To obtain office supplies for All-Care Medical Clinic, Britney executes a draft in favor
of Chris. A draft is
a. a conditional promise to pay money.
b. an unconditional written order to pay money.
c. a qualified promise to set aside a sum of money.
d. a restricted promise to deliver goods at a future date.
George is the founder of Excellent Exotics Corporation. Wilson is a shareholder and
director and Bill is an officer. The daily business operations of Excellent Exotics are
overseen by
a. Bill.
b. Wilson.
c. George.
d. George and Wilson.
Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury
a. if Ike intended to push Joan.
b. only if Ike did not intend to break Joan’s arm.
c. only if Ike had a bad motive for pushing Joan.
d. only if Ike intended to break Joan’s arm.
Harbor Bay Bank has made mortgage loans to consumers that qualify for the Home
Affordable Modification Program (HAMP), which offers incentives to lenders to
change the terms of certain loans. The purpose of HAMP is to
a. convey property through lenders to consumers who can afford it.
b. force lenders to forgive all high-risk mortgages.
c. reduce monthly payments to levels that homeowners can pay.
d. transfer affordable property to investors to lease to consumers.
Julia is a U.S. citizen. She establishes a Web site that posts threatening messages about
celebrities. Her Web site is
a. protected by the First Amendment.
b. not protected by the First Amendment.
c. protected by the Fifth Amendment.
d. protected by the Tenth Amendment.
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.
Herb, a computer programmer for Inventory Control Corporation, is arrested in his
employer’s parking lot on suspicion of larceny. Herb must be informed of his right to
a. a trial by jury.
b. punishment.
c. question witnesses.
d. remain silent.
Call Center Corporation, a U.S. firm, owns property in India. The government of India
seizes the property for a proper public purpose and pays Call Center just compensation.
This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Liz trespasses on Mega Corporation’s property. Through the use of reasonable force,
Mega’s security guard Ned detains Liz until the police arrive. Mega is liable for
a. assault.
b. battery.
c. false imprisonment.
d. none of the choices.
Roland files for Chapter 7 bankruptcy. After all his assets have been sold and the
proceeds distributed among his creditors, Roland’s remaining debts
a. are discharged.
b. paid by the court.
c. must be paid by Roland.
d. are put on hold until Roland has sufficient means to pay them.
Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative
agency) issues rules, the Southeast Financial Institutions Association (a private
organizations) issues instructions, South Valley Bank posts a memo with orders for its
employees, and Tina tells her co-worker about a recent news story. Sources of law
include
a. the instructions issued by private associations.
b. the orders posted by employers.
c. the rules issued by federal administrative agencies.
d. the stories released by news agencies.
Sonia manages a Tasty Pastry store for United Food Company. To manage the business,
Sonia’s authority can be implied by
a. an inference from the position Sonia occupies.
b. any inference a reasonable customer or supplier would make.
c. any inference Sonia chooses to make.
d. no inference.
Fancy’s Feedlot orders one hundred sacks of cattle feed from Bovine Feeders, Inc. Each
bag has the words “Twenty percent protein” printed on the front. This is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
Vieux Carr S.A., a French firm, imports its goods into the United States and offers those
goods for sale at “less than fair value.” “Fair value” is the price of
a. comparable goods in a select “basket” of other countries.
b. Vieux Carr’s goods in France.
c. Vieux Carr’s goods in the United States.
d. Vieux Carr’s goods on the world market.
Cash is an employee of Drowsy Resort, Inc., covered by federal overtime provisions,
which apply only after an employee has worked more than
a. eight hours in a day.
b. forty hours in a week.
c. 160 hours in a month.
d. one year for the same employer.
Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian religious
ethical standards. With respect to their application, these standards are
a. absolute.
b. analytical.
c. discretionary.
d. utilitarian.
To borrow money to finance the start-up of his business, Bob executes an instrument in
favor of City Bank. For the instrument to be negotiable, the signature must be
a. anywhere on the instrument.
b. anywhere on the lower half of the instrument only.
c. in the lower left-hand corner of the instrument only.
d. in the lower right-hand corner of the instrument only.
Genuine Seed Company and Hillside Farmers Cooperative enter into a contract for a
sale of hybrid seeds. Under the perfect tender rule, Genuine Seed must ship or tender
seeds to Hillside that
a. approximately conform to all of the details of the contract.
b. entirely conform to the contract except in one or two details.
c. exactly conform to the contract in every detail.
d. substantially conform to the contract in most details.
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.
Jean and Olivia want to form and do business as Cake Cups Corporation. A corporation
is
a. a natural person.
b. a tangible thing.
c. an artificial legal person.
d. a visible radiance.
Agnes borrows $110,000 from Bay Harbor Bank to buy a home under a mortgage with
an acceleration clause. After eighteen payments, Agnes stops making payments on the
mortgage. Bay Harbor
a. can foreclose once on the entire amount of the loan.
b. may seek only the amount of the missed payments, not the entire loan.
c. must foreclose on small amounts over time as each payment comes due.
d must notify Agnes to accelerate the steps to cure the default.
