1) Hillside Vineyards is a family limited liability partnership. All of the partners must
be
a.natural persons only.
b.natural persons or persons acting as fiduciaries for natural persons.
c.persons acting as fiduciaries for natural persons only.
d.related.
2) The Occupational Safety and Health Administration (OSHA) discovers that Petro
Refinery, Inc., is violating an OSHAS regulation. If this situation is resolved like most
such disputes, the outcome will be
a.a negotiated settlement.
b.a trial and a fine.
c.a trial and an appeal to a higher authority.
d.a trial and the dissolution of the business.
3) Crafted Metal Works, Inc., offers to design, make, and sell Downtown Transit
Agency fourteen streetcars. Crafted Metal authorizes a particular mode of
communication, but Downtown Transit sends an acceptance via a substituted means.
This acceptance is effective when it is
a.in transit.
b.received.
c.sent.
d.written.
4) At an auction for the first time, Dulcinea bids on a one-hundred-year-old
Edison-brand phonograph, believing that it is worth more than the price asked. When
the item proves to be less valuable, Dulcinea is
a.liable on the bid.
b.not liable on the bid because Dulcinea overestimated the value of the auctioned item.
c.not liable on the bid because the auctioneer overstated the value of the auctioned item.
d.not liable on the bid because this was Dulcinea’s first auction.
5) A court adjudicates Jimi mentally incompetent and appoints Krispin to be his guard-
ian. Later, without Krispin’s knowledge, Jimi signs a contract to sell his lake cabin to
Lazar for its real market value. The contract is
a.enforceable if Jimi comprehended the consequences.
b.enforceable if Jimi knew the market value of the farm.
c.enforceable if Lazar has been recorded to be the owner of the cabin.
d.void.
6) 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 Purveyor’s contract with QuickFreeze Storage.
b.a copy of Restaurant Purveyor’s contract with Seafood Dining.
c.a negotiable document of title.
d.a notice that Seafood Dining’s payment for the goods has cleared.
7) Luxuro Furniture & Floors, Inc., files a petition in bankruptcy for relief through
reorganization. Luxuro’s reorganization plan must contain
a.a plan to turn over its future income to the trustee.
b.a certificate proving attendance at a credit-counseling briefing.
c.a provision of adequate means for the plan’s execution.
da statement of preference for one creditor over another.
8) Kenyon steals one of Lavender’s checks and forges her signature. Lavender’s bank,
Metro Bank, pays the check. Lavender can recover from
a.Kenyon, but not Metro Bank.
b.Metro Bank, which cannot recover from Kenyon.
c.Metro Bank, which can recover from Kenyon.
d.no one.
9) On Monday, Foster deposits in his account at Guaranty Bank a local check for $500.
After 5:00 P.M. on Friday, from these funds, Foster can withdraw no more than
a.$100.
b.$400.
c.$500.
d.$600.
10) Personnel Employment, Inc., has been ordered to appear at a hearing before an
administrative law judge of the Social Security Administration. A significant difference
between a trial and an administrative hearing is that
a.attorneys are not allowed to attend administrative hearings.
b.clients are not allowed to communicate with their attorneys during administrative
hearings.
c.hearsay can be introduced as evidence in an administrative hearing.
d.the burden of proof is on the charged party to prove innocence.
11) Rodney is an employee of Security Services, Inc. In deciding whether Rodney acts
within the scope of his employment when he commits a tort against Tracy, a court will
not consider whether
a.Rodney indicated that he was acting on behalf of Security Services.
b.Security Services authorized the act.
c.Security Services furnished the means by which the injury was inflicted.
d.the act is one commonly performed by employees for their employers.
12) Francesca, who is divorced, owns a house. She has no reasonable expectation of
benefit from the life of Gordo, her ex-spouse, but she applies for insurance on his life
anyway. She also obtains a fire insurance policy on the house, which she later sells.
Five years later, Gordo dies and the house is destroyed in a fire. Can Francesca obtain
payment on either the death of Gordo or the loss of the house? Explain.
13) A contract that cannot, by its own terms, be performed within one year from the day
after the contract is formed does not need to be in writing to be enforceable under the
Statute of Frauds.
14) BizApps hosts a Web site that advertises its software products, features upgrades
and patches for its existing products, and accepts orders from customers throughout the
world. Cassie, who owns and operates Holiday Vacations, Inc., a travel agency in
Wyoming, orders from the Web site a copy of BizApps€s Price Control software. Price
Control is designed to help businesses obtain the best prices for their products and
services. When Price Control is found to have a defect in its calculating program,
BizApps offers a patch on its Web site to fix the problem. Cassie has already lost profits
because of the miscalculating defect, however, and files a suit against BizApps in a
Wyoming state court. Can the court exercise jurisdiction over BizApps? Why or why
not?
15) The law allows an innocent party to be discharged when the other party has
materially altered a written contract without consent.
16) Two notions serve as the basis for all torts: wrongs and compensation.