the above.
57) Which ofthe followingis nota formal contract?
Letter of credit.
New car purchase contract.
58) A contract can be formed:
as a result
by an offermade
from an expression of opinion.
by an offer madein
in none of the above situations.
necessary in order for an offer to be effectively
The offeree mustlearn
of the offer, but this knowledge can come from any
The offeror must communicate the offer
to at least one offeree,at which point
the offer willbe considered
to be communicated to anyone who later learns of
the offer by any means.
The offer must be communicated
by either the offeror or the offeror’s agent to
The offeror must personally
communicate the offer to the offeree.
So long as the offeris
in writing, any party who learns of the offer’s terms can
that the terms of the acceptance be the exact same as those
of the offer is the:
mirror image rule.
identical terms rule.
counteroffer equals rejection rule.
61) Which of the following
is true regarding acceptance of an offer?
an offeree must accept an offer by an
authorized means of commu-
The common law recognizes certain
implied means of communication.
that acceptance must be by a specified means of com-
Most offers do not expressly specify the
means of communication required for
All the above.
is a contractor
contacted by Hilda
to discuss repairing
is so extensive
that Charlie doubts
home can be saved.Hilda
begs Charlie to try to repair thehome.
the besthe canbut
He will charge
Hilda$60per hour whether or not he
is true in this
If Charlie encounters unforeseendifficulties
to recover from Charlieif
states what each partyis
obligated to repair
supported by consideration
reaching the age of majority aminor
legally indicates that the
be bound by the terms of a contractentered
into as a minor,
on contract obligations
of a person whoisinsane
intervals of sanity?
must not bein a lucidinterval
regardless of whenthey
into during alucid
intervalcannot be avoided.
A person who
contracts only afterbeing
for someone toavoid a contract
onthe grounds of intoxication,
level of intoxicationmust
that he didn’tcomprehendthenature
of the agreementhe was enter-
that he wasable tonotice
that no reasonableperson
high as that of the
is an exculpatory clause
that prevents one
with the other
party fora set
a party from
for that party’s
breachof the contract.
negates a minor’s
to extra damagesto
its power tocreate
involving a minor
A contract that was enteredinto
Any contract thatiscontrary
onsome foreclosed property than
shewas supposed to bid,and
property at auction?
was allowed to bidagain
if she matched
only because she
presented proof by a
was voided andconductedagain
because of theunilateralmis
take ofthe paralegal.
not the paralegal,was
allowed to keep
with a fraud
cannot relate to an opinion or prediction.
Themisstatementmustnotinvolve anissue of law.
The misstatementcanrelate to any fact before or after the contract was
The misstatement must have been a correct statement at some point in the
The misstatementmust relate to the substance that the item is made of.
70) Whichof thefollowing best describes duress?
A situation where one partyhas lied to the other to lead them to enter into a
A situationwhere a trust relationship has been violated in forming a contract.
A situation where,after the contract was negotiated, circumstances have
changed sothat one ofthe partiesis in a desperate
circumstance and cannot
A situation where a party has improperly given the other party no
but to enterinto acontract.
A situation inwhich fraud has been committed by a third party to the con-
71) What does” incorporationbyreference”do in the context of contract law?
Nothing asfarasthe Statute of Frauds is concerned because incorporation
cannot be used to satisfy the Statute of Frauds.
It makes separate writings part of a contract’s terms.
It makesthe StatuteofFraudsinapplicable to the contract.
It identifies the parties toa contract.
Jack and Jillwerediscussing business over lunch when they agreed on the
sale of some goods.Because neither of
them had any paper with them,Jack
wrotethe following onanapkin:”Jill agrees to purchase
widgets to bedeliveredon July1, 2001, at a cost of
$10,000, payable on
delivery.”Jillsigned the napkin,although Jack did not sign it.Jack deliv-
eredthe widgets per the contract,but Jill refuses to pay for
them. If Jack
forthe priceof the goods,the mostlikely resu It is:
Jackwillwin becausethe writingis sufficient under the Statute of Frauds.
