1. Eagle Manufacturing, Inc., contracted with Digital Repair Services to maintain Eagle’s computers. A “Liquidated Damages Clause” provides that Digital will pay Eagle $500 for each day that Digital is late in responding to a service request. If Digital is three days late in responding, and Eagle sues to enforce this clause, Eagle will

A) lose, because liquidated damages clauses violate public policy.

B) lose, unless the liquidated damages clause is determined to be a penalty.

C) win, because liquidated damages clauses are always enforceable.

D) win, unless the liquidated damages clause is determined to be a penalty.

2. Fast Ed, a stock trader, engages in a “pump and dump” scheme whereby he goes into Internet chat stock rooms and “hypes,” praises, and extols certain stocks he owns. He says such things as: “This is the best stock ever.” “This stock is great and will make us a fortune.” “You MUST own this stock in your portfolio.” He does repeatedly and uses several aliases. Then, when Fast Ed has “pumped up” the price of the stock to a certain level, he calls his broker to sell, that is, to “dump,” the stock. He makes a lot of money with this scheme. Fast Ed is likely acting:

A) Illegally pursuant to the common law tort of deceit since he did not disclose the aliases.

B) Illegally pursuant to the Securities Act of 1934 for engaging in stock manipulation.

C) Legally since he was careful not to make any misrepresentations of material fact regarding the stock, and just used “puffing” or sales talk.

D) Legally since everyone knows not to put any credence behind what people say in chat rooms, especially about stocks, and thus “Let the buyer beware.”

3. Stan buys a CD player from Tom, his neighbor, who agrees to keep the player until Stan picks it up. Before Stan can get it, the player is stolen. The loss is suffered by

A) Stan only.

B) Tom only.

C) Stan and Tom.

D) none of the above.

4. Tech, Inc., sells its brand-name computer equipment directly to its franchised retailers. Depending on how existing franchisees do, Tech may limit the number of franchisees in a given area to reduce intrabrand competition. Tech’s restriction on the number of dealers likely is

A) a per se violation of the Sherman Act.

B) exempt from the antitrust laws.

C) subject to continuing review by the appropriate federal agency.

D) subject to the rule of reason. 

 1. When Kevin started his car in the parking lot, he also turned on the radio to his favorite station. As he entered the street next to the campus, he turned the radio up due to the increased background noise in the car. Entering the highway, he again increased the volume until he could hear the music clearly. Driving into the driveway at home, he saw his mother watering her roses in the front yard. “Kevin! Turn down that radio. We are going to be deaf before you are twenty five!” she instructed as he open the car door. He had not noticed how very loud the radio was until she mentioned it. Kevin had experienced:

A. absolute threshold constancy.

B. Weber’s Law.

C. sensory adaptation.

D. sensory deprivation.

2. Classical and operant conditioning both result in learning, but are quite different in that:

A. classical conditioning is an artificial process, while operant conditioning is only found outside of the laboratory.

B. classical conditioning tends to increase behavior, while operant conditioning decreases behavior.

C. classical conditioning broadens the types of responses, while operant conditioning may increase or decrease responses.

D. classical conditioning is an involuntary process, while operant conditioning is voluntary.

3. “Tell me how to put it together!” Kent demanded. “I can’t.” Alvin complained. “I know how to do it, but I can’t just tell you or write it down. It just all comes together one step after another.” Alvin is attempting to explain:

A. the importance of timing in semantic memory.

B. the difference between declarative and procedural memory.

C. the primacy and recency effect.

D. the effect of aging on memory.

4. The disadvantages of group intelligence tests include that:

A. all test takers must wait until all registered individuals arrive.

B. proctors are often inconsistent and allow some test takers a longer time to respond or to take testing breaks.

C. some test takers talk to themselves and disturbs others.

D. some test takers are more motivated to perform at their highest level in a one-one testing situation.

1. Dickie “Mulehorse” Nixon was the star fullback for Whittier College football team. After missing two practices, Nixon was “dropped” from the team by Archie Cox, the head football coach. Following his dismissal, Nixon met with Cox and asked if he could rejoin the team. Cox told Nixon that he was despised by the other players and under no circumstances could he return to the team. As Nixon was leaving Cox’s office very dejected, the coach then said to him, “Hope you decide to transfer, Mulehorse, everybody hates your guts around here”. Later that same evening, Nixon wrote a suicide note in which he stated, “Coach Cox is responsible for my despondency. If I can’t play football for Whittier, I don’t want to live.” After swallowing a bottle of Quaalude barbiturates, Nixon fell unconscious in his dormitory room. Moments later, Pat Checkers, Nixon’s roommate, entered the room and saw his limp body on the floor. Checkers read the suicide note and then attempted to administer aid.
A. prevail, if Cox intended to cause him to suffer emotional distress
B. prevail, because Cox’s remark did in fact cause Nixon to suffer emotional distress
C. not prevail, because Nixon’s drug overdose resulted from his own voluntary act
D. not prevail, unless Cox knew that Nixon was an extremely sensitive person

