Page 1 of 9 as your signature PRINT your name comprehensive EXAM #3 Business Law Fundamentals LAWS 3930 sections -001, -002-003 Chapters 1-4, 24, 6, 7, 9, 10 through 23, 43, 44, 46, 50, & 51 INSTRUCTIONS: 1. Affix your printed name as your signature in the space provided above. 2. This is a closed book exam. It is an objective test of your subjective knowledge. group work is academic dishonesty earns the student a course letter grade of "F". You may make up your white copy of the exam as much as you wish. RECALL: To calculate your grade with the answer key you need to mark you answers on your white copy of your exam. 3. The time for this exam is limited to the duration of a twice-a-week day class meeting time (i.e., 75 minutes [e.g., day exam starts at 10:30am ends at 11:45am]). Time is forecasted as not being a constraint for any student. 4. Both print your last name bubble in your last name on your blue computer graded bubble sheet in the appropriated location. 5. Both print your NU ID number bubble in your NU ID number on your blue computer graded bubble sheet in the appropriate location. 6. This is a True-False exam. Use A for True. 7. Read carefully. Think. Read closely. Think. Recall, this is an objective test of your subjective knowledge. 8. Recall the material difference between i.e. (that is) versus e.g. (for example). 9. This is not a trivia test. Accordingly, never is a question false because of a number in the question. For example, if a question describes Amd. X, then the number is accurate (e.g., the question is not about Amd. IX). The question might be false for a reason other than the number. Similarly, the Latin is not the source of falsity. Both numbers Latin are included solely to aid the student's recall. 10. Students taking their Exam #3 on Tuesday at 6:00pm shall turn in both [1] white copy of exam; [2] completed blue answer sheet. Students taking their Exam #3 on Wednesday at 6:00pm shall turn in both [1] white copy of exam; [2] completed blue answer sheet. Students taking their Exam #3 on Thursday at 10:30am shall exchange their blue answer sheet for an answer key. Tuesday Wednesday students may, starting after 11:15am Thursday, retrieve their white copy exam an answer key from the suite secretary in MH 228. 11. This Exam #3's default worth is 333 points of a course total of 1,000 points. There are 52 questions graded as if there only are 50. Accordingly, each correct answer on Exam #3 is worth 6.66 course points. 12. Per the Syllabus http://cba2.unomaha.edu/faculty/mohara/web/blf-p17-syllabus.pdf the comprehensive final exam is an optional essay exam. To be eligible to take the final exam a student must have a course grade of "B" upon completion of the grading of this Exam #3. The Exam #3 grades spreadsheet will be posted (ideally, Friday afternoon) to the course's mmtemp folder. An email notice of that posting will be sent to all enrollees. Those posted grades will include Exam #3 grades, all extra credit grades, the course letter grade. 13. WARNING: A student earns NEGATIVE TEN COURSE POINTS for each failure to comply with Instruction #1, Instruction #4, /or Instruction #5. WARNING: Exam score of zero if fail to answer correctly question #52. See NOTE E on page 2 of 7.
Page 2 of 9 NOTES: A. Recall the material difference between i.e. (that is) versus e.g. (for example). B. Use bubble A for TRUE use bubble B for FALSE. C. For clarity in distinguishing a "principal" from a principal as well as distinguishing an "agent" from an agent, quote marks will be used for the generic words "principal" "agent" no quote marks will be used for the specific words principal agent. That is, "principal" "agent" refer to all three relationships (i.e., principal agent; principal independent contractor; employer employee). Similarly, quote marks are used to distinguish a transaction that fails to achieve lawful contract status thus is a mere "contract" a force that does not achieve unlawful duress status thus is mere "duress". D. The quote marks described in NOTE C. might be the very essence of the question's truth or falsity. For example, it is true to say "An employee is one of the three relationships in "agent"."; it is false to say "An employee is an agent.". E. Different students have different versions of this Exam #3. For a student's blue bubble sheet to be correctly scored requires that student to record that student's version of this Exam #3. AT THE BOTTOM RIGHT OF THIS PAGE, WHAT LETTER FOLLOWS THE YEAR 2017? RECORD THAT LETTER AS YOUR ANSWER TO graded QUESTION 52. Failure to correctly record your version shall earn you a score of zero on Exam #3. F. All appeals of this exam s questions must be: [F1] typed; [F2] signed by the student in three ways, typed name, hwritten signature, typed university identification number; [F3] immediately following the [F2] signature, list in sequence, solely by number, each of the questions being appealed; [F4] since this exam's design (i.e., 52 questions graded as 50) presumes two errors, harmless error exists with merely two flawed question; thus, an appeal must appeal three or more questions must prove at least three questions to be objectively ambiguous for there to be one non-harmless error; [F5] after the [F3] list, argue each question, one at a time, in sequence; [F6] at the beginning of each question s [F5] appeal, identify at least two reasonable meanings that the question could have had; [F7] in each [F5] appeal, argue why one or more of the [F6] identified reasonable meanings is as appropriate or is more appropriate than the meaning used for the answer key answer; [F8] the signed appeal must be personally hed to the instructor (or to the instructor's suite secretary in MH 228) no later than the first fifteen minutes of your class section's final exam time the week of April 30th: time is of the essence.
