business law 201 questions & answers

Business Law 201 Summer 2006 Midterm

Professor Isler July 13, 2006

Multiple ChoiceThere are five “A” level questions, 14 “B” level questions and seven attendance questions. Identify the letter of the choice that best completes the statement or answers the question. There are no trick questions. Do not write your name on your Scantron. You may keep the exam.

____ 1. Common law rules develop from

a. statutes enacted by Congress and the state legislatures.b. regulations issued by administrative agencies.c. decisions of the courts in legal disputes.d. uniform laws drafted by legal scholars.

____ 2. In a court of equity, the doctrine that will bar a lawsuit if it is not filed within a proper time is known as

a. equitable limitations.b. equitable maxims.c. laches.d. limitation de baris.e. yo assus is too slowest

____ 3. In the case of YoYo versus. Ma, decided in 2005, a state supreme court held that a minor could cancel a contract for the sale of a car. John "Skidmarks" Johnson (a minor so named because once his mother was doing laundry and noticed.........., well you get the point) is involved in a similar case being decided today by a trial court in the same state. If stare decisis is used to decide the Johnson case:

a. the court will probably allow Johnson to cancel the sale.b. the court will probably not allow Johnson to cancel the contract.c. it is impossible to tell what the court will decide because the Ma case has

nothing to do with the Johnson case.d. it is impossible to tell what the court will decide because the Ma case is not a

precedent for the Johnson case.

____ 4. The California Supreme Court recently decided a case relative to "same sex" marriages and ruled that the mayor of San Francisco exceeded his authority when he (the Mayor) ordered the San Francisco City Clerk to issue marriage licenses to couples of the same sex. In that same case the court:

a. Said the California Constitution probably allowed same sex marriages

c. Said the California Constitution prohibited same sex marriages

b. used dicta to indicate that they would hear a case dealing with same sex marriages

d. said that California must follow the Massachusetts law relative to same sex marriages

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____ 5. Brown versus Board of Education was a case regarding school desegregation, decided by the Supreme Court in 1954. The Court ruled that segregation in public schools is prohibited by the Constitution. The decision ruled out “separate but equal” educational systems for blacks and whites, which many localities said they were providing. In deciding that case the Court departed from tradition by using arguments from:

a. International Law c. Sociology, including dolls, to show that separate educational systems were unequal by their very nature.

b. State Constitutions d. Local Georgia laws

____ 6. A state court may use a long-arm statute to exercise personal jurisdiction over a nonresident defendant only so long:

a. as there is a showing that the defendant has purposefully availed him or herself of the privilege of conducting activities in the state seeking to use the long-arm statute

c. as there exist "minimum contacts" between the defendant and the forum State

b. as the defendant agrees to be bound by the statute

d. a & c

____ 7. Earlier this year the U.S. Supreme Court, in an opinion written by Justice Scalia, ruled that police armed with a warrant can barge into homes and seize evidence even if they don’t knock. This case was unusual in that:

a. The justices agreed that this decision was repugnant to the U.S. Constitution

c. Only 6 justices participated in the decision of the case

b. Justice O'Connor retired before the case was decided, and a new argument was held so that Justice Samuel Alito could participate in deliberations. Alito and Bush’s other Supreme Court pick, Chief Justice John Roberts, both supported Scalia’s opinion

d. The Chief Justice did not decide who would write the opinion of the Court

____ 8. Consumer Goods Corporation sells products that are poorly made. Tina, who has never bought a Consumer Goods product, files a suit against the firm, alleging that its products are defective. The firm could ask for dismissal of the suit on the basis that Tina does not havea. jurisdiction.b. standing.c. sufficient minimum contacts.d. venue.

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____ 9. Dick Lipschitz files a suit against Alison Wanda Land. Alison loses the suit. Alison's best ground for appeal is the trial court's interpretation ofa. the law.b. the credibility of the evidence that Dick presented in the case.c. what happened between the parties that led up to the suit.d. the witnesses' behavior during the trial.

