In selling a commercial building, Birdie tells Colt that theproperty has a certain
capacity, making it suitable for a nightclub. Birdie knows nothing about the capacity of
the building, but it is not as she specifies. Colt buys the building.
Under these circumstances, Colts best course of action is most likely to
a. scam Birdie.
b. induce Birdie to give him the commission on her next sale.
c. recover damages or rescind the contract to buy the building.
d. sabotage Birdies career with bad publicity.
Mythic Games Company employs two hundred workers full-time. If Mythic Games
plans to have a mass layoff, it must provide its employees with notice of at least
a. thirty days.
b. sixty days.
c. ninety days.
d. one year.
In 2014, Cloud Computing Corporation registers its trademark as provided by federal
law. After the first renewal, this registration
a. is renewable every ten years.
b. is renewable every twenty years.
c. runs for the life of the corporation plus seventy years.
d. runs forever.
Onis Adventure Travel and Paquitos Wild River Tours form a joint venture. Oni can
participate in the ventures management
a. only to the extent that she assumes liability for the ventures debts.
b. only to the extent of her investment in the venture.
c. to any extent.
d. to no extent.
Polly agrees to buy Quinns Cycle World store business on the express condition that
Ridgeline Credit Union approves the financing. This approval is
a. not a condition.
b. a condition precedent.
c. a concurrent condition.
d. a condition subsequent.
Gilbert wants to initiate a suit against Healthways Insurance Company by filing a
complaint. The complaint should include
a. an explanation of the proof to be offered at trial.
b. astatement refuting any defense that the defendant might assert.
c. a motion for judgment on the pleadings.
d. a statement alleging the facts showing the court has jurisdiction.
Kamal reproduces Lorenas copyrighted work “Musica without paying royalties. Kamal
is most likely excepted from liability for copyright infringement under the “fair use
doctrine if
a. Kamal copies the entire work.
b. Kamal distributes the copies without charge to the public.
c. Kamals use has no effect on the market for Lorenas work.
d. Kamals use is for a commercial purpose.
Global Marketing, Inc., a U.S. firm, owns property in Honduras. The government in
Hondurastakes Global Marketingsproperty without paying for it. A U.S. court will
probably not examine the validity of this act committed by Honduras within its own
territory, under
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the principle of comity.
d. the World Trade Organization .
Stubbs buys a Tred-brand bicycle from his brother, Uriah. Uriah agrees to keep the bike
at his house until Stubbs picks it up. During a storm, a tree falls from Victors yard onto
Uriahs garage and destroys the bike. The loss of the bike is suffered by
a. Stubbs.
b. Uriah.
c. Tred.
d. Victor.
Produce Packaging Company promises its employees a 10percent raise at the end of the
year if productivity has increased and management feels the raise is warranted. Produce
Packaging must
a. do nothing.
b. give the employees a 10percent raise only at the end of the year.
c. give the employees a 10percent raise only if productivity increases.
d. give the employees a 10percent raise under any circumstances.
Sara believes that she was rejected for a position at Trek n Travel Agency on the basis
of her race. Sara files a suit against Trek n Travel under the Civil Rights Act of 1964. To
establish a primafacie case of employment discrimination, Sara must show all of the
following except that
a. she is a member of a protected class.
b. she applied and was qualified for the job in question.
c. she was rejected for a position by Trek n Travel.
d. other persons of her race hold similar positions with other similar employers.
Congress enacts the Supplemental Income Tax Act (SITA) to exempt the citizens of
New Jersey from federal taxes until their coastal towns are rebuilt from the ravages of a
recent hurricane. SITA will most likely be
a. rendered invalid under the supremacy clause.
b. held to be valid under the equal protection clause.
c. struck down under the taxing and spending clause.
d. upheld under the commerce clause.
Barrett files a suit against City Moving Service for breach of contract, based on what
Barrett claims was City Movings offer. For a court to determine if a contract has been
breached, under the common law, the offer must include terms that are
a. exactly precise.
b. reasonably definite.
c. unequivocally approximate.
d. vague or uncertain.
