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978-1285860381 Chapter 1 Solution Manual Part 1
Suggested Additional Assignments Research Students should pick up an issue of any newspaper and find ten articles dealing with legal issues. The articles might refer to contract disputes, negligence suits, international trade agreements, statutory debates in Congress, environmental conflicts, employment […]
978-1285860381 Chapter 1 Solution Manual Part 2
Analyzing a Case Case: Kuehn v Pub Zone1, Facts: Maria Kerkoulas owned the Pub Zone bar, frequented by many motorcycle gangs, and knew from her own experience and conversations with police that some of the gangs, including the Pagans, were […]
978-1285860381 Chapter 10 Solution Manual Part 1
Suggested Additional Assignments Field Work: Cookies and Internet Functionality Have students block their web browsers from accepting cookies and record how it changes their online experience. (Since people usually find that blocking cookies substantially diminishes the quality of their Internet […]
978-1285860381 Chapter 11 Solution Manual Part 1
Suggested Additional Assignments Research: The Contracts around Us Students should locate and read one or more of the contracts they have entered into in the past year—an apartment lease, a university-housing residency agreement, a mobile phone service agreement, terms of […]
978-1285860381 Chapter 11 Solution Manual Part 2
Additional Case: Novak v. Credit Bureau Collection Service 1 Facts: David Novak suffered a brain aneurysm and was unconscious. An ambulance took him to Saint Regional Medical Center, where doctors successfully operated. Novak remained in the hospital for two months […]
978-1285860381 Chapter 12 Solution Manual Part 1
Suggested Additional Assignments Bob and Katrina: Let’s Make a Deal The chapter opens with a page of dialogue. Bob, a movie director, and Katrina, an actress, believe they have formed a contract—but what are its terms? Divide students into two […]
978-1285860381 Chapter 12 Solution Manual Part 2
Additional Case: Bayway Rening Co. v. Tosco Corp.1 Facts: Bayway Refining and Oxygenated Marketing and Trading A.G. (OMT) were both in the business of buying and selling petroleum products. Bayway agreed to sell OMT 60,000 barrels of gasoline, and OMT […]
978-1285860381 Chapter 13 Solution Manual Part 1
Suggested Additional Assignments Research: Binding Promise Using the library or the Internet, students should find a current article that raises a dispute about a promise. Typically, someone made a statement that another person or company relied on, but the speaker […]
978-1285860381 Chapter 13 Solution Manual Part 2
Employment Agreements A covenant not to compete is an agreement in which an employee promises not to work for a competitor for some time after leaving the company. It used to be that these covenants were rare and reserved for […]
978-1285860381 Chapter 14 Solution Manual Part 1
Suggested Additional Assignments Research: Exculpatory Clauses Students should find an exculpatory clause, perhaps on a parking lot claim check, check-room receipt, or sports admission ticket, and report in class precisely what conduct or events the clause covers, and whether, in […]
978-1285860381 Chapter 14 Solution Manual Part 2
You Be The Judge: Ransburg v Richards1 Facts: Barbara Richards leased an apartment at Twin Lakes, a complex owned by Lenna Ransburg. The written lease declared that: • Twin Lakes would “gratuitously” maintain the common areas. • Richards’ use of […]
978-1285860381 Chapter 15 Solution Manual Part 1
Suggested Additional Assignments Drafting Exercise: Distinguishing Puery and Misrepresentation Students should write one page of dialogue or prose describing a sales pitch made to a consumer. The seller should tread the fine line between puffery and misrepresentation, and the student […]
978-1285860381 Chapter 15 Solution Manual Part 2
Landmark Case Sherwood v. Walker 66 Mich. 568 Supreme Court of Michigan, 1887 Facts: Rose 2d of Aberlone was a gentle, 1,420 lb. cow that lived in Michigan in 1886. Rose’s owner, Hiram Walker & Sons, was a cattle breeder […]
978-1285860381 Chapter 16 Solution Manual Part 1
Suggested Additional Assignments Get it in Writing, and Then Read It A side benefit of the statute of frauds is that the parties end up with a written record of the agreement they made. However, the value of this memorial […]
978-1285860381 Chapter 16 Solution Manual Part 2
The UCC’s Statute of Frauds The UCC requires a writing for the sale of goods priced $500 or more. The Code’s requirements are easier to meet than those of the common law. UCC §2-201, the statute of frauds section, has […]
978-1285860381 Chapter 17 Solution Manual Part 1
Suggested Additional Assignments Drafting Exercise: Avoiding Third-Party Claims This hypothetical is based on a real suit between sports fans from the University of Wisconsin and the University of California at Los Angeles (UCLA). The students represent UCLA. This year’s UCLA […]
978-1285860381 Chapter 17 Solution Manual Part 2
You Be the Judge: Wells Fargo Bank Minn. v BrooksAmerica Mortgage Corp. 1 Facts: Michael Brooks desperately needed financing for his company, BrooksAmerica, so he agreed to a sale-leaseback agreement with Terminal Marketing Co. Terminal would pay BrooksAmerica $250,000, and […]
978-1285860381 Chapter 18 Solution Manual Part 1
Suggested Additional Assignments Drafting Exercise: Substantial Performance Scenarios Divide students into three groups. Have one group brainstorm a relatively simple residential construction project, such as building a deck, installing an in-ground pool, or adding an addition containing a family room. […]
978-1285860381 Chapter 18 Solution Manual Part 2
Impossibility If performing a contract was truly impossible, a court will discharge the agreement. But if honoring the deal merely imposed a financial burden, the law will generally enforce the contract. True Impossibility These cases are easy—and rare. True impossibility […]
978-1285860381 Chapter 19 Solution Manual Part 1
Suggested Additional Assignments Research: Professional Sports and Contract Law Students should find news articles dealing with contract disputes between professional athletes and their teams. What are the facts of the dispute? What legal issues do the disputes raise? What remedies […]
978-1285860381 Chapter 19 Solution Manual Part 2
Additional Case: Hyler v. Garner 1 Facts: Jim and Bonnie Hyler enjoyed traveling about the country with a camping trailer that they pulled behind their car. Jim sustained a back injury that left his right leg numb and he was […]
978-1285860381 Chapter 2 Solution Manual Part 1
