Richard is an avid baseball fan and attends baseball games whenever he can. Richard
considers himself an expert on all things, including risks, related to baseball. One day a
ball flies into the stands, hits Richard in the head and seriously injures him. Richard can
probably successfully win a case against the sports stadium based on
a. negligence.
b. breach of duty of care.
c. defamation.
d. none of the choices.
Erasmus files a suit against Drain-Pro Plumbing & Repair LLC under the Civil Rights
Act of 1964, claiming reverse discrimination. To support this claim, Erasmus must
show that he is a member of
a. a protected class.
b. a majority group.
c. an employers’ association.
d. a union.
Leatherbound Stores, Inc., rejects a shipment of goods that does not conform to its
contract with Cowhide Corporation, but is unable to obtain instructions from the seller.
Leatherbound may
a. resell or return the goods only.
b. resell or store the goods only.
c. return or store the goods only.
d. resell, return, or store the goods.
Painless Dental Equipment Company is incorporated in Colorado. In Wyoming,
Painless is
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a non-entity.
Jordana is a member of Klondike Coffee, LLC, a limited liability company. Jordana is
liable for Klondike’s debts
a. in proportion to the total number of members.
b. to the extent of her capital contribution.
c. to the extent that the other members do not pay the debts.
d. to the full extent.
Mace copies Nick’s book, Mumbai Monsoon, in its entirety and sells it to Parkland
Books, Inc., without Nick’s permission. Parkland publishes it under Mace’s name. This
is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.
Edgy Engine Components, Inc., a maker of vehicle parts, refuses to sell to Fidgety
Fix-It, Inc., a national vehicle service firm. Edgy Engine convinces Greasy Motor Parts
Company, a competitor, to do the same. This is
a. a group boycott.
b. a market division.
c. a joint venture.
d. an exclusive-dealing contract.
Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing
Tours. Bayou repudiates the contract. Eventide’s recovery is measured at the time
a. Bayou advertised the goods.
b. Eventide ordered the goods.
c. Eventide learned of the breach.
d. Bayou knew that it would repudiate the contract.
Fact Pattern 16-1
Northeast Bank makes mortgage loans to consumers, including Mai, to buy homes.
Refer to Fact Pattern 16-1. For Mai’s loan, Northeast provides all required disclosures.
Mai has a right to rescind the mortgage
a. at any time.
b. under no circumstances.
c. within three business days.
d. within whatever period is most rational and appropriate.
Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana a
a. prediction.
b. promise.
c. bilateral contract.
d. void contract.
Rosa and Sean are directors of Tech, Inc. Rosa’s written authorization to Sean to vote
Rosa’s shares at a Tech shareholders’ meeting is
a. a violation of the duty of care.
b. a preemptive right.
c. a proxy.
d. a quorum.
Leo buys an exclusive territory in which he is authorized to set up a plant to make
Midwest Dairy, Inc., products. After receiving the formula, Leo begins making
Nice-brand ice cream and other Midwest products. This is
a. a chain-style franchise.
b. a distributorship franchise.
c. a manufacturing franchise.
d. no franchise.
Cody believes that Delta Corporation has discriminated against him on the basis of
gender. Cody files a suit against Delta under Title VII. To establish a prima facie case of
employment discrimination, Cody must show that
a. Cody is a member of a protected class.
b. Delta has no legal defenses against the claim.
c. discriminatory intent motivated Delta’s act.
d. other firms in Delta’s industry have committed discriminatory acts.
In deciding questions of corporate social responsibility, Valley Disposal & Recycling,
Inc., is concerned with
a. how the corporation can best fulfill any ethical duty to society.
b. the effect on corporate profits of ignoring any ethical duty to society.
c. whether the corporation owes any ethical duty to society.
d. all of the choices.
To acquire monopoly power in its market, Perfect Plastics, Inc., sets its prices lower
than its competitors. Under the Sherman Act, this is
a. a per se violation.
b. a violation if its competitors make similar deals.
c. a violation if it thereby acquires monopoly power.
d. not a violation.
During the trial phase of Fuel Corporation’s suit against Gas Stations, Inc., their
attorneys engage in voir dire. This is
a. an assessment of the validity of the arguments for both parties.
b. a determination of the issues to be argued before the court.
c. the trial.
d. the selection of jurors.
Lionel files a voluntary petition for bankruptcy under Chapter 7. The court will likely
deny a discharge of Lionel’s debts if he
a. conceals records of his financial condition with the intent to defraud a creditor.
b. does not have sufficient assets to pay all his secured creditors.
c. filed for bankruptcy twelve years ago.
d. has a criminal record.
Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Mart Stores,
Inc., a retailer. This is
a. “an unfair or deceptive act or practice.”
b. a per se violation.
c. not a violation.
d. subject to analysis under the rule of reason.
Utility Power Company has the right to run its power lines across Velma’s land. This is
a. a license.
b. an easement.
c. a profit.
d. condemnation power.
Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it
according to the contract specifications. Candy hires Do-We Fix-It Company to finish
the project. Candy may recover from Beachside
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.
Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth wishes to
terminate his tenancy. Under the common law, he must give his landlord
a. at least one week’s notice.
b. at least two weeks’ notice.
c. at least thirty days’ notice.
d. at least sixty days’ notice.
ViolentVideoGames, Inc. markets a variety of shooting, fighting and hunting video
games. A state statue is enacted that requires all video game manufacturers to label any
games with an option to kill something as “excessively violent.” A court would likely
hold this regulation to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
Olivia applies for a job with Petro Company. Petro does not hire Olivia because of her
ethnicity, or national origin. This is
a. reverse discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
Jamie is redoing his kitchen and decides he needs a floor sander to complete the job.
Jamie tells Rachel, his neighbor, that he needs a floor sander. Rachel tells Jamie to call
Home Repair Rentals, Inc. Home Repair Rentals leases Jamie a floor sander. In this
transaction the lessor is
a. Jamie.
b. Rachel.
c. Home Repair Rentals.
d. both Jamie and Rachel.
Mineral Mining Corporation is a U.S. employer. Mineral, and other U.S. employers,
must perform I-9 verifications for
a. a random selection of new hires.
b. every other new hire.
c. new hires with certain racial or ethnic characteristics.
d. each new hire.
Margaret is the top manager of Pecans, Inc. She sets strict ethical standards for all
employees. Margaret, however, often takes some of the company’s best nuts and sells
them from her house. The ethical tone at Pecans, Inc. is
a. likely to be good because Margaret has set such strict standards for her employees.
b. not likely to be good because although Margaret sets strict ethical standards for the
other employees, she does not follow them.
c. not related to either Margaret’s ethical standards or her own unethical behavior.
d. not likely to be good because employees tend to resent strict ethical standards.
Ben files a suit in a federal district court against Cathy. Cathy loses the suit, appeals to
the U.S. Court of Appeals for the Second Circuit, and loses again. Cathy asks the
United States Supreme Court to hear the case. The Court agrees to hear the case. This
means that
a. at least four justices approve of hearing the case.
b. Cathy’s petition does not raise a possibility of an important constitutional question.
c. the amount in controversy in Cathy’s suit is greater than $100,000.
d. the Court feels that the lower courts’ judgments were erroneous.
Fact Pattern 14-1
Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo
writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair
the car properly, issues a stop-payment order.
Refer to Fact Pattern 14-1. Capital Bank pays the check. Capital
a. can sue Echo for a wrongful stop-payment order.
b. can sue Fix-It for breach of contract.
c. can sue no one because it paid a check that was not properly payable.
d. is liable for Echo’s loss due to the wrongful payment.
Bess wishes to appeal a decision from a federal bankruptcy court. Bess must appeal to
a. a county court.
b. a federal district court.
c. the U.S. Supreme Court.
d. a state court.
Community Trust Bank provides Devlin with a mortgage to buy a home. The rate of
interest is fixed for seven years. At the end of that period, a large payment for the entire
balance of the mortgage loan is due. This is
a. a balloon mortgage.
b. an adjustable-rate mortgage.
c. an interest-only mortgage.
d. a violation of the law.
The Environmental Protection Agency has concluded that greenhouse gases, including
carbon dioxide emissions, do not constitute a public danger.
A court may depart from a precedent if the precedent is no longer valid.
Resale price maintenance agreements are subject to analysis under the rule of reason.
Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for
$10,500. Colby agrees to deliver the truck on Friday, and Efrem promises to pay the
$10,500 on the following Monday. On Thursday, Efrem tells Colby that he changed his
mind and will not buy the truck. Over the weekend, Efrem changes his mind again and
tenders $10,500 to Colby on Monday. Colby has not sold the truck to another party but
refuses the tender and refuses to deliver. Efrem claims that Colby has breached their
contract. Colby contends that Efrem’s repudiation released him from his duty to perform
under the contract. Who is correct, and why?
A student loan is discharged under Chapter 13 unless the creditor can show “undue
hardship.”
The Securities Exchange Act of 1934 provides for continuous, periodic disclosures by
publicly held corporations.
It is basic tenet of agency law that notice to the agent is notice to the principal.
Compensatory damages compensate an injured party for damages arising from the loss
of a bargain caused by a breach of contract.
An implied warranty of merchantability does not arise in every lease by a merchant
who deals in goods of the kind leased.
When a minor disaffirms a contract, he or she cannot keep whatever he or she has
received as a result of the contract without paying for it.
The incompetence of a customer revokes a bank’s authority to pay an item.
A check is not a substitute for cash.
State securities laws apply mainly to intrastate transactions.
Only outsiders who would ordinarily be deemed fiduciaries of the corporations in
whose stock they trade can be liable for insider trading.
A coinsurance clause provides that two or more people will be covered by the same life
insurance policy.
Only personal contracts can be discharged by agreement of the parties.
The Civil Rights Act of 1964 prohibits job discrimination against majority group
individuals, such as white males.
An Internet service provider cannot be held liable for disseminating others’ defamatory
remarks.