Tasty Pastries, Inc., and other bakers refer to a “bakers dozen as consisting of a
collection of thirteen baked goods. This is an example of
a. course of dealing.
b. course of performance.
c. square dealing.
d. usage of trade.
Bo and Clancy decide to do business as Marketing & Promotion Services. To be a
partnership, this association can result from an agreement that is
a. express, but not from an agreement that is implied.
b. implied, but not from an agreement that is express.
c. oral, written, or implied by conduct.
d. written, but not from an agreement that is oral or implied.
Eminent Properties, Inc., wants to fill its wetlands to build Fieldview Homes, a
residential subdivision. The Clean Water Act prohibits the filling of wetlands unless
a. any displaced wildlife is accommodated elsewhere.
b. the Army Corps of Engineers issues a permit.
c. the local community obtains a benefit.
d. the party doing the filling realizes an economic profit.
Brad is a shareholder of Concert Promotion Corporation. As a shareholder, Brad can
a. authorize major corporate policy decisions.
b. decide to issue stock and bonds, and declare dividends.
c. select and remove corporate officers.
d. vote to amend the articles of incorporation or bylaws.
Fact Pattern 15-1
Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo
writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair
the car properly, issues a stop-payment order.
Refer to Fact Pattern 15-1. Capital Bank
a. is liable to Fix-It for the amount of the check.
b. must stop payment if Capital has a reasonable time to act.
c. need not stop payment unless Echo had a valid reason to act.
d. need not follow Echos order unless the check was certified.
Fruitful Garden Company makes and sells pesticides. For the pesticides to remain on
the market, the acceptable level of risk to people of developing cancer from exposure to
the products is
a. one in a hundred.
b. one in a million.
c. one in a thousand.
d. zero.
Bayou Boats, Inc., and Eventide Fishing Tours enter into a contract for a sale of seven
swamp boats. Eventide pays for the goods, but Bayou does not deliver. Eventide can
use replevin as a remedy if
a. Bayou is lawfully withholding the goods.
b. Eventide cannot effectively cure the defect.
c. Eventide is unable to cover for the goods.
d. the goods have not been identified to the contract.
General Packaging Corporation, a U.S. employer, may hire Hilo, a noncitizen, if Hilo is
a. a lawful permanent resident of the United States.
b. an unlawful but hopefully permanent resident in the United States.
c. an unlawful but only temporary resident in the United States.
d. any of the choices.
Regal Manufacturing Company contracts to sell sweaters to Superb Styles Store. Before
the sweaters are delivered, Superb indicates that it will not be able to pay. Regal can
resell the goods
a. either after finishing the job (and identifying the goods), or after stopping the job.
b. only after finishing the job and identifying the goods.
c. only if Regal immediately stops the job.
d. under no circumstances.
Mary works in the public relations department of New Trends Sales Company. Her job
includes portraying New Trendss activities in their best light. In this context, ethics
consist of
a. a different set of principles from those that apply to other activities.
b. the same moral principles that apply to non-business activities.
c. those principles that produce the most favorable financial outcome.
d. whatever saves New Trendss “face.
Parker, a salesperson for Quality Textiles, Inc., shows Rosa, a fabric buyer for Style
Clothing Company, samples of cloth, stating that any shipment will match the samples.
This statement is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
The brakes on a Coastal Railroad train malfunction and it rolls towards maintenance
workers on the tracks. Everyone gets out of the way except Dick, who wants to show
off. The train hits Dick, who sues Everest, Inc., the brakes manufacturer. Everest can
raise the defense of
a. a component-part manufacturer.
b. assumption of risk.
c. consumer participation.
d. product misuse.
Screen Perfect, Inc., and TV Stores enter into a contract for a sale of high-definition
television sets. Screen Perfect ships goods that do not exactly conform to the contract in
some details. TV Stores
a. cannot reject the entire shipment.
b. can reject the entire shipment.
c. must accept the entire shipment.
d. must reject the entire shipment.
Clear Day Company, which is based in Delaware, agrees to sell fifty windows,
currently stored in Florida, to Great Vu, Inc., which is based in Hawaii. Absent an
agreement to the contrary, the place of delivery is in
a. California.
b. Delaware.
c. Florida.
d. Hawaii.
Fact Pattern 8-2
Brad defends against a breach-of-contract suit by College Credit Corporation by
claiming that their deala student loan accruing interest at a certain rate and payable
beginning on a certain datewas unfair because the consideration for their contract was
inadequate.
Refer to Fact Pattern 8-2. “Adequacy of consideration refers to
a. “how much consideration is given.
b. legally sufficient value in the eyes of the law.
c. the intangible value to a contracting party of a thing exchanged.
d. the substantiality of the consideration exchanged.
Jill believes that she should file a plan for a Chapter 13 discharge in bankruptcy. A
Chapter 13 bankruptcy plan must provide for
a. the completion of all payments to all creditors within six years.
b. the payment of 100 percent of all obligations in full.
c. the surrender of all collateral to the creditors.
d. the turnover of the debtors future income to the trustee.
Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that warrants
only that Opal held good title during her ownership of the property. This deed is
a. a grant deed.
b. a quitclaim deed.
c. a special warranty deed.
d. a warranty deed.
It is possible to copyright an idea.
Simon signs a check “pay to the order of Tilly drawn on Simons account in United
Bank. Vela forges Tillys indorsement, First Federal Bank cashes the check, and Vela
disappears. United pays First Federal and debits Simons account. Most likely, the
ultimate loss will fall on
a. Simon.
b. Trudy.
c. United Bank.
d. First Federal Bank.
