Toro, S.A., which is based in Mexico, enters into a contract for the purchase of portable
livestock fencing from United Fencing Company, which is based in the United States.
This contract is governed by
a. Mexican law.
b. the provisions in the laws of both countries that are similar.
c. the Uniform Commercial Code.
d. the United Nations Convention on Contracts for the International Sale of Goods.
Answer:
Fifi, a clerk at a Games n’ Gamers store, takes a video game player and a selection of
new games from the store without permission. Fifi is liable for
a. appropriation.
b. conversion.
c. malicious prosecution.
d. wrongful interference with a business relationship.
Answer:
Fact Pattern 25-1
Open Pit Excavation Inc. operates a rock quarry next to Robyn’s vineyard and winery.
Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and
unreasonably interÂferes with Robyn’s enjoyment of her property.Refer to Fact Pattern
25-1. The court is most likely to award Robyn an injunction
a. if letting the pollution continue is equally as harmful as stopping it.
b. if letting the pollution continue is less harmful than stopping it.
c. if letting the pollution continue is more harmful than stopping it.
d. under no circumstances.
Answer:
Garage Magic, Inc., contracts for the sale of a certain number of garage door openers to
Home & Yard Hardware stores. Ian buys one of openers. The applicable statute of
limitations prescribes a period of four years. To bring a product liability claim against
Garage Magic, Ian must file a suit within four years of
a. Ian’s discovery of an injury caused by the opener.
b. Garage Magic’s sale of the opener to Home & Yard.
c. Garage Magic’s design of the opener.
d. Home & Yard’s sale of the opener to Ian.
Answer:
Big American Oil Company joins with a foreign cartel to control the price of oil. If the
cartel has a substantial effect on U.S. commerce, a suit for violation of U.S. antitrust
laws can be brought against
a. Big American Oil and the foreign cartel.
b. the foreign cartel.
c. Big American Oil.
d. all of the choices.
Answer:
Global Trade Corporation is a public company that is poised to issue securities that do
not qualify for an exemption from registration. This means that Global Trade must
a. file a registration statement with the SEC.
b. issue the securities through an online registration site.
c. refrain from issuing the securities to unregistered investors.
d. register the securities with a national stock exchange.
Answer:
Energy Resources Company develops its marketing strategies in terms of what its
management perceives as its ethical obligations, which represent its
a. legal liability.
b. profitability.
c. standards of right and wrong.
d. unilateral corporate duties.
Answer:
Metro Movers Miami Corporation allows Metro Movers Milwaukee Company 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.
Answer:
Lucille is married to Marcus. Lucille buys food for their children’s lunches and charges
the cost to Marcus’s account. This is
a. an agency by operation of law.
b. an agency by estoppel.
c. an agency by ratification.
d. not an agency relationship.
Answer:
Renewable Resources, Inc., files a suit against Sunrich Utility Company and seeks to
examine certain documents in Sunrich’s possession. A legitimate reason for this
examination is that the documents contain
a. information that is relevant to the case.
b. private information about Sunrich’s operations.
c. public information about energy generation.
d. irrelevant data that can be eliminated from consideration.
Answer:
ReadIt, Inc., develops an internationally popular Web site, tailoring its features to the
censorship requirements of various governments. Critics charge ReadIt with
‘decapitating the voice of dissent.’ Ethically, the best argument in favor of ReadIt’s
policy is
a. ReadIt is merely following the lead of governments everywhere.
b. ReadIt is only seeking profits in lucrative markets.
c. ReadIt’s action is a common international practice.
d. ReadIt’s approach is a move toward more open access in the future.
Answer:
Mona is induced by her guardian Newt to sign a contract to invest her student loan
funds in Overseas Bank through Newt’s investment firm. Unknown to Mona, Newt
realizes ongoing commissions from the investment. Most likely, Mona may
a. not rescind the contract.
b. rescind the contract on the basis of undue influence.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of unconscionability.
