Business Law Midterm Spring 2007
March 27, 2007

True/False
Indicate whether the sentence or statement is true or false.

____	1.	Frances has lived in an apartment for ten years when she decides to buy a house. Her one-year lease will end on May 1. On April 15, she orally contracts to buy Smith's house for $100,000, with the closing (transfer of the deed) to take place on June 1. Smith's lawyer, who is out of town on vacation, is to draft a written contract of sale on his return to his office on May 15. Because Frances's lease is terminating, Smith agrees to let her take possession of the house on May 1 if Frances gives him a "down payment" on the house of $5,000. Frances agrees and gives Smith the $5,000. She moves into the house on May 2 and the following weekend plants trees in the back yard. On May 10, Smith receives a written offer from Green to buy Smith's house for $120,000. Smith accepts Green's offer, asks Frances to move out of the house, and tries to return the $5,000 to Frances. Frances claims that she has an enforceable contract to buy the house. Smith claims that any such contract must be in writing to be enforceable under the Statute of Frauds. Smith’s statement is:

____	2.	 Criminal law spells out the rights and duties that exist between persons and their governments and the relief available when a person’s rights are violated. Civil law, in contrast, is concerned with wrongs committed against the public as a whole.

____	3.	An oral defamatory statement must be communicated to a third party to be actionable.

____	4.	Parents are ordinarily liable for the contracts made by their minor children, whether or not the children acted on their own.

____	5.	All collateral promises must be in writing to be enforceable.

____	6.	Mistakes in judgment as to value or quality will permit one to avoid a contract.

____	7.	A superseding cause is an intervening event that imposes liability on a defendant for injuries caused by the intervening event.

____	8.	Under the doctrine of strict liability, a defendant is liable for the results of his or her acts only if he or she intended those results.

____	9.	The federal equivalent of a state trial court is a U.S. court of appeals.

____	10.	Alternative dispute resolution refers to any method for resolving a dispute outside the court system.

____	11.	An expression of opinion is not a valid offer.

____	12.	An advertisement is generally treated as an offer to contract.

____	13.	In an auction in which the seller reserves the right to accept or reject any bid, there is no binding contract until the seller accepts a bid, even if the auctioneer accepts a bid during the auction.

____	14.	A counteroffer does not terminate but continues an offer.

____	15.	Under the mailbox rule, an acceptance can be valid as soon as it is sent.

____	16.	An oral contract for a transfer of an interest in land is never enforceable.

____	17.	Evidence of prior negotiations over a contract can be introduced in court only if that evidence contradicts the contract's written terms.

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.

____	18.	“Shoeless” Joe Jackson comes to Barb’s rescue and promises to support Barb’s three year old daughter Cookie with a yearly $10,000 payment for the rest of Cookie’s life.

The above oral promise is:
a.	Within the Statute of Frauds and must be evidenced by a writing.	c.	Within the Statute of Frauds but need not be evidenced by a writing.	
b.	Not within the Statute of Frauds and needn’t be evidenced by a writing.	d.	Not within the Statute of Frauds but must be evidenced by a writing.	

____	19.	On March 26th Anthony Fenech (who once climbed over a glass wall to see what was on the other side) made his daily drive to the mall in his 1977 orange Ford Pinto to see his girlfriend Tiffany de Epiphany. Tiffany is a red-headed freckled-faced 400 pound mannequin who is on display in the window at the “big girls” store commonly referred to as Lane Bryant.  Mr. Fenech, dressed in yellow spandex pants, a purple tank top and a Flava Flav clock around his neck was standing in front of the store pretending to read the latest copy of “Teenwire Magazine.” In reality he was whispering “sweet nothings” to Tiffany and fogging up the Lane Bryant window.

While all of the Lane Bryant employees were helping customers Mr. Fenech grabbed Tiffany de Epiphany and started running toward his getaway car- the Pinto. One of Tiffany’s legs fell off in the food court and witnesses said Mr. Fenech began singing “Big Girls Don’t Cry” as he dragged Tiffany through the mall.

