Bread & Bagels Corporation wants to purchase all of the assets of Coffee & Tea Inc.
Dolly is a Coffee & Tea shareholder. The approval of Dolly and other Coffee & Tea
shareholders is necessary
a. in all circumstances.
b. in no circumstances.
c. only if Coffee & Tea will be paid with unauthorized, unissued stock.
d. only if Bread & Bagels agrees to assume Coffee & Tea’s liabilities.
Loomis Weaving Company contracts to sell sweaters to Style Mart stores. Before the
sweaters are delivered, Style Mart indicates that it will not be able to pay. Loomis can
resell the goods
a. either after finishing the job (and identifying the goods), or after stopping the job.
b. only after finishing the job and identifying the goods.
c. only if Loomis immediately stops the job.
d. under no circumstances.
Lulu, an accountant, conducts an audit of Microstuff Toys, Inc. After the conclusion of
the audit, the working papers created in preparing the audit must be
a. disposed of immediately.
b. kept until the Public Company Accounting Oversight Board’s review.
c. maintained for seven years.
d. retained forever.
Big Screen Video Corporation sells high-definition television sets. Under most
circumstances, Big Screen Video will be presumed to have warranted that its title to the
TVs is
a. the same as each brand’s name.
b. none of the choicesa warranty of title is not presumed.
c. good and valid.
d. the best that money can buy.
Stephanie’s sale of rights she has under a contract with Runway Retail, Inc., to buy the
retailer’s clothing overstock is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.
Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver
the actual possession of the shares to Eton, but gives him the key to a safety-deposit box
in First State Bank in which the stock certificates are locked. Presenting the key is
a. real delivery.
b. constructive delivery.
c. delivery by agent .
d. no delivery.
Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable,
Ludwig must know
a. Milo.
b. Nadine.
c. that the marimba is stolen and Ludwig must intend to keep it.
d. what a marimba is.
Karen is a judge hearing the case of Local Dispatch Co. v. National Transport Corp.
Applying the relevant rule of law to the facts of the case requires Karen to find
previously decided cases that, in relation to the case under consideration, are
a. as different as possible.
b. as similar as possible.
c. at odds.
d. exactly identical.
After an accident with a driver for Onyx Security Company, Paul signs a covenant not
to sue Onyx for damages in a tort action if it pays for the damage to his car. This
covenant
a. bars recovery only if Onyx pays.
b. is an illusory contract.
c. is barred by the preexisting duty rule.
d. is unconscionable.
A Montana state court can exercise jurisdiction over Endurance Insurance Corporation,
an out-of-state defendant, but the defendant must have
a. minimum contacts with the state.
b. maximum contacts with the state.
c. legitimate contacts with the state.
d. legal contacts with the state.
24-Hour Credit Corporation issues high-cost and high-fee mortgage products to people,
including Benny, who could not easily obtain credit under other loan programs.
Under federal law, if 24-Hour Credit fails to provide certain material disclosures with
respect to the loan, Benny’s right to rescind the loan
a. expires at midnight on the day the loan is finalized.
b. is immediately revoked.
c. is extended for up to three years.
d. is tolled for the duration of the loan payments.
Bobbie claims that Carly breached their contract. Carly responds that she never
intended to enter into a contract with Bobbie. The intent to enter into a contract is
determined with reference to
a. the conscious theory of contracts.
b. the objective theory of contracts.
c. the personal theory of contracts.
d. the subjective theory of contracts.
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.
Consumers in Delta City form a business organization to provide, without profit, an
economic service to its members. This is
a. a business trust.
b. a cooperative.
c. a corporation.
d. a joint stock company.
Consumers Choice store accepts a shipment of EZ2U-brand tablets from Digital
Devices, Inc. Consumers Choice later discovers a defect in the tablets, revokes
acceptance, and returns the tablets via GoBack, Inc. During the return, the tablets are
lost. The loss is suffered by
a. Consumers Choice.
b. Digital Devices.
c. GoBack.
d. Consumers Choice’s customers by an increase in prices of other goods.
Jason and Katrina work on the loading dock for Longhaul Transport Company. Jason
has a disability. Katrina has seniority. Jason asks for a transfer, which would represent
an accommodation for his disability. Longhaul gives the transfer to Katrina on the basis
of her seniority. Jason files a suit against Longhaul for discrimination on the basis of his
disability. The court is most likely to rule that
a. Katrina’s seniority is a good defense.
b. Jason’s disability is a sufficient basis for relief.
c. Longhaul’s action was a business necessity.
d. Longhaul’s action was a reasonable accommodation.
Herb’s Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey
and review of Herb’s competitors, which Idris delivers on August 1. Herb’s offer, on the
same date, to pay Idris is
a. a concurrent condition.
b. a novation.
c. tender.
d. mutual rescission.
Spa Selectiva Company makes and sells beauty salon supplies. By selling its product at
prices substantially below the normal cost of production, Spa Selectiva hopes to drive
its competitors from the market. This is
a. market power.
b. predatory pricing.
c. price discrimination.
d. price-fixing.
Omni Insurance Company violates a state licensing statute when selling an insurance
policy to Petra, in whose state Omni is not licensed to sell insurance. As a member of
the class of persons protected by the statute, Petra can
a. do nothing with respect to the policy.
b. enforce the policy or recover the amount of the premiums paid.
c. only enforce the policy.
d. only recover the amount of the premiums paid.
Quentin questions whether there is consideration for his contract with Rainey to
exchange his performance with the Symphonic Saxophone Sextet for her payment of a
certain amount. To constitute consideration, there must be
a. a payment.
b. a performance.
c. a bargained-for exchange.
d. serious thought underlying each party’s intent to contract.
Kerin obtains a property insurance policy for her art collection from Lawton Insurance
Company. Kerin can cancel the policy
a. at any time.
b. only at the end of a period for which a premium has been paid.
c. only if Kerin no longer has an insurable interest in the property.
d. only on advance written notice.
Chelsea is a state court judge. Like judges in most state courts, in a particular case, she
may grant
a. a remedy at law only.
b. a remedy in equity or a remedy at law, but not both.
c. a remedy in equity and a remedy at law.
d. a remedy in equity only.
The payment of John’s debt to Kirsten is guaranteed by John’s personal property.
Kirsten is most likely to perfect her interest by
a. attaching a bright label to John’s property.
b. calculating the precise amount of John’s debt.
c. correcting grammatical errors in the parties’ written agreement.
d. filing a financing statement with the appropriate authority.
Carol enters into a contract to hire Joanne to paint a portrait of Carol’s favorite cat.
Joanne agrees to do the portrait to Carol’s satisfaction for $100. When Joanne finishes
the portrait, Carol announces that she is not satisfied with the portrait because it does
not look like her cat. Carol
a. must accept the portrait and pay Joanne $100.
b. must accept the portrait and pay Joanne $50.
c. must accept the portrait and pay Joanne $25.
d. does not have to accept the portrait or pay Joanne any money.
Clyde issues a check payable to Discount Mart. Elle, Discount’s cashier, forges the
store’s indorsement and deposits the check in her bank account. Clyde’s bank, Main
Street Bank, pays the check. Clyde can recover from
a. Elle, but not Main Street Bank.
b. Main Street Bank, which cannot recover from Elle.
c. Main Street Bank, which can recover from Elle.
d. no one.
Ruthie, a minor, charges the cost of an expensive leather jacket at a Girl’s Trend store.
Two nights later, Ruthie loses the jacket at Minors Only Club. She disaffirms the
jacket’s purchase. Ruthie owes Girl’s Trend the reasonable value of the jacket
a. if it is deemed a “necessary.”
b. if it is deemed unnecessary.
c. under any circumstances.
d. under no circumstances.
Sweetwater Caf orders five gallons of transfat-free cooking oil from Restaurant Supply,
Inc. The seller mistakenly ships the wrong oil, which the buyer keeps, despite the
nonconformity. The oil is destroyed in a kitchen fire. The loss is suffered by
a. Sweetwater and Restaurant Supply, but not Sweetwater customers.
b. Sweetwater, Restaurant Supply, and Sweetwater customers.
c. Sweetwater only.
d. Restaurant Supply only.
Energy Unlimited, LP, is a limited partnership to which its partners, including Fink,
have contributed capital. Energy’s creditors include Graves Engineering, Inc. On
Energy’s dissolution, its assets will be distributed to pay
a. Fink and Graves proportionately.
b. Fink first.
c. Graves first.
d. neither Fink nor Graves.
Fletcher signs a contract to buy a new electric guitar and amplifier just before reaching
the age of majority. After reaching the age of majority, Fletcher does not take
possession or make payments. With respect to the contract, most courts would hold that
this is
a. disaffirmance.
b. emancipation.
c. ratification.
d. rescission.
Parker and Oscar sign a partnership agreement to do business as “Parker’s Plumbing”
without specifying a duration. This partnership is terminable
a. at any time by either partner.
b. only after a reasonable term.
c. only if Parker dissociates from the firm.
d. only if Oscar dissociates from the firm.
As a judge, Bonnie applies common law rules. These rules develop from
a. administrative regulations.
b. court decisions.
c. federal and state statutes.
d. proposed uniform laws.
The date when the principal of a bond is returned to the investor is called the maturity
date.
A professional’s gross negligence in performing a duty constitutes actual fraud.
Letters of credit are formal contracts that are often used in international sales contracts.
In a short-form merger, neither corporation’s shareholders need to approve the merger.
When an instrument has a forged indorsement, the loss usually falls on the party whose
indorsement was forged.
After a contract is made, a supervening event may make performance impossible in an
objective sense.
Some promises create moral, but not legal, obligations.
The loan that a lender provides to enable a borrower to purchase real property is a
mortgage.
All international sales contracts should have a choice-of-language clause to designate
the official language by which the contract will be interpreted.
A limited liability partnership allows its partners to avoid personal liability for the
malpractice of other partners.
A bank has no right to charge a customer’s account for the amount of a stale check.
The Revised Model Business Corporation Act gives a close corporation less flexibility
in determining its rules of operation.
One purpose of criminal sanctions is to deter others from committing similar crimes in
the future.
The chief aim of the World Trade Organization and other trade agreements is to
maximize trade barriers among their members.
A customer list is not a trade secret.
A motion for a directed verdict is also known as a motion for judgment as a matter of
law.
If a job applicant or an employee with a disability, with reasonable accommodation, can
perform essential job functions, the employer must make the accommodation.