Global Services Corporation engages in trade practices that may violate antitrust law.
The Federal Trade Commission has the power to act against unfair trade practices under
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no law.
Kirsten receives unsolicited merchandise in the mail. Kirsten
a. may keep the merchandise without any obligation to the sender.
b. must return the merchandise within five days to avoid payment.
c. must return the merchandise within fifteen days to avoid payment.
d. must return the merchandise within thirty days to avoid payment.
Minerva, an accountant, convinces her client Ozzie to invest in Idle Schemes, Ltd., a
business with little potential. When Ozzie learns the truth, he
a. can do nothing.
b. may enforce the contract but cannot rescind it.
c. may rescind the contract but cannot enforce it.
d. may enforce the contract or rescind it.
Serenity City enacts an ordinance that bans the use of ‘sound amplifying systems” on
public streets. Tyler wants to campaign for a seat on the city council by broadcasting his
message through speakers mounted on a truck. In Tyler’s suit against the city, a court
would likely hold the ordinance 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 national interests.
RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment
Company copies the design without RiteMade’s permission. Steel’s conduct is
actionable provided
a. consumers are confused.
b. Steel’s conduct is intentional.
c. Steel’s conduct reduces the value of RiteMade’s design.
d. RiteMade’s design is patented.
Jim files a financing statement giving notice to the public that he has a secured interest
in collateral belonging to Phil, who is the debtor named in the statement. The financing
statement is referred to as the
a. UCC-1 form.
b. UCC Collateral form.
c. UCC-2 form.
d. security interest.
Land Sales Company insures its real and personal property, as well as the lives of its
key employees, to protect its financial interest should some event undermine its
security. This is
a. risk management.
b. risk pooling.
c. risky.
d. risqu.
North Mining Company and South Excavation Company agree to abide by the
decisions of East Coast Financial Corporation as to their respective levels of
production, markets, and prices, effectively reducing competition and increasing profits.
This is most likely
a. a common, legal, time-honored type of business arrangement.
b. an illegal restraint on trade.
c. an innovative, legally efficient approach to doing business.
d. an outdated, but legal business trust.
Ruff Games, Inc., wishes to acquire a controlling interest in Smart Toy Company by
buying its stock. Smart Toy is
a. an alien corporation.
b. an acquiring corporation.
c. a receiver.
d. a target corporation.
Roy’s Chick”n Shack orders chicken from Standard Food Supplier, but Standard does
not deliver. Roy’s will probably be unable to enforce the agreement if the parties
a. did not limit the duration of the deal.
b. did not specify a payment term.
c. did not specify a quantity term.
d. have not begun to perform.
Loni delivers her Mazda to be repaired at Nile’s Body Shop. Loni agrees to pay cash.
Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she
pays. This is
a. a judicial lien.
b. a mechanic’s lien.
c. an artisan’s lien.
d. a violation of most states’ laws.
Cold Stuf, Inc., makes snowboards, which it sells to Deep Freeze Sports Store (DFS).
DFS sells Cold Stuf boards to consumers, including Ed. Ed is injured while using the
board. In a product liability suit based on strict liability, Ed may recover from
a. Cold Stuf only.
b. Cold Stuf or DFS.
c. DFS only.
d. no one.
Dissembly Corporation requires consumers to sign contracts with unconscionable terms
or Dissembly, which has few competitors, will not do business with them. Dissembly
can normally obtain a court order to enforce
a. a covenant not to compete.
b. an adhesion contract.
c. an exculpatory clause.
d. none of the choices.
Ramblin” Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for
$1 per shoe. When the market price decreases to 50 cents per shoe, Ramblin” refuses to
go through with the deal. Blacksmith can recover
a. $1,500.
b. $1,000.
c. $500.
d. $0.
Cherry and Basil are minors who marry each other. Their minority status may be
terminated under the laws of
a. all states.
b. most states.
c. some states.
d. no states.
Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth wishes to
terminate his tenancy. 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.
Helen misses several payments on her mortgage loan and Big Town Bank, Helen’s
lender, decides to initiate a foreclosure on Helen’s property. Big Town Bank must first
a. record a notice of default.
b. record a notice of sale.
c. request a deficiency judgment.
d. record an acceleration clause.
Dipsy Products, Inc., and Dangly Sales Corporation 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 does not involve e-commerce.
c. only the part of the contract that involves e-signatures.
d. the entire contract.
