Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under
which Guardian Security agrees to provide security services for Hedge Fund offices for
as long as Hedge Fund needs them. This contract may be enforceable by
a. Guardian Security only.
b. Hedge Fund only.
c. any interested third party, such as a Hedge Fund shareholder.
d. either Guardian Security or Hedge Fund.
Rebecca hires Samson to perform music at Beccas Bistro, but he breaches the
agreement to accept a higher-paying job at Three Courses Dinner Theater. Rebecca files
a suit against him. The court will most likely
a. award damages to Rebecca.
b. cancelSamson and Three Coursescontract.
c. orderSamson to perform the contract with Rebecca.
d. reformRebeccaand Samsons contract.
Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis,
they snap in two. The cause is something that Beginners Run did not know about and
could not have discovered. Beginners Run breached
a. the merchants implied duty of inspection.
b. the implied warranty of merchantability.
c. no duty or warranty because Beginners Run knew nothing about the defect that made
the goods unsafe.
d. no duty or warranty because consumers should reasonably expect to occasionally
find a product that does not work as warranted.
Nikita, an employee-agent of Operational Processes, Inc., is authorized to access
company trade secrets. Nikita downloads those secrets onto a thumb drive. She then
quits Operationals employ and goes to work for Quantum Analysis, Inc., an Operational
competitor, with whom she shares the secrets. With respect to the agents duty of loyalty
to her principal, this is
a. unethical, but not illegal.
b. neither unethical nor illegal.
c. illegal, but not unethical.
d. unethical and illegal.
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 misrepresentation is
a. no one.
b. Lena.
c. Musical Instruments.
d. Nayda.
Dynamic Oil Corporation, a U.S. firm, owns property in Ecuador. When the
government of Ecuadorseizes the property, Dynamic Oilasks a U.S. court to order the
propertys return. The U.S. court rules that Ecuadoris exempt from the courts
jurisdiction. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Mexican employees of Farmacos Ltd., a subsidiary of Global Pharmaceuticals, Inc., a
U.S. firm, offer cash and gifts to regional Mexican government officials to obtain their
approval of favorable contracts. Steps that company managers might take to end the
practice and to influence other employees not to engage in similar conduct include
a. termination of the employees who offered the bribes.
b. mandatory antibribery training for all employees.
c. audit of company expensesto expose illegal and unethical payments.
d. all of the choices.
Satin, Silk & Swimwear, a womens clothing store, employs female attendants who as-
sist customers in the dressing rooms. Toribio, a forty-one-year-old male, applies for an
attendants job, but is not hired. In Toribios suit against Satin, Silk & Swimwear for em-
ployment discrimination under the Civil Rights Act of 1964, the store has
a. no defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. an affirmative action defense.
A Maryland state court can exercise jurisdiction over National Insurance Corporation,
an out-of-state company, if the firm has
a. minimum contacts with the state.
b. maximum contacts with the state.
c. medium contacts with the state.
d. no contacts with the state.
Mark is creating Nu2U.com, a Web site through which he will enter into contracts over
the Internet. Important terms to include in his offers include
a. provisions specifying the remedies if the contract is breached.
b. a detailed history of his business.
c. glowing reviews from former customers.
d. his educational background.
Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe
on the job, that all products are safe for consumers, and that the environmental impact
of the corporation is minimal. Palette Paints appears to believe in the concept of
a. the moral minimum.
b. corporate social responsibility.
c. “grey areas in the law.
d. government oversight.
Quentin questions whether there is consideration for his contract with Rainey to
exchange his performance with the Symphonic Saxophone Sextet for her payment of a
certain amount. To constitute consideration, there must be
a. a payment.
b. a performance.
c. a bargained-for exchange.
d. serious thought underlying each partys intent to contract.
Commercial Decor, Inc., files a suit against Discount MartCorporation, 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.
Otto mistakenly pays property taxes that should have been assessed against Pip. Otto
can recover the amount from Pip in quantum meruit
a. even if Pip was not aware of the error.
b. only if Pip tried to conceal the error.
c. only if Pip was aware of the error.
d. only if Pip consents.
Reno, driving while intoxicated, causes a car accident that results in the death of Santo.
Reno is arrested and charged with a felony. Afelony is a crime punishable by death or
imprisonment for
a. any period of time.
b. morethan one year.
c. more than six months.
d. more than ten days.
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.
To potential investors, Jumbo Juice must provide
a. actual earnings figures.
b. hypothetical earnings figures.
c. projected earnings figures.
d. none of the choices.
The Bay City Planning Department, the Coastal County Zoning Commission, the
Delaware Environmental Quality Agency, and the U.S. Bureau of Land Management
issue regulations.These rules constitute
a. administrative law.
b. case law.
c. stare decisis.
d. statutory law.
Crafted Metal Works, Inc., offers to design, make, and sell Downtown Transit Agency
fourteen streetcars. Crafted Metal authorizes a particular mode of communication, but
Downtown Transit sends an acceptance via a substituted means. This acceptance is
effective when it is
a. in transit.
b. received.
c. sent.
d. written.
Donato is Equipment Repair Service Companys chief executive officer. On Equipment
Repairs behalf, Donato solicits business, hires and fires workers, and handles finances.
Equipment Repair pays Donato varying amounts, depending on his “needs. Donato is
most likely
a. a principal.
b. an employee.
c. an employer.
d. an independent contractor.
Silvano owns Textbooks Plus, a sole proprietorship that sells textbooks and other school
supplies. When Silvano dies, Textbooks Plus will automatically
a. dissolve.
b. pass to Silvanos heirs.
c. pass to the state.
d. be offered for sale to its creditors and competitors.
Gem programs software to prompt a computer to continually crash and reboot. Gem
intends to install this program on various companies computer systems without the
companies knowledge. The program can reproduce itself, but must be attached to a host
file to travel from one computer network to another. This program is a
a. hacker.
b. botnet.
c. virus.
d. worm.
Odell invents “ProfitsUnbound, new stock-trading algorithm software, and applies for a
patent. If Odell is granted a patent, his invention will be protected
a. for ten years.
b. for twenty years.
c. for the life of the inventor plus seventy years.
d. forever.
Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC).
To succeed with an age-discrimination claim against MVMC, Lomax will have to show
that
a. Kyla is not qualified for Lomaxs job.
b. Lomax is qualified for his job.
c. MVMCs qualifications for Lomaxs job are too high.
d. no one could do Lomaxs job as well as he could.
Lock & Key Storage Pods and Maxi DiscountStores enter into a contract for a lease of
ten storage pods of a certain size. Lock & Key delivers ten pods, but they are not the
right size. Maxi Discount
a. cannot reject the entire shipment.
b. can reject the entire shipment.
c. must accept the entire shipment.
d. must reject the entire shipment.
Memphis Music Makers Inc.s stated purpose is to sell musical instruments. If chief
executive officer Neal contracts with Open SeasonFirearms in Memphis Musics name
to sell a shotgun, he has likely committed
a. anultra vires act.
b. ade facto act.
c. ade jure act.
d. a legal act.
Margoworks as an administrator and receptionist in Neons Garage Door Store. Neon
withholds federal taxes from Margos pay, and controls the methods and details of the
performance of her work. Margo is not authorized to modify the prices or other terms of
a sale at the store. Omar installs Neons Garage Door products at the buyers locations.
At the shop, Margo is
a. an independent contractor.
b. Neons employee only.
c. Neons employee and agent.
d. Neons principal.
Buena files a suit against Credit Services Corporation under the Civil Rights Act of
1964, alleging employment discrimination on the basis of gender on a disparate-impact
theory. To succeed, Buena must show that Credit Services hires fewer women than the
percentage of
a. qualified women in the local labor market.
b. qualified women in the United States.
c. women in Credit Servicess state.
d. women who apply to Credit Services for work.
Giancarlo copies Hedricks book, Information Free, in its entirety and sells it to Justice
Fair Books, Inc., without Hedricks permission. Justice Fair publishes it under
Giancarlos name. This is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.
