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 partys 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.
Cash National Bank is an HDC of a note for $1,000 on which there is the forged
signature of “Dudley. If sued on the note by Cash
a. Dudley must pay the note.
b. Dudleys best defense would be fraud in the execution.
c. Dudleys best defense would be material alteration.
d. Dudleys best defense would be forgery.
Sweet Candy, Inc., and Tasty Treats Stores enter into a contract for a sale of candy.
Sweet, a merchant who deals in goods of the kind sold, makes express warranties in
connection with the sale. Under the UCC, at the time a contract is formed, an express
warranty can be disclaimed or modified
a. by clear, conspicuous language called to the buyers attention.
b. by implied affirmations of fact relating to the goods.
c. in any way that the seller sees fit for the ordinary purpose.
d. in no way.
Sam and Tiffany enter into an implied contract. This is a contract in which the parties
conduct
a. defines the contracts terms.
b. finds the contracts facts.
c. terminates any unintended consequences.
d. undercuts any terms based on the facts.
Locke signs a check payable to the order of Metro Bank, filling in the blanks for the
amount with the figures “$100 and “One thousand and 00/100 dollars. This check is
payable in the amount of
a. $0.
b. $100.
c. $1,000.
d. $1,100.
Seaside Cannery, Inc., is one of many producers of canned seafood. Seaside refuses to
sell its products to Port Harbor Restaurant Corporation. Under antitrust law, this refusal
is most likely
a. a per se violation.
b. a violation if its competitors make similar deals.
c. a violation if it thereby acquires monopoly power.
d. not a violation.
Hollister and Gladys do business as partners in Frothy Confections. For federal income
tax purposes, Frothy Confections would be treated as
a. a pass-through entity.
b. a natural person.
c. a tax-paying entity.
d. a partnership by estoppel.
Olive borrows from Polo and Quennell, using the same collateral for both loans. Only
Quennell has a perfected security interest. Olive defaults on both loans. The party with
first rights to the collateral is
a. Olive.
b. Polo and Quennell, in proportion to Olives debt to each.
c. Polo.
d. Quennell.
A failure of the Federal Bureau of Investigation to comply with a request under the
Freedom of Information Act (FOIA) may be challenged in
a. a federal district court.
b. a hearing before the U.S. Freedom of Information Agency.
c. a meeting with Congresss FOIA subcommittee.
d. a special conference with the president of the United States.
Kipper files a petition in bankruptcy. Kippers dischargeable debts include
a. domestic-support obligations.
b. student loans unless the lender would suffer undue hardship.
c. unpaid state and federal taxes.
d. unsecured credit-card debt.
Paris knowingly divulges to Media Exposure magazine information about Randys
e-money payments to City Bank without the consent of Randy or City Bank. Paris may
be in violation of federal law
a. if the e-payments were in transmission at the time.
b. if the e-payments have not yet been made.
c. if the e-payments are not represented by paper checks.
d. under none of these circumstances.
Cow Country Corporation (CCC) sells half of its land to the Double R Ranch. On the
land is a reservoir. In the deed, CCC retains the right to remove a limited amount of
water per day from the reservoir. This right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Fernando obtains a consumer loan from Greater Regional Credit Union at an interest
rate that exceeds the states maximum. Greater Regional has
a. created a risk for the purpose of assuming it.
b engaged in a restraint of trade.
c. violated a licensing statute.
d. committed usury.
Fact Pattern 49-1B
Town Transport Company (TTC) agrees to pick up two containers for Unlimited Sales,
Inc., and store their contents, to be delivered later. While TTC unloads one container,
the other disappears from TTCs loading dock.
Refer to Fact Pattern 49-1B. TTC can avoid liability
a. by proof that TTC was not negligent.
b. by proof that TTCs warehouse is located in a high-crime area.
c. by proof that Unlimited Sales was negligent in hiring TTC.
d. under any circumstances.
GroundCover Pools, Inc., agrees to build a swimming pool for Franci, but fails to
complete the job. Franci hires EquiAqua, Inc., to finish the project. Candy may recover
from GroundCover
a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
Fact Pattern 2-A1
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.Refer to
Fact Pattern 2- Resolving the dispute between Java and Kaffe by having a neutral third
party render a binding decision is one of the advantages of
a. arbitration.
b. conciliation.
c. intervention.
d. mediation.
Dan makes a will leaving a specific sum of money to each surviving relative. The assets
of Dans estate are not enough to make all of the gifts in full. This situation requires
a. an abatement.
b. a publication.
c. a residuary.
d. a revocation.
Tri-state Financial Corporation hires Uri, a real estate agent, to locate investment
properties for Tri-state. Uri learns of a warehouse available for $100,000, informs
Tri-state, and makes an offer of $90,000 on Tri-states instruction. The offer is rejected.
