Business Law 201 Spring 2005 Mid-Term Examination
April 5, 2005, Professor Isler
This musical mid-term exam will end at 9:10. You are to indicate the choice which best answers the
question. You may keep the exam. The exam and the answers will be posted on the student forum thirty
minutes after the exam.
1. “Night Time is The Right Time,” sung by Professor Isler in class for was performed by:
[A] K-Ci & JoJo
[B] Ray Charles
[C] Billy Ocean
[D] Percy Sledge
[E] James Brown
2. The difference between larceny and robbery is that:
[A] Larceny and robbery both involve the use of force.
[B] Larceny involves the use of force, but robbery does not.
[C] Robbery is intentional, but larceny is unintentional.
[D] Robbery involves the use of force, but larceny does not.
3. Changing the amount on a check is an example of the crime of
[A] Extortion.
[B] Embezzlement.
[C] Forgery.
[D] None of these.
4. Mario, a bank vice president, regularly took money for his own use from customer accounts and made
false entries in the bank records. Mario committed the crime of
[A] Embezzlement.
[B] Blackmail.
[C] Robbery.
[D] Burglary.
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5. Mos Def, who lived in a contributory negligence state, hired a limousine from the Lackawanna Blues
Limo Service so that he and his wife Maybeth, could attend their high school reunion in style. When the
limousine arrived, Mos Def told the driver to take them to the No-Tell Hotel. Once they were on the
freeway, it became clear that the driver did not know how to reach the hotel. Every time the driver took a
wrong turn, Mos Def attempted to correct him. The driver continued to ignore Mos Def’s instructions.
Eventually, the driver, who later said he was aggravated by Mos Def’s frequent interruptions, stopped
the limousine and told Mos Def and his wife to walk to the reunion. The driver drove off and left his
passengers several miles from the hotel in the middle of an ice storm. While walking to the hotel, Mos
Def slipped on a patch of ice and fell and broke his arm. Later the Defs learned that the driver had a long
history of similar conduct, and that the limousine company had not done a proper search of the driver’s
work history before hiring him. The Defs sued the limousine company alleging negligence. Which of the
following is the most likely outcome of such a suit?
[A] The Defs will win because a reasonable person would not hire an employee who will be responsible
for the safety of paying passengers without checking the work history of the potential employee.
[B] The Defs will win against the limousine company as they are responsible based on the doctrine of
respondeat superior and because a reasonable person would not hire an employee who will be
responsible for the safety of paying passengers without checking the work history of the potential
employee
[C] The Defs will lose because it is the driver who was negligent and the Defs sued the limousine
company.
[D] The Defs will lose because the limousine company did not proximately cause Mos Def’s injury and
Mos Def was contributorily negligent when he walked on the ice.
6. One example of a defense that could be used in a criminal action is
[A] Justification.
[B] Entrapment.
[C] Insanity.
[D] all of these.
7. Gwen Stefani is a police officer. Gwen’s legal right to conduct a reasonable search of a person who has
been arrested is provided for in the
[A] Fourth Amendment.
[B] Fifth Amendment.
[C] Sixth Amendment.
[D] First Amendment.
8. Four essential elements are necessary to create a valid contract. Which of the following is not one of
these elements?
[A] Something of value must be given by each party.
[B] The agreement must be in writing.
[C] The offeror and offeree must reach agreement.
[D] The parties must be competent.
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9. Ciara promised Usher $50 if Usher found and returned Ciara’s cocker spaniel. This contract is
[A] Unilateral.
[B] Bilateral.
[C] Executed.
[D] Unenforceable.
10. Slim Shady promises to pay Fantasia $75 if Fantasia repairs his car. A day later Fantasia repairs the car
to Slim Shady’s satisfaction. This is an example of a
[A] Unilateral contract.
[B] Bilateral contract.
[C] Void contract.
[D] Quasi contract.
11. Ludacris promised to give Kelly Clarkson, his niece, $500 if she (Kelly) promised to give up smoking
for six months. Kelly did promise to do so. At the end of six months, since Kelly did not smoke, she
received the $500 from Ludacris. This is an example of an
[A] Express, bilateral, quasi contract.
[B] Express, unilateral, executed contract.
[C] Express, bilateral, executed contract.
[D] Express, bilateral, executory contract.
