Mariah promises to pay her assistant Nadine $10,000 in consideration of the ser-vices
she provided over the years. Mariah never pays Nadine. Mariah is
a. liable for payment of the $10,000.
b. liable only if Nadine still works for Mariah.
c. not liable, because the consideration is in the past.
d. not liable, because the consideration was unintentional.
Ruby Red Corporation is incorporated in South Carolina. In that state, Ruby Red is
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a non-entity.
To raise $12 million to expand operations, Star Corporation makes a stock offering
directly to sixty accredited investors and twenty sophisticated, but unaccredited
investors. Star plans to notify the SEC of sales. Under the Securities Act of 1933, this
issue may qualify as an “exempt transaction
a. as is.
b. if all of the investors are also given certain material information.
c. if the offering is also made available to the general public.
d. under no circumstances.
A claim of trademark dilution requires proof that consumers are likely to be confused
by a connection between the unauthorized use and the mark.
a. True
b. False
Connie, Drew, and Ellen are the general partners of Foreign Auto Repair, a lim-ited
partner-ship. Connie dies. The partnership can
a. continue only after a distribution of its assets.
b. continue only as a general partnership.
c. continue only if Drew and Ellen consent.
d. not continue because Connies death dissolves the firm.
The use of a persons likeness for commercial purposes without permission is an
invasion of privacy.
a. True
b. False
Before filing for bankruptcy, a consumer-debtor must receive credit counseling.
a. True
b. False
An easement can be created by prescription.
a. True
b. False
In 2012, Online Marketing Corporation registers its trademark as provided by federal
law. After the first renewal, this registration
a. is renewable every ten years.
b. is renewable every twenty years.
c. runs for the life of the corporation plus seventy years.
d. runs forever.
To obtain office supplies for All-Care Medical Clinic, Britney executes a draft in favor
of Chris. A draft is
a. a conditional promise to pay money.
b. an unconditional written order to pay money.
c. a qualified promise to set aside a sum of money.
d. a restricted promise to deliver goods at a future date.
In choosing a form of business organization for a new enterprise, important factors
include the liability of the owner.
a. True
b. False
Carol files a suit against Andy in a state trial court and loses. Carol
a. cannot take her case any higher in the court system.
b. can insist that the United States Supreme Court hear her case.
c. can plead her case before an appellate court.
d. can plead her case before a small claims court.
Middling Credit Corporation asks Little Supply Company to agree to a security
agreement that provides for coverage of the proceeds from the sale of after-acquired
prop-erty. This is
a. a first-in-time rule.
b. a floating lien.
c. a funds guaranty.
d. in violation of secured transactions law.
Pace is an attorney, whose clients include Quikfeet Running Shoes Company. Unless
Quikfeet has violated securities law, the contents of Paces file on Quikfeet may be
disclosed to someone other than Quikfeet
a. only to a third party who is a foreseeable user of the information.
b. only under a court order (with or without Quikfeets consent).
c. only with Quikfeets consent.
d. under any circumstances.
Global Investments Corporation buys and sells securities. Section 10(b) of the
Securities Ex-change Act of 1934 applies to
a. only the purchase or sale of a security involving an insider.
b. only the purchase or sale of a security involving short-swing profits.
c. only the purchase or sale of a security involving a tipper and tippee.
d. the purchase or sale of any security.
Justins posts on Facebook provide information that establishes his intent and what he
knew at a particular time, indicating potential liability. For this and other reasons, social
media posts are often
a. included in discovery in litigation.
b. used by law enforcement to detect and prosecute criminals.
c. used by federal regulators in investigations into illegal activities.
d. all of the choices.
The purpose of a corporation may be specified in its articles of incorporation.
a. True
b. False
Canada and the United States form an agreement to govern their commercial
ex-changes with one another. This is
a. a bilateral agreement.
b. a lateral agreement.
c. a multilateral agreement.
d. a unilateral agreement.
An employer may nothire an illegal immigrant under any circumstances.
a. True
b. False
An adhesion contract is a contract drafted by one party and presented to another on a
take-it-or-leave-it basis.
a. True
b. False
Barbara and Johann are parties to a contract. They agree on a novation. The novation
requires
a. the existence of a previous, valid obligation.
b. consideration greater than $5,000.
c. performance of the original contract by all of the parties.
d. an accord and satisfaction.
The law does not restrict the “fair use of methods for the circumvention of encryption
software or other technological antipiracy protection for educational and other
noncommercial purposes.
a. True
b. False
Beth, an accountant for Credits & Debits, acquires a negotiable instru-ment from Ellen
by promis-ing to pay its face value in thirty days. Beth ac-quires the status of an HDC
when she
a. acquires possession of the negotiable instrument.
b. agrees with Ellen to buy the negotiable instrument.
c. pays the face value due on the instrument.
d. transfers the instrument to another party.
Cory employs Daily Delivery Agency as an agent under a writ-ten agreement that
describes the rights and duties of both parties. This is
a. apparent authority.
b. equal authority.
c. express authority.
d. implied authority.
Jamie is redoing his kitchen and decides he needs a floor sander to complete the job.
Jamie tells Rachel, his neighbor, that he needs a floor sander. Rachel tells Jamie to call
Home Repair Rentals, Inc. Home Repair Rentals leases Jamie a floor sander. In this
transaction the lessor is
a. Jamie.
b. Rachel.
c. Home Repair Rentals.
d. both Jamie and Rachel.
Summer Breeze, Inc., contracts for the sale of fifty ceiling fans to Island Décor store. If
Summer Breeze fails to deliver the goods, Island Décor must commence a suit for
breach of contract within
a. four years.
b. not more than one year.
c. not less than four years.
d. thirty days.
Leah gains access to government records and alters certain dates and amounts in her
favor. This is
a. embezzlement.
b. forgery.
c. larceny.
d. no crime.
Quinn is an employee of Regional Industries, Inc. Quinn is threatened with a discharge
when he refuses a transfer to a Regional department in which several employees
suffered serious injuries from exposure to hazardous chemicals. Quinn may be entitled
to protection from discharge under
a. no law.
b. the Family and Medical Leave Act.
c. the Occupational Safety and Health Act.
d. the state workers compensation act.
Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks, Inc.The most
important factor in determining whether an ex-press war-ranty is created is whether
a. Sari expresses to Terrific what she wants warranted.
b. Saris desire for the SUV becomes part of her motivation to deal.
c. Terrific expresses to Sari what it expects of its customers.
d. Terrifics promise becomes part of the basis of the bargain.
Jonathon promises to pay child support and alimony to his ex-wife every month after
their divorce. Jonathon has
a. only a moral obligation to do keep his promise.
b. only a legal obligation to keep his promise.
c. both a legal and a moral obligation to keep his promise.
d. no obligation to keep his promise.
Frawsty Corporation distributes beverages in the greater Northwest. Frawstys board of
directors can delegate some of its functions to
a. Frawstys incorporators.
b. Frawstys officers.
c. Frawstys shareholders.
d. no one.
Each member country of the TRIPS agreement must include in its domestic laws
intellectual property rights.
a. True
b. False