B. Law 265
Spring
2008
Exam
#2, April 8, 2008
This exam contains 50 questions. Each question
is 2 points. The exam and its answer key will be posted on www.cbe.uidaho.edu/wegman one
hour after the end of the exam. Go to “Test Bank of Old Exams” on the B. Law
265 section of the website. Refresh the page. If you disagree with the answer key, or you
have a question or comment, please email Professor Wegman at Wegman@uidaho.edu. You must include “exam” and the
question number in the subject line of your email. Feed-back will be
considered and may result in modification of the answer key, if received by
11:00 AM Wednesday.
1.
What is the purpose of punitive damages?
a. To punish the offender only.
b. To deter others from committing similar offenses only.
c. To reimburse a plaintiff for his or her losses only.
d. To punish the offender and to deter others from committing similar
offenses.
2.
Which of the following is a legal doctrine that has been adopted by
courts that aids plaintiffs in establishing negligence claims and recovering
the greatest amount of damages?
a. Res ipsa loquitur.
b. Assumption of risk.
c. Contributory negligence.
d. All of the above.
3.
Under which of the following will the court or jury determine the
percentage of the fault of the defendant and the percentage of the fault of the
plaintiff?
a. Assumption
of risk.
b. Contributory negligence.
c. Comparative negligence.
d. Res ipsa loquitur.
4.
What are the three independent branches of the federal government, that
are supposed to “check and balance” one another?
a. Legislative, executive, and judicial.
b. Legislative, commerce, and safety.
c. Commerce, safety, and law enforcement.
d. Executive, safety, and law enforcement.
5.
You have been asked to become one of
three general partners in a new limited partnership business. You are
concerned about the issue of your personal liability for the debts of this
business. Which of the following statements about your personal liability
is true?
a.
Your personal liability will be the same as that of all the other partners in
the business.
b. Your
personal liability will be greater than that of some partners and the same as
that of other partners in the business.
c. Your
personal liability will be greater than that of all the other partners in the
business.
d.
Your personal liability will be less than that of all the other partners in the
business.
6.
Under workers’ compensation law, an injured worker will generally receive
compensation:
a. Only
if the worker was not at fault in causing the accident that resulted in the
injury.
b.
Only if a co-worker was at fault in causing the accident that resulted in the
injury.
c. Only
if the worker himself/herself was at fault in causing the accident that
resulted in the injury.
d. Regardless
of who was at fault in causing the accident that resulted in the injury.
7.
Under the Civil Rights Act of 1964, an employer can be successfully sued for
“quid pro quo” sexual harassment when:
a. Sexual
remarks and vulgar behavior of co-workers becomes unbearable to the victim
b.
A supervisor tells a worker under her supervision that if he will have sex with
her, she will recommend him for promotion
c. The
employer regularly promotes only men, where there are equally competent women
available for promotion
d.
In all of the above cases, the employer can be successfully sued for “quid pro
quo” sexual harassment.
8.
Joe was angry with Tom because Tom is now dating a woman who dumped Joe
last year. When Joe sees Tom in the street, he sneaks up behind Tom and
punches Tom in the head. The force of the blow would normally only have
given the victim a headache and a bruise. However, Tom had a pre-existing
condition consisting of a very thin skull, as thin as an eggshell. As a
result, Tom’s skull was crushed and he almost died. If Tom had a normal
skull, the damages that would have resulted would have equaled $2,000.
But because of Tom’s pre-existing condition Tom’s damages were $500,000.
If Tom sues Joe, Joe’s financial liability will probably be:
a. $500,000 because a defendant
generally takes the risk that his victim has a pre-existing condition.
b. $500,000 but only if Joe
knew about Tom’s pre-existing condition.
c. $2,000 but only if Joe did not
know about Tom’s pre-existing condition.
d.
Two of the above are correct.
9.
Arbitration most often comes about as a result of:
a.
A post-dispute agreement contained in a contract.
b.
A pre-dispute agreement contained in a contract.
c. A
lack of agreement between the parties as to whether to litigate the dispute.
d.
A statute that requires arbitration in all cases involving $2,000 or less.
10. Under workers’ compensation statutes’ “exclusive remedy”
rule, a worker injured on the job:
a. Can
bring a tort lawsuit against the employer and also against other parties.
b. Can
bring a tort lawsuit against the employer only.
c. Can
bring a tort lawsuit against other parties only.
d. Can
bring a tort lawsuit against no one, because receiving workers’ compensation
benefits is the only remedy the injured worker has.
11.
Undue influence usually requires:
a.
An improper threat of economic harm.
b.
A threat of bodily harm.
c.
A relationship of trust.
d.
