Caramello Chip & Cookie Corporation (4C) obtains, and gives its employees, a list of
the customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade
secrets, 4C’s conduct is actionable provided
a. consumers are confused.
b. 4C’s conduct is intentional.
c. 4C uses the list.
d. 4C does not have 3S’s permission to use the list.
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.
GR8 Stuf Company files a registration statement with the SEC before making an
offering to the general public. The registration contains false, immaterial statements of
which the investors are unaware. GR8 Stuf is charged with violating the Securities Act
of 1933. GR8 Stuf’s best defense is
a. the investors were not aware of the misrepresentations.
b. the issuer reasonably believed the misstatements were true.
c. the offering was made available to the general public.
d. the untrue statements were not material.
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.
Rural Power Utility, Inc., enters into a contract with Shovel Excavation Service to dig
up, replace, and rebury Rural’s cables in a certain location. Rural advances Shovel 10
percent of its cost. The parties rescind the contract. Shovel’s refund of the payment is
a. a penalty.
b. liquidated damages.
c. restitution.
d. a breach of contract.
Orin claims that a Pennsylvania state statute infringes on his “substantive due process”
rights. This claim focuses on
a. procedures used to make decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Orin’s privacy.
Gaye, a minor, signs a contract to buy a motorcycle from Hi-Valu Cycles by
misrepresenting her age as twenty-one. Gaye fails to make the payments. Hi-Valu sues.
Ordinarily, Gaye can
a. not return the motorcycle nor avoid further liability.
b. not return the motorcycle but can avoid further liability.
c. return the motorcycle and avoid further liability.
d. return the motorcycle but cannot avoid further liability.
Cody believes that Delta Corporation has discriminated against him on the basis of
gender. Cody files a suit against Delta under Title VII. To establish a prima facie case of
employment discrimination, Cody must show that
a. Cody is a member of a protected class.
b. Delta has no legal defenses against the claim.
c. discriminatory intent motivated Delta’s act.
d. other firms in Delta’s industry have committed discriminatory acts.
Industrial Solvents, Inc., averages $15,000 profit per day before deciding to ignore air
pollution standards, after which the average is $30,000. Industrial Solvents is subject to
a fine of
a. $0.
b. $15,000 per day.
c. $30,000 per day.
d. $30,000 total.
Jumbo Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the
Jumbo Juice trade name as a member of a select group of dealers that engage in retail
juice sales.
Jumbo Juice makes earnings claims to potential investors. For those claims, the
franchisor must have
a. a hypothetical basis.
b. a reasonable basis.
c. an actual basis.
d. no basis.
An Iowa state statute requires amusement parks to maintain equipment in specific
condition for the protection of patrons. Jack’s Fun Park fails to maintain its equipment.
Keely, a patron, is injured. Jack’s has committed
a. abuse of process.
b. battery.
c. false imprisonment.
d. negligence.
Phillip assigns his rights under a contract with Maria to his college roommate, John.
Neither Phillip nor John notifies Maria of the assignment. The assignment
a. will not be effective until notice is given to Maria.
b. will become effective after thirty days even if no notice is given to Maria.
c. is immediately effective.
d. can be circumvented.
Saf-T Lenders, Inc., takes possession of Tiara’s stock in Urgent Care Corporation to
perfect Saf-T’s security interest in the stock. This is
a. after-acquired property.
b. a pledge.
c. a purchase-money security interest.
d. a violation of most state laws.
To borrow money to finance the start-up of his business, Bob executes an instrument in
favor of City Bank. For the instrument to be negotiable, the signature must be
a. anywhere on the instrument.
b. anywhere on the lower half of the instrument only.
c. in the lower left-hand corner of the instrument only.
d. in the lower right-hand corner of the instrument only.
Sid, a director of Tech Software Company, learns that a Tech engineer has developed a
new, exciting video game. Sid buys Tech stock and tells his friend Uri, who also buys
Tech stock. When the new game is released three weeks later, Sid and Uri sell their
stock for a big profit.
