1. Which of the following best describes the effect of a breach of contract?
- Nonmaterial breaches that are uncorrected for a reasonable time discharge the other party.
- Any breach discharges the other party.
- No breaches automatically discharge the other party.
- If the breach is material and uncorrected, the other party is discharged.
- Nonmaterial breaches do not enable action for damages.
2. Who is allowed to enter into a hot cargo contract?
- unions and employers
- employers and nonunionized employees
- neither unions nor employers
- unions, but not employers
- unions, employers, and nonunionized employees
3. What does it mean to say that the American legal system is adversarial?
- American citizens have the right to representation in court.
- The court system should appoint attorneys to represent both sides of a case.
- Truth and justice are best determined by an independent researcher.
- The best way to administer justice is to hear the full arguments of interested parties on both sides.
- People with a personal interest in a case make terrible advocates.
4. Which type of warranty assures the buyer that the goods will be up to his or her standard?
- express warranty
- warranty of title
- implied warranty of merchantability
- lifetime warranty
- implied warranty of fitness for a particular purpose
5. Which of the following facts would void the contracts of a person?
- The person suffers extreme hardship.
- The person is under guardianship of a court.
- The person has not been declared incompetent by a court but lacks the capacity to understand.
- The person is intoxicated.
- The person is a minor.
6. In which of the following scenarios would Tina be liable for the tort of negligence?
- Tina suffers a heart attack while driving and slams into another car.
- Tina dunks a basketball and, because of a structural defect, the backboard crashes down and injures her teammate.
- Tina takes cold medication that warns of drowsiness as a possible side effect. She subsequently falls asleep while driving and injures another driver.
- Tina breaks into her high school and alters her grades.
- Tina tries to hit her professor with a rock, but misses and hits another student instead.
7. Which of the following is required for consideration to be valid in a contract?
- Consideration must be stated in the contract.
- Consideration must have a monetary value.
- Consideration must be accompanied by an option.
- Consideration must be performed simultaneously by both parties.
- Consideration must be based on a legal obligation rather than a moral obligation.
8. Which sales are regulated by Article 2 of the Uniform Commercial Code?
- copyright sales
- real property sales
- sales of services
- trademark sales
- sales of tangible personal property
9. Which power enables courts to evaluate laws and declare them unconstitutional?
- stare decisis
- equal protection
- rational basis test
- judicial review
- intermediate scrutiny
10. Which economist asserted that corporations should obey laws and social customs, but otherwise should concentrate all of their resources on making a profit?
- Adolph Berle
- Milton Friedman
- John Maynard Keynes
- Adam Smith
- B. Carroll