Business Law Practice QuestionsMULTIPLE CHOICE (answers at bottom of page)1. Paul filed a lawsuit for false imprisonment against Dan’s Bookstore. During a visit to Dan’sBookstore, Dan stopped Paul as he left the store. Dan accused Paul of stealing a book from thestore. After briefly looking into Paul’s shopping bag, Dan determined that Paul did not shoplift.He apologized to Paul and released him. On these facts, Dan will likely:a. win the case, because the shopkeepers’ privilege statute gives store merchants unconditionalimmunity (protection) from such lawsuits.b. lose the case, because Paul did not shoplift.c. win the case, but only if a court or trier of fact concludes that Dan had reasonable cause tobelieve Paul may have shoplifted, detained him for a reasonable time, and in a reasonablemanner.d. lose the case, because Dan did not have a warrant.2. Bonds wrote McGuire, “I will sell you my house and lot at 419 West Lombard Street, SanFrancisco, California for $950,000 payable upon merchantable deed, deal to be completed within60 days of the date of your acceptance.” Assuming that Bonds’ letter contains terms which aredeemed sufficiently certain and definite, which of the following statements is correct?a. Bonds’ letter is not an offer unless Bonds intended it to be an offer.b. Bonds’ letter is not an offer unless McGuire thought Bonds intended to make an offer.c. Bonds’ letter is an offer if a reasonable person with full knowledge of the circumstanceswould be justified in thinking it was intended as an offer..d. Bonds’ letter is not a offer unless both Bonds and McGuire considered it as an offer.3. Iverson Jewelers wrote a letter to Miller, “We have received an exceptionally fine self windingRolox watch which we will sell to you at a very favorable price.”a. The letter is an offer to sell.b. A valid offer cannot be made by letter.c. The letter contains a valid offer which will terminate within a reasonable time.d. The letter lacks one of the essential elements of an offer.4. Don was negligently driving south on Merdock Avenue when his car rear-ended a car driven byPatty. The force of the impact forced Patty to rear-end Terry’s car. In turn, the force of thesecond impact caused Terry’s car to hit a lamppost, which then fell on a house owned by Paul.The force of the impact scared Paul, causing him to immediately have a heart attack. Paul suesDon for negligence. If Paul recovers, the most likely reason is:a. Paul was able to prove that Don proximately caused Paul’s injuries.b. Paul was able to prove that the damages he suffered were actually caused by Don.c. Paul was able to prove that Don breached a duty of due care owed by Don to Paul.d. Paul was able to prove all of the above (a, b & c).5. Sammy agreed to sell and Larry agreed to buy Sammy’s car for $400, payable upon delivery.Sammy delivered and left the car with Larry. However, Larry failed to pay Sammy the $400.After eight years had passed following the delivery and acceptance of the car by Larry, Sammysued Larry in state court for failure to pay him the $400. Based only on the above stated facts,which of the following statement is most accurate? Assume the UCC applies and the statute oflimitations for oral contracts is two years and for written contracts is four years.a. No contract was ever created between Sammy and Larry.b. A contract was created but likely not enforceable because the statute of limitations hasexpired.c. A contract was created, but it is only enforceable if it is in writing.d. A contract was created and is enforceable.6. Bill purchased a can of Sipep from the Ajax Minimart. After he finished drinking the Sipep, Billnoticed that the can contained dead insects stuck on the inside bottom of the can. In a strictproduct liability tort action against Ajax, Bill must prove, among other things, that:a. Ajax is a merchant selling Sipep.b. Ajax knew or should have known of the defective condition.c. Ajax had prior notice of other similar problems with Sipep products.d. Ajax actually placed the dead insects into the can.7. Under which of the following situations does strict product liability apply?a. Sale of a defective and unreasonably dangerous product.b. Manufacture of a defective and unreasonably dangerous product.c. Both (a) and (b) are correct.d. Neither (a) nor (b) are correct.8. On May 1, Back-Talk Computer Store offerd to sell five (5) computer servers to GatekeeperCompany for $5,000.00 each, delivery to be on May 30. Later that day (May 1), Gatekeeperresponded that it would buy the computers only if they were delivered within three business days.Back-Talk notified Gatekeeper the next day, May 2, that it would not be able to deliver the goodswithin the time requested by Gatekeeper. Which of the following is true regarding Back-Talk'soffer?a. There is no contract between Back-Talk and Gatekeeper.b. Gatekeeper's additional term became part of the contract, so Back-Talk is obligated todeliver the goods within three business days.c. Back-Talk's offer was accepted by Gatekeeperd. Gatekeeper may later accept Back-Talk’s May 1 offer if it is then willing to acceptdelivery in four weeks.9. The body of law which establishes rights between persons and provides for redress for violation ofthose rights is known as:a. Criminal Law.b. Civil Law.c. The Uniform Commercial Code.d. Stare decisis.10. Donny threw a knife at Sally, intending to injure her severely. However, Donny missed Sally.Sally saw the knife just as it whizzed by her head, missing it by about one inch. As a result, Sallywas very scared. Sally sued Donny for assault and battery. Which of the following is mostcorrect?a. Donny will be liable for battery, but not assault.b. Donny will be liable for assault, but not battery.c. Donny will be liable for assault and for battery.d. Donny will not be liable for either assault or battery because this is only a criminalmatter.11. In most states the following types of contracts are within the statute of frauds.a. Contracts for the sale of an interest in personal property.b. Contracts that can be performed within a year from the date of their formation.c. Contracts for the sale of goods.d. Contract sfor the sale of goods for a price of $500 or more.12. On May 1, 2005, Eckerly Realty Inc. mailed a written offer to Masse for the sale of an officebuilding. The offer included an express term that it would expire on June 30, 2005 if theacceptance was not delivered into the hands of the