Assignment: Business Discussion

Assignment: Business Discussion

The term “consideration” in relation to contracts involves parties acting in an ethical manner.

True

False
Consideration is the bargained-for exchange or what each party gets in exchange for his or her promise under the contract.

2.
award:
2 out of
2.00 points

Which of the following references the requirement that a contract not be either illegal or against public policy?

Legal object

Illegal prohibition

Capacity

Ethical requirement

Consideration
The term “legal object” means that to be enforceable, the contract cannot be either illegal or against public policy.

3.
award:
2 out of
2.00 points

Which of the following is true regarding trade secret protection?

A trade secret is protected from unlawful appropriation by competitors as long as it is kept secret and consists of elements not generally known in the trade.

A trade secret is protected from unlawful appropriation by competitors for ten years.

A trade secret is protected from unlawful appropriation by competitors for thirty years as long as it is kept secret and consists of elements not generally known in the trade.

A trade secret is protected from unlawful appropriation by competitors for twenty years.

A trade secret is protected from unlawful appropriation by competitors for seventy years.
A trade secret is protected by the common law from unlawful appropriation by competitors as long as it is kept secret and consists of elements not generally known in the trade.

4.
award:
2 out of
2.00 points

If a trademark is unregistered, which of the following may the holder recover when an infringer uses the mark to pass off goods as being those of the mark owner?

Only damages.

An additional amount of damages computed as a multiplier of 5 times the original damages.

Damages and an injunction prohibiting the infringer from using the mark.

Damages, an injunction prohibiting the infringer from using the mark, and additional damages based on a multiplier of 5 times the original damages.

Only an injunction prohibiting the infringer from using the mark.
Only the remedy of an injunction is available for an unregistered mark.

5.
award:
2 out of
2.00 points

Which of the following is false regarding trade secret protection?

A company’s client list may be considered a trade secret.

Competitors may discover secrets by going on public tours of plants and observing the use of the trade secret.

Lawful discovery of a trade secret means there is no longer a trade secret to be protected.

There is no registration of trade secrets.

Competitors may not discover trade secrets by doing reverse engineering.
Competitors may discover a trade secret by any lawful means, such as by doing reverse engineering or by going on a public plant tour and observing its use.

6.
award:
2 out of
2.00 points

Which of the following is true regarding punitive damages in product liability cases?

The amount of the punitive-damage award is determined by the maliciousness of the action only.

They are not available in product liability actions.

Punitive damages are meant to compensate the plaintiff for injury and to make the plaintiff whole.

The amount of the punitive-damage award is determined by the wealth of the defendant only.

The amount of the punitive-damage award is determined by the wealth of the defendant and also by the maliciousness of the action.
The amount of the punitive-damage award is determined by the wealth of the defendant and the maliciousness of the action.

7.
award:
2 out of
2.00 points

Network Solutions Inc., is funded by the National Science Foundation and is responsible for registering domain names on the Internet.

True

False
Network Solutions Inc., (NSI), which is funded by the National Science Foundation, is responsible for registering domain names on the Internet.

8.
award:
2 out of
2.00 points

Which of the following arises when a consumer knows that a defect exists but still proceeds unreasonably to make use of the product, creating a situation where the consumer has voluntarily assumed the risk of injury from the defect and thus cannot recover?

Last-clear-chance.

Pure comparative fault.

Assumption of the risk.

Contributory negligence.

Strict behavior.
Assumption of the risk arises when a consumer knows that a defect exists but still proceeds unreasonably to make use of the product, creating a situation in which the consumer has voluntarily assumed the risk of injury from the defect and thus cannot recover.

9.
award:
2 out of
2.00 points

Which of the following do courts focus on when a strict product liability action is involved?

Whether the consumer had a contractual relationship with the seller.

Whether the manufacturer knew of a problem with the product.

Whether the seller exercised all possible care in the preparation and sale of the product.

Whether the manufacturer was negligent.

Whether the product was in a defective condition and unreasonably dangerous when sold.
With strict products liability, courts focus on whether the product was in a “defective condition, unreasonably dangerous” when sold.

