Little Local Bank wrongfully fails to honor a check signed by its customer Andrea.
Little Local Bank is
a. not liable to Andrea for damages resulting from its refusal to pay.
b. only liable to Andrea for damages resulting from its refusal to pay if Andrea takes
action against the bank within one business day of the failure to honor the check.
c. only liable to Andrea for one half of the damages resulting from its refusal to pay.
d. liable to Andrea for damages resulting from its refusal to pay.
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.
Rhea is a director of Spex Corporation, which makes and sells sunglasses and other
eyewear. As a Spex director, Rhea sits on the board, which
a. governs Spex.
b. is governed by the Spex incorporators.
c. is governed by the Spex officers.
d. is governed by the Spex shareholders.
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.
Virgil borrows $175,000 from United Finance Bank to buy a home. Federal law
regulates primarily
a. mortgage terms that must be disclosed in writing.
b. oral representations with respect to the terms of a loan.
c. the lowest prices for which real property can be sold.
d. who can buy real property, where they can buy it, and why.
To initiate a lawsuit, Darla files a complaint against E-Sales Company, which responds
with an answer. Together, the complaint and answer are
a. a motion to dismiss.
b. a summons.
c. a writ of certiorari.
d. the pleadings.
Svetlana, a fifty-five-year-old member of a racial minority with a disability, believes
that she is a victim of employment discrimination. Potentially the most widespread
form of discrimination is based on
a. age.
b. disability.
c. gender.
d. race.
Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a
Kitchen Helper refrigerator is the “best one ever made.” This is
a. fraud if the statement is the truth.
b. fraud if Jim believes that this statement is not true.
c. fraud if Jim is stating his opinion, not the facts.
d. not fraud.
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.
Maya, a police officer, wants to search the offices of Niles Corporation.
Maya asks Judge Orion to issue a warrant. Under the Fourth Amendment,
no warrants for a search or an arrest can be issued without
a. double jeopardy.
b. probable cause.
c. reasonable doubt.
d. immunity.
Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a
contract. When Nina breaches the contract, Michael obtains an award of damages in an
Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and
enforces the Irish court’s decree. This is
a. a travesty of justice.
b. the act of state doctrine.
c. the doctrine of sovereign immunity.
d. the principle of comity.
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.
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.
E-Shopping Corporation inserts Fiesta Mall, Inc.’s trademark as a meta tag in
E-Shopping’s Web site’s key-words field without Fiesta’s permission in a manner that
suggests Fiesta authorized the use. This is
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. no infringement.
Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries,
Inc., as she attempts to make sales to food stores. Dom solicits each of Flora’s
customers. Dom is most likely liable for wrongful interference with a
a. bargaining relationship.
b. business relationship.
c. contractual relationship.
d. customer relationship.
Flip is a member of Great States Trucking LLC. Flip ceases to be associated with the
carrying on of the firm’s business, but not in violation of the operating agreement. This
is
a. dissociation.
b. dissolution.
c. winding up.
d. wrongful.
Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing
agreement with Total World Sports, a U.S. wholesaler of Suisse’s products. U.S. courts
will apply U.S. antitrust laws if
a. the agreement was made in Switzerland.
b. the agreement was made in the United States.
c. the price fixing has a substantial effect on U.S. commerce.
d. the Swiss government agrees to be sued in the United States.
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.
Miklos employs Nathalie to handle a list of financial transactions on Miklos’s behalf.
This power will terminate on
a. any transaction causing a loss to Miklos.
b. Miklos’s death or incapacity.
c. Miklos’s sixty-fifth birthday.
d. Nathalie’s handling of one of each stipulated transaction.
Squeaky Clean Corporation wants to make an offering of securities to the public. This
offering is not exempt from registration under the Securities Act of 1933. Before
Squeaky sells its securities, it must provide investors with
a. a forward-looking financial forecast.
b. an investment contract.
c. a prospectus.
d. samples of its products.
Kingston promises to pay Melina $500 to install a sump pump in his warehouse. Melina
completes the installation. The act of installing the pump
a. imposes a moral obligation on Kingston to pay Melina.
b. imposes no obligation on Kingston unless he is satisfied with the job.
c. is not sufficient consideration because it is not goods or money.
d. is the consideration that creates Kingston’s obligation to pay Melina.
Roy’s Chick”n Shack orders chicken from Standard Food Supplier, but Standard does
not deliver. Roy’s will probably be unable to enforce the agreement if the parties
a. did not limit the duration of the deal.
b. did not specify a payment term.
c. did not specify a quantity term.
d. have not begun to perform.
Doctors Medical Associates obtains an insurance policy that protects its members
against negligence claims by their patients. This is
a. casualty insurance.
b. fidelity or guaranty insurance.
c. malpractice insurance.
d. workers’ compensation insurance.
Phil enters into a contract to hire Bob’s Building Business to build a warehouse for Phil.
The contract specifies that the warehouse should be built with HighQual Bricks. When
construction starts, HighQual Bricks cannot provide enough bricks for the warehouse.
Bob’s Building Business substitutes Big Red Bricks, which are comparable in quality
and price to HighQual Bricks. This deviation from the contract
a. discharges Phil from the contract.
b. has no effect on the contract.
c. increases Bob’s Building Business’s duties under the contract.
d. suspends Bob’s Building Business’s duty to perform.
Seymour borrows $350,000 from Reliable Bank to buy a home. Seymour stops making
payments on the loan ten months later. After the bank repossesses the property securing
the loan but before it is sold, Seymour wants to buy it. This is
a. a deficiency judgment.
b. a reverse mortgage.
c. a violation of the law.
d. the right of redemption.
Richly Merchandise, Inc., contracts with Stand-Rite Contractors to build a store.
Stand-Rite assigns the contract to Town Builders, which has a poor record of
completing projects. Richly could most successfully argue that the contract cannot be
assigned because
a. Richly did not consent to the assignment.
b. Richly did not receive adequate consideration for the assignment.
c. the assignment will materially increase the risk of nonperformance.
d. Town Builders was not an original party to the deal.
Stormclouds Inc. makes and markets its U.S. patented Tempest Tablet in the United
States. Squalls Ltd., a Chinese firm, begins making and marketing the same product in
China as Outburst Pad without Stormclouds’s permission. Squalls is
a. not guilty of patent infringement.
b. guilty of patent infringement.
c. guilty of trademark infringement.
d. in violation of the America Invents Act.
Sharon, the human resources director for Tempo Corporation, attempts to comply with
the law in dealing with applicants and employees. One of the challenges Sharon faces is
that the legality of an action is
a. always clear.
b. never clear.
c. sometimes clear.
d. usually clear.
In 2013, Congress enacts the Act to Restrict Commercial Speech (ARCS). The ARCS
will be considered valid if it directly advances a substantial government interest
a. but goes no further than necessary to achieve its purpose.
b. without regard to how “far” it goes.
c. and the parties affected by it can elect how “far” to go in applying it.
d. and goes further than necessary to ensure full coverage.
If a bank is both the drawer and the drawee with regard to a draft, then the draft is a
a. certificate of deposit.
b. cashier’s check.
c. nonnegotiable instrument.
d. promissory note.
Elvin publishes a book titled First Place, which includes a chapter from Frank’s
copyrighted book Olympic Winners & Losers. Elvin’s use of the chapter is actionable
provided
a. consumers are confused.
b. Elvin’s use is intentional.
c. Elvin’s use reproduces Frank’s chapter exactly.
d. Elvin does not have Frank’s permission.
Anthony believes that he needs to obtain a Chapter 13 discharge in bankruptcy. A
Chapter 13 case can be initiated by a filing of a voluntary petition by
a. a creditor only.
b. a corporation only.
c. a debtor only.
d. a trustee only.
Peter and Ray are riding their horses together. Peter jokingly tells Ray that Ray’s horse
is too slow. Ray laughs and jokingly responds, “Yes, he is too slow! I would sell him for
$5!” Peter hands Ray $5. This is
a. a valid acceptance because Peter gave Ray the money in a reasonable time.
b. a valid acceptance because there is consideration on both sides.
c. not a valid acceptance because Ray’s offer was made in jest.
d. not a valid acceptance because Ray’s horse is worth more than $5.
Selecting the state in which to incorporate is an important step in the incorporation
procedure.
Both employers and employees contribute to help pay for benefits that will partially
make up for the employees’ loss of income on retirement.
In general, a buyer’s duty to pay for tendered goods becomes absolute before the buyer
has had an opportunity to inspect the goods.
In contracts involving a sale of unborn animals to be born within twelve months,
identification takes place when the animals are born.
An alien corporation is a corporation formed in another country.
An employer may be liable for the harassment by nonemployees if the employer knew
about the harassment and failed to take corrective action.
Labels must use words that are easily understood by the ordinary marketing executive.
If the interests of different stakeholders conflict, it can be difficult to determine which
group’s interest should receive greater weight.
Negative amortization occurs when the monthly payments are insufficient to cover the
interest due on a loan.
A tenant has a duty to maintain in a reasonably safe condition those areas under his or
her control.
A bearer instrument is an instrument that does not designate a specific payee.
Real estate transactions are always governed by Article 2 of the UCC.
On a motion for judgment on the pleadings, a court may consider evidence outside the
pleadings.
Monopoly power may be proved by evidence that a firm used its power to control
prices.
A business firm can sometimes predict whether a given action is legal.
The states and the federal government provide for the registration of trademarks.
Symbolic speech is defined as nonverbal expressions of belief and is protected by the
First Amendment.
A bank employee stealing funds from a client is an example of embezzlement.