Contracts and Sales Law Exam Preparation Guide
Course
Introduction
Contracts and Sales Law explores the foundational principles governing legally binding agreements and the sale of goods. The course examines contract formation, interpretation, performance, breach, and remedies, alongside relevant provisions under the Uniform Commercial Code (UCC). Students will analyze case law and hypothetical scenarios to understand offer and acceptance, consideration, capacity, legality, defenses to enforcement, and damages. Emphasis is placed on the specialized rules for the sale of goods, including warranties, risk of loss, and remedies for breach, equipping learners with the skills to identify and resolve legal issues in both commercial and consumer contexts.
Recommended Textbook
Business Law Text Cases An Accelerated Course 14th Edition by Roger LeRoy Miller
Available Study Resources on Quizplus
19 Chapters
1368 Verified Questions
1368 Flashcards
Source URL: https://quizplus.com/study-set/1151 Page 2
Chapter 1: Law and Legal Reasoning
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22544
Sample Questions
Q1) Zoom In, Inc. is engaged in the business of coding, with an emphasis on Internet marketing, business apps, and intra-corporate networks. In all of Zoom In's business activities, it is subject to United States laws and regulations. The basis for all law in the U.S. is
A) the U.S. Constitution.
B) each of the states' individual constitutions.
C) legislation enacted by Congress.
D) the executive orders of the president.
Answer: A
Q2) Rupert is a victim of Sara's violation of a criminal law. Criminal law is concerned with A) the prosecution of private individuals by other private individuals.
B) the prosecution of public officials by private individuals.
C) the relief available when a person's rights are violated.
D) wrongs committed against the public as a whole.
Answer: D
Q3) Courts do not depart from precedents.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Business and the Constitution
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22545
Sample Questions
Q1) Chun operates Fresh Spring Fruits, a small market stocked entirely with produce grown on his farm. Under what clause of the Constitution can the federal government regulate Chun's activities? What is Chun's best argument against federal regulation of his farm and business?
Answer: According to decisions by the United States Supreme Court, under the commerce clause, Congress has the power to regulate any activity-interstate or intrastate-that affects interstate commerce. Thus, under that clause, it could be argued that a farmer's growing and selling of produce is subject to federal regulation because these activities affect interstate commerce.?The farmer-vendor's best argument against federal regulation of his farm and business in this problem might be that in his case these activities and their effects are purely local. But because of the economic character of these activities, and hence their effect on interstate commerce, however minimal and despite their local character, it is unlikely that a court would accept this argument.
Q2) The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Courts and Alternative Dispute Resolution
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22546
Sample Questions
Q1) Salina files a suit against Tanner. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not adopt. This is
A) arbitration.
B) mediation.
C) negotiation.
D) not a legitimate form of dispute resolution.
Answer: B
Q2) Litigation is the process of resolving a dispute through the court system.
A)True
B)False
Answer: True
Q3) Negotiation can involve the parties to a dispute and their attorneys.
A)True
B)False
Answer: True
Q4) International treaties often stipulate arbitration for resolving disputes.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Tort Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22547
Sample Questions
Q1) Fifi, a clerk at a Games n' Gamers store, takes a video game player and a selection of new games from the store without permission. Fifi is liable for A) appropriation.
B) no tort.
C) conversion.
D) wrongful interference with a business relationship.
Q2) Manuel is walking past Tomas's house when he hears a smoke alarm going off. He also hears a child calling for help and sees smoke coming from a window. Manuel rushes into Tomas's house, finds the child and brings it outside. If Tomas sues Manuel for trespass to land, Manuel's defense will probably be A) assisting someone in danger.
B) consent.
C) self-defense.
D) the reasonable person defense.
Q3) The purpose of tort law is to provide remedies for the violation of various protected interests.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Criminal Law and Cyber Crime
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22548
Sample Questions
Q1) Suzu, an employee of Ridgeline Credit Union, deposits into her personal account checks entrusted to Ridgeline through its ATM system by customers to deposit into their accounts. This is
A) burglary.
B) embezzlement.
C) larceny.
D) mail and wire fraud.
Q2) Bev wrongfully takes an unopened carton from a Cold Storage Warehouse loading dock, puts the carton in her car, and drives away. This is A) robbery.
B) forgery.
C) larceny.
D) no crime.
Q3) Public officials prosecute criminal defendants.
A)True
B)False
Q4) A stolen credit card is more likely to hurt the cardholder than a merchant.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Business Ethics
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22549
Sample Questions
Q1) Corporations can be viewed as "citizens" that are expected to participate in bettering society.
A)True
B)False
Q2) The effectiveness of internal company codes of ethics is determined by the degree of their enforcement by legal authorities.