12. Snoop Dogg had a contract with Lil Kim of the East Harlem Building Company or ( “EHBC”) to put a
room addition on his (Snoop’s) home for $190,000. Lil Kim stopped construction halfway through the
project and informed Snoop that she was moving on to build a mansion for Professor I, otherwise known
as “OGP,” which is short for Old Gangsta Professor. In reality Lil Kim was trying to get to know OGP
better because she had heard of OGP’s Kool-Aid and wanted to check out the flavor. OGP who lived in
Long Beach, California (called LBC for short) was waiting on Kim because he felt he had a pre-existing
duty to please her bootie and he was going to make sure Lil Kim received quantum meruit. (This means
OGP liked Lil Kim). In short, OGP waited in the LBC for EHBC.
Anyway, Snoop informed Lil Kim that it was imperative that she finish the job before the rain starts and
if she did not he would have to sue her for breach of contract. Lil Kim said I am sorry but there is not
enough cheese (money) in it for her. Snoop tells Kim that if it is more money she wants he will be happy
to pay a couple thousand more to get the job completed. Lil Kim says if that is the case, she will finish the
job for an extra $3,000. Snoop agrees saying he would have paid the extra $3,000 in the first place.
Lil Kim finished the job and Snoop refused to pay the additional $3,000. If Lil Kim sues Snoop what is
Snoop’s best defense?
[A] Snoop should say that Lil Kim had a pre-existing duty to build the addition for $190,000 and she was
not entitled to mo fo sho or not entitled to anything else.
[B] Snoop should defend by saying “Fo shizzel me nizzel, I do not owe you anything because I do not
have the cash and that is an unforeseen difficulty
[C] Snoop should allege that there was an illegal contract modification
[D] Snoop should allege promissory estoppel
[E] Snoop should allege that there is a liquidated debt that precludes the pre-existing duty rule so Lil Kim
already received as much as she deserved.
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13. California's bar on gay marriages is unconstitutional, a judge has found, ruling that the state could not
justify limiting marriage to a man and a woman. In the eagerly awaited opinion, based on the California
Constitution, San Francisco County Superior Court judge Richard Kramer said there was "no rational
purpose" for withholding marriage licenses from homosexuals.
In a written judgment, he said the state's historical definition of marriage could not justify the denial of
equal protection for gays and lesbians. "The state's protracted denial of equal protection cannot be
justified simply because such constitutional violation has become traditional," he wrote.
Legal groups representing religious conservatives filed an appeal with the California Court of Appeals
and that court agreed that California's bar on gay marriages is unconstitutional. Last week those same
religious conservatives appealed to the California Supreme Court. Yesterday that court ruled that
California bar on gay marriages violated the California Constitution.
Today California Attorney-General Bill Lockyer vowed to appeal the case to the United States Supreme
Court. What should the U.S. Supreme Court do?
[A] Rule on the matter since the case involves Equal Protection Issues and if California does not have a
compelling state interest to discriminate, the court should rule the ban on gay marriages unconstitutional
like the California Supreme Court
[B] Refuse to hear the case if it is based solely on the California Constitution
[C] Rule on the merits of the case since it involves a federal question
[D] Rule against the California Supreme Court since this is a matter for California voters to decide
[E] I do not know because I missed the class when you covered this very question!
14. In a five to four decision, the United States Supreme Court held that the imposition of the death
penalty on offenders who were under the age of 18 when their crimes were committed does not violate
the Eighth Amendment's prohibition against "cruel and unusual punishments.
[A] True
[B] False
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15. On March 21, 2005 Jeff Weise, who allegedly described himself as a "Native Nazi" and who other
students said was regularly picked on for his odd behavior, stormed into Red Lake High School in
BEMIDJI, Minnesota and allegedly shot to death an unarmed guard, a teacher and five students before
killing himself.
Before the Red Lake shootings, Weise, who was seven years old, allegedly shot dead his grandfather and
his grandfather's girlfriend at the home he shared with them. Initial reports had as many as 15 people
injured in the shootings at the school, but authorities lowered that number.
Jeff Weise was tried in a Minnesota Court for murder. Minnesota follows the common law definitions of
mens rea and actus Reus. The judge issued the following jury instruction:
“If you find that Mr. Weise had a guilty mind at the time the shootings occurred and
pulled the trigger then you must find him guilty of murder.”
The jury convicted Mr. Weise and Mr. Weise appealed stating that the judge gave an improper jury
instruction. What would be Mr. Weise's best argument before the Minnesota Court of Appeals?
