[LSU BLAW 3201 FRY FINAL VERSION A] – QUESTIONS AND ANSWERS | VERIFIED AND WELL DETAILED
ANSWERS | PLUS RATIONALES | GUARANTEED PASS | LATEST EXAM UPDATE
Core Domains
Contracts: Formation, Performance, and Breach
Torts: Intentional, Negligence, and Strict Liability
Agency and Employment Law
Business Organizations: Corporations, LLCs, and Partnerships
Uniform Commercial Code (UCC): Sales and Leases
Property: Real and Personal
Secured Transactions and Bankruptcy
Professional Responsibility and Ethics
Regulatory Compliance: Antitrust, Securities, and Consumer Protection
Introduction
This comprehensive examination is designed to rigorously assess your mastery of the fundamental principles of
business law as covered in LSU BLAW 3201. The exam measures your ability to not only recall foundational legal
theories but also to apply them to complex, real-world business scenarios. Through a series of multiple-choice
questions, you will be challenged to analyze fact patterns, identify legal issues, and make sound decisions based on
professional and ethical standards. This assessment emphasizes the practical application of legal rules in a business
context, preparing you for the critical thinking and decision-making required in a professional environment.
,SECTION ONE: QUESTIONS 1-100
1. A company hires an independent contractor to develop a new software program. The contract stipulates that
the software's source code will be owned by the company upon completion. The independent contractor uses a
pre-existing code library she created, which is not covered by the contract. Who owns the source code of the
new software program?
A. The independent contractor, as she created the new program.
B. The company, as the work was made for hire.
C. The independent contractor, as the pre-existing library is her own property, and the contract's scope is limited.
D. The company and the independent contractor as joint owners.
🟢C
🔴 Explanation: The ownership of the source code depends on the agreement. The "work made for hire" doctrine
generally applies to employees, not independent contractors. Since the contractor used her own pre-existing library
and the contract was silent on that specific component, she retains ownership of that portion, making the answer C.
2. A retail store customer slips on a wet floor, which has been wet for 30 minutes. A "Wet Floor" sign was placed
10 feet away but was obstructed by a display. In a negligence suit against the store, what is the most likely
outcome?
A. The customer wins, because the store had constructive notice of the hazard.
B. The customer loses, because the store had a sign posted.
C. The customer loses, because she was contributorily negligent.
D. The customer wins, because the store had actual notice of the hazard.
,🟢A
🔴 Explanation: The store had constructive notice because the floor was wet for 30 minutes, a reasonable amount of
time for them to discover and remedy it. The sign being obstructed does not provide adequate warning, making the
store negligent.
3. Which of the following is a correct statement regarding a valid contract?
A. Consideration must be adequate and fair for both parties.
B. An offer can be revoked at any time, even during the middle of performance.
C. A contract involving illegal subject matter is voidable by the party who was unaware of the illegality.
D. Mutual assent is established by an offer and an acceptance.
🟢D
🔴 Explanation: Mutual assent, or a "meeting of the minds," is the foundation of a contract, formed by a valid offer
and acceptance. Consideration need not be fair or adequate (A), an offer cannot be revoked during performance if
it's an option contract (B), and an illegal contract is void, not voidable (C).
4. The UCC's "battle of the forms" rule under 2-207 applies to what type of transaction?
A. A contract for the sale of real property.
B. A contract for the sale of goods between merchants.
, C. A contract for the provision of services.
D. A contract for the sale of a business.
🟢B
🔴 Explanation: UCC 2-207 governs the "battle of the forms" specifically for contracts for the sale of goods between
merchants, providing rules for when additional or different terms are included in acceptances.
5. Under the "mailbox rule," when does an acceptance become effective?
A. When the offeror receives it.
B. When the acceptance is dispatched by the offeree.
C. When the offeror signs the acceptance.
D. When the offeree's agent confirms receipt.
🟢B
🔴 Explanation: The mailbox rule states that an acceptance is effective upon dispatch, meaning when it is placed in
the mail or transmitted, provided it is properly addressed and stamped. This is an exception to the general rule
requiring receipt.
6. An agent enters into a contract on behalf of a disclosed principal. The agent has actual authority. After the
contract is formed, the principal becomes incapacitated. What is the status of the contract?
