A contract must be in writing to be enforceable if the contract makes per-formance
possible within any definite period of time.
a. True
b. False
The injury suffered by a nonbreaching party due to the breach of a con-tract may be
remedied by payment of compensatory damages.
a. True
b. False
Nimble Numbers Accounting Corporation, a private employer, handles bookkeeping for
small employers. In most circumstances, with exceptions, federal law clearly pro-hibits
Nimble from subjecting its employees to
a. job-skills tests.
b. monitoring of business communications.
c. drug tests.
d. lie-detector tests.
Jean is playing a video game on a defective disk that melts in her game player, starting
a fire that injures her hands. Jean files a suit against K-Tech, Inc., the games
manufacturer. K-Tech is held liable under the doctrine of strict liability. A significant
appli-cation of this doctrine is in the area of
a. cyber torts.
b. intentional torts.
c. product liability.
d. unintentional torts.
A director usually serves on a corporations board for a life term.
a. True
b. False
Mark fails to reveal a material fact in a business deal with Nancy. This constitutes fraud
a. if Mark is unaware of the fact and the failure.
b. if the amount of consideration received is grossly inadequate.
c. if the fact concerns a serious defect known to Mark and unlikely to be known by
Nancy.
d. under any circumstances.
Efron transfers an instrument to First Citizens Bank. This is not a negotiation unless
a. the parties bargained over the amount paid for the instrument.
b. the transfer is an assignment.
c. the instrument is a negotiable instrument.
d. the transfer includes rights under a contract.
Trade names have the same legal protection as trademarks.
a. True
b. False
Standard Purchasing Corporation and Total Sales, Inc., enter into a part-nering
agreement. Under a partnering agreement, parties agree
a. in advance to terms that apply to their future e-transactions.
b. to become partners.
c. to conduct transactions solely in electronic form.
d. to resolve all disputes without involving a third party.
Trudy forges Umas signature on a check “payable to the order of Trudy drawn on Umas
account in Verity Bank. Most likely, if the bank pays the check
a. the Federal Reserve will reimburse all parties for their costs.
b. he loss will be apportioned among all of Veritys customers.
c. Uma will be liable for the amount.
d. Verity will have to recredit Umas account.
Some student loans are dischargeable in a Chapter 7 bankruptcy.
a. True
b. False
Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy
Company. Food can obtain only 20,000 of the 6-ounce contain-ers, but also ships
30,000 more expensive 8-ounce containers for the same price. Under these
circumstances, Golden
a. cannot reject delivery, and Food cannot later replace the containers.
b. cannot reject delivery, but Food can later replace the containers.
c. may reject delivery, and notice to Golden of Foods intent to cure will give Food a
reasonable time to replace the containers.
d. may reject delivery, but Food cannot later replace the containers.
Transnational Corporation and United Shipping, Inc., agree to a contract that includes
an arbitration clause. If a dispute arises, a court having ju-ris-dic-tion may
a. monitor any arbitration until it concludes.
b. order an arbitrator to rule in a particular way.
c. order a party to bring the dispute to court.
d. order a party to submit to arbitration.
A spendthrift trust provides for a beneficiarys transfer of his or her right to future
payments of trust funds.
a. True
b. False
Management may never legally limit unionizing activities.
a. True
b. False
Smitty, driving while intoxicated, causes a car accident that results in the death of
Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by
death or imprisonment for
a. any period of time.
b. more than one year.
c. more than six months.
d. more than ten days.
All persons who are arrested have the constitutional right to remain silent.
a. True
b. False
A warranty against infringement is a promise by the seller that the prod-uct is free from
any patent, trademark, or copyright claims of a third person.
a. True
b. False
A creditors composition agreement may be entirely enforceable.
a. True
b. False
Pine Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of
plywood. Under a destination contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before tendering their delivery.
d. place the goods into the hands of a carrier.
Fred and Joanne are married. Joanne purchases a car. Fred and Joanne each technically
own an undivided one-half interest in the car. This is
a. a joint tenancy.
b. fee simple ownership.
c. community property.
d. illegal.
Krissa, a horse breeder, shows Maggie, a customer looking for a new stallion for her
breeding program, a stallion and tells her that the stallion is very fertile and can easily
breed twenty mares per year. Krissas statement is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
Most online dispute resolution services apply general, universal legal principles to
resolve disputes.
a. True
b. False
Counterfeiting is robbery.
a. True
b. False
Duty-based ethical standards often come from religious precepts or through
philosophical reasoning.
a. True
b. False
Buying or selling securities on the basis of nonpublic information is illegal only if the
profit from the transaction is unreasonable.
a. True
b. False
Bubbly Cola features Sparkly Colas trademark without its owners permission. Bubblys
use of the mark is actionable provided
a. consumers are confused.
b. Bubblys use is intentional.
c. Bubblys use reduces the value of Sparklys mark.
d. Sparklys mark is registered.
Luc writes a check for $1,000 drawn on Ridgetop Bank and presents it to Bianca.
Bianca presents the check for payment to Ridgetop Bank, which dis-hon-ors it for
insufficient funds. The party most likely liable to Bianca is
a. Luc in a civil suit.
b. Luc in a criminal prosecution.
c. Ridgetop Bank in an administrative proceeding.
d. neither Luc nor Ridgetop Bank.
A limited liability company is operated in compliance with state law.
a. True
b. False
An executed contract is one that has been fully performed by both parties.
a. True
b. False