To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, an online
dispute resolution (ODR) service. This limits these parties’ recourse to the courts
a. not at all.
b. until the ODR service has issued a decision.
c. with respect to any dispute arising between them.
d. with respect to this dispute only.
Frugal Insurance Company sells a policy to Grover Company, insuring the life of one of
Grover’s key executives. When the executive dies, Frugal refuses to pay, noting that it
was not licensed to sell insurance in Grover’s state and arguing that thus, its policy
cannot be enforced. Grover can recover
a. the amount of the policy from Frugal in full.
b. the amount of the premiums that Grover paid to Frugal.
c. as much of the amount of the policy from Frugal as will cover Grover’s costs.
d. nothing.
Fresh Produce, Inc., and Great Grocery Stores dispute the interpretation of an
ambiguous phrase in their contract. In a suit between the parties to construe the
contract, a court may accept evidence of
a. consistent additional terms only.
b. consistent additional terms and contradictory terms only.
c. contradictory terms only.
d. anything extrinsic to the contract.
In a suit against Knut, Leon obtains an injunction. This is
a. an order to do or to refrain from doing a particular act.
b. an order to perform what was promised.
c. a payment of money or property as compensation.
d. the cancellation of a contract.
The United States and other members of a certain organization agree to grant normal
trade relations status to each other with regard to imports and exports. This organization
is
a. the Convention on Contracts for the International Sale of Goods.
b. the International Export-Import Bank.
c. the United Nations.
d. the World Trade Organization.
A trade association
a. is always a per se violation of Section 1 of the Sherman Act.
b. may be legal if it is sufficiently beneficial to both the association and the public.
c. is an innovative, legally efficient approach to doing business.
d. always creates illegal territorial or customer restrictions.
Like the bylaws of other corporations, the bylaws of Retail Sales, Inc.,
a. establish the operating name of the corporation.
b. establish the value and classes of corporate stock.
c. were adopted at its first organizational meeting.
d. were submitted for approval to the public official in charge.
Finance Professionals Union represents the workers of Business & Commerce Banking
Corporation. The management of the firm refuses to bargain with the union. This
violates
a. federal labor law.
b. state right-to-work laws.
c. federal wage and hour laws.
d. no federal or state law.
The Arizona Supreme Court rules against Jennifer in a case against Kut Rate Stores,
Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask
the Court to issue a writ of
a. appeal.
b. certiorari.
c. jurisdiction.
d. summons.
Organic Farms Company contracts to buy two tracts of land from Prime Bottomland,
Inc. Both parties believe that the two tracts are adjacent, but in fact they are not. Prime
Bottomland is still willing to sell the land, but under these circumstances the deal would
adversely affect Organic Farms. Because of the parties’ belief about the adjacency of the
property, their contract is
a. unavoidable.
b. unconscionable.
c. unenforceable.
d. voidable.
Don, a U.S. citizen, is the owner of Egrets Unlimited, Inc. Egret’s competitors include
Feathered Friends Company (FFC), which is owned by Greg and Huey. The Bill of
Rights embodies a series of protections for Don against types of interference by
a. FFC and its other competitors only.
b. FFC, Greg, Huey, others, and the government.
c. Greg, Huey, and other private individuals only.
d. the government only.
Middling Credit Corporation asks Little Supply Company to agree to a security
agreement that provides for coverage of the proceeds from the sale of after-acquired
property. This is
a. a first-in-time rule.
b. a floating lien.
c. a funds guaranty.
d. in violation of secured transactions law.
Organic Cheeses, Inc., Fine & Fresh Foods Company, and Healthy Whole Foods, Inc.
organize together to exchange information and share advertising. This is an example of
a
a. trade association.
b. resale price maintenance agreement.
c. monopoly.
d. territorial restriction.
On behalf of the rock group Uno, their manager Thalia agrees to a performance in
Seaside Amphitheater on July 4. Rex, acting for Seaside, sends a written copy of the
agreement to Thalia to be signed. If Thalia signs the copy, the parties will have
a. an express contract.
b. an implied contract.
c. an implied-in-law contract.
d. no contract.
Mello Coffee Shops, Inc., sells a franchise to Noah’s Arch, a caf. Mello is
a. a franchisee.
b. a franchisor.
c. an agent.
d. a principal.
Grady enters into a contract to buy 440 acres from Hollis to expand Grady’s ranch.
Hollis breaches the contract. Grady’s normal remedy is
a. damages.
b. reformation.
c. rescission.
d. specific performance.
Kathy and John decide to form a partnership to sell fish food to local fish farms for the
next five years. To be enforceable under the Statute of Frauds, the partnership
agreement
a. must be signed by a notary public.
b. must be in writing.
c. must be oral.
d. cannot involve a third party.
Hi-Tech Company contracts to sell fiber optic cable to Internet Services, Inc. Hi-Tech
may bring an action to recover the purchase price and incidental damages if Internet
a. accepts the cable and pays for it.
b. accepts the cable but does not pay for it.
c. rejects the cable.
d. revokes acceptance of the cable.
Yves is an accountant charged with negligence by Zesty Soup Company, a client. Yves
may successfully defend against the claim if he can show that
a. scienter was lacking.
b. he complied with all International Financial Reporting Standards.
c. the negligence was not the proximate cause of the client’s losses.
d. the negligence was only contributory.
