The U.S. Congress enacts a new federal statute that imposes liability on businesses
hiring employees without verifying their citizenship status. This statute applies
a. only to businesses not covered by state law.
b. only to those states that consent to apply it.
c. to all of the states.
d. to none of the states.
Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for
$2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job
for $2,000. Dry Gulch may recover from Elliot
a. nothing.
b. compensatory damages.
c. consequential damages.
d. nominal damages.
Bee Hive Honey, LLCs members include Chad, Dolores, and others. For purposes of
suing and being sued, Bee Hive Honey is
a. an aggregate of Chad, Dolores,and the other members.
b. a natural person in the members “family.
c. a legal entity apart from the owners.
d. a non-participating third party.
Liz offers to sell Max her iPad for $200. Max says, “Okay, but only if you include the
case and other accessories. Max has
a. accepted the offer.
b. made a counteroffer without rejecting the offer.
c. rejected the offer and made a counteroffer.
d. rejected the offer without making a counteroffer.
Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel
in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail
rate. One recent effort by cities to collect taxes from e-commerce has focused on
a. hotels that sell blocks of rooms at wholesale rates.
b. non-resident consumers who reserve rooms in in-state hotels.
c. online travel companies.
d. the dire financial straits of the cities during the latest recession.
Jimenez is an emergency medical technician. Medical personnel such as Jimenez are
prohibited by state statute from working more than a certain number of consecutive
hours. One month, Jimenez works more than the legal limit. Jimenez can recover for
a. the hours up to the statutory maximum but not more.
b. the hours up to the statutory maximum and the extra hours.
c. the hours up to the statutory maximum or the extra hours.
d. nothing.
As a judge in a federal court, Christine can decide, among other things, whether the
laws or actions of the executive and legislative branches are constitutional. The process
for making this determination is known as
a. judicial review.
b. jurisdiction.
c. venue.
d. early neutral case evaluation.
Emily and other users of Facebook and other social networking sites post messages,
images, and other materials on these sites. Social media posts are routinely included in
discovery in litigation to
a. establish a persons intent.
b. establish what a person knew at a particular time.
c. reduce damages awards.
d. all of the choices.
Kimberly, the owner of Littleton Cinema, trusts Max to manage the theaters daily cash
flow. One night, without Kimberlys knowledge or consent, Max takes and keeps $1,000
from the receipts. This is most likely
a. embezzlement.
b. larceny.
c. robbery.
d. burglary.
Corbin, a partner in Dentists & Orthodontists Clinic, applies for a loan with Evermore
Bank allegedly on the firms behalf but without the authorization of the other partners.
Evermore knows that Corbin is not authorized to take out the loan. If Corbin defaults on
the loan, liability for its unpaid amount will be imposed on
a. Corbin and Doctors, jointly.
b. Corbin only.
c. Doctors only.
d. Evermore only.
Oakes enters Parnells property to read an electric meter. Parnell asks Oakes to leave.
Oakes refuses. Oakes has most likely committed
a. trespass to land.
b. trespass to personal property.
c. slander of title.
d. notort.
Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would
“hate to see anything bad happen to Tia or her house. Tia agrees to sell. Regarding this
agreement, a court would likely
a. enforce it.
b. not enforce it.
c. reform it to reflect the true market value of the property.
d. order the parties to renegotiate the price.
Sea&Surf Corporation makes sailboards, which are bought and distributed by Tropical
Marketing CompanytoUV Sports Stores, Inc., which sells them to consumers.Wen is in-
jured while using a Sea & Surf board that he bought from UV Sports. In a product
liability suit based on strict liability, Wen may recover from
a. Sea & Surf only.
b. Sea & Surf, Tropical Marketing, or UV Sports.
c. UV Sports only.
d. none of the choices.
Lucas, a dairy farmer in Minnesota, and Northland Dairy Products, Inc., enter into a
contract for the sale of a certain quantity of fresh milk. Although not expressly stated, a
concept that is read into this contract is the concept of
a. good faith.
b. impracticability.
c. square dealing.
d. unconscionability.
Quisa and Reilly are partners in Sport Bikes, which rents and sells bikes, bike
accessories, and related gear. Quisa manages the business. Unless the partnership
agreement states otherwise, Quisa is
a. entitled to compensation in proportion to her effect on the business.
b. entitled to compensation in proportion to her effort.
c. entitled to compensation in proportion to her capital contribution.
d. not entitled to compensation.
