Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death
of ether owner, that owners interest in the stock passes to the surviving owner. This is
a. a joint tenancy.
b. a tenancy by the entirety.
c. a tenancy in common.
d. ownership in fee simple absolute.
Mary Kate Corporation allows Ashley Company to use Mary Kates trademark as part of
Ashleys domain name. This is
a. a license.
b. a likelihood of consumer confusion.
c. cybersquatting.
d. trademark dilution.
Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its
closest competitor is Fluid Systems Company, another Florida firm. The two firms
agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north
Florida. This is
a. a group boycott.
b. a market division.
c. a joint venture.
d. an exclusive-dealing contract.
Celfone Corporation is required to file a registration statement with the Securities and
Exchange Commission. This statement must contain
a. a copy of prospectuses to be provided to investors.
b. a description of securities being offered for sale.
c. a record of pre-registration sales in securities.
d. a sample of advertising to be used to attract investments in Celfone.
Pep Paints agrees to sell to Quality Painters Grade A-1 latex outdoor paint to be
delivered May 8. On May 7, Pep tenders Grade B-2 paint. Quality rejects the Grade B-2
paint. Two days later, Pep tenders Grade C-3 paint with an offer of a price allowance.
Pep has
a. additional, unlimited time to cure.
b. a reasonable, additional time to cure.
c. one more day to cure.
d. no more time to cure.
Taylor digitally copies business software without the authorization of the owners and
sells the copies to others via the Internet. Under federal law, this is
a. a crime only if the copies are not the same as, or close to, the original.
b. a crime only if Taylor and the buyers are in different jurisdictions.
c. not a crime.
d. a crime.
Ben allows Cody to store his trailer on Bens property for $20 a month while Cody is out
of town. Later, Ben notices rainwater collecting in the trailer and covers it with a tarp at
a cost of $40. This cost is most likely borne by
a. Ben and Cody.
b. Ben only.
c. Cody only.
d. neither Ben nor Cody.
Fact Pattern 1-1
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine
justices, six believe the judgment should be in Livewires favor. Justice Bellamy, one of
the six, writes a separate opinion. The four justices who believe the judgment should be
in Powers favor join in a third separate opinion.
Refer to Fact Pattern 1-1. Bellamys opinion is
a. a concurring opinion.
b. a dissenting opinion.
c. a majority opinion.
d. a per curiam opinion.
Davids family came to the United States from Ukraine in 1895. Evas family came to
this country from Vietnam in 1995. Fionas family came from Mexico in 2005. Current
immigration laws are based on
a. a national origin quota system proportional to the 1890 census.
b. a racial quota system proportional to numbers updated periodically.
c. a system of sanctions against employers who hire illegal immigrants.
d. excluding convicts and prostitutes.
OK Dry-Cleaning advertises so effectively that the regular customers of its competitor
Purity Cleaners patronize OK instead of Purity. This is
a. appropriation.
b. conversion.
c. wrongful interference with a contractual relationship.
d. none of the choices.
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.
Like other corporations, Workaday Personnel Corporation can expand its operations
through
a. a liquidation and distribution of its assets.
b. a purchase of a controlling interest in another corporation.
c. articles of dissolution filed voluntarily with the state.
d. a purchase of raw materials to be converted into finished goods.
Mike, an advocate of a certain religion, publishes an article in New Times magazine
insisting that Congress base all federal law on his religions principles. The First
Amendment guarantees Mikes freedom of
a. religion only.
b. speech only.
c. the press only.
d. religion, speech, and the press.
Fact Pattern 15-3
Mike loses his National Bank access card. He realizes his loss the next day but waits a
week to call National. Meanwhile, Opal finds and uses Mikes card to withdraw $3,000
from Mikes account.
Refer to Fact Pattern 15-3. When Mike receives his National statement, he demands
that the bank investigate the matter and recredit his account. The bank
a. has no duty to investigate.
b. must investigate and, if the dispute is not resolved within ten days, recredit Mikes
account (at least until the dispute is resolved).
c. must investigate and immediately recredit Mikes account (at least until the dispute is
resolved).
d. must investigate but need not recredit Mikes account.
Home Development Company employs llya to buy property for a future residential
development. Ilya secretly buys some of the property and sells it to Home Development
at a profit. Ilya has breached
a. no duty.
b. the duty of accounting.
c. the duty of loyalty.
d. the duty of notification.
Ruff Games, Inc., wishes to acquire a controlling interest in Smart Toy Company by
buying its stock. A public offer by Ruff Games to Smart Toy shareholders is
a. a buyout notice.
b. a golden parachute.
c. an acquisition call.
d. a tender offer.