____ 10. Buddy Wieser files a suit in a federal district court against Dr. Frank Bonebreak. Dr. Bonebreak loses the suit, appeals to a U.S. court of appeals, and loses again. Dr. Bonebreak asks the United States Supreme Court to hear the case. The Court is:

a. required to hear the case because it comes from a federal court.b. required to hear the case because it is an appeal.c. required to hear the case because Dr. Bonebreak lost in the lower court.d. not required to hear the case.

____ 11. Nikolai Khabibulin's wants to appeal his case against QuickTime Corporation to the United States Supreme Court. Nikolai must ask the Court to issue a writ of

a. appeal.b. certiorari.c. diversity.d. in rem jurisdiction.

____ 12. Jean-Sébastien Giguère files a suit against Evgeni Nabokov. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without the involvement of a third party. This is

a. arbitration.b. litigation.c. mediation.d. negotiation.

____ 13. Mike files a suit against Kay. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who renders a legally binding decision. This isa. arbitration.b. litigation.c. mediation.d. negotiation.

____ 14. Carmen Electra, an African American woman, is a prospective juror. Carmen may be excluded from sitting as a juror by a challenge based on hera. gender only.b. causec. gender or race.d. none of the above.

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____ 15. In a suit by Patented Products Corporation (PPC) against Copycat, Inc., the jury returns a verdict in PPC's favor. Copycat files a motion asking the judge to set aside the verdict and begin new proceedings. This is a motion fora. a judgment in accordance with the verdict.b. judgment n.o.v. or JNOVc. a new trial.d. none of the above.

____ 16. Under the Constitution, the legislative branch of the governmenta. administers the laws.b. enforces the laws.c. interprets the laws.d. makes the laws.

____ 17. States may regulate private activities to protect or promote the public order, health, safety, and general welfare under theira. police powers.b. taxing powers.c. spending powers.d. none of the above.

____ 18. When there is a direct conflict between a federal law and a state lawa. both laws are rendered invalid.b. both laws govern concurrently.c. the federal law takes precedence if the federal government intended to occupy

the fieldd. the state law takes precedence.

____ 19. If Congress passes a tax law that bears a reasonable relationship to revenue production, the law will bea. struck down.b. upheldc. weighed in terms of the government's interest in the law's purpose and the

burden on interstate commerce.d. weighed in terms of the burden on the states and the purpose of interstate

commerce.

____ 20. The First Amendment guarantees the freedom ofa. speech.b. religion.c. the press.d. all of the above.

____ 21. Speech that harms the good reputation of another is protected under the First Amendmenta. when it is political speech.b. when it is commercial speech.c. all of the time.d. none of the time.

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____ 22. After the bombing of Pearl Harbour in December 1941, the United States was gripped by war hysteria. This was especially strong along the Pacific coast of the U.S., where residents feared more Japanese attacks on their cities, homes and businesses. Leaders in California, Oregon and Washington, demanded that the residents of Japanese ancestry be removed from there homes and placed in Internment camps or permanent detention camps. Several U.S. Senators feel that the United States could very well be attacked by U.S. citizens who do not support the Iraq war.

On June 26, 2006 Senator I.M. Racist, introduced legislation that would place all people living in the United States who have ancestors from Iraq and Iran in internment camps. The legislation passed and the President signed it yesterday. Maryam Kutchemeshgi, a U.S. citizen of Iranian decent was placed in a California Internment camp but her husband Adnan Khashoggi , who was of Turkish decent was not.

Adnan sued for Maryam's release in Federal District Court alleging a violation of Maryam's Equal Protection rights. What is the likely court result?

a. The Rational Basis Test will be used and since safety is at issue the legislation will pass

c. The Strict Scrutiny Test will be used and the legislation will be ruled unconstitutional

b. The Intermediate Scrutiny Test Will be used since gender is at issue and the law will pass if the federal government can show an important government objective

d. The court will dismiss the law suit because it was filed in the wrong court and the Equal Protection Test does not apply in this case

