Gigi, a twenty-year-old, wants to execute a will before she undertakes a
mountain-climbing trip on a peak in the Himalaya Mountains. In most states, the legal
age for executing a will is
a. sixteen years of age.
b. eighteen years of age.
c. twenty-one years of age.
d. twenty-five years of age.
Cliff dies without a will. His survivors include his spouse Dana and his two children,
Efrem and Fay. Under applicable laws, Dana will probably receive
a. all of Cliff’s estate.
b. none of Cliff’s estate.
c. one-half of Cliff’s estate.
d. one-third of Cliff’s estate.
Workbilt Hardware Company employs workers, including Gina, at six locations in two
states. Workbilt’s discharge of Gina outside the terms of an employment contract may
result in
a. Workbilt’s liability for damages.
b. Gina’s deportation under the Immigration Act.
c. discontinuance of Gina’s health-plan coverage.
d. monitoring Workbilt’s communications for privacy violations.
Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows
calve in February of the following year. In January Andrea contracts with Big Beef to
buy fifty calves. Identification takes place in
a. January, when the contract is signed.
b. April, when the calves are conceived.
c. February, when the calves are born.
d. a reasonable period of time.
Francis performs a contract with Genie to add a garage to Genie’s property, but Genie
does not pay. Francis can file a lien on Genie’s property if, from the last date labor or
materials were provided, he acts
a. immediately.
b. within 60 to 120 days.
c. within two years.
d. within a reasonable time.
Continental Capital, Inc., increases its holdings, making tender offers in many states.
These offers are subject to
a. federal securities laws only.
b. state antitakeover statutes only.
c. no specific statutory requirements or limitations.
d. state antitakeover statutes and federal securities laws.
Boutique Corporation would like to change its corporate status to that of an S
corporation to avoid income taxes at the corporate level. To qualify, the shareholders
must not be
a. corporations.
b. estates.
c. individuals.
d. partnerships.
Jeri and Knute are members of Lighthouse Tours LLC, a limited liability company.
With respect to Lighthouse Tours’s liability, as members, Jeri and Knute are shielded
from
a. all liability.
b. no liability.
c. personal liability.
d. “alter ego” liability.
Star Resorts Corporation wants to terminate its franchise arrangement with Tony. Their
contract does not provide for notice of termination or set a time for winding up the
business. This means that to wind up, Tony
a. has a reasonable time, with notice.
b. has whatever time A determines, with or without notice.
c. is entitled to notice, but nothing more.
d. must close immediately.
Niche Stores, Inc., must hold a shareholders’ meeting
a. once a month.
b. once a year.
c. once every two years.
d. only when it is called by the board of directors.
Cooper’s Brakes, Inc., enters into a contract with Byron’s Service to fix Cooper’s
hydraulic equipment. Byron delays the repair for three days, but is not aware that
Cooper loses a certain percentage of profit each day the equipment is out of service.
Cooper is most likely to be awarded
a. compensatory damages.
b. nominal damages.
c. punitive damages.
d. no damages.
Fresh Cream, Inc., wants to make an initial public offering of securities. Fresh believes
that it qualifies for an exemption under Regulation A from the full registration
requirement of the federal Securities Act of 1933.
Fresh decides to sell its new securities via the Internet. This offering
a. will avoid the payment of commissions to brokers or underwriters.
b. is an investment scam.
c. is a Ponzi scheme.
d. constitutes insider trading.
Leo buys an exclusive territory in which he is authorized to set up a plant to make
Midwest Dairy, Inc., products. After receiving the formula, Leo begins making
Nice-brand ice cream and other Midwest products. This is
a. a chain-style franchise.
b. a distributorship franchise.
c. a manufacturing franchise.
d. no franchise.
Cotton Products Corporation is a public company whose shares are traded in the public
securities markets. The Securities Act of 1933 requires Cotton to disclose financial and
other significant information concerning its securities in order to
a. increase corporate accountability by imposing responsibility on chief corporate
executives.
b. prevent insiders from trading among themselves.
c. protect investors.
d. provide a “safe harbor” for companies that make forward-looking statements.
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.
Dyan executes her will to give “to my nephew Esau my stock in Fargo, Inc.” Later,
Dyan writes separately, with the same formalities required for a will, to leave the stock
to her niece Ginny and cash to Esau. This writing
a. does not affect the will’s gift of the stock to Esau.
b. requires a gift of the stock in equal shares to Esau and Ginny.
c. revokes the whole will, which must be redrafted.
d. revokes the will’s gift of the stock to Esau.
Red’s Roofing buys asphalt roofing tiles from Shingles, Inc. The parties agree that the
tile will be shipped “F.O.B. Shingles warehouse” to Red’s Roofing location via Tristate
Shipping Corporation. The tiles are lost in transit. The loss is suffered by
a. Tristate Shipping.
b. Shingles, Inc.
c. Red’s Roofing.
d. Red’s customers by an increase in the prices of goods and services.
