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UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela
seizes the property, UniOil asks a U.S. court to order the property's return. The court
rules that Venezuela is exempt from the court's jurisdiction. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Bret is a general partner in Capitol Realty, LLLP, a limited liability limited partnership,
which cannot pay its debts. Bret is personally liable for the debts
a. in proportion to the number of partners in the firm.
b. to no extent.
c. to the extent of his capital contribution.
d. to the full extent.
Riley, an engineer for Shur-2-Gro Seed Corporation, learns that Shur-2-Gro has
developed a corn hybrid to triple the output of any farm. Riley buys 20,000 shares of
Shur-2-Gro stock. He tells Tess, who buys 15,000 shares. After the new hybrid is
announced publicly, the price of Shur-2-Gro stock increases. Riley and Tess sell their
shares for a profit. Under the Securities Exchange Act of 1934, liability may be
imposed on
a. none of these parties.
b. Riley and Tess only.
c. Riley only.
d. Riley, Shur-2-Gro, and Tess.
Cold Stuf, Inc., makes snowboards, which it sells to Deep Freeze Sports Store (DFS).
DFS sells Cold Stuf boards to consumers, including Ed. Ed is injured while using the
board. In a product liability suit based on strict liability, Ed may recover from
a. Cold Stuf only.
b. Cold Stuf or DFS.
c. DFS only.
d. no one.
Fun-E Products, Inc., makes and sells toys. The government agency that has the
authority to remove a potentially hazardous toy from the market 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.
Jaqy distributes a handbill among her neighbors accusing one of themKedof being a
convicted sex offender. The statement is defamatory only if
a. a neighbor repeats it.
b. Ked suffers emotional distress.
c. the statement is true.
d. the statement is false.
Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig
changes his mind at the auction, he can withdraw his property
a. only before the auctioneer announces that the ranch is sold.
b. only before the auctioneer delivers the deed to the buyer.
c. under no circumstances.
d. within thirty days after the auction.
Ivy and Justin want to form and do business as Kayak Adventures Corporation. A
corporation can be owned by
a. natural persons only.
b. artificial persons only.
c. artificial or natural persons.
d. neither "artificial" nor "natural" persons.
Expert Stitching Corporation enters into a contract to sell denim clothing to Fine
Fashion Company, which in turn sells a pair of jeans to Grady, a consumer. In contrast
to standards that apply to consumers, the UCC imposes on merchants
a. less strict legal standards.
b. special business standards.
c. stricter ethical standards.
d. the same overall standards.
Ernie's Good Eatin" Cafe uses a distinctive decor, layout, menu, and style of service.
This restaurant's image and overall appearance is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
Diego performs a contract with Elwood to add a swimming pool to Elwood's property,
but Elwood does not pay. Diego can file a lien on Elwood's 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.
Roy leaves his Honda sport utility vehicle at Sam's Auto Service for an oil change. This
is a bailment for
a. neither party's benefit.
b. the parties' mutual benefit.
c. the sole benefit of the bailee.
d. the sole benefit of the bailor.
Creditworthy Loan Company extends credit in the ordinary course of its business.
Under the Truth-in-Lending Act, which is the key federal statute regulating the credit
and credit-card industries, Creditworthy must inform potential borrowers of
a. credit terms offered by other lenders.
b. comparative prices for goods to be bought with the borrowed funds.
c. Creditworthy's credit terms.
d. the borrowers' credit scores.
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.
Mary Kate Corporation allows Ashley Company to use Mary Kate's trademark as part
of Ashley's domain name. This is
a. a license.
b. a likelihood of consumer confusion.
c. cybersquatting.
d. trademark dilution.
Molly files a suit against Naomi. They meet, and each party's attorney argues the party's
case before a judge and jury. The jury presents an advisory verdict, after which the
judge meets with the parties to encourage them to settle their dispute. This is
a. court-ordered arbitration.
b. early neutral case evaluation.
c. a mini-trial.
d. a summary jury trial.
Nina wants the exclusive right to sell Oven-Rite Corporation appliances in a certain
area. If Oven-Rite agrees, it will likely require Nina to pay
a. a license fee and a percentage of the sales.
b. a license fee only.
c. a percentage of the sales only.
d. neither a license fee nor a percentage of the sales.
Pricey Auto Corporation gives notice to Quint that Pricey is terminating their franchise
arrangement. Winding up the business requires
a. a new franchise agreement.
b. nothing more than closing immediately.
c. Quint's death, disability, or insolvency.
d. returning Pricey's property.
Jill loans her laptop to Kyle. This is a bailment for
a. neither party's benefit.
b. the parties' mutual benefit.
c. the sole benefit of the bailee.
d. the sole benefit of the bailor.
