Mallory promises to buy illegal digital copies of movies from Napoleon, who promises
to deliver on October 31. These promises are most likely
a. enforceable.
b. valid.
c. void.
d. voidable.
Custom Auto Body & Detailing, LLC, is a limited liability company. Unless indicated
otherwise on the Custom Autos federal tax form, the firm will be taxed as
a. a cooperative.
b. a corporation.
c. a joint venture.
d. a partnership.
Coffee Klatch Party Group, a political organization, files a claim to challenge a
Delaware statute that limits the liberty of all persons to broadcast “annoying radio
commercials. This claim is most likely based on the right to
a. equal protection of the law.
b. privacy.
c. procedural due process.
d. substantive due process.
Metro MoversMiami Corporation allows Metro Movers MilwaukeeCompany to use
Metro Movers trademark as part of its company advertising. This is
a. a license.
b. a likelihood of consumer confusion.
c. a generic use.
d. trademark dilution.
Kalin, Liza, and other consumers form MuniMart Cooperative. This form of business
organization makes it possible for these individuals to
a. avoid personal liability for the acts of the cooperative.
b. obtain an exemption from state laws governing corporations.
c. pay no taxes on their business income.
d. pool their resources to gain an advantage in the marketplace.
Urban Commerce, Inc., issues bonds, which are also known as
a. cumulative investments.
b. fixed-income securities.
c. equity securities.
d. preferred stock.
April and other employees of Bodegas & Bistros,Inc. (2B),maintain a
password-protected social media page to “vent about work. When 2B learns of the page,
the company intimidates April into revealing the password, and after reviewing the
posts, fires her and the other participants. Most likely, this is
a. a violation of the Stored Communications Act.
b. within 2Bs rights as an employer.
c. a subject for dispute resolution by the communications providers that the employees
page uses.
d. a “business-extension exception under the Electronic Communications Privacy Act.
Juan is a judge. How Juan and the judges in other courts interpret a particular statute
determines
a. how that statute will be applied.
b. how the law needs to be changed.
c. how the common law should be codified.
d. nothing.
Instead of setting up a business to market her own products, Rita considers entering into
a distributorship franchise with Sports Equipment Corporation. This involves the
transfer of
a. a license.
b. a trade name.
c. the formula to make a certain product.
d. the ownership of the business.
CallTalk Corporation, a smartphone and phone-time seller,chooses to use and register
“calltalk as its second-level domain. Later, CallTalks 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 CallTalks authorization, to
sell pornographic phone conversations.
Refer to Fact Pattern 9-1. Call&Talks use of the domain name “callltalk, without
CallTalks authorization, to sell pornographic phone conversations, is
a. goodwill.
b. fair use.
c. a license.
d. trademark dilution.
When Hesters car breaks down, she asks Insta-Tow, Inc., to tow it to Jerrys Repair
Shop. There is no discussion of a price, and Hester and Insta-Tow do not sign any
documents. Later, Insta-Tow sends Hester a bill. With respect to Hesters obligation to
pay the bill, this is
a. an express contract.
b. an implied contract.
c. no contract.
d. a quasi contract.
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. At the time this book went to press, legislation that protects
individuals from having to disclose their social media passwords had 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.
Metro Facilities, Inc., contracts to sell a parking garage to Nouveau Property Company.
The contract provides that if Metro does not close the deal by September 15, it must pay
Nouveau one-half of the contract price. This provision isnot 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.
Robyn, an employee atSocial Media, Inc., is laid off. Before he leaves, he e-mails
Social Medias marketing campaign to Tweets & Trades Corporation, Social Medias
competitor, without permission. This is
a. a sneaky but legal method of competing with a business rival.
b. a secretive but lawful way to exact revenge on a supervisor.
c. a simple, legitimate attempt to create a job opportunity.
d. a theft of trade secrets.
In studying the business law, students also review ethics in a business context. Ethics
includes the study of what constitutes
a. right or wrong behavior.
b. financially rewarding behavior.
c. legal behavior.
d. religious behavior.
Destiny and Enzo engage in a business transaction for the creation and baking of a cake
and other pastries and desserts for Destinys wedding dinner and reception. When a
dispute arises,Destiny initiates a lawsuit against Enzo by filing a complaint. If Enzo
files a motion to dismiss, and the court grants it,
a. Destiny will be given time to file an amended complaint.
b. Destiny will have a judgment entered in her favor.
c. Enzo will be given time to file another response.
d. Enzo will have a judgment entered in his favor.
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 9-1. One of the sendersGreat Looks, Hot Trends,or Ileneis acting
outside the bounds of federal law. Federal law prohibits the sending of
a. unsolicited commercial e-mail.
b. solicited commercial e-mail.
c. commercial e-mail to randomly generated addresses.
d. non-commercial e-mail that promotes a product or service to a friend, co-worker, or
relative.
Before the trial of Sof Drink Soda Corporations suit against TimeOut Convenience
Stores, Inc., their attorneys engage in voir dire. This is
a. anassessment of the arguments on the issues.
b. the determination of the issues to be argued.
c. thetestimony by a party to the lawsuit or by any witness, recorded by an authorized
court official.
d. the selection of jurors.
A decision by the federal Environmental Protection Agency (EPA) on the amount of
carbon that can be emitted from a cars exhaust system conflicts with a California state
law. In this situation, under the supremacy clause,
a. both the decision and the law are invalid.
b. both the decision and the law apply concurrently.
c. Californias law takes precedence.
d. the EPAs decision takes precedence.