10.
award:
2 out of
2.00 points

What was the ruling of the court in the case of Welge v. Planters Lifesavers Co., the case in which the plaintiff injured his hand when a jar containing peanuts broke?

That the plaintiff was unable to recover because he was not the actual purchaser of the jar of peanuts.

That the case would be dismissed because the plaintiff could not establish that the jar was maintained in a pristine condition after its purchase.

That the plaintiff would be allowed to proceed because negligence was established.

That the plaintiff would be allowed to proceed with the lawsuit because of a lack of evidence that the jar had been damaged after its purchase.

That the plaintiff was unable to recover because negligence in manufacture of the jar could not be established.
According to the court, “Here we know to a virtual certainty (always assuming that the plaintiff’s evidence is believed, which is a matter for the jury) that the accident was not due to mishandling after purchase, but to a defect that had been introduced earlier.”

11.
award:
2 out of
2.00 points

A[n] _______________ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so.

Contract under seal

Voidable contract

Recognizance

Implied-in-fact

Informal contract
A recognizance arises when a person acknowledges in court that he or she will perform some specified act or pay a price upon failure to do so.

12.
award:
2 out of
2.00 points

In German product liability cases, consumers do not have a right to recover damages for pain and suffering or for emotional distress.

True

False
In German product liability cases, consumers do not have a right to recover damages for pain and suffering or for emotional distress.

13.
award:
2 out of
2.00 points

Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarship, and research?

The Limited Use Doctrine

The Approved Use Doctrine

The Fair Use Doctrine

The Trade Use Doctrine

The Copyright Use Doctrine
The fair use doctrine provides that others may reproduce a portion of a copyrighted work for purposes of criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, and research.

14.
award:
2 out of
2.00 points

As a general rule, the ________ intent of the parties is not relevant when determining whether a contract exists; rather, what is relevant is how they represented their intent through their actions and words.

Objective

Subjective

Comprehensive

Unilateral

Considered
The subjective intent of the parties is not usually relevant; what matters is how they represented their intent through their actions and words.

15.
award:
2 out of
2.00 points

Which of the following do courts often consider in determining whether a manufacturer was negligent in failing to warn?

The likelihood of the injury only.

The likelihood of the injury and the seriousness of the injury but not the ease of warning.

The ease of warning only.

The likelihood of the injury, the seriousness of the injury, and the ease of warning.

The seriousness of the injury only.
Courts often consider the likelihood of the injury, the seriousness of the injury, and the ease of warning when deciding whether a manufacturer was negligent in failing to warn

16.
award:
2 out of
2.00 points

A tying arrangement occurs when the holder issues a license to use a patented object only if the licensee agrees to buy some non-patented product from the holder.

True

False
A tying arrangement occurs when the holder issues a license to use the patented object only if the licensee agrees to buy some non-patented product from the holder.

17.
award:
2 out of
2.00 points

Which of the following is in effect not a contract at all?

An executed contract

A void contract

An executory contract

A voidable contract

An implied contract
A void contract is in effect not a contract at all.

18.
award:
2 out of
2.00 points

Congress passed the Uniform Electronic Transactions Act (UETA).

True

False
Congress did not write or pass the Uniform Electronic Transactions Act (UETA). The National Conference of Commissioners on Uniform State Laws proposed this piece of legislation, which almost every state has adopted.

19.
award:
2 out of
2.00 points

Which of the following is set out in the Restatement (Second) of Torts as a method by which to prove a design defect?

The risk-utility test.

The consumer propensity test.

The feasible alternatives test.

The design defect test.

The consumer expectations test.
The test to prove design defect, set out in the Restatement (Second) of Torts, is the consumer expectations test.

20.
award:
2 out of
2.00 points

The state-of-the-art defense is not available in all states in strict liability cases.

True

False
One defense that may not be available in all states is the state-of-the-art defense.

21.
award:
2 out of
2.00 points

In a[n] _____________ contract, the offeror wants a performance to form the contract.

Bilateral

Trilateral

Anticipatory

Complete

Unilateral
In a unilateral contract, the offeror wants the offeree to do something, not to promise to do something.