Like most successful companies, Pads & Phones, Inc. (P&P), has trade secrets. The law
protects those secrets if
a. P&Pemployees do not divulge the information to outside parties.
b. P&Pemployees do not handle confidential documents.
c. P&Pemployees never leave the companys employ.
d. the information is unique and has value to a competitor.
Bayside Marina Company and Canoes & Kayaks Inc., share officers, directors,
employees, property, and equipment. In reliance on Bayside Marinas reputation,
Delivery Transport, Inc., contracts to perform services for Canoes & Kayaks, but the
firm does not pay. In terms of liability to Delivery Transport, a court is most likely to
treat Bayside Marina and Canoes & Kayaks as
a. a pass-through entity.
b. a natural person.
c. a tax-paying entity.
d. a partnership by estoppel.
Able Contractors, Inc., enters into a contract with Beau to repair, rebuild, and remodel
Coastal Marina & Boardwalk, using products from Delta Lumber & Marine. Eatwell
Café is next to Coastal Marina.
Halfway through the project, Able Contractorsrefuses to finish the job. The contract can
be enforced against Able Contractorsby
a. Beau only.
b. Beau or Coastal Marina only.
c. Beau, Coastal Marina, or Delta Lumber only.
d. Beau, Coastal Marina, Delta Lumber, or Eatwell Café.
Level Fencing Company wants to present information in “disclosure documents via the
Internet to prospective franchisees. Among other legal requirements with which Level
Fencing must comply, prospective franchisees must
a. agree to settle any lawsuits that may arise over the documents.
b. be able to download or save all electronic documents.
c. provide e-mail addresses for Level Fencing to verify users authenticity.
d. register with the Federal Trade Commission via Level Fencings Web site.
Beef Burgers, Inc. contracts to buy five hundred steers from Fattening Feedlots. Before
Fattening Feedlots can deliver the steers, there is an outbreak of disease in the feedlot,
and all the cattle are quarantined, which makes performance impracticable. In this
situation,the perfect tender rule
a. applies to both parties.
b. does not apply.
c. applies only to Beef Burgers.
d. applies only to Fattening Feedlots.
Phoenix, a salesperson for Quality Fruit, Inc., showsRobert, a buyer for Sweet Home
Fruit Company, samples of peaches, stating that any shipment will match the samples.
This statement is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
Whitewater Canyon Adventures, Inc., and Xtra Overstock Company enter into an oral
contract for Xtras sale to Whitewater of five rafts for $2,000 each. Before Whitewater
takes possession of the rafts, this contract is enforceable by
a. Xtra only.
b. Whitewater only.
c. any interested third party, such as a Whitewatertour guide.
d. none of the choices.
Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky
Aquatic Corporation. Before either party has performed, rescission of this contract
requires
a. a mutual agreement to rescind.
b. an accord and satisfaction.
c. a novation.
d. a settlement agreement.
Savannah and Tim enter into a sales contract for orchids. With respect to the specific
contractual provisions set out in the UCC, Savannah and Tim may
a. agree to different terms only to a reasonable extent.
b. agree to different terms unless they “get caught.
c. agree to whatever terms they wish.
d. not agree to different terms.
Refined Grains, Inc., is a Kansas-based firm that does business throughout the world.
Refined Grainsmanages retail and wholesale operations, buys and sells commercial
venues, undeveloped land, and agricultural products, and other goods. Refined
Grainshas had to deal with employee and customer theft. With respect to these
circumstances, the Uniform Commercial Code (UCC) provides a framework for
a. commercial transactions for the sale of and payment for goods.
b. international distribution agreements.
c. domestic and foreign transactions in real estate.
d. prosecuting crimes against business interests.
Dollars & Sense, Inc., is incorporated in the state of New Jersey and is doing business
in the state of New York. In New York, Dollars & Senseis properly referred to as
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a public corporation.
Lou and Mike negotiate a deal to transfer stolen body building equipment for
counterfeit currency that Mike will attempt to spend at Now! Discount Mart. This
contract is
a. enforceable.
b. void.
c. voidable at the option of Lou or Mike.
d. voidable at the option of Now!
Fresh Harvest Company, which is based on Georgia, packages and sells vegetables.