Mona and Nero want to discharge their contract by executing and performing a new
agreement. They can best accomplish this by
a. accord and satisfaction.
b. novation.
c. reinvention.
d. specific performance.
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.
To acquire monopoly power in its market, Perfect Plastics, Inc., sets its prices lower
than its competitors. Under the Sherman Act, this is
a. a per se violation.
b. a violation if its competitors make similar deals.
c. a violation if it thereby acquires monopoly power.
d. not a violation.
Mica buys “Nature, a movie, through Open View, an online entertainment vendor.
Before completing the purchase and downloading “Nature, Mica must review a warning
not to make and sell a copy of it. This warning is
a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.
Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease
for an apartment for $1,000 monthly rent to start at the beginning of the next month.
The Statute of Frauds covers
a. the apartment lease, and the textbook and car purchases.
b. the apartment lease and the car purchase only.
c. the apartment lease only.
d. the textbook and car purchases only.
Vance points a gun at Workman, threatening to shoot him. Workman hits Vance, causing
his death. Charged with homicide, Workman can successfully claim as a defense
a. insanity.
b. duress.
c. entrapment.
d. self-defense.
International Gem Corporation agrees to sell Jewel Outlets, Inc. (JOI), fifty new
diamonds, but the contract does not specify a place of delivery. JOI is expected to pick
up the goods. The place of delivery is
a. Internationals place of business.
b. JOIs place of business.
c. the Annual Gems and Jewels Convention.
d. the U.S. Postal Service office nearest to JOIs place of business.
Equity Company and Faye enter into a contract for Faye to cater a meeting of Equitys
shareholders. When Fayes schedule conflicts, she asks Gudren to serve Fayes coffee
and pastries at the meeting. This transfer of duties is
a. a delegation.
b. an assignment.
c. a novation.
d. prohibited by law.
Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but
Owen does not deliver. Pablo can normally recover as damages the difference between
a. any loss avoided and any profit gained.
b. the actual price and the hoped-for price.
c. the contract price and the market price.
d. the current prices in the parties locations.
Nestor establishes a phony account in Meet+Greet, a social network, and creates a
fictitious persona to cyberbully Leona. This is
a. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing.
Posing as a representative of Global Games Company, Ferris e-mails Evan, a job
seeker, asking him to forward personal banking information so that if he is hired,
payroll checks can be deposited directly into his account. Evan supplies the data, which
Ferris promptly sells to Dixie. This is
a. cyber stalking.
b. employment fraud.
c. phishing.
d. vishing.
Olsen Grocery Company files a suit against Pickle Products, Inc. Pickle responds that
even if Olsens statement of the facts is true, according to the law Pickle is not liable.
This is
a. a counterclaim.
b. a motion for judgment on the pleadings.
c. a motion for summary judgment.
d. a motion to dismiss.
Debris Disposal Center operates a recycling plant. Edwin and other Debris neighbors
file a suit, alleging injuries from the plant. To succeed, they must show that Debris
failed to use reasonable care if the suit is based on
a. a negligence theory.
b. a nuisance theory.
c. any legal theory.
d. a strict liability theory.
Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane
and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane
refuses to ship Ira the collection. Ira should seek
a. damages.
b. reformation.
c. rescission.
d. specific performance.
Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders
Corporation. The agreement states that delivery is to be within “3 days, although the
parties intend “30 days. Refined cannot convince Select to amend the contract. Refined
should seek
a. damages.
b. reformation.
c. rescission.
d. specific performance.
Any judgment is enforceable.
The most common way to discharge a contract is by breach.
A lessees breach of a contract will usually give the lessor the right to cancel the
contract.
A counterclaim is raised by a plaintiff against a defendants response to a complaint.
An installment contract is breached if a buyer accepts any nonconforming goods.
The principal duty of a trustee is to liquidate and close up the debtors estate as quickly
as possible.
Patent protection begins on the date that a patent is issued.
To qualify as a commercially reasonable sale, a secured partys sale of collateral, after
default and repossession, must be public.
A divestiture is an order to a company to cease, or divest itself of, its anticompetitive
conduct.
Businesspersons who would choose to act unethically may be deterred from doing so
because of public opinion.
Most online dispute resolution services apply general, universal legal principles to
resolve disputes.
A close corporation cannot operate as an S corporation.
To be enforceable, a contract for a sale of goods priced at $50 or more must be in
writing.
A party must own property to have an insurable interest in it.
To rescind a contract, each party essentially advances to the position he or she would
have been in if the contract had been fully executed.
Buying or selling securities on the basis of nonpublic information is illegal only if the
profit from the transaction is unreasonable.
An offer to form a bilateral contract is accepted only by completing the contract
performance.