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LAW 421 Final Exam

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1. When a buyer rejects nonconforming goods and purchases the appropriate goods from a different seller, this is an example of which of the following:

  • Specific Performance
  • Revoking Acceptance
  • Lawsuit for Money Damages
  • Cover


2. Which of the following would be considered intangible property?

  • Hydrocarbons
  • Pharmaceuticals
  • A right of ownership or possession
  • An apartment


3. Upon her return home from work, Maria discovered that her lawn has been mowed and trimmed. An hour later, a male stranger comes to her door for payment for the lawn work. Maria refuses any payment because she had not hired him to do the work. In these circumstances

  • Maria would not have to pay anything.
  • the man could sue Maria for unjust enrichment.
  • Maria would have to pay whatever a court finds to be "fair."
  • the man could sue Maria for breach of an implied, unilateral contract.


4. The power of preemption is derived from

  • the Supremacy Clause.
  • the power of judicial review.
  • the Commerce Clause.
  • the Necessary and Proper Clause.


5. Two merchant companies have entered into a contract for the sale of goods.  They have had no prior dealings among themselves that may establish a course of conduct.  The UCC will provide "gap fillers" to supply missing terms unless

  • they have failed to specify the price of the goods to be delivered.
  • they have failed to specify the quality or grade of the goods to be delivered.
  • they have failed to specify when payment for the goods is to be made.
  • they have failed to specify where delivery of the goods is to be made.


6. "What if everyone took these same actions?" is a question sometimes called the

  • morality approach.
  • utilitarian approach.
  • functionality approach.
  • universalization approach.


7. Jurisprudence is defined as

  • the science and philosophy of law
  • the duties and obligations owed by a citizen
  • the enactment of laws by a government body
  • adjudication of law suits


8. Which of the following ADR methods results in a decision rendered by the hearing officer?

  • Mediation
  • Negotiation
  • Third-party evaluation
  • Arbitration


9. The principle challenge faced by international courts include

  • ​obtaining universal recognition and participation in its processes by the U.N. and W.T.O.
  • articulating universally applicable rules of law that reflect multiple legal systems faithfully.
  • enforcing it's judgments on sovereign nations.
  • finding judges skilled in international law.


10. The following is required for disclaiming a warranty:

  • Common law authority
  • Conspicuous language in the sales contract itself
  • Writing, posted in a public space and incorporated by reference in the contract
  • The word "merchantability" need not be included, if a warranty of merchantability is to be disclaimed


11. The term cybersquatting means

  • use of mechanical devices(s) or malicious software to deny service to a company's website.
  • hacking into a company's website to insert a virus (or Trojan horse) designed to steal information as the site continues in operation.
  • hacking into a company's website to install a virus designed to cause the company's website to operate extremely slowly.
  • registering multiple domain names using names from famous trademarks with an intent to sell them to the companies owning the famous marks at inflated prices.


12. The UCC will permit an incomplete or slightly ambiguous contract to be enforced using which of the following criteria?

  • Past commercial conduct
  • Correspondence or oral exchanges between the competing parties
  • Insertion of any terms judicially determined to be necessary to establish fairness
  • Projected industry standards or norms


13. Ben is the manager of a branch of a large bank. He has regularly taken money from customer's accounts for his own use and falsified the bank's records to "cover" his actions. Ben is guilty of

  • engaging in a Ponzi scheme.
  • racketeering.
  • conspiracy.
  • embezzlement.


14. When an offer can only be accepted by performance of the person to whom it is made, the form of contract involved is

  • unilateral contract.
  • bilateral contract.
  • quasi contract.
  • implied contract.


15. The utilitarian approach to moral philosophy was founded by whom?

  • Immanuel Kant
  • Cicero
  • Kenneth Lay
  • Jeremy Bentham


16. With regard to the legal element of consideration in a sales contract, the UCC differs from the common law in that

  • consideration is not required in sales contracts.
  • consideration in a sales contract may be modified provided that adequate additional consideration is given for that modification.
  • the consideration exchanged must be judicially determined to be adequate.
  • consideration in a sales contract may be modified without additional consideration under certain circumstances.


