Business Law - Practice Test 1

Question 1 of 82

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Tim and Steve are roughhousing in Tim's parent's front yard when Steve intentionally pushes Tim onto the neighbor's property.

Select one of the following:

  • Tim is a trespasser.

  • Steve is a trespasser.

  • Tim and Steve are both trespassers.

  • None of the above

Question 2 of 82

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The Hometown News snapped a picture of Time, a local teenager, as he was sleeping under a tree in the park on a warm day. They printed the picture on the front page of the paper.

Select one of the following:

  • The Hometown Newsis guilty of intrusion

  • The Hometown News is guilty of false light.

  • The Hometown News is guilty of appropriation.

  • It is unlikely that the Hometown News is guilty of any tort.

Question 3 of 82

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Les, a teenager, has the permission of Harold to walk across his yard on the way to school. Les now brings twenty of his friends across the yard, and they stop to play ball.

Select one of the following:

  • Les is not guilty of trespass to real property, because he had Harold's permission to cross the yard.

  • Les's friends are not guilty of trespass to real property, because they were with Les.

  • Les is guilty of trespass to real property, because he walked across the yard.

  • Les and his friends are guilty of trespass to real property, because they played ball in Harold's yard.

Question 4 of 82

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Anita included Bob's name and photograph in a list of the FBI's top ten criminals. Bob has never been convicted of any crime and is horrified by the thought of being considered a criminal.

Select one of the following:

  • This is defamation.

  • This is false light.

  • This is nuisance.

  • This could be either defamation or false light.

Question 5 of 82

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Sally, while walking in a park, got hit on the head with a baseball. The ball was thrown at her by Aaron who intended to hit her to show off in front of his friends. She may recover damagers for:

Select one of the following:

  • bodily harm.

  • emotional distress.

  • reasonable medical expenses.

  • All of the above.

Question 6 of 82

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Arthur fired a gun in the middle of the desert. He intended to fire the gun, but had no reason to believe anyone else was in the area. The bullet hit Bob, who happened to be riding his ATV across the desert.

Select one of the following:

  • Arthur has committed the tort of assault.

  • Arthur has commited the tort of battery.

  • It is unlikely that Arthur has the necessary intent to commit a tort.

  • Arthur has committed the tort of intentional infliction of emotional distress.

Question 7 of 82

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Ray threw a bomb into the office of his insurance agent, intending to kill the agent because the company had disallowed his claim. The agent wasn't in the building, but the bomb seriously injured his secretary, who was working in the office.

Select one of the following:

  • Ray cannot be liable to the secretary for any torts because he did not intend to hurt her.

  • The intent to harm the agent is transferred to the secretary who can sue Ray for her injuries with an intentional tort cause of action.

  • Ray has committed a crime, but he is not liable for any torts.

  • Ray has committed the tort of intrusion.

Question 8 of 82

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Arthur wrote a defamatory letter regarding Bill which he mailed to Bill, but which he did not show to anyone else.

Select one of the following:

  • Arthur has committed the tort of slander.

  • Arthur has committed the tort of libel.

  • Arthur has committed neither libel nor slander, because there has been no publication of the letter.

  • Arthur has committed the tort of false light.

Question 9 of 82

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Arthur wrote a defamatory letter regarding Bill Baker which he did not show to anyone, but which he posted on a bulletin board in the Laundromat.

Select one of the following:

  • Arthur has committed the tort of slander.

  • Arthur has committed the tort of libel.

  • Arthur has committed neither libel nor slander, because there has been no publication of the letter.

  • Arthur has committed the tort of false light.

Question 10 of 82

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Hal doesn't like Bradley, so he spread untrue rumors about his personal lifestyle and sexual practices at a cocktail party. These rumors harm Bradley's reputation in the community.

Select one of the following:

  • Hal is guilty of libel.

  • Hal is guilty of slander.

  • Bradley does not have a defamation suit against Hal.

  • Hal is protected by the First Amendment to the Constitution.

Question 11 of 82

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Mark gave the keys to his apartment to his friend Jack so Jack could sleep after an all-night study session. When Jack walked in, Mark's roommate, Sam, was standing behind the door in the dark, holding a baseball bat over his head. Jack flicked on the light and Sam saw it was Jack, so he lowered the bat before Jack noticed him.

Select one of the following:

  • Jack is guilty of assault.

  • Sam is guilty of assault.

