LEB 320F All Quiz Exam Questions with
Correct Answers
Which of the following transactions would not be within the scope of Article 2 of the
UCC?
a. A leasing contract for an apartment.
b. Buying a car.
c. Buying a cell phone.
d. A contract to buy coal. - Answer-A. (A lease for an apartment is not within the scope
of Article 2 of the UCC because it is not a contract for tangible, movable goods.)
A baseball team may avoid negligence liability by having an exculpatory clause on the
back of game tickets relieving them of liability to fans struck by foul balls. - Answer-True.
(Although exculpatory clauses are often found to be against public policy, they are
usually enforced for recreational activities.)
A claim arising out of the Americans with disabilities act, which is a Federal statute,
would be a Federal Question case and, therefore, be within a federal district court's
jurisdiction. - Answer-True. (Any case that arises out of a federal statute, such as the
Americans with disabilities act, can be brought in a Federal District court.)
A company can be charged with copyright infringement for simply providing the means
to the actual infringer to commit the infringement. - Answer-True. (This is called
secondary infringement.)
A composition agreement generally involves one creditor accepting a percentage of
what he is owed from two separate debtors. - Answer-False. (A composition agreement
generally involves two creditors accepting a portion of what they are owed from a single
debtor. This is considered binding because, in order to receive any money from the
debtor, both creditors accept only a portion of what they are owed.)
A contract between a Texas corporation and a California corporation, containing a
provision that all litigation regarding the contract will be performed in Maine. The
contract was signed in New York. What state's law should apply under the traditional
view?
a. Texas
b. California
c. New York
d. Maine - Answer-c. (The traditional view is to apply the law of the state in which the
contract was made. Because the contract was signed in New York, New York's law
should apply.)
A contract calling for an action that does not violate a statute can still be found to lack a
legal purpose. - Answer-True. (Even if an action does not have a criminal penalty or
,otherwise violate a statute, a contract for said action can be considered illegal because
the action is contrary to a state's public policy.)
A contract for the sale of corn is not considered a sale of goods, for the purposes of
Article 2, if the corn will be severed from the land by the buyer. - Answer-False. (Under
§ 2-107 of the UCC, a contract for the sale of growing crops or timber is a contract for
the sale of goods, regardless who is to sever them from the land.)
A contract involving a loan will be considered void if the interest rate agreed upon is
above state regulations. - Answer-True. (If interest rates of a loan are above prescribed
state maximums, the contract is considered usury and invalid.)
A contract may be modified without additional consideration under common law. -
Answer-False. (A modification contract— a contract that alters the terms of an existing
contract—typically requires some new consideration in order to be enforceable.)
A contract may be set aside due to unequal bargaining power in certain circumstances.
- Answer-True. (please add why if you had this question)
A contract may sometimes be rescinded if only one party is mistaken as to a portion of
the contract. - Answer-True. (A contract may be rescinded due to a unilateral mistake if
the mistake was apparent, or should have been, to the other party.)
A contract of adhesion is one in which there is a certain amount of bargaining between
the parties used to decide the exact details of the contract. - Answer-False. (A contract
of adhesion is one in which one party has such superior bargaining power it simply
offers a "take it or leave it" contract. This is usually a form contract offered by a
merchant.)
A contract requiring that an illegal action take place is a voidable contract. - Answer-
False. (A contract requiring an illegal act is considered a void contract.)
A contract that takes more than one year to complete doesn't necessarily need to be in
writing in order to satisfy the statute of frauds. - Answer-True. (please add why if you
had this question)
A contract with a third party must exist in order to establish a claim for intentional
interference with business relationships. - Answer-False. (Although the existence of a
binding contract subject to interference is one of the elements of intentional interference
with business relationships, the tort can be claimed to exist if (a) a reasonable
probability that the parties would have entered into a contractual relationship; (b) an
intentional and malicious act by defendant that prevented the relationship from
occurring, with the purpose of harming the plaintiff; (c) defendant lacked privilege or
justification to do the act; and (d) actual damage or loss occurred.)
A contractual right cannot be assigned if which of the following is (are) true?