2. Dave Schultz was a professional hockey player for the Philadelphia Ruffians. One evening in a game between the Ruffians and the Pittsburgh Eskimos, Schultz got hit in the face with a hockey puck. Schultz was rendered temporarily unconscious and had to be taken to the dressing room on a stretcher. While in the dressing room, Schultz regained consciousness but he was in excruciating pain and discomfort. The puck fractured
Schultz’s nose, blackened his eyes and knocked out three teeth. 
As the team physician administered medical assistance, Bobby Clarke, the Ruffians’ trainer, entered the dressing room with his camera. Clarke often took pictures of the Ruffian players for his personal collection. Clarke placed a pillow under Schultz’s head and was about to take his picture when the supine athlete protested and told Clarke “get the hell out of here, I don’t want my picture taken.” Clarke took two pictures anyway.
If Schultz brings suit for tortious battery against Clarke, the plaintiff will likely
A. succeed, if Clarke’s act was offensive to Schultz
B. succeed, if Clarke’s act caused Schultz to suffer embarrassment or humiliation
C. not succeed, because Schultz did not suffer any injury
D. not succeed, because Clarke regularly took pictures of Ruffian players

3. If Patty initiates a suit against Marty to recover damages for her broken arm, Patty will
A. recover for assault only
B. recover for battery only
C. recover for assault and battery
D. not recover

4. If Bob sues Carl, Dave, and Ed for battery due to being hit by the rock he will:
A. recover. 
B. not recover, because he does not know who threw the stone that hit him. 
C. not recover, because he suffered no injury.
D. not recover, because he is presumed to have consented. 

1. At one point in time, the company Gator-Aide commanded 83% of the sports beverage market. This market share was primarily due to the fact that a University of Florida professor had invented the product which became very popular and thus the company became very successful. However, there were two other competitors in the market – Coke and Pepsi, which approximately shared the rests of the market. Pursuant to Section 2 of the Sherman Act, the best conclusion regarding anti-trust liability for Gator-Aide would be:
The company would be deemed guilty of monopolization of commerce since it possessed a very high share of the market.
The company would not be deemed guilty of monopolization of commerce.
The company would not be liable since the courts would say that the market was too narrowly defined and should include other sports drinks, such as water, soda, and beer (but only light beer).
The company committed a horizontal restraint of trade by “freezing out” its main competitors.

2.Dan assigns to Evan a contract to buy a used car from Fran. To be valid, the assignment must
be in writing and be signed to Dan.
be supported by adequate consideration from Evan.
not be revocable by Dan.
not materially increase Fran’s risk or duty.

 3. 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.

 4. Shaquille is hired as a clerk in a “check-cashing store.” He receives a notice in the mail to attend “jury duty.” His boss tells him that he MUST work and can NOT attend jury duty because he is needed at work. Nonetheless, Shaquille goes to jury duty and is picked as a juror. Eventually, after a five day trial, he returns to work. His boss then fires him for being absent even though Shaquille called each day to inform his boss that he was on jury duty. When Shaquille informs his boss that he intends to sue him for “wrongful discharge,” the boss laughs and tells Shaquille that he cannot sue because he is only an employee at-will. Which of the following is the most accurate statement?
a. The boss is right since an employee at-will can be fired for virtually anything.
b. The boss is right since everyone who is absent from work can be fired.
c. The boss is wrong since there was an implied contract that Shaquille could remain at his job for a reasonable amount of time.
d. The boss is wrong because being fired under these circumstances is likely a violation of the Public Policy doctrine.

1. Eric wrote Donna a check for $50. Eric accidentally dated the check 3/1/07, even though it was actually 3/1/08 when he wrote the check. Eric thought that there was $75 in the account, but there was actually only $10 in the account. Which one of the following scenarios is most likely to occur? 

A. The bank will not honor the check because it’s stale. 

B. The bank will not honor the check because it’s postdated. 

C. The bank will honor the check, even though it will result in an overdraft. 

D. The bank will honor the check, even though a stop-payment order has been made. 

2. Erica writes a $100 check to Sam. Sam takes the check to his bank, endorses the check, and deposits it into his bank. This process is best described as 

A. transfer by assignment. 

B. taking for value. 

C. transfer by negotiation. 

D. transfer to a holder in due course. 

3. Sara wrote a check to Steven in the amount of $100 to be drawn from her account at Big Money Bank. When took the check to Big Money Bank to be cashed, Big Money refused to pay the check because Sara’s deposit wasn’t made in time to be credited to her account for that day and wouldn’t be available until the next day. Which of the following is true about this turn of events? 

A. Sara is liable to Steven for the $100. 

B. Sara is not liable to Steven for the $100. 

C. Big Money Bank is liable to Sara for the $100. 

D. Big Money Bank is liable to Steven for the $100. 

4. Joan noticed one day that her bank debit card was missing from her purse. Joan notified her bank immediately. When Joan received her statement the next month, the bank charged her $500 for withdrawals made after the debit card disappeared. Which one of the following laws do the charged violate? 

A. Federal Trade Commission Act of 1914 

B. Electronic Fund Transfer Act of 1978 

C. Banking Act of 1999 

D. Electronic Communications Privacy Act of 1986