True/False
Indicate whether the
statement is true or false.
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1.
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When one contracting party has a business in the
United States and the other has a
business in the United Kingdom, they need not be concerned with
procedural,
evidentiary, and substantive rule differences since both countries are common
law
countries.
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2.
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The majority of the countries in the European Union
are common law countries.
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3.
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Germany and France are civil law
countries.
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4.
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More countries have a common law rather than civil
law system.
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5.
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If a contract involves the international sale of
goods and the two contracting parties
have businesses in states that are contracting states, CISG
will apply to the transaction
even though the parties have stated in their contract that they have
opted out of CISG
and Article 2 of the UCC (New York’s version of Article 2 of the UCC) will
apply in the
event a dispute arises.
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6.
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The law of contract is generally a creation of
federal law.
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7.
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Generally speaking, there are 51 separate bodies of
contract law, one for each state and
one for the District of Columbia.
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8.
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Parties may include a choice of law provision in
their contract so the forum court may
need to apply the law of another state to the facts of the
dispute.
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9.
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The parties’ choice of law provision is
always enforceable.
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10.
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In a multistate transaction, if the contracting
parties do not select, at the time of
contracting, which state’s law will govern their
contractual rights and duties or if they
make an ineffective selection, the court of the forum
state will use the choice of law
rules of that state to determine which state’s laws apply
to the dispute.
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11.
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The forum state is the state where the contract was
formed.
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12.
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The forum state is the state where the contract is
to be performed.
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13.
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The forum state is the state where the lawsuit is
filed.
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14.
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Article 2 of the UCC deals with the sale of
goods.
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15.
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For some issues, federal contract law may preempt
state contract law, thus making
state contract law inoperative.
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16.
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The UCC must be adopted by a state’s highest
court for it to become the law of that
state.
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17.
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The UCC must be enacted by a state’s
legislature and signed by the governor for it to
become the law of that state.
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18.
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When the UCC becomes state law, it must be without
modification, otherwise the UCC
will not be uniform from state to state.
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19.
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The Restatement (Second) of Contracts must be
enacted by a state’s legislature and
signed by the governor for it to become the law of that
state.
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20.
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For a section of the Restatement (Second) of
Contracts to become law in a state, a court
in a judicial opinion must adopt the
section.
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21.
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Under the “party autonomy” rule, if the
contracting parties in a multistate transaction
select a state’s laws and incorporate that
state’s laws in their choice of law provision in
their contract, then the court in the forum
state will enforce this choice of law provision
unless:
(1) the chosen state has no substantial
relationship to the parties or the transaction; or
(2) the result obtained from the application of
the law of the chosen state would be
contract to the forum state’s public
policy.
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22.
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In a multistate transaction, if the parties do not
include a choice of law provision in
their contract, the choice of law rule specified by the forum
state will determine which
state’s law will govern the dispute.
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23.
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In a multistate transaction, if the parties do not
include a choice of law provision in
their contract, the forum state will apply the choice of law
rule of the Restatement
(Second) of Conflicts, a rule that applies the law of the state with the
most significant
contacts or relationship with the transaction.
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24.
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The UCC is federal law and must be followed by the
courts of all states.
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25.
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The contracting parties may opt out of Article 2 of
the UCC.
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26.
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The court in the forum state may apply the law of
one state to one issue and the law of
another state to another issue.
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27.
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Choice of law rules are uniform in all
states.
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28.
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Article 2 of the UCC regulates home solicitation
sales.
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29.
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When the legislature of a state has enacted a
statute addressing a specific issue, courts
of that state may not ignore the statute and create
common law rules on the subject.
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30.
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When the warranty sections of Article 2 of the UCC
and Magnuson-Moss conflict, the
UCC will apply.
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31.
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A choice of law question exists if the offer was
made in one state, the offer was accepted
in another state, and the contract was to be performed
in a third state.
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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32.
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How many countries are currently in the European
Union?
a. | 15 | b. | 20 | c. | 25 | d. | 27 | e. | more than
30 |
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33.
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How many countries in the European Union have a
common law system?
a. | 2 | b. | 4 | c. | 5 | d. | 6 | e. | more than
10 |
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34.
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The forum state is:
a. | the state where the parties entered into the
contract | b. | the state where the parties intend to perform the
contract | c. | the state where the lawsuit is
filed | d. | the state where the parties
reside | e. | the state where the plaintiff
resides |
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35.
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Under the “party autonomy” rule, if the
contracting parties select a state and incorporate it as
their choice of law provision in their
contract, then the court in the forum state will enforce this
choice of law provision
unless:
a. | the chosen state has no substantial relationship to the
parties | b. | the chosen state has no substantial relationship to the
transaction | c. | the result
obtained from the application of the law of the chosen state would be contrary to
the forum
state’s public policy | d. | the chosen state
does not have the most significant contacts or relationship with
the
transaction | e. | a, b, and c |
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36.
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In a multistate transaction, if the parties do not
include a choice of law provision in their contract
and the forum state decides to apply the
choice of law rule of the Restatement (Second) of
Conflicts, a rule that applies the law of the
state with the most significant contacts or
relationship with the transaction, the court will
consider the following contacts:
a. | the place of contracting | b. | the place where the contract was negotiated | c. | the place where the contract is to be performed | d. | the location of the subject matter of the contract | e. | the domicile, residence, nationality, place of incorporation, and place of
business of the
parties | f. | all of the
above |
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37.
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Which of the following transactions are within the
scope of Article 2 of the UCC?
a. | an employment contract | b. | a contract to sell natural gas (after it has been extracted from a
well) | c. | a contract to sell advertising time on the
radio | d. | a contract to sell a cow with her
calf | e. | b and d |
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38.
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Which of the following transactions are within the
scope of Article 2 of the UCC?
a. | A doctor implants a pacemaker and sends the patient a
bill itemizing the pacemaker and the
surgery. | b. | A technician X-rays a patient and presents an itemized bill for the
X-rays. | c. | An optometrist sells a patient a pair of glasses after
an examination. | d. | A farmer sells her
wheat crop to a grain elevator. | e. | all of the
above |
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