Business law quiz

QUESTION 1

1. _____ refers to the power of a court, at the state or federal level, to hear a case.
   

   		A. Judicial activism
   		B. Res judicata
   		C. Judicial restraint
   		D. Voir dire
   		E. Jurisdiction

3 points

QUESTION 2

1. 36. When a printed form contract has additional handwritten terms, courts will
   

   		A. interpret handwritten terms to control printed ones.
   		B. replace the handwritten terms with typed terms.
   		C. disregard both printed terms and handwritten ones.
   		D. remove the handwritten terms.
   		E. remove the printed terms.

3 points

QUESTION 3

1. For a plaintiff to establish that he or she has standing to sue, the plaintiff must allege __________.
   

   		A. a lack of subject matter jurisdiction of the court
   		B. a personal stake in the resolution of the controversy
   		C. at least $100,000 in damages as a result of the controversy
   		D. garnishment by the state in which the lawsuit is filed
   		E. extradition by the police of the state in which he or she resides

3 points

QUESTION 4

1. The typical long-arm statute allows a court to obtain jurisdiction over a defendant even though the process is served beyond its borders if the defendant __________.
   

   		A. files a counterclaim against a plaintiff
   		B. owns property within the state that is the subject matter of the lawsuit
   		C. has not obtained a writ of certiorari from the state in which he or she currently resides
   		D. has committed a tort outside the state in which the court obtaining jurisdiction is located
   		E. qualifies for res judicata

3 points

QUESTION 5

1. Generally, international law is classified as ______.

   		A. public international law or private international law
   		B. criminal international law or civil international law
   		C. international common law or international tort law
   		D. international tort law or international contract law
   		E. international business law or international property law

3 points

QUESTION 6

1. An expropriation is also considered to be a confiscation of property when

   		A. the owner of property is not fairly compensated.
   		B. a property owned by a foreign company is seized by the U.S. government.
   		C. a property is purchased through corrupt payments.
   		D. a property is seized under the Racketeer Influenced and Corrupt Organizations Act.
   		E. the owner of the property is charged under the Foreign Corrupt Practices Act.

3 points

QUESTION 7

1. Under the ______, courts may be called upon to decide if a state law is invalid because it conflicts with a federal law.

   		A. minimum rationality approach
   		B. exclusion clause
   		C. strict scrutiny approach
   		D. supremacy clause
   		E. contract clause

3 points

QUESTION 8

1. Kate has entered into a binding agreement to sell a house to Michael. When Michael shows up to complete the deal as per the agreement, Kate refuses to go through with the transaction. Which of the following best categorizes Kate and Michael’s issue in the context of classifications of laws?
   

   		A. This is a public law issue regarding substantive law.
   		B. This is a private law issue regarding contract law.
   		C. This is a public law issue regarding property law.
   		D. This is a private law issue regarding criminal law.
   		E. This is a public law issue regarding tort law.

3 points

QUESTION 9

1. Which law forbids owners from monopolizing classes of resources and sets rules for how businesses can compete to acquire ownership in new resources?
   

   		A. Regulatory law
   		B. Tort law
   		C. Antitrust law
   		D. Antidiscrimination law
   		E. Securities law

3 points

QUESTION 10

1. Smith Inc. sends a letter dated August 1 to Cervaille Stores, offering to sell 20 table lamps to Cervaille Stores at $80 each. Cervaille Stores provides a consideration of $160 to Smith Inc. to keep the offer open for at least two weeks. In the second week of August, Smith Inc. receives an offer from Shine Retailers Inc. to purchase the table lamps at a price of $85 each. Can Smith withdraw its offer made to Cervaille Stores?
   

   		A. Smith cannot withdraw its offer as the agreement is in the form of an option.
   		B. Smith cannot withdraw its offer since the doctrine of promissory estoppel is applicable.
   		C. Smith can withdraw its offer as the offer was simply an invitation to negotiate.
   		D. Smith cannot withdraw its offer as this is an example of promissory estoppel.
   		E. Smith can withdraw its offer as the consideration makes it enforceable as a property transfer.

