LWB 34876 | Course Paper

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Which of the following was the result in Family Winemakers of California v. Jenkins,

the case brought by winemakers from California challenging a Massachusetts law

distinguishing between how large and small winemakers could distribute their wines in

Massachusetts?

A. That the law impermissibly discriminated against out-of-state winemakers in

violation of the Commerce Clause.

B. That the law permissibly discriminated against out-of-state winemakers and did not

violate the commerce clause.

C. That the law impermissibly discriminated against out-of-state winemakers in

violation of the Twenty-first Amendment to the U.S. Constitution.

D. That the law impermissibly discriminated against out-of-state winemakers in

violation of the Webb-Kenyon Acts.

E. That the law did not discriminate against out-of-state winemakers and that, therefore,

no violation occurred.

A[n] _____ is any description of the good’s physical nature or its use, either in general

or specific circumstances, that becomes part of the contract.

A. Express warranty

B. Implied warranty

C. Acknowledged warranty

D. Claimed warranty

E. Consequential warranty

According to the UCC, which of the following should a financing statement list?

A. The names and addresses of all parties involved only.

B. Two items: (1) the names and addresses of all the parties involved and (2) a

description of the collateral.

C. Three items: (1) the names and addresses of all the parties involved, (2) a description

of the collateral, and (3) the signature of the debtor.

D. Three items: (1) the name of the financing bank, (2) the name of the debtor, and (3) a

description of the collateral only.

E. Three items: (1) the name of the financing bank, (2) the signature of the debtor, and

(3) a description of the collateral.

“Accidental Sale.” Robby entrusted his automobile to ABC Motors for repair. The

manager of ABC Motors, who did a very poor job with inventory, accidentally sold the

car to Connie. Connie, who paid cash for the car, had no idea that the car did not belong

to ABC Motors and paid fair market value for it. When Robby went to pick up the car,

he was very upset that it was gone. The manager of ABC Motors told him that he was

very sorry, but that his only recourse would be against Connie.

Which of the following is a proper identifying term for Connie?

A. A good-faith purchaser

B. A valid purchaser

C. A void purchaser

D. A voidable purchaser

E. An interested purchaser for value

According to the Revised Uniform Limited Partnership Act, which of the following is

not a reason for which a limited partnership can be dissolved?

A. The expiration of the term established in the certificate of limited partnership.

B. The completion of the objective established in the certificate.

C. The withdrawal of the general partner (unless the certificate establishes that other

general partners will continue).

D. An act of the court.

E. The written consent of a majority of all partners (limited and general).

“Miracle Face.” Tara developed a great new type of face cream guaranteed to provide

total sun protection, remove wrinkles, and result in anyone looking at least ten years

younger. Her product, Miracle Face, became extremely popular in the U.S., where she

has several shops, and also in other countries to which it was shipped. Tara has a

number of individuals in other countries seeking to team with her in selling Miracle

Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and

any associated trademarks, and allow him to sell Miracle Face in Mexico. Tara has an

offer, however, from another Mexican citizen, Maria. Maria proposes that she and Tara

associate together, open a business to sell Miracle Face, and share profits and

management responsibilities. Tara has also thought about opening her own business in

Mexico in conformity with Mexican laws. She would then, hire employees in Mexico to

sell the product. Another matter Tara has considered is simply arranging for her

products to be shipped to Mexico for sale, and she is interested in the effect of any trade

agreements in effect between the U.S. and Mexico.

Assuming that Tara decides to proceed as Maria proposes, their arrangement would be

a[n] ______.

A. Franchisee-franchisor arrangement

B. Affiliator-affiliatee arrangement

C. Joint venture

D. Licensing agreement

E. Subsidiary agreement

“Painted House.” Billy had a contract to paint Jan’s house for $800 including the duty to

clean up any debris. The contract between Billy and Jan did not address assignment in

any way. Billy, who was very busy, assigned the contract, specifying that it included the

right to receive the money and the duty to paint the house, to Richard who was

interested in making some extra money and had experience painting. Billy did not tell

Jan about the assignment because he did not want any trouble nor did Richard mention

the assignment to her. In fact, Richard never met Jan because he painted while she was

at work. After Richard did a good job painting the house, Jan sent a check to Billy for

$800. Billy needed the money to pay some bills, so he spent it. He thought he would

have money coming in with which to pay Richard, but that did not happen. Richard

asked Jan for $800 when it was not forthcoming from Billy. Jan refused. Richard said

that he was going to sue her. Jan called Billy and told him that he had no right to assign

the contract. Another problem involved disposal of debris. Although Richard was a

good, competent painter, he forgot and left some old paint cans at Jan’s house. Jan

demanded that Billy come and properly dispose of the paint cans because they could

not simply be put in the trash. Billy refused and told her that she would have to get

Richard to dispose of the paint cans because that was his responsibility. Jan called

Richard who told her that he was busy and that clearing out the paint cans was Billy’s

responsibility.