____ 23. Minnesota enacts a statute to ban advertising in “bad taste.” This statute would likely be held by a court to be:a. an unconstitutional restriction of

speechc. justified by the need to protect

individual rightsb. constitutional under the First

Amendmentd. necessary to protect state interests

____ 24. A Salient Factor:a. is used to determine if the

Commerce Clause Appliesc. is a common law term that allowed

judges to make law when no law was present

b. is used to determine if the Supremacy Clause Applies

d. is used to determine sentences for defendant's in Federal Court

____ 25. Professor Isler's favorite professional basketball player of all time is:a. Michael Jordan c. Kobe Bryantb. Julius Irving d. Kareem Abdul-Jabbar

____ 26. Bob is so stupid that when he heard that 90% of all crimes occur around the home, he moved. Anyway, Bob pushes Carol. Carol falls and breaks her arm. Bob is liable for the injurya. if Bob intended to push Carol.b. only if Bob did not intend to break Carol's arm.c. only if Bob had a bad motive for pushing Carol.d. only if Bob intended to break Carol's arm.

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____ 27. Dale is so stupid that if he spoke his mind, he'd be speechless. Anyway Dale hears Ed falsely accuse Flo of stealing from Great Warehouse, Inc., their employer. Ed's statement is defamatorya. because Dale heard it.b. only if Ed made the statement loudly.c. only if Ed's statement is also published in the Dispatch, a local paper.d. only if Flo suffers emotional distress.

____ 28. Betty is so ugly she makes blind kids cry. Betty owns a large ranch in Colorado. Dan drives his sport utility vehicle off a highway and onto Betty's land. Dan commits trespass only if hea. does not have Betty's permission to drive on the property.b. drives onto the property for recreational purposes.c. harms the property in a material way.d. harms the property in any way.

____ 29. As a joke, Fran hides Gary's business law book so that he cannot find it during the week before the exam. Fran is liable fora. appropriation.b. disparagement of property.c. trespass to personal property.d. wrongful interference with a business relationship.

____ 30. “Pervert Peter” invites “Voluptuous Velma” to a swimming party. At the party, Peter gives Velma a suit that Peter knows will dissolve in water. When Velma goes swimming, the suit dissolves, leaving Velma naked in the presence of the other guests. Velma suffers embarrassment, shame, and humiliation and sues Peter for intentional infliction of emotional distress. Under these circumstances:

a. Peter is not liable is Velma was voluptuous because a person of normal sensibilities would not be embarrassed to be naked if they are voluptuous

c. Peter is not liable if he did not peek

b. Peter is liable because his conduct was extreme and outrageous

d. Peter is liable even if his conduct was not extreme and outrageous

____ 31. Suppose that while arguing over the phone with Michelle, an airline reservations operator, about a full refund for a cancellation, Phil calls her a liar and says that he would punch her in the mouth if he were there. Michelle suffers emotional distress over Phil’s statement, cannot sleep, and becomes ill. Is Phil liable for intentional infliction of emotional distress?

a. No c. Only if he intended to go punch Michelle

b. Yes, because he threatened Michelle d. Yes because as stated in class this is a classic case of intentional infliction of emotional distress

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____ 32. While discussing “standing” we talked about the group that sang the song “Standing In The Shadows of Love.” Who performed this song?

a. The Temptations d. The Delfonicsb. The Four Tops e. Damn Professor these are some old

groups!c. The O’Jays

____ 33. In Palsgraf v. Long Island Railroad Mrs. Palsgraf sued the Long Island Railroad for negligence after: a. She fell from the train c. She was robbed on Long Island

Railroad Propertyb. A scale fell on her d. She missed the train

____ 34. The law of real property used to follow a doctrine which held that a land owner owned the entire column of air above his land “up to the heavens.” This doctrine was referred to as:

a. The Hail of Heavens Doctrine c. Julius Ceasars Ruleb. The Henry the Eigth Doctrine d. the ad coelum doctrine

____ 35. Jay is so stupid that he thought that he could not use his AM radio in the evening. Jay drops a bowling ball on Kyla's foot. Jay is liable for negligence if he acted

a. unrealistically.b. unreasonably.c. unrecognizably.d. unreliably.

