Summer Breeze, Inc., contracts for the sale of fifty ceiling fans to Island Dcor store. If
Summer Breeze fails to deliver the goods, Island Dcor must commence a suit for breach
of contract within
a. four years.
b. not more than one year.
c. not less than four years.
d. thirty days.
Plastix Produx Company is subject to a decision by the Consumer Product Safety
Commission. Opposed to the decision, Plastix Produx wants a court to review it. First,
however, the firm must use all of the potential administrative remedies. This is
a. an actual controversy at issue.
b. standing to sue.
c. the exhaustion doctrine.
d. the ripeness doctrine.
New Town Construction, Inc., wants to build a parking ramp to connect to its New
Town Mall, both of which are on private land. For this action, an environmental impact
statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Julia opens a checking account with Washington Bank and deposits funds into the
account. Julia and Washington Bank
a. do not have a contractual relationship.
b. have a creditor-debtor relationship in which Julia is the creditor and Washington
Bank is the debtor.
c. have a creditor-debtor relationship in which Washington Bank is the creditor and
Julia bank is the debtor.
d. do not have a creditor-debtor relationship.
Beth goes to Dr. Carlton for surgery. Carlton says that Beth should be fully healed
within a week. Beth is not healed within a week. With respect to breach of contract,
Carlton is
a. liable.
b. not liable, because surgery is not a proper subject for a contract.
c. not liable, because the statement was an opinion.
d. not liable, but Beth is excused from paying Carlton.
Bailey, the president of Carmichael Commodities Company, claims that certain actions
by the federal government and by the state of Delaware infringe on rights guaranteed by
the Bill of Rights. All of these rights limit
a. neither Delaware nor the federal government.
b. the federal government only.
c. Delaware and the federal government.
d. Delaware only.
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.
South Dakota, like other states, may regulate private activities to protect or promote the
public order, health, safety, and general welfare under
a. the state’s police powers.
b. the dormant commerce clause.
c. the due process clause.
d. the free exercise clause.
Dewey is the payee for a check written by Fred. Cash Credit Corporation (CCC)
accepts the check from Dewey as part of a payment. CCC cannot become a HDC if
a. the check has been transferred more than once.
b. the check has been outstanding for one week.
c. the check has been outstanding for more than ninety days.
d. there are bankruptcy proceedings against Fred.
The Financial Institutions Association would like a certain law enacted, administered,
interpreted, and enforced in the best interest of its members, which include banks.
Under the Constitution, Congress
a. administers the laws.
b. enforces the laws.
c. interprets the laws.
d. makes the laws.
Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the
company knows drives longer hours than federal regulations permit. One night, Garn
exceeds the limit and has an accident. Spilled chemicals contaminate Hill City’s water
source, forcing the residents to move away. Flexo acted unethically because
a. Flexo showed reckless disregard for Hill City’s residents and others.
b. Garn exceeded the federal time limit.
c. harm was caused by an unfortunate accident.
d. Hill City should have better protected its water source.
Oliver borrows money from Peerless Loan Company. For Peerless to obtain a writ of
execution, Oliver must
a. be unable or refuse to pay the amount of a judgment.
b. be unable to redeem Oliver’s exempt property.
c. notify Imprints in writing (in a “writ”) of his intent.
d. surrender possession of his property to a court.
Helen owns heavy construction equipment and the tools to service it, as well as office
furniture, including computers. Ilya owns a number of patents, trademarks that identify
the products made under those patents, and stock in the company that sells those
products. Personal property includes the items owned by
a. Helen and Ilya.
b. Helen only.
c. Ilya only.
d. neither Helen nor Ilya.
Alain and Brie sign a contract for the sale of Alain’s Coffee Caf to Brie. The parties
intend their written contract to be a final statement of most, but not all, of the terms of
their agreementAlain must first buy the building from Developed Commercial
Properties, Inc., after which Alain and Brie will negotiate a price.
Brie later disputes some of the provisions of the deal with Alain. If the dispute results in
litigation, a court will most likely admit evidence of additional terms that are
a. ambiguous.
b. consistent.
c. contradictory.
d. clear.
There are no precedents on which the court deciding the case Financial Investment Co.
v. Goodhands Insurance, Inc., can base its decision. The court may consider
a. issuing an order according to the judge’s personal values.
b. refusing to decide the case.
c. postponing a decision until a precedent is available.
d. basing a decision on public policy or social customs and values.
Jayne and Wilbur enter into an oral contract on May 1 under which Jayne agrees to
deliver a collection of exotic wines by April 30 of the following year. This contract is
enforceable by
a. Jayne only.
b. Wilbur only.
c. either party.
d. neither party.
Biff signs a note “payable to the order of County Credit Union.” Unless Biff has a valid
defense against payment, Biff’s liability on this note is
a. nothing.
b. primary.
c. secondary.
d. conditional.
Stan rents a safe-deposit box at Main Street Bank under a contract that gives Stan
exclusive knowledge and control over its contents. This is
a. a bailment.
b. accession.
c. production.
d. confusion.
Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The
exterior boundaries of the land extend
a. 100 feet into the earth and 100 feet into the atmosphere.
b. one mile into the earth and one mile into the atmosphere.
c. to infinity and beyond.
d. to the center of the earth and up to the farthest reaches of the atmosphere.
Sof” Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May
1 for which Stuffy agrees to pay. Sof” tells Stuffy on April 15 that delivery will be
delayed until June 1. Stuffy may
a. await performance, sue Sof”, or suspend its own performance.
b. only await Sof’s performance for a commercially reasonable time.
c. only sue Sof” for breach of contract.
d. only suspend its own performance.
Bild-It-Rite Corporation is a public company that is preparing to issue securities that do
not qualify for an exemption from registration. This means that Bild-It-Rite must
a. file a registration statement with the SEC.
b. issue the securities through an online registration site.
c. refrain from issuing the securities to unregistered investors.
d. register the securities with a national stock exchange.
Martha brings a suit against SafeCars, Inc. claiming that she was injured during a car
crash due to defects in the car she had purchased from SafeCars. There is no evidence
that Martha was injured in the accident, but the trial court awards her $1 million in
damages. SafeCars appeals the decision. The appellate court will most likely
a. not modify the trial court’s finding of fact because appellate courts are forbidden to
look at questions of fact.
b. modify the trial court’s finding of fact because the finding was clearly erroneous.
c. modify the trial court’s finding of fact because the award amount was more than
$25,000.
d. modify the trial court’s finding of fact because the award amount was less than $5
million.
Peak & Vale Accountants provides other firms with accounting services. Questions of
what is ethical involve the extent to which Peak & Vale has
a. a legal duty beyond those duties mandated by ethics.
b. an ethical duty beyond those duties mandated by law.
c. any duty beyond those mandated by both ethics and the law.
d. any duty when it is uncertain whether a legal duty exists.
Lea signs a contract with Metro Business Loans, Inc., to borrow $25,000 to remodel
Lea’s Hair Care Salon. Lea does not repay the loan. Metro fails to sue within the time
prescribed by the applicable statute of limitations. Later Lea promises to pay the debt.
To be enforceable, this promise needs
a. bargained-for consideration.
b. no consideration.
c. legally sufficient consideration.
d. adequate consideration.
Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would
constitute, in the United States, violations of U.S. antitrust laws. These laws apply
a. extraterritorially.
b. only to signatories of the North American Free Trade Agreement.
c. only to members of the World Trade Organization.
d. only within U.S. borders.
Katie buys a car when she is seventeen. When she is twenty-five, Katie tries to
disaffirm the contract and recover all her car payments. A court will likely find that the
contract was
a. ratified and Katie cannot recover her payments.
b. not ratified and Katie can recover her payments.
c. not a valid contract because Katie was a minor when she entered into it and she can
recover her payments.
d. ratified, but Katie can still recover her payments because she was a minor when she
entered into the contract.
Vijay enters into a contract to sell his laptop to Winnie. Winnie takes possession of the
laptop as a minor and continues to use it well after reaching the age of majority. Winnie
has
a. expressly ratified the contract.
b. impliedly ratified the contract.
c. disaffirmed the contract.
d. none of the choices.
Clear Day Company, which is based in Delaware, agrees to sell fifty windows,
currently stored in Florida, to Far Vu, Inc., which is based in Hawaii. Absent an
agreement to the contrary, the place of delivery is in
a. California.
b. Delaware.
c. Florida.
d. Hawaii.
Brad stands in front of Rooster’s Round-Up Caf, shouting “fighting words” that are
likely to incite Rooster’s patrons to respond violently. The First Amendment protects
such speech
a. all of the time.
b. none of the time.
c. only if it is noncommercial.
d. only if it is symbolic.
Chatsworth loans his laptop to Zelda. This is
a. a bailment.
b. a tenancy in common.
c. a gift.
d. lost property.
Rita, the manager of the State University (SU) soccer team, orally agrees to lease a
certain number of specially made SU banners from Top Banners, Inc. This lease is
enforceable only if Top has made a substantial start on making the banners and
a. Rita agreed to the lease on behalf of the SU soccer team.
b. SU does not have other, similar banners available.
c. the banners are not suitable for others in the course of Top’s business.
d. the soccer season has not ended and SU goes to the finals.
Pronto Tacos LLC grants a franchise to Omar to open and operate a Pronto Tacos
restaurant. Pronto will likely charge Omar
a. an initial fee or lump sum price for the franchise license.
b. a percentage of Omar’s weekly payroll expense.
c. an amount of Omar’s monthly overhead savings, if any.
d. none of the choices.
Leslie, an accountant, enters into a contract to provide services to Marty. Leslie does
not finish the work within the contract’s deadline. Leslie is
a. liable for breach of contract.
b. not liable, because Leslie is a professional.
c. not liable, because Leslie’s failure must have been Marty”s fault.
d. not liable, because the work took longer than foreseen.
Vested is the condition in which rights have taken effect and cannot be taken away.
The element of intent is not very important in determining whether a contract has been
formed.
Only outsiders who would ordinarily be deemed fiduciaries of the corporations in
whose stock they trade can be liable for insider trading.
A point-of-sale system is a type of electronic fund transfer system.
Federal law encourages private lenders to modify mortgages so as to lower the monthly
payments of borrowers who are in default.
The categorical imperative cannot be applied to many business actions.
A buyer in the ordinary course of business has priority over any security interest created
by the seller.
The use of a person’s likeness for commercial purposes without permission is
appropriation.
A contract in which a party assumes a secondary obligation must be in writing to be
enforceable.
Administrative law includes only state regulations.
If the goods or their tender fail to conform to the contract, the buyer can accept part and
reject part.
In some states, an otherwise unenforceable oral contract may be enforced under the
doctrine of promissory estoppel.
There is at least one federal district court in every state.
An independent contractor is an employer who controls his or her agent’s performance.
For a party to a contract to receive relief from either a unilateral or a bilateral mistake,
the mistake must involve a material fact.
A quasi contract is not a true contract.
When a release of hazardous chemicals from a site occurs, potentially responsible
parties can avoid liability through transfer of ownership.
An innocent party does not need to suffer an injury to collect damages as a result of a
misrepresentation.
The courts consider legitimate competitive behavior permissible only if it does not
result in the breaking of a contract.