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Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing
agreement with Total World Sports, a U.S. wholesaler of Suisses products. U.S. courts
will apply U.S. antitrust laws if
a. the agreement was made in Switzerland.
b. the agreement was made in the United States.
c. the price fixing has a substantial effect on U.S. commerce.
d. the Swiss government agrees to be sued in the United States.
Quik Downtown Delivery contracts with Ricos Tacos to deliver its products. Both
parties change their minds, however, and inform each other that they would like to
cancel the contract.The next day, Quik again offers to deliver Ricos products. Ricos is
willing to deal, but for a new price. Quik and Ricos
a. may agree to a new contract, but it cannot include a new price.
b. may agree to a new contract that includes the new price.
c. must perform their original contract.
d. must perform the part of their original contract that is executory.
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.
Neon hires Professional Janitorial Company to clean the store. Neon gives Professional
Janitorial instructions as to what needs to be cleaned and when. Professional Janitorial
is
a. an independent contractor.
b. Neons employee only.
c. Neons employee and agent.
d. Neons principal.
Mix n Match Clothing Corporation gives notice to Neely that Mix n Match is
terminating their franchise arrangement. Winding up the business requires
a. a new franchise agreement.
b. nothing more than closing immediately.
c. Neelys death, disability, or insolvency.
d. the return of Mix n Matchs property.
To identify Omar and verify his eligibility to work in the United States, Poultry
Processing Corporation relies on a school identification card. The card later proves to
be invalid. Poultry Processing may
a. be sanctioned for violating antidiscrimination law.
b. be sanctioned for violating immigration law.
c. not be sanctioned for violating any law.
d. be sanctioned for violating principal-agent law.
NoGas, Inc., designs and makes a non-fuel propulsion system that copies parts of Omni
Momentum Corporations designs without Omnis permission. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
Business Banners, Inc., and Cams Auto & Truck Sales Dealership enter into a contract
for a sale of thirty advertising banners emblazoned with Cams logo. The terms do not
explicitly or clearly indicate whether it is a destination or shipment contract. A court
would normally presume that it is
a. a delivery ex-ship.
b. a destination contract.
c. ashipment contract.
d. none of the choices.
Steaks n Fries Restaurant Companys decision makers view a particular risk in the
consumption of Steaks n Friesproducts as open and obvious. Continuing to market the
products without explicitly telling consumers of the risk could be justified from a
perspective of
a. duty-based ethics.
b. corporate social responsibility.
c. religious ethical principles.
d. outcome-based ethics.
Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC).
Lomax believes that he has been discriminated against on the basis of his age. For the
Age Discrimination in Employment Act to apply
a. Kyla must be forty years of age oryounger.
b. Kyla must be forty years of age or older.
c. Lomax must be forty years of age or older.
d. Lomax must have been MVMCs employee for at least forty years.
Lumber MillInc. is a private employer with more than twenty employees.
Itsemployment practices do not indicate a past pattern of discrimination. Itis 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 Metros labor pool.
d. required to implement an affirmative action policy that considers race merely as a
plus factor.
Klay arrests Leonida on suspicion of embezzlement. According to the United States
Supreme Court in Classic Case 10.3, Miranda v. Arizona, Leonida must be apprised of
certain constitutional rights
a. after any police interrogation.
b. at any time during police interrogation.
c. only at the request of the suspects attorney.
d. prior to any police interrogation.
Buckley is a general partner in Cut-Rate Shipping, LLLP, a limited liability limited
partnership, which cannot pay its debts. Buckley is personally liable for the debts
a. in proportion to the number of partners in the firm.
b. to no extent.
c. to the extent of his capital contribution.
d. to the full extent.
Round-Up Ranch and Smith & Jones, Accountants, are limited liability partnerships
(LLPs). The major features of an LLP are that it limits the personal liability of the
partners and
a. it allows the partnership to continue as a pass-through tax entity.
b. LLP statutes do not vary from state to state.
c. it can only do business in the state in which it was formed.
d. only a few states have enacted LLP statutes.
