Week 3 Knowledge Check / (All 18 are correct)
1. What is true about the acceptance of a contract?
- A. It is effective only once it has reached the offeror, whether or not it has been properly dispatched by the offeree.
- B. It must not support the mirror image rule.
- C. It must be an unequivocal acceptance, without conditions or exceptions.
- D. It cannot be expressed with silence, even if the offeree has specified that silence means acceptance.
2. Which element of a contract requires something of legal value to be provided in exchange for a promise?
- A. Consideration
- B. Objective intent
- C. Agreement
- D. Capacity
3. Jason, a 16-year old boy, enters into a contract with a businessperson to work on a construction project. According to the contract, Jason has to work long hours but will get paid a minimal amount because of his age. Jason, though unfamiliar with contracts, knows that the contract is not fair to him. He decides to cancel it. What gives Jason the right to void the contract?
- A. Minor’s duty of restoration
- B. Infancy doctrine
- C. Adjudged insane
- D. Covenant not to compete
4. What will most likely happen when there is a material breach by one of the parties in a contract?
- A. The breaching party will restate the express terms of the contract.
- B. The contract will be discharged by both parties.
- C. The nonbreaching party will terminate the contract and recover compensation.
- D. The breaching party will affirm the contract and modify consideration terms.
5. Venus LLC is a supplier for Synergy Corp. These companies have entered into a contract according to which, Venus will supply Synergy with a certain quantity of raw materials every month. In the month of May, Venus realizes that it cannot keep to the terms of the contract due to an unforeseeable worker strike. It informs Synergy of this delay much before the planned delivery date. What type of contract breach is illustrated in the scenario?
- A. Minor breach
- B. Anticipatory breach
- C. Actual breach
- D. Retrospective breach
6. Identify the type of damages that are awarded to a nonbreaching party when a breach of contract has occurred but has not resulted in any financial losses for the nonbreaching party.
- A. Consequential damages
- B. Penalty damages
- C. Nominal damages
- D. Special damages
7. Identify the true statement about the legal protection of trade secrets.
- A. The law allows individuals or companies the use of trade secrets discovered through reverse engineering.
- B. The law does not place the obligation to protect trade secrets on the owners of the trade secrets.
- C. The law mandates that all trade secrets be copyrighted.
- D. The law does not categorize the stealing of a trade secret as a federal crime.
8. What type of subject matter can be patented according to the U.S. federal government?
- A. Scientific hypotheses and principles
- B. Abstractions
- C. Designs for a manufactured product
- D. Obvious inventions
9. Caleb, a doctoral student, is sued by the author of a textbook for copyright infringement. The court rules that Caleb is not guilty since the content was used for the purpose of review in his research paper. In addition, he has written these paragraphs verbatim and placed them within quotes, citing appropriate references. What doctrine has the court most likely applied in this scenario?
- A. Fair use doctrine
- B. Res ipsa loquiter
- C. Lanham doctrine
- D. Misrepresentation doctrine
10. Identify the true statement about personal property.
- A. Personal property does not include items that are captured, purchased, or gifted.
- B. Personal property can also be intangible.
- C. Personal property includes only real property.
- D. A single piece of personal property cannot be owned by two individuals at the same time.
11. Sandra is having her home renovated. Despite the specifications she has given the contractors, they add a door to separate her kitchen from her living room. Since Sandra likes the look, she does not ask them to change it. She also does not pay them extra, since the door was added by them, mistakenly. Which of the following terms best explains why Sandra has a right to the added feature without paying for it?
- A. Accession
- B. Confusion
- C. Mislaid property
- D. Gift inter vivos
12. Identify the situation in which two goods that look similar are commingled by owners who share ownership of the goods based on the proportion of their contributions.
- A. Accession
- B. Mislaid property
- C. Possession
- D. Confusion
13. What is true about real property, including land?
- A. Real property includes property that is movable.
- B. An owner of land has rights to the earth that lies beneath the land.
- C. An owner of land owns the vegetation on the land only if the owner himself has cultivated the vegetation.
- D. Real property does not encompass fixtures.
14. Mary owns a piece of land and enjoys complete legal rights to the land, without any conditions or limitations. Her ownership does not end unless she transfers the land to a beneficiary. There are also no limitations on the inheritability of the land. Which type of freehold estate does Mary most likely own?
- A. Fee simple defeasible
- B. Life estate
- C. Qualified fee
- D. Fee simple absolute
15. Gabriella and Priya own a piece of property together. The ownership terms state that in case of the death of one of the owners, the surviving owner will automatically gain complete ownership of the property. What kind of concurrent ownership is illustrated in this scenario?
- A. Joint tenancy
- B. Tenancy by the entirety
- C. Community property
- D. Tenancy in common
16. What is the best description of mislaid property?
- A. It is real property that is discarded by the owner.
- B. It is real property that has been constructed at the wrong place.
- C. It is personal property that has been unintentionally forgotten by the owner.
- D. It is personal property that has been lost by the owner.
17. Identify the true statement about the ownership of mislaid, abandoned, and lost property.
- A. The owner of lost property cannot claim ownership of it when it has been acquired by someone else.
- B. The finder of abandoned property acquires ownership of the property even against the previous owner.
- C. The finder of mislaid property can rightfully claim a share in the property from the owner.
- D. The owner who abandons a piece of property will still be considered the rightful owner of the property, even if the property has been acquired by another individual.
18. Paulina purchased a rare and expensive gem when she was living in Mexico. Since then, she has relocated various times. Now, seven years later, Paulina cannot find the rare gem and does not know where she last saw it. After various attempts to find it, Paulina has decided not to look for the gem again. What will the rare gem most likely be categorized as in this scenario?
- A. Real property
- B. Abandoned property
- C. Mislaid property
- D. Lost property