Jack will winbecause the Statute of Frauds does not apply to this situation.
Jill willwin becauseJack did not sign the contract.
Jill willwin becausethere was no reasonable basis for her to believe there as
Jill will win because thiswritingis not sufficient under the Statute of Frauds.
When the government enters intoa contractonbehalf ofataxpayer,the
taxpayeris usually what kind of beneficiary?
Whatisthe significance ofacontract clause stating that”time isof the
Itmeansthat performance by thestated timeis an express condition.
It means that the contractisineffectiveif the time for performance is not
It putsaduty onthe partiesto a contractto perform as soonas possible.
Itcreatesa legal goal for the parties.
Itmeansthatif performanceofthecontract is completed withina short time
ofthestated time, it will beconsideredperformed at essentially the proper
Johnentered into a contract withBarb torestore Barb’s antique Ford for
$9,000. BecauseJohn oweshisyoungerbrother a large sum ofmoney,John
assigned, prior to notifyingBarbof the assignment,his right to receive pay-
ment to his brother.Johnbegan the restoration,but quickly stopped working
onthe car.Because of this,Barbretrieved the car from John. Almost no
restoration work had been performed. Whichofthe followingis truein this
John’sassignment ofhisright to paymentwithout Barb’s consentwasimprop-
er and discharged John’s dutiesunderthe contract.
John’sbrotherdoes nothavearightto collect the $9,000fromBarb.
Because of the assignment, John’s brother was responsibleforJohn’s perfor-
As aresu It of the assign ment, Joh n ‘s brotheris entitled to paymentdespite
the fact thatJohn didnot perform therestoration.
Barb is obligated to allow John’sbrother to complete the restorationifhe so
Janafinds ahome priced at $180,000that she would like tobuy. Sheis
concerned,however,about her ability toget aloan. Accordingly,she and
reachagreement that Jana willbuy the homeif she can get aloan
for$180,000 within 45 days. Whattype ofcondition is this
A concurrent condition.
a and c.
a, b, and c.
When an employee breaches a fixed-termemployment contract by quitting
before the end ofthe term,whatcanthe employer recover as
Allamountsalreadypaid to the employeeunder the contract.
Nothing, because courts donot orderanyone to perform a job against his or
Only specific performance.
Onlyamountspaid to the employeefor whichthe employee has not yet done
The costsof hiring a replacement employee plus any increasein salary paid
to thereplacement employee.
The doctrine that placesa duty onanon-breaching party to take reasonable
stepsto reduce damagesiscalled:
garn ish ment.
Alicehasa contractwithasurgeontohave a medicalprocedure performed
on July17.The surgeonnotifies Alice on July 5 that heisin the Bahamas
and willbe thereuntilthe endofAugust and will not be able to dothe sur-
gery.Which ofthe following istrueat this point?
Alice must give the surgeon90daysin whichto schedule the surgery after
There will be no breach untilJuly17.
IfAlice contracts with anothersurgeon prior to July 17,andthis second sur-
geonis aware of Alice’s originalcontract, the second surgeon has
Alicemust wait untilJuly 17,andif the surgeon doesnot perform the proce-
dure, then Alice cancontract withanother surgeon.
Aliceis free to contract withanothersurgeon.
Aconstruction contractorentered into a contract to build a family room addi-
tion onto Harry’s home for $25,000. Inorderto encourage timely perfor-
mance,the agreement provided that the contractor wou Id be
liquidated damagesforeachday that the project was
ting finished.Thecontractorwas30 days late infinishing theproject, but
otherwise metthe terms of theagreement.Whatis most likelyin this situa-
Theliquidated damages clausewould notbe enforced due toits being exces-
Theliquidated damages clause would not be enforced because the parties
mutual mistakeaboutwhen the contract would be finished.
