Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that warrants
only that Opal held good title during her ownership of the property. This deed is
a. a grant deed.
b. a quitclaim deed.
c. a special warranty deed.
d. a warranty deed.
Canada and the United States are signatories of the Berne Convention. Doug, a citizen
of Canada, publishes a book first in Canada and then in the United States. Dougs
copyright must be recognized by
a. all of the signatories of the Berne Convention.
b. Canada and the United States only.
c. Canada only.
d. none of the signatories of the Berne Convention.
According to the majority in Casserlie v. Shell Oil Co., a commercially reasonable and
nondiscriminatory price is
a. evidence of a sellers good faith.
b. parol evidence.
c. unconscionable.
d. a requirement for an inquiry into the sellers motives.
Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal
banking information through a link in the e-mail. She clicks on the link and types in the
data, which Oswald promptly sells to Moe. This is
a. no crime.
b. employment fraud.
c. phishing.
d. vishing.
Primo Pools Company and Aquatic Recreation, Inc., enter into a contract for a sale of
prefabricated swimming pools. Under either a shipment contract or 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. place the goods into the hands of a carrier.
d. provide the buyer with any necessary documents of title.
To pay for a new desk bought at Office Outlet, Pete makes a check payable to “Offs
Outlet. A proper indorsement of the check is
a. “Office Outlet only.
b. “Offs Outlet only.
c. “Office Outlet or “Offs Outlet.
d. “Pete only.
Paula develops a new espresso machine, which she names “Quik Shot. She also writes
the operating manual. Paula can obtain trademark protection for
a. the espresso machine.
b. the “newness of the espresso machine.
c. the name.
d. the operating manual.
Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year
employment contract for a $4,000 monthly salary to start at the beginning of the next
month. The Statute of Frauds covers
a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.
Garden Tool Company makes hedge trimmers. Troy is injured while using a Garden
Tool trimmer and sues the company for product liability based on negligence. To win,
Troy must show that
a. Garden Tool did not use due care with respect to the trimmer.
b. Garden Tool misrepresented a material fact regarding the trimmer.
c. Troy was experienced in the use of trimmers.
d. Troy was in privity of contract with Garden Tool.
Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline
to withstand specific conditions. If QuikBilt fails to meet this standard, which is
construed as a breach of contract and a breach of a duty of care, Pure might be awarded
punitive damages to
a. establish, as a matter of principle, that QuikBilt acted wrongfully.
b. provide Pure with funds for a foreseeable loss beyond the contract.
c. provide Pure with funds for its loss of the bargain.
d. punish QuikBilt and deter others from similar acts.
Kip writes a check for $1,000 drawn on Local Bank and presents it to Mira. Mira
presents the check for payment to Local Bank, which dishonors it. The party most likely
liable to Mira is
a. Kip in a civil suit.
b. Kip in a criminal prosecution.
c. Local Bank in an administrative proceeding.
d. neither Kip nor Local Bank.
Doctors Medical Clinic orders 1,000 bandages from Emergency Supplies Company but
fails to specify the sizes. The bandages are delivered in an assortment of sizes. Doctors
Medical Clinic may
a. accept the bandages “as is only.
b. accept the bandages “as is or reject the entire shipment only.
c. accept only the bandages that it wants and reject the rest.
d. reject the entire shipment only.
Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane
and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane
refuses to ship Ira the collection. Ira should seek
a. damages.
b. reformation.
c. rescission.
d. specific performance.
RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment
Company copies the design without RiteMades permission. Steels conduct is actionable
provided
a. consumers are confused.
b. Steels conduct is intentional.
c. Steels conduct reduces the value of RiteMades design.
d. RiteMades design is patented.
Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks, Inc. The most
important factor in determining whether an express warranty is created is whether
a. Sari expresses to Terrific what she wants warranted.
b. Saris desire for the SUV becomes part of her motivation to deal.
c. Terrific expresses to Sari what it expects of its customers.
d. Terrific promise becomes part of the basis of the bargain.
Ratzo is asked to be a witness to Sades will. Before attesting to the will,
a. Ratzo does not have to read the will or be informed of its contents.
b. Ratzo must read the will and recite its contents.
c. Sade must orally tell Ratzo of the wills contents.
d. Sades attorney must read the will aloud to Ratzo.
Melanie engages in speech that harms others good reputations on her blog at
no.lie.com. The First Amendment gives such speech
a. less protection than obscene speech.
b. more protection than symbolic speech.
c. no protection.
d. the same protection as any noncommercial speech.
In Eds suit against First National Bank, the discovery phase would include all of the
following except
a. Eds complaint.
b. Eds deposition.
c. Eds requests for First Nationals admissions.
d. First Nationals replies to Eds interrogatories.
Fact Pattern 18-1
Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto
Sales. Fine sells the cars to consumers and businesses.
Refer to Fact Pattern 18-1. Ira, a police officer, buys an Excel from Fine to drive in his
off-duty hours. Iras Excel is
a. a consumer good.
b. an accession.
c. equipment.
d. inventory.
