Gary threatens physical harm to force Hugh to sell his business, Imported Goods, Inc.,
to Gary for a below-market price. This is
a. duress.
b. fraud.
c. puffery.
d. undue influence.
The Alabama Consumer Protection Agency (ACPA) investigates the marketing
practices of Beta Sales, Inc. The ACPA serves a subpoena on Beta, ordering the firm to
provide certain business records, including its marketing agreements with other
companies. Beta refuses to comply with the subpoena. On what is Beta most likely
basing its refusal? Is a court likely to support Beta’s position? Why or why not?
Uri sells 100 cases of vitamins to Wanda, but before she takes physical possession, the
cases are lost. Under the UCC, the parties’ rights and obligations with respect to the loss
depend on the concept of
a. physical possession.
b. product liability.
c. risk of loss.
d. title.
John says to Kris, “I would like to sell you my sports memorabilia collection.” This is
not an offer because it
a. does not describe the subject matter specifically.
b. does not include a price term.
c. only expresses an opinion.
d. only invites Kris to negotiate.
Somethin”-in-the-Oven Corporation and Cookin” Good, Inc., transact a deal under the
UETA. Other state law applies to a dispute between the parties relating to
a. attributing a party’s e-signature.
b. the formation of the parties’ contract.
c. the sending and receiving of e-records.
d. the legal effect of the parties’ e-signatures and e-records.
Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not
to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen
discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical
expenses for a latent injury.
The agreement between Dex and Carmen is
a. a covenant not to sue.
b. an accord and satisfaction.
c. a release.
d. promissory estoppel.
Nadine is a spectator at the Metro City Softball Tournament, an athletic competition.
Regarding the risk of injury, Nadine assumes the risks
a. attributable to the tournament in any way.
b. different from the risks normally associated with the tournament.
c. greater than the risks normally associated with the tournament.
d. normally associated with the tournament.
Boz runs an illegal gambling business and pays Colin, a police officer, not to interfere.
The payments are discovered. Boz and Colin are sent to prison. With respect to the
amount of the payments, Boz can recover
a. all of it.
b. none of it.
c. only as much as Colin has not spent.
d. only as much as Colin has spent.
Cory enters into a contract with Diane to act as her personal sports trainer. If they later
dispute the meaning, and the contract contains unclear terms, the rules of contract
interpretation will give effect to
a. the parties’ intent as expressed in their contract.
b. what the defendant claims was the parties’ intent.
c. what the plaintiff claims was the parties’ intent.
d. what the parties now agree they intended.
Ryan, the owner of SuperMart Stores, Inc., adheres to the “principle of rights” theory.
Under this theory, a key factor in determining whether a business decision is ethical is
how that decision affects
a. the right determination under a cost-benefit analysis.
b. the rights of others.
c. the “right” thing to do.
d. the right to make a profit.
In a dispute over a sale involving a bicycle, Dain argues that as to this deal Elle’s Hobby
Shop, where Dain bought the bike, is a merchant. A court may determine whether Elle’s
is a merchant by assessing whether
a. it has sold any bikes within the last year.
b. it holds itself out by occupation as having knowledge or skill unique to the bike in
the transaction.
c. its owner enjoys biking.
d. it subscribes to Bike, a biweekly trade magazine.
In deciding questions of corporate social responsibility, Valley Disposal & Recycling,
Inc., is concerned with
a. how the corporation can best fulfill any ethical duty to society.
b. the effect on corporate profits of ignoring any ethical duty to society.
c. whether the corporation owes any ethical duty to society.
d. all of the choices.
Ilise, an employee of Pyro Displays, Inc., pays Gavin, an employee of Pyro’s competitor
Fire Worx Company, for a secret Fire Worx pricing schedule. This may be
a. an effective marketing strategy.
b. commercial bribery.
c. creative legal bookkeeping.
d. money laundering.
Dot, a real estate agent, tells Elbert, a home seller, that her commission is 12 percent.
Elbert agrees that Dot can sell his house but refuses to sign a contract unless the amount
of the commission is reduced. After Dot sells the house, Elbert refuses to pay 12
percent. Dot is most likely to recover
a. nothing.
b. on a theory of an express contract.
c. on a theory of an implied contract.
d. on a theory of a quasi contract.
Ethan, the president of Financial Investments, Inc. (FII), and Gina, FII’s accountant, are
charged with a crime, after the police search FII’s offices. Under the exclusionary rule
a. certain FII records are excluded from subpoena by the government.
b. certain parties to a criminal action may be excluded from a trial.
c. illegally obtained evidence must be excluded from a trial.
d. persons who have biases that would prevent them from fairly deciding the case may
be excluded from the jury.
Clem attempts to free himself from the duties of his contract with Drew by telling Drew
to find someone else to perform them. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.
Prospective Enterprises (PE) employs Quinn to buy property for a possible commercial
development. Quinn secretly buys some of the property and sells it to PE at a profit.
Quinn has breached
a. no duty.
b. the duty of accounting.
c. the duty of loyalty.
d. the duty of notification.
Delta, Inc., agrees to assume a debt of Excel Company to First State Bank. The
agreement is not in writing. To be enforceable, the promise must be for the benefit of
a. any party.
b. Delta.
c. Excel.
d. First State.