____ 36. When reaching for a bottle of lemonade from a display of lemonade bottles inside a Target store, Russell slipped and fell on the floor where a very small puddle of lemonade had spilled next to the display. In the fall, Russell broke his ankle and leg and required months of treatment for his injuries. None of the Target store employees were aware of the lemonade on the floor before Russell slipped on it. Based on the court's reasoning in Case 7.1, Martin v. Wal-Mart Stores, Inc., if Russell sues Target for damages, he will most likely

a. win, because it was foreseeable that some of the lemonade from the display would end up on the floor.

b. win, because the thing speaks for itselfc. lose, because Target cannot be held liable for a hazard if its employees were

not aware of it.d. lose, because he should have been more careful.

____ 37. John sees that Kris is about to step into the path of an oncoming bus. If John does not warn Kris of the danger, John is liablea. only if Kris is injured.b. only if Kris is not injured.c. regardless of the consequences to Kris.d. under no circumstances.

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____ 38. Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls, smashing through the roof of a house, killing Chris. But for Bart's negligence, Chris would not have died. Regarding the death, the crash is the

a. cause in fact.b. intervening cause.c. proximate cause.d. superseding cause.

____ 39. In Case 7.2, Palsgraf v. Long Island Railroad Co., the court decided that the railroad employee's conduct was not wrong in relation to Palsgraf but did not decide whether the conduct was negligent toward the man with the package (that led to Palsgraf's injury). If the court determined that the railroad employee was negligent with regard to the man with the package, would the railroad have been liable for the injury to Palsgraf?a. Yes, because negligence to one party creates negligence to all other parties

injured as a result.b. No, because Palsgraf's injury was still not foreseeable.c. Yes, because of the doctrine of respondeat superior.d. No, because Palsgraf was also negligent.

____ 40. “In The Air Tonight” written by Phil Collins was a song about a person’s duty to rescue and involves a person whoa. Suffocated when trapped under a

plastic bagc. Drowned

b. Fell from a tree and died after receiving air from a faulty respirator

d. Died of a drug overdose

____ 41. The highest judicial officer in the country, the Chief Justice leads the business of the Supreme Court and presides over the Senate during impeachment trials of the President of the United States. In modern tradition, the Chief Justice also administers the oath of office to the President, but this is not required by the Constitution or any other law.

The seventeenth and current Chief Justice is John Roberts, who was nominated by President George W. Bush, and took office on September 29, 2005 upon confirmation by the United States Senate. His official title is:

a. Chief Justice of the United States Supreme Court

c. Associate Justice

b. Chief Justice of the United States d. Chief Judge of U.S. District Courts

____ 42. Nick, a medical doctor, lives in a state that has a Good Samaritan law that requires all medical doctors to assist those in peril. Nick sees Opal, a stranger, (who is so fine that she stops traffic in New York when she is walking in Los Angeles) in peril, but does not attempt to rescue her. Opal could successfully sue Nick for:a. negligence per se.b. nothing.c. a violation of the "danger invites" rescue doctrine.d. a violation of a Good Samaritan statute.

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____ 43. An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Kay, a patron, is injured. Jack's has committeda. a dram shop act.b. contributory negligence.c. negligence per se.d. res ipsa loquitur.

____ 44. A thief entered Professor Isler ‘s house in California in the middle of the night. Professor Isler saw the man and immediately got his 44 Magnum. As the thief pointed his loaded gun at Professor Isler, the Professor, a marksman, looked at the door behind him. He asked the thief, “Can I just leave?” The thief said yes. Instead of leaving, Professor Isler turned toward the door and then quickly turned around shot at the thief and a gun fight broke out. Professor Isler shot the thief in the hand causing the thief’s gun to fly out of his hand. Professor Isler was able to get the thief’s gun. Then the Professor had a “Dirty Harry Harlem Flashback” then looked at the thief and said

"I know what you're thinking. Did he fire six shots or only five? Well to tell you the truth in all this excitement I've kinda lost track myself. But being this is a .44 Magnum - the most powerful hand gun in the world and would blow your head clean off, you've got to ask yourself one question--Do I feel lucky? Well, do ya punk!"