  • Both Sam and Jack are guilty of assault.

  • Neither Jack nor Sam is guilty of assault.

Question 12 of 82

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Mary's car was parked just outside the east door of the Civic Center. When she tried to exit, three ominous-looking gang members were blocking that door. She called the police who arrested the three for loitering. If Mary brings suit against them for false imprisonment:

Select one of the following:

  • she will lose if there was another exit she could have used.

  • she will lose because she was not harmed by the confinement.

  • she will win even if there was another way out because she was, in effect, being confined to the Civic Center.

  • she will win because they were blocking her passage to her car.

Question 13 of 82

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A photographer taking photos of a movie star with a telephoto lens would NOT be guilty of intrusion if:

Select one of the following:

  • the photographer never entered onto the movie star's property.

  • the pictures were not published.

  • the movie star was in bed at the time.

  • the movie star was in a public building at the time.

Question 14 of 82

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Alice was briefly married at the age of 16. She is now 28 years old and plans to marry Henry in the spring. Henry's sister found out about Alice's first marriage and then told Henry's parents. Alice now wants to sue Henry's sister for public disclosure of private facts. Does Alice have a case against Henry's sister?

Select one of the following:

  • No, because marriage is a public and not a private fact.

  • No, because telling Henry's parents is not sufficient publication for public disclosure of private facts.

  • No, because the statement is true.

  • Both (a) and (b) are correct.

Question 15 of 82

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Carolyn takes Steve's car to the store with his permission. While there, she meets a group of her friends who were on their way to the beach. She leaves Steve's car at the store and goes away for the entire day. If Steve successfully sues Carolyn for trespass, he will:

Select one of the following:

  • recover the value of the car.

  • recover the value of the time he did not have use of the car.

  • recover the car's original price.

  • only recover the car.

Question 16 of 82

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Claudia's baby daughter Carolyn is snatched from her arms at the grocery store. The kidnapper threatens to drop the baby if the store does not hand over the contents of the vault. Claudia may:

Select one of the following:

  • trip the kidnapper, because she is limited to nonlife-threatening force.

  • shoot the kidnapper, since she can protect the baby in the same way she can protect herself.

  • not seriously harm the kidnapper since she, personally, is not in danger.

  • only call the police, since she cannot take the law into her own hands.

Question 17 of 82

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On December 2, the Houston Oilers were playing the Pittsburgh Steelers. On a particular play, the Pittsburgh defensive end, who was rather frustrated because Manning, the Houston quarterback, had completed passes for 450 yards, grabbed Manning by the faceguard, jerked Manning's helmet off and hit Manning over the head with it. Manning filed suit against the Pittsburgh defensive end. The Pittsburgh defensive end contends that he has a valid defense to this tort, in that Manning consented to participate in the game. Which of the following most accurately represents the status of that defense?

Select one of the following:

  • This is a valid defense.

  • The defense is not valid because football is a rough game.

  • The defense is not valid because football involves tackling and bodily contact and the most that could be derived from this would be a 15-yard penalty.

  • Consent is not a valid defense because of the intentional actions of the Pittsburgh end.

Question 18 of 82

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Tammy joined a religious cult while a student at State University. Her father hired a deprogrammer who spent several weeks with her, during which they occasionally went on outings. After Tammy met with her boyfriend one weekend, she rejoined the cult and sued her father and the deprogrammer for false imprisonment.

Select one of the following:

  • Tammy will win because this is clearly false imprisonment.

  • Tammy will lose because she had a reasonable means of escaping and voluntarily consented to the confinement.

  • Tammy has committed the tort of malicious prosecution.

  • Tammy's parents are guilty of intrusion but not of false imprisonment.

Question 19 of 82

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Andrew noticed Michael and his pregnant wife Georgette walking down the street and drove his car within inches of Michael, as a joke. Michael wasn't injured, but his wife suffered severe mental distress and needed to be hospitalized in order to save the pregnancy.

Select one of the following:

  • Andrew has no liability to Georgette, because he has not committed a tort against her.

  • Andrew has committed the tort of battery against Georgette.

  • Andrew has committed the tort of battery against Michael but has committed no tort against Georgette.

  • Andrew has committed the tort of intentional infliction of emotional distress against Georgette.

Question 20 of 82

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In an article about a prominent judge, a newspaper indicates the possibility that the judge had organized crime connections. The judge sues. The judge will have a cause of action:

Select one of the following:

  • if the suit is for defamation and the newspaper responsibly checked its sources.