Mr. Fenech made it out of the mall but he did not make it through the San Mateo Bridge Toll Booth. Mr. Fenech was stopped as he went through the carpool lane when police officers noticed what appeared to be a distressed looking female passenger with lipstick smeared all over her face riding in the passenger seat. Mr. Fenech was arrested and many items were recovered from the truck of the Pinto including two sets of handcuffs, a lone ranger mask and a CD of Rickey Martin’s greatest hits.

The police officers provided the above information to the District Attorney, Professor Isler, so the Professor could charge Mr. Fenech.  

Presuming that Mr. Fenech is not insane, what is a real stretch but please use your imaginations, what should the Professor, who is “too cool to catch a cold,” charge Mr. Fenech with?

a.	Burglary	d.	Receiving stolen goods	
b.	Conversion	e.	I don’t know but I’m glad I wasn’t in the food court eating when Fenech ran by in spandex	
c.	Larceny	

____	20.	

The above picture of Eva and Professor Isler was taken on Professor Isler’s balcony at his get-a-way condo in Rio. These were happy times but not long after these pictures were taken Eva filed for a divorce when she caught the Professor kissing Jessica Alba. In truth, the Professor was administering mouth-to mouth resuscitation to Jessica who fainted with joy after she accidentally saw Professor Isler naked but Eva would not listen.

During the California divorce proceedings the judge ruled that the prenuptial agreement that the Professor asked Eva to sign was invalid because Eva and the professor used the same attorney.

With respect to the Judge’s decision:

a.	The judge’s ruling was correct 	c.	The judge was correct because he was following the ruling from the Barry Bonds case.	
b.	The judge was incorrect	d.	The judge was incorrect because is was permissible for Eva and the Professor to use the same attorney; however, the courts would prefer that people use separate counsel	

____	21.	A dispute arises over the ownership of a boat in dry dock in Fort Lauderdale, Florida. The boat is owned by an Ohio resident, over who a Florida court normally cannot exercise jurisdiction. The other party to the dispute is a Nebraska resident.

In this situation, a lawsuit concerning the boat could be:

a.	filed in a Florida state court on the basis of the court’s in personam or personal jurisdiction	c.	filed in a Florida state court on the basis of the court’s “long arm” jurisdiction	
b.	filed in a Florida state court on the theory of nunc pro tunc	d.	filed in a Florida state court on the basis of the court’s in rem jurisdiction	

____	22.	What do probate courts and bankruptcy courts have in common?
a.	Both are federal courts	c.	Both are state courts	
b.	Both are courts of general jurisdiction	d.	Both are courts of limited jurisdiction	

____	23.	Standing to sue means:
a.	The plaintiff has decided to stand before the court and take an oath that she is about to tell the truth.	c.	A party has satisfied all elements necessary to be in federal court.	
b.	The plaintiff has decided to stand before the court and take an oath that the complaint that she filed stands on firm legal precedent.	d.	A party has a sufficient “stake” in a matter to justify seeking relief through the court system.	

____	24.	The difference between arbitration and mediation is that arbitration is binding while mediation is not.

The above statement is:
a.	True	c.	False with respect to nonbinding arbitration and mediation	
b.	False because arbitration is never binding	d.	False because mediation is binding	

____	25.	Anthony, Fenech, who is all foam and no beer, wanted to divorce Rosie O’Donnell so he sent his little brother Nimrod, who is seventeen years old, over to Rosie’s house to serve her with divorce papers. Rumor has it that Nimrod fell out of a stupid tree and hit every branch on the way down. Apparently the tree was planted near the family home. Anyway, Nimrod boldly walked up to Rosie and said hey Rosie I heard that when you got on the scale this morning it said “One at a time please.” Rosie was not amused. Nimrod handed Rosie the divorce papers and said “you have been served.” When Nimrod turned to walk away Rosie kicked him in the rear end so hard that the impact was heard for blocks.

What is true about the above set of facts?

a.	Rosie was improperly served and may be sued for assault	c.	Rosie was improperly served and may be sued for battery	
b.	Rosie was properly served and may be sued for assault and battery	d.	Rosie was improperly served, but may be sued for assault, for battery and mayhem	

____	26.	Written questions for which written answers are prepared and then signed under oath are:

a.	Admissions	c.	Depositions	
b.	Interrogatories	d.	Circular motions ad litham	

____	27.	The process by which a jury is selected is called:

a.	Selection by cause	c.	Voir dire	
b.	Nunc pr tunc	d.	Duces tacum	

____	28.	Kirby sues Carvello in the Superior Court for the County of Santa Clara, a trial court in California. Carvello loses and decides to appeal the verdict in Kirby’s favor. What should Carvello do?

a.	File a notice of appeal in the trial court	c.	File a notice of appeal en banc	
b.	File a notice of appeal in the appeals court	d.	File a notice of appeal in pari delicto	

____	29.	Anthony Fenech, and his girlfriend, Dumey Somore, drove to Idaho in Anthony’s Ford Pinto. When Anthony and Dumey arrived they were charged $2,500 for a shrimp fishing license, while Idaho residents were charged $25. Dumey paid the fee because it takes Anthony four months to earn $2,500 working at McDonalds. Anthony does intend to move up in the world and apply for a job at Jack-In-The-Box. His twin brother, Jack, has yet to hire him but Anthony knows he will be hired one day. 

Dumey wants to file a lawsuit against the state of Idaho and thought about asking Anthony but remembered that he is as smart as fish bait. Instead she has asked you for advice. What of the following would be the best advice?
a.	Dumey should file a lawsuit alleging that her Commerce Clause rights have been violated.	c.	Dumey should file a lawsuit alleging that her rights under the Full Faith and Credit Clause have been violated	
b.	Dumey should file a lawsuit alleging that her rights under the Privileges and Immunities Clause have been violated	d.	Dumey should file a lawsuit alleging that her rights under the Equal Protection Clause have been violated and request that the court use the “Compelling State Interest” test.	

____	30.	The Establishment Clause:
a.	Prohibits the government from establishing a state-sponsored religion.	c.	Allows states to establish traditional religions when there is a Rational Basis.	
b.	Prohibits the government from forcing a seventeen year old Jehovah’s Witnesses to receive a blood transfusion.	d.	Allows states to establish traditional religions when there is a Compelling need to do so.	

____	31.	The Equal Protection Clause of the U.S. Constitution
a.	Prohibits people from denying another person’s fundamental rights like privacy.	c.	Prohibits individuals from engaging in race discrimination unless there is a compelling reason for doing so	
b.	Prohibits states from engaging in race discrimination unless there is a rational basis for doing so.	d.	None of the above.	

____	32.	Anthony decided to take his girl “Big Booty Bobbette” out for a night on the town. Anthony had the evening all planned. First he would take Bobette out for dinner at Burger King and he would let Bobbette “super size” any order. Then Anthony was going to take Bobette shopping at the Ninety-Nine Cent Store Outlet and then he would take Bobette out to a concert to see the “Queen Reunion Tour” with special musical guest “The Village People.” While at Burger King, Anthony believes that he was overcharged and shoves Wally, a Burger King waiter. Wally sues Anthony, alleging that the shove was a battery. Anthony is liable if
a.	Burger King did not overcharge him.	
b.	The shove was offensive.	
c.	Anthony acted out of malice.	
d.	Wally did not wait on Anthony	
e.	he merely shows his face in the place as his presence alone is a harmful or offensive contact	

____	33.	Ace Corporation uses, in its radio ads, a recording by Blair, who owns the rights, without paying for the use. Over time, the song comes to be associated with Ace's products. Blair sues Ace. Ace is liable to Blair for
a.	Appropriation.	
b.	Conversion.	
c.	Wrongful interference with a customary relationship.	
d.	None of the above.	

