(1) James Reston offered, via letter, to sell his mountain cabin to Jennifer Olsen for $375,000.Before Jennifer could respond, Reston died suddenly.What happens with the offer?

a.Theoffer remains open until Reston's estate revokes it.b.The offer is enforceable against the estate of Reston.c.Jennifer still has the power of acceptance for a reasonable period of time after Reston's death.d.The offer terminated with Reston's death.

(2) Which of the following isnota risk associated with international contracting?

a.Currency exchange rates

b.Transportation costs

c.Fee collection

d.None of the above

(3)The Fair Credit Reporting Act applies:

a.only to consumer reporting agencies.

b.to all information on consumer debtors.

c.to consumer and commercial credit.

d.none of the above

(4)Which of the following is an example of an express warranty?

a."Guaranteed to bring the most happiness to any home."

b."Simply the best donut you'll ever eat."

c."Brings friends running to you."

d.none of the above

(5)Homer, Inc. is the western regional distributor for Plato Ice Cream. Homer charges grocers in California $3.00 per half gallon but charges Utah grocers only $2.00 per half gallon. Homer says the Utah ice cream market is much more competitive and he has to meet the market. Utah competitors charge between $2.50 and $2.75 per half gallon. Homer:

a.

has engaged in price discrimination.

b.

is simply meeting the competition.

c.

is exempt from Robinson-Patman because of interstate sales.

d.

none of the above

(6)Jane Linden is negotiating with James Paul to buy his 2012 Mini-Cooper. The following excerpts from letters have occurred so far:

Jane: "I would be interested in purchasing your Mini-Cooper."

James: "I am thinking of selling my Mini-Cooper."

Jane: "I am considering selling my diamond tennis bracelet to buy your Mini-Cooper."

Which of the following statements is true?

a.

James and Jane have a contract to sell the Mini-Cooper.

b.

James and Jane do not have a contract to sell the Mini-Cooper.

(7)Hain Celestial Group, Inc. advertises its products as containing "no harsh chemicals."The labels also noted that its products contained no sodium lauryl sulfate (SLS), something that can result in skin irritation.The Wall Street Journal had Hain's Honest laundry detergent and Earth's Best baby shampoo tested and a lab found that the products contained more than "trace amounts of SLS".The Wall Street Journal contacted Hain, and Hain responded that it does "not add SLS" to its products.Which of the following statements is correct?

a.

Hain has breached an express warranty with its SLS claim on its products.

b.

Express warranty provisions do not apply to non-mechanical products.

c.

The issue is not material and will not result in any warranty or product liability issues.

d.

The products are not defective; they simply contain different elements.

(8)Upwind and downwind liability refers to:

a.

the Transport Rule.

b.

MACT emissions standards.

c.

greenhouse emissions.

d.

both b and c

(9)Which of the following acts controls point sources?

a.

Clean Air Act

b.

Toxic Substances Control Act

c.

Clean Water Act

d.

all of the above

(10)What would be a defense that merging companies could use if the Justice Department tried to block their merger?

a.

failing company doctrine

b.

definition of the product market

c.

ability of new companies to start in the market

d.

all of the above

(11)Which of the following acts prohibits unfair methods of competition?

a.

Sherman Act

b.

Federal Trade Commission Act

c.

Robinson-Patman Act

d.

Clayton Act

e.

none of the above

(12)The federal government is required to build a border fence along the U.S. and Mexican border. As construction began, several environmental groups brought suit because the Army Corps of Engineers and the Department of Homeland Security had not complied with federal law. Which of the following federal laws would the two agencies have to comply with before constructing the wall?

a.

They would need to do due diligence on the land before building the fence.

b.

They would need to do EIS.

c.

They would need to designate any area where the fence is located as a brownfield.

d.

both b and c

(13)Anheuser-Busch, InBev NV, the maker of Bud Light, proposed a merger with Modelo, the maker of Corona. At the time of the proposed merger, AB InBev NV held 39% of the beer market, Miller/Coors held 26%, Modelo held 7%, and Heineken, the last of the big four held 6%.Other beer makers combined hold the remaining 22% of the U.S. beer market. The combination would give AB InBev NV 46% of the market. Modelo has been one of the market players that has resisted the parallel price increases in the industry.

Which of the following is correct?

a.

The merger proposed is a horizontal one.

b.

The merger is simply an asset acquisition.

c.

The merger is exempt under the failing company doctrine.

d.

The merger proposed is a vertical one.