Which of the following is true regarding Billy’s claim that he had no duty to pick up the

paint cans?

A. Billy is correct because he validly delegated that duty to Billy.

B. Billy is incorrect because the job was a personal service, and he had no right to

assign either rights or duties under the contract.

C. Billy is incorrect but only because the job was for under $1,000.

D. Billy is correct only because Richard properly painted the house and was, therefore,

responsible for ancillaries. If Richard had improperly painted the house, Billy would

have had remaining duties.

E. Billy is incorrect because his delegation did not affect his obligation to Jan.

“Business Law Rocks.” Business law teacher Penny ordered 50 T-shirts for her classes

that said “Business Law Rocks” on the front. She wanted to give them out on the last

day of class and contracted with Frank, who owned a T-shirt business, for the shirts to

arrive by that day. The shirts arrived on Thursday, just before the last day of classes on

Friday. Unfortunately, the shirts said “Business Law Yuck” on the front. Frank told

Penny that he would remedy and fix the problem and that he had the right to do so. She

told him, however, that she had to have the shirts the next day because the students

would be gone after that. Penny had also ordered some pamphlets on employment law

to be used the next fall semester. The seller had agreed to provide the pamphlets 30

days before spring semester ended. The seller, however, erred and sent pamphlets on

environmental law which arrived 28 days before spring semester ended. The seller

attempted to remedy the problem by sending the correct pamphlets on employment law,

but they did not arrive until 27 days before spring semester ended. None of the parties

had any prior dealings.

Which of the following is true regarding the efforts of the seller of the employment law

pamphlets to remedy the problem with the incorrect pamphlets?

A. The seller could not exercise the right to cure once the contract time for performance

had ended because the seller did not have reasonable grounds to believe that the

nonconforming tender of environmental pamphlets would be acceptable to Penny.

B. The seller could likely exercise the right to cure once the contract time for

performance had ended because the seller would have had reasonable grounds to

believe that Penny would not have objected to the tender of the correct item at the time

it was tendered.

C. The seller correctly acted to remedy the problem because he had up to 10 days under

the UCC to fix any problem.

D. The seller correctly acted to remedy the problem because he had up to 20 days under

the UCC to fix any problem.

E. The seller could not act to remedy the problem because he did not have assurance

from Penny in writing that she would allow additional time in which to cure.

Which of the following is a statement in which a company agrees with the Federal

Trade Commission to stop disputed behavior but does not admit it broke the law?

A. Agreed stoppage

B. Command order

C. Consent order

D. Agreed order

E. Approved acknowledgement

The UCC requires that buyers are obligated to accept and pay for ______ in accordance

with the contract.

A. Reasonably conforming goods

B. Select conforming goods

C. Materially conforming goods

D. Significantly conforming goods

E. Conforming goods

A defendant uses a[n] ______ when her or his answer admits that the facts contained in

the complaint are accurate but also includes additional facts that justify the defendant’s

actions and provide a legally sound reason to deny relief to the plaintiff.

A. Secondary answer

B. Pleading defense

C. Affirmative defense

D. Formal answer

E. Personam answer

Which of the following doctrines arose from cases in England in which parties who had

contracted for rooms along a parade route for a king’s coronation, received their money

back when the coronation was canceled because the king became ill?

A. Frustration of purpose

B. Commercial impracticability

C. Alteration of the contract

D. Anticipatory repudiation

E. Anticipatory renunciation

Which of the following was the result in In re Hydro-Action Inc., the bankruptcy case in

the text involving whether a claimant was entitled to a lien upon a conveyor belt system

that it installed?

A. The court found that a lien was foreclosed because the claimant did not qualify as a

mechanic, artisan, or materialman.

B. The court found that a lien was foreclosed because the transaction did not involve the

manufacturing or repairing of an “article” or “building” as required under applicable

law.

C. The court found that a lien was foreclosed because the bankruptcy trustee had

priority.

