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Straighterline Business Law exam with
correct answers
Stare decisis: - CORRECT ANSWERS ✔✔Lends predictability to decisional law by relying on prior decisions Which of the following statements is true of the adversary system? - CORRECT ANSWERS ✔✔The adversary system represents the idea that truth is best discovered through the presentation of competing ideas In order to appeal a decision: - CORRECT ANSWERS ✔✔A party must claim that the court made an error of law or that the evidence in the trial did not support the trial court's decision A useful tool for understanding and persuading which combines basic analytical thinking with recognition of the special features of the underlying legal system is: - CORRECT ANSWERS ✔✔Legal reasoning Mr. Gregg has made an inflammatory speech denouncing the action of the government in the recent war. The government can restrict his speech through regulation: - CORRECT ANSWERS ✔✔If it is the least intrusive means to promote the government's interests
After a series of some advertisements of beer and other alcoholic drinks, the government decided to regulate commercial speech. If the courts analyze this regulation, they will: - CORRECT ANSWERS ✔✔Search for truth A van from Mario's Squibb Company is damaged by a heavy metal keg, which rolls out of the second floor window of the two storied Toss-Co. Flower building. Toss-Co. Flower is the sole occupant of the building. Although the van was parked under the window while making a delivery at the Toss Co. receiving dock, no one admits to having seen the keg fall, nor are there any witnesses who can state where the keg was just before the accident. Can Mario recover against Toss-Co. for negligence? - CORRECT ANSWERS ✔✔Mario can shift the burden of proof onto Toss-Co. to show that the accident was not caused by its (Toss-Co.'s) negligence if Mario can prove that kegs do not fall out of windows in the absence of negligence and that Toss-Co. had exclusive control of the keg prior to the accident Under rational basis analysis: - CORRECT ANSWERS ✔✔A government action will be upheld as long as it has a reasonable relationship to the achievement of a legitimate purpose, even if those provisions are foolish To assume the risk of a danger, the plaintiff must: - CORRECT ANSWERS ✔✔Fully understand the nature and extent of the risk Fully understand the nature and extent of the risk - CORRECT ANSWERS ✔✔Substantive due process
Esther sued Stop-n-Slop for injuries she suffered when she walked into and through the plate glass front of her local Stop-n-Slop store, crying "Ouch!' and bleeding all over her new summer dress. The evidence at trial revealed that there were no signs or markings on the glass and that several people had already walked into the glass and bounced off. Which of the following is a FALSE statement? - CORRECT ANSWERS ✔✔The doctrine of res ipsa loquitur applies and the burden has shifted to Stop-n-Slop to prove that it was not negligent A common defense to the tort of interference with contract is: - CORRECT ANSWERS ✔✔Privilege Punitive damages: - CORRECT ANSWERS ✔✔Are damages in excess of the plaintiff's injuries, awarded to punish the defendant Law may not be up to the task of forcing corporations to engage in ethical behavior for a number of reasons, including that: - CORRECT ANSWERS ✔✔It is not clear that all corporations will respond to the threat of financial penalties imposed by law Strict liability: - CORRECT ANSWERS ✔✔Is described as liability without fault A corporate manager looking for ethical guidance that neither the law nor social norms accounts for, must rely on: - CORRECT ANSWERS ✔✔His/her individual conscience
If a person carelessly runs a car into yours, the person has committed: - CORRECT ANSWERS ✔✔Civil tort of negligence The elements of an intentional tort are: - CORRECT ANSWERS ✔✔Harm to another person/property and intent A written record of the entire trial proceedings including the testimony of all the witnesses and any discussions between the judge and the attorneys is called a: - CORRECT ANSWERS ✔✔Transcript In addition to statements made to an attorney, the attorney-client privilege covers: - CORRECT ANSWERS ✔✔Information divulged to an attorney's subordinates, such as secretaries or paralegals The offeree may accept an offer within a reasonable time by any reasonable means of communication: - CORRECT ANSWERS ✔✔If the offer merely suggests a method or place of communication or is silent on these points The person who owns the intellectual property is known as the: - CORRECT ANSWERS ✔✔Licensor All the elements of misrepresentation and the fact that the misrepresentation was knowingly made with the intent to deceive have to be established to prove: - CORRECT ANSWERS ✔✔Fraud
Joe pays Ann to mow his lawn and Ann mows Danna's lawn by mistake. Danna peers out her window and sees Ann mowing, yet says nothing to Ann about her mistake since Danna needs to have her lawn mowed. When Ann approaches Danna for payment, Danna refuses, arguing that she had never asked Ann to mow her lawn. Under these circumstances, Ann can recover payment from Danna under: - CORRECT ANSWERS ✔✔Quasi contract Identify the legal term for settling a disputed claim. - CORRECT ANSWERS ✔✔Accord and satisfaction Compared with common law, the UCC: - CORRECT ANSWERS ✔✔Is more likely to find that parties have a contract Mutual mistake may arise: - CORRECT ANSWERS ✔✔When there is unintentional usage of ambiguous terms in the agreement and when the matter of the agreement is not properly understood by either party Hans bought a stylish sports car when he was 15. Two weeks after he turned 18, he sold the car to his neighbor. In this scenario: - CORRECT ANSWERS ✔✔Hans has indicated his intent to be bound to the contract by selling the car and can no longer disaffirm Under the UCC, when acceptance is made expressly conditional on agreement to new terms and the parties begin performance: - CORRECT ANSWERS ✔✔A contract is created
