Cody believes that Delta Corporation has discriminated against him on the basis of
gender. Cody files a suit against Delta under Title VII. To establish a prima facie case of
employment discrimination, Cody must show that
a. Cody is a member of a protected class.
b. Delta has no legal defenses against the claim.
c. discriminatory intent motivated Deltas act.
d. other firms in Deltas industry have committed discriminatory acts.
Lulu, an accountant, conducts an audit of Microstuff Toys, Inc. After the conclusion of
the audit, the working papers created in preparing the audit must be
a. disposed of immediately.
b. kept until the Public Company Accounting Oversight Boards review.
c. maintained for seven years.
d. retained forever.
Boz runs an illegal gambling business and pays Colin, a police officer, not to interfere.
The payments are discovered. Boz and Colin are sent to prison. With respect to the
amount of the payments, Boz can recover
a. all of it.
b. none of it.
c. only as much as Colin has not spent.
d. only as much as Colin has spent.
Meri, an accountant, includes a false statement in a report for Novelty Paper Products,
Inc. (NPPI) that is filed with the Securities and Exchange Commission. When Otho
buys stock in NPPI and loses money on the investment, he files a suit against Meri,
alleging fraud under the 1934 Securities Exchange Act. To avoid liability, Meri can
show that she
a. intended to defraud NPPI, not Otho.
b. intended to profit on stock trades generally, not only with Otho.
c. is an otherwise competent accountant.
d. was not aware her statement was false.
Bowie owns a 1957 Chevrolet coupe, which Danica customizes and details to Bowies
specifications. The car earns several awards at regional vehicle customizing
competition shows. The result of Danicas efforts is
a. accession.
b. acquisition.
c. conversion.
d. dominion.
Nadia is a shareholder of Open Air Productions, Inc. Nadia could normally exercise
appraisal rights if Open Air participated in
a. a share exchange.
b. a dissolution.
c. a takeover.
d. a winding up.
Brandy forges Calebs signature on a check “payable to the order of Brandy drawn on
Calebs account in Downtown Bank. Calebs forged signature is
a. effective if an innocent third party accepts the check.
b. effective to the degree that it matches Calebs genuine signature.
c. effective to the extent that Downtown Bank debits Calebs account.
d. not effective.
An Iowa state statute requires amusement parks to maintain equipment in specific
condition for the protection of patrons. Jacks Fun Park fails to maintain its equipment.
Key, a patron, is injured. Jacks has committed
a. a dram shop act.
b. contributory negligence.
c. negligence per se.
d. res ipsa loquitur.
Deb buys a song through eSongs, an online music vendor. Before completing the
purchase and downloading the song, Deb must agree to a provision not to sell copies of
the song. This provision is
a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.
Kelly, the owner of Llama Farms, a sole proprietorship, wants to obtain additional busi-
ness capital but to maintain control. This can best be accomplished by
a. borrowing funds.
b. bringing in partners.
c. issuing stock.
d. selling the business.
Cash is an employee of Drowsy Resort, Inc., covered by federal overtime provisions,
which apply only after an employee has worked more than
a. eight hours in a day.
b. forty hours in a week.
c. 160 hours in a month.
d. one year for the same employer.
Wild & Scenic River Tours, Inc., is a corporation. Wild & Scenic has the implied power
to
a. issue stocks and bonds.
b. execute contracts and negotiable instruments.
c. buy and sell (or lease) property.
d. perform all acts reasonably appropriate and necessary to accomplish its corporate
purposes.
Claudia enters into a contract with Bayside Inn to provide Baysides guests with
complimentary breakfast foods. When a dispute arises over the terms of their contract,
Bayside files a suit against Claudia. If the contracts writing is clear and unequivocal, a
court will
a. enforce it according to its obvious terms.
b. give greater consideration to standardized terms.
c. give greater consideration to general language.
d. interpret it against the party who did not draft the contract.
During the trial phase of Fuel Corporations suit against Gas Stations, Inc., their
attorneys engage in voir dire. This is
a. the assessment of the arguments on the issues.
b. the determination of the issues to be argued.
c. the litigation of the issues and arguments.
d. the selection of jurors.
Kady, an agent for Lebron, enters into a contract on Lebrons behalf with Madge that
must be in writing to be enforceable under the Statute of Frauds. Kadys authority to
enter into this contract is not in writing. Under the equal dignity rule, this contract is
a. enforceable.
b. void.
c. voidable at Lebrons option.
d. voidable at Madges option.
Feder prepares federal corporate income tax returns for Giant Stores, Inc., and other
firms. Under the Internal Revenue Code, with respect to an understatement of a clients
tax liability, Feder may be liable for
a. negligent or willful misconduct.
b. no misconduct.
c. only negligent misconduct.
d. only willful misconduct.
Utility Power Company has the right to run its power lines across Velmas land. This is
a. a license.
b. an easement.
c. a profit.
d. a tenancy at sufferance.
