Carrie Ann works at Paper Products, Inc. She considers taking home a few sheets of
stationery so she can write letters to her ailing grandmother. Since Paper Products
produces thousands of sheets of stationery every day no one will miss the few sheets
she takes and company profits will not be affected. Carrie Ann then considers what
would happen if every employee took some stationery home and decides not to take
any. Carrie Ann is being influenced by
a. the categorical imperative.
b. the principle of rights.
c. a cost-benefit analysis.
d. outcome-based ethics.
Caramello Chip & Cookie Corporation (4C) obtains, and gives its employees, a list of
the customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade
secrets, 4C’s conduct is actionable provided
a. consumers are confused.
b. 4C’s conduct is intentional.
c. 4C uses the list.
d. 4C does not have 3S’s permission to use the list.
Standard Purchasing Corporation and Total Sales, Inc., enter into a partnering
agreement. Under a partnering agreement, parties agree
a. in advance to terms that apply to their future e-transactions.
b. to become partners.
c. to conduct transactions solely in electronic form.
d. to resolve all disputes without involving a third party.
Erin is a shareholder in African Adventures. As a shareholder, Erin
a. owns shares of stock in African Adventures.
b. is the founder of African Adventures.
c. has no say in the election of African Adventure’s board of directors.
d. is liable for all the debts of African Adventures.
Deb buys a song through eSongs, an online music vendor. Before completing the
purchase and downloading the song, Deb must agree to a provision stating that she will
not make and sell copies of the song. This provision is
a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. a wrap-on agreement.
Jackson Lumber hires Owen to purchase wood from various sources on behalf of
Jackson Lumber. In this relationship, Jackson Lumber is the
a. employee.
b. independent contractor.
c. principal.
d. agent.
Lizzie, a clerk at a Movies Unlimited store, takes a DVD player from the store without
permission. Lizzie is liable for
a. appropriation.
b. benefiting an employee.
c. conversion.
d. wrongful interference with a business relationship.
Hobby Farms, Inc., owns rural property that it leases to various tenants, including Ira.
Ira’s transfer of his entire interest in the leased property to a Jason is
a. an assignment.
b. an eviction.
c. a right of entry.
d. a sublease.
Beth is a victim of Carl’s violation of a criminal law. Criminal law is concerned with
a. the prosecution of private individuals by other private individuals.
b. the prosecution of public officials by private individuals.
c. the relief available when a person’s rights are violated.
d. wrongs committed against the public as a whole.
Sherman dies without a will, survived by his granddaughter Roxy and Roxy’s brother
Pio. Roxy and Pio are Sherman’s
a. collateral heirs.
b. settlors.
c. trustees.
d. lineal descendants.
Jake is charged with embezzlement. Embezzlement may be committed without
a. a criminal act.
b. a criminal intent.
c. taking property from its owner.
d. the use of force or fear.
Estes, an accountant, contracts to perform services for Frasier. In performing those
services, Estes uncovers a suspicious financial transaction. Estes is most likely not
liable if he
a. acted negligently in failing to discover the transaction sooner.
b. conceals the discovery and otherwise finishes the work.
c. investigates and reports the discovery to Frasier.
d. obtains restitution from the perpetrator without Frasier’s knowledge.
On April 1 Richard arranges to buy a sixteen-speed bike from his neighbor Phil for
$500. Phil agrees to deliver the bike on May 1. Richard writes a draft for $500 payable
to Phil on May 1. In this situation, the draft is a
a. certificate of deposit.
b. time draft.
c. sight draft.
d. promissory note.
Frawsty Corporation distributes beverages in the greater Northwest. Frawsty’s board of
directors can delegate some of its functions to
a. Frawsty’s incorporators.
b. Frawsty’s officers.
c. Frawsty’s shareholders.
d. no one.
Ada is the maker of a note, on which Bart is secondarily liable. Cash & Credit
Company (C&C) is the current holder of the note. Bart will be obligated to pay the note
if
a. Ada defaults on the note.
b. C&C breaches a transfer warranty.
c. C&C negotiates the note to Delta Collection Agency, a third party.
d. C&C presents the note for payment.
Jake and John make an illegal contract that unjustly enriches Jake at the expense of
John. A court will
a. not be concerned with the unjust enrichment of Jake.
b. force Jake to pay damages to John.
c. reform the contract to prevent undue burdens.
d. enforce the contract as it was originally written.
Employers are not allowed to interfere with employee’ efforts to form or join a union
under
a. the Norris-LaGuardia Act.
b. the National Labor Relations Act.
c. the Labor-Management Reporting and Disclosure Act.
d. the Labor-Management Relations Act.
Phil enters into a contract to hire Bob’s Building Business to build a warehouse for Phil.
The contract specifies that the warehouse should be built with HighQual Bricks. When
construction starts, HighQual Bricks cannot provide enough bricks for the warehouse.
Bob’s Building Business substitutes Big Red Bricks, which are comparable in quality
and price to HighQual Bricks. This deviation from the contract
a. discharges Phil from the contract.
b. has no effect on the contract.
c. increases Bob’s Building Business’s duties under the contract.
d. suspends Bob’s Building Business’s duty to perform.
