Kingston promises to pay Melina $500 to install a sump pump in his warehouse. Melina
com-pletes the installation. The act of installing the pump
a. imposes a moral obligation on Kingston to pay Melina.
b. imposes no obligation on Kingston unless he is satisfied with the job.
c. is not sufficient consideration because it is not goods or money.
d. is the consideration that creates Kingstons obligation to pay Melina.
Moving Advanced Technology Corporation can not claim a trademark in the phrase
“Moving to the Market if the phrase
a. has a secondary meaning.
b. is descriptive.
c. is generic.
d. is memorable.
Jackie inserts a debit card issued by her bank into a machine and keys in her personal
identification number. She is then able to withdraw $500 in cash. Jackie is using
a. an automated teller machine.
b. a point-of-sale system.
c. a direct deposit system.
d. an Internet payment system.
Martha brings a suit against SafeCars, Inc. claiming that she was injured during a car
crash due to defects in the car she had purchased from SafeCars. There is no evidence
that Martha was injured in the accident, but the trial court awards her $1 million in
damages. SafeCars appeals the decision. The appellate court will most likely
a. not modify the trial courts finding of fact because appellate courts are forbidden to
look at questions of fact.
b. modify the trial courts finding of fact because the finding was clearly erroneous.
c. modify the trial courts finding of fact because the award amount was more than
$25,000.
d. modify the trial courts finding of fact because the award amount was less than $5
million.
GR8 Skates Company makes and sells a pair of skates to Hugh. GR8 fails to exercise
“due care to make the skates safe, and Hugh is injured as a result. GR8 is most likely
liable for
a. assumption of risk.
b. knowledgeable use.
c. negligence.
d. product misuse.
Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.
Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an
implied warranty of fitness of a particular purpose arises
a. if the buyer is relying on the seller to select suitable goods.
b. if the buyer asks for it.
c. if the seller is a merchant who deals in goods of the kind sold.
d. in conjunction with lease contracts, not sales contracts.
Focusing on a firm’s short-term profits without considering the companys long-term
needs may be acting unethically.
a. True
b. False
A partys oral agreement to pay anothers debt is NOT enforceable if the partys main
purpose is to derive a benefit for himself or herself.
a. True
b. False
Clutch Auto Parts enters into a contract with Bio Health Club for discounted
memberships for Clutchs employees. Bio breaches the contract and Clutch enters into a
contract with Apex Fitness for the same service at a lower price. Clutch might be
awarded nominal damages to
a. establish, as a matter of principle, that Bio acted wrongfully.
b. provide Clutch with funds for a foreseeable loss beyond the contract.
c. provide Clutch with funds for its loss of the bargain.
d. punish Bio and set an example to deter others from similar acts.
iTablets, Inc., files a suit against Andromeda Pads Corporation. Suri is a witness for
iTablets. Kevin is a witness for Andromeda. iTablets may direct interrogatories to
a. Andromeda.
b. Suri.
c. Kevin.
d. the judge.
If a corporation fails, the shareholders are all individually liable.
a. True
b. False
Lovett County Bank offers to lend money to Kino, the owner of Java Stop, at 15 percent
interest. Before Kino accepts, a state statute is enacted prohibiting loans at rates greater
than 12 percent. Kino and the bank have
a. have a contract for a loan at 15 percent interest.
b. have a contract for a loan at 12 percent interest.
c. have a contract for a loan at 0 percent interest.
d. no contract for a loan.
Administrative law includes only state regulations.
a. True
b. False
Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that warrants
only that Opal held good title during her ownership of the property. This deed is
a. a grant deed.
b. a quitclaim deed.
c. a special warranty deed.
d. a warranty deed.
Michael contracts with Jill to fix the brakes on her Honda Civic. Jill leaves her car with
Michael, but refuses to pay when the work is done. Michael refuses to return the car
until she pays. Michaels lien on Jills car will end
a. inthirty days.
b. insixty days.
c. when Michael voluntarily surrenders possession of the car.
d. when Jill obtains a court order requiring Michael to return the car.
Jackson pays Phil in good faith for a promissory note. Phil warrants that the draft has
not been altered. This warranty is a
a. presentment warranty.
b. consideration warranty.
c. conditional warranty.
d. fixed warranty.
Federal law does notrestrict employers use of the results of genetics test.
a. True
b. False
On May 1 Jill offers to sell Andrea a herd of sheep. On May 3 Jill mails Andrea a letter
revoking the offer. Andrea receives the letter on May Jills revocation of the offer to sell
the sheep became effective on
a. May
b. May
c. May
d. May
If a seller repudiates a contract, the buyers damages do not have to be adjusted to reflect
any expenses that were saved as a result of the breach.
a. True
b. False
An otherwise valid contract may be unenforceable if it is not in writing.
a. True
b. False
It is presumed that a co-tenancy is a tenancy in common unless it is clear that the parties
intended to establish a joint tenancy.
a. True
b. False
Mason creates a trust to prevent his son, Newt, the beneficiary, from assign-ing his
rights to future payments of income from the trust. This is
a. a charitable trust.
b. a constructive trust.
c. a spendthrift trust.
d. an illegal trust.
Jonah tells Levi he will give him an Xbox if Levi does Jonahs chores for a month. Levi
promises to do the chores. Jonah and Levi have formed a
a. bilateral contract.
b. unilateral contract.
c. void contract.
d. unenforceable contract.
It is frequently the companies rather than courts or legislatures that are defining the
privacy rights of their online users.
a. True
b. False
Ruby is young and healthy when she gives Pearl a prize-winning horse. The gift meets
all the requirements to be effective. This is a gift
a. inter vivos.
b. causa mortis.
c. by accession.
d. by confusion.
Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc.
Viable Shipping Corporation, the carrier, transports the books to Warehouse Storage
Company. Texts right to stop delivery is lost when Universitys rights to the goods are
acknowledged by
a. the appropriate government agency.
b. the students who opt to buy the books.
c. University Bookstores.
d. Warehouse Storage.
Leigh wants to go into the business of construction contracting. Among the reasons that
would probably convince Leigh to set up his business as a sole proprietorship would be
a. its greater organizational flexibility.
b. its limited liability.
c. its perpetual existence.
d. the ease of transferring the business to other family members.
Without authorization, Brady uses the trademark of Ciera Coffee Company to promote
cheap, flavorless candy, which is not similar to Cieras products but diminishes the
quality of the coffee companys mark. This is
a. cybersquatting.
b. typosquatting.
c. trademark infringement.
d. trademark dilution.
Clear Lake Credit Corporation lends funds to Donny, a consumer, to apply to the cost of
a boat, which is the collateral for the loan. An enforceable security interest requires
a. a written agreement and Clear Lakes possession of the boat.
b. a written agreement or Clear Lakes possession of the boat.
c. the boat sellers acknowledgement of the loan in writing.
d. Donnys possession of the boat.
Lil Canine Company (LCC) uses a trademark that neither LCC nor anyone else has
registered with the government. Under federal trademark law, LCC
a. can register the mark for protection.
b. cannot register a mark that has been used in commerce.
c. has committed trademark infringement.
d. must put off registration until the mark is out of use for six months.
Tristan promises to paint Katys house in exchange for Lilas promise to plant trees on
Tristans property. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.
A condition that must be fulfilled before a partys performance can be required is a
concurrent condition.
a. True
b. False
Interrogatories are written questions for which written answers are prepared and signed
under oath.
a. True
b. False