A maker of an instrument that is payable at a definite time does not have the option of
paying before the stated date.
a. True
b. False
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. True
b. False
Under the principle of comity, all foreign governments are subject to all U.S. laws.
a. True
b. False
Motor Coach Corporation, a U.S. firm, orally agrees to sell six vehicles to National
Tours, Ltd., a Canadian firm. Motor Coach fails to deliver and National Tours sues to
enforce the agreement. Under the CISG, National Tourscan prove the terms by
a. any means.
b. a writing or electronic record only.
c. witnesses only.
d. a writing, electronic record, or witnesses, but no other means.
An accountant can avoid liability by proving that his or her negligence was only the
proximate cause of the cli-ents loss.
a. True
b. False
Chloe files a suit against Digital Associates, Inc. (DAI), to enforce a con-tract. The only
written evidence of the contract is a memo on DAIs let-terhead as signed by a DAI
officer in its files. The con-tract can be en-forced if the memo includes
a. a correct title, such as “Chloe-DAI Contract.
b. all essential terms.
c. a statement of the consideration.
d. the parties addresses.
A partnership cannot be a shareholder in an S corporation.
a. True
b. False
General descriptions take precedence over inconsistent samples.
a. True
b. False
The employee union at Top Tech Toys decides to go on strike. Their strike will be legal
if
a. the strikers form a picket line.
b. the strikers form a massed barrier and deny management and nonunion workers
access to Top Tech Toys plant
c. the strikers stay in Top Tech Toys plant without working.
d. the strikers violently attack management.
A promise that an employer makes in an employee handbook regarding discharge will
not be considered part of an implied contract.
a. True
b. False
Rhett works at Scarletts Sandwich Café. After work, in the parking lot, Rhett finds a
diamond ring lost by Thalia. Title to the ring is possessed by
a. Rhett.
b. Scarletts
c. Thalia.
d. the state
The primary goal of the North American Free Trade Agreement is to eliminate tariffs
among the United States, Canada, and Mexico.
a. True
b. False
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
A person must have contractual capacity to be an agent.
a. True
b. False
Forbearance is the act of refraining from doing something that one has a legal right to
do.
a. True
b. False
A coinsurance clause provides that two or more people will be covered by the same life
insurance policy.
a. True
b. False
Barbara is selling her car. She knows that the brakes do not work. When a potential
buyer asks Barbara if there are any problems with the car, Barbara assures the buyer
that there are no problems. The buyer purchases the car based on the assurance that
there is nothing wrong with it. Barbara may be liable to the buyer for
a. assault.
b. defamation.
c. fraudulent misrepresentation.
d. invasion of privacy.
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.
A liquidated damages provision specifies that a certain amount to be paid in the event of
a future default or breach of contract.
a. True
b. False
A business firm may have to comply with the laws of any jurisdiction in which it
actively targets customers.
a. True
b. False
In a limited partnership, a general partners dissociation from the firm may lead to
dissolution.
a. True
b. False
A state court can exercise jurisdiction over an out-of-state defendant who does business
in the state only over the Internet.
a. True
b. False
Manuel is walking past Thomass house when he hears a smoke alarm going off. He also
hears a child calling for help and sees smoke coming from a window. Manuel rushes
into Thomass house, finds the child and brings it outside. If Thomas sues Manuel for
trespass to land, Manuels defense will probably be
a. assisting someone in danger.
b. consent.
c. self-defense.
d. the reasonable person defense.
State law may mandate that an incontestability clause be included in an insur-ance
policy.
a. True
b. False
Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret.
The contract must be in writing if the pecans cost
a. $100.
b. $150.
c. $250.
d. $500.
Start-Up Corporation substantially complies with all conditions prece-dent to
incorpo-ration. Start-Up has
a. a corporation by estoppel.
b. a de facto corporation.
c. a de jure corporation.
d. ultra vires.
For a tort to be considered intentional, the tortfeasor must have an evil or harmful
motive.
a. True
b. False
Metallic Metals, Inc., a U.S. firm, files a suit against a Venezuela government agency.
The agency has committed a tort in the United States. Under the Foreign Sovereign
Immunities Act
a. the Venezuelan government agency is not immune from the jurisdiction of the U.S.
courts.
b. the Venezuelan government agency is immune from the jurisdiction of the U.S.
courts.
c. Metallic Metals cannot bring a suit against the Venezuelan agency.
d. Metallic Metals must file suit in Venezuela.
An employee who is fired outside of the terms of an implied employment contract may
succeed in an action for breach of contract.
a. True
b. False
James buys a copy of the book Downpour. Later, after reading the book, James sells it
to his sister. Under the first sale doctrine, Jamess sale of the book is
a. legal.
b. legal only if the copyright has expired.
c. legal only if he sells it for less than he paid for it.
d. illegal.