22.
award:
2 out of
2.00 points

In which of the following does a contract arise not from words but from the conduct of the parties?

Unilateral contracts

Liquidated contracts

Implied contracts

Express contracts

Bilateral contracts
Implied contracts arise not from words but from the conduct of the parties.

23.
award:
2 out of
2.00 points

A[n] ____________ mark is one that requires imagination, thought, and perception to reach a conclusion as to the nature of the goods.

Artful

Conclusory

Descriptive

Generic

Suggestive
A suggestive mark is one that requires imagination, thought, and perception to reach a conclusion as to the nature of the goods.

24.
award:
2 out of
2.00 points

Copyrights protect the expression of creative ideas.

True

False
Copyrights protect the expression of creative ideas.

25.
award:
2 out of
2.00 points

A[n] _____________ contract is one that contains all the legal elements of a contract.

Executed

Voidable

Approved

Formal

Valid
A valid contract is one that contains all the legal elements of a contract.

27.
award:
2 out of
2.00 points

A[n] ___________ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

Acceptance

Contract

Consideration

Offer

Legal object
The Restatement (Second) of Contracts defines a contract as “a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.”

28.
award:
2 out of
2.00 points

In the employer/employee context, the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.

True

False
Covenants not to compete restrict what an employee may do after leaving a company.

29.
award:
2 out of
2.00 points

Which of the following is true regarding damages that may be recovered in negligence-based product liability cases if proven?

Compensatory damages, punitive damages, administrative damages, and manufacturing damages may be recovered.

Punitive damages may be recovered, but compensatory damages may not be recovered.

Compensatory damages, punitive damages, and administrative damages may be recovered.

Compensatory damages may be recovered, but punitive damages may not be recovered.

Compensatory damages and punitive damages may be recovered.
Damages that are recoverable in negligence-based product liability cases are the same as those in any action based on negligence: compensatory damages and punitive damages.

30.
award:
2 out of
2.00 points

Upon which type of law is product liability law primarily based?

Tort law.

Executive law.

Legislative law.

Administrative law.

Contract law.
Product liability law is based primarily on tort law.

31.
award:
2 out of
2.00 points

Which of the following consists of the fruits of one’s mind?

Cognitive property

Tradable property

Protected property

Intellectual property

Theoretical property
Intellectual property consists of the fruits of someone’s mind.

32.
award:
0 out of
2.00 points

Paul was very excited about his first new vehicle purchase. He borrowed funds from his bank with which to purchase the car. Unfortunately, just a few days after he purchased the vehicle, the pistons in the engine overheated causing the engine to seize rendering the vehicle unusable. No one was injured, but Paul is very upset about his vehicle and plans to sue based on strict liability under the theory set forth by Section 402A of the Restatement (Second) of Torts. Which of the following is the most likely resolution of his claim?

He will be allowed to proceed only if he can establish that he did appropriate research prior to purchasing the vehicle and had no reason to know that it was likely to be defective.

He will be allowed to proceed so long as he is up-to-date on his loan payments.

He will not be allowed to proceed because the only avenue for this type of claim is through a negligence action.
→
He will not be allowed to proceed because there is no recovery under a strict liability theory for solely economic damages.

He will be allowed to proceed because the vehicle was in a defective condition.
Exhibit 10-3 “Summary of Product Liability Theories” provides that recovery may not be obtained under a strict liability theory for solely economic damages.

33.
award:
2 out of
2.00 points

When an individual product has a defect making it more dangerous than identical products, that individual product is said to have which of the following defects?

Warning.

Primary.

Design.

Exclusionary.

Manufacturing.
When an individual product has a defect making it more dangerous than other identical products, this individual product has a manufacturing defect.

34.
award:
2 out of
2.00 points

Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car. At what point is there a binding contract?

When the money is paid.

When the agreement is made.

Twenty days after the car is delivered and approved.

When the car is delivered.

Ten days after the car is delivered and approved.
As soon as the promises are exchanged, a contract is formed, and the parties’ legal obligations arise.