Suggested Additional Assignments Research Ask students to bring to class a newspaper, magazine, or internet article that raises ethical issues regarding a US company doing business overseas. They should be prepared to identify the ethical issues and discuss them using […]
978-1285860381 Chapter 2 Solution Manual Part 2
Multiple Choice Questions 1. Milton Friedman was a strong believer in the _____________ model. He _______________ argue that a corporate leader’s sole obligation is to make money for the company’s owners. (a) shareholder; did (b) shareholder; did not (c) stakeholder; […]
978-1285860381 Chapter 20 Solution Manual Part 1
Suggested Additional Assignments Research: Lawyers and Public Opinion Students should conduct an informal survey of friends and associates to gather ideas on public perception of lawyers. They should categorize the comments and evaluate what types of people have a negative […]
978-1285860381 Chapter 20 Solution Manual Part 2
Reciprocal Promises and Conditions A contract may provide a list of what each party promises to do. In this format, each party is responsible for performance whether or not the other party breaches. These provisions are reciprocal promises, which means […]
978-1285860381 Chapter 21 Solution Manual Part 1
Suggested Additional Assignments Good Faith Students should write a short description of realistic commercial behavior that skirts the border between lawful, aggressive business dealing and bad faith. Students should know in their own mind whether or not the behavior is […]
978-1285860381 Chapter 21 Solution Manual Part 2
Case: Mathis v. Exxon Corporation1 Facts: Exxon marketed gasoline to retailers in three ways. Franchisees (who owned local gas stations) were required to purchase a minimum number of gallons per month at the dealer tank wagon price (DTW) set by […]
978-1285860381 Chapter 22 Solution Manual Part 1
Suggested Additional Assignments Research and Drafting Exercise: Warranties Ask students to find a sales slip with a warranty on it, read the warranty, and then rewrite the warranty in plain English. Explain exactly what the company will pay for and […]
978-1285860381 Chapter 22 Solution Manual Part 2
Implied Warranties Implied Warranty of Merchantability “Merchantability” is a concept most non-lawyers are not familiar with. It means that goods are fit for their normal purposes. Case: Goodman v. Wenco Foods, Inc.1 Facts: Fred Goodman bit into a Wendy’s hamburger […]
978-1285860381 Chapter 23 Solution Manual Part 1
Suggested Additional Assignments Drafting and Role Play: Contract Warranties and Remedies The students will negotiate and draft a computer contract. Half of the students will represent Profit & Densom, a firm of 10 accountants. The others will represent Ibex, a […]
978-1285860381 Chapter 23 Solution Manual Part 2
Buyer’s Remedies If a seller fails to deliver goods, repudiates, or if the buyer rightfully rejects the goods, the buyer is entitled to cancel the contract. She may also recover money paid to the seller, assuming she has not received […]
978-1285860381 Chapter 24 Solution Manual Part 1
Suggested Additional Assignments Ethics Problem: To Seize or Not to Seize To the Students: You are the manager of a small bank in the western United States. Your bank loaned $75,000 to a young farmer to help him purchase a […]
978-1285860381 Chapter 24 Solution Manual Part 2
Case: In ReRoser1 Facts: Robert Roser obtained a loan from Sovereign Bank which he promptly used to buy a car. Nineteen days later, Sovereign filed a lien with the state of Colorado. The bank expected that, with a perfected interest, […]
978-1285860381 Chapter 25 Solution Manual Part 1
Suggested Additional Assignments Writing Exercise Ask students to write their own mystery story modeled on the vignette that opens the chapter. This exercise will help them consolidate their grasp of the material in the chapter. In class, ask them to […]
978-1285860381 Chapter 25 Solution Manual Part 2
Shelter Rule Under the shelter rule, the transferor of an instrument passes on all of his rights. When a holder in due course transfers an instrument, the recipient acquires all the same rights even if he is not a holder […]
978-1285860381 Chapter 26 Solution Manual Part 1
Suggested Additional Assignments Research: Literary References Ask students to look at the pictures of the checks on pp. 620 and 622 and answer these questions: Who are Charles Bingley and Jane Bennet (p. 620) and Frederick Wentworth and Anne Elliot […]
978-1285860381 Chapter 26 Solution Manual Part 2
Negligence You Be the Judge: Gulf States Section, PGA, Inc. v. Whitney National Bank of New Orleans1 Facts: Adrenetti Collins was a secretary who worked in the PGA office. During a four-month period, she forged 18 PGA checks totaling $22,699.81. […]
978-1285860381 Chapter 27 Solution Manual Part 1
Suggested Additional Assignments Interview Ask students to interview a certified public accountant who audits companies (as opposed to one who specializes in taxation). Students should ask the following: Is the accountant concerned about increased liability? Has she made any changes […]
978-1285860381 Chapter 27 Solution Manual Part 2
Fraud Primary Liability. Most securities litigation against accountants is brought under §10(b) and Rule 10b-5 of the 1934 Act. Under §10(b), an auditor is liable for making (1) a misstatement or omission of a material fact (2) knowingly or recklessly […]
978-1285860381 Chapter 28 Solution Manual Part 1
Suggested Additional Assignments Personal Experiences: Agency Ask students to prepare a list of five instances in which they have acted as an agent for someone else, or someone else has acted as an agent for them. Sports Agents For many […]
978-1285860381 Chapter 28 Solution Manual Part 2
Other Duties of an Agent Duty to Obey Instructions An agent must obey her principal’s instructions unless the principal directs her to behave illegally or unethically. Duty of Care An agent has a duty to act with reasonable care. In […]
978-1285860381 Chapter 28 Solution Manual Part 3
Principal’s Liability for Torts An employer is liable for a tort committed by its employee acting within the scope of employment or acting with apparent authority. Respondeat Superior A master is liable for physical harm caused by the negligent conduct […]
978-1285860381 Chapter 29 Solution Manual Part 1
Suggested Additional Assignments Research: Sexual Harassment Policies Ask students who are employed to find their company’s sexual harassment policy. What type of behavior does it prohibit? What are the procedures for complaining about harassment? Do they think it is comprehensive? […]
978-1285860381 Chapter 29 Solution Manual Part 2
Case: Teresa Harris v. Forklift Systems, Inc.1 Facts: Charles Hardy, president of Forklift Systems, frequently made inappropriate sexual comments to Teresa Harris and other women at the company. He said to Harris, “You’re a woman, what do you know?” and […]
978-1285860381 Chapter 3 Solution Manual Part 1
Suggested Additional Assignments Interview: An Importer Students should locate a local businessperson who imports goods or sells imported goods. Why does she choose to deal in imported goods? What advantages do the goods give her over domestic goods? What problems […]
978-1285860381 Chapter 3 Solution Manual Part 2
Case: Forestal Guarani S.A. v. Daros International, Inc.1 Facts: Forestal Guarani S.A., in Argentina, entered into an oral agreement to sell wooden finger-joints to Daros International, Inc. in New Jersey.2 Forestal sent Daros the products but Daros declined to pay […]
978-1285860381 Chapter 30 Solution Manual Part 1
Suggested Additional Assignments Research: Sexual Harassment Policies Ask students who are employed to find their company’s sexual harassment policy. What type of behavior does it prohibit? What are the procedures for complaining about harassment? Do they think it is comprehensive? […]
978-1285860381 Chapter 30 Solution Manual Part 2
Case: Reid v. Google, Inc.1 Facts: Google’s vice-president of engineering, Wayne Rosing (aged 55), hired Brian Reid (52) as director of operations and director of engineering. At the time, the top executives at Google were CEO Eric Schmidt (47), vice-president […]
978-1285860381 Chapter 31 Solution Manual Part 1
Suggested Additional Assignments Interview: Entrepreneur Student could interview an entrepreneur to ask why he or she chose a particular form of business. Did the entrepreneurs understand the legal issues involved? Did they simply rely on lawyers in making their selections? […]
978-1285860381 Chapter 31 Solution Manual Part 2
General Partnerships Few people now affirmatively elect to form a partnership because so many other options are available. Even professionals such as lawyers and accountants now have other choices. As we will see in the next chapter, many partnerships are […]
978-1285860381 Chapter 32 Solution Manual Part 1
Suggested Additional Assignments Research: Partnership Registrations The Uniform Partnership Act (UPA) permits partnerships to file a statement with the local Secretary of State containing basic information about the partnership. Assign each student a different state and ask him or her […]
978-1285860381 Chapter 32 Solution Manual Part 2
Additional Case: Hooper v. Hooper Facts: Charles Hooper owned Lako, a scrap metal business, and invited his brother William to join him as partner. They were each entitled to 50 percent of the profits of the partnership, but they agreed […]
978-1285860381 Chapter 33 Solution Manual Part 1
Suggested Additional Assignments Field Work: Selecting a State of Incorporation Ask students to call two or three businesses—at least one large and one small– to find out where they are incorporated. If students actually talk to someone who has started […]
978-1285860381 Chapter 33 Solution Manual Part 2
After Incorporation Research: Approval by Written Consent Instead of holding a meeting to approve a decision, directors and shareholders can simply sign a written consent. Question: If students completed this research project, ask them now what they found out about […]
978-1285860381 Chapter 34 Solution Manual Part 1
Suggested Additional Assignments Research: State Anti-Takeover Provisions Have students research whether their state corporation code has any provisions designed to protect local companies from takeovers. Research: Wallace Computer Services, Inc. Research the attempted takeover of Wallace Computer Services, Inc. by […]
978-1285860381 Chapter 34 Solution Manual Part 2
More Conflict: Takeovers There are three ways to acquire control of a company: • Buy the company’s assets. • Merge with the company. • Buy stock from the shareholders. Takeovers: The Business Judgment Rule Corporate management has great freedom to […]
978-1285860381 Chapter 35 Solution Manual Part 1
Suggested Additional Assignments Research: Boards of Directors Ask students to choose a publicly traded company that makes something they own. Then have them look up the company’s annual report on the SEC Web site (http://www.sec.gov). They can also find out […]
978-1285860381 Chapter 35 Solution Manual Part 2
Additional Case: Michael L. Retzer v. Nancy B. Retzer1 Facts: Mr. Retzer worked long hours to acquire five McDonald’s franchises. He owned 1,610 shares of stock in the close corporation that owned the franchises; his wife had 1,600 shares. Mrs. […]
978-1285860381 Chapter 36 Solution Manual Part 1
Suggested Additional Assignments Research: Exempt Property Under the Code, individual debtors are permitted to keep certain exempt property. However, the Code allows state law to establish the amount and type of this exempt property. Ask students to determine your state’s […]
978-1285860381 Chapter 36 Solution Manual Part 2
Additional Case: In re: John & Julie Homan1 Facts: The Hoffmans filed Chapter 7 bankruptcy. Among their debts was a loan for $11,500 secured by their 1999 Dodge Caravan. The car was worth less than half the amount of the […]
978-1285860381 Chapter 37 Solution Manual Part 1
Suggested Additional Assignments Research: Direct Public Offerings The Web site http://www.dfdpo.com is a useful source of information about direct public offerings. Ask students to think of a business idea that would pass the “Screen Test” at this site. Research: IPOs […]
978-1285860381 Chapter 37 Solution Manual Part 2
You Be The Judge: In re HP Secs. Litig. Facts: Shortly after Léo Apotheker became CEO of HP, he decided to acquire Autonomy Corporation at a cost of over $11 billion. His decision met with strong resistance from HP executives, […]
978-1285860381 Chapter 38 Solution Manual Part 1
Suggested Additional Assignments Field Work: Setting Prices If students have jobs, ask them to interview someone in their company who has responsibility for setting prices. Several years ago, one of Beatty and Samuelson’s students told the class that she was […]
978-1285860381 Chapter 38 Solution Manual Part 2
Additional Case: Camarda v. Snapple Distributors, Inc.5 Facts: Snapple Beverage Corporation distributed its products through Snapple Distributors, Inc. (SDI) which in turn sold to local area distributors (LADs). These LADs were only allowed to resell Snapple to small retail outlets […]
978-1285860381 Chapter 39 Solution Manual Part 1
Suggested Additional Assignments Research: Unfair or Deceptive Advertising Ask students to bring to class an ad that they think is deceptive or unfair. They could either clip an ad from a newspaper or magazine, or record one from television. Research: […]
978-1285860381 Chapter 39 Solution Manual Part 2
Credit Reports Accuracy of Credit Reports A number of statutes, including the Fair Credit Reporting Act (FCRA), the Fair and Accurate Credit Transactions Act (FACTA) and Dodd-Frank regulate credit reports. A consumer report is any communication about a consumer’s creditworthiness, […]
978-1285860381 Chapter 4 Solution Manual Part 1
Suggested Assignments Evolution of the Common Law Ask students to summarize the common law principles of the bystander cases in the text and then create their own bystander examples. First, students should write a two- or three-sentence summary of the […]
978-1285860381 Chapter 4 Solution Manual Part 2
Case: United States v. Biswell1 Facts: Biswell operated a pawn shop and had a license to sell “sporting weapons”. Treasury agents demanded to inspect Biswell’s locked storeroom. The officials claimed that, the Gun Control Act of 1968 gave them the […]
978-1285860381 Chapter 40 Solution Manual Part 1
Suggested Additional Assignments Research: Superfund Sites Divide students into groups and ask them to contact the EPA to determine if there are any Superfund sites in a designated state. If there are, ask students to discover: How the site was […]
978-1285860381 Chapter 40 Solution Manual Part 2
Chemicals More than 85,000 chemicals are used in food, drugs, cosmetics, pesticides, and other products. Up to 3,000 new chemicals are introduced each year. Although consumers may think that these products have been safety tested, that is true for only […]
978-1285860381 Chapter 41 Solution Manual Part 1
Suggested Additional Assignments Research: Patents Ask students to search the Patent and Trademark Office (PTO) database to locate two patented inventions, one worthwhile and one frivolous. Students should prepare a brief description of each item and explain why it is […]
978-1285860381 Chapter 41 Solution Manual Part 2
More facts When the owners of the Pretty Woman copyright sued 2 Live Crew, the group’s first inclination was to withdraw the parody. The Capitol Steps, however, wanted the courts to establish once and for all that parody is a […]
978-1285860381 Chapter 42 Solution Manual Part 1
Suggested Additional Assignments Drafting Exercise: Deeds Have students draft one deed that conveys a realistic fee simple defeasible in a valuable parcel of property, and another deed that conveys a life estate and a remainder. Research: Zoning Students should use […]
978-1285860381 Chapter 42 Solution Manual Part 2
Additional Case: Harris V. Soley1 Facts: The tenants (probably students) moved into an apartment that had been condemned and, contrary to the landlord’s promises, not fixed up. There were mice, roaches, terrible odors, roof leaks, no heat, broken toilets and […]
978-1285860381 Chapter 43 Solution Manual Part 1
Suggested Additional Assignments Research: Gifts Students should find the website of a nonprofit organization that solicits gifts, such as the World Wildlife Foundation at http://worldwildlife.org/how_to_help. In a one-page paper, students should summarize the many different ways to donate to the […]
978-1285860381 Chapter 43 Solution Manual Part 2
Additional Case: Mitchell v. Bank of America National Association1 Facts: Donna and Timothy Mitchell rented a safe deposit box from a Dallas branch of the Bank of America. The lease agreement stated that the bank “had no possession or custody […]
978-1285860381 Chapter 44 Solution Manual Part 1
Suggested Additional Assignments Research: Intestacy Ask students to look up the intestacy laws in their state. Where would their assets go if they had a spouse and children? Had a spouse but no children? Had children but no spouse? Were […]
978-1285860381 Chapter 44 Solution Manual Part 2
Introduction to Insurance The beneficiary, the insured, and the owner can be, but are not necessarily, the same person. Insurance Contract An insurance policy must meet all of the common law requirements for a contract. Insurable Interest An insurance contract […]
978-1285860381 Chapter 5 Solution Manual Part 1
Suggested Assignments Interview: Civil Rights Students should interview three people to determine their views about two issues: flag burning and boy-girl wrestling. One person should be over 50 years old, one person should have been born and raised in a […]
978-1285860381 Chapter 5 Solution Manual Part 2
Case: Texas v. Johnson1 Facts: In 1984, outside the Republican National Convention in Dallas, Gregory Johnson participated in a protest against policies of the Reagan administration. Participants gave speeches and handed out leaflets. Johnson burned an American flag. He was […]
978-1285860381 Chapter 6 Solution Manual Part 1
Suggested Additional Assignments Research: Class Actions Students should find a current article on a pending class action against a large pharmaceutical, tobacco, automobile, or other company. Students should answer these questions: 1. What is a class action? 2. How long […]
978-1285860381 Chapter 6 Solution Manual Part 2
Trial Adversary System Our system of justice assumes that the best way to bring out the truth is for both sides to “go at” the various witnesses, enabling a neutral factfinder (judge or jury) to detect the truth. A full […]
978-1285860381 Chapter 7 Solution Manual Part 1
Suggested Additional Assignments Research: Corporate Crime Students should find a newspaper or magazine article involving crime committed by a business or corporate executive. What are the economic costs of the (alleged) crime? What penalties can the state impose for the […]
978-1285860381 Chapter 7 Solution Manual Part 2
Crimes That Harm Business (And Their Customers) Businesses must deal with four major crimes: larceny, fraud, arson, and embezzlement. Larceny is the trespassory taking of personal property with the intent to steal. Fraud refers to a variety of crimes, all […]
978-1285860381 Chapter 8 Solution Manual Part 1
Suggested Additional Assignments Research: Criticism by the Press Ask students to find a newspaper article, editorial, or column that harshly criticizes someone. Has the author or publisher made efforts to avoid a claim of libel? How? Research: On Line Defamation […]
978-1285860381 Chapter 8 Solution Manual Part 2
You Be the Judge: Boeken v Philip Morris Incorporated1 Facts: In the mid-1950s, Richard Boeken began smoking Marlboro cigarettes at the age of 10. Countless advertisements, targeted at boys aged 10 to 18, convinced him and his friends that the […]
978-1285860381 Chapter 9 Solution Manual Part 1
