The operations of Commercial Concrete, Inc., are major sources of air polluÂtion.
These operations must use
a. the absolutely cleanest air technology.
b. the best available filter technology.
c. the maximum achievable control technology.
d. the most affordable scrubbing technology.
Answer:
Paige applies to work for Quibbling & Company. Reece applies for admittance to State
University. As part of their applications, Paige and Reece are asked to divulge their
social media passwords. Legislation that protects individuals from having to disclose
their social media passwords has been enacted in
a. no states.
b. most states but not by the federal government.
c. all states and by the federal government.
d. four states.
Answer:
A clause in a contract between Tall Timber Corporation, a U.S. firm, and Wang Woods,
Ltd., a Japanese firm, specifies that disputes over the conÂtract will be adjudicated in
the United States. This is
a. a domestic-dispute clause.
b. a forum-selection clause.
c. an adjudication clause.
d. an arbitration clause.
Answer:
Technicians Union represents the workers of Unix Toys. A strike by the union will be
legal if the strikers
a. form a picket line.
b. form a massed barrier and deny management and nonunion workers access to Unix
Toys’s plant.
c. stay in Unix Toys’s plant without working.
d. all of the choices.
Answer:
Luke is playing a video game on a defective disk that melts in his game player, starting
a fire that injures his hands. Luke files a suit against Mystic Maze, Inc., the game’s
maker under the doctrine off strict liability. A significant appliÂcation of this doctrine is
in the area of
a. cyber torts.
b. intentional torts.
c. product liability.
d. unintentional torts.
Answer:
Region Construction Company has a right to drive its trucks across Staple Business,
Inc.’s property, which is adjacent to Region’s office. This right is
a. a license.
b. an easement.
c. a profit.
d. the power of eminent domain.
Answer:
OntheWeb Company is an Internet service provider. OntheWeb’s customer Phoebe
commits copyright infringement. OntheWeb is not liable for Phoebe’s activity
a. unless OntheWeb is aware of Phoebe’s violation.
b. unless OntheWeb is not aware of Phoebe’s violation.
c. unless OntheWeb shuts down Phoebe after learning of the violation.
d. under any circumstances.
Answer:
Kelly transfers shares of stock that she owns in Lone Starz Company to Max. A
shareholders’ meeting takes place before Max’s ownership is entered in Lone Starz’s
stock book. A vote at the meeting can be cast by
a. Kelly and Max.
b. Kelly only.
c. Max only.
d. neither Kelly nor Max.
Answer:
Fact Pattern 22-1
Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC).
Refer to Fact Pattern 22-1. To succeed with an age-discrimination claim against
MVMC, Lomax will have to show that
a. Kyla is not qualified for Lomax’s job.
b. Lomax is qualified for his job.
c. MVMC’s qualifications for Lomax’s job are too high.
d. no one could do Lomax’s job as well as he could.
Answer:
Luke and Maya form Northwest Air Express, a general partnership. The essential
elements of this partnership do not include
a. a sharing of profits and losses.
b. a joint ownership of the business.
c. an equal right to management in the business.
d. goodwill.
Answer:
BioChemical Disposal Corporation operates a hazardous waste storage facility.
ChemCo Inc. buys BioChemical before it is discovered that the firm’s disposal practices
violated CERCLA. With respect to these violations, Superfund imposes on ChemCo
a. strict liability.
b. liability under the nuisance doctrine.
c. liability on a negligence theory.
d. no liability.
Answer:
Armando is a witness in a controÂversy involving the U.S. Bureau of Tobacco and
Firearms. Armando can be compelled to appear before an adminisÂtrative law judge if
he is served with
a. an order for specific performance.
b. an executive order.
c. a subpoena.
d. a search warrant.
Answer:
Data & Data Accountants, a private employer, handles bookkeeping for small
employers. In most circumstances, with exceptions, federal law clearly proÂhibits Data
& Data from subjecting its employees to
a. job-skills tests.
b. monitoring of business communications.
c. drug tests.
d. lie-detector tests.
Answer:
Metro Facilities, Inc., contracts to sell a parking garage to Nouveau Property Company.
The contract proÂvides that if Metro does not close the deal by September 15, it must
pay Nouveau one-half of the contract price. This provision is not enforceable because it
is
a. a liquidated damages clause.
b. a waiver of breach clause.
c. a limitation-of-liability clause.
d. a penalty clause.
Answer:
Laird is an employee of Motor Parts, an auto parts store. On the orders of his employer,
he switches trademarks on parts that come into the store to be sold to consumers. This is
most likely
a. forgery.
b. larceny.
c. robbery.
d. obtaining goods by false pretenses.
