The Constitution sets out the authority and the limits of the branches of the government.
The term checks and balances means that
a. Congress writes checks and the other branches balance the budget.
b. each branch has some power to limit the actions of the others.
c. the courts balance their authority to the other branches’ checklists.
d. the president “checks” the courts, which “balance” the laws.
Precision Auto Parts contracts to buy a Quotient-brand computer network set-up from
Regal Systems for $5,000, but Regal fails to deliver. Precision buys the network else-
where for $6,500. Precision’s measure of damages is
a. $1,500 only.
b. $1,500 plus incidental damages.
c. incidental damages only.
d. $0.
Bell Medical Education Service enters into a contract to employ Chris as an instructor
for two years to begin May 1. One month before the term begins, Bell is underbid by a
competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire
Chris.
. Under the circumstances, with respect to damages, Chris can
a. bring an action immediately.
b. bring an action only after the contract’s two-year term begins.
c. bring an action only after the contract’s two-year term ends.
d. do nothing.
Todos Ltd. agrees to supply United Steel, Inc., with minerals from Venezuela. When the
government is unexpectedly overthrown in a revolution, Todos can obtain the goods
only at a much higher price. United agrees to pay but later files a suit to recover the
difference. The court will most likely rule that
a. a change in government is a risk ordinarily assumed in business.
b. an unforeseen difficulty supported the contract modification.
c. Todos engaged in extortion or the so-called holdup game.
d. Todos had a preexisting duty to supply the goods at the initial price.
Ramblin” Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for
$1 per shoe. When the market price decreases to 50 cents per shoe, Ramblin” refuses to
go through with the deal. Blacksmith can recover
a. $1,500.
b. $1,000.
c. $500.
d. $0.
Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders
Corporation. The agreement states that delivery is to be within “3” days, although the
parties intend “30” days. Refined cannot convince Select to amend the contract. Refined
should seek
a. damages.
b. reformation.
c. rescission.
d. specific performance.
Mike is arrested at a warehouse in North Industrial Park. A government prosecutor
issues a formal charge against Mike for receiving stolen property. This charge is
a. an arraignment.
b. an indictment.
c. an information.
d. an inquisition.
Mary Kate Corporation allows The Ashley Company to use Mary Kate’s trademark as
part of The Ashley Company’s domain name. This is
a. a license.
b. a likelihood of consumer confusion.
c. cybersquatting.
d. trademark dilution.
Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a “personalized”
letter inviting him to buy any item in the catalogue at the advertised price. This is
a. an offer because of the “personalized” letter.
b. an offer because there is no room for price negotiation.
c. an offer only if Dean previously bought items from CSI.
d. not an offer.
Naomi and Ogden are shareholders of MediCare Residences, Inc. As shareholders, they
must approve
a. conducting a merger.
b. deciding to pursue new business opportunities.
c. terminating a managerial employee.
d. negotiating a contract between management and labor.
Zero Sum Games Corporation has forty-three shareholders. The minimum number that
must be present at a meeting for a shareholders’ vote is
a. all of the shareholders.
b. a quorum.
c. a proxy.
d. three of the shareholders.
Following negotiations with Lester’s Landscaping for maintenance services for a lawn
and garden, Moore enters into an informal contract. This means that the parties’ contract
a. requires no special form.
b. is not enforceable.
c. is not a true contract.
d. is voidable.
Myra claims that a Nebraska state statute infringes on her “procedural due process”
rights. This claim focuses on
a. procedures used in making decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Mary’s privacy.
Twyla buys a bicycle from U-Pik-It Bike Store, which agrees to keep the bike for Twyla
until she picks it up. Before Twyla gets the bike, a fire destroys the store and the bike.
The loss is suffered by
a. neither Twyla nor U-Pik-It
b. Twyla and U-Pik-It.
c. Twyla only.
d. U-Pik-It only.
Julius is a judge. How the Julius and the judges in other courts interpret a particular
statute determines
a. how that statute will be applied.
b. how the law needs to be changed.
c. how the common law should be codified.
d. nothing.
Bret and Courtney form Delite Donuts, Inc. Ultimate responsibility for policy decisions
necessary to the management of corporate affairs rests with Delite’s
a. board of directors.
b. incorporators.
c. officers.
d. shareholders.
Congress enacts the Advertising Restriction Act (ARA. The ARA will be considered
valid if it directly advances a substantial government interest and
a. goes no further than necessary.
b. without regard to how “far” it goes.
c. parties affected by it can elect how “far” to apply it.
d. goes further than necessary to ensure full coverage.
Ollie buys a cup of coffee for $2, a magazine for $5, and a boombox for $600. The
requirement of a writing for the enforceability of a contract for a sale of goods at, or for
more than, a certain price is governed by
a. the common law.
b. the parol evidence rule.
c. the parties’ agreement.
d. the Uniform Commercial Code.
Jill tells Ken, who has no knowledge of literary comedy, that she will tutor him in the
subject for $50. As an offer, this is
a. effective.
b. not effective, because comedy is not a serious subject.
c. not effective, because Jill’s tutoring will be subjective.
d. not effective, because Ken has no knowledge of the subject.
Mike, an advocate of a certain religion, publishes an article in New Times magazine
insisting that Congress base all federal law on his religion’s principles. The First
Amendment guarantees Mike’s freedom of
a. religion only.
b. speech only.
c. the press only.
d. the press, speech, and religion.
