7. Digital Products Company agrees to sell to Eagle Manufacturing,

7. Digital Products Company agrees to sell to Eagle Manufacturing, Inc., a customized software system. If Eagle materially breaches the contract, the remedies available to Digital include the right

to cancel the contract only.

to recover damages only.

to cancel the contract and recover damages.

none of the above.
8. Jack, an older worker who was laid-off from his job due to economic reasons, applies for a new position with Y Corporation, He is rejected for employment. The reason given is that he is "over-qualified." The position remains open and another younger candidate is chosen. Jack sues for discrimination based on age in violation of the ADEA. Which is an accurate statement regarding Jack's lawsuit?

Jack must be over 40 to bring a lawsuit.

Jack will prevail if he can convince the court that the use of the words "over-qualified" was a "code word" showing a discriminatory intent.

Jack will lose if the company can convince the court that having a young person in the position was a BFOQ.

All are accurate.
9. Albert is the Chief Financial Officer of a company that is regulated by the Sarbanes-Oxley Act. Pursuant to this statute, Albert must:

Comply with the Act's certification statements.

Not retaliate against whistleblowers.

Not receive a personal loan from his company except for very limited purposes.

All of the above.
10. Luxury Home Builders has a contract with Ricardo to build a luxury waterfront home for $17 million. The project is complete and fulfills all contract requirements, except the bathroom fixtures that were installed mistakenly were Sears fixtures instead of top-rated, gold-plated, clearly specified, Kohler ones. "My goodness, gracious, Sears," Ricardo exclaims, when he discovers this! He is very insulted and incensed and refuses to pay a dime! Whereupon, Luxury sues him for breach of contract. The likely result will be:

Ricardo will prevail since the contract was breached as the contract specifications were not fulfilled perfectly.

Ricardo will prevail since his contract duties were completely discharged by Luxury's breach of contract.

Ricardo will prevail and in addition to compensatory damages be able to cover emotional distress damages too.

Luxury will recover the contract price minus the amount necessary to replace the fixtures since it otherwise substantially performed and the deviation from the contract was caused by mistake.
11. Miriam is so bothered by the loud, noisy, gross, offensive bug extermination commercials on television during the dinner hours. She wants to stop them so she sues one company for the tort of intentional infliction of emotional distress. The likely result of this lawsuit will be:

Miriam will prevail if she can convince a court that she is squeamish about bugs.

Miriam will prevail if the company does not have permission from the Federal Trade Commission to advertise bug extermination services during the dinner hour.

Miriam will lose since the company's conduct is not sufficiently outrageous or atrocious.

Miriam will lose since the tort of intentional infliction of emotional distress requires some type of physical impact on the victim.
12. The Foreign Corrupt Practices Act can prevent each of the following except:

Bribes to foreign officials.

Bribes to foreign political party officials.

Bribes to candidates for office in foreign nations.

Facilitating and expediting payments to lower level foreign officials for routine government actions.
13. Jill is a shareholder of Kappa Company. As a shareholder, Jill does not have a right to

compensation.

dividends.

inspect corporate books and records.

transfer shares.
14. Rowan, a basketball star, signs a two year contract to play basketball for the Bullets for $200,000 per game. Right before a "big game," Rowan goes to the owner of the team and says that he will not play at all unless the owner pays him and additional $10,000 per game. The owner, being desperate, reluctantly agrees and promises to pay Rowan more. Now that the season is over, Rowan demands his additional compensation of $10,000 per game; but the owner of the Bullets refuses to pay. Rowan sues the owner for breach of contract. The most likely result of the lawsuit is that:

a. Rowan wins since this is a valid modification of a pre-existing earlier contract.

b. Owner wins since a contract can never be modified whatsoever, even if the parties agree to the modification.

c. Rowan wins since this is a valid modification of a contract pursuant to the Uniform Commercial Code, which needs no new consideration to be enforceable.

d. Owner wins since Rowan was under a prior duty to play basketball, so the owner's new promise to pay more money for the same act was not detriment on Rowan's part, and consequently was not supported by consideration on Rowan's part, and thus the owner's promise is not enforce