Miranda is a U.S. citizen working in Europe for Tourist Vacations, Inc., a U.S. travel
agency. Tourist fires Miranda for reasons that she believes vio-late U.S.
antidis-crimination laws. Those laws apply
a. extraterritorially.
b. only to signatories of the North American Free Trade Agreement.
c. only to members of the World Trade Organization.
d. only within U.S. borders.
Real estate sales contract are often made contingent on the buyer obtaining financing.
a. True
b. False
The intention to enter into a con-tract is judged by objective facts as interpreted by a
reasonable person.
a. True
b. False
A failure to follow generally accepted accounting principles and gener-ally accepted
auditing standards is proof of a lack of due diligence.
a. True
b. False
A check is a special type of draft.
a. True
b. False
Tender is a timely offer or expression of willingness to pay a debt or perform an
obligation.
a. True
b. False
Compensatory damages compensate the injured party for injuries sustained due to loss
of the contract and also punish the party that breached the contract.
a. True
b. False
Mitchell orally agrees to pay Lorena to plant and harvest a quarter of Mitchells farm
acreage for four soybean seasons. After Lorena prepares the land and plants the first
crop, Mitchell says that their deal is off. Lorena can most likely recover
a. in quasi contract.
b. nothing.
c. in restitution.
d. on the parties existing contract.
Finn and Glenda want to form and do business as Hobby Crafts Corporation. A
corporation is
a. a natural person.
b. a tangible thing.
c. an artificial legal person.
d. a visible radiance.
A recording statute allows deeds to be recorded to give notice to the public.
a. True
b. False
A collateral promise is one made by a third party to assume the debts or obligation of a
primary party to a contract if the primary party does not perform.
a. True
b. False
Megan, an agent for a department store, orders one hundred dresses from Sals Clothing
Shop for the Spring Blossom Sale. There is no specific agreement in the sale contract
indicating when title will pass to the department store. The title will pass to the
department store when
a. Megan signs the contract.
b. Megan and the Sals Clothing Shop agent sign the contract.
c. Sals Clothing Shop physically delivers the dresses to the department store.
d. Megan pays Sals Clothing Shop for the dresses.
Big Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Big Eggs
cannot reasonably ask Omelet Express to pick up the eggs at
a. 1:00 p.m.
b. 2:00 p.m.
c. 3:00 p.m.
d. 4:30 a.m.
Drew and Earl are brothers. They agree to act as guarantors on a loan made by their
sister, Flo. Flo defaults on the payments and Drew re-fuses to pay. Earl pays the debt.
Earl can recover from
a. Drew and Flo under the right of proportionate liability.
b. Drew and Flo under the right of reimbursement.
c. Drew under the right of contribution and Flo under the right of subrogation.
d. no one, because the parties are brothers and sister.
Fay is a member of Garden Groves LLC. Like other members of limited liability
companies, Fays liability for Garden Grovess obligations resembles the liability of
a. none of the choices.
b. an owner of a sole proprietorship.
c. a partner of a partnership.
d. a shareholder of a corporation.
Sly includes in his song “Sneaky a few seconds of Wilys copyrighted sound recording
“Wits without permission. Some federal courts have found that such digital sampling is
a. a violation of copyright law.
b. a “fair use exception to the provisions of the act.
c. nota “fair use exception to the provisions of the act.
d. all of the choices.
Melanie files an employment discrimination suit against Natural Gas Industries Corp.
under Title VII on a disparate-impact theory. To succeed, Melanie must show that a
protected group of people are adversely affected by any of the following except the
employers
a. practices.
b. procedures.
c. tests.
d. seniority system.
Refer to Fact Pattern 28-1. Nikas ownership interest is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. an easement.
A finder of mislaid property is an involuntary bailee.
a. True
b. False
Livewire Company and McCoys Candy, Inc., sign a document that states Livewire
agrees to design a Web page for McCoys, which agrees to pay for the service. This is
a. anexpress contract.
b. an executed contract.
c. an implied contract.
d. a quasi contract.
An agency relationship may occur by operation of law in a family.
a. True
b. False
Elizabeth buys a car from Silas, who is sixteen years old. Elizabeth then wants to sell
the car to her neighbor, John. Elizabeths title to the car is
a. valid.
b. voidable.
c. void.
d. good.
Sara has a flat-screen TV, a Blu-ray disc player, set of computer games and an
investment portfolio that includes stock in the Internet game company Zynga. Saras
intangible property includes
a. the TV and Blu-ray player.
b. the computer games.
c. the Zynga stock.
d. the TV only.
InfoFree Inc., makes and sells devices and services for the circumvention of encryption
software and other technological antipiracy protection. Under the Digital Millennium
Copyright Act, this is
a. a violation of copyright law.
b. prohibited but not a violation of copyright law.
c. a “fair use exception to the provisions of the act.
d. permitted for reconsideration every three years.
Bylaws are the internal rules of management for a corporation.
a. True
b. False
Penalties for aiding or assisting in the preparation of false tax returns are limited to one
penalty per taxpayer per tax year.
a. True
b. False
Martin, a U.S. citizen, feels that a recently enacted federal law is unfair. He assembles a
group of friends and they write a petition to the government. Martin and friends then
stand quietly in front of the White House with signs declaring their belief that the law is
unfair. Under the First Amendment, Martin has a right to
a. petition the government, but not to assemble a group peaceably.
b. assemble peaceably, but not to petition the government.
c. both petition the government and assemble peaceably.
d. neither petition the government nor assemble peaceably.
SurgeStop Company makes electrical cords and other connectors for elec-tronic
devices. Rollo files a product liability suit against SurgeStop, alleg-ing a warning
defect. In deciding whether to hold SurgeStop liable, the court may consider
a. consumers general lack of desire to read the products warnings.
b. the plaintiffs specific lack of desire to read the product warnings.
c. the obvious risks of other products.
d. the obvious risks of this product.
Dewey is the payee for a check written by Fred. Cash Credit Corporation (CCC)
accepts the check from Dewey as part of a payment. CCC cannot become a HDC if
a. the check has been transferred more than once.
b. the check has been outstanding for one week.
c. the check has been outstanding for more than ninety days.
d. there are bankruptcy proceedings against Fred.
It is legally necessary to notify the obligor of any assignment of rights to a third party.
a. True
b. False
A gift must be supported by legally sufficient consideration.
a. True
b. False
All states require members of certain professions to have licenses.
a. True
b. False
Grace purchases three tons of fine merino wool on behalf of Woolen Creations. Woolen
Creations wants the wool to remain in the warehouse where it is being stored until it is
needed. Grace makes an offer for the wool on Monday. The offer is accepted on
Tuesday. The warehouser gives Woolen Creations a warehouse receipt on Wednesday.
Woolen Creations picks up the wool from the warehouse three months after the sale.
Title for the wool passed to Woolen creations
a. on Monday.
b. on Tuesday.
c. on Wednesday.
d. three months after the sale.
Kathy is the secured party in a transaction with Julie, who is the debtor. The collateral is
a 2007 Chevrolet F150 pick-up truck. Kathy files a financing statement in which she
describes the collateral as “a vehicle. To perfect Kathys interest this is
a. not sufficient.
b. sufficient.
c. sufficient as long as the financing statement also includes Julies signature.
d. sufficient as long as the financing statement also includes the location of the
collateral.
Under the Restatement (Third) of Torts, accountants can be held li-able for negligence
to any third parties.
a. True
b. False