D. The court found that a lien was available because the claimant qualified as a

materialman engaged in manufacturing an article for the debtor thereby satisfying

applicable law.

E. The court found that a lien was available because under principles of equity, it would

be unjust to deny the claimant a recovery.

Which of the following types of insurance protects contractors against liability for

injuries that might occur while completing a job, excluding injuries to employees?

A. Professional liability

B. Compensation insurance

C. Contractors’ liability

D. Building liability

E. Harm liability

Which of the following is true if a debtor engaged in fraud in order to convince a surety

or guarantor to enter into a contract with a third party?

A. Because the third party is innocent, neither the surety nor the guarantor is released

from liability.

B. The surety is released from liability, but the guarantor is not.

C. The guarantor is released from liability, but the surety is not.

D. Both the guarantor and the surety will likely be released from liability.

E. Both the guarantor and the surety will likely be released from liability on interest due

on the contract, but not for the principle amount.

Which of the following states that in the case of multiple assignments of the same right,

the first assignee to give notice of assignment to the obligor is the party with rights to

the contract?

A. The first-assignment-in-time rule

B. The last-assignment-in-time rule

C. The English rule

D. The French rule

E. The American rule

Which of the following is true once a guardian has been appointed for a person who has

been adjudicated insane?

A. If a person has been adjudicated insane and has a guardian appointed, that person has

no capacity to enter into contracts and any contract he does attempt to enter into is void.

B. If a person has been adjudicated insane and has a guardian appointed, that person has

no capacity to enter into contracts and any contract he does attempt to enter into is

voidable.

C. If a person has been adjudicated insane and has a guardian appointed, that person

retains capacity to enter into contracts so long as the other party to the contract is aware

of the guardian’s status.

D. If a person has been adjudicated insane and has a guardian appointed, that person

retains capacity to enter into contracts so long as the other party to the contract is aware

of the insanity issue.

E. If a person has been adjudicated insane and has a guardian appointed, that person

retains capacity to enter into contracts so long as the other party to the contract is aware

of the guardian’s status and also the insanity issue.

Which of the following torts seek to compensate people wrongfully subjected to

litigation?

A. Malicious prosecution, wrongful civil proceedings, and abuse of process.

B. Wrongful civil proceedings but not malicious prosecution or abuse of process.

C. Abuse of process but not malicious prosecution or wrongful civil proceedings.

D. Malicious prosecution and wrongful civil proceedings, but not abuse of process.

E. Malicious prosecution and abuse of process but not wrongful civil proceedings.

Negotiable instruments payable to whoever is bearing them are known as ______

instruments.

A. Demand

B. Order

C. Transactional

D. Bearer

E. Payor

Without legal assent a contract may be ____.

A. Unmarketable

B. Unchargeable

C. Void

D. Illegal

E. Voidable

Which of the following is an example of a formal contract?

A. Contracts under seal but not executed contracts or letters of credit.

B. Executed contracts but not contracts under sale or letters of credit.

C. Letters of credit and contracts under seal, but not executed contracts.

D. Contracts under seal letters of credit, but not executory contracts.

E. Contracts under seal, letters of credit, and also executed contracts.

Which of the following is generally false when a consolidation occurs?

A. The new corporation has independent legal status.

B. The original corporations continue to exist legally.

C. The consolidated entity assumes the debts of the original corporations.

D. The consolidated entity obtains the original corporations’ assets.

E. The consolidated entity takes on the rights of the original companies.

“Employment law.” Clare, who has a successful pet grooming business, is planning to

expand her operations from the U.S. into Canada and perhaps Mexico. A friend of hers,

Bill, told her that she should carefully investigate the laws in those countries before she

proceeded. Clare responded, however, that she was not concerned because by

international treaty, and under NAFTA, so long as she is a U.S. citizen, she only has to

obey the U.S. laws. Laws of other countries would not apply to her business operations.

Clare also replied that any other country would have the same strict employment-at-will

standard as exists in the U.S. She tells him the strict employment-at-will standard has

not changed over the years, and that the nature of the relationship between employer

and employee remains untouched.

Which of the following is true regarding Clare’s statement that so long as she obeys the

laws of the U.S., she does not need to be concerned about laws of other countries?

A. She is accurate.

B. She is accurate, but only in regard to laws pertaining to employment.

C. She is inaccurate.

D. She is accurate, but only in regard to laws involved with the Uniform Commercial

Code.

E. She is accurate, but only if countries are signatories to NAFTA.