1) Ren© operates The Spicy Chocolatier Caf© chain of restaurants. “The Spicy
Chocolatier Caf©” is
a.a certification mark.
b.none of the choices.
c.a service mark.
d.a trade name.
2) Open Pit Excavation Inc. operates a rock quarry next to Robyn€s vineyard and
winery. Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and
unreasonably interferes with Robyn’s enjoyment of her property.
The court is most likely to award Robyn damages
a.if letting the pollution continue is equally as harmful as stopping it.
b.if letting the pollution continue is less harmful than stopping it.
c.if letting the pollution continue is more harmful than stopping it.
d.under no circumstances.
3) Home2U Stores, Inc., sells household consumer goods. To create a purchase-money
security interest, Home2U must
a.assign, to a collecting agent, a portion of its accounts payable.
b.assign, to a collecting agent, a portion of its accounts receivable.
c.extend credit for part or all of the purchase price of the goods.
d.refer purchasers to a third-party lender.
4) 1.
Fact Pattern 15-B1
Digital Storage, Inc., offers to sell provide cloud-computing services to Entrepreneur
Enterprises, Inc., but mistakenly transposes some of the digits in the price so that
$15,400 appears in the offer as $14,500. Entrepreneur Enterprises accepts the written
offer.
Refer to Fact Pattern 15-B1. Entrepreneur Enterprises’ best argument in favor of
enforcement of the contract is that
a.a bilateral mistake does not afford relief from a contract.
b.a mistake of value does not afford relief from a contract.
c.a unilateral mistake does not afford relief from a contract.
d.the price was below the prices of comparable devices.
5) Garden Tool Company makes chain saws. Hadrian is injured while using a Garden
Tool saw and sues the company for product liability based on negligence. To win,
Hadrian must show that
a.Garden Tool did not use due care with respect to the trimmer.
b.Garden Tool used puffery in its advertising.
c.Hadrian was not experienced in the use of trimmers.
d.Hadrian was in privity with Garden Tool.
6) Lumber Mill Inc. is a private employer with more than twenty employees. Its
employment practices do not indicate a past pattern of discrimination. It is located in
Metro City, which has recently seen an increase in the number of its citizens who are
members of protected classes. Under the Civil Rights Act of 1964, Lumber Mill is
a.required to promote diversity in its workplace, but not to implement an affirmative
action policy.
b.not required to implement an affirmative action policy.
c.required to implement an affirmative action policy until the number of its minority
employees is proportional to the number of minority individuals in Metro’s labor pool.
d.required to implement an affirmative action policy that considers race merely as a
plus factor.
7) Loaf & Biscuit Company operates a commercial dough making and packaging
plant-a “major source”-that emits hazardous air pollutants for which the Environmental
Protection Agency has set maximum levels of emission. The plant does not use any
equipment to reduce its emissions. Under the Clean Air Act, this is most likely
a.a violation.
b.not a violation because dough is not considered a pollutant.
c.not a violation because the plant does not use any equipment.
d.not a violation because the plant is not a mobile source.
8) Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale
Distributors. When Genovese runs into the types of difficulties that contractors
ordinarily confront, Hawthorne agrees to pay extra compensation to overcome them.
Regarding the agreement to pay more, a court would likely
a.enforce it.
b.rescind it.
c.order the parties to renegotiate it.
d.not enforce it.
9) Evita pretends to be “Faith” online, fooling Garth into believing that Faith is his
friend. When Garth learns the truth, he is embarrassed and feels humiliated. But he
cannot recover damages because he cannot prove an actual injury, which is a
requirement for recovery in these circumstances on the ground of
a.mistake.
b.fraudulent misrepresentation.
c.undue influence
d.unconscionability.
10) Corporate Security Company provides other firms with security services. Questions
of what is ethical involve the extent to which Corporate Security has
a.a legal duty beyond those duties mandated by ethics.
b.an ethical duty beyond those duties mandated by law.
c.any duty beyond those mandated by both ethics and the law.
d.any duty when it is uncertain whether a legal duty exists.
11) Nashville, Tennessee, passes an ordinance to regulate waste disposal. The disposal
of waste may also be regulated by
a.all other levels of government.
b.no other levels of government.
c.the federal government only .
d.the Tennessee state government only.
12) Fact Pattern 17-B1
Able Contractors, Inc., enters into a contract with Beau to repair, rebuild, and remodel
Coastal Marina & Boardwalk, using products from Delta Lumber & Marine. Eatwell
Caf© is next to Coastal Marina.
Refer to Fact Pattern 17-B1. Delta Lumber will realize a profit from the sale of products
to Bayside to remodel Coastal Marina. Delta Lumber is
a.a delegatee.
b.an assignee.
c.an incidental beneficiary.
d.an intended beneficiary.
13) Open Pit Excavation Inc. operates a rock quarry next to Robyn€s vineyard and
winery. Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and
unreasonably interferes with Robyn’s enjoyment of her property.
The court is most likely to award Robyn an injunction
a.if letting the pollution continue is equally as harmful as stopping it.
b.if letting the pollution continue is less harmful than stopping it.
c.if letting the pollution continue is more harmful than stopping it.
d.under no circumstances.
14) Sarah has a checking account at Secure Bank. Sarah buys her roommate Sophie’s
two tickets to a Broadway musical for $200. Sarah writes Sophie a check for the tickets.
In this situation, Secure Bank is
a.the drawee.
b.the indorser.
c.the payee.
d.the drawer.
15) Dulcey agrees to cosign a promissory note for Excavation Equipment Leasing &
Sales to buy a backhoe. The note is payable to Federal Bank. Dulcey is an
accommodation
a.drawee.
b.indorser.
c.maker.
d.drawer.
16) First Community Credit Union and General Hydraulics. Inc., have their dispute re-
solved in arbitration. Before determining the award, the arbitrator meets with First
Community€s representative to discuss the dispute without General Hydraulics€
representative being present. If this meeting substantially prejudices General
Hydraulics€ rights, a court will most likely
a.compel arbitration.
b.review the merits of the dispute.
c.review the sufficiency of the evidence.
d.set aside any award.
17) When a buyer or lessee is a consumer, any limitation of consequential damages for
personal injuries resulting from consumer goods is prima facie unconscionable.
18) Intended beneficiaries can sue to enforce a contract.
19) Ordinarily, a waiver by a contracting party will not operate to waive subsequent,
additional, or future breaches of contract.
20) With respect to negotiability, the location of a signature on a document is important.
21) No federal statute specifically addresses cyber crime.
22) To avoid the risk of loss from theft, a holder may convert a blank indorsement to a
special indorsement.
23) On May 1, Bobbi-Ann, a real estate agent, and Corporate Properties, Inc., a
commercial property owner, sign an agreement about the sale of Corporate Properties’
office building. Under the terms, if a buyer makes a serious offer within sixty days,
Corporate Properties must pay Bobbi-Ann’s commission. Bobbi-Ann puts signs on the
building, ads in real estate pamphlets and a locally focused Web site, and features the
property in a “walking” tour online. On June 1, Corporate Properties tells Bobbi-Ann
that it is canceling their arrangement. Ten days later, Corporate Properties closes a sale
on the building without Bobbi-Ann’s participation. Bobbi-Ann files a suit against
Corporate Properties for the amount of her commission. In whose favor is the court
likely to rule, and why?