ANSWERS | PLUS RATIONALES | GUARANTEED PASS | LATEST EXAM UPDATE
Core Domains
Contracts: Formation, Performance, and Breach
Torts: Intentional, Negligence, and Strict Liability
Agency and Employment Law
Business Organizations: Corporations, LLCs, and Partnerships
Uniform Commercial Code (UCC): Sales and Leases
Property: Real and Personal
Secured Transactions and Bankruptcy
Professional Responsibility and Ethics
Regulatory Compliance: Antitrust, Securities, and Consumer Protection
Introduction
This comprehensive examination is designed to rigorously assess your mastery of the fundamental principles of
business law as covered in LSU BLAW 3201. The exam measures your ability to not only recall foundational legal
theories but also to apply them to complex, real-world business scenarios. Through a series of multiple-choice
questions, you will be challenged to analyze fact patterns, identify legal issues, and make sound decisions based on
professional and ethical standards. This assessment emphasizes the practical application of legal rules in a business
context, preparing you for the critical thinking and decision-making required in a professional environment.
,SECTION ONE: QUESTIONS 1-100
1. A company hires an independent contractor to develop a new software program. The contract stipulates that
the software's source code will be owned by the company upon completion. The independent contractor uses a
pre-existing code library she created, which is not covered by the contract. Who owns the source code of the
new software program?
A. The independent contractor, as she created the new program.
B. The company, as the work was made for hire.
C. The independent contractor, as the pre-existing library is her own property, and the contract's scope is limited.
D. The company and the independent contractor as joint owners.
🟢C
🔴 Explanation: The ownership of the source code depends on the agreement. The "work made for hire" doctrine
generally applies to employees, not independent contractors. Since the contractor used her own pre-existing library
and the contract was silent on that specific component, she retains ownership of that portion, making the answer C.
2. A retail store customer slips on a wet floor, which has been wet for 30 minutes. A "Wet Floor" sign was placed
10 feet away but was obstructed by a display. In a negligence suit against the store, what is the most likely
outcome?
A. The customer wins, because the store had constructive notice of the hazard.
B. The customer loses, because the store had a sign posted.
C. The customer loses, because she was contributorily negligent.
D. The customer wins, because the store had actual notice of the hazard.
,🟢A
🔴 Explanation: The store had constructive notice because the floor was wet for 30 minutes, a reasonable amount of
time for them to discover and remedy it. The sign being obstructed does not provide adequate warning, making the
store negligent.
3. Which of the following is a correct statement regarding a valid contract?
A. Consideration must be adequate and fair for both parties.
B. An offer can be revoked at any time, even during the middle of performance.
C. A contract involving illegal subject matter is voidable by the party who was unaware of the illegality.
D. Mutual assent is established by an offer and an acceptance.
🟢D
🔴 Explanation: Mutual assent, or a "meeting of the minds," is the foundation of a contract, formed by a valid offer
and acceptance. Consideration need not be fair or adequate (A), an offer cannot be revoked during performance if
it's an option contract (B), and an illegal contract is void, not voidable (C).
4. The UCC's "battle of the forms" rule under 2-207 applies to what type of transaction?
A. A contract for the sale of real property.
B. A contract for the sale of goods between merchants.
, C. A contract for the provision of services.
D. A contract for the sale of a business.
🟢B
🔴 Explanation: UCC 2-207 governs the "battle of the forms" specifically for contracts for the sale of goods between
merchants, providing rules for when additional or different terms are included in acceptances.
5. Under the "mailbox rule," when does an acceptance become effective?
A. When the offeror receives it.
B. When the acceptance is dispatched by the offeree.
C. When the offeror signs the acceptance.
D. When the offeree's agent confirms receipt.
🟢B
🔴 Explanation: The mailbox rule states that an acceptance is effective upon dispatch, meaning when it is placed in
the mail or transmitted, provided it is properly addressed and stamped. This is an exception to the general rule
requiring receipt.
6. An agent enters into a contract on behalf of a disclosed principal. The agent has actual authority. After the
contract is formed, the principal becomes incapacitated. What is the status of the contract?