17. Joan is the CFO of Para Corp. and is a year from retirement. In order to guarantee herself a substantial bonus and to boost her retirement benefits, she prepares and intentionally certifies as "true and correct" false financial reports. She further takes steps to assure that the financial report are not reviewed through the normal system of internal controls maintained by Para Corp. Under the provisions of the Sarbanes-Oxley Act (2002), if her fraud only involves her, what criminal penalties are possible for Joan?

  • $2 million in fines and up to 12 years in prison
  • $1 million in fines and up to 10 years in prison
  • $5 million in fines and up to 15 years in prison
  • $10 million in fines and up to 20 years in prison


18. The distinctive color(s) or shape of an item is an example of

  • patent.
  • trade dress.
  • trademark.
  • copyright.


19. Under the U.S. legal system, subject to some exceptions, fees and certain costs of litigation

  • are entirely paid by the prevailing party or parties, as the court may determine.
  • are entirely paid by the losing party or parties, as the court may determine.
  • are paid by each side paying its own legal fees and costs.
  • are aggregated by the court and allocated among the parties by the court based on its determination of "fairness."


20. Which of the following is rarely awarded in contracts cases?

  • Liquidated damages
  • Punitive damages
  • Compensatory damages
  • Consequential damages


21. Which of the following is a defense to a claim of breach of contract?

  • Insufficient operating capital
  • Accord and Satisfaction
  • The bonding company on the Performance Bond denied the claim
  • Insurance coverage is sufficient to cover all contingencies


22. The three stripes on Adidas clothing represents a

  • trade dress.
  • trademark.
  • patent.
  • trade secret.


23. Which of the following is classified as an equitable remedy?

  • Consequential damages
  • Liquidated damages
  • Reformation
  • Restitution


24. Harry sees a semi-automatic rifle that he likes in a gun shop’s window. The price asked for it is $2,500. Harry signs a written contract promising to pay the $2,500 on Friday, taking possession of the rifle when payment is made. On Thursday, a law becomes effective making the ownership, sale, or possession of such a semi-automatic rifle illegal. The contract between Harry and the shop

  • automatically terminates due to impracticability.
  • is enforceable and not affected by the new law because it was entered into before the law took effect.
  • automatically terminates due to impossibility.
  • automatically terminates due to frustration of purpose.


25. The Digital Millennium Copyright Act (1998) provides

  • that manufacturers of CD-Writers were required to pay 2% of their sales into a fund to be distributed to copyright holders because the CD-Writers could easily copy music and other copyrighted works.
  • for removal of restrictions on analog recorders and camcorders lacking antipiracy features.
  • those who sell or manufacture vulnerable software products or services will be subject to civil and criminal penalties.
  • that ISPs are not liable for copyright infringement by users of their service if the ISP lacks knowledge of the infringement.


26. Generally, torts law is governed by

  • state common law.
  • constitutional law.
  • federal statutory law.
  • state statutory law.


27. The Sarbanes-Oxley Act (2002) imposed stricter regulations on how corporations do business in the following area(s):

  • corporate governance.
  • auditing.
  • financial reporting.
  • corporate tax inversions.


28. Stan is an investment manager. He has received money from various investors giving them a promise of very high returns. The invested money is not supplying enough return to enable payment of the rate promised, so Stan has started using new investors' money to pay older investors at the promised rates. By advertising and by word of mouth, people are anxious to invest with Stan because of the money being paid, and with the influx of new investors, he is able to continue operating. Stan is

  • engaging in a conspiracy to defraud.
  • racketeering.
  • operating an insider trading operation.
  • operating a Ponzi scheme.


29. The state of Kansas has enacted a law requiring all commercial trucks driving on Kansas roads to have a special type of mud flaps installed. These mud flaps have been said to make driving in the rain significantly safer, although absolutely conclusive data is not available. Any truck entering Kansas without these installed will be subject to a significant fine and substantial delay. The cost for purchase and installation of these flaps is high, at around $5,000 per truck. This Kansas law

  • is valid exercise of the state's police powers in service of the safety of its citizens.
  • has a trivial effect on interstate commerce.​
  • is an undue burden on interstate commerce.
  • is an example of exercise of valid state authority over intrastate commerce.


30. Assumption of risk is a defense to

  • defamation.
  • negligence.
  • battery.
  • conversion.

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