Detroit Automotive Company (DAC) agrees with its employees’ union not to buy any
nonunion-produced component parts from other firms for use in DAC products. This is
a. a hot-cargo agreement.
b. a secondary boycott.
c. a closed shop.
d. a lockout.
Answer:
Fact Pattern 27-1
Natural Gas, Inc., and Olio Energy Company refine and sell natural gas. To limit the
supply of natural gas on the market and thereby raise prices, Natural Gas and Olio
Energy agree to buy ‘excess’ supplies from dealers and ‘dispose’ of it.Refer to Fact
Pattern 27-1. The agreement between Natural Gas and Olio Energy is
a. a horizontal restraint.
b. none of the choices.
c. a resale price maintenance agreement.
d. a vertical restraint.
Answer:
Maura enters a gas station and points a gun at the clerk Nate. She then forces Nate to
open the cash register and give her all the money. Maura can be charged with
a. burglary.
b. robbery.
c. larceny.
d. receiving stolen property.
Answer:
Plywood & Particleboard Mill, Inc., does not use proper filters on its stacks, which
consequently pollute the air. Quinn, a Plywood & Particleboard employee, suffers
respiratory illness. To succeed in a suit against the company on the ground of
negligence, Quinn must show that he suffers from
a. a distinct harm separate from that affecting the general public.
b. a lesser harm than an injunction would impose on Plywood & Particleboard.
c. Plywood & Particleboard’s failure to use reasonable care to avert herm to Quinn.
d. the same harm as that affecting the general public.
Answer:
Beef Burgers, Inc. contracts to buy five hundred steers from Fattening Feedlots. Before
Fattening Feedlots can deliver the steers, there is an outbreak of disease in the feedlot,
and all the cattle are quarantined. In this case the perfect tender rule
a. applies to both parties.
b. does not apply.
c. applies only to Beef Burgers.
d. applies only to Fattening Feedlots.
Answer:
Glassworx Corporation has exclusive control over the marÂket for its products. Under
antitrust law, this is
a. a per se violation.
b. a violation if it acquired this power through ‘business judgment.’
c. a violation if it acquired this power through ‘anticompetitive means.’
d. not a violation.
Answer:
Savory Bean Company makes and sells a sweet espresso coffee beverage under the
name ‘Sugar Sugar.’ Tropic Roast, Inc., later markets a similar drink under the name
‘Sweet Sweet.’ This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
Answer:
Lowell runs Medical Debt Collection Agency. He collects debts by misrepresenting the
facts and pretending to be licensed to perform various occupations. Lowell’s conduct
most likely warrants
a. an admonition for unethical behavior but no other sanctions.
b. an injunction plus other sanctions.
c. no sanctions but no praise.
d. praise for the aggressive approach to collecting debts.
Answer:
The Nebraska Supreme Court issues an opinion that can be found at 285 Neb. 88, 825
N.W.2d 429. ‘285’ is
a. the number of the volume in the official reports of the court’s decisions.
b. the number of the volume in Thomson Reuter’s unofficial publication of the court’s
decisions.
c. a page number in the appropriate volume.
d. the number of the case in the sequence decided by the state’s highest court.
Answer:
Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of
Bolivia seizes the property for an illegal purpose without paying just compensation.
This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Answer:
Ferris is refinishing his kitchen floor and needs a floor sander to complete the job.
Ferris’s neighbor Gerda suggests that he call Home Repair Rentals, Inc. Home Repair
leases Ferris a floor sander. In this transaction, the lessor is
a. Ferris.
b. Gerda.
c. Home Repair.
d. none of the parties.
Answer:
Alf rents an apartment. The lease does not specify how long it will last, but it does
specify that Alf must pay rent every month. Alf’s tenancy is
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a tenancy at will.
d. not a tenancy.
Answer:
Grover signs an installment contract with Home Appliance Store to finance the
purchase of new kitchen appliances’”stove, refrigerator, dishwasher, microwave, and
toasteroven’”for $3,999. This transaction is subÂject to
a. no federal law.
b. the Fair Credit Reporting Act.
c. the Telecommunications Act.
d. the Truth-in-Lending Act.
Answer:
Hu, Ivan, and Juana apply to work for King Poultry Company. These individuals’
identities and eligibility to work must be verified by
a. King Poultry.
b. Hu, Ivan, and Juana.
c. Hu, Ivan, and Juana’s countries of origin.
d. U.S. Citizenship and Immigration Services.
Answer:
Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company.
Even-Bilt completely performs. Discount E-Sales is entitled to
a. damages.
b. nothing more.
c. to be excused from performance.
d. suspend performance.
Answer:
Free-Flo Pipes & Plumbing Corporation is a private employer inÂvolved in an
employment discrimination suit under the Civil Rights Act of 1964. Punitive damages
may be recovered against Free-Flo only if the employer
a. acted with malice or reckless indifference.
b. can easily afford to pay the amount.
c. has one hundred or more employees.
d. consents.
Answer:
Leslie commits an act via e-mail against Money Investment Company, a business in
New York, where the act is a cyber crime. Leslie resides in Ohio, where the act is not a
crime. Prosecution of Leslie in New York involves questions of
a. jurisdiction.
b. malware.
c. phishing.
d. service-based hacking.
Answer:
A product liability action based on negligence does not require privity of contract
between the injured plaintiff and the defendant-manufacturer.
Answer:
The duty to exercise reasonable care requires storeowners to warn business invitees of
all risks.
Answer:
The agent has the right to be compensated, to be reimbursed and indemnified, and to
have a safe working environment.
Answer:
Most securities can be resold without registration.
Answer:
For a business law class, Sierra reads and briefs several court opinions using the IRAC
method of legal reasoning. What do the letters I, R, A, and C abbreviate? What are the
steps in the IRAC method?
Answer:
In a phishing attack, a perpetrator ‘fishes’ for financial data and passwords from
consumers by posing as a legitimate business.
Answer:
Under what circumstances would Quality Market, a small store in Rustic, an isolated
town, be considered a moÂnopoly? If Quality Market is a monopoly, is it in violation of
antitrust law?
Answer:
Under a destination contract, the risk of loss passes to the buyer when the goods are
duly delivered to the carrier.
Answer:
There are no important consequences if the procedures for incorporation are not
followed precisely.
Answer:
To be legally sufficient, consideration must be evidenced by something tangible.
Answer: