Ruff Games, Inc., wishes to acquire a controlling interest in Smart Toy Company by
buying its stock. Smart Toy is
a. an alien corporation.
b. an acquiring corporation.
c. a receiver.
d. a target corporation.
Valley Bank retains the cancelled checks of its customers. Valley must be able to
provide customers with legible copies of checks paid for
a. one year.
b. five years.
c. seven years.
d. nine years.
Bob, research manager for CornAgri Products, Inc., applies utilitarian ethics to
determine that an action is morally correct when it produces the greatest good for
a. Bob.
b. CornAgri.
c. the fewest people.
d. the most people.
Portia owes Bon $500 on their contract, but refuses to pay. To collect, Bon files a
mechanic’s lien, under which security for the debt is represented by
a. Portia’s personal property.
b. Portia’s real estate.
c. the $500 owed under the contract.
d. the contract.
Rita is appointed as an agent for Superior Sales, Inc. The agency agreement is silent as
to the level of sales that Rita is expected to achieve. She must
a. achieve nothing because the agreement says nothing on the issue.
b. attain the level that Rita achieved with her previous employer.
c. maintain the level Superior attained before Rita became an agent.
d. use reasonable diligence and skill in selling.
Toro, S.A., which is based in Mexico, enters into a contract for the purchase of portable
livestock fencing from United Fencing Company, which is based in the United States.
This contract is governed by
a. Mexican law.
b. the provisions in the laws of both countries that are similar.
c. the Uniform Commercial Code.
d. the United Nations Convention on Contracts for the International Sale of Goods.
Uma wants to initiate a suit against Valley Vacation Tours by filing a complaint. The
complaint should include
a. an explanation to refute any defense the defendant might assert.
b. a motion for summary judgment.
c. a motion to dismiss.
d. a statement of the facts necessary to show Uma is entitled to relief.
Salt Corporation wants to acquire or merge with Pepper Corporation. Salt should
a. file a plan of merger with the secretary of state.
b. file an article of merger with Pepper.
c. make a tender offer to the shareholders of Pepper.
d. make a tender offer to the shareholders of Salt.
Paula develops a new espresso machine that she names “Sure Shot.” She also writes an
operating manual for the machine. Paula can obtain trademark protection for
a. the espresso machine.
b. the “newness” of the espresso machine.
c. the name “Sure Shot.”
d. the operating manual.
Carly is a minor. Without her parents’ knowledge, she signs a contract to buy an
airplane ticket to Hawaii for spring break. Carly’s parents are
a. liable for the contract.
b. not liable for the contract.
c. liable for up to half the value of the goods in the contract.
d. liable for up to one third of the value of the goods in the contract.
Antonin, a federal judge, retires. The vacant position will be filled by a judge
a. appointed by the United States Supreme Court.
b. elected by voters.
c. appointed by the President.
d. appointed by Congress.
Rollo promises to perform, for a price, shoe repair services in affiliation with Togs “n
Things, a clothing store. To support a contract, the consideration exchanged by the
parties must be
a. adequately considerate.
b. equally valuable.
c. legally sufficient.
d. wisely priced.
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.
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.
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.
Under Ohio’s state constitution, the Ohio Environmental Protection Agency issues a
new rule, the Polk County Commission approves a new property tax measure, and the
professors and students at Ohio Law School publish the results of their most recent
legal research. Sources of law do not include
a. the measures approved by local governing bodies.
b. the results of legal scholars’ research.
c. the rules issued by state administrative agencies.
d. the states’ constitutions.
Dreem Land Corporation and EZ Investments Company transfer their property to
Financial Managers, Inc., which manages the property and distributes the profits to
Dreem and EZ. This form of a business organization is
a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.
Gilbert finds an iPad on the counter at Starbucks. He takes the iPad to the police
station’s lost and found desk. The officer at the desk tells Gilbert that if the iPad is not
claimed in a certain amount of time, Gilbert can obtain title to it. This is an example of
acquiring possession by
a. an estray statute.
b. a bailment.
c. confusion.
d. production.
Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the
estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos’s
bid is significantly low. Any contract with AgriCo-op that includes the mistake may be
rescinded
a. if AgriCo-op knew or should have known of the mistake.
b. if Lewis’s supervisor did not know of the mistake.
c. if Silos knew or should have known of the mistake.
d. under no circumstances.
Memphis Music Makers Incorporated has a stated purpose to sell musical instruments.
If chief executive officer Tabitha contracts with Frenzied Firearms in Memphis Music
Makers’s name to sell a shotgun, she has likely committed
a. an ultra vires act.
b. a de facto act.
c. a de jure act.
d. a legal act.
A failure to follow generally accepted accounting principles and generally accepted
auditing standards is proof of a lack of due diligence.
A party to a licensing agreement generally agrees to pay royalties on some basis.
An unconscionable contract is one that is so unfair and one sided that it would be
unreasonable to enforce it.
Section 10(b) of the Securities Exchange Act of 1934 covers only corporate officers and
directors.
Cooperative research by small-business firms is exempt from antitrust law.
To commit an intentional tort, one person must intend to harm a certain person.
Those who knowingly violate the Clean Air Act are exempt from criminal penalties.
A promise that an employer makes in an employee handbook regarding discharge will
not be considered part of an implied contract.
A writ of execution applies to a debtor’s nonexempt real or personal property wherever
located.
An employer has no control over an employee’s work.
Under the UCC, parties to a contract cannot limit or exclude consequential damages.
A financing statement must include the creditor’s signature.
A corporation can recapture any profits realized by an insider on any purchase or sale of
the firm’s stock within any six-month period.
Generally, federal securities law are patterned after states’ antifraud laws.
In some states, misrepresentation of age by a minor is enough to prohibit disaffirmance.