Hi-Tech Company contracts to sell fiber optic cable to Internet Services, Inc. Hi-Tech
may bring an action to recover the purchase price and incidental damages if Internet
a. accepts the cable and pays for it.
b. accepts the cable but does not pay for it.
c. rejects the cable.
d. revokes acceptance of the cable.
Metal Smelting, Inc., operates a planta “major source”that emits hazardous air
pollutants for which the Environmental Protection Agency has set maximum levels of
emission. The plant does not use any equipment to reduce its emissions. Under the
Clean Air Act, this is most likely
a. a violation.
b. not a violation because a “major source” is exempt.
c. not a violation because the plant does not use any equipment.
d. not a violation because the plant is not a mobile source.
UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela
seizes the property, UniOil asks a U.S. court to order the property’s return. The court
rules that Venezuela is exempt from the court’s jurisdiction. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Albert buys a surround sound system from his neighbor George at George’s garage sale.
Albert writes George a check for $250 for the sound system. George is
a. the certifier.
b. the drawee.
c. the drawer.
d. the payee.
Sally’s Sweet Fruits contracts with Fruits to You, Inc. for a delivery of two hundred
pounds of strawberries to be delivered by Keep Kool Trucking, a trucking company
with refrigerated trucks. On the day of delivery, the refrigeration units on Keep Kool’s
trucks are not working. Fruits to You
a. may ship the goods to Sally’s using another trucking company with refrigerated
trucks.
b. must refund Sally’s money and cancel the contract.
c. must wait to ship the strawberries until Keep Kool has fixed its trucks.
d. must ship the goods through a different carrier and pay Sally incidental damages.
Brad is an employee of Custodial Service, Inc. In deciding whether Brad acts within the
scope of his employment when he commits a tort against Didi, a court will not consider
whether
a. Brad was acting within the scope of the agency.
b. Brad was acting within the scope of his employment.
c. Custodial authorized the act.
d. Custodial was personally at fault.
Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her
job and fails to make payments on the mortgage, but assures Clear Lake Credit that she
will soon secure a new job. The lender agrees to postpone the payments. This is
a. a bridge loan.
b. forbearance.
c. a reamortization.
d. a restructure.
Miranda is a U.S. citizen working in Europe for Tourist Vacations, Inc., a U.S. travel
agency. Tourist fires Miranda for reasons that she believes violate U.S.
antidiscrimination laws. Those laws apply
a. extraterritorially.
b. only to signatories of the North American Free Trade Agreement.
c. only to members of the World Trade Organization.
d. only within U.S. borders.
Trademarks are protected from use on noncompeting goods by
a. the Federal Trademark Dilution Act.
b. the America Invents Act.
c. the Anticybersquatting Consumer Protection Act.
d. the Copyright Act.
Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc.
Viable Shipping Corporation, the carrier, transports the books to Warehouse Storage
Company. Text’s right to stop delivery is lost when University’s rights to the goods are
acknowledged by
a. the appropriate government agency.
b. the students who opt to buy the books.
c. University Bookstores.
d. Warehouse Storage.
Kelly signs an instrument in favor of Leo that states it is ‘subject to a certain agreement
between Kelly and Mona.” This instrument is
a. negotiable.
b. nonnegotiable, because it is made subject to a separate agreement.
c. nonnegotiable, because it refers to a separate agreement.
d. nonnegotiable, because Kelly and Mona are not the same persons.
Kitsch Niche Corporation is a noninvestment company that wants to issue $3 million of
stock in a twelve-month period. Kitsch Niche, with less than $20 million in annual
sales, qualifies as a small business issuer. Before Kitsch Niche sells the stock, it must
provide investors with
a. an offering circular.
b. a notice of the issue.
c. a red herring prospectus.
d. a tombstone ad.
On a lessee’s insolvency, the lessor can stop delivery of the goods.
Cases involving diversity of citizenship arise only between citizens of different states.
A bank is not obligated to pay an uncertified check presented less than six months from
its date.
When an agency relationship is terminated, the principal has a duty to personally notify
third parties who knew of its existence.
A registration statement must include a financial statement certified by an independent
public accounting firm.
Concurrent jurisdiction exists when both federal and state courts have the power to hear
a particular case.
Making out a prima facie case of discrimination means that a plaintiff has met his or her
initial burden of proof.
A drawer who is induced by an imposter to issue a check in the name of an
impersonated payee can avoid payment on the check to an innocent holder.
Under the Foreign Sovereign Immunities Act, a foreign state can be a political
subdivision of a foreign state.
A design defect is not the sort of product defect that will support the imposition of
liability on a strict product liability basis.
In general, minors are personally liable for their contracts.
It is not possible to violate a business regulation without realizing it.
Performance can be accomplished by tender.
All persons who are arrested have the constitutional right to remain silent.
An illusory promise is unenforceable.
The doctrine of commercial impracticability only extends to problems that are
unforeseen.
Some student loans are dischargeable in a Chapter 7 bankruptcy.
A Chapter 11 reorganization plan must provide for payment of tax claims over a
five-year period.
A written stop payment order is valid for only thirty days.