Suggested Additional Assignments Field Work: An Accident Waiting to Happen Ask students to find a negligence suit waiting to happen and report their findings during class. They should try to spot some careless maintenance, unsafe condition, or other unreasonable behavior […]
978-1285860381 Chapter 9 Solution Manual Part 2
Case: Truong v. Nguyen1 Facts: On a warm California day, there were about 30 personal watercraft (jet skis) operating on Coyote Lake. The weather was fair and visibility good. Anthony Nguyen and Rachael Truong went for a ride on Anthony’s […]
BLAW 13553
Erica’s supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room. a. True b. False An assignment is valid from the moment it is made, regardless of whether […]
BLAW 17946
Ambiguities in contracts are always interpreted in favor of the side that wrote the contract, since they are the ones who know what the provision is supposed to mean. a. True b. False Which of the following are remedies available […]
BLAW 25773
If the court awards a partition to co-tenants, the court will normally attempt a partition by kind. If partition by kind is impossible because there is no fair way to divide the property, the court will order the real estate […]
BLAW 31139
Under the Endangered Species Act, what federal agency in the Department of the Interior is responsible for preparing a list of species that are in danger of becoming extinct? a. National Park Service b. Fish and Wildlife Service c. Bureau […]
BLAW 31320
Zach decided to incorporate his business under the name of “Zamm.” In addition to “Zamm,” the Model Act requires that Zach include one of the following words: “corporation,” “incorporated,” “limited,” or “company” or an abbreviation thereof. a. True b. False […]
BLAW 40441
Which of the following statements is correct regarding the differences between contract, tort, and criminal law? a. Tort and criminal law both impose a punishment for the defendant including prison and/or a fine. b. Criminal law imposes duties of conduct […]
BLAW 43939
MegaCorp is incorporated under Delaware law. It is registered to do business in New York. Legally, in New York MegaCorp is known as what kind of corporation? a. Domestic b. Foreign c. Secondary d. Cumulative Generally, a joint venture is […]
BLAW 45288
Buddy was hired to play drums for a rock group scheduled to tour the Midwest. Part way through the tour, Buddy was tragically killed in a plane crash. The tour had to be discontinued until a new drummer could be […]
BLAW 46902
At her neighbor’s garage sale, Constance buys a vanity dressing table from her neighbor, Carlos, for $160. Constance purchased the vanity table for her own personal use, without any knowledge that Carlos had signed a security agreement giving All Purpose […]
BLAW 56764
Which of the following statements regarding a negligence case is correct? a. A plaintiff must show that the defendant’s act was both the factual cause of her injury as well as a foreseeable injury. b. A plaintiff must show that […]
BLAW 60021
When a debtor no longer has an obligation to pay a debt, that debt has been a. terminated. b. revoked. c. completed. d. discharged. The Electronic Communications Privacy Act of 1986 is a federal statute that regulates email. a. True […]
BLAW 80664
RayCorp offers to buy out MegaCorp by paying $69 per share. LandCo, who also wants to buy MegaCorp, offers to pay $75 per share. When the bidding process is finally over, RayCorp has offered $85 per share and LandCo has […]
BLAW 87928
Which of the following statements best exemplifies how society as a whole benefits from ethical behavior? a. Consumers are willing to pay more for a product they believe to be ethically produced. b. People feel better when they behave ethically. […]
BLAW 87932
The Foreign Sovereign Immunities Act (FSIA) provides that American courts generally cannot hear suits against foreign governments. Describe the three possible exceptions to this rule. Jolene hired Lacy to find a buyer for her house. Adam was interested in buying […]
BLAW 97045
In a derivative lawsuit, any proceeds awarded by the court must be paid to the corporation, not the shareholders themselves. a. True b. False Which of the following is TRUE in cases based on claims of disparate treatment? a. The […]
BUS LAW 17657
Jorgeson Co., on its website, promised the company would not give a customer’s personal information to third parties without the customers consent, but then gave out such information anyway. This practice violates Section 5 of the FTC Act. a. True […]
BUS LAW 26667
Veritas, Inc. is planning its annual shareholder meeting on June 15. The company a. need not send notices of the meeting to shareholders since it is the regularly scheduled, annual meeting, which Veritas always holds on the third Thursday of […]
BUS LAW 43682
If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales business, a. the contract may indicate a method for determining the price, without stating a definite price. b. […]
BUS LAW 52212
Pat’s Pen Co. manufacturers and sells an inexpensive ball-point pen. Salley’s Stationery purchases the pens for $.25 each in quantities of 1,000. Salley’s discovered that a national chain, a competitor of Salley’s, buys the pen at $.20 for 1,000. If […]
BUS LAW 58602
Which of the following is/are generally subject to a standard of strict liability for bailed goods? a. contract carriers and common carriers b. common carriers and innkeepers c. common carriers d. contract carriers TriColor, Inc. is doing business in Minnesota, […]
BUS LAW 59692
Under the Fair Debt Collection Practices Act, a collection company is legally permitted to a. call the debtor at any time of the day. b. call acquaintances of the debtor to tell them that the consumer is in debt. c. […]
BUS LAW 74857
Which of the following persons is NOT an agent? a. Diane, a shoe salesperson for a retail store. b. Tim, a real estate broker for a large real estate company. c. Craig, a telephone marketing employee. d. Harold, a trustee […]
BUS LAW 76263
Ethics is the study of how people should act. a. True b. False Reva prepares and signs a document that she intends to be her will. If she has not followed the legal technicalities of her state regarding executing a […]
BUS LAW 77722
Future interests in land a. are presently existing nonpossessory rights that may or may not develop later. b. are possessory interests because they permit the holder to take possession at some point. c. must create a right to, not merely […]
BUS LAW 80544
The statement, “You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May does not create a condition because it does not include the phrase “provided that. a. True b. […]
BUS LAW 80897
