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Open book exam

Only the post in the assignment folder will be graded, absent any technical problems with reading the file in the assignment folder. There are 25 multiple choice questions; there are 9 essay questions. The exam is worth a total of 100 points. Section: Section I. Multiple Choice: 25 questions/50 points USE THE ANSWER SHEET included at the bottom of this page for answers; copy and paste it as is, no changes, please. DO NOT COPY Multiple Choice QUESTIONS. Each question is worth 2 points. This is an application-oriented exam; you will not find the answer to questions verbatim in the text. If you believe a question is not covered in any of the assigned materials, you have missed the issue and need to re-think. Put letter of correct answer on the answer sheet at the bottom of this page. There is only one correct answer to each question.

1. Sam orally agreed to sell Ramie some land for $500,000. Ramie paid Sam the $500,000; Sam gave Ramie the deed to the land. Ramie took possession of the land and began building a cabin on it. One month later, Sam tried to retake possession of the land by arguing that the contract for the sale was invalid because it was oral, not written. Sam sued Ramie to invalidate the contract and retake the land. The court will likely conclude that Sam will: a) Win; the sale exceeded $500 so the contract must be written to be valid. b) Win; all land sales contracts must be written. c) Lose; because the contract was fully executed Sam cannot rescind the contract. d) Lose; because Ramie had begun building a cabin on the property, Sam cannot rescind the contract.

2. On Tuesday, Sam offered to sell his CD collection to Sandy for $100. Sandy replied, “I’m interested. I’ll think it over and let you know Thursday whether I want to buy the CDs.” On Wednesday, Sam agreed to sell the CDs to Jason, and Jason immediately gave Sam a letter that stated: “Sam, I will buy your CD collection for $100. As we agreed, I will pay you on Friday when I pick up the CDs. Yours truly, Jason.” Upon Sam’s receipt of this letter on Wednesday, what best describes Sam’s contract agreement(s)? a) By forming an agreement with Jason, Sam breached his contract with Sandy. b) Sam has formed contracts with both Jason and Sandy. c) Sam and Jason have formed a valid, enforceable contract; Sam did not form a contract with Sandy. d) Sam formed a contract with Sandy, but has not formed an enforceable contract with Jason because Jason has not yet paid for the CD collection.

3. Mac and Rhamad signed a business contract with a clause that provides that if a dispute arises they must submit to binding arbitration to resolve the dispute. After they had been doing business together for a year, a dispute arose under the terms of the contract. Rather than submit to arbitration, Mac filed a lawsuit against Rhamad. Most likely the court will: a) Hear the lawsuit because Mac cannot be compelled to submit to arbitration; he is constitutionally entitled to a jury trial if he requests a trial. b) Conduct a bench trial, then order a remedy without compelling Mac to submit to arbitration or to a jury trial. c) Compel Mac to submit to arbitration to resolve the dispute. d) Hear the lawsuit in a trial, then compel Mac to submit to arbitration, if Mac is not satisfied with the trial decision.

4. Roxy, while driving through Wyoming to her home in Montana, accidentally lost control of her car and drove it through a window into a store owned by Colt. Colt sued Roxy in a Wyoming court for damages to his store. Will the Wyoming court likely be able to exercise jurisdiction over Roxy? a) No, because Wyoming has no in personam (personal) jurisdiction over Roxy, and cannot exercise its long arm statute in cases only involving automobile accidents. b) No, because Wyoming has no in personam jurisdiction over Roxy, and cannot justify minimum contacts in this case. c) Yes, Wyoming can exercise in personam jurisdiction in this case because any state court has personal jurisdiction in every diversity of citizenship case. d) Yes, because Wyoming can assert in personam jurisdiction over Roxy under the minimum contacts test.

5. Assume a salesperson intentionally made one of the following statements – knowing that the statement was false – to a customer considering a purchase. Which statement could create liability for fraudulent misrepresentation if the customer made the purchase? a) “In my opinion, this car is in flawless mechanical condition.” b) “This crane will probably lift about 10,000 pounds.” c) “This car is a real gem.” d) “This is an original painting by the artist, Pablo Picasso.”

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