1) Commercial Decor, Inc., files a suit against Discount Mart Corporation, asking the
court to enforce an oral contract between the parties under the doctrine of promissory
estoppel. This doctrine applies in
a.all states.
b.no states.
c.one state.
d.some states.
2) Kathy is the secured party in a transaction with Julie, who is the debtor. The
collateral is a 2007 Chevrolet F150 pick-up truck. Kathy files a financing statement in
which she describes the collateral as “a vehicle.” To perfect Kathy’s interest this is
a.not sufficient.
b.sufficient.
c.sufficient if the financing statement also includes Julie’s signature.
d.sufficient if the financing statement also includes the location of the collateral.
3) Sable and Rex agree while talking on the phone to form a partnership-The Home
Source-to deal in transfers of real property. To be enforceable, their agreement must
a.be filed in the appropriate state office.
b.be in writing.
c.involve the exchange of valid consideration.
d.not involve a third party.
4) In an effort to reduce traffic, Bay City enacts an ordinance that allows only a few
specific street vendors to operate in certain areas. A court would likely review this
ordinance under the principles of
a.the commerce clause.
b.the equal protection clause.
c.the due process clause.
d.the First Amendment.
5) 2.Demario and Evander want to form and do business as a corporation-Farm-2-Fork
RestaurantInc. A corporation is
a.a natural being.
b.a tangible thing.
c.an artificial person.
d.ultra vires.
6) Milo publishes a book titled No Equals, which includes a chapter from Paige’s
copyrighted book Olympic Champions. Milo’s use of the chapter is actionable provided
that
a.consumers are confused.
b.Milo’s use is intentional.
c.Milo’s use reproduces Paige’s chapter exactly.
d.Milo does not have Paige’s permission.
7) Secure Loan Company has notice that a promissory note is overdue if the note is a
demand instrument and Secure Loan takes it
a.an unreasonable time after its due date.
b.before its due date.
c.on its due date.
d.without noticing its due date.
8) Febo is an employee of Guitar & Drum Company. Guitar & Drum’s employee
manual states that workers, such as Febo, will be dismissed only for good cause. With
respect to the employment-at-will doctrine, this is
a.an example of the doctrine.
b.an exception based on contract theory.
c.an exception based on public policy.
d.an exception based on tort theory.
9) Under federal law, the calorie content of the food on a menu must be posted by
Organic Mix, LLC, if Organic Mix is
a.a restaurant chain with twenty or more locations.
b.a food distributor with twenty or more customers.
c.a food processor with twenty or more products.
d.a food producer with twenty or more acres.
10) Roderick negotiates a bearer instrument to Shauna by
a.assignment.
b.delivery.
c.indorsement.
d.promising to pay it.
11) Generally, a seller must warn those who purchase its product of the harm that can
result from the foreseeable misuse of the product.
12) Only a few types of property – a debtor’s wages or bank account, for example – can
be garnished.
13) A release bars any further recovery beyond the terms stated in the release.
14) According to utilitarianism, it does not matter how many people suffer a negative
effect from an act.
15) Informal contracts include all contracts other than formal contracts.