QUESTION 1 Which of the following is a false statement?

A. In order to meet the consideration requirement, the legal detriment suffered by each party must have been given in exchange for that of the other party.
B. Death of the offeror terminates the offer even if the offer could still be accepted and carried out by the estate of the offeror.
C. A counteroffer is treated as a rejection of the offer as well as a new offer.
D. Revocation refers to the offeree communicating to the offeror that the offeree does not want to accept the offer.

QUESTION 2 Which of the following statements regarding product liability is not true?
· One major problem with using negligence for product liability is that the plaintiff must show
· some specific act of negligence.
· Failure to warn about a generally or commonly known danger usually will lead to liability.
· Strict liability is a "no fault" system.
· To be held liable in strict liability, the product must be in essentially the same condition as
· when it left the defendant's control.

QUESTION 3 Which of the following is a correct statement?
· One of the requirements for a suit based on strict liability in the U.S. is a failure to exercise due care.
· The doctrine of strict liability applies only to abnormally dangerous activities, such as construction blasting with explosives, but not to products and goods manufactured and sold to consumers since manufacturing is not normally ultra-hazardous.
· To succeed in a products liability lawsuit based on common law negligence, the injured plaintiff must prove that there was a failure to exercise due care by the manufacturer or seller of the product.
· One essential requirement for a products liability lawsuit based on strict liability is clear and convincing evidence of a failure to exercise reasonable care.

QUESTION 4 Which of the following would not be a misappropriation of a trade secret?
- Paying an engineer who is working at a competitor to disclose the trade secret to you.
- Buying the competitor's product, then tearing it apart and analyzing it in your laboratory to reveal how the product works.
- Hiring a spy to break into a competitor's offices to acquire the secret.
- Asking one of your current engineers to disclose a trade secret of her former employer and she does so.

QUESTION 5 Which of the following is a false statement?
1. A voidable contract is a valid contract that can still be avoided by at least one of the parties to it.
2. A quasi-contract has no legal efficacy since it is a "pretend" contract.
3. Pursuant to the common law "mirror-image" rule, an offer must be accepted in its entirety without modification or conditions or else no contract can be formed.
4. An advertisement is generally not treated as an offer to enter into a contract pursuant to U.S. law.

QUESTION 6 Which of the following is a false statement?
- U.S. child labor laws provide that children aged 12-14 may engage in sales work outside school hours if their parents consent and if no heavy lifting is involved.
- Both men and women can sue for sexual harassment in the United States.
- Whistleblowing by employees in the private sector can now be a legally protected activity pursuant to some states' laws in the United States.
- A deceptive advertisement is one that is either false or misleading pursuant to the U.S. Federal Trade Commission's legal standards.

QUESTION 7 Which of the following is a true statement?
- An invitation to negotiate usually will be construed as constituting an offer to enter into a contract.
- Under the common law, an offer ordinarily does not need to be communicated to the offeree to be effective.
- An agreement under the common law of contracts usually consists of an offer and an acceptance.
- In most states in the U.S., the revocation of a contract is not legally effective until it is actually received by the offeree.

QUESTION 8 Central Data Corporation and Digital, Inc., are competitors. They form a joint venture to research, develop, and produce new software for a particular line of computers. This joint venture is
- a per se violation of the Sherman Act
- exempt from the antitrust laws.
- subject to continuing review by the appropriate federal agency.
- subject to the Rule of Reason.