[A] The judge gave an improper instruction because Weise cannot commit the crime of murder since it
requires premeditation and deliberation
[B] The judge gave an improper instruction if under Minnesota law murder requires premeditation and
deliberation
[C] The judge gave an improper instruction because the prosecution has the right to rebut the
presumption that Weise can commit a crime.
[D] The judge gave an improper instruction because Weise is incapable of actus reus
[E] The judge gave an improper instruction because Weise is incapable of murder
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16. Dr. Dre, who was referred to as "Chronic" by his friends was to operate on a boy who had injured his
hand. Dr. Dre had a farm and on his farm he had some pigs. Also, Dr. Dre worked for the Eastern Illinois
Energy Independence Organization called EIEIO for short.
Anyway, the palm of the boys hand was significantly scared and Dr. Dre was going to try a new
operation that consisted in the removal of a considerable quantity of scar tissue from the palm of the
plaintiff's right hand and the grafting of skin taken from the plaintiff's chest in place thereof.
Before the operation was performed the boy and his father went to the Dr. Dre's office, and asked Dr.
Dre, "How long will the boy be in the hospital?" Dr. Dre replied, “
Don’t worry, it ain’t nothing but a G-thang baby, I’m a low down doctor going crazy,
Death Row is the label that pays me and I’m unfadeable so please don’t try to fade me.”
“I figure three or four days, not over four; then the boy can go home and it will be just a
few days when he will go back to work with a good hand."
After Dr. Dre operated on the boy's hand the palm of the boy's hand began to grow the same kind of hair
that the boy grew on his chest. In fact, the hand grew so much hair; the boy had to rub deodorant on it.
Sometimes the boy had dread locks hanging from his hand. People started calling the boy, “natty dread
hand boy.” In fact, the local circus tried to give the boy a contract to show off his hairy hand. The boy's
father was not amused and sued the doctor stating that the procedure that the doctor used was
unreasonably dangerous.
If the boy's father brings a lawsuit against Dr. Dre based on strict liability what is the likely result?
[A] The boy’s father will win
[B] The boy’s father will win as long as he can demonstrate that there was no other safer way to perform
the surgery
[C] The boy’s father will lose
[D] The Boy’s father will prevail if the father sues on a theory of strict liability because the surgery was
unreasonably dangerous.
17. Eve age sixteen looked at Lil Kim who was also sixteen and said “Kim, without question, the greatest
invention in the history of mankind is beer. Oh, I grant you that the wheel was also a fine invention, but
the wheel doesn’t go nearly as well with pizza.”
Kim responded “Eve, when I read about the evils of drinking, I gave up reading.”
Eve had finished five beers by now and looked at Lil Kim and said “Your face could be the perfect
commercial for beer. The commercial would say- Beer: helping ugly people have sex since 3000 b.c.” Lil
Kim was not amused and immediately shot Eve dead in the head. The prosecutor was thinking about
filing murder charges but decided not to when his legal assistant said that you can’t hold Lil Kim liable
for murder. The Prosecutor has now asked you for a second opinion, what should you tell him?
[A] The legal assistant was incorrect because the presumption is that Lil Kim can form mens rea
[B] The legal assistant was incorrect because the presumption is that Lil Kim can form actus noassatallus
[C] The legal assistant was correct because the presumption is that Lil Kim cannot form mens rea
[D] The legal assistant was correct
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18. The “3 Doors Down” Auto Center advertised in the local newspaper that all stock was reduced 40
percent below regular price. This advertisement legally constituted a(n)
[A] Invitation to make an offer.
[B] Voidable offer.
[C] Binding contract.
[D] Valid offer.
[E] None of the above
19. In the daily newspaper, Maroon5 Motor Company advertised a new convertible at a special reduced
price. When Nivea tried to purchase one at the advertised price, Maroon5’s salesperson stated that they
had only one of that model and that it had already been sold. Nivea insisted that Maroon5 Motor
Company must sell him one at the reduced price, as he was accepting their newspaper offer. Is Nivea
correct?
[A] Yes; an advertisement in a newspaper is a communicated offer to all customers who wish to accept
the offer.
[B] Yes; all advertisements are general offers that result in binding agreements when accepted by
customers.
[C] No; newspaper advertisements, as a general rule, are only invitations to customers to make an offer.
[D] No; advertisements are offers, but they do not have to be accepted by the advertiser once the product
is sold out.
20. Of the following, the one that is not a method of terminating an ordinary offer is
[A] Lapse of time.
[B] Death of the offeror after acceptance by the offeree.
[C] Counteroffer.
[D] Rejection.
21. If nothing definite is stated about the time limit of an offer, it continues
[A] Up to 25 days.
[B] Until the offeree accepts or rejects the offer.
[C] For a reasonable time, depending upon the circumstances.
[D] Until the offeror accepts or rejects the offer.
22. Scarface offered to sell Baby Bash (often called the Smokin’ Nephew) an air conditioner for $300.
When Baby Bash said he needed time to think about the offer, Scarface said that he would keep the offer
open for five days. Which of the following statements is correct?
[A] Scarface may not withdraw the offer until the end of the fifth day.
[B] Scarface may withdraw the offer at any time before acceptance is made.
[C] Scarface’s agreement to keep the offer open created an option to purchase the air conditioner.
[D] Scarface may not withdraw his offer without Baby Bash’s consent.
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23. A state legislature passed a law making the sale of fireworks illegal. At the time, The “Trillville & Lil
Scrappy Company” had made an offer to sell fireworks to a large city in the state for its July 4th
celebration. The effect of this law on the Trillville & Lil Scrappy Company’s offer is:
[A] Nonexistent.
[B] To allow Trillville & Lil Scrappy Company to sue for breach of contract.
[C] To automatically terminate the offer.
[D] To act as a rejection of the offer by the offeree.
24. Nelly offered a reward of $50 in the local newspaper for the return of his lost college ring. Tim
McGraw, not knowing of the published reward, found and returned the ring. Tim McGraw could not
legally claim the reward because
[A] The offer was not intended to be an enforceable obligation.
[B] An offer of a reward is not binding.
[C] The offer was not definite.
[D] The offer was not communicated to him.
25. Able mailed Conover an offer that stated in part, “You must accept by sending me a certified letter
which must be received by me on or before February 1.” Conover may accept by
[A] Mailing his acceptance on February 1.
[B] Sending a telegram of acceptance to reach Able by February 1.
[C] Sending Able a certified letter mailed in time to reach Able by February 1.
[D] Making a phone call to Able on February 1.
26. To be legally enforceable as a contract, the courts require that each party to an agreement give up
something of value called
[A] Consideration.
[B] A written document.
[C] Witnesses.
[D] None of these.
[E] A and B
27. Randy Johnson (who is a great pitcher for the New York Yankees and beat the heck out of the Boston
Red Soxs on opening day, April 3, 2005) orally promised to give his 19-year-old son a car as a birthday
gift. Randy was not legally bound to his promise because
[A] The promise was made orally.
[B] An executed gift requires consideration.
[C] A promise to make a gift is unenforceable.
[D] The promise was a past consideration.
[E] None of the above because Randy is legally bound to pay.
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28. Which agreement is unenforceable because of lack of valid consideration?
[A] Davis promised to give his neighbor’s young son $50 if the boy would refrain from trespassing on his
property. Because of Davis’s promise, the boy complied.
[B] Philips promised his nephew $5,000 if the boy would refrain from smoking until he reached 21 years
of age. Because of this promise, the nephew complied.
[C] Boyd agreed to sell his used motorboat to Yates for $300. Yates tendered the $300.
[D] Johnson agreed to donate $1,000 to the United Hospital Building Fund. Based upon this and similar
promises, construction was started.
29. A contract imposed by the court to prevent unjust enrichment is called:
[A] A contract of non-benefit
[B] A sumi Contract
[C] A quasi Contract
[D] None of the above
30. Abraham sold his used car to Martin for $2,000. Later Abraham discovered that the car was worth
$3,000. Abraham then claimed that Martin owed him an additional $1,000. If Abraham attempted to take
legal action to collect the additional $1,000, he would be entitled to
[A] $1,000 plus legal fees.
[B] $3,000 minus $1,000.
[C] nothing.
[D] $1,000 only.
31. Jennings found and returned Martin’s lost wallet. Martin promised to give Jennings a reward the next
day after he cashed a check. Martin is not legally bound to pay a reward as he promised, because the
consideration for the promise was
[A] past.
[B] Future.
[C] Present.
[D] Not legal.
[E] None of the above
32. In which of the following situations would the courts enforce an oral agreement to pay extra
compensation?
[A] A police officer promises a neighborhood deli owner that, for a fee, he will keep a sharp lookout for
burglars on the nights that he is on duty.
[B] In no case will the courts allow the payment of extra compensation when the request is based on an
oral contract.
[C] A builder promises to complete a contract on the date previously agreed upon if he is given extra
compensation.
[D] An accountant promises to complete an audit 60 days ahead of time if she is given extra
compensation.