Regarding Sid’s profits on the purchase and sale of Tech stock, under Section 16(b) of
the Securities Exchange Act of 1934 Tech may recapture
a. all of Sid’s profits.
b. half of Sid’s profits.
c. 10 percent of Sid’s profits.
d. none of Sid’s profits.
Garden & Field stores order a specific assortment of rose bulbs from Hybrid Flora
Company. Hybrid mistakenly ships a selection of annuals, which Garden & Field
rejects and returns via Intra-state Transport, Inc. During the return, the annuals are lost.
The loss is suffered by
a. Garden & Field.
b. Hybrid Flora.
c. Intra-state Transport.
d. Garden & Field’s customers by an increase in prices of other goods.
Burt, a mentally impaired person, is asked by Carl to sign a piece of paper that Carl
says is an autograph book. In fact, the document is a note. If later sued on the note by
an HDC
a. Burt must pay the note.
b. Burt’s best defense would be fraud in the execution.
c. Burt’s best defense would be fraud in the inducement.
d. Burt’s best defense would be mistake.
Bridey defends against a suit for breach of contract by Continental Mortgage Company
by claiming that their deala mortgage loan secured by Bridey’s purchase of a housewas
unfair because the consideration for their contract was inadequate.
If, as Bridey claims, the consideration for this contract is inadequate, it may indicate a
lack of
a. market value for Bridey’s house.
b. voluntary consent to the contract on Bridey’s part.
c. appraisal by a third party on behalf of Continental.
d. standards for the granting of credit on Continental’s part.
Katie and Linda enter into a contract for Katie to buy Linda’s house in which there are
several terms that are subject to more than one reasonable interpretation. If Katie and
Linda attach materially different meanings to a term
a. only Katie will be able to void the contract.
b. only Linda will be able to void the contract.
c. neither Katie nor Linda will be able to void the contract.
d. either Katie or Linda will be able to void the contract.
Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams
Motel, including the land, building, furnishings, shares of stock in Suite Dreams
Company, and a contract with Trudy to create an ad campaign. Reba suspects that
Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs
a. the sale of any of the property evidenced by a writing.
b. the entire deal, including the marketer’s services.
c. the sale of the furnishings priced at $500 or more.
d. the sale of the land and the building.
Whirlwind Financial Corporation sends its executives to a resort in Mexicoat taxpayers’
expenseto consider using the firm’s cash to buy back its stock and thereby prop up the
value. Many of its competitors are doing the same thing. One of the best ways to learn
about the ethical responsibilities inherent in operating a business is to look at
a. the mistakes made by other companies.
b. the benefits of pursuing profit despite the appearance of impropriety.
c. the prevalence of a practice among other corporations.
d. who is footing the bill for a particular action.
In the case of Retail Sales Corp. v. Trucking Delivery Co., the court may rule contrary
to a precedent if the court decides that the precedent
a. is incorrect or inapplicable.
b. is not in line with the judge’s personal values.
c. would lead to unintended consequences.
d. would not bring about the result the judge prefers.
Buyers Club is an incorporated cooperative. Like other incorporated cooperatives,
Buyers Club distributes profits to its owners on the basis of
a. the amount of capital they contribute.
b. the degree to which they participate in management.
c. their transactions with the cooperative.
d. the requirements of the state in which it was incorporated.
Paula, a disabled person, applies for a job at Quantity Corporation for which she is well
qualified, but for which she is rejected. Quantity continues to seek applicants and
eventually fills the position with a person who is not disabled. Paula is most likely to
succeed in a suit against Quantity for discrimination under the Americans with
Disabilities Act of 1990 if she can show that
a. she was not hired solely because of her disability.
b. she can function well with corrective devices or on medication.
c. her disability causes her undue hardship.
d. she could not perform the job even with reasonable accommodation.
