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Test Bank for Business Law and the Regulation of Business, 14th Edition by Richard A. Mann.pdf

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Test Bank for Business Law and the Regulation of Business, 14th Edition by Richard A. M

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QUESTIONS,mWITHmSOLUTIONSmANDmEXPLANATIONS,
FROMmPRIOR mBULm4310mEXAMSmOFmTESTmTWOmMATERIAL
©mRobert mW.mEmerson,mJunem8,m2020

Themhundredsmofmquestionsmbelowmhavembeenmputmintomthesemthreemoverallmtopics,mcoveredminmt
hismordermduringmthismsemester.

Contractsm(Questionsm1-277) Pagesm m 1-119

ThemFirstmAmendmentmandmFreedommof mSpeechm(Questionsm278-297) Pagesm119-

127mEmploymentmDiscriminationmLaw m(Questionsm298-340) Pagesm127-143

It mismverymlikelymusefulmformyoumtompracticemtakingmtestsmbymstartingmwithmthemothermdocument malso
mposted monmthemcoursemwebsite,mcontainingmthesemquestionsmbut mwithout mthemanswersmand mexplanat

ions.m Aftermyoumpractice,mthenmyoumcanmlookmat mthismdocument mand mread mthemexplanations,mevenmf
ormthemquestionsmyoumanswered mcorrectly.m (Yoummaymstillmlearnmfrommdiscussionmormpagemreferenc
esmthat myoumhad mnot malreadymthoroughlymconsidered.)m Alsomnote:mwhilemtheremnowmaremonlymmulti
ple-choicemquestionsmonmthemtests,mtheremweremtrue-
falseminmthempast,msomamnumbermof mthempracticemquestionsmheremaremtrue-
false.m Themsubstancemof mthosemtrue-
falsemquestionsmremainsmquitempertinent,mand mamnumbermof mmultiple-
choicemquestionsmonmtestsmmaymhavemamtrue-
falsemelement mtomthemm (e.g.,m “Pickm them truem statement”m orm “pickmthem falsem statement”m (of m them fiv
em statements,m a-e,mformthat mquestion).

Asmwithmallmmaterialmposted monmthemcoursemwebsite,myoumaremfreemtomprint mthismout mand mbringmit mtom
themtest.m I mammneithermrecommendingmthat mapproachm(lotsmof mpaper!),mnormdiscouragingmit,mbut msi
mplymnotingmthat mit mismentirelymyourmcallmwhethermtomemploymthat mstrategy.

Barron’smreferencesmaremtomRobert mW.mEmerson,mBusinessmLaw m(Barron’s,m6thmed.m2015).mRefere
ncesmtom“LSB”maremtomRobert mW.mEmerson,mLaw,mSocietymand mBusinessmTarget mCopy,m2020).m The m
numbermaftermambookmreferencemismampagemnumberm–
me.g.,mLSB m28mmeansmthem28thmpagemof mthemLSB mbook.m Pagemreferencesmaremgeneralmand mmay,mon

moccasion,mbemoff mbymampagemormtwo.

Referencesmtomanswersmcomingmfrommlectures,mof mcourse, musuallymrefermtomlecturesmfrom mpreviousm
semesters,masmordinarilymwemhavemnot mgottenmtomthat mmaterialmyet mthismsemester.m Most mof mthosemle
cturemdiscussionsmlikelymwillmoccurmthismsemestermasmwell.

Asmwithmallmmaterialmposted monmthemcoursemwebsite,myoumaremfreemtomprint mthismout mand mbring mit mtomt
hemtest.m I mammneithermrecommendingmthat mapproachm(lotsmof mpaper!),mnormdiscouragingmit,mbut msim
plymnotingmthat mit mismentirelymyourmcallmwhethermtomemploymthat mstrategy.


Contractsm(Questionsm1-277)

1. Pickmthemtruemstatement.
1

,a. Fact mPattern:mSam,mamknownmalcoholicmwhomlivesmnext mdoor,mcomesmovermonemdaymand msa
ysmthat msincemyoumhavembeenmsuchmamgreat mneighbor,mhemwillmsellmyoumhism$100,000mhousemfo
rmonly
$60,000.m Sammismobviouslymintoxicated.mYoumimmediatelymagreemand mdraft mamcontract mformthe




2

, sale.mSammsignsmit mand mleaves,mbut mamweekmlatermhemcomesmtomyoumand mclaimsmhemdidn’t mknowm
what mhemwasmdoingmand mwantsmtomdisaffirmmthemcontract.
Statement:mSammismlegallymbound mtomthemtermsmof mthemcontract.
Answer:mFalse.mAmkeymfactmismthatmthismhomemworthm$100,000mwasmsoldmform$60,000m–
mamvastlymlow mpricemthatmthemneighbormmustmhavemknownmwasmridiculouslymlow.mTheremwasm

nomothermconsiderationmtomcompensatemformthatmhugemdifferential.m Thus,mthemneighbormwas
mputmonmnoticemthatmammistakemormthatmSamm–

mknownmtombemamdrunkard,mandmobviouslymintoxicated m–mwasmincapacitated.mSeemLSB m272.-

mHabitualmdrunkard mstatutes.mBarron’smpagem132.

