Qatar Global Investments is a foreign entitya firm owned and operated by investors in a
foreign country. With respect to a limited liability company in the United States, Qatar
Global can
a. act as a creditor, but cannot otherwise invest or participate.
b. become a member.
c. not become a member, but can participate in its operations.
d. not become a member or otherwise participate in its operations.
The relationship between a principal and an independent contractor always involves an
agency relationship.
a. True
b. False
A contract between Fresh Fruit Corporation and Green Grocer, Inc., re-quires Fresh
Fruit to deliver goods to Green Grocers place of business. This is
a. a bill of lading.
b. a destination contract.
c. a shipment contract.
d. a warehouse receipt.
Under the exclusionary rule, illegally obtained evidence may not be included in any
criminal prosecution.
a. True
b. False
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which
the court renders a verdict. The case is appealed to an appellate court. After its review
of Kelly v. Lewis, the appellate court upholds the lower courts verdict. The appellate
court has
a. affirmed the case.
b. reversed the case.
c. remanded the case.
d. reversed and remanded the case.
Raven is a shareholder of Quantum Mechanix Corporation. Raven could normally
ex-er-cise appraisal rights if Quantum participated in
a. a consolidation.
b. a dissolution.
c. a liquidation.
d. a winding up.
An offeree is a person who makes an offer.
a. True
b. False
Food Packagers Union represents the workers of Garden Variety, Inc. The company
does not require its workers to join the union as a prerequisite to obtaining employment.
The union would like the employer to require the workers to join after a specified
amount of time on the job. This would violate
a. the Labor-Management Relations Act.
b. the Immigration Act.
c. the Worker Adjustment and Retraining Notification Act.
d. no federal law.
Foreign investors are not allowed to become limited liability company members.
a. True
b. False
Norma Jean files for Chapter 7 bankruptcy. She turns her assets over to Addie, who
sells the assets and then distributes the proceeds to Norma Jeans creditors. Addie is a
a. creditor.
b. federal judge.
c. bankruptcy trustee.
d. debtor.
Beth is a minor. She buys a set of sessions with a personal trainer, and a water bottle
and some weights from a fitness store. Later, Beth decides that she does not want the
water bottle or weights. In most states, Beth
a. can disaffirm the contract and return the water bottle and weights, but keep the
training sessions.
b. can only disaffirm the contract if she returns all the goods.
c. cannot disaffirm the contract.
d. can disaffirm the contract and keep all the goods.
Rolf is an emergency medical technician. Medical personnel such as Rolf are
pro-hibited by state statute from working more than a certain num-ber of consecutive
hours. One month, Rolf works more than the legal limit. Rolf can recover for
a. the hours up to the statutory maximum but not more.
b. the hours up to the statutory maximum and the extra hours.
c. the hours up to the statutory maximum or the extra hours.
d. nothing.
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.
A party cannot recover damages for severe emotional distress absent a show-ing of
physical injury.
a. True
b. False
SEC Rule 10b-5 prohibits the commission of fraud in connection with the purchase or
sale of any security.
a. True
b. False
Proceeds from the disposition of collateral after default on the underlying debt are
distributed equally among lienholders who have made demands.
a. True
b. False
Brandy forges Calebs signature on a check “payable to the order of Brandy drawn on
Calebs account in Downtown Bank. Calebs forged signature is
a. effective if an innocent third party accepts the check.
b. effective to the degree that it matches Calebs genuine signature.
c. effective to the extent that Downtown Bank debits Calebs account.
d. not effective.
Sparky offers Teodora $1,000 for her collection of rare coins. She ac-cepts. If a dispute
arises, a court would likely
a. enforce the deal after questioning the adequacy of consideration.
b. not question the adequacy of the consideration.
c. rewrite the deal after questioning the adequacy of consideration.
d. set aside the deal after questioning the adequacy of consideration.
In sales law, a warranty is an assurance by one party of the existence of a fact on which
the other party can rely.
a. True
b. False
Federal law permits the intentional accessing of stored electronic communication even
if the accessing is unauthorized.
a. True
b. False
InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to
pay for the service. If InTown does not perform, it may be required to
a. do nothing.
b. make another promise.
c. pay monetary damages.
d. perform a different service.
Intangible personal property represents a set of rights and interests but has no real
physical existence.
a. True
b. False
Fraud occurs only when there is reliance on a statement of opinion.
a. True
b. False
All states have intermediate appellate courts.
a. True
b. False
Malpractice is professional negligence.
a. True
b. False
Jean buys a bike from Mikes Bike Shop. She wants to make sure that there is a
warranty of title. Jean
a. does not need to do anything because warranties of title arise automatically in most
sales contracts.
b. must request a written warranty of title.
c. must request an oral warranty of title.
d. must request both a written and an oral warranty of title.
A state constitution may resolve a conflict among documents involving a corporation.
a. True
b. False
If a principal does not ratify an unauthorized contract, the principal is not bound.
a. True
b. False
If a contractual promise is not fulfilled, the person who made it may be required to
perform the promised act.
a. True
b. False
Refer to Fact Pattern 28-1. Nika conveys some of her land to Reggie with the right to
possess and use the property for a certain period of time. Nika has given Reggie
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. an easement.
Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glens
statement is NOT defamatory if
a. only Hu hears it.
b. a third party hears it.
c. the statement is published.
d. the statement is a lie.
GR8 Vision, Inc., hires Haul-Way Company to trans-port fifty large-screen HDTVs
from GR8s warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The
bailee is
a. GR8 Vision
b. Haul-Way.
c. Ideal Electronics.
d. no one.