Conrad and Delilah are employees of AgriBio Feed & Seed Corporation. Under the
Equal Pay Act of 1963, AgriBio can legitimately pay different wages on the basis of
a. seniority.
b. job descriptions.
c. substantial equality of skill, effort, and responsibility.
d. gender.
Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay
Kyles debt if he does not. Ilsa does not get any per-sonal benefit from the agreement.
This contract is enforceable by
a. any party.
b. Jiffy only.
c. Jiffy or Kyle.
d. none of the parties.
Sound Financials Corporation sends daily e-mail ads to its previous customers and
those who have opted to receive the notices.Instable Investments, Inc., sends e-mail ads
to any e-mail address that Instable can find on the Web or otherwise generate.
Refer to Fact Pattern 6-1.In those states with antispam laws, federal law
a. prohibits or regulates the use of spam.
b. requires the use of spam by business entities.
c. bans the use of spam altogether.
d. preempts the application of state law to commercial e-mail with certain exceptions.
William owns a field where he grows cotton. When William sells the field to Grace, he
includes the cotton that is growing in the field. This sale is governed by
a. the Uniform Commercial Code.
b. common law.
c. real property law.
d. personal property law.
From Southeast Asia, Tai Ltd. exports genuine trademarked goods to the United States.
Tai also makes labels and packaging bearing another firms trademark, ships the labels
to another location, and then affixes them to an inferior product to deceive buyers. Tai
sells these goods to retailers who are unaware that the marks are counterfeit. Under the
Stop Counterfeiting in Manufactured Goods Act, it is a crime to
a. import genuine trademarked goods.
b. traffic in counterfeit labels, stickers, and packaging.
c. sell counterfeit versions of brand-name products in foreign countries.
d. unknowingly use a counterfeit mark on goods.
A company can distribute file-sharing software with the object of promoting its use to
infringe copyrights without liability for the resulting acts of infringement by its users.
a. True
b. False
The board of directors of Integral Components Corporation consists of Frida, Gayla,
and Hart. A quorum is the minimum number of these directors
a. who must be at odds in a dispute to call for its resolution.
b. who must be present to validly transact business.
c. that the shareholders may remove from office at any one time.
d. whose positions must be vacant to warrant an election.
Eagle Financial Corporation merges with First Bank Corporation, with Eagle Financial
absorbing First Bank. After the merger
a. a different, new corporation is the surviving corporation.
b. Eagle Financial and First Bank are both surviving corporations.
c. Eagle Financial is the surviving corporation.
d. First Bank is the surviving corporation.
Under the exclusionary rule, all evidence must be included in a criminal prosecution.
a. True
b. False
Cold Stuf, Inc., makes snowboards, which it sells to Deep Freeze Sports Store (DFS).
DFS sells Cold Stuf boards to consumers, in-cluding Ed. Ed is in-jured while using the
board. In a product liabil-ity suit based on strict li-ability, Ed may recover from
a. Cold Stuf only.
b. Cold Stuf or DFS.
c. DFS only.
d. no one.
Jen agrees to buy Kevs Dirt Bike business on the express condition that Valley Credit
Union approves the financing. This approval is
a. a concurrent condition.
b. a condition precedent.
c. a condition subsequent.
d. an implied condition.
Wrugged Woolens, Inc., a U.S. corporation, sets up a specialized marketing
organization in Scotland by appointing a foreign agent. This is called
a. direct exporting.
b. indirect exporting.
c. a joint venture.
d. piracy.
The act of state doctrine does nothave important consequences for firms doing business
in other countries.
a. True
b. False
Attorneys are required to be familiar with well-settled principles of law applicable to a
case.
a. True
b. False
A tenant is not responsible for the ordinary wear and tear of leased premises.
a. True
b. False
Willful violations of the Sarbanes-Oxley Act of 2002 may be subject to harsh penalties.
a. True
b. False
In a fee simple absolute, the owner has the greatest aggregation of rights, privileges,
and power possible.
a. True
b. False
Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires
a. fraudulently appropriating anothers property.
b. obtaining lawful possession of property.
c. physically taking property from its owner.
d. the use of force or fear.
Carrie Ann works at Paper Products, Inc. She considers taking home a few sheets of
stationery so she can write letters to her ailing grandmother. Since Paper Products
produces thousands of sheets of stationery every day no one will miss the few sheets
she takes and company profits will not be affected. Carrie Ann then considers what
would happen if every employee took some stationery home and decides not to take
any. Carrie Ann is being influenced by
a. the categorical imperative.
b. the principle of rights.
c. a cost-benefit analysis.
d. outcome-based ethics.
Primary liability is unconditional.
a. True
b. False
Dhani, an accountant for Eureka, Inc., learns of undisclosed com-pany plan-s to market
a new laptop. Dhani buys 1,000 shares of Eureka stock. He re-veals the company plans
to Fay, who buys 500 shares. Fay tells Geoff, who tells Hu. Both Geoff and Hu buy 100
shares. They know that Fay got her informa-tion from Dhani. When Eureka publicly
an-nounces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit.
Refer to Fact Pattern 26-3. Under the Securities Ex-change Act of 1934, Geoff is most
likely
a. liable for insider trading.
b. not liable because Geoff did not prevent others from profiting.
c. not liable because Geoff did not solicit information from Dhani.
d. not liable because Geoff does not work for Eureka.
Article I, Section 8, of the U.S. Constitution permits Congress to regulate interstate
commerce.
a. True
b. False
Fiona and Dora enter into an oral contract under which Fiona agrees to work on Doras
farm for not less than one week. This contract is enforce-able by
a. Fiona only.
b. Dora only.
c. either party.
d. neither party.
Under federal law, an electronic signature can be as valid as a signature on pa-per.
a. True
b. False
Tyro has the right to drive across Ulas land, which is next to Tyros prop-erty, to reach
an access road. Tyros right is
a. an easement appurtenant.
b. an easement in gross.
c. a profit appurtenant.
d. a profit in gross.
A service mark distinguishes products used, or “put into service, by the government.
a. True
b. False
Caramello Chip & Cookie Corporation (4C) obtains, and gives its employees, a list of
the customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade
secrets, 4Cs conduct is actionable provided
a. consumers are confused.
b. 4Cs conduct is intentional.
c. 4C uses the list.
d. 4C does not have 3Ss permission to use the list.
Special damages are awarded for damage caused by special circumstances beyond a
contract.
a. True
b. False
Sunny Energy Company wants to genetically test its workers for potentially significant,
future health problems. Sunny may
a. discharge employees who test “positive.
b. discriminate against job applicants who test “positive.
c. deny group health insurance for its employees who test “positive.
d. not make employment decisions based on genetic testing.
An agency relationship cannot exist in the absence of a formal agreement.
a. True
b. False
Bill and Stacy enter into a contract that falls within the provisions of the UETA. Under
the UETA, “information that is inscribed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable form is
a. an e-document.
b. an e-signature.
c. an e-transaction.
d. a record.
Eye Appliance Company and Fresh Views, Inc., wish to combine all of their assets,
stock, and personnel into a new firm to be called Goggles Corporation. This is
a. a consolidation.
b. a merger.
c. an exchange of assets.
d. a takeover.
If a buyer breaches a contract while the seller is still in possession of the goods, the
seller can resell the goods and hold the buyer liable for any loss.
a. True
b. False
A bank has no right to charge a customers account for the amount of a stale check.
a. True
b. False
Bobbie claims that Carly breached their contract. Carly responds that she never
intended to enter into a contract with Bobbie. The intent to enter into a contract is
determined with reference to
a. the conscious theory of contracts.
b. the objective theory of contracts.
c. the personal theory of contracts.
d. the subjective theory of contracts.