1. A contract is being discussed by Walsh and Klein. Walsh offers to sell Klein's two-foot parcel of property for $450 in a face-to-face conversation. Which of the following statements is true?

A) The contract is enforceable because it was less than $500 and does not have to be in writing.

B) The contract is not enforceable because a price of $450 for the sale of land is unconscionably low.

C) The contract is enforceable because of promissory estoppel.

D) The contract is not enforceable because it was not in writing and signed by the party making the promise.

2. Joshua wants to purchase a certain kind of copper. He makes a deal with Peter to pay $100,000 for 1,000 tons of A-1 type copper. 3 months following the contract's start date is the delivery deadline. One month later, the biggest copper mine in the world suffers substantial damage from an unforeseen storm, which drives up prices by 25%. Peter requests to cancel the agreement since getting the copper for Joshua would be "much more expensive." What would be the best justification for Peter to do so?

A) The damage to the copper mine made it impossible to perform the contract.

B) The damage to the copper mine made it commercially impracticable to perform the contract.

C) The damage to the copper mine frustrated the purpose of the contract.

D) The damage to the copper mine made the contract too unfair to perform.

3. Which of the following would constitute the tort of commercial misappropriation (also known as right of publicity):

A) Without consent, The New Yorker publishes a photo of your professor in an article with the headline: "schizophrenia in America hits all-time high."

B) Without consent, The New Yorker publishes a photo of your professor "in a strange costume" for a gossip column series of "the strangest New Yorkers."

C) Without consent, the "Him" Clothing Company publishes a photo of your professor on a billboard.

D) Without consent, your professor's ex-boyfriend passes around nude photos of your professor to his friends for laughs (he thinks it's funny).

4. Larry, Bob and Molly plan to start a new corporation in the near future. Which of the following is required:

I. Articles of Incorporation filed with a given state

II. The mandatory use of a promoter

III. A minimum of five shareholders

A) I only

B) II only

C) I and III

D) I, II and III

5. Bernard and Sammy had agreed that Sammy would sell him 100 bunk beds for a total of $100,000. November 1st was the scheduled delivery date. Bernard hired Sammy on October 30th and informed her that he no longer desired the tables. The tables are then sold by Sammy to Alfred for $92,000. Additionally, sending the tables to Alfred, who is based in Alaska, would add an additional $4,000 in postal costs. Which of the following statements most accurately describes the financial losses Sammycan claim against Bernard?

A) $8,000 only, since it is the difference between the contract and the resale price.

B) $12,000, the difference between the contract and the sale price, plus the incidental damages of the extra postage.

C) $12,000, the difference between the contract and the sale price, plus the consequential damages of $4,000 for lost postage and profits.

D) Nothing, because the seller should have waited until November 1st to give the buyer a chance to reconsider.

6. Which of the following torts requires intent to be proven for the defendant to be liable?

I. Negligence

II. Conversion

III. Products Liability

A) I only

B) II only

C) I and III

D) I, II and III

7. In exchange for $550, Steve agreed to buy 1,000 cans of Sam's Ramble Chicken Noodle Soup. Three weeks would pass after the contract was signed before delivery. Sam told Stevethat he "only wanted" to provide 850 cans rather than 1,000 from the time the contract was signed because Steveis a Rangers fan, therefore he sent only 850 cans on the delivery date. Will Stevebe successful in getting the contract discharged if he tries?

A) Yes, because Sam materially breached the contract.

B) No, because Sam did not materially breach the contract.

C) Yes, because Sam failed to perform a condition.

D) No, because Sam materially performed the condition.

8. Which of the following are characteristics of a "close" corporation?

I. Its shares are not bought and sold by the public at large

II. The officers and directors may be the same

III. It must comply with the registration requirements of the Securities Act of 1934

A) I and II only

B) I and III only

C) II and III only

D) I, II and III

9. The general partners of Belch Company are A, B, and C. The partnership deals in the purchase and sale of land in Andy Park, New Hampshire. Although profitable in the past, Andy Park real estate sales have been impacted by the economic crisis. Partner B paid around 20% more than fair market value for a piece of real estate that the partnership owned and sold to partner X. Then X gave B a $10,000 "gift." Which of the following statements is true? i. Partner B can keep the $10,000 because he was able to sell the land in an economic downturn for a substantial profit ii. Partner B can keep a portion of the $10,000 representing the profits earned iii. Partner B must relinquish the entire amount to Partners A and C

A) I only

B) II only

C) III only

D) I and II

10. Which of the following situations will result in apparent authority?

I. A contract made by a former agent with a third party who previously deal with this agent and did not know that the agency expired.

II. A contract made on behalf of a principal with a third party by someone claiming to be an agent, but completely unknown to the principal.

III. A contract made by an agent with express authority which flows from that authority.

A) I only.

B) I and II.

C) I and III.

D) I, II and III.