1. Audit-R-US Inc., an aggressive young accounting firm, wants to grow fast and pursues employees at old established accounting firms in town. Audits-R-Us contacts Fred Cashflows, a rising star at the old established account firm of Dewey, Cheatum, & Howe. Says Audit-R-Us , " Leave those deadwood bean counters behind and run with a young 21^st Century crowd like us" Fred quits and joins Audit-R-Us.

Based on the information in scenario, what result is most likely under these facts?

• If Fred was "at will" Cheatum has no suit against Fred for breach of contract
• If Fred was "at will" Cheatum has no suit against Audit-R-Us because ther is no independent tort.
• If Fred was on a fixed one-year contract that had not yet expire, Cheatum has breach of contract case against Fred and an interference with contract case against Audits-R-Us
• All of the above

2. While shopping at the local Thrifty Mart, Larry Lozier slipped and fell on a small orange in the produce department, breaking his hip. The evidence indicated that the orange Larry slipped on had not been on the floor very long and that no other customer had stepped on it. Larry files a negligence suit against Thrifty Mart. At trial, the one defense raised by Thrifty Mart is that the orange must have just landed on the floor before Larry stepped on it, because the store clerk in charge of produce had just verified that the floor was clear of debris.

Based on the information in the scenario, is this a good defense, why?

• No, because Larry is a business invitee
• Yes, because Thrifty Mart only owes Larry a duty to warn or make safe conditions it knew or should have known, using reasonable care.
• Yes, because Thrifty Mart's obligation only begins when it receives actual notice of the problem
• No, because Larry is a licensee

3. A photographer for "Real Sport Magazine" is covering a professional baseball game. An obnoxious drunk, who had a double-header worth of beer in the first two innings, keeps approaching, saying "hey take my picture" The photographer finally obliges and snaps a couple of shots in the hope that this will quiet the inebriated one. One of these photos is hilarious, showing the drunk with his fly open and spilling beer down the front of his shirt, "Real Sport" publishes the photo, and the now-embarrassed fan sues for invasion of privacy. Examining the theories upon which fans invasion of privacy case could be based; the court dis missed all possible threats.

Based on the information in the scenario, which of the following determinations of the court were correct?

• He had no intrusion case, because he was in a public place
• He had no false light case, because there was no misrepresentation of the fan's views or actions
• He had non private facts disclosure case, because the fan invited the photographs, basically consenting to them
• All of the above were correct rulings of the court - he had no cause of action based upon invasion of privacy

4. While driving her car on the interstate, Ethel Leadfood strikes the car in front of hers, which is owned by Fred Weakback. The evidence shows Leadfood was following too close, speeding, and otherwise was clearly negligent in operating her motor vehicle. Fortunately, the accident appeared to be relatively minor, at least at first. The damage to the cars was slight, and both Ethel and Fred were able to stop their cars on the side of the road and get out to look at the damage and discuss the matter. However, suddenly, Fred collapsed, help arrived and Fred was transported to the Sisters of Perpetual Darkness Hospital, for profit facility. There, to the surprise of both Ethel and Fred. It was discovered that Fred had a very rare medical condition, which was triggered by the accident, leaving Fred totally paralyzed and disabled for life. The medical expenses alone to maintain his life will run into the millions of dollars. To make matters worse, the hospital intern who was treating Fred for his injuries committed malpractice on him, making his condition even worse.

Based on the information in the scenario and the facts presented, Fred sued Ethel, seeking damages for all of his losses. What result is most likely to occur?

• Ethel will be liable for all of fred's damages
• Ethel will be liable only for damaged that ere foreseeable, such as would normally arise from a minor"fender-bender" like this accident
• Fred assumed the risk of his injury, so Ethel is not liable for any of the damages Fred sustained
• Fred can recover all of his damages from Ethel, except those caused by the doctors malpractice

5. Shirley, enraged by her grade on the exam, threw a punch at her business law professor. The professor dodged the blow, and Shirley unintentionally struck Opie, who was standing behind the professor and never saw the punch coming.

Bases on the information in the scenario, what result is most likely under these circumstances?

• Shirley is liable to her professor for assault and battery
• Shirley is liable to Opie for assault and battery
• Shirley is liable to her professor for assault and to Opie for battery
• Shirley is liable to her professor for battery and to Opie for assault

6. At the City emergency Room, Dr. Killpatient tries but fails to save another automobile accident victim. What result is most likely to occur?

