Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year
employment contract for a $4,000 monthly salary to start at the beginning of the next
month. The Statute of Frauds covers
a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.
Riki files an employment, gender-based discrimination suit against Superior
Corporation under Title VII, on a disparate-impact theory. To succeed, Riki must show
that Superior hires fewer women than the percentage of
a. qualified women in the local labor market.
b. qualified women in the United States.
c. women in Superiors state.
d. women who apply to Imperial for work.
Magic Math Corporation makes business accounting software, which is packaged with
a shrink-wrap agreement. National Distribution Company distributes the software to
retailers, including an Office Stuff store, where Peg buys a package of it. The parties to
the shrink-wrap agreement are
a. Magic Math and National Distribution only.
b. Magic Math and Peg only.
c. Magic Math, National Distribution, Office Stuff, and Peg.
d. Office Stuff and Peg only.
Ross and Sally agree to guarantee Tims debt. Rosss maximum liability is $30,000, and
Sallys is $20,000. Tim owes $20,000 and is in default. Ross pays the creditor the entire
amount. In the absence of an agreement to the contrary, Ross can recover from Sally
a. $8,000.
b. $10,000.
c. $20,000.
d. nothing.
Olly applies for a job with Petro Company. Petro does not hire Olly because of his
ethnicity, or national origin. This is
a. desperate-measure discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable,
Ludwig must know
a. Milo.
b. Nadine.
c. that the marimba is stolen.
d. what a marimba is.
The United States and other members of a certain organization agree to grant normal
trade relations status on each other with regard to imports and exports. This organi-
zation is
a. the Convention on Contracts for the International Sale of Goods.
b. the International Export-Import Bank.
c. the United Nations.
d. the World Trade Organization.
Ruby Red Corporation has six shareholders, four of whom are members of the same
family. All of Rubys shareholders agree in writing to operate without shareholders
meetings. This most likely warrants
a. no penalties or sanctions.
b. the imposition of a fine on Ruby.
c. the imprisonment of Rubys shareholders.
d. the piercing of Rubys corporate veil.
Impersonating Sophie, Ralph makes provocative comments online that deceive others
into threatening Sophie, putting her in reasonable fear for her safety. Under federal law,
this is
a. a crime only if a person who believes the comments acts on them.
b. a crime only if Sophie and Ralph are in the same jurisdiction.
c. not a crime.
d. a crime.
Brandy forges Calebs signature on a check “payable to the order of Brandy drawn on
Calebs account in Downtown Bank. Calebs forged signature is
a. effective if an innocent third party accepts the check.
b. effective to the degree that it matches Calebs genuine signature.
c. effective to the extent that Downtown Bank debits Calebs account.
d. not effective.
To prepare for a trial between Large Lots Development Corporation (LLDC) and
MiniMansion Construction Company (MMCC), MMCCs attorney places LLDCs
president under oath. A court reporter makes a record of the attorneys questions and the
officers answers. This is
a. a cross-examination.
b. a deposition.
c. an imposition.
d. an interrogatory.
Fact Pattern 21-1
Fresh Goods, Inc., wants to make an initial public offering of securities. Fresh believes
that it qualifies for an exemption under Regulation A from the full registration
requirement of the federal Securities Act of 1933.
Refer to Fact Pattern 21-1. If Fresh is exempt from the federal registration requirement,
Fresh is
a. automatically exempt from any state registration requirement.
b. not subject to any state securities laws.
c. not necessarily exempt under a state registration requirement.
d. automatically subject to all state registration requirements.
Raw Material, Inc., and Sewn Fabric Corporation enter into a contract for a sale of
muslin. The terms do not clearly indicate whether it is a destination or shipment
contract. A court would most likely presume that it is
a. a bailment contract.
b. a destination contract.
c. a shipment contract.
d. a transportation contract.
QuizBooks LLC is a limited liability company. Like any other LLC, unless QuizBooks
chooses otherwise, the firm will be taxed as
a. a corporation.
b. a joint venture.
c. a partnership.
d. a sole proprietorship.
Molly files a suit against Naomi. They meet, and each partys attorney argues the partys
case before a judge and jury. The jury presents an advisory verdict, after which the
judge meets with the parties to encourage them to settle their dispute. This is
a. court-ordered arbitration.
b. early neutral case evaluation.
c. a mini-trial.
d. a summary jury trial.
Les is indicted. Madge, the arresting officer, advises Les of his right to counsel. Les
waives the right and confesses to the crime. Later, Les claims that his confession should
be excluded as evidence from his trial. The statement will most likely be
a. admitted because Les knew he did the crime and confessed.
b. admitted because Les made it after being advised of his rights.
c. excluded because a confession is not admissible in a criminal trial.
d. excluded because it was elicited before Les was advised of his rights.
Beachside City enacts an ordinance that bans the distribution of all printed materials on
city streets. Carl opposes the citys latest “revenue-enhancing measure and wants to
protest by distributing handbills. In his suit against the city, a court would likely hold
the printed-materials ban to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
Cordial Drinks, Inc., markets alcoholic beverages. A federal regulation bans the
disclosure of the alcohol content of liquor on Cordials labels and those of other
marketers. A court would likely hold this regulation to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
Fact Pattern 14-2
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note to
Lou who, in turn, indorses it to Mona, who then indorses it to Nat, the present holder.
Refer to Fact Pattern 14-2. Nat properly presents the note to Jake for payment, but Jake
dishonors it. With timely notice to the proper parties, Nat may collect payment on the
note from
a. Kim, Lou, or Mona.
b. Kim or Lou only.
c. Mona only.
d. no one.
