Ralph contracts to sell his Double-R Ranch to Samantha on May 1. On April 20, Ralph
tells Samantha that he will not go through with the deal. Samantha can recover
a. the cost of any property that Samantha would find suitable.
b. the cost of a similar, nearby ranch.
c. the Double-R Ranch.
d. nothing.
A court awards a judgment to Alice, who is the creditor, against Ada, who is the debtor.
After the judgment, Alice requests a court order to seize Ada’s property to ensure that
the judgment will be collectible. This is
a. a judicial lien.
b. a writ of attachment.
c. a writ of execution.
d. a violation of most state laws.
Alan, the president of Bayside Investments, Inc., and Colin, Bayside’s accountant, are
charged with a crime, after the police search Bayside’s offices. Under the exclusionary
rule
a. certain Bayside records are excluded from subpoena.
b. certain parties to a criminal action may be excluded from a trial.
c. illegally obtained evidence must be excluded from a trial.
d. persons who have biases that would prevent them from fairly deciding the case may
be excluded from the jury.
Dobry Die & Mold, Inc., enters into a contract with Chet’s Refitting Service to fix
Dobry’s precisely engineered molding equipment. If Chet’s delays the repair for five
days, knowing that Dobry will lose a certain percentage of profit for the delay, Dobry
might be awarded consequential damages to
a. establish, as a matter of principle, that Chet’s acted wrongfully.
b. provide Dobry with funds for a foreseeable loss beyond the contract.
c. provide Dobry with funds for its loss of the bargain.
d. punish Chet’s and set an example to deter others from similar acts.
Beth goes to Dr. Carlton for surgery. Carlton says that Beth should be fully healed
within a week. Beth is not healed within a week. With respect to breach of contract,
Carlton is
a. liable.
b. not liable, because surgery is not a proper subject for a contract.
c. not liable, because the statement was an opinion.
d. not liable, but Beth is excused from paying Carlton.
Congress enacts a statute to outlaw a specific type of anticompetitive business
agreement. Like other laws that regulate economic competition, this law is referred to
as
a. a federal trade commission act.
b. an antitrust law.
c. an interstate commerce act.
d. a suppressive restraint on trade.
Perfect Potato Chip Company makes an offer that Snack Foods Corporation would like
to accept. Under the “mirror image rule” relating to offer and acceptance, an acceptance
a. may include additional terms not contained in the offer so long as they do not
materially alter the agreement.
b. may include additional terms not contained in the offer that will become part of the
agreement if the offeror does not object within a reasonable period of time.
c. must include only those terms and conditions contained in the offer.
d. may contain additional terms as long as all parties agree to the additional terms.
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.
Leonardo contracts to install automatic watering troughs in Kendall’s dairy barn.
Leonardo then becomes seriously ill and contracts with Jake to install the troughs. Jake
is unreliable and never shows up to install the troughs. Kendall can sue
a. no one.
b. Jake only.
c. Leonardo only.
d. Jake or Leonardo.
Dhani signs a check “pay to the order of Etan” drawn on Dhani’s account in First State
Bank and dates the check “May 1.” Etan presents the check to the bank for payment on
December 15. This is
a. a cashier’s check.
b. an overdraft.
c. a certified check.
d. a stale check.
Li”l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has
registered with the government. Under federal trademark law, LCC
a. can register the mark for protection.
b. cannot register a mark that has been used in commerce.
c. has committed trademark infringement.
d. must put off registration until the mark is out of use for six months.
Burt, a mentally impaired person, is asked by Carl to sign a piece of paper that Carl
says is an autograph book. In fact, the document is a note. If later sued on the note by
an HDC
a. Burt must pay the note.
b. Burt’s best defense would be fraud in the execution.
c. Burt’s best defense would be fraud in the inducement.
d. Burt’s best defense would be mistake.
Hu, Ivan, and Juana apply to work for King Meatpacking Company. These individuals’
identities and eligibility to work must be verified by
a. the employer.
b. the individuals.
c. the individuals’ countries of origin.
d. the U.S. Citizenship and Immigration Services.
Wiley incorporates his business as Wiley Wire Corporation in Texas. He and his group
of shareholders intend to make a profit from their sales of fencing wire. Wiley Wire
Corporation is
a. a nonprofit corporation.
b. not a corporation.
c. an alien corporation.
d. a private corporation.
To obtain a business license, Bess writes a check to a certain state agency. Bess is
a. the drawee.
b. the drawer.
c. the indorser.
d. the payee.
Laney is a resident of Maine. Delacorte is a Canadian. They dispute the ownership of
Petite Isle, an island in North Rapids River on the border between Canada and the
United States. The diversity of the parties’ citizenship could serve as a basis for
a. federal jurisdiction.
b. general jurisdiction.
c. limited jurisdiction.
d. universal jurisdiction.
Fact Pattern 21-2
Sid, a director of Tech Software Company, learns that a Tech engineer has developed a
new, exciting video game. Sid buys Tech stock and tells his friend Uri, who also buys
Tech stock. When the new game is released three weeks later, Sid and Uri sell their
stock for a big profit.
Refer to Fact Pattern 21-2. Regarding Sid’s profits on the purchase and sale of Tech
stock, under Section 16(b) of the Securities Exchange Act of 1934 Tech may recapture
a. all of Sid’s profits.
b. half of Sid’s profits.
c. 10 percent of Sid’s profits.
d. none of Sid’s profits.
