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Kendall executes a separate written instrument to amend her prior will. This separate
document is
a. a bequest.
b. a codicil.
c. a devise.
d. a holographic will.
Kayla puts an item in an auction with reserve. Kayla is the
a. offeror.
b. offeree.
c. promisor.
d. auctioneer.
Metallic Metals, Inc., a U.S. firm, files a suit against a Venezuela government agency.
The agency has committed a tort in the United States. Under the Foreign Sovereign
Immunities Act
a. the Venezuelan government agency is not immune from the jurisdiction of the U.S.
courts.
b. the Venezuelan government agency is immune from the jurisdiction of the U.S.
courts.
c. Metallic Metals cannot bring a suit against the Venezuelan agency.
d. Metallic Metals must file suit in Venezuela.
Kelly signs an instrument in favor of Leo that states it is 'subject to a certain agreement
between Kelly and Mona." This instrument is
a. negotiable.
b. nonnegotiable, because it is made subject to a separate agreement.
c. nonnegotiable, because it refers to a separate agreement.
d. nonnegotiable, because Kelly and Mona are not the same persons.
Corner Market sells groceries. Delta Food & Drug Store sells groceries and fills
prescriptions. The party with the chief responsibility to prevent unsafe food and drugs
from being sold is
a. Corner Market and Delta Food & Drug Store.
b. Delta Food & Drug Store only.
c. the Federal Trade Commission.
d. the Food and Drug Administration.
Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf.
Edwina later contacts Frida to approve the contract. This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
Jo files a suit against Lara in a Missouri state court. Lara's only connection to Missouri
is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the
issue is whether Lara, through her ad, has
a. a commercial cyber presence in Missouri.
b. conducted substantial business with Missouri residents.
c. general maximum contact with Missouri.
d. solicited virtual business in Missouri.
Cara enters into an oral contract with Sam in which she agrees to give him her vacation
home in France if he will marry her. The contract is enforceable by
a. Cara only.
b. Sam only.
c. either party.
d. neither party.
Lexy and Mort act as the incorporators for NuGame Corporation. After the first board
of directors is chosen, subsequent directors are elected by a vote of NuGame's
a. board of directors.
b. employees.
c. officers.
d. shareholders.
Lucy, a minor, disaffirms a contract for necessaries without returning the goods. To
Manny's Food Mart, the seller, Lucy is required to pay
a. nothing.
b. the reasonable value of the goods.
c. the sales price of the goods.
d. the ultimate worth of the goods.
Joan borrows money from Jake under a security agreement. After borrowing the money,
Joan purchases a new sports car. The sports car is considered
a. collateral.
b. after-acquired property.
c. a future advance.
d. proceeds.
A suit is filed against Dormroom Furniture Unlimited, Inc., alleging that the firm has
committed the offense of monopolization. To determine the extent of Dormroom
Furniture's market power, the court will use the
a. market-share test.
b. geographic-share test.
c. rule of reason.
d. monopoly test.
Barry buys a bulldozer from Big Sandbox Equipment Company. Barry is unaware that
there is a lien against the bulldozer when he buys it. Under the UCC, if the creditor
reposes the bulldozer, Barry
a. can recover from Big Sandbox Equipment for breach of warranty.
b. can do nothing.
c. can file criminal charges against Big Sandbox Equipment.
d. can recover damages from the creditor.
Dave's Hobby Town and Estelle's Yarn Shoppe are adjacent stores with adjoining
parking lots. Dave offers Estelle a discount on purchases from Dave's store if Estelle
will not tow the cars of Dave's customers who park in Estelle's lot.
Refer to Fact Pattern 10-1. Dave's discount is legally sufficient consideration
a. because it is a promise of something of value.
b. only if Dave adds a cash rebate.
c. only if Estelle uses it.
d. under no 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 fee simple absolute.
b. a license.
c. an easement.
d. a profit.
Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen
agrees to buy "Garth's ATV" for $750. Garth believes, in good faith, that he is selling
the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this
situation
a. Garth is entitled to $750 for the $500 ATV.
b. Helen is entitled to the $1,000 ATV for $750.
c. Helen must buy both ATVs for $1,500.
d. there is no contract.
Rodeo Ranch's agent Slim is authorized to draw checks on Rodeo Ranch's account in
Town Bank. Upper Range Corporation is a Rodeo Ranch supplier. Slim writes a check
"pay to the order of Upper Range [signed] Slim," indorses the check in Upper Range's
name, and deposits it in his account in Verity Bank. If Verity Bank collects payment, the
ultimate party most likely to suffer the loss is
a. no one.
b. Rodeo Ranch.
c. Town Bank.
d. Upper Range.
Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide
Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches
the contract, Fashion has a duty to
a. reduce the damages that Fashion might otherwise suffer.
b. reduce the loss that Great Promotions might otherwise suffer.
c. punish Great Promotions and deter others from similar acts.
d. take no action.
Evan's sale of rights he has under a contract with Federated Retail, Inc., to buy the
retailer's clothing overstock is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. not a delegation, an assignment, or a third party beneficiary contract.
Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay
Kyle's debt if he does not. Ilsa does not get any personal benefit for the agreement. This
contract is enforceable by
a. any party.
b. Jiffy only.
c. Jiffy or Kyle.
d. none of the parties.
Thirty-one days before filing a petition in bankruptcy, Dee transfers property and makes
payments that favor one creditor over another. These are
a. affirmation agreements.
b. preferences.
c. secured interests.
d. unsecured debts.
Samson buys a set of CDs by Alan Jackson. He then uses his computer to make copies
of the CDs and sells them to his friends. Samson is
a. not guilty of any crime.
b. guilty of bootlegging.
c. guilty of real property theft.
d. guilty of a violation of common law.
Susan is unhappy with the way her mother has made out her will. Susan gets a lawyer
to draft a new will and then signs her mother's name on it without her mother's
knowledge or consent. Susan has committed the crime of
a. larceny.
b. burglary.
c. robbery.
d. forgery.
To obtain a contract with the Chinese government, Digby Engineering Corporation, a
U.S. firm, gives a Chinese official a sport utility vehicle. This may violate
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the Foreign Corrupt Practices Act.
d. the principle of comity.
The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice
Cream Co. v. Percy is heard in an appellate court. The difference between a trial and an
appellate court is whether
a. a trial is being held.
b. the court is appealing.
c. the parties question how the law applies to their dispute.
d. the subject matter of the case involves complex facts.
Best Products Corporation obtains an insurance policy that provides indemnity against
losses in trade or losses caused by the dishonesty of employees, the insolvency of
debtors, or breaches of contract. This is
a. casualty insurance.
b. fidelity or guaranty insurance.
c. liability insurance.
d. key-person insurance.
Cray, a minor, returns a digital music player that he bought from Discount City, which
refunds the price. Their exchange involves
a. emancipation.
b. ratification.
c. restitution.
d. misrepresentation.
Rebecca has a fixed-rate mortgage that has a fixed interest rate for three years and then
adjusts annually. Rebecca's mortgage is a
a. 5/1 ARM.
b. 3/1 ARM.
c. 1/3 ARM.
d. 3 ARM.
On Monday, Michelle deposits in her account at Fiscal Bank a local check for $500.
After 5:00 p.m. on Friday, from these funds, Michelle can withdraw no more than
a. $100.
b. $400.
c. $500.
d. $600.
Diamond Financial Planners employs Ewa, who is the firm's most productive
performer. Ewa, dissatisfied with the commission structure, quits to work for Feldstar
Investments, Inc. She takes her list of Diamond clients to induce them to switch to
Feldstar. Trade secrets law covers
a. Diamond's list of clients.
b. Ewa's performance.
c. Feldstar's commission structure.
d. none of the choices.
Real World Sports Corporation (RWSC) is a U.S. firm with a workplace in Switzerland.
Generally, RWSC must abide by U.S. anti-discrimination laws in Switzerland
a. under any circumstances.
b. under no circumstances.
c. unless to do so would contravene the cultural norms of Switzerland.
d. unless to do so would violate the law of Switzerland.
Henry promises not to open his restaurant before 10:00 A.M. if Suzy, who owns a
bakery next door to him, promises to close her bakery by 4:00 P.M. Henry's
consideration is
a. the destruction of a legal relationship.
b. the creation of a legal relationship.
c. a forbearance.
d. an exchange of money.
Brock is a shareholder of Competent Homebuilders Corporation (CHC). For the last
few years, business has not been profitable for CHC. The firm has lost money on its
operations. There has been some profit through sales of company assets, but the board
of directors has refused to declare a dividend. This last year, the firm's accountants
failed to file federal income tax returns and the board refused to pay the tax. Brock
takes a close look at the firm and protests to the board, in particular over the failure to
declare a dividend, but the board ignores the complaint. Which of these events, if any,
would form a ground for a court to order the dissolution of CHC, on Brock's petition? If
the court denies the petition, could Brock and the other shareholders dissolve CHC?
To avoid liability for negligence, a business owner must protect its patrons against all
risks.
There are no exceptions to the rule that any duty can be delegated.
When a lessee sells leased equipment to a third party, the lessor cannot, under any
circumstances, recover the equipment from the buyer.
Susan is the president of United Food Corporation, a wholesale grocery company. An
inspection by Tim, a government agent, uncovers unsanitary conditions caused by Val, a
United employee, in the United warehouse. Will, a United vice president, assures Tim
that the situation will be corrected, but nothing is done, which a later inspection reveals.
Susan knows nothing about any of this. Can United be convicted of a crime in these
circumstances? Can Susan be held personally liable?
A court cannot dissolve a corporation for mismanagement.
An agency relationship can only be formed with a written agreement.
Children fourteen years of age and older can work during school hours.
A contract for a portrait is an example of a personal contract.
Personal property may become real property by attaching it to real property.
An agreement that is deemed a per se violation will be examined by a court to
determine whether the agreement's benefits outweigh its anticompetitive effects.
The possession of land without right is a tenancy at will.
Promissory estoppel requires that justice will be better served by the enforcement of the
promise.
A car is tangible personal property.
For a party to take by adverse possession, the party's possession must not be hostile to
the true owner's rights.
An offeror's subjective intent determines the effectiveness of an offer.
