Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a
contract. When Nina breaches the contract, Michael obtains an award of damages in an
Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and
enforces the Irish courts decree. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
Adrian operates a recycled metals business and contracts to provide ten tons of scrap
steel at $500 per ton to be delivered to Build-It-Rite Materials, Inc., in seven months.
An unforeseen shortage of scrap steel suddenly develops, making it impossible for
Adrian to fulfill the contract for less than $5,000 per ton. Adrians best defense against
performing the contract would be that
a. performance of the contract is commercially impracticable.
b. procuring the steel would force the seller into bankruptcy.
c. the law has rendered performance of the contract illegal.
d. the specific subject matter of the contract has been destroyed.
Richly Merchandise, Inc., contracts with Stand-Rite Contractors to build a store.
Stand-Rite assigns the contract to Town Builders, which has a poor record of
completing projects. Richly could most successfully argue that the contract cannot be
assigned because
a. Richly did not consent to the assignment.
b. Richly did not receive adequate consideration for the assignment.
c. an assignment will significantly increase the risk of nonperformance.
d. Town Builders was not an original party to the deal.
Toro, S.A., a company based in Mexico, enters into a contract for the purchase of
portable livestock fencingfrom United Fencing Company, which is based in the United
States. This contract is governed by
a. Mexican law.
b. the provisions in the laws of both countries that are similar.
c. the Uniform Commercial Code.
d. theUnited Nations Convention on Contracts for the International Sale of Goods.
Becca is a minor. As a minor, Becca
a. is not usually legally bound by a contract.
b. has the right to avoid liability under a valid contract.
c. has the capacity to enter into a valid contract.
d. all of the choices.
The Constitution sets forth specific powers that can be exercised by the national
government and provides that the national government has the implied power to
undertake actions necessary to carry its expressly designated powers. Under the Tenth
Amendment, all other powers are expressly reserved to
a. none of the choices.
b. the states.
c. the national government.
d. thepeople.
Discount Mart Corporation contracts with companies in developing nations to produce
goods, because the wage rates in those nations are significantly lower than those in the
United States. Discount Mart takes steps to avoid bad publicity by monitoring its
suppliers workplaces to make sure that the employees are not mistreated. Discount Mart
is
a. acting unethically in its pursuit of good publicity.
b. acting unethically in its pursuit of profits.
c. acting unethically by monitoring its suppliers.
d. not acting unethically.
Sunny enters into a contract with Trey to act as his personal sports trainer. If a dispute
later arises and the contract contains unclear terms, the rules of contract interpretation
will give effect to
a. the parties intent as expressed in their contract.
b. what the promisor claims was the parties intent.
c. what the promisee claims was the parties intent.
d. what the parties now agree they intended.
Qiara is a holder of preferred stock in Rio Grande Irrigation & Development, Inc. Qiara
has priority over holders of Rio common stock as to
a. nothing.
b. payments of dividends.
c. the date on which Rio must repurchase the shares.
d. upward changes in the market price of the shares.
Gustafand Hilltop Country Club disagree as to the exact amount Hilltop owes Gustaf
for his landscaping work. They form a new agreement that, on fulfillment, will
discharge the prior obligation. This is
a. a covenant not to sue.
b. an accord and satisfaction.
c. a release.
d. promissory estoppel.
BurgerBoy Restaurant Corporation allows its trademark to be used as part of a domain
name for BurgerBoyNY, Inc., an unaffiliated company.BurgerBoyNYdoes not obtain
ownership rights in the mark. This is
a. goodwill.
b. fair use.
c. a license.
d. a safe harbor.
Energy Products Corporation and First Response Preparedness.com enter into a contract
for a sale of portable generators. Under a destination contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before tendering their delivery.
d. place the goods into the hands of a carrier.
Sweet Fruits contracts with Fruits to You, Inc., for 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 Kools 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.
Mirena serves in a representative capacity for Netanya. Orla is injured through Mirenas
negligence. Netanyamay be liable to Orla if Mirenas conduct occurred
a. due to a propensity Netanyawas not and could not have been aware of.
b. during normal working hours.
c. in the course and scope of Mirenas employment.
d. outside the parties employment relationship.
Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to
ensure that Cog & Gears activities are legal and ethical. The best course for Brewster
and Cog & Gear is to act
a. in good faith.
b. out of ignorance of the law.
c. with regard for the firms shareholders only.
d. in their own self-interest.
Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc.
The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality
must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will
then pick up. Title to the goods passes to Pipes & Culverts when
a. Quality stores the drives.
b. Pipes & Culverts orders the drives.
c. Pipes & Culverts picks up the drives.
d. Quality gives Pipes & Culverts a warehouse receipt for the drives.
Conrad and Delilah are employees of EcoCrop Feed & Seed Corporation. Under the
Equal Pay Act, EcoCrop can legitimately pay different wages on the basis of
a. seniority.
b. job descriptions.
c. substantial equality of skill, effort, and responsibility.
d. gender.
Miranda is a U.S. citizen working in Europe for Tourist Vacations, Inc., a U.S. travel
agency. Tourist fires Miranda for reasons that she believes violate U.S. antidis-
crimination laws. Those laws apply
a. extraterritorially.
b. only to signatories of the North American Free Trade Agreement.
c. only to members of the World Trade Organization.
d. only within U.S. borders.
