Sonia manages a Tasty Pastry store for United Food Company. To manage the business,
Sonia’s authority can be implied by
a. an inference from the position Sonia occupies.
b. any inference a reasonable customer or supplier would make.
c. any inference Sonia chooses to make.
d. no inference.
Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, “Buy your carpet
here, and I”ll install it for half of what the store would charge.” Dita buys the carpet,
which Bob installs for half the store’s price. Bob keeps the money. Bob has breached
a. no duty.
b. the duty of loyalty.
c. the duty of notification.
d. the duty of obedience.
Bodie’s application to City Bank for a credit card is denied. Bodie can obtain
information on her credit history in a credit agency’s files under
a. no federal law.
b. the Equal Credit Opportunity Act.
c. the Fair Credit Reporting Act.
d. the Fair Debt Collection Practices Act.
Listen Up! Corporation books and promotes concerts and other entertainment events,
for which Listen Up! also sells tickets. In weighing a challenge to Listen Up!’s
“monopolistic” ticket prices, a court looks at the relevant geographic market. This
encompasses
a. only areas in which Listen Up! does not have monopoly power.
b. only areas in which Listen Up! has monopoly power.
c. the area in which Listen Up! and its competitors sell, and their customers buy, the
tickets.
d. the entire United States in all cases.
Nancy and Owen negotiate a deal to transfer stolen body building equipment for
counterfeit currency that Owen will attempt to spend at Plenty Good! Discount Mart.
This contract is
a. enforceable.
b. void.
c. voidable at the option of Nancy or Owen.
d. voidable at the option of Plenty Good!
Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc.
The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality
must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will
then pick up. Title to the goods passes to Pipes & Culverts when
a. Quality stores the drives.
b. Pipes & Culverts orders the drives.
c. Pipes & Culverts picks up the drives.
d. Quality gives Pipes & Culverts a warehouse receipt for the drives.
A suit is filed against Dormroom Furniture Unlimited, Inc., alleging that the firm has
committed the offense of monopolization. To determine whether Dormroom has
committed this offense, the court will consider the extent of Dormroom’s market power
and
a. how Dormroom acquired its power.
b. how Dormroom makes its products.
c. Dormroom’s customers.
d. Dormroom’s suppliers.
Coco is considering forms of business organization for her concessions businessCoco’s
Cupcakes. Most states require that a limited liability company have at least
a. no minimum number of members.
b. at least one member.
c. at least two members.
d. at least three members, including at least one general partner.
Mason creates a trust to prevent his son, Newt, the beneficiary, from assigning his rights
to future payments of income from the trust. This is
a. a charitable trust.
b. a constructive trust.
c. a spendthrift trust.
d. an illegal trust.
Entrepreneur Auto Rentals owes Sole Saver Auto Dealership $2,000. Entrepreneur
executes a note to Sole Saver as security for the debt. This security
a. does not constitute sufficient consideration for HDC status.
b. does not satisfy the value requirement for HDC status.
c. satisfies the consideration requirement for HDC status.
d. satisfies the value requirement for HDC status.
Dylan enters into a contract to manage the operations of Cash’s accounting office for
one year, renewable for subsequent one-year terms. If this contract is discharged like
most contracts, it will be
a. breached.
b. rescinded.
c. altered.
d. performed.
Bea takes out a life insurance policy with Vida Insurance Corporation that names her
spouse Wendell as the beneficiary. This is
a. a delegation.
b. an assignment.
c. a third party incidental beneficiary contract.
d. a third party intended beneficiary contract.
GR8 Skates Company makes and sells a pair of skates to Hugh. GR8 fails to exercise
“due care” to make the skates safe, and Hugh is injured as a result. GR8 is most likely
liable for
a. assumption of risk.
b. knowledgeable use.
c. negligence.
d. product misuse.
Elsa participates in a Title VII investigation at the firm where she works. As a result,
Elsa’s employer demotes her. Elsa can file a
a. harassment complaint.
b. retaliation claim.
c. constructive discharge claim.
d. disparate-impact discrimination claim.
Ralph signs an instrument promising to pay a total of $10,000 to Martha in $1,000
monthly installments with the final payment being made on August 1. Ralph
unexpectedly inherits $10,000 from his aunt on May 15. Ralph may
a. not complete his $10,000 payment before August 1.
b. complete his $10,000 payment before August 1.
c. increase his monthly payments by five percent, but not more.
d. increase his monthly payments by ten percent, but not more.
Khalil holds a security interest in inventory owned by Luc. Khalil protects his claim to
the inventory in the event of Luc’s default by
a. assignment.
b. perfection.
c. redemption.
d. retention.
Opie offers to sell his guitar to Pinky for $200. Pinky agrees. They complete and sign a
printed form and Pinky gives Opie a check for the price. The check is
a. a formal contract.
b. an informal contract.
c. a social contract.
d. no contract.
Southwestern Foods Corporation operates a packaging plant near the border between
the United States and Mexico. Due to the location, it would be easier for Southwestern
to employ noncitizens. With respect to persons not authorized to work in the United
States, an employer can
a. hire them.
b. recruit them.
c. refer them for a fee.
d. not hire them, recruit them, or refer them for a fee.
Portia owes Bon $500 on their roof repair contract, but refuses to pay. To collect, Bon
files a mechanic’s lien. Under a mechanic’s lien, security for the debt is represented by
a. Portia’s personal property.
b. Portia’s real estate.
c. the $500 owed under the contract.
d. the contract.
