In reviewing the actions of the U.S. Office of Nuclear Energy and other agencies, the
courts
a. are usually reluctant to review questions of fact.
b. rarely defer to the technical expertise of administrative agencies.
c. often rule on the merits of policy determinations.
d. never defer to an agency’s interpretation of law.
Ben is a shareholder of Cotton Fabric, Inc., whose management is considering
extending its operations through some type of combination or acquisition with Denim
Dungaree Corporation. Ben could normally exercise appraisal rights if Cotton Fabric
participates in
a. a sale of substantially all of the corporate assets.
b. a dissolution.
c. a tender offer.
d. none of the choices.
Shale Oil, Inc., files a petition in bankruptcy for relief through a reorganization and
assumes the role of a debtor in possession. In this role, Shale Oil is similar to
a. a creditor at a creditors’ meeting.
b. an individual debtor who is denied a discharge under the means test.
c. a secured creditor in possession of collateral.
d. a trustee in a liquidation.
Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.
Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an
implied warranty of fitness of a particular purpose arises
a. if the buyer is relying on the seller to select suitable goods.
b. if the buyer asks for it.
c. if the seller is a merchant who deals in goods of the kind sold.
d. in conjunction with lease contracts, not sales contracts.
Ryan invents a pen that digitally “remembers” what is written or drawn with it. To
obtain a patent for the pen, Ryan does not have to show that it is
a. novel.
b. marketable.
c. useful.
d. not obvious in light of current technology.
Digital Products Company includes a shrink-wrap agreement in a transaction with
Eagle Engineering Corporation. A shrink-wrap agreement is an agreement whose terms
are expressed
a. in code at the end of a computer program .
b. inside a box in which goods are packaged.
c. in small print at the end of a paper contract signed by both parties.
d. on a computer screen.
Any decision by the management of Fast-Food Franchise Corporation may significantly
affect its
a. operators only.
b. operators, owners, suppliers, the community, or society as a whole.
c. owners only.
d. suppliers, the community, or society as a whole only.
Jon says to Kristy, “I would like to sell you my sports memorabilia collection.” This is
not an offer because it
a. does not describe the subject matter sufficiently.
b. does not include a price term.
c. only expresses an opinion.
d. only invites Kristy to negotiate.
iTablets, Inc., files a suit against Andromeda Pads Corporation. Suri is a witness for
iTablets. Kevin is a witness for Andromeda. iTablets may direct interrogatories to
a. Andromeda.
b. Suri.
c. Kevin.
d. the judge.
Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like
other holders of common stock, they have a residual position in the overall financial
structure of Discount Retail, because they
a. are guaranteed to receive more than the amount of their investment.
b. are the last to receive returns for their investment.
c. have priority to the firm’s assets if it becomes insolvent.
d. reside in the state of the firm’s incorporation.
Bill and Stacy enter into a contract that falls within the provisions of the UETA. Under
the UETA, “information that is inscribed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable form” is
a. an e-document.
b. an e-signature.
c. an e-transaction.
d. a record.
Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret.
The contract must be in writing if the pecans cost
a. $100.
b. $150.
c. $250.
d. $500.
Ergonomic Corporation convenes its employees for its managers to announce (1) a new
company-wide ethical code of conduct, (2) an ad campaign to publicize the new code,
and (3) the discharge of employees who do not adhere to the code. One of the most
effective ways to set a tone of ethical behavior within a business organization is
a. to create an ethical code of conduct.
b. to discharge employees who create the appearance of impropriety.
c. to post a marketing campaign online touting the firm’s ethical tone.
d. for management to direct employees to “do as we say, not as we do.”
Greta is a member of Hovercraft LLC. As a member, Greta is
a. a manager or officer, but not an owner.
b. an investor, but not a manager, officer, or owner.
c. an owner.
d. a participant, but not an investor, manager, officer, or owner.
Mallory’s sister gives Mallory a leather working kit for Christmas. Mallory uses the kit
to make a saddle. Mallory’s acquisition of the saddle is by
a. a bailment.
b. accession.
c. confusion.
d. production.
Joey reproduces Mina’s copyrighted work Storm on the Mountain without paying
royalties. Joey is most likely excepted from liability for copyright infringement under
the “fair use” doctrine if
a. Joey copies the entire work.
b. Joey distributes the copies without charge to the public.
c. Joey’s use has no effect on the market for Mina’s work.
d. Joey’s use is for a commercial purpose.
Dhani, an accountant for Eureka, Inc., learns of undisclosed company plans to market a
new laptop. Dhani buys 1,000 shares of Eureka stock. He reveals the company plans to
Fay, who buys 500 shares. Fay tells Geoff, who tells Hu. Both Geoff and Hu buy 100
shares. They know that Fay got her information from Dhani. When Eureka publicly
announces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit.
If Dhani is liable under the Securities Exchange Act of 1934, it will be because the
information on which he based his purchase of Eureka stock was
a. a forward-looking forecast.
b. not material.
c. not yet public.
d. not yet true.
Merry Music Inc. and Nayda enter into a contract for Nayda to write six songs for
which Merry Music agrees to pay her. Nayda transfers her right to payment under the
contract to Omni Artists Agency. In the transfer of rights, Nayda is
a. a delegator.
b. an assignor.
c. an obligor.
d. an alien.