An influential party such as a government official or a very wealthy individual.
12.
You own a gas station in Moscow, Idaho. Every Monday you drive over to
your competitor, AAA Gas, and see what AAA is charging. You price your
gas at exactly that same amount. All the other gas stations in Moscow do
the same thing, and so gas prices in Moscow are exactly the same. You all
do this independently, without discussing it among yourselves. What
provision of the Anti-trust Acts have you violated?
a. Sherman Act Sec. 1
which outlaws “contracts, combinations and conspiracies” that restrain trade.
b. Sherman Act Sec. 2,
which outlaws monopolies.
c. Price
fixing, outlawed as a “per se” violation of the Clayton Act.
d. None
of the above; you have done nothing illegal.
13.
Which of the following contracts is not required to be in writing under the
Statute of Frauds?
a. A
contract to be performed in ten months.
b. A
contract involving the sale of land.
c. A
contract for the sale of goods of $600.
d. A
contract to pay someone else's debt if they fail to.
14.
Bob, an employee of Risky Manufacturing, Inc. is accidentally injured while
working his shift. Under workers' compensation, Bob can:
a. Sue Risky in court, or seek
workers' compensation recovery, but not both.
b. Sue Risky in court, and seek
workers' compensation recovery.
c.
Recover from Risky only workers' compensation.
d.
Recover nothing from Risky if Bob was at fault in allowing the injury to occur.
15.
Two supermarkets in the same town get together and agree to charge $3.00 for a
gallon of milk, which is a fair price. This action is:
a.
Horizontal price fixing.
b.
Vertical price fixing.
c. Legal, because the price agreed
upon was fair.
d.
Two of the above are correct.
16.
A disadvantage of the sole proprietorship form of business is:
a. The
difficulty and cost of formation.
b.
The unlimited liability of the owner for the business's debts.
c.
The sharing of management authority by the owner with others.
d.
The difficulty the owner has in transferring ownership to others.
17.
When a general business partnership fails, general partners:
a.
May lose their investment.
b.
May be required to pay partnership debts from their own personal assets.
c.
Neither (a) nor (b).
d.
Both (a) and (b).
18.
Under workers compensation law, a worker will receive compensation for work
related injuries even if those injuries were caused by that worker’s own negligence.
a.
True.
b.
False.
19.
The following is true of a criminal trial:
a.
The defendant bears the burden of proof.
b.
The burden of proof is "a preponderance of the evidence".
c.
The burden of proof is "beyond a reasonable doubt".
20.
Which form of business organization most
limits personal liability for its owners?
a. Sole proprietorship.
b. General partnership.
c. Corporation.
d. They all share this attribute equally.
21.
In Idaho, Small Claims Court may provide the following kind(s) of relief:
a. A
judgment for money.
b. A
simple divorce.
c. Resolve
a dispute over the legal border of real estate.
d. All
of the above.
22.
The burden of proof in a civil case is
known as:
a. The
preponderance of the evidence.
b. Proof
beyond a reasonable doubt.
c. Proof
beyond a shadow of a doubt.
d. Clear
and convincing proof.
23.
Law enforcement officers may conduct a
physical search of a person’s property but not notify that person until later,
under the authority of what statute?
a. Federal
Crime Prevention Act.
b. Racketeer
Influenced and Corrupt Practices Act (RICO).
c. Fourth
Amendment of the U.S. Constitution.
d. USA
Patriot Act.
24.
The Age Discrimination in Employment Act
prohibits discrimination in employment against persons who are what age or
older?
a. 30 years.
b. 40 years.
c. 50 years.
d. 60 years.
25.
A private plaintiff (as opposed to the government) who brings a successful
antitrust lawsuit may recover:
a. Treble damages.
b. Court costs.
c. Attorneys fees.
d. All of the above.
26.
Attempts by a manufacturer to enforce control of the retail resale prices of
its products is called:
a. Lateral price fixing.
b. Horizontal price fixing.
c. Vertical price fixing.
d. Triangulated price fixing.
27. Recently, the only two satellite radio
companies in the USA wanted to merge.
This would leave the USA with only one satellite radio company. The U.S. Department of Justice (DOJ) was
required to either approve or disapprove this proposed merger. The DOJ decided
that the proposed merger did not violate
Antitrust law, and it approved this merger.
The basis for this decision was that:
a.
The relevant product was all satellite radio service.
b.
The relevant product was all radio service.
c.
The relevant product was irrelevant, because entertainment is exempt from the
Antitrust laws.
d.
The relevant product was irrelevant, because satellite radio is a new,
innovative service.
