The concept of a floating lien applies to a constantly changing inventory.
a. True
b. False
Roger wants Andy to work late on a project. He tells Andy that the morally correct
thing to do is to stay late at the office and work on the project. Andy feels obligated to
stay and work late due to the moral pressure from Roger. Andy stays late at the office,
even though he does not want to. Andy can sue Roger for
a. false imprisonment.
b. battery.
c. defamation.
d. no tort.
After the first board, the directors are chosen by the corporate officers.
a. True
b. False
Early one morning, Tab agrees to lend his bike to Sheila, who promises to return it in
the evening. Because there is no consideration, there is no contract. This is
a. a constructive bailment.
b. an involuntary bailment.
c. an express bailment.
d. no bailment.
Jeffs grandmother is the payee of a promissory note for $7,500. Jeffs grandmother gives
Jeff the note for his sixteenth birthday. Jeff is
a. an HDC.
b. not an HDC, because he received the note as a gift.
c. not an HDC, because he is a minor.
d. not an HDC, because the note was for less than $10,000.
A lease is enforceable even if the premises are intended for an ille-gal purpose.
a. True
b. False
Under the UCC, parties to sales and lease contracts are not free to establish whatever
terms they wish.
a. True
b. False
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.
Individual states may pass their own right-to-work laws.
a. True
b. False
The payment of Waldos debt to Main Street Bank is guaranteed by Waldos personal
prop-erty. This is governed by
a. the Uniform Commercial Code.
b. the Federal Trade Commission.
c. the U.S. Constitutions commerce clause.
d. the Bankruptcy Reform Act of 2005.
For a creditor to have an enforceable security interest, the debtor must have rights in the
collateral.
a. True
b. False
An instrument payable “with ten hours of services is negotiable.
a. True
b. False
“Blue sky laws regulate securities data stored in cloud computing servers.
a. True
b. False
Justin is charged with a crime. He insists that he should have an opportunity to object to
the charges before a “fair, neutral decision maker. No one can be deprived of “life,
liberty, or property without due process of law under the
a. Second Amendment.
b. Fourth Amendment.
c. Fifth Amendment.
d. Eighth Amendment.
Corporate business matters are presented at a shareholders meeting in the form of
a. resolutions.
b. proxies.
c. articles of incorporation.
d. bylaws.
Grover Nut Company files a suit against Hud, its former account-ant, alleging actual
fraud. Grover must prove
a. intent to deceive.
b. misrepresentation of a non-material fact.
c. misrepresentation of a non-material fact.
d. unjustifiable reliance.
To protect domain name rights from would-be cybersquatters and typosquatters,
AgriBusiness Inc. and other large corporations may have to
a. register thousands of domain names across the globe.
b. pay the owners of Web sites with identical or confusingly similar domain names for
the number of unique visits, or hits, to the sites.
c. change their domain names to avoid identical or confusingly similar domain names.
d. change their trademarks to avoid identical or confusingly similar domain names.
Under the Statute of Frauds, an oral contract for the transfer of a mortgage is
enforceable.
a. True
b. False
The need to protect intellectual property is recognized in the Declaration of
Independence.
a. True
b. False
Coopers Brakes, Inc., enters into a contract with Byrons Service to fix Coopers
hydraulic equipment. Byron delays the repair for three days, but is not aware that
Cooper loses a certain percentage of profit each day the equipment is out of service.
Cooper is most likely to be awarded
a. compensatory damages.
b. nominal damages.
c. punitive damages.
d. no damages.
Property Management Corporation (PMC) owns several apartment buildings in two
states. Regarding standards for maintenance of the build-ings, PMC should consult
a. the applicable city ordinances and state statutes.
b. the previous owners.
c. the long-term tenants.
d. the Uniform Landlords Maintenance Manual.
Under the employment-at-will doctrine, an employer can end an em-ployment
relationship at any time.
a. True
b. False
Xavier owns a duplex that he leases to Yvon and Zack. Xavier may sell
a. the duplex at any time.
b. the duplex, but only after the lease expires and the tenants move out.
c. the duplex, but only with the tenants permission.
d. the lease, but not the duplex.
A customer list is not a trade secret.
a. True
b. False
Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a
city street. Ralph and Speedy are liable to
a. all those who were injured.
b. only those who were uninsured.
c. only those whose injuries could have been reasonably foreseen.
d. only those whose vehicles were closest to Ralphs van.
Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries,
Inc., as she attempts to make sales to food stores. Dom solicits each of Floras
customers. Dom is most likely liable for wrongful inter-ference with a
a. bargaining relationship.
b. business relationship.
c. contractual relationship.
d. customer relationship.
Flo-Thru Corporation is poised to issue securities that, under the Securities Act of 1933,
are “exempt. This means that the securities can be sold
a. on the basis of a material omission or misrepresentation.
b. on the basis ofnonpublic information
c. within any six-month period by certain insiders.
d. without being registered
Wiley incorporates his business as Wiley Wire Corporation in Texas. He and his group
of shareholders intend to make a profit from their sales of fencing wire. Wiley Wire
Corporation is
a. a nonprofit corporation.
b. not a corporation.
c. an alien corporation.
d. a private corporation.
Edy obtains a property insurance policy with First Source Insurance Company for Edys
fishing trawler. First Source can cancel the policy
a. if Edy appears as a witness in a case against First Source.
b. if Edy fails to pay the premiums.
c. if Edy makes changes that add to the trawlers value.
d. under no circumstances.
Regal Autos, Inc., sells cars to consumers. To avoid liability for oral ex-press
warranties, each sales agreement should note that a car is sold
a. as is.
b. in perfect condition.
c. subject to warranties included in the written contract only.
d. with no known defects.
To avoid liability for negligence, a business owner must protect its pa-trons against all
risks.
a. True
b. False