Which of the following can not be registered as a trade name?
a. Pear Blossom, Certified Public Accountant
b. Apples & Oranges, Investment Partnership
c. Banana Republic Clothing, Inc.
d. Strawberries
A barge owned by Oceanic Shipping Company discharges some of the oil contained in
its hold into the sea and onto the shore. Under the Oil Pollution Act, this is most likely
a. a violation.
b. not a violation because an oil discharge is not pollution.
c. not a violation because a floating barge is not a stationary source.
d. not a violation because a ship’s hold is not a point source.
Valley Tack Shop signs a contract with Gary’s Boots and Saddles for delivery of five
saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written
contract must designate
a. the method of delivery.
b. the method of payment.
c. the quantity of saddles.
d. the seller.
Finance Bank receives a check drawn on the account of Get-Rich Industries, Inc., one
of the bank’s customers, at 3 p.m. Friday. Hildy, the presenter of the check, is not one of
the bank’s customers. The bank uses deferred posting with a 2 p.m. cutoff hour. If it
decides to dishonor the check, it must do so by midnight
a. Saturday.
b. Sunday.
c. Monday.
d. Tuesday.
It is possible to copyright an idea.
Clear Creek Corporation enters into a contract with Brightside Management Associates
to manage and maintain Clear Creek’s apartment complex. Their contract provides that
neither party can recover damages for a non-fraudulent or unintentional breach. This is
a. a limitation-of-liability clause.
b. an exculpatory clause.
c. a liquidated damages clause.
d. a quasi contract.
Leona enters into a contract with Munchies Bakery to cater a sales conference. When
the conference is postponed indefinitely, Leona asks a court to cancel the contract and
return the parties to the positions that they held before its formation. This request
involves
a. specific performance.
b. an injunction.
c. rescission.
d. an action that the court cannot order.
Robert uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of
wire fraud. He can be punished by
a. imprisonment for not more than one year.
b. imprisonment for up to thirty years and fines of up to $1 million.
c. fines for not more than $50,000.
d. death.
Alf rents an apartment. The lease does not specify how long it will last, but it does
specify that Alf must pay rent every month. Alf has
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a tenancy at will.
d. no tenancy.
Justice For All, a political organization, files a claim to challenge a Colorado statute that
limits the liberty of all persons to broadcast “annoying” radio commercials. This claim
is most likely based on the right to
a. equal protection of the law.
b. indictment.
c. procedural due process.
d. substantive due process.
Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park
Carousel. Before either party begins to perform, they agree to cancel their deal. This is
a. substantial performance.
b. mutual rescission.
c. accord and satisfaction.
d. novation.
Rafi, a director of Super Service Station Corporation, does not attend a board meeting
for three years. During that time, Twyla, Super’s president, makes improper loans that
cost the company $100,000. Rafi is most likely
a. liable for negligence or mismanagement.
b. liable for violation of the business judgment rule.
c. not liable because missing meetings is an honest mistake.
d. not liable because missing meetings is only poor judgment.
The state of Illinois enacts a usury statute. The purpose is to
a. establish a maximum rate of interest that may be charged for loans.
b. establish a minimum rate of interest that may be charged for loans.
c. prevent the misuse of money advanced as loans.
d. prevent the misuse of money paid back on loans.
Players Video Game Centers, Inc., wants to issue stock of $1 million in a single
offering. Players must provide all investors with material information about itself, its
business, and its securities if
a. all investors are accredited.
b. under any circumstances.
c. any investors are accredited.
d. any investors are unaccredited.
Vending Products Company operates a vending machine manufacturing plant on
Wandering River. Discharging pollutants from the plant into the river can result in
a. civil penalties and criminal penalties.
b. civil penalties only.
c. criminal penalties only.
d. no penalties.
A pipe in Gert’s house springs a leak. Gert contracts with Holly’s Plumbing &
Construction Company to repair the pipe and fix the damage to Gert’s house. Gert pays
10 percent of the price in advance. Holly’s does the work, but Gert refuses to pay the
rest of the price. What can Holly’s do, and how is it done?
Private parties can sue violators of the Securities Act of 1933.
A corporation is an artificial being.
A bank has no right to charge a customer’s account for the amount of a stale check.
Patents are not considered personal property.
The key federal statute regulating the credit and credit-card industries is basically a
disclosure law.
A surety can never assert fraud as a defense.
Any relevant material, except information stored electronically, can be the object of a
discovery request.
If a contract is fully performed by all parties to it, then it is presumed to have been
ratified.
A promissory note can be a negotiable instrument.
A borrower has a right to rescind a mortgage within three business days.
The First Amendment protects defamatory speech.
In most bailments, the bailee can retain the goods given by the bailor and return
equivalent property.
Consideration is the value given in return for a promise.
Some risks are obvious but that does not necessarily excuse a business owner from the
duty to protect customers from foreseeable harm.
Private parties cannot sue violators of Section 10(b) and Rule 10b-5.
Child-support debts will be suspended by a voluntary bankruptcy filing.
Obeying the law does not necessarily fulfill all ethical obligations.
Damages are never paid in money.