Q&A Hero

Q: In the facts of the previous question, according to the reasoning of the dissent in Dole Food Co. v. Patrickson, parties who would be potentially subject to suit in U.S. courts would include A.Amigos and Bueno. B.neither Amigos nor Bueno. C.only Amigos. D.only Bueno.

Q: Amigos, Ltd., and Bueno, S.A., are Chilean firms. Amigos owns a majority of the shares of Bueno. The government of Chile owns a few shares of Amigos. Under the decision in Dole Food Co. v. Patrickson, parties who are immune from suit in U.S. courts under the Foreign Sovereign Immunities Act, as instrumentalities of foreign states, would include A.Amigos and Bueno. B.neither Amigos nor Bueno. C.only Amigos. D.only Bueno.

Q: In the facts of the previous questions, a U.S. court might pierce Amigos and Bueno's corporate status to impose liability on their owners, including the government of Chile, if the firms failed to follow or be involved in A.business activities. B.corporate formalities. C.ethical practices. D.foreign affairs

Q: In the facts in the previous question, according to the dissent in the Kavarik case, with respect to Glen and Heidi's marital estate, the CDs are A.not included because Heidi's parents did not intend to give them to her. B.not included because Irene cashed them without sharing the proceeds. C.included because Glen and Heidi were married when the CDs were acquired. D.included because Heidi's parents gave up control when the CDs were placed in the names of Heidi and Irene.

Q: Glen and Heidi are married. Later, Heidi's parents invest their savings in certificates of deposit (CDs) in the names of Heidi and her sister Irene. Their parents keep the CDs. When Glen files for divorce from Heidi, he lists the CDs as marital assets. Before the court divides the assets, Irene cashes in the CDs at her parents' instruction without sharing the proceeds with Heidi. Under the reasoning of the majority in Kovarik v. Kovarik, the court will most likely rule that, with respect to Glen and Heidi's marital estate, the CDs are A.not included because Heidi's parents did not intend to give them to her. B.not included because Irene cashed them without sharing the proceeds. C.included because Glen and Heidi were married when the CDs were acquired. D.included because Heidi's parents gave up control when the CDs were placed in the names of Heidi and Irene.

Q: In the facts in the previous question, if the CDs are seen as the property of Heidi and Irene, the sisters are most likely A.joint tenants. B.tenants at sufferance. C.tenants by the entirety. D.tenants in common.

Q: In the facts of the previous question, under the dissent's reasoning in Notz v. Everett Smith Group, Ltd., a minority BC shareholder could bring A.a claim against Typhoon's former directors. B.a direct claim against SBI's majority shareholders. C.a shareholder's derivative suit against Rewind. D.no claim.

Q: The holding in Notz v. Everett Smith Group, Ltd. shows that majority shareholders should A.act ethically and legally in the best interest of their corporation. B.always act in the best interest of minority shareholders. C.always act in their own best interest. D.give control of their corporation to a disinterested third party.

Q: Rewind Investments Inc. owns 90 percent of Swift Blades Inc. (SBI). Rewind's majority shareholders are also its directors and the directors of SBI. SBI's business is the design and assembly of wind-driven turbines. SBI is offered the opportunity to buy Typhoon Turbines, Inc., a competitor, but SBI's board turns it down. Within six months, Rewind buys Typhoon. Based on the court's reasoning in Notz v. Everett Smith Group, Ltd., a minority SBI shareholder could bring A.a claim against Typhoon's former directors. B.a direct claim against SBI's majority shareholders. C.a shareholder's derivative suit against Rewind. D.no claim.

Q: Harley is an employee of ICU Identity Systems Corporation. Harley regularly posts messages on a company-sponsored blog, which is read by employees, shareholders, and other stakeholders. According to the Securities and Exchange Commission, Harley's posts are subject to A.federal securities laws. B.international communications regulations. C.state blog and tweet rules. D.no law.

Q: Sayer is an employee of Thorny Foliage Eradication, Inc. Sayer tweets messages about Thorny Foliage to employees and outside interested parties, including investors and others. According to the Securities and Exchange Commission, Sayer's messages are subject to A.federal securities laws. B.international communications regulations. C.state blog and tweet rules. D.no law.

Q: Master Metals Corporation is publicly held. Under the Securities and Exchange Commission's "notice and access" e-proxy rules, Master's dissemination of proxy materials to its shareholders by posting them on a publicly accessible Web site is A.allowed in any circumstance but not required. B.allowed only if warranted. C.prohibited. D.required.

