Real World Sports Corporation (RWSC) is a U.S. firm with a workplace in Switzerland.
Generally, RWSC must abide by U.S. anti-discrimination laws in Switzerland
a. under any circumstances.
b. under no circumstances.
c. unless to do so would contravene the cultural norms of Switzerland.
d. unless to do so would violate the law of Switzerland.
Recovery in a product liability case may be limited when it can be shown that the
plaintiff misused the product.
a. True
b. False
Go!isa handheld video game featuring races between imaginary creatures and vehicles.
The graphics used in the game are protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.
CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register
“calltalk as its second-level domain. Later, CallTalks less successful competitor,
CellTalk Company, chooses to use and register “caltalk (an intentional misspelling of
“calltalk) as its second-level domain. Still later, Call&Talk, Inc., uses the domain name
“callltalk (also a deliberate misspelling of “calltalk) without CallTalks authorization, to
sell pornographic phone conversations.
Refer to Fact Pattern 6-2. Call&Talks use of the domain name “callltalk, without
CallTalks authorization, to sell pornographic phone conversations, is
a. goodwill.
b. fair use.
c. a license.
d. trademark dilution.
The Anticybersquatting Consumer Protection Act applies to most, but not all, domain
name registrations of trademarks.
a. True
b. False
A void contract is enforceable if it is in writing.
a. True
b. False
Catalina promises high returns to Darby and other investors, who then agree to trust
their funds to Catalina. She uses these funds to pay previous investors. This is
a. a Ponzi scheme.
b. a stock option.
c. an accredited investor.
d. a tombstone ad.
Holiday Sales Company and Global Distributors, Inc., enter into an express contract for
the delivery of imported specialty goods. In interpreting this contract, the highest
priority is given to
a. the parties prior dealing.
b. the trade usage in the parties industry.
c. the parties course of performance.
d. the express contract terms.
Marco and Fred enter into a contract for the sale of Marcos apartment for which Fred
agrees to pay him $100,000. Marco cannot prohibit Fred from transfering his right to
the ownership of the apartment because such a prohibition is
a. against public policy.
b. immoral.
c. unconscionable.
d. a crime.
If it can be shown that a trespass to land was warranted, a complete defense exists.
a. True
b. False
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 weeks notice.
b. at least two weeks notice.
c. at least thirty days notice.
d. at least sixty days notice.
A contract for the sale of commercial realty should indicate what items are included in
the sale.
a. True
b. False
Social media posts have no uses in litigation.
a. True
b. False
An independent contractor is an employee.
a. True
b. False
Corporations can be good citizens by promoting goals that society deems worthwhile.
a. True
b. False
Robert is selling his used lawnmower. He wants to disclaim any implied warranties.
Robert
a. cannot disclaim implied warranties.
b. should include a written disclaimer that the lawnmower is being sold”as is.
c. should orally disclose all known faults of the lawnmower.
d. should include a written warranty of title.
Alf rents an apartment. The lease does not specify how long it will last, but it does
specify that Alf must pay rent every month. Alfs tenancy is
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a tenancy at will.
d. not a tenancy.
A member of a limited liability company (LLC) has the power and the right to
dissociate from the LLC at any time.
a. True
b. False
If there is no limited liability company (LLC) agreement covering a topic under dispute,
the state LLC statute will govern the outcome.
a. True
b. False
A security interest cannot be perfected without the filing of a financing statement.
a. True
b. False
In the following situations, two parties claim the same goods. Who is most likely to
prevail in each circumstance? Explain.
(a) Olan steals Phils television set and sells it to Quincy, an innocent purchaser, for
value. Phil learns Quincy has the set and demands its return.
(b) Riley takes his television set for repair to Slick, a merchant who sells new and used
television sets. By accident, one of Slicks employees sells the set to Tuna, an innocent
purchaser-customer, who takes possession. Riley wants his set back from Tuna.
Bayou Development Corporation (BDC) hiresGulfview Brokerage Associates to sell the
condominiums in a building at BDCs coastal resort. The agency will terminate
a. after the condos have been sold.
b. if the prices of the condos must be reduced to sell them
c. once BDC obtains insurance to cover the property.
d. when BDC pays Gulfview its first commission.
