Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.
Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an
implied warranty of fitness of a particular purpose arises
a. if the buyer is relying on the seller to select suitable goods.
b. if the buyer asks for it.
c. if the seller is a merchant who deals in goods of the kind sold.
d. in conjunction with lease contracts, not sales contracts.
Jason and Katrina work on the loading dock for Longhaul Transport Company. Jason
has a disability. Katrina has seniority. Jason asks for a transfer, which would represent
an accommodation for his disability. Longhaul gives the transfer to Katrina on the basis
of her seniority. Jason files a suit against Longhaul for discrimination on the basis of his
disability. The court is most likely to rule that
a. Katrina’s seniority is a good defense.
b. Jason’s disability is a sufficient basis for relief.
c. Longhaul’s action was a business necessity.
d. Longhaul’s action was a reasonable accommodation.
The basis for India to give effect to the laws and court decisions of the United States is
primarily
a. courtesy and respect.
b. fear and intimidation.
c. admiration and envy.
d. payments of cash and exchanges of property.
Summit Sales Corporation orders goods from OverStock Company. Summit plans to
market the goods to consumers generally. OverStock identifies the goods. Before they
are shipped to Summit, an insurable interest in the goods exists in
a. Summit and OverStock, but not consumers generally.
b. Summit, OverStock, and consumers generally.
c. Summit only.
d. OverStock only.
A petition for a discharge in bankruptcy under Chapter 13 may be filed by
a. Gracie, the sole proprietor of Home Net Services.
b. Internet Portals & Pages, a partnership.
c. World Web Services, Inc., a corporation.
d. Internet Portals & Pages or World Web Services, Inc..
Remote Disposal Company operates a hazardous waste storage facility. Concerned that
there may be a release of chemicals from the site, Remote sells the property to Serene
Developers, Inc. If there is a release, Remote is most likely
a. liable.
b. not liable because the site was sold before the release.
c. not liable because Remote was concerned about the release.
d. not liable because Remote no longer operates the facility.
Geoff serves in a representative capacity for Huck. To accomplish the objectives of this
relationship, Geoff’s authority can be implied
a. by contradiction.
b. by custom.
c. by lack of reason.
d. under no circumstances.
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.
To fall under the Sherman Act, an activity must
a. substantially affect interstate commerce.
b. involve monopolization.
c. promote competition.
d. involve international trade.
Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior
and exterior of Sari’s house. Sari ratifies the contract. Later, Sari tries to rescind the part
of the contract relating to the exterior. This attempt will be
a. partly successful.
b. partly unsuccessful.
c. totally successful.
d. totally unsuccessful.
Chris, a minor, signs a contract to purchase alcoholic beverages for Dine & Drink, his
parents’ restaurant. The contract is
a. valid but may be disaffirmed.
b. valid but may not be disaffirmed.
c. void as a matter of law.
d. void unless it is also signed by Edie, the manager of Dine & Drink.
Steel Tool Company makes and sells tools. One of the tools is believed to be hazardous.
The appropriate government agency may require Steel to
a. export the tool and sell it only abroad.
b. increase the price to cover the cost of any injuries or damage.
c. reduce the price to indicate the hazard to consumers.
d. remove the tool from the market.
Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to ensure that
Flo-Thru’s activities are legal and ethical. The best course for Eden and Flo-Thru is to
act in
a. good faith.
b. ignorance of the law.
c. regard for the firm’s shareholders only.
d. their own self interest.
Chocolate Sundry LLC’s members and managers are Devlin, Effie, and Flavia. After
Devlin’s relationship to the firm ends, Effie and Flavia agree to discontinue the
business. This is
a. illegal.
b. optional.
c. required.
d. wrongful.
On Monday, Michelle deposits in her account at Fiscal Bank a local check for $500.
After 5:00 p.m. on Friday, from these funds, Michelle can withdraw no more than
a. $100.
b. $400.
c. $500.
d. $600.
Ryan, the owner of SuperMart Stores, Inc., adheres to the “principle of rights” theory.
Under this theory, a key factor in determining whether a business decision is ethical is
how that decision affects
a. the right determination under a cost-benefit analysis.
b. the rights of others.
c. the “right” thing to do.
d. the right to make a profit.
Mary is angry with Julia so she waits outside Julia’s house and hits Julia with a baseball
bat as Julia leaves the house. When Julia sues Mary for battery, Mary will be considered
a
a. victim.
b. tortfeasor.
c. plaintiff.
d. unreasonable person.
Beth is a minor. She buys a set of sessions with a personal trainer, and a water bottle
and some weights from a fitness store. Later, Beth decides that she does not want the
water bottle or weights. In most states, Beth
a. can disaffirm the contract and return the water bottle and weights, but keep the
training sessions.
b. can only disaffirm the contract if she returns all the goods.
c. cannot disaffirm the contract.
d. can disaffirm the contract and keep all the goods.
Bilt-Well Construction Corporation makes a side payment to a government official in
Nigeria to obtain a contract. In the United States, this is
a. illegal and unethical.
b. illegal but not unethical.
c. unethical but not illegal.
d. legal and ethical.
