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Questions
Q:
Which of the following is true of monetary damages?
A) Monetary damages are available only for material breaches of contract.
B) Dollar damages are not monetary damages.
C) Compensatory damages are not monetary damages.
D) Consequential damages are monetary damages.
Q:
State courts are independent of federal courts.
Q:
Distinguish between minor breach and material breach.
Q:
The function of the courts is to interpret and apply the law.
Q:
Distinguish between conditions and covenants.
Q:
Which of the following would be considered income in kind?A) tax refunds B) food stampsC) yard sales D) reduction in the tax rates
Q:
Explain the creation and working of guaranty contracts.
Q:
Federal courts are superior to state courts.
Q:
Worldwide Trucking Corporation files a suit in a state court against XL Service Company, and wins. XL appeals the court's decision, asÂserting that the evidence presented at trial to support Worldwide's claim was such that no reasonable jury could have found for the plaintiff. ThereÂfore, argues XL, the appellate court should reverse the trial court's deÂciÂsion. May an appellate court ever reverse a trial court's findings with reÂspect to questions of fact?
Q:
________ is an action to undo a contract.
Q:
MicroWare hosts a Web site that advertises its software products, feaÂtures upgrades and "patches" for its existing software products, and acÂcepts orders for the products from consumers throughout the world. Mary, who owns and operates Business Records, Inc,, a small bookkeepÂing and payroll business in Colorado, orders from the Web site a copy of MicroWare's Office Books software. Office Books is designed to help acÂcountants and bookkeepers keep accurate business records. When Office Books is found to have a defect in its calculating program, MicroWare ofÂfers a patch on its Web site to fix the problem. Mary has already lost sevÂeral customers because of the miscalculating defect, however, and files a suit against MicroWare in a Colorado state court. Can the court exercise jurisdiction over MicroWare? Why or why not?
Q:
A(n) ________ is an unconditional promise to perform.
Q:
The U.S. labor movement startedA) with local craft unions composed of workers who engaged in a particular trade or skill, such as baking, carpentry or plumbing.B) during the Civil War. C) after World War I.D) with the Knights of Labor, an organized group of both skilled and unskilled workers.
Q:
Elle is walking to work along a sidewalk next to a road. A truck owned by Fast Distribution Company (FDC) strikes and injures Elle, causing her injuries that result in more than $250,000 in medical expenses. Elle is a resident of Georgia, where the accident occurred. FDC has its princiÂpal place of business, and is incorporated, in Delaware. In what court may Elle sue FDC?
Q:
A(n) ________ is a party who is unintentionally benefited by other people's contracts.
Q:
The Alabama Consumer Protection Agency (ACPA) investigates the marketing practices of Beta Sales, Inc. The ACPA serves a subpoena on Beta, ordering the firm to provide certain business records, including its marketing agreements with other companies. Beta refuses to comply with the subpoena. On what is Beta most likely basing its refusal? Is a court likely to support Beta's position? Why or why not?
Q:
An obligee who transfers a right is known as a(n) ________.
Q:
A state legislature enacts a statute that prohibits the advertising of video games "because the games might be harmful to minors." Despite this new statute, the president of Games Marketing, Inc. (GMI), orders GMI marketers to place ads in any media. When a GMI ad appears on HDTV, a local television station, GMI and HDTV are charged with violating the statute. What is the defendants' best defense against a conviction?
Q:
The term ________ refers to any oral or written words outside the four corners of a written contract.
Q:
The price elasticity of demand for labor will be smaller, theA) smaller is the price elasticity of demand for the final product.B) easier it is to employ substitute inputs in production.C) larger is the proportion of wage costs in the total cost of production.D) longer is the time period under examination.
