Brad defends against a breach-of-contract suit by College Credit Corporation by
claiming that their deala student loan accruing interest at a certain rate and payable
beginning on a certain datewas unfair because the consideration for their contract was
inadequate.
“Adequacy” of consideration refers to
a. “how much” consideration is given.
b. legally sufficient value in the eyes of the law.
c. the intangible value to a contracting party of a thing exchanged.
d. the substantiality of the consideration exchanged.
The state of New York regulates private activities to protect or promote the public order,
health, safety, and general welfare under its
a. police powers.
b. taxing powers.
c. spending powers.
d. supremacy powers.
Super Toolmakers, Inc., contracts to sell its business to True Hardware Corporation.
Before either party has performed, rescission of this contract requires
a. a mutual agreement to rescind.
b. consideration.
c. performance by all of the parties.
d. an accord and satisfaction.
Lacey files a suit in Michigan against Ned over the ownership of a boat docked in a
Michigan harbor. Lacey and Ned are residents of Ohio. Ned could ask for a change of
venue on the ground that Ohio
a. has a sufficient stake in the matter.
b. has jurisdiction.
c. has sufficient minimum contacts with the parties.
d. is a more convenient location to hold the trial.
Frank and AgriShip, Inc., enter into a contract for AgriShip to transport a silo of
soybeans for which Frank agrees to pay. When AgriShip’s schedule conflicts, the firm
contacts Hybrid Transport Company, to which AgriShip “assigns all rights under the
contract.” This transfer is
a. an assignment and a delegation.
b. an assignment only.
c. a delegation only.
d. neither an assignment nor a delegation.
Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the
state’s maximum. First State has
a. calculated the optimum rate that the market will bear.
b engaged in a restraint of trade.
c. underestimated the risk of the loan’s nonpayment.
d. violated the usury laws.
Gelato Ice, Inc., is incorporated in the state of New Jersey and is doing business in the
state of New York. In New York, Gelato is properly referred to as
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a de jure corporation.
In a suit against Evan, Floyd obtains an injunction. This is
a. an order to do or to refrain from doing a particular act.
b. an order to perform what was promised.
c. a payment of money or property as compensation.
d. the cancellation of a contract.
Fabulous Auto Sales, Inc., employs GR8 Collection Company as a collection agent.
While repossessing a car from Hadji, one of Fabulous’s customers, GR8 causes an
accident in which Hadji is injured. Hadji can recover from
a. Fabulous only.
b. Fabulous or GR8.
c. GR8 only.
d. Hadji’s insurance company only.
E-Shopping Corporation inserts Fiesta Mall, Inc.’s trademark as a meta tag in
E-Shopping’s Web site’s key-words field without Fiesta’s permission in a manner that
suggests Fiesta authorized the use. This is
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
At Parkside Bistro, Ogden believes that he was overcharged and shoves Nellie, the
waiter. Nellie sues Ogden, alleging that the shove was a battery. Ogden is liable
a. if Parkside did not overcharge Ogden.
b. if the shove was offensive.
c. if Ogden acted out of malice.
d. under no circumstancesthe shove was not a battery.
On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a
variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than
half done with the work, Neil says that he has changed his mind. Under the present-day
view, these parties had
a. an expired contract when Neil said that he had changed his mind.
b. a quasi contract when Neil said that he would pay for certain work.
c. a unilateral contract as soon as Outdoor began to perform.
d. no contract.
Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the
company knows drives longer hours than federal regulations permit. One night, Garn
exceeds the limit and has an accident. Spilled chemicals contaminate Hill City’s water
source, forcing the residents to move away. Flexo acted unethically because
a. Flexo showed reckless disregard for Hill City’s residents and others.
b. Garn exceeded the federal time limit.
c. harm was caused by an unfortunate accident.
d. Hill City should have better protected its water source.
Taylor slips and falls in Urban Mall and is injured. She files a suit against the mall for
$500,000. Under a “pure” comparative negligence rule, Taylor could recover damages
a. only if both parties were equally at fault.
b. only if Taylor was less than 50 percent at fault.
c. only if Taylor was more than 51 percent at fault.
d. under any circumstances.
Jill introduces Kelly to her friends as “my associate.” Kelly purports to act as Jill’s agent
in several business transactions with those friends. If Jill is liable for Kelly’s actions, it
will be under
a. the doctrine of estoppel.
b. the equal dignity rule.
c. the fiduciary principle.
d. the good faith statute.
Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson’s farm
acreage for four corn-planting seasons. After Jaime prepares the land and plants the first
crop, Karson says that their deal is off. Jaime can most likely recover
a. in quasi contract.
b. in reformation.
c. in restitution.
d. on the parties’ existing contract.
The Texas Supreme Court decides the case of Livewire Entertainment Co. v. Power
Play Corp. Of nine justices, six believe the judgment should be in Livewire’s favor.
Justice Bellamy, one of the six, writes a separate opinion. The four justices who believe
the judgment should be in Power’s favor join in a third separate opinion.
The opinion joined by the four justices who favor Power is known as
a. a concurring opinion.
b. a dissenting opinion.
c. a majority opinion.
d. a per curiam opinion.
Drake pushes Evon into the path of an oncoming car driven by Flip. Gina tries to rescue
Evon, but the car hits both of them. Drake is liable for the injuries of
a. Evon and Gina.
b. Evon only.
c. Gina only.
d. neither Evon nor Gina.
