Guard Personnel Company is charged with using hiring practices that do not meet
requirements set by the Transportation Safety Administration (TSA). The administrative
law judge orders Guard to comply with the TSA’s regulations. Guard may
a. appeal to the commission that governs the TSA.
b. appeal to Congress, which created the TSA.
c. appeal to a different, separate agency.
d. ignore the order.
Devon makes a contract with Edie that indirectly benefits Felipe. Neither Devon nor
Edie intended this result. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. not a delegation, an assignment, or a third party beneficiary contract.
Kathryn signs a lease agreement for an apartment. Kathryn has entered into a(n)
a. express contract.
b. implied contract.
c. quasi contract.
d. unenforceable contract.
At Glamour Mattress Store, Robbie signs a contract to buy a suite of bedroom furniture.
The contract sets a schedule of $500 monthly payments, subject to a late fee of 150
percent. Glamour’s salesperson hurries Robbie through the deal, giving her no
opportunity to read the contract. This is most likely
a. an adhesion contract.
b. procedural unconscionability.
c. substantive unconscionability.
d. an enforceable contract.
Suzy works at a bank. Without authorization, Suzy accesses the bank’s electronic fund
transfer system. Her actions are a federal crime under the
a. Racketeer Influenced and Corrupt Organizations Act
b. Electronic Funds Transfer Act
c. National Stolen Property Act
d. Counterfeit Access Device and Computer Fraud and Abuse Act
Bette backs out of City Parking Garage, colliding with Dill’s car. Dill may recover
$7,500 to cover the cost of the repairs if Bette failed to act as
a. a blameless person.
b a faultless person.
c. a holistic person.
d. a reasonable person.
Much of American law is based on
a. the English legal system
b. the Spanish legal system
c. the civil law of the Greeks
d. Ancient Chinese law
Andy knows nothing about horses. Peter, an expert horse trainer, knows that the horse
has no talent and is not likely to win any competitions. Peter convinces Andy to buy a
horse for $500,000 by assuring him that the horse has great talent. The horse turns out
to have no talent and never wins any competitions. Andy can most likely recover
damages based on
a. fraud.
b. mistake.
c. undue influence.
d. duress.
Olin, an art instructor, convinces Pia, who has no artistic ability, that Pia has
considerable talent and induces Pia to pay Olin $10,000 for art lessons. When Pia
realizes the truth, she files a suit against Olin. Pia is most likely to recover on the basis
of
a. fraud.
b. mistake.
c. undue influence.
d. none of the choices.
Trustworthy Insurance, Inc., has a valid reason to cancel a policy issued to USA Sales
Company. In most states, Trustworthy could cancel the policy with
a. oral notice.
b. oral or written notice.
c. no notice.
d. written notice.
Greg obtains from Helpful Insurance Company a policy that provides that Greg has
thirty days after a premium’s due date to pay it before the policy will be canceled. This
is
a. a coinsurance clause.
b. an antilapse clause.
c. an appraisal clause.
d. an incontestability clause.
Diamond Camera Shop receives lenses from Excel Optical, Inc., under a sale or return
agreement. While the lenses are in Diamond’s possession, title is held by
a. Diamond and Excel jointly.
b. Diamond only.
c. Diamond’s creditors only.
d. Excel only.
Dave and Eiger are partners in First-Place Athletic Supplies, which sells sports
equipment. Dave manages the business. Unless the partnership agreement states
otherwise, Dave is
a. entitled to compensation in proportion to its effect on the business.
b. entitled to compensation in proportion to the effort expended.
c. entitled to compensation in proportion to the effort required.
d. not entitled to compensation for his effort.
Phil owns a farm in South Dakota. He does not like it when planes from the local
airport fly over his property. Phil is unlikely to win a case claiming that airplanes flying
over his land violate his property rights unless
a. the planes fly over more than twice a day.
b. he can prove there are more efficient routes for the planes to take.
c. the flights are low and frequent and cause direct interference with Phil’s enjoyment of
the land.
d. the planes belong to private individuals.
Ricky obtains an insurance policy that protects him from major hospital, medical or
surgical expenses. This is
a. casualty insurance.
b. major medical insurance.
c. life insurance.
d. malpractice insurance.
On the back of a check payable to Nero, he writes “Pay to Odell, without recourse” and
signs it. This
a. does not effect the check’s negotiability or any party’s liability.
b. relieves Nero of liability on the check.
c. relieves Odell of liability on the check.
d. renders the check nonnegotiable.
Jane and Phil enter into a contract, but make a bilateral mistake. In order for the
contract to be rescinded by either party, the bilateral mistake must be about a(n)
a. material fact.
b. value.
c. opinion.
d. prediction.
George burns an American flag in his backyard. He films his actions and posts the video
on YouTube.com. George’s actions are
a. expressly prohibited by the U.S. Constitution.
b. protected by the First Amendment of the U.S. Constitution.
c. considered to be a form of treason.
d. illegal in some states.
Simon signs a check “pay to the order of Tilly” drawn on Simon’s account in United
Bank. Vela forges Tilly’s indorsement, First Federal Bank cashes the check, and Vela
disappears. United pays First Federal and debits Simon’s account. Most likely, the
ultimate loss will fall on
a. Simon.
b. Trudy.
c. United Bank.
d. First Federal Bank.
