Serenity City enacts an ordinance that bans the use of “sound amplifying systems” on
public streets. Tyler wants to campaign for a seat on the city council by broadcasting his
message through speakers mounted on a truck. In Tyler’s suit against the city, a court
would likely hold the ordinance to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
Premier Clothing, Inc., a U.S. firm, obtains a judgment in a U.S. court against Quang
Tri, Ltd., a Vietnamese business. Whether the court’s judgment will be enforced by a
court in Vietnam depends on the Vietnamese court’s application of
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the principle of comity.
d. the World Trade Organization.
Ruth contracts to provide Stan with fifty hours of telepathic personal coaching. The
state legislature subsequently passes a law making telepathic personal coaching illegal.
This law will
a. discharge the contract.
b. fulfill the contract.
c. not affect the contract.
d. require immediate performance of the contract.
Grandview Office Suites, Inc., merges with Hilltop Commercial Properties, Inc. Only
Hilltop remains.
Grandview owed money to Innovative Dcor, Inc., and other creditors. After the merger,
Hilltop must pay
a. all of Grandview’s debts.
b. half of Grandview’s debts.
c. none of Grandview’s debts unless there is a formal transfer of liability.
d. only debts that Grandview incurred after a merger was proposed.
Lovey is a shareholder of Matchless Corporation with preemptive rights. With these
rights, Lovey can
a. buy a prorated share of a new issue of stock before other buyers.
b. choose to have Matchless act exclusively in a certain area.
c. “preempt” managerial decisions that affect shareholders.
d. sell a prorated share of a new issue of stock before other sellers.
Mark fails to reveal a material fact in a business deal with Nancy. This constitutes fraud
a. if Mark is unaware of the fact and the failure.
b. if the amount of consideration received is grossly inadequate.
c. if the fact concerns a serious defect known to Mark and unlikely to be known by
Nancy.
d. under any circumstances.
Martin, a U.S. citizen, feels that a recently enacted federal law is unfair. He assembles a
group of friends and they write a petition to the government. Martin and friends then
stand quietly in front of the White House with signs declaring their belief that the law is
unfair. Under the First Amendment, Martin has a right to
a. petition the government, but not to assemble a group peaceably.
b. assemble peaceably, but not to petition the government.
c. both petition the government and assemble peaceably.
d. neither petition the government nor assemble peaceably.
Rubin writes a check drawn on his account at Clearwater Bank and payable to the order
of Gwyn. The bank does not pay the check. Rubin is
a. absolved of liability on the check.
b. liable to Gwyn for the amount of the check.
c. liable to the bank for the amount of the check.
d. entitled to payment of the amount of the check from Gwyn.
A contract between E-Debits, Inc., and First Credit Corporation includes a provision
excluding liability as a result of fraud. This provision is
a. enforceable because the parties are protected from liability.
b. enforceable because the parties consented to it.
c. enforceable if the parties have equal bargaining power.
d. not enforceable.
Grady and Hannah contract with Isaac to transfer the ownership of Grady and Hannah’s
Mesa Ranch to Isaac. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. an alienation.
Four-Square Construction Company enters into a contract with Ben to remodel Carol’s
Home Store, using products from Delta Building Supplies. Eatery Caf is next to Carol’s
Home Store. The remodeling is a gift from Ben to Carol.
Delta will realize a profit from the sale of products to Four-Square to remodel Carol’s
store. Delta is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
A petition for a discharge in bankruptcy under Chapter 11 may be filed by
a. Reliable Insurance Company.
b. Pacific Mountain Railroad.
c. Solid State Bank.
d. Valley Credit Union.
Fay is a member of Garden Groves LLC. Like other members of limited liability
companies, Fay’s liability for Garden Groves’s obligations resembles the liability of
a. a member of a joint venture.
b. an owner of a sole proprietorship.
c. a partner of a partnership.
d. a shareholder of a corporation.
Shane’s Auto Parts orders twenty tires from Tough Tires, Inc. The truck delivering the
tires to Shane’s is in an accident and ten of the tires are damaged. Shane’s Auto Parts
a. cannot reject the entire shipment.
b. must still pay for all twenty tires at the original contract price.
c. may inspect the tires and accept the shipment with a reduction in price.
d. must reject the entire shipment.
Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical
procedure. This contract is enforceable by
a. Jolie.
b. Jolie’s medical insurance company.
c. Keaton.
d. no one.
Jason files a suit against Maybelline. If Maybelline fails to respond, Jason
a. must appeal the case to a different court.
b. must refile the suit in the same court.
c. will be awarded the remedy sought.
d. will have a default judgment entered against him.
National Shipping Corporation and Office Software Company (OSC) make a deal for
OSCs products, communicating entirely online. Under the UETA, an electronic record
is considered sent
a. only at a midway point between the sender and recipient.
b. only on coming into the recipient’s control.
c. only on leaving the sender’s control.
d. when it leaves the sender’s control or comes into the recipient’s control.
U.S. Cars, a U.S. firm, owns property in Argentina. The government of Argentina seizes
the property. U.S. Cars claims that this is confiscation. The government of Argentina
claims that it is expropriation. The burden of proof lies with
a. the U.S. government.
b. the government of Argentina.
c. U.S. Cars.
d. the U.S. Supreme Court.
Bertram, Chaka, and Dougal are co-sureties of Erica’s debt to Finance Loan Company.
