1) the principle of employment at will says that either party can terminate an
employment contract of indefinite duration.
2) courts look at parties outward manifestations of intent as a requirement to enforce a
contract. this is called the subjective standard of intent.
3) an agents implied authority is always considered superior in law, and thus can
contradict principals express statements.
4) direct liability is also known as respondeat superior liability.
5) law of sale of goods codified in the article-2 of the ucc is modified to accommodate
current practices of the merchants.
6) a person who at the time of the contract lacked capacity due to mental impairment
can ratify the contract once he/she regains his/her normal mental faculties.
7) for a state trial court to have the power to decide a civil case, it must have both in
personam jurisdiction and in rem jurisdiction.
8) under the _____ clause, the power to regulate interstate trade is given to the federal
government.
a.due process
b.corporate
c.commerce
d.doing business
9) the settlement of an unliquidated debt is called a(n):
a.forbearance to sue.
b.accord and satisfaction.
c.past consideration.
d.moral obligation.
10) which statement about the statute of frauds is true?
a.all contracts must be in writing in order to be enforced.
b.contracts for the sale of goods for $500 or more must be in writing in order to be
enforced.
c.contracts for the sale of land for $500 or more must be in writing in order to be
enforced
d.all employment contracts must be in writing in order to be enforced.
11) which of the following instances is sufficient reason to cause commercial
impracticability?
a.increased cost
b.war
c.collapse of market
d.shortage of good
12) _____ jurisdiction exists when the case arises under the constitution, laws, or
treaties of the united states.
a.original
b.federal question
c.diversity
d.exclusive
13) carmen company wants to make an offering of securities exempt from registration
under rule 505 of the securities act of 1933. in order to do this, carmen:
a.may sell to 50 unaccredited purchasers.
b.may sell to any number of accredited purchasers.
c.may only sell to purchasers sophisticated in investment matters.
d.cannot restrict resale of securities for one year.
14) when proceeds from the sale of partnership assets are being distributed during
winding up, which of the following is settled first?
a.payment to partners to the extent of their capital contributions.
b.payment to creditors of the partnership.
c.payment to partners to the extent of their share of profits.
d.payment to creditors after charging the partners shares of losses.
15) which of the following is a transfer of the right to possess and use personal property
belonging to another without gaining any ownership rights?
a.conversion
b.bailment
c.inheritance
d.lease
16) once an assignment occurs, the assignee acquires:
a.greater obligations to fulfill the contract.
b.greater rights than the assignor.
c.same rights as the assignor had prior to assignment.
d.no rights at all.
17) which of the following can provide relief to landlords from cases of negligence
liability?
a.assignment
b.tort liability
c.exculpatory clause
d.constructive eviction
18) if unforeseen conditions cause a partial inability to make delivery of the goods and
thus make performance impracticable, the seller is excused from making delivery.
a.the seller is readily excused from making delivery.
b.the seller can unilaterally annul the contract.
c.the seller must allocate production in any fair and reasonable manner among his
customers.
d.the buyer is required to fully take the risk of loss.
19) what are the general requirements to become a holder in due course?
20) ned nerdman rented an apartment from best properties, inc. the apartment did not
have a functioning lock on a sliding patio door. nerdman had given best notice of this
defective condition at least three weeks earlier. best did not install a lock. as nerdman
slept at night, phil entered the apartment through the unlocked patio door, knocked
nerdman unconscious, and stole nerdmans expensive computer. does nerdman have a
good cause of action against best? explain your reasoning.
21) mark, an untenured assistant professor of business law at a public university, is fired
from his job for supposedly misbehaving with students in class. since the firing took
place without any kind of hearing, mark wants to challenge it on procedural due process
grounds. will marks claim succeed? assume that the university did not publicize the
reasons for marks discharge, and will not tell anyone why he was discharged.
22) overbearing, inc., which manufactures ball bearings, has built up a network of
wholesale dealers. under agreements between overbearing and various dealers, each
dealer has an established geographical territory of operation. these agreements also call
for the individual dealers not to compete in another overbearing dealers exclusive
territory. an appropriate plaintiff has sued overbearing on the theory that these
agreements violate section 1 of the sherman act. what treatment will the court give the
agreements? why? under that treatment, is it possible for overbearing to avoid liability
even if the existence of the agreements is established by the plaintiff? if so, how?
23) greg sues ned in an effort to get title to some land claimed by ned and located inside
the state of texas. ned has never been to texas in his life, has never had any contacts of
any kind with the state, and refuses to appear in texas to defend against gregs suit. later,
after greg wins a default judgment against ned, ned shows up in texas to claim that the
judgment was invalid because he was totally outside texas, hence texas courts had no
jurisdiction over him, and for this reason they could not affect his rights to the land. is
ned right? why or why not? assume that subject-matter jurisdiction exists.
24) is the installation of a battery in an automobile subject to article 2 of the ucc or to
the common law of contracts? why?
25) homeowner ann jameson entered into a 90-day exclusive right to sell listing
agreement with a real estate broker, bill boor. one week later, jameson sold the house to
her neighbor, jerry mateo, who learned that the property was for sale when he saw the
for sale sign in jamesons yard. boor contends that he is entitled to a commission on the
sale. is boor entitled to a commission? why or why not?
26) what are the three significant effects resulting from the indorsement of a negotiable
instrument?
27) the toy company offers to sell wal-mart 10,000 dolls at a certain price. the offer,
which is signed by ttcs president, is complete and certain as to all material terms. the
offer also states that it will remain open for four months, but does not require any
consideration in support of this promise. ttc revokes the offer 100 days after it was
made. is this revocation effective? would your answer change if ttc revoked 80 days
after the offer was made?
28) what is patent infringement?