Fun Toyz Corporation makes skateboards, which it sells to consumers, including Holly
and Ira. Due to a defect, Holly is injured while using her new board. Ira’s board has the
same defect, but he is not injured. In a product liability suit based on strict product
liability, Fun Toyz may be liable to
a. Holly and Ira.
b. Holly only.
c. Ira only.
d. no one.
Myles obtains a property insurance policy from Nova Insurance Company for Myles’s
restored 1957 Chevy. Nova can cancel the policy
a. if Myles increases the risk assumed by the Nova.
b. if Myles files a claim under the policy.
c. if Myles appears as a witness in a case brought against Nova.
d. under no circumstances.
Jen signs a check “pay to the order of Key” drawn on Jen’s account in Little Bank to
buy Key’s car. If there are insufficient funds in Jen’s account to cover the amount of the
check, but the bank pays it, this creates
a. a cashier’s check.
b. an overdraft.
c. a stale check.
d. a stop-payment order.
Chet, a minor, signs a contract with Porsha, an adult. The contract is
a. neither void nor voidable.
b. voidable at the option of Chet.
c. void as a matter of law.
d. voidable at the option of Porsha.
Maggie is a surety for Juli’s debt to Bill. Bill and Juli decide to make material changes
to the original contract without consulting Maggie. Maggie is
a. still bound by the contract.
b. discharged completely.
c. still bound by the contract, but allowed to make additional changes to the contract.
d. still bound by the contract unless she contests it within 30 days of the changes.
Jackson is accused of a crime. Jackson can refuse to provide information about his
allegedly criminal activities
a. if he suspects the information will be used to prosecute him.
b. if the police do not promise to keep the information confidential.
c. if the information is “fruit of the poisonous tree.”
d. under no circumstances.
SuperBumperCars, Inc. requires all customers to sign a release that contains a clause
that releases SuperBumperCars from all liability in the event of an injury occurring
during a bumper car ride, no matter who is at fault. This is an example of
a. a covenant not to compete.
b. an adhesion contract.
c. an exculpatory clause.
d. an illusory promise.
Grandview Office Suites, Inc., merges with Hilltop Commercial Properties, Inc. Only
Hilltop remains.
Grandview held rights in certain real property. After the merger, Hilltop acquires the
rights
a. automatically.
b. only after completing certain additional statutory procedures.
c. only Grandview’s former shareholders expressly approve.
d. only after a required formal transfer.
Flip is a member of Great States Trucking LLC. Flip’s relationship to Great States ends,
but the firm continues to do business. This is
a. dissociation.
b. dissolution.
c. winding up.
d. wrongful.
Jane develops a new color of lipstick. To market her lipstick, Jane uses a computer
design program to show a famous model using Jane’s lipstick. Jane does not ask the
model’s permission. The model can sue Jane for
a. battery.
b. fraudulent misrepresentation.
c. defamation.
d. appropriation.
Clu, Dolf, and Elton do business as Fertile Valley Farm. Clu’s relationship to the firm
ends, but it continues to do business. This is
a. dissociation.
b. dissolution.
c. winding up.
d. wrongful.
Elinor performs ten hours of house cleaning for Zack in exchange for a promissory note
for $400. At the time that Elinor accepts the note, she is aware that bankruptcy
proceedings are being filed against Zack. Elinor
a. can obtain HDC status.
b. cannot obtain HDC status, because she knows that there are bankruptcy proceedings
against Zack.
c. cannot obtain HDC status, because she did not fulfill the value requirement.
d. cannot obtain HDC status, because she did not fulfill the good faith requirement.
Robert enters into a contract with Claire. Claire agrees to paint Robert’s living room for
$500. Claire is the
a. obligor.
b. obligee.
c. assignee.
d. assignor.
Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting
the offer by March 1. Signe may revoke the offer
a. before Thomas accepts the offer.
b. before March 1, whether or not Thomas has accepted the offer.
c. only after Thomas accepts the offer.
d. only after March 1.
The most common way to discharge one’s contractual duties is by breach of contract.
An instrument payable “with ten hours of services” is negotiable.
Each partner is deemed to be an agent of the other partners and of the partnerships.
Even after a tenant assigns a lease, the tenant may be obligated to pay rent.
Whether a contract with an unlicensed professional is legal and enforceable depends on
the purpose of the licensing statute.
A tenant cannot withhold rent for any reason.
Undue influence can occur when a named beneficiary is in a position to influence the
making of a will.
Misrepresentation of a material fact can occur by words or action.
In most illegal contracts, both parties are considered to be equally at fault, and neither
party can enforce it or recover damages under it.
Employers can treat their employees more or less favorably based on their religious
beliefs or practices.
Secured transactions are governed by the Uniform Commercial Code (UCC).
An offer to form a bilateral contract is accepted only by promising to perform the
contract performance.
An artisan’s lien is effective only if a creditor has possession of the property.
A franchise is a contractual arrangement.
A crime can be committed only against persons.
Once a discharge is granted, it may not be revoked, even if, for example, a debtor
concealed property to defraud a creditor.
In contract law, the term consideration refers to the serious thought that underlies a
party’s intent to enter into a contract.