Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs
a thirty-second commercial on a local television station, offering a reward for
information leading to the apprehension of a certain criminal. CCS could normally
terminate the offer by placing
a. a full-page ad in the local paper and a thirty-second commercial on the local station.
b. a notice in the “Legal Announcements” section of the paper.
c. a notice to the news departments of the local stations.
d. any, or none, of the choices.
Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for
twenty-four months to use its facilities. Six months later, after reaching the age of
majority, Mica continues to use the club. This act is
a. a disaffirmance.
b. an emancipation.
c. a ratification.
d. a restitution.
Oklahoma charges Dewey, a design engineer and the owner of Windfarm Energy Corp.,
a fee to practice his profession in the state. This is
a. usurious.
b. unconscionable.
c. a license.
d. an adhesion contract.
Investors Fund, a large financial institution, announces that it will start monitoring its
employees’ electronic communications. If Mary, an Investors Fund employee, resists
this policy, her best argument is that the monitoring violates her
a. employee privacy rights.
b. religious beliefs.
c. right to free speech.
d. whistleblower rights.
Jackson is accused of a cyber crime. Jackson refuses to give information related to his
alleged cyber crime activities because he suspects it will be used to prosecute him.
Jackson is protected by the
a. First Amendment.
b. Fourth Amendment.
c. Fifth Amendment.
d. Eighth Amendment.
Little Local Bank wrongfully fails to honor a check signed by its customer Andrea.
Little Local Bank is
a. not liable to Andrea for damages resulting from its refusal to pay.
b. only liable to Andrea for damages resulting from its refusal to pay if Andrea takes
action against the bank within one business day of the failure to honor the check.
c. only liable to Andrea for one half of the damages resulting from its refusal to pay.
d. liable to Andrea for damages resulting from its refusal to pay.
Crafted Iron Works, Inc., offers to design, make, and sell City Transit Agency fourteen
streetcars. Crafted authorizes a particular mode of communication, but City Transit
sends an acceptance via a substituted means. This acceptance is effective when it is
a. in transit.
b. received.
c. sent.
d. written.
Rural Utility, Inc., enters into a contract with Shovel Excavation Service to dig up,
replace, and rebury Rural’s cables in a certain location. Rural advances Shovel 10
percent of its cost. If the parties rescind the contract, Shovel’s refund of the payment
would be
a. a penalty.
b. liquidated damages.
c. restitution.
d. specific performance.
The executive department of Health and Human Services was founded in 1980. Which
of the following subagencies is NOT within the department of Health and Human
Services?
a. The Centers for Medicare and Medicaid Services
b. The Food and Drug Administration
c. The Internal Revenue Service
d. The Centers for Disease Control
Louislarger and stronger than Micathreatens to hit Mica before hitting and injuring him.
Mica files a suit against Louis for assault and battery. Mica will most likely recover for
a. assault and battery.
b. assault but not battery.
c. battery but not assault.
d. neither assault nor battery.
In deciding questions of corporate social responsibility, Valley Disposal & Recycling,
Inc., is concerned with
a. how the corporation can best fulfill any ethical duty to society.
b. the effect on corporate profits of ignoring any ethical duty to society.
c. whether the corporation owes any ethical duty to society.
d. all of the choices.
Jon says to Kristy, “I would like to sell you my sports memorabilia collection.” This is
not an offer because it
a. does not describe the subject matter sufficiently.
b. does not include a price term.
c. only expresses an opinion.
d. only invites Kristy to negotiate.
Simple Simon, Inc., a software maker, wants to insure itself against injuries to
employees sustained during the course of their employment. Simple Simon should
obtain
a. casualty insurance.
b. employer’s liability insurance.
c. fidelity or guaranty insurance.
d. malpractice insurance.
Dag is an employee of Ridge Mining Company. Under federal labor law, Dag and other
employees have the right to
a. negotiate collectively with Ridge over employment conditions.
b. insist that Ridge require union membership as a condition of work.
c. interfere with the efforts of others to form labor organizations.
d. refuse to bargain with Ridge through their representatives.
Miranda orally promises Nicky that she will buy his fishing trawler for $10,000. Before
either party acts in reliance on this promise, under the doctrine of promissory estoppel,
the transaction is enforceable by
a. either party.
b. Miranda only.
c. neither party.
d. Nicky only.
Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments.
Corporate says that it will pay BPI $100 to hold the offer open for three business days.
This
a. creates an illegal contract by adding a clause to BPI’s offer.
b. makes the offer irrevocable for three days if BPI accepts.
c. negates BPI’s offer by changing the price term.
d. voids BPI’s offer by extending the time term.
Summit Credit Corporation lends funds to Toby, a consumer, to apply to the cost of a
sport utility vehicle (SUV), which is the collateral for the loan. An enforceable security
interest also requires
a. a written agreement and Summit’s possession of the SUV.
b. a written agreement or Summit’s possession of the SUV.
c. the vehicle seller’s acknowledgement of the loan in writing.
d. Toby’s possession of the SUV.
In the following situations, two parties claim the same goods. Who is most likely to
prevail in each circumstance? Explain.
(a) Olan steals Phil’s television set and sells it to Quincy, an innocent purchaser, for
value. Phil learns Quincy has the set and demands its return.