____	34.	Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she
a.	discloses the truth.	
b.	represents as a fact something that she knows is untrue.	
c.	states an opinion concerning something that she knows nothing about.	
d.	uses puffery.	

____	35.	Kay files a suit against Larry based on one of Larry's statements that Kay alleges is fraudulent. To give rise to fraud, the statement must be one of
a.	delusion.	
b.	fact.	
c.	opinion.	
d.	truth.	

____	36.	Curt, a dairy goods salesperson, follows Dona, a competitor's salesperson, as she visits convenience stores to make sales. Curt solicits each of Dona's customers. Curt is likely liable for
a.	conversion.	
b.	trespass to personal property.	
c.	wrongful interference with a business relationship.	
d.	wrongful interference with a contractual relationship.	

____	37.	Anthony Fenech has always had problems connecting so Joy invited Anthony over to her apartment to help Anthony prepare for his new job. Anthony is worried about being around a real life girl because he does not “log in” very well so he asks the coolest person that he knows, Professor Isler, for advice. After a short conversation the Professor determined that Anthony suffered from Connectile Dysfunction which was brought about because of a bad hard drive. The Professor charged Anthony $500 and then suggested that Anthony go to a computer repair shop to fix the problem.

When Anthony was on the way to the computer repair shop he decided to practice for his new job which he was to start the next day. He rolled the windows down in his Pinto and started yelling:

                “Welcome to Jack in the Box, I’m Jack, may I take your order?”
                 “Welcome to Jack in the Box, I’m Jack, may I take your order?”
                  “Welcome to Jack in the Box, I’m Jack, may I take your order?”

   When Anthony arrived at the repair shop he was dismayed to learn that the store was closed so Anthony decided to earn some real money by robbing a man selling hotdogs on the street. Anthony approached the man and said: 

               “Welcome to Jack in the Box, I’m Jack, may I take your order?” “I mean, hand   
                  over the cash or I’ll shoot you with the gun that is in my pocket.”  
Anthony did not really have a gun. Truth to tell, according to Tiffany his gun shoots blanks but the hotdog vendor feared for his life and gave Anthony $3.00, Anthony went to the liquor store bought a bottle of Mickey’s Malt Liquor, drank it quickly and fell asleep. Anthony woke up in jail and found that he was charged with robbery.

Was the robbery a charge against Anthony correct?

a.	No because Anthony did not hit anyone	
b.	Yes because Anthony threatened bodily harm	
c.	No because Anthony did not enter a dwelling	
d.	Yes because Anthony formed Actus Reus	

____	38.	Lola files a suit against Mac, a medical doctor, alleging negligence. As a physician, Mac is held to the standard of
a.	an average human being.	
b.	a reasonable person.	
c.	a reasonable physician.	
d.	a typical professional.	

____	39.	Nick sees Opal, a stranger, in peril, but does not attempt to rescue her. Opal could successfully sue Nick for
a.	negligence per se.	
b.	nothing.	
c.	a violation of the "danger invites" rescue doctrine.	
d.	a violation of a Good Samaritan statute.	

____	40.	Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls, smashing through the roof of a house, killing Chris. But for Bart's negligence, Chris would not have died. Regarding the death, the crash is the
a.	cause in fact.	
b.	intervening cause.	
c.	proximate cause.	
d.	superseding cause.	

____	41.	In Case 7.2, Palsgraf v. Long Island Railroad Co., the court decided that the railroad employee's conduct was not wrong in relation to Palsgraf but did not decide whether the conduct was negligent toward the man with the package (that led to Palsgraf's injury). If the court determined that the railroad employee was negligent with regard to the man with the package, would the railroad have been liable for the injury to Palsgraf?
a.	Yes, because negligence to one party creates negligence to all other parties injured as a result.	
b.	No, because Palsgraf's injury was still not foreseeable.	
c.	Yes, because of the doctrine of assumption of risk.	
d.	No, because Palsgraf was also negligent.	

____	42.	Beth is injured in a car accident and sues Carl, alleging negligence. Carl claims that Beth was driving more carelessly than he was. Comparative negligence may reduce Beth's recovery
a.	even if Beth was only slightly at fault.	
b.	only if Beth was as equally at fault as Carl.	
c.	only if Beth was less at fault than Carl.	
d.	only if Beth was more at fault than Carl.	

____	43.	An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Kay, a patron, is injured. Jack's has committed
a.	a dram shop act.	
b.	contributory negligence.	
c.	negligence per se.	
d.	res ipsa loquitur.	

____	44.	In an emergency situation, Lori renders aid to Mike, who needs help. Mike would most likely be prohibited from suing Lori for negligence under
a.	any circumstances.	
b.	a Good Samaritan statute.	
c.	a social host statute.	
d.	no circumstances.	

____	45.	Gail is a "payday" lender charged with filing false claims in bankruptcy proceedings against her debtors. The standard of proof to find a defendant who has been charged with a crime guilty is
a.	a preponderance of the evidence.	
b.	beyond all doubt.	
c.	beyond a reasonable doubt.	
d.	clear and convincing evidence.	

____	46.	Cathy causes a disturbance at Diners Cafe. She is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by imprisonment up to
a.	one year.	
b.	six months.	
c.	ten years.	
d.	thirty days.	

____	47.	Ira signs Jill's name, without her authorization, to the back of a check made out to her. This is
a.	burglary.	
b.	forgery.	
c.	larceny.	
d.	robbery.	

____	48.	Jack receives an MP3 player stolen from Kate. To be criminally liable, Jack
a.	must know only that the player is stolen.	
b.	must know only that Kate is the true owner.	
c.	must know that the player is stolen and that Kate is the true owner.	
d.	need not know that the player is stolen or that Kate is the true owner.	

____	49.	Phil sets fire to his house. At common law, the crime of arson could be committed only if a person burned down
a.	a commercial building.	
b.	an unoccupied structure.	
c.	his or her own house.	
d.	the house of another person.	

____	50.	Jay is charged with embezzlement. Embezzlement is not robbery because embezzlement may be committed without
a.	a criminal act.	
b.	a criminal intent.	
c.	taking property from its owner.	
d.	the use of force of fear.	

____	51.	Helen points a gun at Irma, threatening to shoot her. Irma hits Helen, causing her death. Charged with homicide, Irma can most likely successfully claim as a defense,
a.	consent.	
b.	duress.	
c.	entrapment.	
d.	self-defense.	

____	52.	Harry, a computer programmer for Inventory Control Corporation, is arrested in his employer's parking lot on suspicion of larceny. Harry must be informed of his right to
a.	a trial by jury.	
b.	punishment.	
c.	question witnesses.	
d.	remain silent.	

____	53.	Britney, an employee of Computer Associates, is arrested at work. A grand jury issues a formal charge against Britney for larceny. This charge is
a.	an arraignment.	
b.	an indictment.	
c.	an information.	
d.	an inquisition.	

____	54.	Bob offers to sell Carol his computer but conditions the sale on Carol accepting the offer by May 1. Bob may revoke the offer
a.	before Carol accepts the offer.	
b.	before May 1, whether or not Carol has accepted the offer.	
c.	only after Carol accepts the offer.	
d.	only after May 1.	

____	55.	Ace Sales Corporation plans to move to a new office. Ace offers to sell its office furniture to Beta Marketing, Inc., but does not specify a time for Beta to respond. The offer expires
a.	after a reasonable period of time.	
b.	after thirty days.	
c.	after thirty minutes.	
d.	never.	