35.
award:
2 out of
2.00 points

Which of the following is a mark used in conjunction with a service?

Collective mark

Physical activity mark

Service mark

Product trademark

Certification mark
A service mark is a mark used in conjunction with a service, such as the name “AT&T” painted on a vehicle that provides repair services for AT&T phone users.

36.
award:
2 out of
2.00 points

Today’s law of contracts originated from judicial decisions in ______.

Italy

France

Spain

England

Switzerland
Today’s law of contracts actually originated in judicial decisions in England, later modified by early courts in the United States.

37.
award:
2 out of
2.00 points

In the case of, Toys “R” Us Inc., v. Canarsie Kiddie Shop Inc., evidence of actual confusion is a prerequisite for the plaintiff to recover in a trademark infringement action.

True

False
Evidence of actual confusion is a strong indication that there is a likelihood of confusion. It is not, however, a prerequisite for the plaintiff to recover.

38.
award:
2 out of
2.00 points

Which of the following is the most likely measure of recovery when a quasi-contract is involved?

Damages will be computed the same way as they are computed for any other contract.

The wholesale price of any good involved.

The amount sought by the plaintiff in the Complaint.

The amount set forth in the contract.

The fair market value of the matter involved.
In situations in which the court imposes a quasi-contract, the amount awarded will probably be based on fair market value.

39.
award:
2 out of
2.00 points

What was the result at the Supreme Court level in Wyeth v. Levine, the case in the text in which the defending drug company took the position that the plaintiff’s jury verdict on her state law claim alleging that the defendant improperly labeled a drug was preempted by federal law and should be overturned?

That the case should be dismissed because complying with state law would obstruct the purposes and objectives of federal drug labeling regulation.

That the case should be dismissed because it was impossible for the defendant to comply with both state and federal law.

That the case should be dismissed because the defendant could not be subjected to both federal and state law.

That the jury verdict would be upheld because Wyeth failed to submit evidence that the plaintiff was guilty of comparative negligence.

That the jury verdict would be upheld because the defendant could have complied with its state and federal law obligations.
According to the Supreme Court, “it is not impossible for Wyeth to comply with its state and federal law obligations and…Levine’s common-law claims do not stand as an obstacle to the accomplishment of Congress’ purposes in the FDCA [Food, Drug, and Cosmetic Act].”

40.
award:
2 out of
2.00 points

An attorney who says that a contract lacks “the proper form” is typically referencing which of the following?

The agreement lacked a proper offer.

The contract lacked both an appropriate offer and an appropriate acceptance.

The contract lacked consideration.

The contract lacked a proper acceptance.

The contract lacked a writing.
The defense that a contract lacks the proper form typically means it lacks a writing.

41.
award:
2 out of
2.00 points

Which of the following is a principle of The Paris Convention of 1883?

National treatment

Treaty affirmation

Complex treatment

Enforcement priority

Nonconditional protection
The Paris Convention of 1883 has three basic principles: (1) national treatment, as defined under the Berne Convention; (2) the right of priority, which allows a national of a member state, 12 months after filing in his or her home nation, to file an application in any other member state and have the date of application be the date of the filing in the home nation; and (3) common rules, which set out minimum standards of protection in all states.

42.
award:
2 out of
2.00 points

Under which of the following theories may a plaintiff be able to proceed even if the plaintiff cannot trace an injury caused by a product to any particular manufacturer?

The shared market liability theory.

The trade theory.

The market share theory.

The shared production theory.

The shared liability theory.
When plaintiffs cannot trace a product to any particular manufacturer, recovery may be possible because of the market share theory.

43.
award:
2 out of
2.00 points

In which of the following orders of ascending strength may marks fall?

Generic, descriptive, suggestive, arbitrary or fanciful.

Descriptive, generic, suggestive, arbitrary or fanciful.

Generic, suggestive, descriptive, arbitrary or fanciful.

Arbitrary or fanciful, generic, descriptive, suggestive.

Suggestive, generic, descriptive, arbitrary or fanciful.
A mark can fall into one of four general categories which, in order of ascending strength, are: (1) generic; (2) descriptive; (3) suggestive; and (4) arbitrary or fanciful.