Hayden, who is a resident of Indiana, buys a Fresh Harvest product, eats it, and suffers
severe food poisoning. Hayden wants to file a suit against Fresh Harvest. The diversity
of citizenship between these parties means that
a. federal and state courts have concurrent jurisdiction.
b. federal courts have exclusive jurisdiction.
c. no court has jurisdiction.
d. state courts have exclusive jurisdiction.
While sailboarding, Jolene is injured whenKilroy carelessly crosses her path.Kilroys
insurance company offers Jolene$50,000 to release Kilroy from liability, and she
accepts. Later, she learns that her injuries are more serious than she realized. The
release is
a. enforceable.
b. unenforceable because Jolenes injuries are unforeseeably difficult.
c. unenforceable because Kilroyhas a preexisting duty to pay.
d. unenforceable because the release is an illusory promise.
The Prosthetic Legs and Arms Act (PLAA) sets up a no-fault compensation program for
persons injured throughthe use of medical prostheses. The PLAA protects prosthesis
makers from liability for unavoidable side effects. When Quint is injured in an auto
accident, his physicianprescribes and fits him for a certain prosthetic. When Quint
suffers injuries from its use, he, files a suit against Replacement Limbs LLC, the maker
of the prosthetic, alleging strict product liability. Is there a defense that Replacement
Limbs might successfully assert in this case? If so, what is it, and why?
Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale
Distributors. When Genovese runs into the types of difficulties that contractors
ordinarily confront, Hawthorne agrees to pay extra compensation to overcome them.
Regarding the agreement to pay more, a court would likely
a. enforce it.
b. rescind it.
c. order the parties to renegotiate it.
d. not enforce it.
Cooks Pantry Appliances, a retail store, must use reasonable care on its premises to
warn its patrons of
a. all risks.
b. hidden risks.
c. obvious risks.
d. no risks.
Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They believe the
land to be worthless, but beneath it is a gold mine. Byron can
a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of undue influence.
Bank Professionals Union represents the workers of Commerce Bank. The bank refuses
to bargain with the union over the economic consequences to the employees of
managements decision to shut down some facilities. This most likely violates
a. federal labor law.
b. state right-to-work laws.
c. federal wage-and-hour laws.
d. no federal or state law.
On May 1, Bobbi-Ann, a real estate agent, and Corporate Properties, Inc., a commercial
property owner, sign an agreement about the sale ofCorporate Propertiesoffice building.
Under the terms, if a buyer makes a serious offer within sixty days, Corporate
Propertiesmust pay Bobbi-Annscommission. Bobbi-Annputs for sale signs on the
building, places ads in real estate pamphlets and one a locally focused Web site, and
features the property in a “walking tour online. On June 1, Corporate Propertiestells
Bobbi-Annthat it is canceling their arrangement. Ten days later, Corporate
Propertiescloses a sale on the building without Bobbi-Annsparticipation.
Bobbi-Annfiles a suit against Corporate Propertiesfor the amount of her commission. In
whose favor is the court likely to rule, and why?
Under the Madrid Protocol, a company can register its trademark in more than one
country with a single application.
In a live auction, a bidder is an offeree.
All oral contracts are enforceable under the UCC.
Goods must be of the highest quality possible to be merchantable.
Employee demotion is one of the least frequently cited reasons for a finding of
constructive discharge under Title VII of the Civil Rights Act of 1964.
The Uniform Commercial Code has been adopted in all fifty states.
Chris promises Doreen $40,000 if she graduates from Eagle College. Doreen enrolls in
Eagle, attends full-time for four years, and graduates. When Doreen asks Chris for
$40,000, Chris says, “I dont remember promising you $40,000. But if there was a
promise, its not enforceable, because we didnt bargain for it. And even if there was a
promise that would otherwise be enforceable, I revoke it now. Can Doreen enforce
Chriss “promise? Why or why not?
The expenses associated with an appeal can be considerable.
Data Analytics, Inc., and eProducts Corporation market competing software
products.Data Analyticslaunches an advertising campaign claiming that eProducts,
instead of testing software before it is marketed, has customers “test the software by
using it. eProductsknows this is not true but begins to lose sales to Data Analytics. On
what grounds could eProducts sue Data Analyticsfor injury to eProducts reputation?
When no delivery terms are specified in a contract for a sale of goods, there is no basis
for determining a remedy.
Aunilateral contract is formed at the moment when the contract is performed.
An advertisement is generally considered an offer.
Protection of trade secrets extends both to ideas and to their expression.
In the absence of express constitutional, statutory, or other provisions, the corporation
has no implied powers.