A federal judge must adhere strictly to federal sentencing guidelines.
An express warranty cannot be limited.
On a partner’s dissociation, his or her duty of loyalty to the partnership ends.
Article 2 of the UCC governs contracts for sales of services.
Payment of the principal obligation will not discharge the surety from the obligation.
An agency relationship may not occur by operation of law in a family.
If a contract specifies a certain carrier, a substitution of a different carrier for any reason
breaches the contract.
The UETA does not require that an agreement to conduct a transaction electronically be
made electronically.
Only a foreseeable intervening event can break the connection between a wrongful act
and an injury to another.
Violations of the Securities Exchange Act of 1934 may be subject to criminal
prosecution.
Common stock provides a proportionate interest in the corporation with regard to
control.
Presentment warranties protect the person who presents an instrument for payment.
Oral evidence of the meaning of a contract with incomplete terms can be introduced at a
trial.
Contract disputes rarely arise on a promise of future performance.
All nations have restrictions on imports.
When state regulations affect interstate commerce, commerce must always yield to the
regulations.
A motion for a judgment notwithstanding the verdict seeks to set aside a verdict and
enter a new verdict in favor of the non-prevailing party.
Business ethics is consistent only with short-run profit maximization.
A check, like other negotiable instruments, is a formal contract.
The act of state doctrine provides that only a head of state can make treaties with
another nation.
Fraud occurs only when there is reliance on a statement of opinion.
The terms in a click-on agreement may be enforced if the parties expressly agreed to
them.
Accountants and other professionals do not face liability under the common law for any
breach of contract.
A contract between parties residing in different countries is subject to United Nations
Convention on Contracts for the International Sale of Goods.
Under the plain meaning rule, a court will enforce a contract according to what it
clearly states.
Certain liquidation cases may be converted to repayment plan cases with the consent of
the debtor.
To be valid, a contract must be enforceable by all of the parties to it.
Minimum contacts with a jurisdiction are never enough to support jurisdiction over a
nonresident defendant.
The most common way to acquire personal property is to produce it.
A board of directors can delegate some functions to corporate officers.
All employers in the United States are subject to federal employment discrimination
laws.
Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy
Company. Food can obtain only 20,000 of the 6-ounce containers, but also ships 30,000
more expensive 8-ounce containers for the same price. Under these circumstances,
Golden
A.cannot reject delivery, and Food cannot later replace the containers.
B.cannot reject delivery, but Food can later replace the containers.
C.may reject delivery, and notice to Golden of Food’s intent to cure will give Food a
reasonable time to replace the containers.
D.may reject delivery, but Food cannot later replace the containers.
Mike owes $12,000 to Nora, $6,000 to Owen, and $6,000 to Pat. The three creditors
enter into an agreement with Mike to discharge the debts on payment of a sum of
$12,000 to them, to be divided proportionately. This is
A.a composition agreement.
B.a guaranty agreement.
C.a judicial lien.
D.a suretyship agreement.
Inadvertently, Morris leaves his backpack at NuWay Launderers when he stops to pick
up his clothes. The backpack is
A.abandoned property.
B.gifted property.
C.lost property.
D.mislaid property.
Fact Pattern 10-1
Moore Properties, Inc., offers in writing to sell to Lawn Acres Development
Corporation a certain half-acre of land for “$112,000.” After Lawn Acres signs the offer
in acceptance and returns it, Moore discovers that the price should have been stated as
“$121,000.”
Refer to Fact Pattern 10-1. The effect of Moore’s misstatement of the price will most
likely fall on
A.Moore and Lawn Acres, who must split the difference.
B.Moore only.
C.Lawn Acres only.
D.neither Moore nor Lawn Acres.
First Community Bank agrees to accept a check by setting aside sufficient funds to
cover the amount. This check is considered
A.cashed.
B.certified.
C.deposited.
D.provisionally credited.
Sam contracts to harvest Tina’s crop on August 1. Due to an unexpected regional fuel
shortage, Sam cannot perform on the specified date. This
A.breaches the contract.
B.discharges the contract.
C.has no effect on the contract.
D.suspends the contract.
