In an attempt to combat spam, thirty-six states have enacted laws that prohibit or
regulate its use.
a. True
b. False
Bruno is a businessperson with investments in legal and illegal opera-tions. 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.
A deposition is sworn testimony by a party to a lawsuit or any witness.
a. True
b. False
A fact is objective and verifiable.
a. True
b. False
Even after a tenant assigns a lease, the tenant may be obligated to pay rent.
a. True
b. False
Goods must be of the highest quality possible to be merchantable.
a. True
b. False
A suspect cannot be tried twice in the same court for the same crime.
a. True
b. False
Class-action lawsuits are suits in which a number of persons join together to bring an
action.
a. True
b. False
The purpose of the exclusionary rule is to deter police from misconduct.
a. True
b. False
The term cure refers to the right of the buyer to reject, adjust, or replace nonconforming
goods.
a. True
b. False
Cyber torts are torts that arise from online conduct.
a. True
b. False
Memphis Music Makers Incorporated has a stated purpose to sell musical instruments.
If chief executive officer Tabitha contracts with Frenzied Firearms in Memphis Music
Makerss name to sell a shotgun, she has likely committed
a. an ultra vires act.
b. a de facto act.
c. a de jure act.
d. a legal act.
Valley View Farms enters into a contract to sell Sarahs Corner Shop a truckload of eggs
from free range chickens. Valley View then fails to deliver the eggs to Sarahs Corner
Shop. Sarah
a. must still pay for the eggs or she will be in breach of contract.
b. does not have to pay for the eggs because Valley View failed to perform.
c. must still pay for the eggs, but can file suit against Valley View for breach of
contract.
d. does not have to pay for the eggs, but cannot file suit against Valley View for breach
of contract.
Someone suffering from a mental illness may be incapable of the state of mind to
commit a crime.
a. True
b. False
When processing a check, Superior Bank encodes information, such as the amount of
the check, on the item. Superior thereby warrants to any subsequent bank or payor
a. the item has been returned to the drawer.
b. nothing.
c. the check has been processed manually.
d. the encoded information is correct.
Quorum requirements are the same in all jurisdictions.
a. True
b. False
One cannot acquire ownership by possession by “capturing a wild animal.
a. True
b. False
Destiny and Eduardo, investors in Competitive Acquisitions Corporation, are
dissatisfied with the profit-maximization theory of corporate objectives. These investors
and others who look beyond profits and dividends may consider the triple bottom line,
which does not include a corporations
a. impact on people.
b. profits.
c. impact on the planet.
d. congressional lobbying activities.
In choosing a form of business organization for a new enterprise, important factors
include the ease of creation.
a. True
b. False
Location! Realty LLC is a limited liability company. Like other LLCs, for federal
jurisdictional purposes, Location! Realty is most likely a citizen of
a. all states.
b. every state in which its members are citizens.
c. no state.
d. only the state in which it was formed.
A deceived person must have a justifiable reason for relying on a misrepresentation.
a. True
b. False
The price that a secured party obtains on a sale of collateral is all that the creditor can
recover on the debt.
a. True
b. False
A limited liability company can be taxed as a corporation.
a. True
b. False
Davis points a gun at Eton, threatening to shoot him if he does not steal from his
employer, Freddys Convenience Store, and give the stolen funds to Davis. Charged with
theft, Eton can successfully claim, as a defense
a. nothing.
b. duress.
c. entrapment.
d. self-defense.
Meri, an accountant, includes a false statement in a report for Novelty Paper Products,
Inc. (NPPI) that is filed with the Securities and Exchange Com-mission. When Otho
buys stock in NPPI and loses money on the investment, he files a suit against Meri,
alleging fraud under the 1934 Securities Exchange Act. To avoid liability, Meri can
show that she
a. intended to defraud NPPI, not Otho.
b. intended to profit on stock trades generally, not only with Otho.
c. is an otherwise competent accountant.
d. was not aware her statement was false.
If a nonmerchant-sellers offer expressly conditions acceptance on a
nonmerchant-buyers agreement to the terms of the offer, the buyers positive response is
an acceptance even if it contains additional terms.
a. True
b. False
To succeed in a strict product liability suit, an injured plaintiff must show that a
products defect was the proximate cause of the injury.
a. True
b. False
A contract can be executed on one side and executory on the other.
a. True
b. False
Quibble Game Companys liabilities exceed its assets. Quibble hires Roo & Slay, an
accounting firm, to prepare a balance sheet. Through Roo & Slays negligent omissions,
the sheet shows a positive net worth. Town Bank relies on the balance sheet to make a
loan to Quibble. When Quibble defaults, Town files a suit against Roo & Slay. Under
the Restatement rule, Roo & Slay is most likely
a. liable because Roo & Slay owed a duty of care to Quibble.
b. liable because Roo & Slay owed a duty to any foreseeable user.
c. liable if Roo & Slay knew that Town would rely on the balance sheet.
d. not liable because Roo & Slay and Town were not in privity.
Elton presents an uncertified check for payment more than six months after its date. The
check was drawn by Dakota on her account in First Community Bank. The usual
banking practice in such a case is to
a. cash the check.
b. cash the check.
c. refuse to cash the check.
d. ask the payee what he or she would prefer.