NuTown Construction, Inc., wants to build a parking ramp to connect to its NuTown
Mall, both of which are on private land. For this action, an environmental impact
statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Megan, a resident of Ohio, runs a red light in Texas and hits Sarah, a Texas resident.
Sarah files suit against Megan. The statute that allows the Texas court to exercise
jurisdiction over Megan is called a(n)
a. long arm statute.
b. in personam statute.
c. in rem statute.
d. out-of-state jurisdiction statute.
Conrad and Delilah are employees of AgriBio Feed & Seed Corporation. Under the
Equal Pay Act of 1963, AgriBio can legitimately pay different wages on the basis of
a. seniority.
b. job descriptions.
c. substantial equality of skill, effort, and responsibility.
d. gender.
Karen writes on a piece of paper, “I owe you $600,” signs it, and gives it to Lou. This
instrument is
a. negotiable.
b. nonnegotiable, because it does not include an express promise to pay.
c. nonnegotiable, because it does not recite any consideration.
d. nonnegotiable, because it does not state any conditions to payment.
Jen signs a check “pay to the order of Key” drawn on Jen’s account in Little Bank to
buy Key’s car. If there are insufficient funds in Jen’s account to cover the amount of the
check, but the bank pays it, this creates
a. a cashier’s check.
b. an overdraft.
c. a stale check.
d. a stop-payment order.
Any decision by the management of Fast-Food Franchise Corporation may significantly
affect its
a. operators only.
b. operators, owners, suppliers, the community, or society as a whole.
c. owners only.
d. suppliers, the community, or society as a whole only.
Drew contracts to sell a residential duplex to Evan. The contract provides that if Drew
does not close the deal by September 15, he must pay Evan one-half of the contract
price. This provision is not enforceable because it is
a. a liquidated damages clause.
b. a mitigation clause.
c. a nominal damages clause.
d. a penalty clause.
John Jones decides to use his personal name for a line of clothing he is developing.
Whether or not the name John Jones acquires a secondary meaning will depend on
a. how extensively John markets his line of clothing.
b. the market for John’s line of clothing.
c. the number of clothing sales John makes.
d. all of the choices are correct.
Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the
company knows drives longer hours than federal regulations permit. One night, Garn
exceeds the limit and has an accident. Spilled chemicals contaminate Hill City’s water
source, forcing the residents to move away. Flexo acted unethically because
a. Flexo showed reckless disregard for Hill City’s residents and others.
b. Garn exceeded the federal time limit.
c. harm was caused by an unfortunate accident.
d. Hill City should have better protected its water source.
Eliza is a state court judge. Flora appears in a case in Eliza’s court, claiming that Glover
breached a contract. Which of the following actions may Eliza take?
a. Award damages or issue a decree of specific performance
b. Imprison Glover, but not Flora
c. Imprison Flora, but not Glover
d. Order the parties to pay Eliza to render a favorable ruling
Riverview Bank makes a mortgage loan of $95,000 to Pomeroy to buy a home. Under
federal law, if Riverview fails to provide certain material disclosures with respect to the
loan, Pomeroy’s right to rescind the loan
a. expires at midnight on the day the loan is finalized.
b. is canceled immediately.
c. is extended for up to three years.
d. is tolled for the duration of the mortgage payments.
Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders
Corporation. The agreement states that delivery is to be within “3” days, although the
parties intend “30” days. Refined cannot convince Select to amend the contract. Refined
should seek
a. damages.
b. reformation.
c. rescission.
d. specific performance.
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.
Riley invents a new valve to cap undersea oil spills. He names the valve “Great Catch.”
He also writes the installation manual to be included with each valve. Riley can obtain
copyright protection for
a. the valve.
b. the “newness” of the valve.
c. the name.
d. the installation manual.
Valley View Farms enters into a contract to sell Sarah’s Corner Shop a truckload of eggs
from free-range chickens. If Valley View fails to deliver the eggs, Sarah’s
a. must pay for the eggs to avoid a suit for breach.
b. does not have to pay for the eggs and can sue Valley View for breach.
c. must pay for the eggs to file suit against Valley View for breach.
d. does not have to pay for the eggs, but cannot then sue Valley View for breach.
Victor leaves his Dodge sport utility vehicle at Gordo’s Auto Service for an oil change.
This is
a. a bailment.
b. a gift.
c. accession.
d. production.
Milo borrows $125,000 from North State Bank to buy a home. To comply with the
Statute of Frauds, the mortgage must be
a. a highly formal document.
b. a particular form.
c. in the same format as the lender’s other loans.
d. in writing.
As a joke, Jem takes Kyla’s business law textbook and hides it so that Kyla cannot find
it during the week before the exam. Jem may have committed
a. appropriation.
b. conversion.
c. disparagement of property.
d. trespass to personal property.
Money Mortgage Mart makes a short-term loan to Natalie to allow her to make a down
payment on a new home before selling her current home. This is
a. a bridge loan
b. a home equity loan.
c. an equitable right of redemption.
d. a violation of federal law.
Fresh Fast Service, Inc., offers to deliver produce to Growers’ Market’s customers for a
certain price. Fresh’s intent to extend a serious offer to Growers’ Market is determined
by reference to
a. Fresh’s assumptions.
b. Fresh’s beliefs.
c. Fresh’s intentions.
d. what a reasonable person in Growers’ position would conclude Fresh’s words and
actions meant.
Megan is charged with jaywalking, which is classified as
a. a misdemeanor.
b. a felony.
c. a petty offense.
d. no crime.
Ada is the maker of a note, on which Bart is secondarily liable. Cash & Credit
Company (C&C) is the current holder of the note. Bart will be obligated to pay the note
if
a. Ada defaults on the note.
b. C&C breaches a transfer warranty.
c. C&C negotiates the note to Delta Collection Agency, a third party.
d. C&C presents the note for payment.
Jody owns KuppaJava Kiosks, a sole proprietorship. Jody’s liability is
a. limited by state statute and varies from state to state.
b. limited to the extent of capital expenditures.
c. limited to the extent of his or her original investment.
d. unlimited.
John is an art dealer with special expertise in modern art. Rachel comes to John’s
gallery to purchase a modern art painting as an investment. John shows her several
paintings that he says are high quality and will increase in value in the next ten years.
John’s statement is
a. an express warranty.
b. an implied warranty.
c. an opinion.
d. puffery.
Beau sells a car to Cody without disclosing that the odometer, which reads 40,000
miles, was disconnected 80,000 miles ago. Beau is liable for
a. nothing.
b. fraud.
c. mistake.
d. undue influence.
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 that
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.
Soleful Shoes, Inc. owns property in Somalia. The Somalian government seizes the
property. In order for the seizure to be considered an expropriation and not a
confiscation, the Somalian government must
a. pay just compensation to Soleful Shoes.
b. give Soleful Shoes at least thirty days notice of the seizure.
c. give Soleful Shoes at least ninety days notice of the seizure.
d. notify the U.S. government before the seizure.
Will is an agent for MaryElise. MaryElise gives Will clear instructions to only enter into
contracts on Mondays, Wednesdays, or Fridays. Will enters into a contract on
MaryElise’s behalf on Tuesday. Will has breached
a. the duty of performance.
b. the duty of loyalty.
c. no duty.
d. the duty of obedience.
Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal
land. For this action, an environmental impact statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a
dog that will be good with small children. Carla sells Fred a dog. When Fred takes the
dog home, it bites both his small children and causes them serious injuries. Fred can sue
Carla for breach of
a. an express warranty.
b. an implied warranty of fitness for a particular purpose.
c. an implied warranty of merchantability.
d. a warranty of title.
On a trade acceptance, the drawer is also the payee.
Most crimes must be prosecuted within a certain number of years after the crimes occur.
Constructive delivery satisfies the delivery requirement for an effective bailment.
Dumping is the sale of imported goods at “less than fair value.”
A false statement by an expert to a naive buyer usually will entitle the buyer to rescind
or reform a contract.
A fixed-rate mortgage is a standard mortgage with a rate of interest that changes
periodically.
In mediation, the mediator proposes a solution that includes what compromises are
necessary to reach an agreement.
Normally, when a nonbreaching party has been damaged by a breach of contract, he or
she does not have a duty to mitigate those damages.
A failure to return personal property is disparagement of property even if the rightful
owner consented to the initial taking.
EthicsPoint is an organization through which employees can report unethical behavior
as long as they are willing to identify themselves.
A suspect cannot be tried twice in the same court for the same crime.
A party must own property to have an insurable interest in it.
When a customer deposits cash into a checking account, he or she becomes a debtor for
the amount deposited.
A corporation cannot be formed without a profit-making purpose.
Under the UCC, if a contract is unilateral, the offeror must be notified of the offeree’s
performance.
The laws governing franchising are primarily designed to protect franchisors from
dishonest franchisees.
Acting in good faith gives a business firm a better chance of defending its actions in
court.