Vera gives Willy a $500 check as payment for a debt. Willy crudely raises the amount
of the check to $5,000 and transfers it to Xtreem Sportz store for a new bike. Xtreem
deposits the check in its Yankee Bank account. Vera is liable for the payment of $5,000
to
a. no one.
b. Willy, Xtreem Sportz, and Yankee Bank.
c. Willy only.
d. Xtreem Sportz and Yankee Bank only.
Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert
Caterers, but their contract does not specify the address at which the goods are to be
delivered. If the parties fail to specify the address before the delivery date
a. Pleasant Valley Dairy is excused for any resulting delay.
b. Pleasant Valley Dairy is liable for any resulting delay.
c. the time for delivery is extended with a price adjustment for the delay.
d. the contract is canceled.
Fact Pattern 28-2
Beth, who has a disability, is an employee of Corporate Office Company (COC). After
the installation of new doors on COC’s building, Beth finds it nearly impossible to get
in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who
does not have a disability.
Refer to Fact Pattern 28-2. To successfully defend against Beth’s claim, COC will have
to show that
a. Beth consistently failed to meet the essential requirements of her job.
b. COC cannot make changes to the doors without undue hardship.
c. Dian is qualified for Beth’s position.
d. the doors were not installed as an act of intentional discrimination.
Manuel is walking past Thomas’s house when he hears a smoke alarm going off. He
also hears a child calling for help and sees smoke coming from a window. Manuel
rushes into Thomas’s house, finds the child and brings it outside. If Thomas sues
Manuel for trespass to land, Manuel’s defense will probably be
a. assisting someone in danger.
b. consent.
c. self-defense.
d. the reasonable person defense.
Pete takes Lauren on a date. At the end of the date, Pete asks Lauren if he can kiss her.
Lauren nods and Pete kisses her. The next day Lauren is mad that Pete has not called
her so she sues him for battery for kissing her. Pete’s defense to the allegation of battery
will be
a. defense of others.
b. self-defense.
c. consent.
d. legal responsibility.
UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela
seizes the property, UniOil asks a U.S. court to order the property’s return. The court
rules that Venezuela is exempt from the court’s jurisdiction. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Early one morning, Tab agrees to loan his bike to Sheila, who promises to return it in
the evening. Because there is no consideration, there is no contract. This is
a. a constructive bailment.
b. an involuntary bailment.
c. an express bailment.
d. no bailment.
Orange Manufacturing Corporation (OMC) orders twelve job-training and on-the-job
safety DVDs from Plum Productions, Inc., which delivers the disks to OMC’s plant.
This is most likely
a. a gift.
b. a lease of goods.
c. a sale of goods.
d. a service contract.
Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A
declaration that one will do something in the future is part of the definition of
a. a prediction.
b. a premise.
c. a principle.
d. a promise.
Carol takes out an insurance policy on her car. Carol can assign her policy to a third
party
a. under any circumstances.
b. under no circumstances.
c. as long as she does so in writing.
d. if a court approves the assignment.
Ceramic Tile Company designs and makes floor tiles. In a product liability suit based
on negligence, Ceramic could be liable for violating its duty of care with respect to
a. neither the design nor the making of the tiles.
b. the design and the making of the tiles.
c. the design of the tiles only.
d. the making of the tiles only.
Todd indorses a check, “Pay to Interstate Trucking if they deliver the lumber by May 1,
2016.” This is
a. a blank indorsement.
b. a qualified indorsement.
c. a restrictive indorsement.
d. a special indorsement.
Carol is married to Andy. Carol buys food for their children’s lunches and charges the
cost to Andy’s account. This is
a. an agency by operation of law.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
Paula owns Main Street Apartments. Paula may legally turn down a prospective tenant
based on the tenant’s
a. race.
b. gender.
c. ability to pay rent.
d. religion.
Jack’s Pet Houses, Inc. sells shelters for animals under “limited” warranties. Under the
Magnuson-Moss Warranty Act, this means that the warranties on shelters from Jack’s
Pet Houses
a. do not meet one of the requirements of a full warranty.
b. are only good for one year.
c. are illegal.
d. are oral.
Undue influence can occur when a named beneficiary is in a position to influence the
making of a will.
Bait-and-switch advertising occurs when a customer is lured into a store by an ad for a
low price item, which is then unavailable to the customer, who is then encouraged to
purchase a more expensive item.
An oral stop payment order is valid for fourteen days.
A loan between two consumers is NOT subject to the Truth-in-Lending Act.
If the purpose of a licensing statute is to protect the public from unlicensed
practitioners, a contract with an unlicensed professional is illegal.
A tenant cannot withhold rent for any reason.
Property used by a government for a public purpose such as a park is community
property.
Before a principal can ratify a contract, the principal must know all of the material facts
involved in the deal.
Liens usually do NOT take priority over other claims against the same property.
After a contract is made, a supervening event may make performance impossible and
discharge the contract.
An employee can usually recover benefits for injuries occurring on the commute to and
from work.
Attachment makes the security interest between a debtor and secured party ineffective.
If a nonmerchant-seller’s offer expressly conditions acceptance on a
nonmerchant-buyer’s agreement to the terms of the offer, the buyer’s positive response
is an acceptance even if it contains additional terms.
A unilateral mistake is a mistake made by both parties to a contract.
For an agent’s implied authority to be effective, a principal must confirm it in writing.
Race can be a bona fide occupational qualification.
If a party refuses to cooperate with a discovery request, the court can compel the party
to comply with the requests by a certain date.
Adhering strictly to all business laws is all that is necessary to fulfill all business ethics
obligations.
Common law is the same as statutory law.
An instrument that states simply “I.O.U.” is NOT negotiable.