Rooster Red, LLC, grants a franchise to Qiana to open and operate a Rooster Red
restaurant. Rooster Red will likely charge Qiana
a. an initial fee or lump sum price for the franchise license.
b. a percentage of Qianas weekly payroll expense.
c. an amount of Qianas monthly overhead savings, if any.
d. none of the choices.
Via the Internet, Porcio sabotages the computer system of QuikChikn Company, a
fast-food restaurant operator, to alter the ingredients in the companys recipes and
products so that consumers of the foods become ill. Porcio is a
a. cyberterrorist.
b. botnet.
c. virus.
d. worm.
Bread & Brews, Inc., files its articles of incorporation with the appropriate government
agency. Least likely to appear in the articles is the name of
a. each of the corporations incorporators.
b. each of the corporations shareholders.
c. the corporation.
d. the corporations initial registered agent.
Uri and Victor enter into a contract by which Uri promises to deliver business cards,
advertising banners, and other marketing materials to Victor. Uri later transfers his duty
under the contract to Wren. Uri is
a. a delegator and an obligor.
b. a delegateand an obligee.
c. anassignor and an assignee.
d. none of the choices.
Smith & Jones, an accounting firm, agrees to perform an audit forBrick & Mortar
Stores, Inc. Whether or not this agreement meets all of the requirements of a contract,
the parties are likely to follow the rules of contract law because they
a. want to avoid potential disputes.
b. are conscious of those rules.
c. arenot conscious of those rules.
d. have a moral obligation to do so.
Home & Hearth Furniture, Inc., and Inez, a consumer, enter into a contract for a sale of
a suite of bedroom furniture. If the contract includes a clause that is perceived as
grossly unfair to Inez, its enforcement may be challenged under the doctrine of
a. good faith.
b. impracticability.
c. square dealing.
d. unconscionability.
Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for
Beneficial to transport a truckload of hay for which Animal Feed agrees to pay. Due to
schedule conflicts, Beneficial contacts Crop Transport Company, to which Beneficial
“assigns all rights under the contract. This transfer is
a. an assignment and a delegation.
b. an alienation and a negotiation.
c. an obligation and a cancelation.
d. prohibited.
Regal Autos, Inc., sells cars to consumers. To avoid potential liability for oral express
warranties, each Regal sales agreement should note that a car is sold
a. as is.
b. in perfect condition.
c. subject to warranties included in the written contract only.
d. with no known defects.
QuickFreeze Storage, a bailee, holds goods for Restaurant Purveyor, Inc., which has
contracted to sell the goods to Seafood Dining Company. The goods are to be delivered
without being moved. The risk of loss will pass to Seafood Dining when it receives
a. a copy of Restaurant Purveyorscontract with QuickFreeze Storage.
b. a copy of Restaurant Purveyorscontract with Seafood Dining.
c. a negotiable document of title.
d. a notice that Seafood Dinings payment for the goods has cleared.
The shares of Home Mortgage Corporation are publicly traded in securities markets.
Home Mortgage Corporation is
a. a close corporation.
b. a privately held corporation.
c. a public corporation.
d. a publicly held corporation.
Facetime Social MediaInc. sells its users personal information. This may violate
a. businesses duties to their customers.
b. individuals rights to their privacy.
c. governments duties and rights with respect to public welfare.
d. no rights or duties.
Sustainable Products Corporation regularly expresses opinions on political issues.
Under the First Amendment, corporate political speech is given
a. discouraged.
b. forbidden.
c. protected.
d. required.
Rita eats Salsa Caliente made and sold by Salsa Zest Corporation and becomes ill. Rita
files a suit against Salsa Zest, alleging that itsproduct was not merchantable.
Merchantable food is food that is fit to eat on the basis of
a. consumer expectations.
b. what constitutes a perfect condition.
c. its makers intentions.
d. its producers experience.
Ladd throws a rock intending to hit Minh but misses and hits Nasir instead. On the basis
of the tort of battery, Nasir can sue
a. Ladd.
b. Minh.
c. the rightful owner of the rock.
d. no one.
