Mariah promises to pay her assistant Nadine $10,000 in consideration of the services
she provided over the years. Mariah never pays Nadine. Mariah is
a. liable for payment of the $10,000.
b. liable only if Nadine still works for Mariah.
c. not liable, because the consideration is in the past.
d. not liable, because the consideration was unintentional.
James is in an art gallery when Mitch, who has no special art expertise, points to a
painting and says, “That artist is so good. That piece will be worth a fortune in a few
years!” James buys the painting, which does not turn out to be valuable. James tries to
return the painting and recover his purchase price. A court will
a. order the art gallery to pay James the full purchase price.
b. order Mitch to pay James the full purchase price.
c. enforce the contract between James and the art gallery.
d. enforce the contract between James and the art gallery, but order Mitch to pay James
the full purchase price.
Derrick buys a hunting license and goes hunting. He shoots a deer, cleans it, and takes it
back to his truck. He takes the deer to town and has the meat processed. Derrick’s
acquisition of the deer is by
a. possession.
b. a bailment.
c. confusion.
d. production.
Two Japanese firmsMikato, Ltd., and Shuzushi, Ltd.enter into a joint venture in an
attempt to increase their market share of the U.S. auto market. If the joint venture is not
a per se violation of U.S. antitrust laws, a U.S. court could exercise jurisdiction over the
firms
a. if the joint venture has a substantial effect on U.S. commerce.
b. if the joint venture has any effect on U.S. commerce.
c. if the joint venture was entered into in the United States.
d. under no circumstances.
A unilateral refusal to deal can violate antitrust laws if the refusal
a. is likely to have an anticompetitive effect on a particular market.
b. results in lower prices for consumers.
c. provides no economic benefits for consumers.
d. is likely to increase competition.
Garden Field Farms and Haute Gourmet Restaurant, Inc., enter into a contract for a sale
of lettuce before Haute Gourmet declares bankruptcy. Garden Field can stop delivery of
the goods in transit
a. only if the quantity is at least a carload.
b. only if the quantity is at least a planeload.
c. only if the quantity is at least a truckload.
d. regardless of the quantity.
Organic Cheeses, Inc., Fine & Fresh Foods Company, and Healthy Whole Foods, Inc.
organize together to exchange information and share advertising. This is an example of
a
a. trade association.
b. resale price maintenance agreement.
c. monopoly.
d. territorial restriction.
The commerce clause’s express grant of exclusive authority to regulate commerce that
substantially affects trade and commerce among states is referred to as the
a. dormant aspect of the commerce clause.
b. positive aspect of the commerce clause.
c. negative aspect of the commerce clause.
d. exclusive aspect of the commerce clause.
Marvin is an employee of Wild Thing Farms. Marvin finds out that the head of Wild
Thing Farms is illegally importing endangered animals to sell as pets. If Marvin reports
his employer’s illegal activities he will probably be protected fro retaliatory discharge
by
a. unemployment statutes.
b. worker compensation statutes.
c. whistleblower statutes.
d. no statutes.
Judge Julia decides that the precedent for the case she is hearing is no longer correct
due to technological changes. She overturns the precedent when she decides the case. It
is most likely that her case will
a. go unnoticed by the public.
b. be thrown out of court.
c. receive a great deal of publicity.
d. be ignored by the media.
Mabel and Nicol do business as One World Realty. In acting on the firm’s behalf in a
deal with Property Acquisition Company, Mabel fails to account for the profit. To her
firm, Mabel is
a. liable for breach of the duty of care.
b. liable for breach of the duty of economic sense.
c. liable for breach of the duty of loyalty.
d. not liable.
Jackson is accused of a crime. Jackson can refuse to provide information
about his allegedly criminal activities
a. if he suspects the information will be used to prosecute him.
b. if the police do not promise to keep the information confidential.
c. if the information is “fruit of the poisonous tree.”
d. under no circumstances.
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.
Dora leases a house from Evan for a two-year term. To ensure the validity of their lease,
it should include
a. a description of the property.
b. a due date for the payment of the property taxes.
c. a requirement that Dora perform structural repairs to the house.
d. a requirement that Evan carry liability insurance.
Mariah takes off her ring and places it on her desk while she works. Without her
knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away.
Nita has likely committed
a. burglary.
b. forgery.
c. larceny.
d. no crime.
Justin is charged with a crime. He insists that he should have an opportunity to object to
the charges before a “fair, neutral decision maker.” No one can be deprived of “life,
liberty, or property without due process of law” under the
a. Second Amendment.
b. Fourth Amendment.
c. Fifth Amendment.
d. Eighth Amendment.
Cooper’s Brakes, Inc., enters into a contract with Byron’s Service to fix Cooper’s
hydraulic equipment. Byron delays the repair for three days, but is not aware that
Cooper loses a certain percentage of profit each day the equipment is out of service.
Cooper is most likely to be awarded
a. consequential damages.
b. nominal damages.
c. punitive damages.
d. no damages.
Celfone Corporation is required to file a registration statement with the Securities and
Exchange Commission. This statement must contain
a. a copy of prospectuses to be provided to investors.
b. a description of securities being offered for sale.
c. a record of pre-registration sales in securities.
d. a sample of advertising to be used to attract investments in Celfone.
To acquire the ownership of a mountain cabin by adverse possession, Cody must
occupy the cabin exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
b. until the owner files a suit.
c. without the owner’s knowledge.
d. with the state’s permission.
To obtain a contract with the Chinese government, Bammo Engineering Corporation, a
U.S. firm, gives a Chinese official a sport utility vehicle. This may violate
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the Foreign Corrupt Practices Act.
d. the principle of comity.
Skyla and Terry want to form and do business as Unique Boutique Corporation. Its
existence depends generally on
a. city or county corporate codes.
b. the Entrepreneur’s Corporate Handbook.
c. the federal Administrative Procedure Act.
d. state law.
Nika owns land in Ohio. Her ownership rights include the right to sell or give away the
property without restriction, and the right to commit waste, if she chooses.
Refer to Fact Pattern 24-1. Nika conveys some of her land to Reggie with the right to
possess and use the property for a certain period of time. Nika has given Reggie
a. a fee simple absolute.
b. a fixed-term tenancy.
c. a life estate.
d. an easement.
Jim agrees to act on Kit’s behalf, subject to Kit’s control, and Kit trusts Jim to so act.
This describes a relationship between
a. a business and its competitors.
b. a government and its governed.
c. a parent and a child.
d. a principal and an agent.
Susan takes her car to Ken’s repair shop and asks him to fix the car’s brakes. Ken
completes the work and sends Susan a bill for $100. Susan refuses to pay so Ken
refuses to return Susan’s car. Susan can probably successfully sue Ken for
a. battery.
b. conversion.
c. trespass to property.
d. none of the choices.
Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the
ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against
Hua in Indiana. Regarding this suit, Indiana has
a. federal jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.
Wilma, who lives in New York, enters into a contract to buy a painting from Fred, who
lives in France. The contract includes all the costs of insuring and shipping the painting
from France to New York. The agent that made the shipping estimate makes a mistake
when adding up the costs and, as a result, the shipping cost listed in the contract is
$1,000 less than the shipping actually costs. A court will most likely
a. allow the parties to rescind the contract.
b. award damages to Wilma for the mistakes.
c. award damages to Fred for the mistakes.
d. enforce the contract without requiring changes.
Gilbert finds an iPad on the counter at Starbucks. He takes the iPad to the police
station’s lost and found desk. The officer at the desk tells Gilbert that if the iPad is not
claimed in a certain amount of time, Gilbert can obtain title to it. This is an example of
acquiring possession by
a. an estray statute.
b. a bailment.
c. confusion.
d. production.
Odina signs a covenant not to compete with her employer, Penultimate Sales
Corporation. A court decides that the covenant is overly restrictive. The court will likely
a. enforce it as written so as not to undercut the freedom of contract.
b. enforce it but evaluate its effects over time.
c. reform its terms to prevent any undue burden.
d. refuse to enforce it unless Penultimate pays additional consideration.
Martin, a U.S. citizen, feels that a recently enacted federal law is unfair. He assembles a
group of friends and they write a petition to the government. Martin and friends then
stand quietly in front of the White House with signs declaring their belief that the law is
unfair. Under the First Amendment, Martin has a right to
a. petition the government, but not to assemble a group peaceably.
b. assemble peaceably, but not to petition the government.
c. both petition the government and assemble peaceably.
d. neither petition the government nor assemble peaceably.
Julia owns and operates Collectable Dolls without creating a separate business
organization. She receives all the profits from the doll sales. Collectable Dolls is most
likely a
a. a corporation.
b. a limited liability company.
c. a partnership.
d. a sole proprietorship.
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.
A key employee is defined as an employee whose pay falls within the top 10 percent of
the firm’s workforce.
A tenant is responsible for all damage to leased premises.
Each bank in a collection chain must pass a check on before noon of the day of its
receipt.
An employer has no control over an employee’s work.
For an effective bailment, the bailor must deliver title and possession of the bailed
property.
A fanciful use of ordinary words may be trademarked.
A limited liability company can be taxed as a corporation.
Authority declared in clear, direct, definite terms is express authority.
For a tort to be considered intentional, the tortfeasor must have an evil or harmful
motive.
Information that is not or cannot be protected under trademark, patent, or copyright law
may be protected under the law of trade secrets.
A seller’s failure to disclose a serious defect about a product for sale may give rise to an
action for fraud.
Personal defenses are used to avoid payment to an ordinary holder of a negotiable
instrument, but not to an HDC or a holder through an HDC.
A sole proprietorship lacks continuity on the death of the proprietor.
Under a dram shop act, liability can be imposed without proof of negligence.
A restraint of trade is an agreement between firms that has the effect of reducing
competition in the marketplace.
The Environmental Protection lists all hazardous air pollutants (HAPs) on a prioritized
schedule.
Embezzlement can be committed only by physically taking property from the
possession of another.
If a buyer breaches a contract while the seller is still in possession of the goods, the
seller can resell the goods and hold the buyer liable for any loss.