____	56.	Kim sends an offer to Leo to cut down and remove a tree for $400. Kim says, "If you say nothing, I will consider you to have accepted my offer." If Leo does not respond, he will be deemed to
a.	accept the offer.	
b.	make a counteroffer.	
c.	reject the offer.	
d.	none of the above.	

____	57.	Paul offers Rita $1,000 for her $5,000 computer. Rita knowingly and voluntarily agrees to the offer but later sues Paul. A court would likely
a.	set aside the agreement as unfair.	
b.	set aside the agreement because the consideration is inadequate.	
c.	not question the adequacy of the consideration.	
d.	consider such a suit to be frivolous.	

____	58.	Mary promises to pay her assistant Ned $10,000 in consideration of the services he provided over the years. Mary never pays Ned. Mary is
a.	liable for payment of the $10,000.	
b.	liable only if Ned still works for Mary.	
c.	not liable, because the consideration is in the past.	
d.	not liable, because the consideration was unintentional.	

____	59.	Ann is injured in an accident caused by Bob. Bob agrees to pay Ann $2,500 if she agrees to release Bob from further liability. Ann agrees. If Ann's damages ultimately exceed $2,500, Ann can
a.	collect the balance from Bob in a breach-of-contract suit.	
b.	collect the balance from Bob in a tort suit.	
c.	collect the balance from Bob on the ground of unforeseen difficulties.	
d.	not collect the balance from Bob.	

____	60.	After an accident with a driver for General Transport Company (GTC), Paul signs a covenant not to sue GTC for damages in a tort action if it pays for the damage to his car. This covenant
a.	bars recovery only if GTC pays.	
b.	is an illusory contract.	
c.	is barred by the preexisting duty rule.	
d.	is unconscionable.	

____	61.	Betty pledges to donate $1,000 to the Children's Hospital. On the basis of the pledge, the hospital orders additional equipment. Betty reneges on the pledge. The hospital sues Betty. If the court enforces the pledge, it will be
a.	because Betty's performance is uncertain.	
b.	because of the unforeseen difficulties.	
c.	because the pledge is a gift.	
d.	under the doctrine of promissory estoppel.	

____	62.	Jill agrees to build a warehouse for Ken and orders supplies from Larry for the job. Ken promises Larry that Ken guarantees payment for the supplies. Ken's promise is
a.	enforceable only if it is in writing.	
b.	enforceable only if it is oral.	
c.	enforceable whether it is oral or in writing.	
d.	not enforceable.	

____	63.	AAA Loans, Inc. is one of Beta Business Corporation's creditors. AAA guarantees Beta's debt to City Bank to forestall litigation. To be enforceable, this guarantee must be in writing
a.	to allow Beta to stay in business and pay AAA and City Bank.	
b.	to allow Beta to stay in business and pay AAA only.	
c.	to allow Beta to stay in business and pay City Bank only.	
d.	under no circumstances.	
____	64.	When an actual contract exists:
a.	The doctrine of Quasi Contract cannot be used	c.	detrimental reliance can be used	
b.	The doctrine of Quasi Contract can be used	d.	estoppel may be used	

____	65.	Professor Isler’s favorite music is:
a.	Latin Jazz	c.	Hip Hop	
b.	Jazz	d.	Bachata	

____	66.	Till the cops come Knocking was performed by:
a.	Snoop Dogg	d.	Mr. Fenech’s favorite group- The Beach Boys	
b.	Dr. Dre	e.	Johnny Padilla	
c.	Maxwell	

____	67.	Where was Professor Isler over the Presidents’ Day Holiday last February?
a.	In Las Vegas at the NBA All-Star Game	c.	In Carmel	
b.	In Florida at the Daytona 500	d.	In Phoenix	

____	68.	The singer that was found guilty of statutory rape for having sex with an under aged minor was:
a.	Tony Orlando	c.	Earl Scheib	
b.	Eddie Kenderson	d.	Johnny Paycheck	

