Rita is appointed as an agent for Superior Sales, Inc. The agency agreement is silent as
to the level of sales that Rita is expected to achieve. She must
a. achieve nothing because the agreement says nothing on the issue.
b. attain the level that Rita achieved with her previous employer.
c. maintain the level Superior attained before Rita became an agent.
d. use reasonable diligence and skill in selling.
Fabiola, Gabriella, or any foreign citizen, can bring a civil suit in a U.S. court
a. for a violation of a treaty of the United States only.
b. for a violation of a treaty of the United States or the law of nations.
c. for a violation of the law of nations only.
d. under no circumstances.
Adult Shoppe in Beach City sells a variety of publications, including child
pornography. Beach City enacts an ordinance prohibiting the sale of such materials.
This ordinance is most likely
a. an invalid restriction of individuals privacy.
b. an unconstitutional restriction of speech.
c. a violation of adults rights to enjoy certain privileges and immunities.
d. constitutional under the First Amendment.
Eager Workers Union and Factory Assembly Company have their dispute resolved in
arbitration. The arbitrator makes a mistake in a conclusion of law. This is a ground for a
court to
a. do nothing.
b. review the merits of the dispute.
c. review the sufficiency of the evidence.
d. set aside the award.
Sunny Energy Corporation engages in ethical behavior solely for the purpose of getting
good publicity and thereby increasing profits. Sunny is
a. acting unethically in its pursuit of publicity.
b. acting unethically in its pursuit of profits.
c. acting unethically in its setting of priorities.
d. not acting unethically.
Esteban and Florian want to form a limited liability company (LLC) to manage their
business, Gordian Nuts. LLC statutes have been adopted in
a. all states.
b. no states.
c. less than one-fifth of the states.
d. only Wyoming and Florida.
Ollie negotiates an order instrument to Phil by
a. assignment of its rights under a contract.
b. delivery with any necessary indorsement.
c. making an unconditional promise to pay.
d. presenting it in response to a demand by B.
Mike receives a payroll check from National Computer Systems, Inc., and indorses it
by signing his name on the back of the check. This is
a. a blank indorsement.
b. a qualified indorsement.
c. a restrictive indorsement.
d. a special indorsement.
Fact Pattern 35-1B
Kit, manager of Long-Term Care Companys office in Metro City, decides to replace the
offices male employees with females. Nia, an assistant manager transferred from a
different Long-Term Care office, refuses to cooperate. Kit retaliates against Nia, who
quits. Within a year, the male employees also quit.
Refer to Fact Pattern 35-1B. Kits action against Nia is most likely
a. not discrimination.
b. discrimination on the basis of gender.
c. discrimination on the basis of experience or skill.
d. discrimination on the basis of effort and responsibility.
One night, Izzy discovers Joe, an intruder, in Izzys home. Izzy shoots and kills Joe.
With respect to criminal prosecution for this use of deadly force, in a state that has a
stand-your-ground law Izzy
a. is presumed innocent or may be exempt from prosecution.
b. must prove that he first told Joe to “Stop! or “Stand your ground!
c. must prove that he first tried to retreat or that his life was in danger.
d. must prove that Joe did not try to retreat or acted without regard for his own life.
Mikhail files a petition in bankruptcy. One of the goals of bankruptcy law with respect
to a debtor who has “gotten in over his head is to
a. encourage the continued use of credit to borrow funds.
b. ensure that co-debtors will continue to guarantee loans.
c. provide relief and protection.
d. shield assets from creditors.
Noggin Development Corporation, a U.S. firm, wishes to participate, but limit its
involvement, in Middle Eastern markets. Noggin empowers Ousai, Ltd., a Dubai firm,
to enter into contracts in certain countries on Noggins behalf. This is
a. a distribution agreement.
b. an agency relationship.
c. indirect exporting.
d. licensing.
Jamal signs a lease with Kelvin to occupy a house on Leech Lake in Minnesota for the
summer. Jamals tenancy is
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a restrictive covenant.
d. a tenancy at will.
Pattys parents give her a car as a graduation present. While Patty spends the summer in
Europe, her friend Rita agrees to keep the car in her garage. On Pattys part, this is
acquisition of property by
a. bailment.
b. capture.
c. find.
d. gift.
Community Recycling, Inc., plans to lay off fifty of its five hundred workers, including
Bev. Bev has a right to continued health-care coverage under Communitys group plan
unless
a. Community changes its insurer.
b. Community completely cancels its plan.
c. Bev files a suit against Community for wrongful discharge.
d. Community decides not to pay Bevs premium.
Glen retains Holly, an attorney, on a contingent-fee basis to seek $100,000 in damages
in a personal-injury suit against Interstate Shipping Corporation. Glen wins. He must
pay
a. court fees and other expenses, but not Hollys fee.
b. Hollys fee, court fees, and other expenses.
c. Hollys fee only.
d. neither Hollys fee nor court fees and other expenses.
KupaJava hires Lola to manage one of KupaJavas seven drive-through coffee stands.
KupaJava agrees to pay Lola a salary, plus commission. KupaJava stipulates the
standards that should be observed, the goals that should be attained, and the methods
that should be used. Lola is most likely KupaJavas
a. employee.
b. independent contractor.
c. principal.
d. work for hire.
The government of the United States and the governments of other nations have the
power to enforce their respective national laws within their borders. The power to
enforce international law within the borders of all nations rests with
a. no court or international organization.
b. the European Union.
c. the International Court of Justice.
d. the United Nations General Assembly.