The Environmental Protection Agency (EPA) has the authority to regulate “any air
pollutant. Fresher Air Group, a private organization that supports cleaner air, can file a
suit against the EPA to
a. compel the EPA to act only.
b. compel the EPA to act or prevent it from acting.
c. neither compel the EPA to act nor prevent it from acting.
d. prevent the EPA from acting only.
Riley, a State Bank employee, deposits into his account checks that are given to him by
bank customers to deposit into their accounts. This is
a. embezzlement.
b. larceny.
c. money laundering.
d. no crime.
As a joke, Jem takes Kylas business law textbook and hides it so that Kyla cannot find
it during the week before the exam. Jem may have committed
a. appropriation.
b. conversion.
c. intentional infliction of emotional distress.
d. trespass to personal property.
New Discoveries Corporation, and its officers, directors, and shareholders, buy and sell
securities. Section 10(b) of the Securities Exchange Act of 1934 applies to
a. only the purchase or sale of a security involving misappropriation.
b. only the purchase or sale of a security involving short-swing profits.
c. only the purchase or sale of a security involving a tipper and tippee.
d. the purchase or sale of any security.
Reno is the beneficiary of a life insurance policy on Sulas life obtained from Thayer
Insurance Company. The underwriter of this policy is
a. Reno.
b. Sula.
c. Thayer.
d. the agent or broker through whom the policy was obtained.
Fact Pattern 16-1
General Leasing Company (GLC) buys equipment for use as inventory, borrowing $1
million from Helpful Finance Corporation for a security interest in the equipment. The
next day, GLC borrows $500,000 from Interstate Bank, also for a security interest in the
equipment. GLC defaults on the loans.
Refer to Fact Pattern 16-1. Suppose that Helpful perfects its security interest when GLC
takes possession of the equipment. In that circumstance, the party with priority to the
collateral on GLCs default would be
a. GLC.
b. Helpful and Interstate proportionately.
c. Helpful only.
d. Interstate only.
Kipper files a petition in bankruptcy. Kippers dischargeable debts include
a. domestic-support obligations.
b. student loans unless the lender would suffer undue hardship.
c. unpaid state and federal taxes.
d. unsecured credit-card debt.
Frothy Beverage Corporation is a public company whose shares are traded in the public
securities markets. Under the Securities Act of 1933, Frothy is required to
a. contribute to the operations of national stock exchanges.
b. disclose financial and other information about its securities.
c. engage in market surveillance to deter undesirable practices.
d. solicit proxies for voting.
Biff signs a note “payable to the order of County Credit Union. Unless Biff has a valid
defense against payment, Biffs liability on this note is
a. lateral.
b. primary.
c. secondary.
d. tertiary.
Roy owns Roys Cafe. A fire destroys the cafe, and Roy is arrested on suspicion of
setting it to collect the insurance. At the time of the arrest, Roy is not informed of his
rights. Any statement Roy makes will be admissible
a. in all circumstances.
b. in some circumstances.
c. in no circumstances.
d. regardless of the circumstances.
Joy invites Ken into her apartment. Ken commits trespass to land if he
a. enters the apartment with fraudulent intent.
b. harms the apartment in any way.
c. makes disparaging remarks about Joy to others.
d. refuses to leave when Joy asks him to go.
Kady, an agent for Lebron, enters into a contract on Lebrons behalf with Madge that
must be in writing to be enforceable under the Statute of Frauds. Kadys authority to
enter into this contract is not in writing. Under the equal dignity rule, this contract is
a. enforceable.
b. void.
c. voidable at Lebrons option.
d. voidable at Madges option.
Ordinary contract rights are an example of property that does not come under UCC
Article
When an instrument has a forged indorsement, the loss usually falls on the first party to
take the instrument.
A toxic tort is an action against a polluter that results in heavy, or “toxic, damages.
If a buyer breaches a contract and the seller resells the goods to another party, the seller
cannot recover any loss from the breaching buyer.
All employees are entitled to overtime pay.
The Bill of Rights protects individuals against types of interference by the federal
government.
Because the Internet is vast, the unauthorized use of anothers mark in a domain name is
generally permissible.
The federal government accrues all powers not specifically delegated to the states.
To be legally sufficient, consideration must include something of economic value.
Any breach of contract discharges the breaching party.
Divestiture of a business interest is a possible penalty under RICO.
Pollution-control standards generally do not change.
Andy leases to Burgertown Franchise Corporation a 10,000 square-foot building under
a written lease with a twenty-year term, rent payable annually. The lease includes a
clause stating that Burgertown is responsible for making all necessary repairs, including
rebuilding the structure after its destruction by any cause beyond Andys control. The
lease does not include a clause concerning its assignment. One day after the tenth rental
payment, Burgertown, without Andys knowledge or consent, assigns its interest in the
lease to Chicken Hut Restaurants, Inc. Meanwhile, Andy dies and Dotty inherits Andys
interest in the building. Without the knowledge or consent of either Burgertown or
Chicken Hut, Dotty sells the building to Earnest Investments, Inc. The next month, the
building is destroyed in the flood of a nearby river. Burgertown rebuilds it and files a
suit against Earnest for the expense. Earnest responds that the lease has terminated. Is
Earnest correct? If so, when did the lease terminate? If not, is Earnest liable for the cost
of rebuilding the structure? Why or why not?
A minors right to disaffirm a contract terminates sixty days after the contracts date.
A covenant not to sue is the substitution of a contractual obligation for a legal action.
A state court can exercise jurisdiction over any person within the boundaries of the
state.
A pledge is a promise by a debtor to take reasonable care of the collateral.
City, county, and local governments oversee certain aspects of the environment.
The terms “procedural due process and “equal protection mean the same thing.