CheezBurger Heaven, Inc., conducts a chain-style franchise. This involves the transfer
to Clive, one of its franchisees, of
a. a license.
b. a trade name.
c. the formula to make a product.
d. the ownership of the business.
With respect to Egor’s land, Fig has an easement, Gabe has a profit, and Huck has a
license. A right to possess the land is owned by
a. Egor.
b. Fig.
c. Gabe.
d. Huck.
Which of the following is not a common form of electronic surveillance of employees
in the workplace?
a. Reviewing employees’ emails
b. Requiring employees to wear electronic location monitoring bracelets
c. Video-recording job performance
d. Listening to employees’ telephone conversations
Roger wants Andy to work late on a project. He tells Andy that the morally correct
thing to do is to stay late at the office and work on the project. Andy feels obligated to
stay and work late due to the moral pressure from Roger. Andy stays late at the office,
even though he does not want to. Andy can sue Roger for
a. false imprisonment.
b. battery.
c. defamation.
d. no tort.
Fried Food, Inc., operates a commercial frying plant, discharging pollutants into the air.
Greg reports the violations to the Environmental Protection Agency. Greg
a. is not entitled to a payment.
b. may be paid up to any amount.
c. may be paid up to $1,000.
d. may be paid up to $10,000.
Violet negotiates with Urban Credit Corporation to obtain a loan for $85,000 to buy a
home. During the negotiations, Urban Credit orally misrepresents the terms, but
provides the required documents, which accurately state the terms. Violet does not read
the documents. The party or parties most likely liable for a violation of the law is
a. neither party.
b. Urban Credit.
c. Urban Credit and Violet.
d. Violet.
Creditworthy Loan Company extends credit in the ordinary course of its business.
Under the Truth-in-Lending Act, Creditworthy must inform potential borrowers of
a. credit terms offered by other lenders.
b. comparative prices for goods to be bought with the borrowed funds.
c. Creditworthy’s credit terms.
d. the borrowers’ credit scores.
Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren’s
specifications. The car earns several awards at regional vehicle customizing
competition shows. The result of Mike’s efforts is
a. accession.
b. acquisition.
c. conversion.
d. resolution.
Bernadette enters into a contract to operate a Caramel Coffee franchise, which Caramel
Coffee agrees to support as long as Bernadette maintains her business license. Caramel
Coffee’s duty to perform is
a. not a condition.
b. a condition precedent.
c. a concurrent condition.
d. a condition subsequent.
Raphael agrees to lease an apartment from Suzanne for one day to see Thomas, the
president of the United States, deliver a speech in the street below. The speech is
canceled three days before its scheduled date. The contract
a. is discharged.
b. is not affected.
c. is postponed until another event is scheduled.
d. must be performed immediately.
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.
Early one morning, Tab agrees to lend his bike to Sheila, who promises to return it in
the evening. Because there is no consideration, there is no contract. This is
a. a constructive bailment.
b. an involuntary bailment.
c. an express bailment.
d. no bailment.
Barbara and Johann are parties to a contract. They agree on a novation. The novation
requires
a. the existence of a previous, valid obligation.
b. consideration greater than $5,000.
c. performance of the original contract by all of the parties.
d. an accord and satisfaction.
Thirty-one days before filing a petition in bankruptcy, Dee transfers property and makes
payments that favor one creditor over another. These are
a. affirmation agreements.
b. preferences.
c. secured interests.
d. unsecured debts.
Marcy goes hunting out of season and shoots an endangered species of deer in a
national park. Marcy’s acquisition of the deer is
a. by production.
b. illegal.
c. by confusion.
d. by possession.
Oscar refuses to pay Petra $500 in cash on their contract to repair Oscar’s washing
machine, which Petra still possesses at her repair shop. Petra’s lien on the machine will
terminate
a. if Petra continues to maintain possession.
b. if Petra does not file a written notice of lien within thirty days.
c. if Petra voluntarily surrenders possession.
d. within thirty days.
Hailey, a lawyer on the staff of International Group, always considers the consequences
of an action rather than the nature of the action itself when making ethical decisions in a
business context. Hailey is applying
a. the utilitarian theory of ethics in business contexts.
b. religious beliefs in business contexts.
c. Kantian ethics in business contexts.
d. the principle of rights theory of ethics in business contexts.
Standard Business Company appeals a decision against it, in favor of Top Flight
Corporation, from a lower court to a higher court. Standard is
a. the appellant.
b. the appellee.
c. the defendant.
d. the plaintiff.
Wally asks Eddie if he can store his furniture in Eddie’s garage while he serves a tour of
duty with the U.S. Marines Corps. Eddie agrees. This is
a. a bailment.
b. accession.
c. a gift.
d. abandoned property.
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.
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which
the court renders a verdict. The case is appealed to an appellate court. After its review
of Kelly v. Lewis, the appellate court upholds the lower court’s verdict. The appellate
court has
a. affirmed the case.
b. reversed the case.
c. remanded the case.
d. reversed and remanded the case.
Eighty-year-old Clark exhibits confusion, forgetfulness, and disorientation. Dave,
Clark’s doctor, believes that the symptoms indicate dementia. Elsa, who has significant
contact with Clark, believes that he is in a state of mental decline. These facts indicate
a. an urgency that Clark distribute his assets.
b. Clark’s lack of capacity.
c. Dave’s misdiagnosis.
d. Elsa’s intent to take advantage of Clark.
Beth is a victim of Carl’s violation of a criminal law. Criminal law is concerned with
a. the prosecution of private individuals by other private individuals.
b. the prosecution of public officials by private individuals.
c. the relief available when a person’s rights are violated.
d. wrongs committed against the public as a whole.
In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc.,
applies her belief that all persons have fundamental rights. This is
a. a religious rule.
b. the categorical imperative.
c. the principle of rights.
d. utilitarianism.
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?
Cluckee Chick”n Corporation provides its prospective franchisees with projected
earnings figures based on actual data. Cluckee Chick”n must also disclose
a. the number and percentage of franchisees that achieved the figures.
b. hypothetical examples of potential earnings.
c. an answer to the entrepreneur’s question, “How much will I make?”
d. none of the choices.
Silky Coordinates, a women’s clothing store, employs female attendants to assist
customers in the dressing rooms. Radley, a forty-one-year-old male, applies for an
attendant’s job, but is not hired. In Radley’s suit against Silky for employment
discrimination under Title VII, the store has
a. no defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. a seniority systems defense.
Sarah has a checking account at Secure Bank. Sarah buys her roommate Sophie’s two
tickets to a Broadway musical for $200. Sarah writes Sophie a check for the tickets. In
this situation, Secure Bank is the
a. drawee.
b. indorser.
c. payee.
d. drawer.
Brenda induces Carmen to enter into a contract for the sale of a gas station and
convenience store. Brenda tells Carmen that she is the sole owner, but their signed,
written contract lists Brenda’s parents as co-owners. The parol evidence rule governs
a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the merging of oral and written statements into one contract.
Eye Appliance Company and Fresh Views, Inc., wish to combine all of their assets,
stock, and personnel into a new firm to be called Goggles Corporation. This is
a. a consolidation.
b. a merger.
c. an exchange of assets.
d. a takeover.
Robert owns Textbooks Plus, a sole proprietorship that sells textbooks. When Robert
dies, Textbooks Plus will
a. be automatically dissolved.
b. pass directly to his oldest child.
c. pass directly to the state.
d. be evenly divided among all Robert’s heirs.
Only the federal government sets safety standards governing workplaces.
A fixed-term tenancy is created when a lease does not specify its duration.
A professional can be liable for fraud whether or not he or she acted with fraudulent
intent.
Statutes are laws enacted by Congress and the state legislatures and comprise one of the
sources of American law.
To qualify as a commercially reasonable sale, a secured party’s sale of collateral, after
default and repossession, must be private.
For an effective bailment, the bailor must deliver possession of the bailed property with
its title.
Ed, a businessperson, is a friend of Fran, the owner of a Percolated Coffee & Baked
Goods store. Every day, Ed spends five minutes in Fran’s store, looking at the goods
and usually buying one or two cinnamon buns or bagels. One afternoon, Ed goes into
the store, looks at the items, and picks up a $1 chocolate brownie. Ed waves the
brownie at Fran without saying a word and walks out. Is there a contract? If so, how
would it be classified in terms of formation, performance, and enforceability?
A member of a limited liability company (LLC) has the power and the right to
dissociate from the LLC at any time.
Tariffs are imposed only on exports.
An “assignment of all rights” creates an assignment of rights but not a delegation of
duties.
In many states, a release contract must be in a signed writing.
In general, courts consider the fairness of a contract when deciding if the contract is
binding.
A debtor who promises to pay a previous debt even though recovery is barred by a
statute of limitations makes an enforceable promise.
An environmental impact statement is required for every major federal action that
significantly affects the quality of the environment.
In a contract for a sale of goods, the usual measure of compensatory damages is the
difference between the contract price and the market price.
Many different laws may apply to a single business transaction.
The purpose of a corporation may be specified in its articles of incorporation.
A license is the revocable right of a person to come onto another person’s land.