A rule that is not automatically discriminatory, but which may be discriminatory in
practice because it excludes too many people in a protected group is considered
a. disparate treatment.
b. prima facie discrimination.
c. unbalanced treatment.
d. disparate impact.
Southern Bar-B-Q owns a special, secret recipe for sauce which it guards because it
gives the restaurant a competitive advantage. If Mort willfully misappropriates the
recipe, a court may hold him liable to Southern for double damages.
a. True
b. False
Under the laws of most states, a corporation cannot be held responsible for committing
crimes.
a. True
b. False
Master Glue Hairspray, Inc. contracts to purchase 100 umbrellas with its logo and
slogan, “A spray a day keeps the rain and wind away!” specially printed on the
umbrellas and its 1-800 telephone number on the umbrella handle. After the seller
completes the order, Master Glue refuses to accept or pay for the umbrellas. Because of
the special logo and telephone number, the seller has been unable to find a new buyer. If
the seller sues Master Glue, what is the proper measure of the seller’s damages?
a. Contract price minus market value of the goods at the time of delivery.
b. Contract price.
c. Lost profits.
d. Cover price minus contract price.
A tag attached to a tree in a nursery identifying the tree as a Southern Magnolia creates
an express warranty.
a. True
b. False
In hopes of speeding up the approval process and making it more accurate, the Patent
and Trademark Office has begun a pilot program which allows anyone to participate in
the patent approval process.
a. True
b. False
Millie ordered clothes from a mail order catalog. No time was specified as to when the
goods would be shipped. In such a case the FTC requires that the company must ship
the goods to Millie:
a. within 3 business days after receiving the order.
b. within 10 business days after receiving the order.
c. within 30 days after receipt of the order.
d. within a reasonable time and within time lines consistent with industry standards.
Generally speaking, an employer does not have to give workers a day off on their
religious Sabbath if doing so would cause an undue hardship for the employer.
a. True
b. False
Statements of facts about the past and present are called:
a. provisions and terms.
b. promises and covenants.
c. representations and warranties.
d. damages and remedies.
Hannah orally agrees to sell her house to Brett for $175,000. If she delivers the deed to
Brett with the expectation of payment in two weeks and he fails to pay, most courts will
not enforce the contract since it was not in writing.
a. True
b. False
Jack mails an offer to Joan that states, “I offer to sell you my car for $2000. If I don’t
hear from you in 10 days, I will assume you are willing to buy the car for the stated
price.” Jack hears nothing by the deadline and assumes he has a deal. What is the
result?
a. Jack has a deal. His offer was intended and contains definite terms.
b. Jack has a deal. Joan should have responded saying she is not interested in the car if
she didn’t want to be bound to the offer.
c. Joan is not bound. Generally an offeree must say or do something to accept an offer.
d. Joan is not bound. Ten days is not a reasonable amount of time to consider the offer
and accept by mail.
Which of the following statements is not true regarding the buyer’s right to cover?
a. The buyer must cover.
b. The measure of damages in a cover is the difference between the cover price and the
contract price.
c. Cover must be done by reasonably obtaining substitute goods.
d. Consequential damages can be recovered in addition to the cover damages.
The UCC recognizes commercial impracticability as a ground for discharge of a
contract.
a. True
b. False
Before filing a derivative lawsuit, shareholders must:
a. notify the board that the corporation has been wronged and ask the board to bring suit
in the name of the corporation directly.
b. notify the Secretary of State that the corporation has been wronged and ask the
Attorney General to file the lawsuit on behalf of the corporation.
c. hold a special meeting, and a majority of the shareholders must vote to file the
lawsuit.
d. place the lawsuit on the company’s proxy statement, and the proposal must receive a
majority vote.
A buyer who properly rejects goods:
a. can do so by sending the goods back in any manner.
b. must notify the seller of the rejection within a reasonable time.
c. must pay the costs of returning the rejected goods.
d. None of the above.
Contract rescission can sometimes be based upon a unilateral mistake.
a. True
b. False
Under Section 230 of the Communications Decency Act, Internet service providers are
held responsible for defamatory postings by their members or users.
a. True
b. False
The stated purpose(s) of Article 2 of the UCC is/are:
a. to simplify the law governing sales.
b. to permit the continued development of business practices through custom and usage.
c. to make the laws governing sales uniform among the various states.
d. All of the above are correct.
The United States Supreme Court has the power to:
a. appoint judges to serve on the Supreme Court.
b. declare an act of Congress unconstitutional.
c. issue executive orders.
d. ratify treaties.
Holt and Collins decide to have their dispute arbitrated by Corrales. Which of the
following will NOT be a result of the arbitration?
a. Corrales will render a binding decision.
b. Holt and Collins retain the right to a class action.
c. Holt and Collins give up the right to discovery.
d. Corrales need not give reasons for the decision.
Upon the recommendation of a friend, Hope hires Joey to rewire her kitchen and he
completes the work within the time agreed. Then Hope finds out that Joey is not a
licensed electrician, and she refuses to pay him for the work. A court will enforce the
agreement because otherwise Hope would be unjustly enriched.
a. True
b. False
International copyright protection:
a. is automatic for works created in member countries of the Berne Convention.
b. is granted for the life of the author plus 70 years under the Berne Convention.
c. is not yet available for computer programs.
d. lacks any enforcement capability for overseas infringement of works authored in the
United States.
A condition:
a. is created only when the phrase “provided that or a similar phrase introduces it.
b. is an event that must occur before a party becomes obligated under a contract.
c. must be expressly stated, although it can be created by informal language.
d. will not be enforced by the courts unless formal language is used, regardless of the
intent of the parties to create a condition.
A buyer has an absolute right to reject goods as long as the rejection is timely.
a. True
b. False
In order for the government to obtain a criminal conviction, it must prove its case
beyond a reasonable doubt.
a. True
b. False
The Moores lease contains a clause allowing their landlord to raise their rent during the
course of their lease if the landlords property taxes increase on the leased premises.
This clause is unenforceable, since tenants deserve to know their rent amount is fixed
during their agreed rental time.
a. True
b. False
You make an online purchase of a hooded sweatshirt with the logo of the Dallas
Cowboys. The next time you log on, your screen has a banner ad for Dallas Cowboy
hats and shirts. This banner ad is most likely the result of:
a. a cookie.
b. a coincidence.
c. the Internet crime of theft of private information.
d. encryption software.
Under European Union law, any agreement, contract, or discussion that distorts
competition within European Union countries is illegal.
a. True
b. False
Under the “perfect tender rule” the buyer may reject the goods if they fail in any respect
to conform to the contract.
a. True
b. False
E-presto, Inc. has established an EthicsLine. EthicsLine is a toll-free phone number that
employees can call any time of the day, any day of the week to discuss ethics and report
suspected unethical or improper conduct. Why would E-presto establish the EthicsLine?
a. Ethical behavior improves productivity.
b. Ethical behavior increases job stability.
c. Unethical behavior can destroy a business.
d. All of these are reasons that would justify establishing an EthicsLine.
Revised Article 9 of the UCC only applies to goods and does not include intangibles
such as accounts or chattel paper.
a. True
b. False
Hasbro, Inc., the trademark owner of “Candy Land,” sought a court injunction to stop
Internet Entertainment Group, LTD from using the domain name, “candyland.com.”
Internet Entertainment Group had established a sexually explicit site at the domain
name. This injunction would have to be issued by:
a. a jury.
b. a judge exercising equitable powers.
c. an executive order.
d. a subpoena.