Northampton Community College

Business Law I
Online Learning Final Exam
Name: __________________________________
Directions: Please note that every question in each section is worth four (4) points
each.
True/False: Indicate whether the statement is true or false.
1.___F___The Internet has no effect on a courts assertion of personal jurisdiction.
2.___F___The ethics of a particular action is always clear-either something is ethical or it
is not.
3.___F___Under the principle of rights theory, one persons set of values is as right as
anothers.
4.___F___All promises are legally binding.
5.____F__An invitation to negotiate will typically be construed as having created a valid
offer.
6.___T___An auction with reserve is one in which the seller cannot withdraw the goods
at any time before the auctioneer closes the sale by announcement or fall of the hammer.
7.____T__Consideration is the value given in return for a promise.
8.____T__Normally, a court will not question the adequacy of consideration if the
consideration is legally sufficient.
9.___F__The UCITA limits the use of electronic self-help but these limits can be
waived by contract.
10.___F_Privity of contract between the plaintiff and the defendant is required to bring a
suit based on product liability.

Multiple Choice: Identify the letter of the choice that best completes the statement
or answers the question.
11. A remedy is the means given to a party = C
a.
b.
c.
d.

only to enforce a right

only to compensate for the violation of a right
to enforce a right or to compensate for the violation of a right
none of the above

12. A city ordinance that allows only a few street vendors to operate in certain areas,
for the purpose of reducing traffic, would likely be held by a court to be = C
a.
b.
c.
d.

constitutional under the due process clause

constitutional under the equal protection clause
unconstitutional under the due process clause
unconstitutional under the equal protection clause

13. In Anns suit against Bob, each partys attorney argues the partys case before a
judge and a jury. The jury presents an advisory verdict, after which the judge
meets with the parties to encourage them to settle their dispute. This is = B
a.
b.
c.
d.

a mini-trial
arbitration
a summary jury trial
early neutral case evaluation

14. Fun Toys, Inc., makes EZ Goo, a childrens toy. Without Fun Toys consent,
National Adhesives Company (NAC) begins to use ezgoo as part of the URL
for NACs Web site. In Fun Toys suit, NAC claims that no consumer would
confuse the Web site with the toy. NAC has committed = D
a.
b.
c.
d.

copyright infringement
patent infringement
trademark dilution
none of the above

15. Bob buys Joans book, Photos of Discovery. Bob photocopies more than half of
the book without Joans permission and sells the copies without paying Joan
royalties. This is = A
a.
b.
c.
d.

copyright infringement
a fair use of the copyrighted material
the legitimate licensing of the product
protected expression

16. Jill receives stolen goods. To be criminally liable, Jill must know = A
a.
b.
c.
d.

only that the goods are stolen

only the identity of the owner
that the goods are stolen and the identity of the owner
none of the above

17. Sue, a minor, signs a contract to buy a computer from Tom, the owner of United
Computer Store. Sues rights to disaffirm a contract = A
a.
b.
c.
d.

does not change the fact that Tom is bound by the contract
does not yet exist because Sue is still a minor
gives Tom, an adult, the right to disaffirm the contract
is not valid because a computer is a necessity

18. Laura uses duress to induce Ron to enter into a contract. Ron may choose = C
a.
b.
c.
d.

only to carry out the contract

only to avoid the entire transaction
to carry out the contract or to avoid the transaction
none of the above

19. Development Associates (DA) agrees to buy five (5) acres of land from Eagle
Properties for $15,000. Eagle fails to go through with the deal on the agreed
date, when the market price of land is $17,000. DA may recover = D
a.
b.
c.
d.

$17,000
$15,000
$2,000
Nothing

20. Digital Computer Company agrees to sell Office Supplies, Inc. (OSI), computers
for OSI to sell in its stores. A contract between these parties will be rendered
unenforceable if it does not include = D
a.
b.
c.
d.

the location for delivery of the goods

the method of payment for the goods
the price of the goods
the quantity of the goods

21. Sweet Produce Company contracts with Tasty Restaurant to ship 600 heads of
lettuce in three (3) equal installments. When the first installment arrives, ten
heads of lettuce are rotten. Tasty may = C
a.
b.
c.
d.

cancel the contract

recover from Sweet for breach of the entire contract
reject the first installment only
use as much of the lettuce as it wishes without paying for it

22. Frank and Gail enter into a contract subject to the UCITA. A dispute later arises
over a particular term. The UCITA requires that for that term to be given effect,
both Frank and Gail must have read = A
a.
b.
c.
d.

all of the terms

at least the term in dispute
most of the terms, including the term in dispute
none of the above

23. Delta Services, Inc., and E-Products Corporation negotiate a deal that results in
Deltas obtaining the right to use E-Products software. Like most transactions
related to software, this deal involves = A
a.
b.
c.
d.

a license only
a sale only
a license and a sale
none of the above

24. American Sales, Inc., enters into contracts in e-commerce and in traditional
commerce. The UETA applies, if at all, only to those transactions in which the
parties agree to use = A
a.
b.
c.
d.

e-commerce
traditional commerce
e-commerce and traditional commerce
none of the above

25. Silicon Computers manufactures hard drives. Dave discovers that his Silicon
drive is defective. Dave sues Silicon for product liability based on
misrepresentation. To win, Dave must show that = C
a.
b.
c.
d.

Dave knew and appreciated the risk caused by the defect

Dave suffered an injury caused by the defect
the defect was a commonly known danger
Silicon sold the drive to Dave