Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments.
Corporate says that it will pay BPI $100 to hold the offer open for three business days.
This
a. creates an illegal contract by adding a clause to BPI’s offer.
b. makes the offer irrevocable for three days if BPI accepts.
c. negates BPI’s offer by changing the price term.
d. voids BPI’s offer by extending the time term.
Bee Hive Honey, LLC’s members include Chad. For purposes of suing and being sued,
Bee Hive Honey is
a. an aggregate of Chad and the other members.
b. a natural person in the members’ “family.”
c. a legal entity apart from the owners.
d. a non-participating third party.
Orin enters into a contract with Natalie. Later, Orin is adjudged mentally incompetent
and Moseby is appointed Orin’s guardian. Lila, Orin’s daughter, attempts to void Orin’s
contract with Natalie on the ground of Orin’s incompetency. The contract is
a. enforceable if Orin does not attempt to disaffirm it.
b. enforceable if Natalie is also incompetent.
c. enforceable if Moseby knew of the contract when he was appointed.
d. void.
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.
Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a
printed form, and Pinky gives Opie a check for the price. This check is
a. a formal contract.
b. an informal contract.
c. a simple contract.
d. no contract.
Kip, a representative for Lite-Weight Shipping Company, delivers a bill of lading to
Meg, the owner of Capacity Storage Warehouse. A bill of lading is
a. an invoice for payment for loading and carting.
b. an order to ship goods by carrier to a certain destination.
c. a receipt for goods signed by a carrier.
d. a receipt issued by a warehouser for goods in a warehouse.
Meals n” More, Inc., a catering company, requires its customers to pay by check. Lyra,
a Meals n” More driver, tells customers that they can pay her with cash. When Meals n”
More learns of Lyra’s collections, it takes no action to stop it. Lyra steals some of the
cash. Meals n” More may suffer the loss under the doctrine of
a. apparent authority.
b. express authority.
c. implied authority.
d. no authority.
Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks,
Inc., but refuses to deliver. Due to a spice shortage, Roller Rinks cannot obtain pizza
elsewhere. Roller Rinks’s right to recover the goods from Cheesy is the right of
a. cover.
b. cure.
c. replevin.
d. specific performance.
Skyla and Terry want to form and do business as Unbound Games Corporation. Most
statutes governing the formation and use of corporations are guided by
a. city or county corporate codes.
b. the Entrepreneur’s Corporate Handbook.
c. the federal Administrative Procedure Act.
d. the Revised Model Business Corporation Act.
As a judge, Nina decides cases that involve principles of various sources of law.
Common law is
a. administrative law.
b. case law.
c. civil law.
d. statutory law.
Dino hires Eve to perform at Dino’s 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 Eve’s contract.
c. order Eve to perform the contract.
d. reform Dino and Eve’s contract.
Sunny Energy Corporation engages in ethical behavior solely for the purpose of getting
good publicity and thereby increasing profits. Sunny is
a. acting unethically in its pursuit of publicity.
b. acting unethically in its pursuit of profits.
c. acting unethically in its setting of priorities.
d. not acting unethically.
Lia works for Media Marketing Company. Her job includes putting ‘spin” on the firm’s
successes and failures. In this context, ethics consist of
a. “bad” versus “good” publicity.
b. questions of rightness and wrongness.
c. the firm’s quarterly revenue.
d. whatever is legal.
Val, the owner of Wild Wheels, a bicycle store, trusts Xavier to manage the store’s daily
cash flow. One night, without Val’s knowledge or consent, Xavier takes and keeps $500
from the receipts. This is most likely
a. embezzlement.
b. larceny.
c. robbery.
d. no crime.
Ken relinquishes the right to his son Lee’s control, care, custody, and earnings. This act
is
a. a disaffirmance.
b. an emancipation.
c. a ratification.
d. a necessary.
Ray breaches his lease with Sunny Properties and vacates the premises six months
before the end of the term. In some states, Sunny would have to
a. avoid reletting the premises to recover damages from Ray.
b. make reasonable efforts to relet the premises to mitigate damages.
c. relet the premises to recover damages from Ray.
d. sell the premises to recover damages from Ray.