Green Grocer Corporation makes and markets a variety of processed food products. The
federal agency responsible for enforcing health regulations concerning food is
a. the Consumer Product Safety Commission.
b. the Federal Reserve Board of Governors.
c. the Federal Trade Commission.
d. the Food and Drug Administration.
A contract between Eppie and Fab to lease real property contains an exculpatory clause.
This clause is most likely
a. enforceable as a matter of public policy.
b. enforceable if either party is in a business for essential services.
c. enforceable if the lease involves residential property.
d. unenforceable.
Patsy makes a gift of real estate in her will to Quinn. This gift is
a. a bequest.
b. a devise.
c. a legacy.
d. an abatement.
Ellen publishes a book titled First Place, which includes a chapter from Franks
copyrighted book Great NASCAR Drivers without his permission. Ellens use of the
chapter is actionable
a. only if consumers are confused.
b. only if Ellen and Frank are competitors.
c. only if consumers are confused and Ellen and Frank are competitors.
d. regardless of whether consumers are confused or Ellen and Frank are competitors.
A Rhode Island state statute imposes fines on tire repair businesses whose pneumatic
equipment does not include automatic shut-off switches to protect employees. Bobs
Brakes & Tires, Inc., does not have the switches on its equipment. Carter, a Bobs
employee, suffers an injury that a shut-off switch would have prevented. Carters best
theory for recovery is
a. assumption of risk.
b. a dram shop act.
c. a Good Samaritan statute.
d. negligence per se.
Ginger wants to file a suit against Fred. For a court to hear the case
a. Fred must agree.
b. the court must have jurisdiction.
c. the parties must have no minimum contact with each other.
d. the parties must own property.
To “publish a will means to release it to the media.
Vacation Vistas, Inc., agrees to sell certain acreage to Umiko, who intends to develop a
destination resort. Vacation Vistas repudiates the deal. Umiko sues Vacation Vistas and
recovers damages. She can now obtain
a. an amount in a quasi-contractual recovery.
b. damages representing restitution.
c. specific performance of the deal.
d. nothing more.
Virgil borrows $175,000 from United Finance Bank to buy a home. Federal law
regulates primarily
a. mortgage terms that must be disclosed in writing.
b. oral representations with respect to the terms of a loan.
c. the lowest prices for which real property can be sold.
d. who can buy real property, where they can buy it, and why.
Cara and Dru are officers of EZ Trucking Corporation. As corporate officers, the rights
of Cara and Dru are
a. determined by their employment contracts.
b. specified in state corporation statutes.
c. the same as those of the directors.
d. the same as those of the shareholders.
Over the course of a year, Retail Market, Inc., sells goods from its inventory and one of
its warehouses. In exchange, Retail receives checks and other items that substitute for
cash, which Retail uses to repay a loan from Savers Bank. Article 2 of the UCC governs
a. the checks.
b. the payment of the loan.
c. the sale of the buildings.
d. the sale of the goods.
Will signs a check payable to “cash and gives it to Yves. This check is
a. negotiable.
b. nonnegotiable, because it does not indicate a specific payee.
c. nonnegotiable, because it is not signed by the payee.
d. nonnegotiable, because “Yves is not “cash.
Windstar Heli-Pads, Inc., enters into a contract to employ Valerie as an on-site project
manager for two years. Windstar breaches the contract. Valerie has a duty to
a. do nothing.
b. reduce the damages that Valerie might otherwise suffer.
c. breach the contract with Windstar.
d. sue Windstar to deter others from similar acts.
Hayley signs an instrument payable to the order of InstaCredit, Inc., that allows a holder
to demand payment of the entire amount due, with interest, if Hayley fails to make a
payment. This instrument is
a. negotiable.
b. nonnegotiable, because a holder can move up the payment date.
c. nonnegotiable, because moving up the payment date is conditional.
d. nonnegotiable, because the exact payment date cannot be determined from the face of
the instrument.
Jack signs an instrument that states it is being executed “as per a contract for the sale of
three magic beans dated June This instrument is
a. negotiable.
b. nonnegotiable, because banks cannot easily process commodities.
c. nonnegotiable, because it includes the specific date of a contract.
d. nonnegotiable, because it refers to an express contract.
Interstate Distribution, Inc. (IDI), provides its employees with an e-mail system. IDI
notifies them that it will monitor their communications over the system. Some
employees file a suit against IDI, claiming a violation of privacy. The court is most
likely to hold that, with respect to communications over the e-mail system,
a. the employees did not have a reasonable expectation of privacy.
b. the employer violated the employees privacy rights.
c. federal law prohibits the employers “intentional interception.
d. federal law prohibits the employees privacy claim.
A public authoritysuch as a states attorney generalcan sue to stop a “public nuisance.
Under the principle of comity, a foreign business that deals with a U.S. business may be
subject to U.S. law.
The consideration paid to an insurer to obtain an insurance policy is the premium.
A instrument “payable to the order of bearer is neither an order instrument nor a bearer
instrument.
When the debtor has fully paid the debt, if the secured party perfected the security
interest by filing, the debtor is entitled to a termination statement.
A full warranty requires free repair or replacement of any defective part.
A transfer of contract rights to a third party is an assignment.
An insurance application is part of the insurance contract.
An agent is authorized to act on behalf of a principal in doing business with third
parties.
Congress can regulate all commerce in the United States.
Cities and counties may not restrict emissions from motor vehicles.
An association cannot be a partnership without an express agreement.
To have standing to sue, a party must have been injured or have been threatened with
injury by the action about which he or she is complaining.
For individual debtors, the plan in a reorganization case must be completed before
discharge will be granted.
A bankruptcy court may deny a discharge based on the debtors conduct.