Question 1

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 decision in a similar case (Brown v. Entertainment Merchants Association) found that such a statute violated the First Amendment's guarantee of freedom of speech. As Iowa's statute is similar, it is likely to be struck down for the same reason.

Question 2

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 means that Hamidi uses environmentally sustainable farming methods. Fair Trade specifically promotes social and environmental sustainability, so using sustainable farming methods is a key component of being certified.

Question 3

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.

B

Accepted Answer

The doctrine of impracticability may excuse nonperformance when an unforeseen event occurs that makes performance impracticable.

Question 4

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 aims to increase exports by providing support to small businesses, especially through boosting lending for export purposes. This is in line with Catalyst Corporation's business of exporting sophisticated polymers. Therefore, the government's initiative is likely to benefit Catalyst Corporation.

Question 5

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

This type of contract is known as a requirements contract, where the seller agrees to supply all of the buyer's requirements that may occur in good faith. This allows the buyer to plan and rely on a steady supply of goods from the seller.

Deck 56: for Unit Four