3 points

QUESTION 11

1. Which of the following statements is one of the criticisms of the jury system in the United States?
   

   		A. Juries only apply substantive rules of law to decide cases.
   		B. Juries cannot be used in criminal cases.
   		C. Jurors develop voir dire to elicit attitudes and experiences.
   		D. Jurors vote their prejudices.
   		E. Juries cannot be used in civil cases when the amount in controversy is below $2,000.

3 points

QUESTION 12

1. In the context of contracts formed by promises, which of the following is an agreement containing mutual promises?
   

   		A. unilateral contract
   		B. quasi-contract
   		C. express-in-fact contract
   		D. bilateral contract
   		E. implied-in-fact contract

3 points

QUESTION 13

1. Salim has entered into a contract with Jenna to buy her land for $50,000. Salim has paid the amount in full. However, Jenna has not transferred the land to Salim. Salim decides to sue Jenna to request a court order to compel Jenna to transfer the land as per the contract. Which of the following remedies is the court most likely to enforce in this case?
   

   		A. rescission
   		B. consequential damages
   		C. substantial performance
   		D. liquidated damages
   		E. specific performance

3 points

QUESTION 14

1. In the context of implied warranties as defined by the Uniform Commercial Code (UCC), which of the following refers to the merchantability of goods?
   

   		A. The goods will be of fair average quality and conform to any labeling.
   		B. The goods will be suitable for the buyer’s purpose if the seller is aware of it.
   		C. The goods will be delivered within two weeks of order.
   		D. The goods will be worth at least $500 or more.
   		E. The goods will be sold within states and not across states.

3 points

QUESTION 15

1. There is a current controversy in the National Football League (NFL) as to whether players have the right to kneel during the playing of the National Anthem. If the NFL were to adopt a rule that requires players to stand during the National Anthem, some argue that this would abridge a player’s right to freedom of speech, others say it wouldn’t. Based on the constitutional law you have studied, please analyze this situation and give your opinion as to whether this would violate a player’s right to freedom of speech.

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12.5 points

QUESTION 16

1. Which of the following statements is true of the regulation of foreign commerce under the commerce clause?

   		A. Under no circumstances can the federal government prohibit foreign commerce entirely.
   		B. The power to regulate foreign commerce is total and vested exclusively in the federal government.
   		C. Attempts by local governments to indirectly regulate foreign commerce are constitutional.
   		D. A state cannot regulate activities that relate to foreign commerce even if such activities are conducted entirely within the state’s boundaries.
   		E. The federal power to regulate foreign commerce is relative to the power exercised by the state and local governments.

3 points

QUESTION 17

1. Brandie is facing financial difficulties. Warren wants to help Brandie, and tells her that he will loan her $1,000. Later, Warren refuses to loan the promised money to Brandie. In the context of this scenario, which of the following statements is true?
   

   		A. Warren must loan the money to Brandie because a promise is made and consideration has nothing to do with the agreement.
   		B. Warren need not loan the money to Brandie because Brandie did not promise anything in return.
   		C. Warren must loan the money to Brandie because he has entered into an implied-in-fact contract by promising her the money.
   		D. Warren does not have to loan the money to Brandie because of the mirror image rule.
   		E. Warren must loan the money to Brandie because he has entered into an executory contract by promising her the money.

3 points

QUESTION 18

1. Which of the following statements is true of the World Trade Organization?

   		A. It is administered by the International Court of Justice.
   		B. It is authorized by the Security Council.
   		C. It has the authority to regulate world trade in any manner it desires.
   		D. It restricts tariffs on textiles, apparel, and forest products.
   		E. It funds the Interational Monetary Fund

3 points

QUESTION 19

1. Which of the following statements is true in cases where only one party drafts a contract that contains terms that appear vague and ambiguous to the other party?
   