Q: Ren is a shareholder of Star Corporation. Ren wants to amend Star's bylaws to require it to publish the names of shareholder-nominated candidates for positions on the board of directors. Under the Securities and Exchange Commission's "notice and access" e-proxy rules, Ren can solicit proxies from other Star shareholders on this proposal by posting proxy materials on a publicly accessible Web site and sending a paper notice to A.any Star shareholder Ren selects. B.each Star shareholder. C.Star Corporation. D.the Securities and Exchange Commission.

Q: First Editions, Inc., a book dealer based in Texas, does business in all fifty states exclusively online. According to a decision of the United States Supreme Court, for an individual state to compel an out-of-state business to collect and remit state taxes, the business must have in that state A.a substantial physical presence. B.a potential marketing base. C.an accessible Web site. D.a party paid to solicit business for its products.

Q: Beyond Gamez, Inc., a video game retailer based in California, does business in all fifty states exclusively online. According to New York state tax law, an out-of-state online retailer must collect and remit state taxes to New York if the retailer A.plans to establish a substantial physical presence in New York. B.targets a potential marketing base in New York. C.maintains a Web site accessible in New York. D.pays a party within New York to solicit business for its products.

Q: According to the dissent's opinion in Media General Operations, Inc. v. National Labor Relations Board, in determining whether a discharge for an employee's "outburst" in violation of a workplace rule violates the NLRA, the court should focus on whether A.the arrest of the employee is warranted. B.the NLRA generally protects the employee from discharge. C.the remark undermines workplace discipline. D.the rule is fair and justifiable.

Q: According to the court in the Media General Operations, Inc. v. National Labor Relations Board case, in determining whether a discharge for an employee's "outburst" in violation of a workplace rule violates the NLRA, significant factors include A.the ability of the employee to obtain employment elsewhere. B.the nature of an employee's outburst. C.the sensitivity of those who witness the outburst. D.the specific phrasing of the rule.

Q: The Warehouse Workers Union represents Valley Transfer Company's employees in collective bargaining negotiations over a new contract. In a memo to the employees, Valley's president Uri accuses the union of delaying tactics. Later, Troy, a Valley employee, tells Stella, his supervisor, that Uri is "a m*****f****r." Stella fires Troy for violating a company rule against "threats." Troy files a suit against Valley. Under the holding in Media General Operations, Inc. v. National Labor Relations Board, the court will most likely conclude that the National Labor Relations Act A.did not protect Troy from discharge. B.does not apply to the use of profanity. C.protected Troy from discharge. D.requires Troy's immediate arrest.

Q: Pharma Meds Corporation employs Ogilvie under an employment contract that sets out a specific amount of money to be paid for certain results over a stated period of time. During the term of the contract, it becomes clear that the results are not likely to be attained. Pharma then gives Ogilvie the option of accepting a lesser position with fewer duties for less money. Ogilvie accepts via e-mail, but soon files a suit against Pharma for breach of the original contract. The court is most likely to rule that Ogilvie's e-mail A.showed only an agreement to agree. B.accepted the proposed modification of the employment contract. C.constituted a non-binding, non-contractual communication. D.contained an acceptance but is unenforceable because it is electronic.

Q: AgriEquip Service & Supply, Inc., sends Merilyn an e-mail in which AgriEquip offers to employ her for certain hours and a specific amount of money over a limited period of time. She responds with a counteroffer that reduces the hours and increases the money. AgriEquip e-mails an acceptance. Merilyn performs, but AgriEquip refuses to pay. She files a suit against AgriEquip for breach of contract. The court is most likely to rule that the e-mail A.showed only an agreement to agree. B.was an agreement to the essential terms of an employment contract. C.constituted an unenforceable, non-existent contract. D.contained a contract but is unenforceable because it is electronic.

Q: Jewel Property Company hires Klint, an independent contractor, to wash the windows of Jewel's commercial building. Jewel's tenant Lucy is injured when Klint closes a window on her hand. In determining whether Jewel is liable for Lucy's injury, the most important factor is A.Jewel's employment of Klint. B.Jewel's investigation of Klint's background and experience. C.the condition of the premises, especially the window. D.the degree of control that Jewel maintained over Klint's actions.

