Question 1

Jen participates in fantasy football games online by creating a fantasy team composed of real-life players from different teams and competing against teams created by other "owners." Jen pays a fee to the sponsoring site, which awards prizes at the end of the season. This is illegal gambling activity according to

Accepted Answer

There is no clear federal law that bans participating in fantasy football games or similar activities. While some states may have specific laws regulating or prohibiting online gambling, fantasy football generally falls into a legal gray area and is considered a game of skill rather than chance. As such, it is not categorized as illegal gambling.

Question 2

Van gambles online on the outcomes of football games by creating a fantasy team composed of real-life players from different teams and betting a given amount each week on the performances of those players. At the end of the season, the team "owner" with the most points wins the pot. This is illegal gambling activity according to

Accepted Answer

D

Question 3

Jack and Jill sign a prenuptial agreement. A court will most likely hold that Jill did not sign the agreement voluntarily if, before signing the agreement, she

Accepted Answer

B

Question 4

Tony Textiles, Ltd. (TTL), is a piecework contract bidder in Europe. Without authorization, TTL accesses the computer system of Upright Clothes, Inc.-TTL's competitor in the United States-to disrupt and destroy Uprught's business. A treaty that may provide mechanisms to stop TTL's activity is

Accepted Answer

The Cyber-Crime Convention aims to harmonize national laws on cybercrime and to establish a common framework to fight against such criminal activities. As TTL's activity involves unauthorized access to a competitor's computer system with the intent to disrupt and destroy business, it falls under the category of cybercrime. The convention provides mechanisms for extradition, international cooperation, and assistance in investigations and prosecutions in cases of cybercrime.

Question 5

Dale repeatedly clicks on EZ Online Order Company's ad, which is displayed on Dale's Web site and for which Dale charges EZ a fee based on the number of clicks on the ad. This is

Accepted Answer

This behavior is considered a violation of the implied covenant of good faith and fair dealing because it involves manipulating the ad clicks to unfairly increase profits, which is not in line with honest business practices.

Question 6

Ray and Strip Mines, Inc., enter into a contract for a sale of the coal beneath Ray's land for a fraction of the value of the coal and the cost to restore the land. A court is most likely to determine that this deal is unfair under

Accepted Answer

The concept of unconscionability refers to a situation where a contract is so one-sided and unfair that it shocks the conscience of the court. In this case, the sale of the coal for a fraction of its value and the cost to restore the land is likely to be seen as unfair and unconscionable.

Question 7

Topographical Engineers, Inc., which is new to its business, offers its services at less than half their possible market price to United Road Crew Construction, Inc., which knows the services' value. United's decision to accept the offer without commenting on the price could be justified by

Accepted Answer

The principle of freedom of contract allows parties to freely negotiate and agree upon the terms of their contract, including the price. If United Road Crew Construction, Inc. believes that the services offered by Topographical Engineers, Inc. are worth less than what they are being offered for, they are free to accept the offer without comment. The fact that Topographical Engineers, Inc. is new to their business and offering their services at a lower price is not relevant as it does not amount to unconscionable conduct or promissory estoppel. The Statute of Frauds also does not apply as there is no need for the contract to be in writing if it is for services and not for goods.

Question 8

Ben works for Consumer Industries, Inc (CII). When CII fires Ben, he files a suit against the firm. The court will most likely hold that CII is not liable if

Accepted Answer

If Ben's employment is at-will, it means that he can be terminated by the employer at any time for any reason, as long as it is not illegal (such as discrimination based on race, gender, etc.). In such a case, Ben would have no legal grounds to sue CII for wrongful termination.

Question 9

To bid on a job, Budget Construction Company relies on the oral promise of Coldwater Plumbing, Inc., to perform certain work at a certain price. Coldwater fails to per?form. Budget can

Accepted Answer

Budget Construction Company can recover under the doctrine of promissory estoppel, as Coldwater Plumbing, Inc. made an oral promise on which Budget relied to bid on the job. While the promise may not have been in writing, the doctrine of promissory estoppel can be used to enforce promises made in certain circumstances where it would be unconscionable not to do so.

Question 10

Chet repeatedly clicks on Delight Loan Company's ad, which is displayed on E-Search's Web site, with the intent of increasing Delight's ad costs. This is

Accepted Answer

Clicking on an ad with the intention of increasing the advertiser's cost without any intention to engage with the ad or purchase the product or service constitutes click fraud. Click fraud is an unethical act that violates digital marketing industry standards and can also be considered as a violation of the terms and conditions of the ad platform.

Question 11

Alice and Bob sign a prenuptial agreement that includes a waiver of all support in the case of divorce. A court will most likely hold that this waiver is

Accepted Answer

A waiver of all support in a prenuptial agreement is generally considered to be against public policy because it could leave the financially weaker spouse without any means of support. Therefore, the court is likely to hold that this waiver is unenforceable.

Question 12

Digital Services Corporation (DSC) promises to hire Ellen. The day before Ellen is to start work, DSC revokes the promise. In Ellen's suit against DSC, the court is most likely to hold that DSC is not liable to Ellen if

Accepted Answer

If Ellen's promised employment is at-will, DSC is not obligated to provide her with employment and can revoke the promise at any time without incurring liability.

Question 13

Blanco, S.A., a Chilean firm, and Ciao, Ltd.,, an Italian firm, enter into a contract that includes a clause designating the New York state courts as the forum for resolving disputes under the contract. A treaty that may support this clause is

Accepted Answer

The Convention on the Choice of Court Agreement supports clauses that designate specific courts for resolving disputes, making it relevant to the contract between Blanco, S.A. and Ciao, Ltd.

Question 14

Merchandise Presentation Company enters into a contract with Newt to perform certain services for a certain price. Newt is later dissatisfied with what he claims is a low level of service for a high price. Whether this deal is unconscionable is subject to

Accepted Answer

Whether a contract is unconscionable is a legal decision that must be made by a court based on the circumstances and the specific terms of the contract. It is not determined solely by the opinion of the buyer or the position of the seller. The UCC 2-302 provides guidance on factors that may contribute to a finding of unconscionability, but the decision ultimately rests with the court.

Quiz 55: Contracts and Business Law