When the offeror does not specifically indicate what he/she was willing to do and what he/she wanted the offeree to agree to do in return, his/her behavior will probably be classed as: - CORRECT ANSWERS ✔✔An invitation to negotiate The doctrine of promissory estoppel does not require: - CORRECT ANSWERS ✔✔A consideration The right to disaffirm a contract applies to all of the following except: - CORRECT ANSWERS ✔✔To a person who is dead In cases where a minor lies about her age, courts handle the situation in all of the following ways except: - CORRECT ANSWERS ✔✔Holding the minor to his/her spoken statements which clearly indicate intent to be bound by the contract In an option contract: - CORRECT ANSWERS ✔✔The offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time If a court later finds that a person lacked mental capacity at the time a contract was entered into, that contract is: - CORRECT ANSWERS ✔✔Voidable at the election of the person, his guardian or administrator In a unilateral contract, there is no voluntary consent if: - CORRECT ANSWERS ✔✔The other party knew of the mistake and is trying to take unfair advantage of it
The problem with looking to "values that find wide acceptance" as a guide to ethical corporate behavior is that: - CORRECT ANSWERS ✔✔Modern life holds a diversity of conflicting ethical views As used in the UCC, the concept "reasonable": - CORRECT ANSWERS ✔✔Is a practical standard used to gauge what people really do in the marketplace For a public figure to sue for defamation, he/she must prove: - CORRECT ANSWERS ✔✔Actual malice A teleological theory based on the laissez faire theory is: - CORRECT ANSWERS ✔✔Profit maximization Strict scrutiny: - CORRECT ANSWERS ✔✔Is the analysis employed by the court in deciding an equal protection case involving discrimination on the basis of race A defendant is guilty of recklessness when: - CORRECT ANSWERS ✔✔His/her behavior indicates a conscious disregard for a known high degree of probable harm to another The remedy for fraud includes all of the following except: - CORRECT ANSWERS ✔✔Restitutionary damages
A formal written order issued by a body with administrative or judicial jurisdiction designed to reach things belonging to the debtor that are in the hands of third parties, such as wages, bank accounts and accounts receivable is: - CORRECT ANSWERS ✔✔A writ of garnishment Parties to a contract have left some blanks in their agreement. The UCC does not fill in the gaps related to: - CORRECT ANSWERS ✔✔Quality Which of the following does not terminate an offer? - CORRECT ANSWERS ✔✔Physical disabilityy Under the UCC, minors who disaffirm their contracts involving goods: - CORRECT ANSWERS ✔✔Can no longer reclaim those goods from innocent third parties In an option contract: - CORRECT ANSWERS ✔✔The offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time If an offer does not state a time for acceptance, it is: - CORRECT ANSWERS ✔✔Valid for a reasonable time, which depends on the circumstances of the offer Identify the statement which is true of a minitrial. - CORRECT ANSWERS ✔✔If a settlement is not reached in a minitrial, neutral third- party advisor will render a nonbinding opinion regarding how the dispute is likely to be resolved if it goes to trial
Prudence negligently imperiled Bijou by leaving marbles on the steps of her house. When Bijou comes to visit, she breaks her leg and seriously damages her spine. While Bijou is in the hospital recovering from her fall, her body is weak and she readily contracts a viral infection. Under these circumstances, Prudence is liable: - CORRECT ANSWERS ✔✔Injuries sustained by her and also for the viral infection he plaintiff's burden of proof in a tort case is proof by a preponderance of the evidence, which is applied in all of the following instances except: - CORRECT ANSWERS ✔✔A case where the defendant's liberty may be at stake In the sale of real estate: - CORRECT ANSWERS ✔✔Many courts are holding that sellers have a duty to disclose defects that seriously undermine the value of the home Identify the legal term for settling a disputed claim. - CORRECT ANSWERS ✔✔Accord and satisfaction It is unlikely that greater control by shareholders will lead to greater corporate social responsibility because: - CORRECT ANSWERS ✔✔Most shareholders are motivated by maximizing profits and are unlikely to approve corporate actions contrary to that end Under the UCC, if the parties are both merchants, additional terms in the offeree's form may be included in the agreement unless: - CORRECT ANSWERS ✔✔The offer expressly limited acceptance to its own terms
In the business world, the goal of preventative law is to increase profits by:
- CORRECT ANSWERS ✔✔Reaching business goals through enforceable contracts while avoiding government prohibitions The doctrine of "last clear chance": - CORRECT ANSWERS ✔✔Holds that even though plaintiff was negligent, he/she can still recover if it can be shown that the defendant had the last opportunity to avoid the harm All of the following are true of consideration except: - CORRECT ANSWERS ✔✔Having a monetary value always, regardless of legal value The development of _____ is, according to some legal scholars, the single most important legal development of the century. - CORRECT ANSWERS ✔✔Administrative agencies All of the following under the UCC are ways to communicate acceptance except: - CORRECT ANSWERS ✔✔A means slower and safer than the way the offer was communicated Under the tort of defamation: - CORRECT ANSWERS ✔✔Truth is a complete defense There is no voluntary consent in a mutual mistake if: - CORRECT ANSWERS ✔✔There is untrue belief by both parties about a material fact
The tort of false imprisonment protects: - CORRECT ANSWERS ✔✔Mental and physical interests Under the power of judicial review: - CORRECT ANSWERS ✔✔A judge may render a legal rule unenforceable by declaring it in conflict with the Constitution John tells Sally he will sell her his car for $1,000. Sally agrees to buy the car on John's terms. The contract between John and Sally is: - CORRECT ANSWERS ✔✔Bilateral, executory and express Administrative agencies regulate: - CORRECT ANSWERS ✔✔Wages and hours of work Res Ipsa Loquitur means: - CORRECT ANSWERS ✔✔"The thing speaks for itself," or that negligence is inferred in certain cases when an injury would not normally occur in the absence of negligence and the defendant has exclusive control of whatever caused the injury Which of the following used to enforce promises is not supported by consideration? - CORRECT ANSWERS ✔✔Promises not to commit crimes or torts In which of the following situations can a party's duty to perform be discharged? - CORRECT ANSWERS ✔✔When events occur after the formation of the contract that would make the return performance of the other party worthless to the promisor
An agreement may be found to be void due to illegality because of all of the following reasons except: - CORRECT ANSWERS ✔✔It protects the interests created by the contract to a reasonable measure Once a creditor beneficiary has accepted the contract, the original parties: - CORRECT ANSWERS ✔✔Can cancel the contract if the original contract gives them the right to When a contract is partly printed and partly written: - CORRECT ANSWERS ✔✔The written terms control the printed terms Tony contracted to buy wheat from farmer Brown. It was contracted that Toby would pay farmer Brown, three days after the delivery of the wheat. Brown's delivery would be a _____ of Tony's duty to pay. - CORRECT ANSWERS ✔✔Constructive condition precedent Notice to the promisor is important to address the issue/s of: - CORRECT ANSWERS ✔✔Liability and priority Harry Hotdog is hired as an accountant by a large Indianapolis-based accounting firm. The firm's attorney drafts an employment contract which contains the following clause: "Employee agrees that he will not engage in the practice of accounting in Indianapolis for one year after termination of his employment with this firm." Hotdog signs the contract, works for six months and then resigns and opens his own accounting firm in Indianapolis. His former employer sues him for breach of contract and is likely to: -
Unconscionable or adhesion contract is the action involved in: - CORRECT ANSWERS ✔✔Contracts resulting from unequal bargaining power "Parol evidence" refers to: - CORRECT ANSWERS ✔✔The idea that when the parties to an agreement have expressed their agreement in a complete, unambiguous writing, the writing is the best evidence of their intent In which of the following situations would a writing, not satisfy the statute of frauds? - CORRECT ANSWERS ✔✔If it were signed only by the party suing to enforce it and not by the party to be charged Farmer Logan had agreed to supply maize to Roxy Inc. There was a terrible winter in his state which destroyed his crop and later he fell sick and ultimately died. Farmer Logan can be excused for nonperformance on grounds of: - CORRECT ANSWERS ✔✔Illness or death of the promisor Miriam makes an oral agreement with John to sell him 200 acres of prime farmland for a mere $500. Their agreement is: - CORRECT ANSWERS ✔✔Is unenforceable as it lacks a writing as required by the statute of frauds "Frustration of venture": - CORRECT ANSWERS ✔✔Is the same as "commercial frustration." The following statutes render contracts void or voidable except: - CORRECT ANSWERS ✔✔Strict liability
Which of the following is not a basic Code writing requirement? - CORRECT ANSWERS ✔✔That the essential terms of the contract and the parties' signatures were contained in more than one document An incidental beneficiary can: - CORRECT ANSWERS ✔✔Be a member of the general public For an assigned claim to be valid: - CORRECT ANSWERS ✔✔The contract must not be illegal or known by the assignor to be voidable Which of the following would be a legal contract? - CORRECT ANSWERS ✔✔The owner of a property paying the insurance company a fee in return for the company's agreement to bear the risk that the property will be damaged or destroyed Delegations can be prohibited by: - CORRECT ANSWERS ✔✔Public policy Which of the following statements is true? - CORRECT ANSWERS ✔✔Personal service contracts are the only contracts which terminate with the promisor's death