  • if the suit is a suit for intrusion.

  • whether or not the newspaper checked its sources as long as the information printed is ultimately found to be untrue.

  • if the information is untrue and the newspaper did not check its sources.

Question 21 of 82

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A newspaper article hints that a certain corporation is a front for illegal activity. The corporation:

Select one of the following:

  • will lose a defamation suit because only natural persons can successfully bring defamation suits.

  • will likely win a defamation suit if the statement is untrue and was made with malice.

  • will likely lose a defamation suit because the press has an absolute privilege in this type of case.

  • can win an invasion of privacy suit even if the statement is true.

Question 22 of 82

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A points an unloaded gun at B and threatens to shoot. Unobserved by A, C witnesses the threat and believes A's gun is loaded and that B is about to die. C pulls out a gun and shoots and kills A.

Select one of the following:

  • C cannot successfully invoke the privilege of defense of others because A's gun was unloaded.

  • C can successfully invoke the privilege of defense of others because of his reasonable belief at the time he shot A.

  • One can use deadly force only to protect himself and his immediate family; therefore, C is liable.

  • Deadly force was not being threatened against B and hence C had no right to counter with deadly force.

Question 23 of 82

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Mark is out sailing in his boat one evening when he hears a young girl crying for help in the lake. Which of the following is true?

Select one of the following:

  • Mark MUST help the girl or he will be liable for negligence.

  • Mark must help the girl ONLY if he knows her.

  • Mark MUST help the girl if he is the girl's uncle.

  • Mark MUST help the girl if he begins to rescue her and moves her to a position farther from the shore.

Question 24 of 82

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By law, all apartment buildings in New Jersey must have smoke alarms in the ceilings. If Mary suffers smoke inhalation because the smoke alarm in her apartment building was not yet installed and Mary sues the owner for negligence, Mary would have to prove:

Select one of the following:

  • a duty existed toward her.

  • a breach of that duty.

  • injury and causation.

  • All of the above.

Question 25 of 82

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Rick's driveway has potholes. He has been thrown from his bike several times because of them. If Rick invites his biking friends for a barbecue, what must he do to escape liability for any harm to them?

Select one of the following:

  • Repair the potholes.

  • Post signs saying "slow to 15 mph."

  • Telephone his friends to warn them about the potholes.

  • None of the above.

Question 26 of 82

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Chris was driving a car with defective brakes very slowly down Fifth Avenue looking for a parking place. Mindy jumped out into the street five feet in front of his car. Chris could not help but hit her. What is Chris's best defense to the charge of negligence?

Select one of the following:

  • Even if he had perfect brakes, he would not have been able to avoid hitting Mindy.

  • He was not negligent since he did not have a statutory duty to keep his brakes in top condition.

  • Mindy crossed in the middle of the street, which is against the law.

  • He was lawfully seeking a parking place and did not see her jump out.

Question 27 of 82

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Henry was burning leaves in his backyard. One of the burning leaves was lifted by the wind into Emilio's yard next door. It landed on the lawn mower which exploded, setting fire to the wooden lawn furniture. Henry's best argument against liability would be:

Select one of the following:

  • that the leaf was not a substantial factor in causing the damage.

  • res ipsa loquitur.

  • that it was not foreseeable that the lawn mower would explode.

  • that the damage was not caused by the leaf but by the gasoline.

Question 28 of 82

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Sarah forgot to tie up her dog and it bit Carl on the leg when he came to visit. She took Carl to the hospital where the nurse applied a compress that had been used by another patient. Carl subsequently developed an infection and sued Sarah. What is the likely result?

Select one of the following:

  • Sarah is liable in negligence for the infection, because Carl would not have been injured but for her dog.

  • Sarah is not liable in negligence for the infection, because the nurse was contributorily negligent.

  • Sarah is liable for the infection, because it was reasonably foreseeable.

  • Sarah is not liable for the infection, because the nurse's conduct was a superseding cause of the harm.

Question 29 of 82

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Joe intentionally pushed Bill into a fence negligently erected by Sam around Sam's swimming pool. The fence caved in and Bill nearly drowned. Who is liable?

Select one of the following:

  • Sam, because of his negligent conduct.

  • Sam, because Joe's conduct would be foreseeable.

  • Joe, because of his intentional intervening conduct.

