Joe files a voluntary petition for Chapter 7 bankruptcy. His petition does not need to
include
a. a list of Joes secured creditors.
b. a list of Joes unsecured creditors.
c. a list of the occupations of all Joes creditors.
d. the addresses of all Joes creditors.
On default, unless the security agreement states otherwise, the secured party has the
right to take possession of the collateral.
a. True
b. False
Quality Sales Corporation enters into contracts over the Internet. Quality can protect
itself against disputes involving these contracts by making im-portant terms
a. reasonably clear.
b. difficult to notice.
c. impossible to find.
d. standardized.
Silas sells his farm to Kathy. The title is transferred by deed. Kathy is the
a. grantee.
b. grantor.
c. tenant.
d. adverse possessor.
Dani is considering forms of business organization for her financial advisory firm. Like
most states, Danis state requires that to form a limited liabil-ity company, she must file
with a central state agency
a. articles of certification.
b. articles of formation.
c. articles of organization.
d. no specific documents.
To acquire the ownership of a mountain cabin by ad-verse possession, Cody must
occupy the cabin exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
b. in an, open, hostile, and adverse manner.
c. without the owners knowledge.
d. with the states permission.
The element of intent is not very important in determining whether a contract has been
formed.
a. True
b. False
Global Reach Corporation uses invisible files created on the computers, smartphones,
and other mobile devices of visitors to its Web sites to track the users browsing
activities. These files are
a. licenses.
b. cookies.
c. cloud computing.
d. aviolation of the law.
Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would
constitute, in the United States, violations of U.S. anti-trust laws. These laws apply
a. extraterritorially.
b. only to signatories of the North American Free Trade Agreement.
c. only to members of the World Trade Organization.
d. only within U.S. borders.
Any corporation with less than $10 million in assets and fewer than five hundred
shareholders must register their securities with the Securi-ties and Exchange
Commission.
a. True
b. False
A suggestive use of ordinary words may be trademarked.
a. True
b. False
Ruth contracts to provide Stan with fifty hours of telepathic personal coaching. The
state legisla-ture sub-sequently passes a law making tele-pathic personal coaching
illegal. This law will
a. discharge the contract.
b. fulfill the contract.
c. not affect the contract.
d. require immediate performance of the contract.
When dissolution takes place by voluntary action, the shareholders are responsible for
winding up the affairs of the corporation.
a. True
b. False
If no harm results from an allegedly negligent act, there is no liability.
a. True
b. False
Under the UCC, an agreement modifying a contract needs no considera-tion to be
binding.
a. True
b. False
Rocko owes Sybil $1,000 for yard work Sybil performed for Rocko. The money is due
on May 1. On April 30, Rocko goes to the bank to get the money and discovers that the
bank will be closed until May 2. Rocko
a. will be in breach of contract when he fails to pay Sybil on May 1.
b. will not be in breach of contract when he fails to pay Sybil on May 1 due to objective
impossibility.
c. is discharged from any contractual liability to Sybil.
d. will not be in breach of contract when he fails to pay Sybil on May 1 as long as he
pays the $1,000 plus ten percent interest on May 2.
George has a badly infected right foot. Herb, Georges physician, prescribes amputation.
George agrees. During the operation, Herb amputates the left foot. In Georges suit
against Herb, Georges best theory for recovery is
a. assumption of risk.
b. negligence per se.
c. res ipsa loquitur.
d. strict liability.
Consideration is the value given in return for a promise.
a. True
b. False
An artisans lien is effective only if a creditor has possession of the property.
a. True
b. False
Punitive damages are recoverable in contract law for an intentional breach of contract.
a. True
b. False
Barb, a real estate agent, is showing John a house. She tells him that this is a house
where “his family can live happily ever after. John buys the house, but his wife does not
like it. John
a. can rescind the contract on the ground of fraud.
b. can rescind the contract on the ground of misrepresentation.
c. can rescind the contract on the ground of mistake.
d. was not defrauded.
Realty Credit Company and Second Mortgage Corporation plan to con-solidate. Most
likely, the articles of consolidation will be filed with
a. the county recording office.
b. the Securities and Exchange Commission.
c. the states secretary of state.
d. the U.S. Department of Justice.
Four-Square Construction Company enters into a contract with Ben to remodel Carols
Home Store, using products from Delta Building Supplies. Eatery Café is next to Carols
Home Store. The remodeling is a gift from Ben to Carol.
Refer to Fact Pattern 12-1. Delta will realize a profit from the sale of prod-ucts to
Four-Square to remodel Carols store. Delta is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
Violations of the Securities Exchange Act of 1934 may be subject to criminal
prosecution, but not civil liability.
a. True
b. False
The good faith requirement applies to both the holder and the transferor.
a. True
b. False
An oral contract for a sale of goods for more than $5,000 is not enforceable even if the
parties to it admit to its existence in court.
a. True
b. False
A board of directorsgovern every corporation.
a. True
b. False
A shrink-wrap agreement is an agreement whose terms are expressed in-side a box in
which the goods are packaged.
a. True
b. False
An artisans lien is a security device created at statutory law through which a creditor
can recover payment for labor and materials used to increase the value of real property.
a. True
b. False
In most cases, an offeror can revoke an offer as long as the revocation is communicated
before the offeree accepts.
a. True
b. False
A tax preparer that fails to give a taxpayer a copy of his or her tax return may be subject
to a penalty under the Internal Revenue Code.
a. True
b. False
BeFriends Corporation uses the trademark of Community Life Inc., a social media site,
as a meta tag without Community Lifes permission. This may be permissible
a. if the appropriating site has nothing to do with the meta tag.
b. if the two sites appear in the same search engine results.
c. if the use is reasonably necessary.
d. under no circumstances.