Mine Mid Term

Question 1

An express warranty is created in all of the following situations except when:

a. A seller makes an affirmation of fact or promise concerning the goods that becomes part of the basis of the bargain

b. A seller uses descriptive terms, drawings or technical specifications which becomes part of the basis of the bargain

c. A seller sells goods meant for use for ordinary purposes

d. A seller uses a sample or model as the basis for the contract

1 points

Question 2

A seller who has voidable title:

a. Can pass good title to a good faith purchaser for value

b. Cannot pass good title to a good faith purchaser for value

c.

Can never pass good title

d. Can pass good title if the purchaser gives good value

1 points

Question 3

A seller may create an express warranty by merely stating an opinion.

a. TRUE

b. FALSE 

1 points

Question 4

If a buyer becomes concerned that the seller may not be able to perform required contract obligations:

a. He may not assign his contract rights under the contract

b. He may demand assurance from the other party that the contract will be performed

c. He may refuse to perform the contract under the doctrine of commercial impracticability

d. He may be excused from performance under the doctrine of impossibility

1 points

Question 5

A seller may resell the goods when:

a. The buyer breaches the contract and the seller has possession of the goods

b. The seller breaches the contract and the seller has possession of the goods

c. Neither party breaches the contract, but the seller thinks he can make a higher profit upon resale

d. The seller is sure that the buyer is going to breach the contract

1 points

Question 6

Under the UCC, the obligation of "good faith":

a. Applies only to merchants

b. Requires that parties to a contract must perform their duties with "honesty in fact in the transaction concerned."

c. Is a limited concept because this requirement can be modified in the course of dealing or usage of trade

d. Means that purchasers can avoid injury

1 points

Question 7

When a buyer covers, he/she can recover from the seller:

a. The difference between the contract price and the market price

b. The difference between the contract price and the cost of the substitute goods

c.

The goods the seller has failed to deliver

d. The reasonable value of the goods

1 points

Question 8

"Fungible goods" are:

a. Goods which are packaged and labeled separately (such as units which come in cartons or cases)

b. Mixed goods which are identical and cannot be separated (such as grain or coal)

c. Perishable goods which have been improperly packaged or which have damaged packaging and are open to contamination

d. Goods which conform to any promises or statements of fact made on the container or label

1 points

Question 9

If a seller discovers a buyer is insolvent, the seller:

a. Must wait 10 days before taking action

b. Has the right to stop delivery of any goods that are being shipped to the buyer

c. Has the right to stop delivery of any goods that are being shipped to the buyer so long

as they have not already been entrusted to a carrier

d. Must wait seven days before taking any action

1 points

Question 10

If the seller refuses to deliver the goods called for by the contract, the buyer can do all of the following except:

a. Get the difference between the contract price of the goods and their market price at the time the buyer learns of the seller's breach

b. Sue for incidental and consequential damages

c. Give the seller credit for any expenses saved

d. Seek for specific performance even if the goods ordered are not unique in nature

1 points

Question 11

To reject goods, the buyer must do all of the following except:

a. Notify the seller of the rejection

b. Specify the nonconformity

c. Desist from paying the seller in full

d. Specify the defect

1 points

Question 12

By accepting goods, the buyer forfeits remedies against the seller for any nonconformities in the goods.

a. TRUE b. FALSE 

1 points

Question 13

The seller has the right to cure:

a. Anytime after the buyer accepts delivery but before the buyer repudiates

b. Only once the original time for delivery has expired

c. Even if the buyer accepts nonconforming goods

d. If he notifies the buyer about the willingness to cure the improper delivery or tender

1 points

Question 14

To be successful under the theory of strict liability, the plaintiff must show all of the following except:

a. The product is defective

b. The seller is engaged in the business of selling defective products

c. The consumer sustained physical harm or property damage because of the product

d. The product is priced higher than its market counterparts

1 points

Question 15

Anyone who entrusts goods to a merchant who regularly deals in such goods gives that merchant the power to give good title to a buyer in the ordinary course of business.


1 points

Question 16

Zeta contracts to perform a violin solo for Pat. Zeta assigns the contract to Roy. Is this a valid delegation of duty?

a. There is no valid delegation of Zeta's duty to play because all delegations must be expressly stated in the assignment contract

b. There is no valid delegation of Zeta's duty to play because the contract is one in which Zeta's personal skill as a musician is an essential part of the agreement

c. There is a valid delegation of Zeta's duty as Zeta has entered into a novation with Roy

d. There is a valid delegation of Zeta's duty because Zeta does not want to play for Pat

1 points

Question 17

Consequential damages:

a. Occur when the special circumstances of the plaintiff cause him to suffer losses that would not ordinarily be foreseeable as a result of breach

b. Are usually recoverable unless the defendant had reason to foresee them at the time the contract was created

c. Are measured by the loss in value of the promised performance

d. Are not limited to losses that would occur as a result of breach of contract

1 points

Question 18

When a minor reaches the age of majority:

a. The person may disaffirm a contract for a reasonable time after reaching majority

b. The person can no longer disaffirm

c. The person must put his intent to disaffirm in writing shortly before reaching majority

d. The person should renew his contract in order to disaffirm the contract legally

1 points

Question 19

An acceptance must be in writing.


1 points

Question 20

An agreement to restrain trade:

a. Is seldom illegal in our free-market society

b.

Is never illegal in our democratic society

c. May be legal if it covers a reasonable geographic area and a reasonable time period

d.

May be legal if it is contradictory to a contract that protects business interests

1 points

Question 21

Assignees:

a. Cannot enforce any rights of assignor against obligator

b. Cannot be liable for duties impliedly delegated with the assignment

c. Can sue the promisor for nonperformance

d. Can acquire greater rights than the assignor has

1 points

Question 22

In a guaranty contract, the guarantor's promise must be evidenced by a writing to be enforceable.


1 points

Question 23

If an event must occur before a party's duty to perform arises, it is called a condition precedent.


1 points

Question 24

Which of the following statements about offers is true?

a. Any definite offer made by a merchant is a "firm offer" under the UCC

b. An offer is effective upon dispatch

c. A grumbling acceptance is a rejection and terminates the offer

d. The death of the offeror will terminate the offer immediately, even if the offeree is not aware of the death

1 points

Question 25

As a general rule, performing a preexisting duty is not consideration.


1 points

Question 26

Most cases charged with undue influence involve:

a. Force or the threat of injury resulting in economic damages

b. A husband in the process of divorcing his wife, threatening to sue for custody of their children, something he has a legal right to do, unless she gives him stock she owns in his company

c. Unilateral or mutual mistakes resulting in serious injustice

d. Long-time advisers of elderly/sick people, who are alleged to have gotten the victim to make gifts/sales at unfair prices

1 points

Question 27

When a promisee agrees not to do something he or she has a legal right to do in exchange for the promisor's promise, it constitutes legal value.

a. TRUE

b. FALSE 

1 points

Question 28

The UCC requires application of the "mirror image" rule in cases where contract for the sale of goods are made by exchanging forms.


1 points

Question 29

A promise exchanged for a promise is an example of:

a. A bilateral contract

b. A unilateral contract

c. An implied contract

d. Promissory estoppel

1 points

Question 30

Martha and Terry, an art dealer entered into a contract under which Terry was to supply 18th century artifacts to Martha for the play she was directing. Martha was paying $50,000 for this. Another director needed the same wigs and was ready to pay $60,000. Terry decided not to sell the artifacts to Martha. In this case, the court may order Terry to:

a. Specifically perform the contract

b. Repudiate the contract

c. Pay nominal damages

d. Substantially perform the contract

1 points

Question 31

The doctrine that says a court, in making a decision, must follow precedents of prior cases is called the ex post facto rule.

1 points

Question 32

Trademark dilution laws protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.

a. TRUE

b. FALSE 

1 points

Question 33

Under the power of judicial review:

a. A judge may render a legal rule unenforceable by declaring it in conflict with the Constitution

b. Lower courts may decide that higher court decisions are not valid

c. Courts make law by drafting new statutes

d. The court may override the acts of the Constitution

1 points

Question 34

One of the conditions that a plaintiff must show in order to recover for trademark infringement is:

a. The defendant used the mark in commerce

b. The defendant's use of the mark was only in connection with the advertising of goods

c. The defendant's use of the trademarks dilutes their distinctive quality

d. The defendant began using the trademarks after they became famous

1 points

Question 35

In the case of a taking, just compensation is defined as:

a. The fair market value of the property plus its sentimental value

b. The current fair market value plus any expected future value

c. The fair market value of the property

d. The fair market value of the property if it were to be sold to a developer

1 points

Question 36

The U.S Supreme Court generally disfavors arbitration as a way to settle disputes.


1 points

Question 37

The Sarbanes-Oxley Act:

a. Creates a PCA Oversight Board with the authority to regulate CPA firms that audit publicly-traded companies

b. Narrowly defines the meaning of "obstruction of justice"

c. Decreases the likelihood of detection and prosecution of illegal behavior

d. Adopts the theory of allocational efficiency

1 points

Question 38

The unauthorized reproduction of creative works is prohibited by a(n):

a. Inventor's certificate

b. Patent

c. Compulsory license

d. Copyright

1 points

Question 39

When a statute has been interpreted by a government agency, the courts usually defer to that interpretation if it seems reasonable.


1 points

Question 40

The Sarbanes-Oxley Act requires that:

a. Public corporations disclose whether they have adopted a code of ethics for senior financial officers

b. Private corporations to report any change in their code of ethics

c. Privately traded corporations have board audit committees comprising only of dependent directors

d. Special committees of the board be assigned to special areas of concern

1 points

Question 41

Under rational basis analysis:

a. A government action will be upheld as long as it has a reasonable relationship to the achievement of a legitimate purpose, even if those provisions are foolish

b. Discrimination on the basis of a suspect category will receive highest scrutiny

c. Courts will deem a government action unconstitutional when the action impinges on a fundamental right

d. Discrimination on the basis of economic interest will receive highest scrutiny

1 points

Question 42

The U.S. Constitution protects individuals against:

a. All private deprivations of individual liberties

b. State action only

c. All private and government action

d. Private action that does not further a legitimate purpose

1 points

Question 43

When the trademark is a descriptive term:

a. Courts treat the term as distinctive to legal merit

b. Trademark protection exists only if a claimant proves that the term conveys to consumers a secondary meaning of association with the claimant

c. Courts are unwilling to afford the term trademark protection

d. It qualifies for trademark protection automatically and functions as the common descriptive name of a product class

1 points

Question 44

Natural law thinkers believe that:

a. Law and morality are inseparable

b.

There is no law superior to that promulgated by political institutions

c. All laws should have an environmental focus

d.

Natural law provides the level of predictability attained by legal positivism

1 points

Question 45

Technology transfer agreements:

a. Protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur

b. Generally permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment

c. Do not receive legal protection unless its owner took reasonable precautions to keep it a secret

d. Assert that priority of trademark rights in the United States depends solely upon priority of use in the United States, not on the priority of use anywhere in the world

1 points

Question 46

In diversity cases, a defendant may petition to remove the dispute to federal court.


1 points

Question 47

Courts are unwilling to provide trademark protection to a term if it is:

a. Arbitrary

b. Descriptive

c. Generic

d. Suggestive

1 points

Question 48

Under the Uniform Arbitration Act, a court:

a. Cannot hold that the dispute was not arbitrable under the agreement of the parties

b.

Will not review the wisdom or decision of the arbitrator

c. Makes only the arbitration award enforceable

d.

Can publish its arbitration awards

1 points

Question 49

A defendant may make a motion to dismiss the case when:

a. The defendant does not have a very strong case and he/she would lose money by continuing

b. It is clear that the plaintiff does not have a case and it would be wasteful to continue

c. Either party feels that the judge is not able to remain impartial

d. People or groups other than the parties involved are interested in the outcome of a certain appeal

1 points

Question 50

The power of the states to regulate is:

a. Exclusive in the domain of intrastate commerce

b.

Nonexistent over matters that affect interstate commerce

c. Limited only by its own state constitution

d.

Exclusive in the domain of interstate commerce

1 points

Question 51

An agency coupled with an interest means:

a. Either party may terminate the agency at any time

b. The agency may not be able to recover the debt in the event of the principal's death

c. The agency is irrevocable without the consent of the agent

d. Each party has the power to terminate without breach of contract if done so within 18 months

1 points

Question 52

When the principal is undisclosed, the third party who deals with the agent believes the agent is acting personally and accordingly expects the agent to be a party to the contract.

a. TRUE

b. FALSE 

1 points

Question 53

A principal may transact, through an agent, any business the principal lawfully could do in person.

a. TRUE

b. FALSE 

1 points

Question 54

Express authority:

a. Is created when the principal specifically describes the extent of the agent's powers

b. Arises from the principal's failure to inform third persons that the relationship is not what it appears to be

c. Occurs with respect to an act of an agent who has exceeded the authority given

d. Is created by the conduct of the principal that causes a third person reasonably to believe that another has the authority to act for the principal

1 points

Question 55

When an agent's authority is apparent:

a. The agent is not liable to anyone

b.

The principal is liable to the agent

c. The principal is liable to the third party

d.

The agent is liable for the acts of the principal

1 points

Question 56

When a principal breaches a duty owed to the agent, the agent:

a. May only bring a lawsuit against the principal for physical injuries suffered

b. Does not have a lien on anything that belongs to the principal which is in the agent's lawful possession

c. May not terminate the agency until the contract has expired

d. May claim the principal's property for compensation due him for his performance of agency responsibilities

1 points

Question 57

Independent contractors:

a. Are under the control of their employer/principal as to both the objective of their work and the means used to achieve it

b. Are under the control of their principals as to the result that is to be achieved, but not as to the means used to accomplish that result

c. Do not maintain their own inventory of goods; instead, they take orders on behalf of their principal

d. Just bring the parties together rather than actually negotiating a contract of sale

1 points

Question 58

Which of the following statements about agency relationships is true?

a. Agency relationships do not exist in the absence of a contractual agreement

b. A court may find the existence of an agency relationship only if the parties have expressly agreed to create one

c. An agency results from any indication of consent by the principal that the agent may act on the principal's behalf and under her control

d. Agency relationships exist only if there is direct evidence of it between parties and it is compensated for

1 points

Question 59

A person may act as a dual agent:

a. On his own accord

b. After partial disclosure of terms to either principal

c. With the consent of any one principal

d. With the consent of both principals on being fully informed about it

1 points

Question 60

Whenever the agent's duties to the principal conflict with the agent's own interests:

a. The agent automatically is regarded as having breached the duty of loyalty

b. The agent must disclose such fact to the principal, or be in violation of the duty of loyalty

c. There is no duty of disclosure if the agency is gratuitous

d. The agent must resign immediately

1 points

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Mine Mid Term

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