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Detailed Designs Company, an architectural firm, wants to hire Eduardo, a noncitizen.
A temporary work visa is most likely to be set aside for a noncitizen who is
a. a "person of ethnic similarity to the employer's workforce."
b. a "person of extraordinary ability."
c. a "person of ordinary ability and ambition."
d. a "person with an extraordinary work ethic."
Lora signs a covenant not to compete with her employer, Midstate Distribution, Inc.
The covenant will be enforced if it
a. does not require either party to obtain a business license.
b. is reasonable with respect to geographic area and time.
c. is supported by consideration.
d. none of the choices.
Rally Speedboat Corporation refuses to sell its products to Super Weekends, Inc., a
recreational water products dealership. This is
a. an exclusive-dealing contract.
b. a horizontal market division.
c. attempted monopolization.
d. a unilateral refusal to deal.
Rafe signs a one-year lease with Suki to occupy an apartment in Lawrence, Kansas,
near the University of Kansas. Rafe needs the apartment only for two semesters and
may have to sublet it for the rest of the term. Rafe's tenancy is
a. a periodic tenancy.
b. a tenancy at will.
c. a tenancy at sufferance.
d. a tenancy for years.
Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a
lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the
UCC, an implied warranty of merchantability arises
a. automatically in lease contracts.
b. only if the lessee asks for it.
c. only if the lessor does not expressly disclaim it.
d. only in conjunction with sales contracts, not lease contracts.
Ron signs a contract with Sam, a door-to-door salesperson for Tutors, Inc., to buy a
foreign-language course. To cancel the contract, Ron has up to
a. three days.
b. thirty days.
c. sixty days.
d. ninety days.
The assets in Dong's estate, including the value of his home on Elm Street and its
contents, are insufficient to pay in full all of the gifts provided for in his will. His heirs
will receive
a. full payment in order of seniority until the assets are exhausted.
b. nothingthe assets will descend to the state.
c. reduced benefits.
d. the option of distributing the assets according to their wishes.
Discount Factory Outlets, Inc., issues bonds. Bonds
a. are issued by businesses only.
b. are sometimes referred to as 'stock with preferences."
c. have maturity dates.
d. require periodic interest payments from their owners.
The payment of Nero's debt to Olly is guaranteed by Nero's personal property. Nero is
located in Pennsylvania. Olly communicates to the appropriate state official a security
agreement that uses only Quality Engineering, the trade name of Nero's business. To
perfect Olly's interest, this is
a. irrelevant.
b. not sufficient.
c. sufficient if Quality Engineering is a sole proprietorship.
d. sufficient if the trade name is spelled correctly or misspelled slightly.
A record does not require a signature to have legal effect under the UETA.
On April 1, OK Contractors, Inc., contracts to build a store for Lo-Cost Jewelers at a
specific location in Metro City. On May 1, Metro changes its zoning laws to prohibit
the construction of a commercial building at that location. When the store is not built,
Lo-Cost files a suit against OK. In this situation
a. OK is in breach of contract.
b. Metro is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to
pay her $250,000. Uri wants to transfer his right to the ownership of the house to Val,
his niece. This transfer generally
a. cannot be prohibited.
b. cannot be allowed.
c. can be prevented.
d. can be circumvented.
Green Landscape Company buys a backhoe on credit from Heavy Equipment
Corporation, but does not make a payment on the loan for several months. Heavy
repossesses the backhoe by towing it from a public street. Green sues Heavy for breach
of the peace. Green will probably
a. not prevail, because Heavy did not use judicial process.
b. not prevail, because the repossession was not a breach of the peace.
c. prevail, because Green did not default on the loan.
d. prevail, because the repossession was a breach of the peace.
Real Foods Corporation orders from Savory Company goods that are stored in an
Uptown, Inc., warehouse. Real Foods pays for the goods, delivery is via the transfer of
a negotiable warehouse receipt, and Real Foods moves the goods out of the warehouse.
The risk of loss passes to Real Foods when it
a. orders the goods.
b. pays for the goods.
c. receives the negotiable warehouse receipt.
d. moves the goods out of the warehouse.
Toni files a suit against Universal Media Corporation for defamation. Actual malice
must be shown for recovery of damages if Toni is
a. a corporate officer.
b. a non-employee.
c. a private individual.
d. a public figure.
GR8 Marketing Company and Hot Tunes, Inc., sign a document that states GR8 agrees
to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service. GR8
and Hot have
a. an executed contract.
b. an express contract.
c. an implied-in-fact contract.
d. a quasi contract.
Fact Pattern 15-1
Kip sells an apartment building to Lacy with a promise to repair the roof, which
violates the local housing code, within six months. One year later, Kip sends Milo, a
carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further
payments to Kip, who files a suit against Lacy.
Refer to Fact Pattern 15-1. Kip's late attempt to fix the roof is most likely
a. a material breach.
b. complete performance.
c. excused by Lacy's refusal to make further payments.
d. substantial, but not complete, performance.
Metro City operates its own municipal public drinking water system. With regard to
pollutants, this system is primarily subject to
a. the migratory bird rule.
b. the Oil Pollution Act.
c. the Rivers and Harbors Appropriations Act.
d. the Safe Drinking Water Act.
Rikki signs a check "pay to the order of Scholar University" drawn on Rikki's account
in State Bank to pay her tuition. Rikki is
a. the certifier.
b. the drawee.
c. the drawer.
d. the payee.
Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry
does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office
Accounting may recover from Perry
a. compensatory damages.
b. consequential damages.
c. nominal damages.
d. punitive damages.
Procter, who is not in contemplation of imminent death, tells his daughter Opal that she
can have his Dodge truck on his death, whenever that happens. This is
a. a valid gift causa mortis.
b. a valid gift inter vivos.
c. a valid gift largesse.
d. not a valid gift.
