Sayers is very clever and spends lots of time creating new things. Which of the
following is not copyrightable?
a. A sculpture of Sayers’s horse
b. A book about Sayers’s life
c. A movie about Sayers’s life
d. Sayers’s idea for a new way to play the guitar
Jonathon promises to pay child support and alimony to his ex-wife every month after
their divorce. Jonathon has
a. only a moral obligation to do keep his promise.
b. only a legal obligation to keep his promise.
c. both a legal and a moral obligation to keep his promise.
d. no obligation to keep his promise.
Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corporation. Fresh
Food does not pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale
represents
a. a breach of contract.
b. a mitigation of damages.
c. rescission and restitution.
d. specific performance.
Remote Disposal Company operates a hazardous waste storage facility. Concerned that
there may be a release of chemicals from the site, Remote sells the property to Serene
Developers, Inc. If there is a release, Remote is most likely
a. liable.
b. not liable because the site was sold before the release.
c. not liable because Remote was concerned about the release.
d. not liable because Remote no longer operates the facility.
Cory employs Daily Delivery Agency as an agent under a written agreement that
describes the rights and duties of both parties. This is
a. apparent authority.
b. equal authority.
c. express authority.
d. implied authority.
Grover Nut Company files a suit against Hud, its former accountant, alleging actual
fraud. Grover must prove
a. intent to deceive.
b. misrepresentation of a non-material fact.
c. the lack of an injury.
d. unjustifiable reliance.
Chelsea is a state court judge. Like judges in most state courts, in a particular case, she
may grant
a. a remedy at law only.
b. a remedy in equity or a remedy at law, but not both.
c. a remedy in equity and a remedy at law.
d. a remedy in equity only.
Events Promotion Corporation licenses trademarks to Fandom Souvenirs, Inc., to use in
selling caps, sweatshirts, and similar goods. This is
a. a franchise.
b. an entrepreneur.
c. a principal-agent relationship.
d. a sole proprietorship.
Pete, an accountant, convinces his client Kasey to invest her savings in a nonexistent
social-networking Web site. When Kasey learns the truth, she can
a. seek to void the contract on the ground of undue influence.
b. recover damages based on a claim of mistake of value.
c. rescind the contract to invest in the Web site.
d. seek to void the contract on the ground of unconscionability.
Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that warrants
only that Opal held good title during her ownership of the property. This deed is
a. a grant deed.
b. a quitclaim deed.
c. a special warranty deed.
d. a warranty deed.
Barry buys a bulldozer from Big Sandbox Equipment Company. Barry is unaware that
there is a lien against the bulldozer when he buys it. Under the UCC, if the creditor
reposes the bulldozer, Barry
a. can recover from Big Sandbox Equipment for breach of warranty.
b. can do nothing.
c. can file criminal charges against Big Sandbox Equipment.
d. can recover damages from the creditor.
Tania promises to buy Saki’s handheld video game-player for $40. Saki is
a. an executee.
b. an offeror.
c. a promisee.
d. a promisor.
Roslyn is an inventor. She has many tools, including a hammer, a handsaw and a drill.
Roslyn has a patent on her most recent invention and she owns stock in Handy
Appliances, Inc., which is a company that often uses her inventions. Roslyn’s tangible
personal property includes the
a. hammer, handsaw and drill.
b. Handy Appliances stock only.
c. patent on her invention only.
d. Handy Appliances stock and the patent on her invention.
In judging her action as a corporate employee of Music Notes Corporation, Brooke
always lets her conscience be her guide. As an effective alternative, Brooke could
a. ask herself whether she would be happy to be interviewed by the national media
about the action.
b. consider only the benefits that would accrue to her personally.
c. look only at the result, regardless of the means to attain it.
d. consider how she would like to have others treat her in a similar situation.
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.
Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The
exterior boundaries of the land extend
a. 100 feet into the earth and 100 feet into the atmosphere.
b. one mile into the earth and one mile into the atmosphere.
c. to infinity and beyond.
d. to the center of the earth and up to the farthest reaches of the atmosphere.
Ronald’s debt to Greg is past due. Ronald obtains a judgment against Greg to collect the
debt, but Greg will not pay. Ronald requests a writ of execution. The property that is
seized under the writ of execution must be
a. in Ronald’s possession.
b. in Greg’s possession.
c. in the possession of Greg’s employer or other third party.
d. located within the court’s geographic jurisdiction.
Lars accuses Moe, an attorney, of committing malpractice. Malpractice is
a. a breach of ethics.
b. a defalcation.
c. a mistake in judgment.
d. professional negligence.
William is a surety for Jeannie’s loan from Richard. Richard knows of William’s
existence. When the loan comes due, Jeannie tries to pay Richard, but Richard rejects
the payment. William is
a. released from any obligation on the debt.
b. required to pay the amount of the debt to Richard.
c. required to pay up to half of the amount of the debt to Richard.
d. required to pay the amount of the debt to Jeannie.
Following a union election campaign by Service Employees International Union among
the employees of Quality Hotels & Resorts, Inc., the union does not obtain a majority
vote in the election. This most likely violates
a. federal labor law.
b. federal elections law.
c. federal employment discrimination law.
d. no federal law.
Madison is the chief executive officer of Nitro Medico, Inc., which is required to file
certain financial reports with the Securities and Exchange Commission (SEC). Under
the Sarbanes-Oxley Act of 2002, Madison must
a. certify that the reports are complete and accurate.
b. designate a corporate official to assume liability for inaccuracies.
c. do nothing.
d. read the reports and be prepared to answer questions about them.
Mango Corporation believes that Melon Corporation engages in anticompetitive
behavior in an attempt to drive Mango and its other competitors out of the market.
Antitrust laws can be enforced against Melon by
a. Mango and its competitors only.
b. Mango, its competitors, and the Federal Trade Commission only.
c. Mango, its competitors, the Federal Trade Commission, and the U.S. Department of
Justice.
d. the Federal Trade Commission and U.S. Department of Justice only.
Reusable Energy Corporation regularly expresses opinions on political issues. Under
the First Amendment, corporate political speech is
a. discouraged.
b. forbidden.
c. protected.
d. required.
RayAnn is a corporate officer for Timmy’s Trees, Inc. As a corporate officer, RayAnn is
a. the head of the board of directors.
b. involved in the day-to-day operations of Timmy’s Trees.
c. not involved in the day-to-day operations of Timmy’s Trees.
d. in charge of selecting members of the board of directors.
Coco is considering forms of business organization for her concessions business’Coco’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.
Root & Branch Lumber Company obtains a fire insurance policy from Statistical
Insurers, Inc., on a $400,000 warehouse. The policy includes an 80-percent coinsurance
clause. Root & Branch insures the property for $320,000. In a fire, the warehouse
suffers $200,000 in damage. Root & Branch can recover
a. $400,000.
b. $320,000.
c. $200,000.
d. $80,000.
Main Street Lenders, Inc., attempts to coerce Nolanwho specializes in determining the
value of real and personal propertyinto misstating the value of a property on which a
loan is to be issued. This is
a. a legal and ethicalbut morally arguablefinancial ploy.
b. a legalbut unethicalbusiness practice.
c. a necessary tactic to generate a profitable loan in today’s market.
d. a violation of the law.
Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks, Inc. The most
important factor in determining whether an express warranty is created is whether
a. Sari expresses to Terrific what she wants warranted.
b. Sari’s desire for the SUV becomes part of her motivation to deal.
c. Terrific expresses to Sari what it expects of its customers.
d. Terrific’s promise becomes part of the basis of the bargain.
Transnational Corporation and United Shipping, Inc., agree to a contract that includes
an arbitration clause. If a dispute arises, a court having jurisdiction may
a. monitor any arbitration until it concludes.
b. order an arbitrator to rule in a particular way.
c. order a party to bring the dispute to court.
d. order a party to submit to arbitration.
Garden Field Farms and Haute Gourmet Restaurant, Inc., enter into a contract for a sale
of lettuce before Haute Gourmet declares bankruptcy. Garden Field can stop delivery of
the goods in transit
a. only if the quantity is at least a carload.
b. only if the quantity is at least a planeload.
c. only if the quantity is at least a truckload.
d. regardless of the quantity.
Miranda orally promises Nicky that she will buy his fishing trawler for $20,000. If
Nicky acts in reliance on this promise, under the doctrine of promissory estoppel, the
transaction is enforceable by
a. either party.
b. Miranda only.
c. neither party.
d. Nicky only.
Owen, Paula, Quinn, and Rita combine to finance the building of Super Stores, a
shopping mall. Their selected form of business organization is an investment group, or
a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.
Cal sells “DownSize,” a weight-reduction program, from a Web site, in competition
with Eat-Less Inc.’s product “Fit n Trim.” Eat-Less files a suit against Cal, alleging in
part that he is a sole proprietor, but his enterprise should be deemed a different form of
business. Cal’s enterprise should most likely be considered
a. a corporation because DownSize is sold online.
b. a franchisee because DownSize is sold in competition to Fit n Trim.
c. a sole proprietorship because Cal is a sole proprietor.
d. no form of business entity because Cal has no formal organization.
To succeed in a strict product liability suit, an injured plaintiff must show that a
product’s defect was the proximate cause of the injury.
Predatory pricing involves selling a product at prices substantially above the fair market
value.
The failure to pay a debt as promised is known as default.
The Civil Rights Act of 1964 prohibits job discrimination against majority group
individuals, such as white males.
A crime can be committed only against persons.
Foreign investors are not allowed to become limited liability company members.
A bank may contractually shift to the customer the risk of forged checks created by the
use of facsimile or other nonmanual signatures.
In choosing a form of business organization for a new enterprise, important factors
include the liability of the owner.
Multi Investments, Inc., offers to buy Nano Toy Corporation. On May 1, Nano provides
copies of its financial statements for the previous year, showing an inventory of $10
million. On May 15, Nano discovers that the previous year’s inventory is overstated by
$5 million, but does not inform Multi. On June 1, Multi, relying on the financial
statements, buys Nano. On June 10, the buyer discovers the inventory overstatement.
Can Multi succeed in a suit against Nano for fraud?
An option contract is created when an offeror promises to hold an offer open for a
specified period of time in return for a payment given by the offeree.
A trustee has the power to avoid a sale of the debtor’s property.
The rights and duties of a bank and its customer are contractual.
Wrongfully taking personal property without the owner’s permission is conversion.
In a consolidation, the consolidating corporations become subsidiaries of the new
corporation.
An agency relationship cannot exist in the absence of a formal agreement.
A bank cannot recover from a party who cashes a check bearing a forged drawer’s
signature once the bank has accepted and paid the item.
An employer may not hire substitute workers to replace strikers.