Vieux Carr S.A., a French firm, imports its goods into the United States and offers those
goods for sale at “less than fair value.” “Fair value” is the price of
a. comparable goods in a select “basket” of other countries.
b. Vieux Carr’s goods in France.
c. Vieux Carr’s goods in the United States.
d. Vieux Carr’s goods on the world market.
Colleen is intoxicated, but still mentally capable of understanding the consequences of
her actions when she signs a contract to sell the rights to her latest phone app design to
Addie. The contract is
a. enforceable only if Colleen does not attempt to disaffirm it.
b. enforceable even if Colleen attempts to disaffirm it.
c. unenforceable if Addie attempts to disaffirm it.
d. enforceable only if Addie does not attempt to disaffirm it.
Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for a
a. bilateral contract.
b. unilateral contract.
c. void contract.
d. unenforceable contract.
Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave
Fabricated’s parking lot for which Fabricated agrees to pay. The requirements of this,
and any other, contract do not include
a. consideration.
b. capacity.
c. legality.
d. practicality.
Bridey defends against a suit for breach of contract by Continental Mortgage Company
by claiming that their deala mortgage loan secured by Bridey’s purchase of a housewas
unfair because the consideration for their contract was inadequate.
The court is most likely to evaluate the adequacy of consideration if
a. one of the parties claims that they entered into an unwise contract.
b. something exchanged is not of direct economic or financial value.
c. the items exchanged are of unequal value.
d. there is a large disparity in the amount or value of the consideration exchanged.
Equipment Rentals Corporation (ERC) agrees to lease two backhoes to Dig & Fill
Construction, Inc. Before any interest in the backhoes can pass from ERC to Dig & Fill,
they must be
a. in existence and identified as the goods in the contract.
b. in ERC’s physical possession.
c. in Dig & Fill’s physical possession.
d. listed in a document of title and filed in the appropriate state office.
Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are
distributed to authorized dealers, including Macho Motors, Inc. Macho operates
dealerships in several locations. Lightning imposes restrictions on Macho to limit the
areas in which they sell the bikes and insulate other dealers from direct competition.
This is
a. a territorial restriction.
b. a resale price maintenance agreement.
c. a refusal to deal.
d. a price-fixing agreement.
At 1 a.m., on the sidewalk in front of Ace Credit Corporation, which is closed, Ben
buys a $500 promissory note for $50 from Curt. When presented with Ben’s demand for
payment, Diann, the maker of the note, could successfully claim that Ben
a. acquired the note with notice that it was overdue.
b. did not acquire the instrument in good faith.
c. did not give value for the instrument.
d. none of the choices.
Miranda orally promises Nicky that she will buy his fishing trawler for $20,000. If
Nicky acts in reliance on this promise, under the doctrine of promissory estoppel, the
transaction is enforceable by
a. either party.
b. Miranda only.
c. neither party.
d. Nicky only.
Jason contracts with Golf Carts Unlimited, Inc. to buy five golf carts. The contract lists
the five carts as GC001, GC002, GC003, GC004, GC005. Identification
a. requires that Jason verify his identity to take possession of the carts.
b. has taken place.
c. cannot take place until the contract is reviewed by a court.
d. will take place only when Jason pays for the golf carts.
James buys a copy of the book Downpour. Later, after reading the book, James sells it
to his sister. Under the first sale doctrine, James’s sale of the book is
a. legal.
b. legal only if the copyright has expired.
c. legal only if he sells it for less than he paid for it.
d. illegal.
Olinka is a registered agent for Pads, Pods & Phones, Inc., which incorporated in
California. As a registered agent, Olinka
a. agreed to buy stock in Pads, Pods & Phones before it existed.
b. applied to California on behalf of Pads, Pods & Phones to obtain its corporate
charter.
c. represents Pads, Pods & Phones as a marketing agent.
d. receives legal documents on behalf of Pads, Pods & Phones.
Before adopting new regulations to govern Internet-based phone services, the Federal
Communications Commission may not
a. hold hearings to acquire facts pertinent to the proposed rules.
b. ignore the Administrative Procedure Act to streamline proceedings.
c. order manufacturers to provide certain documents.
d. solicit testimony from interest groups and consumers.
Eton files a suit in a federal district court against Florida, alleging employment
discrimination under the Age Discrimination in Employment Act of 1967. The state
asks the court to dismiss the suit. The court is most likely to rule that
a. the state is immune from the suit.
b. the suit can proceed.
c. Eton is immune from any defense the state might offer.
d. the court is immune from such request.
Lucy is a limited partner in Metro Contractors, a limited partnership, which cannot pay
its debts. Lucy is personally liable for the debts
a. in proportion to the number of partners in the firm.
b. to no extent.
c. to the extent of her capital contribution.
d. to the full extent.
A federal law regarding the labeling of pesticides directly conflicts with a state law. The
state law will be rendered invalid due to the
a. the supremacy clause.
b. the commerce clause.
c. the federal spending power.
d. the First Amendment.
Erica is sixty-year-old woman with cerebral palsy. Erica is a member of
a. one protected class.
b. two protected classes.
c. three protected classes.
d. no protected classes.
Julia is a U.S. citizen. She establishes a website that posts threatening messages about
celebrities. Her website is
a. protected by the First Amendment.
b. not protected by the First Amendment.
c. protected by the Fifth Amendment.
d. protected by the Tenth Amendment.
Kit loses her suit against Lou in a Minnesota state trial court. Kit appeals to the state
court of appeals and loses again. Kit would appeal next to
a. a U.S. district court.
b. the Minnesota Supreme Court.
c. the United States Supreme Court.
d. the U.S. Court of Appeals for the Eighth Circuit.
