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Cold Calls Corporation a telemarketing firm, files a suit to block the enforcement of the
Federal Trade Commissions (FTC) amendment to the Telemarketing Sales Rule
establishing a national Do Not Call Registry, on the ground that it violates the First
Amendment to the U.S. Constitution. The court is most likely to hold that
a. the Do Not Call Registry is constitutional.
b. the FTC exceeded its authority.
c. the Telemarketing Sales Rule should be suspended pending review.
d. this claim is illegal.
Clu serves in a representative capacity for Digger. Elmo is injured through Clus
negligence. Digger may be liable to Elmo if Clus conduct occurred
a. due to a propensity Digger was not and could not have been aware of.
b. during normal working hours.
c. in the course and scope of Clus employment.
d. outside the parties employment relationship.
Genie.com initiates an online dating service. To attract subscribers and encourage
participation, Genie.com creates and posts profiles of fictitious persons and exaggerated
profiles of actual users. Fooled by the false profiles, Ham buys a subscription. He is
most likely a victim of
a. undue influence.
b. fraud.
c. mistake.
d. nothing.
China Bank is a foreign entitya firm owned and operated by investors in a foreign
country. With respect to a limited liability company in the United States, China Bank
can
a. act as a creditor, but cannot otherwise invest or participate.
b. become a member.
c. not become a member, but can participate in its operations.
d. not become a member or otherwise participate in its operations.
The payment of Yvess debt to Zane is guaranteed by Yvess personal property. Their
agreement describes Yvess subject property by serial number. To establish Zanes
interest, this is
a. irrelevant.
b. not sufficient.
c. sufficient if it accurately describes the parties agreement.
d. sufficient unless it is too tedious to review.
Uri and Vicky orally agree on the sale of Uris Nite Club to Vicky and note terms on a
pair of the Clubs napkins, which they both sign. A written memorandum evidencing an
oral contract that would otherwise be unenforceable must contain
a. every term.
b. the essential terms.
c. the preliminary terms.
d. the qualitative terms.
Bargain Bytes Computers, a computer store, takes unethical steps to divert the
customers of Cyber World, an adjacent competing store. Bargain Bytes may be liable
for
a. appropriation.
b. wrongful interference with a business relationship.
c. intentional infliction of ethical distress.
d. conversion.
eBank, an online financial institution, gives financial information about Frieda and
other customers to a federal agency. eBank may be in violation of federal law
a. if the agency did not have a warrant.
b. if the institution is not deemed to be a bank.
c. if the institution did not issue its customers credit or debit cards.
d. under none of these circumstances.
Leticia contracts with Mariana to sell land that, unknown to either party, has
groundwater contaminated from adjacent land that was occupied several decades earlier
by a chemical manufacturing plant. When this is discovered, Leticia asserts the doctrine
of commercial impracticability. This doctrine applies only when, with respect to an
event that renders performance impossible, at the time the contract was formed the
parties
a. could not have reasonably foreseen the supervening event.
b. could have reasonably foreseen the supervening event.
c. should have foreseen the supervening event, reasonable or not.
d. should not have foreseen any supervening events.
Quixotic Company claims to be a corporation but it is not. Rachel signs a contract with
Quixotic that is not performed. In Rachels suit against Quixotic, a court will likely
recognize the firm as
a. a corporation by estoppel.
b. a de facto corporation.
c. a de jure corporation.
d. an ultra vires corporation.
Capital Credit Company files a suit against Downtown Developers, Inc., and seeks, as
part of discovery, certain electronic documents in Downtowns possession. Downtown
did not preserve the requested datae-mail messages among employees. The court is not
likely to sanction Downtown if
a. the data was not saved because there was no reasonable anticipation of litigation.
b. Downtown can provide the e-mail but without attachments.
c. Downtown inadvertently failed to suspend its e-mail deletion system.
d. Downtown can provide e-mail the employees sent but not e-mail they received.
Standard Business Company appeals a decision against it, in favor of Fast Delivery
Corporation, from a lower court to a higher court. Standard is
a. the appellant.
b. the appellee.
c. the defendant.
d. the plaintiff.
