Ira is declared mentally incompetent. Jay, Ira’s son, is named his guardian. At Jay’s
insistence, Ira transfers his assets to Jay “for safekeeping.” A court might conclude that
this gift is not effective on the ground that there was no
a. acceptance.
b. delivery.
c. donative intent.
d. donor’s acknowledgment.
Corn that fills County Grain Co-op’s silo is fungible if the corn is
a. alike naturally, by agreement, or by trade usage.
b. fundamentally different.
c. fun, good, and edible.
d. rotting due to a leaky roof and a delay in shipping.
Without a permit, Timberline Plywood Company discharges its untreated wastewater
into Urban City’s storm drainage pipes, which empty into Valley Creek. Under the
Clean Water Act, this discharge is most likely
a. a violation.
b. not a violation because the company does not have a permit.
c. not a violation because water is not a stationary source.
d. not a violation because a storm drainage pipe is not a point source.
Atlantic Applications, Inc., and Pacific Resale Company (PRC) enter into an oral
contract for Atlantic’s sale to PRC of six used forklifts for $1,900 each. Before PRC
takes possession of the items, this contract is enforceable by
a. either party.
b. neither party.
c. Atlantic only.
d. PRC only.
The Nuclear Regulatory Commission (NRC) files a complaint against General
Construction Corporation (GCC). GCC may want to settle the dispute, before formal
adjudicatory proceedings begin, to avoid
a. appearing uncooperative.
b. eliminating the need for additional proceedings.
c. rectifying the problem to the NRC’s satisfaction.
d. saving the expense of formal proceedings and later appeals.
Norma files a petition in bankruptcy. She turns her assets over to O”Brien, who sells
them and then distributes the proceeds to Norma’s creditors. O”Brien is a
a. preferred creditor.
b. bankruptcy court judge.
c. bankruptcy trustee.
d. debtor.
Bea is a shareholder of Candy Confections Corporation. The right to inspect corporate
books and records is
a. held by Bea only if she is a director.
b. held by Bea, without restrictions.
c. held by Bea, with some restrictions.
d. not held by Bea.
Horace can write checks on his account at InterCity Bank. Jemma steals the checks,
forges Horace’s signature, and cashes the checks at InterCity. The bank is excused from
any liability if, after receipt of the first forged check, Horace fails to report the forgeries
within
a. fourteen days.
b. one year.
c. six days.
d. six months.
Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage’s recovery from
Sudan in a U.S. court may be prevented by
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the Foreign Corrupt Practices Act.
d. the principle of comity.
A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation
contains a clause stating that any assignment is “void.” This ordinarily prohibits
a. any assignment.
b. no assignment.
c. only an assignment of contract rights to personal services.
d. only an assignment that would change the obligor’s risk.
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.
Travis sends Suri what purports to be a link to an e-birthday card, but when she clicks
on the link, software is downloaded to her computer to
record her keystrokes and send the data to Travis. He uses the data to obtain her
personal information and access her financial resources. This is
a. identity theft.
b. cyberterrorism.
c. entrapment.
d. no crime.
Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week.
When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays
$450 per week for a year. Ilsa is entitled to recover
a. the amount of the wages that Handy promised only.
b. the difference between the wages at the two jobs only.
c. the difference between the wages at the two jobs plus $100.
d. $100 only.
The Class Action Fairness Act of 2005
a. shifted jurisdiction over certain class-action lawsuits from the state courts to the
federal courts.
b. shifted jurisdiction over certain class-action lawsuits from the federal courts to the
state courts.
c. made forum shopping punishable by large fines.
d. limited the amount of damages that could be awarded in a medical malpractice suit.
Kai files a suit against Lana based on one of Lana’s statements that Kai alleges is
fraudulent. To give rise to fraud, the statement must be one of
a. emotion.
b. fact.
c. illusion.
d. opinion.
California enacts a statute to ban advertising in “bad taste.” This statute would likely be
held by a court to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
Selena buys a cell phone for $350 and an air hockey table for $1,500, and signs a
one-year employment contract for a $4,000 monthly salary to start at the beginning of
the next month. The Statute of Frauds covers
a. the employment contract, and the game table and phone purchases.
b. the employment contract and the game table purchase only.
c. the employment contract only.
d. the game table and phone purchases only.
Natural Foods, Inc., orders “Grade A” oil from Olive Grove Farms to process and sell to
Pic “N Pay Grocers. Olive Grove ships “Grade B” oil, which Natural Foods accepts. To
recover damages for the nonconformity, Natural Foods must give notice of the breach
within a reasonable time to
a. Olive Grove only.
b. Olive Grove, Pic “N Pay, and the appropriate government agency.
c. Pic “N Pay only.
d. the appropriate government agency only.
Nika owns land in Ohio. Her ownership rights include the right to sell or give away the
property without restriction, and the right to commit waste, if she chooses.
Nika’s ownership interest is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. an easement.
Treadwell Tire Manufacturing Company employs Uri as an agent. To terminate Uri’s
authority, Treadwell must notify
a. only third parties who are aware of the agency relationship.
b. the public generally.
c. Uri and any third parties who are aware of the agency relationship.
d. Uri only.
Cory believes that he and Dian agreed that he would act as her personal sports trainer
for seven workout sessions. In a later dispute, the existence of any contract can be
judged by
a. the parties’ intent as expressed in their contract.
b. what the defendant claims was the parties’ intent.
c. what the plaintiff claims was the parties’ intent.
d. what the parties agree they intended.