Rona is Stus administrative assistant and both work for TriCounty Labor Inc. Stu tells
Rona that for sexual favors, he will give her an excellent performance review and
recommend a raise. This is
a. harassment on the basis of sexual orientation.
b. hostile-environment harassment.
c. not harassment.
d. quid pro quo harassment.
Oak Grove Residences, Inc., owns apartment buildings. Pedro leases one of Oak
Groves apartments. Pedros transfer of his interest in the lease to Quito for a period
shorter than the lease term is
a. an assignment.
b. an eviction.
c. a right of entry.
d. a sublease.
GR8 Skates Company makes and sells a pair of skates to Hugh. GR8 fails to exercise
“due care to make the skates safe, and Hugh is injured as a result. GR8 is most likely
liable for
a. assumption of risk.
b. knowledgeable use.
c. negligence.
d. product misuse.
Taylor digitally copies business software without the authorization of the owners and
sells the copies to others via the Internet. Under federal law, this is
a. a crime only if the copies are not the same as, or close to, the original.
b. a crime only if Taylor and the buyers are in different jurisdictions.
c. not a crime.
d. a crime.
Wanda tells Vito that she would like to buy his Chocolate Goodies store. Vito declines,
but later decides to sell and sends to Wanda, and others, a flyer describing the details.
Wanda responds with a letter of “acceptance. Wanda and Vito have
a. a contract.
b. no contract, because Vito sent the letter to more than one party.
c. no contract, because Vito was only inviting bids.
d. no contract, because the letter was an invitation to negotiate.
On the orders of their corporate employer, Della and Efron, employees of Fabulous
Fashionista, a clothing store, switch trademarks on clothing that comes into the store to
be sold to consumers. This is
a. forgery.
b. larceny.
c. obtaining goods by false pretenses.
d. no crime.
Riverview Bank makes a mortgage loan of $95,000 to Pomeroy to buy a home. Under
federal law, if Riverview fails to provide certain material disclosures with respect to the
loan, Pomeroys right to rescind the loan
a. expires at midnight on the day the loan is finalized.
b. is canceled immediately.
c. is extended for up to three years.
d. is tolled for the duration of the mortgage payments.
Biff wrongfully takes an unopened carton from a Cold Storage Warehouse loading
dock, puts the carton in his car, and drives away. This is
a. burglary.
b. forgery.
c. larceny.
d. no crime.
Kelly is injured when she slips and falls on Laylas sidewalk. To determine whether
Layla owed a duty of care to Kelly, Layla is subject to the standard of
a. a realistic person.
b. a reasonable person.
c. a recognizable person.
d. a reliable person.
A merger between Grain Mills Corporation and Farm2Fork Distribution Inc. can be
expressed as Grain Mills + Farm2Fork =
a. Farm2Fork.
b. Harvest Dining Corporation.
c. Harvest Dining Corporation + EZ Brewing Company.
d. EZ Brewing Company.
Clem attempts to free himself from the duties of his contract with Drew by telling Drew
to find someone else to perform them. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.
Coco is considering forms of business organization for her confections businessCocos
Cupcakes. Most states require that a limited liability company have
a. no minimum number of members.
b. at least one member.
c. at least two members.
d. at least three members, including at least one general partner.
In the facts in the previous question, according to the dissent in the Kavarik case, with
respect to Glen and Heidis marital estate, the CDs are
a. not included because Heidis parents did not intend to give them to her.
b. not included because Irene cashed them without sharing the proceeds.
c. included because Glen and Heidi were married when the CDs were acquired.
d. included because Heidis parents gave up control when the CDs were placed in the
names of Heidi and Irene.
Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn,
and other structures permanently attached to the land. Chitas brother Elvin owns
everything else on the farmimplements, seed, and so on. The real property is owned by
a. Chita and Elvin.
b. Chita only.
c. Downwind Farm.
d. Elvin only.
Federal law governs garnishment actions.
A buyer who obtains substitute goods to replace goods that a seller did not deliver can
also recover damages from the seller.
If no heirs are found, the property of a decedent is transferred to a charitable
organization.
The First Amendment requires a complete separation of church and state.
An installment contract is breached if a seller tenders any nonconforming goods.
The function of the courts is to interpret and apply the law.
A certificate of deposit may be negotiable even if it does not contain an express promise
to pay.
A person who commits larceny can be sued under tort law.
A contract between parties residing in different countries is subject to United Nations
Convention on Contracts for the International Sale of Goods.
Harm must be foreseeable to be considered the proximate cause of an injury in
negligence.
The Foreign Sovereign Immunities Act spells out the particulars of what constitutes a
commercial activity.
To avoid liability for negligence, a business owner must protect its patrons against all
risks.
Incredible eSales Corporation is a new Internet business. How can Incredible eSales
obtain capital to finance its operations?
A seller must warn those who buy a product of harm that could result from the
foreseeable misuse of the product.
A contract can include a provision stating that no damages can be recovered for certain
types of breaches.
A contract for the sale of commercial realty should indicate what items are included in
the sale.
A novation revokes and discharges a prior contract.
Shareholders have no responsibility for the day-to-day management of a corporation.
Constructive delivery occurs when property is physically transferred.