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33. After Michaels, a minor aged 16, purchased a compact disc player from Rollins Electronics, he decided
to return it. Before he got a chance to do so, his little brother smashed it with a hammer. In order to
disaffirm the contract under the majority view, he
[A] Must pay for any damage to the compact disc player.
[B] Must pay for any damage and pay for the use of the compact disc player.
[C] Need only return the damaged compact disc player.
[D] Must pay for any depreciation to the compact disc player.
34. The minor’s obligation to pay for necessaries is based on the theory of quasi contract. This theory
protects
[A] Adults in their dealings with minors.
[B] Minors in their dealings with a parent or guardian.
[C] Minors in their dealings with adults.
[D] Minors in their dealings with other minors.
35. If a mentally ill person is determined by a court to be insane, a subsequent agreement by this insane
person to purchase a TV set from the TV Home Center would be
[A] Illegal.
[B] Void.
[C] Enforceable.
[D] Voidable.
36. Snoop Dogg used his van to deliver illegal television sets to users throughout a particular city. You
could always tell when Snoop was coming down the street because when it was time to unload the
televisions he would play a song called “G’D Up” by a group called the East Sidaz. On April 5, 2005
Snoop was riding down the street and Lil Bow Wow, the owner of the “Dees Lugg Nutts Auto Company”
heard “G’ D UP.” In the background he could hear:
If it ain't chronic don't blaze it up
And if it ain't a Chevy don't raise it up
You know we keep it bangin don't fake the funk
So all the real brothas stay gangsta'd up
We makein papa only suckas claim to touch
By stickin to the script and neva changin up
You know we keep it bangin don't fake the funk
Keep it real all you brothas stay gansta'd up
Since his van was old, Snoop decided to trade it in at Dees Lug Nutts Auto Company for a new van. The
contract that Snoop makes with Dees Lug Nutts Auto Company to purchase a new van is
[A] Illegal; therefore, when Snoop receives the van, he must return it to the car agency.
[B] Illegal; therefore, Snoop would not have to pay for the van when it is delivered to him, but when
Snoop receives the van, he must return it to the car agency.
[C] Legal; therefore, Snoop would have to pay for the van when it is delivered to him.
[D] Illegal; therefore, Snoop would not have to pay for the van when it is delivered to him.
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37. If the purpose of a licensing statute is to raise money, an agreement with an unlicensed person is
[A] Valid.
[B] Void.
[C] Voidable.
[D] Unenforceable.
38. Usury statutes apply only to
[A] Real estate mortgage loans.
[B] Pawnbrokers.
[C] Loans of money.
[D] Loans to corporations.
39. A provision excusing one party from liability for negligence is
[A] An exculpatory clause.
[B] Forbearance.
[C] A revocation clause.
[D] A disaffirmatory clause.
40. Which contract would ordinarily be considered illegal?
[A] A contract between a minor and an adult for the sale of real estate
[B] Paying your state senator $10,000 to vote in favor of a bill you have an interest in
[C] Paying a fee for a license in a state where the purpose of the licensing statute was merely to raise
revenue for the state
[D] A contract made by an intoxicated person
Extra
41. Professor Isler looked at one of you and said:
If it's cool we can do a little sumthin' sumthin'
Let me groove with you
So we can kick a little sumthin' sumthin'
Who performed this song?
[A] Tony Rich
[B] Kenny Lattimore
[C] Delegation.
[D] Ideal
[E] Maxwell.
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Question Level
[1] [B]
[2] [D]
[3] [C]
[4] [A]
[5] [B]
[6] [D]
[7] [A]
[8] [B]
[9] [A]
[10] [A]
[11] [C]
[12] [A]
[13] [B]
[14] [B]
[15] [E]
[16] [C]
[17] [A]
[18] [A]
[19] [C]
[20] [B]
[21] [C]
[22] [B]
[23] [C]
[24] [D]
[25] [C]
[26] [A]
[27] [C]
[28] [A]
[29] [C]
[30] [C]
[31] [A]
[32] [D]
[33] [C]
[34] [A]
[35] [B]
[36] [C]
[37] [A]
[38] [C]
[39] [A]
[40] [B]
[41] [E]
C (Attendance Question)
C
C
C
A
C
C
B
C
C
B
A
C (Attendance)
C
A
A
B
C
B
C
C
B
C
C
B
C
B
B
C
C
C
B
C
C
C
B
C
C
C
C
C (Attendance)
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