United Industrial Corporation gives preferential treatment in hiring and promotion to
the members of all protected classes. This treatment results in discrimination against
members of the majority. This is
a. a bona fide occupational practice.
b. a business necessity.
c. constructive discharge.
d. reverse discrimination.
Glenn and Haji sign a written contract. Glenn claims that the parties later orally agreed
to modify it. Any oral modification is likely not enforceable if it falls under
a. the doctrine of promissory estoppel.
b. the “main purpose exception.
c. the “partial performance exception.
d. the Statute of Frauds.
Grover is an executive accountant with the firm of Hall & Associates, which obtains
insurance from Interstate Insurance, Inc, on Grovers life. Grover dies. The proceeds of
the policy belong to
a. Grovers heirs.
b. Hall & Associates.
c. Interstate Insurance.
d. the state.
Fact Pattern 14-B2
Nano Corporation offers to sell a robotic device to Motor Assembly, Inc., but
mistakenly transposes some of the digits in the price so that $15,400 appears in the offer
as $14,500. Motor accepts the written offer.
Motors best argument in favor of enforcement of the contract is that
a. a bilateral mistake does not afford relief from a contract.
b. a mistake of value does not afford relief from a contract.
c. a unilateral mistake does not afford relief from a contract.
d. the price was below the prices of comparable devices.
On May 1, Craig retains Dora to act as his authorized agent. On June 1, Craig dies. On
June 2, before Dora knows of Craigs death, she enters into a contract on Craigs behalf.
The contract is
a. binding on Craigs estate.
b. binding on Dora.
c. void.
d. voidable.
Celia, an employee of Delite Dairy Company, forges the signature of Elin, Delites
president, on a Delite check and cashes it at First Federal Bank. Elin would ratify Celias
actions by
a. asking First Federal to prosecute Celia for forgery.
b. discharging Celia from Delite s employment.
c. entering into a repayment agreement with Celia.
d. filing criminal charges against Celia herself.
In Market Companys suit against National Credit Corporation, Market wants to
introduce evidence that it claims is relevant. Relevant evidence is evidence that
a. establishes the degree of probability of a fact or action.
b. tends to disprove a fact in question.
c. tends to prove a fact in question.
d. all of the choices.
Ollie files a petition in bankruptcy. At the moment of filing
a. an automatic stay goes into effect.
b. Ollies debts are discharged.
c. Ollies petition is dismissed.
d. Ollies property is distributed to Ollies creditors.
Downwind Land Corporation and Leeward Investments Company transfer their
property to Financial Managers, Inc., which manages the property and distributes the
profits to Downwind and Leeward. This form of a business organization is
a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.
On behalf of Equity Capital, Inc., Flip signs an instrument promising to pay $5,000 in
gold to Growth Investments, Inc., on May 15. This instrument is
a. negotiable.
b. nonnegotiable, because gold is not a medium of exchange authorized or adopted by a
government as currency.
c. nonnegotiable, because it does not recite any consideration.
d. nonnegotiable, because it is for an amount of $500 or more.
Open Road Showroom sells new and used motorcycles. Some of the motorcycles are
held on consignment, including six consigned by Pedro Cycles, Inc. Like most
consignments, Open Roads deal with Pedro Cycles is
a. a bailment.
b. a sale.
c. a delivery ex-ship.
d. a lease.
Quinn promises to sell his recreational vehicle (RV) to Sid, who builds a structure
behind his house in which to keep it. Quinns later attempt to renege on the promise is
a. effective if Quinn did not ask Sid to build anything.
b. effective if Quinn wants to sell the RV to someone else.
c. not effective if Sid cannot obtain a similar RV for a similar price.
d. not effective if Sid detrimentally relied on Quinns promise.
Safron threatens physical harm”you dont want anything to happen to you or your
familyto force Tivoli to sell his business, Umbrellas Unlimited, Inc., to Safron for a
below-market price. This is
a. a mistake of value.
b. duress.
c. fraud.
d. undue influence.
Fact Pattern 15-A1
Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a
contract. Macro then faxes NFC a memo on Macros letterhead that summarizes the
items on which they agreed, including a two-year term. Macro begins to perform, but
NFC refuses to pay. Macro files a suit to collect. NFC claims that there is no contract.
Between Macro and NFC, there is
a. an oral contract only.
b. a pre-contract only.
c. a written contract.
d. no contract.
Grady enters into a contract to buy 440 acres from Hollis to expand Gradys ranch.
Hollis breaches the contract. Gradys normal remedy is
a. damages.
b. reformation.
c. rescission.
d. specific performance.
Ethan is seventeen years old. Under the Fair Labor Standards Act, Ethan cannot work
a. during school hours.
b. in a hazardous job.
c. more than eighteen hours per week.
d. without a special permit.
A petition for a discharge in bankruptcy in a liquidation proceeding may be filed by
a. Eminent Employees Credit Union, a corporation.
b. Federal Savings & Loan Association, a corporation.
c. Goodhands Insurance Company, a corporation.
d. Henry, an independent financial adviser.
Summer Breeze, Inc., contracts for the sale of fifty ceiling fans to Island Décor store.
Tyrone buys one of fans from the store. The applicable statute of limitations prescribes
a period of four years. To bring a product liability claim against Summer Breeze,
Tyrone must file a suit within four years of
a. Tyrones discovery of an injury.
b. the date of the fans sale to Island Décor.
c. the year of the fans manufacture.
d. the date of the fans sale to Tyrone.
Eve tells Finlay that she will pay him $50 if he unloads her truck. Finlays acceptance is
complete
a. as soon as Finlay says he will unload the truck.
b. once Finlay starts to unload the truck.
c. only after Finlay unloads the truck.
d. when Finlay hears Eves offer.
