Q&A Hero

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: Xtreme Publications, Inc., disseminates obscene materials. This is a. a crime under nu­merous 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: Complete performance occurs when a party to a contract renders performance exactly as required by the contract.

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: 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: 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: 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: 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 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 politi­cal 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: 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: 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: 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: 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 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: 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: 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: 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.

Q: KnockKnock, Inc. is a manufacturer of stainless steel locks which are well known for their durability. The company contacts a new supplier and forms a supply contract. The contract states that KnockKnock, Inc. will only purchase steel from the supplier if the material supplied is high grade Type 102 stainless steel. This is an instance of a ________. A) condition subsequent B) concurrent condition C) covenant D) condition precedent

Q: Tami's Tasty Tacos, a mobile vendor, files a suit against the state of Utah, claiming that a Utah state law violates the commerce clause. The court will agree if the statute imposes a substantial burden on a. a local government. b. interstate commerce. c. noneconomic activity. d. the state.

Q: ________ refers to a condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract. A) Condition precedent B) Condition subsequent C) Concurrent condition D) Implied condition

Q: The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that a. Congress writes checks and the other branches balance the budget. b. each branch has some power to limit the actions of the others. c. the courts balance their authority to the other branches' checklists. d. the president "checks" the courts, which "balance" the laws.

Q: Which of the following is true of covenants and conditions? A) A covenant is a conditional promise to perform. B) A conditional promise becomes a covenant if the condition is met. C) A contract cannot contain conditions that excuse performance. D) A party cannot sue the other party for breach of a covenant.

Q: Ulrich, a citizen of Virginia, wants to enforce in the state of Washington certain rights that he has under a contract with Xtreme SnoBoards Inc. A Washington state court is most likely to enforce such rights under a. no provision in the U.S. Constitution. b. the commerce clause. c. the full faith and credit clause. d. the privileges and immunities clause.

Q: Which of the following phrases explains the term covenant? A) an unconditional promise to perform B) a breach of contract C) mutual rescission of a contract D) successive assignments of a right

Q: The Financial Institutions Association would like a certain law enacted, administered, interpreted, and enforced in the best interest of its members, which include banks. Under the Constitution, Congress a. administers the laws. b. enforces the laws. c. interprets the laws. d. makes the laws.

Q: A(n) ________ is a third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor. A) third-party contractor B) assignor C) sub-assignor D) intended third-party beneficiary

Q: The state of New York regulates private activities to protect or promote the public or­der, health, safety, and general welfare under its a. police powers. b. taxing powers. c. spending powers. d. supremacy powers.

Q: Kimlon Informatics is owed $5,000 from a client for its services. The recovery period is 100 days, but Kimlon needs the money immediately. It sells the right of collecting money from its client to Quikcollect, a collection agency. Here, Kimlon Informatics is the ________. A) obligor B) obligee C) subassignee D) assignee

Q: State laws often significantly protect individuals' privacy rights.

Q: A party who owes a duty of performance under a contract is called the ________. A) obligor B) assignor C) assignee D) obligee

Q: Law enforcement officials can track the e-mail communications of one party to find out the identities of other parties.

Q: The ________ states that if a written contract is a complete and final statement of the parties' agreement, any prior or contemporaneous oral or written statements that alter, contradict, or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract. A) main purpose exception B) leading object exception C) parol evidence rule D) equal dignity rule

Q: Pretexting is the process of obtaining information by false means.

Q: Which of the following does Section 2A-201(1) of the Uniform Commercial Code state? A) All lease contracts must be in writing. B) Lease contracts requiring payments of $1,000 or more must be in writing. C) All sales contracts must be in writing. D) Sales contracts requiring payments of $500 or more must be in writing.

Q: Jonas enters into an oral contract with Chelsea to lease his house to her for $100,000. Chelsea pays him $100,000 and moves in. A month later, Jonas learns that his state requires contracts for the lease of goods with payments of $1,000 or more to be in writing. Which of the following options does either party have? A) Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void. B) The contract cannot be rescinded by either party as it has already been executed. C) Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds. D) Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Q: There is a specific guarantee of a right to privacy in the Constitution.

Q: Which of the following contracts is required to be in writing in most states? A) contracts for the sale of goods priced at $100 B) contracts for the lease of goods with payments of $500 C) promises to transfer an ownership interest in real property D) handshake deals

Q: A law that regulates economic matters violates the equal protection clause.

Q: The doctrine of ________ 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. A) part performance B) undue performance C) equitable performance D) promissory estoppel

Q: The right to due process of law applies to corporations.

Q: Which of the following is considered real property? A) a fixture permanently affixed to a building B) fifty-one percent partnership in a firm C) a car D) diamond jewelry

Q: A law that limits only some persons' exercise of a fundamental right is valid under any circumstances.

Q: Substantive due process limits what the government can do in its legislative capacity.

Q: What is intentional misrepresentation and what are the elements required to prove fraud?

Q: Generally, government inspectors have the right to enter business premises without a warrant.

Q: ________ refers to a situation in which a party threatens to do a wrongful act unless another party enters into a contract.

Q: A search warrant must particularly describe whatever is to be searched.

Q: ________ refers to the knowledge that a representation is false.

Q: A law that has any impact on religion is unconstitutional.

Q: Intentional misrepresentation is commonly referred to as ________.

Q: The establishment clause of the U.S. Constitution prohibits the federal government from promoting a religion.

Q: A(n) ________ exists if both parties know the object of the contract but are mistaken as to its value.

Q: In a(n) ________ mistake, only one party is mistaken about a material fact regarding the subject matter of the contract.

Q: The First Amendment requires a complete separation of church and state.

Q: The First Amendment protects obscene speech.

Q: Duress occurs when one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract.

Q: The First Amendment does not protect commercial speech as extensively as noncommercial speech.

Q: Duress only occurs when a threat involves physical harm.

Q: The First Amendment does not protect corporate political speech.

Q: Duress is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.

Q: The courts determine when the laws restricting free speech are justified by the need to protect other rights.

Q: The measure of damages awarded to an innocent party for fraud is the difference between the value of the property as represented and the actual value of the property.

Q: A misrepresentation is considered fraud even if it is made without the intent to deceive another party.

Q: The Bill of Rights protects individuals against various types of interfer­ence by the government.

Q: Some constitutional protections apply to business entities.