____	69.	Believe it or not Professor Isler loves a broad range of music. In fact his favorite song in 2006 was:
a.	“I Know You See It” by Yung Joc	c.	“Too Little Too Late” by Jojo	
b.	“What Hurts The Most” by Rascal Flatts	d.	“I Want To Love You” by Akon	

____	70.	When I think of this class I think:
a.	of a walk on a sandy beach with Eva Mendes	c.	of “You Better Be Ready” by Yung MC	
b.	of breaking my foot off in your......	d.	Of a song called “Ay Ven” by Anthony Santos	

____	71.	All evidence obtained in violation of the constitutional rights spelled out in the Fourth, Fifth, and Sixth Amendments normally is not admissible at trial. All evidence derived from the illegally obtained evidence is known as the “fruit of the poisonous tree,” and such evidence normally cannot be used in the trial proceedings. For example, if a confession is obtained after an illegal arrest, the arrest is the poisonous tree and the confession, if “tainted” by the arrest, is the “fruit.”

The above statement is:
a.	Incorrect with respect to the “poisonous tree” portion.	c.	Correct and is called the “Exclusionary Rule.”	
b.	Incorrect with respect to the “fruit” portion.	d.	Correct and called “The Miranda Tree Doctrine.”	

____	72.	Anthony, who is a convicted felon, was threatened by an acquaintance Pee Wee Herman with a gun. Anthony, who was afraid and started crying, grabbed the gun and fled the scene, but subsequently he was arrested under a statute that prohibits convicted felons from possessing firearms.

In this situation Anthony’s best defense is:
a.	There was no actus reus	c.	Necessity	
b.	Mistake	d.	Justifiable use of force	

____	73.	Little Billy, who is seven years of age carried a loaded gun to school and shot Rachel, who was eighteen, with a gun.

What crime can Little Billy be charged with?
a.	First Degree Murder	c.	None	
b.	Second Degree Murder	d.	Assault With A Deadly Weapon	

____	74.	Patents, copyrights, trademarks and trade secrets are all:
a.	property rights covered by the Statute of Fraud	c.	personal property	
b.	Real property	d.	intellectual property	

____	75.	In the Bible, specifically in the Book of Acts, the inhabitants of Malta were called "barbaroi" meaning that they did not speak a civilized tongue. Obviously this is not true of all people from Malta but sadly we know this to be true with respect to a certain person from Malta who is in this very class. At this point there is no need to mention this truculent, somewhat jealous malicious malcontent posing as a student by name, but I can tell you that his girlfriend Tiffany calls him the Maltese Minute. I wonder why! We shall call him MM for short

Anyway, one day MM left his apartment in the projects in his freshly painted 1972 purple Ford Pinto (the one with eight inch rims) to repair cracks at Tiffany’s house and also repair other things that were broken. It turns out that there were many cracks to be fixed. MM wanted to repair the cracks but didn’t know how. He asked Tiffany who suggested that he ask a real pro. MM called up Professor Isler who advised MM to fill the cracks with caulk. MM had no idea how to do this so the Professor said ‘Use your caulk gun.” Armed with his new-found knowledge MM announced to Tiffany I’m going to repair the cracks by filling them with caulk. Tiffany said “how are you going to do that?” MM said “with my caulk gun.” Tiffany said “Come on now, Bobette, and I both know that you don’t know how to fill a crack with caulk. I’ll tell you what; do something your good at. Go in the kitchen and make us some dinner while you do my laundry.” MM said ok.

By the way, in determining whether a contract has been formed we look at intent based on:

a.	The parties personal subjective intent	d.	The facts and circumstances before the contract was formed	
b.	The facts and circumstances after the contract was formed	e.	I don’t know but I hope you-know-who continues to call you Farmer John so you can fry him again on the final!	
c.	the objective theory of contracts	

Do not place your names on the Scantron, Student ID Numbers only.

