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Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the
property, including extracting silver from an existing mine, for life. Patsy also has the
right to lease the land for a period not to exceed her life. Patsy's ownership interest is
a. a fee simple absolute.
b. a profit.
c. a life estate.
d. the power of eminent domain.
Ula wants to initiate a suit against Valley Farms by filing a complaint. The complaint
should include
a. an explanation to refute any defense the defendant might assert.
b. a motion for summary judgment.
c. a motion to dismiss.
d. a statement of the facts necessary to show Ula is entitled to relief.
Michelle gives out a business card with an e-mail address on it. It is reasonable to infer
that Michelle has consented to
a. transact business electronically.
b. submit to the jurisdiction of any selected forum.
c. accept and respond to any correspondence sent to that address.
d. nothing.
Principal Resources Corporation contracts with Quality Construction to build an
addition to Principal's corporate office building. Quality contracts with Rite Supply
Company for materials for the addition but refuses to pick up the materials. Meanwhile,
Principal hires Skye, a certified public accountant, to work in its cost-accounting
division as an employee, with no authority to hire or supervise others. Skye asks Theo,
an outside experienced accountant, to advise her on certain accounting procedures but
fails to pay Theo for the service. Principal also contracts with Uma, a salesperson, to
solicit orders for its products in a designated territory. Uma obtains an order from Verity
Industries, Inc., which is assured the order will be filled soon. But Uma does not follow
through with the paperwork and fails to submit the order to Principal. Verity suffers a
loss. Rite Supply, Theo, and Verity Industries claim Principal is liable under agency law.
Discuss fully whether an agency relationship was created by Principal with Quality
Construction, Skye, or Uma.
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which
the court renders a verdict. The case is appealed to an appellate court. After its review
of Kelly v. Lewis, the appellate court upholds the lower court's verdict. The appellate
court has
a. affirmed the case.
b. reversed the case.
c. remanded the case.
d. reversed and remanded the case.
Bilt-Well Construction Corporation makes a side payment to a government official in
Nigeria to obtain a contract. In the United States, this is
a. illegal and unethical.
b. illegal but not unethical.
c. unethical but not illegal.
d. legal and ethical.
Nero signs a check "pay to the order of Olive" drawn on Nero's account in Plum Bank.
Olive signs the back of the check. Secondary liability on this check extends to
a. Nero and Olive only.
b. Nero and Plum Bank only.
c. Nero only.
d. Plum Bank only.
Fact Pattern 25-1
Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo
writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair
the car properly, issues a stop-payment order.
Refer to Fact Pattern 25-1. Capital Bank
a. is liable to Fix-It for the amount of the check.
b. must stop payment if Capital has a reasonable time to act.
c. need not stop payment unless Echo had a valid reason to act.
d. need not follow Echo's order unless the check was certified.
Barbara and Johann are parties to a contract. They agree on a novation. The novation
requires
a. the existence of a previous, valid obligation.
b. consideration greater than $5,000.
c. performance of the original contract by all of the parties.
d. an accord and satisfaction.
Research Products, Inc., and Scientific Tools Corporation enter into a contract online in
a state that has enacted a modified version of the UETA in which a procedure for the
use of e-signatures is different from that provided in the E-SIGN Act. The alternative
procedure is effective if it is
a. consistent with the E-SIGN Act
b. inconsistent with the E-SIGN Act.
c. significantly different from the E-SIGN Act.
d. sufficiently distinctive from the E-SIGN Act.
Under the E-SIGN Act, Phillip may use an e-signature in all of the following instances
except
a. opening an account with a financial institution.
b. obtaining a mortgage.
c. buying insurance.
d. signing his will.
Order Processing Corporation and Pinpoint Data, Inc., enter into a contract online in a
state that has enacted an unmodified version of the UETA. With regard to the E-SIGN
Act
a. the E-SIGN Act does not preempt this version of the UETA.
b. the E-SIGN Act preempts this version of the UETA.
c. the "fit" between the acts is an issue for a court to determine.
d. the two acts "cancel" each other's application.
National Home Products, Inc., in its advertisements, makes false claims about its own
products and about the products of its competitors. National may be subject to sanctions
for the false claims about
a. its products only.
b. its competitors' products only.
c. its products and its competitors' products.
d. none of the choices.
Kingston promises to pay Melina $500 to install a sump pump in his warehouse. Melina
completes the installation. The act of installing the pump
a. imposes a moral obligation on Kingston to pay Melina.
b. imposes no obligation on Kingston unless he is satisfied with the job.
c. is not sufficient consideration because it is not goods or money.
d. is the consideration that creates Kingston's obligation to pay Melina.
Spa Selectiva Company makes and sells beauty salon supplies. By selling its product at
prices substantially below the normal cost of production, Spa Selectiva hopes to drive
its competitors from the market. This is
a. market power.
b. predatory pricing.
c. price discrimination.
d. price-fixing.
Fact Pattern 33-3
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 33-3. Nina may recover
a. $0.
b. $30,000.
c. $50,000.
d. $60,000.
Owen signs an installment contract with Pixel Video Store to finance the purchase of a
new TV for $4,999. This transaction is subject to
a. no federal law.
b. the Fair Credit Reporting Act.
c. the Telecommunications Act.
d. the Truth-in-Lending Act.
Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver
t-shirts emblazoned with video game characters in exchange for Bling's promise to pay.
Avatar delivers. The contract is
a. voidable.
b. executed.
c. executive.
d. executory.
Paula develops a new espresso machine, which she names "Sure Shot." She also writes
the operating manual. Paula can obtain trademark protection for
a. the espresso machine.
b. the "newness" of the espresso machine.
c. the name.
d. the operating manual.
Moore Properties, Inc., offers in writing to sell to Lawn Acres Development
Corporation a certain half-acre of land for "$112,000." After Lawn Acres signs the offer
in acceptance and returns it, Moore discovers that the price should have been stated as
"$121,000."
Refer to Fact Pattern 13-1. Moore's misstatement of the price is
a. a bilateral mistake.
b. a fraudulent misrepresentation.
c. a unilateral mistake.
d. unconscionable.
Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and
onto Bella's land. Doyle commits trespass if he
a. does not have Bella's permission to drive on the property.
b. drives onto the property for recreational purposes.
c. harms the property in a material way.
d. harms the property in any way.
Nero and Olav each buy certain quantities of oil to sell to Petro Refinery, and agree to
share storage costs until Petro can take delivery. The oil is commingled so that Nero's
oil cannot be distinguished from Olav's. This is
a. accession.
b. confusion.
c. conversion.
d. irresolution.
Any decision by the management of Fast-Food Franchise Corporation may significantly
affect its
a. operators only.
b. operators, owners, suppliers, the community, or society as a whole.
c. owners only.
d. suppliers, the community, or society as a whole only.
Quinn is an employee of Regional Industries, Inc. Quinn is threatened with a discharge
when he refuses a transfer to a Regional department in which several employees
suffered serious injuries from exposure to hazardous chemicals. If Quinn acted in good
faith, he may be entitled to protection from discharge under
a. the Consolidated Omnibus Budget Reconciliation Act.
b. the Family and Medical Leave Act.
c. the Occupational Safety and Health Act.
d. the state workers' compensation act.
The credit department of Mega-Mart often calls Nora at work about an overdue bill.
Nora's employer objects. This is a violation of
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
A unilateral refusal to deal can violate antitrust laws if the refusal
a. is likely to have an anticompetitive effect on a particular market.
b. results in lower prices for consumers.
c. provides no economic benefits for consumers.
d. is likely to increase competition.
Susan takes her car to Ken's repair shop and asks him to fix the car's brakes. Ken
completes the work and sends Susan a bill for $100. Susan refuses to pay so Ken
refuses to return Susan's car. Susan can probably successfully sue Ken for
a. battery.
b. conversion.
c. trespass to property.
d. none of the choices.
Jake is charged with embezzlement. Embezzlement may be committed without
a. a criminal act.
b. a criminal intent.
c. taking property from its owner.
d. the use of force or fear.
Philip is elected as a director for Fatless Foods, Inc. His term of office will most
probably last for
a. three months.
b. six months.
c. nine months.
d. one year.
Gert's Horse Farm owes money to High Sierra Saddle & Tack, which has a security
interest in Gert's gear. Gert's files for bankruptcy on May 1. To collect on the debt, High
tries to take possession of the gear on May 5. High can obtain
a. any of Gert's assets.
b. any of Gert's exempt assets.
c. Gert's gear only.
d. none of Gert's assets due to the automatic stay.
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.
Jeff's grandmother is the payee of a promissory note for $7,500. Jeff's grandmother
gives Jeff the note for his sixteenth birthday. Jeff is
a. an HDC.
b. not an HDC, because he received the note as a gift.
c. not an HDC, because he is a minor.
d. not an HDC, because the note was for less than $10,000.
The assets in Doug's estate, including the value of his home on Elm Street and its
contents, are insufficient to pay in full all of the gifts provided for in his will. His heirs
will receive
a. full payment in order of seniority until the assets are exhausted.
b. nothingthe assets will descend to the state.
c. reduced benefits.
d. the option of distributing the assets according to their wishes.
Iggy uses his computer to break into Hye Financial Center's computer. Iggy is
a. a hacker.
b. a hooter.
c. a huckster.
d. a hiccup.
Title VII of the Civil Rights Act only prohibits intentional discrimination.
If the corporate directors fail to sue in the corporate name to redress a wrong suffered
by the corporation, then the shareholders can do nothing.
Blue sky laws are state laws that regulate and supervise investment companies for the
protection of the public.
A house is an example of personal property.
A prepayment penalty clause requires the borrower to pay a penalty if the mortgage is
repaid in full within a certain period.
Procedural due process requires that any government decision to take a person's
property must be made fairly.
Before a seller can have an insurable interest in goods, the goods must be identified to a
contract.
A tenancy at sufferance is created by a tenant's wrongfully retaining possession of
property.
Commercial banking practices consider a check that has been outstanding for three
months to be a stale check.
Equitable redemption allows a defaulting borrower to gain title and regain possession of
a property.
Child-support debts will be suspended by a voluntary bankruptcy filing.
Ethical reasoning is the process through which an individual links his or her moral
convictions or ethical standards to the particular situation at hand.
Under the Statute of Frauds, all contracts induced by fraud must be in writing to be
enforceable.
Parents are ordinarily liable for the contracts made by their minor children, whether or
not they are minors.
A record does not have legal effect under the UETA unless someone signs it.