Q:
Old Oak Brewery, Inc., makes and sells alcoholic beverages with labels that display a drawing of a squirrel making the gesture generally known as "giving the finger." Old Oak applies to the Ohio State Liquor Authority (OSLA) for brand-label approval to sell the beer in Ohio. Without considÂerÂing alternatives, OSLA denies approval because "the label could apÂpear in grocery stores, with obvious exposure on the shelf to children of tender age." Why would a court hold that the denial of Old Oak's applicaÂtion vioÂlates the First Amendment?
Q:
A(n) ________ is a clause in a contract which stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.
Q:
Jen operates Jen's Fruits & Vegetables, a small market stocked entirely with produce grown on her adjacent farm. Under what clause of the Constitution can the federal government regulate Jen's activities? What is Jen's best argument against federal regulation of her farm and business?
Q:
________ of the Uniform Commercial Code (UCC) is the basic Statute of Frauds provision for sales contracts.
Q:
Jolene, a law enforcement official, monitors Kelsey's Internet activitiese-mail and Web site visitsto gain access to her personal financial data and student information. This may violate Kelsey's right to
a. equal protection of the law.
b. privacy.
c. procedural due process.
d. substantive due process.
Q:
A(n) ________ refers to a promise in which one person agrees to answer for the debts or duties of another person.
Q:
Harbor Town enacts an ordinance to allow only a few street vendors to opÂerÂate in certain areas, for the purpose of reducing traffic. A court would likely review this ordinance under the principles of
a. the commerce clause.
b. the equal protection clause.
c. the due process clause.
d. the First Amendment.
Q:
The ________ states that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.
Q:
All of the following are exempt from antitrust enforcement EXCEPT A) professional baseball. B) labor unions.C) hospitals. D) television and radio stations.
Q:
Myra claims that a Nebraska state statute infringes on her "procedural due process" rights. This claim focuses on
a. procedures used in making decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Mary's privacy.
Q:
The ________ is an equitable doctrine that allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice.
Q:
Substantial performance of a contract constitutes a material breach.
Q:
A Massachusetts state statute imposes a prison term, without a trial, on all street entertainers who operate in certain areas. A court would likely review this statute under the principles of
a. equal protection.
b. free exercise.
c. procedural due process.
d. substantive due process.
Q:
An agreement whereby the parties agree to accept something different in satisfaction of the original contract is called a restitution.
Q:
Parker owns and operates Rancho Mirage Corporation, a destination resort in Arizona that features horseback riding and bunkhouse accommodations. The Constitution provides that no person shall be deprived of "life, liberty, or property without due process of law." Included as "legal persons" under this clause are
a. the bunkhouses and other "manmade creations."
b. the corporation and Parker.
c. horses and other "beings in nature."
d. none of the choices.
Q:
Wyoming enacts a statute that limits the liberty of all persons, including corporations, to broadcast "annoying" radio commercials. This may violate
a. equal protection.
b. procedural due process.
c. substantive due process.
d. the right to privacy.
Q:
A force majeure clause usually excuses nonperformance caused by natural disasters such as floods, tornadoes, and earthquakes.
Q:
Long-run economic profits are possible underA) perfect competition and oligopoly.B) monopolistic competition and monopoly. C) oligopoly and monopoly.D) monopolistic competition and oligopoly.
Q:
Ralph, an investigator for the Securities and Exchange Commission, goes to the offices of Trust & Worthy Accountants to inspect Trust & Worthy's clients' business records. Government inspectors generally have a right to enter business premises
a. only with a warrant.
b. without a warrant.
c. once the issuance of a warrant has been sought.
d. under no circumstances.
Q:
A covenant is an unconditional promise to perform.
Q:
The parol evidence rule stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.
Q:
Kansas enacts a law requiring all businesses in the state to donate 10 perÂcent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Lo-Price Stores files a suit to block the law's enforcement. The court would likely hold that this law violates
a. no clause in the U.S. Constitution.
b. the establishment clause.
c. the free exercise clause.
d. the supremacy clause.