Lorena is appointed as an agent for Milled Grains, Inc. The agency agreement is silent
as to the level of sales that Lorena is expected to achieve. She must
a. achieve nothing because the agreement says nothing on the issue.
b. attain the level that Lorena achieved with her previous employer.
c. maintain the level Milled Grains attained before Lorena became an agent.
d. use reasonable diligence and skill in selling.
Ray buys a rural vineyard from Sergio, who claims that it would be a prime site for a
housing subdivision. Ray later learns that the law does not permit the land to be used
for housing. Ray may
a. not rescind the contract.
b. rescind the contract only if Ray did not know of the law before the deal.
c. rescind the contract only if Sergio knew about the law before the deal.
d. rescind the contract only if the law is not common knowledge.
Downtown Contractors and Equipment Rental Corporation are parties to an oral
agreement for a one-year lease of a crane with payments totaling more than $10,000.
They may satisfy the Statute of Frauds by
a. mutually agreeing not to commit fraud.
b. repeating the terms in a phone call.
c. setting out the terms in a memo.
d. shaking hands on the deal.
Skip is accused of a crime. Skip can refuse to provide information about his allegedly
criminal activities
a. if he suspects the information will be used to prosecute him.
b. if the police do not promise to keep the information confidential.
c. if the information is “fruit of the poisonous tree.
d. under no circumstances.
Good Cookin Products Company makes heat convection ovens. Heidi discovers that
herGood Cookinoven is defective and sues the maker for product liability based on
strict liability. To win, Heidi must show that she
a. bought the oven from Good Cookin.
b. did not misuse the oven.
c. suffered an injury caused by the defect.
d. did not know of the defect.
Merchants are not required to warrant that the goods they sell are fit for their ordinary
purpose.
The law imposes strict liability as a matter of public policy based in part on the
assumption that manufacturers can better bear the costs associated with injuries caused
by their products.
A contract that cannot, by its own terms, be performed within one year from the day
after the contract is formeddoesnotneed to be in writing to be enforceable under the
Statute of Frauds.
The U.S. Constitution is the basis of all law in the United States.
An injured party may sue only the manufacturer of defective products that are subject to
comprehensive federal regulatory schemes.
Vested is the condition in which rights have taken effect and cannot be taken away.
Specifically targeting the customers of a competitor is always a legitimate business
practice.
Babs sees an e-book reader on the porch of Cocos house, takes the reader to her home,
and tells everyone she owns it. Danno, wielding a knife, forces Easter to give him her
smartphone, and runs away with it. Fritz breaks into Gingers apartment, takes alaptop,
and leaves. Hazel sells Idi an expensive wristwatch for a fraction of its value, admitting
that the watch is stolen property but claiming that she is not the thief. Which of these
acts are crimes, and what are the differences among them?
Cameron is an accountant in the accounting departmentof Data AnalyticsCompany.
Camerons sons college tuition is due within a week, or he cannot continue taking
classes. To meet the due date, Cameron transfers funds from Data Analytics to a
fictitious (false) bank account, planning to repay the firm within one month. The
transfer is discovered before the firm is repaid, and Cameron is arrested. What crime, or
crimes, if any, has Cameron committed?
The extreme risk of an activity is a defense against imposing strict liability.
Misrepresentation of a material fact cannot occur through conduct alone.
An exception to liability for copyrightinfringement is made under the “fair use doctrine.
Hua plots a new Iron Man adventure and carefully and skillfully imitates the art of
Marvel Comics to create an authentic-looking Iron Man graphic novel. Hua is not
affiliated with the owners of the copyright to Iron Man. Can Hua publish the novel as
his own work without infringing on the owners copyright?
The UCC applies only to the extent that it has been adopted a state.
Under a destination contract, the risk of loss passes to the buyer when the goods are
duly delivered to the carrier.
Compensatory damages are not available in cases of intentional discrimination in
violation of Title VII of the Civil Rights Act of 1964.
There can be no satisfaction unless there is first an accord.
A familiar example of an agent is the owner of a corporation.