Minka uses her computer to secretly install software on hundreds of personal computers
without their owners’ knowledge.
Minka’s secretly installed software allows her to forward transmissions from her
unauthorized network to even more systems. This network is
a. a hacker.
b. a bot.
c. a botnet.
d. a worm.
Mona asserts that a deal she entered into with Nate is an unenforceable contract.
Defenses to the enforcement of a contract include
a. a desire not to perform.
b. adverse economic consequences.
c. results that do not match expectations.
d. the lack of a party’s voluntary consent.
To assist in detecting illegal bribes, Cut Rite Contractors, Inc., and all U.S. companies,
must
a. conceal financial records that reveal past bribes.
b. keep records that “accurately and fairly” reflect financial activities.
c. make bribes through third parties rather than directly to officials.
d. permit payments to foreign officials that are unlawful in that country.
The title of a case appears as “Duck Down Corp. v. Egret Feathers Co.” The party in
whose favor the case was decided
a. could be either party.
b. might be neither party.
c. must be Duck.
d. must be Egret.
The shares of Capital Corporation are publicly traded in securities markets. Capital
Corporation is
a. a private corporation.
b. a privately held corporation.
c. a public corporation.
d. a publicly held corporation.
Phil and Kelsey enter into a contract for a sale of Harmonica, a dog. Phil pays the price,
but Kelsey does not deliver. Phil can use specific performance as a remedy if
a. Kelsey is lawfully withholding delivery of Harmonica.
b. Phil cannot effectively cure the defect.
c. Harmonica is unique.
d. Harmonica has not been identified to the contract.
A state legislature enacts a statute that prohibits the advertising of video games
“because the games might be harmful to minors.” Despite this new statute, the president
of Games Marketing, Inc. (GMI), orders GMI marketers to place ads in any media.
When a GMI ad appears on HDTV, a local television station, GMI and HDTV are
charged with violating the statute. What is the defendants’ best defense against a
conviction?
Corbin, a partner in Doctors Medical Clinic, applies for a loan with Evermore Bank
allegedly on Doctors’ behalf but without the authorization of the other partners.
Evermore knows that Corbin is not authorized to take out the loan. Corbin defaults on
the loan. Liability for its unpaid amount is imposed on
a. Corbin and Doctors, jointly.
b. Corbin only.
c. Doctors only.
d. Evermore only.
EZ Equipment Corporation leases six forklifts to Fresco Refining Company, but as the
forklifts are delivered, they are lost in an explosion. Under the UCC, the parties’ rights
and obligations with respect to the loss depend on the concept of
a. physical possession.
b. product liability.
c. risk of loss.
d. title.
On the orders of their corporate employer, Della and Efron, employees of Fabulous
Fashionista, a clothing store, switch trademarks on clothing that comes into the store to
be sold to consumers. This is most likely
a. forgery.
b. larceny.
c. robbery.
d. no crime.
Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of
coffee beans. Java rejects the offer. The offer is
a. terminated.
b. valid for a reasonable time to give Java a ‘second chance.”
c. valid for the period of time prescribed by a state statute.
d. valid until ICBI revokes the offer.
Olin convinces Pia, who has no artistic ability, that Pia has considerable talent and
induces Pia to pay Olin $10,000 for art lessons. When Pia realizes the truth, she files a
suit against Olin. Pia is most likely to recover on the basis of
a. fraud.
b. mistake.
c. undue influence.
d. none of the choices.
Mona contracts to repair a computer for NuData, Inc. (NDI). Mona knows that without
the computer, NDI will lose a sale. Mona does not perform as promised. NDI files a suit
against Mona. As consequential damages, NDI can recover
a. the cost of a new computer.
b. the difference between Mona’s price and the actual cost of repair.
c. the loss of profit from the lost sale.
d. nothing.
On Tom’s eighteenth birthday, he decides that he no longer wants to keep a car he
bought from U-Pick Autos, when he was seventeen. His right to disaffirm the deal will
depend on
a. the car’s condition when Tom bought it.
b. the car’s current condition.
c. whether Tom acts within a reasonable period of time.
d. whether U-Pick has the right to disaffirm.
Vicky contracts with Warren for the delivery of hospice services to benefit Xavier. This
is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. a novation.
Posing as Sterling Bank, Roxanne e-mails Quentin, asking him to update his personal
banking information by calling a certain phone number. He makes the call and supplies
the data, which Roxanne promptly sells to Porcio. This is
a. no crime.
b. employment fraud.
c. phishing.
d. vishing.
Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of
a car. This contract is subject to
a. Article 2 of the UCC.
b. Article 2A of the UCC.
c. Article 11 of the UCC.
d. the common law only.
Minka uses her computer to secretly install software on hundreds of personal computers
without their owners’ knowledge.
Minka’s software is harmful to the computers on which she installed it. This program is
a. malware.
b. badware.
c. harmware.
d. infectware.
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.The least
expensive method to resolve the dispute between Java and Kaffe may be
a. arbitration because the case will be heard by a mini-jury.
b. litigation because each party will pay its own legal fees.
c. mediation because the dispute will be resolved by a non-expert.
d. negotiation because no third parties are needed.
Diego is a truck driver for Entertainment Supplies Company (ESC). Diego does exactly
what ESC tells him. Diego is
a. an employee.
b. an employer.
c. an independent contractor.
d. a principal.
Ralph, an investigator for the Securities and Exchange Commission, goes to the offices
of Trust & Worthy Accountants to inspect Trust & Worthy’s clients’ business records.
Government inspectors generally have a right to enter business premises
a. only with a warrant.
b. without a warrant.
c. once the issuance of a warrant has been sought.
d. under no circumstances.
Maia hires Nero, a real estate broker, to sell her warehouse. The warehouse burns down
before being sold. Nero is
a. Maia’s agent until Maia’s insurer pays Nero’s commission.
b. Maia’s agent until the burnt warehouse is sold.
c. Maia’s agent until the warehouse is rebuilt and sold.
d. no longer Maia’s agent.
Tasty Pastries, Inc., and other bakers refer to a “baker’s dozen” as consisting of a
collection of thirteen baked goods. This is an example of
a. course of dealing.
b. course of performance.
c. square dealing.
d. usage of trade.
To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, an online
dispute resolution (ODR) service. This limits these parties’ recourse to the courts
a. not at all.
b. until the ODR service has issued a decision.
c. with respect to any dispute arising between them.
d. with respect to this dispute only.
Maggie and Nate enter into a contract for the sale of car, but Nate later refuses to
deliver the goods. Maggie asks a court to order Nate to perform as promised. Ordering a
party to perform what was promised is
a. an equitable remedy.
b. an unenforceable demand.
c. a remedy at law.
d. a type of harm.
On April 1, OK Contractors, Inc., contracts to build a store for Lo-Cost Jewelers at a
specific location in Metro City. On May 1, Metro changes its zoning laws to prohibit
the construction of a commercial building at that location. When the store is not built,
Lo-Cost files a suit against OK. In this situation
a. OK is in breach of contract.
b. Metro is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
Baked Goods Company agrees to supply Comida Café with all the corn chips that it re-
quires for a year. A sudden demand for ethanol results in a shortage of corn, and the
price rises sharply. Baked Goods asks Comida to pay a higher price for the chips. This
request is
a. invalid as an attempt at extortion or the so-called holdup game.
b. invalid under the preexisting duty rule.
c. valid as a risk ordinarily assumed in business.
d. valid due to the unforeseen difficulty of the sudden price increase.
Theo and Uma orally agree on the sale of Theo’s Fitness Center to Uma and note the
terms on a sheet of the center’s stationery, which includes the Center’s letterhead but
which neither party signs. This agreement is most likely enforceable against
a. neither Theo nor Uma.
b. Theo and Uma.
c. Theo only.
d. Uma only.
A common ethical dilemma faced by the management of General Holdings Corporation
involves the effect that its decision will have on
a. one group as opposed to another.
b. the firm’s competitors.
c. the government.
d. the U.S. Chamber of Commerce.
Felicia invents a new valve to cap undersea oil spills, which she names “Great Catch.”
She also writes the installation manual to be included with each valve. Felicia could
obtain copyright protection for
a. the valve.
b. the “newness” of the valve.
c. the name.
d. the installation manual.
Kelly, Lars, and Mona agree to be partners in Neighborhood Delivery Service (NDS),
splitting the profits equally. Kelly contributes 67 percent of the capital. When NDS is
dissolved, its liabilities are greater than its assets. The losses are paid by
a. all of the partners in proportion to their capital contributions.
b. all of the partners in proportion to their shares of the profits.
c. Kelly because she contributed most of the capital.
d. Lars and Mona because they contributed the least of the capital.
RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment
Company copies the design without RiteMade’s permission. Steel’s conduct is
actionable provided
a. consumers are confused.
b. Steel’s conduct is intentional.
c. Steel’s conduct reduces the value of RiteMade’s design.
d. RiteMade’s design is patented.
A counteroffer does not terminate but continues an offer.
A bill of lading serves as a contract for the transportation of goods.
Stock buybacks are illegal and serve no legitimate purposes.
An expression of opinion”your customers will like this”is an offer.
Performance of an accord discharges an original contractual obligation.
An incorporator must have an interest in the corporation.
Small claims courts are inferior state trial courts.
A delegation relieves the party making it of the obligation to perform.
The First Amendment protects obscene speech.
Ed, a businessperson, is a friend of Fran, the owner of a candy store. Every day, Ed
spends five minutes in Fran’s candy store, looking at the candy and usually buying one
or two candy bars. One afternoon, Ed goes into the store, looks at the candy, and picks
up a $1 candy bar. Ed waves the candy at Fran without saying a word and walks out. Is
there a contract? If so, how would it be classified in terms of formation, performance,
and enforceability?
Stealing software is not a crime.
A jury’s good sense and careful consideration of consequences is known as
jurisprudence.
Linear reasoning proceeds from one point to another with the focal point being the
conclusion.
A severable contract is unenforceable as a violation of public policy.
A trade name cannot be registered with the federal government unless it is also a
trademark or a service mark.
It may be a crime to take another’s property, but it is not a crime to receive stolen goods.