Fact Pattern 41-1
Rock Mining Company operates a gravel pit next to Sid’s residence. Sid files a suit
against Rock, alleging that the pit is a nuisance and unreasonably interferes with Sid’s
enjoyment of his property.
Refer to Fact Pattern 41-1. The court is most likely to award Sid an injunction
a. if letting the pollution continue is equally as harmful as stopping it.
b. if letting the pollution continue is less harmful than stopping it.
c. if letting the pollution continue is more harmful than stopping it.
d. under no circumstances.
Tab stores video equipment with U-Store-It, Inc., under a contract that excuses the
warehouser from liability for any damage. A fire due to U-Store-It’s negligence destroys
the equipment. The loss is most likely to be imposed on
a. neither Tab nor U-Store-It.
b. Tab and U-Store-It.
c. Tab only.
d. U-Store-It only.
Trustworthy Insurance, Inc., has a valid reason to cancel a policy issued to USA Sales
Company. In most states, Trustworthy could cancel the policy with
a. oral notice.
b. oral or written notice.
c. no notice.
d. written notice.
Jeri is indicted. Before she is arrested, she confesses to the crime in a conversation with
Kelly, the arresting officer. Kelly then arrests Jeri and advises her of the right to
counsel. Later, Jeri claims that her statement should be excluded as evidence from her
trial. The statement will most likely be
a. admitted because Jeri knew she did the crime and confessed.
b. admitted because Jeri made it before being advised of her rights.
c. excluded because a confession is not admissible in a criminal trial.
d. excluded because it was elicited before Jeri was advised of her rights.
Rapid Pest Control itself out to others as being a corporation but makes no attempt to
incorporate. Ponce signs a contract with Rapid Pest Control that is not performed.
Ponce files a suit against the firm. The court will likely hold that Rapid Pest Control is
a. a corporation by estoppel.
b. an alien corporation.
c. an S corporation.
d. ultra vires.
Kirk receives an unsolicited credit card in the mail and tosses it on his desk. Without
Kirk’s permission, his roommate Leif uses the card to buy a new personal computer for
$1,800. Kirk is
a. liable for $1,000.
b. liable for $500.
c. liable for $50.
d. not liable for any amount.
Citrus Groves contracts with four food companies to sell its entire crop of oranges.
When half of the crop is lost to an unexpected insect infestation, Citrus must
a. apportion its surviving crop fairly among its customers.
b. breach some of its contracts.
c. buy elsewhere as many oranges as needed to satisfy its contracts.
d. substitute other fruit for the oranges.
The functions of the Social Security Administration, like those of other administrative
agencies, include
a. adjudication.
b. declaration.
c. enunciation.
d. pronunciation.
Ollie negotiates an order instrument to Phil by
a. assignment of its rights under a contract.
b. delivery with any necessary indorsement.
c. making an unconditional promise to pay.
d. presenting it in response to a demand by B.
Sam signs a covenant not to compete with his employer, Topp Sales Company. A court
decides that the covenant is overly restrictive. The court will likely
a. enforce it as written so as not to interfere with the parties’ freedom of contract.
b. enforce it but evaluate its effects over time.
c. reform its terms to prevent any undue burdens.
d. refuse to enforce it unless Topp pays additional consideration.
Delite Toys, Inc., makes EZ Goo, a famous children’s toy. Without Delite’s consent, Fast
Adhesives Company begins to use “ezgoo” as part of the URL for Fast’s Web site. Fast
claims that no consumer would confuse the Web site with the toy. Fast has committed
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. no actionable violation.
Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project
proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may
recover
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.
Bartleby owes $5,000 to Countryside Credit Union. As a prejudgment remedy to collect
the debt, Countryside could use
a. attachment.
b. contribution.
c. execution.
d. subrogation.
Aromatic Tea Company contract to sell tea to Savory Stores, Inc. The contract includes
the term “F.O.B. Upriver City,” which is Savory’s location. This means that the contract
is
a. a bailment contract.
b. a destination contract.
c. a shipment contract.
d. a transportation contract.
To raise capital to form Plasticity Corporation with Quinn, Rona sells bonds and stock
in other companies, and plans to register an initial public offering under the Securities
Act of 1933. SEC Rule l0b-5 covers
a. most forms of securities.
b. only bonds.
c. only securities registered under the Securities Act of 1933.
d. only stock.
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.
Ruth, a minor, charges groceries at Sam’s Mart. Two days later, Ruth disaffirms the
purchase. Ruth owes Sam’s Mart
a. the reasonable value of the groceries.
b. the retail value of the groceries.
c. the wholesale value of the groceries.
d. nothing.
Staffing Solutions Corporation is subject to the Social Security Act, which
a. covers only employees who do not receive employer-paid pensions.
b. governs state unemployment compensation funds.
c. provides retirement, survivors, and disability insurance.
d. regulates disputes between unions and management.
In reviewing the actions of the U.S. Office of Nuclear Energy and other agencies, the
courts
a. are usually reluctant to review questions of fact.
b. rarely defer to the technical expertise of administrative agencies.
c. often rule on the merits of policy determinations.
d. never defer to an agency’s interpretation of law.
Fact Pattern 41-1
Rock Mining Company operates a gravel pit next to Sid’s residence. Sid files a suit
against Rock, alleging that the pit is a nuisance and unreasonably interferes with Sid’s
enjoyment of his property.
Refer to Fact Pattern 41-1. The court is most likely to award Sid damages
a. if letting the pollution continue is equally as harmful as stopping it.
b. if letting the pollution continue is less harmful than stopping it.
c. if letting the pollution continue is more harmful than stopping it.
d. under no circumstances.
Verna files a petition in bankruptcy in a liquidation proceeding. If the court administers
the means test and concludes that Verna is abusing the bankruptcy process by filing for
a liquidation, the court will most likely
a. force Verna to file for relief through an individual repayment plan.
b. discharge Verna’s debts.
c. distribute Verna’s property to Verna’s creditors.
d. issue an automatic stay against any actions by Verna’s creditors.
Nero files a petition in bankruptcy. The proceeding is governed by the Bankruptcy
Code, which is encompassed by
a. Article 3 of the Uniform Commercial Code.
b. Chapter 5 of the Federal Register.
c. Section 7 of the appropriate state statute.
d. Title 11 of the United States Code.
Mona lives in New Jersey, but she works in New York. Mona borrows $1,000 from
National Bank, using her motorcycle as collateral. To perfect its security interest, the
bank must file its financing statement in at least
a. every state.
b. New Jersey.
c. New Jersey and New York.
d. New York.
Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to
deliver on April 15. These promises are most likely
a. enforceable.
b. valid.
c. void.
d. voidable.
Neil goes to Oil Shop to change the oil in his car. Perry, the service technician, learns
that Neil plans to take a trip and advises the use of a certain type of oil. The oil breaks
down during the trip, damaging the car. Neil may recover from Oil Shop for breach of
a. an express warranty.
b. an implied warranty of fitness for a particular purpose.
c. an implied warranty of merchantability.
d. a warranty of title.
The state legislature of Iowa enacts a transportation statute that impinges on interstate
commerce. This statute will be
a. balanced in terms of Iowa’s interest in regulating a certain matter against the burden
placed on interstate commerce.
b. balanced in terms of the burden on Iowa against the merit and purpose of interstate
commerce.
c. struck down.
d. upheld.
Posing as Sterling Bank, Roxanne e-mails Quentin, asking him to update his personal
banking information by calling a certain phone number. He makes the call and supplies
the data, which Roxanne promptly sells to Porcio. This is
a. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing.
GR8 Products, Inc., warrants its goods to be free of defects. If Heck issues an
instrument to obtain goods from GR8 that prove defective, Heck can avoid paying on
the instrument
a. only if it is a check.
b. only if it is a note.
c. whether it is a check or a note.
d. under no circumstances.
Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She
accepts and hands the book to Vince. Sun-Hi’s delivery of the book is
a. not consideration because its transfer is a preexisting duty.
b. not consideration because its exchange is not a bargain.
c. consideration.
d. not consideration because its value is legally insufficient.
Phil enters into a contract with Vacation Resorts, Inc., to work as a chef. Under the plain
meaning rule, the meaning of this contract must be determined by reference to
a. any available evidence.
b. any relevant extrinsic evidence.
c. the face of the instrument.
d. the later testimony of the parties.
In Harley’s suit against Irma, the parties meet before going to trial, and each party’s
attorney argues the party’s case before the other party. A third party renders an opinion
as to how a court would likely decide the dispute. This is
a. a mini-trial.
b. arbitration.
c. a summary jury trial.
d. early neutral case evaluation.
Ruff Games, Inc., wishes to acquire a controlling interest in Smart Toy Company by
buying its stock. A public offer by Ruff Games to Smart Toy shareholders is
a. a buyout notice.
b. a golden parachute.
c. an acquisition call.
d. a tender offer.
Machine Corporation requires its employees to have a high school diploma, claiming a
definite connection between a high school education and job performance. In a suit
against Machine Corporation under Title VII, this requirement is shown to have a
discriminatory effect. The employer has
a. an affirmative action defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. no defense.
Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and
other items, but makes no payments on the account. To collect the debt, Mako, the
manager, contacts Kip’s parents. This violates
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Myra owns a house, which she advertises for sale for $200,000. On May 1, Nicole
offers Myra $180,000 for the house. On May 5, Myra delivers to Nicole a form that
includes additional terms but does not state a price. At 9 a.m. on May 6, Nicole signs
the form and gives it to Odell, her administrative assistant, with instructions to mail it.
At 10 a.m., Myra calls to tell Nicole that the deal is off. The next day, Odell mails the
signed form to Myra. When Myra refuses to sell the house, Nicole files a suit against
her, alleging breach of contract. Myra claims that there was no contract. What are
arguments supporting each party’s position? What is the court likely to rule? Explain.
The UCC imposes a good faith limitation on output contracts.
Identity theft occurs when a wrongdoer steals another’s form of identification.
If a seller is a merchant, and the seller holds the goods, the risk of loss cannot pass to a
buyer.
An unauthorized signature binds the person whose name is forged.
For twenty years, Ozzie works for Players Paradise, a destination for vacationers from
across the United States, maintaining golf carts. After a steady stream of positive job
evaluations and merit pay raises, Ozzie is promoted to the position of supervisor of
golf-cart maintenance at three of Players’s courses. Five years later, a new employee,
Quentin, is hired to oversee operations at all ten of Players’s courses. Quentin demotes
Ozzie, who is now over the age of forty, to running only one of the three cart facilities,
and freezes his salary. Quentin demotes five other employees over the age of forty and
places one of Ozzie’s former facilities under the supervision of Richie, who is
twenty-three. Ozzie overhears Richie say, “We”re going to have to do away with these
old, senile men.” Less than a year later, Quentin reconsolidates the three cart facilities’
operations under Richie’s charge. Ozzie quits and files a suit against Players for
employment discrimination. Should he prevail? Explain.
Firing a worker who refuses to perform an illegal act violates public policy.
An action may be legal and ethical.
Race can be a bona fide occupational qualification.
Only a foreseeable intervening event can break the connection between a wrongful act
and an injury to another.
Ethics is concerned with the fairness or justness of an action.
A party who uses the benefits of a contract before paying for them commits usury.
A signature can consist of initials signed by a party.
A delegation relieves the party making it of the obligation to perform.
Most advertisements”this property for sale”are offers.
The measure of damages for breach of a construction contract depends on which party
breaches and when.