Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes
for $4.50 per month. Nate accepts. If a dispute arises, a court would likely
a. enforce the deal after questioning the adequacy of the consideration.
b. not question the adequacy of the consideration.
c. rewrite the deal after questioning the adequacy of the consideration.
d. set aside the deal after questioning the adequacy of the consideration.
Interactive Entertainment Corporation markets its products online. Through the use of
cookies, Interactive Entertainment and other online marketers can
a. track individuals Web browsing activities.
b. gain access to competitors servers.
c. ‘sweet talk consumers into buying certain products.
d. attack competitors Web sites.
Posing as Platinum Bank, Quentin e-mails Rachel, asking her to update her personal
banking information through a link in the e-mail. She clicks on the link and types in the
data, which Quentin promptly sells to Spence. This is
a. hacking.
b. identity theft.
c. cyberterrorism.
d. bribery.
Transnational Corporation and United Shipping, Inc., agree to a contract that includes
an arbitration clause. If a dispute arises, a court having jurisdiction may
a. monitor any arbitration until it concludes.
b. order an arbitrator to rule in a particular way.
c. order a party to bring the dispute to court.
d. order a party to submit to arbitration.
Rhys owns Solar Fuel Corporation. Rhys uses Solar Fuels funds to pay his personal
expenses, creates Thermal Power Corporation to engage in the same business as Solar
Fuel, transfersSolar Fuels assets to Thermal Power, and petitions Solar Fuel into
bankruptcy. This most likely warrants
a. a bonus to Rhys for financial maneuvers.
b. a discharge for Solar Fuel in bankruptcy.
c. a pierce of the corporate veil.
d. a review of Thermal Powers articles of incorporation.
Hals True Hardware Stores and Ideal Tools, Inc., sign a written contract for a sale of
goods. To be enforceable, this written contract must include
a. a correct title, such as “Purchase Order or “Sales Invoice.
b. a date, such as “October 2014 or “10/2014.
c. a quantity term, such as “50 hammers or “100 boxes of assorted nails.
d. the parties contact information.
In selling a commercial building, Birdie tells Colt that theproperty has a certain
capacity, making it suitable for a nightclub. Birdie knows nothing about the capacity of
the building, but it is not as she specifies. Colt buys the building.
On learning the truth, Colt confronts Birdie, who says she was not trying to fool himshe
was only trying to make a sale. This is
a. a mistake of value.
b. a valid defense to a charge of fraud.
c. negligent misrepresentation.
d. unconscionable.
Roadtrip County Fairs Corporation orders from Stuffed Animal Sales, Inc., goods that
are stored in a Toy Box Maxi-Storage warehouse. Roadtrip pays for the goods, delivery
is via the transfer of a negotiable warehouse receipt, and Roadtrip moves the goods out
of the warehouse. The risk of loss passes to the buyer when it
a. orders the goods.
b. pays for the goods.
c. receives the negotiable warehouse receipt.
d. moves the goods out of the warehouse.
Isabel owns a house, which she advertises for sale for $300,000. On April 1, Jon-Pierre
offers Isabel $280,000 for the house. On April 5, Isabel has delivered to Jon-Pierre at
his office a form that includes additional terms but does not state a price. At 9 a.m. on
April 6, Jon-Pierre signs the form and gives it to Karla, his administrative assistant,
with instructions to mail it. At 10 a.m., Isabel calls to tell Jon-Pierre that the deal is off.
The next day, Karlamails the signed form to Isabel. When Isabel refuses to sell the
house to Jon-Pierre, he files a suit against her, alleging breach of contract. Isabel claims
that there was no contract. What are arguments supporting each partys position? What
is the court likely to rule? Explain.
Evita pretends to be “Faith online, fooling Garth into believing that Faith is his friend.
When Garthlearns the truth, he is embarrassed and feels humiliated. But hecannot
recover damages because he cannot prove an actual injury, which is a requirement for
recovery in these circumstances on the ground of
a. mistake.
b. fraudulent misrepresentation.
c. undue influence
d. unconscionability.