Mary creates a t-shirt design that expresses her support for a presidential candidate and
distributes t-shirts to all her friends. The t-shirts are an example of
a. unprotected speech.
b. controlled speech.
c. symbolic speech.
d. illegal speech.
John steals an old, battered bicycle that is parked, unlocked, in front of a convenience
store. He repairs, paints, and replaces parts on the bike until it is like new. The original
owner, Kim, claims the bike. The bike belongs to
a. John and Kim as tenants in common.
b. John because he made substantial improvements to it.
c. John because Kim claimed it only after John improved it.
d. Kim because John stole it.
Rita borrows $30,000 from South State Credit Union. South State accepts Rita’s equity
in her home as collateral, which can be seized if the loan is not repaid on time. This is
a. a home equity loan.
b. an adjustable-rate mortgage.
c. an interest-only mortgage.
d. a violation of the law.
Brad, Carlos, and Dora are general partners in Eastside Physicians, a medical clinic.
Brad’s dissociation from the firm results in
a. the automatic termination of the firm’s legal existence.
b. the partnership’s buyout of Brad’s interest in the firm.
c. the immediate maturity of all partnership debts.
d. the temporary suspension of the partnership’s business.
Trevor’s operates The Spicy Chocolatier Caf chain of restaurants. “The Spicy
Chocolatier Caf” is a
a. certification mark.
b. collective mark.
c. service mark.
d. trade name.
Toby is an accountant whose clients include U-All Company. If Toby is negligent in his
work for U-All, most courts would hold him liable to U-All and
a. any third party.
b. no third party.
c. third parties who are foreseen users of the work.
d. third parties who are reasonably foreseeable users of the work.
Jack and Kyra are partners in Law Firm, LLP, a limited liability partnership. Jack
supervises Kyra, who negligently fails to appear in court on behalf of Milo, a client.
Liability to Milo rests with
a. Jack and Kyra.
b. Jack only.
c. Kyra only.
d. neither Jack nor Kyra.
Coast-to-Coast Distribution, Inc., is a direct-mail distribution company. Like most
corporations, Coast-to-Coast’s employees include its
a. board of directors.
b. incorporators.
c. officers.
d. shareholders.
Ryan, the owner of SuperMart Stores, Inc., adheres to the “principle of rights” theory.
Under this theory, a key factor in determining whether a business decision is ethical is
how that decision affects
a. the right determination under a cost-benefit analysis.
b. the rights of others.
c. the “right” thing to do.
d. the right to make a profit.
Manuel is walking past Thomas’s house when he hears a smoke alarm going off. He
also hears a child calling for help and sees smoke coming from a window. Manuel
rushes into Thomas’s house, finds the child and brings it outside. If Thomas sues
Manuel for trespass to land, Manuel’s defense will probably be
a. assisting someone in danger.
b. consent.
c. self-defense.
d. the reasonable person defense.
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters
Grocery a minimum quantity of fresh fruits and vegetables every week for three
months.
If bad weather destroys Flora’s crops, the obligation to deliver produce to Harvesters is
most likely
a. breached.
b. discharged.
c. not affected.
d. suspended.
Persons who favor the creation of a National Biotech Agency to regulate the production
of genetically altered agricultural products should concentrate their lobbying efforts on
a. Congress.
b. federal administrative agencies that oversee agricultural products.
c. the United States Supreme Court.
d. the president of the United States.
Odell is a director of Price Rite, Inc. As a director, with respect to the corporation, Odell
is
a. a fiduciary.
b. a forum.
c. a proxy.
d. a quorum.
A contract may include a clause stating that no damages can be recovered for a certain
type of breach.
A cooperative must be incorporated.
In most contracts, promises of performance are expressly qualified.
A bankruptcy court may deny a discharge based on a debtor’s conduct.
Quorum requirements are the same in all jurisdictions.
The basis for an employee’s contribution to Social Security is the employee’s age.
Food labels are not required to provide standard nutrition facts.
A time draft is payable on sight.
Through tort law, society compensates those who suffer injuries as a result of others’
wrongful conduct.
The courts have considerably scaled back the Clean Water Act’s protection of wetlands.
A contract is valid only if both of the parties entering into it have the capacity to do so.
A written stop payment order is valid for only thirty days.
The possession of land without right is a tenancy at will.
Under the principle of comity, one nation may defer and give effect to the laws and
judicial decrees of another country.
Eppie gives a check to Fund Investments to buy 100 shares of stock in GR8 Tech
Corporation for Eppie. The price of the shares is constantly fluctuating. Fund
Investments asks Eppie to leave the amount of the check blank and allow it to fill in the
price when making the purchase. Eppie agrees. Fund Investments buys the stock when
the price is $4,000, but fills in the check for $5,000. The check is negotiated as payment
for a $5,000 debt to Hasty Accounting Services, which takes the check in good faith and
without notice of Fund Investments’ act. Hasty later learns that Fund Investments was
not authorized to fill in the check for $1,000 over the price. Is Hasty an HDC? If so, for
how much?
Only experts can submit comments on a proposed administrative rule.
Through agents, a principal can conduct multiple business operations simultaneously.
It is basic tenet of agency law that notice to the agent is notice to the principal.
An occurrence or event that makes performance temporarily impossible operates to
discharge the parties’ contractual duties.
Corporations can be perceived as owing ethical duties to groups other than their
shareholders.