The thief said “Please let me live,” but Professor Isler shot again and blew the thief’s head clean off of his body. The thief’s accomplices rushed inside the house and Professor Isler shot them also. The following conversation took place in Professor Isler’s house between Professor Isler and a police officer

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POLICE OFFICER: So why did you shoot that man?

Professor Isler: I didn't like the way he looked at me.

OFFICER: We'll see if any of the accomplices can corroborate that... hey, they've all been shot too.

Professor Isler: After I shot that guy, I didn't like the way they were looking at me either, so I shot them as well.

OFFICER: I guess we have nothing to hold you on, then. You're free to go.

Professor Isler: Don't look at me that way!“Professor Isler “was charged with murder of the Thief only and asserted the “King of the Castle Doctrine” and “Self Defense” as a defense. What is the likely result?

a. Since the Professor was in California, the King of the Castle Doctrine applies, he was not required to retreat and this is an absolute defense

c. Since Professor Isler was in California, the King of the Castle Doctrine does not apply, he was required to retreat and this is no defense

b. The Professor exceeded the amount of force necessary to repel the thief and committed murder

d. Professor Isler used an appropriate amount of force since the thief had a gun. He also had no duty to retreat because he was protecting himself not property

____ 45. Kay is so stupid that she changes her baby's diaper only once a month because the label on the diaper said, "good up to 20 pounds." Kay carelessly bumps into Lyle, knocking him to the ground. Kay has committed the tort of negligence

a. only if Lyle is injured.b. only if Lyle is not injured.c. under any circumstances.d. under no circumstances.

____ 46. In an emergency situation, Lori renders aid to Mike, who needs help. Mike would most likely be prohibited from suing Lori for negligence undera. any circumstances.b. a Good Samaritan statute.c. a social host statute.d. no circumstances.

____ 47. Gail is so ugly she makes onions cry. She is also a "payday" lender charged with filing false claims in bankruptcy proceedings against her debtors. The standard of proof to find a defendant who has been charged with a crime guilty isa. a preponderance of the evidence.b. beyond all doubt.c. beyond a reasonable doubt.d. clear and convincing evidence.

____ 48. In Tennessee is it a misdemeanor to be ugly. Cathy, is so ugly that she went to a haunted house and came out with an application. She is arrested and charged with being ugly, a misdemeanor. A misdemeanor is a crime punishable by imprisonment up to

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a. one year.b. six months.c. ten years.d. thirty days.

____ 49. Dave is so stupid that he once tripped over a cordless phone. Dave pushes Ella to the ground, grabbing her purse as she falls. The use of force or fear is required for this act to constitute

a. burglary.b. forgery.c. larceny.d. robbery.

____ 50. If you see Professor Isler in a bar and you wish to send him a drink, you should send:

a. Bacardi 151 Rumb. Scotchc. Ketel Oned. Jack Daniels

____ 51. Jack receives an MP3 player stolen from Kate. To be criminally liable, Jacka. must know only that the player is stolen.b. must know only that Kate is the true owner.c. must know that the player is stolen and that Kate is the true owner.d. need not know that the player is stolen or that Kate is the true owner.

____ 52. Phil sets fire to his house. At common law, the crime of arson could be committed only if a person burned downa. a commercial building.b. an unoccupied structure.c. his or her own house.d. the house of another person.

____ 53. Mona offers Ned, a building inspector, money to overlook the violations in her new warehouse. Ned accepts the money and overlooks the violations. Mona is charged with the crime of bribery. The crime occurred whena. Mona decided to offer the bribe.b. Mona offered the bribe.c. Ned accepted the bribe.d. Ned overlooked the violations.

____ 54. Eve, a First Bank employee, deposits into her account checks that are given to her by bank customers to deposit into their accounts. This isa. embezzlement.b. forgery.c. larceny.

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d. robbery.

____ 55. Harry, a computer programmer for Inventory Control Corporation, is arrested in his employer's parking lot on suspicion of larceny. Harry must be informed of his right toa. a trial by jury.b. punishment.c. question witnesses.d. remain silent.

____ 56. In the early 1600’s a man saw a woman that he fancied. Later that night when she fell asleep he entered her house without her permission and had sex with her. The man did not know that the woman had been dead for an hour before sex. The man was charged with rape. What was the result of this case?

a. He was convicted of rape c. He was convicted of burglaryb. He was convicted of attempted rape d. He was not convicted of rape

____ 57. Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail'sa. payment of money only.b. performance of a particular act only.c. promise only.d. prudent awareness only.

____ 58. Kate begins to perform, intending that the completion of her performance act as an acceptance of Lyle's offer. Under the modern-day view, an offer that can only be accepted by completion of a specific act can

a. be revoked any time after the offer is made.b. be revoked any time before the completion of performance.c. not be revoked once performance has substantially begun.d. not be revoked once the promisee indicates he or she will perform.

____ 59. Jay tells Kim that he will buy her textbook from the last semester for $80. Kim agrees. Jay and Kim havea. an express contract.b. an implied-in-fact contract.c. an implied-in-law contract.d. a quasi contract.

____ 60. Federal Oil Company and Great Apartments, Inc., sign a contract in which Federal agrees to deliver heating oil in exchange for Great's promise to pay for it. Federal delivers the oil. The contract isa. executory on the part of Federal.b. executory on the part of Great.c. fully executed.d. neither executed nor executory on the part of either party.

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____ 61. Pete, a judge, can apply the doctrine of quasi contract to a dispute between Quality Service Company and Regulated Office Systemsa. only if there is a valid contract covering the area in question.b. only if there is not a valid contract covering the area in question.c. whether or not there is a valid contract covering the area in question.d. under no circumstances.

____ 62. Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be determined by reference toa. any available evidence.b. any relevant extrinsic evidence.c. the face of the instrument.d. the later testimony of the parties.

____ 63. Nora enters into a contract with Owen's Transport Company for the delivery of a shipment of fresh produce. If ambiguities appear in the contract, they will be construed againsta. the party who drafted the contract.b. the party with the greater bargaining power.c. the promisor.d. the promisee.

____ 64. On Monday the following conversation took place between Able and Baker:

ABLE: I promise to paint your house tomorrow for $200

BAKER: I promise to pay you $200 for painting my house tomorrow.

Able then turned down a Tuesday painting job offered by Charlie that would have paid him $200 because Able wanted to honor the agreement with Baker. On Tuesday Able arrived at Baker’s house and saw that the “Z Bright” Painting company had already painted 80% of Baker’s house. Able requested $200 from Baker but Baker refused to pay. Able immediately filed a lawsuit against Baker.

On Wednesday the lawsuit was heard by a judge. Able looked at the judge and said:

Your Honor Baker is a scoundrel. We had a valid contract whereby I was to paint his house yesterday. When I arrived I found the house was being painted by someone else. I respectfully request that you order Baker to pay me $200 as quantum meruit as this is the amount that I would have made had I painted Charlie’s house.

The judge has asked you for advice. What should you tell him?

a. Your Honor, Able is correct and you should order Baker to pay him $200

c. Your Honor Able is incorrect and he is not entitled to damages in this case since Baker had the power to revoke his offer

b. Your Honor, Able is correct and you should order Baker to pay his travel expenses

d. Your Honor Able is incorrect. You cannot award him damages based on quantum meruit in the case but you can award the $200 based on the actual contract that existed

____ 65. A superseding intervening cause

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a. Cuts of proximate causation c. Cuts of proximate causation or can be a defense to negligence

b. Is a defense to negligence d. Does not cut off proximate causation and cannot be used as a defense to negligence

____ 66. On Monday the following conversation took place between Able and Baker:

ABLE: I promise to paint your house tomorrow for $200

BAKER: I promise to pay you $200 for painting my house tomorrow.

Able then turned down a Tuesday painting job offered by Charlie that would have paid him $200 because Able wanted to honor the agreement with Baker. On Tuesday Able arrived at Baker’s house and saw that the “Z Bright” Painting company had already painted 80% of Baker’s house. Able requested $200 from Baker but Baker refused to pay. Able immediately filed a lawsuit against Baker.