William goes to Saddle Up Stables in the middle of the night when no one is around and
takes five saddles. Williams crime is
a. forgery.
b. larceny.
c. robbery.
d. embezzlement.
Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park
Carousel. Before either party begins to perform, they agree to cancel their deal. This is
a. substantial performance.
b. mutual rescission.
c. accord and satisfaction.
d. novation.
Once the seller has tendered delivery, the buyer is obligated to accept the goods and pay
for them.
a. True
b. False
Unless otherwise agreed, inspection of goods can take place at any reasonable place and
time and in any reasonable manner.
a. True
b. False
According to the Foreign Sovereign Immunities Act, a foreign state that waived its
immunity by implication is subject to the jurisdiction of the U.S. courts.
a. True
b. False
Discharge in bankruptcy is no defense on any instrument regardless of the status of the
holder.
a. True
b. False
James is in an art gallery when Mitch, who has no special art expertise, points to a
painting and says, “That artist is so good. That piece will be worth a fortune in a few
years! James buys the painting, which does not turn out to be valuable. James tries to
return the painting and recover his purchase price. A court will
a. order the art gallery to pay James the full purchase price.
b. orderMitch to pay James the full purchase price.
c. enforce the contract between James and the art gallery.
d. enforce the contract between James and the art gallery, but order Mitch to pay James
the full purchase price.
Katie and Linda enter into a contract for Katie to buy Lindas house in which there are
several terms that are subject to more than one reasonable interpretation. If Katie and
Linda attach materially different meanings to a term
a. only Katie will be able to void the contract.
b. only Linda will be able to void the contract.
c. neither Katie nor Linda will be able to void the contract.
d. either Katie or Linda will be able to void the contract.
Liens usually do not take priority over other claims against the same property.
a. True
b. False
Riley, an engineer for Shur-2-Gro Seed Corporation, learns that Shur-2-Gro has
developed a corn hybrid to triple the output of any farm. Riley buys 20,000 shares of
Shur-2-Gro stock. He tells Tess, who buys 15,000 shares. After the new hybrid is
announced publicly, the price of Shur-2-Gro stock in-creases. Riley and Tess sell their
shares for a profit. Under the Securities Exchange Act of 1934, liability may be
imposed on
a. none of these parties.
b. Riley and Tess only.
c. Riley only.
d. Riley, Shur-2-Gro, and Tess.
A forged indorsement does not transfer title.
a. True
b. False
Chris promises Dina $40,000 if she graduates from Eagle College. Dina enrolls in
Eagle, attends full-time for four years, and graduates. When Dina asks Chris for
$40,000, Chris says, “I dont re-member promising you $40,000. But if there was a
promise, its not en-forceable, because we didnt bargain for it. And even if there was a
prom-ise that would other-wise be enforceable, I revoke it now. Can Dina en-force
Chriss “prom-ise? Why or why not?
College Copy Shop (CCS) compiles, copies, and sells reading materials to students. The
compilations are prepared on the instructions of professors, who indicate which parts of
which publications should be included for their students. The copied materials include
texts published by Deep Topics, Inc. CCS does not obtain the permission of Deep
Topics, or any of the other original publishers of the copied materials, and does not pay
royalties on the sales of the compilations. Deep Topics and others file a suit against
CCS, alleging infringement of their intellectual property rights. Which type of
intellectual property is involved in this situation? What is CCSs likely defense? How is
a court most likely to rule? Explain.
Cutter Company makes and sells table saws, which are designed to be safe if used
properly. Erin buys a Cutter saw and lends it to her neighbor Frank. To reach a toolbox
on a high shelf in his garage, Frank props the saw at an angle against a cabinet and
climbs onto the saw. Frank loses his footing, slips off the saw, falls on the blade, and is
injured. He files a product liability suit against Cutter, on the ground of negligence. On
what basis could the maker prevail?
