1) The distribution of promotions and other job benefits according to a seniority system
is not normally a good defense to a suit for employment discrimination.
2) Goods associated with real estate often fall within the scope of Article 2
3) An environmental impact statement must analyze the impact on any affected business
of proposed environmental controls.
4) The most common exception to the employment-at-will doctrine is made on the basis
that the employer’s reason for firing the employee violates fundamental common sense.
5) If a buyer breaches a contract while the seller is still in possession of the goods, the
seller can resell the goods and hold the buyer liable for any loss.
6) One of the key advantages of the corporate form is the unlimited liability of its
owners.
7) An employer can voluntarily pay overtime to ineligible employees.
8) The National Pollutant Discharge Elimination System focuses on industrial
wastewater and storm water discharges.
9) Ordinarily, the remedy for a seller’s breach of a contract for a sale of real estate is
damages.
10) A court will pierce the corporate veil of a corporation that is formed to evade an
existing legal obligation.
11) Directors and officers must subordinate the welfare of the corporation to their
personal interests.
12) For a plaintiff to recover damages under Section 10(b) of the Securities Exchange
Act of 1934 and SEC Rule 10b-5, proof of intent is necessary.
13) The exterior boundaries of land extend down to the depth of the deepest hole and up
to the height of the tallest structure and no further.
14) The property of a decedent escheats to his or her designated heirs.
15) A buyer has an insurable interest in identified goods only if he or she has title to the
goods.
16) Smart Tablets, Inc., requires all distributors of its products to sell them at a specified
minimum price. This is a violation of antitrust law
a.if the anticompetitive effects outweigh the competitive benefits.
b.if the competitive benefits outweigh the anticompetitive effects.
c.under any circumstances.
d.under no circumstances.
17) Super Discount Store sells goods to consumers and businesses in several states in
the Midwest. Most of the goods are sold on credit. Super Discount often takes a security
interest with the goods as collateral. The state in which a financing statement should be
filed depends on the location of
a.the debtor.
b.the collateral.
c.the store in which the goods were sold.
d.the place from which Super Discount manages its operations.
18) Fact Pattern 22-B1
Economy Bank issues a letter of credit in favor of Finish & Refining Company, a U.S.
firm, to facilitate an international sales contract to buy resources from Global Mining,
Ltd., a British company.
Refer to Fact Pattern 22-B1. In this letter of credit, the account party is
a.Global Mining.
b.Finish & Refining.
c.Economy Bank.
d.Great Britain.
19) Stefano transfers copyrighted music recordings, without the copyright owners ‘
authorization, to his friends. This is
a.copyright infringement.
b.a license.
c.a safe harbor.
d.none of the choices.
20) To raise capital to form Business Apps Corporation with Cris, Dona sells bonds and
stock in other companies, and plans to register an initial public offering under the
Securities Act of 1933. SEC Rule l0b-5 covers
a.just about any form of securities.
b.only bonds.
c.only securities registered under the Securities Act of 1933.
d.only stock.
21) 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.
22) Merry draws a check payable to “Cash” and presents it to National Bank for
payment. This instrument is
a.a bearer instrument.
b.an order instrument.
c.valid but nonnegotiable.
d.void.
23) The government of Korea sets a limit on the amount of rice that can be imported
from the United States. This is
a.a dumping duty.
b.an antidumping duty.
c.a quota.
d.a tariff.
24) Residential Property Corporation owns apartment buildings in three states.
Regarding standards for maintenance of the buildings, Residential Property should
consult
a.the applicable city ordinances and state statutes.
b.the previous owners.
c.the long-term tenants.
d.the Uniform Landlords’ Maintenance Manual.
25) Lock & Key Storage Pods and Maxi Discount Stores 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.
26) Fresh Harvest Company, which is based on Georgia, packages and sells vegetables.
Hayden, who is a resident of Indiana, buys a Fresh Harvest product, eats it, and suffers
severe food poisoning. Hayden wants to file a suit against Fresh Harvest. The diversity
of citizenship between these parties means that
a.federal and state courts have concurrent jurisdiction.
b.federal courts have exclusive jurisdiction.
c.no court has jurisdiction.
d.state courts have exclusive jurisdiction.
27) Fact Pattern 37-1B
Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit,
mortgage, and investment firm. Their agreement states that it is a breach of the
agreement for any partner to assign his or her interest to a creditor without the consent
of the other partners.
Refer to Fact Pattern 37-1B. Bryn’s dissociation from the firm results in
a.the automatic termination of the firm’s legal existence.
b.the partnership’s buyout of Bryn’s interest in the firm.
c.the immediate maturity of all partnership debts.
d.Bryn’s purchase of her interest in the partnership from the firm.
28) The United Nations Convention on Contracts for the International Sale of Goods
(CISG) is the uniform international sales law of countries that account for more than
two-thirds of all global trade.
29) If a homeowner defaults, or fails to make the mortgage payments, the lender has the
right to foreclose on the mortgaged property.
30) An instrument is nonnegotiable unless the word “negotiable” is printed on it.
31) In a limited partnership, a limited partner has full responsibility for the partnership
and for all its debts.
32) The use of additional evidence distinguishes the motion for summary judgment
from the motion for judgment on the pleadings.
33) There is a duty to warn about risks that are obvious or commonly known.
34) An offer must be practical to be effective.
35) If a minor can return only damaged goods, the minor cannot disaffirm the contract
and obtain a full refund of the purchase price.
36) The types of product defects that have traditionally been recognized in product
liability law include manufacturing defects.