Rolf is an emergency medical technician. Medical personnel such as Rolf are prohibited
by state statute from working more than a certain number of consecutive hours. One
month, Rolf works more than the legal limit. Rolf can recover for
a. the hours up to the statutory maximum but not more.
b. the hours up to the statutory maximum and the extra hours.
c. the hours up to the statutory maximum or the extra hours.
d. nothing.
Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation. Lily
and Moe are Kleen’s officers. As in other corporations, the responsibility for the overall
management of Kleen rests with
a. the board of directors.
b. the officers.
c. the owners.
d. the shareholders.
Little Local Bank wrongfully fails to honor a check signed by its customer Andrea.
Little Local Bank is
a. not liable to Andrea for damages resulting from its refusal to pay.
b. only liable to Andrea for damages resulting from its refusal to pay if Andrea takes
action against the bank within one business day of the failure to honor the check.
c. only liable to Andrea for one half of the damages resulting from its refusal to pay.
d. liable to Andrea for damages resulting from its refusal to pay.
Evermore Sports Gear Corporation and Trendy Goods, Inc., enter into a contract. To be
enforceable, the contract must include
a. no particular signatures.
b. the signatures of all parties to the deal.
c. the signature of the party against whom enforcement is sought.
d. the signature of the party who is seeking enforcement.
Margaret is the top manager of Pecans, Inc. She sets strict ethical standards for all
employees. Margaret, however, often takes some of the company’s best nuts and sells
them from her house. The ethical tone at Pecans, Inc. is
a. likely to be good because Margaret has set such strict standards for her employees.
b. not likely to be good because although Margaret sets strict ethical standards for the
other employees, she does not follow them.
c. not related to either Margaret’s ethical standards or her own unethical behavior.
d. not likely to be good because employees tend to resent strict ethical standards.
Beth is an accountant with Coffee Sales Corporation. Doral buys Coffee Sales stock and
loses money on the investment. To recover from Beth under Section 10(b) of the
Securities Exchange Act of 1934 and SEC Rule 10b-5, Doral must prove
a. none of the choices.
b. fraud and reliance only.
c. fraud, reliance, and materiality only.
d. scienter, fraud, reliance, materiality, and causation only.
Without a permit from the U.S. Army Corps of Engineers, Holiday Timeshares, Inc.,
fills a wetlands area that it owns before constructing a residential resort. Under the
Clean Water Act, this is most likely
a. a violation.
b. not a violation because a permit is not needed to fill wetlands.
c. not a violation because the area was filled before construction.
d. not a violation because there was no discharge of pollution.
Quaff n” Quench Caf buys twenty-five bags of Columbia coffee beans from Roasted
Bean Brokers, Inc. The parties agree to ship the oranges “F.O.B. Quaff n” Quench ” via
Swiftline Trucking Company. The oranges rot in transit. The loss is suffered by
a. Quaff n” Quench.
b. Swiftline.
c. Columbia.
d. Roasted Bean.
Readmore Bookstore Corporation files a registration statement with the Securities and
Exchange Commission and provides a prospectus describing the securities to investors.
These items are intended to provide sufficient information so that the financial risks
involved can be evaluated by
a. market professionals to explain to all investors.
b. government regulators to disclose to the general public.
c. sophisticated investors only.
d. unsophisticated investors.
Bruno is an accountant. Under the Sarbanes-Oxley Act, the degree of government
oversight over the public accounting practices of Bruno and other accountants was
a. decreased.
b. increased.
c. eliminated.
d. unchanged.
Levi, a well-known lumber dealer with a good reputation, buys a load of lumber and
pays for it with a check that is later dishonored. Sam, who is unaware of the bad check,
buys the lumber from Levi. Sam is a(n)
a. good faith purchaser.
b. bad faith purchaser.
c. insolvent purchaser.
d. bailee.
To fall under the Sherman Act, an activity must
a. substantially affect interstate commerce.
b. involve monopolization.
c. promote competition.
d. involve international trade.
Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A
declaration that one will do something in the future is part of the definition of
a. a prediction.
b. a premise.
c. a principle.
d. a promise.
Megan, a resident of Ohio, runs a red light in Texas and hits Sarah, a Texas resident.
Sarah files suit against Megan. The statute that allows the Texas court to exercise
jurisdiction over Megan is called a(n)
a. long arm statute.
b. in personam statute.
c. in rem statute.
d. out-of-state jurisdiction statute.
Frawsty Corporation distributes beverages in the greater Northwest. Frawsty’s board of
directors can delegate some of its functions to
a. Frawsty’s incorporators.
b. Frawsty’s officers.
c. Frawsty’s shareholders.
d. no one.
Produce Packaging Company promises its employees a 10 percent raise at the end of
the year if productivity has increased and management feels the raise is warranted.
Produce Packaging must
a. do nothing.
b. give the employees a 10 percent raise only at the end of the year.
c. give the employees a 10 percent raise only if productivity increases.
d. give the employees a 10 percent raise under any circumstances.
Drummond wants to make a federal case out of his dispute with Elena. Federal cases
originate in
a. federal courts of appeals.
b. federal district courts.
c. state trial courts.
d. the United States Supreme Court.
Ester is a lighting technician who hires out on a per-project basis to film and television
production companies, as well as theatres and other venues that stage dramatic and
musical performances. In this capacity, Ester is
a. an agent.
b. an employee.
c. an independent contractor.
d. a principal.
Japan violates an international law. Other countries may take coercive actions, which
include
a. violating the same law in the same way with impunity.
b. confiscating Japanese businesses.
c. boycotting Japanese goods.
d. taxing Japanese citizens.
Gena borrows $350,000 from Fish Island Bank to buy a home, which secures the
mortgage. In the seventh year of the loan, Gena stops making payments. After the bank
repossesses the property but before it is sold, Gena may buy it by paying
a. an amount that equals the potential proceeds from the property’s sale.
b an amount that exceeds the potential proceeds from the property’s sale.
c. the amount of the missed payments, but not more.
d. the full amount of the debt, plus any interest and costs.
Carpets n” Rugs, Inc., agrees to carpet Downtown Realty’s offices, using a particular
brand of durable carpet. Carpets n” Rugs completes the job but uses a different brand of
wear- and weather-resistant carpeting. This is most likely
a. a good-faith reason for Downtown Realty to rescind the contract.
b. a material breach.
c. complete performance.
d. substantial performance.
Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth wishes to
terminate his tenancy. Under the common law, he must give his landlord
a. at least one week’s notice.
b. at least two weeks’ notice.
c. at least thirty days’ notice.
d. at least sixty days’ notice.
Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their
profits to Protestant churches that provide certain services to persons whose income is
below the poverty level. PriceLess Stores files a suit to block the law’s enforcement.
The court would likely hold that this law violates
a. no clause in the U.S. Constitution.
b. the establishment clause.
c. the free exercise clause.
d. the supremacy clause.
Based on Nan’s conduct, Odel reasonably believes that Poppy has the authority to act
on Nan’s behalf even though Poppy does not have the actual authority to do so. In this
circumstance, Poppy has
a. apparent authority.
b. express authority.
c. implied authority.
d. no authority.
Erin and Dooley, a married couple, borrow $120,000 from Capital & Credit Bank to
buy a home. When Erin and Dooley divorce, they are unable to make payments on the
mortgage. The market value of the home has declined to less than the balance of the
loan. Capital & Credit agrees to a sale of the property for this amount. This is
a. a deed in lieu of foreclosure.
b. a home equity loan.
c. a reverse mortgage.
d. a short sale.
Mabel and Nicol do business as One World Realty. In acting on the firm’s behalf in a
deal with Property Acquisition Company, Mabel fails to account for the profit. To her
firm, Mabel is
a. liable for breach of the duty of care.
b. liable for breach of the duty of economic sense.
c. liable for breach of the duty of loyalty.
d. not liable.
Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen
agrees to buy “Garth’s ATV” for $750. Garth believes, in good faith, that he is selling
the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this
situation
a. Garth is entitled to $750 for the $500 ATV.
b. Helen is entitled to the $1,000 ATV for $750.
c. Helen must buy both ATVs for $1,500.
d. there is no contract.
A merger between Blended Coffee Corporation and Cowland Creamery Inc. can be
expressed as Blended Coffee + Cowland Creamery =
a. Cowland Creamery.
b. Delite Dairy Corporation.
c. Delite Dairy Corporation + EZ Stir & Sip Inc.
d. EZ Stir & Sip Inc.
Elias repays his debt, incurred to buy consumer goods, to Fidelity Bank and
immediately files a written request for a termination statement. Fidelity
a. must comply within one month of receipt of the letter.
b. must comply within twenty days of receipt of the letter.
c. must refund $500 to Elias.
d. need not comply.
Nursing Home Care Company is charged with violating a rule of the Social Security
Administration. Most likely, Nursing Home Care will be required to appear at a hearing
presided over by
a. a federal appellate court judge.
b. a federal district court judge.
c. an administrative law judge.
d. a U.S Marshal.
Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a
city street. Ralph and Speedy are liable to
a. all those who were injured.
b. only those who were uninsured.
c. only those whose injuries could have been reasonably foreseen.
d. only those whose vehicles were closest to Ralph’s van.
In all contracts, absolute promises are expressly conditioned.
Public officials prosecute criminal defendants.
Generally, stock offerings that are made in a limited manner during any twelve-month
period are exempt from the registration requirement.
Jim operates Jim’s Fruits & Vegetables, a small market stocked entirely with produce
grown on his adjacent farm. Under what clause of the Constitution can the federal
government regulate Jim’s activities? What is Jim’s best argument against federal
regulation of his farm and business?
A merchant is a person who deals in goods of the kind involved in the sales contract or
who holds herself or himself out as having skill or knowledge peculiar to the practices
or goods being purchased or sold.
Any beneficiary who is not deemed an intended beneficiary is considered incidental.
A court may depart from a precedent if the precedent is no longer valid.
Commercial Credit Company has in its possession an instrument dated May 1, 2012.
The instrument is payable to the order of Alpha Company “on June 1, 2013,” for
$5,000. In the upper left corner is an address for Beta Corporation10 Corporate Park
Avenue, Chicago, Illinoisand in the lower right corner is the signature of “Delta, Inc.,
By Eve, President.” In the lower left corner is stamped “ACCEPTED: Beta Corporation
by Frank, President, May 5, 2012.” On the back is the signature of “Alpha Company By
Gail, President.” Who, if anyone, is primarily liable on this instrument on May 1? On
May 5? Who, if anyone, is secondarily liable on this instrument?
The crime of bribery occurs when the bribe is offered.
Under the UCC, a sales or lease contract will fail for indefiniteness if one or more terms
are left open.
State law may mandate that an incontestability clause be included in an insurance
policy.
Attorneys are required to be familiar with well-settled principles of law applicable to a
case.
An employee can continue the health benefits provided by his or her employer for a
period of time only on an involuntary loss of employment.
If an offeror does not expressly specify a certain mode of acceptance, then acceptance
can be made by any reasonable means.
A security interest is enforceable only if the collateral is in the secured party’s
possession.