Bild-It-Rite Corporation is a public company that is poised to issue securities that do
not qualify for an exemption from registration. This means that Bild-It-Rite must
a. file a registration statement with the SEC.
b. issue the securities through an online registration site.
c. refrain from issuing the securities to unregistered investors.
d. register the securities with a national stock exchange.
In Sales Distribution Corp. v. Consumer Products Co., the court decides that a
precedent is incorrect or inapplicable. The court
a. may rule contrary to the precedent.
b. must apply the precedent.
c. must ask a higher court to rule on the case.
d. must refuse to decide the case.
Lightspeed Corporation makes computers, each of which is packaged with a
shrink-wrap agreement. Milo buys a Lightspeed desktop. The terms of the shrink-wrap
agreement are most likely enforceable if
a. Milo buys the computer directly from Lightspeed.
b. Milo uses the computer after reading the terms.
c. Milo pays for the computer before reading the terms.
d. the terms concern warranties.
Without a permit from the U.S. Army Corps of Engineers, Holiday Timeshares, Inc.,
fills a wetlands area that it owns before constructing a residential resort. Under the
Clean Water Act, this is most likely
a. a violation.
b. not a violation because a permit is not needed to fill wetlands.
c. not a violation because the area was filled before construction.
d. not a violation because there was no discharge of pollution.
Bud approves on behalf of Codybut without authorizationa contract with Devon to
build a new silo. Cody does not ratify the contract. Later, Devon tries to enforce the
deal. This attempt will be
a. partly successful.
b. partly unsuccessful.
c. totally successful.
d. totally unsuccessful.
Delta Stores, Inc., files a suit in a state court against Eagle Computer Corporation,
alleging that Eagle breached a contract to sell 500 notebook computers to Delta. During
the course of the suit, Delta files a motion for judgment on the pleadings, Eagle files a
motion for a directed verdict, and both parties file motions for summary judgment.
When and for what purpose are each of these motions made?
Mineral Products Corporation, which owns no land, has a right to mine the copper from
Natural Resource Companys land. Minerals right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Darla is a shareholder of Candy Confection Corporation. The right to inspect corporate
books and records is
a. held by Darla only if she is a director.
b. held by Darla, without restrictions.
c. held by Darla, with some restrictions.
d. not held by Darla.
Travis sends Ursula a link to a purported e-birthday card that when clicked on
downloads software to her computer to record her keystrokes and send the data to
Travis. He uses the data to obtain her personal information and access her financial
resources. This is
a. identity theft.
b. no crime.
c. regifting.
d. Windows shopping.
U-Can-Own-It Corporation sells appliances to less educated consumers, including Viv,
on installment plans. U-Can-Own-It files a suit against Viv when she stops making
payments. Viv claims that the deal is unconscionable. The court will most likely
consider
a. the geographic area of the relevant market.
b. the parties relative bargaining power.
c. the quality of related products in the general market.
d. the relation of this deal to those of other customers.
In Eastside Grocery Companys suit against Fresh Foods, Inc., Fresh seeks to discover
electronically stored information (ESI) that should be in Eastsides possession. If
Eastside did not preserve the ESI despite a clear duty to do so, the company should
most likely
a. ask the court to sanction Fresh for an unreasonable request.
b. reconstruct the ESI to the best of its ability.
c. refuse to provide the ESI on the ground that it is confidential.
d. settle the dispute.
Quin files a suit against Regal Products, Inc. Regal responds that even if Quins
statement of the facts is true, according to the law Regal is not liable. This is
a. a counterclaim.
b. a motion for judgment on the pleadings.
c. a motion for summary judgment.
d. a motion to dismiss.
Penn files a suit against Roadway Sign Company While the suit is pending, Roadway
consolidates with Synchronized Signal Corporation to form Traffic Management, Inc.
Now, liability in the suit, if any, rests with
a. Traffic.
b. Roadway and Synchronized.
c. Penn.
d. no one.
Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which
the court renders a verdict. The case is appealed to an appellate court.
After the states highest courts review of Kelly v. Lewis, a party can appeal the decision
to the United States Supreme Court if
a. a federal question is involved.
b. a question of state law remains unresolved.
c. the party is unsatisfied with the result.
d. the state trial and appellate court rulings are different.
