Marvin is an employee of Wild Thing Farms. Marvin finds out that the head of Wild
Thing Farms is illegally importing endangered animals to sell as pets. If Marvin reports
his employer’s illegal activities he will probably be protected fro retaliatory discharge
by
a. unemployment statutes.
b. worker compensation statutes.
c. whistleblower statutes.
d. no statutes.
Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of
carpeting. Under a shipment contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before shipping them.
d. place the goods into the hands of a carrier.
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.
Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline
to withstand specific conditions. If QuikBilt fails to meet this standard, which is
construed as a breach of contract and a breach of a duty of care, Pure might be awarded
punitive damages to
a. establish, as a matter of principle, that QuikBilt acted wrongfully.
b. provide Pure with funds for a foreseeable loss beyond the contract.
c. provide Pure with funds for its loss of the bargain.
d. punish QuikBilt and deter others from similar acts.
HVAC Parts Company charges different buyers different prices for identical goods.
HVAC’s prices are subject to evaluation under
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no antitrust law.
Realty Credit Company and Second Mortgage Corporation plan to consolidate. Most
likely, the articles of consolidation will be filed with
a. the county recording office.
b. the Securities and Exchange Commission.
c. the state’s secretary of state.
d. the U.S. Department of Justice.
Rick and Sandy are limited partners in Total Profit Enterprises, a limited partnership. To
avoid personal liability for partnership obligations, they must not
a. acquire an interest in the firm.
b. contribute property to the firm.
c. engage in activities independent of the firm’s business.
d. participate in the firm’s management.
Network Industries, Inc., wants to monitor its employee’ electronic communications. To
avoid liability under laws related to employee monitoring, Network should announce
the monitoring to
a. no one.
b. the employees.
c. the government.
d. the public generally.
Edgy Engine Components, Inc., a maker of vehicle parts, refuses to sell to Fidgety
Fix-It, Inc., a national vehicle service firm. Edgy Engine convinces Greasy Motor Parts
Company, a competitor, to do the same. This is
a. a group boycott.
b. a market division.
c. a joint venture.
d. an exclusive-dealing contract.
Sharon, the human resources director for Tempo Corporation, attempts to comply with
the law in dealing with applicants and employees. One of the challenges Sharon faces is
that the legality of an action is
a. always clear.
b. never clear.
c. sometimes clear.
d. usually clear.
Lana applies for a firefighter’s job with Metro City, which responds with a letter setting
an appointment for a medical exam. The letter also states that it is “an employment offer
conditioned on the applicant passing the exam.” This letter is
a. a bilateral contract that Lana accepted by applying for the job.
b. a quasi contract on which Lana can rely for employment.
c. a unilateral contract that Lana can accept by passing the exam.
d. no contract.
Liu enters Mountain Triathlon, an athletic competition in which Liu has never
competed. Regarding the risk of injury, Liu assumes the risks
a. attributable to the triathlon in any way.
b. different from the risks normally associated with the triathlon.
c. greater than the risks normally associated with the triathlon.
d. normally associated with the triathlon.
Robert enters into a contract with Claire. Claire agrees to paint Robert’s living room for
$500. Claire is the
a. obligor.
b. obligee.
c. assignee.
d. assignor.
Under federal law, the calorie content of the food on a menu must be posted by Organic
Mix, LLC, if Organic Mix is
a. a restaurant chain with twenty or more locations.
b. a food distributor with twenty or more customers.
c. a food processor with twenty or more products.
d. a food producer with twenty or more acres.
Biff signs a note “payable to the order of County Credit Union.” Unless Biff has a valid
defense against payment, Biff’s liability on this note is
a. nothing.
b. primary.
c. secondary.
d. conditional.
Svetlana, a fifty-five-year-old member of a racial minority with a disability, believes
that she is a victim of employment discrimination. Potentially the most widespread
form of discrimination is based on
a. age.
b. disability.
c. gender.
d. race.
Maya, a police officer, wants to search the offices of Niles Corporation.Maya asks
Judge Orion to issue a warrant. Under the Fourth Amendment,
no warrants for a search or an arrest can be issued without
a. double jeopardy.
b. probable cause.
c. reasonable doubt.
d. immunity.
Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage’s recovery from
Sudan in a U.S. court may be prevented by
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the Foreign Corrupt Practices Act.
d. the principle of comity.
Fun Toyz Corporation makes skateboards, which it sells to consumers, including Holly
and Ira. Due to a defect, Holly is injured while using her new board. Ira’s board has the
same defect, but he is not injured. In a product liability suit based on strict product
liability, Fun Toyz may be liable to
a. Holly and Ira.
b. Holly only.
c. Ira only.
d. no one.
SurgeStop Company makes electrical cords and other connectors for electronic devices.
Rollo files a product liability suit against SurgeStop, alleging a warning defect. In
deciding whether to hold SurgeStop liable, the court may consider
a. consumer’ general lack of desire to read the product’s warnings.
b. the plaintiff’s specific lack of desire to read the product warnings.
c. the obvious risks of other products.
d. the obvious risks of this product.
Applied Business Corporation makes and markets its products nationwide. Under the
stakeholder approach, to be considered socially responsible when making a business
decision, Applied must take into account the needs of
a. its consumers, the community, and society only.
b. its employees and owners only.
c. its employees, owners, consumers, the community, and society.
d. no one.
Big Valu Grocery Stores is an unincorporated cooperative. Big Valu and other
unincorporated cooperatives are generally treated like
a. business trusts.
b. corporations.
c. joint stock companies.
d. partnerships.
Jo works for Tall Tales Publishing, Inc. The basis for Jo’s contribution under the Federal
Insurance Contribution Act (FICA) is based on her
a. seniority at Tall Tales.
b. annual wage base.
c. special job skills.
d. county of residence.
Catalina promises high returns to Darby and other investors, who then agree to trust
their funds to Catalina. She uses these funds to pay previous investors. This is
a. a Ponzi scheme.
b. a stock option.
c. an accredited investor.
d. a tombstone ad.
Personnel Staffing Corporation meets all of the requirements to be subject to the federal
employment discrimination laws. Among these, the most important statute prohibiting
discrimination against members of protected classes is
a. the Age Discrimination in Employment Act of 1967.
b. the Americans with Disabilities Act of 1990.
c. the National Labor Relations Act of 1935.
d. Title VII of the Civil Rights Act of 1964.
Valley Bank retains the cancelled checks of its customers. Valley must be able to
provide customers with legible copies of checks paid for
a. one year.
b. five years.
c. seven years.
d. nine years.
Coast-to-Coast Distribution, Inc., is a direct-mail distribution company. Like most
corporations, Coast-to-Coast’s employees include its
a. board of directors.
b. incorporators.
c. officers.
d. shareholders.
Orin claims that a Pennsylvania state statute infringes on his ‘substantive due process”
rights. This claim focuses on
a. procedures used to make decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Orin’s privacy.
The United States and other members of a certain organization agree to grant normal
trade relations status to each other with regard to imports and exports. This organization
is
a. the Convention on Contracts for the International Sale of Goods.
b. the International Export-Import Bank.
c. the United Nations.
d. the World Trade Organization.
The assets in Hong’s estate, including the value of his home on Elm Street and its
contents, are insufficient to pay in full all of the gifts provided for in his will. His heirs
will receive
a. full payment in order of seniority until the assets are exhausted.
b. nothingthe assets will descend to the state.
c. reduced benefits.
d. the option of distributing the assets according to their wishes.
Generally, the agent owes the principal no duties.
In a principal-agent relationship, the parties agree that the principal will act on behalf
and instead of the agent in negotiating and transacting business with third persons.
Sellers or lessors are liable only for products that are reasonably dangerous.
Under the UETA, a contract is unenforceable if it is solely in electronic form.
A generic term is not protected under trademark law unless it acquires a secondary
meaning.
Bob is shopping in Carl’s Hardware Store when a nail gun in use by Dan, one of Carl’s
employees, fires without warning and hits Bob in the leg. Carl checks the gun and
discovers that it was assembled improperly. Bob files a suit against Eagle Tools, Inc.,
the manufacturer of the gun, for product liability, on the ground of strict liability. What
are the elements for an action based on strict liability? In whose favor is the court likely
to rule and why?
An instrument that states simply “I.O.U.” is not negotiable.
Vague generalities and obvious exaggerations constitute deceptive advertising.
Sales of securities must occur within five days of registration.
Disparate-impact discrimination occurs when a protected class of individuals is
adversely affected by an employer’s practices, even though they do not appear to be
discriminatory.
Restitution involves one party’s recapture of a benefit through which another party has
been unjustly enriched.
Gelato Cheese Company, a major processor of cheese sold throughout the United
States, employs one hundred workers at its principal processing plant. The plant is
located in Heartland Corners, which has a population that is 50 percent white and 25
percent African American, with the balance Hispanic American, Asian American, and
others. Gelato requires a high school diploma as a condition of employment for its
cleaning crew. Three-fourths of the white population completed high school, compared
with only one-fourth of those in the minority groups. Gelato has an all-white cleaning
crew. Has Gelato violated the Civil Rights Act of 1964? Explain.
Individual states may pass their own right-to-work laws.
A gift to a dying donee is a gift causa mortis.
Real estate sales contract are often made contingent on the buyer obtaining financing.