Q:
The police obtain a search warrant and search Errol's apartment. After yelling obscenities at the officers, Errol confesses to a crime and impliÂcates his friends. The Constitution protects against
a. obscene speech.
b. implication of others.
c. unreasonable searches.
d. none of the choices.
Q:
In terms of compliance with the Statute of Frauds and the Uniform Commercial Code, the signature of the person who is enforcing the contract is required.
Q:
Xtreme Publications, Inc., disseminates obscene materials. This is
a. a crime under nuÂmerous state and federal statutes.
b. a privilege under Article IV, Section 2.
c a right under the commerce clause.
d. a right under the First Amendment.
Q:
If the modification of a lease contract increases the lease payment to $1,000 or more, the modification has to be in writing to be enforceable.
Q:
Which of the following is an example of a vertical merger?A) Northeastern Illinois University merging with McDonaldʹs.B) Northeastern Illinois University merging with a training academy for new professors. C) Northeastern Illinois University merging with Roosevelt University.D) Northeastern Illinois University going from a public to a private university.
Q:
Brad stands in front of Rustler's Round-Up Café, shouting "fighting words" that are likely to incite Rustler's patrons to respond violently. The First Amendment protects such speech
a. all of the time.
b. none of the time.
c. only if it is noncommercial.
d. only if it is symbolic.
Q:
Complete performance occurs when a party to a contract renders performance exactly as required by the contract.
Q:
Congress enacts the Advertising Restriction Act (ARA. The ARA will be considered valid if it directly advances a substantial government interest and
a. goes no further than necessary.
b. without regard to how "far" it goes.
c. parties affected by it can elect how "far" to apply it.
d. goes further than necessary to ensure full coverage.
Q:
The one-year rule states that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.
Q:
According to the equal dignity rule, agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.
Q:
Iowa enacts a law that restricts certain kinds of advertising to protect consumers from being misled. This law would likely be held by a court to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect state interests.
Q:
The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.
Q:
Direct Mail Sales, Inc., regularly advertises its products. Under the First Amendment, in comparison to noncommercial speech, these ads are given
a. equal protection.
b. less protection.
c. more protection.
d. no protection.
Q:
Trees, crops, minerals, and timber are not considered real property and are thus barred from being included in contracts involving interests in real property.
Q:
In the long run, if some monopolistically competitive firms are earning economic losses thenA) firms will leave the industry.B) raise prices until they earn economic profits.C) they will increase production until marginal costs fall. D) new firms will enter the industry.
Q:
Minnesota enacts a statute to ban advertising in "bad taste." This statÂute would likely be held by a court to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect state interests.
Q:
A(n) ________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.
A) material
B) minor
C) anticipatory
D) defensive
Q:
Colorado enacts a statute that bans the distribution of anonymous politiÂcal leaflets. A court would likely hold this to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect state interests.
Q:
Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply of 500 truckloads of sand within a week. Delta Resources delivers the sand in two days after the contract was made. Poole Contractors pays the $50,000 promised in the contract. This is an instance of ________.
A) substantial performance
B) a material breach
C) a minor breach
D) strict performance
Q:
Reusable Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech isa. discouraged.b. forbidden.c. protected.d. required.
Q:
Mercy, the chief executive officer of Medico Hospital Corporation, claims that certain actions by the state of New York infringe on rights guaranteed by the Bill of Rights. Most of these rights are held to limit
a. federal governmental actions only.
b. federal and state governmental actions.
c. state governmental actions only.
d. actions by non-governmental entities only.
Q:
Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?
A) injunction
B) writ of garnishment
C) tender of performance
D) writ of attachment
Q:
In the above figure, what is the profit-maximizing price and output?A) $9, 14 B) $13, 14 C) $11, 16 D) $10, 17
Q:
Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion's principles. The First Amendment guarantees Mike's freedom of
a. religion only.
b. speech only.
c. the press only.
d. the press, speech, and religion.
Q:
Which of the following statements is true of a breach of contract?
A) Strict performance by a party discharges that party's obligations under the contract.
