Cal sells “DownSize, a weight-reduction program, from a Web site, in competition with
Eat-Less Inc.s product “Fit n Trim. Eat-Less files a suit against Cal, alleging in part that
he is a sole proprietor, but his enterprise should be deemed a different form of business.
Cals enterprise should most likely be considered
a. a corporation because DownSize is sold online.
b. a franchisee because DownSize is sold in competition to Fit n Trim.
c. a sole proprietorship because Cal is a sole proprietor.
d. no form of business entity because Cal has no formal organization.
Venerable Company stores office furniture with Warehouse Storage, Inc. (WSI), under a
contract that limits the warehouse companys liability for lost or damaged property to
$500. Venerable declines the option to pay a higher storage rate for an increase in the
liability limit. The furniture is lost through no fault of WSI. The loss is most likely
suffered by
a. Venerable and WSI.
b. Venerable only.
c. WSI only.
d. neither Venerable nor WSI.
RingTone Corporation is a public company whose securities are traded among
investors. Under the Securities Act of 1933, a security is
a. almost any stake in the ownership or debt of a company.
b. an investment that is guaranteed to make a profit.
c. only such common forms of debt and equity as bonds and stocks.
d. whatever a company represents to the public as a security.
Rolling Transport & Storage Corporation wants to insure its warehouse to obtain the
maximum possible recovery for the lowest possible premium. To obtain the maximum
recovery under a coinsurance clause, the percentage of the value of the property that
should be insured is
a. 80 percent.
b. 90 percent.
c. 100 percent.
d. 120 percent.
Hu, Ivan, and Juana apply to work for King Meatpacking Company. These individuals
identities and eligibility to work must be verified by
a. the employer.
b. the individuals.
c. the individuals countries of origin.
d. the U.S. Citizenship and Immigration Services.
Vladimir is a “payday lender charged with filing false claims in bankruptcy proceedings
against his customer-debtors. The standard of proof to find a defendant who has been
charged with a crime guilty is
a. a preponderance of the evidence.
b. beyond all doubt.
c. beyond a reasonable doubt.
d. clear and convincing evidence.
Ramon sets fire to his house. At common law, the crime of arson could be committed
only if a person burned down
a. a commercial building.
b. an unoccupied structure.
c. his or her own house.
d. the house of another person.
Domino causes a disturbance at El Nino Cafe. He is arrested and charged with
disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by
a. a fine only.
b. imprisonment up to one year.
c. imprisonment up to six months.
d. imprisonment up to ten days.
Boutique Corporation would like to change its corporate status to become an S
corporation and avoid income taxes at the corporate level. To qualify, the shareholders
must not be
a. corporations.
b. estates.
c. individuals.
d. partnerships.
Home Products Company and House & Yard, Inc., use the mark “Good Housekeeping
Seal of Approval to certify the quality of their products. Home Products and House &
Yard are not in business together and do not own this mark. This mark is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
Mall Stores Corporation owns 95 percent of the shares of Niche Retail Corporation.
Mall Stores combines with Niche Retail, but only Mall Stores continues to exist. This
transaction was
a. a consolidation.
b. a share exchange.
c. a short-form merger.
d. a termination.
Business Corporation, a U.S. firm, and Comercial, S.A., a Mexican firm, are parties to a
contract that does not specify a choice of law. The governing law is that of
a. any third country.
b. Spain.
c. the buyers place of business.
d. the sellers place of business.
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. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing.
Rossi uses cyber tools to steal the personal information of unsuspecting consumers
online. Like other cyber thieves, Rossi is most likely to
a. sell the data to other thieves online.
b. use the data to make purchases online.
c. use the data in retail outlets in the “real world.
d. sell the data on a street corner in the “real world.
Rick and Sandy are limited partners in Total Profit Enterprises, a limited partnership. A
limited partner has no right to
a. acquire an interest in the firm.
b. contribute property to the firm.
c. engage in activities independent of the firms business.
d. participate in the firms management.
North American Properties, Inc., and its officers, directors, and shareholders, buy and
sell securities. Section 16(b) of the Securities Exchange Act of 1934 covers
a. all purchases and sales of securities.
b. only purchases and sales of securities involving misappropriation.
c. only purchases and sales of securities involving short-swing profits.
d. only purchases and sales of securities involving tippers and tippees.
Cotton Products Corporation is a public company whose shares are traded in the public
securities markets. The Securities Act of 1933 requires Cotton to disclose financial and
other significant information concerning its securities in order to
a. increase corporate accountability by imposing responsibility on chief corporate
executives.
b. prevent insiders from trading among themselves.
c. protect investors.
d. provide a ‘safe harbor for companies that make forward-looking statements.
Quik Sales Corporation orders goods from Re Stock Company. Re plans to market the
goods to consumers generally. Re identifies the goods. Before they are shipped to Quik,
an insurable interest in the goods exists in
a. Quik and Re, but not consumers generally.
b. Quik only.
c. Quik, Re, and consumers generally.
d. Re only.
