Barb, a real estate agent, is showing John a house. She tells him that this is a house
where “his family can live happily ever after.” John buys the house, but his wife does
not like it. John
a. can rescind the contract on the ground of fraud.
b. can rescind the contract on the ground of misrepresentation.
c. can rescind the contract on the ground of mistake.
d. was not defrauded.
Mariah promises to pay her assistant Nadine $10,000 in consideration of the services
she provided over the years. Mariah never pays Nadine. Mariah is
a. liable for payment of the $10,000.
b. liable only if Nadine still works for Mariah.
c. not liable, because the consideration is in the past.
d. not liable, because the consideration was unintentional.
Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Distributors.
Genovese runs into the types of difficulties that contractors ordinarily confront, and
Hawthorne agrees to pay extra compensation to overcome them. Regarding the
agreement to pay more, a court would likely
a. enforce it.
b. rescind it.
c. order the parties to renegotiate it.
d. not enforce it.
Ozzy is an officer of Prudent Financial Corporation. Ozzy serves in a representative
capacity for Prudent Financial’s owners. With respect to binding Prudent Financial to
contracts, Ozzy is
a. an agent and has the authority.
b. an agent but does not have the authority.
c. not an agent and does not have the authority.
d. not an agent but does have the authority.
Metro City operates its own municipal public drinking water system for which the
Environmental Protection Agency has set maximum levels of pollutants. Metro does not
use any equipment to meet these standards. With regard to any contamination of the
water, under the Safe Drinking Water Act, this is most likely
a. a violation.
b. not a violation because Metro does not set the standards.
c. not a violation because water is not a stationary source.
d. not a violation because Metro does not use any equipment.
Orange Company makes cellphones. The company’s ad states that “if you arent usin an
Orange, you arent gettin any C.” The Federal Trade Commission would consider this ad
a. false and misleading.
b. impermissibly vague and general.
c. a deceptive half-truth.
d. none of the choices.
Valley Tack Shop signs a contract with Gary’s Boots and Saddles for delivery of five
saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written
contract must designate
a. the method of delivery.
b. the method of payment.
c. the quantity of saddles.
d. the seller.
Julia is an agent who purchases wool for Kara’s Knitting Company. In the course of her
performance for Kara’s Knitting Company, Julia pays for the gas for the company car
and for some storage boxes for the wool. Kara’s Knitting Company must reimburse
Julia because of the principal’s
a. duty of performance.
b. duty of loyalty.
c. duty of compensation.
d. duty of reimbursement.
John steals an old, battered bicycle that is parked, unlocked, in front of a convenience
store. He repairs, paints, and replaces parts on the bike until it is like new. The original
owner, Kim, claims the bike. The bike belongs to
a. John and Kim as tenants in common.
b. John because he made substantial improvements to it.
c. John because Kim claimed it only after John improved it.
d. Kim because John stole it.
Jody owns KuppaJava Kiosks, a sole proprietorship. Jody’s liability is
a. limited by state statute and varies from state to state.
b. limited to the extent of capital expenditures.
c. limited to the extent of his or her original investment.
d. unlimited.
Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house
burns down before being sold. The agency agreement is likely
a. still in force if Frida gives Gert additional consideration.
b. still in force if Gert does not tell prospective customers.
c. terminated by mutual consent of the parties.
d. terminated by operation of law.
Clarice pays Damien $10,000 to design an ad campaign for her Sweetwater Coffee
Stand chain. The next day, Damien tells Clarice that he has accepted a job in New York
and cannot design her campaign. She files a suit against Damien. As compensatory
damages, she can recover
a. $100,000.
b. $10,000.
c. $1,000.
d. $0.
Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian religious
ethical standards. With respect to their application, these standards are
a. absolute.
b. analytical.
c. discretionary.
d. utilitarian.
Justin wants to file a suit against Mikayla. For a court to hear the case
a. Mikayla must agree.
b. the court must have jurisdiction.
c. the court must issue a deposition.
d. the parties must own property.
Kay and Leo enter into a contract that falls within the provisions of the UETA. Under
the UETA, “an electronic sound, symbol, or process attached to or logically associated
with a record and executed or adopted by a person with the intent to sign the record” is
a. an e-document.
b. an e-signature.
c. an e-transaction.
d. a record.
South Dakota, like other states, may regulate private activities to protect or promote the
public order, health, safety, and general welfare under
a. the state’s police powers.
b. the dormant commerce clause.
c. the due process clause.
d. the free exercise clause.
A contract between Fresh Fruit Corporation and Green Grocer, Inc., requires Fresh Fruit
to deliver goods to Green Grocer’s place of business. This is
a. a bill of lading.
b. a destination contract.
c. a shipment contract.
d. a warehouse receipt.
Dag is an employee of Ridge Mining Company. Under federal labor law, Dag and other
employees have the right to
a. bargain collectively with Eagle through their representatives.
b. insist that Ridge require union membership as a condition of work.
c. interfere with the efforts of others to form labor organizations.
d. refuse to bargain with Ridge through their representatives.
Roger wants Andy to work late on a project. He tells Andy that the morally correct
thing to do is to stay late at the office and work on the project. Andy feels obligated to
stay and work late due to the moral pressure from Roger. Andy stays late at the office,
even though he does not want to. Andy can sue Roger for
a. false imprisonment.
b. battery.
c. defamation.
d. no tort.
Gerald files a bankruptcy petition. The resulting automatic stay will apply to Gerald’s
a. alimony debts.
b. child-support debts.
c. spousal maintenance debts.
d. car payment debts.
Precious Metals Corporation, a raw materials vendor, sells its commodities in certain
quantities to Quarry Refining Company for a certain price but charges Rich Assets, Inc.,
a Quarry competitor, a higher price. This is most likely a violation of
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no antitrust law.
Home Delivery Corporation and Interstate Transport, Inc., sign an agreement that
provides for the payment of “$1,000 by whichever party commits a material breach of
the contract that creates damages difficult to estimate but approximately $1,000.” This
is
a. a liquidated damages clause.
b. a mitigation of damages clause.
c. a nominal damages clause.
d. a penalty clause.
InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to
pay for the service. If InTown does not perform, it may be required to
a. do nothing.
b. make another promise.
c. pay monetary damages.
d. perform a different service.
Under the UCC, if a contract is unilateral, the offeror must be notified of the offeree’s
performance.
A lien is an encumbrance on property to satisfy a debt or protect a claim for the
payment of a debt.
If no heirs are found, the property of a decedent is transferred to a charitable
organization.
A sharing of both profits and losses is the only requirement of a partnership.
Privity of contract establishes the basic concept that third parties have no rights in
contracts to which they are not parties.
An employee’s resignation must be the foreseeable result of an employer’s
discriminatory action to support a showing of constructive discharge.
Once the seller has tendered delivery, the buyer is obligated to accept the goods and pay
for them.
A person who holds the entire bundle of rights in property is the owner in fee simple.
In most cases, a contract that prohibits its assignment cannot be assigned.
A suggestive use of ordinary words may be trademarked.
A finder acquires title to mislaid property good against the whole world, including the
true owner.
An oral contract for a transfer of land is always enforceable.
Selecting the state in which to incorporate is an important step in the incorporation
procedure.
In a limited partnership, a general partner’s dissociation from the firm may lead to
dissolution.
Olaf, an executive with Pharma Product Distribution, Inc., has to decide whether to
market a product that might have undesirable side effects for a small percentage of
users. How should Olaf decide whether to sell the product? How does the standard of
ethics that is applied affect this answer?
A franchise exists when the owner of a copyright licenses its use to another party to sell
goods or services.
In sales law, a warranty is an assurance by one party of the existence of a fact on which
the other party can rely.
A release does not require consideration to be legally binding.
An answer never admits to the allegations made in a complaint.
For twenty years, Ozzie works for Players Paradise, a destination for vacationers from
across the United States, maintaining golf carts. After a steady stream of positive job
evaluations and merit pay raises, Ozzie is promoted to the position of supervisor of
golf-cart maintenance at three of Players’s courses. Five years later, a new employee,
Quentin, is hired to oversee operations at all ten of Players’s courses. Quentin demotes
Ozzie, who is now over the age of forty, to running only one of the three cart facilities,
and freezes his salary. Quentin demotes five other employees over the age of forty and
places one of Ozzie’s former facilities under the supervision of Richie, who is
twenty-three. Ozzie overhears Richie say, “Were going to have to do away with these
old, senile men.” Less than a year later, Quentin reconsolidates the three cart facilitie’
operations under Richie’s charge. Ozzie quits and files a suit against Players for
employment discrimination. Should he prevail? Explain.