Mango Corporation believes that Melon Corporation engages in anticompetitive
behavior in an attempt to drive Mango and its other competitors out of the market.
Antitrust laws can be enforced against Melon by
a. Mango and its competitors only.
b. Mango, its competitors, and the Federal Trade Commission only.
c. Mango, its competitors, the Federal Trade Commission, and the U.S. Department of
Justice.
d. the Federal Trade Commission and U.S. Department of Justice only.
Big Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Big Eggs
cannot reasonably ask Omelet Express to pick up the eggs at
a. 1:00 p.m.
b. 2:00 p.m.
c. 3:00 p.m.
d. 4:30 a.m.
Hollister and Gladys do business as partners in Frothy Confections. For federal income
tax purposes, Frothy Confections would be treated as
a. a pass-through entity.
b. a natural person.
c. a tax-paying entity.
d. a partnership by estoppel.
Rocco gives Sequoia a smartphone as a gift. Sequoia develops a new game app for the
phone. She obtains intellectual property protection, and forms Titan Games, LLC, to
make and market the game. Sequoia’s acquisition of the game is by
a. gift.
b. accession.
c. confusion.
d. production.
Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to
the Equal Credit Opportunity Act, which prohibits credit discrimination based on
a. intelligence.
b. education.
c. income.
d. race.
Kelsey obtains a business liability insurance policy from Loyal Insurance Company for
Kelsey’s Framing & Art Supplies store. When an event occurs that gives rise to a claim,
Loyal has a duty to
a. investigate to determine the facts.
b. file a suit against Kelsey so that a court can settle the claim.
c. find a third party on whom to impose liability.
d. refund any unearned amount of the premium.
Mary enters a gas station and points a gun at the clerk. She then forces the clerk to open
the cash register and give her all the money. Mary can be charged with
a. robbery.
b. forgery.
c. larceny.
d. embezzlement.
The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice
Cream Co. v. Refrigerated Transport, Inc. is heard in an appellate court. The difference
between a trial and an appellate court is whether
a. the proceedings focus on the presentation of evidence and the examination of
witnesses.
b. the court is appealing.
c. the parties question how the law applies to their dispute.
d. the subject matter of the case involves complex facts.
Wytex, Inc., a U.S. firm, and Findora Commercial, a Nigerian firm, are parties to a
contract that specifies that the official language of the contract is English. This is
a. a choice-of-forum clause.
b. a choice-of-language clause.
c. a choice-of-law clause.
d. an arbitration clause.
Ruby Red Corporation is incorporated in South Carolina. In that state, Ruby Red is
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a non-entity.
Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion
detectors. When Nadine does not deliver within a reasonable time after the agreed
delivery date, Mitch files a suit for breach. Nadine asserts the doctrine of commercial
impracticability. This doctrine extends only to problems that are
a. foreseen.
b. preventable.
c. unforeseen.
d. ordinarily assumed by a seller or lessor.
At age seventeen, Daryl enters into a contract to buy a dozen movies from eHD TV
Stream, Inc., an online video service. Soon after reaching the age of majority, Daryl
attempts to disaffirm the contract. eHD files a suit against him. The court will most
likely consider the contract ratified if it is
a. executed.
b. exculpatory.
c. express or implied.
d. emancipated.
Ben, who runs a livestock breeding business, owes the Circle C Ranch $40,000. Ben
agrees to pay the Circle C a percentage of his profits each month until the debt is paid.
Because of this agreement, the Circle C is Ben’s
a. partner.
b. creditor.
c. agent.
d. joint venturer.
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.
Iggy hires Joy to act as his agent to purchase Kup-a-Koffee Company. Iggy tells Joy to
reveal only that she is buying the firm on behalf of a third party, without telling
Kup-a-Koffee’s seller who that third party is. Iggy is
a. a disclosed principal.
b. an implied principal.
c. an undisclosed principal.
d. a partially disclosed principal.
Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable,
Ludwig must know
a. Milo.
b. Nadine.
c. that the marimba is stolen and Ludwig must intend to keep it.
d. what a marimba is.
Sid rents an apartment from Town Properties, Inc. The lease, which ends on May 31,
does not include an option for renewal, and Sid and Town do not discuss whether Sid
can stay on at the end of the term. On June 1, Sid has
a. an implied option to renew the term.
b. a right to remain contingent on notice from Town.
c. a right to remain subject to notice to Town.
d. no right to remain.
Jeff’s grandmother is the payee of a promissory note for $7,500. Jeff’s grandmother
gives Jeff the note for his sixteenth birthday. Jeff is
a. an HDC.
b. not an HDC, because he received the note as a gift.
c. not an HDC, because he is a minor.
d. not an HDC, because the note was for less than $10,000.
Jo files a suit against Lara in a Missouri state court. Lara’s only connection to Missouri
is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the
issue is whether Lara, through her ad, has
a. a commercial cyber presence in Missouri.
b. conducted substantial business with Missouri residents.
c. general maximum contact with Missouri.
d. solicited virtual business in Missouri.
Roald writes a check for $700 to Savannah. Savannah indorses the check in blank and
transfers it to Twitchell, who alters the check to read $7,000 and presents it to Union
Bank, the drawee, for payment. The bank cashes it. Roald discovers the alteration and
files a suit against the bank. Roald can recover
a. $7,000.
b. $6,300.
c. $700.
d. 0.