  • Sam and Joe, because they both contributed to the harm.

Question 30 of 82

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Pat and Sally started a charcoal fire for Sally's backyard barbecue and left it uncovered. Then Sally went into the kitchen to make hamburger patties. While Sally was inside, Pat backed up to catch a football and hit the grill, knocking the coals onto his feet. In a comparative negligence state, who is liable?

Select one of the following:

  • Sally is liable for ALL of Pat's injuries.

  • Sally is liable for Pat's injuries only if she was more negligent than Pat.

  • Sally is not liable for any of Pat's injuries.

  • Sally is liable for Pat's injuries only if Pat was more negligent than Sally.

Question 31 of 82

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A spectator who is injured by a wild pitch at a college baseball game will be unlikely to be successful in suing the school for negligence because of the doctrine of:

Select one of the following:

  • assumption of the risk.

  • intervening forces.

  • superseding causes.

  • contributory negligence.

Question 32 of 82

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Cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor's side of the fence and contaminated the cornmeal for the chickens. The chickens died, and the neighbor sues. What is the likely result?

Select one of the following:

  • Cal is not liable because he was not negligent in his spraying operation.

  • Cal is not liable because the neighbor assumed the risk of damage to the feed by placing it so close to the fence.

  • Cal is liable because spraying pesticides is an abnormally dangerous activity.

  • Cal is not liable for the damage because of contributory negligence.

Question 33 of 82

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William, who is a waiter, is injured when an unopened bottle of cola explodes in his hand while he is putting it into the restaurant's cooler. If William wants to sue the bottling company for his injuries:

Select one of the following:

  • he will lose, because it will be impossible for him to prove that the bottle was overpressurized by the bottler.

  • he will lose, because the bottling company has no duty to him.

  • he will probably win if the court allows him to use the res ipsa loquitur doctrine.

  • he will win based on the last clear chance rule.

Question 34 of 82

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Sarah goes to Marlin's Department Store to look for clothes. The store happens to be in the process of remodeling, and there is a lot of clutter in the aisle. Sarah trips over the clutter and is injured. Sarah's status with regard to the store is that of:

Select one of the following:

  • licensee.

  • business visitor.

  • public invitee.

  • trespasser.

Question 35 of 82

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Stella goes to Ranger's Department Store to look for clothes. The store is in the process of remodeling, and there is a lot of clutter in the aisle. Stella trips over the clutter and breaks her leg. What standard of care does the store have toward Stella under the circumstances?

Select one of the following:

  • None, because she came to the store voluntarily.

  • The store owes her a duty of only ordinary care, because she is a trespasser.

  • Because she is a public invitee, the store must warn her of hazards of which the store knows but which Stella is not likely to recognize.

  • Because Stella is a business visitor, the store must exercise reasonable care to protect her against dangerous conditions she is unlikely to discover.

Question 36 of 82

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Perry is injured on the job at the factory where he works. He files a workers' compensation claim against his employer. The liability of the employer under the workers' compensation statute is:

Select one of the following:

  • comparative

  • strict

  • contributory

  • absolute

Question 37 of 82

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The local supermarket has a large, glass front door which is well lighted and plainly visible. Nelson, who is new in the neighborhood, mistook the glass for an open doorway and walked into it, shattering the door and injuring himself.

Select one of the following:

  • The store is strictly liable to Nelson.

  • The store is not liable to Nelson.

  • The Palsgraf case would not allow Nelson to recover.

  • The store has no duty to Nelson.

Question 38 of 82

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Adam doesn't like having neighborhood teenagers walk across his yard at night. He rigs an animal trap on the path the teenagers usually use to cross his land. One night, Tim and his friends are walking across the yard when Tim gets caught in the trap. He is taken to the hospital for his injuries.

Select one of the following:

  • Tim is a trespasser on Adam's property, and Adam has the right to use animal traps to strongly discourage anyone from trespassing.

  • Adam has no duty toward Tim.

  • Adam is not free to inflict intentional injury on a trespasser.

  • All of the above.

Question 39 of 82

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Seventeen-year-old Todd has just received his driver's license. He is driving a little too fast one day and slams into the back of another car, which has just stopped for a stop sign.

Select one of the following:

  • Todd is engaging in an adult activity and will be held to the same standard as an adult.

  • Todd is a minor and will have no responsibility for his torts.

  • Todd's parents are responsible for any torts he commits.

  • Both (b) and (c).