Geoff serves in a representative capacity for Huck. To accomplish the objectives of this
relationship, Geoff’s authority can be implied
A.by contradiction.
B.by custom.
C.by lack of reason.
D.under no circumstances.
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.
Fact Pattern 18-1
Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto
Sales. Fine sells the cars to consumers and businesses.
Refer to Fact Pattern 18-1. Ira, a police officer, buys an Excel from Fine to drive in his
off-duty hours. Ira’s Excel is
A.a consumer good.
B.an accession.
C.equipment.
D.inventory.
Lucille, an accountant, is subject to the accounting conventions, rules, and procedures
that constitute generally accepted accounting principles (GAAP). GAAP are determined
by
A.the International Accounting Standards Board.
B.the American Bar Association.
C.the American Institute of Certified Public Accountants.
D.the Financial Accounting Standards Board.
Herb, a computer programmer for Inventory Control Corporation, is arrested in his
employer’s parking lot on suspicion of larceny. Herb must be informed of his right to
A.a trial by jury.
B.punishment.
C.question witnesses.
D.remain silent.
Olly applies for a job with Petro Company. Petro does not hire Olly because of his
ethnicity, or national origin. This is
A.desperate-measure discrimination.
B.disparate-impact discrimination.
C.disparate-treatment discrimination.
D.not discrimination.
Global Investments Corporation buys and sells securities. Section 10(b) of the
Securities Exchange Act of 1934 applies to
A.only the purchase or sale of a security involving misappropriation.
B.only the purchase or sale of a security involving short-swing profits.
C.only the purchase or sale of a security involving a tipper and tippee.
D.the purchase or sale of any security.
In the facts of the first question, according to the reasoning of the dissent in the Central
case, the prevailing party would be
A.both Vance and WSU.
B.neither Vance nor WSU.
C.Vance.
D.WSU.
A state statute requires machinery in industrial plants to include automatic shut-off
switches accessible to each employee working on the machine. Steel Company’s (SC’s)
equipment does not have the switches. Trudy, an SC employee, suffers an injury that an
accessible shut-off switch would have prevented. Trudy’s best theory for recovery
against SC is
A.assumption of risk.
B.negligence per se.
C.res ipsa loquitur.
D.strict liability.
Aromatic Tea Company and Savory Stores, Inc., enter into a contract for a sale of tea.
The contract includes the term “F.O.B. Upriver City,” which is Savory’s location. This
means that the contract is
A.a bailment contract.
B.a destination contract.
C.a shipment contract.
D.a transportation contract.
Jon agrees to sell his K9 Sports Equipment store to Lacy. As part of the sale, Jon
promises never to open a similar, competing store anywhere. Jon’s promise is most
likely
A.invalid because it is part of a sale of an ongoing business.
B.invalid because of the unreasonable terms of area and time.
C.valid because it is part of a sale of an ongoing business.
D.valid because Jon and Lacy apparently have the capacity to contract.
Gass Propane Company hires Hick, an independent contractor, to make deliveries.
During a delivery, Iggy is killed in an accident caused by Hick’s negligence. Iggy’s
widow Jade files a suit against Gass, asserting that the employer is liable. Gass argues
that it had no control over the manner in which Hick did his work. The court is most
likely to hold that Gass is
A.liable because Gass employed Hick.
B.liable because Gass should have investigated Hick’s qualifications.
C.not liable because Gass did not control Hick’s work.
D.not liable because the delivery vehicle was probably faulty.
Hong, Ivan, and Juana apply to work for King Meatpacking Company. These
individuals’ identities and eligibility to work must be verified by
A.the employer.
B.the individuals.
C.the individuals’ countries of origin.
D.the U.S. Citizenship and Immigration Services.
Seth files a petition for bankruptcy. Seth must include with the petition
A.proof of each creditor’s claim.
B.a list of creditors and the amount of the debt owed to each.
C.all of his debit and credit cards to be disposed of by the court.
D.an affidavit testifying to his having read the Bankruptcy Code.