Page 3 of 9 QUESTIONS: 1. T F The Absorption Doctrine is a judicial interpretation of Amendment Fourteen's due process clause that the 14th Amd. binds the USA States to honor all verbatim USA constitutional rights of the Bill of Rights. 2. T F The emanation of a State's legislative power is judged by Strict Scrutiny interpretation of Amendment Fourteen. If the State regulates a topic over which it has no authority, then the State must demonstrate that regulation is necessary to achieve a compelling governmental interest. 3. T F Assumption of the Risk exists if the plaintiff knowingly voluntarily exposes the plaintiff to the risk of harm created by the defendant. 4. T F The Law tends to react when a type of defendant has unequal bargaining power, a history of abuse, there is disparate impact. 5. T F Both a mutual mistake a unilateral mistake require a material mistake of fact. 6. T F Common law fraud exists when the defendant knowingly intentionally misrepresents a material fact, thereby inducing the plaintiff's justifiable reliance proximately causing the plaintiff's damages. 7. T F The Law favors the objective over the subjective. The objective comes in two forms: express implied. Express is in words: oral or written. Implied is in acts, words, /or circumstances. 8. T F In The Law, the specific controls the general; for example, contract law of damages controls damages under tort law. 9. T F The Uniform Commercial Code, Article 2, Sale of Goods (UCC2) imposes on all parties two duties that can not be disclaimed: an obligation of good faith 2-318. [NOTE, see question #10.] Both the UCC2 consumer the UCC2 merchant owe the duty of good faith; that is, honesty in fact commercial reasonableness. 10. T F The UCC2's section 2-318 contains a can not be disclaimed prohibition against exculpatory clauses for personal injury from consumer goods.
Page 4 of 9 11. T F The UCC2 rejects the Mirror Image Rule, permitting materially open terms non-material additional terms. 12. T F The common law of contracts requires an unequivocal affirmation. In contrast, the UCC2 permits acceptance by a material breach; for example, a prompt shipment of non-conforming goods. But, the accepting party can make that acceptance subject to the condition that the non-breaching party waive that breach if the breaching party's acceptance is shipped as an accommodation. 13. T F The common law of contracts presumes the parties do not want a contract. The UCC2 presumes the parties do want a contract. Accordingly, the UCC2 permits two merchants to modify their contract without new consideration, if done in good faith; as well as permits a merchant to create a firm offer in writing with a mere signature. 14. T F Under the UCC2 a consumer is a natural person buying goods primarily for personal or household use; a merchant has superior knowledge via reason to know, vicarious knowledge, or is estopped to deny such knowledge. 15. T F Under the UCC2 goods are tangible moveable personal property. Under the UCC2 identification requires the goods to exist to be designated by the seller. 16. T F Under the UCC2 both the seller the buyer can have an insurable interest if the party has a risk of loss; but only the party with the risk of loss receives payment for an insured loss. 17. T F A sale transfers title upon physical delivery payment of a price. The risk of loss transfers upon the seller's physical delivery at the front door for consumer buyers at the back door for merchant buyers. However, the parties may agree to a transportation contract, for example a shipment contract for which physical delivery occurs when the seller delivers to the carrier.
Page 5 of 9 18. T F The UCC2's entrustment rule holds that any true owner that entrusts goods to any merchant empowers that merchant to transfer good title to any buyer in the ordinary course of business. 19. T F The judiciary's rule for operation of law to terminate a common law contract is commercial impossibility (10x change); enforces substantive due process. The legislature has responded with the UCC2 providing a procedural due process rule for operation of law to terminate a UCC2 contract due to commercial impracticability (3x change). 20. T F The common law of contracts has a rule for anticipatory repudiation. The UCC2 creates three new rules that individually collectively materially alter that common law rule for anticipatory repudiation: [i] the non-breaching party's Right of Assurance, [ii] the breaching party's right to cure, [iii] the non-breaching party's right to cover. 21. T F Compensatory damages are to make the party whole. In tort law compensatory damages include all that was reasonably foreseeable to the Reasonable Person in the position of the defendant at the time of the defendant's breach of the duty owed the plaintiff. In contrast, because in contract law the tort damages are to be mere economic loss, contract compensatory damages only include " the loss of the benefit of the bargain. Importantly, under the common law of contracts consequential damages are beyond the parties' agreement;, lost profits are not recoverable as consequential damages unless reasonably foreseen by the parties agreed to by the parties. 22. T F The United Nation's Convention of the International Sale of Goods (CISG) requires the parties to specify price, instead of specify quantity as does the UCC2; also, the CISG requires the parties to strictly adhere to the Statute of Frauds.
