Evermore Corporation and Trendy Goods, Inc., enter into a contract. To be enforceable,
the contract must include
a. no particular signatures.
b. the signatures of all parties to the deal.
c. the signature of the party against whom enforcement is sought.
d. the signature of the party who is seeking enforcement.
Cost-benefit analysis is part of
a. duty-based ethics.
b. Kantian ethics.
c. rights-based ethics.
d. utilitarian ethics.
Amelia dies without a will. A court appoints Bill to handle the probate of Amelia’s
estate. The administrator is
a. Amelia.
b. Amelia’s eldest heir.
c. Bill.
d. the clerk of the court.
Jonathan has not been paying rent for his apartment, and he has violated his landlord’s
pet policy. The landlord sends an eviction notice to Jonathan. The eviction notice is
a. governed by the E-SIGN Act.
b. not governed by the E-SIGN Act.
c. governed by Article 2 of the UCC.
d. governed by Article 2A of the UCC.
Milo files a suit against Nisa Corporation under the doctrine of promissory estoppel.
Milo must show that
a. Milo justifiably refused to fulfill a promise to Nisa.
b. Milo justifiably relied on Nisa’s promise to his detriment.
c. Nisa justifiably refused to fulfill a promise to Milo.
d. Nisa justifiably relied on Milo’s promise to its detriment.
Owen takes a Paisley-made pinball machine to Quality Games, Inc., for repair. Lacking
certain parts, Quality ships the game to Regal Repair Company. Regal does not return
the game. Most likely to suffer the loss is
a. no one.
b. Owen.
c. Paisley.
d. Regal.
Kerin obtains a property insurance policy for her art collection from Lawton Insurance
Company. Kerin can cancel the policy
a. at any time.
b. only at the end of a period for which a premium has been paid.
c. only if Kerin no longer has an insurable interest in the property.
d. only on advance written notice.
Truck Transport Company is subject to a decision by the National Labor Relations
Board. Truck Transport appeals the decision, arguing that it is arbitrary and capricious.
This could mean that the decision
a. followed a consideration of legally appropriate factors.
b. justifiably changed the agency’s prior policy.
c. was accompanied by a rational explanation.
d. plainly contrary to the evidence.
Keri’s will states, “I give to my sister Liz my condominium in Malibu, California.” This
is
a. a general bequest.
b. an abatement.
c. a residuary.
d. a specific devise.
Criminal acts are prohibited by
a. local statutes only.
b. state statues only.
c. federal statutes only.
d. local, state, or federal statutes.
Chris, a minor, signs a contract to purchase alcoholic beverages for Dine & Drink, his
parents’ restaurant. The contract is
a. valid but may be disaffirmed.
b. valid but may not be disaffirmed.
c. void as a matter of law.
d. void unless it is also signed by Edie, the manager of Dine & Drink.
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.
Portia owes Bon $500 on their contract, but refuses to pay. To collect, Bon files a
mechanic’s lien, under which security for the debt is represented by
a. Portia’s personal property.
b. Portia’s real estate.
c. the $500 owed under the contract.
d. the contract.
Vieux Carr S.A., a French firm, imports its goods into the United States and offers those
goods for sale at “less than fair value.” “Fair value” is the price of
a. comparable goods in a select “basket” of other countries.
b. Vieux Carr’s goods in France.
c. Vieux Carr’s goods in the United States.
d. Vieux Carr’s goods on the world market.
Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the
ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against
Hua in Indiana. Regarding this suit, Indiana has
a. federal jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.
Mary Kate Corporation allows Ashley Company to use Mary Kate’s trademark as part
of Ashley’s domain name. This is
a. a license.
b. a likelihood of consumer confusion.
c. cybersquatting.
d. trademark dilution.
Rob is a surety for Sue’s loan from Total Finance Company. Rob’s right to ‘step into the
shoes” of Total Finance, after paying Sue’s debt, and exercise any of the Total Finance’s
rights against Sue is the right of
a. contribution.
b. redemption.
c. reimbursement.
d. subrogation.
U-Can-Own-It Corporation sells appliances to less educated consumers, including Vi,
on installment plans. U-Can-Own-It files a suit against Vi when she stops making
payments. Vi claims that the deal is unconscionable. The court will most likely consider
a. the geographic area of the relevant market.
b. the parties’ relative bargaining power.
c. the quality of related products in the general market.
d. the relation of this deal to those of other customers.
Intoxicated, Clio agrees to sell her restaurant, Diners Caf, to Evan for half of its real
market value. This deal is most likely void if
a. Clio appeared intoxicated to Evan.
b. Clio disaffirms the contract after becoming sober.
c. Clio was so intoxicated as to have no memory of the deal.
d. Evan fraudulently induced Clio to become intoxicated.
Wilson wants to file an ordinary, or straight, bankruptcy. Wilson should file using
a. Chapter 7.
b. Chapter 11.
c. Chapter 13.
d. his state’s bankruptcy code.
July induces Kelli to enter into a contract for the purchase of a condominium about
which July knowingly misrepresents its need for repair. When Kelli discovers the truth,
Kelli can
a. enforce the contract and seek damages.
b. enforce the contract but not seek damages.
c. neither enforce the contract nor seek damages.
d. seek damages but not enforce the contract.
Albert’s All-You-Can-Eat Buffet is a national chain with restaurants in every state.
Under the Patient Protection and Affordable Care Act of 2010, Albert’s must post the
a. caloric content of the foods.
b. origin of the foods.
c. price of the foods.
d. chemical composition of the foods.
