InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to
pay for the service. If InTown does not perform, it may be required to
a. do nothing.
b. make another promise.
c. pay money damages.
d. perform a different service.
Eager Beaver Corporation fails to hold an organizational meeting. In this circumstance,
Eager Beaver is most likely
a. a corporation by estoppel.
b. a de facto corporation.
c. a de jure corporation.
d. ultra vires.
Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing
Tours. Bayou repudiates the contract. Eventide’s recovery is measured at the time
a. Bayou advertised the goods.
b. Eventide ordered the goods.
c. Eventide learned of the breach.
d. Bayou knew that it would repudiate the contract.
A-1 Furnishings, Inc., agrees to lease a desk to Business Resources, Inc. (BRI), which
requests that the desk be left outside City Warehouse for BRI to pick up. Before BRI
retrieves the desk, it is stolen. The loss is suffered by
a. A-1 Furnishings and BRI, but not City Warehouse.
b. A-1 Furnishings, BRI, and City Warehouse.
c. A-1 Furnishings only.
d. BRI only.
Fact Pattern 33-3
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 33-3. Mary will receive
a. $0.
b. $30,000.
c. $50,000.
d. $60,000.
Lana applies for a firefighter’s job with Metro City, which responds with a letter setting
an appointment for a medical exam. The letter also states that it is “an employment offer
conditioned on the applicant passing the exam.” This letter is
a. a bilateral contract that Lana accepted by applying for the job.
b. a quasi contract on which Lana can rely for employment.
c. a unilateral contract that Lana can accept by passing the exam.
d. no contract.
Esther and Faisal agree that Esther will fix Faisal’s car in exchange for his paying a
preexisting debt owed by Esther to Gladys. Gladys is
a. an assignee.
b. an intended beneficiary.
c. an incidental beneficiary.
d. a delegatee.
Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Mart Stores,
Inc., a retailer. This is
a. “an unfair or deceptive act or practice.”
b. a per se violation.
c. not a violation.
d. subject to analysis under the rule of reason.
If a provision in the California state constitution conflicts with a provision in the U.S.
Constitution
a. neither provision applies.
b. the provisions are balanced to reach a compromise.
c. the state constitution takes precedence.
d. the U.S. Constitution takes precedence.
Jill sells Thomas her 1996 Volvo. Jill has not driven the car for two years and is
unaware that the brake cables have rusted. Thomas does not ask Jill any questions about
the brakes before he buys the car. When Thomas is driving the car home, the brakes
fail. Thomas
a. can rescind the contract on the ground of fraud.
b. can rescind the contract on the ground of misrepresentation.
c. can rescind the contract on the ground of bilateral mistake.
d. cannot rescind the contract.
Jason is the creditor in a transaction with Carol, who is the debtor. Which of the
following requirements is NOT necessary for Jason to have an enforceable security
interest?
a. The collateral must be in Jason’s possession, or there must be a written security
agreement.
b. Jason must give value to Carol.
c. Carol must have rights to the collateral.
d. The collateral must be tangible.
Tyrone draws a check payable to “Cash” and presents it to United Bank for payment.
This instrument is
a. a bearer instrument.
b. an order instrument.
c. valid but nonnegotiable.
d. void.
Martha is the sheriff of Junction, Texas. Alex robs a gas station on the edge of town and
then evades capture. A $500 reward is offered for his capture. The following week,
Martha captures Alex. Martha
a. can collect the $500 reward.
b. cannot collect the $500 reward because she had a preexisting duty to catch Alex.
c. cannot collect the $500 reward because it is not legally sufficient consideration.
d. cannot collect the $500 reward because it would be unconscionable.
Sally’s Sweet Fruits contracts with Fruits to You, Inc. for a delivery of two hundred
pounds of strawberries to be delivered by Keep Kool Trucking, a trucking company
with refrigerated trucks. On the day of delivery, the refrigeration units on Keep Kool’s
trucks are not working. Fruits to You
a. may ship the goods to Sally’s using another trucking company with refrigerated
trucks.
b. must refund Sally’s money and cancel the contract.
c. must wait to ship the strawberries until Keep Kool has fixed its trucks.
d. must ship the goods through a different carrier and pay Sally incidental damages.
Smithy Saddlery is a saddle shop subject to the laws of New York. In New York, the
highest-ranking (superior) law is
a. a case decided by the New York Supreme Court.
b. a rule created by a New York state administrative agency.
c. a provision in the New York constitution.
d. a statute enacted by the New York legislature.
An important law protecting borrowers by requiring lenders to disclose the terms of a
loan in clear, readily understandable language is the
a. Uniform Commercial Code.
b. Truth-in-Lending Act.
c. Statue of Frauds.
d. Borrower Protection Act.
Jackson owns an antiques store. He sells a grand piano to Fred for $5,000, a old
jukebox to Sam for $499, an antebellum chest of drawers to Josephine for $659 and a
gold ring to Wendy for $999. Which of Jackson’s sales must be in writing to be
enforceable?
a. The grand piano only
b. The grand piano and the gold ring only
c. The grand piano, the chest of drawers and the gold ring only
d. The grand piano, the chest of drawers, the jukebox and the gold ring
Li”l 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.
