Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
In 2012, Sara writes Terror at the Track, a novel about racecar driving. Sara does not
register the work with the appropriate government office. Under federal copyright law,
Saras work is protected
a. for ten years.
b. for twenty years.
c. for the life of the author plus seventy years.
d. forever.
Lenore is the sole proprietor of Mall Kiosks. With respect to contracting for her own
business interests, Lenore is
a. an agent and has the authority.
b. an agent but does not have the authority.
c. not an agent and does not have the authority.
d. not an agent but does have the authority.
Dan writes a check to Emma on his account at First State Bank. The bank dishonors the
check even though Dan has sufficient funds in his account. The bank is
a. liable to Dan only.
b. liable to Dan and Emma.
c. liable to Emma only.
d. not liable to Dan or Emma.
Leslie, an accountant, enters into a contract to provide services to Marty. Leslie does
not finish the work within the contracts deadline. Leslie is
a. liable for breach of contract.
b. not liable, because Leslie is a professional.
c. not liable, because Leslies failure must have been Martys fault.
d. not liable, because the work took longer than foreseen.
Dani asks her cousin Cedric to sacrifice his career, move his home and family, and
provide services, at a lower salary than usual, to Danis new Commercial Shipping
Company. Dani tells Cedric that he will jointly own and run the firm. Cedric agrees.
Later, after the firm gains the benefit of Cedrics services, Dani forces Cedric out.
According to the majority in the Braddock case, these facts sufficiently allege the
elements of a claim for
a. damages based on quasi contract.
b. recovery in fraud.
c. relief from a unilateral mistake.
d. none of the choices.
U-Can-Own-It Corporation sells appliances to less educated consumers, including Vi,
on installment plans. U-Can-Own-It files a suit against Vi when she stops making
payments. Vi claims that the deal is unconscionable. The court will most likely consider
a. the geographic area of the relevant market.
b. the parties relative bargaining power.
c. the quality of related products in the general market.
d. the relation of this deal to those of other customers.
Ben and Ivy enter into a contract under which Ben agrees to cater Ivys wedding in
exchange for a cash down payment. The contract expressly prohibits any transfer of
rights. A contract right may be transferred, however, if the transfer involves
a. a right to receive payment.
b. a right to Bens services.
c. rights under Ivys insurance policy against Bens failing to perform.
d. a right whose transfer is otherwise expressly prohibited by statute.
Speedy Delivery Company buys a white van from Toms Terrific Vehicles, on credit
under a guaranty signed by Ulysses, Speedys president, making him personally liable if
Speedy does not pay. Ulysses is
a. a surety.
b. a lienor.
c. a guarantor.
d. a creditor.
Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The
complaint should include
a. an explanation of the proof to be offered at trial.
b. a motion for judgment n.o.v.
c. a motion for judgment on the pleadings.
d. a statement of the grounds for the court to exercise jurisdiction.
Don, a salesperson for Excel Autos, promises Fern that a certain car will give her a
'smooth ride. Don offers a test drive, which Fern declines. She buys the car but soon
realizes that its suspension is in poor condition. Fern
a. can rescind the contract on the ground of fraud.
b. can rescind the contract on the ground of misrepresentation.
c. can rescind the contract on the ground of mistake.
d. was not defrauded.
Diego performs a contract with Elwood to add a swimming pool to Elwoods property,
but Elwood does not pay. Diego can file a lien on Elwoods property if, from the last
date labor or materials were provided, he acts
a. immediately.
b. within 60 to 120 days.
c. within two years.
d. within a reasonable time.
Thermal Appliances Corporation, a U.S. firm, orally agrees to sell six freezers to Pisa
Pizza, Ltd., in Italy. Thermal fails to deliver. Under the United Nations Convention on
Contracts for the International Sale of Goods (CISG), Pisa Pizza can
a. enforce the agreement.
b. not enforce the agreement because it is not in writing.
c. not enforce the agreement because the CISG does not apply.
d. not enforce the agreement because Thermal is a U.S. firm.
Sam, a citizen of Tennessee, files a suit in a Tennessee state court against United Sales
Corporation, a Wyoming company that does business in Tennessee. The court has
original jurisdiction, which means that
a. the case is being heard for the first time.
b. the court does not have concurrent jurisdiction.
c. the court has standing.
d. the court has venue.
Laurel defaults on a loan owed to Maverick Bank. As a creditor, Maverick may attempt
to place liens on all of Laurels property except
a. motor vehicles used to commute to work.
b. stock in various corporations.
c. items that Laurel selects.
d. vacant commercial property.
Merchant Supply Company and National Discount Stores enter into a contract for a
lease of cash registers. Merchant assures National that it has valid title to the goods.
Under the UCC, a warranty of title arises
a. automatically in most lease contracts.
b. only if the lessee asks for such a warranty.
c. only if the lessor expresses such a warranty.
d. only in conjunction with sales contracts, not lease contracts.
Uri sells 100 cases of vitamins to Wanda, but before she takes physical possession, the
cases are lost. Under the UCC, the parties rights and obligations with respect to the loss
depend on the concept of
a. physical possession.
b. product liability.
c. risk of loss.
d. title.
Metro Daily and New City Newsstand enter into a contract under which Metro agrees
to deliver a certain quantity of newspapers to New City each day. The contract does not
include a price term. In a suit between the parties over the price, a court will
a. determine a reasonable price.
b. impose the lowest market price.
c. refuse to enforce the agreement.
d. return the parties to the positions they held before the contract.
Steven, who is Berthas guardian, convinces her to buy a certain parcel of land from
Christy at a greatly inflated price. Steven may be liable for
a. duress.
b. fraud.
c. puffery.
d. undue influence.
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.
State Bank receives a check drawn by Tricia. The check is received after the established
"cutoff hour. Payment can be postponed without dishonor
a. indefinitely.
b. under no circumstances.
c. unless Tricia personally demands acceptance.
d. until the close of the next business day.
In studying the legal environment of business, Professor Dooleys students also review
ethics in a business context. Ethics includes the study of what constitutes
a. fair or just behavior.
b. financially rewarding behavior.
c. legal behavior.
d. religious behavior.
Ian buys a cell phone in Jiffy Mart, using the means that accounts for more retail
payments than any other. This means of payment is
a. a commercial check.
b. a debit card.
c. a personal check.
d. a trade acceptance.
Opal signs a promissory note payable to the order of Payday Loan Company. The note
states that it is payable "with interest at the legal rate. This note is
a. negotiable.
b. nonnegotiable, because it does not specify a rate of interest.
c. nonnegotiable, because it is a promissory note.
d. nonnegotiable, because it is payable only with interest.
Sid files a suit against Tina. Before going to trial, the parties, with their attorneys, meet
to try to resolve their dispute. A third party helps them to reach an agreement. This is
a. arbitration.
b. litigation.
c. mediation.
d. negotiation.
According to the court in Case 14.1, Maple Farms, Inc. v. City School District of
Elmira, the defense of commercial impracticability will not excuse the performance of a
contractual obligation when there is an increase in the sellers costs while the contract is
in force
a. unless the increase in the sellers costs is substantial.
b. under any circumstances.
c. unless the increase in the sellers costs makes it impossible for the seller to perform
without losing money.
d. unless the increase in the sellers costs was not foreseeable at the time the contract
was formed.
Gabe asks his cousin Francie to sacrifice her career, move her home and family, and
provide services, at a lower salary than usual, to Gabes new Farm-to-Fork Produce
Company. Gabe tells Francie that she will jointly own and run the firm. Francie agrees.
Later, after the firm gains the benefit of Francies services, Gabe forces Francie out.
According to the dissent in the Braddock case, these facts sufficiently allege the
elements of a claim for
a. damages based on quasi contract.
b. recovery in fraud.
c. relief from a unilateral mistake.
d. none of the choices.
Twyla buys a bicycle from U-Pik-It Bike Store, which agrees to keep the bike for Twyla
until she picks it up. Before Twyla gets the bike, a fire destroys the store and the bike.
The loss is suffered by
a. neither Twyla nor U-Pik-It
b. Twyla and U-Pik-It.
c. Twyla only.
d. U-Pik-It only.
Citrus Groves contracts with four food companies to sell its entire crop of oranges.
When half of the crop is lost to an unexpected insect infestation, Citrus must
a. apportion its surviving crop fairly among its customers.
b. breach some of its contracts.
c. buy elsewhere as many oranges as needed to satisfy its contracts.
d. substitute other fruit for the oranges.
Ellen publishes a book titled First Place, which includes a chapter from Franks
copyrighted book Great Racecar Drivers. Ellens use of the chapter is actionable
provided
a. consumers are confused.
b. Ellens use is intentional.
c. Ellens use reproduces Franks chapter exactly.
d. Ellen does not have Franks permission.