b. Fact mPattern:mSidneymand mHallemcreatemanmintegrated mcontract mthat mcompletelymand munambi
guouslymlaysmout mthemtermsmof mtheirmagreement.m SidneymismtomwashmHalle’smcarmwithmsoapmand m
water,mvacuummeverymroomminmhermhouse,mand mmowmhermlawn.m HallemismtompaymSidneym$200mf
ormallmof mthis.mAmdisputemeruptsmbetweenmthemtwompartiesmovermthemtermsmof mtheirmcontract.m Hal
lemarguesmthat mSidneymhad mmentioned mthat mSidneymwould mwaxmthemcar,malso.m Hallemattemptsmt
omoffermevidencemthat mSidneymagreed mtomwaxmit mand mevenmasked mwhatmkind mofmwaxmtomuse.mStat
ement:mOrdinarily,mHallemcanmpresent mthat mevidence.
Answer:mFalse.m LSBm300-
301.mInmanmintegratedmcontract,mcourtsmmustmstickmtomthemexpressmtermsmof mthemcontractman
dmexcludemanymextraneousmevidence.mHere,mthemcontractmspecificallymonlymmentionsmsoapman
dmwater.
c. Statement:mSeekingmanmordermof mspecificmperformancemcanmservemasmamvaluablempost-
mjudgment mbargainingmtoolmtominducemamlosingmdefendant mtomagreemtomamnew mcontract mmoremattrac

tivemtomthemplaintiff.
Answer:mTrue.m Barron’smpagem171-
172.m“SpecificmPerformance”mcoversmthismquestion.mLSBm336mcoversmthismasmwell.m Note:mAnm
injunctionmorderingmspecificmperformancemcompelsmthemlosingmpartymtomtakemactionsmtomconf
ormmwithmthemtermsmof mthemcontractm-
me.g.,mturnmovermthemdeedmtomthemproperty,mhandmovermthemraremcoin,metc.mSometimes,mrather

mthanmdomthat,mamdefendantmmaymprefermtomreachmanothermagreementmwithmthemwinningmplai

ntiff m-me.g.,mpaymhimmsomethingmtomholdmontomthemrealmestatemormthemraremcoin.
d. Fact mPattern:mSalmownsmambaseballmcard mstoremand mismsellingmamRobmEmersonmrookiemcard m
form50mcents.mThirteen-year-
old mTimmymcomesminmand mbuysmthemcard.m AsmTimmymwalksmout,mSalmopensmampricemguidemand mse
esmthat mthemcard mhasmgonemupminmvaluemsincemthemlast missue,mtom$500.m HemcatchesmTimmymoutsidem
themstoremand mtellsmTimmymthat mhemmademammistakemand mthemcard mmust mbemreturned mormTimmymm
ust mpaymthem$500.
Statement:mTimmymmust mreturnmthemcard mormpaymthem$500.
Answer:mFalse,mmistakeminmvaluemismnotmvalidmgroundsmformvoidingmamcontractmandmunilatera
lmmistakembymthempartymbestmsuitedmformcatchingmsuchmammistakemismnotmvoidable.m Timmy’sm
infancymcannotmbemusedmagainstmhim.mLSBm266.
e. Statement:mA mmerchant’smfailuremtomanswermamcustomer’smmaterialmquestionmabout mt
hemmerchant’smgoodsmgenerallymwillmnot msufficemasmanmelement mof mfraud.
Answer:mFalse.mSilencemismnotmamfraud,mbutmfailuremtomanswermamquestionmis.m SeemLSBm258-
259;mLectures;mBarron’smpagem118.

2. Janemwalksmintomanmelectronicsmshopmtomlookmat mstereos.m Shemfindsmamstereomthat mhasmlabelsmo
nmit mreadingm“allmthemfeaturesmyoumcould mwant mand mmore.”mJanemdecidesmtompurchasemthemstereo.
3

, mThemstoremclerkmtellsmJanemthat mshemhasmtenmdaysmtomtrymout mthemstereomrisk-
free,mduringmwhichmshemcanmreturnmit mformamfullmrefund.m Ammonthmlater,mJanembringsmbackmthemst
ereomand msaysmthat mit mdoesmnot mhavemsurround-
sound mfeaturesmasmshemoriginallymthought mit mmust,mand mthereforemshemwantsmher




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