Sonia manages a Tasty Pastry store for United Food Company. To manage the business,
Sonias authority can be implied by
a. an inference from the position Sonia occupies.
b. any inference a reasonable customer or supplier would make.
c. any inference Sonia chooses to make.
d. no inference.
Imperio Caffeine Corporation makes and sells coffee under a variety of brand names.
Imperio wants to merge with Java Company, its main competitor. In weighing a
challenge to the deal, a court looks at the relevant product market. This most likely
includes coffee and
a. no other products.
b. products that are not identical but are related, such as spin-offs.
c. products that are reasonably interchangeable.
d. products with identical attributes only.
Jaqy distributes a handbill among her neighbors accusing one of themKedof being a
convicted sex offender. The statement is defamatory only if
a. a neighbor repeats it.
b. Ked suffers emotional distress.
c. the statement is true.
d. the statement is false.
Vera gives Willy a $500 check as payment for a debt. Willy crudely raises the amount
of the check to $5,000 and transfers it to Xtreem Sportz store for a new bike. Xtreem
deposits the check in its Yankee Bank account. Vera is liable for the payment of $5,000
to
a. no one.
b. Willy, Xtreem Sportz, and Yankee Bank.
c. Willy only.
d. Xtreem Sportz and Yankee Bank only.
In Fancy Frills Corporations suit against Glamour Stores, Inc., the jury returns a verdict
in Fancys favor. Glamour files a motion asking the judge to set aside the verdict and
begin new proceedings. This is a motion for
a. a judgment in accordance with the verdict.
b. a judgment on the pleadings.
c. a new trial.
d. judgment n.o.v.
Timber Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of
plywood. Under a destination contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before tendering their delivery.
d. place the goods into the hands of a carrier.
Furniture Depot sells Gail a bedroom suite on credit. Gail fails to make the scheduled
payments for six months. Furniture Depot sends her a letter, asking for immediate
payment. This is a violation of
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Superb Toolmakers, Inc., contracts to sell its business to True Hardware Corporation.
Before either party has performed, rescission of this contract requires
a. a mutual agreement to rescind.
b. consideration.
c. performance by all of the parties.
d. an accord and satisfaction.
Ian buys a cell phone in Jiffy Mart, using the means that accounts for more retail
payments than any other. This means of payment is
a. a commercial check.
b. a debit card.
c. a personal check.
d. a trade acceptance.
Nina and Owen enter into an oral contract for Ninas sale to Owen of a laser printer for
$400. Before Owen takes possession of the printer, the contract is enforceable by
a. either party.
b. Nina only.
c. neither party.
d. Owen only.
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.
Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one
of its warehouses. In exchange, Retail receives checks and other items that substitute
for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC
governs
a. the checks.
b. the payment of the loan.
c. the sale of the buildings.
d. the sale of the goods.
The Securities Exchange Commission is an administrative agency. The chief purpose of
such agencies is to
a. act as liaisons between federal and state governments.
b. impose uniform laws on the states.
c. perform specific government functions.
d. standardize laws for the executive and judicial branches.
Garden Field Farms and Haute Gourmet Restaurant, Inc., enter into a contract for a sale
of lettuce before Haute Gourmet declares bankruptcy. Garden Field can stop delivery of
the goods in transit
a. only if the quantity is at least a carload.
b. only if the quantity is at least a planeload.
c. only if the quantity is at least a truckload.
d. regardless of the quantity.
An unknown individual launches a series of attacks against the Web sites of Prime Sales
Corporation. The attacks significantly slow the sites, leading to $100 million in damage
in terms of lost work time, lost revenue, site repair costs, and other expenses. The
attacker does not intend to profit from the onslaught and in fact does not realize any
financial benefit from the effects. How is this attack most likely orchestrated? Who is
most likely to engage in this actthat is, whose habits and limitations are clearly suited to
such conductand why?
The Age Discrimination in Employment Act of 1967 prohibits employment discrimi-
nation on the basis of age against persons over eighteen.
Hackers sometimes rent their “crimeware as a service.
The function of the courts is to interpret and apply the law.
Under a coinsurance clause, a homeowner who insures a home for 80 percent of its
value can recover only 80 percent of the cost for damage to it.
Publishing false information about anothers product is conversion.
Many Web sites use “cookies to collect data on those who visit their sites.
Punitive damages are intended to punish a wrongdoer and deter others.
Private parties cannot sue violators of the Securities Act of 1933.
The Federal Reserve System acts as a clearinghouse where banks exchange checks.
Only a limited partnerships limited partners have a fiduciary obligation to the other
partners.
A maker is secondarily liable on an instrument.
Under the exclusionary rule, all illegally obtained evidence must be included in any
criminal prosecution.
A party who substantially performs his or her duties under a contract can enforce the
contract against the other party.
Transfer warranties attempt to impose liability on the wrongdoer or the party who dealt
most immediately with the wrongdoer.
Almost all types of property can be garnished.
In a limited liability company, members must participate in the management of the
company.