Page 6 of 9 23. T F The common law implies three warranties into all sales: [i] seller has good title; [ii] seller has not granted any liens using the property being sold as collateral; [iii] buyer's use of the purchased property will not infringe any one else's property rights. 24. T F The UCC2 creates multiple types of warranties allows the buyer to elect to enforce any one or more of the UCC2 warranties. 25. T F The UCC2's express warranty requires the seller to make an affirmation of fact; implied warranty for a particular purpose requires the seller know the buyer is relying on the seller; implied warranty of merchantability requires to the goods to pass without objection in the market. 26. T F The Law in the USA tends to apply liability to those persons whose actions are both knowing voluntary. 27. T F The federal Magnuson-Moss Warranty Act preempts the laws of the USA States with respect to the definitions of the words "full" "limited" as used by merchants in written warranties to consumers in interstate commerce. 28. T F The Restatement of Law of Torts section 402A exps sting to sue with respect to the zone of protected interests for injuries in fact that are physical injuries. 29. T F Compared with a century ago, today sellers are more likely to be legally liable for design defects manufacturing defects because today's designers manufactures know more about the risks of their actions than can consumers. 30. T F Buyers have an absolute right to inspect the goods they buy. A latent defect exists if the seller knows of the defect as well as the seller knows that the buyer can not discover that defect even if the buyer engages in a reasonable inspection. The seller has a duty to warn (e.g., label) if there is a latent defect.
Page 7 of 9 31. T F Economics assumes all buy-sell transactions are buyer beware transactions. The ability of the buyer to discover to appreciate a risk requires knowledge. But, knowledge varies by the scope of the buyer's perception (a.k.a., Bounded Rationality);, consumers know the least, firms can know more, the industry can know still more than the firm;, the most is knowable by the true market. 32. T F When an administrative agency adopts a rule or regulation that administrative agency must provide The People with the exact same quantity of notice quantity of hearing that Congress must provide The People when Congress adopts laws. 33. T F The federal versus State separation of powers includes a presumption of concurrent powers. 34. T F All three separations of power are subjected to judicial review. 35. T F One attribute of the Persons versus government separation of powers manifests itself as an attribute of the legislative versus executive versus judiciary separation of powers; that is, only the legislature has the power to create a crime. 36. T F Expectations are a volatile non-price determinant both of supply of dem. 37. T F Capitalism is a means justify the ends method of ethics. In Capitalism private property, prices, markets, competition are the ends sought by Capitalism. 38. T F The USA States have the general power of the Police Power (i.e., the power of a USA State to regulate for the People's health, safety, morals, general welfare). The federal government does not have the Police Power. The feds do have the specific power of the Commerce Clause (i.e., domestically, the power to regulate commerce that is a close substantial cause of commerce between the USA States). The federal government's Art. I, sec. 8, clause 19 necessary property clause expressly grants the implied powers of penumbras emanations to accompany the expressly granted core powers (e.g., Commerce Clause).
Page 8 of 9 39. T F Preemption is not favored, but may be allowed, if: [i] or [ii] clear intent of Congress national interests outweigh State interests; express intent of Congress a need for uniformity. 40. T F The Law uses three types of knowing: actual knowledge, which is subjective knowledge; two forms of objective knowledge, receipt of notice reason to know. 41. T F Privacy only is an implied, not an express, right in the USA Constitution; thus, privacy can not be a fundamental constitutional right protected by substantive due process. 42. T F The USA, Canada, the European Union (EU) all agree that privacy is an implied right that only exists within the separation of powers between Individual versus Government. 43. T F The antitrust law's Rule of Reason permits any restraint of trade that increases the restraining firm's profits. 44. T F The antitrust law's Per Se Unreasonable Rule is applied to price fixing, vertical divisions of territories, unilateral boycotts, tying. 45. T F The Noerr-Pennington Doctrine makes clear that all forms of free speech protected by the USA Constitution's First Amendment must yield to the subsequent in time antitrust laws because the specific controls the general. 46. T F Both property insurance life insurance require both an insurable interest at the time contract; at the time of loss; or, that transaction is an unlawful gambling "contract". 47. T F Adverse selection is an example of moral hazard.
Page 9 of 9 48. T F An insurance agent's errors in a binder are the liability of the insured. 49. T F Punitive damages in the context of an insurance contract (as it is for all types of contracts) are mere economic loss. 50. T F Capacity required for a will is the greatest legal capacity required of any legal transaction because the will does not take effect until the testator is dead. 51. T F The trustee is the fiduciary of both the grantor the beneficiary. 52. C Answer question #52 C or earn a zero on Exam #3.