Via the Internet, Rocky sabotages the computer system of Quik ChiknCompany, a food
manufacturer, to alter the levels of ingredients in thecompanys products so that
consumers of the food become ill. Rocky is a
a. cyberterrorist.
b. botnet.
c. virus.
d. worm.
Beau sells a car to Cody without disclosing that the odometer, which reads 40,000
miles, was disconnected 80,000 miles ago. Beau is liable for
a. duress.
b. fraud.
c. mistake.
d. undue influence.
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.
Mead, Nero, and Olen do business as Pipe & Plumbing Services. After Meads
relationship to the firm ends, Nero and Olen agree to discontinue the business. This is
a. dissociation.
b. dissolution.
c. gross negligence.
d. simple misconduct.
Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The
exterior boundaries of the land extend
a. 100 feet into the earth and 100 feet into the atmosphere.
b. one mile into the earth and one mile into the atmosphere.
c. to infinity and beyond.
d. to the center of the earth and up to the farthest reaches of the atmosphere
Eliza is a state court judge. Flora appears in a case in Elizas court, claim-ing that Glover
breached a contract. Which of the following actions may Eliza take?
a. Award damages or issue a decree of specific performance
b. Imprison Glover, but not Flora
c. Imprison Flora, but not Glover
d. Order the parties to pay Eliza to render a favorable ruling
Mary works in the public relations department of New Trends Sales Company. Her job
includes portraying New Trendss activities in their best light. In this context, ethics
consist of
a. a different set of principles from those that apply to other activities.
b. the same moral principles that apply to non-business activities.
c. those principles that produce the most favorable financial outcome.
d. whatever saves New Trendss “face.
Regional Steel, Inc., and Overland Transport Company enter into a con-tract. Smooth
Oil Corporation, which will indirectly benefit from the deal, is prevented from having
rights under the contract by the principle of
a. assignment.
b. delegation.
c. privity.
d. vesting.
Corporate Properties, Inc., attempts to acquire a substantial number of the shares of
Downtown Investment Corporation through a public offer to Downtowns shareholders.
This is
a. a consolidation.
b. a tender offer.
c. ashort-form merger.
d. a termination.
Bella Homes enters into a contract to buy 132 acres from Watershed Holdings to
subdivide and sell in fifth-acre lots for Pristine Meadow, a residential development.
Refer to Fact Pattern 13-1. If Bella breaches the contract, Watersheds remedy would
most likely be a. a certain ratio of the amount that Bella has in liquidated funds.
b. a percentage of Bellas unrealized profit.
c. the difference between the lands contract and market prices.
d. specific performance.
Riley invents a new valve to cap undersea oil spills. He names the valve “Great Catch.
He also writes the installation manual to be included with each valve. Riley can obtain
copyright protection for
a. the valve.
b. the “newness of the valve.
c. the name.
d. the installation manual.
Only personal contracts can be discharged by agreement of the parties.
a. True
b. False
Generally, a tenant must pay agreed-to rent even if the tenant moves out
a. True
b. False
A gift causa mor-tis is effective only if the donor dies and the donee lives.
a. True
b. False
Betty is selling her used clothing shop on Main Street. In the sale agreement, there is a
covenant not to compete that prohibits Betty from opening another used clothing shop
within 300 miles of the shop she is selling. A court will most likely conclude that this
restriction on competition is
a. reasonable.
b. unreasonable and order Bettys successor to stop doing business.
c. unreasonable and may reform the covenant .
d. unreasonable and prohibit both parties from opening used clothing shops.
Dwayne can be described as “a reasonably competent general practitioner of ordinary
skill, experience, and capacity. This is the normal standard for judging the performance
of
a. a client.
b. an accountant.
c. an attorney.
d. a tax preparer.
As long as a contract is personal in nature, all rights under the contract can be assigned.
a. True
b. False
The privacy rights of private-sector employees are governed by state law, which
varieswidely.
a. True
b. False
Picabo drives a truck as an employee for Quik Delivery, Inc.Picabo would most likely
be considered acting outside the scope of her employment if she
a. crashed into a car at the airport while off duty.
b. hit a pedestrian in a parking lot during a “working lunch.
c. ran over an attendant at Quiks gas station while refueling the truck.
d. smashed into a store-front while intoxicated on-duty.
A remedy is the relief provided to an innocent contracting party when the other party
breaches the contract.
a. True
b. False
Past consideration can be legally sufficient consideration.
a. True
b. False
Treadwell Tire Manufacturing Company employs Uri as an agent. To terminate Uris
authority, Treadwell must notify
a. only third parties who are aware of the agency relationship
b. the public generally.
c. Uri and any third parties who are aware of the agency relationship.
d. Uri only.
Bud approves on behalf of Codybut without authorizationa contract with Dik to build a
new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This
attempt will be
a. partly successful.
b. partly unsuccessful.
c. totally successful.
d. totally unsuccessful.
An “X can qualify as a signature on a will.
a. True
b. False
Good Food Corporation buys from Home Farms, Inc., a rice crop that Home Farms
plans to plant and harvest during the next growing season. Good Food plans to sell the
rice to Interstate Grocery Stores. After the rice is planted, but before it is harvested, an
insurable interest in the rice ex-ists in
a. Good Food and Home Farms, but not Interstate Grocery.
b. Good Food, Home Farms, and Interstate Grocery.
c. Good Food only.
d. Home Farms only.
Even after a tenant sublets leased premises, the tenant may be obligated to pay rent.
a. True
b. False
Before filing a registration statement, an issuer must offer to sell securities.
a. True
b. False
Mace copies Nicks book, MumbaiMonsoon, in its entirety and sells it to Parkland
Books, Inc., without Nicks permission. Parkland publishes it under Maces name. This is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.
Venture Capital, LP, is a limited partnership. Its limited partners include more than 150
sophisticated investors and investment professionals. A Venture limited partner loses his
or her limited liability if he or she
a. acts as the firms manager.
b. does not participate in the firms management.
c. invests in Unified Fund, one of Ventures competitors.
d. votes on the firms sale or dissolution.
A trademark can be diluted by the use of asimilar mark.
a. True
b. False
The U.S. Postal Service is a public corporation.
a. True
b. False
Cybersquatting occurs when key words are inserted into the hyper text markup
language code to tell Internet browsers specific information about a Web page.
a. True
b. False
Venerable Company leases office furniture to Design Architects, Inc., under a contract
that states, “Bailee agrees to pay Bailor for any damage to the furniture. During the
lease, while the furniture is in Designs possession, it is stained by inks used in computer
printers, copiers, fax machines, and so on. Most likely liable for the damage is
a. Venerable.
b. Design.
c. “Bailor.
d. no one.
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.
Jaycee is a shareholder for Designer Pet Clothes, Inc. Designer Pet Clothes uses
cumulative voting to elect directors. This means that the number of Jaycees votes is
determined by
a. how long Jaycee has been a shareholder.
b. the number of members of the board to be elected multiplied by the total number of
voting shares Jaycee holds.
c. the number of shareholders present at the most recent shareholders meeting.
d. the number of shareholders meetings Jaycee has attended in the past year.