Mitch is a director and officer of Numero Uno, Inc. Mitch makes a market-ing decision
that results in a dramatic decrease in profits for Numero Uno and its shareholders. The
shareholders accuse Mitch of breaching his fiduci-ary duty to the corporation. What is
Mitchs best defense against this ac-cu-sation? Later, the Numero Uno board considers a
resolution for the firm to compete with One-of-a-Kind Corporation. Mitch is a director
and shareholder of One-of-a-Kind. What is Mitchs responsibility in this situation?
Cody signs and returns a letter from Dora, referring to her sale of the Bar-D Ranch and
its price. When Cody attempts to complete the deal, Dora re-fuses, claiming that they
have no con-tract. Cody claims they do. What standard determines whether these parties
have a contract?
In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County
Investment Corporation that the office furniture is in-cluded. The contract says nothing
about office furniture, but does state, “This document supersedes all oral promises
relating to the sale. Is the furniture part of the sale? Why or why not?
During a storm on Blue Lake, a boat sinks, but its owner Cappy survives. Cappy plans
to return to the site of wreck to salvage its equipment and his possessions, but he
delays. Meanwhile, Dick, an amateur diver, discovers the wreck and strips it clean of
useful items. Cappy learns of the recovery and files a suit against Dick, claiming that
the items are his. Dick responds that the sunken boat was abandoned and therefore he
has good title to everything to which he took possession. What is the court likely to
rule, and why?
Sara needs $1,500 to buy textbooks and other school supplies. Tomas agrees to loan
Sara $1,500, accepting as collateral Saras car. They put their agreement in writing and
sign it. Sara keeps possession of the car. Does Tomas have an enforceable security
interest? How can Tomas let other creditors know of his interest in the car?
Joy steals a check from Kyle, forges his signature, and transfers the check to Loco
Loans, Inc., for value. Unaware that the signature is not Kyles, Loco Loans presents the
check to Metro Bank, the drawee, which cashes the check. Kyle discovers the forgery
and insists that Metro recredit his account. Can Metro refuse? If not, from whom can
the bank recover?
Sophie is the president of Tasty Foods Corporation, a wholesale grocery company. An
inspection by Uri, a government agent, uncovers unsani-tary conditions in the
companys ware-house caused by Vic, a Tasty Foods employee. Will, a Tasty Foods vice
president, assures Uri that the situation will be corrected, but a later inspection finds
that the warehouse is still unsanitary. Sophie knows nothing about any of this. Can
Tasty Foods be convicted of a crime in these circumstances? Can Sophie be held
personally liable?
Beta Software Company and Gamma Sales Corporation agree to follow a certain
security procedure in transacting their business online. Beta fails to follow the
procedure, however. Due to this failure, Beta does not detect an error in the deal, which
will have a negative impact on Gammas interest in the deal. Can Gamma avoid the
effect of this error? How?
Jai owns an orchard behind Keys house and property. The only access to the orchard is
Keys driveway, which Jai uses to get to her orchard. Jai sells the orchard to Laurentz.
Can Laurentz use the right-of-way across Keys property?
Eppie gives a check to Fund Investments to buy 100 shares of stock in GR8 Tech
Corporation for Eppie. The price of the shares is constantly fluctuating. Fund
Investments asks Eppie to leave the amount of the check blank and allow it to fill in the
price when making the purchase. Eppie agrees. Fund Investments buys the stock when
the price is $4,000, but fills in the check for $5,000. The check is negotiated as payment
for a $5,000 debt to Hasty Accounting Services, which takes the check in good faith and
without no-tice of Fund Investments act. Hasty later learns that Fund Investments was
not author-ized to fill in the check for $1,000 over the price. Is Hasty an HDC? If so, for
how much?
Bowie, a certified public accountant, prepares and certifies Candy Products
Corporations financial statements. These statements are in-cluded in Candys
registration statement filed with the Securities and Exchange Commission before
Candys offering of securities. Dona buys a security covered by the registration
statement. Based on this transaction, Dona files a suit against Bowie under Section 11
of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.
To succeed in the suit, what must Dona prove? Bowie responds that Dona was not in
priv-ity with him and that even if she had been in privity, she cannot prove his lack of
due diligence. Can Bowie prevail on these grounds? Why or why not?
Dieters will provides for a distribution of his assets on his death. Who will “distribute
Dieters property, and what are the steps involved?