Donald applies for a life insurance policy with Equity Insurance Company through
Fletch, an agent who works for Equity. Donald pays the initial premium. Fletch writes a
binder, which
a. acknowledges the application and promises to consider it.
b. attests to the truth of each statement in the application
c. evidences receipt of the payment of the initial premium.
d. indicates that a policy is pending and states its essential terms.
Reb wants to start a new business enterprise. Shari is an accountant. Reb most likely
needs to consult Shari because
a. an accountant can be less expensive than an attorney.
b. bookkeeping errors can provoke litigation.
c. ignorance of the law is a defense against liability.
d. keeping up with laws that govern business conduct is difficult.
Cecilias Day Spa, LLC, is a member-managed limited liability company. If the law in
Cecilias state is like the law in most states, unless the members have agreed otherwise,
voting rights are apportioned according to
a. capital contributions.
b. participation in management.
c. the number of members.
d. transactions with the firm.
Lorissa files a petition for bankruptcy. Lorissas creditors must file with the court their
proof of claims against Lorissas assets within
a. fifteen days of the order for relief.
b. thirty days of the filing of the petition.
c. sixty days of the automatic stay.
d. ninety days of the creditors meeting.
Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug.
Imported Carpets, a merchant who deals in goods of the kind sold, generally describes
the goods, details technical specifications, and shows a sample. Under the UCC, if these
are inconsistent
a. the general description displaces the sample.
b. the general description displaces the technical specifications.
c. the sample takes precedence over the general description.
d. the sample takes precedence over the technical specifications.
Cartier, an accountant, convinces his client Bianca to sign a contract to invest her
savings in a nonexistent social-networking Web site. When Bianca learns the truth, she
can
a. impose her own scam on Cartier without liability.
b. induce Cartier to give her his other clients funds without recourse.
c. rescind the contract to invest in the Web site.
d. sabotage Cartiers career in any way possible.
Energy Corporation regularly expresses opinions on political issues. Under the First
Amendment, corporate political speech is given
a. little protection.
b. no protection.
c. significant protection.
d. total protection.
A business owner has a duty to use reasonable care to protect its customers against
foreseeable risks about which the owner should have known.
A person can reproduce copyrighted material for purposes such as teaching, including
multiple copies for classroom use, without paying royalties.
To reform a contract is to rescind it.
If an agent contracts outside the scope of his or her authority, the principal cannot
become liable.
Neal, a twelve-year-old, buys a pair of skis from Outdoor Outfitters (OO), telling the
salesperson that he has never been skiing but "really wants to do it. The salesperson
urges Neal to take a lesson in the sport before attempting a run, but Neal ignores the
advice. On the first run, Neal loses control, hits a tree, and is injured. Neal files a suit
against OO, alleging that it was negligent to have sold the skis to him, when he was
clearly too young and inexperienced. How might OO defend itself?
An agents actions must be strictly for the benefit of the principal.
A seller has an insurable interest in goods as long as he or she retains title to the goods.
Under the rule of reason, a court will consider the effect or the potential effect of a
business agreement on competition.
An agent has the implied authority to do what is reasonably necessary to carry out
express authority.
The UCC imposes a good faith limitation on requirements contracts.
A holder does not take an instrument for value if he or she gives a negotiable instrument
as payment.
Bob is shopping in Carls Hardware Store when a nail gun in use by Dan, one of Carls
employees, fires without warning and hits Bob in the leg. Carl checks the gun and
discovers that it was assembled improperly. Bob files a suit against Eagle Tools, Inc.,
the manufacturer of the gun, for product liability, on the ground of strict liability. What
are the elements for an action based on strict liability? In whose favor is the court likely
to rule?
A financing statement is effective for no more than six months from the date of filing.
The First Amendment does not protect commercial speech as extensively as
noncommercial speech.
Making out a prima facie case of discrimination means that a plaintiff has met his or her
initial burden of proof.
The duration of a franchise is a matter to be determined between the parties.
Committees of the board of directors increase the efficiency of the board.
All adsboth online and offlinemust be truthful.