Duffy and Elbert agree to hijack a truck carrying a load of almonds. Duffy later refuses
to go through with the crime. Elbert can
a. enforce the agreement.
b. obtain damages from Duffy in the amount of Duffys probable share of the illegal
profits.
c. recover in quasi contract for the loss of his share of the illegal profits.
d. not enforce the agreement or recover damages.
Mainstay, Inc., sponsors NowUCMe, a social-networking, video- and photo-sharing
site. To use NowUCMe, Mainstay requires users to accept terms of service associated
with the site.By clicking on “accept, users enter into a contract
a. after thirty days.
b. as soon as they begin to use the service.
c. when a court declares that a contract exists.
d. under no circumstances.
Barney hires Clean Air, Inc., to install a new air conditioning system in his Dental
Clinic, LLP. Barney does not have the right to control the details of Clean Airs
performance.
The relationship between Barney and Clean Airis
a. client and independent contractor.
b. employer and employee.
c. master and servant.
d. principal and agent.
Paradise Footwear buys a franchise from Quadrangle Athletic Shoes, Inc. This rela-
tionship, like all other franchise relationships, is governed by
a. contract law.
b. no law.
c. the Franchise Disclosure Document, or FDD.
d. Article 2 of the Uniform Commercial Code.
Lark promises to buy Maxs used textbook for $60. Lark is
a. anofferor.
b. an offeree.
c. a promisee.
d. a promisor.
Ginger and Holly are journalists in a courtroom hearing a case. The judge instructs
them not to use social media until the court is adjourned. Despite this instruction,
during the trial Ginger and Holly tweet play-by-play commentary for the public as
events unfold. Possible sanctions that the judge might impose include
a. fines and imprisonment.
b. fines but not imprisonment.
c. imprisonment but not fines.
d. none of the choices.
Business Rental Corporation (BRC) and Cartage Trucking Company enter into a
contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship
or tender goods to the lessee that
a. approximately conform to the contract description.
b. entirely conform to the contract description except in one or two details.
c. conform to the contract description in every way.
d. substantially conform to the contract description in most details.
Bobbie enters into a contract with Claire, who agrees to paint Bobbies studio apartment
for $500. Claire is the
a. obligor.
b. obligee.
c. assignee.
d. assignor.
Based on Estebans conduct, Floyd reasonably believes that Glynis has the authority to
act on Estebans behalf even though Glynis does not have the actual authority to do so.
Floyd makes a payment to Glynis for Esteban. Glynis keeps the money and disappears.
Esteban
a. can demand that Floyd make a repayment directly to Esteban.
b. can obtain damages from Floyd for Glyniss misconduct.
c. may be estopped from denying that Glynis had authority.
d. must repudiate Glyniss misconduct to avoid liability.
Alice is injured when she is struck by debris floating on her property, which was
flooded by a breach of Big R Ranchs reservoir. The rule that a person who engages in
certain activities may be liable under the doctrine of strict liability for any harm that
results was established by
a. private parties engaged in negotiation.
b. the U.S. Congress.
c a British court.
d. a U.S. court.
Febois an employee of Guitar & Drum Company. Guitar & Drums employee manual
states that workers, such as Febo, will be dismissed only for good cause. With respect to
the employment-at-will doctrine, this is
a. an example of the doctrine.
b. an exception based on contract theory.
c. an exception based on public policy.
d. an exception based on tort theory.
Deb buys a song through eSongs, an online music vendor. Before completing the
purchase and downloading the song, Deb must review a provision stating that she will
not make and sell copies of the song and is required to click “I agree. This provision is
a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.
Rashi contracts to work for Social Data Analysis Corporation during 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.
Organic Farms Company contracts to buy two tracts of land from Prime Bottomland,
Inc. Both parties believe that the two tracts are adjacent, but in fact they are not. Prime
Bottomlandis still willing to sell the land, but under these circumstances the deal would
adversely affect Organic Farms.
Because of the parties belief about the adjacency of the property, their contract is
a. unavoidable.
b. unconscionable.
c. unenforceable.
d. voidable.
Hayley is injured in an incident caused 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.
Misrepresentation in an ad is enough to show an intent to induce the reliance of anyone
who may use the product.
A foreign corporation normally does not need a certificate of authority to sell goods or
services via the Internet or by mail.
Technology has limited the potential for copyright infringement via the Internet.
Compared to business ethics, employee ethics is not an important issue.
A price list is a form of invitation to negotiate or trade.
A material fact is a fact that a reasonable person would consider important when
determining his or her course of action.
The term police powers encompasses just the enforcement of criminal laws.
Unless a contract provides otherwise, an installment contract is breached when only one
nonconforming installment impairs the value of the whole contract, no matter how
slight the impairment.
Frescoand Garcia form a partnershipHVAC Pros. Garcias capital contribution is
$10,000, and Frescosis $15,000. The partnership agreement provides that profits are to
be shared, with 40 percent for Garcia and 60 percent for Fresco. Later, Garcia makes a
$10,000 loan to the partnership when it needs working capital. When the partnership is
dissolved, its assets are $50,000, and its debts are $8,000. How should the assets be
distributed?
An innocent party does not need to suffer an injury to collect damages as a result of a
misrepresentation.
One can join a partnership even if all other partners do not consent.
For the doctrine of promissory estoppel to be applied, there must be a clear and definite
promise.
Generally, the law assumes that the principal is aware of any information acquired by
the agent that is relevant to the agency.
Any explicit understanding between the buyer and the seller determines when title
passes.
An expert witness is a person who is directly involved in the events concerning a
lawsuit.