Business Law Practice Questions Source:

pdf MULTIPLE CHOICE (answers at bottom of page) 1. Paul filed a lawsuit for false imprisonment against Dan’s Bookstore. During a visit to Dan’s Bookstore, Dan stopped Paul as he left the store. Dan accused Paul of stealing a book from the store. After briefly looking into Paul’s shopping bag, Dan determined that Paul did not shoplift. He apologized to Paul and released him. On these facts, Dan will likely:

a. win the case, because the shopkeepers’ privilege statute gives store merchants unconditional immunity (protection) from such lawsuits. b. lose the case, because Paul did not shoplift. c. win the case, but only if a court or trier of fact concludes that Dan had reasonable cause to believe Paul may have shoplifted, detained him for a reasonable time, and in a reasonable manner. d. lose the case, because Dan did not have a warrant.
2. Bonds wrote McGuire, “I will sell you my house and lot at 419 West Lombard Street, San Francisco, California for $950,000 payable upon merchantable deed, deal to be completed within 60 days of the date of your acceptance.” Assuming that Bonds’ letter contains terms which are deemed sufficiently certain and definite, which of the following statements is correct?

a. Bonds’ letter is not an offer unless Bonds intended it to be an offer. b. Bonds’ letter is not an offer unless McGuire thought Bonds intended to make an offer. c. Bonds’ letter is an offer if a reasonable person with full knowledge of the circumstances would be justified in thinking it was intended as an offer.. d. Bonds’ letter is not a offer unless both Bonds and McGuire considered it as an offer.
3. Iverson Jewelers wrote a letter to Miller, “We have received an exceptionally fine self winding Rolox watch which we will sell to you at a very favorable price.”

a. The letter is an offer to sell. b. A valid offer cannot be made by letter. c. The letter contains a valid offer which will terminate within a reasonable time. d. The letter lacks one of the essential elements of an offer.
4. Don was negligently driving south on Merdock Avenue when his car rear-ended a car driven by Patty. The force of the impact forced Patty to rear-end Terry’s car. In turn, the force of the second impact caused Terry’s car to hit a lamppost, which then fell on a house owned by Paul. The force of the impact scared Paul, causing him to immediately have a heart attack. Paul suesDon for negligence. If Paul recovers, the most likely reason is:

In a strict product liability tort action against Ajax. b. Back-Talk Computer Store offerd to sell five (5) computer servers to Gatekeeper Company for $5. Paul was able to prove that the damages he suffered were actually caused by Don. c. A contract was created. After he finished drinking the Sipep. which of the following statement is most accurate? Assume the UCC applies and the statute of imitations for oral contracts is two years and for written contracts is four years. among other things. Bill noticed that the can contained dead insects stuck on the inside bottom of the can. Which of the following is true regarding Back-Talk's offer? a. b. Back-Talk's offer was accepted by Gatekeeper . Bill must prove. Larry failed to pay Sammy the $400. 5.000. b & c).00 each. Paul was able to prove that Don breached a duty of due care owed by Don to Paul. May 2. delivery to be on May 30. d. c. b. payable upon delivery. c. d. Later that day (May 1). Under which of the following situations does strict product liability apply? a. Paul was able to prove that Don proximately caused Paul’s injuries. c. c. Neither (a) nor (b) are correct. Paul was able to prove all of the above (a. A contract was created but likely not enforceable because the statute of limitations has expired. b. No contract was ever created between Sammy and Larry. Ajax knew or should have known of the defective condition. that: a. Ajax is a merchant selling Sipep. Ajax actually placed the dead insects into the can. Gatekeeper's additional term became part of the contract. Both (a) and (b) are correct. Bill purchased a can of Sipep from the Ajax Minimart. 7. On May 1. but it is only enforceable if it is in writing. Gatekeeper responded that it would buy the computers only if they were delivered within three business days. After eight years had passed following the delivery and acceptance of the car by Larry. Sale of a defective and unreasonably dangerous product. Back-Talk notified Gatekeeper the next day. a. There is no contract between Back-Talk and Gatekeeper. so Back-Talk is obligated to deliver the goods within three business days. However. Ajax had prior notice of other similar problems with Sipep products.a. 8. Sammy agreed to sell and Larry agreed to buy Sammy’s car for $400. Sammy sued Larry in state court for failure to pay him the $400. d. Based only on the above stated facts. A contract was created and is enforceable. that it would not be able to deliver the goods within the time requested by Gatekeeper. d. 6. Manufacture of a defective and unreasonably dangerous product. b. Sammy delivered and left the car with Larry.

