Question 1

Precision Parts Company and Quality Manufacturing,Inc. ,enter into a contract for the sale of a certain quantity of machine parts.Although not expressly stated,a concept that is read into this contract is the concept of

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

A

Accepted Answer

The concept of good faith is a general principle of contract law that is often read into contracts, as it requires both parties to act honestly and fairly towards each other. It is a fundamental concept that is implied in every contract. Impracticability, square dealing, and unconscionability are also concepts that may be implicated in certain contracts, but they are not as fundamental as the concept of good faith.

Question 2

Sports Line,Inc. ,and Trudy,a consumer,enter into a contract for a sale of a snowmobile.If the contract includes a clause that is perceived as grossly unfair to Trudy,its enforcement may be challenged under the doctrine of

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

D

Accepted Answer

The doctrine of unconscionability allows a court to invalidate a contract or clause that is so one-sided and unfair to one party that it "shocks the conscience." If Trudy perceives the clause to be grossly unfair, she may challenge its enforcement under this doctrine. Choices A, B, and C do not directly address the issue of an unfair contract or clause.

Question 3

New York enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include dismembering or sexually assaulting the image of a human being." On appeal from a challenge by gamemakers,the state asks a federal court to enforce the statute.Based on the decisions of other federal courts in cases involving similar statutes,the court in this case is most likely to

A)refuse to extend restrictions on sex-based content to violence in video games.
B)expand the label's warning to include other forms of violence.
C)impose market-share liability on makers of violent video games.
D)replace the voluntary rating system currently in use.

A

Accepted Answer

Federal courts have consistently ruled that restrictions on violent content in video games violate the First Amendment's protection of free speech. While some courts have upheld labeling requirements, they are typically limited to clearly defined categories such as sexual content rather than violence in general. Therefore, it is likely that this court will also reject the statute and refuse to extend restrictions on sex-based content to violence in video games.

Question 4

A Little Bit of Lipstick,Inc. ,is a small,U.S.-based business that sells nanotechnology-based cosmetics for export.Under the National Export Initiative,the federal government is&#10;A)pursuing trade agreements to improve market access for U.S.firms.&#10;B)banning 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 is a federal government program aimed at increasing exports by U.S. firms. One of the main strategies of the initiative is to pursue trade agreements that improve market access for U.S. businesses. This aligns with the goal of A Little Bit of Lipstick, Inc. to export their nanotechnology-based cosmetics.

Question 5

Jaime,a cocoa bean farmer in Columbia,forms an alliance with Irwin,an importer and marketer in the United States.Their products carry a Fair Trade label.This means that Jaime&#10;A)accepts whatever price for his products that the market will bear.&#10;B)receives a stable minimum price for his products.&#10;C)employs forced labor at a fair price whenever possible.&#10;D)produces crops as cheaply as possible to keep his prices minimal.

Accepted Answer

The Fair Trade label guarantees a stable minimum price for the products, which benefits farmers like Jaime who may otherwise be subject to volatile market prices.

Deck 19: D: The Formation of Sales and Lease Contracts