At a prison in Ohio, inmate Steve recruits other inmates to play Towers & Trolls, a
potentially violent, fantasy, role-playing game. Ryan, the prison’s warden, confiscates
the game materials and bans its play at the prison. Under the principles discussed in “A
Sample Court Case,” Singer v. Raemisch, Ryan most likely acted
a. in violation of Steve’s rights under the First Amendment.
b. reasonably in taking the game materials but not in banning its play.
c. reasonably in banning the game but not in taking the materials.
d. reasonably in the circumstances and under the law.
Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year
employment contract for a $4,000 monthly salary to start at the beginning of the next
month. The Statute of Frauds covers
a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.
VeriVisual Company makes HD 3D film and video equipment. VeriVisual is like most
corporations in that its officers are hired by the firm’s
a. board of directors.
b. incorporators.
c. other officers.
d. shareholders.
Eden Property Sales Corporation and Dion agree to resolve their dispute in arbitration.
The arbitrator’s decision is called
a. a conclusion of law.
b. a finding of fact.
c. an award.
d. a verdict.
Kobe files a suit against Joanna. They meet, and each party’s attorney argues the party’s
case before a judge and jury. The jury presents an advisory verdict, after which the
judge meets with the parties to encourage them to settle their dispute. This is
a. a mini-trial.
b. a summary jury trial.
c. early neutral case evaluation.
d. not a legitimate form of dispute resolution.
Ernie’s Good Eatin” Cafe uses a distinctive decor, layout, menu, and style of service.
This restaurant’s image and overall appearance is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
Quik Sales Corporation orders goods from Re Stock Company. Re plans to market the
goods to consumers generally. Re identifies the goods. Before they are shipped to Quik,
an insurable interest in the goods exists in
a. Quik and Re, but not consumers generally.
b. Quik only.
c. Quik, Re, and consumers generally.
d. Re only.
Cathy uses, on her new recording Drive By, the melody of a song written by Ed,
without Ed’s permission. This is
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
Superb Construction, Inc., contracts to build a store for Tasty Confection Company,
with Tasty’s payment due on June 1. On June 1, Tasty’s bank is closed, and for this
reason, Tasty claims it cannot pay Superb on time. In this situation
a. Tasty’s bank is in breach of contract.
b. Tasty is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
Joy invites Ken into her apartment. Ken commits trespass to land if he
a. enters the apartment with fraudulent intent.
b. harms the apartment in any way.
c. makes disparaging remarks about Joy to others.
d. refuses to leave when Joy asks him to go.
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.”
As a judge, Diane applies common law rules. These rules develop from
a. decisions of the courts in legal disputes.
b. regulations issued by administrative agencies.
c. statutes enacted by Congress and the state legislatures.
d. uniform laws drafted by legal scholars.
Jill is an appellate court judge. In this capacity, Jill establishes a rule of law. Under the
doctrine of stare decisis, the principle must be adhered to by
a. all courts.
b. courts of lower rank only.
c. that court and courts of lower rank.
d. that court only.
Relax Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on
May 1 for which Stuffy agrees to pay. Relax tells Stuffy on April 15 that delivery will
be delayed until June 1. Stuffy may
a. await performance, sue Relax, or suspend its own performance.
b. only await Relax’s performance for a commercially reasonable time.
c. only sue Relax for breach of contract.
d. only suspend its own performance.
In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a
contract for the sale of a car. Now a trial court in the same state is deciding Daphne v.
Even Steven Auto Deals, Inc.,, a case with similar facts. Under the doctrine of stare de-
cisis, the trial court is likely to
a. allow the minor to cancel the contract.
b. disregard the previous case.
c. order the minor to cancel the contract.
d. require the minor to fulfill the contract.
Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one
of its warehouses. In exchange, Retail receives checks and other items that substitute
for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC
governs
a. the checks.
b. the payment of the loan.
c. the sale of the buildings.
d. the sale of the goods.
Superior Health Club’s marketing strategies entice many of Tone-Up Exercise Club’s
members to change clubs. After less than a year in business, Superior surpasses
Tone-Up in numbers of members. Superior is liable for
a. appropriation.
b. conversion.
c. no tort.
d. wrongful interference with a business relationship.
Esther and Faisal agree that Esther will fix Faisal’s car in exchange for his paying a
preexisting debt owed by Esther to Gladys. Gladys is
a. an assignee.
b. an intended beneficiary.
c. an incidental beneficiary.
d. a delegatee.
In a suit against Owen over the performance of their contract, Phil obtains specific
performance. This is
a. an order to do or to refrain from doing a particular act.
b. an order to perform what was promised.
c. a payment of money or property as compensation.
d. the cancellation of a contract.
The Idaho Supreme Court rules against Jiffy Mart in a case against Kwik Stop Stores,
Inc. Jiffy Mart files an appeal with the United States Supreme Court. The Court does
not hear the case. This
a. is a decision on the merits with value as a precedent.
b. indicates agreement with the Idaho court’s decision.
c. means nothing.
d. means that the Idaho court’s decision is the law in Idaho.
Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity’s
shareholders. When Faye’s schedule conflicts, she asks Gudren to serve Faye’s coffee
and pastries at the meeting. This transfer of duties is
a. a delegation.
b. an assignment.
c. a novation.
d. prohibited by law.
Sharon, the human resources director for Tempo Corporation, attempts to comply with
the law in dealing with applicants and employees. One of the challenges Sharon faces is
that the legality of an action is
a. always clear.
b. never clear.
c. sometimes clear.
d. usually clear.
Eve tells Finlay that she will pay him $50 if he unloads her truck. Finlay’s acceptance is
complete
a. as soon as Finlay says he will unload the truck.
b. once Finlay starts to unload the truck.
c. only after Finlay unloads the truck.
d. when Finlay hears Eve’s offer.
Teresa is a celebrity. Without her permission, Sinclair Enterprises includes in an ad an
image that resembles her. Sinclair does not use Teresa’s name or actual likeness. This is
most likely
a. appropriation.
b. conversion.
c. no tort.
d. slander of quality.
Kelly and Lucas sign a written contract for the sale of Kelly’s Koffee Kiosk to Lucas.
The parties intend their written contract to be a final statement of the terms of their
agreement.
Lucas later disputes some of the provisions of the deal with Kelly. If the dispute results
in litigation, a court will most likely exclude evidence that
a. buttresses the written terms.
b. contradicts the written terms.
c. duplicates the written terms.
d. reinforces the written terms.
Congress enacts a law prohibiting toys made in China from being sold in the United
States. The Hawaii state legislature enacts a law allowing the sale of Chinese-made
toys. Hawaii’s law will most likely be
a. rendered invalid under the supremacy clause.
b. rendered valid the equal protection clause.
c. struck down under the taxing and spending clause.
d. upheld under the commerce clause.
Sights Unseen, Inc., (SUI) sells scopes with distinctively designed and made lenses and
mirrors to scientists. Telescopes Etc. Corporation later begins to sell scopes with
identical set-ups of lenses and mirrors, without SUI’s permission, to consumers. This is
most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
The Texas Supreme Court decides the case of Livewire Entertainment Co. v. Power
Play Corp. Of nine justices, six believe the judgment should be in Livewire’s favor.
Justice Bellamy, one of the six, writes a separate opinion. The four justices who believe
the judgment should be in Power’s favor join in a third separate opinion.
These opinions are collected and published in volumes called
a. citations.
b. codes.
c. reporters.
d. reviews.
Harbor Town enacts an ordinance to allow only a few street vendors to operate in
certain areas, for the purpose of reducing traffic. A court would likely review this
ordinance under the principles of
a. the commerce clause.
b. the equal protection clause.
c. the due process clause.
d. the First Amendment.
Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle.
Esau cancels the contract ten days later. Double D is unable to sell the cattle to another
buyer. Double D is entitled to
a. force Esau to accept the cattle and recover the contract price.
b. keep the cattle and recover the contract price from Esau.
c. keep the cattle only.
d. recover the contract price from Esau but must destroy the cattle.
Commercial Shipping, Inc., and Dock Services Corporation enter into a contract for
Dock to load Commercial’s trucks for which Commercial agrees to pay Dock. Dock
transfers its duty to load the trucks to East Harbor Transport Company. Dock is
a. a delegator.
b. an assignor.
c. a payor.
d. an assignee.
Louis, a certified public accountant and an investor, and Maria, an insurance
salesperson and a realtor, may create an agency relationship for
a. a business purpose only.
b. a legal purpose only.
c. any purpose.
d. no purpose.
A seller must use words such as “warrant” to make an express warranty.
Many states permit a corporate board to have fewer than three directors.
An obligor is a person to whom a duty is owed.
The unauthorized use of another’s mark in a domain name is generally permissible
because the Internet is vast.
Ethical reasoning is the process through which an individual rationalizes whatever
action he or she chooses to take.
Advertisements can include express warranties.
A director or officer is not liable to the corporation for a bad business decision.
Starr Cardio, Inc., is a small business. Ted, Uma, and eleven other members of the Starr
family own all of its stock. Currently, Starr’s income is taxed at the corporate level and,
after being distributed to the family members, at the shareholder level. Can Starr retain
its corporate status but otherwise avoid this double taxation? If so, how?
A covenant not to compete is enforceable only if it is necessary to restrain trade.
Malicious prosecution can occur if a party initiates a lawsuit out of malice.
To be ethical is to “do the right thing” but it does not otherwise “pay.”
A person must have contractual capacity to be a principal.
Quicksilver Delivery Service contracts to deliver Pete’s Pizza Parlor’s products to its
customers for $5,000, payable in advance. Pete’s pays the money, but Quicksilver fails
to perform. Can Pete’s rescind the contract? Can Pete’s also obtain restitution? What
does it mean to “rescind” a contract? How is a contract rescinded? What is restitution?
How is restitution accomplished? Explain.
The verdict in a summary jury trial is binding.
An independent contractor may not act in the capacity of an agent.