An appeals court can rule that a trial court’s ultimate ruling was correct even if the trial
court made some minor errors during the trial.
a. True
b. False
Larry purchased a Leisure Lawnmower because the company salesperson intentionally
misled him by assuring him that the mower was self-propelled, had a mulching feature,
and had a five-year unlimited manufacturer’s warranty. When Fred finds out that his
new Leisure Lawnmower is not self-propelled, does not mulch, and has a 90-day
warranty, he may successfully sue for:
a. reformation of the contract only.
b. restitution only.
c. restitution and possibly punitive damages.
d. compensatory damages only.
Marla applies for and receives a three-year loan through Sharkey Lenders for $5,000 at
27% APR.If the loan agreement violates the applicable usury statute, Marla may be able
to keep:
a. the interest that exceeds the usury limit.
b. all of the interest on the loan.
c. the interest and the $5,000.
d. Any of the answer choices are possible, depending on where the loan was made.
Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that
Joe grew during the coming growing season. This contract will be:
a. unenforceable due to its vagueness.
b. unenforceable due to the difficulty of devising an appropriate remedy for a breach.
c. enforceable as long as both parties act in good faith and Bob doesn’t suddenly
demand more hay than what was reasonably estimated.
d. unenforceable unless state real estate law makes an exception.
A monopoly is illegal:
a. under any circumstances, under Section 2 of the Sherman Act.
b. only if it is gained or maintained by using wrongful tactics.
c. if you have greater than 50 percent of market share.
d. any time there are no interchangeable products.
Patty is a poor college student struggling to work and keep up with her studies. Fred,
her uncle, promises to pay Patty support of $200 per month for the next six months.
Although Fred didn’t ask her to, she quits her current job in order to devote full time to
her studies for the next six months. Fred makes one payment and then stops with no
explanation. If Patty sues, what is the likely result?
a. Fred would win, as he did not ask Patty to quit her job.
b. Patty would win, as a contract was formed when Fred promised to pay her the
support.
c. Fred would win, as family members cannot sue each other for breach of an oral
promise.
d. Patty may win under the doctrine of promissory estoppel.
If Denise is hired to work as a cashier, she has the implied authority to do acts
reasonably necessary to carry out her job.
a. True
b. False
The issue in the Gray v. American Express Co. case involved:
a. lost credit cards.
b. disputed bills.
c. unfair interest rates.
d. privacy.
Margo is in possession of a check issued to her by Felix. The check states, “Pay to the
order of Margo.” If Margo wishes to transfer the check to Pete to pay a debt she owes
him, all she needs to do is strike out her name on the front of the check, write in Felixs
name and give it to him.
a. True
b. False
A contract should have a descriptive title, which is generally in all capital letters,
underlined and centered at the top of the page.
a. True
b. False
A legitimate seniority system is legal even if it perpetrates past discrimination.
a. True
b. False
If Becky promises not to drink alcohol until she becomes a legal adult in exchange for
Ben’s promise of $1,000, the agreement is:
a. enforceable because Becky is giving up the right to do something she would
otherwise be entitled to do.
b. enforceable because the agreement accomplishes Ben’s goal of keeping Becky from
drinking.
c. not enforceable because Becky does not have a legal right to drink alcohol.
d. not enforceable because Becky is a minor and could disaffirm the contract.
Some of the elements of a contract are agreement, consideration, legality, and capacity.
a. True
b. False
The Kelsoe v. International Wood Products, Inc. case was an example of:
a. promissory estoppel.
b. partial performance.
c. illusory promises.
d. lack of consideration.
You leave your watch with Bryte Jewelers for repair. Bryte could not transfer ownership
interests in the watch to a customer of the jewelry shop without your permission.
a. True
b. False
Because of the concept of stare decisis, the U. S. Supreme Court, in interpreting a
statute in 2009, will necessarily interpret certain statutory language in the same way as
the U. S. Supreme Court interpreted the same statutory language in
a. True
b. False
Francenie has a checking account at Corner Bank. She wants tickets to an upcoming
concert. She writes a check to Ticketmaster for the cost of two tickets. In this scenario:
a. Francenie is the drawee, Corner Bank is the drawer, and Ticketmaster is the payee.
b. Francenie is the maker, Corner Bank is the drawee, and Ticketmaster is the payee.
c. Francenie is the drawer, Corner Bank is the drawee, and Ticketmaster is the payee.
d. Francenie is the payee, Corner Bank is the drawer, and Ticketmaster is the maker.
The Fair Labor Standards Act:
a. wage provisions do not apply to professional or managerial employees.
b. limits the number of hours an employer can require a person to work in any given
week.
c. does not apply to children.
d. preempts any state wage regulation.