Question 40 of 82

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Violation of a statute designed to protect underage, unlicensed drivers, as well as innocent third parties, from the consequence of juvenile car theft and "joy riding" by prohibiting car owners from leaving the keys in their cars if the cars are untended, is likely to be characterized as:

Select one of the following:

  • negligence per se.

  • res ipsa loquitur.

  • contributory negligence.

  • assumption of risk.

Question 41 of 82

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A form of strict liability applies to all of the following situations except:

Select one of the following:

  • a lawnmower sold in a defective condition that injures its owner.

  • a fireworks factory that blows up and injures townspeople and their property.

  • a medical procedure.

  • a herd of goats that travel onto a neighbor's property and eat and trample the neighbor's roses.

Question 42 of 82

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Arthur negligently stopped his car on the highway. Betty, who was driving along, saw Arthur's car in sufficient time to attempt to stop. However, Betty negligently put her foot on the accelerator instead of the brake and ran into Arthur's car.

Select one of the following:

  • Arthur's contributory negligence will prevent his recovery from Betty in all jurisdictions.

  • Betty had the last clear chance to avoid the accident and will bear full legal responsibility for it.

  • Arthur has assumed the risk of the accident.

  • Because both parties were negligent, in a state that follows the comparative negligence doctrine, both parties will share the liability for their injuries.

Question 43 of 82

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While driving his car five miles over the speed limit, Carl struck Darla, who was jaywalking across the street. When the case came to trial, the jury determined that Carl was 60% negligent and that Darla was 40% negligent. Darla's injuries are $10,000. This accident occurred in a state following the comparative negligence theory of recovery.

Select one of the following:

  • Darla will recover $10,000.

  • Darla will not recover anything.

  • Darla will recover $6,000.

  • Darla will recover $4,000.

Question 44 of 82

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Andrew negligently hit a dog, which lay stunned in the street for a moment and then ran toward Bill, a bystander, and bit him.

Select one of the following:

  • The dog's action is an intervening cause of harm.

  • The dog's action is a superseding cause of harm.

  • Andrew will be liable to Bill, because the dog's behavior is a natural consequence of the situation caused by Andrew's negligence.

  • Two of the above, (b) and (c).

Question 45 of 82

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Oscar, who was driving too fast for conditions, collided with a truck carrying explosives. The truck was unmarked, so Oscar had no way of knowing what it contained. The collision caused an explosion, which shattered glass in a building a block away. The glass injured Ida, who was working inside the building. John, who was walking down the street near the site of the collision, was seriously burned as a result of the explosion.

Select one of the following:

  • Oscar's negligent driving is the proximate cause of Ida's injury.

  • Oscar's negligent driving is the proximate cause of John's injury.

  • Both Ida and John are within the zone of danger of the collision.

  • All of the above.

Question 46 of 82

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Which of the following is a defense that a defendant could raise in an action based on strict liability?

Select one of the following:

  • The plaintiff negligently failed to observe a sign on a highway warning of blasting operations and was injured from the operations.

  • The owner of a car knowingly and voluntarily parked his vehicle in a blasting zone as a result of which the car was damaged.

  • A child played with a neighbor's pet raccoon which had escaped from its cage. The child teased the pet and was bitten.

  • All of the above are valid defenses which would be successful if raised by the defendant.

Question 47 of 82

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A ninety-year-old patient walked away from a nursing home and wandered onto some nearby railroad tracks. Once on the tracks, the patient stumbled and sprained his ankle. A few minutes later a train approached. The engineer saw the man on the track and could have stopped, but the train's brakes were defective. As a result, the train hit and killed the man. His family is suing the railroad for negligence.

Select one of the following:

  • The patient has assumed the risk of wandering onto the railroad tracks.

  • Because the patient was contributorily negligent, the railroad has no liability.

  • The train had the last clear chance to avoid the accident, so the railroad company has liability.

  • The train's striking of the man was an intervening cause, so the railroad company was negligent.

Question 48 of 82

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In which of the following situations would a court be likely to find an affirmative duty to act?

Select one of the following:

  • Where a pedestrian witnesses an auto accident in which one of the drivers is injured.

  • Where an airline attendant sees one passenger threaten another passenger.

  • Where the driver of a car sees a two-year-old toddler wandering in the middle of a busy street.

  • All of the above are situations where legally there is an affirmative duty to act.

