The Idaho Supreme Court rules against Jiffy Mart in a case against Kwik Stop Stores,
Inc. Jiffy Mart files an appeal with the United States Supreme Court. The Court does
not hear the case. This
a. is a decision on the merits with value as a precedent.
b. indicates agreement with the Idaho court’s decision.
c. means nothing.
d. means that the Idaho court’s decision is the law in Idaho.
Stan is liable for the conversion of Tyler’s business law textbook
a. if Tyler proves that the book was in Stan’s possession when it disappeared.
b. if Tyler proves that the book is now in a third party’s possession.
c. if Tyler proves that the book was not in his possession when it disappeared.
d. under no circumstances.
Joel contracts to hire Huong for one year to tend the orchids in his commercial
greenhouse but reserves the right to cancel the employment on one month’s notice at
any time after Huong begins work. This promise is
a. enforceable.
b. illusory.
c. unliquidated.
d. unforeseen.
Mall Stores Corporation owns 95 percent of the shares of Niche Retail Corporation.
Mall Stores combines with Niche Retail, but only Mall Stores continues to exist. This
transaction was
a. a consolidation.
b. a share exchange.
c. a short-form merger.
d. a termination.
Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor
agrees. Flo and Gregor have
a. an executed contract.
b. an express contract.
c. an implied-in-fact contract.
d. a quasi contract.
Daphne agrees to buy Eduardo’s Chef’s Table restaurant on the condition that Financial
Credit Company approves the financing. This approval is
a. a concurrent condition.
b. a condition precedent.
c. a condition subsequent.
d. a condition conjectural.
Independent regulatory agencies such as the Federal Trade Commission are
a. not part of the government’s executive branch.
b. outside the major departments of the government’s executive branch.
c. subagencies of executive agencies.
d. subject to more executive authority than executive agencies.
Precise GPS Company’s ad states that its product is “the finest that money can buy.”
Because of this ad, the Federal Trade Commission is most likely to issue
a. a cease-and-desist order.
b. a counteradvertising order.
c. a multiple product order.
d. none of the choices.
Business Corporation, a U.S. firm, and Comercial, S.A., a Mexican firm, are parties to a
contract that does not specify a choice of law. The governing law is that of
a. any third country.
b. Spain.
c. the buyer’s place of business.
d. the seller’s place of business.
Lightspeed Corporation makes computers, each of which is packaged with a
shrink-wrap agreement. Milo buys a Lightspeed desktop. The shrink-wrap agreement is
most likely enforceable if
a. Milo buys the computer directly from Lightspeed.
b. Milo expressly agrees to the terms in the shrink-wrap agreement.
c. Milo reads the shrink-wrap agreement.
d. the terms in the shrink-wrap agreement concern warranties.
Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm.
Deephole is to keep the excavated gravel in payment. Clyde’s neighbor Earl challenges
the dig as an illegal gravel pit. A court orders the digging to stop. Clyde’s contract with
Deephole is
a. breached.
b. discharged.
c. not affected.
d. suspended.
Via the Internet, Rocky sabotages the computer system of Quik Chik”n Company, a
food manufacturer, with the purpose of altering the levels of ingredients of the
company’s products so that consumers of the food become ill. Rocky is
a. a cyberterrorist.
b. a botnet.
c. a virus.
d. a worm.
Linus and Marlena agree that Linus will fix Marlena’s roof in exchange for $8,000.
Linus spends half of the amount due under the contract to acquire the materials for the
job from Natural Roofing Supplies. Natural Roofing is
a. a delegatee.
b. an intended beneficiary.
c. an incidental beneficiary.
d. an alien to the 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.
Pip, a clerk for a Quik Burger, Inc., restaurant goes out on strike with the other
employees. After the strike, Pip must be given his job back if the strike is not deemed
unlawful, there is still work at the restaurant, and the strike was
a. an economic strike only.
b. an economic strike or an unfair labor practice strike.
c. an unfair labor practice strike only.
d. unlawful.
Fact Pattern 7-1
Minka uses her computer to secretly install software on hundreds of personal computers
without their owners’ knowledge.
Refer to Fact Pattern 7-1. Minka’s secretly installed software allows her to forward
transmissions from her unauthorized network to even more systems. This network is
a. a hacker.
b. a bot.
c. a botnet.
d. a worm.
A barge owned by Oceanic Shipping Company accidentally runs aground, spilling the
oil contained in its hold into the sea and onto the shore. Under the Clean Water Act, this
is most likely
a. a violation.
b. not a violation because an oil spill is an accident.
c. not a violation because a floating barge is not a stationary source.
d. not a violation because a ship’s hold is not a point source.
Fact Pattern 14-2
Kelly and Lucas sign a written contract for the sale of Kelly’s Coffee Kiosk to Lucas.
The parties intend their written contract to be a final statement of the terms of their
agreement.
Refer to Fact Pattern 14-2. The writing that Kelly and Lucas signed is
a. a completely integrated contract.
b. a conditionally integrated contract.
c. an agreeably integrated contract.
d. an obviously integrated contract.
Paula develops a new espresso machine, which she names “Quik Shot.” She also writes
the operating manual. Paula can obtain trademark protection for
a. the espresso machine.
b. the “newness” of the espresso machine.
c. the name.
d. the operating manual.
Rona is Stu’s administrative assistant and both work for TriCounty Labor Inc. Stu tells
Rona that for sexual favors, he will give her an excellent performance review and
recommend a raise. This is
a. harassment on the basis of sexual orientation.
b. hostile-environment harassment.
c. not harassment.
d. quid pro quo harassment.