Trucking Dispatch Company and Ucello put their agency agreement into a written
document that describes the rights and duties of both parties. Ucello, as the agent, has
a. apparent authority.
b. none of the choices.
c. express authority.
d. implied authority.
Sonya and Taylor enter into an oral contract that is required to be in writing to be
enforceable. Such a contract is normally
a. voidable by a party who does not wish to follow through with it.
b. void.
c. valid.
d. voidable but only by consent of both parties.
Quay Trucking Service tells Rafethat it will pay him $50 if he unloads a certain truck at
the Shipping Warehouse. Rafes acceptance is complete
a. as soon as Rafe says he will unload the truck.
b. onceRafe starts to unload the truck.
c. only after Rafe unloads the truck.
d. whenRafe hears Quays offer.
Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to
conceal a defect. Trusting and relying on the mislabeling, Mikayla buys a Lipstik
product and suffers an injury. Lipstik is most likely liable for
a. product misuse.
b. fraud.
c. privity.
d. puffery.
In Precise Paving Companys suit against Ride, Park n Go, Inc., the jury returns a
verdict in Precise Pavings favor. The plaintiff (Precise) will most likely ask the court to
a. enter a judgment in accordance with the verdict.
b. enter a judgment n.o.v.
c. enter a judgment on the pleadings.
d. order a new trial.
The intent to associate is a key element of a partnership.
Title VII of the Civil Rights Act of 1964 prohibits job discrimination against majority
group individuals, such as white males.
Franz, the owner and manager of Greens Grocery Store, contracts to buy sixty crates of
fresh peaches from Holly, the owner and manager of Ideal Farms. Suppose that Holly
dies before she can harvest and deliver the peaches. How does Hollys death affect their
contract? If Holly does not die, but does not deliver, and Franz suffers a loss, is there
any limit to the time within which Franz can file a suit against Holly for breach of con-
tract? If so, how might Franz extend this time?
Company codes are not law.
Employers can avoid certain tax liabilities by hiring independent contractors instead of
employees.
Some of the employees ofRighteous Apps, Inc., decide that they want to be represented
by the Science Workers Union in bargaining with Righteous Appsover overtime pay
and the times that the offices open and close. Righteous Apps, and some employees,
including Truman, are against the union. Who can demand that a union election be
held? If the union is elected, does it have to represent Truman? If the union is elected,
does Righteous Appshave to bargain over overtime pay and the times that the offices
open and close?
Common lawis a term for the laws that are familiar to most of us.
A court is not likely to allow an exception to the preexisting duty rule even if
extraordinary difficulties arise that were totally unforeseen at the time a contract was
formed.
The Convention on Contracts for the International Sale of Goods incorporates the
UCCs Statute of Frauds provision.
Limited personal liability obviates the need to obtain for insurance for significant
business liability risks.
The sellers right to cure does not affect the right of the buyer or lessee to reject goods.
Courts order reformation most often when fraud or mutual mistake is present.
A contractual obligation may not be discharged through novation.
For a business law class, Sierra reads and briefs several court opinions using the IRAC
method of legal reasoning. What do the letters I, R, A, and C abbreviate? What are the
steps in the IRAC method?
Sexual harassment occurs when sexual favors are demanded in return for job
opportunities, promotions, salary increases, or other benefits.
Able Builders, Inc., contracts with Beach Assets Company to build a Cool Juice stand
near Divers Beach. The work is to begin on April 1 and be done by June 1, so that the
stand can open for the summer. Able Builders does not finish until June 14. The stand
opens but Beach Assets loses two weeks early summer sales due to the delay. Is Beach
Assetss duty to pay for the construction of the stand discharged?
Children under fourteen years of age are not allowed to work.
Games Galore Corporation hires Haley, a minor, to create new customized game
software for certain clients. Haley signs a contract that requires her to work for Games
Galore for eighteen months. Before beginning work, however, Haley tells Games
Galore that she will not create new softwarefor Games Galore and that she is going to
work for Ideal Worldcraft, Inc., a Games Galore competitor. Is Games Galores contract
with Haley enforceable? Why or why not?