The Federal Aviation Administration uses notice-and-comment rulemaking. The final
rule in such a proceeding is sometimes referred to as
a. a legislative rule.
b. an interpretive rule.
c. an adjudicatory order.
d. an executive edict.
Marta buys a candy bar for $5 and signs a contract for delivery of fresh flowers to her
mother’s nursing home every week for the rest of her mother’s life. She then enters into
a contract to assume George’s debt to FastCars Dealership. Marta receives no personal
benefit from assuming George’s debt. The Statute of Frauds covers
a. the candy purchase only.
b. the candy purchase and the delivery contract only.
c. the contract to assume George’s debt only.
d. the contract to assume George’s debt and the delivery contract only.
In deciding questions of corporate social responsibility, Valley Disposal & Recycling,
Inc., is concerned with
a. how the corporation can best fulfill any ethical duty to society.
b. the effect on corporate profits of ignoring any ethical duty to society.
c. whether the corporation owes any ethical duty to society.
d. all of the choices.
Green River Energy Corporation wants to begin operations that include the discharge of
waste into navigable waters. Under the Clean Water Act, Green River must install
certain equipment
a. after beginning operations.
b. before beginning operations.
c. during operations.
d. only if a regulatory agency challenges the discharge.
Mace copies Nick’s book, Mumbai Monsoon, in its entirety and sells it to Parkland
Books, Inc., without Nick’s permission. Parkland publishes it under Mace’s name. This
is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.
Fancy’s Feedlot orders one hundred sacks of cattle feed from Bovine Feeders, Inc. Each
bag has the words “Twenty percent protein” printed on the front. This is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
Pastry Dough, Inc., sends its catalogue to Octavio and includes a “personalized” letter
inviting him to buy any item in it at the advertised price. This is
a. an offer because of the “personalized” letter.
b. an offer because there is no room for price negotiation.
c. an offer only if Octavio previously bought items from Pastry Dough.
d. not an offer.
Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager
for two years. If Rig breaches the contract, Scott has a duty to
a. do nothing.
b. reduce the damages that Scott might otherwise suffer.
c. rescind the contract with Rig.
d. punish Rig and set an example to deter others from similar acts.
Straitway Company encourages its managers to behave ethically, reasoning that the
employees will take their cues from management. One of the most important ways to
create and maintain an ethical behavior workplace is for management to
a. demonstrate a commitment to ethical decision making.
b. discreetly engage in unethical or illegal acts.
c. look the other way when an employee engages in an unethical act.
d. direct employees to “do as we say, not as we do.”
Genuine Seed Company and Hillside Farmers Cooperative enter into a contract for a
sale of hybrid seeds. Under the perfect tender rule, Genuine Seed must ship or tender
seeds to Hillside that
a. approximately conform to all of the details of the contract.
b. entirely conform to the contract except in one or two details.
c. exactly conform to the contract in every detail.
d. substantially conform to the contract in most details.
Ezra, an accountant, intentionally misstates a material fact to mislead Fruit Packing
Industries, Inc., a client. Fruit Packing justifiably relies on the misstatement to its
detriment. Ezra is most likely liable for
a. actual fraud.
b. constructive fraud.
c. destructive fraud.
d. virtual fraud.
During a union election campaign, Autowerks Repair, Inc., prohibits on-site
solicitations by any party, including Mechanics Union, which is seeking the workers’
unionization. This violates
a. federal labor law.
b. federal elections law.
c. federal employment discrimination law.
d. no federal law.
Genetic Seed Company hires Howie to work on Genetic’s shipping dock, accepting
deliveries and dealing with other companies’ drivers. With respect to Genetic, Howie is
most likely
a. an agent.
b. an independent contractor.
c. a principal.
d. a work for hire.
Fealty Credit Corporation asks its employees to evaluate their actions and get on the
ethical business decision-making “bandwagon.” Guidelines for judging individual
actions most likely include all of the following except
a. an individual’s conscience.
b. business rules and procedures.
c. loopholes in the law or company policies.
d. promises to others.
A testator is a decedent who dies without a will.
Identity theft occurs when a wrongdoer steals another’s form of identification and uses
it to access the victim’s financial resources.
Best Products, Inc., hires Cole to develop and implement an e-commerce strategy for
marketing Best’s products. Cole signs a contract that includes a clause prohibiting him
from competing with Best during and after the employment. Before the strategy is
implemented, Cole resigns from Best’s employ and opens a business to compete with
Best. In Best’s suit against Cole, what is the most important factor the court should
consider in determining whether Cole should be allowed to compete with Best?
Liens usually do not take priority over other claims against the same property.
Every state has a statute that stipulates what types of contracts must be in writing.
A service mark distinguishes products used, or “put into service,” by the government.
The right to cure is the right of a party who tenders nonconforming performance to
correct his or her performance within the contract period.
Falsifying public records is forgery.
In a general partnership, the partners are personally liable for the debts of the
partnership.
In a share exchange, some or all of the shares of one corporation are exchanged for the
shares of another, and both corporations cease to exist.
Corporate directors and officers are insurers of business success.
Misrepresentation of law ordinarily entitles a party to relief from a contract.
A purchase-money security interest in consumer goods is perfected automatically at the
time of a credit sale.
A forged signature is effective as the signature of a drawer to the extent that is
resembles the drawer’s actual signature.
Punitive damages are generally available in contract disputes.
Managers should apply the same ethical standards to themselves and to their
employees.