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-Five’s board of directors.
b. the later re-registration of Hi-Five’s securities.
c. the short-swing activities of Hi-Five’s insiders.
d. the solicitation of proxies from Hi-Five’s shareholders.
Phoebe enters into a contract with Everest for a guided tour of Whitewater Canyon.
Everest acts as though he is an experienced, knowledgeable guide, when in reality he
has never been in the canyon. Phoebe is most likely a victim of
a. undue influence.
b. fraud.
c. mistake.
d. nothing.
In La Junta, Carlos and Alvaro contract for the sale of five hundred head of Carlos’s
cattle for $95 per head. Unknown to either party, a unforeseen storm has struck the herd
and many of the cattle have died. Alvaro is
a. entitled to recover the value of the lost cattle.
b. not required to pay due to the bilateral mistake.
c. not required to pay due to the unilateral mistake.
d. required to pay because he assumed the risk the cattle might die.
Civil law
a. defines, describes, regulates, and creates legal etiquette.
b. spells out the rights and duties that exist between persons and between persons and
their governments.
c. establishes the methods of enforcing the rights established by criminal law.
d. has to do with the wrongs committed against society for which society demands
redress.
Jaycee is a shareholder for Designer Pet Clothes, Inc. Designer Pet Clothes uses
cumulative voting to elect directors. This means that the number of Jaycee’s votes is
determined by
a. how long Jaycee has been a shareholder.
b. the number of members of the board to be elected multiplied by the total number of
voting shares Jaycee holds.
c. the number of shareholders present at the most recent shareholders’ meeting.
d. the number of shareholders’ meetings Jaycee has attended in the past year.
Echo enters into an agreement with Deep Pan Pies, Inc., to operate a franchise in Centre
City. Later, Deep grants franchises to others within the city. Echo files a suit to close
them. If the court rules in Echo’s favor it will most likely be on the ground that
a. Deep violated the antitrust laws.
b. Deep violated the implied covenant of good faith and fair dealing.
c. Echo paid a franchise fee.
d. Echo was the first Deep franchisee in Centre City.
If a bank is both the drawer and the drawee with regard to a draft, then the draft is a
a. certificate of deposit.
b. cashier’s check.
c. nonnegotiable instrument.
d. promissory note.
Pikabo files an employment discrimination suit against Quantitative Analysis, Inc.,
under the Civil Rights Act of 1964, based on its discharge of Pikabo. Possible relief
includes
a. imprisonment.
b. reinstatement.
c. fines.
d. an order to shutdown the employer’s business.
Joli, acting within the scope of her authority for the Cake Bake Shop, contracts with
Valley View Berry Farms to buy an assortment of fruit. Cake Bake is liable on the
contract, and Joli is not, if Cake Bake is
a. a disclosed principal.
b. a partially disclosed principal.
c. an undisclosed principal.
d. an apparent agent.
City Manufacturing Corporation conditions shipments of its products to Exurb Stores,
Inc., on Exurb’s agreement not to buy products from Regional Works Company, City’s
competitor. This is
a. an exclusive-dealing contract.
b. a tying arrangement.
c. price discrimination.
d. a unilateral refusal to deal.
Valley Tack Shop signs a contract with Gary’s Boots and Saddles for delivery of five
saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written
contract must designate
a. the method of delivery.
b. the method of payment.
c. the quantity of saddles.
d. the seller.
Ric designs a new tablet computer that he names “Sci Phi.” He also writes the operating
manual to be included with each final product. Ric can obtain patent protection for
a. the tablet computer.
b. the “newness” of the tablet computer.
c. the name.
d. the operating manual.
Preemption occurs when Congress chooses to act exclusively in a concurrent area and a
valid federal statue or regulation takes precedence over a conflicting state or local law.
Consideration is the value given in return for a promise.
When deciding which form of business organization to choose, businesspersons
normally consider only one factor.
Stored-value cards are a form of digital cash.
In a fee simple absolute, the owner has the greatest aggregation of rights, privileges,
and power possible.
An insurer has a duty to avoid the payment of claims.
A transaction that lacks a bargained-for exchange lacks an element of consideration.
A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort
allegedly committed overseas.
An option contract is created when an offeror promises to hold an offer open for a
specified period of time in return for a payment given by the offeree.
In most situations, a termination statement must be filed or sent within twenty days
after the debt is paid.
Before any interest in specific goods can pass from the seller to the buyer, the goods
must exist and be identified to the contract.
A partnership ends if one partner dissociates from the firm.
In a dispute between Cosmic Games Corporation and Mythic Engineering Associates,
Inc., the court applies the doctrine of stare decisis. What is this doctrine? What does this
doctrine have to do with the American legal system?
The key to liability under Section 10(b) of the Securities Exchange Act of 1934 and
SEC Rule 10b-5 is whether undisclosed inside information is material.
Bob is shopping in Carl’s Hardware Store when a nail gun in use by Dan, one of Carl’s
employees, fires without warning and hits Bob in the leg. Carl checks the gun and
discovers that it was assembled improperly. Bob files a suit against Eagle Tools, Inc.,
the manufacturer of the gun, for product liability, on the ground of strict liability. What
are the elements for an action based on strict liability? In whose favor is the court likely
to rule and why?
A discharge in bankruptcy will ordinarily prevent creditors from enforcing most of the
debtor’s contracts.
A student loan is discharged under Chapter 13 unless the creditor can show “undue
hardship.”