During a dispute with Musicale Productions Inc., National Stagehands Union asks the
National Labor Relations Board (NLRB) for a ruling. The NLRB rules against
Musicale. The employer may appeal the decision to
a. the appropriate state court.
b. the appropriate U.S. court of appeals.
c. the president of the United States, who has eighty days to make a decision.
d. the U.S. Department of Labor.
Answer:
Trucking Dispatch Company and Ucello put their agency agreement into a written
document that describes the rights and duties of both parties. Ucello, as the agent, has
a. apparent authority.
b. none of the choices.
c. express authority.
d. implied authority.
Answer:
Rashi contracts to work for Social Data Analysis Corporation durÂing June for $4,500.
On May 31, Social Data cancels the contract. Rashi declines a job of a different type
and rank with Tech Collection, Inc., which would have paid $3500. Rashi files a suit
against Social Data. As compensatory damages, Rashi can recover
a. $4,500.
b. $4,000.
c. $500.
d. $0.
Answer:
Fact Pattern 15-2
CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register
‘calltalk’ as its second-level domain. Later, CallTalk’s less successful competitor,
CellTalk Company, chooses to use and register ‘caltalk’ (an intentional misspelling of
‘calltalk’) as its second-level domain. Still later, Call&Talk, Inc., uses the domain name
‘callltalk’ (also a deliberate misspelling of ‘calltalk’) without CallTalk’s authorization, to
sell pornographic phone conversations.Refer to Fact Pattern 15-2. By using a similar
domain name to CallTalk’s, CellTalk is most likely attempting to profit from its
competitor’s
a. goodwill.
b. fair use.
c. license.
d. safe harbor.
Answer:
Hayley is injured in an incident precipitated by Isolde. Hayley files a tort action against
Isolde, seeking to recover for the damage suffered. Damages that are intended to
compensate or reimburse a plaintiff for actual losses are
a. compensatory damages.
b. reimbursement damages.
c. actual damages.
d. punitive damages.
Answer:
Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical
procedure. This contract is enforceable by
a. Jolie.
b. Jolie’s medical insurance company.
c. Keaton.
d. no one.
Answer:
Franz owns GuestHouse Hotel. His ownership rights include the right to sell or give
away the property without restriction, as well as the right to comÂmit waste, if he
chooses. Franz’s ownership interest is
a. a fee simple absolute.
b. a profit.
c. a life estate.
d. the power of eminent domain.
Answer:
Mariah creates a t-shirt design that expresses support for Nathan, a presidential
candidate, and distributes t-shirts imprinted with the design to her friends. The t-shirts
are an example of
a. unprotected speech.
b. controlled speech.
c. symbolic speech.
d. illegal speech.
Answer:
Energy Market Corporation wants to build a wind power plant on priÂvate land, for
which a federal permit is required. For this action, an enÂvironÂmental impact
statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Answer:
To acquire the ownership of Bart’s mountain cabin by adÂverse possession, Cody must
occupy the cabin exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
b. until Bart files a suit.
c. without Bart’s knowledge.
d. with the state’s permission.
Answer:
Maggie and Nate enter into a contract for the sale of a car, but Nate later refuses to
deliver the car. Maggie asks a court to order Nate to perform as promised. Ordering a
party to perform what was promised is
a. specific performance.
b. damages.
c. rescission.
d. beyond the court’s authority.
Answer:
Hugh is a limited partner and Ida is a general partner in HI Volume, a limited
partnership. Joy is one of HI Volume’s creditors. On HI Volume’s dissolution, the party
whose rights have the first priority to the firm’s assets is
a. Hugh and Ida.
b. Hugh only.
c. Ida only.
d. Joy only.
Answer:
Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an
instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda
buys the instrument. Liable for this misrepresenÂtaÂtion is
a. no one.
b. Lena.
c. Musical Instruments.
d. Nayda.
Answer:
Forest & Field Company makes and leases a backhoe to Gallagher. Due to a defect
attributable to Forest & Field’s negligence, Gallagher is injured in an accident in which
his neighbor Helga is also hurt. In a product liability suit based on negligence, Forest &
Field may be liable to
a. Gallagher only.
b. no one.
c. Gallagher and Helga.
d. Helga only.
Answer:
HazMat Waste Corporation operates a hazardous waste storage facility. Concerned that
there may be a release of chemicals from the site, HazMat sells the property to
Investment Holdings, Inc. If there is a release, HazMat is most likely
a. liable.
b. not liable because the site was sold before the release.
c. not liable because HazMat was concerned about the release.
d. not liable because HazMat no longer operates the facility.
Answer:
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.
Answer:
Desdemona works for e-Innovation, Inc. Her job includes putting ‘spin’ on the firm’s
successes and failures. In this context, ethics has to do with how businesspersons, in
making their decisions, apply
a. legal doctrine.
b. moral and ethical principles.
c. corporate guidelines.
d. financial priorities.
Answer:
Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys,
meet to try to resolve their dispute. A third party sugÂgests or proposes a resolution,
which the parties may or may not decide to adopt. This is
a. arbitration.
b. mediation.
c. negotiation.
d. not a legitimate form of dispute resolution.
Answer:
Fact Pattern 18-1
Brad is a general partner, and Carlos and Dora are limited partners, in Eastside
Physicians, a medical clinic and limited partnership.
Refer to Fact Pattern 18-1. Carlos’s assignment of his interest in Eastside to Good
Credit Corporation results in
a. nothing with respect to Eastside’s existence.
b. the maturity of Eastside’s debts.
c. the suspension of Eastside’s business.
d. the termination of Eastside’s legal existence.
Answer:
Shane’s Auto Parts orders twenty tires from Tough Tires, Inc. The truck delivering the
tires to Shane’s is in an accident and ten of the tires are damaged. Shane’s Auto Parts
a. cannot reject the entire shipment.
b. must still pay for all twenty tires at the original contract price.
c. may inspect the tires and accept the shipment with a reduction in price.
d. must reject the entire shipment.
Answer:
Because many products cannot be made entirely safe for all uses, sellers or lessors are
liable only for products that are unreasonably dangerous.
Answer:
One element that normally must exist for a person to be convicted of a crime is the
performance of a prohibited act.
Answer:
A person who has been determined by a court to be mentally competent cannot form a
legally binding contract with another party.
Answer:
Misrepresentation in an ad is enough to show an intent to induce the reliance of anyone
who may use the product.
Answer:
Precision Tool Corporation sells a product that is capable of seriously injuring
consumers who misuse it in a foreseeable way, even though the label warns against the
misuse. Does the firm have an ethical duty to take this product off the market? What
conÂflicts might arise if the firm stops selling this product?
Answer:
Like Social Security, Medicare is funded by contributions from the employer and the
employee.
Answer:
Company codes are not law.
Answer:
An employer may not hire substitute workers to replace strikers.
Answer:
Dennis is a promoter for the soon-to-be-incorporated firm of eBroadcast Sports, Inc.
Dennis signs a contract with Fitz & Geraldo, Accountants, to render their services
before eBroadcast Sports is incorporated and for one year after the inÂcorporation.
eBroadcast Sports is incorporated. Three months later, after Fitz & Geraldo has
continued performing under the contract, the eBroadcast Sports board of directors tells
the accountants that it is canceling their conÂtract. Fitz & Geraldo files a suit against
Dennis and eBroadcast Sports, alleging breach of contract. Will Fitz & Geraldo prevail?
Answer:
A contract entered into by a minor is voidable at the option of either of the contracting
parties.
Answer: