Geoff serves in a representative capacity for Huck. To accomplish the objectives of this
relationship, Geoff’s authority can be implied
a. by contradiction.
b. by custom.
c. by lack of reason.
d. under no circumstances.
Milo files a suit against Nick in an Ohio state court, noting that Nick operates a Web
site through which Ohio residents have done substantial business with him. The court is
most likely to have jurisdiction over Nick if Milo’s claim arises from
a. anything an Ohio resident has done.
b. Nick’s Web site activities.
c. nothing an Ohio resident has done.
d. something other than Nick’s Web site.
Dizzy is not Edwina’s agent but enters into a contract with Frida on Edwina’s behalf.
Edwina later contacts Frida to affirm the contract. This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
Edgy Engine Components, Inc., a maker of vehicle parts, refuses to sell to Fidgety
Fix-It, Inc., a national vehicle service firm. Edgy Engine convinces Greasy Motor Parts
Company, a competitor, to do the same. This is
a. a group boycott.
b. a market division.
c. a joint venture.
d. an exclusive-dealing contract.
Julia is an agent who purchases wool for Kara’s Knitting Company. In the course of her
performance for Kara’s Knitting Company, Julia pays for the gas for the company car
and for some storage boxes for the wool. Kara’s Knitting Company must reimburse
Julia because of the principal’s
a. duty of performance.
b. duty of loyalty.
c. duty of compensation.
d. duty of reimbursement.
Hal’s True Hardware Stores and Ideal Tools, Inc., sign a written contract for a sale of
goods. To be enforceable, this written contract must include
a. a correct title, such as “Purchase Order” or “Sales Invoice.”
b. a date, such as “October 2014” or “10/2014.”
c. a quantity term, such as “50 hammers” or “100 boxes of assorted nails.”
d. the parties’ contact information.
Bella Homes enters into a contract to buy 132 acres from Watershed Holdings to
subdivide and sell in fifth-acre lots for Pristine Meadow, a residential development.
If Bella breaches the contract, Watershed’s remedy would most likely be
a. a certain ratio of the amount that Bella has in liquidated funds.
b. a percentage of Bella’s unrealized profit.
c. the difference between the land’s contract and market prices.
d. specific performance.
The Employee Polygraph Protection Act of 1988 prohibits most private employers from
doing all of the following except
a. requiring or causing employees or job applicants to take lie-detector tests.
b. using, accepting, or referring to, or asking about the results of lie-detector tests taken
by employees or applicants.
c. taking or threatening negative employment-related action against employees or
applicants based on results of lie-detector tests.
d. using lie-detector tests to investigate losses due to theft.
The E-Sign Act does not preempt the uniform version of the UETA.
In 2013, Congress enacts the Act to Restrict Commercial Speech (ARCS). The ARCS
will be considered valid if it directly advances a substantial government interest
a. but goes no further than necessary to achieve its purpose.
b. without regard to how “far” it goes.
c. and the parties affected by it can elect how “far” to go in applying it.
d. and goes further than necessary to ensure full coverage.
Ulrich files a suit against Vern to enforce a written contract. If the court finds that the
parties intended the contract to be the final statement of their agreement, parol evidence
can be admitted to prove
a. an orally agreed-on condition precedent.
b. terms discussed before the contract but not contained in it.
c. terms discussed at the time of the contract that contradict the written terms.
d. nothing.
Rita buys a Super Grill franchise. Super Grill requires that its franchisees buy its
products for every phase of their operations. Because Rita wishes to buy less expensive
products, she challenges the requirement. Her best argument is probably that the
requirement violates
a. the commerce clause.
b. the Equal Protection Clause.
c. the federal antitrust laws.
d. the First Amendment.
New Apps Company develops “Browser Lite” software, which speeds the display of
graphics on Web sites. Browser “Lite” has the most copyright protection under
a. the Berne Convention.
b. the Paris Convention
c. the TRIPS Agreement.
d. the Madrid Protocol.
Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes
for $4.50 per month. Nate accepts. If a dispute arises, a court would likely
a. enforce the deal after questioning the adequacy of the consideration.
b. not question the adequacy of the consideration.
c. rewrite the deal after questioning the adequacy of the consideration.
d. set aside the deal after questioning the adequacy of the consideration.
Susan takes her car to Ken’s repair shop and asks him to fix the car’s brakes. Ken
completes the work and sends Susan a bill for $100. Susan refuses to pay so Ken
refuses to return Susan’s car. Susan can probably successfully sue Ken for
a. battery.
b. conversion.
c. trespass to property.
d. none of the choices.
Trend-Rite Clothiers, Inc., sells t-shirts to Brand Name Stores, Inc., under an existing
contract. When textile costs increase, Brand agrees to a price increase, but later wants to
cancel the contract. Brand may
a. cancel the contract immediately.
b. cancel the contract only after accepting a final shipment.
c. cancel the contract only on reasonable notice.
d. not cancel the contract.
Doc’s Sports Club enters into a franchise agreement with Elite Fitness Centers that
provides for termination at any time for “cause.” Doc’s fails to meet Elite’s “Friends and
Family” membership sales quota. Is this “cause” for termination? Explain.
Sights Unseen, Inc., (SUI) sells telescopes with distinctively designed lenses and
mirrors. Later, without SUI’s permission, Telescopes Etc. Corporation begins to sell
scopes with identical structures of lenses and mirrors. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
The Tenth Amendment to the U.S. Constitution
a. reserves to the states all powers not granted to the federal government.
b. reserves to the federal government all powers not granted to the states.
c. requires each state in the union to have its own constitution.
d. does not exist.