Fact Pattern 26-3
Dhani, an accountant for Eureka, Inc., learns of undisclosed company plans to market a
new laptop. Dhani buys 1,000 shares of Eureka stock. He reveals the company plans to
Fay, who buys 500 shares. Fay tells Geoff, who tells Hu. Both Geoff and Hu buy 100
shares. They know that Fay got her information from Dhani. When Eureka publicly
announces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit.
Refer to Fact Pattern 26-3. Under the Securities Exchange Act of 1934, Geoff is most
likely
A.liable for insider trading.
B.not liable because Geoff did not prevent others from profiting.
C.not liable because Geoff did not solicit information from Dhani.
D.not liable because Geoff does not work for Eureka.
According to the dissent in Casserlie v. Shell Oil Co., an inquiry into a seller’s motive in
setting prices is necessary to determine if the seller acted
A.in good faith.
B.with the motive of driving competitors out of business.
C.with the intent of making the most profit in the least time.
D.to set commercially unreasonable and discriminatory prices.
Fact Pattern 15-1
Bret, a representative of Concrete Products, Inc. assures Dependable Construction
Company (DCC) that Concrete’s cement will not crack within a certain range of
temperatures. DCC uses the product. When cracks develop within the stated
temperature range, DCC files a suit against Concrete.
Refer to Fact Pattern 15-1. The court is most likely to rule in favor of
A.Concrete, because Bret’s statement was an expression of opinion.
B.Concrete, because DCC chose Concrete’s product voluntarily.
C.DCC, because Bret’s statement was an express warranty.
D.DCC, because Concrete’s product is not fit for its purpose.
Brad stands in front of Rustler’s Round-Up Caf, shouting “fighting words” that are
likely to incite Rustler’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.
Mona asks Ned if she can store her furniture in his garage while she serves a tour of
duty with the U.S. Marines Corps. Ned agrees. This is a bailment for
A.neither party’s benefit.
B.the parties’ mutual benefit.
C.the sole benefit of the bailee.
D.the sole benefit of the bailor.
Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity’s
shareholders. When Faye’s schedule conflicts, she asks Gudren to serve Faye’s coffee
and pastries at the meeting. This transfer of duties is
A.a delegation.
B.an assignment.
C.a novation.
D.prohibited by law.
Residence Painting Company has a claim against Stuart’s property to satisfy a debt that
takes priority over other claims against the same property. This is
A.a lien.
B.a violation of most state laws.
C.a writ of attachment.
D.a garnishment.
Shelby offers to make digital copies of Relay Company’s business conference
videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the
Uniform Electronic Transactions Act (UETA), Relay’s acceptance by e-mail will be
considered effective when
A.received.
B.sent.
C.followed up by a confirmation letter sent by regular mail.
D.composed on a Relay computer.
Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone
service contract with Wander Talk, Inc., at more than the average market price. This
contract is
A.enforceable.
B.not enforceable because contracting parties can change their minds.
C.not enforceable because the contract clearly favors Wander Talk.
D.not enforceable because Uri was intoxicated when he agreed to it.
Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death
of ether owner, that owner’s interest in the stock passes to the surviving owner. This is
A.a joint tenancy.
B.a tenancy by the entirety.
C.a tenancy in common.
D.ownership in fee simple absolute.
The payment of Eden’s debt to Flem is guaranteed by Eden’s personal property. This
property is
A.a secured party.
B.a secured transaction.
C.a security interest.
D.collateral.
Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house
burns down before being sold. The agency agreement is likely
A.still in force if Frida gives Gert additional consideration.
B.still in force if Gert does not tell prospective customers.
C.terminated by mutual consent of the parties.
D.terminated by operation of law.
Property Management Corporation (PMC) owns several apartment buildings in two
states. Regarding standards for maintenance of the buildings, PMC should consult
A.the applicable city ordinances and state statutes.
B.the previous owners.
C.the long-term tenants.
D.the Uniform Landlords’ Maintenance Manual.
Cash is an employee of Drowsy Resort, Inc., covered by federal overtime provisions,
which apply only after an employee has worked more than
A.eight hours in a day.
B.forty hours in a week.
C.160 hours in a month.
D.one year for the same employer.