Research indicates that consumers are willing to pay more for a product that they believe to be ethically produced. a. True b. False What is the key to all conditional clauses? a. If a condition in a contract does not […]
BUS LAW 85491
In Jones v. Clinton, the court held that a. Paula Jones did not demonstrate the essential elements for her claim. b. Paula Jones was entitled to a summary judgment. c. the case be dismissed because of the Presidents governmental position. […]
BUS LAW 85901
Lance indorses a promissory note to Connie in exchange for consideration. Unknown to Lance, the note is not good because the maker’s signature was forged. Connie later attempts to present the instrument for payment to the original alleged maker, Lilly, […]
BUS LAW 87019
Which of the following are generally considered to be legal offers? a. placing an item up for auction b. catalog advertisements c. price lists d. a note scribbled on a restaurant napkin that includes the details of the offer Nevada […]
BUS LAW 89249
According to Michael Porter, a company should not undertake a corporate social responsibility project unless a. it is profitable for the company in its own right. b. it improves the company’s reputation. c. it truly makes a difference in the […]
BUS LAW 99614
Harriett raises and sells hippos. In order to keep her hippos happy and healthy, she feeds them Hippo Chow, which she buys from the local pet store. Under the UCC, Harriett is a. a merchant of both hippos and Hippo […]
Business Law 17489
Jim was a mechanic. One day when he attempted to weld a car’s gasoline tank, it exploded and he was hurt. He filed to collect workers’ compensation. His employer resisted on grounds that Jim had been negligent and had also […]
Business Law 18349
In order to constitute as a gift, a. the donor must intend to transfer ownership of property within his or her lifetime. b. the donee need not actually accept the gift. c. the donor must deliver the gift property to […]
Business Law 20753
Creditors of Northern Hydraulics file an involuntary bankruptcy petition against the company and the petition is approved. What is true of Northern Hydraulics? a. Northern Hydraulics has at least $10,425 in debts. b. There are at least 12 creditors. c. […]
Business Law 25325
Under the Americans with Disabilities Act, a person with a disabling illness a. is not considered disabled once the illness is being managed with medicines. b. is not considered disabled unless there is no known cure. c. is considered disabled, […]
Business Law 31587
Shoe Sunshine, Inc. filed for bankruptcy protection under Chapter 11 and submitted a plan of reorganization within 120 days after filing for relief. Two of the classes of creditors voted against the plan. However, the bankruptcy judge considered the plan […]
Business Law 38719
Res ipsa loquitur shifts the burden of proof from the plaintiff to the defendant. a. True b. False One of the accountant’s most important roles is to serve as an independent evaluator of the financial statements issued by management to […]
Business Law 44123
If a buyer does not receive goods by the contract deadline, remedies available include all of the following EXCEPT a. incidental and consequential damages. b. cover. c. damages for non-delivery. d. cure. Chapter 13 bankruptcy a. is used by businesses […]
Business Law 51892
When measured in dollars, street crime costs society more than twice as much as white-collar crime. a. True b. False Charlene Brown has possession of a check made out to the order of Charlene Brown (herself) which she received in […]
Business Law 52340
Bry, Inc. and Gangl Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract. Bry delivered the sweaters and Gangl accepted and paid for them. Since the contract is fully […]
Business Law 58293
The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, EPA should use a. a stare decisis. b. a de novo. […]
Business Law 64943
Which of the following opinions indicates that the company’s financial statements fairly present its financial condition according to GAAP? a. Qualified opinion b. Adverse opinion c. Disclaimer of opinion d. Unqualified opinion Commercial paper is a contract to pay money. […]
Business Law 74914
Dr. Gavornne advises his very ill patients to prepare a living will. The purpose of a living will is to a. make a disposition of property. b. express a desire not to have extreme medical treatment that would prolong their […]
Business Law 79206
A buyer’s material breach gives the seller the right to refuse to deliver the goods. a. True b. False “Scriveners error is another (fancier) name for a typo. a. True b. False Answer: True The “tipper” of inside information can […]
Business Law 88928
Mike is planning on incorporating his business in the state of Delaware. Which of the following regarding the name of Mike’s business is TRUE? a. He will be able to use the words “Association” or “Institute” in his company name. […]
Business Law 94080
Which person argued that a corporate manager’s primary responsibility is to the shareholders of the organization and that managers should make the company as profitable as possible while also complying with the law? a. John Rawls b. John Stuart Mill […]
Chapter 1 Congress passed a law imposing penalties for displaying
1. Congress passed a law imposing penalties for displaying “indecent” material online where children could see it. If the U.S. Supreme Court subsequently rules that the statute conflicts with the First Amendment of the U.S. Constitution, the statute is void. […]
Chapter 10 Chaney V Fayette
Case: Chelsea Chaney v. Fayette County Public School District1 Facts: Chelsea Chaney was a seventeen-year-old high school student in Fayette County, Georgia. At a county-wide Internet safety seminar, Curtis Cearley, the District’s technology director, presented a PowerPoint slideshow to illustrate […]
Chapter 10 The Internet was started in the 1960s as a project
1. The Internet was started in the 1960s as a project to link military contractors and universities. The World Wide Web was created as a subnetwork of the Internet. a. True b. False 2. Spam is illegal per se. a. […]
Chapter 11 One purpose of contract law is to determine which
1. One purpose of contract law is to determine which agreements are worthy of legal enforcement. a. True b. False 2. Some of the elements of a contract are acceptance, consideration, legality, and capacity. a. True b. False ANSWER: True […]
Chapter 12 Vivian Will Get The Lamp c Generally The
1. When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it “for less than $2,000.” Olga replies, “I accept,” and hands him $2,000. A contract exists. a. True b. False […]
Chapter 13 Courts distinguish between mere gifts between parties
