Question 1

Hamidi,a coffee farmer in Kenya,forms an alliance with Guthrie,an importer and marketer in Ireland.Their products carry a Fair Trade label.This means that Hamidi&#10;A)accepts whatever price for his products that the market will bear.&#10;B)produces crops with genetically modified organisms.&#10;C)puts children to work whenever possible.&#10;D)uses environmentally sustainable farming methods.

Accepted Answer

The Fair Trade label indicates that the farmers (like Hamidi) are using environmentally sustainable farming methods to produce their crops. This means that they are minimizing the negative impact of farming practices on the environment, including reducing the use of harmful chemicals, conserving water and soil, and recycling waste. Therefore, D is the correct answer.

Question 2

Iowa enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include killing and maiming the image of a human being." Gamemakers file a suit against the state to block the statute's enforcement.Based on the decision of a California court in a case involving a similar statute,the court in this case is most likely to rule that the statute

A)extends restrictions on sex-based content to violence in video games.
B)violates the First Amendment's guarantee of freedom of speech.
C)imposes market-share liability on makers of violent video games.
D)replaces the voluntary rating system currently in use.

B

Accepted Answer

The California court in a similar case ruled that such a statute violated the First Amendment's guarantee of freedom of speech. Therefore, it is likely that the court in this case will also rule that the statute violates the First Amendment. The other options are not relevant to the issue at hand.

Question 3

Catalyst Corporation is a small,U.S.-based business that makes sophisticated polymers for export.Under the National Export Initiative,the federal government is&#10;A)erecting barriers to deny free access to foreign markets.&#10;B)boosting lending to small businesses,especially for export purposes.&#10;C)placing less emphasis on exports than other governments.&#10;D)playing a less active role in promoting exports in emerging markets.

Accepted Answer

The National Export Initiative has been designed to boost lending to small businesses, especially for export purposes, and help them expand their international trade operations. Therefore, it is highly likely that Catalyst Corporation could benefit from this initiative. The other choices do not align with the purpose and goals of the National Export Initiative.

Question 4

Fast Food Corporation and Giant Potatoes,Inc.,enter into a contract for Giant's sale to Fast of all of the potatoes that Fast needs.The amount of potatoes that Giant must supply is&#10;A)all of Fast's requirements that may occur in good faith.&#10;B)all of Giant's output that is not commercially impracticable.&#10;C)the greatest quantity that is not unconscionable.&#10;D)the greatest quantity that makes the contract a &#34;square deal.&#34;

Accepted Answer

The contract between Fast and Giant is a requirements contract, which means that Giant is obligated to provide all the potatoes that Fast needs. The UCC Section 2-306 states that a requirements contract may only be enforced to the extent of good faith and commercial reasonableness, which means that Fast cannot order a ridiculous amount of potatoes just to spite Giant. However, as long as Fast's requirements are made in good faith, Giant must supply all the potatoes that Fast needs.

Question 5

U.S.Oil Company and Vehicle Fuel Corporation enter into a contract for the sale of refined oil.Either party's nonperformance may be excused,be?cause of unforeseen circumstances,under the doctrine of commercial

A)good faith.
B)impracticability.
C)square dealing.
D)unconscionability.

Accepted Answer

The doctrine of commercial impracticability excuses nonperformance of a contract due to unforeseeable circumstances that make performance impracticable or excessively difficult, expensive, or burdensome. This would apply if either party is unable to fulfill their obligation under the contract due to an unforeseeable event, such as a natural disaster or severe shortage of materials, that makes performance impracticable or impossible.

Deck 56: Legal Issues in Iowa's Video Game Labeling Statute, National Export Initiative, and Contract Law