Under copyright law, the doctrine of works for hire states that:
a. if an employee prepares a work within the scope of her employment, her employer is
considered the author of the work.
b. if an employee prepares a work within the scope of her employment, the employee is
considered the author of the work for copyright purposes.
c. if the work is specially ordered or commissioned, it is always considered, for
copyright purposes, the work of the employer.
d. a person’s original creations, if committed to tangible form, are always considered to
be authored by the actual creator in the law of copyright.
Albert read ElectroCorp’s ad in the local newspaper advertising a flat-screen TV for
$89. Albert rushed to the store to buy the TV only to be told by the salesperson that the
ad was a misprint and the price should have been $389. Albert gave the salesperson $89
plus sales tax and demanded the TV.
a. The ad is a firm offer by the merchant and the TV must be sold for $89.
b. The ad is a contract and the store must abide by terms stated in the contract.
c. The store must accept the price stated in the ad, but only if Albert has a copy of the ad
with him.
d. Albert is merely making an offer to ElectroCorp to buy the TV for $89 plus sales tax.
A(n) __________ is a contract between a promisee and a promisor by which the
promisee agrees to accept and the promisor agrees to render a substituted performance
in satisfaction of an existing contractual duty.
a. accord
b. mutual rescission
c. material alteration
d. novation
Which of the following is correct with regard to conditions subsequent?
a. Conditions subsequent are quite common in contracts.
b. A ‘sale or return” contract is an example of a contract with a condition subsequent.
c. A condition subsequent must occur before performance is due under a contract.
d. All of these are correct.
What happens if the police illegally seize evidence in violation of the Fourth
Amendment?
a. The evidence will be excluded from use at trial.
b. The defendant’s arrest is nullified.
c. The defendant is entitled to another trial.
d. The defendant will be paid for the expenses of his defense.
The seller’s warranty that he has marketable title to the land would be breached if the
buyer discovers:
a. a lien on the land.
b. a defect in the chain of title.
c. a lease of the premises.
d. All of the above.
Jesse purchases Erica’s house and in so doing assumes the mortgage. Which of the
following is true?
a. Jesse is personally liable to pay the mortgage.
b. Erica is personally liable to pay the mortgage.
c. Erica is no longer liable to pay the mortgage.
d. Both (a) and (b).
A newspaper article hints that a certain corporation is a front for illegal activity. The
corporation:
a. will lose a defamation suit because only natural persons can successfully bring
defamation suits.
b. will likely win a defamation suit if the statement is untrue.
c. will likely lose a defamation suit because the press has an absolute privilege in this
type of case.
d. can win an invasion of privacy suit even if the statement is true.
When a payor bank gets an item payable from a customer’s account with insufficient
funds, the bank:
a. may pay the item and charge it to the customer’s account even though an overdraft is
created.
b. may dishonor the item and return it.
c. All of these are correct.
d. None of these are correct.
Article 6 of the Code does
a. apply to sales of goods in the ordinary course of business.
b. define “bulk transfer” as any transfer in bulk and not in the ordinary course of
business.
c. apply to merchants whose principal business is the sale of merchandise from stock.
d. include the transfer of a substantial part of equipment as a bulk transfer under any
circumstances.
J & J Co. offers a ‘subscription” for baby toys to be delivered every two months from
the birth of a child. Payment must be made within two weeks of delivery. The Markham
family accepted the J & J plan when their son, Timmy, was born. When Timmy was
four months old, one J & J toy arrived smashed to pieces. Markham:
a. can treat the whole contract as breached and refuse to pay for past installments as
well as future installments.
b. can reject the installment and cancel the contract immediately.
c. can reject the installment and refuse to pay for it if J & J cannot cure it.
d. cannot reject the installment since it is part of a series.
Whitaker has reasonable grounds for believing Crosslin will not perform his obligations
under their contract. Discuss what Whitaker might do if their contract is governed by:
(a) the UCC, and (b) the CISG.
Victor negligently led Gus to believe that Brenda had the authority to act on Victor’s
behalf. If Brenda had no authority but Gus reasonably and in good faith relied on
Brenda’s apparent authority:
a. Victor is liable to Gus for Gus’s loss suffered because of his reliance.
b. Victor cannot be held liable to Gus because Brenda had no actual authority.
c. only Brenda can be held liable for any loss Gus suffered because of his reliance.
d. Gus must bear any loss because he did not determine the extent or existence of
Brenda’s authority.
In an article about a prominent judge, a newspaper indicates that the judge had
organized crime connections. The judge sues. The judge will have a cause of action:
a. if the suit is for defamation and the newspaper responsibly checked its sources.
b. if the suit is a suit for intrusion.
c. whether or not the newspaper checked its sources as long as the information printed
is ultimately found to be untrue.
d. if the statement, which was untrue, was made with malice.
Under the UPA, dissolution by operation of law occurs:
a. if a partner has been adjudicated mentally incompetent.
b. upon the bankruptcy of a partner.
c. when a partner has engaged in conduct prejudicial to the business.
d. when the business can be carried on only at a loss.
Franz signs a $1,000 note payable to ABC Bank. If, to help Franz get the loan
approved, Amy also signs the note as an accommodation maker:
a. Amy’s liability is the same as that of an accommodation indorser on a check.
b. the liability of each party to the bank is, Franz $500 and Amy $500.
c. Amy has secondary liability on the note.
d. Amy and Franz both have primary liability on the note.
Wayne helped Hank study all night for an important exam. After Hank got an “A” on
the exam, he told Wayne, “I will give you $10 for helping me get a good grade.” Wayne
said, “Thanks, I’ll take it.”
a. There is no contract because there is no mutual assent.
b. There is no contract because there is no valid consideration.
c. There is no contract because $10 is reasonably inadequate consideration.
d. There is a contract with sufficient consideration.
The nonbinding, informal process in which a third party is selected by the disputing
parties to attempt to help them reach a mutually acceptable agreement is known as:
a. conciliation.
b. discovery.
c. mini-trial.
d. arbitration.
In international business transactions, a documentary letter of credit:
a. is a method of payment for goods that reduces the seller’s risk from the possibility
that the goods will be shipped, but not paid for.
b. is a type of bill of lading.
c. is a guarantee by the seller’s bank that it will pay the price of the exported goods if
the seller breaches the contract.
d. All of the above.
For how long does a copyright last?
a. Exactly 25 years.
b. Only 17 years.
c. Exactly 50 years.
d. The author’s life plus 70 years.
State laws that regulate the issuance and sale of securities are known as:
a. the Uniform Commercial Code.
b. the MBCA.
c. Blue Sky Laws.
d. None of the above.
The anthropology department of Towers University is doing an excavation on property
that belongs to the Browns. If, in the process of excavation, the university finds some
valuable lost items, they will belong to the Browns and not to the university.
Define defamation and identify what a plaintiff must prove to win a defamation suit.
“Presentment” is necessary within ten days of the date of issuance of a check.
Article 9 of the UCC applies to a security interest without consent that arises by
operation of law, such as a mechanic’s lien.
Courts of equity will grant specific performance of contracts for personal services.
In the federal system, appeals from the Bankruptcy Court and Tax Court are heard
directly by the U.S. Supreme Court.
A licensee for purposes of tort law is a person invited upon land as a member of the
public or for a business purpose.
Discuss the use of and types of stock options.
Federal agencies may not charge for providing records to a person requesting access to
the agency’s files.
Monetary damages are the most frequently granted remedy for breach of contract.