During a union election campaign, Autowerks Repair, Inc., prohibits on-site
solicitations by any party, including Mechanics Union, which is seeking the worker’
unionization. This violates
a. federal labor law.
b. federal elections law.
c. federal employment discrimination law.
d. no federal law.
Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires
a. fraudulently appropriating another’s property.
b. obtaining lawful possession of property.
c. physically taking property from its owner.
d. the use of force or fear.
Build-Rite Construction Corporation and Deals-R-Us, Inc., combine their efforts to
build an office and retail complex. Their form of business organization is
a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.
Fact Pattern 22-1
Northeast Bank makes mortgage loans to consumers, including Mai, to buy homes.
Refer to Fact Pattern 22-1. Under federal law, disclosures with respect to one of
Northeast’s loans must be provided
a. a certain number of days after the loan is finalized.
b. a certain number of days before the loan is finalized.
c. at the same time at which the loan is finalized.
d. at whatever time is most rational and appropriate.
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.
Joe files a voluntary petition for Chapter 7 bankruptcy. His petition does not need to
include
a. a list of Joe’s secured creditors.
b. a list of Joe’s unsecured creditors.
c. a list of the occupations of all Joe’s creditors.
d. the addresses of all Joe’s creditors.
Tory borrows $10,000 from USA National Bank to remodel a room in her home. This
transaction is subject to
a. no federal law.
b. the Consumer Leasing Act.
c. the Consumer Product Safety Act.
d. the Truth-in-Lending Act.
Mello Coffee Shops, Inc., sells a franchise to Noah’s Arch, a café. Mello is
a. a franchisee.
b. a franchisor.
c. an agent.
d. a principal.
Alan, the president of Bayside Investments, Inc., and Colin, Bayside’s accountant, are
charged with a crime, after the police search Bayside’s offices. Under the exclusionary
rule
a. certain Bayside records are excluded from subpoena.
b. certain parties to a criminal action may be excluded from a trial.
c. illegally obtained evidence must be excluded from a trial.
d. persons who have biases that would prevent them from fairly deciding the case may
be excluded from the jury.
Karen is a judge hearing the case of Local Dispatch Co. v. National Transport Corp.
Applying the relevant rule of law to the facts of the case requires Karen to find previ-
ously decided cases that, in relation to the case under consideration, are
a. as different as possible.
b. as similar as possible.
c. at odds.
d. exactly identical.
Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and
other items, but makes no payments on the account. To collect the debt, Mako, the
manager, contacts Kip’s parents. This violates
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Valley Furniture Store sells household consumer goods on credit for which Valley files
a financing statement to perfect a security interest in the goods. With the filing of
subsequent continuation statements, the effectiveness of the statement can be continued
a. indefinitely.
b. for no longer than five years.
c. for no more than six months.
d. up to five years and six months.
Call Center Corporation, a U.S. firm, owns property in India. The government of India
seizes the property for a proper public purpose and pays Call Center just compensation.
This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Mountaineer Sales, Inc., is the offeror and Camping Goods Corporation is the offeree
under a unilateral sales contract in which Forest Recreation Products Company is also
interested. Mountaineer is not notified of Camping’s performance within a reasonable
time. Mountaineer
a. may treat the offer as having lapsed.
b. must assume that Camping has started to perform.
c. must contact Camping.
d. must contract with Forest.
Dee, an accountant, does not work for Emergent Company, but wrongfully obtains
inside information concerning Emergent. Based on the information, Dee buys and sells
Emergent stock for personal gain. The Securities and Exchange Commission prosecutes
Dee, arguing that she is liable because she stole information rightfully belonging to
another. This argument is
a. the blue-sky theory.
b. the misappropriation theory.
c. the red-herring theory.
d. the tipper/tippee theory.
Which of the following is considered personal property?
a. Stocks and bonds
b. Land
c. A garage
d. A boundary fence
Seymour borrows $350,000 from Reliable Bank to buy a home. Seymour stops making
payments on the loan ten months later. After the bank repossesses the property securing
the loan but before it is sold, Seymour wants to buy it. This is
a. a deficiency judgment.
b. a reverse mortgage.
c. a violation of the law.
d. the right of redemption.
Evermore Sports Gear Corporation and Trendy Goods, Inc., enter into a contract. To be
enforceable, the contract must include
a. no particular signatures.
b. the signatures of all parties to the deal.
c. the signature of the party against whom enforcement is sought.
d. the signature of the party who is seeking enforcement.
Haya obtains an insurance policy from Inviolable Insurance Corporation (IIC). IIC may
cancel, or refuse to renew, the policy because of
a. Haya’s appearance as a witness against IIC.
b. Haya’s gender.
c. Haya’s national origin.
d. none of the choices.