Bertram pays Erica’s entire debt. Bertram’s right to seek proportionate payments from
Chaka and Dougal is the right of
a. contribution.
b. redemption.
c. reimbursement.
d. subrogation.
Jordana is a member of Klondike Coffee, LLC, a limited liability company. Jordana is
liable for Klondike’s debts
a. in proportion to the total number of members.
b. to the extent of his capital contribution.
c. to the extent that the other members do not pay the debts.
d. to the full extent.
Jack’s Pet Houses, Inc. sells shelters for animals under “limited” warranties. Under the
Magnuson-Moss Warranty Act, this means that the warranties on shelters from Jack’s
Pet Houses
a. do not meet one of the requirements of a full warranty.
b. are only good for one year.
c. are illegal.
d. are oral.
Michael contracts with Jill to fix the brakes on her Honda Civic. Jill leaves her car with
Michael, but refuses to pay when the work is done. Michael refuses to return the car
until she pays. Michael’s lien on Jill’s car will end
a. in thirty days.
b. in sixty days.
c. when Michael voluntarily surrenders possession of the car.
d. when Jill obtains a court order requiring Michael to return the car.
Lisa brings a lawsuit against her employer for unlawful discrimination. Lisa is
successful in proving that she was unlawfully discriminated against by her employer.
Lisa may be awarded
a. back pay, but not retroactive promotions.
b. retroactive promotions, but not back pay.
c. damages, but not back pay.
d. back pay, retroactive promotions and damages.
Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft
Drinks, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs
it. This agreement is most likely enforceable against
a. no one.
b. Lucas and Natural Soft Drinks.
c. Lucas.
d. Natural Soft Drinks.
Idle Investments, Inc., and Harbor Bank are secured parties with security interests in
property owned by GR8 Manufacturing Corporation. Priority between these security
interests is generally determined by
a. the amount of the claim.
b. the custom in the trade.
c. the time of perfection.
d. the time the security agreement was signed.
Lita replaces Manny in his job at Neighborly Business Corporation (NBC).
Manny believes that he has been discriminated against on the basis of his age. For the
Age Discrimination in Employment Act of 1967 to apply
a. all parties must be forty years of age or younger.
b. Lita must be forty years of age or older.
c. Manny must be forty years of age or older.
d. NBC must have been in existence for at least forty years.
Wilson owes Shelby $5,000 for repairs on Wilson’s Bobcat Skidsteer. Wilson has
financial troubles and he and Shelby sign an accord, in which Wilson promises to pay
$4,000 and give Shelby his mountain bike within thirty days instead of the $5,000.
Wilson’s delivery of the bike and $4,000 to Shelby is
a. an accord.
b. satisfaction.
c. substantial performance.
d. novation.
Jessie’s debt to Kayla is past due. Kayla brings a legal action against Jessie to collect the
debt. Kayla asks the court to order Liberty Bank, in which Jessie has an account, to pay
a portion of the funds to Kayla. This is a request for
a. a writ of execution.
b. an order of garnishment.
c. an order that would violate most state laws.
d. a composition agreement.
Orange Manufacturing Corporation (OMC) orders twelve job-training and on-the-job
safety DVDs from Plum Productions, Inc., which delivers the disks to OMC’s plant.
This is most likely
a. a gift.
b. a lease of goods.
c. a sale of goods.
d. a service contract.
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.
Sheryl files a petition in bankruptcy. Sheryl’s non-dischargeable debts include
a. domestic-support obligations.
b. student loans if payment would impose undue hardship.
c. unpaid loans to finance home repairs.
d. unsecured credit-card debt.
Even if a contract in which goods and services are mixed is primarily a goods contract,
any dispute over the services portion will not be decided under the UCC.
A bank is not obligated to pay an uncertified check presented less than six months from
its date.
According to the Foreign Sovereign Immunities Act, a foreign state that has committed
a tort in the United States is protected from the jurisdiction of the U.S. courts.
An employer may be liable for the harassment by nonemployees if the employer knew
about the harassment and failed to take corrective action.
Under the Foreign Sovereign Immunities Act, a foreign state can be a political
subdivision of a foreign state.
If property is owned as community property, each spouse owns an undivided one-half
interest in it.
A seller’s price list is not an offer.
A law that restricts people of a certain national origin from doing something will be
carefully examined to make sure it promotes a compelling government interest before it
is allowed to stand.
A gift must be supported by legally sufficient consideration.
Guy is Hot Java Company’s majority shareholder. Guy decides to sell his Hot Java
stock. The sale will be an effective transfer of the control of the company. Does Guy
owe a duty to Hot Java or its minority shareholders in this situation?
The public must be provided with adequate advance notice of scheduled federal
administrative agency meetings and agendas.
A gift causa mortis is effective only if the donor dies and the donee lives.
Different standards for air quality apply to existing sources of pollution and major new
sources.
Java Bean Company imports coffee beans and sells them under two-year contracts to
Mellow Roast, Inc., and other coffeemakers. The contracts require that during the
two-year term a coffeemaker not buy beans from Java Bean’s competitors. The
contracts do not limit the coffeemakers’ purchase of tea or other beverage ingredients
from other suppliers, however. In the second year of the contract, Mellow Roast
protests that this arrangement violates antitrust law. Is Mellow Roast correct? If not,
why not? If so, under which antitrust statute, or statutes, could these contracts be held
illegal?
The Civil Rights Act of 1964 prohibits job discrimination against majority group
individuals, such as white males.