1. Jack agrees to sell his sports equipment store to Kate and, as part of the sale, promises not to open a similar store in the United States for twenty years. Jack's promise is

1) valid and enforceable.

2) an unreasonable restraint of trade like all covenants not to compete.

3) unreasonable in terms of Kate's "goodwill" and "reputation."

4) unreasonable in terms of geographic area and time.

2. Bobdog manufactures large machines that crush cars for recycling. The machine had a clear warning on it that the area should be clear prior to pressing the "crush" button. However, the operator ignored this warning and another worker, Joan, was seriously injured. Based on class discussion and product liability laws what is the likely outcome of a lawsuit if Joan sues Bobdog?

1) Bobdog's warning is a complete defense to a product liability case.

2) If Joan presents evidence that Bobdog could have improved safety and prevented this accident with simple changes to the machine design then Bobdog will be liable.

3) Bobdog is negligent per se.

4) The operator of the machine is negligent and the operator negligence "comparatively" eliminates the negligence of Bobdog.

3. Jay and Kim enter into a contract by which Jay agrees to sell Kim his laptop computer for $500. The contract will be fully executed when

1) Jay and Kim sign the contract.

2) Jay gives possession of the computer to Kim.

3) Kim pays Jay $500.

4) both (2) adn (3).

4. Tom enters a coffee shop in which he has opened an account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing he will be billed at the end of the month. Tom has formed

1) an fully executed contract.

2) an express contract

3) a quasi contract.

4) an implied contract.

5. Neil met Hank at a bar and both were drinking. Neil told Hank about a signed copy of an album by the Beattles he had. Neil joked about selling it to Hank and even said, "I bet you would not buy it for $250, Hank said, "I accept your offer. What is the likely consequence of that exchange?

1) No contract was formed because of a violation of the statute of frauds

2) A contract was formed. Neil made an offer with definite terms and Hank accepted.

3) No contract was formed because Neil and Hank were incapacitated due to alcohol consumption.

4) No contract was formed because Neil never made a serious offer.

6. John, was working on a project in his neighbor's shed and started to get hot. The shed did not have any windows, but he noticed that it had an old outboard motor attached to an old fishing boat. The motor was positioned such that he thought the turning of the propeller would act like a fan to cool him. He managed to start the outboard motor and it did seem to provide some relief from the hot stale air. Forgetting about the propeller he continued to work on his project until he finished. He stepped back from his work area wanting to get a better look at his project and stepped into the propeller causing him serious injury. He brought a lawsuit against the WaterMachine, the maker of the outboard motor. What is WaterMachine's best defense?

1) Product Misuse. TheWaterMachine was not designed to be used as a fan.

2) No Duty of Care. WaterMachine does not owe a duty of care to John.

3) No Privity of Contract. John did not own the WaterMachine motor it was owned by the neighbor and WaterMachine had no relationship with John.

4) No Liquidated Damages. Courts do not allow liquidated damages in excess of the expected real damages.

7. Farrid tells the local Copy Store that he needs his $50 copy order finished by 5:00 or he will lose $1,000. The Copy Store says it understands and promises to deliver the copies by 5:00. The Copy Store fails to deliver the copies by 5:00. Farrid sues the Copy Store, what's the likely outcome?

1) The Copy Store will owe Farrid damages under the tort of wrongful interference with a contractual relationship.

2) Farrid will win the full $50 order cost of the copies for "breach of contract."

3) Farrid will win the $1,000 as consequential damages for the Copy Store's failure.

4) Farrid will not prevail because it's common for copies to be late.

8. Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

1) no contract.

2) a bilateral, executory contract.

3) a bilateral, executed contract.

4) a unilateral, executed contract.

9. As a joke, Adam takes Beth's business law book and hides it so that Beth cannot find it during the week before the exam. Adam may have committed

1) infliction of emotional distress.

2) conversion

3) placing a person in a false light.

4) trespass to personal property.

10. Which of the following is NOT a type of transaction that generally must meet the common law Statute of Frauds requirements?

1) Contracts for the sale of real property (real estate).

2) Contracts for the sale of goods for more than $500

3) Contracts that take more than a year to complete.

4) All of these contracts must meet the common law Statute of Frauds requirements