A)True
B)False
Q3) In business deals, Fiona, the chief executive officer of Glazed Donuts, Inc., follows duty-based ethical standards. These are most likely derived from A) a corporate ethics code.
B) a cost-benefit analysis.
C) philosophical reasoning.
D) the law.
Q4) Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market? What conflicts might arise if the firm stops selling this product?
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Nature and Terminology
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22550
Sample Questions
Q1) Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided
A) both parties are released from it.
B) both parties must fully perform their obligations under it.
C) a wholly different contract is agreed to.
D) a wholly different contract is imposed "as if" the parties had agreed.
Q2) Pavers, Inc., contracts with a QuikStop store to repave the store's parking lot for a certain price. The requirements of this, and any other, contract include
A) consideration.
B) acceptability.
C) achievability.
D) practicality.
Q3) If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.
A)True
B)False
Q4) An implied contract is not an actual contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Agreement in Traditional and E-Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22551
Sample Questions
Q1) Corporate Code, Inc., sells business software-accounting and book-keeping 2, blank business forms, inventory control functions, and the like-in different combinations, in different packages, at different prices. Each package includes a shrink-wrap agreement that limits warranties and remedies. Developmental Research Corporation (DRC) buys a Corporate Code package and uses the product. Later, DRC files a suit against the software seller, claiming that the product was flawed and that the flaws caused DRC to suffer business losses. DRC asks for relief that exceeds the limits in the shrink-wrap agreement. What is a shrink-wrap agreement? Are such agreements always enforced? Under what circumstances is a court likely to enforce this agreement?
Q2) Fresh Service, Inc., offers to deliver produce to Growers' Market's customers for a certain price. Fresh's intent to extend a serious offer to Growers' Market is determined by reference to Fresh's A) assumptions.
B) beliefs.
C) intentions.
D) words and conduct.
Q3) An effective offer requires reasonably definite terms.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Consideration, Capacity, and Legality
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22552
Sample Questions
Q1) Contracts in restraint of trade are contrary to the public policy that favors competition in the economy.
A)True
B)False
Q2) While biking, Jolene is injured when Kirby carelessly causes them to crash. Kirby's insurance company offers Jolene $50,000 to release Kirby from liability, and she accepts. Later, Jolene learns that her injuries are more serious than she realized. The release is A) enforceable.
B) unenforceable because Jolene's injuries are unforeseeably difficult.
C) unenforceable because Kirby has a preexisting duty to pay.
D) unenforceable because the release is an illusory promise.
Q3) Refer to Fact Pattern 9-2. Sal and Tasty
A) may rescind their entire contract.
B) may rescind their contract to the extent that it is executory.
C) must perform their entire contract.
D) must perform the part of their contract that is executory.
Q4) If an illegal contract is executory, either party can always enforce it.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Defenses to Contract Enforceability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22553
Sample Questions
Q1) Courts may award punitive damages in fraud actions.
A)True
B)False
Q2) Refer to Fact Pattern 10-1. The contract between Doyle and Ezra that includes the mistake may be rescinded if the mistake involves
A) a material fact.
B) any fact.
C) value or quality.
D) any of the choices.
Q3) Refer to Fact Pattern 10-1. The contract between Doyle and Ezra that includes the mistake may be rescinded if the mistake concerns
A) a basic assumption on which the contract was made.
B) a term in the contract subject to only one reasonable interpretation.
C) a detail on which the parties had a true "meeting of the minds."
D) a third party, such as County Title.
Q4) Misrepresentation cannot occur by silence.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Third Party Rights and Discharge
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22554
Sample Questions
Q1) Marco and Ned enter into a contract for the sale of Marco's apartment for which Ned agrees to pay him $100,000. Marco cannot prohibit Ned from transferring his right to the ownership of the apartment because such a prohibition is A) against public policy.
B) immoral.
C) unconscionable.
D) a crime.
Q2) Contract duties are not assigned-they are delegated.
A)True
B)False
Q3) Lew's Landscaping Service substantially performs its contract with Metro Office Park. Metro's duty to perform A) remains absolute. B) is discharged.
C) is excused.
D) is suspended.
Q4) A delegation relieves the party making it of the obligation to perform.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Breach of Contract and Remedies
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22555
Sample Questions
Q1) Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.
A)True
B)False
Q2) Copper Circuit, Inc., and Direct Electric LLC sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is
A) a liquidated damages clause.
B) a nominal-damages clause.
C) a waiver-of-breach clause.
D) a penalty clause.
Q3) The standard measure of compensatory damages is the value of breaching party's promised performance.
