Deck 23: for Unit Three

Question 1

V-Power Corporation contacts Windstar, Inc., to buy wind farm equipment. In an exchange of e-mail, the parties agree to terms. When Windstar sells the equipment to Xtra Generation Company, V-Power files a suit against Windstar for breach of contract. Windstar argues that e-mail is not an appropriate means of communication in their industry. The court is most likely to rule that Windstar must prove that in their industry

A) there are appropriate means of communication other than e-mail.
B) there is only one appropriate means of business communication.
C) trade usage and the parties' course of dealing never involved e-mail.
D) trade usage and the parties' course of dealing rarely involved e-mail.

Answer 1

D

Question 2

GR8 Cereal Company contacts Harvest Distillers, Inc. (HDI), to buy grain. In an exchange of e-mail, the parties agree to the terms. When HDI sells the grain to Ideal Breakfast Corporation, GR8 files a suit against HDI for breach of contract. The court is most likely to hold that there was

A) a contract, and HDI breached it.
B) no contract because e-mail is "intangible messaging."
C) no contract because e-mail is not "signed."
D) no contract because e-mail is not "writing."

Answer 2

A

Question 3

Klint and Lorenz agree to a contract. Later, Klint alleges that his performance is impossible or at best impracticable because of circumstances unforeseen at the time the contract was formed. Hans files a suit, claiming breach. In Germany, if the court agrees with Klint, the most likely remedy is

A) damages.
B) reformation.
C) rescission.
D) specific performance.

Answer 3

B

Question 4

Sylvia creates a profile for Today's Date, Inc., an online dating service. She exaggerates her appealing features and posts a photo of her friend Uva, whom Sylvia thinks is prettier. Enticed by the profile, Van contacts Sylvia. Disappointed, Van files a suit against Today's Date, claiming fraud. The service is most likely

A) immune from liability under the Communications Decency Act.
B) liable for fraud.
C) liable on the ground of embarrassment.
D) liable on the ground of mistake.

Question 5

Genie.com initiates an online dating service. To attract subscribers and encourage participation, Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users. Fooled by a false profile, Ham files a suit against Genie.com, claiming fraud. The court will most likely

A) dismiss the suit under the Communications Decency Act.
B) allow Ham's claim to proceed to trial on the claim of fraud.
C) allow Ham's suit to proceed but on the ground of embarrassment.
D) allow Ham's suit to proceed but on the ground of mistake.

Question 6

Choy, Ltd., a Chinese firm, makes drain plugs and sells them to Duck Boat Corporation. Duck uses the plugs as a component in its boats. Choy knows that Eventide, Inc., sells Duck boats in the United States. In a patent dispute over the plugs, Fridley, a U.S. citizen, files a suit in a Georgia state court against Choy. Most likely, with respect to Choy, the court

A) does not have jurisdiction because Choy is an alien corporation.
B) does not have jurisdiction because it is not a federal court.
C) does not have jurisdiction because it is too costly for Choy to litigate in Georgia.
D) has jurisdiction because Choy knows how its plugs are used and where Duck boats are sold.

Question 7

Vigor Fitness Corporation uses a Web site to provide downloadable information to prospective franchises. This online information is the equivalent of an offer that must comply with

A) no law.
B) the Franchise.com "Green Light" format.
C) the Federal Trade Commission's Franchise Rule.
D) the Uniform State Franchise Disclosure Act.

Question 8

Dingo Bangles Company wants to present information in "disclosure documents" via the Internet to prospective franchisees. Among other legal requirements with which Dingo must comply, prospective franchisees must

A) agree to settle any lawsuits that may arise over the documents.
B) be able to download or save all electronic documents.
C) provide e-mail addresses for Dingo to verify users' authenticity.
D) register with the Federal Trade Commission via Dingo's Web site.

Question 9

Jen participates in fantasy football games online by creating a fantasy team composed of real-life players from different teams and competing against teams created by other "owners." Jen pays a fee to the sponsoring site, which awards prizes at the end of the season. This is illegal gambling activity according to

A) a federal court.
B) Congress.
C) ESPN.
D) none of the choices.

Question 10

MartinaCo, which is based in the Netherlands, makes oil pumps. Pooky, a U.S. consumer, is injured in an accident involving a MartinaCo pump, and files a suit against the firm in a Rhode Island state court to recover. The court most likely has jurisdiction over MartinaCo

A) if MartinaCo has sufficient "contacts" with Rhode Island.
B) if MartinaCo is amenable to the suit.
C) if MartinaCo's pumps are in the global "stream of commerce."
D) under no circumstances.

Question 11

Vince gambles online on the outcomes of football games by creating a fantasy team composed of real-life players from different teams and betting a given amount each week on the performances of those players. At the end of the season, the team "owner" with the most points wins the pot. This is illegal gambling activity according to

A) a federal court.
B) Congress.
C) ESPN.
D) none of the choices.

Question 12

Ilsa and Janis agree to a contract. Later, Ilsa alleges that her performance is impossible or at best impracticable because of circumstances unforeseen at the time the contract was formed. Frieda files a suit, claiming breach. In the United States, if the court agrees with Eva, the most likely remedy is

A) damages.
B) reformation.
C) rescission.
D) specific performance.