1) Melanie files an employment discrimination suit against Natural Resources
Industries Corporation under the Civil Rights Act of 1964 on a disparate-impact theory.
To succeed, Melanie must show that members of a protected class are adversely
affected by any of the following except the employer’s
a.practices.
b.procedures.
c.tests.
d.seniority system.
2) Golf & Tennis LLC makes and sells golf clubs, tennis racquets, and related sporting
goods. By selling its products at prices substantially below the normal cost of
production, Golf & Tennis hopes to drive its competitors from the market. This is
a.market power.
b.predatory pricing.
c.price discrimination.
d.none of the choices.
3) Stores & Shops, Inc., leases space in a certain mall to Trends Clothing Company and
Unique Fashions Store. Later, Unique Fashions begins to sell items that are similar to
Trends Clothing’s goods, and Trends Clothing abandons its space before the end of the
lease term.
In some jurisdictions, Stores & Shops would be
a.entitled to damages from Unique Fashions for its business decision.
b.entitled to increase other tenants’ rent to cover Trends Clothing’s unpaid rent.
c.entitled to the unpaid rent from Trends Clothing.
d.required to mitigate its damages.
4) Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its
warehouse. Dex completes the installation. The act of installing the pump
a.imposes a moral obligation on Chicken & Egg to pay Dex.
b.imposes no obligation on Chicken & Egg unless it is satisfied with the job.
c.is not sufficient consideration because it is not goods or money.
d.is the consideration that creates Chicken & Egg’s obligation to pay Dex.
5) Bank Professionals Union represents the workers of Commerce Bank. The bank
refuses to bargain with the union over the economic consequences to the employees of
management’s decision to shut down some facilities. This most likely violates
a.federal labor law.
b.state right-to-work laws.
c.federal wage-and-hour laws.
d.no federal or state law.
6) Olivia is Physicians Clinic agent and is not authorized to sign checks or notes on its
behalf. Despite the lack of authority, Olivia issues a note “payable to the order of Quik
Loan Company [signed] Physicians Clinic, by Olivia.” Liability on this note extends to
a.Physicians Clinic.
b.Olivia.
c.Quik Loan.
d.no one.
7) Builders Construction Company performs a contract with Christina to add a sun
porch to her house, but she does not pay. In most states, Builders Construction could
create a lien and place it on Christina’s property by filing
a.a creditor’s composition agreement.
b.a writ of attachment.
c.a writ of execution.
d.a written notice of lien.
8) City Manufacturing Corporation conditions shipments of its products to Exurb
Stores, Inc., on Exurb’s agreement not to buy products from Regional Works Company,
City’s competitor. This is
a.an exclusive-dealing contract.
b.a tying arrangement.
c.none of the choices.
d.a price-fixing agreement.
9) iSharp, Inc., and Jenene, the owner of a Kitchen Time shop, orally agree to a sale of
knives and other utensils for $12,000. Jenene gives iSharp a check for $4,000 as a
partial payment. This contract is
a.enforceable to the extent of $4,000.
b.fully enforceable because it is for specially selected goods.
c.fully enforceable because it is oral.
d.not enforceable.
10) Discount Retail Corporation may be engaging in conduct that violates the Sherman
Act. To bring an action against the firm requires that its conduct have a significant
impact on
a.international commerce.
b.Internet commerce.
c.interstate commerce.
d.intrastate commerce.
11) Global Marketing, Inc., a U.S. firm, owns property in Honduras. The government in
Honduras takes Global Marketing’s property without paying for it. A U.S. court will
probably not examine the validity of this act committed by Honduras within its own
territory, under
a.the act of state doctrine.
b.the doctrine of sovereign immunity.
c.the principle of comity.
d.the World Trade Organization .
12) The contract term “delivery ex-ship” means that the risk of loss does not pass to the
buyer until the goods are properly unloaded from the ship or other carrier.
13) Implied warranties can arise from a “usage of trade.”
14) When a seller keeps the goods for pickup, if the seller is not a merchant, the risk of
loss passes to a buyer on tender of delivery.
15) An instrument is dishonored when the party to whom the instrument is presented
refuses to pay it.
16) The crime of theft requires only the taking of another person’s property, not the
awareness that the property belongs to another.
17) Town Loan Center agrees to loan Sara $1,500, accepting as collateral her car. They
put their agreement in writing and sign it. Sara keeps possession of the car. Does Town
Loan have an enforceable security interest? How can Town Loan let other creditors
know of its interest in the car?
18) Most contracts need to be performed only to the satisfaction of a reasonable person
unless they expressly state otherwise.
19) In most contracts, promises of performance are not expressly conditioned or
qualified.