A)True
B)False
Q4) Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Intellectual Property Rights
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22556
Sample Questions
Q1) From Southeast Asia, Tai Ltd. exports genuine trademarked goods to the United States. Tai also makes labels bearing another firm's trademark, ships the labels to another location, and then affixes them to an inferior product. Tai sells these goods to retailers who are unaware that the marks are counterfeit. It is a crime to A) import genuine trademarked goods.
B) traffic in counterfeit packaging.
C) sell counterfeit versions of brand-name products in foreign countries.
D) unknowingly buy goods with a counterfeit mark.
Q2) AllforOne Inc. develops a new phone that the company names "OneforAll." AllforOne can obtain trademark protection for A) the phone.
B) the "newness" of the device.
C) the name "OneforAll."
D) none of the choices.
Q3) The theft of trade secrets is a federal crime.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Internet Law, Social Media, and Privacy
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22557
Sample Questions
Q1) Robert registers a domain name-sweetfriedpotatos.com-that is a misspelling of a popular brand-sweetfriedpotatoes.com. This is
A) cybersquatting.
B) typosquatting.
C) trademark infringement.
D) trademark dilution.
Q2) Eddie and other users of Facebook and other social networking sites post trademarked images and copyrighted materials on these sites without permission. This is
A) a violation of the intellectual property rights of the owners of the images and materials.
B) within the rights of the users of social networks.
C) a subject for dispute resolution by the providers of the social networks.
D) a "business-extension exception" under the Electronic Communications Privacy Act.
Q3) Employees' posts on social media may be protected under labor law.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: The Formation of Sales and Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22558
Sample Questions
Q1) Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by
A) mutually agreeing not to commit fraud.
B) repeating the terms in a phone call.
C) setting out the terms in a memo.
D) shaking hands on the deal.
Q2) Under the "partial performance" exception to the UCC, an oral contract for goods worth more than $500 is enforceable if the goods are designed to partially perform a specific function.
A)True
B)False
Q3) Stitches Corporation enters into a contract to sell denim clothing to Trend Fashion Company, which in turn sells the clothing to consumers. In contrast to standards that apply to consumers, the UCC imposes on merchants
A) less strict legal standards.
B) special business standards.
C) stricter ethical standards.
D) the same overall standards.
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Performance, Breach, and Warranties of Sales and
Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22559
Sample Questions
Q1) Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting. Grande Floors, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified
A) by clear, conspicuous language called to the buyer's attention.
B) by implied affirmations of fact relating to the goods. C) in any way that the seller sees fit for the ordinary purpose. D) in no way.
Q2) An installment contract is breached if a seller tenders any nonconforming goods. A)True
B)False
Q3) Express warranties displace inconsistent implied warranties with no exception. A)True
B)False
Q4) The doctrine of commercial impracticability only extends to problems that are unforeseen.
A)True
B)False
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Agency Relationships in Business
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22560
Sample Questions
Q1) Flo, an agent for Grover, enters into a contract on Grover's behalf with Hong that must be in writing to be enforceable under the Statute of Frauds. Failure to comply with the equal dignity rule, with respect to this contract, can make the contract voidable at the option of
A) Flo.
B) Grover.
C) Hong.
D) none of the choices.
Q2) Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether A) Rod indicated that he was acting on behalf of Savers Bank.
B) Savers Bank authorized the act.
C) Savers Bank furnished the means by which the injury was inflicted.
D) the act is one commonly performed by employees for their employers.
Q3) The equal dignity rule requires that if a contract entered into by an agent is or must be in writing, the agent's authority must also be in writing.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Small Businesses and Limited Liability Companies
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22561
Sample Questions
Q1) Most states treat a partnership as an aggregate for most purposes.
A)True
B)False
Q2) The members of a limited liability company have unlimited liability for any loss or injury caused by the wrongful acts or omissions of the firm.
A)True
B)False
Q3) A limited liability company can be taxed as a corporation.
A)True
B)False
Q4) Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.
A)True
B)False
Q5) In a limited liability company, the management may consist of members or nonmembers, but not both.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Corporations
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22562
Sample Questions
Q1) Brad is a shareholder of Cloud Servers Inc. He will be deemed to have a fiduciary duty to Cloud and its minority shareholders if he has a sufficient number of shares to A) assert the business judgment rule.
B) bring a shareholder's derivative suit.
C) exercise de facto control.
D) participate in a cumulative vote.
Q2) A court will not pierce the corporate veil of a corporation simply because it is too thinly capitalized.
A)True
B)False
Q3) Security Insurance, Inc. has a board of five directors. Security's bylaws do not state any quorum requirements. In most states, a quorum for Security's board meetings would be
A) one director.
B) three directors.
C) four directors.
D) all of the directors.
To view all questions and flashcards with answers, click on the resource link above. Page 21