• If the patient dies, Killpatient is liable for negligence
• Killpatient can be liable under the strict liability theory
• Evidence that Killpatient treated the patient like other doctors would to the issues of duty and breach
• All of the above

7. Ace Deuce owns a new business known as Ace Deuce Hardware. To announce the grand opening of his business, Deuce placed an advertisement in the local newspaper. The ad quoted prices on various items, including a Massacre brand chainsaw. The grand opening was much more successful than Deuce had imagined it would be. He was unable to satisfy all consumers demand for certain items. After Deuce had sold all of the Massacre chainsaws he had in stock, customer Howard Surly demanded that he be sold a Massacre chainsaw at the advertised price, when Deuce did not comply, Surly sued him (in small claims court) for breach of contract.

Based on the information in the scenario, how should the court rule?

• That no contract was formed, because Deuce did not make an offer to Surly
• That Deuce is liable for breach of contract formed when Surly demanded a chainsaw at the advertised price
• That Deuce having run out of Massacre chainsaws amounted to a revocation of his offer
• That Deuce advertisement was an offer, but only if Surly actually read the advertisement before coming to the store.

8. Which of the following statements concerning modern contract law is NOT correct?

• Modern contract law is generally characterized by face to face transaction between parties of equal bargaining power
• Modern contract law reflects the fact that most contract today are standardized form of contracts
• Modern courts tend to make hand-on approach to contract law and often intervene in private contracts to protect weaker parties
• Modern contract rules permits parties to avoid contract liability in cases where traditional common law rules would have recognized a binding contract and imposed liability

9. Vinnie, a rock guitarist scheduled to perform at Madison Square Garden for the first time, purchases what he is told is one of Jimi Hendrix original guitars from a well-known and reputable dealer dealing in musical instruments, and plays the going rate for a famous guitar. Later, he learns the guitar is a perfect imitation made by a master forger of musical instruments, which fooled not only Vinnie but also this dealer.

Based on the information in this scenario, which of the following statements is true?

• The sale is voidable for mutual mistake as to the subject matter
• Vinnie has made an unilateral mistake and cannot avoid the contract - a classic application of " caveat emptor" or "buyer beware"
• The dealer has committed fraud in the inducement by its misrepresentation that the guitar was owned by Hendrix
• Vinnie can keep the fake, get his purchase money back, and sue for punitive damages due to the breach of the breach of the fitness warranty made.

10. "A", a merchant in the sale of goods writes an offer conveying the terms # 1, #2, and #3 to "B" writes back to "A", accepting "As" three terms and including an additional #4 term, which materially alters the agreement. In addition, "As" written offer did not provide that it contain all of the terms that could be agreed to.

Based on the information in the scenario, what is the status of the contract rights of the parties?

• A contract exists as to the first three terms, and a proposal has been made as to the fourth
• No contract exists, because there is no mirror image between the offer and acceptance
• A contract exists, consisting of all four terms
• No contract exist, because B made a counteroffer

11. Concerning the defense of unconscionability, which of the following is true?

• Key elements include unequal bargaining power and no meaningful choice for the victim
• Unconscionability is recognized by the UCC as well the common law, and is most typically invoked as a defense to unfair consumer contracts
• When found, the defense affords a court wide latitude to fashion a remedy to cure the contracts unfairness
• All of the above.

12. Under the Uniform Commercial Code, the standard measure for compensatory damages envisions that the non-breaching party will attempt to obtain performance of the contract elsewhere, and, therefore...:

• Where seller refused to sell, buyer's compensatory damages are measure by the market price or cover price minus the contract price
• Where buyer refused to buy the seller's compensatory damages are measure by the contract price or resale price minus the market price
• All of the above
• None of the above

13. George Buyer, seeing the market price falling, decides to intentionally breach his contract with Jim Seller, and refuses to take the 100 chairs he promised to buy from Jim. Jim is able to sell the chairs to another buyer, John for a lesser amount of the falling market. If Jim then sues George for damage, which of the following generally CANNOT be recovered?

• Punitive damages to punish intentional contract breaches
• Incidental damages associate with a breach of contract, such as the cost of resale
• Compensatory damages to put Jim in the same position he would have been but for the breach by George, measured by the difference between the contract price with George and the amount of paid by John
• Consequential damages if Jim can prove lost opportunity cost suffered as a result of the breach, such as lost opportunity costs for lost profits, etc., if such damages were foreseeable by George at the time the contract was made.