Answer:
Transcontinental Tours, a U.S. firm, and Victoria Hotels, Ltd., a Canadian firm, enter
into a contract that does not have a forum-selection or choice-of-law clause. Litigation
between Transcontinental and Victoria over a dispute involving this contract may occur
in
a. Canada only.
b. Canada or the United States, but not both.
c. Canada, the United States, or both.
d. the United States only.
Answer:
iSharp, Inc., and Jenene, the owner of a Kitchen Time shop, orally agree to a sale of
knives and other utensils for $12,000. Jenene gives iSharp a check for $4,000 as a
partial payment. This contract is
a. enforceable to the extent of $4,000.
b. fully enforceable because it is for specially selected goods.
c. fully enforceable because it is oral.
d. not enforceable.
Answer:
A court awards a judgment to Loan Collection Agency, who is the creditor, against
Margret, who is the debtor. After the judgment, the creditor requests a court order to
seize Margret’s property to ensure that the judgment will be collectible. This is
a. a judicial lien.
b. a writ of attachment.
c. a writ of execution.
d. a violation of most state laws.
Answer:
ClearCall Corporation makes phones, which are sold to consumers by DefDeals stores.
Erna files a product liabilÂity suit against ClearCall, alleging a design defect. In
deciding whether to hold ClearCall liable, the court may consider
a. Erna’s intended use for the phone.
b. DefDeals’ method of accounting.
c. ClearCall’s quality control efforts.
d. an available alternative design.
Answer:
Sable and Rex agree while talking on the phone to form a partnerÂship’”The Home
Source’”to deal in transfers of real property. To be enforceable, their agreement must
a. be filed in the appropriate state office.
b. be in writing.
c. involve the exchange of valid consideration.
d. not involve a third party.
Answer:
Fact Pattern 15-1
Great Looks Clothing Corporation sends daily e-mail ads to its previous customers and
those who have opted to receive the notices. Hot Trends Inc. sends e-mail ads to any
e-mail address that Hot Trends can find on the Web or otherwise generate. Ilene sends
e-mail notes to her friends, relatives, and co-workers, discussing personal issues and
recommending products or services that she likes.
Refer to Fact Pattern 15-1. Great Looks and Hot Trends are subject to the laws of the
states in which they are located and do business. Many states
a. prohibit false and deceptive e-mailing practices.
b. require the use of spam by business entities.
c. ban the use of spam altogether.
d. preempt the application of federal law to commercial e-mail.
Answer:
Signe offers to sell Thomas her textbook but conditions the sale on Thomas acÂcepting
the offer by March 1. Signe may revoke the offer
a. before Thomas accepts the offer.
b. before March 1, whether or not Thomas has accepted the offer.
c. only after Thomas accepts the offer.
d. only after March 1.
Answer:
Fact Pattern 15-2
CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register
‘calltalk’ as its second-level domain. Later, CallTalk’s less successful competitor,
CellTalk Company, chooses to use and register ‘caltalk’ (an intentional misspelling of
‘calltalk’) as its second-level domain. Still later, Call&Talk, Inc., uses the domain name
‘callltalk’ (also a deliberate misspelling of ‘calltalk’) without CallTalk’s authorization, to
sell pornographic phone conversations.Refer to Fact Pattern 15-2. CallTalk wants to sue
Call&Talk for its unauthorized use of the domain name ‘callltalk.’ Before bringing the
suit, CallTalk has to ask the court for a subpoena to discover
a. the true identity of the owner of the unauthorized site.
b. the amount of the profits of the unauthorized site.
c. the estimated costs of the court proceedings and discovery.
d. all of the registered variations of the name ‘calltalk.’
Answer:
Medi-Insurance Company faxes ads to Nancy and other individual consumers without
the recipients’ permission. This is subject to
a. a cease-and-desist order by the Federal Trade Commission.
b. no sanctions.
c. possible fines by the Federal Communications Commission.
d. rescission on the order of the Federal Reserve Board.
Answer:
The franchise agreement is not likely to set out standards such as sales quotas and
record-keeping requirements.
Answer:
Limits on a partner’s authority normally are effective only with respect to third parties
who are notified of the limitation.
Answer:
Given today’s global communications network, most companies can assume that their
actions in other nations will go unnoticed.
Answer:
Certain employees are exempt from federal overtime provisions.
Answer:
Title and risk of loss can pass to the buyer from the seller before the goods are
identified to the contract.
Answer:
Most states do not permit the corporate articles or bylaws to authorize compensation for
directors.
Answer:
Traditionally, the courts have protected the right to free speech to the fullest extent
possible.
Answer:
Candy & Caramel Company wants to sell its products in normal-sized packages laÂ-
beled ‘Super Size.’ Darn Yarn, Inc., wants to advertise its sweaters as havÂing ‘That
Wool Feel,’ but does not want to specify on labels that the sweatÂers are 100 percent
polyester. What stops these firms from marketÂing the products as they would like?
Answer: