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Diaz and Cuzco enter an express contract for the construction of a warehouse. Express
contract terms are given, in relation to the parties course of performance,
a. less priority.
b. the same priority.
c. no priority.
d. more priority.
Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover
the cost of the aid from Noel
a. even if Noel was not aware of the aid.
b. only if Noel recovers because of the aid.
c. only if Noel was aware of the aid.
d. under no circumstances.
Kit loses her suit against Lou in a Minnesota state trial court. Kit appeals to the state
court of appeals and loses again. Kit would appeal next to
a. a U.S. district court.
b. the Minnesota Supreme Court.
c. the United States Supreme Court.
d. the U.S. Court of Appeals for the Eighth Circuit.
Kato takes temporary family leave from his job at Lube & Oil Company to care for a
new baby. During the leave, under the Family and Medical Leave Act, Lube & Oil must
a. continue the employees health-care coverage.
b. suspend the employees health-care coverage.
c. terminate the employees health-care coverage.
d. do nothing.
Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality
Computer Store. Olgas right to disaffirm the contract
a. does not change the fact that Phil is bound by the contract.
b. does not yet exist because Olga is still a minor.
c. gives Phil, an adult, the right to disaffirm the contract.
d. is not valid because a computer is a "necessary.
Two Japanese firmsMikato, Ltd., and Shuzushi, Ltd.enter into a joint venture in an
attempt to increase their market share of the U.S. auto market. A U.S. court could ex-
ercise jurisdiction over the firms
a. if the joint venture has a substantial effect on U.S. commerce.
b. if the joint venture has any effect on U.S. commerce.
c. if the joint venture was entered into in the United States.
d. under no circumstances.
In reviewing the actions of the U.S. Office of Nuclear Energy and other agencies, the
courts
a. are usually reluctant to review questions of fact.
b. rarely defer to the technical expertise of administrative agencies.
c. often rule on the merits of policy determinations.
d. never defer to an agencys interpretation of law.
Kirby is a manager of Jumpstart Fitness LLC, a limited liability company. Jumpstart is
formed in a state that imposes fiduciary duties on LLC managers. Kirby owes these
duties to
a. Jumpstarts members.
b. Jumpstarts suppliers.
c. Jumpstarts customers.
d. none of the choices.
Rayette transfers a draft by signing it and delivering it to Suki. Suki is
a. a delivery person.
b. a draftee.
c. an indorsee.
d. a promisee.
Creditworthy Loan Company extends credit in the ordinary course of its business.
Under the Truth-in-Lending Act, which is the key federal statute regulating the credit
and credit-card industries, Creditworthy must inform potential borrowers of
a. credit terms offered by other lenders.
b. comparative prices for goods to be bought with the borrowed funds.
c. Creditworthys credit terms.
d. the borrowers credit scores.
Pinpoint Data Corporation buys and sells consumers personal information. This may
violate
a. businesses duties to their customers.
b. individuals rights to their privacy.
c. governments duties and rights with respect to public welfare.
d. no rights or duties.
Fried Food, Inc., operates a commercial frying plant, discharging pollutants into the air.
Greg reports the violations to the Environmental Protection Agency. Greg
a. is not entitled to a payment.
b. may be paid up to any amount.
c. may be paid up to $1,000.
d. may be paid up to $10,000.
Cotton Brokers, Inc., enters into a contract to sell denim clothing to Delite Natural
Fashion store, which in turn sells a pair of jeans to Esmé, a consumer. In comparison to
standards that apply to consumers, the UCC imposes on merchants
a. less strict legal standards.
b. special business standards.
c. stricter ethical standards.
d. the same overall standards.
Owen is a holder of a promissory note obtained from Purchase Money, Inc. Regarding
the defenses against payment of the note to which Purchase Money is subject, Owen, as
an ordinary holder, is subject to
a. more defenses.
b. no defenses.
c. some defenses, but not as many.
d. the same defenses.
Buyers Club is an incorporated cooperative. Like other incorporated cooperatives,
Buyers Club distributes profits to its owners on the basis of
a. the amount of capital they contribute.
b. the degree to which they participate in management.
c. their transactions with the cooperative.
d. the requirements of the state in which it was incorporated.
Inadvertently, Morris leaves his backpack at NuWay Launderers when he stops to pick
up his clothes. The backpack is
a. abandoned property.
b. gifted property.
c. lost property.
d. mislaid property.
Panini Vittles, Inc., contracts with Qino to deliver its sandwiches. Later, the parties
decide to cancel their contract. They can
a. rescind their entire contract.
b. rescind their contract to the extent that it is executory.
c. rescind their contract if they make a new contract at the same time.
d. not rescind their contract.
Jon, a law enforcement official, monitors Kelseys Internet activitiese-mail and Web site
visitsto gain access to her personal financial data and student information. This may
violate Kelseys right to
a. equal protection of the law.
b. privacy.
c. procedural due process.
d. substantive due process.
Rowan, a famous chef, sells to Patricia a restaurant that Rowan closed years ago.
Patricia discovers in the restaurant a collection of Rowans recipes, which are considered
valuable. In a suit to obtain the recipes, Rowan will likely
a. lose because he should have known the recipes were in the restaurant.
b. lose because the sale of a restaurant includes everything in it.
c. win because there was no voluntary consent to the sale of the recipes.
d. win because the sale of a restaurant includes nothing in it.
Delightful Toys, Inc., makes EZ Goo, a childrens toy. Without Delightfuls consent, Fast
Adhesives Company begins to use "ezgoo as part of the URL for Fasts Web site. Fast
claims that no consumer would confuse the Web site with the toy. Fast has committed
a. copyright infringement.
b. patent infringement.
c. trademark dilution.
d. none of the choices.
Dolf borrows money from Elin. Dolf defaults. To use attachment as a remedy, Elin must
first
a. file a suit against Dolf.
b. lose a suit against Dolf.
c. succeed in a suit against Dolf.
d. take possession of Dolfs property.
In a suit against Vladimir over the performance of a contract, Wyler obtains rescission.
This is
a. an order to do or to refrain from doing a particular act.
b. an order to perform what was promised.
c. a payment of money or property as compensation.
d. the cancellation of a contract.
Jason and Katrina work on the loading dock for Longhaul Transport Company. Jason
has a disability. Katrina has seniority. Jason asks for a transfer, which would represent
an accommodation for his disability. Longhaul gives the transfer to Katrina on the basis
of her seniority. Jason files a suit against Longhaul for discrimination on the basis of his
disability. The court is most likely to rule that
a. Katrinas seniority is a good defense.
b. Jasons disability is a sufficient basis for relief.
c. Longhauls action was a business necessity.
d. Longhauls action was a reasonable accommodation.
Violet dies without a will. State laws that determine how the estate of Violet, or of any
decedent, will be distributed in such a circumstance are known as
a. constructive trusts.
b. durable powers of attorney.
c. statutes of descent and distribution.
d. will substitutes.
Excel Corporation conditions shipments of its products to Federated Stores, Inc., on
Federateds agreement not to buy products from Gnarly Goods Company, Excels
competitor. This is
a. an exclusive-dealing contract.
b. a tying arrangement.
c. price discrimination.
d. price fixing.
When possible, Sunee pays recurring monthly bills through automatic bank transfers
and person-to-person payments to e-mail addresses or cell phone numbers. Compared
to the use of paper checks, Sunees payment methods
a. aid sustainability.
b. hurt sustainability.
c. will never affect sustainability.
d. are poised to take a step toward sustainability.
The Anti-Counterfeiting Trade Agreement is most likely to establish an international
governing body to be
a. subject to the World Intellectual Property Organization.
b. under the auspices of the World Trade Organization.
c. part of the Internet Corporation for Assigned Names and Numbers.
d. separate and distinct from existing groups.
Vacation Adventures, Inc., and Wild River Tour Company plan to merge. Most likely,
the articles of merger will be filed with
a. the county recording office.
b. the local chamber of commerce.
c. the states secretary of state.
d. the national travel agents association.
Air Navigation, Inc., makes aviation guidance systems. Ollie is injured in a crash
caused by a defective Air Navigation product. A statute restricts the time within which
Ollie may file a product liability suit against Air Navigation regardless of when he was
injured. This is a statute of
a. limitations.
b. preemption.
c. repose.
d. suspension.
Sole Savers, Inc., and Rite Fit Footwear Stores enter into a contract for a sale of shoes.
The contract indicates that the price includes transportation costs to a specific
destination by including the term
a. C.I.F.
b. delivery ex-ship.
c. F.A.S.
d. F.O.B.
Ron signs a contract with Sam, a door-to-door salesperson for Tutors, Inc., to buy a
foreign-language course. To cancel the contract, Ron has up to
a. three days.
b. thirty days.
c. sixty days.
d. ninety days.
GPS Devices Inc. sponsors a "Finders Keepers! contest in which Erwin and other
entrants agree to race to certain locales to win small prizes and collect clues that lead to
the "Grand Lost Treasure, which the first finder will be awarded. GPS reserves the right
to cancel the contest or change its terms at any time. If Erwin challenges this
reservation in court, the court will most likely hold that GPS can
a. cancel the contest or alter its terms at any time.
b. not modify the terms of the contest after it begins.
c. reduce the amount of the small prizes but not the grand prize.
d. reduce the amount of the grand prize but not the small prizes.
Docs Sports Club and Elite Fitness Corporation enter into a franchise agreement that
provides for its termination at any time for "cause. Docs fails to meet Elites
membership sales quota. Is this "cause for termination? Explain.
Finn gives his coin collection to Gerts Coin Shop to hold temporarily. While in the
shops possession, the collection is destroyed. Gerts may be liable for the loss if this was
a bailment for
a. both parties mutual benefit.
b. Finns sole benefit.
c. Gerts sole benefit.
d. neither partys benefit.
Rural Electric Company submits a bid to build a dam on federal land as part of a federal
project. For this action, an environmental impact statement is most likely
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Brendan borrows $150,000 from Countywide Credit Union to buy a home. The loan is a
fixed-rate mortgage at 5.5 percent with a thirty-year term secured by Brendans home,
which is his principal residence. When Brendan has paid off $10,000 of the
mortgagestill owing $140,000he loses his job and defaults on the loan. The market for
homes has declined since Brendan took out the loan, and the value of the home at the
time of default is $100,000. Despite the default, Brendan assures Countywide that he
has accepted a new position, which will begin in six months. What are Brendans
options to recover the amount still owed on the mortgage? Which option would most
benefit these parties? Why?
The delivery of goods to a common carrier creates a relationship between the shipper
and the carrier.
Federal law establishes the specific procedures for mergers.
An adjustable-rate mortgage is a standard mortgage with an unchanging rate of interest.
There is a specific guarantee of a right to privacy in the Constitution.
The accounting department of Delta Sales Company receives an instrument that states,
"March 16, 201 Thirty days after date, I promise to pay to the order of cash, $700
(seven hundred and 00/100 dollars), in Denver, Colorado, with interest at the rate of 7%
(seven percent) per year. This instrument is secured by a contract for the sale of a
computer. Due April 15, 201 [Signed] Edward Jones. What type of instrument is this? Is
it negotiable? If not, why not?
For a party to take by adverse possession, the partys possession must not be open,
visible, or notorious.
A contract is termed an adhesion contract when both parties adhere to it.
If a third party has the right to control the details of contract performance, the third
party is an incidental beneficiary.
Corporate accountability can be increased by imposing strict disclosure requirements
for securities transactions.
The executive branch is the final authority concerning the constitutionality of a law.
Corporate profits can be subject to double taxation.
There are no registration requirements for trade secrets.
A foreign state is immune from the jurisdiction of U.S. courts as long as the state is
involved in commercial activity in the United States.
Interpretive rules simply declare policy and do not affect legal rights or obligations.
In a share exchange, some or all of the shares of one corporation are exchanged for
some or all of the shares of another corporation.
