Under the Fair Debt Collection Practices Act, a collection company is legally permitted
to
a. call the debtor at any time of the day.
b. call acquaintances of the debtor to tell them that the consumer is in debt.
c. call the debtor even if the debtor has requested in writing that he or she wishes no
further contact.
d. visit the debtor at work if the consumer’s employer permits such contact.
One of the reasons the International Court of Justice (ICJ) is so vital to the resolution of
international business disputes is that all parties are bound by the ICJ’s decisions.
Because of this, the Court has vast enforcement power.
a. True
b. False
If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods
for $10,000 when the price should have been $1,000, a court will most likely
a. enforce the agreement, relying on oral testimony to determine the correct price.
b. only enforce the agreement as written.
c. not hear the case unless both parties are merchants.
d. not enforce the agreement since the writing did not reflect a meeting of the minds of
the parties.
Sarah, an employee of Amex Corporation, committed a serious criminal act in an
attempt to obtain a large sales order for her employer. A court found her guilty of the
felony and also found the corporation guilty of criminal conduct. The company was
fined $1 million. The court
a. erred in fining the company since finding both Sarah and the corporation guilty
violates the Double Jeopardy Clause of the Constitution.
b. acted properly if this were a federal proceeding; however, it did not act properly if
this were a state proceeding.
c. acted properly in finding Sarah guilty; however it erred in finding the corporation
guilty because of the exclusionary rule.
d. acted properly in this case.
If a trademarked name acquires a generic meaning, the owner of the trademark loses
protection.
a. True
b. False
The only function of a will is to dispose of a person’s property upon death.
a. True
b. False
A design patent protects the appearance of an item and is valid for 14 years.
a. True
b. False
Lori and Dan own a small restaurant as partners. Dan works several hours a day
cooking, waiting on tables, doing the books, and so forth. Dan believes he is entitled to
be paid at least a standard wage for all his work since, at the present time, the part-time
kitchen helpers earn more than he does! Lori claims Dan is not entitled to anything
other than one-half the net profits. Is Lori right?
a. Yes. The UPA states a partner may not collect a “wage” from the partnership business
under any circumstances.
b. Yes, if there is no agreement between Lori and Dan allowing for either of them to be
paid wages for work done at the restaurant.
c. No. Dan may collect only minimum wage, as required by federal law.
d. No. Dan may collect a fair wage for the work he has performed.
Ramona, age 42, orally agreed to work for Brahma, Inc. for the rest of her life for
$50,000 per year. This agreement would not be enforceable since it violates the
one-year rule of the statute of frauds.
a. True
b. False
MegaCorp occasionally sells products in Michigan. It does not have an office in that
state and does not advertise in Michigan. The company’s marketing representatives are
based in New York but do travel to Michigan once a year to attend a trade show. Which
statement is correct?
a. MegaCorp must register in Michigan because its sales representatives attend a trade
show in Michigan.
b. MegaCorp is not required to register in Michigan because it does not have an
ongoing presence in Michigan.
c. MegaCorp must register in Michigan because its actions qualify as doing business.
d. Whether MegaCorp has to register in Michigan depends on where its shareholders
reside.
If Casey assigns her rights to receive income from rental property to Errol, then Errol
will legally acquire any rights to the income held by Casey.
a. True
b. False
Debts that cannot be discharged in bankruptcy include all EXCEPT
a. money owed for alimony.
b. income taxes for 3 years prior to filing.
c. money owed to utility companies.
d. money obtained fraudulently.
If repossessed collateral is sold or otherwise disposed of by the creditor, then the time,
place, manner, and method of disposal must be
a. commercially reasonable.
b. scheduled with the debtor so that the debtor is able to attend.
c. court ordered.
d. perfected.
Bruce tells his son, “You can have my 1990 truck, but if your grades fall, Im taking it
back. Bruce
a. has made no gift.
b. has made a “revocable gift, which is effective as a gift as long as the stated condition
is met.
c. intended to transfer ownership.
d. has made a constructive gift.
Vick Valve Company makes valves for plumbing fixtures. At the beginning of the year,
it sends out a price list addressing each one, “To our valued customers.” Honest Hank
Hardware orders a variety of valves at the prices quoted on the price list. Vick Valve
must honor the prices on the list and sell the valves to Honest Hank.
a. True
b. False
Adherents of the Post Chicago School use an antitrust analysis based solely on whether
competition has been harmed.
a. True
b. False
Mack writes a check to his maid, Marianne, in payment for services rendered. Marianne
indorses the check in blank and gives the check to her masseuse, Janet, in exchange for
a neck massage. Without indorsing the check, Janet gives the check to Martin, her
newspaper carrier in payment for the next four month’s delivery charges. Martin
indorses with a special indorsement and negotiates the check to his church, St. Mark.
The church indorses the check and deposits it in its bank account. If Mack’s bank later
dishonors the check, to whom may St. Mark’s look for recovery?
a. Martin only
b. Only Mack
c. Mack, Marianne, Janet, and Martin
d. Mack, Marianne, and Martin
Which of the following may be a legitimate, nondiscriminatory criterion for selection of
an employee?
a. Age
b. Race
c. Color
d. Educational level
Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New
Year’s Eve festivities. The festivities were unexpectedly canceled because of concern
over a terrorist attack. Harry is
a. obligated to pay the $100.
b. not obligated to pay under the commercial impracticability doctrine.
c. not obligated to pay under the force majeure doctrine.
d. not obligated to pay under the frustration of purpose doctrine.
The original statute of frauds is the English law that began the practice of requiring
written evidence of certain kinds of contracts, but now the British government has
repealed the writing requirement for most contracts.
a. True
b. False
Clarissa trademarked her new company Samjack after her two sons Sam and Jack. This
would be considered a fanciful trademark.
a. True
b. False
In the late 1960s a shareholder of the company that owned the Chicago Cubs baseball
team sued the company because the directors refused to install lights in Wrigley Field.
The court decided that the directors
a. had a rational purpose for not installing lights and were not liable for doing anything
improper.
b. were not protected by the business judgment rule.
c. had not acted with any rational purpose and were liable to its shareholders for
damages caused by their actions.
d. had the right to make decisions for the team without any concern for the desires of
the shareholders.
Which of the following contracts requires a writing under the UCC, Article 2?
a. Jeremy, a full-time student, sold his snow blower to a friend for $450.
b. Kayla, a full-time student, purchased a used computer from Office Plus for $300.
c. A toy manufacturer contracted to sell dolls valued at $10,000 to a department store.
d. Tobias Department Store contracted to sell Jenny a $400 doll.
If someone provides a service that he or she is already obligated to do, it is an example
of
a. a promissory estoppel.
b. a past consideration.
c. an illusory promise.
d. a preexisting duty.
_______ is the term used to describe certain fundamental principles of international law
that cannot be altered by custom or practice.
a. Extraterritoriality
b. Sovereign immunity
c. Gharar
d. Jus cogens
Mulcare Corp. started a compliance program to prevent and detect criminal conduct
within the company and had specific, high-level officers in charge of overseeing the
program. The company effectively communicated the program to its employees and
monitored those employees who were in a position to cheat. It promptly disciplined
anyone who broke the law. One effect of having this programis
a. federal investigators would no longer investigate the company since Mulcare could
take care of any problems internally.
b. federal investigators might be convinced to limit any prosecution to those directly
involved rather than attempting to get a conviction against high-ranking officers or
against the company itself.
c. the Federal Sentencing Guidelines no longer apply.
d. any cases would be prosecuted in state, rather than federal, court.
A woman wishes to attend an all-male, publicly supported college. She claims the
college is violating the Equal Protection Clause of the Constitution. What level of
scrutiny will the court use when deciding this case?
a. Minimal scrutiny
b. Intermediate scrutiny
c. Strict scrutiny
d. Compelling interest scrutiny
One morning, Miles accidentally dropped a thumbtack on the chair of the office
manager where he worked. The office manager sat on the tack and two days later, was
hospitalized with an infection caused by the tack. Which of the following is correct?
a. Miles actions were negligent.
b. No tort has been committed.
c. Miles committed an intentional tort.
d. Miles is strictly liable.
The bank who lends money in exchange for a mortgage on the borrower’s house is
considered to be the
a. mortgagee.
b. mortgagor.
c. profitor.
d. profitee.
A landowner’s highest duty is owed to licensees.
a. True
b. False
Patty is a poor college student struggling to work and keep up with her studies. Fred,
her uncle, promises to pay Patty support of $200 per month for the next six months.
Although Fred didn’t ask her to, she quits her current job in order to devote full time to
her studies for the next six months. Fred makes one payment and then stops with no
explanation. If Patty sues, what is the likely result?
a. Fred would win, as he did not ask Patty to quit her job.
b. Patty would win, as a contract was formed when Fred promised to pay her the
support.
c. Fred would win, as family members cannot sue each other for breach of an oral
promise.
d. Patty may win under the doctrine of promissory estoppel.
Under the “perfect tender rule” the buyer may reject the goods if they fail in any respect
to conform to the contract.
a. True
b. False
Once a duty is delegated, it relieves the delegator of his or her own liability to perform
the contract.
a. True
b. False
An unconscionable contract is one that a court refuses to enforce because of
a. fundamental unfairness.
b. illegality.
c. its limit to free trade.
d. overt vagueness.
Discuss whether or not the following common transactions are bailments and if so, who
is the bailor/bailee, and what type of bailment is involved.
A) Renting storage space in Farmer’s Frank’s huge barn to keep your classic car out of
the snow and ice of winter. The rental agreement provides for $100/month rent and
Farmer Frank has the only access to the barn.
B) Hiring a moving company to move your belongings to a new residence.
C) Loaning your lawn mower to your neighbor.
D) Parking your car in a “park and lock” parking lot.