Fresh Produce, Inc., and Great Grocery Stores dispute the interpretation of an
ambiguous phrase in their contract. In a suit between the parties to construe the
contract, a court may accept evidence of
a. consistent additional terms only.
b. consistent additional terms and contradictory terms only.
c. contradictory terms only.
d. anything extrinsic to the contract.
A unilateral refusal to deal can violate antitrust laws if the refusal
a. is likely to have an anticompetitive effect on a particular market.
b. results in lower prices for consumers.
c. provides no economic benefits for consumers.
d. is likely to increase competition.
In business deals, Fiona, the chief executive officer of Snacks n Bites, Inc., follows
duty-based ethical standards. These are most likely derived from
a. a corporate ethics code.
b. a cost-benefit analysis.
c. philosophical reasoning.
d. the law.
Machismo Motor Sales Corporation regularly advertises its off-the-road vehicles,
all-terrain vehicles, and other products. Under the First Amendment, these ads and other
commercial speech are given
a. less extensive protection than noncommercial speech.
b. more extensive protection than symbolic speech.
c. no protection.
d. the same protection as defamatory speech.
Gayla asks Jessie to contract with Jessie’s high school classmates to babysit for Gayla’s
new baby. Jessie orally agrees to do so. This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
Doc’s Sports Club enters into a franchise agreement with Elite Fitness Centers that
provides for termination at any time for “cause.” Doc’s fails to meet Elite’s “Friends and
Family” membership sales quota. Is this “cause” for termination? Explain.
Mary enters a gas station and points a gun at the clerk. She then forces the clerk to open
the cash register and give her all the money. Mary can be charged with
a. robbery.
b. forgery.
c. larceny.
d. embezzlement.
Ewa is Diamond Financial Planner’ most productive employee. She is dissatisfied with
the commission structure, however, so she quits to work for Feldstar Investments, Inc.
When she leaves Diamond’s employ, she takes her list of Diamond’s clients so that she
can induce them to switch to Feldstar. Trade secrets law covers
a. Diamond’s list of clients.
b. Ewa’s performance.
c. Feldstar’s commission structure.
d. none of the choices.
Corporate business matters are presented at a shareholder’ meeting in the form of
a. resolutions.
b. proxies.
c. articles of incorporation.
d. bylaws.
Stature Loan Company has notice that a promissory note is overdue if the note is a
demand instrument and Stature takes it
a. an unreasonable time after its due date.
b. before its due date.
c. on its due date.
d. without noticing its due date.
Red’s Plumbing Service substantially performs its contract with Shady Grove
Condominiums, Inc. Shady Grove is entitled to
a. damages.
b. nothing more.
c. repudiation.
d. alteration.
Jayne and Wilbur enter into an oral contract on May 1 under which Jayne agrees to
deliver a collection of exotic wines by April 30 of the following year. This contract is
enforceable by
a. Jayne only.
b. Wilbur only.
c. either party.
d. neither party.
Hubert borrows $100,000 from Integrity Mortgage Mart to buy a home. Soon after
obtaining the mortgage, Integrity convinces Hubert to refinance. This is
a. a short sale.
b a subprime mortgage.
c. loan flipping.
d. steering and targeting.
Tyrone is seventeen years old. Under the Fair Labor Standards Act, he
a. cannot work in a hazardous occupation.
b. cannot work during school hours.
c. must obtain a permit to work.
d. none of the choices.
Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink
under the name “CoCoCafe.” Darkroast Java, Inc., later markets a similar drink under
the name “KoKoKafe.” This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. a theft of trade secrets.
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.
A constructive trust is “constructed” by a property owner to fulfill certain unique
functions outside the usual bounds of a trust.
A financing statement cannot be the same as the security agreement.
Administrative law is a source of American law that is comprised of statutes.
Creditors can agree with a debtor to discharge the debtor’s debts on payment of a sum
less than that owed.
A quasi contract arises from a mutual agreement between two parties.
In an assignment, the party receiving the rights is known as the assignor.
Property used by a government for a public purpose such as a park is community
property.
In most states, a person must be sixteen years of age to execute a valid will.
Under federal law, an electronic signature can be as valid as a signature on paper.
Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for
$10,500. Colby agrees to deliver the truck on Friday, and Efrem promises to pay the
$10,500 on the following Monday. On Thursday, Efrem tells Colby that he changed his
mind and will not buy the truck. Over the weekend, Efrem changes his mind again and
tenders $10,500 to Colby on Monday. Colby has not sold the truck to another party but
refuses the tender and refuses to deliver. Efrem claims that Colby has breached their
contract. Colby contends that Efrem’s repudiation released him from his duty to perform
under the contract. Who is correct, and why?
Under the exclusionary rule, illegally obtained evidence may not be included in any
criminal prosecution.
Cybersquatting occurs when a person repeatedly visits a business’s website.
All ads’both online and offlinemust be truthful.
Damages are a remedy at law.
An assignment of rights in real estate often cannot be prohibited.
Punitive damages are recoverable in contract law for an intentional breach of contract.