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Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd.,
a Canadian firm, to give Pharma the right to sell Optimas products in Canada. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Porches & Verandas, Inc., agrees to build a screen porch for Quinn, but fails to
complete the job. Quinnhires Ramadas, Inc., to finish the project. Quinn may recover
from Porches & Verandas
a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
Apples & Pears Orchards contracts to hire Brigitfor one year to tend the fruit in its
commercial orchardsbut reserves the right to cancel the employment on thirty days
notice at any time after Brigit begins work. This promise is
a. enforceable.
b. illusory.
c. unliquidated.
d. unforeseen.
SurgeStop Company makes electrical cords and other connectors for electronic devices.
Rollo files a product liability suit against SurgeStop, alleging a warning defect. In
deciding whether to hold SurgeStop liable, the court may consider
a. consumers general lack of desire to read the products warnings.
b. the plaintiffs specific lack of desire to read the product warnings.
c. the obvious risks of other products.
d. the obvious risks of this product.
Ross, a research manager for Stock & Bond Investments, Inc., adheres to utilitarian
ethics.Ross will determine that an action is morally correct when it produces the
greatest good for
a. Ross.
b. Stock & Bond Investments.
c. the fewest people.
d. the most people.
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.
Rondiholds herself out as possessing special accounting skills. As an agent, she must
exercise the degree of skill or care expected of
a. a person having those skills.
b. an average, unskilled person.
c. a reasonable person.
d. the principal.
Stella is fifteen. In most states, for contractual purposes, Stella would be considered a
minor until she is
a. sixteen.
b. eighteen.
c. seventeen.
d. twenty-one.
In Coastal Fishing Companys suit against Dockside Marina, Inc., the jury returns a
verdict in Coastals favor. Dockside files a motion stating that even if the evidence is
viewed in the light most favorable to Coastal, a reasonable jury should not have found
in its favor. This is a motion for
a. a judgment in accordance with the verdict.
b. a judgment on the pleadings.
c. a summary judgment.
d. ajudgment n.o.v.
Largo is an agent for MaryElise. MaryElise gives Largo clear instructions to enter into
contracts on her behalf only on Mondays, Wednesdays, or Fridays. Largo enters into a
contract on her behalf on Tuesday. Largo has breached
a. the duty of performance.
b. the duty of loyalty.
c. no duty.
d. the duty of obedience.
The owners of Ngai Rice Valley Farms, Inc., and Ozuru Markets, Ltd., are citizens of
countries that had ratified the Convention on Contracts for the International Sale of
Goods. They enter into a contract for a sale of rice. To be enforceable, this contract
a. need not be in writing.
b. may be oral or written, but has certain requirements as to form.
c. must be in writing.
d. must comply with the UCCs Statute of Frauds provisions.
Jane enters into a contract with Jill to provide 100 roses for a dinner party. Jill fails to
deliver the roses. Jane initiates a suit against Jill, asking the court to order Jill to refund
Janes payment. Jane is
a. the plaintiff.
b. the defendant.
c. the binding authority.
d. the persuasive authority.
Neville files a suit against Olina. If Olina fails to respond,
a. Neville must appeal the case to a different court.
b. Olinas failure to respond will be considered to be a denial.
c. Neville will not be awarded the remedy sought.
d. Olina will have a default judgment entered against her.
Stop n Gas Convenience Stores, Inc., is an East Coast-based firm that does business
throughout the United States. With respect to this circumstance, the UCC has been
adopted by, and applies in,
a. all of the states, in whole or in part.
b. only the states on the Atlantic and Pacific coasts.
c. none of the states, to date.
d. only the lower forty-eight statesnot Alaska or Hawaii.
In a bike shop, Barrie, who is not knowledgeable about bikes, overhears Cullen say,
"This bike could win any race!Barrie buys the bike, but does not win any races with it.
Cullens statement is
a. a mistake.
b. fraudulent.
c. an opinion.
d. an attempt at undue influence.
Lydia, a minor, charges the cost of a smartphone at a Mobile Devices & Minutes store.
Two nights later, Lydia loses the phone at Natural Foods restaurant. She disaffirms the
phones purchase. Lydia owes Mobile Devices the reasonable value of the phone
a. if it is deemed a necessary.
b. if it is deemed a luxury.
c. if it is deemed unique.
d. under no circumstances.
Fresh Dairy, Inc., is the offeror and Gelato Ice Cream Company is the offeree under a
unilateral sales contract in which Hectors HeladoCorporation is also interested. Gelato
is not notified of Fresh Dairys performance within a reasonable time. Gelato
a. may treat the offer as having lapsed.
b. must assume that Fresh Dairy has started to perform.
c. must contact Fresh Dairy.
d. mustnotifyHectors.
Aerospace, Inc., makes and sells flight navigation equipment, through independent
salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act
covers
a. implied warranties, oral statements, and written promises.
b. only implied warranties that consumers are aware of.
c. only a salespersons oral statements.
d. only a sellers written promises.
Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys,
meet to try to resolve their dispute. A third party suggests or proposes a resolution,
which the parties may or may not decide to adopt. This is
a. arbitration.
b. mediation.
c. negotiation.
d. not a legitimate form of dispute resolution.
A statute enacted by theArizonastate legislature to regulate trucking affects interstate
commerce. In evaluating this statute, the courts will balance the burden that it imposes
on interstate commerceagainst
a. the courts authority to determine that a law is unconstitutional.
b. the purpose of interstate commerce.
c. the states interest in regulating the matter.
d. the statutes impact on noneconomic activity.
Service Employees International Union and Timberline Products, Inc., have their dis-
pute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree
to submit to arbitration. This is a ground for a court to
a. none of the choices.
b. review the merits of the dispute.
c. review the sufficiency of the evidence.
d. set aside the award.
Fifi, a clerk at a Games n Gamers store, takes a video game player and a selection of
new games from the store without permission. Fifi is liable for
a. appropriation.
b. conversion.
c. malicious prosecution.
d. wrongful interference with a business relationship.
Lewis wants to file a suit against Mikayla. Before any court can hear the case
a. the parties to the dispute must agree.
b. the court must have jurisdiction.
c. the court must issue a deposition.
d. the parties must own property.
Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like
other holders of common stock, they have a residual position in the overall financial
structure of Discount Retail, because they
a. are guaranteed to receive more than the amount of their investment.
b. are the last to receive returns for their investment.
c. have priority to the firms assets if itbecomes insolvent.
d. reside in the state of the firms incorporation.
Sara believes that she has a strong case against Tom for the breach of an employment
contract. Despite this belief, Sara cannot file a suit against Tom after the expiration of
the time allowed for the filing under
a. astatute of limitations.
b. the doctrine of laches.
c. anequitable maxim.
d. the remedy at law.
World Shipping Corporation enters into contracts with distributors and other buyers in
e-commerce and in traditional commerce. The UETA applies, if at all, only to those
transactions in which the parties agree to use
a. electronic means.
b. paper documents.
c. updates and cross-checks to orally verify any e-terms.
d. notarized documents.
Keralyn creates a Web site to post threatening messages about celebrities. The First
Amendment protects such speech
a. all of the time.
b. none of the time.
c. only if it is noncommercial.
d. only if it is symbolic.
Hu, Ivan, and Juana apply to work for King Poultry Company. These individuals
identities and eligibility to work must be verified by
a. King Poultry.
b. Hu, Ivan, and Juana.
c. Hu, Ivan, and Juanas countries of origin.
d. U.S. Citizenship and Immigration Services.
The government of North Korea violates an international law. Persuasive tactics to
remedy the situation fail. The only recourse of other nations is to
a. approve the World Trade Organizations enforcement of the law.
b. ask the International Court of Justice to enforce sanctions.
c. seek enforcement of the law through the United Nations.
d. take coercive actionsever relations, impose boycotts, go to war.
Mariah creates a t-shirt design that expresses support for Nathan, a presidential
candidate, and distributes t-shirts imprinted with the design to her friends. The t-shirts
are an example of
a. unprotected speech.
b. controlled speech.
c. symbolic speech.
d. illegal speech.
Under the doctrine of respondeat superior, a principal may be liable for any harm that
his or her agent causes to a third party.
Stare decisis is a doctrine obligating judges to help persons who have failed to protect
their own rights.
To restrict or encourage exports, Congress can set quotas on various items, such as
grain being sold abroad.
Federal law allows the intentional accessing of stored electronic communication even if
the accessing is unauthorized.
Traditionally, the courts have protected the right to free speech to the fullest extent
possible.
A party who in good faith performs substantially all of the terms of a contract can
enforce the contract against the other party.
In general, an illegal contract is void.
For an infringement of copyright to occur, the reproduction must be exactly the same as
the original.
Under the UCC, an offeree can accept an offer to buy goods by a prompt shipment of
conforming goods.
If a voidable contract is avoided, only the promisee, but not the promisor, is released
from it.
Vogel bought aphone made by WiFi Communications, Inc. Three months later, after
recharging the battery through a power jack, Vogel picked up the phone only to have it
ignite in his hand. Suffering a severe burn, Vogel filed a suit against WiFi, alleging that
a design defect in the phone weakened the connection between the power jack and the
motherboard, causing the wiring to overheat and creating an unreasonable safety
hazard.Could Vogel succeed on his strict product liability claim? Explain.
A courts review of an arbitrators award may be restricted.
A minor who enters into a contract for necessaries may disaffirm the contract but
remains liable for the reasonable value of the goods.
In a federal form of government, the national government does not share sovereign
power with the states.
To be enforceable as a contract, a writing must have been signed by the party who seeks
to enforce it.
Under the doctrine of promissory estoppel, a promise will not be enforced unless it is
supported by consideration.
The United States will not enforce a foreign courts decision.
An action may be legal but not ethical.
Punitive damages generally are awarded in lawsuits for breach of contract.
