Riley invents a new deep-sea fishing net, which he names “SeaMaster.” He also writes
the operating manual to be included with each net. Riley could obtain copyright
protection for
a. the net.
b. the “newness” of the net.
c. the name.
d. the operating manual.
The employee union at Top Tech Toys decides to go on strike. Their strike will be legal
if
a. the strikers form a picket line.
b. the strikers form a massed barrier and deny management and nonunion workers
access to Top Tech Toys’ plant.
c. the strikers stay in Top Tech Toys’ plant without working.
d. the strikers violently attack management.
Leatherbound Stores, Inc., rejects a shipment of goods that does not conform to its
contract with Cowhide Corporation, but is unable to obtain instructions from the seller.
Leatherbound may
a. resell or return the goods only.
b. resell or store the goods only.
c. return or store the goods only.
d. resell, return, or store the goods.
Martha buys a candy bar for $5 and signs a contract for delivery of fresh flowers to her
mother’s nursing home every week for the rest of her mother’s life. She then enters into
a contract to assume George’s debt to FastCars Dealership. Martha receives no personal
benefit from assuming George’s debt. The Statute of Frauds covers
a. the candy bar purchase only.
b. the candy bar purchase and the contract for the flower delivery only.
c. the contract to assume George’s debt only.
d. the contract to assume George’s debt and the contract for the flower delivery only.
Denise, Ervin, and Flem occupy the positions of directors on the board of Gallery
Corporation. As directors, they may NOT
a. authorize major corporate policy decisions.
b. decide to issue stock and bonds, and declare dividends.
c. select and remove corporate officers.
d. subordinate the corporation’s welfare to their personal interests.
Elsa, the owner of Fertile Farm, sells Gina a right to park her RV on Fertile land
overnight. Gina’s right is
a. a fee simple absolute.
b. a license.
c. an easement.
d. a profit.
Mall Stores Corporation owns 95 percent of the shares of Niche Retail Corporation.
Mall Stores combines with Niche Retail, but only Mall Stores continues to exist. This
transaction was
a. a consolidation.
b. a tender offer.
c. a short-form merger.
d. a termination.
A federal judge retires. The vacant position will be filled by a judge
a. appointed by the United States Supreme Court.
b. elected by voters.
c. appointed by the President.
d. appointed by Congress.
Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are
distributed to authorized dealers, including Macho Motors, Inc. Macho operates
dealerships in several locations. Lightning imposes restrictions on Macho to limit the
areas in which they sell the bikes and insulate other dealers from direct competition.
This is
a. a territorial restriction.
b. a resale price maintenance agreement.
c. a refusal to deal.
d. a price-fixing agreement.
Wild Things, Inc. (WTI), in its ads, makes claims about its products that are obvious
exaggerations and claims that are false but appear to be true. WTI may be subject to
sanctions for
a. neither the false claims nor the obvious exaggerations.
b. only the false claims.
c. only the obvious exaggerations.
d. the false claims and the obvious exaggerations.
Martha owns a fifty-acre farm. Martha’s will states, “I leave five acres to John and five
acres to William.” This is
a. a general legacy.
b. a specific legacy.
c. a general devise.
d. a specific devise.
KupaJava hires Lola to manage one of KupaJava’s seven drive-through coffee stands.
KupaJava agrees to pay Lola a salary, plus commission. KupaJava stipulates the
standards that should be observed, the goals that should be attained, and the methods
that should be used. Lola is most likely KupaJava’s
a. employee.
b. independent contractor.
c. principal.
d. power of attorney.
Kristal is a member of Laboratory CSI Services, LLC, a limited liability company.
Kristal can participate in the firm’s management
a. only to the extent that she assumes liability for the firm’s debts.
b. only to the extent of her investment in the firm.
c. to any extent.
d. to no extent.
Jane is Karin’s agent. As Karin’s agent, Jane signs a check to Happy Home Repairs, Inc.
With regard to the check
a. Jane has primary liability.
b. Jane and Karin have primary liability.
c. Karin has primary liability.
d. neither Jane nor Karin has primary liability.
Which of the following organizations would be a source of administrative law?
a. The Georgia state legislature, a government assembly that enacts statues.
b. The Federal Trade Commission (FTC), a government agency that issues rules, orders,
and decisions.
c. The Jackson County Board, a local governing body that enacts ordinances.
d. The Peach City Council, a local governing body that enacts ordinances.
Samson is a government employee. Samson is limited in drug testing by the
a. First Amendment.
b. Second Amendment.
c. Fourth Amendment.
d. Eighth Amendment.
In good faith and for value, Carol receives from Dick a negotiable bearer instrument.
Carol does not know that Dick stole the instrument. Carol is
a. an HDC, because the good faith requirement applies only to the holder, not the
transferor.
b. not an HDC, because the instrument is a bearer instrument.
c. not an HDC, because Dick did not acquire the instrument for value.
d. not an HDC, because Dick did not acquire the instrument in good faith.