Tania promises to buy Saki's handheld game-player for $75. Saki is
a. an executee.
b. an offeror.
c. a promisee.
d. a promisor.
Like other manufacturers and sellers, Happy Household Products Company packages
its products with labels. Under federal law, such labels must be
a. accurate and use easily understood words.
b. bright and feature eye-catching colors.
c. graphically distinctive and well-designed.
d. interesting and appealing to the average consumer.
Lora files a suit in Michigan against Ned over the ownership of a boat docked in a
Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of
venue on the ground that Ohio
a. has a sufficient stake in the matter.
b. has jurisdiction.
c. has sufficient minimum contacts with the parties.
d. is a more convenient location to hold the trial.
Herb, a computer programmer for Inventory Control Corporation, is arrested in his
employer's parking lot on suspicion of larceny. Herb must be informed of his right to
a. a trial by jury.
b. punishment.
c. question witnesses.
d. remain silent.
Jaime and Kip, consumers, transact a deal over the Internet. Their contract does not
mention the UETA. The UETA covers
a. none of the contract.
b. only the part of the contract that involves computer data.
c. only the part of the contract that does not involve computer data.
d. the entire contract.
Dale signs a contract with Everbest Insurance Company that intentionally confers a
benefit on Flo. Flo's rights under the contract will vest
a. automatically.
b. if she manifests assent to the contract or materially alters her position in justifiable
reliance on it.
c. only if she manifests assent.
d. only if she materially alters her position in justifiable reliance.
Through fraudulent means, Roy induces Sal to sign a contract to invest with him her
profits from Tasty Café. When Sal learns the truth, she may
a. do nothing with respect to the contract.
b. enforce the contract only.
c. enforce the contract or recover the money paid.
d. recover the money paid only.
Fact Patter 36-2
Petro Drilling Corporation combines its assets and debts with those of Oil Refining
Company to form New Energy, Inc.
Refer to Fact Pattern 36-2. The formation of New Energy is
a. a consolidation.
b. a share exchange.
c. a liquidation.
d. a merger.
Fact Pattern 15-1
Kip sells an apartment building to Lacy with a promise to repair the roof, which
violates the local housing code, within six months. One year later, Kip sends Milo, a
carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further
payments to Kip, who files a suit against Lacy.
Refer to Fact Pattern 15-1. Lacy's refusal to make further payments is most likely
a. a material breach.
b. complete performance.
c. excused by Kip's failure to fix the roof.
d. substantial, but not complete, performance.
Congress enacts the Tight Money Act (TMA) of 2010 to ban "major business entities"
from making political contributions that individuals can make. A court would likely
hold the TMA to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
Yoko, Ltd., and Zeno, S.A., transact an international sale of goods. For these parties,
and other international buyers and sellers, the United Nations Convention on Contracts
for the International Sale of Goods spells out the duties that apply
a. if Article 2 of the Uniform Commercial Code does not apply.
b. if a dispute is submitted to the International Court of Justice.
c. if the parties have not agreed otherwise in their contracts.
d. under all circumstances.
A contract to commit a crime is a contract and therefore enforceable.
If, before the time for performance, a buyer communicates an intent not to perform, the
seller can consider the buyer in breach and pursue a remedy.
An expression of opinion"your customers will like this"is an offer.
Fraud occurs only when there is reliance on a statement of opinion.
To rescind a contract for fraud, a plaintiff must prove an injury.
The government can recover the cost to clean up a hazardous waste disposal site from
the persons who were even remotely responsible.
Federal securities laws strictly control the terms, duration, and circumstances under
which most tender offers are made.
First State Bank is a secured party on a $5,000 loan to Geoff, who owns Happy Hours, a
nightclub. When Geoff experiences financial difficulty, creditors other than First State
Bank petition him into involuntary bankruptcy. The value of the secured collateral has
substantially decreased in value. On its sale, the debt to First State Bank is reduced to
$2,500. Geoff's estate consists of $100,000 in exempt assets and $2,000 in nonexempt
assets. After the bankruptcy costs and back wages to Geoff's employees are paid,
nothing is left for unsecured creditors. Geoff receives a discharge in bankruptcy. Later
he decides to go back into business. By selling a few exempt assets and getting a small
loan, he is able to buy the Idle Inn, a small, but profitable, restaurant. Geoff goes to
First State Bank for the loan. The bank claims that the balance of its secured debt was
not discharged in Geoff's bankruptcy. He signs an agreement to pay First State Bank the
$2,500, and the bank makes a new unsecured loan to him. Is First State Bank correct
that the balance of its secured debt was not discharged in bankruptcy? What is the legal
effect of Geoff's agreement to pay the bank $2,500 after the discharge in bankruptcy?
Only outsiders who would ordinarily be deemed fiduciaries of the corporations in
whose stock they trade can be liable for insider trading.
The Bill of Rights protects individuals against types of interference by the states.
For an item to be characterized as a "good" under the UCC, it must be intangible.
A franchise exists when the owner of a copyright licenses its use to another party to sell
goods or services.
If no children or grandchildren survive a decedent who dies without a will, a surviving
spouse is entitled to the entire estate.
Tariffs are taxes on imports.
Mitch is a director and officer of Numero Uno, Inc. Mitch makes a marketing decision
that results in a dramatic decrease in profits for Numero Uno and its shareholders. The
shareholders accuse Mitch of breaching his fiduciary duty to the corporation. What is
Mitch's best defense against this accusation? Later, the Numero Uno board considers a
resolution for the firm to compete with One-of-a-Kind Corporation. Mitch is a director
and shareholder of One-of-a-Kind. What is Mitch's responsibility in this situation?
