Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate
grapes and open a winery. If Ambrose breaches the contract, Belle Vista’s remedy
would most likely be
a. a certain ratio of the amount that Ambrose expected to invest in the project.
b. a percentage of Ambrose’s unrealized profit.
c. the difference between the land’s contract and market prices.
d. specific performance.
Answer:
Edgar, Jon, and Phoebe do business as Reliable Movers. Phoebe develops a debilitating
illness and can no longer work. Phoebe
a. may dissociate from the partnership.
b. may not dissociate from the partnership without the other partners’ consent.
c. must dissociate from the partnership.
d. may terminate the partnership.
Answer:
Fact Pattern 2-1
Martin files a suit against Nichelle in a state court over payment due on a short-term
employment contract. The case proceeds to trial, after which the court renders a verdict.
The case is appealed to an appellate court.
Refer to Fact Pattern 2’“1. After a final determination in the case of Martin v. Nichelle,
any judgment will be satisfied
a. if the losing party pays the judgment.
b. if the winning party has sufficient assets to cover the amount of damages sought.
c. if the losing party proves that he or she is unable to pay the judgment.
d. all of the choices.
Answer:
Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit,
mortgage, and investment firm. Bryn’s dissociation from the firm results in
a. the automatic termination of the firm’s legal existence.
b. the partnership’s buyout of Bryn’s interest in the firm.
c. the immediate maturity of all partnership debts.
d. Bryn’s purchase of her interest in the partnership from the firm.
Answer:
Curtis is an employee of Deepwater Drilling, Inc., covered by federal overtime
provisions, which apply only after an employee has worked more than
a. eight hours in a day.
b. forty hours in a week.
c. 160 hours in a month.
d. one year for the same employer.
Answer:
First Community Credit Union and General Hydraulics. Inc., have their dispute reÂ-
solved in arbitration. BeÂfore determining the award, the arbitrator meets with First
Community’s representative to discuss the dispute without General Hydraulics’
representative being present. If this meeting substantially prejudices General
Hydraulics’ rights, a court will most likely
a. compel arbitration.
b. review the merits of the dispute.
c. review the sufficiency of the evidence.
d. set aside any award.
Answer:
Port Harbor City enacts an ordinance that bans the distribuÂtion of all printed materials
on city streets. Later, Quint protests a new ‘revenue-enhancing’ measure also enacted by
the city by distributing handbills. When Quint is charged with violating the
printed-materials ban, he files a suit against the city. Most likely, the court will hold that
the ban is
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
Answer:
Skip is accused of a crime. Skip can refuse to provide information about his allegedly
criminal activities
a. if he suspects the information will be used to prosecute him.
b. if the police do not promise to keep the information confidential.
c. if the information is ‘fruit of the poisonous tree.’
d. under no circumstances.
Answer:
Hobart, an officer with Investment Assets Corporation, misappropriates the firm’s
property through fraud. Later, Hobart and the corporation agree to a mutual release of
claims. Still later, Investment Assets discovers Hobart’s fraud and files a suit to recover
the misappropriated property. Most likely, the court will rule that Hobart
a. breached his duty of loyalty by failing to disclose his misconduct.
b. is not liable due to his duty to act in his own self-interest.
c. is not liable due to the firm’s failure to timely discover the fraud.
d. is not liable due to the mutual release of claims.
Answer:
Loaf & Biscuit Company operates a commercial dough making and packaging plant’”a
‘major source””that emits hazardous air pollutants for which the Environmental
Protection Agency has set maximum levels of emission. The plant does not use any
equipment to reduce its emissions. Under the Clean Air Act, this is most likely
a. a violation.
b. not a violation because dough is not considered a pollutant.
c. not a violation because the plant does not use any equipment.
d. not a violation because the plant is not a mobile source.
Answer:
Flannery is seventeen years old. Under the Fair Labor Standards Act, she cannot work
a. during school hours.
b. in a hazardous job.
c. more than eighteen hours per week.
d. without a special permit.
Answer:
Omega, Ltd., imports athletic shoes made in Southeast Asia into the United States. To
obtain a larger share of the U.S. market, Omega sells the athletic shoes at lower prices
here than in its exporting countries. With respect to these imports, the United States
may
a. do nothing.
b. assess antidumping duties.
c. order the return of the athletic shoes to the exporting countries.
d. confiscate the athletic shoes without just compensation.
Answer:
Gladys enters into a contract with Hydraulic Fracturing, Inc., for a sale of the oil
beneath Gladys’s land for a fraction of the value of the oil and the cost to restore the
land after the oil is extracted. A court is most likely to determine that this deal is unfair
under
a. the concept of unconscionability.
b. the doctrine of promissory estoppel.
c. the principle of freedom of contract.
d. the Statute of Frauds.
Answer:
LaDonna signs a one-year lease with Mae to occupy an apartment near the University
of Iowa. LaDonna needs the apartment for two semesters only and may have to sublet it
for the rest of the term. LaDonna’s tenancy is
a. a periodic tenancy.
b. a tenancy at will.
c. a tenancy at sufferance.
d. a fixed-term tenancy.
Answer:
Stefano transfers copyrighted music recordings, without the copyright owners’
authorization, to his friends. This is
a. copyright infringement.
b. a license.
c. a safe harbor.
d. none of the choices.
Answer:
Eloise is a director for Frozen Yogurt Company. Eloise is also a director for Gelato
Desserts, Inc. When the board of Frozen Yogurt considers entering into a contract with
Gelato Desserts, Eloise must
a. resign from one of the boards.
b. resign from both boards.
c. make a full disclosure of any conflict of interest.
d. use her best business judgment in voting on the proposed deal.
Answer:
Nikki and Orlando are limited partners in Port City Exports, a limÂited partÂnerÂship.
To avoid personal liability for partnership obligations, they must not
a. acquire an interest in the firm.
b. contribute property to the firm.
c. engage in activities independent of the firm’s business.
d. participate in the firm’s management.
Answer:
Procedural law consists of all laws that outline the methods of enforcing rights.
Answer:
Under the doctrine of comparative negligence, only the plaintiff’s negligence is
computed and the liability for damages is distributed accordingly.
Answer:
The Securities Exchange Act of 1934 applies to companies that have assets in excess of
$5 million and five hundred or more employees.
Answer:
The relevant product market includes only products that, although produced by different
firms, have identical attributes.
Answer:
No federal statute specifically addresses cyber crime.
Answer:
The means test forces more people to file for Chapter 7 bankruptcy rather than gave
their debts discharged under Chapter
Answer:
Decisions by higher courts are not binding on lower courts.
Answer:
A foreign state is immune from the jurisdiction of U.S. courts unless the state is
involved in commercial activity within the United States.
Answer:
Merchants must issue a refund within a specified period of time when a consumer
cancels an order.
Answer:
In most legal controversies, there is one single correct result.
Answer: