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LAW 421 Final Exam Question & Answer 2017 | LAW 421 Exams 2016, 2014 Answers

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1. When a buyer rejects nonconforming goods and purchases the<br />

appropriate goods from a different seller, this is an example of which<br />

of the following:<br />

• Specific Performance<br />

• Revoking Acceptance<br />

• Lawsuit for Money Damages<br />

• Cover<br />

2.Which of the following would be considered intangible property?<br />

• Hydrocarbons<br />

• Pharmaceuticals<br />

• A right of ownership or possession<br />

• An apartment


3.Upon her return home from work, Maria discovered that her lawn has been<br />

mowed and trimmed. An hour later, a male stranger comes to her door for<br />

payment for the lawn work. Maria refuses any payment because she had not<br />

hired him to do the work. In these circumstances<br />

• Maria would not have to pay anything.<br />

• the man could sue Maria for unjust enrichment.<br />

• Maria would have to pay whatever a court finds to be "fair."<br />

• the man could sue Maria for breach of an implied, unilateral contract.<br />

4.The power of preemption is derived from<br />

• the Supremacy Clause.<br />

• the power of judicial review.<br />

• the Commerce Clause.<br />

• the Necessary and Proper Clause.<br />

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5.Two merchant companies have entered into a contract for the sale of goods.<br />

They have had no prior dealings among themselves that may establish a<br />

course of conduct. The UCC will provide "gap fillers" to supply missing<br />

terms unless<br />

• they have failed to specify the price of the goods to be delivered.<br />

• they have failed to specify the quality or grade of the goods to be delivered.<br />

• they have failed to specify when payment for the goods is to be made.<br />

• they have failed to specify where delivery of the goods is to be made.<br />

6."What if everyone took these same actions?" is a question sometimes<br />

called the<br />

• morality approach.<br />

• utilitarian approach.<br />

• functionality approach.<br />

• universalization approach.


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7.Jurisprudence is defined as<br />

• the science and philosophy of law<br />

• the duties and obligations owed by a citizen<br />

• the enactment of laws by a government body<br />

• adjudication of law suits<br />

8.Which of the following ADR methods results in a decision rendered by<br />

the hearing officer?<br />

• Mediation<br />

• Negotiation<br />

• Third-party evaluation<br />

• Arbitration


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9.The principle challenge faced by international courts include<br />

• obtaining universal recognition and participation in its processes<br />

by the U.N. and W.T.O.<br />

• articulating universally applicable rules of law that reflect multiple<br />

legal systems faithfully.<br />

• enforcing it's judgments on sovereign nations.<br />

• finding judges skilled in international law.<br />

10.The following is required for disclaiming a warranty:<br />

• Common law authority<br />

• Conspicuous language in the sales contract itself<br />

• Writing, posted in a public space and incorporated by reference in<br />

the contract<br />

• The word "merchantability" need not be included, if a warranty of<br />

merchantability is to be disclaimed


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11.The term cybersquatting means<br />

• use of mechanical devices(s) or malicious software to deny service to a<br />

company's website.<br />

• hacking into a company's website to insert a virus (or Trojan horse) designed to<br />

steal information as the site continues in operation.<br />

• hacking into a company's website to install a virus designed to cause the<br />

company's website to operate extremely slowly.<br />

• registering multiple domain names using names from famous trademarks with<br />

an intent to sell them to the companies owning the famous marks at inflated<br />

prices.<br />

12.The UCC will permit an incomplete or slightly ambiguous contract to be enforced<br />

using which of the following criteria?<br />

• Past commercial conduct<br />

• Correspondence or oral exchanges between the competing parties<br />

• Insertion of any terms judicially determined to be necessary to establish fairness<br />

• Projected industry standards or norms


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13.Ben is the manager of a branch of a large bank. He has regularly taken<br />

money from customer's accounts for his own use and falsified the bank's<br />

records to "cover" his actions. Ben is guilty of<br />

• engaging in a Ponzi scheme.<br />

• racketeering.<br />

• conspiracy.<br />

• embezzlement.<br />

14.When an offer can only be accepted by performance of the person to<br />

whom it is made, the form of contract involved is<br />

• unilateral contract.<br />

• bilateral contract.<br />

• quasi contract.<br />

• implied contract.


