1) Property consists of the legally protected rights and interest of a person in anything
with an ascertainable value that is subject to ownership.
2) The results of a consolidation are the same as those of merger.
3) A bank may contractually shift to the customer the risk of forged checks created
electronically or by the use of nonmanual signatures.
4) The act of state doctrine provides that the judicial branch of one country will
examine the validity of public acts committed by a recognized foreign government
within the latter’s own territory.
5) The Revised Model Business Corporation Act gives a close corporation less
flexibilityin determining its rules of operation.
6) Linus hires Mieko to act as his agent to purchase Ngoc’s Southeast Asian Buffet.
Linus tells Mieko to reveal only that she is buying the restaurant on behalf of a third
party, without telling Ngoc’s seller who that third party is. Linus is
a. a disclosed principal.
b. not a principal.
c. an undisclosed principal.
d. a partially disclosed principal.
7) Industrial Solvents, Inc., averages $15,000 profit per day before deciding to ignore
air pollution standards, after which the average is $30,000. Industrial Solvents is subject
to a fine of
a.$0.
b.$15,000 per day.
c.$30,000 per day.
d.$30,000 total.
8) The Pennsylvania Consumer Protection Agency (PCPA) investigates the marketing
practices of Respond Now!, Inc. The PCPA serves a subpoena on Respond Now!,
ordering the firm to provide certain business records, including its marketing
agreements with other companies. Respond Now! refuses to comply with the subpoena.
On what is the company most likely basing its refusal? Is a court likely to support this
position? Why or why not?
9) Therapeutic Pharmaceutical Company is subject to regulations issued by the Food
and Drug Administration, which is a federal agency. These regulations are part of the
body of
a.administrative law.
b.legislative law.
c.executive law.
d.statutory law.
10) Valley Paragliders Association files a suit against Wing Designers, Inc., claiming
that the consideration for their contract is inadequate. The court will most likely not
examine the adequacy of the consideration if
a.there is a large disparity in the amount of consideration exchanged.
b.the consideration involves the performance of services.
c.something of value passed between the parties.
d.the consideration is worth less than $100.
11) FastBreak Inc. is dissatisfied with its ranking in Google Inc.’s search results.
FastBreak files a suit against Google, seeking an injunction. Google argues that its
search results are constitutionally protected speech. FastBreak’s best argument against
Google’s position is that
a.the First Amendment protects humans against state censorship and protecting a
computer’s speech is not related to that purpose.
b.the trillions of decisions made by computers each day do not all constitute protected
speech.
c.computerized algorithms, which generate computer language, do not constitute
speech.
d.search results constitute commercial speech, for which the First Amendment provides
only limited protection.
12) Aerospace, Inc., makes and sells flight navigation equipment, through independent
salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act
covers
a.implied warranties, oral statements, and written promises.
b.only implied warranties that consumers are aware of.
c.only a salesperson’s oral statements.
d.only a seller’s written promises.
13) GreatGro, Inc., makes genetically modified seeds with properties that are identical
to Hearty Harvest Corporation’s patented seeds, without Hearty Harvest’s permission.
This is most likely
a.copyright infringement.
b.patent infringement.
c.trademark infringement.
d.not infringement.
14) Posy brings a lawsuit against Quisa over a sale of 350 acres of farmland. During the
trial, Quisa’s attorney asks questions of the plaintiff’s witness Raina. This is
a.a cross-examination.
b.a deposition.
c.a direct examination.
d.an interrogatory.
15) The U.S. Patent and Trademark Office (USPTO) wants to review certain records of
Omni App Corporation. The USPTO can legitimately gain access to the records through
a.agency coercion.
b.infiltrating Omni App€s computers without the firm€s knowledge.
c.public comment.
d.Omni App€s voluntary compliance.
16) An indorsement is a signature, with or without additional words or statements.
17) A successful defense releases the defendant from partial or full liability for a
tortious act.
18) If no fixed duration of the partnership is specified, the partnership is a partnership
in perpetuity, which means that the partnership cannot be dissolved.
19) Under the UCC, an agreement modifying a contract needs no consideration to be
binding.
20) Equipment Manufacturing Company tells First Choice Supplies, Inc., that it needs
an adhesive to do a particular job. First Choice provides a certain brand. When it does
not perform to Equipment Manufacturing’s specifications, Equipment Manufacturing
sues First Choice, which claims, “We didn’t expressly promise anything.” What should
Equipment Manufacturing argue?
21) Lori claims that she suffered injuries in an auto accident with an uninsured vehicle.
When her insurer Miserly Insurance Company does not pay her claim, she files a suit
against Miserly for breach of contract. The insurer files a motion to compel Lori to
comply with a discovery request for everything that she has posted on Facebook,
Twitter, and other social media sites since the accident. Why would the insurer want to
obtain such material? What might Lori argue in opposition to the motion? Should the
court grant the defendant ‘s request? Discuss.
22) Erin contracts in writing to sell her Ford-brand pick-up truck to Garth for $10,500.
Erin agrees to deliver the truck on Friday, and Garth promises to pay the $10,500 on the
following Monday. On Thursday, Garth tells Erin that he changed his mind and will not
buy the truck. Over the weekend, Garth changes his mind again and tenders $10,500 to
Erin on Monday. Erin has not sold the truck to another party but refuses the tender and
refuses to deliver. Garth claims that Erin has breached their contract. Erin contends that
Garth’s repudiation released her from her duty to perform under the contract. Who is
correct, and why?