Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The
complaint should include
a. an explanation of the proof to be offered at trial.
b. a motion for judgment n.o.v.
c. a motion for judgment on the pleadings.
d. a statement of the grounds for the court to exercise jurisdiction.
Nouveau Riche Corporation, and its officers, directors, and shareholders, buy and sell
securities. SEC Rule 10b-5 applies to
a. only the purchase or sale of a security by a financial corporation.
b. only the purchase or sale of a security involving an officer or director.
c. only the purchase or sale of a security involving a shareholder.
d. the purchase or sale of any security.
Estimable Financial Corporation merges with First Bank Corporation, with Estimable
Financial absorbing First Bank. After the merger
a. a different, new corporation is the surviving corporation.
b. Estimable Financial and First Bank are both surviving corporations.
c. Estimable Financial is the surviving corporation.
d. First Bank is the surviving corporation.
Dinsmore Corporation employs Coolwater Cyberspace Security, Inc. to protect the
integrity of Dinsmores computer system. Coolwater assigns Brigit and each of
Dinsmores other authorized users an individualized password. A serious security
problem would most likely exist if Brigit
a. does not change the password.
b. changes the password immediately.
c. changes the password on a regular basis.
d. changes the password at irregular intervals.
Citrus Groves contracts with four food companies to sell its entire crop of oranges.
When half of the crop is lost to an unexpected insect infestation, Citrus must
a. apportion its surviving crop fairly among its customers.
b. breach some of its contracts.
c. buy elsewhere as many oranges as needed to satisfy its contracts.
d. substitute other fruit for the oranges.
Jim files a suit against Kay. Before going to trial, the parties meet, with their attorneys
to represent them, to present their dispute to a third party who is not a judge but who
renders a legally binding decision. This is
a. arbitration.
b. litigation.
c. mediation.
d. negotiation.
Mike is arrested at a warehouse in North Industrial Park. A government prosecutor
issues a formal charge against Mike for receiving stolen property. This charge is
a. an arraignment.
b. an indictment.
c. an information.
d. an inquisition.
Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury
a. if Ike intended to push Joan.
b. only if Ike did not intend to break Joans arm.
c. only if Ike had a bad motive for pushing Joan.
d. only if Ike intended to break Joans arm.
Unity Production Company is suspected of employing illegal immigrants. The
government conducts random compliance audits and other enforcement measures
against those who might violate immigration laws through
a. the CIS.
b. the H1-B.
c. the ICE.
d. the NLRB.
Bay City Construction, Inc., a contractor, asks Cool Electric, a subcontractor, to provide
certain services. Nothing is expressed about payment. Cool provides the services, but
Bay City refuses to pay. In Cools suit to recover, the chief issue is most likely to be
whether these parties had
a. a formal contract.
b. an actual contract.
c. an implied-in-fact contract.
d. a voidable contract.
Drew contracts to sell a residential duplex to Evan. The contract provides that if Drew
does not close the deal by September 15, he must pay Evan one-half of the contract
price. This provision is not enforceable because it is
a. a liquidated damages clause.
b. a mitigation clause.
c. a nominal damages clause.
d. a penalty clause.
Edna and Flavia buy a boat that they dock in a marina near Gulfport, Mississippi. On
the death of either owner, that owners interest in the boat passes to her heirs. This is
a. a joint tenancy.
b. a tenancy by the entirety.
c. a tenancy in common.
d. ownership in fee simple absolute.
On the orders of their corporate employer, Della and Efron, employees of Fabulous
Fashionista, a clothing store, switch trademarks on clothing that comes into the store to
be sold to consumers. This is
a. forgery.
b. larceny.
c. obtaining goods by false pretenses.
d. no crime.
Diamond Financial Planners employs Ella, who is the firms most productive performer.
Ella, dissatisfied with the commission structure, quits to work for Feldstar Investments,
Inc. She takes her list of Diamond clients to induce them to switch to Feldstar. Trade
secrets law covers
a. Diamonds list of clients.
b. Ellas performance.
c. Feldstars commission structure.
d. none of the choices.