44.
award:
2 out of
2.00 points

Under a strict product liability theory, who is considered a reasonably foreseeable party who may recover if injury is sustained?

Only the buyer and any one present in the buyer’s home when injury is sustained.

Only the buyer, the buyer’s family, and the buyer’s guests.

Only the buyer and the buyer’s family.

The buyer only.

The buyer, the buyer’s family, the buyer’s guests, and foreseeable bystanders.
Any reasonably foreseeable injured party who may recover for injuries includes the buyer; the buyer’s family, guests, and friends; and foreseeable bystanders.

45.
award:
2 out of
2.00 points

The Restatement (Second) of the Law of Contracts is not actually the law itself.

True

False
The Restatement (Second) is not actually the law itself, although judges frequently cite it because it is an authoritative statement of what the law is.

46.
award:
2 out of
2.00 points

Which of the following is sometimes referred to as an implied-in-law contract?

Express contracts

Express contracts and implied-in-fact contracts

Quasi-contracts

Implied-in-fact contracts

Express contracts and quasi-contracts
Quasi-contracts are sometimes called implied-in-law contracts, but they are not actually contracts.

47.
award:
2 out of
2.00 points

As recognized by the court in Sperry-New Holland v. John Paul Prestage and Pam Prestage, which of the following is true regarding the consumer expectations test for product defect?

That a plaintiff cannot recover if a reasonable person would conclude that the danger in fact of the product, whether foreseeable or not, outweighs the utility of the product.

That if the plaintiff, applying the knowledge of an ordinary consumer, sees the danger and can appreciate that danger, then he cannot recover for any injury resulting from that appreciated danger.

That a plaintiff may only recover if consumer oriented household goods are involved.

That a plaintiff may only recover if the plaintiff was the purchaser of the product causing injury.

That a plaintiff may only recover if the plaintiff reasonably expected the manufacturer to have insurance, that the manufacturer did have insurance of the type to cover the injury at issue, and that the plaintiff had no part in causing the injury.
According to the court in Sperry-New Holland v. John Paul Prestage and Pam Prestage, under the consumer expectations analysis, “if the plaintiff, applying the knowledge of an ordinary consumer, sees a danger and can appreciate that danger, then he cannot recover for any injury resulting from that appreciated danger.”

48.
award:
2 out of
2.00 points

Which of the following was the result at the U.S. Supreme Court level in Metro-Goldwyn-Mayer studios Inc., v. Grokster Ltd., the case in the text in which the Court addressed the legality of the defendants allowing users to share digital, typical music, files?

That the district court improperly dismissed the suit because a distributor who promotes infringement and takes steps to foster infringement is liable for infringement by third parties.

That the defendants had no responsibility to develop filtering tools or other mechanisms to diminish infringing activity and that the district court properly dismissed the lawsuit.

That there was no evidence that the defendants profited from the site allowing file sharing and that, therefore, the district court properly dismissed the lawsuit.

That the district court properly dismissed the suit because the system at issue had both legal and illegal uses.

That there was no evidence that the defendants acted to promote infringement and that, therefore, the district court properly dismissed the lawsuit.
According to the Court, “[We hold] that one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties.”

49.
award:
2 out of
2.00 points

Which of the following must a plaintiff generally show in order to recover in a product liability lawsuit?

That the defect should have been discovered and fixed prior to sale.

That the defendant was negligent.

Only that the product is defective.

That the product is defective and also that the defect existed when the product left the defendant’s control.

That the product is defective, that the defect existed when the product left the defendant’s control, and also that the defendant was negligent.
While a plaintiff must establish different elements under the product liability theories, the plaintiff must generally show two common elements: (1) that the product is defective, and (2) that the defect existed when the product left the defendant’s control.

50.
award:
2 out of
2.00 points

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

Negotiable instruments

Formal contracts

Recognizances

Simple contracts

Informal contracts
Negotiable instruments are unconditional written promises to pay the holder a specific sum of money on demand or at a certain time.