Rosa and Sean are directors of Tech, Inc. Rosa’s written authorization to Sean to vote
Rosa’s shares at a Tech shareholders’ meeting is
a. a violation of the duty of care.
b. a preemptive right.
c. a proxy.
d. a quorum.
Mia’s voluntary petition for bankruptcy is found to be proper. The order for relief is
effective as soon as
a. Mia files the petition.
b. Mia posts a bond to cover the costs of the proceedings.
c. Mia’s creditors agree to the terms.
d. the trustee collects and distributes the property of Mia’s estate.
Commercial Shipping, Inc., and Dock Services Corporation enter into a contract for
Dock to load Commercial’s trucks for which Commercial agrees to pay Dock. Dock
transfers its duty to load the trucks to East Harbor Transport Company. Dock is
a. a delegator.
b. an assignor.
c. a payor.
d. a third party beneficiary.
John writes a check to Kayla as payment for a DVD player but soon discovers the
player is broken. He goes to the drawee bank and orally authorizes Larry, a bank officer,
to stop payment on the check. This order is valid for
a. fourteen days.
b. fourteen months.
c. thirty days.
d. six months.
Secure Investments, Inc., a U.S. firm, expands into international markets through a joint
venture. In this situation, Secure owns
a. all of the operation, and its profits and liabilities.
b. all of the operation, and none of its profits and liabilities.
c. none of the operation, and none of its profits and liabilities.
d. part of the operation, and shares its profits and liabilities.
Jackie’s will states, “I leave my red sports car to Angela.” This is
a. a specific legacy.
b. a devise.
c. an execution.
d. a general legacy.
Pam buys from Midtown Motors a used sport utility vehicle (SUV). The SUV was
manufactured by Gem Vehicles, Inc., and previously owned by Ron. Regarding title to
the SUV, Pam acquires
a. whatever title Midtown had.
b. whatever title Gem had.
c. whatever title Ron had.
d. no title.
Food Packagers Union represents the workers of Garden Variety, Inc. The company
does not require its workers to join the union as a prerequisite to obtaining employment.
The union would like the employer to require the workers to join after a specified
amount of time on the job. This would violate
a. federal labor law.
b. federal full employment law.
c. federal employment discrimination law.
d. no federal law.
GR8 Vision, Inc., hires Haul-Way Company to transport fifty large-screen HDTVs from
GR8’s warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The
bailee is
a. GR8 Vision.
b. Haul-Way.
c. Ideal Electronics.
d. no one.
National Ladder Company is subject to regulations issued by the Occupational Safety
and Health Administration (OSHA). Like other federal administrative agencies, the
OSHA was created by
a. Congress, through enabling legislation.
b. the Federal Trade Commission, through the rulemaking process.
c. the president, through an executive order.
d. the U.S. Department of Labor, through a final order.
Which of the following CANNOT be registered as a trade name?
a. Pear Blossom, Certified Public Accountant
b. Apples & Oranges, Investment Partnership
c. Banana Republic Clothing, Inc.
d. Strawberries
Fee simple ownership rights can be limited by zoning, noise and environmental laws.
College Copy Shop (CCS) compiles, copies, and sells reading materials to students on
the instructions of their professors, who indicate which parts of which publications
should be included. These include texts published by Deep Topics, Inc. CCS does not
obtain the permission of Deep Topics, or any of the other original publishers of the
copied materials, and does not pay royalties on the sales of the compilations. Deep
Topics and others file a suit against CCS, alleging infringement of the plaintiffs’
intellectual property rights. Which type of intellectual property is involved in this
situation? What is CCS’s likely defense? How is a court most likely to rule? Explain.
A holder takes an instrument for value if he or she gives a check as payment for it.
A quasi contract arises from a mutual agreement between two parties.
Efrem owns Fans & Players, a retail sporting goods shop. When Great Hill Lodge, a
new ski resort, is built in the area, Efrem decides to expand and borrows a large sum
from Hometown Bank. The bank takes a security interest in Efrem’s present inventory
and any after-acquired inventory as collateral for the loan. The bank properly perfects
the security interest by filing a financing statement. Efrem’s business is profitable, and
he begins doubling his inventory. A year later, an avalanche destroys the ski slope and
lodge. Efrem’s business takes a turn for the worse, and he defaults on his debt to the
bank. The bank seeks possession of his entire inventory, even though the inventory is
twice as large as it was when the loan was made. Efrem claims that the bank has rights
to only half of his inventory. Is Efrem correct? Explain.
A business firm can sometimes predict whether a given action is legal.
Unlawfully taking personal property is conversion.
A trademark can be diluted by the use of a similar mark.
A creditor can demand payment from the surety BEFORE the debt is due.
The good faith requirement applies to both the holder and the transferor.
Constructive delivery occurs when property is physically transferred.
Article I, Section 8, of the United States Constitution permits Congress to regulate
interstate commerce.
In determining the legality of a merger, a crucial consideration is market concentration.
The primary measure of monopoly power is a competitor’s assessment of the acts of a
firm under review.
An instrument does not need to be portable to be negotiable.
Forbearance is the act of refraining from doing something that one has a legal right to
do.
A bank that encodes information on an item after its issue warrants to any subsequent
bank that the information is correct.
Most contracts are discharged by rescission.
“Unless otherwise explicitly agreed,” title passes to the buyer at the time at which the
seller orally agrees to deliver the goods.
The certificate of incorporation describes the internal rules of management for a
corporation.