B) Inferior performance constitutes a minor breach of contract.
C) Substantial performance constitutes a material breach.
D) The most common remedy for a breach of contract is an award of equitable remedies.
Q:
The Tourist Travelers Association wants the federal government to spend money to build a new highway. Congress can spend revenues
a. only to carry out its enumerated powers.
b. to promote any objective that it deems worthwhile.
c. as long as the funds are spent uniformly among the states.
d. without regard to whether the expense violates the Constitution.
Q:
A clause in a contract in which the parties specify certain events that will excuse nonperformance is known as a(n) ________.
A) approval clause
B) express condition
C) force majeure clause
D) implied-in-fact condition
Q:
Congress enacts the Supplemental Income Tax Act (SITA) to exempt the citizens of Louisiana from their federal taxes until New Orleans is rebuilt from the ravages of Hurricane Katrina. SITA will most likely be
a. rendered invalid under the supremacy clause.
b. rendered valid the equal protection clause.
c. struck down under the taxing and spending clause.
d. upheld under the commerce clause.
Q:
Lionel Richmond is a soccer player who has a six-year contract with the Christshire United soccer team. Two years into the contract, he is involved in an accident which results in the complete amputation of his right leg. On what basis is Richmond discharged from further performance of the contract?
A) novation
B) substituted contract
C) accord and satisfaction
D) discharge by impossibility of performance
Q:
Congress enacts a law prohibiting toys made in China from being sold in the United States. The Hawaii state legislature enacts a law allowing the sale of Chinese-made toys. Hawaii's law will most likely be
a. rendered invalid under the supremacy clause.
b. rendered valid the equal protection clause.
c. struck down under the taxing and spending clause.
d. upheld under the commerce clause.
Q:
Which of the following refers to an agreement that substitutes a new party for one of the original contracting parties and relieves the existing party of liability on the contract?
A) novation
B) substituted contract
C) mutual rescission
D) accord
Q:
When price equals marginal costA) firms make zero profits.B) firms make positive profits.C) the industry is in long-run equilibrium.D) the marginal benefits of consuming an extra unit of the good exactly equals the marginal cost to society of producing the good.
Q:
Len, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in Chesapeake Bay. The Maryland state legislature enacts a law that bans all commercial fishing in the bay. The state law most likely violates
a. no provision in the U.S. Constitution.
b. the commerce clause.
c. the due process clause.
d. the supremacy clause.
Q:
Which of the following is true of discharge by agreement?
A) A partially executed contract cannot be rescinded.
B) Mutual rescission requires parties to enter into a second agreement that expressly terminates the first one.
C) A party is allowed to rescind a contract without the consent of the other party.
D) Unilateral rescission is not regarded as a breach of contract.
Q:
James hires Franco for a painting job. Their contract explicitly states that Franco's employment can be terminated if he is employed by another party during the contract period. Two weeks into the job, James finds out that Franco is also working for a painting agency two blocks away and terminates his employment. This is an instance of a(n) ________.
A) condition precedent
B) condition subsequent
C) concurrent condition
D) implied condition
Q:
Congress enacts a law that sets out a medical-device approval process for the Food and Drug Administration to follow. The law includes a preemption provision. A device that goes through the process injures Joe, who files a claim under state law to recover. The court will most likely rule that
a. Joe's state law claim preempts the federal law.
b. the federal law and state law claim are concurrent.
c. the federal and state law claim cancel each other out.
d. the federal law preempts Joe's state law claim.
Q:
________ refers to a condition whose occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform.
A) Condition precedent
B) Condition subsequent
C) Concurrent condition
D) Implied condition
Q:
The state legislature of Kansas enacts a statute to regulate trucking that affects interstate commerce. This statute will be balanced in part in terms of
a. the courts' authority to determine that a law is unconstitutional.
b. the purpose of interstate commerce.
c. the state's interest in regulating the matter.
d. the statute's impact on noneconomic activity.