On behalf of the jazz group Synco-Passion, their manager Raul agrees to a performance
in the Quay Club on May Portia, acting for Quay Club, sends a written copy of the
agreement to Raul to be signed. Typically, businesspersons put their contracts in writing
to
a. ensure proof of the contracts existence.
b. create substance from form.
c. obtain a check or other negotiable instrument.
d. practice their “letters of credit.
Lew, a member of a protected class, applies for a job with Mit-E Construction
Company, but fails Mit-Es employment test and is not hired. Lew believes that the test
has an unintentionally discriminatory effect. If so, this is
a. reverse discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
To raise $12 million to expand operations, Star Corporation makes a stock offering
directly to sixty accredited investors and twenty sophisticated, but unaccredited
investors. Star plans to notify the SEC of sales. Under the Securities Act of 1933, this
issue may qualify as an “exempt transaction
a. as is.
b. if all of the investors are also given certain material information.
c. if the offering is also made available to the general public.
d. under no circumstances.
Nate tells Opal, “I might sell the skis that I bought last fall since I havent used them and
the skiing season is almost over. This is
a. an acceptance of an offer.
b. an invitation to accept an offer.
c. an offer.
d. a statement of future intent.
Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The
exterior boundaries of the land extend
a. 100 feet into the earth and 100 feet into the atmosphere.
b. one mile into the earth and one mile into the atmosphere.
c. to infinity and beyond.
d. to the center of the earth and up to the farthest reaches of the atmosphere.
Hubert borrows $100,000 from Integrity Mortgage Mart to buy a home. Soon after
obtaining the mortgage, Integrity convinces Hubert to refinance. This is
a. a short sale.
b a subprime mortgage.
c. loan flipping.
d. steering and targeting.
Pikabo files an employment discrimination suit against Quantitative Analysis, Inc.,
under the Civil Rights Act of 1964, based on its discharge of Pikabo. Possible relief
includes
a. imprisonment.
b. reinstatement.
c. fines.
d. an order to shutdown the employers business.
Catalina promises high returns to Darby and other investors, who then agree to trust
their funds to Catalina. She uses these funds to pay previous investors. This is
a. a Ponzi scheme.
b. a stock option.
c. an accredited investor.
d. a tombstone ad.
Security Armored Car Corporation employs Theo as an agent. Without Securitys
knowledge but otherwise acting within the scope of employment, Theo commits a
crime. The state can successfully prosecute
a. neither Security nor Theo.
b. Security only.
c. Security or Theo.
d. Theo only.
Lara, an accountant, conducts an audit of Microstuff, Inc. After the conclusion of the
audit, the working papers created in preparing the audit must be
a. disposed of immediately.
b. kept until the Public Company Accounting Oversight Boards review.
c. maintained for seven years.
d. retained forever.
Frida, Gayla, and Hart occupy the positions of director on the board of Integral
Components Corporation. With respect to these directors, a quorum is the minimum
number
a. who must be at odds in a dispute to call for its resolution.
b. who must be present to validly transact business.
c. whom the shareholders may remove from office at any one time.
d. whose positions must be vacant to warrant an election.
To bid on a job, Budget Construction Company relies on the oral promise of Coldwater
Plumbing, Inc., to perform certain work at a certain price. Coldwater fails to perform.
Budget can
a. not recover due to the principle of freedom of contract.
b. not recover due to the Statute of Frauds.
c. recover under the concept of unconscionability.
d. recover under the doctrine of promissory estoppel.
Cool Corporation makes energy-saving air conditioning units. Cool anticipates a change
in the demand for its products as a consequence of climate change. One argument in
favor of requiring Cool to disclose this information is that it could lead to
a. additional protections under the Sarbanes-Oxley Act of 2002.
b. an increase in the number of shareholder suits against competitors.
c. sound investment decisions by investors.
d. the conversion of Cool from publicly held to privately held.
Sela agrees to act on Thoms behalf, subject to Thoms control, and Thom trusts Sela to
so act. They set out the terms in a written document, which they both sign. This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
Fact Pattern 27-1A
Mike loses his National Bank access card. He realizes his loss the next day but waits a
week to call National. Meanwhile, Opal finds and uses Mikes card to withdraw $3,000
from Mikes account.
Refer to Fact Pattern 27-1A. Mike is responsible for
a. $0.
b. $50.
c. $500.
d. $3,000.
Fact Pattern 12-B1
Sal contracts with Tasty Pizza Company to deliver its products. Both parties change
their minds, however, and inform each other that they would like to cancel the contract.
The next day, Sal changes her mind and again offers to deliver Tastys products. Tasty is
willing to deal, but for a new price. Sal and Tasty
a. may agree to a new contract, but it cannot include a new price.
b. may agree to a new contract that includes the new price.
c. must perform their original contract.
d. must perform the part of their original contract that is executory.
Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave
Fabricateds parking lot for which Fabricated agrees to pay. The elements of this, and
any other, contract include
a. capability.
b. consideration.
c. formation.
d. practicality.
Elle is an agent for Fine Cosmetics, Inc. Elle owes Fine Cosmetics the duty of
a. avoidance.
b. compensation.
c. indemnification.
d. performance.
Transnational Corporation and UniShip, Inc., agree to a contract that includes an
arbitration clause. If a dispute arises, a court having jurisdiction may
a. monitor any arbitration until it concludes.
b. order an arbitrator to rule in a particular way.
c. order a party to bring the dispute to court.
d. order a party to submit to arbitration.
Star Resorts Corporation wants to terminate its franchise arrangement with Tony. Their
contract does not provide for notice of termination or set a time for winding up the
business. This means that to wind up, Tony
a. has a reasonable time, with notice.
b. has whatever time A determines, with or without notice.
c. is entitled to notice, but nothing more.
d. must close immediately.
Mona asserts that a deal she entered into with Nate is an unenforceable contract.
Defenses to the enforcement of a contract include
a. a desire not to perform.
b. adverse economic consequences.
c. results that do not match expectations.
d. the lack of a partys voluntary consent.
Overnight Delivery Service delivers a package to Pam. At the request of Overnights
delivery person, to acknowledge receipt Pam signs a digital pad. This signing creates
a. a cybernotarized signature.
b. a digitized handwritten signature.
c. an asymmetric .cryptosystemic signature.
d. a public-key infrastructure digital signature.
Field Trenchers Inc. initiates a lawsuit against its competitor Master Excavators Inc. out
of malice and without probable cause. Master suffers a loss of profits due to the
litigation, but Field loses the suit. Field is most likely liable for
a. abuse of process.
b. malicious prosecution.
c. no tort.
d. wrongful interference with a business relationship.
Dustin loans Concepcion $50. Concepcion can aid sustainability by
a. sending a paper check in payment.
b. sending payment to Dustins e-mail address or cell phone number.
c. spreading payment over several installments.
d. loaning the $50 to Blair.
Clark is a shareholder of Bedrest Mattress Company. Clark will be deemed to have a
fiduciary duty to Bedrest and its minority shareholders if he has
a. preferred stock.
b. a right of first refusal.
c. a sufficient number of shares to exercise de facto control.
d. watered stock.
Hemisphere Financial Corporation, a U.S. firm, files a suit against Italy in a U.S. court.
Italy claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act,
this claim is determined by
a. a neutral third-party court.
b. an international law court.
c. an Italian court.
d. the U.S. court in which the suit is filed.
Brandy forges Calebs signature on a check “payable to the order of Brandy drawn on
Calebs account in Delphi Bank. Calebs forged signature is
a. effective if an innocent third party accepts the check.
b. effective to the degree that it matches Calebs genuine signature.
c. effective to the extent that Downtown Bank debits Calebs account.
d. not effective.
Liberty Bank provides Michelle with a standard mortgage with an unchanging rate of
interest to buy a home. Payments on the loan remain the same for the duration of the
mortgage. This is
a. a fixed-rate mortgage.
b. an adjustable-rate mortgage.
c. an interest-only mortgage.
d. a violation of the law.
Wilbur files a petition in bankruptcy for relief through an individuals repayment plan.
Wilbur is granted a discharge. Debts that will not be discharged include claims for
a. contributions to employee benefit plans.
b. money to be paid for services not rendered.
c. fraudulently incurred debt.
d. long overdue credit-card debt.
Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glens
statement is defamatory only if
a. a third party hears it.
b. Hu has not been caught.
c. the statement is puffery.
d. the statement is true.
Lon and Merry act as the incorporators for NuGame Corporation. After the first board
of directors is chosen, subsequent directors are elected by a majority vote of NuGames
a. board of directors.
b. incorporators.
c. officers.
d. shareholders.
Jo files a suit against Lara in a Missouri state court. Laras only connection to Missouri
is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the
issue is whether Lara, through her ad, has
a. a commercial cyber presence in Missouri.
b. conducted substantial business with Missouri residents.
c. general maximum contact with Missouri.
d. solicited virtual business in Missouri.
Qang and other foreign citizens allege human rights violations committed overseas by
the government of Burma on behalf of Railway Construction Company, a U.S. firm. To
seek redress for their injuries in a U.S. court, these citizens can
a. subject the private company to the provisions of the Sherman Act.
b. bring civil suits under the Alien Tort Claims Act.
c. file criminal complaints under Title VII of the Civil Rights Act.
d. do nothing.
Patent protection begins on the date that a patent is issued.
The person to whom rights in a contract are assigned is the assignor.
A statement of future intent”I plan to sell my 700-pound sowis an offer.
Warehouse companies are not liable for loss or damage to property resulting from
negligence.
A mechanics lien can be enforced to recover payment from a debtor for labor and
materials in the repair of personal property.
An international custom is a general practice accepted in the international arena as law.
Real property cannot be turned into personal property by detaching it from the land.
A partner is entitled to make secret profits or put self-interest before his or her duty to
the interest of the partnership.
The insured can cancel a policy at any time.
When a small number of companies share a large part of a market, the market is
concentrated.
Revocation of acceptance is not effective until notice is given to the seller or lessor.
If a new company has only two owners, they do not need a shareholder agreement that
defines their relative ownership rights and interests.
A creditor has the right to garnish a debtors wages unless the debt has gone unpaid for a
prolonged period.
A contract involving a lease is the only contract relating to an interest in land that must
be in writing to be enforceable.
Every shareholder is entitled to examine specified corporate records.
Labels on vegetables and fruits are not required to indicate where the food originated.
If a stock certificate is lost or destroyed, ownership is not destroyed with it.
If employees are not informed that certain communications are being monitored, the
employer may be held liable for invading their privacy.