Cielo is fifteen. In most states, Cielo would be considered a minor because she is under
the age of
a. sixteen.
b. eighteen.
c. twenty.
d. twenty-one.
National Computer Corporation (NCC) employs Cynthia as an agent. NCC gives her an
exclusive territory in which to sell NCC products. NCC cannot compete with her in that
territory under the duty of
a. compensation.
b. cooperation.
c. indemnification.
d. reimbursement.
The Texas Supreme Court decides the case of Livewire Entertainment Co. v. Power
Play Corp. Of nine justices, six believe the judgment should be in Livewire’s favor.
Justice Bellamy, one of the six, writes a separate opinion. The four justices who believe
the judgment should be in Power’s favor join in a third separate opinion.
Bellamy’s opinion is known as
a. a concurring opinion.
b. a dissenting opinion.
c. a majority opinion.
d. a per curiam opinion.
Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it
according to the contract specifications. Candy hires Do-We Fix-It Company to finish
the project. Candy may recover from Beachside
a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
Paco offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package
from Rich within 30 minutes. QD can accept the offer only by meeting the deadline. If
QD performs as directed, these parties will have
a. a bilateral contract.
b. a trilateral contract.
c. a unilateral contract.
d. no contract.
The Financial Institutions Association would like a certain law enacted, administered,
interpreted, and enforced in the best interest of its members, which include banks.
Under the Constitution, Congress
a. administers the laws.
b. enforces the laws.
c. interprets the laws.
d. makes the laws.
Nick sees Opal, a stranger, in peril, but does not attempt to rescue her. Opal could
successfully sue Nick for
a. negligence per se.
b nothing.
c. a violation of the “danger invites rescue” doctrine.
d. res ipsa loquitur.
Grady enters into a contract to buy 440 acres from Hollis to expand Grady’s ranch. If
Hollis breaches the contract, Grady’s normal remedy would be
a. damages.
b. quasi contract.
c. reformation.
d. specific performance.
Donna makes and distributes copies of Every Good Boy Does Fine, a movie
copyrighted by Great Films Corporation, without Great Films’ permission. Donna may
be liable for
a. damages, fines, or imprisonment.
b. damages only.
c. fines or imprisonment only.
d. nothing.
Ralph offers to sell Sophie, who is seventeen years of age, a car about which Ralph
intentionally misrepresents several material facts. In reliance on the misrepresentations,
Sophie buys the car. To prove fraud in this transaction, Sophie would have to show that
a. Ralph intentionally deceived Sophie.
b. Ralph made statements that were obviously exaggerated.
c. Sophie does not know anything about cars.
d. Sophie is under eighteen years of age.
Oakley posts a defamatory remark about Pierre in “Roominate,” an online social
network maintained by SocNet, Inc., an Internet service provider. Most likely to be held
liable for the remark is
a. Oakley.
b. Pierre.
c. Roominate.
d. SocNet.
Dwayne and Ewell enter into a contract for the design of an addition to Dwayne’s house
for which he agrees to pay Ewell. Ewell transfers his right to payment under the
contract to Flex Construction Company. Flex is
a. a delegatee.
b. an assignee.
c. an obligee.
d. a donee.
In a suit against Vladimir over the performance of a contract, Wyler obtains rescission.
This is
a. an order to do or to refrain from doing a particular act.
b. an order to perform what was promised.
c. a payment of money or property as compensation.
d. the cancellation of a contract.
Dion, an accountant for Entertainment Sports, Inc., attempts to apply a duty-based
approach to ethical reasoning in conflicts that occur on the job. This approach is based
on the idea that a person must
a. achieve the greatest good for the most people.
b. avoid unethical behavior regardless of the consequences.
c. conform to society’s ethical standards.
d. place his or her employer’s interest first.
