30. Damages intended to punish a defendant and deter the defendant…

30. Damages intended to punish a defendant and deter the defendant from engaging in the same tortious conduct in the future are called:

Penalty damages.

Retribution damages.

Punitive damages.

Preventative damages.
31. A decree of rescission is

an action to cancel a contract and return the parties to the positions they held before the contract’s for¬mation.

an award of damages.

an order to do or refrain from doing a particular act.

an order to perform what was promised.
32. Gamma Company and Omega Corporation enter into an oral contract for the sale of a warehouse. Before Omega takes possession, this contract is enforceable by

Gamma only.

Gamma or Omega.

neither Gamma nor Omega.

Omega only.
33. In order to have an investment contract which is regulated by the SEC, which of the following is required?

An investment of money.

A common enterprise.

The expectation that profit from the enterprise will result from the efforts of others.

A, B and C.
34. A corporation typically may not have:

a single incorporator.

a single shareholder.

a single director.

it may have any of the above.
35. Which of the following is a true statement?

A U.S. company doing business abroad will not have to comply with the Occupational Safety and Health Act regulations on worker safety for its overseas manufacturing facilities.

A union shop is a firm that that requires union membership as a prior condition of employment.

Under federal labor law in the U.S., employers can monitor and read their employees’ personal communications without their consent.

An employer in the U.S. may hire an illegal immigrant if the employer pays a special tax to the Treasury Department.
36. Which of the following constitutes legal consideration?

A promise based upon a change in duties and payments.

A promise based upon a moral obligation.

A promise based upon past consideration.

A promise based upon a preexisting duty.
37. The “mailbox rule” says that:

Offers and acceptances must be communicated through the mail in order to be effective.

Offers and acceptances are effective when placed in the mail.

A properly dispatched acceptance is effective when sent even if the offeror never receives it.

A revocation is effective when sent.
38. Which of the following is FALSE about agency relationships?

a. The agent owes a duty of obedience to the principal.

b. The agent owes a duty of due care to the principal.

c. The agent owes a duty of an accounting to the principal.

d. The agent does not own a fiduciary duty to the principal since the agent is really only a "glorified" employee.
39. Which of the following is/are TRUE about performance of a contract?

a. Under the UCC, the performance of a sales contract must meet the "perfect tender" rule.

b. Under the common law, the performance of a construction contract must meet the "substantial performance" doctrine.

c. Under the common law, a contract with a time for performance must be performed as a general rule on the contract date or a reasonable time thereafter.

d. All of the above are true.



40. Regarding the assignment of contract rights:

The party to whom a contract right is transferred to is called the assignee.

The party who owes the duty of performance is called the obligor.

The party who transfers his right to another is called the assignor.

A, B and C.

Frank, an officer of Gamma, Inc. learns that Gamma has developed a new source of energy. Frank tells Gail, an outsider. They each buy Gamma stock. When the development is announced, the stock price increases and they each immediately sell their stock. Subject to liability for insider trading is or are:

Frank and Gail.

Frank only.

Gail only.

neither Frank nor Gail.
3. Janet is hired as a driver for Speedy Delivery, Inc. as an employee at-will. Her boss tells her that she MUST speed on the roads to deliver packages in a timely manner just like all the other Speedy drivers do. Janet refuses since this is a dangerous, reckless, as well as illegal practice. Her boss fires her for not following orders. The boss also tells Janet that she cannot sue Speedy for wrongful discharge since she is only an employee at-will. Which of the following is the most accurate statement?

a. The boss is right as anyone can be fired for virtually anything if one is an employee at-will.

b. The boss is right since everyone speeds.

c. The boss is wrong if Janet is a lesbian.

d. The boss is wrong since being fired under these circumstances is likely a violation of the Public Policy doctrine.
4. Nan sells her boat to Owen and Pat, who are not married. The contract of sale says that the buyers each have a right to survivorship in the boat. Owen and XXXXX XXXXXkely own the boat as

community property.

joint tenants.

tenan