28. Jack Jones was very drunk on whiskey. While
he was drunk, Jack entered into a contract with Sam, who sold Jack a used car. Jack
did not understand this transaction, because of his intoxication. This contract is:
a.
Not voidable by Jack since his intoxication was purely voluntary.
b.
May be voidable at the option of Jack.
c.
Not voidable by Jack because he was only drunk on whiskey, a legal product.
d.
Voidable either by Jack or Sam.
29. Acme
seeds has monopoly power in seeds. If Acme
Seeds, Inc. refuses to sell its seeds to farmers unless they also agree to buy
fertilizer from Acme, this is an example of a(n):
a. Requirements contract.
b. Tying contract.
c. Exclusive dealing contract.
d. Seedy agreement.
30. The
Occupational Safety and Health Administration (OSHA) imposes on employers a
general duty to:
a. Prevent workplace hazards that may cause death or serious injury.
b. Keep a log of all work-related deaths, injuries and illnesses.
c. Report on-the-job fatalities and injuries that require hospitalization.
d. All of the above.
31. Which
of the following is NOT required, in order to establish a case based on
negligence?
a. Harm to the plaintiff.
b. Intent to cause harm to the plaintiff.
c. Duty of care owed to the plaintiff.
d. Proximate cause.
32.
In a criminal law case, under the Fourth Amendment to the U.S. Constitution,
law enforcement may not conduct:
a. Any
searches or seizures of individuals’ real or personal property.
b. Any
searches or seizures of individuals’ real property only.
c. Any
searches or seizures of individuals’ personal property only.
d. Any
unreasonable searches or seizures of individuals’ real or personal property.
33.
Susan, age 53, is Tom’s supervisor at a large national corporation. Susan
tells Tom, age 23, that if he will have sex with her, she will reward him with
a raise in pay. Susan has committed:
a.
Quid pro quo sexual harassment.
b. Sexually
harassing environment sexual harassment.
c. No
violation, because the “victim” is not female.
d. No
violation, because reasonable “fraternization” among employees is acceptable.
34.
The Statute of Frauds requires a writing that is signed by which party or
parties to a lawsuit?
a. The
plaintiff.
b. The
defendant.
c. Both
the plaintiff and the defendant.
d. Neither
the plaintiff nor the defendant, if the contract is for the sale of land where
the price is $500 or less.
35.
Alpha Co. and Delta Corp. are the two leading discount electronics firms
servicing South Dakota and Nebraska. Because the stiff competition between the
two firms has led to greater advertising expenses and other distribution costs,
the firms decide to form an agreement under which Alpha will retail its
products only in South Dakota and Delta will retail its products only in
Nebraska. This agreement violates:
a.
Section 1 of the Sherman Act.
b.
Section 2 of the Sherman Act.
c.
Section 7 of the Clayton Act.
d.
The agreement is legal because is does not require anti-competitive behavior.
36.
John was walking along a sidewalk and was injured by a barrel of beer that fell
from a window on the third floor of the defendant's brewery. What legal
theory is available to John that will provide the most help to him in
recovering damages?
a.
Res ipsa loquitur.
b.
Strict liability in tort.
c.
Assumption of risk.
d.
Negligence per se.
37.
When all parties have fully performed their duties under a contract, the
contract is:
a.
Executory.
b.
Voidable.
c.
Executed.
d.
Void.
38.
The Parol Evidence Rule:
a. Allows
for the early release of prisoners.
b. Is
a form of pardon.
c. Prevents
oral evidence from being considered that clarifies an ambiguous written
contract.
d. Prevents
oral evidence from being considered that contradicts a written contract.
39. All the gas stations in Smalltown agree to
charge the same price for gas. The owners of the various different
companies get together every Friday in a coffee shop to decide what the price
will be the next week. This is a violation of:
a.
Sherman Act, Section 1.
b.
Sherman Act, Section 2.
c. Robinson-Patman Act.
d.
All of the above.
40. Moon,
Inc. is a company that develops, manufactures and sells digital storage
equipment. Moon is very well managed, and it consistently stays ahead of
its competition due to innovation and efficiency. As a result, it has
acquired and held a market share of 95% in the products it sells. Moon
has not abused its market power, but a small competitor, Star, Inc. has sued
Moon alleging a violation of the Sherman Act. Is it likely that Star will
succeed in this suit?
a.
Yes, a market share of 95% indicates monopoly power in violation of the Sherman
Act.
b.
Yes, Moon is in violation even though it has not abused its monopoly power.
c.
No, Moon is not in violation because it has not abused its monopoly power.
d.
Two of the above are correct, a and b.
41.
