Duffy is a passenger in a car that Caleb is driving when an accident occurs. Both Caleb
and Duffy are emotionally rattled, but neither is physically hurt. Caleb is not liable to
Dufy on a negligence theory because
a. both parties were emotionally rattled.
b. Caleb apparently did not intend to cause an accident.
c. Duffy must have been comparatively negligent.
d. Duffy was not injured.
In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc.,
applies her belief that all persons have fundamental rights. This is
a. a religious rule.
b. the categorical imperative.
c. the principle of rights.
d. utilitarianism.
Ben and Andrew are parties to a contract. They agree on a novation. The novation does
not require
a. the existence of a previous, valid obligation.
b. agreement by all the parties to a new contract.
c. performance of the original contract by all of the parties.
d. a new, valid contract.
Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative
agency) issues rules, the Southeast Financial Institutions Association (a private
organizations) issues instructions, South Valley Bank posts a memo with orders for its
employees, and Tina tells her co-worker about a recent news story. Sources of law
include
a. the instructions issued by private associations.
b. the orders posted by employers.
c. the rules issued by federal administrative agencies.
d. the stories released by news agencies.
Brendan signs a check “pay to the order of City College Bookstore” drawn on his
account in Delta Bank to pay for his current semester’s textbooks. The bookstore
deposits the check in its account in Eagle Bank. Like most checks, this check is
a. a one-party instrument.
b. a nonnegotiable instrument.
c. a special type of draft.
d. not a substitute for cash.
Jean is playing a video game on a defective disk that melts in her game player, starting
a fire that injures her hands. Jean files a suit against K-Tech, Inc., the game’s
manufacturer. K-Tech is held liable under the doctrine of strict liability. A significant
application of this doctrine is in the area of
a. cyber torts.
b. intentional torts.
c. product liability.
d. unintentional torts.
Dewey is the payee for a check written by Fred. Cash Credit Corporation (CCC)
accepts the check from Dewey as part of a payment. CCC cannot become a HDC if
a. the check has been transferred more than once.
b. the check has been outstanding for one week.
c. the check has been outstanding for more than ninety days.
d. there are bankruptcy proceedings against Fred.
Roland files for Chapter 7 bankruptcy. After all his assets have been sold and the
proceeds distributed among his creditors, Roland’s remaining debts
a. are discharged.
b. paid by the court.
c. must be paid by Roland.
d. are put on hold until Roland has sufficient means to pay them.
Machine Corporation requires its employees to have a high school diploma, claiming a
definite connection between a high school education and job performance. In a suit
against Machine Corporation under Title VII, this requirement is shown to have a
discriminatory effect. The employer has
a. no defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. a seniority systems defense.
Jason contracts with Golf Carts Unlimited, Inc. to buy five golf carts. The contract lists
the five carts as GC001, GC002, GC003, GC004, GC005. Identification
a. requires that Jason verify his identity to take possession of the carts.
b. has taken place.
c. cannot take place until the contract is reviewed by a court.
d. will take place only when Jason pays for the golf carts.
Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A
declaration that one will do something in the future is part of the definition of
a. a prediction.
b. a premise.
c. a principle.
d. a promise.
Jack offers to sell Ben a new car for $10,000. Ben accepts the offer and sells his old car
so that he will have money for the new one. Jack’s offer is probably
a. revocable because the terms of the offer were not definite.
b. irrevocable because Ben sold his old car because of justifiable reliance on Jack’s offer
to sell him a new car.
c. revocable because any offer is revocable.
d. irrevocable because Jack’s offer represents an opinion contract.
Joli, acting within the scope of her authority for the Cake Bake Shop, contracts with
Valley View Berry Farms to buy an assortment of fruit. Cake Bake is liable on the
contract, and Joli is not, if Cake Bake is
a. a disclosed principal.
b. a partially disclosed principal.
c. an undisclosed principal.
d. an apparent agent.
Mary works in the public relations department of New Trends Sales Company. Her job
includes portraying New Trends’s activities in their best light. In this context, ethics
consist of
a. a different set of principles from those that apply to other activities.
b. the same moral principles that apply to non-business activities.
c. those principles that produce the most favorable financial outcome.
d. whatever saves New Trends’s “face.”
Business Rental Corporation (BRC) and Cartage Trucking Company enter into a
contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship
or tender goods to the lessee that
a. approximately conform to all of the details of the contract.
b. entirely conform to the contract except in one or two details.
c. exactly conform to the contract in every detail.
d. substantially conform to the contract in most details.
Liz offers to sell Jock her iPad for $500 without any accessories. Under the mirror
image rule, Jock’s response will be considered an acceptance if
the terms of the acceptance
a. exactly mirror those of the offer.
b. change the items offered, but do not change the price.
c. change the price, but do not change the items offered.
d. change both the price and the items offered.