,a. The terms of the contract expressly prohibit assignment.
b. The contract is "personal" in nature; the right in question involves a substantial
personal relationship between the original parties.
c. The assignment would materially alter the duties of the obligor.
d. All of the above - Answer-d. (These reasons would all block an assignment.)
A copyright is any distinctive word, phrase, symbol, or design adopted for the purpose
of identifying the origin of goods being offered for sale. - Answer-False. (A trademark,
not a copyright, is any distinctive word, phrase, symbol, or design adopted for the
purpose of identifying the origin of goods being offered for sale.)
A copyright is within the scope of Article 2. - Answer-False. (Copyrights fail the
tangibility requirement and, therefore, are not considered goods for the purposes of
Article 2.)
A copyright lasts for the life of the author plus 70 years. - Answer-True. (In 1998,
Congress extended the term of copyright protection to the life of the author plus 70
years. A work for hire copyright lasts for the shorter of 95 years from date of publication
or 120 years from date of creation.)
A corporation can be held criminally liable for any act of its employees. - Answer-False.
(A corporation can only be held criminally liable for acts performed by an employee if
that employee is acting within the scope of his or her authority for the purpose of
benefiting the corporation.)
A court can enforce a promise even though there was no express or implied acceptance
of the contract. - Answer-True. (A quasi-contract, also known as a contract implied-in-
law, is a contract implied regardless of whether the promisee had any intention of
making a contract. The promise is enforce as a matter of equity to ensure that one party
is not unjustly enriched, even though there is no written agreement between the parties.
)
A court enforces an injunction by charging the defendant with contempt of court if the
defendant fails to perform. - Answer-True. (An injunction is typically enforced by the
court holding defendants who fail to perform the court order in contempt of court.)
A court of equity hears all cases that seek equitable remedies, such as injunctions -
Answer-False. (There are no longer courts of equity in most states or in the federal
system)
A court will generally consider the textual context of a statute when attempting to
determine the meaning of an ambiguous statute, prior to taking into account the
circumstantial context of the passing of the statute. - Answer-True. (Courts often
consider the textual context of a statute when trying to interpret the meaning of the
statute prior to considering the circumstantial context of when the statute was passed.)
, A debtor's written promise to pay a debt after the statute of limitations has expired is
enforceable despite lack of consideration. - Answer-True (In such a case, the debt is
said to have been "revived" and the creditor now has a new statutory period in which to
bring suit.)
A deposition is a series of questions sent by one party to the other, which much be
answered under oath. - Answer-False. (A deposition is testimony of a witness given
under oath. Both parties are generally present during the testimony and have an
opportunity to cross-examine the witness.)
A judge who fails to follow precedent set by a higher court will lose his or her position. -
Answer-False. (There is no direct punishment for failing to follow precedent set by a
higher court. It is, though, likely that the judge's opinion will be reversed.)
A jury is, in most civil cases, considered to be a "judge of facts" while the judge is only
the "judge of the law". - Answer-True. (The judge's job in many civil proceedings is to
make sure the jury applies the correct standards in deciding the case and that the
attorneys follow the proper procedures during the trial.)
A majority of consumers say that they had either rewarded or punished companies in
the past year based on their social performance. - Answer-True. (In a recent poll, 51%
of consumers said that they had either rewarded or punished companies in the past
year based on their social performance.)
A merchant's verbal promise to keep an offer open for two weeks, in the absence of
paid consideration, is binding under Article 2. - Answer-False. (Under the UCC's firm
offer rule, merchants can only be forced to hold an offer open if the offer to keep it open
is written.)
A minor can disaffirm a contract even after both parties have executed their portion of
the contract. - Answer-True. (Contracts that have been fully performed before the
disaffirmance takes place can still be repudiated. Contracts that have not been
performed are typically easily avoided by the minor.)
A minor can receive a full refund is she disaffirms a contract for necessaries. - Answer-
False. (The rule applicable to contracts calling for the purchase of necessaries is that
the minor is liable to the other party for the reasonable value of the goods actually
used.)
A party may file for a motion for judgment notwithstanding the verdict (also known as a
J.N.O.V.) only prior to filing an answer. - Answer-False. A J.N.O.V. or JMOL (judgment
as a matter of law) may only be filed following a jury verdict. A motion to dismiss is filed
prior to filing an answer.
