Nick, or Nora, or any U.S. citizen, can bring a civil suit in a U.S. court against a foreign
entity
a. for a tort allegedly committed in the United States only.
b. for a tort allegedly committed in the United States or overseas.
c. for a tort allegedly committed overseas only.
d. under no circumstances.
Kelsey promises to pay Jon, her son, $15,000 if he obtains his degree at Ivy University,
where he is currently in his second year. Jon graduates. Kelsey is
a. not required to pay, because Jon was already at Ivy.
b. not required to pay, because obtaining a degree benefits Jon.
c. required to pay, because a job can be hard to find after college.
d. required to pay, because Jon obtained a degree at Ivy.
Chile has a civil law system. In theory, in this system, the courts
a. are obligated to follow the doctrine of stare decisis.
b. may not develop their own laws.
c. must create new rules of law.
d. must develop legal concepts by case law.
Dion, an accountant for Entertainment Sports, Inc., attempts to apply a duty-based
approach to ethical reasoning in conflicts that occur on the job. This approach is based
on the idea that a person must
a. achieve the greatest good for the most people.
b. avoid unethical behavior regardless of the consequences.
c. conform to societys ethical standards.
d. place his or her employers interest first.
Burt, a mentally impaired person, is asked by Carl to sign a piece of paper that Carl
says is an autograph book. In fact, the document is a note. If later sued on the note by
an HDC
a. Burt must pay the note.
b. Burts best defense would be fraud in the execution.
c. Burts best defense would be fraud in the inducement.
d. Burts best defense would be mistake.
Pat, an accountant, includes a false statement in a report for Quantity, Inc., that is filed
with the Securities and Exchange Commission. Quantity publishes a misleading ad
about its future prospects. Rita sees the ad and calls Stan, who buys stock in Quantity.
Under Section 18 of the Securities Exchange Act of 1934, liability may attach to
a. Pats report.
b. Quantitys ad.
c. Ritas call.
d. Stans purchase.
A Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his
farm. Deephole is to keep the excavated gravel in payment. Clydes neighbor Eden
challenges the dig as an illegal gravel pit. A court orders a halt to the dig. Clydes
contract with Deephole is
a. breached.
b. discharged.
c. not affected.
d. suspended.
Industry Processes Corporation generates solid waste considered hazardous. Industry
labels and packages properly all waste to be transported to a disposal site. Under the
Resource Conservation and Recovery Act, this is most likely
a. not a violation.
b. a violation because Industry generates solid waste.
c. a violation because the waste is transported off-site.
d. a violation because the waste is considered hazardous.
Danielle delivers her dress to Every Day Cleaners for dry cleaning. Every Days clerk
promises that the dress will be ready within five business days. Danielle agrees to pay
the charge for the cleaning when she picks up the dress. These parties have a contract.
This is
a. an implied bailment.
b. an involuntary bailment.
c. an express bailment.
d. no bailment.
The United States and other members of a certain organization agree to grant normal
trade relations (NTR) status on 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.
Finn and Glenda want to form and do business as Hobby Crafts Corporation. A
corporation is a legal entity created and recognized by
a. a central federal administrative agency.
b. a city or county clerks office.
c. an artificial legal person.
d. state law.
The United States taxes each barrel of imported oil at a flat rate. This is
a. an antidumping duty.
b. a dumping duty.
c. a quota.
d. a tariff.
Hasty Pastries declares bankruptcy, idling Hastys delivery vehicles. The court can
compel Hasty to make periodic cash payments to a creditor with a secured interest in
the vehicles to offset the depreciation in their value. This is
a. the adequate protection doctrine.
b. the avoidance doctrine.
c. a preferential transfer.
d. the automatic stay.
Recycle Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Organic
Dairy Company. Recycle can obtain only 20,000 of the 6-ounce containers, but also
ships 30,000 more expensive 8-ounce containers for the same price. Organic rejects the
8-ounce containers. With time for performance not yet expired, Recycle can
a. attempt to cure the defect.
b. cancel the contract.
c. recover the purchase price plus incidental damages.
d. resell or dispose of the goods and hold Organic liable for any loss.
Excel Goods, Inc., and Finest Products Corporation use the mark “Good Housekeeping
Seal of Approval to certify the quality of their products. Excel and Finest are not in
business together and do not own this mark. The mark is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
Brassy obtains an insurance policy for her electric guitar collection from Crest
Insurance Company. Brassy 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 Brassy no longer has an insurable interest in the collection.
d. only on advance written notice.
Posing as Sterling Bank, Roxanne e-mails Quentin, asking him to update his personal
banking information by calling a certain phone number. He makes the call and supplies
the data, which Roxanne promptly sells to Porcio. This is
a. no crime.
b. employment fraud.
c. phishing.
d. vishing.
Lindsey, an emergency medical technician, is called to an accident scene by Nicole and
renders medical care to Marvin, a minor. Lindsey may recover the cost from
a. the state.
b. Marvin.
c. Nicole.
d. no one.
Fact Pattern 41-2B
Mega Corporation wants to gain control of MiniCo, Inc. The companies negotiate for
several months, without coming to terms. Mega decides to pursue a takeover attempt.
MiniCo decides to resist.
Refer to Fact Pattern 41-2B. MiniCo solicits a merger with NuNation Corporation, a
third party, which makes a better offer to MiniCos shareholders. NuNation is a
a. crown jewel.
b. Pac-Man.
c. poison pill.
d. white knight.
Beyond Gamez, Inc., a video game retailer based in California, does business in all fifty
states exclusively online. According to New York state tax law, an out-of-state online
retailer must collect and remit state taxes to New York if the retailer
a. plans to establish a substantial physical presence in New York.
b. targets a potential marketing base in New York.
c. maintains a Web site accessible in New York.
d. pays a party within New York to solicit business for its products.
Seafood Restaurant Company pays income and other taxes collected by the Internal
Revenue Service (IRS). Like other federal administrative agencies, the IRS was created
by
a. Congress, through enabling legislation.
b. the courts, through the adjudicatory process.
c. the U.S. Constitution, through the _ Amendment.
d. the U.S. Department of the Treasury, through a final order.
Hamidi, a coffee farmer in Kenya, forms an alliance with Guthrie, an importer and
marketer in Ireland. Their products carry a Fair Trade label. This means that Hamidi
a. accepts whatever price for his products that the market will bear.
b. produces crops with genetically modified organisms.
c. puts children to work whenever possible.
d. uses environmentally sustainable farming methods.
Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to
the Equal Credit Opportunity Act, which prohibits credit discrimination based on
a. disability.
b. education.
c. income.
d. race.
Dag obtains from Expedient Insurance Company a policy that provides Dag has thirty
days after a premiums due date to pay it before the policy will be canceled. This is
a. an antilapse clause.
b. an arbitration clause.
c. an appraisal clause.
d. an incontestability clause.
Damon contracts to repair the turf on a soccer field for Carousel Sports Park. Damon
knows that without the repair, Carousel will have to cancel an upcoming game. Damon
does not perform as promised. As consequential damages, Carousel can recover
a. the cost of new turf.
b. the difference between Damons price and the actual cost of repair.
c. the loss of profit from the canceled game.
d. nothing.
Flynn, an accountant, helps Grange Supply Company prepare and file a false federal
corporate income tax return. Under the Internal Revenue Code, this is
a. a felony punishable by a fine and imprisonment.
b. a felony punishable only by a fine.
c. a misdemeanor punishable only by a fine.
d. a civil violation subject to a liability suit but not a crime.
Quint rents a riding mower from Rent-All, Inc. Quint leaves the mower in a remote
location overnight. When he returns to retrieve it, it is gone. Liability for the loss most
likely rests with
a. Quint and Rent-All.
b. Quint only.
c. Rent-All only.
d. neither Quint nor Rent-All.
Cody is a partner in Derivative Investment Service (DIS). Cody can inspect
a. all of DISs books and records.
b. DISs books and records only as the firms management permits.
c. DISs books and records only for a reasonable purpose.
d. DISs books and records relating to Codys capital contribution only.
Delphi, Ltd., imports appliances made in Southeast Asia into the United States. To
obtain a larger share of the U.S. market, Delphi sells the appliances at lower prices here
than in its exporting countries. With respect to these imports, the United States may
a. do nothing.
b. assess antidumping duties.
c. order the return of the appliances to the exporting countries.
d. confiscate the appliances without just compensation.
EZ Credit Company signs an instrument payable to the order of Fraser that states, “The
maker of this note at the date of maturity, May 1, 2013, can extend the time of payment,
but for no more than a reasonable time. This instrument is
a. negotiable.
b. nonnegotiable, because it includes an extension clause.
c. nonnegotiable, because it is not payable within a definite time.
d. nonnegotiable, because it is payable to a specific payee.
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 special warranty deed provides the most protection against defects of title.
Protection against retaliation under the Civil Rights Act of 1964 does not extend to an
employee who answers questions during an employers internal investigation of another
employees complaint.
Employers cannot forbid their employees from participating in any religious activity.
Tort is a French word for “wrong.
The purpose of tort law is to provide remedies when legally protected interests have
been invaded.
Knowledge of one defense precludes a holder from asserting HDC status in regard to all
other defenses.
Jurisdiction can be a key issue in a case involving a cyber crime.
Portions of a divisible contract may be enforced.
A drawer is liable to the holder of a check if the check is not honored.
A person who issues a negotiable instrument based on false statements by the other
party will be able to avoid payment on that instrument to any party.
A married person who makes a will generally cannot avoid leaving a certain portion of
the estate to the surviving spouse.
The reasonableness of a price-fixing agreement is never a defense.
Causation in fact can be determined by use of the but for test.
In a civil law system, the courts independently develop the rules governing certain areas
of the law.
Punitive damages are almost never available in contract disputes.
DigiTech Corporation pays its employees every two weeks. Eve gets her paycheck,
indorses the back (“Eve Anderson), and, on her lunch hour, goes to cash it at DigiTechs
bank, First State Bank. On the street, in a crowd, she loses the check. Greg Smith finds
it. Has the check been negotiated to Greg? Greg signs the back of the check beneath
Eves signature and cashes it. What might Eve have done to avoid this loss?