United Industrial Corporation gives preferential treatment in hiring and promotion to
the members of all protected classes. This treatment results in discrimination against
members of the majority. This is
A.a bona fide occupational practice.
B.a business necessity.
C.constructive discharge.
D.reverse discrimination.
Fact Pattern 23-1
Desi starts up eSites, an Internet service, and leases office space in a building owned by
Fred. The lease requires Desi to pay Fred a base rental of $1,250, plus 10 percent of
eSites’ profits, each month. The term is two years. Desi hires Gwen to work at eSites’
tech support desk at an hourly wage of $12.50, plus a commission of 10 percent of the
profits. The term is also two years.
Refer to Fact Pattern 23-1. Desi and Fred are
A.not partners, because Fred does not have an ownership interest or management rights
in eSites.
B.not partners, because the lease includes a “base rental.”
C.not partners, because the rent includes only 10 percent of the profits.
D.partners in a partnership for two years.
Fact Pattern 24-2
Bertram, Claudia, and Dynah form Eat Local, Inc., a closely held corporation, and agree
to restrict the transfer of its stock to anyone else. The agreement provides that if one of
the shareholders dies, his or her shares of stock in Eat Local will be divided to maintain
the proportionate control of the survivors.
Refer to Fact Pattern 24-2. Later, Bertram dies. With respect to the stock transfer
restriction agreement, Bertram’s death most likely
A.triggers the division provision.
B.invalidates the entire agreement.
C.voids the division provision only.
D.violates the entire agreement.
Nouri is declared mentally incompetent. Omar, Nouri’s friend, insists that she transfers
her assets to him “for safekeeping.” A court might conclude that this gift is not effective
on the ground that there was no
A.acceptance.
B.delivery.
C.donative intent.
D.relinquishment of control.
Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor
agrees. Flo and Gregor have
A.an executed contract.
B.an express contract.
C.an implied contract.
D.a quasi contract.
On Tom’s eighteenth birthday, he decides that he no longer wants to keep a car he
bought from U-Pick Autos, when he was seventeen. His right to disaffirm the deal will
depend on
A.the car’s condition when Tom bought it.
B.the car’s current condition.
C.whether Tom acts within a reasonable period of time.
D.whether U-Pick has the right to disaffirm.
Odell owns Payroll Company, a bookkeeping service losing market share to Quik Work,
Inc. Odell pays Remy $5,000 to steal a list of Quik’s clients, to whom Odell will
aggressively market Payroll’s services. This deal is
A.enforceable.
B.void.
C.voidable at the option of either party.
D.voidable at the option of the party having less bargaining power.
Vacation Adventures, Inc., and Wild River Tour Company plan to merge. Most likely,
the articles of merger will be filed with
A.the county recording office.
B.the local chamber of commerce.
C.the state’s secretary of state.
D.the national travel agents’ association.
Krystal is a federal judge. Krystal’s judicial decisions are part of case law. This law
includes interpretations of primary sources of law. These sources include
A.administrative regulations.
B.articles in law reviews and other legal journals.
C.compilations summarizing court decisions on particular topics.
D.legal encyclopedias.
Ray breaches his lease with Sunny Properties and vacates the premises six months
before the end of the term. In some states, Sunny would have to
A.avoid reletting the premises to recover damages from Ray.
B.make reasonable efforts to relet the premises to mitigate damages.
C.relet the premises to recover damages from Ray.
D.sell the premises to recover damages from Ray.
Vladimir is a “payday” lender charged with filing false claims in bankruptcy
proceedings against his customer-debtors. The standard of proof to find a defendant
who has been charged with a crime guilty is
A.a preponderance of the evidence.
B.beyond all doubt.
C.beyond a reasonable doubt.
D.clear and convincing evidence.
Hud and Iggy form Jerry-Bilt Construction to enter into a contract to build one bridge.
Under their partnership agreement, Jerry-Bilt is to dissolve when the bridge is built.
Iggy signs a contract for the firm to build a second bridge. Jerry-Bilt
A.dissolves as soon as the first bridge is built.
B.dissolves as soon as the second bridge is built.
C.dissolves immediately on Iggy’s signing of the second contract.
D.does not dissolve.
Gabe asks his cousin Francie to sacrifice her career, move her home and family, and
provide services, at a lower salary than usual, to Gabe’s new Farm-to-Fork Produce
Company. Gabe tells Francie that she will jointly own and run the firm. Francie agrees.
Later, after the firm gains the benefit of Francie’s services, Gabe forces Francie out.
According to the dissent in the Braddock case, these facts sufficiently allege the
elements of a claim for
A.damages based on quasi contract.
B.recovery in fraud.
C.relief from a unilateral mistake.
D.none of the choices.
Corn Candy Corporation (CCC) has a right of action against Bio Farms, Inc. CCC
merges with Agri Sweeteners, Inc., with Agri absorbing CCC. After the merger, CCC’s
right of action against Bio Farms can be exercised by
A.CCC.
B.Agri Sweeteners.
C.Bio Farms.
D.no one.
Biff signs a note “payable to the order of County Credit Union.” Unless Biff has a valid
defense against payment, Biff’s liability on this note is
A.lateral.
B.primary.
C.secondary.
D.tertiary.
Jack promises to buy Kris’s computer for $400. Jack is
A.an executor.
B.an offeree.
C.a promisee.
D.a promisor.
Before undergoing surgery that could cause death, Donnelly, a guitarist, gives his of
guitars to Cathy. The surgery is successful, and Donnelly does not die. The gift of the
guitars is
A.not revoked because it was a gift causa mortis.
B.not revoked because it was a gift inter vivos.
C.revoked because it was a gift causa mortis.
D.not revoked because it was a gift largesse.
Quin, an accountant, prepares for Reddy, Inc., a financial statement that omits a
material fact. The statement is included in Reddy’s registration statement with the
Securities and Exchange Commission. Timor, who reads the statement, and Ubi, who
does not, each buy Reddy stock. Velma reads the statement but does not buy the stock.
Under Section 11 of the Securities Act of 1933, Quin may be liable to
A.no one.
B.Timor and Ubi.
C.Timor, Ubi, and Velma.
D.Ubi only.
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.
Leon files a suit against Moira, a medical doctor, alleging negligence. As a physician,
Moira is held to the standard of
A.a blameless individual.
B.a faultless ordinary person.
C.a reliable professional.
D.a reasonable physician.
Ridgeline Bank provides Stanley with a mortgage to buy a home. The rate of interest is
fixed for three years and then adjusts annually. This is
A.a fixed-rate mortgage.
B.an adjustable-rate mortgage.
C.an interest-only mortgage.
D.a violation of the law.
Rashad accesses Quant Company’s computer system without authority to obtain
protected financial data. Under federal law, this is
A.a felony if it is committed for a commercial purpose.
B.a felony if Quant brings a civil suit against Rashad.
C.not a crime.
D.a crime, but not a felony.
Link and Meryl are employees of Natural Resources, Inc. (NRI). When Odel, the
president of NRI, learns that Link and Meryl are active in union activities, he discharges
them. Link and Meryl may bring an action against NRI under
A.federal labor law.
B.federal or state unemployment law.
C.state workers’ compensation law.
D.the employment at-will doctrine.
Alaskan salmon that fill the hold of Bill and Carla’s 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.
Megan and Nicole do business as One World Realty. In acting on the firm’s behalf in a
deal with Property Acquisition Company, Megan fails to account for the profit. To her
firm, Megan is
A.liable for breach of the duty of common sense.
B.liable for breach of the duty of economic sense.
C.liable for breach of the duty of loyalty.
D.not liable.
To adjust debt and institute a repayment plan, Charlie-who is not a corporation, a
partnership, or a family farmer or fisherman-may file a petition in bankruptcy for relief
through
A.a liquidation.
B.a reorganization.
C.a repayment plan.
D.a family-farmer bankruptcy plan.
In making decisions for United Merchandising Company, Vance uses a cost-benefit
analysis. This is part of
A.duty-based ethics.
B.Kantian ethics.
C.the principle of rights.
D.utilitarianism.
Harbor Bay Bank has made mortgage loans to consumers that qualify for the Home
Affordable Modification Program (HAMP), which offers incentives to lenders to
change the terms of certain loans. The purpose of HAMP is to
A.convey property through lenders to consumers who can afford it.
B.force lenders to forgive all high-risk mortgages.
C.reduce monthly payments to levels that homeowners can pay.
D.transfer affordable property to investors to lease to consumers.
Reno is the beneficiary of a life insurance policy on Sula’s life obtained from Thayer
Insurance Company. The underwriter of this policy is
A.Reno.
B.Sula.
C.Thayer.
D.the agent or broker through whom the policy was obtained.
Lloyd and Milly are employees of NuTech Corporation. They have the same job. Under
the Equal Pay Act, NuTech can legitimately pay Lloyd more than Milly on the basis of
A.Lloyd’s greater production only.
B.Lloyd’s greater production or seniority.
C.Lloyd’s greater seniority only.
D.neither Lloyd’s greater production nor his greater seniority.
Fact Pattern 11-2
Bell Medical Education Service enters into a contract to employ Chris as an instructor
for two years to begin May 1. One month before the term begins, Bell is underbid by a
competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire
Chris.
Refer to Fact Pattern 11-2. Bell’s repudiation is most likely
A.a material breach.
B.a minor breach.
C.Chris’s breach.
D.no breach.
Fact Pattern 19-2
Mary’s home is in a state that has a $30,000 homestead exemption. Mary defaults on a
$60,000 debt that she owes to Nina. Mary’s home is sold at auction for $80,000.
Refer to Fact Pattern 19-2. Mary will receive
A.0.
B.$30,000.
C.$50,000.
D.$60,000.
Drake pushes Evon into the path of an oncoming car driven by Flip. Gina tries to rescue
Evon. Drake is liable for any injuries to
A.Evon and Flip but not Gina.
B.Evon and Gina but not Flip.
C.Evon, Flip, and Gina.
D.none of the parties.
Staffing Solutions Corporation is subject to the Social Security Act, which
A.covers only employees who do not receive employer-paid pensions.
B.governs state unemployment compensation funds.
C.provides retirement, survivors, and disability insurance.
D.regulates disputes between unions and management.
Fact Pattern 17-2
Tom draws a check, on his account in State Bank in New York, payable to Digital
Media, Inc., in San Francisco. Digital deposits the check in its account at First National
Bank. First National deposits the check in the Federal Reserve Bank of San Francisco,
which transfers it to the Federal Reserve Bank of New York. That Federal Reserve Bank
sends the check to State Bank.
Refer to Fact Pattern 17-2. When Digital’s bank received the check, it was required to
pass it on
A.before midnight of the next banking day.
B.before midnight of the next day, even if it was not a “banking” day.
C.before noon of the next banking day.
D.within five business days.