Inferior Company, which is based on South Carolina, makes and sells products that are
poorly made. Jack, who is a resident of North Carolina, buys an Inferior product and
suffers an injury through its use. The diversity of citizenship between these parties
means that
a. federal and state courts have concurrent jurisdiction.
b. federal courts have exclusive jurisdiction.
c. no court has jurisdiction.
d. state courts have exclusive jurisdiction.
Harvey, a resident of Indiana, has an accident with Janette, a resident of Kentucky,
while driving through that state. Janette files a suit against Harvey in Kentucky.
Regarding Harvey, Kentucky has
a. diversity jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.
Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink
under the name “CoCoCafe.” Darkroast Java, Inc., later markets a similar tasting drink
under the name “KoKoKafe.” This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
Plato works for Quirky Squirters, Inc. During work hours, Plato ‘steals” his employer’s
computer time to start up his own business, Rowdy Drenchers. This is
a. burglary.
b. robbery.
c. larceny.
d. no crime.
Standard Business Company appeals a decision against it, in favor of Fast Delivery
Corporation, from a lower court to a higher court. Standard is
a. the appellant.
b. the appellee.
c. the defendant.
d. the plaintiff.
Cory employs Daily Delivery Agency as an agent under a written agreement that
describes the rights and duties of both parties. This is
a. apparent authority.
b. equal authority.
c. express authority.
d. implied authority.
Cole drives into Dino’s Service Station and asks Erin, the attendant, to fill the tank in
Cole’s sport utility vehicle. After Erin fills the tank, but before Cole pays for the gas,
any contract between Cole and Dino’s is
a. executed.
b. executory.
c. quasi.
d. unenforceable.
On behalf of Bay Oyster Company, Celia types her name at the bottom of an e-mail
purchase order and submits the order to Deepwater Parts Company. Under the UETA,
Celia’s typed name qualifies as
a. her ‘signature.”
b. a cybernotary.
c. a partnering agreement.
d. nothing.
McCall and Teresa enter into a contract for the distribution of McCall’s produce to local
restaurants for which Teresa agrees to pay. McCall transfers his right to payment under
the contract to Midtown Bank. This transfer is
a. a delegation.
b. an assignment.
c. a novation.
d. prohibited by law.
Ideal Gadgets, Inc., and Jolly Outlets Corporation enter into a contract for a sale of
kitchenware. The contract requires Ideal to deliver the goods to Ladle Carrier Company
for transport to Jolly’s warehouse in Metro City. Risk of loss passes to Jolly when
a. Ideal delivers the goods to Ladle.
b. Ideal identifies the goods to the contract.
c. Ladle transports the goods to Jolly’s warehouse.
d. the goods arrive in Metro City.
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.
Fits Like A Glove Shoes, Inc., and Retail Footwear Stores enter into a contract for a sale
of shoes. The contract indicates that the price includes transportation costs to a specific
destination by including the term
a. C.I.F.
b. delivery ex-ship.
c. F.A.S.
d. F.O.B.
Nina and Owen enter into an oral contract for Nina’s sale to Owen of a laser printer for
$400. Before Owen takes possession of the printer, the contract is enforceable by
a. either party.
b. Nina only.
c. neither party.
d. Owen only.
Congress enacts the Supplemental Income Tax Act (SITA) to exempt the citizens of
Louisiana from their federal taxes until New Orleans is rebuilt from the ravages of
Hurricane Katrina. SITA will most likely be
a. rendered invalid under the supremacy clause.
b. rendered valid the equal protection clause.
c. struck down under the taxing and spending clause.
d. upheld under the commerce clause.
Flip is a member of Great States Trucking LLC. Flip’s relationship to Great States ends,
but the firm continues to do business. This is
a. dissociation.
b. dissolution.
c. winding up.
d. wrongful.
Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline
to withstand specific conditions. If QuikBilt fails to meet this standard, which is
construed as a breach of contract and a breach of a duty of care, Pure might be awarded
punitive damages to
a. establish, as a matter of principle, that QuikBilt acted wrongfully.
b. provide Pure with funds for a foreseeable loss beyond the contract.
c. provide Pure with funds for its loss of the bargain.
d. punish QuikBilt and deter others from similar acts.
Consumer Goods, Inc., and Delta Distribution, Inc., sign a written contract for a sale of
goods. To be enforceable, this written contract must include
a. a correct title, such as “Purchase Order” or “Sales Invoice.”
b. a declaration of the subject matter.
c. a quantity term.
d. the parties’ names.
On behalf of Premier Shipbuilding Corporation (PSC), Rita orders 1,000 cases of
1/4-inch nuts from Steel Parts Company’s 10,000-case lot. Steel Parts separates 1,000
cases from the lot. Title and risk of loss
a. remain with Steel Parts until PSC acknowledges tender of delivery.
b. remain with Steel Parts until PSC accepts 1,000 cases.
c. shift to PSC after it accepts the nuts and inspects them for defects.
d. shift to PSC when Steel Parts separates the cases.
Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide
Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches
the contract, Fashion has a duty to
a. reduce the damages that Fashion might otherwise suffer.
b. reduce the loss that Great Promotions might otherwise suffer.
c. punish Great Promotions and deter others from similar acts.
d. take no action.
Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport’s
products, via e-records. Under the UETA, an e-record is considered sent when it
a. is signed and encrypted, and will be sent without changes.
b. is stored in the sender’s back-up system.
c. is composed on the sender’s computer.
d. leaves the sender’s control.
Mikayla enters into a contract with Logan to provide surface material for Mikayla’s
tennis courts by April 1 for a tournament to begin May 1. The contract specifies an
amount to be paid if the contract is breached. This is a liquidated damages clause if the
amount is
a. an excessive estimate of the loss on a breach.
b. a reasonable estimate of the loss on a breach.
c. designed to penalize the breaching party.
d. intended to quickly provide cash to the nonbreaching party.
Applied Business Corporation makes and markets its products nationwide. Under the
stakeholder approach, to be considered socially responsible when making a business
decision, Applied must take into account the needs of
a. its consumers, the community, and society only.
b. its employees and owners only.
c. its employees, owners, consumers, the community, and society.
d. no one.
Tami’s Tasty Tacos, a mobile vendor, files a suit against the state of Utah, claiming that
a Utah state law violates the commerce clause. The court will agree if the statute
imposes a substantial burden on
a. a local government.
b. interstate commerce.
c. noneconomic activity.
d. the state.
Vince files a suit against Will. Vince and Will meet, and each party’s attorney argues the
party’s case before a judge and jury. The jury presents an advisory verdict, after which
the judge meets with the parties to encourage them to settle their dispute. This is
a. court-ordered arbitration.
b. early neutral case evaluation.
c. a mini-trial.
d. a summary jury trial.
Chelsea, an agent for Bountiful Seafood, Inc., has often done business with Alvin’s
Dockside Diner on Bountiful’s behalf. When Chelsea and Bountiful terminate their
agency, to avoid liability for later deals, Alvin’s must be notified by
a. Chelsea and Bountiful.
b. Chelsea only.
c. Bountiful only.
d. no one.
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.
Minnesota enacts a statute to ban advertising in “bad taste.” This statute would likely be
held by a court to be
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect state interests.
May is a stockbroker. Due to May’s statements, Nora believes that the price of OK
Goods, Inc. (OKGI), a widely traded stock, is going to increase substantially. Nora buys
500 shares of OKGI at $10 per share, but the price soon drops to $2. Nora can
successfully recover
a. nothing.
b. the amount of the purchase price.
c. the amount of the purchase price plus the expected increase.
d. the amount of the purchase price plus the unexpected decrease.
Mona offers Ned, a building inspector, money to overlook the violations in her new
warehouse. Ned accepts the money and overlooks the violations. Mona is charged with
the crime of bribery. The crime occurred when
a. Mona decided to offer the bribe.
b. Mona offered the bribe.
c. Ned accepted the bribe.
d. Ned overlooked the violations.
Ruben is a shareholder of Speed Bikes Company (SBC). When the directors fail to
undertake an action to redress a wrong suffered by SBC, Ruben files a suit on the firm’s
behalf. Any damages recovered by Ruben’s suit will normally go to
a. Ruben.
b. SBC.
c. SBC’s directors.
d. the state in which SBC is incorporated.
Elle is an agent for Fine Cosmetics, Inc. Elle owes Fine Cosmetics the duty of
a. avoidance.
b. compensation.
c. indemnification.
d. performance.
Rural 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. If the parties rescind the contract, Shovel’s refund of the payment
would be
a. a penalty.
b. liquidated damages.
c. restitution.
d. specific performance.
Contracting parties cannot opt out of the terms of the UETA.
A principal whose identity is not known by a third party with whom an agent contracts
on the principal’s behalf is an apparent principal.
U.S. district courts have original jurisdiction in matters involving federal questions.
Restricting the bonuses that are paid to executives is unethical.
An acceptance subject to new conditions implicitly rejects the offer.
A contract can prevent the assignment of the right to receive funds.
A law that regulates economic matters violates the equal protection clause.
Under the U.S. Constitution, each branch of government limits some actions of the
other branches.
The UETA covers only e-records and e-signatures relating to a transaction.
Oral evidence of the meaning of a contract with incomplete terms can be introduced at a
trial.
An act that causes indignity is sufficient to recover for the infliction of emotional
distress.
All rights can be assigned.
If the parties to a sales contract state that a certain remedy is exclusive, then it is the
sole remedy.
A misdemeanor is a crime punishable only by a fine.
In a lawsuit between Digital Hardware Corporation and Software Engineering
Associates, Inc., the court applies the doctrine of stare decisis. What is this doctrine?
What does this doctrine have to do with the American legal system?
A sole proprietor owns the entire business but does not receive all of the profit.
In most states, one individual cannot be both an officer and a director.
Blizzard Entertainment, Inc., one of the owners of the World of Warcraft (WoW)
computer game, is involved in a lawsuit with MDY Industries, LLC, the owner of
Glider, a software program that plays WoW for its players while they are away from
their keyboards. Blizzard asks the court to direct MDY to stop selling and distributing
Glider. The court’s opinion in the case is at MDY Industries, LLC v. Blizzard
Entertainment, Inc., 616 F.Supp.2d 958 (D.Ariz. 2010). What is the name for the
remedy that Blizzard is seeking? What type of remedy is it? What court decided this
case? Specifically where can the court’s opinion be found?
Plain language laws regulate some types of contracts to require “legalese.”
If a contract condition is not satisfied, the obligations of the contracting parties are
discharged.