Rhett works at Scarletts Sandwich Café. After work, in the parking lot, Rhett finds a
diamond ring lost by Thalia. Title to the ring is possessed by
a. Rhett.
b. Scarletts.
c. Thalia.
d. the state.
Coopers Brakes, Inc., enters into a contract with Byrons Service to fix Coopers
hydraulic equipment. Byron delays the repair for five days, aware that Cooper loses a
certain percentage of profit each day. An award to Cooper of consequential damages
would
a. establish, as a matter of principle, that Byron acted wrongfully.
b. provide Cooper with funds for a foreseeable loss beyond the contract.
c. provide Cooper with funds for its loss of the bargain.
d. punish Byron and set an example to deter others from similar acts.
A contract for a sale of land from Evergreen Properties, Inc., to Longlife Investment
Corporation contains an erroneous legal description. The most appropriate remedy for
these parties is
a. quasi-contractual recovery.
b. reformation.
c. rescission.
d. specific performance.
Titan Business Corporation can be compelled to dissolve by
a. its creditors only.
b. itself, through its shareholders and directors, only.
c. itself, through its shareholders and directors, or the state.
d. the state only.
Amos plays BeginAgin, a virtual world in which BeginAgin dollars are traded for real
dollars at a ratio of 200 to To play the game, Amos had to agree that BeginAgin has the
right to erase all of Amoss virtual property on his death. Later, Amos dies. BeginAgin
now
a. has the right to erase all of Amoss virtual property.
b. must pass Amoss virtual property to his heirs.
c. should give Amoss virtual property to a new account holder.
d. owns Amoss virtual property.
Elementals, Inc., makes computer chips identical to Flik Quik Corporations patented
chip, except for slight differences in the “look, without Fliks permission. This is most
likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
Lewis is a state court judge. Like other judges, Lewis often refers to secondary sources
of law for guidance. These sources include
a. official comments to statute.
b. other states statutes.
c. state constitutions.
d. the U.S. Constitution.
Sustainabilityeconomic development that meets the needs of the present without
compromising the ability of future generations to meet their needsis directly addressed
by
a. no U.S. statute or other nations law.
b. U.S. federal environmental laws.
c. other nations laws but no U.S. statute.
d. international law only.
Mountain View Corporation is a noninvestment company that wants to issue stock of $3
million in a twelve-month period. Mountain View, with less than $20 million in annual
sales, qualifies as a small business issuer. Before Mountain View sells the stock, it must
provide investors with
a. an offering circular.
b. a notice of the issue.
c. a red herring prospectus.
d. a tombstone ad.
Lana hires Mike, an architect, to design a warehouse. Lana is dissatisfied with the look
of the new building and sues Mike, alleging negligence. Mike can successfully defend
against the suit by proving that
a. he is not familiar with every principle of art.
b. his design is as attractive as an ordinary persons.
c. Lana could not have designed a more attractive building.
d. Lana was not injured in any way.
Vera gives Willy a $459 check as payment for a debt. Willy crudely raises the amount
of the check to $5,000 and transfers it to Xtreem Sportz store for a new bike. Xtreem
deposits the check in its Yankee Bank account. Vera is liable for the payment of $5,000
to
a. no one.
b. Willy, Xtreem Sportz, and Yankee Bank.
c. Willy only.
d. Xtreem Sportz and Yankee Bank only.
Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease
for an apartment for $1,000 monthly rent to start at the beginning of the next month.
The Statute of Frauds covers
a. the apartment lease, and the textbook and car purchases.
b. the apartment lease and the car purchase only.
c. the apartment lease only.
d. the textbook and car purchases only.
Listen Up! Corporation books and promotes concerts and other entertainment events,
for which Listen Up! also sells tickets. In weighing a challenge to Listen Up!s
“monopolistic ticket prices, a court looks at the relevant geographic market. This
encompasses
a. only areas in which Listen Up! does not have monopoly power.
b. only areas in which Listen Up! has monopoly power.
c. the area in which Listen Up! and its competitors sell the tickets.
d. the entire United States in all cases.
Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink
under the name “CoCoCafe. Darkroast Java, Inc., later markets a similar tasting drink
under the name “KoKoKafe. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
Few nations have restrictions on imports.
If a contract requires performance to the personal satisfaction of a party, the party to be
satisfied must act honestly and in good faith.
Under the commerce clause, a state may impose a higher tax on out-of-state products
shipped to in-state locations.
A person who receives an instrument as a gift normally becomes an ordinary holder.
If the debtor offers to pay the debt owed to a creditor but the creditor refuses the tender,
the surety remains obligated on the debt.
A director does not need to disclose any conflict of interest before voting on a proposed
transaction.
Like the UCC, the United Nations Convention on Contracts for the International Sale of
Goods (CISG) applies to consumer sales.
A generic term is not protected under trademark law unless it acquires a secondary
meaning.
A contract for a sale of land cannot be enforced unless it is in writing even if the
contract has been partially performed.
Disparate-treatment discrimination occurs when an employer intentionally discrim-
inates against an employee who is a member of a protected class.
Hackers sometimes rent their “crimeware as a service.
All parties to a negotiable instrument will be discharged when the party primarily liable
on it pays to a holder the full amount due.
A corporation is liable for the torts committed by its officers within the course and
scope of their employment.
States have the primary responsibility for enforcing the permit system for point-source
water pollution control.
A foreign citizen can bring a civil suit in a U.S. court for a violation of a treaty of the
United States.
When an agency relationship is terminated, the principal has a duty to personally notify
third parties who knew of its existence.
A person can insure anything in which he or she has an insurable interest.