To determine whether a duty of care has been breached, a judge asks how a reasonable
person would have acted in the same circumstances.
Employees are entitled to overtime pay only at their employer’s discretion.
On default, unless the security agreement states otherwise, the secured party has the
right to take possession of the collateral.
The existence of an insurable interest is a primary concern when determining liability
under an insurance policy.
Foreign firms cannot obtain U.S. patent protection on items that they sell in the United
States.
An acceptance that materially changes a term in the offer will still be considered an
acceptance.
A creditor must exhaust all legal remedies against the principal debtor before holding
the surety responsible for payment.
The method of perfecting a security interest does NOT depend on the classification of
the collateral.
For a party to a contract to receive relief from either a unilateral or a bilateral mistake,
the mistake must involve a material fact.
Bankruptcy proceedings are held in federal courts.
For an effective bailment, the bailor must deliver possession of the bailed property with
its title.
E-signatures are NOT legally effective or enforceable.
Interrogatories are written questions for which written answers are prepared and signed
under oath.
Ed, a businessperson, is a friend of Fran, the owner of a Percolated Coffee & Baked
Goods store. Every day, Ed spends five minutes in Fran’s store, looking at the goods
and usually buying one or two cinnamon buns or bagels. One afternoon, Ed goes into
the store, looks at the items, and picks up a $1 chocolate brownie. Ed waves the
brownie at Fran without saying a word and walks out. Is there a contract? If so, how
would it be classified in terms of formation, performance, and enforceability?
Implied warranties can arise from a “course of dealing.”
A promise by an employer to give every employee a 10 percent raise at the end of the
year if “management thinks it is warranted” is an example of an illusory promise.
A law that has any impact on religion is unconstitutional.
If a buyer breaches a contract while the seller is still in possession of the goods, the
seller can resell the goods and hold the buyer liable for any loss.
The Uniform Partnership Act governs the operation of partnerships.
The Federal Reserve System acts as a clearinghouse where banks exchange checks.