Krystal is a federal judge. Krystal’s judicial decisions are part of case law. This law
includes interpretations of primary sources of law. These sources include
a. administrative regulations.
b. articles in law reviews and other legal journals.
c. compilations summarizing court decisions on particular topics.
d. legal encyclopedias.
Webline Retail Sales, Inc., promises its salaried employees a bonus at the end of the
year if management thinks it is warranted. This promise is
a. enforceable.
b. unenforceable because it is not supported by consideration.
c. unenforceable because the dollar amount is missing.
d. unenforceable because the employees are paid salaries.
Rural Development Corporation (RDC) and Sid enter into a contract for the
clear-cutting of RDC’s fifty-acre tract for which RDC agrees to pay Sid. Sid transfers
his duty to log the tract under the contract to Timber Logging Company. Timber is
a. a delegatee.
b. an assignee.
c. an obligee.
d. a donee.
Neil represents himself as a contractor in Ohio, but he is not licensed in that state. A
contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in
Ohio is
a. enforceable only if Pam does not object after learning of Neil’s status.
b. enforceable only if Pam knows that Neil is unlicensed.
c. enforceable only if the outcome is successful.
d. not enforceable.
The graphics used in Go! a handheld computer game featuring racing cars, is protected
by
a. copyright law.
b. patent law.
c. trademark law.
d. none of the choices.
Fay is admitted to Global Associates, an existing partnership. A partnership debt
incurred before the date of her admission comes due. Fay is
a. not liable for the debt.
b. only liable for the debt up to the amount of her capital contribution.
c. personally liable only to the extent the other partners do not pay.
d. personally liable to the full extent of the debt.
Levon leaves his truck at MakeRight Vehicle Shop for repair. When Levon refuses to
pay for the work, MakeRight refuses to give him possession of the truck. MakeRight
has committed
a. malicious prosecution.
b. no tort.
c. trespass to personal property.
d. wrongful interference with a contractual relationship.
Jody owns KuppaJava Kiosks, a sole proprietorship. Jody’s liability is
a. limited by state statute and varies from state to state.
b. limited to the extent of capital expenditures.
c. limited to the extent of his or her original investment.
d. unlimited.
Ethical standards would most likely be considered violated if Retail Mart Corporation
deals with a company in a developing nation that
a. agrees to produce goods at Retail Mart’s desired price.
b. goes unnoticed by “corporate watch” groups.
c. exploits its workers.
d. pays its workers less than the U.S. minimum wage.
Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain
health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is
awarded compensatory damages, the purpose would be to
a. establish, as a matter of principle, that ISI acted wrongfully.
b. provide Hybrid with funds for a foreseeable loss beyond the contract.
c. provide Hybrid with funds for its loss of the bargain.
d. punish ISI and set an example to deter others from similar acts.
Odell and Paula sign a contract for the sale of Odell’s Pizza Parlor to Paula. The parties
intend their written contract to be a final statement of most, but not all, of the terms of
their agreementOdell must first buy the building from Quin, after which Odell and
Paula will negotiate a final price.
Paula later disputes some of the provisions of the deal with Odell. If the dispute results
in litigation, a court will most likely admit evidence of
a. ambiguous additional terms.
b. consistent additional terms.
c. contradictory additional terms.
d. fraudulent additional terms.
Omar hires Petra, a real estate broker, to act as his agent to sell his land for $150,000.
Oil is discovered beneath the land, causing its market value to increase considerably.
The agency agreement is likely
a. still in force if Omar gives Petra additional consideration.
b. still in force if Petra does not tell prospective customers.
c. terminated by mutual consent of the parties.
d. terminated by operation of law.
A court cannot exercise jurisdiction over an out-of-state defendant who has only done
business in the state over the Internet.
If an action is ethical from an outcome-based perspective, then it cannot be ethical from
a duty-based perspective.
An event must be certain to occur to constitute a contract condition.
Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines
Winery for $1,200. The contract states that delivery is to be made at Ellen’s residence
“on or before May 1, to be used for daughter’s wedding reception on May 2.” On May
1, Grapes & Vines’s delivery van is involved in an accident, no wine is delivered that
day, and no one from Grapes & Vines tells Ellen. On the morning of May 2, Ellen buys
the wine from Happy Hill Winery. That afternoon, just before the reception, Grapes &
Vines tenders delivery of the wine at Ellen’s residence. She refuses tender. Grapes &
Vines sues her for breach of contract. How is the court most likely to rule?
A lessee is a party who transfers a right to the possession and use of goods under a
lease.
Perpetrator is the term for a person who commits a tort.
Reliance on a misrepresentation is justified if the misrepresentation is an obviously
extravagant statement.
A water pipe bursts, flooding an Invidious Workplace Company utility room and
tripping the circuit breakers on a panel in the room. Invidious contacts Jordan, a
licensed electrician with five years experience, to check the damage and turn the
breakers back on. Without testing for short circuits, which Jordan knows that she should
do, she tries to switch on a breaker. Jordan is electrocuted and disabled, but survives to
sue Invidious for damages, alleging negligence. What might Invidious claim in
defense?
If no time for acceptance is specified in an offer, the offer terminates at the end of a
reasonable time.
All collateral promises must be in writing to be enforceable.
An innocent party can enforce a fraudulent contract.
The measure of damages for breach of a construction contract depends on which party
breaches and when.
Punitive damages are never awarded in breach of contract actions.
A void contract produces legal obligations on the parties but is not otherwise
enforceable.
A party who confers a benefit on someone else unnecessarily can invoke the principle
of quasi contract to recover the cost.
Quasi contracts allow the courts to act as if a contract exists when there is no contract.