1. Courts distinguish between mere gifts between parties and legally binding commitments by the element of consideration. a. True b. False 2. The two basic elements of consideration are intention and agreement. a. True b. False ANSWER: False POINTS: 1 […]
Chapter 14 A contract may violate public policy even if the agreement
1. A contract may violate public policy even if the agreement does not violate a statute. a. True b. False 2. According to section 2-302 of the UCC, if a court finds as a matter of law that a clause […]
Chapter 15 The Defendant Made The Statement
1. Spencer, age 18 and of sound mind, has the legal capacity to contract. a. True b. False 2. Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn’t know what he was […]
Chapter 16 Yes This Personal Satisfaction Contract And Alfred
1. Hannah orally agrees to sell her house to Brett for $175,000. If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay, most courts will not enforce the contract since […]
Chapter 17 Computer City Installment Loan Contract The Sales contract
1. An assignment is valid from the moment it is made, regardless of whether the assignor notifies the obligor. a. True b. False 2. A party may make either an assignment or a delegation, but cannot make both an assignment […]
Chapter 18 Alice signs a contract with Bob to buy Bob’s house
1. Alice signs a contract with Bob to buy Bob’s house for $150,000, with the clause, “if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years.” Assume that Alice […]
Chapter 19 Bob Has Put 10000 Worth Materials Into
1. Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers. a. True b. False 2. Expectation interest can best be described as money spent in reliance upon the agreement. a. True b. […]
Chapter 2 Ethics is the study of how people should act
1. Ethics is the study of how people should act. a. True b. False 2. Life Principles are set by your parents and do not change over time. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy KEYWORDS: Bloom’s: […]
Chapter 20 Miami Dolphins Later Claims That He was Also
1. If you have an established relationship with a buyer, you can sell small tracts of land without a written contract. a. True b. False 2. In business law, a lawyer’s primary job is to represent the client in contract […]
Chapter 21 The UCC is federal legislation enacted by Congress
1. Under the UCC, a modification to a contract for the sale of goods needs no consideration to be binding. a. True b. False 2. The UCC does not apply to a contract for the sale of goods if the […]
Chapter 22 Only one party can have an interest in particular goods
True / False 1. Only one party can have an interest in particular goods at a particular time. a. True b. False 2. The UCC looks solely upon “title” to determine ownership in goods. a. True b. False ANSWER: False […]
Chapter 23 A buyer has an absolute right to reject non-conforming
1. A buyer has an absolute right to reject non-conforming goods as long as the rejection is timely. a. True b. False 2. The term tender means to physically deliver the goods to the buyer. a. True b. False ANSWER: […]
Chapter 24 Great State Bank Already Had A security Interest
1. Pharm-Ace holds a patent on a drug. Pharm-Ace used the patent (evidenced by the patent certificate) to secure a $1 million loan from First Bank. The patent is chattel paper. a. True b. False 2. Article 9 of the […]
Chapter 25 Charlene Brown has possession of a check made out to the order
1. There are two types of commercial paper: express and implied. a. True b. False 2. Commercial paper is a contract to pay money. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy KEYWORDS: Bloom’s: Knowledge 3. A possessor […]
Chapter 26 Warranty liability is the liability of someone who gives
1. Warranty liability is the liability of someone who gives payment on a negotiable instrument. a. True b. False 2. Negotiable instruments are normally issued to fulfill a contract. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy KEYWORDS: […]
Chapter 27 One of the accountant’s most important roles is to serve
1. One of the accountant’s most important roles is to serve as an independent evaluator of the financial statements issued by management to investors and creditors. a. True b. False 2. To verify transactions, accountants use two mirror-image processes: vouching […]
Chapter 28 Jolene hired Lacy to find a buyer for her house
1. Larry decided to relocate to Germany. Larry hired Happy Homes, Inc. to find a buyer and contract for the sale of his house in the U.S. The agency relationship between Larry and Happy Homes must be evidenced with a […]
Chapter 29 During the hiring interview, Supervisor Staci told Henry
True / False 1. During the hiring interview, Supervisor Staci told Henry that as long as he did his job as requested, he would have a job until he retired. Courts have been willing to enforce such an oral promise […]
Chapter 3 The law governing the acquisition of territory
1. The law governing the acquisition of territory and the settlement of disputes among nations is public international law. a. True b. False 2. Private international law sets out the basic rules of human rights and laws defining the treatment […]
Chapter 30 Heather applied for a promotion, but her manager promoted
1. Heather applied for a promotion, but her manager promoted a co-worker because the manager knew Heather was seven months pregnant. The manager did not want to promote someone who would probably be taking time off of work for childbirth […]
Chapter 31 Harold Lawyer Handles All The Legal Matters
1. If partners wish to maintain having protection against personal liability, it is essential to comply with all the technicalities of a limited liability partnership statute. a. True b. False 2. Corporations have perpetual existence. a. True b. False ANSWER: […]
Chapter 32 Lori Claims Dan Not Entitled Anything Other
1. Nicholas and Holly are partners in a toymaking shop. If Rudolph obtains a judgment against Nicholas for injuring Rudolph while Nicholas was on partnership business, Rudolph must try to collect from the partnership before going after Nicholas’ personal assets. […]
Chapter 33 If a party enters into a contract believing in good
1. If a party enters into a contract believing in good faith that the corporation exists, he cannot later take advantage of the fact that it does not. a. True b. False 2. A de jure corporation is not legal […]
Chapter 34 A public offer to buy a block of stock directly from
1. A public offer to buy a block of stock directly from shareholders is called a tender offer. a. True b. False 2. A speculator plans to acquire control of Kelp Corporation and then resell it at a profit. A […]
Chapter 35 Alfrieda purchased an ownership interest in a corporation
1. Alfrieda purchased an ownership interest in a corporation. This gives her the right to use the equipment owned by the corporation, as long as her usage does not interfere with the normal operation of the business. a. True b. […]
Chapter 36 Brad was having financial difficulties and thought bankruptcy
1. Under all chapters of the Bankruptcy Code, most of the debtor’s assets are distributed to creditors and the debtor has no obligation to share future earnings with creditors. a. True b. False 2. Peggy’s credit card debts are mounting […]
Chapter 37 The Securities Act 1933 Established The Securities
1. The Securities Act of 1933 established the Securities and Exchange Commission. a. True b. False 2. A control security is stock which gives the owner a controlling interest in the company. a. True b. False ANSWER: False POINTS: 1 […]
Chapter 38 The Sherman Act was designed to prevent extreme concentrations
1. The Sherman Act was designed to prevent extreme concentrations of economic power. a. True b. False 2. Both per se and rule of reason violations of the Sherman Act are automatically illegal. a. True b. False ANSWER: False POINTS: […]
Chapter 39 The Federal Trade Commission Act considers the terms
1. The Consumer Financial Protection Bureau (CFPB) was created to represent consumers by filing suit in federal court asking for damages on behalf of the injured consumer. a. True b. False 2. The Federal Trade Commission Act considers the terms […]
Chapter 4 The majority of work done by legislative bodies is performed
1. The doctrine of stare decisis, though vital to the creation of the common law when this country was settled, is not important to our modern, complex society. a. True b. False 2. While at the park, Tasha saw a […]
Chapter 40 The cost-benefit trade-off is particularly complex in environmental
1. The cost-benefit trade-off is particularly complex in environmental issues because those who pay the cost often are not the ones who receive the benefit. a. True b. False 2. Weste, Inc. decided to expand by building a $50 million […]
Chapter 41 Clarissa trademarked her new company Samjack after her two
1. Clarissa trademarked her new company Samjack after her two sons Sam and Jack. This would be considered a fanciful trademark. a. True b. False 2. Only civil penalties can be incurred under the Uniform Trade Secrets Act. a. True […]
Chapter 42 Jeff And Liz Purchased A house During Their
1. Landlord-tenant relationships are governed by a mixture of property law, contract law, and negligence law. a. True b. False 2. Tom rented an apartment from Margaret on a month-to-month basis, with rent due on the first of the month. […]
Chapter 43 Liability Governed State Statute And Will Depend
1. Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant. Even though no employee of the restaurant is present, the provision of the cloakroom makes Jerry think it will be safe. […]
Chapter 44 The Uniform Probate Code has been adopted in all states
1. The Uniform Probate Code has been adopted in all states. a. True b. False 2. Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes. a. True b. False […]
Chapter 5 The Framers of our Constitution, a true cross section
1. The Framers of our Constitution, a true cross section of the population at the time, created the Constitution by amending the Articles of Confederation, which had been the governing document of the colonists. a. True b. False 2. By […]
Chapter 6 If Lorenzo is seeking an injunction against Brenda
1. If Lorenzo is seeking an injunction against Brenda to prevent her from selling materials that infringe his copyright, he is entitled to a jury trial if the value of the materials is over $100. a. True b. False 2. […]
Chapter 7 When measured in dollars, street crime costs
1. When measured in dollars, street crime costs society more than twice as much as white-collar crime. a. True b. False 2. Every criminal defendant has a right to a jury trial. a. True b. False ANSWER: False POINTS: 1 […]
Chapter 8 A tort is a violation of a duty imposed by the civil
1. A tort is a violation of a duty imposed by the civil law. a. True b. False 2. The First Amendment guarantee of freedom of speech is an absolute right. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: […]
Chapter 9 Phillips Injury b Win Based Negligence Per Sec
1. Palsgraf v. Long Island Railroad Co. addressed the issue of furnishing alcohol to minors. a. True b. False 2. A landowner’s highest duty is owed to licensees. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy KEYWORDS: Bloom’s: […]
LGST 11116
The EEOC is the federal agency responsible for enforcing Title VII. a. True b. False Bagsby owns a business selling insects for organic gardening. Bagsby is seeking a loan from First Natural Bank. The loan officer is asking that the […]
LGST 26357
Adam moved into an apartment complex. The rules of the complex prohibit unmarried men and women from living together in the same apartment. When Adam’s friend, Diane, moved into the apartment he was served with eviction papers. Adam claims the […]
LGST 48325
Dean Builders agrees to purchase all of its sump pump requirements for the new houses it builds from Satisfactory Sump Pump, Inc. These two business have had similar agreements the last three years and Dean’s requirements have averaged 100 sump […]
LGST 61070
Which of the following guarantees that a witness testifying in a court or legislature may never be sued for defamation? a. recovery principle b. protected right to slander c. defamation privilege d. absolute privilege In which of the following situations […]
LGST 70945
Betsy’s elderly father gave her written authority her to sell the family house. Her father lived in Arizona and she lived in Minnesota. After about two months she found a buyer for the house and signed an acceptance of the […]
LGST 72315
Drawers and indorsers are secondarily liable on negotiable instruments. a. True b. False Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1. The contract contained a provision which required all modifications to […]
LGST 93748
Under the 1934 Act, an issuer must register with the SEC if a. it has not completed a public offering under the 1933 Act. b. its securities are not going to be traded on a national exchange. c. it will […]
LGST 97160
Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes. If Farmer Elvin sells the potatoes to a local diner to make potato […]
LGST 97916
The Model Business Corporation Act states: “All corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation managed by or under the direction of its a. shareholders. b. officers. c. board […]