Hu believes that he is a victim of a form of employment discrimination that falls under
Title VII of the Civil Rights Act. Compliance with this statute is monitored by
a. employees and job applicants, not an administrative agency.
b. employers and businesses, not an administrative agency.
c. the courts and Congress, not an administrative agency.
d. the Equal Employment Opportunity Commission.
Jen agrees to buy Kev’s Dirt Bike business on the express condition that Valley Credit
Union approves the financing. This approval is
a. a concurrent condition.
b. a condition precedent.
c. a condition subsequent.
d. an implied condition.
Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality
requires Robin, Petro’s president, sign a personal guaranty to pay the debt if Petro
defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro
asks its outside accountant Tina to co-sign a credit application.
If Robin is a guarantor, then the guaranty is required to be in writing because of
a. the debtor’s right of redemption.
b. the co-signer’s right of contribution.
c. the creditor’s transfer of possession.
d. the Statute of Frauds.
Inadvertently, Brent leaves his backpack at Chat n” Coffee when he stops for coffee and
an hour of Facebook. The backpack is
a. abandoned property.
b. bailed property.
c. lost property.
d. mislaid property.
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.
General Leasing Company (GLC) buys equipment for use as inventory, borrowing $1
million from Helpful Finance Corporation for a security interest in the equipment. The
next day, GLC borrows $500,000 from Interstate Bank, also for a security interest in the
equipment. GLC defaults on the loans.
Suppose that two weeks after GLC takes possession of the equipment, Helpful and
Interstate file financing statements, with Interstate filing first. In that circumstance, the
party with priority to the equipment is
a. GLC.
b. Helpful and Interstate proportionately.
c. Helpful only.
d. Interstate only.
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 Joan’s arm.
c. only if Ike had a bad motive for pushing Joan.
d. only if Ike intended to break Joan’s arm.
Stormclouds Inc. makes and markets its U.S. patented Tempest Tablet in the United
States. Squalls Ltd., a Chinese firm, begins making and marketing the same product in
China as Outburst Pad without Stormclouds’s permission. Squalls is
a. not guilty of patent infringement.
b. guilty of patent infringement.
c. guilty of trademark infringement.
d. in violation of the America Invents Act.
Liu enters Mountain Triathlon, an athletic competition in which Liu has never
competed. Regarding the risk of injury, Liu assumes the risks
a. attributable to the triathlon in any way.
b. different from the risks normally associated with the triathlon.
c. greater than the risks normally associated with the triathlon.
d. normally associated with the triathlon.
The period for persons to comment on a proposed administrative rule must be at least
thirty days.
When a party’s performance is perfect, it is said to be complete.
A record is an interaction between two or more people relating to business, commercial,
or governmental activities.
A contract must be in writing to be enforceable if the contract makes performance
possible within any definite period of time.
If a contractor’s bid contains a mistake in addition when totaling the estimated costs, the
contract may not be enforceable.
Delivery of intangible personal property is never accomplished by constructive
delivery.
An instrument “payable to bearer” is negotiated by delivery.
Willful violations of the Sarbanes-Oxley Act of 2002 may be subject to harsh penalties.
Willful violations of the Securities Act of 1933 may be subject to civil liability, but not
criminal prosecution.
A qualified opinion must be specific and identify the reason for the qualification.
Performance standards for major sources of air pollution require the use of the any
available technology, or AAT.
A bank cannot recover from a party who cashes a check bearing a forged drawer’s
signature once the bank has accepted and paid the item.
Employees are entitled to overtime pay only at their employer’s discretion.
State employers are not immune from private suits brought by employees under the
Americans with Disabilities Act of 1990.
In a joint venture, the parent company in the United States retains complete ownership
and authority over all phases of the operation.
Professionals are obligated to adhere to standards of performance generally accepted
within their profession.
A lien is an encumbrance on a property to satisfy or protect a claim for payment of a
debt.
Only federal law governs drug tests of private-sector employees.