Contracts for the sale of an interest in personal property. Masse sent a written acceptance to Eckerly via Masse’s personal messenger. mailed a written offer to Masse for the sale of an office building. On May 1.m. Donny missed Sally. but not battery. In most states the following types of contracts are within the statute of frauds. On June 30. 12. Eckerly refused to honor the acceptance. a. informing him that the acceptance had been delivered one day late. However. 2005 if the acceptance was not delivered into the hands of the offeror by the expiration date. 9. Civil Law. However. intending to injure her severely. 10. Donny will be liable for assault and for battery. 2005. c. b. 2005.d. Sally sued Donny for assault and battery. Gatekeeper may later accept Back-Talk’s May 1 offer if it is then willing to accept delivery in four weeks. The offer included an express term that it would expire on June 30. 2005 at 8:00 a. As a result.. Donny threw a knife at Sally. d. The Uniform Commercial Code. d. However. Contracts that can be performed within a year from the date of their formation. Donny will not be liable for either assault or battery because this is only a criminal matter. Contracts for the sale of goods. b. Sally saw the knife just as it whizzed by her head. As a result. Eckerly Realty Inc. Donny will be liable for assault. The body of law which establishes rights between persons and provides for redress for violation of those rights is known as: a. b. Which of the following is the most correct statement? a. if Masse would have mailed . Sally was very scared. c. Contract sfor the sale of goods for a price of $500 or more. There is no contract between Eckerly and Masse. Which of the following is most correct? a. missing it by about one inch. Criminal Law. On July 2. Stare decisis. d. 2005. but not assault. c. the messenger was not able to deliver the acceptance until July 1. 11. Donny will be liable for battery. Eckerly contacted Masse.

a contract would have been created. a contract was formed because acceptances are valid immediately upon dispatch. through June 30 th. The fact that the acceptance arrived only one day late is of no significance. Nevertheless. c. Upon receipt of Dave’s notice. to be effective beginning January 1st. 13. stating that he would vacate the rental unit at the end of the thirty days. The reasonable person standard varies from person to person. d. The moment that Masse gave the acceptance to the messenger. 2005. He gave Paula a 30-day written notice. Dave decided that he did not like the apartment.the acceptance on June 30. misrepresentation. There is no contract between Eckerly and Masse. There is a contract between Eckerly and Masse. Paula and Dave signed a one-year lease. A person with a mental disability must act as would a person with the same mental disability. which was April 30th.000. 14. none of the above. Paula rented an apartment to Dave for $500 per month. because Dave did not have a valid . After three months. or $4. Robert makes the following statement while negotiating the sale of his car. d. 15.” His statement may support a claim for: a. for one year. Paula sues Dave in small claims court. Paula is entitled to the balance of the lease. b. A person with a physical disability must act as would a reasonable person with the same disability. Which of the following statements is correct concerning the "reasonable person" standard in tort law? a. b. b. c. the apartment remained vacant from May 1 st. fraud. c. Paula made reasonable efforts to find a new tenant. Paula re-rented the apartment beginning July 1 st. fraud and misrepresentation. The reasonable person standard focuses on the defendant’s subjective mental state rather than on the defendant’s behavior. d. What is the likely outcome? a. There is a contract between Eckerly and Masse. “This is the sharpest car on the market.

d 12. b . d 13. Tom and Jerry entered into a contract whereby Tom agreed to sell Jerry $1. d 15. void contract. c. b. d 4.reason to breach the contract. Paula is entitled to $500. c 2.000 worth of heroin. an illegal substance. b 11. d. secondary party beneficiary contract. because Dave gave Paula thirty-days written notice. a 7. voidable contract. a 9. but was unable to re-lease the apartment until July 1 st. c 3. c 14. c 16. c 8. b. This is an example of a: a. d.000. because she tried to find another tenant immediately upon learning of Dave’s intent to breach the contract. b 10. Revised: 01/06Answers to Business Law Practice Questions 1. 16. which represents one-month’s rent. quasi contract. d 5. b 6. c. Paula is entitled to $1. Paula is entitled to nothing.

