Musicians & Performers Union represents the employees of Poignant Legerdemain,
Inc. During negotiations over conditions of employment, each side rejects the others
proposal without offering a counterproposal. This indicates
a. bad faith.
b. good faith.
c. each partys attempt to obtain concessions on other subjects.
d. reasonable efforts to come to an agreement.
Fact Pattern 16-B1
Bayside Construction Company enters into a contract with Clio to remodel
Deweys Home Store, using products from Eagle Building Supplies. Fresh Food
Café is next to Deweys Home Store.
Refer to Fact Pattern 16-1. Dewey is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
Rupert owes $5,000 in unpaid taxes. Using the back of an old t-shirt, he executes an
instrument for $5,000 that otherwise meets the requirements for negotiability. This
instrument is most likely
a. negotiable.
b. nonnegotiable, because an instrument must be on paper.
c. nonnegotiable, because a t-shirt is not sufficiently permanent.
d. nonnegotiable, because the government does not appreciate it.
To adjust debts and institute a repayment plan that is less expensive and less
complicated than other options, Brunch & Lunch Café, a small business, may file a
petition in bankruptcy for relief through
a. a liquidation.
b. a reorganization.
c. a repayment plan.
d. a family-farmer bankruptcy plan.
Canada and the United States are signatories of the Berne Convention. Doug, a citizen
of Canada, publishes a book first in Canada and then in the United States. Dougs
copyright must be recognized by
a. Canada only.
b. Canada and the United States only.
c. all of the signatories of the Berne Convention.
d. none of the choices.
Rex, an accountant, enters into a contract to provide services to Sofi. Rex does not
finish the work within the contracts deadline. Sofi pays a penalty for the missed
deadline and hires Trey to complete the job. Rex is most likely liable for
a. nothing.
b. Sofis penalty and the cost to hire Trey.
c. Sofis penalty only.
d. the cost to hire Trey only.
Jean sends e-mail to Irwin promising a percentage of the amount in an African bank
account for assistance in transferring the funds to a U.S. bank account. Irwin forwards
his account number, but the funds are never sent. Instead, Jean quickly withdraws the
funds in Irwins account. This is
a. online greed but not fraud.
b. an online “fool-me-once, shame on you occurrence but not fraud.
c. online gambling but not fraud.
d. online fraud.
Closed meetings of the Office of Community Planning and Development and other
federal administrative agencies are permitted when
a. the subject of the meeting concerns accusing a person of a crime.
b. open meetings would frustrate the implementation of future actions.
c. the subject of the meeting involves matters relating to future litigation or rulemaking.
d. all of the choices.
Lincoln County enacts an ordinance to limit the number of new homes that can be built
within certain acreage. Miko, a local property owner, files a suit against the county,
alleging an unconstitutional taking without compensation. The court is most likely to
rule in the countys favor if the purpose of the ordinance is to
a. further major developers interests.
b. impose preservation costs on property owners.
c. increase local tax revenue.
d. preserve local natural resources.
Bricks debt to Conry is past due. Conry brings a legal action against Brick to collect the
debt. To ensure that a judgment in Conrys favor will be collectible, Conry asks the court
to order the seizure of Bricks property. Exempt from such an order in most states is
a. all of Bricks personal property.
b. as much of Bricks personal property as Brick opts to exempt.
c. equipment that Brick uses in a business up to a specified amount.
d. none of Bricks personal property.
Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which
the court renders a verdict. The case is appealed to an appellate court.
After its review of Kelly v. Lewis, the appellate court can
a. affirm, reverse, or remand all or part of the lower courts decision.
b. only affirm or reverse all or part of the lower courts decision.
c. only remand all or part of the lower courts decision.
d. only reverse or remand all or part of the lower courts decision.
Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company.
Even-Bilt completely performs. Discount E-Sales is entitled to
a. an accord.
b. rescission.
c. novation.
d. nothing more.
Power-Plus Battery Company (PPBC) makes batteries for motor vehicles. The
Occupational Safety and Health Administration (OSHA) proposes a safety rule
governing the handling of acids in the workplace, including chemicals PPBC uses in its
operations. PPBC concludes that the rule will involve substantial compliance costs
without significantly increasing workplace safety. PPBC sends a letter to OSHA
indicating its objections to the proposed rule and enclosing research reports and other
data supporting those objections. Does OSHA have any obligation to consider these
objections? What procedures must OSHA follow when it makes new rules, such as this
one?
To drive its competitors out of a certain geographic segment of its market, Fryin
Potatoes, Inc., sets the prices of its products below cost for the buyers in that area. This
is
a. a refusal to deal.
b. business judgment.
c. predatory bidding.
d. price discrimination.
Fess, research manager for Greenergy Products, Inc., applies utilitarian ethics to
determine that an action is morally correct when it produces the greatest good for
a. Fess.
b. Greenergy.
c. the fewest people.
d. the most people.
Olaf is the creditor in a transaction with Phil. Once certain requirements are met, Olafs
rights will attach, which means that Olaf will have
a. an indivisible ownership right to Phils property.
b. an enforceable security interest in Phils property.
c. a notice affixed to Phils property.
d. the permission of a court to seize Phils property.
Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra
fraudulently misrepresents a number of material facts. Lyra tells Moe that her
commission is 6 percent, but their signed, written contract states “12 percent. The
Statute of Frauds governs
a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.
Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The
streetlight falls, smashing through the roof of a house, killing Chris. But for Barts
negligence, Chris would not have died. Regarding the death, the crash is the
a. cause in fact.
b intervening cause.
c. proximate cause.
d. superseding cause.
Fact Pattern 41-1A
Cherry Grove Apartments, Inc., merges with Dutch Elm Realty, Inc. Only Dutch Elm
remains.
Refer to Fact Pattern 41-1A. The articles of the merger agreement differ from Dutch
Elms articles of incorporation. The articles
a. are deemed amended to include the differences.
b. are replaced by the merger agreement.
c. effectively prevent the merger.
d. prevail.
Fix-It Repair Shop does not take any action to prevent sexual harassment of its
employees. Fix-It Repair may be liable for such harassment by
a. an employees previous employer.
b. a customer or a co-worker.
c. an employees spouse.
d. none of the choices.
Metal Fabrication Corporation promises to give stock options to Sigourney for
processes she has already designed for the firm. This promise is
a. enforceable because it is a new contract.
b. enforceable because it is an illusory promise.
c. enforceable because it is supported by past consideration.
d. unenforceable.
Via the Internet, Rocky sabotages the computer system of Quik Chikn Company, a food
manufacturer, with the purpose of altering the levels of ingredients of the companys
products so that consumers of the food become ill. Rocky is
a. a cyberterrorist.
b. a botnet.
c. a virus.
d. a worm.
Omega Company operates a computer chip production plant. Paula is the president of
Omega. Ron, a representative of the Occupational Safety and Health Administration,
inspects the plant and, citing a certain regulation, orders Omega to take specified steps
immediately to improve sanitation at the plant. Paula believes that Ron is either
exceeding his authority or that the regulation Ron claims to be enforcing is excessive.
Can Omega ask a court for an order to stop enforcement of the regulation? If not, what
can Omega do?
Quick Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company.
Before accepting the offer, Rapid learns that the palettes have been sold to Speedy
Trucking Corporation. Quick is
a. liable to Rapid for breach of contract.
b. liable to Speedy for breach of contract.
c. not liable, because the sale revoked the offer to Rapid.
d. not liable, if Quick offers substitute goods to Rapid.
Taylor slips and falls in Urban Mall and is injured. She files a suit against the mall for
$500,000. Under a “pure comparative negligence rule, Taylor could recover damages
a. only if both parties were equally at fault.
b. only if Taylor was less than 50 percent at fault.
c. only if Taylor was more than 51 percent at fault.
d. under any circumstances.
Phoebe sends Rosinda a cashiers check for $1,000. Rosinda deposits the check into her
account at Security Bank. The next business day, the bank confirms a $1,000 increase in
Rosindas account. She then wires Phoebe $150 for “fees. Later, the bank discovers that
the check is a fake. Most likely, the loss falls to
a. Rosinda.
b. Security Bank.
c. Rosinda and Security Bank in equal measure.
d. no one.
Grandiloquent Properties, Inc., and Investment Capital Corporation enter into a contract
for a sale of land. To be enforceable, the contract must be in writing if the land is valued
at
a. more than $500.
b. more than $5,000.
c. more than $50,000.
d. any price.
Lous Bicycle Store contracts to buy fifty bicycles from Mountain Bikes, Inc. Unless the
contract states otherwise, this is
a. a bill of lading.
b. a destination contract.
c. a shipment contract.
d. a warehouse receipt.
In a newspaper ad, Select Used Motors falsely accuses Top Value Vehicles, a
competitor, of selling stolen cars. Top Values sales decrease. Select has most likely
committed
a. defamation.
b. no tort.
c. slander of quality.
d. slander of title.
Uri borrows Veras boat to enjoy with Wendell for a weekend. Uri runs the boat aground,
damaging the hull. Liable for the cost of repairing the boat is
a. Uri and Vera equally.
b. Uri, Vera, and Webdell proportionately.
c. Uri only.
d. Vera only.
Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his
parents restaurant. The contract is
a. valid but may be disaffirmed.
b. valid but may not be disaffirmed.
c. void as a matter of law.
d. void unless it is also signed by Ed, the manager of Dine & Drink.
The Federal Aviation Administration uses notice-and-comment rulemaking. The final
rule in such a proceeding is sometimes referred to as
a. a legislative rule.
b. an interpretive rule.
c. an adjudicatory order.
d. an executive edict.
Kristen receives unsolicited merchandise in the mail. Kristen
a. may keep the merchandise without any obligation to the sender.
b. must return the merchandise within five days to avoid payment.
c. must return the merchandise within fifteen days to avoid payment.
d. must return the merchandise within thirty days to avoid payment.
Only the Federal Trade Commission can prosecute violations of all of the antitrust laws.
Under the UCC, a sales or lease contract will fail for indefiniteness if one or more terms
are left open.
Tort is a French word for “court.
Every seller is required to provide a written warranty for consumer goods sold.
National Trucking Corporation files a suit in a state court against Odells Service
Company (OSC), and wins. OSC appeals the courts decision, asserting that the
evidence presented at trial to support Nationals claim was so scanty that no reasonable
jury could have found for the plaintiff. Therefore, argues OSC, the appellate court
should reverse the trial courts decision. Is the appellate court likely to reverse the trial
courts findings with respect to the facts? If not, why not? What are an appellate courts
options after reviewing a case?
Merchants must issue a refund within a specified period of time when a consumer
cancels an order.
Any person in possession of a negotiable instrument payable to bearer is a holder.
Price discrimination occurs when a seller charges the same price to competing buyers
for identical goods or services.
An e-record is considered received under the UETA only if a person is aware of its
receipt.
A beverage company that competes with Coca-Cola Company cannot call its products
“Koke.
Unless a limited liability company indicates otherwise, the Internal Revenue Service
automatically taxes it as a partnership.
The purpose of the doctrine of election of remedies is to permit double recovery.
False imprisonment is a legal term for “privilege to detain.
A negotiable instrument can only be transferred by negotiation.
Jim wants to give Klio a diamond necklace that Jim has in his safe deposit box at First
National Bank. The bank is closed for a holiday. Jim gives Klio a key to the box and
tells her to go to the bank after the holiday and take the necklace. Klio does this. The
next day, Jim dies unexpectedly. Jims heirs want the necklace. What type of gift was
this? Can Klio keep it?