1) The verdict in a summary jury trial is not binding.
2) A broker is not an agent of the insurance company or the applicant.
3) Directors cannot use corporate funds or confidential corporate information for
personal advantage.
4) For civil sanctions to be imposed under Section 10(b) of the Securities Exchange Act
of 1934 and SEC Rule 10b-5, the violator must not have had an intent to defraud or
knowledge of his or her misconduct.
5) State consumer protection agencies are charged by Congress with the broadly stated
goal of preventing unfair and deceptive trade practices.
6) The Food and Drug Administration must ensure the safety of new medications.
7) Generally, a dissociated member of a limited liability company (LLC) has the right to
buy his or her interest in the LLC from the other members.
8) Preferred stock is an equity security with preferences.
9) With a few exceptions, almost anything is patentable.
10) Bee Hive Honey, LLC’s members include Chad, Dolores, and others. For purposes
of suing and being sued, Bee Hive Honey is
a.an aggregate of Chad, Dolores, and the other members.
b.a natural person in the members’ “family.”
c.a legal entity apart from the owners.
d.a non-participating third party.
11) April and other employees of Bodegas & Bistros Inc. (2B) maintain a
password-protected social media page to “vent about work.” When 2B learns of the
page, the company intimidates April into revealing the password, and after reviewing
the posts, fires her and the other participants. Most likely, this is
a.a violation of the Stored Communications Act.
b.within 2B ‘s rights as an employer.
c.a subject for dispute resolution by the communications providers that the employees ‘
page uses.
d.a “business-extension exception” under the Electronic Communications Privacy Act.
12) City Bank’s financing statement in collateral owned by Delta Waters Corporation
will expire in less than a year. Filed timely, a continuation statement could extend the
effectiveness of the financing statement for
a.one year.
b.two years.
c.five years.
d.ten years.
13) 18.Lovey is a shareholder of Made-2-Order Manufacturing Corporation with
preemptive rights. With these rights, Lovey can
a.buy a prorated share of a new issue of stock before other buyers.
b.choose to have Made-2-Order act exclusively in a certain area.
c.”preempt” managerial decisions that affect shareholders.
d.sell a prorated share of a new issue of stock before other sellers.
14) Fact Pattern 36-1
Jumbo Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the
Jumbo Juice trade name as a member of a select group of dealers that engage in retail
juice sales.
Refer to Fact Pattern 36-1. Jumbo Juice makes earnings claims to potential investors.
For those claims, the franchisor
a.can have a hypothetical basis.
b.must have a reasonable basis.
c.must have an actual basis.
d.can have any or no basis.
15) Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy
a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these
parties are subject to the Truth-in-Lending Act, Regulation Z applies to
a.the car loan only.
b.the home repair loan only.
c.the retail installment sale only.
d.the car loan, the home repair loan, and the retail installment sale.
16) Paca is declared mentally incompetent. Quelita, Paca’s friend, insists that Paca
transfer her considerable assets to Quelita “for safekeeping.” If Paca makes this “gift,” a
court might conclude that it is not effective on the ground that there was no
a.acceptance by the donee.
b.constructive delivery.
c.donative intent.
d.relinquishment of control.
17) Mont Blanc S.A., a French firm, imports its goods into the United States and offers
those goods for sale at “less than fair value.” “Fair value” is the price of Mont Blanc’s
goods in
a.the European market.
b.France.
c.the United States.
d.the world market.
18) Perfect Poultry Company agrees to sell chicken, turkey, and other meats to Quik
Markets, Inc., to sell to its customers. Normally, their contract would not be enforceable
unless it includes
a.the duration of the deal.
b.the price of the goods.
c.the quantity of the goods.
d.the shipping arrangements.
19) To adjust debts and institute a repayment plan that is less expensive and less
complicated than other options, Buffalo n’ Beef Bar-B-Q Restaurant, a small business,
may file a petition in bankruptcy for relief through
a.a liquidation.
b.a reorganization.
c.a repayment plan.
d.a family-farmer bankruptcy plan.
20) Quaff n’ Quench Caf© buys twenty-five crates of oranges from Reynaldo Produce,
Inc. The parties agree to ship the oranges “F.O.B. Quaff n’ Quench ” via Swiftline
Trucking Company. The oranges rot in transit. The loss is suffered by
a.Quaff n’ Quench.
b.Swiftline.
c.Columbia.
d.Reynaldo Produce.
21) Hal’s 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.
22) Sara believes that she has a strong case against Tom for the breach of an
employment contract. Despite this belief, Sara cannot file a suit against Tom after the
expiration of the time allowed for the filing under
a.a statute of limitations.
b.the doctrine of laches.
c.an equitable maxim.
d.the remedy at law.
23) Marco conveys three acres of wetlands to Nature Preserves, Inc., with a deed that
warrants only that Marco held good title during his ownership of the property. This
deed is
a.a grant deed.
b.a quitclaim deed.
c.a special warranty deed.
d.a warranty deed.
24) For purposes of diversity of citizenship, a corporation is a citizen only of the state in
which its principal place of business is located.
25) When the meaning of a statute€s language is unclear and an agency interprets it, a
court need not follow the interpretation even if it is reasonable.
26) Anything less than complete performance is a material breach of contract.
27) Online defamation is wrongfully hurting a person ‘s reputation by communicating
false statements about that person to others online.
28) Generally, the law assumes that the principal is aware of any information acquired
by the agent that is relevant to the agency.
29) Banks may not assign their loan contracts to other firms.
30) Under a finance lease, the lessee can stop performing and making lease payments if
the leased equipment turns out to be defective.
31) Eminent domain is the condemnation power of government to take land for public
use.
32) A sight draft may be payable on acceptance.
33) Ethics is as well defined as the law.