Parker owns and operates Rancho Mirage Corporation, a destination resort in Arizona
that features horseback riding and bunkhouse accommodations. The Constitution
provides that no person shall be deprived of “life, liberty, or property without due
process of law.” Included as “legal persons” under this clause are
a. the bunkhouses and other “manmade creations.”
b. the corporation and Parker.
c. horses and other “beings in nature.”
d. none of the choices.
Seaside Resort, Inc., adopts an alternative dispute resolution (ADR) program. Tess, a
current employee, signs an agreement under which arbitration is subject to “Seaside’s
rules, with the employee to bear all costs of the proceeding.” When a dispute arises,
Tess refuses to arbitrate. Seaside files a suit to compel arbitration. The court will most
likely
a. order arbitration according to Seaside’s rules.
b. order arbitration but suspend Seaside’s rules.
c. refuse to order arbitration if a resolution of the dispute is clear.
d. refuse to order arbitration if Tess lacks the ability to pay.
Colorado enacts a statute that bans the distribution of anonymous political leaflets. A
court would likely hold this 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 state interests.
Ollie, an employee of Payroll Management Corporation, is arrested at work. A grand
jury issues a formal charge against Ollie for larceny. This charge is
a. an arraignment.
b. an indictment.
c. an information.
d. an inquisition.
Hillside Homes, Inc., and Ideal Builders, Inc., enter into a construction contract that
includes six pages of detailed calculations. Later Hillside, whose project manager
compiled the figures, discovers that some numbers were multiplied incorrectly, but
Ideal refuses to make changes. A court would most likely
a. allow the parties to rescind the contract.
b. award damages to Hillside for the mistakes.
c. award damages to Ideal for the mistakes.
d. enforce the contract without requiring changes.
One of the elements of a valid contract is a fair price.
An Internet service provider is generally not liable for publishing a defamatory
statement that comes from a third party.
A search warrant must particularly describe whatever is to be searched.
For five years, baby-food makers Baby-One Corporation and Baby-B-Mine, Inc., both
use the phrase “Tastes Good” on their labels. Baby-One files a suit against
Baby-B-Mine, claiming trademark infringement. Baby-B-Mine argues that the phrase is
not generally associated with any particular firm, pointing to other companies that use
the same phrase on their labels. In whose favor is the court most likely to rule, and
why?
Restitution involves one party’s recapture of a benefit through which another party has
been unjustly enriched.
An agent is required to notify the principal of all matters concerning the subject matter
of the agency.
A substantive law creates or defines legal rights and obligations.
Under the UCC, a contract for a sale of goods that includes open terms is void.
A usurious contract involves the purchase and sale of usable goods.
Computer fraud is a state, not a federal, crime.
In ethical terms, a cost-benefit analysis is an assessment of the negative and positive
effects of alternative actions on individuals.
The function of the courts is to interpret and apply the law.
Baby Products, Inc., hires Cole to develop and implement an e-commerce strategy for
marketing Baby’s products. Cole signs a contract that includes a clause prohibiting him
from competing with Baby during and after the employment. Before the strategy is
implemented, Cole resigns from Baby’s employ and opens a business to compete with
Baby. In Baby’s suit against Cole, to determine whether Cole may compete with Baby,
what is the most important factor the court should consider?
Courts often rely on the common law as a guide to interpreting legislation.
An applicant cannot register a trademark on the basis of an intention to use the mark in
commerce.
The First Amendment requires a complete separation of church and state.
A certification mark distinguishes products approved, or “certified,” by the government.
Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3
players at $50 a piece, subject to certain specific delivery dates. Unlimited replies with
a signed purchase order that reads, “Accept your offer for 100 I-appliances at $50 each.
Must be delivered to our warehouse.” Tune does not respond or deliver the goods.
Unlimited files a suit for breach of contract, to which Tune answers that there is no
contract because Unlimited’s purchase order contained additional terms and is not
signed by Tune. Can Unlimited recover? Explain.
A corporation cannot be held liable for the criminal acts of its employees.
An installment contract is breached if a buyer accepts any nonconforming goods.