Julia, the head executive of Fine Woolen Sweaters, Inc., is a committed Christian who
strongly adheres to the Ten Commandments. One of Julia’s employees is found to be
stealing sweaters and giving them to a local homeless shelter. Julia is likely to
a. punish the employee for stealing even though the employee’s motive was benevolent.
b. view the employee’s actions as justified because the employee was clothing the poor.
c. contribute more sweaters to the homeless shelter.
d. gently reprimand the employee without suggesting that the employee’s actions were
unethical.
Noni and Myra enter into a contract for a sale of clarinets and other wind instruments.
Noni delivers, but Myra does not pay. Noni can normally recover as damages the
difference between
a. any loss avoided and any profit gained.
b. the actual price and the hoped-for price.
c. the contract price and the market price.
d. the current prices in the parties’ locations.
Roy and Sheila are parties to a contract. They subsequently agree that Tony should take
Roy’s place and assume all of his rights and duties under the contract. This is
a. a novation.
b. an accord and satisfaction.
c. an assignment.
d. a modification.
Jackie distributes a handbill among her neighbors accusing one of themKedof being a
convicted sex offender. The statement is defamatory if
a. a neighbor repeats it.
b. Ked suffers emotional distress.
c. the statement is true.
d. the statement is false.
To acquire the ownership of a mountain cabin by adverse possession, Cody must
occupy the cabin exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
b. until the owner files a suit.
c. without the owner’s knowledge.
d. with the state’s permission.
Elvin fraudulently induces Frank, a consumer, to sign a promissory note to buy a
speedboat. Elvin sells the note to Gaston, who takes it for value, in good faith, and
without knowledge of the fraud. With respect to the defense against payment on the
note to Elvin, Frank can
a. assert this defense against Gaston.
b. file for a property exemption.
c. exercise the right of subrogation.
d. obtain a deficiency judgment.
Elizabeth buys a car from Silas, who is 16 years old. Elizabeth then wants to sell the car
to her neighbor, John. Elizabeth’s title to the car is
a. valid.
b. voidable.
c. void.
d. good.
Jack and Jill, citizens of Montana, are involved in a case related to the adoption of their
child. The Montana state courts
a. have concurrent jurisdiction with federal courts over this case.
b. have original jurisdiction over this case.
c. have exclusive jurisdiction over this case.
d. do not have jurisdiction for over case.
Travis sends Una a link to a purported e-birthday card that when clicked on downloads
software to her computer to record her keystrokes and send the data to Travis. He uses
the data to obtain her personal information and access her financial resources. This is
a. identity theft.
b. cyberterrorism.
c. entrapment.
d. no crime.
The doctrine of sovereign immunity cannot immunize a foreign nation from the
jurisdiction of U.S. courts.
Future goods are goods that are not both existing and identified to the contract.
Loans are usually viewed as necessaries if they are obtained for the purpose of
purchasing other necessaries, such as food.
If a promise is made, it will be enforced.
The Fourteenth Amendment guarantees a right to due process of law.
Judicial review of administrative agency actions is automatic.
In cyberspace, trademarks are often called cyber marks.
Andy leases to Burgertown Franchise Corporation a 10,000 square-foot building under
a written lease with a twenty-year term, rent payable annually. The lease includes a
clause stating that Burgertown is responsible for making all necessary repairs, including
rebuilding the structure after its destruction by any cause beyond Andy’s control. The
lease does not include a clause concerning its assignment. One day after the tenth rental
payment, Burgertown, without Andy’s knowledge or consent, assigns its interest in the
lease to Chicken Hut Restaurants, Inc. Meanwhile, Andy dies and Dotty inherits Andy’s
interest in the building. Without the knowledge or consent of either Burgertown or
Chicken Hut, Dotty sells the building to Earnest Investments, Inc. The next month, the
building is destroyed in the flood of a nearby river. Burgertown rebuilds it and files a
suit against Earnest for the expense. Earnest responds that the lease has terminated. Is
Earnest correct? If so, when did the lease terminate? If not, is Earnest liable for the cost
of rebuilding the structure? Why or why not?
An offer does NOT need to be communicated to the offeree to become effective.
A debtor is the person in whose favor there is a security interest.
A price-fixing agreement that is reasonable does not violate antitrust law.
Lenders may advertise a loan as a fixed-rate loan even if its rate or payment amounts
will change.
To commit an intentional tort, one person must intend to harm a certain person.
A continuation statement is effective only if it is filed within six months before the
expiration of a financing statement.
The doctrine of promissory estoppel does not apply if there exists a clear and definite
promise.
Focusing on a firm’s short-term profits without considering the company’s long-term
needs may be acting unethically.
An appraisal right is available only when a state statute specifically provides for it.
A motion for a directed verdict is also known as a motion for judgment as a matter of
law.
The First Amendment protects defamatory speech.