The state legislature of Kansas enacts a statute to regulate trucking that affects interstate
commerce. This statute will be balanced in part in terms of
a. the courts’ authority to determine that a law is unconstitutional.
b. the purpose of interstate commerce.
c. the state’s interest in regulating the matter.
d. the statute’s impact on noneconomic activity.
Omega, Inc., sells business application softwareaccounting and bookkeeping programs,
blank business forms, inventory control functions, and so onin different combinations,
in different packages, at different prices. Each package includes a shrink-wrap
agreement that limits warranties and remedies. Precision Engineering Associates (PEA)
buys an Omega package and uses the product. Later, PEA files a suit against Omega,
claiming that the software is flawed and that the flaws caused PEA to suffer business
losses. PEA asks for relief that exceeds the limits in the shrink-wrap agreement. What
are shrink-wrap agreements? Are these agreements always enforced? Under what
circumstances is a court likely to enforce this agreement?
Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it
accepts before 10 a.m. Monday. A contract is formed if Shopping Stores’ acceptance is
received
a. any time on Monday.
b. before 10 a.m. Monday.
c. before 11 a.m. Monday.
d. within twenty-four hours of 10 a.m. Monday.
Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a
certain destination for $5,000. Cross-Country delivers the crates, but Baldwin does not
pay. Cross-Country learns that the crates contained stolen goods. Cross-Country can
a. do nothing with respect to the contract.
b. recover $5,000 from Baldwin.
c. recover the goods but not the $5,000 from Baldwin.
d. recover the goods or the $5,000 from Baldwin.
Smitty, driving while intoxicated, causes a car accident that results in the death of
Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by
death or imprisonment for
a. any period of time.
b. more than one year.
c. more than six months.
d. more than ten days.
U-Can-Own-It Corporation sells appliances to less educated consumers, including Vi,
on installment plans. U-Can-Own-It files a suit against Vi when she stops making
payments. Vi claims that the deal is unconscionable. The court will most likely consider
a. the geographic area of the relevant market.
b. the parties’ relative bargaining power.
c. the quality of related products in the general market.
d. the relation of this deal to those of other customers.
To avoid liability for intentional injuries, Vermont Power Corporation includes in its
contracts an exculpatory clause. This is
a. enforceable if the other parties are protected from liability.
b. enforceable if the other parties consent to it.
c. enforceable if the other parties have equal bargaining power.
d. not enforceable.
Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000
from Mining Supplies Company. Lava tells Mining that it must receive the drill by
Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover
a. $13,000.
b. $10,000.
c. $3,000.
d. $0.
Home Development Company employs llya to buy property for a future residential
development. Ilya secretly buys some of the property and sells it to Home Development
at a profit. Ilya has breached
a. no duty.
b. the duty of accounting.
c. the duty of loyalty.
d. the duty of notification.
Mountaintop Clearview Corporation authorizes Niles, its employee, to oversee its
timber operation. In the course of his employment, Niles disposes of the operation’s
waste illegally. Orson is a Mountaintop shareholder. Liability for this crime most likely
rests with Orson to
a. no extent.
b. the proportionate extent of the number of shares Orson owns.
c. the amount of Orson’s investment in the firm.
d. the full extent.
Mica buys “Nature,” a movie, through Open View, an online entertainment vendor.
Before completing the purchase and downloading “Nature,” Mica is asked to review a
warning not to make and sell a copy of it but is not required to click “I agree.” This
warning is
a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.
Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy
agrees to support as long as Xavier maintains his business license. Yummy’s duty to
perform is
a. absolute.
b. conditional.
c. licentious.
d. operational.
The duty owed under the mitigation of damages doctrine depends on the situation.
A sale of “things attached” to realty is always considered a sale of goods.
Directors are entitled to use confidential corporate information for their personal
advantage.
If a seller is a merchant, and the seller holds the goods, the risk of loss passes to a buyer
when the buyer takes physical possession of the goods.
A reference to “28 U.S.C. Section 1332” means that a statute can be found in section
1332 of title 28 of the United States Code.
A contract entered into under duress is voidable.
The law establishes limits to liability for negligence through the concept of proximate
cause.
If a price quotation contains a mistake in the adding of a number of figures, the contract
may not be enforceable.
Copyright protection is automaticregistration is not required.
Tank is a director and the majority shareholder of Unique New Investment Corporation
(UNIC). Tank buys, for $1,500, an option to purchase a tract of real estate for $50,000.
Tank forms Vista Property, Inc., to hold the option. As the majority shareholder, and
thus controlling director, of UNIC, Tank orders the firm to authorize the purchase of the
land from Vista Property for $500,000. Tank then has Vista Property buy the land, sell it
to UNIC, and loan the money to UNIC for the purchase at a 10 percent interest rate.
Wim, a minority shareholder in UNIC, complains to UNIC’s board, which takes no
action. Wim files a suit against Tank on UNIC’s behalf. Will Wim prevail? Explain.
A minor’s right to disaffirm a contract terminates sixty days after the contract’s date.
State agency regulations take precedence over conflicting federal agency regulations.
A hacker is someone who uses one computer to break into another.
An ordinary person standard determines whether allegedly negligent conduct resulted in
a breach of a duty of care.
The rules governing firm offers apply to all merchants.
Corporations can be perceived as owing ethical duties to groups other than their
shareholders.