What happens next? (A) The law is void and any person of any age can buy beer. Which of the statements below most accurately describes the intentions of the framers with respect to whether the Supreme Court should be given the power to invalidate acts of Congress? (A) Some delegates thought that the Court should have the power to strike down acts of Congress inconsistent with natural law.htm 1. Boren. Law) Doug Linder Source: http://law2. In Craig v. (B) Eighteen-year-old men are free to buy beer. but required men to be 21 to purchase beer. (D) All of the above statements are true.2 beer. but the Oklahoma legislature would be free to raise the . the Court struck down Oklahoma's law which allowed 18-year old women to buy 3. even where no constitutional provisions had been violated. (C) Many delegates probably never gave the issue of judicial review serious consideration because they thought it unlikely that Congress would ever act (B) Some delegates believed that the Court should not be given the power to invalidate acts of Congress.SAMPLE MULTIPLE CHOICE QUESTIONS (Con. 2.umkc.

(C) Strong . The regulation is based on evidence that the incidence of serious health problems increases markedly in the mid-60's. what would you say about the chances of successfully challenging the ordinance on constitutional grounds? (A) Weak . F. 8. The U.A.A. (C) Education is a fundamental right and Texas could not show that the statute was narrowly tailored.the Court will probably strike down on equal protection grounds unless the city also licenses most other businesses. 4. regulations prohibit commercial airlines from employing as pilots persons over age 60.age for everyone to 21.A. This F. 3. and any attempt by Oklahoma to raise the age to 21 for everyone would be unconstitutional. 6.the Court will probably strike down on "right of privacy" grounds. (D) The group has been the victim of discrimination in the past.A. (B) Alienage is a suspect classification and Texas could not show it had a compelling interest. (D) Eighteen-year-olds are free to buy beer. Doe. (D)Fairly strong . (C) The group perceives itself as inferior to other groups in society. the Supreme Court held that Texas may not deny a free public education to the children of illegal aliens. A city adopts an ordinance requiring the operators of massage parlors to receive licenses from the city. (C) The law remains enforceable as written until the Oklahoma legislature decides whether to raise the minimum age to 21 for everyone.the court will probably apply middle-tier scrutiny since sex is involved.S. regulation could be described as: (A) Primarily underinclusive (B) Primarily overinclusive (C) Equally overinclusive and underinclusive (D) Lacking a rational basis 7. In the absence of more complete information.the Court probably will uphold after applying rational basis test. Constitution has as its most significant purposes -(A) Conferring power on national and state governments (B) Conferring power on the national government and limiting the power of national and state government (C) Limiting the power of national and state government (D) Conferring power on national government and limiting the power of national and state governments and private individuals 5. (B) Strong . (B) The group lacks significant social contact with groups holding most political power. In Plyler v. Which of the laws below would be least likely to raise a significant substantive due process issue under the analysis used in Griswold and Roe? . How did the Court justify its decisions? (A) The statute lacked a rational basis. (D) The Court held for the aliens on procedural grounds. Which of the following was not identified by the Supreme Court in the Carolene Products case to be a factor which may justify more careful scrutiny of a statute that disadvantages a minority group? (A) The group is underrepresented in the political process.

Which of the following theories about the applicability of the Bill of Rights to the states can be said to have emerged victorious? (A) The "No Incorporation" theory (B) The "Selective Incorporation Plus" theory (C) The "Total Incorporation" theory (D) The "Total Incorporation Plus" theory 11. 10. (C) Congress can subtract from the Supreme Court's original jurisdiction. (B) The Court has been sympathetic to claims of indigents when the state imposes a substantial fee before it confers an important benefit. (C) Prohibits the quartering of soldiers in private homes. but it can't add to it. (D ) Indigency has been recognized as a quasi-suspect classification. (D) Congress can make "any exceptions" to the Supreme Court's jurisdiction it desires. but it can't subtract from it. Which of the following statements best describes the process of ratification of the Constitution? (A) Ratification probably would not have occurred without the promise to swiftly propose a Bill of Rights. author of The Federalist papers. As interpreted by the Supreme Court in Marbury.S. which of the following statements can be made about Art. 12. (B) Ratification was a foregone conclusion given the stature of those attending the Philadelphia Convention. (B) Imposes a specific limitation on the power of the states to intrude into matters of privacy. 13. (E) Ratification would probably not have occurred if not for bribes paid to state legislators in key states. and his consistently treated statutes denying benefits to indigents to rational basis review. Constitution (A) Repeals the Seventh Amendment. . (B) Congress can add to the Supreme Court's original jurisdiction. but the Court has been unwilling to use the equal protection clause to help indigents achieve a minimum standard of living. III.(A) a law prohibiting marriage between cousins (B) a law establishing grounds for termination of parental rights (C) a law prohibiting sodomy between consenting adults (D) a law prohibiting indecent exposure 9. (D) Ratification occurred largely because opposition to the Constitution was weak and disorganized. The Ninth Amendment to the U. (C) The Court has been particularly unreceptive to claims based on indigency. and the level of scrutiny is similar to that used in gender cases. (E) The Court has stated that it will use a “sliding scale” analysis in cases involving indigents. (C) Ratification became possible only because of the efforts of George Washington. (D) Provides that the specification of rights in the first eight amendments isn’t meant to be exhaustive. Congress can neither add to it nor subtract from it. (E) Guarantees that states shall have powers not delegated to the Federal Government. Which of the following statements most accurately describes how the Court has treated statutes that disadvantage indigents? (A) Indigency is a suspect classification triggering strict scrutiny. 2? (A) The original jurisdiction of the Supreme Court is set by the Constitution.

(E) Both (C) and (D) are false. Which of the following statements about the Takings Clause is not accurate? (A) The government generally may take private property. Which of the following has not been advanced as a major justification for the state action requirement? (A) Equality (B) Liberty (C) Pluralism (D) Principles of federalism 19.14. Which of the following is probably the weakest argument to use in a constitutional challenge to the law? (A) Mentally retarded persons have the attributes of a “discrete and insular minority” and should be treated as a “suspect class”. (B) Whether the government has interfered with investor-backed expectations. 18. (D) The character of the government action. given the Court’s decisions in the “right to travel” cases? (A) A gasoline tax. (D) The actions of a private firm hired by a state to collect delinquent taxes. (B) The operation of a parking ramp. Which of the following governmental actions is most likely vulnerable to successful constitutional challenge. 15. Which of the following has not been identified by the Court as a factor to consider in deciding whether a taking has occurred? (A) The value of the property involved. (E) A law limiting public housing to persons who have lived in the state for at least one year. (D) The Supreme Court has not held the Takings Clause violated in over three decades. 17. so long as it pays just compensation. (C) The right to bear children and raise a family is a fundamental right triggering strict scrutiny of the classification involved. (C) The value of the property before the government action compared to its value after the government action. (C) The Takings Clause applies only to real property. (C) The actions of a volunteer fire department. not personal property. 16. Assume a state passes a law requiring all uneducable mentally retarded persons (defined with reference to scores on a standardized exam) to be sterilized at age 15. . (B) Highway tolls. (B) The law violates the mentally retarded persons’ right of privacy protected in Griswold and Roe. (C) Denial of passport. Which of the following is most likely to be found to be state action under the “Public Function” Doctrine? (A) The maintenance of a private amusement park such as Disneyland. (B) Private property may not be taken by the government for a private use. (D) A law requiring state employees to reside in the state.