On Wednesday the lawsuit was heard by a judge. Able looked at the judge and said:

Your Honor Baker is a scoundrel. We had a valid contract whereby I was to paint his house yesterday. When I arrived I found the house was being painted by someone else. I respectfully request that you order Baker to pay me $200 as quantum meruit as this is the amount that I would have made had I painted Charlie’s house.

At the end of his complaint Able requested $200. What is this called?

a. Compensatory quantum meruit c. Parol evidenceb. The prayer d. The ending verification

____ 67. In the famous exploitation film entitled ‘The Mack” Max Julian killed “Pretty Tony.” How was Tony killed?

a. Max Julian ran him over c. Max tied dynamite to Tony’s mouth and blew him up

b. Max Julian shot him d. Max injected Tony with an overdose of drugs

____ 68. On July 11, 2006 the following conversation took place between Professor Isler and Mr. Motta:

PROFESSOR ISLER: I promise to pay YOU $100,000 if you work for my company. You can begin work on August 1, 2006 and work for one year, then we shall see if you will continue to work for my company

MR MOTTA: I accept.

What is true about the contract between Mr. Motta and Professor Isler?

a. It is valid c. It is invalidb. It is valid but unenforceable at

Professor Isler’s option because the contract was not in writing

d. It is voidable

____ 69. On July 11, 2006 the following conversation took place between Professor Isler and Mr. Motta who owns Candlestick Park:

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PROFESSOR ISLER: I promise to build a new ballpark by September 1, 2007 for four hundred million dollars

MR MOTTA: I accept.

What is true about the contract between Mr. Motta and Professor Isler?

a. It is invalid c. It is valid and need not be in writingb. It is invalid because it was not in

writingd. It is valid only if there is a

subsequent writing

____ 70.Little Billy is on United Airlines Flight 241 bound for Los Angeles from San Francisco. Donna is on the same flight and she is traveling with her pet snake in the world famous “Snake Carrier.” Donna has trained this snake to do amazing things. The snake can fetch the morning paper, play “Take The A Train” on the piano and cook better than Emeril Lagasse. Donna, who had negligently left the door to the “Snake Carrier” open, fell asleep when the plane approached thirty thousand feet and the snake slithered back toward the bathroom. Billy had just left the bathroom and noticed the snake. Billy ran as fast as he can because he was scared to death and fell down and broke his arm. Billy then files a law suit alleging strict liability. What is the likely outcome?

a. Billy will win based on strict liability c. Billy will win if the “Snake Carrier” was defective

b. Billy will lose because he was negligent for running on a plane

d. Billy will lose because there was no need to run from a trained snake

____ 71. Under the mailbox rule an acceptance:a. Is effective when received c. must be in writingb. Is effective upon dispatch d. Is effective only if sent by mail

____ 72. Chuck decides to try to sell his vintage cars in an auction "with reserve." If Chuck changes his mind, he can withdraw his carsa. only before the auction begins.b. only before the auctioneer announces that the cars are sold.c. only before the auctioneer delivers the cars to the buyers.d. up to within thirty days after the auction.

____ 73. Bob offers to sell Carol his computer but conditions the sale on Carol accepting the offer by May 1. Bob may revoke the offera. before Carol accepts the offer.b. before May 1, whether or not Carol has accepted the offer.c. only after Carol accepts the offer.d. only after May 1.

____ 74. Topp Properties, Inc. (TPI), offers to sell its warehouse to U-Store-It Center for a certain price. This offer is irrevocablea. if there are no other potential buyers.b. if TPI does not advertise the offer generally.c. if U-Store-It pays to have the offer held open.d. under no circumstances.

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____ 75. Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will offer to buy it for $90,000." Dina hasa. accepted the offer.b. made a counteroffer without rejecting the offer.c. rejected the offer and made a counteroffer.d. rejected the offer without making a counteroffer.

