Deck 32: Part III: The Commercial Environment

Question 1

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.

Answer 1

A

Question 2

Bonnie contracts to deliver a crop of soybeans to Farmers Co-op.A tornado destroys the crop on her farm.The buyer insists that she deliver by acquiring soybeans on the open market.She claims that this is prohibitively expensive.Her best argument against enforcing the contract is

A)frustration of purpose.
B)objective impossibility of performance.
C)anticipatory repudiation.
D)commercial impracticability.

Answer 2

D

Question 3

Hamidi,a coffee farmer in Kenya,forms an alliance with Guthrie,an importer and marketer in Ireland.Their products carry a Fair Trade label.This means that Hamidi

A)accepts whatever price for his products that the market will bear.
B)produces crops with genetically modified organisms.
C)puts children to work whenever possible.
D)uses environmentally sustainable farming methods.

Answer 3

D

Question 4

Dale's debts are discharged in a liquidation bankruptcy.With respect to Dale's prebankruptcy debt,Even Stevens Credit Reporting Agency must automatically report

A)nothing.
B)the debt as "discharged," except the nondischargeable debt.
C)the debt as "discharged," including the nondischargeable debt.
D)the debt as "unpaid."

Question 5

Sports Fit Company sponsors the "$100,000 Game" in which contestants compete in ten separate athletic events over a period of weeks.Sports Fit announces that the winner of each event will be awarded $5,000 with the "Ultimate Champion"-the winner of the most events-awarded $50,000.If the "$100,000 Game" is treated as a unilateral contract,Sports Fit can

A)cancel the contest or alter its terms at any time.
B)not modify the terms of the contest after it begins.
C)reduce the amount of the event prizes but not the grand prize.
D)reduce the amount of the grand prize but not the event prizes.

Question 6

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 7

The Anti-Counterfeiting Trade Agreement is most likely to establish an international governing body to be

A)subject to the World Intellectual Property Organization.
B)under the auspices of the World Trade Organization.
C)part of the Internet Corporation for Assigned Names and Numbers.
D)separate and distinct from existing groups.

Question 8

Iowa enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include killing and maiming the image of a human being." Gamemakers file a suit against the state to block the statute's enforcement.Based on the decision of a California court in a case involving a similar statute,the court in this case is most likely to rule that the statute

A)extends restrictions on sex-based content to violence in video games.
B)violates the First Amendment's guarantee of freedom of speech.
C)imposes market-share liability on makers of violent video games.
D)replaces the voluntary rating system currently in use.

Question 9

California caps noneconomic damages in medical malpractice cases at $250,000.California and other states hope that such limits will reduce health-care expenditures by reducing

A)the frequency and severity of medical malpractice claims.
B)the frequency and severity of occurrences of medical negligence.
C)the number of legal and financial personnel,including attorneys.
D)the size of medical staffs,including "nonessential" personnel.