Rodney was employed by Deluxe Discount Store. Rodney’s manager directed him to
check the prices of dog food at Huge Savings Store. The manager of Huge Savings
Store saw Rodney writing down prices and asked him to leave. Rodney, fearful that he
would be fired by Deluxe, refused to leave. Rodney committed the tort of:
a. larceny.
b. trespass.
c. misrepresentation.
d. conversion.
Smalltown, located in a border state, seemed to favor Caucasians over Latinos in their
hiring practices. The courts will review the practice using:
a. minimal scrutiny.
b. intermediate scrutiny.
c. strict scrutiny.
d. Supremacy Clause scrutiny.
The Occupational Safety and Health Administration (OSHA) has proposed rules aimed
at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. ATC,
Inc. should challenge the proposed rules in court to prevent them from becoming final
rules.
a. True
b. False
The statement, “You will have a job with Snelling & Snelling as long as you complete
your degree in business administration this May does not create a condition because it
does not include the phrase “provided that.
a. True
b. False
If an offer specifies no time limit in which to accept:
a. the offeree has 30 days to respond.
b. the offeree has 10 days to respond.
c. the offer is not valid and therefore it does not matter when the offeree responds.
d. the offeree has a reasonable period during which to accept.
Richard wrote a song called “College Days.” He copyrighted the composition and had it
professionally printed. A couple years later he was attending a business meeting about
1500 miles from his home. While sitting in a nightclub, he heard a small local band
perform a song called “College Memories.” The music and words were extremely
similar to his song. The composer of “College Memories” claims he never heard of
Richard’s song and that she is offended he would accuse her of stealing his work. If
Richard wishes to sue for copyright infringement, he must prove:
a. only that his song and the infringer’s song are substantially the same.
b. that his work was original, and the infringer actually copied his work or that the
infringer had access to his song and that the two works are substantially the same.
c. that he sustained money damages as a result of the infringement.
d. that he registered the song for a copyright.
Which of the following statements, if made by a seller who knows the statement to be
untruthful, would not be misrepresentation of material fact resulting in a cause of action
for fraud?
a. “This horse is only six years old.”
b. “There is no better car in the world.”
c. “The tires have less than 5,000 miles on them.”
d. “This car gets 28 miles per gallon. “
Maia wrote a check which said, “Pay to the order of Kevin Mathews $10.97. The next
line of the check stated, “One thousand ninety-seven Dollars. In applying the rules of
interpretation, how much should the drawee pay?
a. Nothing; when the instrument is ambiguous it is declared non-negotiable.
b. Ten dollars and 97 cents. Numbers control over words.
c. One thousand, ninety-seven dollars or $1,097.00. Words control over numbers.
d. Parol evidence would be needed to determine the purpose of the check.
Landlords have the right, and may have a duty, to evict tenants who seriously disturb
others.
a. True
b. False
Maxine lost her job as an electrical engineer with a large company which had provided
health insurance benefits for Maxine and her family. She now:
a. must try to find insurance on her own or try to find another job with health insurance
benefits.
b. is protected under COBRA, which allows her continued health insurance coverage
for 18 months as long as she pays the cost.
c. is protected under COBRA, which requires her employer to continue her health
insurance coverage for six months under whatever copayment arrangements she had
while she was employed.
d. has some protection under the NLRA, which requires her employer to pay for
continued health insurance for three months following her termination if she did not
leave the company voluntarily.
The European Union has adopted a currency known as the:
a. Yuri.
b. Common Union.
c. Yen.
d. Euro.
Both per se and rule of reason violations of the Sherman Act are automatically illegal.
a. True
b. False
Linda borrowed $2,500 from Tonya. They agreed that Tonya could take a grouping of
Linda’s antiques as collateral. If Linda could not pay, then Tonya could sell the antiques
to recover her money. When Linda could not pay off the loan, Tonya sold the antiques
and paid Linda the proceeds after deducting the balance of the loan. Which of the
following statements is correct?
a. This is an irrevocable agency relationship.
b. This is a power coupled with an interest.
c. Linda has neither the power nor the right to terminate the relationship.
d. All the above are correct.
Does the Family and Medical Leave Act apply to professionals like CPAs?
a. Yes, if they work for a company with at least 50 workers.
b. Yes, but only if they are paid on an hourly basis.
c. No, but the professional firm must provide adequate vacation and sick days.
d. No, unless the employer specifically provides coverage.
Victoria has a MasterCard with a credit limit of $9,000. This is:
a. open-end credit.
b. closed-end credit.
c. an installment loan.
d. a secured debt.