Riley obtains permission from Saga Company to use the firms game app on Rileys
smartphone, tablet, and other mobile device. But Riley does not obtain ownership rights
in the app. This is
a. a license.
b. a cookie.
c. cloud computing.
d. a violation of the law.
Hi-Five Aero Corporation is required to register its securities under Section 12 of the
Securities Exchange Act of 1934. Section 14(a) of the act regulates
a. the declaration of dividends by Hi-Fives board of directors.
b. the later re-registration of Hi-Fives securities.
c. the short-swing activities of Hi-Fives insiders.
d. the solicitation of proxies from Hi-Fives shareholders.
When Jeffs car breaks down, he asks Insta-Tow, Inc., to tow it to Hueys Repair Shop.
There is no discussion of a price, and Jeff and Insta-Tow do not sign any documents.
Later, Insta-Tow sends Jeff a bill. With respect to Jeffs obligation to pay the bill, this is
a. an express contract.
b. an implied contract.
c. a quasi contract.
d. no contract.
A party must own property to have an insurable interest in it.
a. True
b. False
Zoe invents “All for One, new business inventory control software, and applies for a
patent. If Zoe is granted a patent, it will protect her product
a. for ten years.
b. for twenty years.
c. for the life of the inventor plus seventy years.
d. forever.
To “publish a will means to release it to the media.
a. True
b. False
In a short-form merger, neither corporations shareholders need to approve the merger.
a. True
b. False
A corporate officer cannot act as an agent of the corporation.
a. True
b. False
Cooks Pantry Appliances, a retail store, must use reasonable care on its premises to
warn its patrons of
a. all risks.
b. hidden risks.
c. obvious risks.
d. no risks.
If an offeror does not expressly specify a certain mode of acceptance, then acceptance
can be made by any reasonable means.
a. True
b. False
Community Construction Corporation offers to buy from Solid Cement Company a
certain quantity of cement for a certain price. Solid can ac-cept the offer by
a. doing nothing.
b. promising to ship or promptly shipping the cement.
c. promising to ship the cement only.
d. promptly shipping the cement only.
An installment contract is a single contract that requires or authorizes delivery in two or
more separate lots to be paid for in one payment.
a. True
b. False
Any event that makes its unlawful for a partnership to continue its business will result
in dissolution.
a. True
b. False
Friendly Credit Corporation (FCC) believes that Gary may dispose of the assets that
FCC expects to receive as payment for Garys debt before FCC can obtain a judgment.
FCC may ask a court to issue a writ of
a. attachment.
b. contribution.
c. execution.
d. redemption.
An oral stop payment order is valid for fourteen days.
a. True
b. False
A petition for a discharge in bankruptcy under Chapter 13 may be filed by
a. Gracie, the sole proprietor of Home Net Services.
b. Internet Portals & Pages, a partnership.
c. World Web Services, Inc., a corporation.
d. Internet Portals & Pages or World Web Services, Inc..
A financing statement must include a description of the collateral by type or item.
a. True
b. False
Proceeds consist of whatever is received when collateral is sold.
a. True
b. False
Lexy and Mort act as the incorporators for NuGame Corporation. After the first board
of directors is chosen, subsequent directors are elected by a vote of NuGames
a. board of directors.
b. employees.
c. officers.
d. shareholders.
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 Cliffs estate.
b. none of Cliffs estate.
c. one-half of Cliffs estate.
d. one-third of Cliffs estate.
A contract between E-Debits, Inc., and First Credit Corporation includes a provision
excluding liability as a result of fraud. This provision is
a. enforceable because the parties are protected from liability.
b. enforceable because the parties consented to it.
c. enforceable if the parties have equal bargaining power.
d. not enforceable.
In newspaper ads, Lo-Price Autos falsely accuses Hi-Value Vehicles, a competitor, of
selling stolen cars. Hi-Values sales decrease. Lo-Price has most likely committed
a. slander of quality.
b. slander of title.
c. wrongful interference with a business relationship.
d. none of the choices.
A seller does not have to provide a written warranty for consumer goods.
a. True
b. False
Gina sells “Bulk Up steroids over the Internet. She is arrested and charged with the sale
of a controlled substance. This is cyber crime, which is
a. a new category of crime that is not related to older types of crime.
b. a crime that occurs the virtual community of the Internet.
c. a crime that is less real than the same crime in the physical world.
d. no crime.
Small claims courts hear both civil and criminal cases.
a. True
b. False
An insurance application is part of the insurance contract.
a. True
b. False
A party to a licensing agreement generally agrees to pay royalties on some basis.
a. True
b. False
Not all of the terms presented in shrink-wrap agreements have been enforced.
a. True
b. False
An express trust is created or declared in explicit terms.
a. True
b. False
A petition for a discharge in bankruptcy under Chapter 11 may be filed byA 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.
Joan borrows money from Jake under a security agreement. After borrowing the money,
Joan buys a new kayak. The kayak is considered
a. a floating lien.
b. after-acquired property.
c. a future advance.
d. proceeds.
Flo tells Ginger during a phone call that she will buy her textbook from last semester
for $65. Ginger agrees. These parties have
a. no contract.
b. an express contract.
c. an implied contract.
d. a quasi contract.
The measure of damages for the breach of a contract for a sale of land de-pends on
which party breaches and when.
a. True
b. False