Q: Gass Propane Company hires Hick, an independent contractor, to make deliveries. During a delivery, Iggy is killed in an accident caused by Hick's negligence. Iggy's widow Jade files a suit against Gass, asserting that the employer is liable. Gass argues that it had no control over the manner in which Hick did his work. The court is most likely to hold that Gass is A.liable because Gass employed Hick. B.liable because Gass should have investigated Hick's qualifications. C.not liable because Gass did not control Hick's work. D.not liable because the delivery vehicle was probably faulty.

Q: In the facts of the first question, according to the reasoning of the dissent in the Central case, the prevailing party would be A.both Vance and WSU. B.neither Vance nor WSU. C.Vance. D.WSU.

Q: In the facts of the previous question, according to the court in the Central case, a party that would prefer a different result should seek relief from A.Congress. B.the courts. C.the president. D.the students of WSU and other state schools.

Q: Unicameral Production, Inc., files for bankruptcy. Vance, Unicameral's bankruptcy trustee, wants to recover a transfer that Unicameral made to Wisconsin State University (WSU) less than ninety days earlier. WSU asserts its sovereign immunity. Under the majority's holding in Central Virginia Community College v. Katz, the party most likely to prevail in this situation is A.both Vance and WSU. B.neither Vance nor WSU. C.Vance. D.WSU.

Q: Orly's debts are discharged in a liquidation bankruptcy. Pester & Recover, Inc., buys the discharged debt obligations. With respect to these debts, Pester A.can do nothing. B.can pressure Orly into paying them. C.must give Orly additional help to rebuild her life after the discharge. D.must report the debts to credit reporting agencies as "discharged."

Q: Dale's debts are discharged in a liquidation bankruptcy. With respect to Dale's prebankruptcy debt, Even Stevens Credit Reporting Agency must automatically report A.nothing. B.the debt as "discharged," except the nondischargeable debt. C.the debt as "discharged," including the nondischargeable debt. D.the debt as "unpaid."

Q: In the situation set out in either of the previous questions, the dissent in the Prestridge case would most likely hold Silverado liable for A.all checks. B.checks that were cashed less than thirty days after the statement. C.checks that were cashed more than thirty days after the statement. D.no checks.

Q: In the facts of the previous question, suppose that Thalia had had access to Rhett's checks through his carelessness. The majority in the Prestridge case would then most likely hold Silverado liable for A.all checks. B.checks that were cashed less than thirty days after the statement. C.checks that were cashed more than thirty days after the statement. D.no checks.

Q: More than thirty days after Rhett receives his account statement from Silverado Bank, he notifies the bank that Thalia forged Rhett's name on some of the checks that the bank has cashed. The majority in Prestridge v. Bank of Jena would most likely hold Silverado liable for A.all checks. B.checks that were cashed less than thirty days after the statement. C.checks that were cashed more than thirty days after the statement. D.no checks.

Q: According to the dissent in Casserlie v. Shell Oil Co., an inquiry into a seller's motive in setting prices is necessary to determine if the seller acted A.in good faith. B.with the motive of driving competitors out of business. C.with the intent of making the most profit in the least time. D.to set commercially unreasonable and discriminatory prices.

Q: According to the majority in Casserlie v. Shell Oil Co., a commercially reasonable and nondiscriminatory price is A.evidence of a seller's good faith. B.parol evidence. C.unconscionable. D.a requirement for an inquiry into the seller's motives.

Q: Fizzical Fitness, a gym, leased its facilities and equipment from Gym Gear Inc. Fizzical agreed to buy towels and other supplies only from Gym Gear at prices set by the seller at the time of delivery. Later, Fizzical filed a suit against Gym Gear, alleging that the prices were set improperly. According to the majority in Casserlie v. Shell Oil Co., an inquiry into Gym Gear's motive in setting the prices is not necessary if it acted A.in good faith. B.with the motive of driving competitors out of business. C.with the intent of making the most profit in the least time. D.to set commercially unreasonable and discriminatory prices.

Q: New York enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include dismembering or sexually assaulting the image of a human being." On appeal from a challenge by gamemakers, the state asks a federal court to enforce the statute. Based on the decisions of other federal courts in cases involving similar statutes, the court in this case is most likely to A.refuse to extend restrictions on sex-based content to violence in video games. B.expand the label's warning to include other forms of violence. C.impose market-share liability on makers of violent video games. D.replace the voluntary rating system currently in use.