Theliquidated damagesclause would be enforced only if it can be shown that
has madethat much inprofits over the past six
Theliquidated damagesclausewouldbe enforced.
Theliquidated damagesclause would belimited to $25,000,the amount of
Thehighest price paid to date for the purchase of a domain name has been
Under the UniformComputerInformationTransactions Act,whatis the effect
of puttingadditional termsinto an acceptance
delivered through an electron-
The acceptance is treatedas a counteroffer.
The additionaltermsare ignored and a contractis formed based on the origi-
The acceptance is treatedas arejection.
The acceptanceis treated isif itneveroccurred, leaving the original offer
The additionalterms become part of the agreement unless objected to within
83) Licensingof informational rights can usually best be described as:
granting any rightsto usethe information,which can differ greatly in scope
theright to temporarily use thedomain name of another.
grantinglimitedrightsto use thatcannot be simultaneously granted to others.
a leaseof tangible personal property tothe licensee.
a saleoftheunderlyingintellectualproperty rights.
Underthe Uniform ComputerInformationTransactions Act,howlong does a
party have in which to commence a cause ofaction?
Twoyearsafter thebreach was orshouldhave been discovered,but not more
than fiveyears after the breachactuallyoccurred.
breach was orshould
have been discovered,but
than five yearsafterthe
after the breach was orshouldhave
been discovered, but not more
than three yearsafter
Oneyear after the
have been discovered,but not more
than four years after
the breach actuallyoccurred.
the following itemsinto
a written contract?
based on prior conduct insimilarcontracts
the meaning of an ambiguoustermin
Evidence of an oral
made when the
written contract was signed
that was different
from the pricein
ofa term in the parties’
line of business
from the meaning
of that term ineveryday
of a price change agreed
the contract was signed.
All the above would be allowed
86) For the firm
offer rule to apply, who mustbeamerchant?
Both the offeror and the
Neither the offerornorthe
onlyif the offereeis
decides to buy new carpet
home.She goes to Carpet City
chooses the carpet shelikes.As
agrees to install
at work. When she returns
home and seesit,
problems. The carpet is not the
same quality of carpet she ordered,andthe
coloris off. Does the UCC apply,
and why or why not?
apply to mixed contracts of
goods and services.
The UCC does not apply
Carpet City included
that is not covered by the
because the predominant
part of the transaction between
Susan and Carpet City
The UCC does not apply
and Carpet City did not agree in writ-
that the UCC would apply.
appl ies because it appl ies
contracts as wellas to con-
the sale of goods.
Which ofthefollowing situationscreates a sale that fallsunder UCC sales law
Katherine contractsto pay Mike$880.00 to have her bedroom painted.
$800.00isfor labor and $80.00isfor the paint.
All of the aboveareUCC sales contracts.
Katherinemakes a contractto purchase ashedthat requires assembly. The
contractpriceisfor$8,000.00 which includes$400.00 for labor.
Abc rentalsrents a cement mixer to Katherine.
Dr. Mackey agreestoteach at yahoo university for1 year.
Seller whoislocatedinAtlanta,Georgiacontracted to sell a shipment of
peachestothe1910fruitgum company located in Buffalo,New York. The
peachesweresold f.o.b. Buffalo.Seller delivered the peaches to the proper
carrier inAtlanta and the peaches were destroyed during shipping. Under
Sellerand buyer sharethe risk ofloss.
Sellerbearstherisk ofloss andisresponsible.
Thisisa trick question;goods can’t beshippedf.o.b. Buffalo.
Buyerbearstherisk ofloss andisresponsible.
Neither the seller nor the buyer bear risk ofloss, thecarrier bearstheriskof
90)Which of thefollowingistrue regardingashipment contract?
Such contractsrequirethe sellerto beartheriskof losstothe goods during
It requiresthe sellertodeliverconforminggoods to the buyerbyuse of the
seller’s own trucks.
Theriskof lossdoes not pass untilthegoods are tendered to the buyer atthe
It requiresthe seller to deliverconforming goodsto a specificdestination.