A notice was left on Amanda's front door informing her of the dog’s capture and warning her that the dog must be claimed within three days. she arranged to have a friend look after Rehnquist and Brennan. S.. city law provides that the dog is to be “sold or disposed of in some other manner. The morning after Amanda left on her vacation. The dogs were kept in the Angst back yard. Jake grabbed his rifle and walked out to his front porch. (B) The Court will generally accept state supreme court interpretations of state statutes. (C) He was concerned about having cases decided by the “gut feelings” of judges. The law requires that when the name of the dog’s owner is known (as where the dog has identifying tags). Jake fired his gun at Brennan. killing the dog instantly. Rehnquist and Brennan. Delightful Meat Products. Rehnquist was never heard from again. Brennan and Rehnquist traveled down the road to the Nelson family residence. and shortly thereafter Rehnquist and Brennan escaped. Dogs found unleashed are to be brought to the kennel and maintained there until claimed by their owner. 21. of course. he was sold to a Mill Valley business. noted the arrival of two large dogs with great alarm. Jake called the Mill Valley police and told them about the incident and of the presence of a second dog. Jake thought threateningly) in the direction of his two-year old. When Rehnquist was not claimed within the period specified by law. Jake Nelson. (C) The Coiurt will not agree to decide a constitutional question when the state court decision below is supported by an independent and adequate state ground. Before Amanda left on a seven-day trip. Upon leaving Amanda's property. (D) He wanted to annoy Justice Frankfurter. Jake’s two young daughters were playing in the yard and he feared for their safety. A mill Valley ordinance provides that all dogs must either be on a leash or on enclosed private property. The city inspector entered the back yard by opening a latched gate. which was surrounded completely by a high fence. When Amanda’s friend stopped by the next day to feed the dogs. Justice Black argued that the Fourteenth Amendment “absorbed” the specific guarantees of the Bill of Rights and no more because: (A) The Bill of Rights contains the most fundamental guarantees of liberty. After the shooting. The friend assumed that Amanda must have decided to take the dogs with her or left them in a kennel. the inspector neglected to latch the gate securely. the dog is returned to the owner after payment of a $100 fine. for $15. Amanda was greatly distressed to learn of the fate of her two pets. The city dogcatcher was dispatched to the Nelson residence. Inc. Rehnquist was apprehended and brought to the City Kennel. with whom he had a long-lasting feud. the gate was latched (apparently blown shut by the wind) and the back yard was.” If claimed. Brennan began to bark and move (some would say playfully. (B) He was told that was the purpose of the Amendment by one of its framers. dogless. . (22-23. If a dog is not claimed after three days. a Mill Valley city weed inspector visited her property. the Court will not reach constitutional issues. no lover of dogs.) Amanda owned two collies.00. After their escape. She would like to sue Nelson and Mill Valley. Which of the following rules of constitutional interpretation is NOT generally followed by the U. Upon her return from her trip. the owner is to be notified by mail of the dog’s capture and informed that he has three days in which to claim the dog. (D) The Court is generally more reluctant to overrule one of its own precedents decided on constitutional grounds than one of its precedents decided on statutory grounds. At that instant. Rehnquist wore a name tag which identified him as the property of Amanda. Supreme Court? (A) As a general rule.20. if a case can be decided on statutory grounds.

" bringing Nelson's actions under the Constitution. 19. What is the likely resolution of Amanda’s suit against Nelson for "deprivation of property without due process"? (A) It will be dismissed because Nelson is not a state actor. 13. 20. 6. 11. Nelson would be seen as "a joint participant" in the constitutional violation.Amanda sues Nelson and the City of Mill Valley. (B) Because the dog's release was caused by a state actor. alleging that she has been deprived of her constitutional rights under color of state law. 15. (C) It is a close question whether Nelson’s action will be found to be state action. (E) Rehnquist was entitled to a jury trial prior to his sale or disposal. 3. What is the best constitutional argument Amanda has in her suit against Mill Valley? (A) Selling Rehnquist to a meat product company is cruel and unusual punishment. 17. 10. 14. D B A B A B C D A B A B D E A D A A D C D A D . 2. 22. 16. 5. 8. is a "public function. (B) Capturing Rehnquist and taking him to the kennel was an unlawful seizure. 9. (C) The failure of the city to turn over to Amanda the $15 sale price of Rehnquist to Amanda constitutes a taking. 18. 23. 21. (D) City laws authorizing the sale or disposal of captured dogs fail to provide adequate process. 23. 4. 7. Answers: 1. 12. since normally a job performed by city animal control personnel. (C) Dealing with loose pets. 22.

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