Q: Iowa enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include killing and maiming the image of a human being." Gamemakers file a suit against the state to block the statute's enforcement. Based on the decision of a California court in a case involving a similar statute, the court in this case is most likely to rule that the statute A.extends restrictions on sex-based content to violence in video games. B.violates the First Amendment's guarantee of freedom of speech. C.imposes market-share liability on makers of violent video games. D.replaces the voluntary rating system currently in use.

Q: Tour Vista, an online travel company, buys blocks of rooms from Skyview Towers, a hotel in River City, at a wholesale rate. Tour Vista resells the rooms to consumers at a retail rate. In recent efforts to collect taxes from e-commerce, some cities claim that hotel occupancy taxes should be assessed and remitted directly to the cities based on A.the dire financial straits of the cities during the latest recession. B.the retail rates of the rooms. C.the states of residency of the consumers who reserve the rooms. D.the wholesale rates of the rooms.

Q: Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Hyper City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on A.hotels that sell blocks of rooms at wholesale rates. B.non-resident consumers who reserve rooms in in-state hotels. C.online travel companies. D.the dire financial straits of the cities during the latest recession.

Q: Gabe asks his cousin Francie to sacrifice her career, move her home and family, and provide services, at a lower salary than usual, to Gabe's new Farm-to-Fork Produce Company. Gabe tells Francie that she will jointly own and run the firm. Francie agrees. Later, after the firm gains the benefit of Francie's services, Gabe forces Francie out. According to the dissent in the Braddock case, these facts sufficiently allege the elements of a claim for A.damages based on quasi contract. B.recovery in fraud. C.relief from a unilateral mistake. D.none of the choices.

Q: In the Braddock case, in weighing the facts that made up the elements of the plaintiff's claim, the majority cited as a significant factor A.assurances that were not incorporated into written documents. B.the arms' length business transactions between the parties. C.the expectation of the good faith of a family member. D.the plaintiff's business and professional experience in the industry.

Q: Dani asks her cousin Cedric to sacrifice his career, move his home and family, and provide services, at a lower salary than usual, to Dani's new Commercial Shipping Company. Dani tells Cedric that he will jointly own and run the firm. Cedric agrees. Later, after the firm gains the benefit of Cedric's services, Dani forces Cedric out. According to the majority in the Braddock case, these facts sufficiently allege the elements of a claim for A.damages based on quasi contract. B.recovery in fraud. C.relief from a unilateral mistake. D.none of the choices.

Q: The truncation (shortening) requirement of the Fair and Accurate Credit Transactions Act of 2003 applies only to receipts that are "electronically printed." Eagle Motorcycle Rents accepts reservations on-site and online. On-site customers are given tangible paper receipts. Online customers are sent an online confirmation. The truncation requirement applies to A.Eagle's online confirmations only. B.Eagle's tangible paper receipts only. C.Eagle's online confirmations and tangible receipts. D.none of Eagle's confirmations or receipts.

Q: The Fair and Accurate Credit Transactions Act of 2003 prohibits merchants from printing more than the last five digits of a credit card number or the expiration date on any receipt provided to the cardholder at the point of sale. According to recent court decisions, this requirement applies to A.e-mailed receipts only. B.paper receipts and paperless receipts of all kinds. C.paper receipts only. D.Web page screen shots and paper receipts only.

Q: According to the dissent in MedImmune, Inc., v. Genentech, Inc. case, a patent licensee can challenge the validity of a licensed patent A.only after breaching the license agreement. B.only before breaching the license agreement. C.without breaching the license agreement. D.under no circumstances.

Q: O.K. Valve Company applies for a patent for a valve. Meanwhile, O.K. licenses its products, including the valve, to Petro Pumps, Inc., which uses the valve to make oil pumps. Under the terms of the license, Petro agrees to pay royalties on O.K.'s "patented" products. When a patent is granted on the valve, O.K. asks Petro to pay royalties on the sales of its pumps. Petro wants to challenge the validity of O.K.'s patent. According to the majority in MedImmune, Inc., v. Genentech, Inc. case, a patent licensee can challenge the validity of a licensed patent A.only after breaching the license agreement. B.only before breaching the license agreement. C.without breaching the license agreement. D.under no circumstances.