A suit is filed against Dormroom Furniture Unlimited, Inc., alleging that the firm has
committed the offense of monopolization. To determine whether Dormroom has
committed this offense, the court will consider the extent of Dormroom’s market power
and
a. how Dormroom acquired its power.
b. how Dormroom makes its products.
c. Dormroom’s customers.
d. Dormroom’s suppliers.
In some cases, foreign states are not immune from the jurisdiction of U.S. courts. These
circumstances are governed by the
a. Uniform Commercial Code.
b. Foreign Sovereign Immunities Act.
c. European Union.
d. North American Free Trade Agreement.
Maple Products Corporation is a public company, which New Hampshire regulates and
in which Orin invests. The Sarbanes-Oxley Act of 2002 introduced direct federal
corporate governance requirements to
a. public companies.
b. private investors.
c. state regulators.
d. none of these choices.
City Manufacturing Corporation conditions shipments of its products to Exurb Stores,
Inc., on Exurb’s agreement not to buy products from Regional Works Company, City’s
competitor. This is
a. an exclusive-dealing contract.
b. a tying arrangement.
c. price discrimination.
d. a unilateral refusal to deal.
Nico is a passenger in a car driven by Owen, whose reckless driving causes an accident,
injuring himself. Nico, uninjured, accompanies Owen to Parkside Hospital in an
ambulance. The ambulance is hit by a car driven by Quin, and Nico is injured. Nico
files a suit against Owen, alleging negligence. The element most likely to be a question
for the court to decide is
a. causation in fact.
b. proximate cause.
c. the duty of care.
d. the injury requirement.
Jerzy is an accountant whose clients include Kopper Kettle Restaurants, Inc. For a
violation of securities laws, Jerzy may be subject to
a. comprehensive liability.
b. corporate liability.
c. criminal liability.
d. no liability.
There are no precedents on which the court deciding the case Financial Investment Co.
v. Goodhands Insurance, Inc., can base its decision. The court may consider
a. issuing an order according to the judge’s personal values.
b. refusing to decide the case.
c. postponing a decision until a precedent is available.
d. basing a decision on public policy or social customs and values.
Kelly is injured when she slips and falls on Layla’s 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.
Lost in a canyon near Gila, Arizona, Hester writes her will in crayon, on a paper bag,
while Ivan states orally how he wants his estate distributed. Most states do not permit
a. an olographic will.
b. a nuncupative will.
c. a will written on a paper bag.
d. a will written in crayon.
Congress enacts a statute to outlaw a specific type of anticompetitive business
agreement. Like other laws that regulate economic competition, this law is referred to
as
a. a federal trade commission act.
b. an antitrust law.
c. an interstate commerce act.
d. a suppressive restraint on trade.
Southwestern Foods Corporation operates a packaging plant near the border between
the United States and Mexico. Due to the location, it would be easier for Southwestern
to employ noncitizens. With respect to persons not authorized to work in the United
States, an employer can
a. hire them.
b. recruit them.
c. refer them for a fee.
d. not hire them, recruit them, or refer them for a fee.
Justin is charged with a crime. He insists that he should have an opportunity to object to
the charges before a “fair, neutral decision maker.” No one can be deprived of “life,
liberty, or property without due process of law” under the
a. Second Amendment.
b. Fourth Amendment.
c. Fifth Amendment.
d. Eighth Amendment.
Violations of the Securities Exchange Act of 1934 may be subject to criminal
prosecution, but not civil liability.
The death of an offeree does not terminate an offer.
The validity of a provision permitting the franchisor to establish and enforce certain
quality standards is questionable.
Employers can consider mitigating measures or medications when determining if an
individual has a disability that fits the definition in the Americans with Disabilities Act
of 1990.
Directors can use corporate funds and confidential information for personal advantage
as long as they disclose that they are doing so.
Property voluntarily placed by its owner and inadvertently forgotten is mislaid property.
A state law that conflicts with the U.S. Constitution will be deemed unconstitutional.
A license is the revocable right of a person to come onto another person’s land.
The Bill of Rights protects individuals against types of interference by the federal
government.
Intangible personal property represents a set of rights and interests but has no real
physical existence.
A promise to give value in the future is sufficient to confer the rights of an HDC on one
in possession of a negotiable instrument.
A security interest is not enforceable after the creditor’s rights have attached to the
collateral.
To be patentable, an invention, discovery, or design must be novel, useful and not
obvious in light of current technology.
The measure of damages for breach of a construction contract depends on which party
breaches and when.
Identity theft occurs when a wrongdoer steals another’s form of identification and uses
it to access the victim’s financial resources.
A limited liability company (LLC) formed in one state but doing business in another
state is referred to in the second state as a foreign LLC.
Ethical codes of conduct can set the ethical tone of a firm.
Expropriation occurs when a government seizes private property for a proper purpose
and awards just compensation.
When the harassment by co-workers creates a hostile working environment, an
employee may have a cause of action against the employer.
Future advances against a line of credit can be subject to the same collateral.