Helen owns heavy construction equipment and the tools to service it, as well as office
furniture, including computers. Ilya owns a number of patents, trademarks that identify
the products made under those patents, and stock in the company that sells those
products. Personal property includes the items owned by
a. Helen and Ilya.
b. Helen only.
c. Ilya only.
d. neither Helen nor Ilya.
Bea is a shareholder of Candy Confections Corporation. The right to inspect corporate
books and records is
a. held by Bea only if she is a director.
b. held by Bea, without restrictions.
c. held by Bea, with some restrictions.
d. not held by Bea.
Elinor performs ten hours of house cleaning for Zack in exchange for a promissory note
for $400. At the time that Elinor accepts the note, she is aware that bankruptcy
proceedings are being filed against Zack. Elinor
a. can obtain HDC status.
b. cannot obtain HDC status, because she knows that there are bankruptcy proceedings
against Zack.
c. cannot obtain HDC status, because she did not fulfill the value requirement.
d. cannot obtain HDC status, because she did not fulfill the good faith requirement.
Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion
detectors. When Nadine does not deliver within a reasonable time after the agreed
delivery date, Mitch files a suit for breach. Nadine asserts the doctrine of commercial
impracticability. This doctrine extends only to problems that are
a. foreseen.
b. preventable.
c. unforeseen.
d. ordinarily assumed by a seller or lessor.
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 cash.
The commerce clause’s express grant of exclusive authority to regulate commerce that
substantially affects trade and commerce among states is referred to as the
a. dormant aspect of the commerce clause.
b. positive aspect of the commerce clause.
c. negative aspect of the commerce clause.
d. exclusive aspect of the commerce clause.
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. federal labor law.
b. federal full employment law.
c. federal employment discrimination law.
d. no federal law.
Riverview Bank makes a mortgage loan of $95,000 to Pomeroy to buy a home. Under
federal law, if Riverview fails to provide certain material disclosures with respect to the
loan, Pomeroy’s right to rescind the loan
a. expires at midnight on the day the loan is finalized.
b. is canceled immediately.
c. is extended for up to three years.
d. is tolled for the duration of the mortgage payments.
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.
Community Construction Corporation offers to buy from Solid Cement Company a
certain quantity of cement for a certain price. Solid can accept the offer by
a. doing nothing.
b. promising to ship or promptly shipping the cement.
c. promising to ship the cement only.
d. promptly shipping the cement only.
Jen files a suit against Kopper Kettle Company. While the suit is pending, Kopper
Kettle merges with Luminous Pans, Inc., with Luminous absorbing Kopper Kettle.
Now, liability in the suit, if any, rests with
a. Jen.
b. Kopper Kettle.
c. Luminous.
d. no one.
Metal Smelting, Inc., operates a planta “major source”that emits hazardous air
pollutants for which the Environmental Protection Agency has set maximum levels of
emission. The plant does not use any equipment to reduce its emissions. Under the
Clean Air Act, this is most likely
a. a violation.
b. not a violation because a “major source” is exempt.
c. not a violation because the plant does not use any equipment.
d. not a violation because the plant is not a mobile source.
Consumer Shops, Inc., signs a lease for a storefront owned by Downtown Building
Company. Unlike a purchaser of real property, Consumer Shops
a. acquires only temporary possession of the premises.
b. enjoys exclusive possession of the premises.
c. holds only temporary title to the premises.
d. retains temporary, exclusive possession and title to the premises.
Wally asks Eddie if he can store his furniture in Eddie’s garage while he serves a tour of
duty with the U.S. Marines Corps. Eddie agrees. This is
a. a bailment.
b. accession.
c. a gift.
d. abandoned property.
A lottery is an example of an offer for an unilateral contract.
In a judicial foreclosure, the lender is allowed to foreclose on and sell the property
without judicial supervision.
The primary measure of monopoly power is a competitor’s assessment of the acts of a
firm under review.
Under the doctrine of respondeat superior, an agent is liable for the principal’s
negligence.
A sole proprietor may own and manage any type of business.
Quotas are limits on the amounts of goods that can be exported.
For a creditor to have an enforceable security interest, the debtor must have rights in the
collateral.
A credit-cardholder is liable for all unauthorized charges made before the creditor is
notified that the card has been lost.
For products that are sold nationwide, the relevant geographic market encompasses the
entire United States.
Administrative law includes only state regulations.
Generally, an accountant must exercise the degree of care that an ordinarily prudent
accountant would exercise.
If an employee dies in a work-related incident, the employer must notify OSHA within
eight hours.
One purpose of quasi contracts is to prevent unjust enrichment of one party at the
expense of another.
A corporation has perpetual existence in most states unless the articles of incorporation
state otherwise.
Under a deed in lieu of foreclosure, the property is conveyed to the lender in
satisfaction of the mortgage.
An installment contract is a single contract that requires or authorizes delivery in two or
more separate lots to be paid for in one payment.