Question 1. Lightspeed Corporation makes computers, each of which is packaged with a shrink-wrap agreement. Milo buys a Lightspeed desktop. The shrink-wrap agreement is most likely enforceable if:
- Milo buys the computer directly from Lightspeed.
- Milo expressly agrees to the terms in the shrink-wrap agreement.
- Milo reads the shrink-wrap agreement.
- the terms in the shrink-wrap agreement concern warranties.
Question 2. Rally Corporation enters into a contract to sell ski gear to SnoSportz Company, which sells a pair of the skis to Tyra, a consumer, who later sells them to Uli, another consumer. Article 2 of the UCC applies to the sales transactions between:
- all of the buyers and sellers
- Rally and SnoSportz only
- SnoSportz and Tyra only
- Tyra and Uli only
Question 3. Fresh Produce, Inc., and Great Grocery Stores dispute the interpretation of an ambiguous phrase in their contract. In a suit between the parties to construe the contract, a court may accept evidence of:
- consistent additional terms only
- consistent additional terms and contradictory terms only.
- contradictory terms only
- anything extrinsic to the contract.
Question 4. Recreation Supplies, Inc. (RSI), and Sam, the owner of Tourist Time Shop, orally agree to a sale of beach balls and seashells for $1,000. Sam gives RSI a check for $400 as a partial payment. This contract is:
- enforceable to the extent of $400
- fully enforceable because it is for specially made goods
- fully enforceable because it is oral
- not enforceable
Question 5. Jelly Jar Company includes in its online offers a provision that indicates any disputes arising under the contract must be resolved in Kansas. Lena, a resident of Maine, accepts Jelly Jar's offer. If a dispute arises, a court will most likely rule that it must be resolved in:
- Kansas.
- Kansas or Maine
- Maine
- the location selected by the first party to file a suit
Question 6. A failure of the Federal Bureau of Investigation to comply with a request under the Freedom of Information Act (FOIA) may be challenged in:
- a federal district court.
- a hearing before the U.S. Freedom of Information Agency.
- a meeting with Congress's FOIA subcommittee.
- a special conference with the president of the United States.
Question 7. Pure Water Company is subject to a decision by the Environmental Protection Agency. Pure Water appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision
- changed the agency's prior policy without justification
- followed a consideration of all relevant factors
- was accompanied by a rational explanation
- was plainly warranted by the evidence.
Question 8. After notice-and-comment rulemaking, the U.S. Bureau of Land Management (BLM) issues a new rule and applies it to Clearcut Timber Company. Clearcut appeals the application to a federal court. The court will most likely defer to the BLM's interpretation of
- the facts and the law
- the agency's authority
- procedural requirements
- the Constitution
Question 9. Grill deals in the repair and sale of new and used clocks. West brought a clock to Grill to be repaired. One of Grill's clerks mistakenly sold West's clock to Hone, another customer. Under the Sales Article of the UCC, will West win a suit against Hone for the return of the clock?
- No, because the clerk was not aware that the clock belonged to West
- No, because Grill is a merchant to whom goods had been entrusted
- Yes, because Grill could not convey good title to the clock
- Yes, because the clerk was negligent in selling the clock.
Question 10. Under the Sales Article of the UCC, which of the following events will release the buyer from all its obligations under a sales contract?
- Destruction of the goods after risk of loss passed to the buyer
- Impracticability of delivery under the terms of the contract
- Anticipatory repudiation by the buyer that is retracted before the seller cancels the contract
- Refusal of the seller to give written assurance of performance when reasonably demanded by the buyer