Clear Day Company, which is based in Delaware, agrees to sell fifty windows,
currently stored in Florida, to Far Vu, Inc., which is based in Hawaii. Absent an
agreement to the contrary, the place of deliv-ery is in
a. California.
b. Delaware.
c. Florida.
d. Hawaii.
Identification, risk of loss, and insurable interest are all concepts that are involved in
determining the rights and liabilities of parties to a contract.
a. True
b. False
Julia orders twelve violins for her music shop from Notable Notes Instrument
Manufacturers. The sale is made on credit. Julia orders the violins on May 1, Notable
Notes ships the violins on May 2, and Julia receives the violins on May 4. Julia sells all
the violins by June 15. Julias credit period most likely began on
a. May
b. May
c. May
d. June
Ron signs an instrument using an “R with a circle around it. With this mark for a
signature, the instrument is
a. negotiable.
b. nonnegotiable, because an initial does not state the signers name.
c. nonnegotiable, because an initial is not a signature.
d. nonnegotiable, because a simple initial implies a lack of binding intent.
Starlight Café brings a suit, seeking a remedy at law. A remedy at law is
a. the payment of money or property as compensation for damages.
b. a decree of specific performance.
c. a judicial proceeding for the resolution of a dispute.
d. an injunction.
Only outsiders who would ordinarily be deemed fiduciaries of the corporations in
whose stock they trade can be liable for insider trading.
a. True
b. False
Often, when both parties to a contract are mistaken as to the same material fact, either
party can rescind the contract.
a. True
b. False
Forest & Field Company makes and leases a backhoe to Zac. Due to a defect
attributable to Forest & Fields negligence, Zac is injured in an accident in which his
neighbor Aaron is also hurt. In a product liability suit based on negligence, Forest &
Field may be liable to
a. Aaron only.
b. no one.
c. Zac and Aaron.
d. Zac only.
Following a union election campaign by Service Employees International Union among
the employees of Quality Hotels & Resorts, Inc., the union does not obtain a majority
vote in the election. This most likely violates
a. federal labor law.
b. federal elections law.
c. federal employment discrimination law.
d. no federal law.
Travis sends Suri what purports to be a link to an e-birthday card, butwhen she clicks
on the link, software is downloaded to her computer torecord her keystrokes and send
the data to Travis. He uses the data toobtain her personal information and access her
financial resources. This is
a. identity theft.
b. cyberterrorism.
c. entrapment.
d. no crime.
Federal law permits the intentional interception of any wire, oral, or electronic
communication.
a. True
b. False
Finance Professionals Union represents the workers of Business & Commerce Banking
Corporation. The management of the firm refuses to bargain with the union. This
violates
a. federal labor law.
b. state right-to-work laws.
c. federal wage and hour laws.
d. no federal or state law.
If no children or grandchildren survive a decedent who dies without a will, a surviving
spouse is entitled to the entire estate.
a. True
b. False
Bette backs out of City Parking Garage, colliding with Dills car. Dill may recover
$7,500 to cover the cost of the repairs if Bette failed to act as
a. a blameless person.
b. a faultless person.
c. a realistic person.
d. a reasonable person.
On a trade acceptance, the drawer is also the payee.
a. True
b. False
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.
Susan takes her car to Kens repair shop and asks him to fix the cars brakes. Ken
completes the work and sends Susan a bill for $100. Susan refuses to pay so Ken
refuses to return Susans car. Susan can probably successfully sue Ken for
a. battery.
b. conversion.
c. trespass to property.
d. none of the choices.
An ordinary holder can recover nothing on an instrument that has been materially
altered.
a. True
b. False
Jayson and MaryElise enter into a contract. Jayson agrees to mow MaryElises yard
every week for the summer. MaryElise is the
a. obligor.
b. obligee.
c. assignee.
d. assignor.
Shakira issues a check drawn on Thrifty Bank to Ranch & Farm Supply to pay for a
rototiller. Later, Shakira discovers a defect in the device and orders Thrifty to stop
payment on the check. Shakira does not renew the order, and the bank clears the check
eight months later. The bank
a. must recredit Shakiras account.
b. must obtain funds from Ranch & Farm to cover the check.
c. must substitute acceptable goods.
d. need not recredit Shakiras account.
A courts review of an arbitrators award may be restricted.
a. True
b. False
A tenant is responsible for all damage to leased premises.
a. True
b. False
Kelly is injured when she slips and falls on Laylas sidewalk. To determine whether
Layla owed a duty of care to Kelly, Layla is subject to the standard of
a. a realistic person.
b. a reasonable person.
c. a recognizable person.
d. a reliable person.
Zeke files a petition for bankruptcy under Chapter 13. Zekes Chapter 13 plan must
provide for
a. the turnover of his future income to the trustee.
b. his attendance at a credit-counseling briefing.
c. adequate means for the petitions execution.
d. a preference for one creditor over another.
A car is tangible personal property.
a. True
b. False
Frothy Beverage Corporation is a public company whose shares are traded in the public
securities markets. Under the Securities Act of 1933, Frothy is required to
a. contribute to the operations of national stock exchanges.
b. disclose financial and other information about its securities.
c. engage in market surveillance to deter undesirable practices.
d. solicit proxies for voting
Under the UCC, prompt shipment of goods is considered an acceptance of an offer to
buy the goods.
a. True
b. False
A corporation has an implied power to extend credit to those with whom it has a legal
or contractual relationship.
a. True
b. False
A corporation cannot be formed without a profit-making purpose.
a. True
b. False
CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register
“calltalk as its second-level domain. Later, CallTalks less successful competitor,
CellTalk Company, chooses to use and register “caltalk (an intentional misspelling of
“calltalk) as its second-level domain. Still later, Call&Talk, Inc., uses the domain name
“callltalk (also a deliberate misspelling of “calltalk) without CallTalks authorization, to
sell pornographic phone conversations.
Refer to Fact Pattern 6-2. By using a similar domain name to CallTalks, CellTalk is
most likely attempting to profit from its competitors
a. goodwill.
b. fair use.
c. license.
d. safe harbor.
A false statement by an expert to a naive buyer usually will entitle the buyer to rescind
or reform a contract.
a. True
b. False
Real estate brokers are independent contractors.
a. True
b. False