Fiona borrows $1,000 from Garden State Bank, using her motorcycle as collateral. To
perfect its security interest, the bank must file its financing statement with
a. the secretary of state.
b. the county clerk.
c. the city treasurer.
d. the ward alderman.
Bakri owns a house. In the house, on a tile floor is a throw rug. Most likely to meet the
definition of a fixture is
a. the house.
b. the throw rug.
c. the tile floor.
d. none of these choices.
Ewa is Diamond Financial Planners’ 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.
A contract between Slim and Goldie may not be assigned if it
a. does not expressly permit assignment.
b. involves a sale of goods.
c. involves personal services.
d. is oral.
Sweet Treats, Inc., wants to market a new snack food. On the product’s label, standard
nutrition facts are
a. prohibited.
b. required.
c. strictly voluntary.
d. warranted by the nature of the food.
Northeast Bank makes mortgage loans to consumers, including Mai, to buy homes.
For Mai’s loan, Northeast provides all required disclosures. Mai has a right to rescind
the mortgage
a. at any time.
b. under no circumstances.
c. within three business days.
d. within whatever period is most rational and appropriate.
Some agreements are so blatantly and substantially anticompetitive that they are
deemed illegal per se under Section 1 of the Sherman Act. Which of the following is
not a per se violation?
a. A price-fixing agreement
b. A group boycott
c. A trade association
d. A market division
Congress leaves it to the Bureau of Prisons to oversee the promulgation of detailed
regulations in areas under the agency’s jurisdiction. This is
a. divine right.
b. the delegation of legislative powers.
c. gap-filling power.
d. unconstitutional conduct.
Madison is the chief executive officer of Nitro Medico, Inc., which is required to file
certain financial reports with the Securities and Exchange Commission (SEC). Under
the Sarbanes-Oxley Act of 2002, Madison must
a. certify that the reports are complete and accurate.
b. designate a corporate official to assume liability for inaccuracies.
c. do nothing.
d. read the reports and be prepared to answer questions about them.
Thorpe buys an HD TV from Viewpoint Electronics store, which agrees to keep the TV
for Thorpe until he picks it up. Before Thorpe gets the TV, a fire destroys the store and
the set. The loss is suffered by
a. neither Thorpe nor Viewpoint
b. Thorpe and Viewpoint.
c. Thorpe only.
d. Viewpoint only.
Beth, who has a disability, is an employee of Corporate Office Company (COC). After
the installation of new doors on COC’s building, Beth finds it nearly impossible to get
in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who
does not have a disability.
To successfully defend against Beth’s claim, COC will have to show that
a. Beth consistently failed to meet the essential requirements of her job.
b. COC cannot make changes to the doors without undue hardship.
c. Dian is qualified for Beth’s position.
d. the doors were not installed as an act of intentional discrimination.
Elizabeth buys a car from Silas, who is sixteen years old. Elizabeth then wants to sell
the car to her neighbor, John. Elizabeth’s title to the car is
a. valid.
b. voidable.
c. void.
d. good.
Sid, a director of Tech Software Company, learns that a Tech engineer has developed a
new, exciting video game. Sid buys Tech stock and tells his friend Uri, who also buys
Tech stock. When the new game is released three weeks later, Sid and Uri sell their
stock for a big profit.
Under SEC Rule l0b-5, Sid would not be liable if he had waited to buy Tech stock until
a. after Sid told Uri of the new game.
b. after Uri bought Tech stock.
c. after the public release of the game.
d. just before the game was released.
Federal securities laws strictly control the terms under which most tender offers are
made.
To support the imposition of strict product liability, a product must be substantially
changed from the time it is sold to the time an injury occurs.
Because insurance law follows contract law, bad faith tort actions against insurers are
not allowed.
Under no circumstances can a non-partner be regarded as an agent whose acts are
binding on the partnership.
For federal income tax purposes, a partnership is not a tax-paying entity.
A deposition is a sworn testimony by a party to a lawsuit or any witness.
A material change in a loan contract between a creditor and a debtor discharges a surety
only to the extent that the surety suffers a loss.
Intended beneficiaries can sue to enforce a contract.
Tender must occur at a reasonable hour and in a reasonable manner.
Airline passengers are subjects of a bailment.
A contract for the sale of commercial realty should indicate what items are included in
the sale.
Voluntary consent may be lacking because of misrepresentation but not because of a
mistake.
A delegator is a party who transfers his or her obligation under a contract to another
party.
When a minor disaffirms a contract, he or she cannot keep whatever he or she has
received as a result of the contract without paying for it.
Quotas are limits on the amounts of goods that can be exported.
Often, an administrative agency itself enforces its rules.
Equity is a branch of law, founded in justice and fair dealing, that seeks to supply a
remedy when no adequate remedy at law is available.
Cody signs and returns a letter from Dora, referring to her sale of the Bar-D Ranch and
its price. When Cody attempts to complete the deal, Dora refuses, claiming that they
have no contract. Cody claims they do. What standard determines whether these parties
have a contract?