Question 1

New York enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include dismembering or sexually assaulting the image of a human being." On appeal from a challenge by gamemakers,the state asks a federal court to enforce the statute.Based on the decisions of other federal courts in cases involving similar statutes,the court in this case is most likely to

A)refuse to extend restrictions on sex-based content to violence in video games.
B)expand the label's warning to include other forms of violence.
C)impose market-share liability on makers of violent video games.
D)replace the voluntary rating system currently in use.

refuse to extend restrictions on sex-based content to violence in video games.

Accepted Answer

The similar statutes mentioned in the question likely refer to previous cases that have found video games to be protected by the First Amendment and therefore restrictions on their content must be narrowly tailored to serve a compelling government interest. While some courts have upheld labeling requirements for violent video games, it is unlikely that a court would expand the labeling requirement to other forms of violence or impose market-share liability, and replacing the voluntary rating system is not directly mentioned in the question.

Question 2

The Anti-Counterfeiting Trade Agreement is most likely to apply to&#10;A)pirated copyrighted works distributed via the Internet.&#10;B)personal financial information on its owner's laptop.&#10;C)legally downloaded recordings on a user's iPod.&#10;D)a business firm's trade secrets cached on the firm's server.

Accepted Answer

The Anti-Counterfeiting Trade Agreement (ACTA) is an international agreement aimed at combating counterfeit goods, including pirated copyrighted works distributed via the Internet. Therefore, choice A is the best option. Choices B, C, and D are not directly related to the main purpose of ACTA.

Question 3

Movies,Inc.(MI),releases on DVD Nothing to Hide,a film focusing on the lack of privacy in cyberspace.Owen posts online computer code that cracks the DVD's encryption,allowing users to make unauthorized copies.MI files a suit against Owen.The court is most likely to rule that

A)computer code is a form of "pure speech."
B)the First Amendment completely protects computer code.
C)the First Amendment does not apply to computer code.
D)the First Amendment protects computer code to a lesser extent.

the First Amendment protects computer code to a lesser extent.

Accepted Answer

While computer code is considered a form of speech, the court has ruled that the First Amendment protection afforded to it is not absolute. In cases where the code is used to infringe on intellectual property rights, the protection is lesser. Therefore, the court is likely to rule that Owen's posting of the computer code that allowed unauthorized copying of MI's DVD is not fully protected by the First Amendment.

Question 4

Jaime,a cocoa bean farmer in Columbia,forms an alliance with Irwin,an importer and marketer in the United States.Their products carry a Fair Trade label.This means that Jaime&#10;A)accepts whatever price for his products that the market will bear.&#10;B)receives a stable minimum price for his products.&#10;C)employs forced labor at a fair price whenever possible.&#10;D)produces crops as cheaply as possible to keep his prices minimal.

Accepted Answer

The Fair Trade label guarantees that the farmers receive a stable minimum price for their products, which ensures their basic needs are met. This helps support sustainable farming practices and fair labor conditions.

Question 5

Ray and Strip Mines,Inc. ,enter into a contract for a sale of the coal beneath Ray's land for a fraction of the value of the coal and the cost to restore the land.A court is most likely to determine that this deal is unfair under

A)the concept of unconscionability.
B)the doctrine of promissory estoppel.
C)the principle of freedom of contract.
D)the Statute of Frauds.

Accepted Answer

The concept of unconscionability refers to a situation where a contract is so one-sided or oppressive that it is considered unfair and unreasonable. In this case, the sale of the coal for a fraction of its value and the cost to restore the land is likely to be considered unconscionable by a court.

Question 6

GPS Devices Inc.sponsors a &#34;Finders Keepers!&#34; contest in which Erwin and other entrants agree to race to certain locales to win small prizes and collect clues that lead to the &#34;Grand Lost Treasure,&#34; which the first finder will be awarded.GPS reserves the right to cancel the contest or change its terms at any time.If Erwin challenges this reservation in court,the court will most likely hold that GPS can&#10;A)cancel the contest or alter its terms at any time.&#10;B)not modify the terms of the contest after it begins.&#10;C)reduce the amount of the small prizes but not the grand prize.&#10;D)reduce the amount of the grand prize but not the small prizes.

Accepted Answer

This reservation is a standard clause in contracts and is legal as long as it is not used to deceive or defraud the participants. The court is likely to uphold this reservation as GPS has the right to adjust the contest in any way it deems necessary.

Question 7

Orly's debts are discharged in a liquidation bankruptcy.Pester & Recover,Inc. ,buys the discharged debt obligations.With respect to these debts,Pester&#10;A)can do nothing.&#10;B)can pressure Orly into paying them.&#10;C)must give Orly additional help to rebuild her life after the discharge.&#10;D)must report the debts to credit reporting agencies as &#34;discharged.&#34;

Accepted Answer

The answer of Orly's debts are discharged in a liquidation...

Question 8

Michigan and many other states have set limits on the amount of general noneconomic damages that can be awarded in tort cases.Noneconomic damages include damages for&#10;A)disfigurement.&#10;B)lost income.&#10;C)medical expenses.&#10;D)property damage.

Accepted Answer

Noneconomic damages specifically refer to damages that cannot be easily quantified, such as pain and suffering, emotional distress, and disfigurement. Therefore, the best choice is A, which specifically lists disfigurement as an example of noneconomic damages. Choices B, C, and D are incorrect because they are examples of economic damages, which can be more easily quantified and typically have no limit on the amount that can be awarded.

Question 9

Leticia contracts with Mariana to sell land that,unknown to either party,has groundwater contaminated from adjacent land that was occupied several decades earlier by a chemical manufacturing plant.When this is discovered,Leticia asserts the doctrine of commercial impracticability.This doctrine applies only when,with respect to an event that renders performance impossible,at the time the contract was formed the parties

A)could not have reasonably foreseen the supervening event.
B)could have reasonably foreseen the supervening event.
C)should have foreseen the supervening event,reasonable or not.
D)should not have foreseen any supervening events.

Accepted Answer

The doctrine of commercial impracticability applies only when, with respect to an event that renders performance impossible, at the time the contract was formed the parties could not have reasonably foreseen the supervening event. In this case, neither Leticia nor Mariana could have reasonably foreseen the groundwater contamination from the adjacent land that was occupied several decades earlier by a chemical manufacturing plant. Therefore, the doctrine of commercial impracticability would apply, and Leticia would be excused from performance.

Deck 32: The Uniform Commercial Code