Itrequiresthe seller to ship goods conformingto the contract toa buyer via a
UnderArticle2AoftheUCC,forwhich types oflease(s) is the risk of loss on
Both ordinaryand financeleases.
Neither ordinary norfinanceleases.
In Lindholmv.Brandt,when Malmberg sold Lindholm’s”Red Elvis”to
Brandt, the COJrtfound that:
Malmberghad beenentrusted with the artwork andcould pass the voidable
title to Brandtbecause Brandt qualifiedas a good faith purchaser.
Malmberghad beenentrusted with the artwork and could pass the void title
to BrandtbecauseBrandtqualifiedasa good faithpurchaser.
Malmberghad stolen theartwork andcould pass the void title to Brandtbe-
cause Brandtqualified as a good faith
Malmberghad beenentrusted with the artwork but had a void title because
hebreachedthe terms ofthe entrustment sohecouldn’t pass good title to
Malmberghadstolen the artwork, so he couldn’t pass his void title to Brandt.
93) Adestination contractrequiresthat theseller:
assistthebuyerin handling goodsoncereceivedby the buyer.
give proper and adequatenotice to the buyer.
deliverthe goods tothe buyer.
a and c.
Ifa seller hasdeliverednonconforminggoodsthat have been rejected by the
buyer,the seller has a rightto cure:
only ifthe buyeragrees.
onlyif the contract specifically allowsfor cure.
under some circumstances,evenif theoriginal time for performance has
onlyifthetimefor performance hasnot yet expired.
95)Whichofthe following statementsis true regarding installment contracts?
Tobe aninstallment contract, the contractmust state that each deliveryis a
separatelotorwords to that effect.
The buyermayreject the entireorder forany nonconformity.
The buyermayreject the entire orderonlyif the nonconformityin one ship-
ment affects the value of the entire contract.
a, band c.
96)Whichofthefollowingis trueabouta buyer’s right ofinspection?
Ifnot mentionedinthe contract,thebuyer hasthe right to inspect goods in a
reasonabletime,place and manner once thegoods have been
Thisright must be agreed to inthe contract inorder forit to apply.
Ifnot mentioned in the contract, the buyerhas the right to inspect goods in a
reasonable time,place and mannerprior to accepting or paying for them.
Thisrightexistsevenif notmentionedin the contract, and the buyer has the
soleright to determinethe time and placethe right may be
Thisright existsevenifnot mentionedinthe contract, and the seller has the
soleright to determinethetime and placethe right may be exercised.
Whichofthefollowingisnot necessaryin order for theimplied warranty of
fitnessfor aparticularpurpose toapply toa sale of goods?
The goodsare purchased.
Thebuyer relieson theseller’s skillandjudgment.
The sellerknows orhas reason to knowofthe buyer’s intended use of the
The selleris a merchant.
The seller statesthat the goodswillservethe purpose of the buyer’s intended
What wasthe result inShoshone Coca-Cola Bottling Company v. Dolinski, in
which theplaintiff becameillafterconsuming a soft drink with a
sued the manufacturerofthe drink?
Thedefendant won because theplaintiffcould not explain how the mouse got
Plaintiff wonbecausehe couldprovenegligence on the part of the defendant.
Plaintiff wonbecausethe defendant washeldliable under the doctrine of
The defendant won becauseit had beenascareful as possible in bottling the
Thedefendant won becauseplaintiff’s drinkwas the only drink in the appli-
cablelot or batchthatwasdefective.
Which of thefollowingis notatypical waythat a manufacturing defect
Failuretoproperly check thequalityof the completed product.
Failure to properly design the product.
Failure to properlyassembletheproduct.
Failure to properly test theproduct.
Failure to properlyengineer the product.
court found Sta-Rites pool drain
based on whichofthe
shut off mechanism.
was excessive and unnecessary for the
accidents with Sta-Rite drain
covers and pumps.
all of the
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