The Arizona Supreme Court rules against Jennifer in a case against Kut Rate Stores,
Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask
the Court to issue a writ of
a. appeal.
b. certiorari.
c. jurisdiction.
d. summons.
To Cody, the written law of a particular society at a particular time is most significant.
Cody is a
a. legal positivist.
b. legal rationalist.
c. legal realist.
d. person who adheres to the natural law school.
Evan is charged with a crime. Almost all federal courts and some state courts would not
hold Evan liable if, at the time of the offense, as a result of a mental disease or defect,
Evan lacked substantial capacity to
a. appreciate the wrongfulness of his conduct only.
b. appreciate the wrongfulness of his conduct and obey the law.
c. appreciate the wrongfulness of his conduct or obey the law.
d. obey the law only.
Fact Pattern 31-1
Fresh Cream, Inc., wants to make an initial public offering of securities. Fresh believes
that it qualifies for an exemption under Regulation A from the full registration
requirement of the federal Securities Act of 1933.
Refer to Fact Pattern 31-1. If Fresh is exempt from the federal registration requirement,
Fresh is
a. automatically exempt from any state registration requirement.
b. not subject to any state securities laws.
c. not necessarily exempt under a state registration requirement.
d. automatically subject to all state registration requirements.
Savers Mart, Inc., distributes its merchandise to retail outlets on an interstate basis.
Under the commerce clause, Congress has the power to regulate
a. any commercial activity in the United States.
b. only activities that are in intrastate commerce.
c. only activities that are in local commerce.
d. only activities that are not in commerce.
Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000
from Mining Supplies Company. Lava tells Mining that it must receive the drill by
Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover
a. $13,000.
b. $10,000.
c. $3,000.
d. $0.
Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry
does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office
Accounting may recover from Perry
a. compensatory damages.
b. consequential damages.
c. nominal damages.
d. punitive damages.
Owen takes a Paisley-made pinball machine to Quality Games, Inc., for repair. Lacking
certain parts, Quality ships the game to Regal Repair Company. Regal does not return
the game. Most likely to suffer the loss is
a. no one.
b. Owen.
c. Paisley.
d. Regal.
Drummond wants to make a federal case out of his dispute with Elena. Federal cases
originate in
a. federal courts of appeals.
b. federal district courts.
c. state trial courts.
d. the United States Supreme Court.
The payment of John’s debt to Kirsten is guaranteed by John’s personal property.
Kirsten is most likely to perfect her interest by
a. attaching a bright label to John’s property.
b. calculating the precise amount of John’s debt.
c. correcting grammatical errors in the partie’ written agreement.
d. filing a financing statement with the appropriate authority.
Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and
onto Bella’s land. Doyle commits trespass if he
a. does not have Bella’s permission to drive on the property.
b. drives onto the property for recreational purposes.
c. harms the property in a material way.
d. harms the property in any way.
On behalf of the rock group Uno, their manager Thalia agrees to a performance in
Seaside Amphitheater on July 4. Rex, acting for Seaside, sends a written copy of the
agreement to Thalia to be signed. If Thalia signs the copy, the parties will have
a. an express contract.
b. an implied contract.
c. an implied-in-law contract.
d. no contract.
Hi-Lite Manufacturing, Inc., orders supplies online from Indigo Parts Company. To
complete the order, the buyer is required to click on a button that says, in reference to
certain terms, “I agree.” This is
a. a click-on agreement.
b. a default agreement.
c. an attribution agreement.
d. a shrink-wrap agreement.
Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a
city street. Ralph and Speedy are liable to
a. all those who were injured.
b. only those who were uninsured.
c. only those whose injuries could have been reasonably foreseen.
d. only those whose vehicles were closest to Ralph’s van.
To acquire the ownership of a mountain cabin by adverse possession, Cody must
occupy the cabin exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
b. until the owner files a suit.
c. without the owner’s knowledge.
d. with the state’s permission.
FlavorBean Coffee Company agrees to buy an unspecified quantity of coffee beans
from Global AgriCorp. Global breaches the contract. In FlavorBean’s suit to obtain
relief, the court will most likely
a. award a reasonable quantity of beans to FlavorBean.
b. award FlavorBean all the beans that it requires.
c. award Global’s output of coffee beans to FlavorBean.
d. have no basis for determining a remedy.
Kathryn signs a lease agreement for an apartment. Kathryn has entered into a(n)
a. express contract.
b. implied contract.
c. quasi contract.
d. unenforceable contract.
Dick works for First City Bank. When his spouse Elin is diagnosed with Lou Gehrig’s
disease, Dick asks to take temporary leave to care for her. First City discharges him. He
files a suit against the bank under the Americans with Disabilities Act of 1990. Most
likely, Dick can
a. recover for association discrimination.
b. recover for reverse discrimination.
c. recover for disparate-impact discrimination.
d. not recover.
Mary creates a t-shirt design that expresses her support for a presidential candidate and
distributes t-shirts to all her friends. The t-shirts are an example of
a. unprotected speech.
b. controlled speech.
c. symbolic speech.
d. illegal speech.
Gaye, a minor, signs a contract to buy a motorcycle from Hi-Valu Cycles by mis-
representing her age as twenty-one. Gaye fails to make the payments. Hi-Valu sues.
Ordinarily, Gaye can
a. not return the motorcycle nor avoid further liability.
b. not return the motorcycle but can avoid further liability.
c. return the motorcycle and avoid further liability.
d. return the motorcycle but cannot avoid further liability.
Mallory’s sister gives Mallory a leather working kit for Christmas. Mallory uses the kit
to make a saddle. Mallory’s acquisition of the saddle is by
a. a bailment.
b. accession.
c. confusion.
d. production.
Lisa brings a lawsuit against her employer for unlawful discrimination. Lisa is
successful in proving that she was unlawfully discriminated against by her employer.
Lisa may be awarded
a. back pay, but not retroactive promotions.
b. retroactive promotions, but not back pay.
c. damages, but not back pay.
d. back pay, retroactive promotions and damages.
Dizzy is not Edwina’s agent but enters into a contract with Frida on Edwina’s behalf.
Edwina later contacts Frida to affirm the contract. This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
The payment of Yves’s debt to Zac is guaranteed by Yves’s personal property. Their
agreement identifies Yves’s property by serial number. To establish Zac’s interest, this is
most likely
a. irrelevant.
b. not sufficient.
c. sufficient if it accurately describes the collateral.
d. sufficient unless it is too tedious to review.
Carol enters into a contract to hire Joanne to paint a portrait of Carol’s favorite cat.
Joanne agrees to do the portrait to Carol’s satisfaction for $100. When Joanne finishes
the portrait, Carol announces that she is not satisfied with the portrait because it does
not look like her cat. Carol
a. must accept the portrait and pay Joanne $100.
b. must accept the portrait and pay Joanne $50.
c. must accept the portrait and pay Joanne $25.
d. does not have to accept the portrait or pay Joanne any money.
Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are
distributed to authorized dealers, including Macho Motors, Inc. Macho operates
dealerships in several locations. Lightning imposes restrictions on Macho to limit the
areas in which they sell the bikes and insulate other dealers from direct competition.
This is
a. a territorial restriction.
b. a resale price maintenance agreement.
c. a refusal to deal.
d. a price-fixing agreement.
Vinnie, the owner of Café Rico, knows about, but does not take any action to prevent,
the sexual harassment of employees. Vinnie and the café may be liable for such
harassment by
a. an employee’s previous employer.
b. a customer or a co-worker.
c. an employee’s spouse or other close relative.
d. none of the choices.
Fred has six nieces, ages five to sixteen. He writes an order instrument for $50 that
states, “Pay to the order of my niece.” The order instrument is
a. negotiable.
b. nonnegotiable, because the amount of money is less than $500.
c. nonnegotiable, because it is illegal to write an order instrumentpayable to a relative.
d. nonnegotiable, because there is no specific person identified.
A petition for a discharge in bankruptcy under Chapter 11 may be filed by
a. Reliable Insurance Company.
b. Pacific Mountain Railroad.
c. Solid State Bank.
d. Valley Credit Union.
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.
High Pointe LLC’s members include Irvin. For purposes of holding title to property,
High Pointe is
a. an aggregate of Irvin and the other members.
b. a natural person in the member’ “family.”
c. a legal entity apart from the owners.
d. a non-participating third party.
Kris wants one of Jasmine’s purebred Persian kittens. Kris signs an instrument in which
she promises to pay Jasmine for a kitten. The instrument will be negotiable if it is
payable in
a. goods of equal market value.
b. money.
c. any of the choices.
d. shares in stock.
An agreement that is deemed a per se violation will be examined by a court to
determine whether the agreement’s benefits outweigh its anticompetitive effects.
In ethical terms, a cost-benefit analysis is an assessment of the negative and positive
effects of alternative actions on individuals.
A maker of an instrument that is payable at a definite time does not have the option of
paying before the stated date.
The need to protect intellectual property is recognized in the Declaration of
Independence.
A board of directors can delegate some functions to corporate officers.
When an owner is unable to make mortgage payments, a lender may agree to a short
sale.
Some risks are obvious but that does not necessarily excuse a business owner from the
duty to protect customers from foreseeable harm.
A group boycott is not a per se violation.
A business trust resembles a corporation.
In general, if a contract is illegal, a court will not enforce it.
A trademark does not need to be registered to support a trademark infringement action.
Bribery of foreign government officials is both an ethical and a legal issue.
Picking pockets is larceny.
In order of priority, the claims of all unsecured creditors in a class must be satisfied
before any remaining amounts can be distributed to the next class.
There are legal questions involved when choosing an appropriate business
organizational form.
As long as a contract is personal in nature, all rights under the contract can be assigned.
A borrower has a right to rescind a mortgage within three business days.
A check “payable to the order of bearer” is neither an order instrument nor a bearer
instrument.
In a general partnership, all partners have equal rights in managing the partnership.