Hu believes that he is a victim of a form of employment discrimination that falls under
Title VII of the Civil Rights Act. Compliance with this statute is monitored by
a. employees and job applicants, not an administrative agency.
b. employers and businesses, not an administrative agency.
c. the courts and Congress, not an administrative agency.
d. the Equal Employment Opportunity Commission.
Superior Sign Company is subject to the Fair Labor Standards Act (FLSA). The FLSA
is not concerned with
a. child labor.
b. employees’ privacy rights.
c. maximum hours.
d. minimum wages.
Dave is an officer for Sweet Somethings Candies, Inc. In 2012, chocolate hearts were
very popular. Acting within his managerial authority and the powers of the corporation,
Dave signs a contract for an increase in chocolate heart production for 2013. In 2013
chocolate hearts do not sell well and Sweet Somethings Candies loses money. Dave is
most likely
a. liable for breach of duty of care.
b. liable for breach of duty of loyalty.
c. none of the choices.
d. liable for violation of the business judgment rule.
Jared downloads some video games from the Internet. There is a page indicating the
terms of use, but nothing that requires Jared to affirmatively indicate his consent before
downloading the games. These terms are
a. a click-on agreement.
b. browse-wrap terms.
c. an attribution agreement.
d. a shrink-wrap agreement.
Which of the following is NOT a condition that would render a negotiable instrument
defective?
a. The instrument is overdue.
b. The instrument has been transferred more than once.
c. The instrument has been dishonored.
d. The instrument has been altered.
Personnel Staffing Corporation meets all of the requirements to be subject to the federal
employment discrimination laws. Among these, the most important statute prohibiting
discrimination against members of protected classes is
a. the Age Discrimination in Employment Act of 1967.
b. the Americans with Disabilities Act of 1990.
c. the National Labor Relations Act of 1935.
d. Title VII of the Civil Rights Act of 1964.
Loretta rents an apartment from Larry. Larry refuses to fix a serious plumbing problem,
and the apartment floods every time Loretta uses the water. Larry has breached
a. the implied warranty of habitability.
b. the covenant of quiet enjoyment.
c. the theory of respondeat superior.
d. the concept of unconscionability.
Over the course of a year, Real Deal Corporation sells appliances to customers to whom
it extends credit. Real Deal orders the appliances from Superior Appliance Company’s
warehouse, from which the items are shipped via common carrier to Real Deal’s
customers. Article 2 of the UCC governs
a. all of the parties’ sales of the goods.
b. Real Deal’s extension of credit.
c. Superior’s storage of the goods.
d. the common carrier’s delivery of the goods.
The Federal Emergency Management Agency (FEMA) discovers that Goodnuff
Trailers, Inc., is violating a FEMA regulation. If this situation is resolved like most such
disputes, the outcome will be
a. a negotiated settlement.
b. a trial and a fine.
c. a trial and an appeal to a higher authority.
d. a trial and the dissolution of the business.
The Equal Employment Opportunity Commission (EEOC) orders Fatcheck Financial
Company to reveal certain information. Fatcheck complains to a court, arguing that the
order is an abuse of the EEOC’s discretion. Like other agencies, the EEOC can use a
subpoena to
a. obtain any information, without limits.
b. obtain testimony or documents.
c. obtain documents, but not to compel a party to testify.
d. pressure a party to settle an unrelated matter.
Select Furniture Store sells household consumer goods on credit for which Select files a
financing statement to perfect a security interest in the goods. With the filing of
subsequent continuation statements, the effectiveness of the statement can be continued
a. indefinitely.
b. for no longer than five years.
c. for no more than six months.
d. up to five years and six months.
Bill orders 1,000 nails from Super Hardware, Inc. Super Hardware keeps its nails in
packages of 100,000. Bill and the agent for Super Hardware both sign the contract for
the sale of the nails on Monday. The agent separates 1,000 nails on Wednesday. The
agent delivers the nails to Bill on Thursday morning, and Bill pays for the nails on
Friday. Identification of the nails took place on
a. Monday.
b. Wednesday.
c. Thursday.
d. Friday.
Genetic Seed Company hires Howie to work on Genetic’s shipping dock, accepting
deliveries and dealing with other companies’ drivers. With respect to Genetic, Howie is
most likely
a. an agent.
b. an independent contractor.
c. a principal.
d. a e-agent.
Painless Dental Equipment Company is incorporated in Colorado. In Wyoming,
Painless is
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a non-entity.
Fact Pattern 33-1
Alpha Corporation needs to borrow money to meet its payroll. Blair, Alpha’s owner,
asks City Bank to loan Alpha the funds.
Refer to Fact Pattern 33-1. If City Bank insists that Blair sign the loan application to
assume liability for payment whether or not Alpha defaults, Blair will be
a. not truly liable because she signed only at City Bank’s insistence.
b. primarily liable.
c. secondarily liable.
d. tertiarily liable.
Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a
dog that will be good with small children. Carla sells Fred a dog. When Fred takes the
dog home, it bites both his small children and causes them serious injuries. Fred can sue
Carla for breach of
a. an express warranty.
b. an implied warranty of fitness for a particular purpose.
c. an implied warranty of merchantability.
d. a warranty of title.