Gayla asks Jessie to contract with Jessie’s high school classmates to babysit for Gayla’s
new baby. Jessie orally agrees to do so. This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
Elinor performs ten hours of house cleaning for Zack in exchange for a promissory note
for $400. At the time that Elinor accepts the note, she is aware that bankruptcy
proceedings are being filed against Zack. Elinor
a. can obtain HDC status.
b. cannot obtain HDC status, because she knows that there are bankruptcy proceedings
against Zack.
c. cannot obtain HDC status, because she did not fulfill the value requirement.
d. cannot obtain HDC status, because she did not fulfill the good faith requirement.
Eli, a minor, buys an automobile insurance policy from Faithful Insurance Company
and pays a $1,000 premium. If Eli can disaffirm the contract, he can most likely recover
a. $500.
b. $1,000.
c. $1,500.
d. nothing.
Bodie’s application to City Bank for a credit card is denied. Bodie can obtain
information on her credit history in a credit agency’s files under
a. no federal law.
b. the Equal Credit Opportunity Act.
c. the Fair Credit Reporting Act.
d. the Fair Debt Collection Practices Act.
Flo-Thru Corporation is poised to issue securities that, under the Securities Act of 1933,
are “exempt.” This means that the securities can be sold
a. on the basis of a material omission or misrepresentation.
b. on the basis of nonpublic information.
c. within any six-month period by certain insiders.
d. without being registered.
Brandy forges Caleb’s signature on a check “payable to the order of Brandy” drawn on
Caleb’s account in Downtown Bank. Caleb’s forged signature is
a. effective if an innocent third party accepts the check.
b. effective to the degree that it matches Caleb’s genuine signature.
c. effective to the extent that Downtown Bank debits Caleb’s account.
d. not effective.
Consumer Mortgage Loans provides Demi with a mortgage to buy a home. Under the
terms, Demi can choose to pay only the interest portion of the monthly payments and
forgo paying of the principal for five years. This is
a. a fixed-rate mortgage.
b. an adjustable-rate mortgage.
c. an interest-only mortgage.
d. a violation of the law.
Clara is a salesperson in The Corner Store. When Carla makes a sale to Jenny, the sale
is
a. binding on The Corner Store.
b. binding on Carla.
c. binding on The Corner Store only if the owner of The Corner Store is present when
the sale is made.
d. not binding on anyone.
In Lewis v. Motor City Cars & Trucks, a state supreme court held that a minor could
cancel a contract for the sale of a car. A lower court in the same state may depart from
this precedent if the court decides that the precedent
a. is incorrect or inapplicable.
b. is not in line with the judge’s personal values.
c. would lead to unintended consequences.
d. would not bring about the result the judge prefers.
Jonathon promises to pay child support and alimony to his ex-wife every month after
their divorce. Jonathon has
a. only a moral obligation to do keep his promise.
b. only a legal obligation to keep his promise.
c. both a legal and a moral obligation to keep his promise.
d. no obligation to keep his promise.
Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and
onto Bella’s land. Doyle commits trespass if he
a. does not have Bella’s permission to drive on the property.
b. drives onto the property for recreational purposes.
c. harms the property in a material way.
d. harms the property in any way.
U.S. Cars, a U.S. firm, owns property in Argentina. The government of Argentina seizes
the property. U.S. Cars claims that this is confiscation. The government of Argentina
claims that it is expropriation. The burden of proof lies with
a. the U.S. government.
b. the government of Argentina.
c. U.S. Cars.
d. the U.S. Supreme Court.
App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive
officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max
and ten other student interns. With respect to the contract, Max is
a. an intended beneficiary.
b. an incidental beneficiary.
c. a delegatee.
d. an assignee.
Friendly Credit Corporation (FCC) believes that Gary may dispose of the assets that
FCC expects to receive as payment for Gary’s debt before FCC can obtain a judgment.
FCC may ask a court to issue a writ of
a. attachment.
b. contribution.
c. execution.
d. redemption.
If a lender fails to provide certain material disclosures, a borrower has up to seven years
to rescind the mortgage.
An item can not be a fixture if it is physically attached to the land.
Restricting the bonuses that are paid to executives is unethical.
A discharge will be denied to a debtor who received a discharge within eight years of
filing the current petition.
Charging different prices to different buyers for identical goods is price discrimination.
Some states impose a duty on a minor who disaffirms a contract to restore the adult
party to the position he or she held before the contract was made.
The filing of a petition for bankruptcy will automatically stay most legal actions against
the debtor.
Under the doctrine of comparative negligence, only the plaintiff’s negligence is taken
into consideration.
Ordinarily, “ignorance of the law” is a valid defense to criminal liability.
Foreign firms cannot obtain U.S. patent protection on items that they sell in the United
States.
A check can be retained at its place of deposit and only its image can be presented for
payment under an electronic presentment agreement.
A quasi contract is not enforceable by a court.
State employers are not immune from private suits brought by employees under the Age
Discrimination in Employment Act of 1967.
A principal is not liable on any contract made by the agent acting outside the scope of
his or her authority.
A court’s review of an arbitrator’s award may be restricted.
If goods identified to a contract are destroyed through no fault of either party, both
parties are excused from performance.
Someone suffering from a mental illness may be incapable of the state of mind to
commit a crime.
An assumption of risk defense does not require that a risk be voluntarily assumed.
A principal has the right to control an agent’s conduct in matters entrusted to the agent.