Mont Blanc S.A., a French firm, imports its goods into the United States and offers
those goods for sale at “less than fair value. “Fair value is the price of Mont Blancs
goods in
a. the European market.
b. France.
c. the United States.
d. the world market.
Pualani and Quentin do business as partners in Rio Vista Builders, a residential
construction firm. For federal income tax purposes, Rio Vista would be treated as
a. a pass-through entity.
b. a natural person.
c. a tax-paying entity.
d. a partnership by estoppel.
Precision Crafted Tools, Inc., makes tools for consumers and construction professionals.
While using a Precision Crafted tool to replace an electrical fixture, Quinn neglects to
shut off the power and is electrocuted. Quinns heirs file a suit against Precision Crafted.
In a contributory negligence jurisdiction, the plaintiffs could recover
a. only if both parties were equally at fault.
b. only if Quinn was less than 50 percent at fault.
c. only if Precision Crafted was more than 51 percent at fault.
d. nothing.
Global Games Corporation employs Hyacinth as an agent. Global Games gives her an
exclusive territory in which to sell its products. Global Games cannot compete with her
in that territory under the duty of
a. compensation.
b. cooperation.
c. indemnification.
d. reimbursement.
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 games
maker under the doctrine off strict liability. A significant application of this doctrine is
in the area of
a. cyber torts.
b. intentional torts.
c. product liability.
d. unintentional torts.
ConnectWeb, Inc., an Internet service provider (ISP), supplies information to the
Federal Trade Commission concerning possible unfair or deceptive conduct in foreign
jurisdictions. For this disclosure, federal law gives ConnectWeb and other ISPs
immunity from liability. This is
a. goodwill.
b. fair use.
c. a safe harbor.
d. a license.
The Iowa Supreme Court rules against Jennifer in a case against Kut-Rate Stores, Inc.
Jennifer wants to appeal her case to the United States Supreme Court. She must ask the
Court to issue a writ of
a. appeal.
b. certiorari.
c. jurisdiction.
d. summons.
Perfect Poultry Company agrees to sell chicken, turkey, and other meats to Quik
Markets, Inc., to sell to its customers. Normally, their contract would not be enforceable
unless it includes
a. the duration of the deal.
b. the price of the goods.
c. the quantity of the goods.
d. the shipping arrangements.
In Hazels suit against Ingrid, the court issues a judgment in Ingrids favor. If the case is
appealed to an appropriate court of appeals, the appellate court will hear
a. all of the evidence.
b. most of the evidence.
c. none of the evidence.
d. select pieces of evidence.
Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Gooey Pastries,
Inc., as she attempts to make sales to food stores. Dom solicits each of Floras
customers. Dom is most likely liable for wrongful interference with a
a. bargaining relationship.
b. business relationship.
c. contractual relationship.
d. customer relationship.
Qatar Global Investments is a foreign entitya firm owned and operated by investors in a
foreign country. With respect to a limited liability company in the United States, Qatar
Global can
a. act as a creditor, but cannot otherwise invest or participate.
b. become a member.
c. not become a member, but can participate in its operations.
d. not become a member or otherwise participate in its operations.
MotorCo, Inc., makes and sells auto parts to retail repair services, vehicle sales outlets,
and consumer parts stores. On one MotorCo box is a label that reads “Contains one
gross (144) sparkplugs, assorted sizes. This statement is
a. an implied warranty of fitness for a particular purpose.
b. an implied warranty of merchantability.
c. an express warranty.
d. none of the choices.
Restitution involves one partys recapture of a benefit conferred on the other party that
has unjustly enriched him or her.
Each member of the World Trade Organization is obligated to treat other members at
least as well as it treats the country that receives its most favorable treatment with
regard to imports or exports.
The rights of a third party beneficiary under a contract vest if the third party brings a
lawsuit on the promise.
Rini, the owner of Simply Sushi, is a sole proprietor. What are the chief characteristics,
advantages, and disadvantages of this form of business organization? Riniwants to
obtain additional capital to expand Simply Sushi, but she does not want to lose control
of the firm. As a sole proprietor, what is her best option to attain these goals?
An award of damages for a breach of contract can elevate the nonbreaching party to a
better position than he or she would have been in if the contract had not been breached.
The doctrine of strict liability can be applied to sellers of goods,including
manufacturers, but not distributors.
It is notan unfair labor practice for an employer to contribute financial or other support
to a labor organization.
A majority of the states treat a partnership as an entity for most purposes.
A buyer has an insurable interest in identified goods only if he or she has title to the
goods.
Certain employers must provide advance notice of a layoff to the affected workers or
their representative (if the workers are members of a labor union).
The importation of goods that infringe U.S. patents is not prohibited.
A principal has a duty to cooperate with the agent and to assist the agent in performing
his or he duties.
If a buyer or lessee fails to reject the goods within a reasonable amount of time,
acceptance will be presumed.
When all the judges (or justices) agree on a decision, a majority opinion is written for
the entire court.
There are no important consequences if the procedures for incorporation are not
followed precisely.
The tort of trespass to land is designed to protect the right of an owner to exclusive
possession.
A principal cannot be estopped from denying that an agent has authority.
An implied warranty or merchantability and an implied warranty of fitness for a
particular purpose cannot exist in a single transaction.
The equal dignity rule requires that if a contract entered into by an agent is in writing,
the principal must honor it.
The crime of bribery occurs when the bribe is offeredit is not required that the bribe be
accepted.