Holiday Sales Company and Global Distributors, Inc., enter into an express contract for
the delivery of imported specialty goods. Express contract terms are given
a. less priority than the parties prior dealing.
b. less priority than the trade usage in the parties industry.
c. less priority than the parties course of performance.
d. more priority than the prior dealing, course of performance, and trade usage.
Seafood Canning Corporation keeps a file of I-9 verifications forms. To inspect this file,
the appropriate government officer must obtain
a. a subpoena and a warrant.
b. a subpoena or a warrant, but not both.
c. not a subpoena, a warrant, or the employers consent.
d. the employers consent.
Fact Pattern 16-2
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 16-2. 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.
Universal Assembly Company makes espresso machines and sells one to Vim through a
misrepresentation on the label on which Vim relies and that results in an injury to Vim.
Universal is most likely liable for
a. a commonly known danger.
b. fraud.
c. privity.
d. puffery.
Grady enters into a contract to buy 440 acres from Hollis to expand Gradys ranch. If
Hollis breaches the contract, Gradys normal remedy would be
a. damages.
b. quasi contract.
c. reformation.
d. specific performance.
Leilani, a high school student, gains unauthorized access to a plagiarism services
database to which she and other students had been asked to submit their assignments. A
federal court is most likely to find that this access violates
a. the Computer Fraud and Abuse Act.
b. the Virginia Computer Crimes Act.
c. federal copyright law.
d. no federal or state law.
Fiona owns one share of stock in GR8 Boards Corporation, as evidenced by a stock
certificate. Fiona loses the certificate. Her ownership of the stock is
a. forfeited immediately.
b. forfeited within ten days of a third partys claim to ownership.
c. forfeited within thirty days if she cannot find the certificate.
d. not affected.
Musical, Inc., sells fifty MP3 players to Noise Stores, Inc. To avoid liability for most
implied warranties, in some states Musical could simply state in writing that the players
are sold
a. as is.
b. by a merchant.
c. in perfect condition.
d. with no known defects.
Vision Optical Company and Wide Eyes Open, Inc. decide to combine. Xavier, a Wide
Eyes shareholder, is dissatisfied with the price that he will receive for his stock. In the
absence of fraud or other illegal conduct, Xaviers exclusive remedy is to
a. exercise an appraisal right.
b. file a suit to delay the process.
c. refuse to agree to the deal, which cannot then proceed.
d. urge other shareholders to insist on a higher price.
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.
Rikki signs a check “pay to the order of Scholar University drawn on Rikkis account in
State Bank to pay her tuition. Rikki is
a. the certifier.
b. the drawee.
c. the drawer.
d. the payee.
BBQ, Inc., makes and sells grills to Grill Mart, a retailer, which sells one of the grills to
Hope, a consumer. BBQ and Grill Mart include in their contracts a limitation on
consequential damages for personal injuries arising from a breach of warranty. This is
prima facie unconscionable with respect to
a. all of these parties.
b. BBQ and Grill Mart, but not Hope.
c. Hope only.
d. none of these parties.
Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her
job and fails to make payments on the mortgage, but assures Clear Lake Credit that she
will soon secure a new job. The lender agrees to postpone the payments. This is
a. a bridge loan.
b. forbearance.
c. a reamortization.
d. a restructure.
Superb Construction, Inc., contracts to build a store for Tasty Confection Company,
with Tastys payment due on June 1. On June 1, Tastys bank is closed, and for this
reason, Tasty claims it cannot pay Superb on time. In this situation
a. Tastys bank is in breach of contract.
b. Tasty is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
Liu enters Mountain Triathlon, an athletic competition in which Liu has never
competed. Regarding the risk of injury, Liu assumes the risks
a. attributable to the Triathlon in any way.
b. different from the risks normally associated with the Triathlon.
c. greater than the risks normally associated with the Triathlon.
d. normally associated with the Triathlon.
Crater Tools Company may be subject to regulations issued by the Occupational Safety
and Health Administration (OSHA). Like other administrative agencies, the OSHA
affects
a. almost every aspect of a businesss operations.
b. almost no aspect of a businesss operations.
c. a firms capital structure and financing, but nothing else.
d. a firms hiring and firing procedures, but nothing else.
Penn files a suit against Roadway Sign Company While the suit is pending, Roadway
consolidates with Synchronized Signal Corporation to form Traffic Management, Inc.
Now, liability in the suit, if any, rests with
a. Traffic.
b. Roadway and Synchronized.
c. Penn.
d. no one.
Guy and Hanna do business as G-H Associates. If G-H is a partnership, it is governed
by the Uniform Partnership Act
a. in the absence of an express agreement.
b. in the absence of an implied agreement.
c. only in the presence of an express agreement.
d. under all circumstances.
Chocolate Chip Cookie Corporation (4C) obtains, and gives its employees, a list of the
customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade secrets,
4Cs conduct is actionable provided
a. consumers are confused.
b. 4Cs conduct is intentional.
c. 4C uses the list.
d. 4C does not have 3Ss permission to use the list.
Tori files a suit against the state of Utah, claiming that a Utah state law violates the
commerce clause. The court will agree if the statute
a. impinges on citizens private activities.
b. imposes a substantial burden on interstate commerce.
c. imposes a substantial burden on the state.
d. promotes the public order, health, safety, morals, or general welfare.
Dino hires Eve to perform at Dinos Club, but Eve later breaches the agreement to
accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court
will most likely
a. award damages to Dino.
b. cancel Dino and Eves contract.
c. order Eve to perform the contract.
d. reform Dino and Eves contract.
Timber Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of
plywood. Under a destination contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before tendering their delivery.
d. place the goods into the hands of a carrier.
In Export Co. v. Finance Corp., there is no precedent on which the court can base a
decision. The court can consider
a. neither public policy nor social customs and values.
b. public policy but not social customs or values.
c. public policy or social customs and values.
d. social customs or values but not public policy.
Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry
does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office
Accounting may recover from Perry
a. compensatory damages.
b. consequential damages.
c. nominal damages.
d. punitive damages.
Jaime and Kip, consumers, transact a deal over the Internet. Their contract does not
mention the UETA. The UETA covers
a. none of the contract.
b. only the part of the contract that involves computer data.
c. only the part of the contract that does not involve computer data.
d. the entire contract.
Vladimir negotiates a bearer instrument to Wendy by
a. assignment.
b. delivery.
c. presenting it in response to a demand by Wendy.
d. promising to pay.
The idea for “On Your Mark, a computer game featuring racing cars, is protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.
Through fraudulent means, Fred induces Gail to sign a contract to build resort cabins on
land that Fred does not own. Gail performs, but Fred does not pay. When Gail learns the
truth, she may
a. do nothing with respect to the contract.
b. recover for the performance or its value.
c. recover for the performance only.
d. recover the value of the performance only.
Edie files a suit against Frank. If this suit is like most cases, it will be
a. dismissed during a trial.
b. dismissed or settled before a trial.
c. resolved only after a trial.
d. settled at a trial.
Ronaldo agrees to pay Simplex Cash Store a debt that is otherwise dischargeable in
bankruptcy. This is
a. a reaffirmation.
b. a liquidation.
c. a reorganization.
d. a petition.
Southwestern Foods Corporation operates a packaging plant near the border between
the United States and Mexico. Due to the location, it would be easier for Southwestern
to employ noncitizens. It is legal for a U.S. employer to
a. hire persons not authorized to work in the United States.
b. recruit persons not authorized to work in the United States.
c. refer for a fee persons not authorized to work in the United States.
d. none of the choices.
Performance that provides a party with most of the benefits of a contract, in spite of a
deviation from the terms, is complete performance.
A disclosed principal is not liable to a third party for contracts made by the agent acting
outside the scope of his or her authority.
All bailments include a bailees right to use the bailed property.
An oral contract for a sale of land may be enforceable if the contract has been partially
performed.
Sara needs $1,513 to buy textbooks and other school supplies. Tomas agrees to loan
Sara $1,513, accepting as collateral Tomass car. They put their agreement in writing and
sign it. Sara keeps possession of the car. Does Tomas have an enforceable security
interest? How can Tomas let other creditors know of his interest in the car?
Consent is a defense to an allegation of assault, but not battery.
A trademark must be registered to support a trademark infringement action.
In considering the scope of an agents implied authority, the test is whether the agent
reasonably believed that he or she had the authority.
Clean Machines Company makes washing machines. Over the phone, Clean offers to
sell Dealers Appliance Outlet one hundred model EZ2000 washers at a price of $150
per unit. Clean says that it will keep the offer open for ninety days. Dealers responds
that within two or three weeks it will decide whether to accept. One week later, Clean
faxes, and Dealer receives, notice that the offer is withdrawn. Dealer immediately
phones Clean to accept the $150-per-unit offer. When Clean refuses to deliver at that
price, Dealer files a suit. Clean asserts, first, that there is no contract and, second, that if
there is a contract, it is unenforceable. Discuss Cleans assertions.
Tangible personal property represents a set of rights and interests but has no real
physical substance.
Negotiation is the most complex form of alternative dispute resolution.
The Americans with Disabilities Act of 1990 defines disabled persons as persons
impaired mentally or physically “in any way.
An instrument payable “with interest must specify a particular rate to be negotiable.
Under a destination contract, a seller must deliver the goods via a carrier.
Antidumping duties are the responsibilities of international environmental polluters.