(b) Riley takes his television set for repair to Slick, a merchant who sells new and used
television sets. By accident, one of Slick’s employees sells the set to Tuna, an innocent
purchaser-customer, who takes possession. Riley wants his set back from Tuna.
Miley and Otis are involved in a case. The best definition of a case is
a. a criminal prosecution, not a civil proceeding.
b. a failure to perform a legal obligation.
c. a judicial proceeding for the resolution of a dispute.
d. a type of regulation applied to a business.
Jill has a Web site through which she conducts e-commerce. She wants to protect
herself against contract disputes and legal liability. On the page that provides all the
details of her offers, Jill need NOT include
a. provisions specifying the remedies if the contract is breached.
b. a clause identifying any applicable statute of limitations.
c. glowing reviews from former customers.
d. a provision spelling out the refund and return policies.
Trevor’s business is The Spicy Chocolatier Caf chain. This restaurant’s name is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. a trade name.
Flem is an employee of Glo Goods, Inc. Flem reports to state officials that Glo is
illegally shipping unsafe goods to unsuspecting customers. When Glo learns of Flem’s
report, Glo fires him. He successfully sues Glo for wrongful discharge. With respect to
the employment-at-will doctrine, this is
a. an example of the doctrine.
b. an exception based on employee privacy.
c. a statutory exception.
d. an exception based on an implied contract.
Pacific Applications, Inc., and Quality Resale Company (QRC) enter into an oral
contract for Pacific’s sale to QRC of six used forklifts for $1,900 each. Before QRC
takes possession of the items, this contract is enforceable by
a. either party.
b. neither party.
c. Pacific only.
d. QRC only.
Kit has two children, Lea (the eldest) and Merl, both of whom predecease Kit. Lea is
survived by a son, Nat, and Merl by two daughters, Opal and Pearl. On Kit’s death, if
the estate is distributed per capita
a. Nat will receive one-half of the estate, and Opal and Pearl will each receive
one-fourth.
b. Nat will receive the entire estate.
c. the grandchildren will each receive one-third of the estate.
d. the grandchildren will not receive anything.
Holiday Sales Company and Global Distributors, Inc., enter into a contract for the
delivery of imported specialty goods. Until the goods are delivered and paid for, these
parties have
a. an executory contract.
b. no contract.
c. a quasi contract.
d. an informal contract.
Natalie is a shareholder of Off-Road Vehicle Company. As a shareholder, Natalie does
not have
a. a right to compensation.
b. dividend rights.
c. inspection rights.
d. preemptive rights.
Robert uses television transmissions to defraud hundreds of people. He is found guilty
of wire fraud. He can be punished by
a. imprisonment for up to fifty years.
b. imprisonment for up to five years and fines of up to $1,000.
c. fines up to $5 million.
d. death.
Lyla is a common shareholder in Norman’s Nutty Nuts Corporation. As a common
shareholder, Lyla is
a. guaranteed regular payments of dividends.
b. not guaranteed any payments of dividends.
c. not given any voting rights.
d. liable for all of Norman’s Nutty Nuts’s debts.
Hailey, a lawyer on the staff of International Group, always considers the consequences
of an action rather than the nature of the action itself when making ethical decisions in a
business context. Hailey is applying
a. the utilitarian theory of ethics in business contexts.
b. religious beliefs in business contexts.
c. Kantian ethics in business contexts.
d. the principle of rights theory of ethics in business contexts.
Bill wants the United States Supreme Court to hear his case. Bill must request
a. a record of the case for review.
b. a writ of certiorari.
c. a summons.
d. a summary judgment.
The Federal Aviation Administration uses notice-and-comment rulemaking. The final
rule in such a proceeding has binding legal effect
a. after a court affirms it.
b. until the next presidential election.
c. once Congress approves it.
d. unless a court overturns it.
Dwayne and Ewell enter into a contract for the design of an addition to Dwayne’s house
for which he agrees to pay Ewell. Ewell transfers his right to payment under the
contract to Flex Construction Company. Flex is
a. a delegatee.
b. an assignee.
c. an obligee.
d. a third party beneficiary.
An installment contract is breached if a buyer accepts any nonconforming goods.
In most states, insurance is NOT normally viewed as a necessary by the courts.
A tenant is responsible for all damage to leased premises.
The relationship between a principal and an independent contractor always involves an
agency relationship.
A warranty deed provides the most protection against defects of title.
For an instrument to be negotiable, it must be in writing.
Liquidated debts are debts that are indefinite, or not fixed, in amount.
Overestimating the value of an object is a mistake for which a court will NOT normally
provide relief.
Employees who receive tips on the job have a lower minimum wage than employees
who do not receive tips.
Antitrust legislation was created because of the belief that competition leads to lower
prices.
Through agents, a principal can conduct multiple business operations simultaneously.
A motion for a new trial will be granted only if a constitutional issue is involved.
The owner of intellectual property may put restrictions on the use of the intellectual
property in a license agreement.
The first bank to receive a check for payment is the depositary bank.
A shipment contract requires that the seller deliver the goods to a particular location.
Under the law of agency, notice to the agent is notice to the principal.
A license is the conveyance of an interest in property that is not revocable.
Once a negotiable instrument is issued, it can be transferred by assignment.