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Craft Engineering, Inc., contracts for a sale of technical instruments to Detail Design
Company. Before the date on which performance is due, Craft notifies Detail that it will
not perform. This is
a. anticipatory repudiation.
b. perfect tender.
c. rejection of performance.
d. revocation of acceptance.
Paula develops a new espresso machine that she names "Sure Shot." She also writes an
operating manual for the machine. Paula can obtain trademark protection for
a. the espresso machine.
b. the "newness" of the espresso machine.
c. the name "Sure Shot."
d. the operating manual.
Noni and Myra enter into a contract for a sale of clarinets and other wind instruments.
Noni does not deliver. Myra can normally recover as damages the difference between
a. any loss avoided and any profit gained.
b. the actual price and the hoped-for price.
c. the contract price and the market price.
d. the current prices in the partie' locations.
Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a
contract has been formed, an element of prime importance is
a. the partie' intent.
b. Phil's rate of pay.
c. Phil's education.
d. the terms of Phil's employment.
Trademarks are protected from use on noncompeting goods by
a. the Federal Trademark Dilution Act.
b. the America Invents Act.
c. the Anticybersquatting Consumer Protection Act.
d. the Copyright Act.
Fruits & Vegetables, Inc., employs hundreds of seasonal and permanent workers, both
skilled and unskilled, in seven states. Fruits & Vegetables can hire illegal immigrants
a. if either the employer or the immigrants file special forms.
b. only if the employer files a special form.
c. only if the immigrants file special forms.
d. under no circumstances.
Wilson buys a promissory note from Oli. The note is due on December 5. December 5
is a Sunday. The note is
a. payable anytime the week of December 6.
b. payable December 6.
c. payable on December 5 only.
d. defective.
Elinor sells Cathy a horse for $2,000. When Elinor goes to the bank to deposit Cathy's
check, the check bounces. Elinor is furious and files suit against Cathy. Elinor probably
filed her suit in
a. a small claims court.
b. a domestic relations court.
c. a municipal court.
d. a probate court.
Big Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Big Eggs
cannot reasonably ask Omelet Express to pick up the eggs at
a. 1:00 P.M.
b. 2:00 P.M.
c. 3:00 P.M.
d. 4:30 A.M.
Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid
Corporation's design without Hybrid's permission. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. a theft of trade secrets.
Sara has a flat-screen TV, a Blu-ray disc player, set of computer games and an
investment portfolio that includes stock in the Internet game company Zynga. Sara's
intangible property includes
a. the TV and Blu-ray player.
b. the computer games.
c. the Zynga stock.
d. the TV only.
Hi-Yield Agriculture, Inc., makes a pesticide with a one-in-a-million risk to people of
developing cancer from exposure. This substance must be
a. disposed of before anyone develops cancer.
b. registered before it is sold.
c. taken off the market and placed in temporary storage.
d. used only in a way that avoids exposure to people.
Via the Internet, Rocky sabotages the computer system of Quik ChiknCompany, a food
manufacturer, to alter the levels of ingredients in the
company's products so that consumers of the food become ill. Rocky is a
a. cyberterrorist.
b. botnet.
c. virus.
d. worm.
Antonin, a federal judge, retires. The vacant position will be filled by a judge
a. appointed by the United States Supreme Court.
b. elected by voters.
c. appointed by the President.
d. appointed by Congress.
Judge Julia decides that the precedent for the case she is hearing is no longer correct
due to technological changes. She overturns the precedent when she decides the case. It
is most likely that her case will
a. go unnoticed by the public.
b. be thrown out of court.
c. receive a great deal of publicity.
d. be ignored by the media.
Doral, Esteban, and Fiona are general partners in Centreville Dentistry, a dental clinic.
Their agreement states 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. Doral's assignment of
his interest in the clinic to Hometown Lenders results in
a. nothing with respect to Doral or the clinic.
b. the automatic termination of the clinic's legal existence.
c. Doral's liability for all of the clinic's debts.
d. Doral's wrongful dissociation and liability for any damages.
Congress enacts a law prohibiting toys made in China from being sold in the United
States. The Hawaii state legislature enacts a law allowing the sale of Chinese-made
toys. Hawaii's law will most likely be struck down under
a. the commerce clause.
b. the equal protection clause.
c. the due process power.
d. the supremacy clause.
Farouk uses his computer to break into Global Financial Center's computer. Farouk is a
a. hacker.
b. phisher.
c. worm.
d. virus.
Franz asks Gateway Mortgage Credit for a loan to pay for the purchase of a home. With
a poor credit score and a high current debt-to-income ratio, Franz does not qualify for a
standard mortgage. Gateway is most likely to provide
a. a deed in lieu of foreclosure.
b. a home equity loan.
c. a subprime mortgage.
d. a workout agreement.
Wilma, who lives in New York, enters into a contract to buy a painting from Fred, who
lives in France. The contract includes all the costs of insuring and shipping the painting
from France to New York. The agent that made the shipping estimate makes a mistake
when adding up the costs and, as a result, the shipping cost listed in the contract is
$1,000 less than the shipping actually costs. A court will most likely
a. allow the parties to rescind the contract.
b. award damages to Wilma for the mistakes.
c. award damages to Fred for the mistakes.
d. enforce the contract without requiring changes.
Chris, a minor, signs a contract to purchase alcoholic beverages for Dine & Drink, his
parent' restaurant. The contract is
a. valid but may be disaffirmed.
b. valid but may not be disaffirmed.
c. void as a matter of law.
d. void unless it is also signed by Edie, the manager of Dine & Drink.
Toyoda Company buys gas pedals and other parts from suppliers and puts them in its
vehicles without changing their composition. If the pedals or other parts are defective,
strictly liable for any damage caused by the defects are
a. neither Toyoda nor the suppliers.
b. Toyoda and the suppliers.
c. the suppliers only.
d. Toyoda only.
Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a
Commodities corporate officer, gives Brenda written authority to buy for the firm as
many computers and peripheral devices as necessary. The next day, Dennis calls Brenda
and tells her to buy only fifty notebook computers and nothing else. Brenda shows the
written authority to E-Products, Inc., and enters into a contract with E-Products to buy
sixty notebook computers and a selection of printers, scanners, and extra storage media.
E-Products ships the order to Commodities. Is Commodities liable to E-Products under
the contract? Is Brenda liable? In each case, if so, why? If not, why not?
Giant Lift Corporation purchases all of the assets of Heavy Hydraulics Corporation.
With respect to Heavy Hydraulics's liabilities, Giant Lift is
a. automatically responsible.
b. not responsible under any circumstances.
c. responsible if Heavy Hydraulics is a competitor of Giant Lift.
d. responsible if the sale is in fact a merger or consolidation.
Sandy, a resident of Illinois, wants to file suit against Carl, a resident of Kansas, over
Carl's failure to pay Sandy for work on his house. The amount in dispute is $15,000.
Under diversity of citizenship requirements
a. no court can exercise jurisdiction.
b. a state court cannot take jurisdiction because the amount in controversy is less than
$25,000.
c. a federal court cannot take jurisdiction because the amount in controversy is more
than $10,000.
d. a federal court cannot take jurisdiction because the amount in controversy is less than
$75,000.
Memphis Music Makers Incorporated has a stated purpose to sell musical instruments.
If chief executive officer Tabitha contracts with Frenzied Firearms in Memphis Music
Makers's name to sell a shotgun, she has likely committed
a. an ultra vires act.
b. a de facto act.
c. a de jure act.
d. a legal act.
KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands.
KupaJava agrees to pay Lola a salary, plus commission. KupaJava stipulates the
standards that should be observed, the goals that should be attained, and the methods
that should be used. Lola is most likely KupaJava's
a. employee.
b. independent contractor.
c. principal.
d. power of attorney.
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 the
a. drawee.
b. indorser.
c. payee.
d. drawer.
Veggie Grocers orders by phone twenty cartons of canned beets from Organic Food
Packers, Inc. After ten cartons are delivered and accepted, Veggie repudiates the
contract. Organic can enforce the contract to
a. any extent because the order was placed orally.
b. no extent because the order was placed orally.
c. the extent of the ten accepted cartons.
d. the extent of the twenty ordered cartons.
Principal Resources Corporation contracts with Quality Construction to build an
addition to Principal's corporate office building. Quality contracts with Rite Supply
Company for materials for the addition but refuses to pick up the materials. Meanwhile,
Principal hires Skye, a certified public accountant, to work in its cost-accounting
division as an employee, with no authority to hire or supervise others. Skye asks Theo,
an outside experienced accountant, to advise her on certain accounting procedures but
fails to pay Theo for the service. Principal also contracts with Uma, a salesperson, to
solicit orders for its products in a designated territory. Uma obtains an order from Verity
Industries, Inc., which is assured the order will be filled soon. But Uma does not follow
through with the paperwork and fails to submit the order to Principal. Verity suffers a
loss. Rite Supply, Theo, and Verity Industries claim Principal is liable under agency law.
Discuss fully whether an agency relationship was created by Principal with Quality
Construction, Skye, or Uma.
Under a dram shop act, liability can be imposed without proof of negligence.
Constitutional safeguards protect the rights of individuals against federal government
actions.
A syndicate may be organized as a corporation but not as a partnership.
The first security interest to be perfected is the last in priority over any other perfected
security interests.
There is federal regulation of employer' retirement plans for employees.
Generally, a state court's power is limited to the territorial boundaries of the state in
which it is located and the immediately adjacent states.
An independent contractor is an employee.
Identification, risk of loss, and insurable interest are all concepts that are involved in
determining the rights and liabilities of parties to a contract.
A car is tangible personal property.
A partner always has the power and the right to dissociate from the partnership.
A surety can assert the debtor's bankruptcy as a defense.
Courts in many jurisdictions will consider the negligent actions of both the plaintiff and
the defendant when apportioning liability in a product liability action.
To take goods free of any security interest, a buyer in the ordinary course of business
cannot know about the interest.
Even after a tenant sublets leased premises, the tenant may be obligated to pay rent.
In general, courts consider the fairness of a contract when deciding if the contract is
binding.