Marie claims that a Nebraska state statute infringes on her “procedural due process”
rights. This claim focuses on
a. procedures used in making decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Mary’s privacy.
Liz trespasses on Mega Corporation’s property. Through the use of reasonable force,
Mega’s security guard Ned detains Liz until the police arrive. Mega is liable for
a. assault and battery.
b. false imprisonment.
c. intentional infliction of emotional distress.
d. none of the choices.
In negotiations with Coastal Distribution Company, Briggs Trucking, Inc., insists that
their contract be drafted according to certain plain language laws. These laws concern
the phrasing of
a. contracts.
b. ads.
c. product instruction manuals.
d. documents of delivery.
Based on Nan’s conduct, Odel reasonably believes that Poppy has the authority to act
on Nan’s behalf even though Poppy does not have the actual authority to do so. In this
circumstance, Poppy has
a. apparent authority.
b. express authority.
c. implied authority.
d. no authority.
With a bill of lading, Cartage Common Carrier Company acknowledges possession of
certain goods and contracts to deliver them. Cartage is
a. a bailee.
b. a buyer in the ordinary course of business.
c. a good faith purchaser for value.
d. an F.O.B.
The government of the United States and the governments of other nations have the
power to enforce their respective national laws within their borders. The power to
enforce international law within the borders of all nations rests with
a. no court or international organization.
b. the European Union.
c. the International Court of Justice.
d. the United Nations General Assembly.
Fact Pattern 36-1
Cherry Grove Apartments, Inc., merges with Dutch Elm Realty, Inc. Only Dutch Elm
remains.
Refer to Fact Pattern 36-1. The terms of the merger agreement differ from Dutch Elm’s
articles of incorporation. The articles
a. are deemed amended to include the differences.
b. are replaced by the merger agreement.
c. effectively prevent the merger.
d. prevail.
Fact Pattern 30-4
Beth, who has a disability, is an employee of Corporate Office Company (COC). After
the installation of new doors on COC’s building, Beth finds it nearly impossible to get
in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who
does not have a disability.
Refer to Fact Pattern 30-4. To succeed with a claim against COC under the Americans
with Disabilities Act, Beth will have to show that
a. Beth consistently met the essential requirements of her job.
b. COC refused to make reasonable accommodation for Beth.
c. Dian is unqualified for Beth’s position.
d. the doors were installed as an act of intentional discrimination.
Egan is a director of First Realty Corporation. As a director, Egan can act as an agent to
bind First Realty
a. in all circumstances.
b. in no circumstances.
c. to any contract in which Egan does not have a conflict of interest.
d. to any contract that represents a corporate opportunity for First Realty.
Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a
Commodities corporate officer, gives Brenda written authority to buy for the firm as
many computers and peripheral devices as necessary. The next day, Dennis calls Brenda
and tells her to buy only fifty notebook computers and nothing else. Brenda shows the
written authority to E-Products, Inc., and enters into a contract with E-Products to buy
sixty notebook computers and a selection of printers, scanners, and extra storage media.
E-Products ships the order to Commodities. Is Commodities liable to E-Products under
the contract? Is Brenda liable? In each case, if so, why? If not, why not?
Packaging Products, Inc., sends its standard purchase-order form to Quality Box
Company to evidence a sale of packaging material. Quality responds with its own
standard order form. Additional terms in Quality’s form automatically become part of
the contract unless
a. Packaging objects to the new terms within a reasonable time.
b. Packaging’s form expressly required acceptance of its terms.
c. the additional terms materially alter the original contract.
d. any of the choices.
Jen signs a check “pay to the order of Key” drawn on Jen’s account in Little Bank to
buy Key’s car. Jen asks Little Bank to indicate on the face of the check that it will
accept it when Key presents it for payment. If the bank agrees, this will be
a. a cashier’s check.
b. a certified check.
c. a trade acceptance.
d. a traveler’s check.
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.
VuTech Company agrees to sell digital video equipment to Home & Business Stores,
Inc., for Home & Business to market to its customers. Their contract will not be en-
forceable unless it includes
a. the duration of the deal.
b. the price of the goods.
c. the quantity of the goods.
d. the requirements of OSI’s customers.
Pace is an attorney, whose clients include Quikfeet Running Shoes Company. Unless
Quikfeet has violated securities law, the contents of Pace’s file on Quikfeet may be
disclosed to someone other than Quikfeet
a. only to a third party who is a foreseeable user of the information.
b. only under a court order (with or without Quikfeet’s consent).
c. only with Quikfeet’s consent.
d. under any circumstances.
In a limited liability company, members must participate in the management of the
company.
Under the Statute of Frauds, all contracts induced by fraud must be in writing to be
enforceable.
A transfer of contract rights to a third party is a negotiated instrument.
An agreement to pay a debt discharged in bankruptcy is called a workout.
A fiduciary relationship involves trust and confidence.
False imprisonment occurs when a person restrains another intentionally and without
justification.
In a few states, communications between an accountant and his or her client are
privileged.
A surety can use any defenses available to a debtor to avoid liability on the obligation to
the creditor.
A blank indorsement specifies no particular indorsee.
The least common forms of securities are bonds issued by corporations.
A written stop payment order is valid for fourteen days.
Final administrative rules do not have binding legal effect unless the courts later declare
them to be binding.
Only two persons can hold property as tenants in common.
Generally accepted auditing standards represent guidelines rather than standards of
care.
Even after a tenant assigns a lease, the tenant may be obligated to pay rent.
Notice is not legally required to establish the validity of an assignment.
Because the Constitution does not specifically a right to privacy, this right is denied to
people.
A party’s oral agreement to pay another’s debt is never enforceable.