Business Law Midterm Spring 2007
Answer Section

TRUE/FALSE

	1.	ANS:	F
This situation involves a contract for a sale of land, which in most circumstances must be in writing to be enforceable. In this case, however, the buyer has paid part of the price, taken possession, and made permanent improvements (planted trees), and arguably the parties cannot be returned to their pre-contract status quo. A court would therefore grant the remedy of specific performance to the buyer. Whether a court would enforce this oral contract would be determined by the degree of injury that the court perceived would be suffered if the court did not enforce it. Being homeless is a serious consequence.

	2.	ANS:	F
The reverse is true. Civil law spells out the rights and duties that exist between persons and their governments and the relief available when a person’s rights are violated. Criminal law, in contrast, is concerned with wrongs committed against the public as a whole.

	3.	ANS:	T

	4.	ANS:	F

	5.	ANS:	F

	6.	ANS:	F

	7.	ANS:	F

	8.	ANS:	F

	9.	ANS:	F

	10.	ANS:	T

	11.	ANS:	T

	12.	ANS:	F

	13.	ANS:	T

	14.	ANS:	F

	15.	ANS:	T

	16.	ANS:	F

	17.	ANS:	F

MULTIPLE CHOICE

	18.	ANS:	B
Any contract, which by its terms is incapable of being performed within one year, is falls within the Statute of Frauds. If there is any possibility, no matter how statistically remote, no matter how improbable, that the contract obligations could be performed within a year, then the subject matter was never within the Statute of Frauds, though in actual experience it takes fifty years to carry out the terms of the bargain. Here, Cookie might die before attaining her fourth birthday and although the mortality table suggest that the chance of that happening are small, there is a statistical chance that Shoeless Joe could fully perform on that promise within a year and Shoeless Joe would be bound to make the payment even as Cookie is qualifying for Social Security.

	19.	ANS:	C

	20.	ANS:	D

	21.	ANS:	D
This example is on page 31 of your text.

	22.	ANS:	D

	23.	ANS:	D

	24.	ANS:	C	NOT:	Neither nonbinding arbitration or mediation are binding.

	25.	ANS:	C

	26.	ANS:	B

	27.	ANS:	C

	28.	ANS:	A

	29.	ANS:	B

	30.	ANS:	A

	31.	ANS:	D

	32.	ANS:	B

	33.	ANS:	A

	34.	ANS:	B

	35.	ANS:	B

	36.	ANS:	C

	37.	ANS:	B

	38.	ANS:	C

	39.	ANS:	B

	40.	ANS:	A

	41.	ANS:	B

	42.	ANS:	A

	43.	ANS:	C

	44.	ANS:	B

	45.	ANS:	C

	46.	ANS:	A

	47.	ANS:	B

	48.	ANS:	A

	49.	ANS:	D

	50.	ANS:	D

	51.	ANS:	D

	52.	ANS:	D

	53.	ANS:	B

	54.	ANS:	A

	55.	ANS:	A

	56.	ANS:	D

	57.	ANS:	C

	58.	ANS:	C

	59.	ANS:	D

	60.	ANS:	A

	61.	ANS:	D

	62.	ANS:	C

	63.	ANS:	D

	64.	ANS:	A

	65.	ANS:	D	NOT:	I mentioned this on 3/22

	66.	ANS:	C	NOT:	I mentioned this many times. If you got it incorrect, slap yourself!

	67.	ANS:	B

	68.	ANS:	D	NOT:	I discussed this when I talked about strict liability with respect to crimes

	69.	ANS:	B	NOT:	Believe it or not this was my favorite song last year

	70.	ANS:	D	NOT:	3/22 Lecture

	71.	ANS:	CA

	72.	ANS:	C	NOT:	I gave this very example in class.

	73.	ANS:	C	NOT:	Billy cannot form mens rea

	74.	ANS:	D

	75.	ANS:	C