Labor Recruiters, Inc., has been ordered to appear at a hearing before an administrative
law judge of the National Labor Relations Board. A significant difference between a
trial and an administrative hearing is that
a. attorneys are not allowed to attend administrative hearings.
b. clients are not allowed to communicate with their attorneys during administrative
hearings.
c. hearsay can be introduced as evidence in an administrative hearing.
d. the burden of proof is on the charged party to prove innocence.
Exotic Stuff Company and First Pier, Inc., form a business organization to engage in
importing and exporting. Its property is held in the names of the members and its
shareholders have personal liability. This business organization is
a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.
Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of
Bolivia seizes the property for an illegal purpose without paying just compensation.
This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Mineral Resource Company contracts to provide several manufacturers with tin. When
a cartel of tin-producing countries suddenly embargoes future shipments of tin to
Mineral Resource so that it cannot fulfill its contracts, the distributor
a. can substitute some other material for the tin.
b. is excused from the performance of its contracts.
c. is liable for breach of contract.
d. must still supply the tin needs of its customers.
Hoppy, who works as an employee for Imperial Power Corporation, suffers an injury in
an accident. Hoppy will be compensated under state workers’ compensation laws
a. only if the injury occurred during working hours.
b. only if the injury occurred off the job.
c. only if the injury occurred on the job.
d. whenever and wherever the injury occurred.
Debit & Credit Accounting Services and Brickwork Construction Company negotiate a
contract. Terms in the contract that are the subject of separate negotiation will be
considered subordinate to
a. standardized terms.
b. terms that can be understood only by lawyers and judges.
c. terms that are not negotiated separately.
d. none of the choices.
Barb, a real estate agent, is showing John a house. She tells him that this is a house
where “his family can live happily ever after.” John buys the house, but his wife does
not like it. John
a. can rescind the contract on the ground of fraud.
b. can rescind the contract on the ground of misrepresentation.
c. can rescind the contract on the ground of mistake.
d. was not defrauded.
Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They believe the
land to be worthless, but beneath it is a gold mine. A court would
a. cancel the contract due to Byron’s failure to know the land’s value.
b. cancel the contract due to Charity’s failure to know the land’s price.
c. cancel the contract due to the difference between the contract price and the market
price.
d. enforce the contract.
Beef Burgers, Inc. contracts to buy five hundred steers from Fattening Feedlots. Before
Fattening Feedlots can deliver the steers, there is an outbreak of disease in the feedlot,
and all the cattle are quarantined. In this case the perfect tender rule
a. applies to both parties.
b. does not apply.
c. applies only to Beef Burgers.
d. applies only to Fattening Feedlots.
Tristan hires Stefani to perform at Tristan’s Club, but she breaches the agreement to
accept a higher-paying job at Rock Star Arena. Tristan files a suit against her. The court
will most likely
a. award damages to Tristan.
b. cancel Stefani and Rock Star’s contract.
c. order Stefani to perform the contract.
d. reform Tristan and Stefani’s contract.
Organic Farms Company contracts to buy two tracts of land from Prime Bottomland,
Inc. Both parties believe that the two tracts are adjacent, but in fact they are not. Prime
Bottomland is still willing to sell the land, but under these circumstances the deal would
adversely affect Organic Farms. The parties’ belief about the adjacency of the property
is
a. a bilateral mistake.
b. a fraudulent misrepresentation.
c. a unilateral mistake.
d. unconscionable.
Kelsey obtains a business liability insurance policy from Loyal Insurance Company for
Kelsey’s Framing & Art Supplies store. When an event occurs that gives rise to a claim,
Loyal has a duty to
a. investigate to determine the facts.
b. file a suit against Kelsey so that a court can settle the claim.
c. find a third party on whom to impose liability.
d. refund any unearned amount of the premium.
Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana a
a. prediction.
b. promise.
c. bilateral contract.
d. void contract.
John Jones decides to use his personal name for a line of clothing he is developing.
Whether or not the name John Jones acquires a secondary meaning will depend on
a. how extensively John markets his line of clothing.
b. the market for John’s line of clothing.
c. the number of clothing sales John makes.
d. all of the choices are correct.
Popular Movies Corporation wants to gain control of Quality Films, Inc. The companies
negotiate for several months, without coming to terms. Popular Movies decides to
pursue a takeover attempt. Quality Films decides to resist.
Quality Films solicits a merger with Real2Reel Corporation, a third party, which makes
a better offer to Quality Films’s shareholders. Real2Reel is a
a. crown jewel.
b. Pac-Man.
c. poison pill.
d. white knight.
ViolentVideoGames, Inc. markets a variety of shooting, fighting and hunting video
games. A state statue is enacted that requires all video game manufacturers to label any
games with an option to kill something as “excessively violent.” A court would likely
hold this regulation 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.
Trudy forges Uma’s signature on a check “payable to the order of Trudy” drawn on
Uma’s account in Verity Bank. Most likely, if the bank pays the check
a. the Federal Reserve will reimburse all parties for their costs.
b. the loss will be apportioned among all of Verity’s customers.
c. Uma will be liable for the amount.
d. Verity will have to recredit Uma’s account.
Raul agrees to ship to Ben one hundred ceiling fans for $5,000. Raul initials his notes of
the deal, which include the terms, and files the notes in his office. Ben initials his own
notes of the deal, which include the terms, and files the notes in his office. Raul fails to
ship the fans. Against Raul, as a contract, the deal is
a. enforceable, because under the UCC a contract need not written.
b. enforceable, because Raul’s initialed notes are a sufficient writing.
c. enforceable, because Ben’s initialed notes are a sufficient writing.
d. not enforceable.
Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson’s farm
acreage for four corn-planting seasons. After Jaime prepares the land and plants the first
crop, Karson says that their deal is off. Jaime can most likely recover
a. in quasi contract.
b. in reformation.
c. in restitution.
d. on the parties’ existing contract.
Obie accuses Portia, a broker with QT Financial Services, of fraudulently inducing him
to invest in Risky Development Company, whose stock price declines in value. The
reliance that gives rise to liability for fraud requires
a. a subjective statement.
b. misrepresentation of a fact knowing that it is false.
c. puffery.
d. seller’s talk.
A provision in the California state constitution conflicts with a provision in the U.S.
Constitution. If challenged
a. neither provision will be enforced.
b. the provisions will be balanced to reach a compromise.
c. the state provision, not the U.S. Constitution, will be enforced.
d. the U.S. Constitution, not the state provision, will be enforced.
Beachside City enacts an ordinance that bans the distribution of all printed materials on
city streets. Carl opposes the city’s latest “revenue-enhancing” measure and wants to
protest by distributing handbills. In his suit against the city, a court would likely hold
the printed-materials ban 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.
App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive
officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max
and ten other student interns. With respect to the contract, Max is
a. an intended beneficiary.
b. an incidental beneficiary.
c. a delegatee.
d. an assignee.
Mona is induced by her guardian Newt to sign a contract to invest her student loan
funds in Overseas Bank through Newt’s investment firm. Unknown to Mona, Newt
realizes ongoing commissions from the investment. Most likely, Mona may
a. not rescind the contract.
b. rescind the contract on the basis of undue influence.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of opinion.
Megan, an agent for a department store, orders one hundred dresses from Sal’s Clothing
Shop for the Spring Blossom Sale. There is no specific agreement in the sale contract
indicating when title will pass to the department store. The title will pass to the
department store when
a. Megan signs the contract.
b. Megan and the Sal’s Clothing Shop agent sign the contract.
c. Sal’s Clothing Shop physically delivers the dresses to the department store.
d. Megan pays Sal’s Clothing Shop for the dresses.
Rita believes that Shady Grove Apartments, Inc., her landlord, has violated the law in a
way that entitles her to withhold the rent. This remedy is generally associated with
a. breach of the covenant of quiet enjoyment.
b. breach of the implied warranty of habitability.
c. discrimination.
d. failure to provide security against crimes in common areas.
Billy opens a bicycle shop that sells an innovative new kind of bicycle. He decides to
call the bicycles “Bicycles.” Billy extensively markets his product, has a high sales
volume and becomes well known for selling Bicycles. The term Bicycle
a. is automatically protected against trademark infringement.
b. receives no protection against trademark infringement.
c. can be registered as a trademark to obtain protection against trademark infringement.
d. can be registered as a certification mark.
Justin wants to file a suit against Mikayla. For a court to hear the case
a. Mikayla must agree.
b. the court must have jurisdiction.
c. the court must issue a deposition.
d. the parties must own property.
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.
The shares of Home Mortgage Corporation are publicly traded in securities markets.
Home Mortgage Corporation is
a. a close corporation.
b. a privately held corporation.
c. a public corporation.
d. a publicly held corporation.
Mountaineer Sales, Inc., is the offeror and Camping Goods Corporation is the offeree
under a unilateral sales contract in which Forest Recreation Products Company is also
interested. Mountaineer is not notified of Camping’s performance within a reasonable
time. Mountaineer
a. may treat the offer as having lapsed.
b. must assume that Camping has started to perform.
c. must contact Camping.
d. must contract with Forest.
Federal law governs garnishment actions.
Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition
television sets to a new retail customer, Tuner TV Store, on May 1, with payment to be
made on delivery. Signal tenders delivery in its own truck. Tuner’s manager notices that
some of the cartons have scrape marks. Tuner’s owner phones Signal’s office and asks
whether the sets might have been damaged as they were being loaded. Signal assures
Tuner that the sets are in perfect condition. Tuner tenders Signal a check, which Signal
refuses, claiming that the first delivery to new customers is always for cash. Tuner
promises to pay the cash within two days. Signal leaves the sets with Tuner, which
stores them in its warehouse pending its “Grand Opening Sale” on May 15. Two days
later, Tuner’s stocker opens some of the cartons and discovers that a number of the sets
are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in
breach by not paying on delivery. Will Signal succeed on these claims? Explain.
A check is not negotiable if it is payable on demand.
If a partnership’s liabilities are greater than its assets, the partners bear the losses.
The board of directors of each corporation involved must approve a merger.
The primary responsibility for preventing and controlling air pollution rests with the
federal government.
Injured individuals can rely on the common law to obtain damages and injunctions
against business polluters.
A warranty deed provides the most protection against defects of title.
After the first board, the directors are chosen by the corporate officers.
When a corporation earns profits, it must pass them on to shareholders in the form of
dividends.
In most contracts, promises of performance are not expressly conditioned.
To avoid liability for negligence, a business owner must protect its patrons against all
risks.
31. The use of threats to force a party to enter into a contract is undue influence.
The right to petition for bankruptcy relief under federal law may be a necessary evil in
our capitalistic society.
According to German philosopher Immanuel Kant, individuals should evaluate their
actions in light of the consequences that would follow if they were the only members of
society that acted in that way.
The extreme risk of an activity is a defense against imposing strict liability.
Ordinarily, “ignorance of the law” is a valid defense to criminal liability.
An agency must conduct a regulatory flexibility analysis whenever a new regulation
will have an impact on a “small number of substantial entities.”
The legality of an action is always clear.
Common law is the same as statutory law.