The E-Sign Act does NOT preempt the uniform version of the Uniform Electronic
Transactions Act (UETA).
Kasper, the owner of Lakeview Farm, and Milt, the tenant of the farmhouse on the
property, may create a fixed-term tenancy by
a. deed.
b. express contract.
c. implication.
d. sufferance.
Screen Perfect, Inc., and TV Stores enter into a contract for a sale of high-definition
television sets. Screen Perfect ships goods that do not exactly conform to the contract in
some details. TV Stores
a. cannot reject the entire shipment.
b. can reject the entire shipment.
c. must accept the entire shipment.
d. must reject the entire shipment.
Dale files a suit against Evelyn, alleging her fraud in entering into a contract with him.
Proof of an injury is required
a. to recover damages.
b. to rescind the contract.
c. to undo Evelyn’s influence.
d. under no circumstances.
A petition for a discharge in bankruptcy under Chapter 11 may be filed by
a. Indomitable Insurance Company.
b. Pacific Mountain Railroad.
c. Solid State Bank.
d. Valley Credit Union.
Summit Sales Corporation orders goods from OverStock Company. Summit plans to
market the goods to consumers generally. OverStock identifies the goods. Before they
are shipped to Summit, an insurable interest in the goods exists in
a. Summit and OverStock, but not consumers generally.
b. Summit, OverStock, and consumers generally.
c. Summit only.
d. OverStock only.
Special Roast Coffee, Inc., processes and sells a variety of coffee products. Special
Roast’s product packages must include
a. neither the contents’ net quantity nor the product’s identity.
b. the contents’ net quantity and the product’s identity.
c. the contents’ net quantity only.
d. the product’s identity only.
Applied Business Corporation makes and markets its products nationwide. Under the
stakeholder approach, to be considered socially responsible when making a business
decision, Applied must take into account the needs of
a. its consumers, the community, and society only.
b. its employees and owners only.
c. its employees, owners, consumers, the community, and society.
d. no one.
A firm named Scientific Discovery Corporation (SDC) makes an attempt to incorporate
for a purpose other than making a profit. SDC is
a. a foreign corporation.
b. an alien corporation.
c. a nonprofit corporation.
d. not a corporation.
Kay and Leo enter into a contract that falls within the provisions of the UETA. Under
the UETA, “an electronic sound, symbol, or process attached to or logically associated
with a record and executed or adopted by a person with the intent to sign the record” is
a. an e-document.
b. an e-signature.
c. an e-transaction.
d. a record.
Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain
health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is
awarded compensatory damages, the purpose would be to
a. establish, as a matter of principle, that ISI acted wrongfully.
b. provide Hybrid with funds for a foreseeable loss beyond the contract.
c. provide Hybrid with funds for its loss of the bargain.
d. punish ISI and set an example to deter others from similar acts.
Derrick is forced, under duress, to enter into an illegal bargain. Derrick
a. can enforce the contract only.
b. can recover for the value of the contract only.
c. can enforce the contract or recover for the value of the contract.
d. cannot enforce the contract or recover for the value of the contract.
Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for
similar Hondas, Ivy says, “I”ll pay no more than $5,000.” Grant says, “Forget it.”
Grant’s offer was terminated by
a. Grant.
b. Honda.
c. Ivy.
d. no oneGrant’s offer is still open.
Sid rents an apartment from Town Properties, Inc. The lease, which ends on May 31,
does not include an option for renewal, and Sid and Town do not discuss whether Sid
can stay on at the end of the term. On June 1, Sid has
a. an implied option to renew the term.
b. a right to remain contingent on notice from Town.
c. a right to remain subject to notice to Town.
d. no right to remain.
Wild Rides Theme Park owes both RollercoasterRepair, Inc. and Hot Dog Harry money.
RollercoasterRepair orally agrees to assume Wild Rides’s debt to Hot Dog Harry to
prevent Hot Dog Harry from filing suit against Wild Rides. This contract is enforceable
by
a. no party.
b. any party.
c. Wild Rides only.
d. RollercoasterRepair only.
Dino hires Eve to perform at Dino’s Club, but Eve later breaches the agreement to
accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court
will most likely
a. award damages to Dino.
b. cancel Dino and Eve’s contract.
c. order Eve to perform the contract.
d. rewrite Dino and Eve’s contract.
Finance Professionals Union represents the workers of Business & Commerce Banking
Corporation. The management of the firm refuses to bargain with the union over the
economic consequences of the company’s decision to shut down some facilities. This
violates
a. federal labor law.
b. state right-to-work laws.
c. federal employment discrimination law.
d. no federal or state law.
Leonard contracts to install automatic watering troughs in Kendall’s dairy barn. Leonard
then becomes seriously ill and contracts with Jake to install the troughs. Jake is
unreliable and never shows up to install the troughs. Kendall can sue
a. no one.
b. Jake only.
c. Leonard only.
d. Jake or Leonard.
Angela is young and healthy when she gives Annie a prize-winning horse. The gift
meets all the requirements to be effective. This is a gift
a. inter vivos.
b. causa mortis.
c. by accession.
d. by confusion.
Kip writes a check for $1,000 drawn on Local Bank and presents it to Mira. Mira
presents the check for payment to Local Bank, which dishonors it. The party most likely
liable to Mira is
a. Kip in a civil suit.
b. Kip in a criminal prosecution.
c. Local Bank in an administrative proceeding.
d. neither Kip nor Local Bank.
Rubin writes a check drawn on his account at Clearwater Bank and payable to the order
of Gwyn. The bank does not pay the check. Rubin is
a. absolved of liability on the check.
b. liable to Gwyn for the amount of the check.
c. liable to the bank for the amount of the check.
d. entitled to payment of the amount of the check from Gwyn.
Wilson has an adjustable-rate mortgage. The rate of interest Wilson pays
a. cannot change.
b. will change periodically.
c. is determined by the Federal Reserve.
d. will decrease over time.
Fact Pattern 31-1
Ray is a shareholder of Small Biz Company (SBC). When the directors fail to undertake
an action to redress a wrong suffered by SBC, Ray files a suit on the firm’s behalf.
Refer to Fact Pattern 31-1. Ray’s suit is a shareholder’s
a. business-judgment rule suit.
b. derivative suit.
c. duty-of-care suit.
d. duty-of-loyalty suit.
Nico is a passenger in a car driven by Owen, whose reckless driving causes an accident,
injuring himself. Nico, uninjured, accompanies Owen to Parkside Hospital in an
ambulance. The ambulance is hit by a car driven by Quin, injuring Nico. Nico files a
suit against Owen, alleging negligence. The element most likely to be a question for the
court to decide is
a. causation in fact.
b. proximate cause.
c. the duty of care.
d. the injury requirement.
Peter, an agent for Zippy Cars, Inc., writes a letter to Cassandra on March 1 stating that
he will sell her a 2011 Subaru Outback for $20,000 between March 1 and April 30.
Peter’s letter to Cassandra is
a. a firm offer.
b. an acceptance.
c. a bilateral contract.
d. a breach.
Kim’s Pony Rides orders ten saddles from Little Horse Saddles, Inc. The sales contract
states that if the saddles are defective, Kim’s will allow Little Horse Saddles to repair or
replace them instead of rejecting the shipment. When the saddles arrive, they are
defective. In this case, the perfect tender rule
a. does not apply.
b. applies to both parties.
c. applies only to Little Horse Saddles.
d. applies only to Kim’s Pony Rides.
Cory believes that he and Dian agreed that he would act as her personal sports trainer
for seven workout sessions. In a later dispute, the existence of any contract can be
judged by
a. the parties’ statements at the time of their alleged contract.
b. what the defendant claims was the parties’ intent.
c. what the plaintiff claims was the parties’ intent.
d. what the parties agree they intended.
Younger asks Zippy, “Do you want to buy one of my fishing rods?” This is
a. a valid offer.
b. not a valid offer because the terms are not definite.
c. not a valid offer because Younger did not state an intent.
d. not a valid offer because Zippy did not respond.
Big Screen Video Corporation sells high-definition television sets. Under most
circumstances, Big Screen Video will be presumed to have warranted that its title to the
TVs is
a. the same as each brand’s name.
b. none of the choicesa warranty of title is not presumed.
c. good and valid.
d. the best that money can buy.
Chloe files a suit against Digital Associates, Inc. (DAI), to enforce a contract. The only
written evidence of the contract is a memo on DAI’s letterhead as signed by a DAI
officer in its files. The contract can be enforced if the memo includes
a. a correct title, such as “Chloe-DAI Contract.”
b. all essential terms.
c. a statement of the consideration.
d. the parties’ addresses.
Mountain Bikes, Inc. (MBI), and Nero enter into a contract for a sale of a mountain
bike. MBI, a merchant who deals in goods of the kind sold, makes implied and express
warranties in connection with the sale. The Magnuson-Moss Warranty Act attempts to
prevent deception in warranties by
a. displacing the UCC as the primary source of warranty rules.
b. making warranties easier to understand.
c. prohibiting disclaimers of warranties.
d. requiring sellers to give written warranties for consumer goods.
Fits Like A Glove Shoes, Inc., and Retail Footwear Stores enter into a contract for a sale
of shoes. The contract indicates that the price includes transportation costs to a specific
destination by including the term
a. C.I.F.
b. delivery ex-ship.
c. F.A.S.
d. F.O.B.
A finder acquires title to mislaid property good against the whole world, including the
true owner.
A summary judgment is granted only if there is no genuine question of law.
If the subject matter of a contract turns out to be more valuable than one of the parties
believed it would be, that party can rescind the contract.
Each bank in a collection chain must pass a check on before noon of the day of its
receipt.
If a contractual promise is not fulfilled, the person who made it may be required to
perform the promised act.
Felonies are punishable by imprisonment for more than a year or death.
The drawee who signs a draft or check is NOT primarily liable to any subsequent
holders.
The courts consider legitimate competitive behavior permissible only if it does not
result in the breaking of a contract.
A copy need not be exactly the same as the original to infringe a copyright.
An alteration of an instrument is material if it changes the terms between two parties in
any way.
It is not a crime to defraud the public through the use of ads on television.
Title VII covers employees’ online activities.
A guaranty contract must be in writing to be enforceable, unless the main purpose
exception applies.
A patent may be valueless to its owner if the owner cannot afford to protect it.
One function of an administrative agency is investigating activities regulated by the
agency.
Inadequate consideration always indicates undue influence.
An administrative law judge makes determinations of facts.