Trudy and Uri enter into a contract for the sale of Trudy’s house for which Uri agrees to
pay her $250,000. Uri wants to transfer his right to the ownership of the house to Val,
his niece. This transfer generally
a. cannot be prohibited.
b. cannot be allowed.
c. can be prevented.
d. can be circumvented.
BarBQ Sushi Taco Company considers the impact of its corporate decisions on various
groups and often acts in the interest of a group that has a greater stake in a decision than
BarBQ’s shareholders. This is most likely to attract potential employees who are
a. investors focused on short-term profits.
b. irresponsible slackers.
c. politically-motivated complainers.
d. recent college graduates.
In a suit against Corbin, Donatella obtains damages. 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.
Hawaii enacts a state law that violates the U.S. Constitution. This law can be enforced
by
a. no one.
b. the federal government only.
c. the state of Hawaii only.
d. the United States Supreme Court only.
Rapid Pest Control itself out to others as being a corporation but makes no attempt to
incorporate. Ponce signs a contract with Rapid Pest Control that is not performed.
Ponce files a suit against the firm. The court will likely hold that Rapid Pest Control is
a. a corporation by estoppel.
b. an alien corporation.
c. an S corporation.
d. ultra vires.
Jock hires Kym to act as his agent to purchase Lifetime Gym & Fitness, Inc. Jock tells
Kym to reveal that she is buying the firm on behalf of a third party and to tell the seller
who that third party is. Jock is
a. a disclosed principal.
b. an apparent principal.
c. an undisclosed principal.
d. an identified principal.
From a computer in a distant location, Sergio searches Tia’s personal computer without
her permission. Sergio is most likely liable for
a. appropriation.
b. conversion.
c. invasion of privacy.
d. no tort.
The abbreviation “P.A.” in the name “Painless Dental, P.A.” means that this
organization is
a. a private association.
b. a professional association.
c. a public association.
d. a publicly administered corporation.
Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot
for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the
work promised in the contract, its performance will be
a. absolute.
b. complete.
c. material.
d. substantial.
Uri and Vicky orally agree on the sale of Uri’s Nite Club to Vicky and note terms on a
pair of the Club’s napkins, which they both sign. A written memorandum evidencing an
oral contract that would otherwise be unenforceable must contain
a. every term.
b. the essential terms.
c. the preliminary terms.
d. the qualitative terms.
Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in
the offer. The offer will terminate
a. after a reasonable period of time.
b. after a typical work week (five business days).
c. after a usual month (thirty calendar days).
d. never.
Jolene, a law enforcement official, monitors Kelsey’s Internet activitiese-mail and Web
site visitsto gain access to her personal financial data and student information. This may
violate Kelsey’s right to
a. equal protection of the law.
b. privacy.
c. procedural due process.
d. substantive due process.
Like most successful companies, Paychex, Inc., has trade secrets. The law protects
those secrets if
a. Paychex employees do not divulge the information to outside parties.
b. Paychex employees do not handle confidential documents.
c. Paychex employees never leave the company’s employ.
d. the information is unique and has value to a competitor.
Drew contracts to sell a residential duplex to Evan. The contract provides that if Drew
does not close the deal by September 15, he must pay Evan one-half of the contract
price. This provision is not enforceable because it is
a. a liquidated damages clause.
b. a mitigation clause.
c. a nominal damages clause.
d. a penalty clause.
Quality Steel Corporation files a suit against Rite Tool Company, claiming that the
consideration for their contract is inadequate. The court will most likely not examine
the adequacy of the consideration if
a. it is obvious that the consideration is adequate.
b. Rite Tool asserts that there is adequate consideration.
c. something of value passed between the parties.
d. the consideration is worth more than $100.
The UETA does not apply to a transaction unless the parties agreed to conduct the
transaction electronically.
A decision on a given issue by a court is not binding on an inferior court.
To be enforceable, a contract for a sale of goods priced at $50 or more must be in
writing.
Deductive reasoning involves a main premise, a minor premise, and a conclusion.
Arnold is the chief executive officer of Beta Corporation. Arnold’s responsibilities
include decisions on product development, marketing, and other significant business
directions. Arnold is subject to the approval and oversight of Beta’s board of directors.
Carol is a Beta manager whose duties include the firm’s day-to-day hiring, firing,
purchasing, and selling. Dave is a Beta salesperson, whose daily activities are con-
trolled by Carol. Erin writes technical manuals for Beta products according to Arnold’s
instructions and subject to Beta’s control, but has no dealings with Beta customers or
suppliers. Fred edits the manuals on a contract-per-manual basis and is not otherwise
subject to Beta’s control. Who is a principal? Who is an agent? Who is an employee?
Who is an independent contractor?
A limited liability company can be taxed as a partnership.
In raising capital, a sole proprietor is limited to his or her personal fundsa personal loan
is not possible.
If a contract for a sale of goods does not include a quantity term, it is a requirements
contract.
A buyer who rightfully rejects nonconforming goods can resell the goods and keep the
proceeds.
Negligence per se may occur on the violation of a statute.
An express contract must be in writing.
Concurrent conditions occur only when the parties to a contract are required to perform
their respective duties simultaneously.
Under their police powers, states can regulate only public activities, such as political
demonstrations.
Specific performance is the remedy customarily used when one party has breached a
contract for personal services.