Sonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Jana
and sends $1,500 as a down payment. When Sonny sends Jana the rest of the price, she
refuses to ship the collection. Sonny should seek
a. a penalty.
b. liquidated damages.
c. restitution.
d. specific performance.
Twyla buys an HD TV from Viewpoint Electronics store, which agrees to keep the TV
for Twyla until she picks it up. Before she gets the TV, a fire destroys the store and the
set. The loss is suffered by
a. neither Twyla nor Viewpoint
b. Twyla and Viewpoint.
c. Twyla only.
d. Viewpoint only.
Megan goes to visit her friend Kathleen. While visiting, Megan downloads Kathleen’s
copy of Photoshop onto her computer’s random access memory without Kathleen’s
permission. Megan is guilty of
a. copyright infringement.
b. patent infringement.
c. cybersquatting.
d. trademark dilution.
Karen writes on a piece of paper, “I owe you $600,” signs it, and gives it to Lou. This
instrument is
a. negotiable.
b. nonnegotiable, because it does not include an express promise to pay.
c. nonnegotiable, because it does not recite any consideration.
d. nonnegotiable, because it does not state any conditions to payment.
Joy and Karl contract for the sale of Joy’s prize-winning show dog for $1,000.
Unknown to either party, the dog has died. Karl is
a. entitled to another dog of equivalent value.
b. not required to pay due to the bilateral mistake.
c. not required to pay due to the unilateral mistake.
d. required to pay because he assumed the risk the dog might die.
The U.S. corporation Burger Heaven makes a deal with an Icelandic firm that allows
the Icelandic firm to use Burger Heaven’s trade name in Iceland in return for a fee. This
is
a. a franchise.
b. piracy.
c. a joint venture.
d. direct exporting.
Erica is sixty-year-old woman with cerebral palsy. Erica is a member of
a. one protected class.
b. two protected classes.
c. three protected classes.
d. no protected classes.
Lou uses undue influence to induce Mona to sign a contract to invest her student loan
funds in National Overseas Bank. Mona may
a. avoid the contract or choose to carry it out.
b. do nothing once she has signed the contract.
c. recover from her lender for a failure to influence her “due.”
d. recover from the bank for a failure to undo Lou’s influence.
Efron transfers an instrument to First Citizens Bank. This is not a negotiation unless
a. the parties bargained over the amount paid for the instrument.
b. the transfer is an assignment.
c. the instrument is a negotiable instrument.
d. the transfer includes rights under a contract.
The standard for determining whether constructive discharge has occurred is whether or
not
a. a reasonable person in the employee’s position would feel compelled to quit.
b. the employee’s annual wage rate is fair.
c. a person of another race in the employee’s position would feel compelled to quit.
d. a person of the opposite gender in the employee’s position would feel compelled to
quit.
Vernon claims that his contract with Ulani is voidable. If their contract is avoided
a. both parties are released from it.
b. both parties must fully perform their obligations under it.
c. a wholly different contract is agreed to.
d. a wholly different contract is imposed “as if” the parties had agreed.
Hobby Farms, Inc., owns rural property that it leases to various tenants, including Ira.
Ira’s transfer of his entire interest in the leased property to Jason is
a. an assignment.
b. an eviction.
c. a tenancy at will.
d. a sublease.
Over the Internet, Red & White Contractors, Inc., arranges to lease storage space from
Blue Services Company. To complete the deal, Red & White clicks on a button that
says, in reference to certain terms, “I agree.” Most likely, the parties have
a. a binding contract that includes the terms.
b. a binding contract that does not include the terms.
c. an unenforceable contract that includes the terms.
d. an unenforceable contract that does not include the terms.
Precise Device Corporation and Quality Instruments, Inc., decide to merge. This
corporate combination does not require the approval of
a. Precise and Quality’s directors.
b. Precise and Quality’s officers and employees.
c. Precise’s shareholders.
d. Quality’s shareholders.
A common ethical dilemma faced by the management of Spencer Hydraulics
Corporation involves the effect that its decision will have on
a. one group as opposed to another.
b. the firm’s competitors.
c. the government.
d. the U.S. Chamber of Commerce.
Rural Development Corporation (RDC) and Sid enter into a contract for the
clear-cutting of RDC’s fifty-acre tract for which RDC agrees to pay Sid. Sid transfers
his duty to log the tract under the contract to Timber Logging Company. Timber is
a. a delegatee.
b. an assignee.
c. an obligee.
d. a third party beneficiary.
Colin’s home declines substantially in value. Colin gets his lender’s permission to sell
his home for less than the balance due on his mortgage loan. Colin still owes the
balance of his debt to his lender. This is
a. forbearance.
b. a short sale.
c. foreclosure.
d. deed in lieu of foreclosure.
Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a
contract. When Nina breaches the contract, Michael obtains an award of damages in an
Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and
enforces the Irish court’s decree. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Biff wrongfully takes an unopened carton from a Cold Storage Warehouse loading
dock, puts the carton in his car, and drives away. This is
a. robbery.
b. forgery.
c. larceny.
d. no crime.
Wilma, who lives in New York, enters into a contract to buy a painting from Fred, who
lives in France. The contract includes all the costs of insuring and shipping the painting
from France to New York. The agent that made the shipping estimate make a mistake
when adding up the costs and, as a result, the shipping cost listed in the contract is
$1,000 less than the shipping actually costs. A court will most likely
a. allow the parties to rescind the contract.
b. award damages to Wilma for the mistakes.
c. award damages to Fred for the mistakes.
d. enforce the contract without requiring changes.
Phillipa has a credit-card from Credible Cards, Inc. Credible Cards decides to make
changes to Phillipa’s credit-card terms. Credible Cards
a. must give Phillipa at least thirty days’ notice before changing the terms.
b. must give Phillipa at least forty-five days’ notice before changing the terms.
c. need not give Phillipa any notice before changing the terms.
d. is not allowed to change the terms.
Helen owns heavy construction equipment and the tools to service it, as well as office
furniture, including computers. Ilya owns a number of patents, trademarks that identify
the products made under those patents, and stock in the company that sells those
products. Personal property includes the items owned by
a. Helen and Ilya.
b. Helen only.
c. Ilya only.
d. neither Helen nor Ilya.
Bo and Clancy decide to do business as Marketing & Promotion Services. To be a
partnership, this association can result from an agreement that is
a. express, but not from an agreement that is implied.
b. implied, but not from an agreement that is express.
c. oral, written, or implied by conduct.
d. written, but not from an agreement that is oral or implied.
Savers Mart, Inc., distributes its merchandise to retail outlets on an interstate basis.
Under the commerce clause, Congress has the power to regulate
a. any commercial activity in the United States.
b. only activities that are in intrastate commerce.
c. only activities that are in local commerce.
d. only activities that are not in commerce.
Bruno is a businessperson with investments in legal and illegal operations. Bruno may
be subject to penalties under RICO
a. for making an unprofitable, but legal, investment.
b. for the commission of any business fraud.
c. only in a case involving a “racket.”
d. only in a case involving organized crime.
Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. The spikes
come out of the shoes when Sigrud is on the side of a mountain, causing her to be
injured in a fall. Rockridge breached
a. an express warranty.
b. an implied warranty of fitness for a particular purpose.
c. an implied warranty of merchantability.
d. a warranty of title.
On behalf of Premier Shipbuilding Corporation (PSC), Rita orders 1,000 cases of
1/4-inch nuts from Steel Parts Company’s 10,000-case lot. Steel Parts separates 1,000
cases from the lot. Title and risk of loss
a. remain with Steel Parts until PSC acknowledges tender of delivery.
b. remain with Steel Parts until PSC accepts 1,000 cases.
c. shift to PSC after it accepts the nuts and inspects them for defects.
d. shift to PSC when Steel Parts separates the cases.
Joey reproduces Mina’s copyrighted work 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 freely 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.
Myra owns a house, which she advertises for sale for $200,000. On May 1, Nicole
offers Myra $180,000 for the house. On May 5, Myra delivers to Nicole a form that
includes additional terms but does not state a price. At 9 a.m. on May 6, Nicole signs
the form and gives it to Odell, her administrative assistant, with instructions to mail it.
At 10 a.m., Myra calls to tell Nicole that the deal is off. The next day, Odell mails the
signed form to Myra. When Myra refuses to sell the house, Nicole files a suit against
her, alleging breach of contract. Myra claims that there was no contract. What are
arguments supporting each party’s position? What is the court likely to rule? Explain.
Bailey, the president of Carmichael Commodities Company, claims that certain actions
by the federal government and by the state of Delaware infringe on rights guaranteed by
the Bill of Rights. All of these rights limit
a. neither Delaware nor the federal government.
b. the federal government only.
c. Delaware and the federal government.
d. Delaware only.
Mary works in the public relations department of New Trends Sales Company. Her job
includes portraying New Trends’s activities in their best light. In this context, ethics
consist of
a. a different set of principles from those that apply to other activities.
b. the same moral principles that apply to non-business activities.
c. those principles that produce the most favorable financial outcome.
d. whatever saves New Trends’s “face.”
Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren’s
specifications. The car earns several awards at regional vehicle customizing
competition shows. The result of Mike’s efforts is
a. accession.
b. acquisition.
c. conversion.
d. resolution.
Quality Sales Corporation enters into contracts over the Internet. Quality can protect
itself against disputes involving these contracts by making important terms
a. conspicuous.
b. difficult to notice.
c. impossible to find.
d. standardized.
To challenge a ruling in a bankruptcy proceeding, a party must appeal to a federal
district court.
A person who holds the entire bundle of rights in property is the owner in fee simple.
At common law, if a contract is unilateral, an offeror must be notified of the offeree’s
performance.
If a director fails to use a reasonable amount of supervision over corporate officers and
employees, then the director can be held liable for negligence.
An independent contractor is an employee.
Usually a landlord must comply with state statutes that delineate specific standards for
the maintenance of buildings.
Confusion of fungible goods results in the owners’ loss of their rights in the property.
A landlord must give a tenant notice of the termination of a lease even if the lease states
the time the lease will end.
The members of a limited liability company are fully liable for its obligations.
Under the UETA, an e-signature of a notary public is NOT sufficient to notarize a
document.
Borealis Power Company is subject to mandatory workers’ compensation laws in the
states in which it does business. Chad and Dex work for Borealis as part of a crew that
travels to remote locations to repair downed power lines and other damaged equipment.
At a distant site, Chad is injured in an accident that is entirely Dex’s fault. Chad files a
claim for workers’ compensation. Should the claim be granted? What would be
Borealis’s best defense against it?
Instruments that say nothing about when payment is due are payable on demand.
A limited liability company can have only a limited number of shareholder-members.
A check is a draft drawn by a drawer ordering the drawee bank or financial institution
to pay a certain amount of money to the holder on demand.
A constructive trust is “constructed” by a property owner to fulfill certain unique
functions outside the usual bounds of a trust.
A reference in a will to a written memorandum that is not in the will renders the will
invalid.
The state and federal governments provide for the registration of trademarks.
The word “Mom” can qualify as a signature on a will.
Joint ownership of property in and of itself does NOT create a partnership.