Esther and Faisal agree that Esther will fix Faisals 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.
Alaskan salmon that fill the hold of Bill and Carlas fishing boat are fungible if the
salmon are
a. alike naturally or by agreement or trade usage.
b. fundamentally different.
c. fun, good, and edible.
d. liable to deteriorate over time.
To acquire the ownership of a mountain cabin by adverse possession, Cody must
occupy the cabin exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
b. until the owner files a suit.
c. without the owners knowledge.
d. with the states permission.
Violet negotiates with Urban Credit Corporation to obtain a loan for $85,000 to buy a
home. During the negotiations, Urban Credit orally misrepresents the terms, but
provides the required documents, which accurately state the terms. Violet does not read
the documents. The party or parties most likely liable for a violation of the law is
a. neither party.
b. Urban Credit.
c. Urban Credit and Violet.
d. Violet.
Gigi, a twenty-year-old, wants to execute a will before she undertakes a moun-
tain-climbing trip on a peak in the Himalaya Mountains. In most states, the legal age for
executing a will is
a. sixteen years of age.
b. eighteen years of age.
c. twenty-one years of age.
d. twenty-five years of age.
Ridgeway Sand & Gravel Corporation and Quick-Set Paving Company combine so that
all that remains after the papers have been signed is Ridgeway. This is
a. a consolidation.
b. a merger.
c. a purchase of assets.
d. a share exchange.
North American Properties, Inc., and its officers, directors, and shareholders, buy and
sell securities. Section 16(b) of the Securities Exchange Act of 1934 covers
a. all purchases and sales of securities.
b. only purchases and sales of securities involving misappropriation.
c. only purchases and sales of securities involving short-swing profits.
d. only purchases and sales of securities involving tippers and tippees.
Fact Pattern 19-1
Rico signs a lease on behalf of Start-Up Games, Inc., with Tower Office Suites. As part
of the lease, Rico signs a document titled “GUARANTY, which states that it is “an
absolute guaranty of the leases performance.
Refer to Fact Pattern 19-1. If Start-Up stops paying the rent, it is most likely that li-
ability or loss for the unpaid amount will rest with
a. no one.
b. Rico and Start-Up.
c. Tower Office Suites.
d. the other tenants on the same property.
Relax Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on
May 1 for which Stuffy agrees to pay. Relax tells Stuffy on April 15 that delivery will
be delayed until June 1. Stuffy may
a. await performance, sue Relax, or suspend its own performance.
b. only await Relaxs performance for a commercially reasonable time.
c. only sue Relax for breach of contract.
d. only suspend its own performance.
Elsa, the owner of Fertile Farm, sells Gina a right to camp on Fertile land overnight.
Ginas right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Mona contracts to repair a computer for NuData, Inc. (NDI). Mona knows that without
the computer, NDI will lose a sale. Mona does not perform as promised. NDI files a suit
against Mona. As consequential damages, NDI can recover
a. the cost of a new computer.
b. the difference between Monas price and the actual cost of repair.
c. the loss of profit from the lost sale.
d. nothing.
Dizzy is not Edwinas agent but enters into a contract with Frida on Edwinas 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.
Beyond Gamez, Inc., a video game retailer based in California, does business in all fifty
states exclusively online. According to New York state tax law, an out-of-state online
retailer must collect and remit state taxes to New York if the retailer
a. plans to establish a substantial physical presence in New York.
b. targets a potential marketing base in New York.
c. maintains a Web site accessible in New York.
d. pays a party within New York to solicit business for its products.
Under no circumstances can a non-partner be regarded as an agent whose acts are
binding on the partnership.
Most crimes must be prosecuted within a certain number of years.
After a consolidation, there is only one surviving corporation.
On the entry of an order for relief in a reorganization case, the creditors generally take
over the operation of the debtors business.
An agreement is evidenced by a single event: an acceptance.
To recover for fraud, a plaintiff must be under twenty-one years of age.
Under the UCC, the validity of a contract depends on its price term.
An adjustable-rate mortgage is a standard mortgage with an unchanging rate of interest.
Lenders can require balloon payments for loans with terms of five years or less.
Shareholders have a right to inspect corporate books and records.
A partner who pursues his or her own interests automatically violates the partners
fiduciary duties to the partnership.
A long arm statute permits a court to exercise jurisdiction over an out-of-state
defendant.
Cutter Company makes and sells table saws, which are designed to be safe if used
properly. Erin buys a Cutter saw and lends it to her neighbor Frank. To reach a toolbox
on a high shelf in his garage, Frank props the saw at an angle against a cabinet and
climbs onto the saw. Frank loses his footing, slips off the saw, falls on the blade, and is
injured. He files a product liability suit against Cutter, on the ground of negligence. On
what basis could the maker prevail?
A suggestive use of ordinary words may not be trademarked.
Each state permits a debtor to retain the family home, in its entirety or in part, free from
the claims of unsecured creditors.