Question 49 of 82

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Lee has been declared incompetent by the court and is under the care of his sister. Unknown to his sister, Lee rents the 30,000-seat civic center for his birthday party. Lee's contract to rent the civic center is best described as a:

Select one of the following:

  • valid contract.

  • voidable contract.

  • void contract.

  • quasi contract.

Question 50 of 82

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Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by:

Select one of the following:

  • Article 2 of the UCC.

  • state common law.

  • federal statute.

  • the law of quasi contract.

Question 51 of 82

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James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:

Select one of the following:

  • when Brenda tells James she will buy the boat.

  • when Brenda gets the money from the credit union.

  • when Brenda applies for the loan at the credit union.

  • only when James gets the $3,000.

Question 52 of 82

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Brian makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse. Brain accepts without correcting his earlier misrepresentation of fact.

Select one of the following:

  • Brian may avoid the contract.

  • Rosalind may avoid the contract.

  • Either or both Brian or Rosalind may avoid the contract.

  • Neither Brian nor Rosalind may avoid the contract.

Question 53 of 82

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Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?

Select one of the following:

  • Quasi contract.

  • Executed contract.

  • Illusory contract.

  • Executory contract.

Question 54 of 82

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Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as a(n):

Select one of the following:

  • unilateral contract.

  • quasi contract.

  • implied in fact contract.

  • bilateral contract.

Question 55 of 82

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Will sends for a law school catalog from Outer University. According to the catalog, the law school applications are evaluated on the bases of undergraduate grades, standardized test scores, and references. Sam is a straight-A student, has high test scores, and excellent references, but his application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Will followed all of the guidelines in the college catalog and sent in the required application fee, then:

Select one of the following:

  • this is not a contract.

  • this is a quasi contract.

  • this is a valid contract, the terms of which are set forth in the college catalog.

  • this is a voidable contract.

Question 56 of 82

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Abel is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $1,000, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious.

Select one of the following:

  • Abel has entered into a unilateral contract with the hospital and therefore will have to pay the bill.

  • Abel will have to pay the bill, because this is a quasi-contractual agreement.

  • Abel has entered into an implied in fact contract with the hospital.

  • Abel and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

Question 57 of 82

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Ken promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher expends $200,000 to remodel the complex. Which of the following is correct with regard to Ken's promise?

Select one of the following:

  • Ken's promise not to foreclose is unsupported by consideration.

  • Ken's promise is noncontractual.

  • Ken's promise will be enforced against him based upon the doctrine of promissory estoppel.

  • All of the above.

Question 58 of 82

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Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora.

Select one of the following:

  • Bob can keep the money.

  • Bob is under a contractual obligation to return the money.

  • Bob's obligation to return the money is quasi contractual.

  • Bob's obligation to return the money is implied in fact.

Question 59 of 82

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Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000. After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling.

Select one of the following:

  • Elmer has made a firm offer to Fred which cannot be revoked.

  • Elmer can revoke his offer at any time before acceptance, because there is no consideration to keep the offer open.

  • Elmer must keep the offer open, because this is an option contract.

  • Elmer is prohibited from revoking his offer to Fred under the doctrine of promissory estoppel.

Question 60 of 82

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Albert read ElectroCorp's ad in the local newspaper advertising a 4-head VCR for $89. Albert rushed to the store to buy the VCR only to be told by the salesperson that the ad was a misprint and the price should have been $289. Albert gave the salesperson $89 plus sales tax and demanded the VCR.

Select one of the following:

  • The ad is a firm offer by the merchant, and the VCR must be sold for $89.

  • The ad is a contract and the store must abide by terms stated in the contract.

  • The store must accept the price stated in the ad, but only if Albert has a copy of the ad with him.

  • Albert is merely making an offer to ElectroCorp to buy the VCR for $89 plus sales tax.

Question 61 of 82

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Elvis makes an offer to Miguel, but before Miguel can accept, the state supreme court decides a case that makes the offer illegal. What is the effect of the court decision on the offer?

Select one of the following:

  • The court decision automatically terminates the offer.

  • The court decision has no effect on the offer.

  • The court decision acts as a condition on the offer.

  • The court decision acts as a rejection of the offer by the offeree.

Question 62 of 82

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Jesse makes an offer to Ike, but before Ike can accept, the state legislature passes a law that makes Jesse's offer illegal. What is the effect of the new statute on the offer?