Answer:
GetTogether, A Social Media Company encourages its managers to behave ethically,
reasoning that lower-level employees will take their cues from management. One of the
most important ways to create and maintain an ethical workplace is for GetTogether’s
management to
a. demonstrate a commitment to ethical decision making.
b. discreetly engage in unethical or illegal acts.
c. look the other way when an employee engages in an unethical act.
d. direct employees to ‘do as we say, not as we do.’
Answer:
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. a statement 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.
Answer:
Food Packagers Union represents the workers of Garden Variety, Inc. The company
does not require its new hires to join the union as a prerequisite to obtaining
employment. Food Packagers would like Garden Variety to require the workers to join
after a specified amount of time on the job. This would violate
a. federal labor law.
b. federal immigration law.
c. federal wage and hour laws.
d. no federal law.
Answer:
Global Marketing, Inc., a U.S. firm, owns property in Honduras. The government in
Honduras takes Global Marketing’s property without paying for it. A U.S. court will
probaÂbly not examine the validity of this act commitÂted 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 .
Answer:
Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing
agreement with Total World Sports, a U.S. wholesaler of Suisse’s products. U.S. courts
will apply U.S. antitrust laws if
a. the agreement was made in Switzerland.
b. the agreement was made in the United States.
c. the price fixing has a substantial effect on U.S. commerce.
d. the Swiss government agrees to be sued in the United States.
Answer:
Evita pretends to be ‘Faith’ online, fooling Garth into believing that Faith is his friend.
When Garth learns the truth, he is embarrassed and feels humiliated. But he cannot
recover damages because he cannot prove an actual injury, which is a requirement for
recovery in these circumstances on the ground of
a. mistake.
b. fraudulent misrepresentation.
c. undue influence
d. unconscionability.
Answer:
In the ordinary course of business, Loan2Buy Corporation offers credit to Mai and other
consumers and reports on the loans to credit agencies. To save time and money,
Loan2Buy generally does not correct or update its reported information. This is most
likely to result in
a. a levy of a nominal fine.
b. an assessment of damages.
c. an order of rescission of the loan contracts.
d. no sanctions.
Answer:
During the trial phase of Sof’ Drink Soda Corporation’s suit against TimeOut
Convenience Stores, Inc., their attorneys engage in voir dire. This is
a. an assessment of the arguments on the issues.
b. the determination of the issues to be argued.
c. the testimony by a party to the lawsuit or by any witness, recorded by an authorized
court official.
d. the selection of jurors.
Answer:
Rico does not work for Street Bikes Company, but wrongÂfully obtains inside
information concerning the firm. Based on the inÂformaÂtion, Rico buys and sells
Street Bikes stock for personal gain. The Securities and Exchange Commission proseÂ-
cutes Rico, arguing that he is liable because he stole inÂformation rightÂfully
belonging to another. This argument is
a. the blue-sky theory.
b. the misappropriation theory.
c. the free-writing prospectus theory.
d. the tipper/tippee theory.
Answer:
Racketeering is a single crime’”engaging in financial transactions to conceal the
identity, source, or destination of illegally gained funds.
Answer:
Generally, in a Chapter 11 case, no orders affecting the estate will be entered without
the consent of the creditors’ committee or after a hearing in which the judge is informed
of the committee’s position
Answer:
A choice-of-law clause designates the jurisdiction for the litigation of disputes arising
under a contract.
Answer:
Each judge had his or her personal beliefs and philosophy, which shape the legal
reasoning process.
Answer:
Ratification involves a question of intent, and intent can be expressed only by words.
Answer:
To obtain a search warrant, law enforcement officers must convince a judge that they
have reasonable grounds to believe a search will reveal evidence of a specific illegality.
Answer:
Failure to live up to a standard of care may be an act or an omission.
Answer:
Under the Anti-Counterfeiting Trade Agreement, member nations are required to
establish border measures that allow officials to search commercial shipments of
imports and exports for counterfeit goods.
Answer:
Members of limited liability companies are shielded from personal liability in many
situations.
Answer:
If a franchisor’s decision to terminate a franchise is made in the normal course of
business and reasonable notice is given, it is less likely that the termination will be
considered wrongful.
Answer: