Vivian and Rob enter into a contract under which Vivian will clean Rob’s house every
week for a year. Under the E-SIGN Act, in order for e-signatures to be enforceable for
this contract
a. Vivian and Rob must both agree to use e-signatures.
b. only Vivian needs to agree to use e-signatures.
c. only Rob needs to agree to use e-signatures.
d. Vivian and Rob must both register their e-signatures with the federal government.
Julia orders twelve violins for her music shop from Notable Notes Instrument
Manufacturers. The sale is made on credit. Julia orders the violins on May 1, Notable
Notes ships the violins on May 2, and Julia receives the violins on May 4. Julia sells all
the violins by June 15. Julia’s credit period most likely began on
a. May 1.
b. May 2.
c. May 4.
d. June 15.
Laredo advertises a reward for the return of his lost dog. Mikayla, who does not know
of the reward, finds and returns the dog. Mikayla cannot recover the reward, because
she
a. did not confer a benefit on Laredo by returning the dog.
b. did not know of the reward when she found and returned the dog.
c. does not need the money.
d. returned the dog.
George and James create an agency relationship to facilitate the sale of illegal narcotics.
This agency relationship
a. is illegal.
b. is legal.
c. will be recognized by some states, but not others.
d. can exist, but will be subject to sanctions for illegal activity.
Imperio Caffeine Corporation makes and sells coffee under a variety of brand names.
Imperio wants to merge with Java Company, its main competitor. In weighing a
challenge to the deal, a court looks at the relevant product market. This most likely
includes coffee and
a. no other products.
b. products that are not identical but are related, such as spin-offs.
c. products that are sometimes substituted for coffee.
d. products with identical attributes only.
Shale Oil Processing Corporation combines its assets and debts with those of Tierra
Frakking Company to form United Resources, Inc. Shale and Tierra cease to exist.
The formation of United Resources is
a. a consolidation.
b. a merger.
c. a purchase of assets.
d. a share exchange.
GR8 Marketing Company and Brainfreeze Tunes, Inc., sign a document that states GR8
agrees to create a marketing campaign for Brainfreeze, which agrees to pay GR8 for the
service. GR8 and Brainfreeze have
a. an executed contract.
b. an express contract.
c. an implied contract.
d. a quasi contract.
Region Construction Company has a right to drive its trucks across Staple Business,
Inc.’s property, which is adjacent to Region’s office. This right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Deborah files a petition in bankruptcy. One of the goals of bankruptcy law with respect
to a debtor who has “gotten in over his head” is to
a. encourage the continued use of credit to borrow funds.
b. ensure that co-debtors will continue to guarantee loans.
c. provide s debtor by giving him or her a fresh start without creditors’ claims.
d. shield assets from creditors.
Clive works for Digby Excavation Corporation. While operating a backhoe, Clive
suffers an injury. Clive will be compensated under state workers’ compensation laws
only if
a. he does not have health insurance.
b. he is completely disabled.
c. his injury was accidental.
d. his injury was intentional.
Andy knows nothing about horses. Peter, an expert horse trainer, knows that a certain
horse has no talent and is not likely to win any competitions. Peter convinces Andy to
buy the horse for $500,000 by assuring him that it has great talent. The horse turns out
to have no talent and never wins any competitions. Andy can most likely recover
damages based on
a. fraud.
b. mistake.
c. undue influence.
d. none of the choices.
A court awards a judgment to Alice, who is the creditor, against Ada, who is the debtor.
After the judgment, Alice requests a court order to seize Ada’s property to ensure that
the judgment will be collectible. This is
a. a judicial lien.
b. a writ of attachment.
c. a writ of execution.
d. a violation of most state laws.
Paradise Footwear buys a franchise from Reliant Athletic Shoes Inc. This relationship,
like all other franchise relationships, is governed by
a. contract law.
b. no law.
c. the Franchise Disclosure Document, or FDD.
d. the rules of the National Collegiate Athletic Association.
Jackson owns an antiques store. He sells a grand piano to Fred for $5,000, a old
jukebox to Sam for $499, an antebellum chest of drawers to Josephine for $659 and a
gold ring to Wendy for $999. Which of Jackson’s sales must be in writing to be
enforceable?
a. The grand piano only
b. The grand piano and the gold ring only
c. The grand piano, the chest of drawers and the gold ring only
d. The grand piano, the chest of drawers, the jukebox and the gold ring
Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions,
but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay. If
Teatro says it is asking for the extra $250,000 because ordinary business expenses have
increased, the agreement is
a. enforceable as the consideration is past.
b. enforceable because of unforeseen difficulties.
c. unenforceable as an illusory promise.
d. unenforceable due to the preexisting duty rule.
Duran applies to EZ Credit Mortgage Company for $100,000 to buy a home. EZ Credit
steers Duran toward an adjustable-rate mortgage even though he qualifies for a
fixed-rate mortgage. This is
a. a short sale.
b a subprime mortgage.
c. loan flipping.
d. steering and targeting.
Regional Steel, Inc., and Overland Transport Company enter into a contract. Smooth
Oil Corporation, which will indirectly benefit from the deal, is prevented from having
rights under the contract by the principle of
a. assignment.
b. delegation.
c. privity.
d. vesting.
Bret obtains a fire insurance policy on his rental house with Continental Insurance
Company. Like all insurance, this policy is an arrangement for
a. avoiding the assumption of responsibility.
b. predicting a potential loss based on unknown factors.
c. shifting the imposition of liability.
d. transferring and allocating risk.
Beth, who has a disability, is an employee of Corporate Office Company (COC). After
the installation of new doors on COC’s building, Beth finds it nearly impossible to get
in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who
does not have a disability.
To succeed with a claim against COC under the Americans with Disabilities Act, Beth
will have to show that
a. Beth consistently met the essential requirements of her job.
b. COC refused to make reasonable accommodation for Beth.
c. Dian is unqualified for Beth’s position.
d. the doors were installed as an act of intentional discrimination.
John is an art dealer with special expertise in modern art. Rachel comes to John’s
gallery to purchase a modern art painting as an investment. John shows her several
paintings that he says are high quality and will increase in value in the next ten years.
John’s statement is
a. an express warranty.
b. an implied warranty.
c. an opinion.
d. puffery.
Damian owns a pick-up truck and a motorcycle. He sells the motorcycle to Eden for
$10,000. Eden pays for the cycle with a check, knowing that she had insufficient funds
in her account to cover the amount. A week later, Damian files a petition in bankruptcy
for relief through a liquidation.
Regarding the sale of the cycle, the bankruptcy trustee can
a. cancel it as a fraudulent transfer.
b. cancel it as a voidable preference.
c. not cancel it or sue to recover the price because it occurred before Damian filed his
petition in bankruptcy.
d. not cancel it, but can sue Eden to recover the price.
Clarice pays Damien $10,000 to design an ad campaign for her Sweetwater Coffee
Stand chain. The next day, Damien tells Clarice that he has accepted a job in New York
and cannot design her campaign. She files a suit against Damien. As compensatory
damages, she can recover
a. $100,000.
b. $10,000.
c. $1,000.
d. $0.
Farm2Fork, LLC, is a limited liability company. Rather than distribute its profits to its
members, Energy wants to reinvest the profits in its business. For this reason, Energy
may prefer to be taxed as
a. a corporation.
b. a partnership.
c. a sole proprietorship.
d. a business trust.
Network Industries, Inc., wants to monitor its employees’ electronic communications.
To avoid liability under laws related to employee monitoring, Network should announce
the monitoring to
a. no one.
b. the employees.
c. the government.
d. the public generally.
Li”l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has
registered with the government. Under federal trademark law, LCC
a. can register the mark for protection.
b. cannot register a mark that has been used in commerce.
c. has committed trademark infringement.
d. must put off registration until the mark is out of use for six months.
Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently
agree that High Riders Inc. should take Gliding Light’s place and assume all of its rights
and duties under the contract. This is
a. a mutual agreement to rescind.
b. an accord and satisfaction.
c. a novation.
d. a settlement agreement.
Leona enters into a contract with Munchie Bakery to cater a sales conference. When the
conference is postponed indefinitely, Leona asks a court to cancel the contract and
return the parties to the positions that they held before its formation. This request
involves
a. specific performance.
b. an injunction.
c. rescission.
d. an action that the court cannot order.
Gerald files a bankruptcy petition. The resulting automatic stay will apply to Gerald’s
a. alimony debts.
b. child-support debts.
c. spousal maintenance debts.
d. car payment debts.
Maple Products Corporation is a public company, which New Hampshire regulates and
in which Orin invests. The Sarbanes-Oxley Act of 2002 introduced direct federal
corporate governance requirements to
a. public companies.
b. private investors.
c. state regulators.
d. none of these choices.
Community Trust Bank provides Devlin with a mortgage to buy a home. The rate of
interest is fixed for seven years. At the end of that period, a large payment for the entire
balance of the mortgage loan is due. This payment is
a. a balloon payment.
b. a short sale.
c. an escrow account.
d. a violation of the law.
A price-fixing agreement is an agreement by two or more sellers to boycott a particular
person or firm.
An action in strict product liability requires that the product not be in a defective
condition when the defendant sells it.
Individual states may pass their own right-to-work laws.
Generally, stock offerings that involve a small dollar amount are exempt from the
registration requirement.
The Americans with Disabilities Act of 1990 requires that employers accommodate the
needs of applicants or employees with disabilities who are not otherwise qualified for
the work
The UCC requires that the mirror image rule be followed for all acceptances.
Gaining unauthorized access to an electronic fund transfer system is a felony.
U.S. district courts have original jurisdiction in federal matters.
Title VII of the Civil Rights Act of 1964 does not apply to employers with only five
employees.
Personal defenses are used to avoid payment to an ordinary holder of a negotiable
instrument, but not to an HDC or a holder through an HDC.
Ethics is concerned with the fairness or justness of an action.
Arbitration is always legally binding.
Until the time for performance under a contract expires, the seller has a right to cure.
Proximate cause exists when the connection between an act and an injury is strong
enough to justify imposing liability.
When a landlord sells leased premises to a third party, any existing leases terminate
automatically.
Once a writ of execution has been issued, the debtor cannot pay the judgment and
redeem the property until after a sale has taken place.
Some states require franchisors to provide presale disclosures to prospective
franchisees.
A surety can never assert fraud as a defense.
Any contract to commit a crime is in violation of a statute and thus is unenforceable.
Misrepresentation of a material fact cannot occur through conduct alone.