American Manufacturing Company obtains an insurance policy to protect against losses
incurred by the firm as a result of being held liable for personal injuries or property
damage sustained by others. This is
a. casualty insurance.
b. employer’s liability insurance.
c. fidelity or guaranty insurance.
d. life insurance.
Josh is a director of Sippy Soups, Inc. Josh opposes a tender offer that is in Sippy’s best
interest because its acceptance would cost him his position as a director. Josh is liable
for a breach of duty of
a. no duty or rule.
b. the business judgment rule.
c. the duty of care.
d. the duty of loyalty.
WiFi Corporation, a U.S. firm, signs a contract with Bueno Computadores, Ltd., an
Argentinean firm, for a shipment and payment for WiFi’s goods. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
To generate sales, Yakkity-Yak, Inc., uses phone solicitation. Under federal law and
Federal Trade Commission regulations, in soliciting business, Yakkity-Yak’s
telemarketers must
a. disclose that a call is a sales call.
b. identify the seller’s name (only if asked).
c. refrain from calling consumers who have not requested a call.
d. speak clearly and conspicuously.
Tyrone is seventeen years old. Under the Fair Labor Standards Act, he
a. cannot work in a hazardous occupation.
b. cannot work during school hours.
c. must obtain a permit to work.
d. none of the choices.
Fact Pattern 28-2
Beth, who has a disability, is an employee of Corporate Office Company (COC). After
the installation of new doors on COC’s building, Beth finds it nearly impossible to get
in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who
does not have a disability.
Refer to Fact Pattern 28-2. To succeed with a claim against COC under the Americans
with Disabilities Act, Beth will have to show that
a. Beth consistently met the essential requirements of her job.
b. COC refused to make reasonable accommodation for Beth.
c. Dian is unqualified for Beth’s position.
d. the doors were installed as an act of intentional discrimination.
Musicians & Performers Union represents the employees of Piquant Legerdemain, Inc.
During negotiations over conditions of employment, each side rejects the other’s
proposal without offering a counterproposal. This indicates
a. bad faith.
b. good faith.
c. each party’s attempt to obtain concessions on other subjects.
d. reasonable efforts to come to an agreement.
The U.S. Mine Safety Administration conducts searches of certain businesses. This
agency and other administrative agencies can conduct warrantless searches in
a. all industries.
b. highly regulated industries.
c. no industries.
d. newly regulated industries only.
Trend-Rite Clothiers, Inc., sells t-shirts to Brand Name Stores, Inc., under an existing
contract. When textile costs increase, Brand agrees to a price increase, but later wants to
cancel the contract. Brand may
a. cancel the contract immediately.
b. cancel the contract only after accepting a final shipment.
c. cancel the contract only on reasonable notice.
d. not cancel the contract.
Elin rents an apartment from Fresh Properties, Inc. A clause in the lease provides that
Fresh is not responsible for interruptions in the apartment building’s heating. A court
would likely hold this clause to be
a. acceptable and enforceable.
b. acceptable but not enforceable.
c. ambiguous.
d. unconscionable.
Jacob writes Phillip an uncertified check for $500 on January 1. Seven months later,
Phillip presents the check at the bank. The bank pays the check in good faith without
consulting Jacob. The bank
a. does not have the right to charge Jacob’s account for $500.
b. only has the right to charge Jacob’s account for $250.
c. has the right to charge Jacob’s account for $500.
d. can be held liable for breach of contract.
Niki conveys some of her land to Reggie with the right to possess and use the property
for a certain period of time. Niki has given Reggie
a. a constructive eviction.
b. a leasehold estate.
c. an implied warranty of habitability.
d. an assignment.
All employers in the United States are subject to federal employment discrimination
laws.
If a note is payable in ten days, counting begins on the day the instrument is dated.
A person who in good faith acquires a negotiable instrument from a thief can become an
HDC.
In direct exporting, a U.S. company signs a sales contract with a foreign purchaser that
provides for the conditions of shipment and payment of goods.
The act of state doctrine provides that the executive branch of one country will not
examine the validity of public acts committed by a recognized foreign government
within its own territory.
Debtors have very few rights.
A seller with voidable title can transfer good title to a good faith purchaser for value.
A profit is a right to make a profit from some part of land or some product of the land,
and the right terminates once that profit is made.
An acceleration clause allows the lender to call the entire loan due if one payment is
late or missed.
Identification, risk of loss, and insurable interest are all concepts that are involved in
determining the rights and liabilities of parties to a contract.
Implied ratification occurs when an individual, on reaching the age of majority, states
orally or in writing that she or he intends to be bound by the contract.
Federal law dictates the requirements for the formation of a limited liability company.
Disparate-impact discrimination occurs when a protected group of people is adversely
affected by an employer’s practices, procedures, or tests, even though they do not
appear to be discriminatory.
Administrative law is a source of American law that is comprised of statutes.
Under the exclusionary rule, illegally obtained evidence may not be included in any
criminal prosecution.
The Sherman Act, the Clayton Act and the Federal Trade Commission Act are all
examples of legislation designed to curb anticompetitive business practices.
International law is a body of law that governs relations between and among citizens,
not countries.
Once a writ of execution has been issued, the debtor cannot pay the judgment and
redeem the property, even if the sale has not taken place.
A suspect cannot be tried twice in the same court for the same crime.
The Foreign Sovereign Immunities Act spells out what a “foreign state” includes.