Kelly is injured when she slips and falls on Laylas sidewalk. To determine whether
Layla owed a duty of care to Kelly, Layla is subject to the standard of
a. a realistic person.
b. a reasonable person.
c. a recognizable person.
d. a reliable person.
Flo-Thru Corporation is poised to issue securities that, under the Securities Act of 1933,
are “exempt. This means that the securities can be sold
a. on the basis of a material omission or misrepresentation.
b. on the basis of nonpublic information.
c. within any six-month period by certain insiders.
d. without being registered.
Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a
printed form that includes, near the blanks for their signatures, the word ‘seal. This is
a. a formal contract.
b. an informal contract.
c. a social contract.
d. no contract.
Webline Retail Sales, Inc., promises its salaried employees a bonus at the end of the
year if management thinks it is warranted. This promise is
a. enforceable.
b. unenforceable because it is not supported by consideration.
c. unenforceable because the dollar amount is missing.
d. unenforceable because the employees are paid salaries.
USA Oil Corporation signs an instrument that states it is being executed “in accord with
a contract for the purchase of 4,000 barrels of oil dated May 1. This instrument is
a. negotiable.
b. nonnegotiable, because information about the sale must be obtained from another
source.
c. nonnegotiable, because it states an express condition to payment.
d. nonnegotiable, because the terms of the sale are not clear.
Bailey, the president of Carmichael Commodities Company, claims that certain actions
by the federal government and by the state of Delaware infringe on rights guaranteed by
the Bill of Rights. All of these rights limit
a. neither Delaware nor the federal government.
b. the federal government only.
c. Delaware and the federal government.
d. Delaware only.
Dru signs a check “pay to the order of Eppie drawn on Drus account in First Federal
Bank. Greta forges Eppies indorsement. First Federal pays the check. Most likely
a. Dru will be liable for the amount.
b. Eppie will have to pay Dru for the amount.
c. First Federal will have to recredit Drus account.
d. the Federal Reserve will reimburse all parties for their costs.
Fact Pattern 18-1
Kit, manager of Long-Term Care Companys office in Metro City, decides to replace the
offices male employees with females. Nia, an assistant manager transferred from a
different Long-Term Care office, refuses to cooperate. Kit retaliates against Nia, who
quits. Within a year, the male employees also quit.
Refer to Fact Pattern 18-1. Kits conduct is most likely a violation of
a. no law.
b. the Age Discrimination in Employment Act.
c. the Americans with Disabilities Act.
d. Title VII of the Civil Rights Act.
Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc.
Vital Shipping Corporation, the carrier, transports the books to Warehouse Storage
Company. Texts right to stop delivery is lost when Universitys rights to the goods are
acknowledged by
a. the appropriate government agency only.
b. Vital Shipping only.
c. Vital Shipping or Warehouse Storage.
d. Warehouse Storage only.
Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Mart Stores,
Inc., a retailer. Under the Sherman Act, this is
a. “an unfair or deceptive act or practice.
b. a per se violation.
c. not a violation.
d. subject to analysis under the rule of reason.
In a suit against Owen, 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.
Sid files a suit against Tina. Before going to trial, the parties, with their attorneys, meet
to try to resolve their dispute. A third party helps them to reach an agreement. This is
a. arbitration.
b. litigation.
c. mediation.
d. negotiation.
Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely
be considered acting outside the scope of her employment if she
a. crashed into a car at the airport while off duty.
b. hit a pedestrian in a parking lot during a “working lunch.
c. ran over an attendant at a gas station while refueling the truck.
d. smashed into a store-front while intoxicated on-duty.
Tender must occur at a reasonable hour and in a reasonable manner.
A time draft is payable at a definite future time.
For consideration to have “legally sufficient value, it must consist of goods or money.
Misrepresentation of a material fact can occur through words alone.
Corporate officers hire corporate directors.
A party seeking to recover in quasi contract must show that he or she has been unjustly
enriched.
Tiny authorizes United Bank to make transfers from his account to make payments on
his debt to Vics Auto Dealership, which sold Tiny the car that serves as collateral for the
debt. After three payments, Vics repossesses the car and refuses to return it. Tiny
phones the bank to stop the payments and follows up with a confirming letter. The bank
fails to stop the next two payments, and Vics refuses to refund anything. Can Tiny get
his money from the bank? Explain.
The doctrine of commercial impracticability only extends to problems that could have
been foreseen.
Normally, if the numerical amount and the written amount on a check differ, the words
outweigh the figures.
“Regulation Z is a generic term for any consumer protection law.
The completion of an originally incomplete instrument in an unauthorized manner is a
defense against payment on the instrument to an HDC.
A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort
allegedly committed overseas.
An operating agreement for a limited liability company need not be in writing.
A loan between two consumers is subject to the Truth-in-Lending Act.
The intent to return the embezzled property is a defense to the crime of embezzlement.
Blizzard Entertainment, Inc., one of the owners of the World of Warcraft (WoW)
computer game, is involved in a lawsuit with MDY Industries, LLC, the owner of
Glider, a software program that plays WoW for its players while they are away from
their keyboards. Blizzard asks the court to direct MDY to stop selling and distributing
Glider. The courts opinion in the case is at MDY Industries, LLC v. Blizzard
Entertainment, Inc., 616 F.Supp.2d 958 (D.Ariz. 2009). What is the name for the
remedy that Blizzard is seeking? What type of remedy is it? What court decided this
case? Specifically where can the courts opinion be found?
The Americans with Disabilities Act of 1990 defines disabled persons as persons
impaired mentally or physically “in any way.
A release does not require consideration to be legally binding.
A board of directors can delegate some functions to corporate officers.