Hi-Lite Manufacturing, Inc., orders supplies online from Indigo Parts Company. To
complete the order, the buyer is required to click on a button that says, in reference to
certain terms, “I agree.” This is
a. a click-on agreement.
b. a browse-wrap term.
c. a wrap-on agreement.
d. a shrink-wrap agreement.
Peter, an agent for Zippy Cars, Inc., writes a letter to Cassandra on March 1 stating that
he will sell her a 2011 Suburu Outback for $20,000 between March 1 and April 30.
Peter’s letter to Cassandra is
a. a firm offer.
b. an acceptance.
c. a bilateral contract.
d. a breach.
Marvin is a very good businessman. He starts Marvin’s Bike Company in the small
town of Wheatland, South Dakota. There is one other bike store in Wheatland. Through
good business management, Marvin’s Bike Company obtains a great deal of market
power in Wheatland. This acquisition of monopoly power is
a. a per se violation of Section 1 of the Sherman Act.
b. an illegal restraint on trade.
c. not an antitrust violation.
d. a per se violation of Section 2 of the Sherman Act.
Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain
health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is
awarded compensatory damages, the purpose would be to
a. establish, as a matter of principle, that ISI acted wrongfully.
b. provide Hybrid with funds for a foreseeable loss beyond the contract.
c. provide Hybrid with funds for its loss of the bargain.
d. punish ISI and set an example to deter others from similar acts.
Peyton, Qiana, and River form a syndicate to buy a professional basketball franchise.
This syndicate could be set up as
a. a joint venture.
b. a corporation.
c. a sole proprietorship.
d. a limited liability company.
Velma borrows $110,000 from Watershed Bank to buy a home. If she fails to make
payments on the mortgage, the bank has the right to repossess and auction off the
property securing the loan. This is
a. a short sale.
b. forbearance.
c. foreclosure.
d. the equitable right of redemption.
Gaye, a minor, signs a contract to buy a motorcycle from Hi-Valu Cycles by
misrepresenting her age as twenty-one. Gaye fails to make the payments. Hi-Valu sues.
Ordinarily, Gaye can
a. not return the motorcycle nor avoid further liability.
b. not return the motorcycle but can avoid further liability.
c. return the motorcycle and avoid further liability.
d. return the motorcycle but cannot avoid further liability.
Frank slips and falls on Guy’s Harbor Tour Boat and is injured. Frank files a suit against
Guy’s for $500,000. If Frank is 20 percent at fault and Guy’s is 80 percent, under the
“50 percent rule” comparative negligence principles, Frank would recover
a. $0.
b. $250,000.
c. $400,000.
d. $500,000.
Della, an officer for Energy Petrol Corporation (EPC), buys 100 shares of EPC stock.
One week later, EPC announces that it will merge with a competitor, Fuel Oil Company,
and the price of EPC stock increases. One month later, Della sells her shares for a
profit. Under Section 16(b) of the Securities Exchange Act of 1934, Della would not be
liable if, after buying the stock, she had waited
a. less than fourteen days to sell it.
b. more than six months to sell it.
c. ninety days to sell it.
d. two months to sell it.
Clyde issues a check payable to Discount Mart. Elle, Discount’s cashier, forges the
store’s indorsement and deposits the check in her bank account. Clyde’s bank, Main
Street Bank, pays the check. Clyde can recover from
a. Elle, but not Main Street Bank.
b. Main Street Bank, which cannot recover from Elle.
c. Main Street Bank, which can recover from Elle.
d. no one.
Jacob owns five acres of land in northern California. On his land Jacob has a house and
a toolshed. There are ten large maple trees around the house that were there when Jacob
bought the land. Since buying the land, Jacob has planted an apple tree. Jacob’s real
property includes
a. the house and toolshed only.
b. the house only.
c. the house, toolshed and maple trees only.
d. the house, toolshed, maple tress and apple tree.
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 increases. 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.
Gambling involves the distribution of property by chance among persons who have
paid valuable consideration for the opportunity to receive it.
Whistleblower statutes protect employees from retaliatory discharge.
Damages are a remedy at law.
If a principal cannot be contacted in an emergency situation, an agent cannot deviate
from previously given instructions.
A customer has a right to stop payment on a check that has been certified or accepted by
a bank.
It is legal to charge any interest rate for an ordinary loan.
U.S. laws that prohibit discrimination in employment apply to U.S. employees working
for U.S. firms located abroad.
If no harm results from an allegedly negligent act, there is no liability.
A subprime mortgage is a loan made to a borrower who does not qualify for a standard
mortgage.
The act of state doctrine provides that the executive branch of one country will not
examine the validity of public acts committed by a recognized foreign government
within its own territory.
To commit an intentional tort, one person must intend to harm a certain person.
An installment contract is breached if a seller tenders any nonconforming goods.
A right can be assigned even if the assignment will significantly alter the risks or duties
of the obligor.
Uniform laws apply in all states, including those in which the laws have not been
adopted.
Employers cannot forbid their employees from participating in any religious activity.
A hacker is someone who uses one computer to break into another.