____ 76. Extra CreditAntonio leased a store from Melanie under a ten-year lease with a five-year renewal option. The lease required written notice of the intent to renew at least six months before the lease expired. The lease indicated that notice "may be delivered either personally or by depositing the same in United States mail." Six months and one day before the expiration of the ten-year lease, Antonio sent a fax to Melanie during regular business hours stating his intention to renew the lease for five years. Antonio received an electronic confirmation that the fax had been successfully transmitted. Based on the ruling in Case 11.3, Osprey L.L.C. v. Kelly-Moore Paint Co., under these circumstances, Antonio's faxa. was not a valid method of transmitting notice of his intention to renew the

lease because personal delivery or U.S. mail delivery was required by the lease.

b. was not a valid method of transmitting notice of his intention to renew the lease because a fax can never provide legally valid notice.

c. was a valid method of transmitting notice of his intention to renew the lease because a fax performs the same function and serves the same purpose as personal delivery or U.S. mail delivery.

d. was a valid method of transmitting notice of his intention to renew the lease because any method of transmission would have been valid under the circumstances.

16

Business Law 201 Summer 2006 MidtermAnswer Section

MULTIPLE CHOICE

1. ANS: C DIF: Easy REF: 6/20/2006 Lecture


3. ANS: A DIF: Easy REF: 6/20/2006 Lecture

4. ANS: B DIF: Easy REF: 6/21/06 lecture

5. ANS: C DIF: Moderate REF: 6/20/2006 Lecture

6. ANS: D DIF: Difficult REF: 6/20/2006 Lecture

7. ANS: B DIF: Moderate REF: 06/20/2006 lecture

8. ANS: B DIF: Easy REF: 6/20/2006 Lecture


10. ANS: D DIF: Easy REF: 6/22/2006 Lecture






16. ANS: D DIF: Easy

17. ANS: A DIF: East REF: 6/22/2006 Lecture

18. ANS: C DIF: Moderate REF: 6/22/2006 Lecture


20. ANS: D DIF: Easy REF: 6/22/2006 Lectures

21. ANS: D DIF: Easy REF: 6/22/06 & 6/27/06 Lectures

22. ANS: C DIF: Difficult REF: 6/22/2006 Lecture

23. ANS: A DIF: Moderate REF: 6/22/2006 Lecture


25. ANS: C DIF: Easy REF: Attendance Question- 6/27/2006

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26. ANS: A DIF: Easy



29. ANS: C DIF: Easy

30. ANS: B DIF: Moderate REF: 6/27/06 Lecture


32. ANS: B DIF: Easy REF: Attendance



35. ANS: B DIF: Easy

36. ANS: A DIF: Difficult REF: 6/29 Lecture, Suggested Reading per Student Forum

37. ANS: D DIF: Easy REF: Textbook Page 143

38. ANS: A DIF: Easy REF: Text page 143

39. ANS: B DIF: Moderate REF: Text page 144

40. ANS: C DIF: Easy REF: Attendance, 6/27/2006

41. ANS: B DIF: Easy

42. ANS: D DIF: Moderate REF: 6/27/2006 Lecture

43. ANS: C DIF: Moderate

44. ANS: B DIF: Difficult REF: 6/27/2006 Lecture

45. ANS: A DIF: Easy REF: Page 143

46. ANS: B DIF: Easy REF: Page 148

47. ANS: C DIF: Easy REF: Page 178

48. ANS: A DIF: Easy REF: 0

49. ANS: D REF: Page 182

50. ANS: C DIF: Easy REF: Attendance question 7/6/2006




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55. ANS: D REF: 2


57. ANS: C DIF: Easy REF: 7/11/2006

58. ANS: C DIF: Easy REF: 7/11/2006



61. ANS: B DIF: Moderate REF: 7/11/2006



64. ANS: D DIF: Easy REF: 7/11/2006 lecture example



67. ANS: C DIF: Easy REF: Attendance

68. ANS: B DIF: Easy REF: 7/11/2006 example

69. ANS: C DIF: Easy REF: 7/11/2006 example

70. ANS: A DIF: Easy REF: Spring 06 Mid-term, 7/11/2006 Lecture

71. ANS: B DIF: Easy REF: 7/11/2006



74. ANS: C DIF: Moderate REF: 7/11/2006 lecture

75. ANS: C DIF: Essay REF: 7/11/2006 lecture

76. ANS: C DIF: Difficult REF: Text Book

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