The United States taxes each barrel of imported oil at a flat rate. This is
a. an antidumping duty.
b. a dumping duty.
c. a quota.
d. a tariff.
Fact Pattern 14-1
Ewa signs an instrument unconditionally promising to pay to “First State Bank $5,000
with interest in installments with the final payment due June 1, 2012.
Refer to Fact Pattern 14-1. The instrument that Ewa signed is most likely
a. a certificate of deposit.
b. a draft.
c. an order to pay.
d. a promissory note.
Leah gains access to government records and alters certain dates and amounts in her
favor. This is
a. embezzlement.
b. forgery.
c. larceny.
d. no crime.
Transnational Corporation and United Shipping, Inc., agree to a contract that includes
an arbitration clause. If a dispute arises, a court having jurisdiction may
a. monitor any arbitration until it concludes.
b. order an arbitrator to rule in a particular way.
c. order a party to bring the dispute to court.
d. order a party to submit to arbitration.
Brendan signs a check “pay to the order of City College Bookstore drawn on his
account in Delta Bank to pay for his current semesters textbooks. The bookstore
deposits the check in its account in Eagle Bank. Like most checks, this check is
a. a one-party instrument.
b. a four-party instrument.
c. a three-party instrument.
d. a two-party instrument.
The Federal Trade Commission (FTC) is a government agency that issues rules, orders,
and decisions. The Georgia state legislature enacts statutes. The Jackson County Board
and the Peach City Council enacts ordinances. Administrative law includes
a. all law that affects a businesss operation.
b. the rules, orders, and decisions of the Federal Trade Commission.
c. statutes enacted by the Georgia state legislature.
d. ordinances created by the Jackson County Board and the city council of Peach City,
Georgia.
Quality Energy Company, a U.S. firm, and Royal Petro, a Dutch firm, enter into a
contract that includes an arbitration clause. This clause must provide that the arbitrator
will be
a. any specified third party.
b. the American Arbitration Association.
c. the Dutch Arbitration Organization.
d. the International Chamber of Commerce.
Fact Pattern 18-2
Lita replaces Manny in his job at Neighborly Business Corporation (NBC).
Refer to Fact Pattern 18-2. To succeed with an age-discrimination claim against CBC,
Manny will have to show that
a. Lita is not qualified for Mannys job.
b. Manny is qualified for his job.
c. NBCs qualifications for Mannys job are too high.
d. no one could do Mannys job as well as he could.
Congresswoman Pelosi and other politicians want to prohibit the import of certain
agricultural products that pose a danger to domestic crops. With respect to these
products import, Congress can
a. do nothing.
b. impose quotas, but not tariffs.
c. impose tariffs, but not quotas.
d. prohibit the imports.
Doyle steals Carmens computer and its software. This is computer crime in which the
computer is
a. the object of the crime.
b. the subject of the crime.
c. the instrument of the crime.
d. irrelevant to the crime.
When Jeffs car breaks down, he asks Kwik Tow, Inc., to tow it from its location to
Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any
documents. After the tow, Kwik sends Jeff a bill. With respect to Jeffs obligation to pay
the bill, this is
a. an express contract.
b. an implied-in-fact contract.
c. an implied-in-law contract.
d. no contract.
The process behind the production of “Fast Pace, a racecar video game, is protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.
Congress enacts a statute to outlaw a specific type of anticompetitive business
agreement. Like other laws that regulate economic competition, this law is referred to
as
a. a federal trade commission act.
b. an antitrust law.
c. an interstate commerce act.
d. a suppressive restraint on trade.
Fun-E Products, Inc., makes and sells toys. The government agency that has the
authority to remove a potentially hazardous toy from the market is
a. the Consumer Product Safety Commission.
b. the Federal Reserve Board of Governors.
c. the Federal Trade Commission.
d. the Food and Drug Administration.
Rick manages an illegal gambling operation in his Sushi Bar & Grill. Rick reports the
profits of the gambling operation as income from Sushis legitimate activities on its tax
returns. This is
a. embezzlement.
b. larceny.
c. money laundering.
d. no crime.
In making decisions for United Merchandising Company, Vance uses a cost-benefit
analysis. This is part of
a. duty-based ethics.
b. Kantian ethics.
c. the principle of rights.
d. utilitarianism.
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 Home & Businesss customers.
Piku files an employment discrimination suit against Quotient Accounting, Inc., under
Title VII, based on its discharge of Piku. In these circumstances, possible relief under
Title VII includes
a. damages only.
b. damages or job reinstatement.
c. job reinstatement only.
d. neither damages or job reinstatement.
Ideal Gadgets, Inc., and Jolly Outlets Corporation enter into a contract for a sale of
kitchenware. The contract requires Ideal to deliver the goods to Ladle Carrier Company
for transport to Jollys warehouse in Metro City. Risk of loss passes to Jolly when
a. Ideal delivers the goods to Ladle.
b. Ideal identifies the goods to the contract.
c. Ladle transports the goods to Jollys warehouse.
d. the goods arrive in Metro City.
Omega Corporation and Precision Coding, Inc., two software firms, wish to combine
their research and development capabilities to make a special, limited edition computer
game. The most appropriate legal entity for this project might be
a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.
The owners of an unincorporated cooperative have joint liability for its obligations.
Frenchys Fast Fries (3F) requires that its employees wear uniforms and protective
clothing while on the job. 3F provides a locker room for the employees to leave their
street clothes and personal items while working. A sign on the back of the locker room
door states, “Frenchys is not responsible for the loss of any property in the locker room.
Grant, a 3F employee, changes his clothes in the locker room before starting work and
leaves his wallet and watch in a pocket of his jacket hanging in his locker. When he
returns after his shift, the wallet and watch are gone. Does Grants leaving personal
items in the locker room constitute a bailment? If so, what type of bailment? If not,
what legal relationship is it? Does 3Fs sign exculpate the company for Grants loss?
Why or why not?
Under the act of state doctrine, a firm whose assets a foreign government has expro-
priated may not recover compensatory damages in a U.S. court.
If a seller is a merchant, and the seller holds the goods, the risk of loss cannot pass to a
buyer.
A sole proprietorship is a separate legal entity for tax purposes.
Restrictions on imports may include quotas.
Crimes occurring in a business context are popularly referred to as white-collar crime.
A lessee is a party who acquires a right to the possession and use of goods under a
lease.
A contract between parties residing in different countries is subject to Article 2A of the
UCC.
A judge instructs a jury as to the law that applies in a case.
Most employees can continue the group health benefits provided by their employers for
a limited period of time after the loss of employment.
An inadequate warning is not a product defect that will support the imposition of
liability on a strict product liability basis.
Eppie gives a check to Fund Investments to buy 100 shares of stock in GR8 Tech
Corporation for Eppie. The price of the shares is constantly fluctuating. Fund
Investments asks Eppie to leave the amount of the check blank and allow it to fill in the
price when making the purchase. Eppie agrees. Fund Investments buys the stock when
the price is $4,000, but fills in the check for $5,000. The check is negotiated as payment
for a $5,000 debt to Hasty Accounting Services, which takes the check in good faith and
without notice of Fund Investmentss act. Hasty later learns that Fund Investments was
not authorized to fill in the check for $1,000 over the price. Is Hasty an HDC? If so, for
how much?
A court can dissolve a corporation for mismanagement.
Corporations, unlike persons, cannot be liable for crimes.
Generally, stock offerings that are made in a limited manner during any twelve-month
period are not exempt from the registration requirement.
A business firm may have an insurable interest in the life of a key employee.
Corporate governance can be defined as the relationship between a corporation and its
shareholders.