Deck 55: Contracts and Business Law

Question 1

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.

Answer 1

D

Question 2

Van 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.

Answer 2

D

Question 3

Jack and Jill sign a prenuptial agreement. A court will most likely hold that Jill did not sign the agreement voluntarily if, before signing the agreement, she

A) did not have the advice of independent counsel.
B) followed the advice of independent counsel.
C) refused to follow the advice of independent counsel.
D) refused to obtain the advice of independent counsel.

Answer 3

B

Question 4

Tony Textiles, Ltd. (TTL), is a piecework contract bidder in Europe. Without authorization, TTL accesses the computer system of Upright Clothes, Inc.-TTL's competitor in the United States-to disrupt and destroy Uprught's business. A treaty that may provide mechanisms to stop TTL's activity is

A) the Convention on the Choice of Court Agreement.
B) the Convention on the Use of Electronic Communications in International Contracts.
C) the Cyber-Crime Convention.
D) the New York Arbitration Convention.

Question 5

Dale repeatedly clicks on EZ Online Order Company's ad, which is displayed on Dale's Web site and for which Dale charges EZ a fee based on the number of clicks on the ad. This is

A) an aggressive, legitimate attempt to increase profits.
B) an unethical but legal act.
C) a violation of the implied covenant of good faith and fair dealing.
D) undue influence.

Question 6

Ray and Strip Mines, Inc., enter into a contract for a sale of the coal beneath Ray's land for a fraction of the value of the coal and the cost to restore the land. A court is most likely to determine that this deal is unfair under

A) the concept of unconscionability.
B) the doctrine of promissory estoppel.
C) the principle of freedom of contract.
D) the Statute of Frauds.

Question 7

Topographical Engineers, Inc., which is new to its business, offers its services at less than half their possible market price to United Road Crew Construction, Inc., which knows the services' value. United's decision to accept the offer without commenting on the price could be justified by

A) the concept of unconscionability.
B) the doctrine of promissory estoppel.
C) the principle of freedom of contract.
D) the Statute of Frauds.

Question 8

Ben works for Consumer Industries, Inc (CII). When CII fires Ben, he files a suit against the firm. The court will most likely hold that CII is not liable if

A) Ben's employment is at-will.
B) Ben falls under the protection of a federal or state statute.
C) Ben has an employment contract.
D) Ben quit a previous job and moved to a new city to work for CII.

Question 9

To bid on a job, Budget Construction Company relies on the oral promise of Coldwater Plumbing, Inc., to perform certain work at a certain price. Coldwater fails to per?form. Budget can

A) not recover due to the principle of freedom of contract.
B) not recover due to the Statute of Frauds.
C) recover under the concept of unconscionability.
D) recover under the doctrine of promissory estoppel.

Question 10

Chet repeatedly clicks on Delight Loan Company's ad, which is displayed on E-Search's Web site, with the intent of increasing Delight's ad costs. This is

A) an aggressively competitive, but legal, act.
B) an unethical act.
C) a violation of the implied covenant of good faith and fair dealing.
D) unjust enrichment.

Question 11

Alice and Bob sign a prenuptial agreement that includes a waiver of all support in the case of divorce. A court will most likely hold that this waiver is

A) enforceable according to public policy.
B) enforceable by the financially weaker party only.
C) unenforceable as contrary to public policy.
D) unenforceable by the financially stronger party only.

Question 12

Digital Services Corporation (DSC) promises to hire Ellen. The day before Ellen is to start work, DSC revokes the promise. In Ellen's suit against DSC, the court is most likely to hold that DSC is not liable to Ellen if

A) Ellen's promised employment is at-will.
B) Ellen falls under the protection of a federal or state statute.
C) Ellen has an employment contract.
D) Ellen quit a previous job and moved to a new city to work for DSC.

Question 13

Blanco, S.A., a Chilean firm, and Ciao, Ltd.,, an Italian firm, enter into a contract that includes a clause designating the New York state courts as the forum for resolving disputes under the contract. A treaty that may support this clause is

A) the Convention on the Choice of Court Agreement.
B) the Convention on the Use of Electronic Communications in International Contracts.
C) the Cyber-Crime Convention.
D) the New York Arbitration Convention.

Question 14

Merchandise Presentation Company enters into a contract with Newt to perform certain services for a certain price. Newt is later dissatisfied with what he claims is a low level of service for a high price. Whether this deal is unconscionable is subject to

A) the interpretation of a court.
B) the opinion of the buyer.
C) the position of the seller.
D) the precise definition in UCC 2-302.