As the beneficiary of a business trust, Kevin’s liability for trust debts and obligations is
a. limited to his capital investment in the trust.
b. limited to his personal assets.
c. nothing.
d. unlimited.
Finance Bank receives a check drawn on the account of Get-Rich Industries, Inc., one
of the bank’s customers, at 3 p.m. Friday. Hildy, the presenter of the check, is not one of
the bank’s customers. The bank uses deferred posting with a 2 p.m. cutoff hour. If it
decides to dishonor the check, it must do so by midnight
a. Saturday.
b. Sunday.
c. Monday.
d. Tuesday.
Clutch Auto Parts enters into a contract with Bio Health Club for discounted
memberships for Clutch’s employees. Bio breaches the contract and Clutch enters into a
contract with Apex Fitness for the same service at a lower price. Clutch might be
awarded nominal damages to
a. establish, as a matter of principle, that Bio acted wrongfully.
b. provide Clutch with funds for a foreseeable loss beyond the contract.
c. provide Clutch with funds for its loss of the bargain.
d. punish Bio and set an example to deter others from similar acts.
Jumbo Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the
Jumbo Juice trade name as a member of a select group of dealers that engage in retail
juice sales.
To potential investors, Jumbo Juice must provide
a. actual earnings figures.
b. hypothetical earnings figures.
c. projected earnings figures.
d. none of the choices.
Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc.
The contract states that Super Fruits is required to ship the cranberries to Big Red
Drinks by Speedy Wind Air Freight. The contract is
a. a bill of lading.
b. a destination contract.
c. a shipment contract.
d. a warehouse receipt.
Greta is the only female employee in the maintenance department of Hydraulics Inc.
Greta’s supervisor and co-workers tease and play tricks on her so relentlessly that she
feels compelled to quit. This is
a. a constructive discharge.
b. a destructive discharge.
c. an instructive discharge.
d. not a discharge.
Dana defaults on a debt to Rachel. Rachel will NOT be able to recover the debt from
a. the sale of Dana’s prize winning pet dog.
b. the sale of Dana’s investments in stocks.
c. Dana’s wages.
d. Dana’s lottery winnings.
Jack promises to buy Lizette’s used textbook for $60. Jack is
a. an executor.
b. an offeree.
c. a promisee.
d. a promisor.
Call Center Corporation, a U.S. firm, owns property in India. The government of India
seizes the property for a proper public purpose and pays Call Center just compensation.
This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
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.
Farouk uses his computer to break into Global Financial Center’s computer. Farouk is a
a. hacker.
b. phisher.
c. worm.
d. virus.
The U.S. corporation Fun Toys, Inc. sets up a firm in China. The parent company
remains in the United States and retains complete ownership of the China branch as
well as complete authority and control over all phases of the operation. This is
a. a franchise.
b. a wholly owned subsidiary.
c. a joint venture.
d. direct exporting.
FlavorBean Coffee Company agrees to buy an unspecified quantity of coffee beans
from Global AgriCorp. Global breaches the contract. In FlavorBean’s suit to obtain
relief, the court will most likely
a. award a reasonable quantity of beans to FlavorBean.
b. award FlavorBean all the beans that it requires.
c. award Global’s output of coffee beans to FlavorBean.
d. have no basis for determining a remedy.
Ray is a shareholder of Small Biz Company (SBC). When the directors fail to undertake
an action to redress a wrong suffered by SBC, Ray files a suit on the firm’s behalf.
Ray’s suit is a shareholder’s
a. business-judgment rule suit.
b. derivative suit.
c. duty-of-care suit.
d. duty-of-loyalty suit.
Build-Rite Construction Corporation and Deals-R-Us, Inc., combine their efforts to
build an office and retail complex. Their form of business organization is
a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.
Cutter Company makes and sells table saws, which are designed to be safe if used
properly. Erin buys a Cutter saw and lends it to her neighbor Frank. To reach a toolbox
on a high shelf in his garage, Frank props the saw at an angle against a cabinet and
climbs onto the saw. Frank loses his footing, slips off the saw, falls on the blade, and is
injured. He files a product liability suit against Cutter, on the ground of negligence. On
what basis could the maker prevail?
Against a charge of a violation of the Securities Act of 1933, only an issuer of stock can
assert the due diligence defense.
A person who enters into a contract when he or she is intoxicated can void the contract
under any circumstances.
A mechanic’s lien can be enforced to obtain payment for work that adds value to real
property.
If a principal does not ratify an unauthorized contract, the principal is not bound.
The amount in controversy in a diversity of citizenship case must be more than $1
million before a federal court can take jurisdiction.
In most states, the seller of a new house warrants that it is fit for habitation.
In a share exchange, one corporation will issue shares or pay some fair consideration to
the shareholders of another corporation that will then cease to exist.
An easement arises when the owner of one piece of land occupies the real property of a
neighbor and eventually acquires title to it.
A promise to do what one already has a legal duty to do constitutes legally sufficient
consideration.
A criminal case must be proved beyond a reasonable doubt.
After two years of research and the investment of considerable funds, Coast-to-Coast
Company (CC) develops a new product that it hopes will produce substantial profits.
CC learns that a competitor, National Sales, Inc., has made and begun to sell a nearly
identical product. CC learns from a reliable source that National paid a CC employee to
obtain the plans for CC’s product while it was in development. What legal recourse does
CC have against National?
Setting realistic workplace goals can increase the probability that employees will act
unethically.
In contracts involving a sale of unborn animals to be born within twelve months,
identification takes place when the animals are born.
A franchise exists when the owner of a copyright licenses its use to another party to sell
goods or services.
An agent has a duty to keep and make available to the principal an account of all
property and funds received and paid out on behalf of the principal.