Yvon is charged with the crime of theft for taking Zach’s briefcase, which Yvon
mistakenly thought was hers. A mistake of fact is a defense
a. if the fact was not reasonably made known to the public.
b. if the mistake negates the mental state necessary to commit a crime.
c. if the perpetrator was intoxicated.
d. under any circumstances.
Paolo has cerebral palsy, Quincy has kleptomania, and both work for Realty Insurance
Company. Considered disabled under the Americans with Disabilities Act
a. are Paolo and Quincy.
b. is Paolo only.
c. is Quincy only.
d. is neither Paolo nor Quincy.
Variety Goods, Inc., and Worldly Sales Corporation enter into a contract that does not
specify the payment terms. Payment may be made in
a. any commercially acceptable means except cash.
b. cash only.
c. cash or any commercially acceptable substitute.
d. cash or check only.
In Ed’s suit against First National Bank, the discovery phase would include all of the
following except
a. Ed’s complaint.
b. Ed’s deposition.
c. Ed’s requests for First National’s admissions.
d. First National’s replies to Ed’s interrogatories.
Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd.,
a Canadian firm, to give Pharma the right to sell Optima’s products in Canada. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Fact Pattern 36-1
Cherry Grove Apartments, Inc., merges with Dutch Elm Realty, Inc. Only Dutch Elm
remains.
Refer to Fact Pattern 36-1. Cherry Grove held rights in certain real property. After the
merger, Dutch Elm acquires the rights
a. automatically.
b. only after completing certain additional statutory procedures.
c. only Cherry Grove’s former shareholders expressly approve.
d. only if the acquisition is a specified result of the merger.
Lexy and Mort act as the incorporators for NuGame Corporation. After the first board
of directors is chosen, subsequent directors are elected by a vote of NuGame’s
a. board of directors.
b. employees.
c. officers.
d. shareholders.
Dick works for First City Bank. When his spouse Elin is diagnosed with Lou Gehrig’s
disease, Dick asks to take temporary leave to care for her. First City discharges him. He
files a suit against the bank under the Americans with Disabilities Act of 1990. Most
likely, Dick can
a. recover for association discrimination.
b. recover for reverse discrimination.
c. recover for disparate-impact discrimination.
d. not recover.
Lois takes out a life insurance policy with Mega Insurance Corporation that names her
son, Nero, as the beneficiary. This is
a. a delegation.
b. an assignment.
c. a third party incidental beneficiary contract.
d. a third party intended beneficiary contract.
Ula wants to initiate a suit against Valley Farms by filing a complaint. The complaint
should include
a. an explanation to refute any defense the defendant might assert.
b. a motion for summary judgment.
c. a motion to dismiss.
d. a statement of the facts necessary to show Ula is entitled to relief.
Universal Assembly Company makes espresso machines and sells one to Vim through a
misrepresentation on the label on which Vim relies and that results in an injury to Vim.
Universal is most likely liable for
a. a commonly known danger.
b. fraud.
c. privity.
d. puffery.
To finance the purchase of a car from Giant Auto Sales, Hoppy signs an instrument
promising to pay to “Ideal Credit Union” $18,000 with interest in installments with the
final payment due May 15, 2014. To be negotiable, this instrument must include on its
face
a. any conditions on the sale of the car.
b. any conditions to the disbursement of the funds.
c. any conditions to the repayment of the loan.
d. no conditions.
Mica buys “Nature,” a movie, through Open View, an online entertainment vendor.
Before completing the purchase and downloading “Nature,” Mica must review a
warning not to make and sell a copy of it. This warning is
a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.
The E-Sign Act preempts the uniform version of the Uniform Electronic Transactions
Act (UETA).
Fact Pattern 27-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm,
to facilitate an international sales contract to buy resources from Lapland Mining, Ltd.,
a Finnish company.
Refer to Fact Pattern 27-1. First State Bank must pay Lapland when Lapland
a. enters into the contract with Oboe.
b. verifies that Oboe has the money to pay for the purchase.
c. complies with the terms and conditions of the letter of credit.
d. none of the above.
Iggy hires Joy to act as his agent to purchase Kup-a-Koffee Kompany. Iggy tells Joy to
reveal only that she is buying the firm on behalf of a third party, without telling
Kup-a-Koffee’s seller who that third party is. Iggy is
a. a disclosed principal.
b. an implied principal.
c. an undisclosed principal.
d. a partially disclosed principal.
Liu and MidgeNero’s creditorscontract with Nero for the discharge of Nero’s liquidated
debts on payment of a lesser sum. This is
a. a composition agreement.
b. a subrogation.
c. a suretyship agreement.
d. in violation of most states’ laws.
Fact Pattern 44-1
Nika owns land in Ohio. Her ownership rights include the right to sell or give away the
property without restriction, and the right to commit waste, if she chooses.
Refer to Fact Pattern 44-1. Nika conveys some of her land to Reggie with the right to
possess and use the property for a certain period of time. Nika has given Reggie
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. an easement.
Fact Pattern 23-2
Tom draws a check, on his account in State Bank in New York, payable to Digital
Media, Inc., in San Francisco. Digital deposits the check in its account at First National
Bank. First National deposits the check in the Federal Reserve Bank of San Francisco,
which transfers it to the Federal Reserve Bank of New York. That Federal Reserve Bank
sends the check to State Bank.
Refer to Fact Pattern 23-2. Tom’s bank is
a. the cashing bank.
b. the depositary bank.
c. the intermediary bank.
d. the payor bank.
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.
Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month.
Jocasta cannot transfer this duty
a. under any circumstances.
b. without continuing to be potentially liable.
c. without Kevin’s consent.
d. without paying Kevin at least one monthly fee.
Dian, a clerk at an Entertainment Unlimited store, takes a DVD player from the store
without permission. Dian is liable for
a. appropriation.
b. benefiting an employee.
c. conversion.
d. wrongful interference with a business relationship.
Gert, an accountant, contracts to conduct an audit for Hailey. In performing the audit,
Gert fails to detect certain misconduct. Gert is most likely
a. liable if a normal audit would have revealed the misconduct.
b. liable if Gert issues a specifically qualified opinion.
c. not liable if Gert generally disclaims any liability.
d. not liable if the misconduct was due to Hailey’s negligence.
Rural Holding Company (RHC) possesses farmland. RHC has the right to use the
property, including harvesting the crops, for ten years. RHC does not have the right to
extract the coal under the land. This is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. an easement.
Kendall executes a separate written instrument to amend her prior will. This separate
document is
a. a codicil.
b. a constructive will.
c. an inter vivos will.
d. a nuncupative will.
In cyberspace, Bret attempts to steal consumers’ credit card numbers stored in the
networked computers of Cinco Corporation, a financial payments service provider. The
quantity of data that can be stolen is limited by
a. the distance between the computers of Bret and Cinco.
b. the discrepancy in time between the locations of Bret and Cinco.
c. the speed of the connection between the computers of Bret and Cinco.
d. the same physical limits that exist in the “real” world.
Executive control over the Federal Communications Commission, and other agencies,
may be exercised through a presidential veto of
a. Congress’s modifications of the agency’s authority.
b. the agency’s final rules.
c. the agency’s final orders.
d. none of the choices.
Grady is a judge. In his court, Grady may bar a suit if it is not filed within a proper time
according to
a. a statute of limitations.
b. the doctrine of stare decisis.
c. the chancellor’s discretion.
d. the king’s conscience.
Fact Pattern 32-1
Hal, Ira, and Jill are partners in Kappa Accessories, a computer peripherals firm.
Refer to Fact Pattern 32-1. Ira dissociates from Kappa. Jill signs a contract with Micro
Drives, a wholesale component supplier, allegedly on Kappa’s behalf. Micro knows of
Ira’s dissociation. The contract is binding on
a. Hal, Jill, and Kappa only.
b. Jill only.
c. Kappa only.
d. no one.
Jack owns land located outside Metro City. Jack sells the land to Quality Disposal, Inc.,
which establishes a hazardous waste disposal facility at the site. Quality Disposal
accepts only waste transported by Regional Trucking Company exclusively from
Consolidated Industries, Inc. Several years later, Quality Disposal closes its facility and
sells the land to Price Rite Corporation, which builds a Price Rite Discount Store on the
site. Meanwhile, some of Metro’s citizens complain to the Environmental Protection
Agency (EPA) that Metro’s municipal water supply is polluted. The EPA investigates
and discovers that the sources of the pollution are leaks of hazardous waste from what
is now the Price Rite property. The EPA cleans up the site. Who can be held liable for
the cost of cleaning up the site? What standards must Metro meet regarding the water?
Fact Pattern 37-2
Sid, a director of Tech Software Company, learns that a Tech engineer has developed a
new, exciting video game. Sid buys Tech stock and tells his friend Uri, who also buys
Tech stock. When the new game is released three weeks later, Sid and Uri sell their
stock for a big profit.Refer to Fact Pattern 37-2. Regarding Sid’s profits on the purchase
and sale of Tech stock, under Section 16(b) of the Securities Exchange Act of 1934
Tech may recapture
a. all of Sid’s profits.
b. half of Sid’s profits.
c. 10 percent of Sid’s profits.
d. none of Sid’s profits.
BroadView Company arranges to have Carrier Corporation, a common carrier, transport
500 DVD players from New York to California. Dan is Carrier’s driver. BroadView will
have no cause of action against Carrier if Carrier fails to deliver the players on time
because
a. authorities are stopping and searching all trucks entering California.
b. Carrier’s dispatcher mistakenly delays Dan’s departure.
c. Carrier’s truck is broken into and the players are stolen.
d. Dan has to wait two days in Denver for the truck to be repaired.
A substantive law creates or defines legal rights and obligations.
An effective offer requires reasonably certain terms.
Acquiring monopoly power through anticompetitive means violates antitrust law.
In many corporations, the directors are also the chief corporate officers.
Often, an administrative agency enforces it own rules.
The federal government must disclose certain records to any person or entity on written
request only if there is a rational reason for the request.
The minimal acceptable standard for ethical behavior is compliance with the law.
The incompetence of a customer revokes a bank’s authority to pay an item.
A party must own property to have an insurable interest in it.
Article 2 of the UCC governs contracts for sales of goods.
An innocent party may seek damages for a fraudulent contract.
A limited partner who participates in the management of the partnership may be
personally liable to the firm’s creditors.
A debtor’s car may be exempt from satisfaction of a judgment debt.
To have standing to sue, a party must have been harmed or have been threatened with
harm by the action about which he or she complains.
Under the UCC, an offer to buy goods can be accepted only by a prompt shipment of
the goods.
Expropriation occurs when a government seizes private property for an illegal purpose
and awards just compensation.
A hacker is someone who uses one computer to break into another.
In contracts involving a carrier, a seller can complete performance only through a
shipment contract.
A marketing technique can be a trade secret.