Law 4 - The Legal Environment of Business » Spring 2020 » Final Exam

Need help with your exam preparation?

Question #1
The Fourth Amendment prevents the government from taking your property without giving you notice and a hearing.
A.   TRUE
B.   FALSE
Question #2
Negotiation is a form of ADR that is similar to having your case heard in a formal court setting.
A.   TRUE
B.   FALSE
Question #3
Your neighbor has a very rare lizard that they imported back to their house from their travels along the Amazon River.  Most of the time, the lizard poses no danger.  However, during certain seasons, the skin of the lizard becomes poisonous if humans touch it.  Because of this, your neighbor takes extreme caution in keeping the lizard locked up during these dangerous times.  Your city has banned having poisonous lizards as pets because they are extremely dangerous and rare.   One day as you lay taking a nap in your backyard, something brushes along your arm. You look up and realize it is the lizard.  Your arm breaks out into a rash.  Thankfully there were no life-threatening injuries, but you did have to miss a few days of work and had multiple doctor visits.  If you sue your neighbor, it is likely that you will prevail in your lawsuit even if you cannot show that your neighbor failed to act reasonably in looking after the lizard.
A.   FALSE
B.   TRUE
Question #4
Michael hired a lawyer to help him pursue a breach of contract claim. The lawyer’s fee was $2,500, which is well over $500.  This contract is governed by the UCC.
A.   FALSE
B.   TRUE
Question #5
If you get into a car accident in Maryland, the lawsuit for the accident can take place in Maryland even if you are a resident of New York.
A.   FALSE
B.   TRUE
Question #6
The Shareholder Model is concerned with maximizing happiness.
A.   FALSE
B.   TRUE
Question #7
The Supreme Court will automatically hear your case as long as you appeal it from the Circuit court and not the District Court.
A.   FALSE
B.   TRUE
Question #8
If someone punches you, you have the right to sue them for criminal battery and put them in jail.
A.   TRUE
B.   FALSE
Question #9
Fruit of the poisonous tree doctrine applies to the First Amendment and says that if the government infringes on one area of your speech, then they have also violated other Constitutional rights.
A.   TRUE
B.   FALSE
Question #10
If Michael breaches a contract with Sally intentionally, Sally would be able to sue Michael for breach of contract and obtain punitive damages.
A.   FALSE
B.   TRUE
Question #11
The UCC only governs contracts for the sale of goods over $500.
A.   TRUE
B.   FALSE
Question #12
Parol evidence refers to anything (other than the written contract itself) that was said, done, or written before the parties signed the contract.
A.   TRUE
B.   FALSE
Question #13
If Johnny tells you to pat him on the back, he has consented for you to perform any tort you like against him.
A.   FALSE
B.   TRUE
Question #14
In order for a federal court to have jurisdiction, there must be a federal question involved or diversity of citizenship and $75,000 in controversy.
A.   TRUE
B.   FALSE
Question #15
Roger parked his car at a garage that has a large sign at the entrance saying, "This garage is not liable for items stolen from a car." This type of notice is referred to as an exculpatory clause.
A.   TRUE
B.   FALSE
Question #16
Failure to act with reasonable care could subject you to a claim of strict liability if your lack of reasonable care injures someone.
A.   TRUE
B.   FALSE
Question #17
Jim told his manager, Lana, that a co-worker, Diane, had been in prison for theft. Lana fired Diane on the spot.  However, Diane had never been to prison before.
A.   Jim is not liable to Diane for defamation.
B.   Jim is liable to Diane for defamation unless he can show a legitimate reason for having to tell Lana about Diane's prison history.
C.   Jim is liable to Diane for defamation only if she is a public figure.
D.   Jim is liable to Diane for defamation.
Question #18
Theft is to the criminal law as ____ is to the civil law.
A.   trespass
B.   burglary
C.   stealing
D.   conversion
Question #19
Bernie owes a disputed amount to Wilde’s Heating & Air Conditioning. Which of the following is true?
A.   If the parties agree to settle for less than the full amount, there is no consideration to make the agreement enforceable.
B.   If Wilde’s agrees to accept less than the full amount, the agreement is only binding if it is in writing and signed by Bernie.
C.   The disputed amount is also known as an unliquidated amount.
D.   If Wilde’s agrees to accept less than the full amount as full payment, the agreement is not binding.
Question #20
You performed a particular action while taking all the precautions that any reasonable person would take. Unfortunately, someone was injured. If you are still held liable for the injuries despite all of your reasonable actions and precaution, it is likely due to
A.   strict liability
B.   contributory negligence
C.   knowledge to a substantial certainty
D.   Res ipsa loquitur
Question #21
Michael tells Sarah, “I’ll sell you my Lamborghini for $300,000.” Michael then extends his hand which is holding the keys to the car. Sarah nods her head in a "yes: motion, grabs the keys, unlocks the door and hops in the driver seat. Which is true:
A.   Michael made offer and Sarah accepted the offer.
B.   Michael made an offer but Sarah did not accept because of the Mirror Image Rule.
C.   Michael made an invitation to bargain but not an offer.
D.   The offer is not valid because it was not accepted in writing.
Question #22
Which of the following contracts requires a writing in order to be enforceable?
A.   Tobias Department Store contracted to sell Jenny a $400 doll.
B.   Jeremy, a full-time student, sold his snow blower to a friend for $450.
C.   A toy manufacturer contracted to sell dolls valued at $10,000 to a department store.
D.   A $5,000 deposit paid to a licensed contractor for two weeks’ worth of home renovations.
Question #23
"I'll sell you my car if I decide to sell it" is an example of:
A.   a conditional offer.
B.   an unliquidated offer.
C.   a unilateral contract.
D.   an illusory promise.
Question #24
Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter's boss told him, "I'm really grateful for the year that you have worked here. I’ll give you a bonus of $1,000 in your last paycheck if you cover Johnny’s shift for me and stay a little later tonight." Walter did cover Johnny’s shift even though he was not originally scheduled to do so. When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be:
