In most states, the courts no longer grant “equitable” remedies.
An offer must be communicated to the offeree to be effective.
Under the exclusionary rule, all illegally obtained evidence must be excluded from any
related criminal prosecution.
In most bailments, the bailee has a right to place a lien on the bailed property until he or
she is fully compensated.
A fixed-rate mortgage is a standard mortgage with a rate of interest that changes
periodically.
A party seeking to recover in quasi contract must show that he or she acted without
reasonably expecting to be paid.
The rules governing firm offers apply to all merchants.
A bank is obligated to pay an uncertified check presented less than six months from its
date.
A contract is a promise to act.
The basic duty of a trustee is to collect and reduce to cash the property in the
bankruptcy estate that is not exempt.
A debtor does not need to be insolvent to file for bankruptcy relief.
A forged signature is effective as the signature of a drawer to the extent that is
resembles the drawer’s actual signature.
A list of customers cannot be a trade secret.
A contract cannot contain both implied and express warranties.
A voidable contract is a valid contract that can be avoided at the option of at least one
of the parties to it.
For a party to take by adverse possession, the party’s possession must not be open,
visible, or notorious.
Proceeds consist of whatever is received when collateral is sold.
Only blue-collar crimes are prosecuted under RICO.
If a voidable contract is avoided, the parties to it are released from it.
“Consideration” refers to the genuine assent of all of the parties to a contract.
Copyright protection is automatic-registration is not required.
The chief aim of the European Union and other trade organizations is to minimize trade
barriers among their members.
Courts never depart from precedents.
A business firm’s profits may suffer if the firm is not a “good corporate citizen.”
On a lessee’s insolvency, the lessor can stop delivery of the goods.
A partner who pursues his or her own interests automatically violates the partner’s
fiduciary duties to the partnership.
Some U.S. bribery laws are directed toward accountants.
Any lawful contract can form the potential basis for an action based on wrongful
interference with a contractual relationship.
Corporate governance can be defined as the relationship between a corporation and its
directors.
A long arm statute permits a court to exercise jurisdiction over an out-of-state
defendant.
Compensatory damages are foreseeable damages that arise from a party’s breach of a
contract.
Neil represents himself as a contractor in Ohio, but he is not licensed in that state. A
contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in
Ohio is
A.enforceable only if Pam does not object after learning of Neil’s status.
B.enforceable only if Pam knows that Neil is unlicensed.
C.enforceable only if the outcome is successful.
D.not enforceable.
Bartleby owes $5,000 to Countryside Credit Union. As a prejudgment remedy to collect
the debt, Countryside could use
A.attachment.
B.contribution.
C.execution.
D.subrogation.
B2B, LLC, is a limited liability company. Among its members, a dispute arises that the
operating agreement does not cover. The dispute is governed by
A.the applicable state LLC statute.
B.the federal Uniform LLC Law.
C.the principles of partnership law.
D.the state corporation statute.
Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport’s
products, via e-records. Under the UETA, an e-record is considered sent when it
A.is signed and encrypted, and will be sent without changes.
B.is stored in the sender’s back-up system.
C.is composed on the sender’s computer.
D.leaves the sender’s control.
Fact Pattern 16-2
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note to
Lou who, in turn, indorses it to Mona, who then indorses it to Nat, the present holder.
Refer to Fact Pattern 16-2. Suppose that Mona pays Nat on the note. With timely notice
to the proper parties, Mona may collect payment on the note from
A.Jake, Kim, or Lou.
B.Jake or Kim only.
C.Lou only.
D.no one.
Taylor digitally copies business software without the authorization of the owners and
sells the copies to others via the Internet. Under federal law, this is
A.a crime only if the copies are not the same as, or close to, the original.
B.a crime only if Taylor and the buyers are in different jurisdictions.
C.not a crime.
D.a crime.
The United States and other members of a certain organization agree to grant normal
trade relations status on each other with regard to imports and exports. This
organization is
A.the Convention on Contracts for the International Sale of Goods.
B.the International Export-Import Bank.
C.the United Nations.
D.the World Trade Organization.
Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the
state’s maximum. First State has
A.calculated the optimum rate that the market will bear.
B.engaged in a restraint of trade.
C.underestimated the risk of the loan’s nonpayment.
D.violated the usury laws.
Elias repays his debt, incurred to buy consumer goods, to Fidelity Bank and
immediately files a written request for a termination statement. Fidelity
A.must comply within one month of receipt of the letter.
B.must comply within twenty days of receipt of the letter.
C.must refund $513 to Elias.
D.need not comply.
Bette backs out of City Parking Garage, colliding with Dill’s car. Dill may recover
$7,500 to cover the cost of the repairs if Bette failed to act as
A.a blameless person.
B.a faultless person.
C.a reliable person.
D.a reasonable person.
Through a certain transaction, Corporate Properties, Inc., acquires all of the shares of
Downtown Realty Corporation for some of Corporate Properties’s shares. Both
Corporate Properties and Downtown Realty continue to exist. This is
A.a consolidation.
B.a share exchange.
C.a short-form merger.
D.a hold-up.
E-Shopping Corporation inserts Fiesta Mall, Inc.’s trademark as a meta tag in
E-Shopping’s Web site’s key-words field without Fiesta’s permission in a manner that
suggests Fiesta authorized the use. This is
A.copyright infringement.
B.patent infringement.
C.trademark infringement.
D.no infringement.
Capital Diversified Corporation (CDC) owns assets in Dagistan, a new country in Asia.
The government of Dagistan wants to nationalize all assets owned by foreign firms and
investors. What can CDC do? Can it at least obtain payment for the assets?