Q: OmniChem Corporation applies for a patent for a certain chemical compound. Meanwhile, OmniChem licenses its products, including the compound, to Pharmo, Inc., which uses the compound to make an anti-cancer prescription drug. Under the terms of the license, Pharmo agrees to pay royalties on OmniChem's "patented" products. When a patent is granted on the compound, OmniChem asks Pharmo to pay royalties on the sales of the anti-cancer drug or stop selling it. Pharmo files a challenge to the validity of OmniChem's patent. Both firms assert their claims less from an interest in profit than a belief in the "rightness" of their respective causes. This position might arguably be A.illegal. B.optimal. C.socially irresponsible. D.unethical.

Q: Leilani, a high school student, gains unauthorized access to a plagiarism service's database to which she and other students had been asked to submit their assignments. A federal court is most likely to find that this access violates A.the Computer Fraud and Abuse Act. B.the Virginia Computer Crimes Act. C.federal copyright law. D.no federal or state law.

Q: Nina, a high school teacher, requires Milo and her other students to submit their assignments to a plagiarism service to be compared to the contents of an online database of scholarly works. The assignments are also archived in the database. A federal court is most likely to find that this A.infringes the students' copyright interests. B.qualifies as "fair use" and does not infringe the students' copyrights. C.falls under the definition of "loss" in the Computer Fraud and Abuse Act. D.fits within the "damages" clause of the Virginia Computer Crimes Act.

Q: One night, Izzy discovers Joe, an intruder, in Izzy's Kwik Spot convenience store after the store is closed. Izzy shoots and kills Joe. With respect to criminal prosecution for this use of deadly force, in a state that has a stand-your-ground law, Izzy A.is presumed innocent or may be exempt from prosecution. B.must prove that he first told Joe to "Stop!" or "Stand your ground!" C.must prove that he first tried to retreat or that his life was in danger. D.must prove that Joe did not try to retreat or acted without regard for his own life.

Q: One night, Bertram discovers Clu, an intruder, in Bertram's Deli Delite store after the store is closed. Bertram shoots and kills Clu. With respect to criminal prosecution for this use of deadly force, under a duty-to-retreat law Bertram A.is presumed innocent or may be exempt from prosecution. B.must prove that he first told Clu to "Get out!" or to "Retreat!" C.must prove that he first tried to retreat or that his life was in danger. D.must prove that Clu did not try to retreat or acted without regard for his own life.

Q: Winston applies to the U.S. Patent and Trademark Office for a patent on a process that uses transactions to hedge the risk in securities (stocks and bonds) trading. The patentability of business processes is controversial because business process patent applications involve A.computer programs. B.ideas. C.machines. D.transformations of particular articles into different states or objects.

Q: Pay-to-Buy.com, Inc., applies to the U.S. Patent and Trademark Office for a patent on an online payment system. Business process patents are more likely to lead to litigation than patents or tangible inventions because business process patents often involve A.fields that provide services. B.machines. C.processes that incorporate computer programs. D.transformations of particular articles into different states or objects.

Q: Federal law requires new car labels to state fuel economy estimates. California state law proscribes deceptive advertising. Chad buys a new car from Drive-Away Sales in California. Later, Chad files a suit against the car's manufacturer, claiming that the car does not attain the fuel economy estimate and thus its maker engaged in deceptive advertising in violation of state law. In the opinion of the dissent in Paduano v. American Honda Motor Co., the court should hold that A.the federal law does not preempt Chad's state law claim. B.the federal law preempts Chad's state law claim. C.California's state law preempts the federal fuel economy law. D.the federal and state laws preempt each other.

Q: Arizona enacts a statute that directly conflicts with a federal law. Under the supremacy clause of the U.S. Constitution, A.Arizona's statute is rendered invalid. B.the federal law is rendered invalid. C.Arizona's statute and the federal law are both rendered invalid. D.Arizona's statute and the federal law apply concurrently.

Q: Federal law requires new car labels to state fuel economy estimates. California state law proscribes deceptive advertising. Angie buys a new car from Beltline Motors in California. Later, Angie files a suit against the car's manufacturer, claiming that the car does not attain the fuel economy estimate and thus its maker engaged in deceptive advertising in violation of state law. In the opinion of the majority in Paduano v. American Honda Motor Co., the court should hold that A.the federal law does not preempt Angie's state law claim. B.the federal law preempts Angie's state law claim. C.California's state law preempts the federal fuel economy law. D.the federal and state laws preempt each other.

Q: World Investment & Trading, Inc. (WIT), encourages its employees to build trust with its customers and other companies. Unfounded complaints and exaggerated charges leveled against WIT online would most likely be regarded by a court as A.an expression of fact. B.a form of speech protected by the First Amendment. C.an inappropriate online disclosure. D.libelous.

Q: Global Enterprises Corporation (GEC) engages in what some unhappy ex-employees and disgruntled consumers consider to be bad corporate behavior. These individuals post "horror stories" about GEC on rogue Web sites. By providing a forum for complaints, the potential for damage to the reputation of any corporation via the Internet has A.decreased. B.increased. C.neither decreased nor increased. D.both decreased and increased.

Q: In Smartphone Games Inc.'s suit against Thermopylae Apps Corporation, Thermopylae seeks to discover electronically stored information (ESI) that should be in Smartphone's possession. If Smartphone did not preserve the ESI despite a clear duty to do so, the company should most likely A.ask the court to sanction Thermopylae for an unreasonable request. B.reconstruct the ESI to the best of its ability. C.refuse to provide the ESI on the ground that it is confidential. D.settle the dispute.

Q: Business Credit Company files a suit against City Developers, Inc., and seeks, as part of discovery, certain electronic documents in City Developers's possession. City Developers did not preserve the requested data-e-mail messages among employees. The court is not likely to sanction City Developers if A.the data was not saved because there was no reasonable anticipation of litigation. B.the e-documents were destroyed when the suit was filed. C.the e-mail messages were trashed when the discovery request was made. D.the e-mail system was wiped clean to avoid revealing incriminating evidence.

Q: Arnie posts online a note that "I have good pix of child & me" with a link to several pictures of minors engaged in sex. Arnie is charged with violating a statute that makes it a crime to distribute material intended to make others believe it is child pornography. He argues that the statute is unconstitutional. The court is most likely to hold that the statute is A.unconstitutional because it criminalizes speech. B.unconstitutional because it is overbroad. C.unconstitutional because it is impermissibly vague. D.valid because it does not prohibit a substantial amount of protected speech.

Q: Congress intends to enact a law to criminalize the distribution of illegal child pornography on the Internet. Most likely to be held constitutional is a statute that prohibits A.offers to provide, and requests to obtain, child pornography. B.the possession of virtual child pornography. C.the possession of real and virtual child pornography. D.a substantial amount of protected speech-especially pornography.

Q: In State X, persons must be at least eighteen years old before they can purchase alcoholic beverages. The state also has passed a law requiring that persons who prepare and serve liquor in the form of drinks in commercial establishments be licensed. The only requirement for obtaining a yearly license is that the person be at least eighteen years old. Moffitt, aged thirty-five, is hired as a bartender for Lone Star Restaurant. Bekins, an alumnus of State X University, brings twenty of his friends to the restaurant to celebrate State X U's football victory. Bekins orders four rounds of drinks, and the bar bill exceeds $200. When Bekins learns that Moffitt has failed to renew his bartender's license, Bekins refuses to pay, claiming the contract is unenforceable. Is Bekins correct? Explain.

Q: Chris promises Dina $40,000 if she graduates from Eagle College. Dina enrolls in Eagle, attends full-time for four years, and graduates. When Dina asks Chris for $40,000, Chris says, "I don't remember promising you $40,000. But if there was a promise, it's not enforceable, because we didn't bargain for it. And even if there was a promise that would otherwise be enforceable, I revoke it now." Can Dina enforce Chris's "promise"? Why or why not?

Q: Through fraudulent means, Fred induces Gail to sign a contract to build resort cabins on land that Fred does not own. Gail performs, but Fred does not pay. When Gail learns the truth, she may A.do nothing with respect to the contract. B.recover for the performance or its value. C.recover for the performance only. D.recover the value of the performance only.

Q: Jock and Kim decide to wager in violation of a state statute on the outcome of a football game. They each deposit money with Iverson, who agrees to pay the winner of the bet. Before the game begins, Kim tells Iverson that she changed her mind about the bet. Kim can recover A.the amount of her bet and the amount of Jock's bet. B.the amount of her bet minus Iverson's expenses. C.the amount of her bet only. D.nothing.