The government of Japan 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.
Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc.
Viable Shipping Corporation, the carrier, transports the books to Warehouse Storage
Company. Text’s right to stop delivery is lost when University’s rights to the goods are
acknowledged by
a. the appropriate government agency.
b. the students who opt to buy the books.
c. University Bookstores.
d. Warehouse Storage.
Nemo’s Seafood Restaurant Company pays income and other taxes collected by the
Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was
created by
a. Congress, through enabling legislation.
b. the courts, through the adjudicatory process.
c. the U.S. Constitution, through the tax and spend clause.
d. the U.S. Department of the Treasury, through a legislative rule.
Clear Lake Credit Corporation lends funds to Donny, a consumer, to apply to the cost of
a boat, which is the collateral for the loan. An enforceable security interest requires
a. a written agreement and Clear Lake’s possession of the boat.
b. a written agreement or Clear Lake’s possession of the boat.
c. the boat seller’s acknowledgement of the loan in writing.
d. Donny’s possession of the boat.
Jack and Jill, citizens of Vermont, are involved in a case related to the adoption of their
child. The Vermont state courts
a. have concurrent jurisdiction with federal courts over this case.
b. have original jurisdiction over this case.
c. have exclusive jurisdiction over this case.
d. do not have jurisdiction for over case.
Myron and Norah would like to form Originals, Inc., to do business in the art market.
Generally, the articles of incorporation for a corporation do not include
a. the corporate name.
b. the nature and purpose of the corporation.
c. the capital structure of the corporation.
d. the minutes of the first organizational meeting.
Meri, an accountant, includes a false statement in a report for Novelty Paper Products,
Inc. (NPPI) that is filed with the Securities and Exchange Commission. When Otho
buys stock in NPPI and loses money on the investment, he files a suit against Meri,
alleging fraud under the 1934 Securities Exchange Act. To avoid liability, Meri can
show that she
a. intended to defraud NPPI, not Otho.
b. intended to profit on stock trades generally, not only with Otho.
c. is an otherwise competent accountant.
d. was not aware her statement was false.
Senator Brown and other politicians want to restrict the flow of technologically
advanced products and data from the United States to other countries. To restrict or
encourage exports, Congress can
a. do nothing.
b. assess antidumping duties.
c. impose export taxes.
d. set export quotas.
The Pennsylvania legislature enacts a state law that violates the U.S. Constitution. This
law can be enforced by
a. no one.
b. the federal government only.
c. the state of Pennsylvania only.
d. the United States Supreme Court only.
To notify the public of a proposed rule, the Food Safety and Inspection Service, like
other federal agencies, publishes the proposal in
a. the news media.
b. a trade journal available to members of the industry.
c. the Federal Register.
d. an office memo that employees are free to take home.
Elton presents an uncertified check for payment more than six months after its date. The
check was drawn by Dakota on her account in First Community Bank. The usual
banking practice in such a case is to
a. cash the check.
b. consult the customer.
c. refuse to cash the check.
d. ask the payee what he or she would prefer.
Sharon agrees to assume a debt owed by Tom’s Guitars Inc. to United Funds Bank. The
agreement is not in writing. To be enforceable under the “main purpose” rule, the
promise must be for the benefit of
a. any party.
b. Sharon.
c. Tom’s Guitars.
d. United Funds.
Jackie inserts a debit card issued by her bank into a machine and keys in her personal
identification number. She is then able to withdraw $500 in cash. Jackie is using
a. an automated teller machine.
b. a point-of-sale system.
c. a direct deposit system.
d. an Internet payment system.
Lita replaces Manny in his job at Neighborly Business Corporation (NBC).
To succeed with an age-discrimination claim against CBC, Manny will have to show
that
a. Lita is not qualified for Manny’s job.
b. Manny is qualified for his job.
c. NBC’s qualifications for Manny’s job are too high.
d. no one could do Manny’s job as well as he could.
Concurrent jurisdiction exists when both federal and state courts have the power to hear
a particular case.
Antitrust legislation was created because of the belief that competition leads to lower
prices.
Business ethics focuses on ethical behavior in the business world.
A joint stock company is a hybrid of a partnership and a corporation.
Embezzlement can be committed only by physically taking property from the
possession of another.
One cannot acquire ownership by possession by “capturing” a wild animal.
Bribery of foreign government officials is both an ethical and a legal issue.
The UCC imposes some different rules on merchants.
Generally, a foreign government cannot sue under U.S. antitrust laws in U.S. courts.
A trustee has the power to avoid a sale of the debtor’s property.
A person who acquires an instrument knowing that the instrument contains an
unauthorized signature can still be afforded HDC protection.
Gambling involves the distribution of property by chance among persons who have
paid valuable consideration for the opportunity to receive it.
An agreement is NOT one of the requirements of a valid contract.
There is one set of procedural rules for federal courts and one set for state courts.
An agency relationship cannot exist in the absence of a formal agreement.
The members of a limited liability company enjoy limited liability.
The element of bargained-for exchange distinguishes contracts from gifts.
Evidence of prior agreements that differ from the written terms of a contract can be
introduced in court to alter the contract.
Suppliers are generally required to expect reasonably foreseeable misuses of their
products.
The crime of theft requires the taking of property, without regard to whether the
perpetrator knew it belonged to another.