Uri
a. breached the agents fiduciary duties to the principal.
b. did nothing wrong.
c. failed to take advantage of a business opportunity.
d. made an unreasonable offer based on current market value.
Abner borrows funds from Boomtown Credit Union (BCU) to buy real property. Abner
signs a written instrument that gives BCU an interest in the property as security for the
debts payment. This instrument is
a. a mortgage.
b. a Treasury security.
c. a workout agreement.
d. homeowners insurance.
Bernice files a petition in bankruptcy. The initial proceeding on this petition will be in
a. a federal bankruptcy court.
b. a state bankruptcy court.
c. the highest court in the state in which Bernice is located.
d. the United States Supreme Court.
Oakley posts a defamatory remark about Pierre in “Roominate, an online social network
maintained by SocNet, Inc., an Internet service provider. Most likely to be held liable
for the remark is
a. Oakley.
b. Pierre.
c. Roominate.
d. SocNet.
Timber Farms, Inc., and Wood Products Corporation enter into an oral contract for the
sale of a lumber mill and the land on which it is situated from Timber to Wood. Under
the Statute of Frauds, this contract is enforceable by
a. the seller.
b. the buyer.
c. any interested third party, such as the mortgagee or title company.
d. none of the choices.
Jason files a suit against Maybelline. If Maybelline fails to respond, Jason
a. must appeal the case to a different court.
b. must refile the suit in the same court.
c. will be awarded the remedy sought.
d. will have a default judgment entered against him.
GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to transport 500 Intelo
Game consoles from San Diego to Phoenix. En route, a pothole causes the truck to
crash, damaging the goods. Liability for the damage most likely rests with
a. GR8 Stores and Haul-Way.
b. GR8 Stores only.
c. Haul-Way only.
d. Intelo only.
In a suit against Sandy, Tippy obtains damages. In the U.S. legal system, this remedy at
law is
a. equitable.
b. normal.
c. unlikely.
d. unusual.
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.
World Investment & Trading, Inc., encourages its employees to build trust with its
customers and other companies. A corporation that “outbehaves its competition
ethically
a. may outperform its competition financially.
b. most likely has fools for managers.
c. may succeed but is not likely to outperform its competition.
d. will undercut its profits and may not achieve business success.
Niche Stores, Inc., must hold a shareholders meeting
a. monthly.
b. annually.
c. biannually.
d. only when it is called by the board of directors.
As a judge, Nina decides cases that involve principles of various sources of law.
Common law is
a. administrative law.
b. case law.
c. civil law.
d. statutory law.
Independent regulatory agencies such as the Federal Trade Commission are
a. not part of the governments executive branch.
b. outside the major departments of the governments executive branch.
c. subagencies of executive agencies.
d. subject to more executive authority than executive agencies.
Any decision by the management of Fast-Food Franchise Corporation may significantly
affect its
a. operators only.
b. operators, owners, suppliers, the community, or society as a whole.
c. owners only.
d. suppliers, the community, or society as a whole only.
Rocco is a director of Spa Lids & Tubs, Inc. Under the standard of due care owed by di-
rectors of a corporation, Roccos decisions must be
a. unwavering and unquestionable.
b. arguable and defensible.
c. informed and reasonable.
d. perfect and unassailable.
A joint venture resembles a partnership but is taxed like a corporation.
Courts in some states will treat an alleged corporation as if it were an actual corporation
for the purpose of determining the rights and liabilities in particular circumstances.
A living trust is created or declared in explicit terms.
An applicant cannot register a trademark on the basis of an intention to use the mark in
commerce.
A business firm can sometimes predict whether a given action is legal.
In an employment contract, a covenant not to compete can be enforceable.
Small claims courts are inferior state trial courts.
A breach of contract occurs only when a party fails to perform all of his or her duties
under a contract.
The intention to enter into a contract is judged by outward, objective facts as interpreted
by a reasonable person.
An “X can qualify as a signature on a will.
A law that limits only some persons exercise of a fundamental right is valid under any
circumstances.
Common law judicial decisions that serve to protect the interests of consumers are not
classified as consumer law.
Under the exclusionary rule, all evidence must be included in a criminal prosecution.
Umberto and Tiara, who are married, borrow $110,000 from Sterling Credit Union to
buy a home. The loan is a fixed-rate mortgage at 5.25 percent with a thirty-year term,
subject to an acceleration clause, and secured by the home, which is their principal
residence. When Umberto and Tiara have paid off $10,000 of the mortgagestill owing
$100,000they lose their jobs and stop making payments. Sterling Credit makes
numerous attempts to contact the couple, but they do not respond. Meanwhile, the
market value of their home has declined to $85,000. After six months, Sterling Credit
decides to take steps to recover the unpaid amount of the loan. What are the lenders
options? Which option seems most likely? Why? What are the steps are involved?
Mergers between firms that compete in the same market are vertical mergers.