A.   Walter will lose, as he gave no consideration.
B.   Walter will win, as no consideration is required to modify an employment contract.
C.   Walter will win, as the promise is enforceable.
D.   Walter will lose unless the promise was in writing.
Question #25
Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she did not order. Renita should:
A.   call the seller and object to the confirmation as soon as she gets back from her two-week vacation.
B.   object to the confirmation in writing within 10 days.
C.   return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods.
D.   ignore the confirmation
Question #26
Jackie hires Charles to lay new carpet in her bedroom. Charles does such a bad job, that the only way to fix the carpet is to start over and relay the carpet. Which of the following best describes this situation?
A.   This is a material breach. Jackie owes nothing to Charles.
B.   This is substantial performance because Charles actually laid all of the carpet. Jackie must still pay something to Charles.
C.   This is a material breach. Jackie must still pay something to Charles.
D.   This is substantial performance. Jackie owes nothing to Charles.
Question #27
Stare Decisis means that we will follow the laws or decisions that are created by:
A.   Judicial Branch
B.   Executive Branch
C.   Administrative Agencies
D.   Legislative Branch
Question #28
Which of the following is NOT an element to a valid contract?
A.   Consideration
B.   Performance
C.   Legality
D.   Offer
Question #29
A minor cannot disaffirm a contract:
A.   if they have a co-signer
B.   if they are the age of minority
C.   If they promise that they won’t disaffirm.
D.   when it provides them with necessities.
Question #30
Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?
A.   Jane can still accept the offer. She will be entitled to the insurance proceeds.
B.   Jane can still accept the offer and John must find a 1955 Thunderbird to sell.
C.   Dick can still revoke his offer so long as he does so before Jane accepts.
D.   The offer is terminated and Jane can no longer accept.
Question #31
A full integration means:
A.   the written agreement is a full and final expression of the parties’ agreement.
B.   the contract has been fully performed by both parties.
C.   the Statute of Frauds applies.
D.   the contract was a full and final oral explanation of the parties’ agreement.
Question #32
If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is:
A.   enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.
B.   enforceable because the agreement accomplishes Ben's goal of keeping Becky from drinking.
C.   not enforceable because Becky does not have a legal right to drink alcohol.
D.   not enforceable because Becky is a minor and could disaffirm the contract.
Question #33
Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?
A.   Mary's counteroffer terminates Carl's offer of $1,500.
B.   Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection?
C.   If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.
D.   Mary's offer is a firm offer. Carl has an exclusive right to consider her offer for a reasonable period of time.
Question #34
Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?
A.   Fred would win, as family members cannot sue each other for breach of an oral promise.
B.   Patty would win, as a contract was formed when Fred promised to pay her the support.
C.   Fred would win, as he did not ask Patty to quit her job.
D.   Patty may win under the doctrine of promissory estoppel.
Question #35
Shelly offers to sell Jane goods that Shelly, but not Jane, knows are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If knowledge is not an element of this crime, and Shelly sues Jane for breach of contract, what is the probable result?
A.   The law would not enforce this contract
B.   Jane would win as this is a voidable contract.
C.   The law would enforce this valid, enforceable contract.
D.   Shelly would win as this is a unilateral contract.
Question #36
The advantages of trademark registration include:
A.   it allows the trademark owner to use the TM symbol to put others on notice of the protection
B.   the mark is valid nationally
C.   Potential damages are higher
D.   All of the above
Question #37
Ollie leased a building in Old Town. Ollie installed a washer and dryer unit and a new furnace in the basement of the building with new duct work throughout the building. Upon expiration of the lease, Ollie intends to remove the washer and dryer, but not the furnace. The washer and dryer can easily be removed without harming anything. Removal of the furnace, however, will damage the building. Are the washer, dryer, and furnace fixtures?
A.   The washer and dryer are fixtures, but the furnace is not.
B.   The furnace is a fixture, but the washer and dryer are not.
C.   The furnace and the washer are fixtures, but the dryer is not.
D.   The washer, dryer, and furnace are all fixtures.
Question #38
Beth owned a United States flag. She had previously loaned the flag to Ross, a lawyer, so that he could display the flag on the wall behind his office desk. One day while visiting Ross in his office and admiring the flag, Beth said to Ross, "You are so fond of that flag, I would like you to have it!" Ross responded with a gracious "thank you." In this situation:
A.   Beth has not made a valid, binding gift of the flag because gifts are never binding and can always be revoked by the donor.
B.   Beth has made a valid, binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag.
C.   Beth has not made a valid, binding gift of the flag because the donor must deliver the property to the donee, which was not done here.
D.   Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for Ross's legal services.
Question #39
James and his band played a very familiar song. However, they made up different words for the song that were intended to be funny and satirical. James's version of the popular song with different words is known as:
A.   a link
B.   a mockarama
C.   a knock off
D.   a parody
Question #40
Which of the following words would have the best chance to be registered as a trademark for peanut butter?
A.   Low-fat
B.   Chunky
C.   Crunchy
D.   yStar

Need help with your exam preparation?