15.The utilitarian approach to moral philosophy was founded by whom?<br />

• Immanuel Kant<br />

• Cicero<br />

• Kenneth Lay<br />

• Jeremy Bentham<br />

16.With regard to the legal element of consideration in a sales contract, the<br />

UCC differs from the common law in that<br />

• consideration is not required in sales contracts.<br />

• consideration in a sales contract may be modified provided that<br />

adequate additional consideration is given for that modification.<br />

• the consideration exchanged must be judicially determined to be<br />

adequate.<br />

• consideration in a sales contract may be modified without additional<br />

consideration under certain circumstances.<br />

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17.Joan is the CFO of Para Corp. and is a year from retirement. In order to guarantee<br />

herself a substantial bonus and to boost her retirement benefits, she prepares and<br />

intentionally certifies as "true and correct" false financial reports. She further takes<br />

steps to assure that the financial report are not reviewed through the normal system of<br />

internal controls maintained by Para Corp. Under the provisions of the Sarbanes-Oxley<br />

Act (2002), if her fraud only involves her, what criminal penalties are possible for Joan?<br />

• $2 million in fines and up to 12 years in prison<br />

• $1 million in fines and up to 10 years in prison<br />

• $5 million in fines and up to 15 years in prison<br />

• $10 million in fines and up to 20 years in prison<br />

18.The distinctive color(s) or shape of an item is an example of<br />

• patent.<br />

• trade dress.<br />

• trademark.<br />

• copyright.


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19.Under the U.S. legal system, subject to some exceptions, fees and certain costs of<br />

litigation<br />

• are entirely paid by the prevailing party or parties, as the court may determine.<br />

• are entirely paid by the losing party or parties, as the court may determine.<br />

• are paid by each side paying its own legal fees and costs.<br />

• are aggregated by the court and allocated among the parties by the court based<br />

on its determination of "fairness."<br />

20.Which of the following is rarely awarded in contracts cases?<br />

• Liquidated damages<br />

• Punitive damages<br />

• Compensatory damages<br />

• Consequential damages


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21.Which of the following is a defense to a claim of breach of contract?<br />

• Insufficient operating capital<br />

• Accord and Satisfaction<br />

• The bonding company on the Performance Bond denied the claim<br />

• Insurance coverage is sufficient to cover all contingencies<br />

22.The three stripes on Adidas clothing represents a<br />

• trade dress.<br />

• trademark.<br />

• patent.<br />

• trade secret.


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23.Which of the following is classified as an equitable remedy?<br />

• Consequential damages<br />

• Liquidated damages<br />

• Reformation<br />

• Restitution<br />

24.Harry sees a semi-automatic rifle that he likes in a gun shop’s window. The<br />

price asked for it is $2,500. Harry signs a written contract promising to pay the<br />

$2,500 on Friday, taking possession of the rifle when payment is made. On<br />

Thursday, a law becomes effective making the ownership, sale, or possession of<br />

such a semi-automatic rifle illegal. The contract between Harry and the shop<br />

• automatically terminates due to impracticability.<br />

• is enforceable and not affected by the new law because it was entered into<br />

before the law took effect.<br />

• automatically terminates due to impossibility.<br />

• automatically terminates due to frustration of purpose.


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25.The Digital Millennium Copyright Act (1998) provides<br />

• that manufacturers of CD-Writers were required to pay 2% of their sales into a<br />

fund to be distributed to copyright holders because the CD-Writers could easily<br />

copy music and other copyrighted works.<br />

• for removal of restrictions on analog recorders and camcorders lacking<br />

antipiracy features.<br />

• those who sell or manufacture vulnerable software products or services will be<br />

subject to civil and criminal penalties.<br />

• that ISPs are not liable for copyright infringement by users of their service if<br />

the ISP lacks knowledge of the infringement.<br />

26.Generally, torts law is governed by<br />

• state common law.<br />

• constitutional law.<br />

• federal statutory law.<br />

• state statutory law.


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27.The Sarbanes-Oxley Act (2002) imposed stricter regulations on how corporations do<br />

business in the following area(s):<br />

• corporate governance.<br />

• auditing.<br />

• financial reporting.<br />

• corporate tax inversions.<br />

28.Stan is an investment manager. He has received money from various investors giving<br />

them a promise of very high returns. The invested money is not supplying enough return to<br />

enable payment of the rate promised, so Stan has started using new investors' money to<br />

pay older investors at the promised rates. By advertising and by word of mouth, people are<br />

anxious to invest with Stan because of the money being paid, and with the influx of new<br />

investors, he is able to continue operating. Stan is<br />

• engaging in a conspiracy to defraud.<br />

• racketeering.<br />

• operating an insider trading operation.<br />

• operating a Ponzi scheme.


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