Kennedy Capital Corporation provides other firms with funds to expand operations. If
Kennedy strictly complies with existing laws, the firm will
a. fulfill all business ethics obligations.
b. fulfill no business ethics obligations.
c. fulfill some business ethics obligations.
d. not need to fulfill any business ethics obligations.
Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week.
When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays
$450 per week for a year. Ilsa is entitled to recover
a. the amount of the wages that Handy promised only.
b. the difference between the wages at the two jobs only.
c. the difference between the wages at the two jobs plus $100.
d. $100 only.
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.
The best definition of a remedy is
a. a relief given to innocent parties to enforce a right or to prevent or compensate for a
wrong.
b. medication paid for by the government.
c. a right guaranteed by the Bill of Rights.
d. a situation or state of facts that gives a person a right to initiate a judicial proceeding.
Ted and Svetlana orally agree to several different oral contracts. The Statute of Frauds
will bar enforcement of an oral contract for
a. a deal that will be performed within a year.
b. a primary obligation.
c. a sale of goods for $100.
d. a sale of land.
Sweet Selections is a general partnership that sells candy, cards and flowers. Sweet
Selections has ten partners. Jill and Amy each have a 25 percent interest in the
partnership. All the other members have a 10 percent interest. To pass a management
decision
a. a majority of the partners must agree to the decision.
b. both Jill and Amy must agree to the decision.
c. Jill or Amy must agree to the decision.
d. 30 percent of the partners must agree to the decision.
Megan is in charge of the ethics of Ethical Eggs, Inc., an organic egg raising company.
In addition to an ethical code of conduct, Megan is most likely NOT in charge of
a. an ethics committee.
b. ethical training programs.
c. internal ethical audits.
d. ethical reviews of employees’ family members.
Silas sells his farm to Kathy. The title is transferred by deed. Kathy is the
a. grantee.
b. grantor.
c. recipient .
d. deedee.
Gloria, the owner of a manufacturing company with declining sales, pays Sandra
$10,000 in exchange for her written agreement to murder the president of a competitive
company with increasing sales. Sandra keeps the money without doing anything more.
Gloria will be able to recover the $10,000
a. under no circumstances.
b. if Sandra never intended to carry out the crime.
c. if Gloria fully complied with the terms of the agreement.
d. if Gloria’s sales continue to decline.
Elin decides to try to sell her collection of celebrity memorabilia in an auction “with
reserve.” If Elin changes her mind, she can withdraw her collection
a. only before the auctioneer announces that the items are sold.
b. only before the auctioneer delivers the items to the buyers.
c. under no circumstances.
d. within thirty days after the auction.
Pete, an accountant, convinces his client Kasey to invest her savings in a nonexistent
social-networking Web site. When Kasey learns the truth, she can
a. impose her own scam on Pete without liability.
b. induce Pete to give her his other clients’ funds without recourse.
c. rescind the contract to invest in the Web site.
d. sabotage Pete’s career in any way possible.
Katie and Linda enter into a contract for Katie to buy Linda’s house in which there are
several terms that are subject to more than one reasonable interpretation. If Katie and
Linda attach materially different meanings to a term
a. only Katie will be able to void the contract.
b. only Linda will be able to void the contract.
c. neither Katie nor Linda will be able to void the contract.
d. either Katie or Linda will be able to void the contract.
Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid
Corporation’s design without Hybrid’s permission. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. a theft of trade secrets.
Wilson owes Shelby $5,000 for repairs on Wilson’s Bobcat Skidsteer. Wilson has
financial troubles and he and Shelby sign an accord, in which Wilson promises to pay
$4,000 and give Shelby his mountain bike within thirty days instead of the $5,000.
Wilson’s delivery of the bike and $4,000 to Shelby is
a. an accord.
b. satisfaction.
c. substantial performance.
d. novation.
The UCC requires that the mirror image rule be followed for all acceptances.
In a close corporation, all shares must be equally distributed among members.
One goal of bankruptcy law is to protect a debtor.
A guarantor is secondarily liable on an obligation.
Selecting the state in which to incorporate is an important step in the incorporation
procedure.
Under the Constitution, the judicial branch interprets the laws.
The contract term “free on board” indicates that the selling price of goods includes
transportation costs to the specific F.O.B. place named in the contract.
Restitution involves one party’s recapture of a benefit through which another party has
been unjustly enriched.
If a contract does not require that performance be rendered directly to a third party, the
third party is an incidental beneficiary.
An employer may NOT hire an illegal immigrant under any circumstances.
An expression of opinion is an effective offer as long as it is not made in jest.
Under the mailbox rule, no acceptance is valid until it is received.
Shareholders do not need to approve fundamental changes affecting the corporation
before the changes can be effected.
A corporate name must include the word Corporation, Incorporated, Company, or
Limited.
Major credit reporting agencies must provide consumers with free copies of their credit
reports every twelve months.
Directors can use corporate funds and confidential information for personal advantage
as long as they disclose that they are doing so.
A good business reason for a practice that has a discriminatory effect may permit an
employer to avoid liability for discrimination.
A Chapter 13 plan can be initiated only by the filing of a voluntary petition.