Lon says to Milli, “I would like to sell you my comic book collection. This is not an
offer because it
a. does not describe the subject matter specifically.
b. does not include a price term.
c. only expresses an opinion.
d. only invites Milli to negotiate.
Jenny Lee is an appliance salesperson. To make a sale, she asserts that a certain model
of a Kitchen Helper refrigerator is the “best one ever made. This is
a. fraud if the statement is not true.
b. fraud if Jenny Lee believes that this statement is not true.
c. fraud if Jenny Lee is stating her opinion, not the facts.
d. not fraud.
Genos Italiano Ristorantes, Inc., employs three hundred workers at four locations in two
states. Under federal law, Genos must provide each employee, during any twelve-month
period, family or medical leave of up to twelve
a. days.
b. weeks.
c. months.
d. years.
Milo publishes a book titled No Equals, which includes a chapter from Paiges
copyrighted book Olympic Champions. Milos use of the chapter is actionable provided
that
a. consumers are confused.
b. Milos use is intentional.
c. Milos use reproduces Paiges chapter exactly.
d. Milo does not have Paiges permission.
Miklos employs Nathalie to handle a list of financial transactions on Mikloss behalf.
This power will terminate on
a. any transaction causing a loss to Miklos.
b. Mikloss death or incapacity.
c. Mikloss sixty-fifth birthday.
d. Nathalies handling of one of each stipulated transaction.
Badal is an employee of Cloud Computing Corporation. The federal government raids
the firm and determines that Badal and many of his co-workers are illegal immigrants,
whom are then detained and later deported. Derry, Badals manager, is imprisoned for
federal law violations related to the immigrants hiring. Unable to attract replacement
workers at a competitive wage, Cloud Computing shuts its doors. Reasons for
reforming U.S. immigration laws include
a. the disruption of business caused by federal raids on employers.
b. the economic conditions prompting immigration to the United States.
c. the imprisonment of those who violate U.S. laws.
d. the low wages offered by employers for jobs that should pay more.
Casey offers to sell a certain used forklift to DIY Lumber Outlet, but Casey dies before
DIY accepts. Most likely, Caseys death
a. did not affect the offer.
b. shortened the time of the offer but did not terminate it.
c. extended the time of the offer.
d. terminated the offer.
Savers Mart, Inc., distributes its merchandise on an interstate basis.Under the commerce
clause, Congress has the power to regulate
a. any commercial activity in the United States.
b. only activities that are in intrastate commerce.
c. only activities that are in local commerce.
d. none of the choices.
Freddi buys bike shoes from Get n Gear Store, telling the clerk that she wants the shoes
to compete in High Pace Triathlon. The shoes break apart during the competition, caus-
ing Freddi to be injured in a fall. Get n Gear most likely breached
a. an express warranty.
b. an implied warranty of fitness for a particular purpose.
c. an implied warranty of merchantability.
d. a warranty of title.
Repair Tools Company contracts to deliver fifty heavy-duty steel floor jacks to
Serv-UR-Self AutoStores on May 1 for which Serv-UR-Self agrees to pay. Repair Tools
tells Serv-UR-Self on April 15 that delivery will be delayed until June 1. Serv-UR-Self
may do all of the followingexcept
a. force Repair Tools to deliver substitute goods before the time for the contracts
performance.
b. awaitRepair Tools performance for a commercially reasonable time.
c. sueRepair Tools for breach of contract.
d. suspend its own performance.
Reliable Insurance Company employs Stuart as an agent. To terminate Stuarts authority,
Reliable Insurance must notify
a. only third parties who are aware of the agency relationship.
b. the public generally.
c. Stuart and any third parties who are aware of the agency relationship.
d. Stuart only.
Liu enters Mountain Triathlon, an athletic competition in which Liu has never
competed. Regarding the risk of injury, Liu assumes the risks
a. attributable to the triathlon in any way.
b. different from the risks normally associated with the triathlon.
c. greater than the risks normally associated with the triathlon.
d. normally associated with the triathlon.