Don writes a check to Eve drawn on Don's account at First Bank. Eve presents the
check for payment to First Bank, which accepts it. The bank is
a. not liable for payment.
b. primarily liable for payment.
c. secondarily liable for payment.
d. simultaneously liable, with Don, for payment.
RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment
Company copies the design without RiteMade's permission. Steel's conduct is
actionable provided
a. consumers are confused.
b. Steel's conduct is intentional.
c. Steel's conduct reduces the value of RiteMade's design.
d. RiteMade's design is patented.
Drake pushes Evon into the path of an oncoming car driven by Flip. Gina tries to rescue
Evon. Drake is liable for any injuries to
a. Evon and Flip but not Gina.
b. Evon and Gina but not Flip.
c. Evon, Flip, and Gina.
d. none of the parties.
Now Shopping Mall Corporation leases space to Only U Stores and Pik-Ur-Choice, Inc.
Later, Pik-Ur-Choice begins to sell items that are similar to Only U's goods, and Only U
abandons its space before the end of the lease term. Only U is liable to
a. not Now or its other tenants.
b. Now and its other tenants, except Pik-Ur-Choice, for any effect on their business.
c. Now and its other tenants, including Pik-Ur-Choice, for any effect on their business.
d. Now only for the unpaid rent.
Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, "Buy your carpet
here, and I"ll install it for half of what the store would charge." Dita buys the carpet,
which Bob installs for half the store's price. Bob keeps the money. Bob has breached
a. no duty.
b. the duty of loyalty.
c. the duty of notification.
d. the duty of obedience.
The payment of Yves's debt to Zac is guaranteed by Yves's personal property. Their
agreement describes Yves's subject property by serial number. To establish Zac's
interest, this is
a. irrelevant.
b. not sufficient.
c. sufficient if it accurately describes the parties' agreement.
d. sufficient unless it is too tedious to review.
Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the
terms on a sheet of the center's letterhead stationery, which only Theo signs. This
agreement is most likely enforceable against
a. neither Theo nor Uma.
b. Theo and Uma.
c. Theo only.
d. Uma only.
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.
Property Management Corporation (PMC) owns several apartment buildings in two
states. Regarding standards for maintenance of the buildings, PMC should consult
a. the applicable city ordinances and state statutes.
b. the previous owners.
c. the long-term tenants.
d. the Uniform Landlords' Maintenance Manual.
Realty Credit Company and Second Mortgage Corporation plan to consolidate. Most
likely, the articles of consolidation will be filed with
a. the county recording office.
b. the Securities and Exchange Commission.
c. the state's secretary of state.
d. the U.S. Department of Justice.
Hi-Yield Agriculture, Inc., makes a pesticide with a risk to people of developing cancer
from exposure of one in a million. This substance must be
a. disposed of before anyone develops cancer.
b. registered before it is sold.
c. taken off the market and placed in temporary storage.
d. used only in a way that avoids exposure to people.
Cody is a partner in Delta Accounting Service. Cody can inspect
a. all of Delta's books and records.
b. Delta's books and records only as the firm's management permits.
c. Delta's books and records only for a reasonable purpose.
d. Delta's books and records relating to Cody's capital contribution only.
Consumers in Delta City form a business organization to provide, without profit, an
economic service to its members. This is
a. a business trust.
b. a cooperative.
c. a corporation.
d. a joint stock company.
Uri borrows Vera's boat to enjoy for a weekend. Uri negligently runs the boat aground
near Water's Edge Beach, damaging the hull. Liable for the cost of repairing the boat is
a. Uri and Vera equally.
b. Uri only.
c. Vera only.
d. the owner of Water's Edge Beach.
Chiang Ltd., a Chinese firm, imports its goods into the United States and offers those
goods for sale at "less than fair value." This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
A good business reason for a practice that has a discriminatory effect may permit an
employer to avoid liability for discrimination.
Puffery constitutes deceptive advertising.
Oral assignments are prohibited.
Bribery of foreign government officials is both an ethical and a legal issue.
According to utilitarianism, an action that affects the majority adversely is morally
wrong.
A will must normally be attested to by two or three witnesses.
Theoretically, Congress can regulate every commercial enterprise in the United States.
An intended beneficiary can sue directly to enforce a promisor's promise.
Risks ordinarily assumed in business do not constitute consideration for the
modification of a contract.
Tender must occur at a reasonable hour and in a reasonable manner.
A seller with void title can transfer good title to a good faith purchaser for value.
An agency relationship may be created for any legal purpose.
Confiscation occurs when a government seizes a private property for a proper public
purpose and awards just compensation.
The chief aim of the World Trade Organization and other trade agreements is to
maximize trade barriers among their members.
A suspect cannot be tried twice in the same court for the same crime.