Swim & Trim Fitness Corporation wants to formulate a plan under which it pays a
portion of its debts and is discharged of the remainder while continuing in business. To
accomplish this goal, Swim & Trim should file a petition in bankruptcy for relief
through
A.a liquidation.
B.a reorganization.
C.a repayment plan.
D.a family-farmer bankruptcy plan.
Clu, Dolf, and Elton do business as Fertile Valley Farm. Clu’s relationship to the firm
ends, but it continues to do business. This is
A.dissociation.
B.dissolution.
C.winding up.
D.wrongful.
Lightspeed Corporation makes computers, each of which is packaged with a
shrink-wrap agreement. Milo buys a Lightspeed desktop. The shrink-wrap agreement is
most likely enforceable if
A.Milo buys the computer directly from Lightspeed.
B.Milo expressly agrees to the terms in the shrink-wrap agreement.
C.Milo reads the shrink-wrap agreement.
D.the terms in the shrink-wrap agreement concern warranties.
Premier Clothing, Inc., a U.S. firm, obtains a judgment in a U.S. court against Quang
Tri, Ltd., a Vietnamese business. Whether the court’s judgment will be enforced by a
court in Vietnam depends on the Vietnamese court’s application of
A.the act of state doctrine.
B.the doctrine of sovereign immunity.
C.the principle of comity.
D.the World Trade Organization.
Reynaldo is a director of Quantum Mechanix Corporation. Reynaldo’s rights, as a
director, do not include a right to
A.indemnification.
B.inspection.
C.participation.
D.self-dealing.
Digital Architecture, Inc., enters into a contract to design robotic software for Chassis
Assembly Corporation. The requirements of this, and any other, contract include
A.something of value received or promised to convince a person to make deal.
B.persons whose characteristics qualify them as implied parties.
C.negotiation and compromise.
D.a paragraph that describes the contracting parties’ intent.
Orly’s debts are discharged in a liquidation bankruptcy. Pester & Recover, Inc., buys the
discharged debt obligations. With respect to these debts, Pester
A.can do nothing.
B.can pressure Orly into paying them.
C.must give Orly additional help to rebuild her life after the discharge.
D.must report the debts to credit reporting agencies as “discharged.”
Myra owns a house, which she advertises for sale for $200,000. On May 1, Nicole
offers Myra $180,000 for the house. On May 5, Myra delivers to Nicole a form that
includes additional terms but does not state a price. At 9 a.m. on May 6, Nicole signs
the form and gives it to Odell, her administrative assistant, with instructions to mail it.
At 10 a.m., Myra calls to tell Nicole that the deal is off. The next day, Odell mails the
signed form to Myra. When Myra refuses to sell the house, Nicole files a suit against
her, alleging breach of contract. Myra claims that there was no contract. What are
arguments supporting each party’s position? What is the court likely to rule? Explain.
Fact Pattern 19-2
Mary’s home is in a state that has a $30,000 homestead exemption. Mary defaults on a
$60,000 debt that she owes to Nina. Mary’s home is sold at auction for $80,000.
Refer to Fact Pattern 19-2. Nina may recover
A.0.
B.$30,000.
C.$50,000.
D.$60,000.
Players Video Game Centers, Inc., wants to issue stock of $1 million in a single
offering. Players must provide all investors with material information about itself, its
business, and its securities if
A.all investors are accredited.
B.under any circumstances.
C.any investors are accredited.
D.any investors are unaccredited.
Pace is an attorney, whose clients include Quikfeet Running Shoes Company. Unless
Quikfeet has violated securities law, the contents of Pace’s file on Quikfeet may be
disclosed to someone other than Quikfeet
A.only to a third party who is a foreseeable user of the information.
B.only under a court order (with or without Quikfeet’s consent).
C.only with Quikfeet’s consent.
D.under any circumstances.
Business Rental Corporation (BRC) and Cartage Trucking Company enter into a
contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship
or tender goods to the lessee that
A.approximately conform to all of the details of the contract.
B.entirely conform to the contract except in one or two details.
C.exactly conform to the contract in every detail.
D.substantially conform to the contract in most details.
Ernie’s Good Eatin’ Cafe uses a distinctive decor, layout, menu, and style of service.
This restaurant’s image and overall appearance is
A.a certification mark.
B.a collective mark.
C.a service mark.
D.trade dress.
Fact Pattern 17-2
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 17-2. Digital’s bank is
A.the cashing bank.
B.the depositary bank.
C.the intermediary bank.
D.the payor bank.
Fact Pattern 12-1
Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in
quarter-acre lots for Country Acres, a residential development.
Refer to Fact Pattern 12-1. If Desmond breaches the contract, Estelle’s remedy would
most likely be
A.a certain ratio of the amount that Desmond has in liquid funds.
B.a percentage of Desmond’s unrealized profit.
C.the difference between the land’s contract and market prices.
D.specific performance.
In the Braddock case, in weighing the facts that made up the elements of the plaintiff’s
claim, the majority cited as a significant factor
A.assurances that were not incorporated into written documents.
B.the arms’ length business transactions between the parties.
C.the expectation of the good faith of a family member.
D.the plaintiff’s business and professional experience in the industry.
BBQ, Inc., makes and sells grills to Grill Mart, a retailer, which sells one of the grills to
Hope, a consumer. BBQ and Grill Mart include in their contracts a limitation on
consequential damages for personal injuries arising from a breach of warranty. This is
prima facie unconscionable with respect to
A.all of these parties.
B.BBQ and Grill Mart, but not Hope.
C.Hope only.
D.none of these parties.
OK Dry-Cleaning advertises so effectively that the regular customers of its competitor
Purity Cleaners patronize OK instead of Purity. This is
A.appropriation.
B.conversion.
C.wrongful interference with a contractual relationship.
D.none of the choices.