Donald approves on behalf of Evelynbut without authorizationa contract with Farouk to
build a new silo. Evelyndoes not ratify the contract. The deal with Farouk is
a. an enforceable contract with Donald.
b. a voidable contract.
c. an enforceable contract with Evelyn.
d. an unaccepted offer.
Fleet Feet Corporation makes athletic shoes. Gloria, a marathoner, files a product liabil-
ity suit against Fleet Feet, alleging a design defect. In deciding whether to hold Fleet
Feet liable, the court may consider an alternative designs
a. popularity among industrial designers and consumers.
b. weight and heft.
c. aesthetics.
d. advantages and disadvantages.
La-Z Days Motels, Inc., and Beds R Us Corporation enter into a contract that does not
specify the payment terms. Payment may be made in
a. any commercially normal or acceptable means except credit card.
b. cash only.
c. any commercially normal or acceptable means.
d. cash or check only.
Herbs Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey
and review of Herbs competitors, which Idris delivers on August Herbs offer, on the
same date, to pay Idris is
a. a concurrent condition.
b. a novation.
c. tender.
d. mutual rescission.
An Iowa state statute requires amusement parks to maintain equipment in specific
condition for the protection of patrons. Jacks Fun Park fails to maintain its equipment.
Keely, a patron, is injured. Jacks has committed
a. a violation of a dram shop act.
b. negligenceper se.
c. res ipsa loquitur.
d. a violation of a Good Samaritan statute.
Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain
circumstances. The ARA will be considered valid if it directly advances a substantial
government interest
a. andgoes no further than necessary to achieve its purpose.
b. without regard to how “far it goes.
c. and the parties affected by it can elect how “far to go in applying it.
d. andgoes further than necessary to ensure full coverage.
Able Contractors, Inc., enters into a contract with Beau to repair, rebuild, and remodel
Coastal Marina & Boardwalk, using products from Delta Lumber & Marine. Eatwell
Café is next to Coastal Marina.
The value of Eatwell Cafés property will increase after Coastal Marina store is
refurbished. Eatwell Café is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
Laramie contracts to provide cattle-herding services to Miles for $1,400 per month.
Laramie cannot transfer this duty
a. under any circumstances.
b. without continuing to be potentially liable.
c. withoutMiless consent.
d. without paying Miles at least one monthly fee.
The duty to exercise reasonable care requires storeowners to warn business invitees of
all risks.
To be legally sufficient, consideration must be evidenced by something tangible.
One of the key advantages of the corporate form is the unlimited liability of its owners.
The first person to invent a product obtains the patent rights rather than the first person
to file an application for a patent.
Under the doctrine of comparative negligence, only the plaintiffs negligence is
computed and the liability for damages is distributed accordingly.
Acting in good faith gives a business firm a better chance of defending its actions in
court.
Any breach entitles the nonbreaching party to sue for damages.
An agency by estoppel arises when the principals actions have created the appearance
of an agency that does not in fact exist.
A famous trademark may be diluted only by the unauthorized use of an identical mark.
When a bailee is holding goods that are to be delivered under a contract without being
moved, the risk of loss cannot pass to a buyer.
A court of appeals does not hear any evidence.
The government does not need a subpoena or a warrant to inspect an employers file of
I-9 forms.
No state requires franchisors to provide presale disclosures to prospective franchisees.
A request or invitation to negotiateis an offer.
Most employers with fifty or more employees are required to offer health-insurance
benefits.
Business Solutions Corporation (BSC) sells business application softwarewage, price,
and inventory coordinatingprograms, for examplein different combinations and
packages, at different prices, downloadable online. To complete a deal, a purchaser
clicks on a button that, with reference to certain terms, states, “I agree. What is this sort
of agreement called? Do the parties have a binding, enforceable contract that includes
the terms? Explain.
Only a defendant can file a motion to dismiss.
Counterfeit goods copy or otherwise imitate trademarked goods, and they are in fact
sometimes genuine trademarked goods.
An action in strict product liability requires that a product be in a defective condition
caused by its purchaser.