Q: Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000. Cross-Country delivers the crates, but Baldwin does not pay. Cross-Country learns that the crates contained stolen goods. Cross-Country can A.do nothing with respect to the contract. B.recover $5,000 from Baldwin. C.recover the goods but not the $5,000 from Baldwin. D.recover the goods or the $5,000 from Baldwin.

Q: Boz runs an illegal gambling business and pays Colin, a police officer, not to interfere. The payments are discovered. Boz and Colin are sent to prison. With respect to the amount of the payments, Boz can recover A.all of it. B.none of it. C.only as much as Colin has not spent. D.only as much as Colin has spent.

Q: Odell owns Payroll Company, a bookkeeping service losing market share to Quik Work, Inc. Odell pays Remy $5,000 to steal a list of Quik's clients, to whom Odell will aggressively market Payroll's services. This deal is A.enforceable. B.void. C.voidable at the option of either party. D.voidable at the option of the party having less bargaining power.

Q: A contract between Donald and Chloe to lease commercial property contains an exculpatory clause. This clause is A.enforceable as a matter of public policy. B.enforceable if either party is in a business important to the public. C.enforceable if an event occurs to which the clause applies. D.generally unenforceable.

Q: U-Can-Own-It Corporation sells appliances to less educated consumers, including Vi, on installment plans. U-Can-Own-It files a suit against Vi when she stops making payments. Vi claims that the deal is unconscionable. The court will most likely consider A.the geographic area of the relevant market. B.the parties' relative bargaining power. C.the quality of related products in the general market. D.the relation of this deal to those of other customers.

Q: Jon agrees to sell his K9 Sports Equipment store to Lacy. As part of the sale, Jon promises never to open a similar, competing store anywhere. Jon's promise is most likely A.invalid because it is part of a sale of an ongoing business. B.invalid because of the unreasonable terms of area and time. C.valid because it is part of a sale of an ongoing business. D.valid because Jon and Lacy apparently have the capacity to contract.

Q: Neil represents himself as a contractor in Ohio, but he is not licensed in that state. A contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is A.enforceable only if Pam does not object after learning of Neil's status. B.enforceable only if Pam knows that Neil is unlicensed. C.enforceable only if the outcome is successful. D.not enforceable.

Q: Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the state's maximum. First State has A.calculated the optimum rate that the market will bear. B.engaged in a restraint of trade. C.underestimated the risk of the loan's nonpayment. D.violated the usury laws.

Q: Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is A.voidable if Fay has a lucid interval at the time of contracting. B.voidable if Fay lacks the capacity to comprehend the consequences. C.voidable if the other party does not realize that Fay is incompetent. D.unavoidable.

Q: A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian. Later, without Inez's knowledge, Huck signs a contract to sell his farm to Kyle for its real market value. The contract is A.enforceable if Huck comprehended the consequences. B.enforceable if Huck knew the market value of the farm. C.enforceable if Huck was the record owner of the farm. D.void.

Q: Orin enters into a contract with Natalie. Later, Orin is adjudged mentally incompetent and Moseby is appointed Orin's guardian. Lila, Orin's daughter, attempts to void Orin's contract with Natalie on the ground of Orin's incompetency. The contract is A.enforceable if Orin does not attempt to disaffirm it. B.enforceable if Natalie is also incompetent. C.enforceable if Moseby knew of the contract when he was appointed. D.void.

Q: Intoxicated, Clio agrees to sell her restaurant, Diners Caf, to Evan for half of its real market value. This deal is most likely void if A.Clio appeared intoxicated to Evan. B.Clio disaffirms the contract after becoming sober. C.Clio was so intoxicated as to have no memory of the deal. D.Evan fraudulently induced Clio to become intoxicated.

Q: Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is A.enforceable. B.not enforceable because contracting parties can change their minds. C.not enforceable because the contract clearly favors Wander Talk. D.not enforceable because Uri was intoxicated when he agreed to it.

Q: Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is A.a disaffirmance. B.an emancipation. C.a ratification. D.a restitution.

Q: Elmo, a minor, misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos. Ordinarily, Elmo can disaffirm the contractA.only if he can prove that Fine New Autos did not know his TRUE age.B.only if he can prove that Fine New Autos knew his TRUE age.C.under any circumstances.D.under no circumstances.

Q: Cray returns a digital music player that he bought from Discount City, which refunds the price. Their exchange involves A.an emancipation. B.a ratification. C.restitution. D.severability.