Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
George burns an American flag in his backyard. He films his actions and posts the video
on YouTube.com. George's actions are
a. expressly prohibited by the U.S. Constitution.
b. protected by the First Amendment of the U.S. Constitution.
c. considered to be a form of treason.
d. illegal in some states.
The payment of Jose's debt to Klint is guaranteed by Jose's personal property. The
process by which Klint can protect himself against the claims of third parties to this
property is
a. attachment.
b. default.
c. perfection.
d. termination.
Francine buys a new business-law textbook for $125 and a used car for $6,000. She also
signs a one-year lease for an apartment for $700 monthly rent to start at the beginning
of the next month. The Statute of Frauds covers
a. the apartment lease, and the textbook and car purchases.
b. the apartment lease and the car purchase only.
c. the apartment lease only.
d. the textbook and car purchases only.
Feta is a partner in the game design firm GR8 Games, Inc., which obtains key-person
life insurance on Feta in the amount of $1 million from Halo Insurance Company. Feta
quits GR8 Games to join Icy Applications, Inc. Feta dies. Under the principle of
insurable interest, Halo must pay the $1 million to
a. Feta's spouse Jo.
b. GR8 Games.
c. Icy Applications.
d. no one.
William steals a valuable collection of baseball cards from Phillip. William then sells
the cards to Darrel, who does not know that the cards are stolen. Phillip discovers that
Darrel has the cards. Which of the following best describes the rights and liabilities of
the parties involved?
a. Darrel has the right to keep the cards if he compensates Phillip monetarily.
b. Phillip has the right to reclaim the cards from Darrel, but is liable to Darrel for
damages.
c. Phillip has the right to reclaim the cards from Darrel and William is liable to Darrel
for damages.
d. Darrel has the right to keep the cards without compensating William.
Sally's Sweet Fruits contracts with Fruits to You, Inc. for a delivery of two hundred
pounds of strawberries to be delivered by Keep Kool Trucking, a trucking company
with refrigerated trucks. On the day of delivery, the refrigeration units on Keep Kool's
trucks are not working. Fruits to You
a. may ship the goods to Sally's using another trucking company with refrigerated
trucks.
b. must refund Sally's money and cancel the contract.
c. must wait to ship the strawberries until Keep Kool has fixed its trucks.
d. must ship the goods through a different carrier and pay Sally incidental damages.
Cold Stuf, Inc., makes snowboards, which it sells to Deep Freeze Sports Store (DFS).
DFS sells Cold Stuf boards to consumers, including Ed. Ed is injured while using the
board. In a product liability suit based on strict liability, Ed may recover from
a. Cold Stuf only.
b. Cold Stuf or DFS.
c. DFS only.
d. no one.
Delite Candy Company hires Elton to sell Delite's products in a certain area. Delite
agrees to pay Elton a salary, plus commission, for a trial period. They also agree that
Elton can sell using any methods and during any hours that seem appropriate. The most
important factor in whether Elton is Delite's employee is
a. the amount of Elton's salary.
b. the control Delite has over the details of the work.
c. the length of the trial period.
d. the title that designates Elton's position.
Louise is a director for Icy Ices, Inc. Louise is also a director for Creamy Creams, Inc.
When Icy Ices enters into a contract with Creamy Creams, Louise
a. must resign from one of the boards.
b. must resign from both boards.
c. must make a full disclosure of any conflicts of interest and abstain from voting on the
proposed transaction.
d. need not do anything.
Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger. For
this promise to be enforceable under the doctrine of promissory estoppel,
a. the Charger must be considered a customized good.
b. Carolina must act in reliance on Benito's promise to her detriment.
c. Benito's promise must have been overheard by a third party.
d. there must be written evidence of the deal.
Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after
tomorrow to exchange the cash for the lesson. These parties have
a. a bilateral contract.
b. a trilateral contract.
c. a unilateral contract.
d. no contract.
Barry buys a bulldozer from Big Sandbox Equipment Company. Barry is unaware that
there is a lien against the bulldozer when he buys it. Under the UCC, if the creditor
reposes the bulldozer, Barry
a. can recover from Big Sandbox Equipment for breach of warranty.
b. can do nothing.
c. can file criminal charges against Big Sandbox Equipment.
d. can recover damages from the creditor.
Tristan promises to paint Katy's house in exchange for Lila's promise to plant trees on
Tristan's property. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.
Eagle Financial Corporation merges with First Bank Corporation, with Eagle Financial
absorbing First Bank. After the merger
a. a different, new corporation is the surviving corporation.
b. Eagle Financial and First Bank are both surviving corporations.
c. Eagle Financial is the surviving corporation.
d. First Bank is the surviving corporation.
Olaf is the creditor in a transaction with Phil. Once certain requirements are met, Olaf's
rights will attach, which means that Olaf will have
a. an indivisible ownership right to Phil's property.
b. an enforceable security interest in Phil's property.
c. a notice affixed to Phil's property.
d. the permission of a court to seize Phil's property.
Big Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Big Eggs
cannot reasonably ask Omelet Express to pick up the eggs at
a. 1:00 p.m.
b. 2:00 p.m.
c. 3:00 p.m.
d. 4:30 a.m.
Lia works for Media Marketing Company. Her job includes putting "spin" on the firm's
successes and failures. In this context, ethics consist of
a. "bad" versus "good" publicity.
b. questions of rightness and wrongness.
c. the firm's quarterly revenue.
d. whatever is legal.
Kris wants one of Jasmine's purebred Persian kittens. Kris signs an instrument in which
she promises to pay Jasmine for a kitten. The instrument will be negotiable if it is
payable in
a. goods of equal market value.
b. money.
c. any of the choices.
d. shares in stock.
Dora leases a house from Evan for a two-year term. To ensure the validity of their lease,
it should include
a. a description of the premises.
b. a due date for the payment of the property taxes.
c. a requirement that Dora perform structural repairs to the house.
d. a requirement that Evan carry liability insurance.
In newspaper ads, Lo-Price Autos falsely accuses Hi-Value Vehicles, a competitor, of
selling stolen cars. Hi-Value's sales decrease. Lo-Price has most likely committed
a. slander of quality.
b. slander of title.
c. wrongful interference with a business relationship.
d. none of the choices.
In contemplation of death during risky surgery, Donnelly, a guitarist, gives his guitars to
Cathy. The surgery is successful, and Donnelly does not die. The gift of the guitars is
a. not revoked because it was a gift causa mortis.
b. not revoked because it was a gift inter vivos.
c. revoked because it was a gift causa mortis.
d. not revoked because it was a gift largesse.
Caleb is a witness in a controversy involving the U.S. Drug Enforcement
Administration. Caleb can be compelled to appear before an administrative law judge if
he is served with
a. an order for specific performance.
b. a rule for parol evidence.
c. a subpoena.
d. a politely worded request.
Leah gains access to government records and alters certain dates and amounts in her
favor. This is
a. embezzlement.
b. forgery.
c. larceny.
d. no crime.
Richard is an avid baseball fan and attends baseball games whenever he can. Richard
considers himself an expert on all things, including risks, related to baseball. One day a
ball flies into the stands, hits Richard in the head and seriously injures him. Richard can
probably successfully win a case against the sports stadium based on
a. negligence.
b. breach of duty of care.
c. defamation.
d. none of the choices.
Daria writes a check for $100 drawn on Village Bank and presents it to Fast Cash, Inc.,
for payment. If the check is not backed by sufficient funds, Daria may be prosecuted for
a. forgery.
b. fraud.
c. negligence.
d. nothing.
The employee union at Top Tech Toys decides to go on strike. Their strike will be legal
if
a. the strikers form a picket line.
b. the strikers form a massed barrier and deny management and nonunion workers
access to Top Tech Toys' plant.
c. the strikers stay in Top Tech Toys' plant without working.
d. the strikers violently attack management.
Donald applies for a life insurance policy with Equity Insurance Company through
Fletch, an agent who works for Equity. Donald pays the initial premium. Fletch writes a
binder, which
a. acknowledges the application and promises to consider it.
b. attests to the truth of each statement in the application
c. evidences receipt of the payment of the initial premium.
d. indicates that a policy is pending and states its essential terms.
Denise, Ervin, and Flem occupy the positions of directors on the board of Gallery
Corporation. As directors, they may not
a. authorize major corporate policy decisions.
b. decide to issue stock and bonds, and declare dividends.
c. select and remove corporate officers.
d. subordinate the corporation's welfare to their personal interests.
A petition for a discharge in bankruptcy in a liquidation proceeding may be filed by
a. Eminent Employees Credit Union, a corporation.
b. Federal Savings & Loan Association, a corporation.
c. Guaranty Insurance Company, a corporation.
d. Hazel, an independent accountant.
Olivia applies for a job with Petro Company. Petro does not hire Olivia because of her
ethnicity, or national origin. This is
a. reverse discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
To obtain a business license, Bess writes a check to a certain state agency. Bess is
a. the drawee.
b. the drawer.
c. the indorser.
d. the payee.
Fresh Harvest Company, which is based on Georgia, packages and sells vegetables.
Jack, who is a resident of North Carolina, buys a Fresh Harvest product, eats it, and
suffers severe food poisoning. Jack wants to file a suit against Fresh Harvest. The
diversity of citizenship between these parties means that
a. federal and state courts have concurrent jurisdiction.
b. federal courts have exclusive jurisdiction.
c. no court has jurisdiction.
d. state courts have exclusive jurisdiction.
An accountant normally will be held liable to the client for incorrect judgment.
An applicant for insurance has a duty to disclose only material facts that the insurer
asks for.
The first security interest to be perfected is the last in priority over any other perfected
security interests.
There is at least one circumstance in which a person cannot refuse to testify on Fifth
Amendment grounds.
The rights and duties of a bank and its customer are contractual.
A state court can exercise jurisdiction over an out-of-state defendant who does business
in the state over the Internet.
The doctrine of commercial impracticability only extends to problems that are
unforeseen.
A voidable contract is a valid contract that can be avoided at the option of at least one
of the parties to it.
Ethical reasoning is the process through which an individual links his or her moral
convictions or ethical standards to the particular situation at hand.
If the parties to a contract for a sale of goods have not agreed on a price, a court will
determine a reasonable price at the time for delivery.
Contractual capacity includes the financial ability to pay for the benefits of a contract.
A market division by class of customer between rival firms violates antitrust law.
Often, when both parties to a contract are mistaken as to the same material fact, either
party can rescind the contract.
Any criminal activity occurring via a computer in the virtual community of the Internet
is a cyber crime.
It is presumed that a co-tenancy is a tenancy in common unless it is clear that the parties
intended to establish a joint tenancy.
Unfair labor practices are defined by the Norris-LaGuardia Act.
Any relevant material, except information stored electronically, can be the object of a
discovery request.
Reliance on a misrepresentation is justified if the misrepresentation is an obviously
extravagant statement.