American Coffee Company and Beans Brokers, Inc., enter into a contract for the sale of
a certain quality and quantity of coffee beans, with Beans Brokers to determine the
price. The price must be set according to
a. the concept of good faith.
b. the principle of fair trade.
c. thepredominant-factor test.
d. thedoctrine of unconscionability.
Omega, Ltd., imports athletic shoes made in Southeast Asia into the United States. To
obtain a larger share of the U.S. market, Omega sells the athletic shoes at lower prices
here than in its exporting countries. With respect to these imports, the United States
may
a. do nothing.
b. assess antidumping duties.
c. order the return of the athletic shoes to the exporting countries.
d. confiscate the athletic shoes without just compensation.
Nikkiand Orlandoare limited partners in Port City Exports, a limited partnership. To
avoid personal liability for partnership obligations, they must not
a. acquire an interest in the firm.
b. contribute property to the firm.
c. engage in activities independent of the firms business.
d. participate in the firms management.
Almond Farms contracts for the sale of a certain quantity of nuts to Bulk Natural Foods
Stores.Almond Farms delivers nonconforming goods. Acceptance will be presumed
unless Bulk Natural Foods rejects the goods
a. within a reasonable time after delivery.
b. within a reasonable time after ordering the goods.
c. within any time, since hunting rifles are not perishable.
d. before the last day of the current hunting season.
Cloud Computing & Processing Corporation wants to hire Dhani, a noncitizen of
"extraordinary ability. To hire Dhani, Cloud Computing must petition
a. U.S. Citizenship and Immigration Services.
b. the Social Security Administration.
c. U.S. Immigration and Customs Enforcement.
d. the National Labor Relations Board.
Equestrian Stables Corporations articles list an incorrect address for its incorporator.
Under this circumstance, Equestrian Stables is most likely
a. a corporation by estoppel.
b. ade facto corporation.
c. ade jure corporation.
d. ultra vires.
Leslie commits an act via e-mail against Money Investment Company, a business in
New York, where the act is a cyber crime. Leslie resides in Ohio, where the act is not a
crime. Prosecution of Leslie in New York involves questions of
a. jurisdiction.
b. malware.
c. phishing.
d. service-based hacking.
Cowtown Creamery, Inc., needs a certain part for its pasteurizing equipment to continue
its operations and orders one for $3,000 from Dairy Supplies Company. Cowtown tells
Dairy Supplies that it must receive the part by Tuesday or it will lose $10,000. Dairy
Supplies ships the part late. Cowtown can recover
a. $13,000.
b. $10,000.
c. $3,000.
d. $0.
Orina hires Padget, a real estate broker, to sell her oceanfront house. The house is
destroyed in a hurricane before being sold. Padgetis
a. Orinas agent until Orinas insurer pays Padgetscommission.
b. Orinas agent until the destroyed house is sold.
c. Orinas agent until the destroyed house is rebuilt and sold.
d. no longer Orinas agent.
With a bill of lading, Interstate Transport Company acknowledges possession of certain
goods and contracts to deliver them. Interstate Transport is
a. a bailee.
b. a buyer in the ordinary course of business.
c. a good faith purchaser for value.
d. an F.O.B.
BioChem Corporation, ChemCo Company, and DexLabs Inc. make and distribute toxic
chemicals. In a product-liability suit against all of these parties, the court is most likely
to impose market-share liability if it cannot be proved which of the parties
a. was in privity with the injured plaintiff.
b. exercised the least amount of due care in making the product.
c. supplied the particular product that caused the injury.
d. holds the largest share of the market for the product.
Quade is an expert in twentieth-century art. Rachel visits Quades gallery, seeking to buy
artwork as an investment. Quade shows her a painting that in his opinion is by Picasso.
Quades statement is
a. an express warranty.
b. an implied warranty.
c. an opinion.
d. puffery.
Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting
the offer by March Signe may revoke the offer
a. beforeThomas accepts the offer.
b. before March 1, whether or not Thomas has accepted the offer.
c. only after Thomas accepts the offer.
d. only after March
Luke and Maya form Northwest Air Express, a general partnership. The essential
elements of this partnership do not include
a. a sharing of profits and losses.
b. a joint ownership of the business.
c. an equal right to management in the business.
d. goodwill.
Bailey is an agent for Culinary Delites Company. In the course of Baileys performance
for Culinary Delites, she pays Drivers Repair Service for certain vehicle maintenance
and repair work. Baileys right to obtain the amount of the payments from Culinary
Delites arises under the principals duty of
a. avoidance.
b. cooperation.
c. indemnification.
d. reimbursement.
Laird is an employee ofMotor Parts, an auto parts store.On the orders of his
employer,heswitches trademarks on parts that come into the store to be sold to
consumers. This is most likely
a. forgery.
b. larceny.
c. robbery.
d. obtaining goods by false pretenses.
Qiana has the right under a contract with Runway Retail, Inc., to buy the retailers
clothing overstock. Qianas sale of this right to Sades Style House is
a. a delegation.
b. an assignment.
c. prohibited.
d. athird-party beneficiary contract.
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.
Jumbo Juice makes earnings claims to potential investors. For those claims, the
franchisor
a. can have a hypothetical basis.
b. must have a reasonable basis.
c. must have an actual basis.
d. can have any or no basis.
Henry promises not to open his Hanks Lunchbox Café before 10:00 a.m. if Isis, who
owns Isiss Danish & Donuts next door, promises to close by 4:00 p.m. Henrys
consideration is
a. the destruction of a legal relationship.
b. the creation of a legal relationship.
c. a forbearance.
d. an exchange of money.
Taco Hot Dogs, Inc., regularly advertises its products. Under the First Amendment, in
comparison with noncommercial speech, the protection given these ads is
a. equallyextensive.
b. lessextensive.
c. moreextensive.
d. non-existent.
OnTrack Rehabilitation Center signs an agreement with Platinum Bank to borrow
$40,000 at 20 percent interest. Later, the state legislature passes a law lowering the
maximum permissible rate of interest to 15 percent. OnTracks best argument for
avoiding payment to Platinum Bank is that
a. performance of the contract is commercially impracticable.
b. payment of the loan would force the debtor into bankruptcy.
c. the law has rendered performance of the contract illegal.
d. the specific subject matter of the contract has been destroyed.
Damien buys a copy of the book Exchange. Later, after reading the book, Damien sells
it to his sister. Under the first sale doctrine, Damiens sale of the book is
a. legal.
b. legal only if the copyright has expired.
c. legal only if Damien sells it for less than he paid for it.
d. illegal.
On dissolution, the creditors of the partnership, but not the creditors of the individual
partners, can make claims on the partnerships assets.
All aspects of software are protected by copyright law.
Under the Fourth Amendment, general searches through a persons belongings are
permissible.
Courts typically set aside contracts because a party did not volunteer pertinent
information.
Only a statement made after a contract is entered into can be an express warranty.
Litigation is the process of resolving a dispute through the court system.
Under the UCC, an agreement modifying a contract needs no consideration to be
binding.
A principals ratification of an agents unauthorized act must be express.
In an express contract, the terms are fully and explicitly stated in words.
Under federal law, an e-document is not as enforceable as a paper one.
According to utilitarianism, it does not matter how many people suffer a negative effect
from an act.
A lessee is a party who transfers a right to the possession and use of goods under a
lease.
The theft of trade secrets is a federal crime.
The Foreign Sovereign Immunities Act broadly defines commercial activity.
When the parties terminate an agency, it is the principals duty to notify any third parties
who know of the existence of the agency that it has been terminated.
Motors Repair Company contracts to sell a car to Nikki for $3,500. Nikki gives Motors
Repair a worthless check for the price. Nikki assigns her right to the car to Opie. If
Motors Repair refuses to deliver the car to Opie and Opie sues, can Motors Repair raise
Nikkis fraud as a defense against delivery of the car to Opie? Explain.
A mini-trial is a private proceeding in which each partys attorney argues the partys case
before the other party.
An unenforceable contract is one that cannot be enforced because of certain legal
defenses against it.
When outrageous conduct consists of speech about a public figure, the First
Amendments guarantee of freedom of speech limits emotional distress claims.
