1) Common carriers can contract away their liability for damaged goods.
2) Under the principle of rights theory, one person’s principles are as “right” as
another’s.
3) More than two hundred years ago, the Declaration of Independence recognized the
importance of protecting creative works.
4) The principle of comity basically refers to legal reciprocity.
5) Attachment gives the debtor a defense against a creditor’s attempt to enforce a
security interest in the debtor’s collateral.
6) A power of attorney is usually limited to a specific context, such as negotiating a deal
with a buyer.
7) Patsy files a petition in bankruptcy. At the moment of filing
a.an automatic stay goes into effect.
b.Patsy’s debts are discharged.
c.Patsy’s petition is dismissed.
d.Patsy’s property is distributed to her creditors.
8) Fact Pattern 14-B1
Bay City Mall requires its tenants to sign a lease that includes a clause releasing Metro
from liability in the event of monetary or physical injury no matter who is at fault.
Coco’s Chocolate Creations signs a lease with Bay City that contains the clause.
Refer to Fact pattern 14-B1. This clause is
a. a covenant not to compete.
b.an adhesion contract.
c.an exculpatory clause.
d.an illusory promise.
9) Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and
other items, but makes no payments on the account. To collect the debt, Mako, the
manager, contacts Kip€s parents. This violates
a.no federal law.
b.the Fair and Accurate Credit Transactions Act.
c.the Fair Debt Collection Practices Act.
d.the Truth-in-Lending Act.
10) Sales Marketing Corporation and Tech Support, Inc., negotiate a contract. If the
contract has all of the elements necessary for one of the parties to enforce it in court, it
is
a.a valid contract.
b.a voidable contract.
c.a void contract.
d.an unenforceable contract.
11) Oni’s Adventure Travel and Paquito’s Wild River Tours form a joint venture. Oni
can participate in the venture’s management
a.only to the extent that she assumes liability for the venture’s debts.
b.only to the extent of her investment in the venture.
c.to any extent.
d.to no extent.
12) Lisa brings a successful lawsuit against her employer Metal Mold & Die
Corporation for unlawful discrimination. Lisa may be awarded
a.back pay, but not retroactive promotions.
b.retroactive promotions, but not back pay.
c.damages, but not back pay.
d.back pay, retroactive promotions, and damages.
13) Bayside Marina Company and Canoes & Kayaks Inc., share officers, directors,
employees, property, and equipment. In reliance on Bayside Marina’s reputation,
Delivery Transport Inc. contracts to perform services for Canoes & Kayaks, but the firm
does not pay. In terms of liability to Delivery Transport, a court is most likely to treat
Bayside Marina and Canoes & Kayaks as
a.a pass-through entity.
b.a natural person.
c.a tax-paying entity.
d.a partnership by estoppel.
14) Ramon is a shareholder of Quantum Mechanix Corporation. Ramon could normally
exercise appraisal rights if Quantum participated in
a.a consolidation.
b.a dissolution.
c.a liquidation.
d.a winding up.
15) Eden Valley Ranch and Farm Supply Corporation enter into a contract for a sale of
fencing materials. Farm Supply, a merchant who deals in goods of the kind, makes
implied and express warranties in connection with the sale. Under the UCC, if these are
inconsistent
a.all implied warranties displace all express warranties.
b.all express warranties displace all implied warranties.
c.the implied warranty of fitness for a particular purpose takes precedence.
d.the implied warranty of merchantability takes precedence.
16) Marcos buys a pneumatic drill from Nu Tools Inc. Owen leases a table saw from
Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of
defects in the goods that indicate breaches of warranty. An action for breach of warranty
accrues when
a.the seller or lessor tenders delivery.
b.the buyer or lessee becomes aware of the breach.
c.the nonbreaching party notifies the breaching party of the breach.
d.four years have passed since the breach occurred.
17) NoGas, Inc., designs and makes a non-fuel propulsion system that copies parts of
Omni Momentum Corporation’s designs without Omni’s permission. This is most likely
a.copyright infringement.
b.patent infringement.
c.trademark infringement.
d.not infringement.
18) Sweet Fruits contracts with Fruits to You, Inc. for a delivery of two hundred pounds
of strawberries to be delivered by Keep Kool Trucking, a trucking company with
refrigerated trucks. On the day of delivery, the refrigeration units on Keep Kool’s trucks
are not working. Fruits to You
a.may ship the goods to Sweet Fruits using another trucking company with refrigerated
trucks.
b.must refund Sweet Fruits’ money and cancel the contract.
c.must wait to ship the strawberries until Keep Kool has fixed its trucks.
d.must ship the goods through a different carrier and pay Sweet Fruits incidental
damages.
19) OnTrack Rehabilitation Center signs an agreement with Platinum Bank to borrow
$40,000 at 20 percent interest. Later, the state legislature passes a law lowering the
maximum permissible rate of interest to 15 percent. OnTrack’s best argument for
avoiding payment to Platinum Bank is that
a.performance of the contract is commercially impracticable.
b.payment of the loan would force the debtor into bankruptcy.
c.the law has rendered performance of the contract illegal.
d.the specific subject matter of the contract has been destroyed.
20) An indorser is secondarily liable on an instrument.
21) An order instrument must identify the payee with certainty.
22) To rescind a contract, the parties must make a second agreement that satisfies the
legal requirements for a contract.
23) Demetri’s will provides for a distribution of his assets€including cash, jewelry,
household goods, bank accounts, investments, a home, a vacation condominium, and
other personal and real property€on his death. Who “distributes” this property, and what
are the steps involved?
24) The writing requirement under the Statute of Frauds means that an agreement must
be a formal written contract.
25) An obligation is enforceable only if it is made in return for actions or events that
have already taken place.
26) A principal whose identity is totally known by a third party with whom an agent
contracts on the principal’s behalf is an undisclosed principal.
27) An advertisement is generally considered an offer.
28) The homestead exemption interacts with other areas of the law and can sometimes
operate to cancel out a portion of a lien on a debtor’s real property.