   		A. The court will give the terms the meaning as per trade usage.
   		B. The court will reject the non-drafting party’s attempt to reinterpret the terms after the contract has been signed.
   		C. The court will declare the drafting party’s behavior as a tort due to intentional ambiguity of terms.
   		D. The court will interpret the terms as they mean in the common language.
   		E. The court will interpret the ambiguous and vague terms against the party that drafts them.

3 points

QUESTION 20

1. Rachel contracted with Steven to cater her wedding for $20,000. Steven failed to deliver on the day of the wedding, which forced Rachel to order food from a restaurant that cost her $30,000. What amount in compensatory damages does Steven owe Rachel?
   

   		A. $30,000
   		B. $20,000
   		C. $10,000
   		D. $50,000
   		E. None.

3 points

QUESTION 21

1. 38. When a defendant, upon being served, wants to sue a plaintiff, the defendant becomes a _____.
   

   		A. plaintiff
   		B. counterplaintiff
   		C. counterdefendant
   		D. appellant
   		E. appellee

3 points

QUESTION 22

1. Zainab wants to sell her house to Tiffany for $300,000. Tiffany responds stating that she will be glad to buy the house at $300,000 and asks if the price includes the furniture. Zainab says that the furniture is not included. Tiffany agrees to pay $300,000, but Zainab demands $350,000, stating that Tiffany’s counteroffer terminates the earlier offer. Tiffany disagrees. Discuss the merits of the position of Tiffany and Zainab. Who do you think will prevail if this were to go to court?

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12.5 points

QUESTION 23

1. Which of the following statements is true of the role of jurors in U.S. courts?
   

   		A. They determine the rules of law relevant to a case.
   		B. They present the evidence and arguments to the judges.
   		C. They apply the law to the facts of a case.
   		D. They apply constitutional limitations and guarantees.
   		E. They determine the facts from conflicting evidence.

3 points

QUESTION 24

1. Madison promises Grace $10 if Grace collects her dry cleaning for her. This is an example of a(n) ______ contract.
   

   		A. bilateral
   		B. unilateral
   		C. voidable
   		D. void
   		E. unenforceable

3 points

QUESTION 25

1. Jessica hires ChromaLite Builders Corp. to construct a house. The contract specifies that grade A+ carpeting is to be installed on the entire second floor. ChromaLite Builders accidentally installs grade A carpeting instead. Few people, except for carpeting experts, can tell the difference. Jessica, however, refuses to pay for the construction citing that ChromaLite Builders has breached the contract. Which of the following statements is true in this scenario?
   

   		A. The courts are likely to consider ChromaLite Builders’s performance as complete performance, and Jessica will have to pay the full amount to ChromaLite Builders.
   		B. Jessica can claim a breach of contract and refuse to pay ChromaLite Builders for the construction of the house.
   		C. The courts are likely to consider ChromaLite Builders’s performance as a substantial performance, and Jessica would be entitled to monetary damages.
   		D. Jessica has materially breached the contract by refusing to pay ChromaLite Builders; hence, she cannot sue ChromaLite Builders for the use of low-grade carpeting.
   		E. The courts are likely to declare that ChromaLite Builders has materially breached the contract and will ask Jessica to pay exactly half the cost originally mentioned in the contract.

3 points

QUESTION 26

1. In the context of property, contract law__________.
   

   		A. enables an owner to exchange resources, especially at a future date
   		B. compensates owners whose resources are wrongfully harmed by the actions of others
   		C. punishes those who harm an owner’s resources in particular ways
   		D. identifies how individuals can own and use private resources in groups
   		E. protects ownership and sets limits on private resource use

3 points

QUESTION 27

1. A municipality zoning ordinance attempts to regulate the placement of satellite dish antennas in residential areas by specifying the size and location requirements. The Supreme Court rules that the zoning ordinance is unconstitutional as it violates the Federal Communications Commission Regulation law. In this case, the ruling of the Supreme Court illustrates the concept of ______.

   		A. preemption
   		B. the contract clause
   		C. the exclusion clause
   		D. minimum rationality
   		E. defamation