Stan is liable for the conversion of Tylers business law textbook
a. if Tyler proves that the book was in Stans possession when it disappeared.
b. if Tyler proves that the book is now in a third partys possession.
c. if Tyler proves that the book was not in his possession when it disappeared.
d. under no circumstances.
Madison is the chief executive officer of Nitro Medico, Inc., which is required to file
certain financial reports with the Securities and Exchange Commission (SEC). Under
the Sarbanes-Oxley Act of 2002, Madison must
a. certify that the reports are complete and accurate.
b. designate a corporate official to assume liability for inaccuracies.
c. do nothing.
d. read the reports and be prepared to answer questions about them.
Dee, an accountant, does not work for Emergent Company, but wrongfully obtains
inside information concerning Emergent. Based on the information, Dee buys and sells
Emergent stock for personal gain. The Securities and Exchange Commission prosecutes
Dee, arguing that she is liable because she stole information rightfully belonging to
another. This argument is
a. the blue-sky theory.
b. the misappropriation theory.
c. the red-herring theory.
d. the tipper/tippee theory.
Mayfair Company offers to sell a certain mall to Galleria Stores, Inc., for a certain price
if it accepts before 10 a.m. Monday. A contract is formed if Gallerias acceptance is
received
a. before 10 a.m. Monday.
b. before midnight Monday.
c. before twenty-four hours of 10 a.m. Monday.
d. within a reasonable time of 10 a.m. Monday.
Sid and Tony enter a contract for a sale of Sids collection of electric guitars. Before the
time for performance, Sid tells Tony that he does not want to deliver the guitars.
Anticipatory repudiation is
a. a breach of contract.
b. a compromise between two parties who are unable to perform.
c. a remedy available only to a breaching party.
d. a remedy available only to a nonbreaching party.
Naomi and Ogden are shareholders of MediCare Residences, Inc. As shareholders, they
must approve
a. conducting a merger.
b. deciding to pursue new business opportunities.
c. terminating a managerial employee.
d. negotiating a contract between management and labor.
A person who holds all rights in property owns the property in fee simple.
Real estate sales contract are often made contingent on the buyer obtaining financing.
An assignment of a negotiable instrument is generally prohibited.
A short-form merger is the legal combination of two or more corporations online.
Some states permit a corporate board to have fewer than three directors.
An individual debtor is allowed to exempt certain property from the bankruptcy.
When an instrument has a forged indorsement, the loss usually falls on the first party to
take the instrument.
The purpose of tort law is to provide remedies when various protected interests have
been invaded.
A sole proprietorship lacks continuity on the death of the proprietor.
Brie is a student at Collegiate University. In need of funds to pay for tuition and books,
Brie asks Dependable Bank for a short-term loan. The bank agrees to make a loan if
Brie will have someone who is financially responsible guarantee the loan payments.
Esperanza, a well-known businessperson and a friend of Bries family, calls the bank
and agrees to pay the loan if Brie cannot. Because of Esperanzas reputation, the loan is
made. Brie is making the payments, but because of illness she is unable to work for one
month. She asks Dependable extend the loan for three months. The bank agrees, raising
the interest rate for the extended period. Esperanza is not notified of the extension (and
thus does not consent to it). One month later, Brie drops out of school. All attempts to
collect the remainder of the loan from Brie fail. Can Dependable assert a claim against
Esperanza on the debt?
Rescission is the substitution of one party to a contract for a third party, who agrees to
assume the contractual duties.
If a customers debit card is lost or stolen and used withoiut permission, the customer
shall be required to pay no more than $50.
A limited liability company must be managed by non-member managers.
Healthy Harvest Company runs a candy and fruit processing and packaging plant. Most
of Healthy Harvests business is done during holiday seasons, especially between
Halloween and New Years Day, and in the spring. The company hires a large temporary
workforce during its busiest times. Occasionally, a position opens for an individual with
highly specialized skills, particularly to operate and maintain the companys inventory
and sales control systems. Can Healthy Harvest hire noncitizens for its temporary,
seasonal work? Can the company hire a noncitizen with special skills for certain jobs?
If so, what procedures must the employer follow in both situations to do this hiring? If
not, how can Healthy Harvest be assured that it is hiring only citizens?
The liability of the members of a limited liability company is limited to the amount of
their investments.
A constructive trust is "constructed by a property owner to fulfill certain unique
functions outside the usual bounds of a trust.
Before filing a registration statement, an issuer must offer to sell securities.
A bilateral mistake is a mutual misunderstanding.
