Dizzy is not Edwinas agent but enters into a contract with Frida on Edwinas behalf.
Edwina later contacts Frida to approve the contract. This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
Peak & Vale Accountants provides other firms with accounting services. Questions of
what is ethical involve the extent to which Peak & Vale has
a. a legal duty beyond those duties mandated by ethics.
b. an ethical duty beyond those duties mandated by law.
c. any duty beyond those mandated by both ethics and the law.
d. any duty when it is uncertain whether a legal duty exists.
Mariah takes off her ring and places it on her desk while she works. Without her
knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away.
Nita has likely committed
a. burglary.
b. forgery.
c. larceny.
d. no crime.
Lena borrows from Mac and Nicol, using the same collateral for both loans. Only Nicol
has a perfected security interest. Lena defaults on both loans. The party with first rights
to the collateral is
a. Lena.
b. Mac and Nicol, in proportion to Lenas debt to each.
c. Mac only.
d. Nicol only.
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.
WiFi Corporation, a U.S. firm, signs a contract with Bueno Computadores, Ltd., an
Argentinean firm, for a shipment and payment for WiFis goods. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Studious Review Guides, Inc., has the power to control the market for its product.
Antitrust law regulates
a. how Studious acquired its power and what it does with it.
b. neither how Studious acquired its power nor what it does with it.
c. only how Studious acquired its power.
d. only what Studious does with its power.
Fact Pattern 16-1
General Leasing Company (GLC) buys equipment for use as inventory, borrowing $1
million from Helpful Finance Corporation for a security interest in the equipment. The
next day, GLC borrows $500,000 from Interstate Bank, also for a security interest in the
equipment. GLC defaults on the loans.
Refer to Fact Pattern 16-1. Suppose that two weeks after GLC takes possession of the
equipment, Helpful and Interstate file financing statements, with Interstate filing first.
In that circumstance, the party with priority to the equipment is
a. GLC.
b. Helpful and Interstate proportionately.
c. Helpful only.
d. Interstate only.
Sol is chairman of the board of Tasty Foods Corporation. Uma, a consumer, falls sick
after eating a Tasty product. Uma sues Tasty, and Sol individually. Tasty may pay Sals
legal fees
a. only if Sol wins the suit.
b. only if Tasty wins the suit.
c. only if Uma wins the suit.
d. regardless of the outcome.
Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project
proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may
recover
a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
Fact Pattern 25-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm,
to facilitate an international sales contract to buy resources from Lapland Mining, Ltd.,
a Finnish company.
Refer to Fact Pattern 25-1. First State Bank
a. is responsible for making sure that the parties perform the contract.
b. will make payment once the transaction has been completed.
c. will make payment when Lapland presents the proper documents.
d. none of the above.
Based on Nans conduct, Odel reasonably believes that Poppy has the authority to act on
Nans behalf even though Poppy does not have the actual authority to do so. In this
circumstance, Poppy has
a. apparent authority.
b. express authority.
c. implied authority.
d. no authority.
Current City (CC) is a retail seller of television sets. CC sells Dhani a $3,000
large-screen, high-definition, LED set on a retail installment security agreement in
which he pays $100 down and agrees to pay the balance in equal installments. CC
retains a security interest in the set, and perfects that interest by filing a financing
statement centrally. Two months later, Dhani is in default on the payments to CC and is
involuntarily petitioned into bankruptcy by other creditors. Discuss CCs right to
repossess the TV set and whether CC has priority over the trustee in bankruptcy.
Even after a tenant sublets leased premises, the tenant may be obligated to pay rent.
A partner may compete with the partnership without violating the fiduciary duties that
he or she owes to the firm.
According to utilitarianism, an action that affects the majority adversely is morally
wrong.
Under the mailbox rule, no acceptance is valid until it is received.
Only outsiders who would ordinarily be deemed fiduciaries of the corporations in
whose stock they trade can be liable for insider trading.
Promises of fact made during the bargaining process are not express warranties.
A drawer is primarily liable on an instrument.
A contract between parties residing in different countries is subject to United Nations
Convention on Contracts for the International Sale of Goods.
To establish a prima facie case of discrimination under Title VII, a plaintiff must show
that discriminatory intent motivated an employers decision.
One guideline to evaluating the ethics of a particular action is to “let your conscience be
your guide.
A person who receives an instrument as a gift normally possesses the rights of an HDC.
Firing a worker who refuses to perform an illegal act violates public policy.
Under the covenant of quiet enjoyment, a landlord promises that a tenant will not be
disturbed in the possession of the premises.
For a party to take by adverse possession, the partys possession must not be hostile to
the true owners rights.
Life tenants are persons who share ownership rights simultaneously.
The Securities Exchange Act of 1934 provides for continuous, periodic disclosures by
publicly held corporations.
Specific performance is the remedy customarily used when one party has breached a
contract for personal services.