Mindy purchased a stereo when she was 16 years old. Mindy has used the stereo
for a year, and she now wants to avoid the contract. (For purposes of
this question, you may assume that 18 is the age of majority.) Under these
facts, and applying the rule used in the majority of states:
a. Mindy can disaffirm the
contract, but she must do so before she turns 18.
b. Mindy can disaffirm the
contract, but she must pay for any depreciation to the stereo.
c. Mindy can disaffirm the
contract, and the seller must repay all money paid by Mindy.
d.
Mindy can not disaffirm the contract.
42.
A victim of a breach of contract is under a legal duty to take reasonable
measures to avoid or to reduce the loss caused by a breach of contract. This
rule is called:
a.
Anticipatory damages.
b.
Contractual damages.
c.
Mitigation of damages.
d.
Liquidated of damages.
43.
You own a small business. One of your employees, Martha, is 43 years old
and she belongs to a small “new age” church that worships crystals. You
have reasonable grounds to believe that Martha is not a productive employee and
so you want to fire her. Your human resource manager does not keep regular
records of employee performance. Martha does not have a fixed-term
employment contract. She is an “employee
at will”. If you fire her, what might be your liability?
a. You
might be found liable under a claim of age discrimination.
b. You
might be found liable under a claim of gender discrimination.
c. You
might be found liable under a claim of religious discrimination.
d.
All of the above.
44. Gift promises are
not binding and do not form contracts because of a lack of which essential
contract element?
|
a. |
Legality. |
|
b. |
Capacity. |
|
c. |
Consideration. |
|
d. |
Agreement. |
45.
Sexual harassment can be the basis for a lawsuit if the victim is:
a.
Female only.
b.
Male only.
c.
Either female or male.
46.
Joe is a police officer. He wants to obtain a warrant to search Dorothy’s
house. The amount of evidence that he needs in order to obtain the
warrant is called:
a. Just
cause.
b. Probable
cause.
c. Legal
cause.
d. Cause
beyond a reasonable doubt.
47.
Under the Constitution, the legislative branch of the government:
|
a. |
Administers
statutory law. |
|
b. |
Enforces
statutory law. |
|
c. |
Interprets
statutory law. |
|
d. |
Makes
statutory law. |
48.
Ira is trying to sell his horse to Jack.
Ira tells Jack that the horse rides "like the wind." In truth, the horse rides in an ordinary
manner, and Ira knows this. Ira's
statement is:
|
a. |
Duress. |
|
b. |
Fraud. |
|
c. |
Puffery. |
|
d. |
Misrepresentation. |
49. Two
supermarkets in the same town agree to charge $3.00 for a gallon of milk, which
is a fair price. This action is:
a. Horizontal price fixing.
b. Vertical price fixing.
c. An illegal geographic market division.
d. Legal, because the price agreed upon was fair.
50. Free
question. Please enter “d” as your answer. You will receive free credit
for this question if you have correctly entered your Scantron information.
Typically 1-2% of students fail to do this. Common errors are:
-Forgetting to darken the
boxes under your I.D. # or name.
-Darkening the wrong box
(very common error) especially under name.
-Incorrectly entering your
I.D.#.
Scantron Challenge: if every student in the class will
correctly enter his/her Scantron form information, 2 points will be added to
every student’s score on this exam.
Why
not double check?
B. Law 265
Spring
2008
Exam
#2, April 8, 2008
Answer Key:
1. d
2. a
3. c
4. a
5. b
6. d
7. b
8. a
9. b
10. c
11. c
12. d
13. a
14. c
15. a
16. b
17. d
18. a
19. c
20. c
21. a
22. a
23. d
24. b
25. d
26. c
27.b
28. b
29. b
30. d
31. b
32. d
33. a
34. b
35. a
36. a
37. c
38. d
39. a
40. c
41. c
42. c
43. d
44. c
45. c
46. b
47. d
48. c
49. a
50. d
Question #1 deals with remedies, the subject of class 10. Compensatory damages are the basic remedy the law provides. The purpose of these is to "make the victim whole" (see lecture outline). As we discussed in class, if the victim (plaintiff) suffered a $10,000 loss, recovering compensatory damages in the amount of $10,000 will restore the plaintiff to same financial position that he/she enjoyed before the breach of contract occurred, thus "making him whole".
On the other hand, punitive damages have as their purpose to punish the defendant for intentional wrongdoing, also to deter others from similar conduct. Fraud is the typical example in contracts (page 227), and intentional torts such as battery are other examples. If the jury decides that punitive damages should be awarded, the amount will depend on how wealthy the defendant is, and how offensive the defendant's conduct was. For example, a punitive damages judgment against a wealthy person like Bill Gates in the amount of $10,000 would not inflict any financial pain on him, but it certainly would be painful for you or me to pay.