Select one of the following:

  • The statute automatically terminates the offer.

  • The statute has no effect on the offer.

  • The statute acts as a condition on the offer.

  • The statute acts as a rejection of the offer by the offeree.

Question 63 of 82

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Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy.

Select one of the following:

  • Maxine has revoked her offer to Tom.

  • Maxine's offer is a firm offer and she must sell Tom a video camera for $200.

  • Maxine must get the camera back from Cindy if Tom accepts within two weeks.

  • Both (a) and (b) are appropriate alternatives in this case.

Question 64 of 82

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The Rogers family has always wanted to buy the beautiful house at the top of the hill. The owners of the house, the Thompsons, decided to sell and called Mr. Rogers. Before he could get back in touch with Mr. Thompson, Mr. Rogers suffered a heart attack and died. Mrs. Rogers, to whom the Thompsons had not spoken, still wants the house.

Select one of the following:

  • She may not accept since the offer is terminated.

  • She may not accept because she does not have the capacity.

  • She may accept since the contract offer is assignable.

  • She may accept since the offer cannot be revoked without notice.

Question 65 of 82

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Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18. Brian receives the revocation on June 19. Was a contract formed?

Select one of the following:

  • Yes, on June 16.

  • Yes, on June 17.

  • Yes, on June 18.

  • No, the offer was revoked before acceptance.

Question 66 of 82

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Alice offers to sell her computer, monitor, and printer to Bradley for $300. Bradley says he will accept provided that Alice includes her word processing software. What is the status of their discussions?

Select one of the following:

  • There is a valid contract for the computer, the monitor, the printer, and the software.

  • There is no contract, because Bradley has made a counteroffer.

  • There is no contract, because the time for delivery has not been decided.

  • There is no contract, because the offer has been revoked by the offeror.

Question 67 of 82

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Alice verbally offered to sell her computer, monitor, and printer to Bradley for $300. Two days later Bradley mails a letter to Alice in which he accepts the offer. Three days later, before Alice has received the letter, Bradley calls to say he won't be able to accept her offer. What is the status of their negotiations?

Select one of the following:

  • A contract came into existence when Bradley mailed the letter.

  • There is no contract, because Bradley has rejected the offer.

  • There is no contract, because the time for delivery has not been discussed.

  • There is no contract, because an acceptance by letter is not an appropriate means of acceptance.

Question 68 of 82

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Wes, who is an art collector, offered to buy a Miro original from Le Monde Gallery. Le Monde balked at the price, sending Wes a letter of rejection. That day it discovered that the print was not as highly valued as originally thought. Le Monde immediately telephoned Wes to accept his offer. Is there a contract?

Select one of the following:

  • Yes, since the acceptance was received before the rejection.

  • No, because the rejection was effective upon dispatch.

  • No, because the rejection terminated the offer.

  • Yes, because the acceptance is always effective upon dispatch.

Question 69 of 82

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Gail sent a letter of acceptance to an offer that has expired. Gail has made:

Select one of the following:

  • a contract.

  • a rejection.

  • a revocation.

  • an offer.

Question 70 of 82

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An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n):

Select one of the following:

  • firm offer if made by a merchant.

  • offer if made by a merchant, but not a firm offer.

  • offer irrespective of who made the offer.

  • invitation to buyers to make an offer to buy goods.

Question 71 of 82

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When does acceptance of an offer to enter into a unilateral contract generally occur?

Select one of the following:

  • Upon notice of intent to accept by the offeree.

  • Upon full performance by the offeror.

  • Upon commencement of performance by the offeree.

  • Upon full performance by the offeree.

Question 72 of 82

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Lynn offers to sell his house to Dennis for $50,000. Dennis responds, "I will pay you $50,000 if you will paint the second floor." This response could best be described as:

Select one of the following:

  • an acceptance.

  • a counteroffer.

  • a rejection.

  • an invitation.

Question 73 of 82

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Assume an offeree mails a rejection to the offeror on November 1. This rejection arrives at the offeror's place of business on November 5. In the meantime, on November 4, the offeree sends the offeror an acceptance that arrives November 6. Which of the following statements correctly describes the situation?

Select one of the following:

  • There was no contract.

  • There was a contract since the acceptance was mailed prior to the time the rejection was received.

  • There was no contract because the rejection was mailed first.

  • There was no contract because the acceptance was mailed more than three days subsequent to the rejection.