Luke is an owner of Lucky Luke’s Corporation. Luke uses the corporate entity of Lucky
Luke’s to perpetuate fraud. In this case, a court is likely to expose Luke to personal
liability by
a. piercing the corporate veil.
b. issuing a de facto judgment.
c. issuing a de jure judgment.
d. issuing a ultra vires judgment.
Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its
closest competitor is Fluid Systems Company, another Florida firm. The two firms
agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north
Florida. This is
a. a group boycott.
b. a market division.
c. a joint venture.
d. an exclusive-dealing contract.
Lara induces Moe to enter into a contract for the sale of an apartment. Lara tells Moe
that her commission is 6 percent, but their signed, written contract states “12 percent.”
The Statute of Frauds governs
a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the merging of oral and written statements into one contract.
Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret.
The contract must be in writing if the pecans cost
a. $100.
b. $150.
c. $250.
d. $500.
Smalltown, Alabama is incorporated by the government. Smalltown is
a. a foreign corporation.
b. a public corporation.
c. a private corporation.
d. an alien corporation.
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.
As CEO of Alabama Archery Supplies, William always considers how he would like to
be treated by others in the same situation before making a decision. William tends to
make decisions based on
a. the categorical imperative.
b. the Golden Rule.
c. the principle of rights.
d. the Ten Commandments.
When a state regulation conflicts with a federal regulation
a. the federal regulation always takes precedence.
b. the state regulation always takes precedence.
c. sometimes the state regulation takes precedence.
d. the U.S. Supreme Court must decided which regulation takes precedence.
A negotiable instrument
a. need not be in writing.
b. must be fair to all parties.
c. must state a fixed amount of money.
d. need not be signed by the maker or drawer.
Sparky offers Teodora $1,000 for her collection of rare coins. She accepts. If a dispute
arises, a court would likely
a. enforce the deal after questioning the adequacy of consideration.
b. not question the adequacy of the consideration.
c. rewrite the deal after questioning the adequacy of consideration.
d. set aside the deal after questioning the adequacy of consideration.
Kwik Delivery Company buys a truck from Lucky Vehicles, Inc., under a contract
signed by Mina, Kwik’s president, making her personally liable if Kwik does not pay
the loan. Mina is
a. a guarantor.
b. a surety.
c. a co-surety.
d. a co-creditor.
Southern Distribution, Inc., signs a receipt for goods that will also serve as a contract
for the goods’ transport. This is
a. a bill of lading.
b. a destination contract.
c. a shipment contract.
d. a warehouse receipt.
Omega Company operates a computer chip production plant. Paula is the president of
Omega. Ron, a representative of the Occupational Safety and Health Administration,
inspects the plant and, citing a certain regulation, orders Omega to take specified steps
immediately to improve sanitation at the plant. Paula believes that Ron is either
exceeding his authority or that the regulation Ron claims to be enforcing is excessive.
Can Omega ask a court for an order to stop enforcement of the regulation? If not, what
can Omega do?
Entrepreneur Auto Rentals owes Sole Saver Auto Dealership $2,000. Entrepreneur
executes a note to Sole Saver as security for the debt. This security
a. does not constitute sufficient consideration for HDC status.
b. does not satisfy the value requirement for HDC status.
c. satisfies the consideration requirement for HDC status.
d. satisfies the value requirement for HDC status.
Bobby has 15 creditors. To force Bobby into bankruptcy proceedings, at least three
creditors must join the petition and their unsecured claims must add up to at least
a. $500.
b. $10,250.
c. $14,425.
d. $50,000.
Senator Brown and other politicians want to restrict the flow of technologically
advanced products and data from the United States to other countries. To restrict or
encourage exports, Congress can
a. do nothing.
b. assess antidumping duties.
c. impose export taxes.
d. set export quotas.
Regional Steel, Inc., and Overland Transport Company enter into a contract. Smooth
Oil Corporation, which will indirectly benefit from the deal, is prevented from having
rights under the contract by the principle of
a. assignment.
b. delegation.
c. privity.
d. vesting.
A person must have contractual capacity to be an agent.
Under the covenant of quiet enjoyment, a landlord promises that a tenant will not be
disturbed in the possession of the premises.
If a voidable contract is avoided, the parties to it are released from it.
Under the Uniform Commercial Code, a contract for the sale of goods priced at more
than $500 must designate the terms of payment.
Someone suffering from a mental illness may be incapable of the state of mind to
commit a crime.
Copyright protection is automaticregistration is not required.
Stating on an instrument the underlying terms of an agreement renders the instrument
nonnegotiable.
When a minor disaffirms a contract, he or she CANNOT keep whatever he or she has
received as a result of the contract without paying for it.
State constitutions are supreme within their respective borders.
Property insurance cannot be canceled for nonpayment of premiums.
The words used in an insurance contract are given special meaning.
It may be unethical for a company with a product that is outlawed in one country to
look elsewhere for a market.
The price that a secured party obtains on a sale of collateral is all that the creditor can
recover on the debt.
An employee cannot be discharged due to a garnishment order.
A person who is intoxicated when he or she signs a contract can void the contract only
if the intoxication was involuntary.
In most states, revocation becomes effective on receipt.
All forms of gambling are legal in all states.
A binder is an oral, temporary insurance policy.