Question 74 of 82

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James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege. Jennifer pays James $100. Which statement describes the payment of $100?

Select one of the following:

  • An implied in fact contract has been formed.

  • A unilateral contract has been formed.

  • This is a formal contract.

  • This is an option contract.

Question 75 of 82

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Shirley hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist. She supplies the requested information, and the suspect is then arrested and convicted.

Select one of the following:

  • Shirley cannot collect the money unless the offer was specifically made to her by the station.

  • The offer by the television station was an offer made to the general public to enter into a unilateral contract, which offer Shirley has accepted.

  • Because Shirley failed to notify the station of her intention to supply the information before actually doing so, she has not accepted their offer.

  • Shirley was just doing her duty as a citizen and has no right to the payment of any money.

Question 76 of 82

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Leonard offers to sell his diamond ring to Emily. Diane overhears the offer and says, "I accept the offer."

Select one of the following:

  • Diane cannot accept the offer, because it wasn't made to her.

  • This is a valid acceptance.

  • The offer has not been communicated to the offeree.

  • This is an invitation seeking offers and not an offer.

Question 77 of 82

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If an offer requires acceptance by fax and the offeree mails acceptance:

Select one of the following:

  • there is no contract.

  • there is a contract if the acceptance is actually received within the time the authorized means would have arrived.

  • under the Restatement, if the acceptance is received within the time the authorized means would have arrived, the acceptance is effective when sent.

  • Both (b) and (c) are correct.

Question 78 of 82

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Jack has been in the business of selling carpeting for 20 years. He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 yards of carpet at $20 per yard. Bob agrees and sends back the following letter confirming the deal:
Dear Jack:
As we discussed on the phone January 3, we accept your offer of 100 yards of Saxony "heather blue" carpeting at the price of $20 per yard. We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date.
Very truly yours,
Bob
Which of the following is true?

Select one of the following:

  • There is a contract for only 100 yards of carpeting.

  • There is a contract for 100 yards PLUS the additional yardage.

  • There is no contract since Bob made a counteroffer.

  • There is no contract because the additional term is too uncertain to become a contract term.

Question 79 of 82

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Michelle's Boutique places an ad in the Sunday paper for beautiful, top-of-the-line designer suits for $3.00. Irene sees the ad in the paper and goes to the store to stock up on business suits for her new job. Michelle apologizes for the misprint. Irene has just finished a class in contract law and insists that the store sell her 5 suits for $15.00. Irene threatens to sue Michelle for breach of contract.

Select one of the following:

  • This is a valid contract, and Irene will win if she sues.

  • The ad in the newspaper is an offer to sell.

  • The ad in the newspaper is a solicitation seeking offers, but is not an offer to sell; therefore, Irene will not be able to successfully sue for breach of contract.

  • None of the above.

Question 80 of 82

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Chad has offered to take Miles into his accounting firm as a partner upon payment of $5,000 cash. In response, Miles says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

Select one of the following:

  • Miles has made a counteroffer; hence there is no contract.

  • Miles has rejected the terms of the original offer, but there is still a contract.

  • Chad is a merchant making a firm offer under Article 2 of the UCC. Hence there is a contract.

  • Any indefinite provisions in the contract between Chad and Miles will be supplied by Article 2 of the UCC.

Question 81 of 82

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Marilyn read an ad in the school newspaper offering a thousand dollar swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way.

Select one of the following:

  • The advertiser may revoke the offer since there has not yet been an acceptance.

  • The advertiser may not revoke the offer since Marilyn has already accepted it.

  • The advertiser must permit Marilyn the opportunity to finish her attempt to swim the 500 laps, or pay damages if he interferes with the completion of the laps.

  • The advertiser must pay Marilyn $920, because she has performed 92% of the offer.

Question 82 of 82

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Bill sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11 a.m. on Tuesday, Carla delivers an acceptance to Federal Express, but due to an error, the letter is not sent out by the company until Wednesday at 8 a.m. At what time does the law consider the acceptance to be effective?

Select one of the following:

  • At 10 a.m. on Tuesday.

  • At 11 a.m. on Tuesday.

  • At 8 a.m. on Wednesday.

  • At the time Bill receives the letter.

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Business Law - Practice Test 1

Antonio P - EMU
Quiz by , created about 1 year ago

These are the questions and answers for practice test 1.

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Antonio P - EMU
Created by Antonio P - EMU about 1 year ago
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