1) Dental Clinic obtains an insurance policy that protects its members against
negligence claims by their patients. This is
a.casualty insurance.
b.employer’s liability insurance.
c.malpractice insurance.
d.workers’ compensation insurance.
2) Discount Retail Corporation ‘s social media policy directs its employees to “avoid
negative public comments about your company.” Elin is an employee of Discount
Retail. When Elin criticizes fellow employees online, Discount Retail fires her. Elin
then files a suit against the employer, seeking reinstatement. The court will most likely
a.award Elin reinstatement.
b.uphold Discount Retail ‘s right to terminate Elin.
c.order the parties to submit to online dispute resolution.
d.refer the issue to a higher court.
3) Trixie signs a $1,500 note payable, at 4.25 percent interest, on October 1 to Urban
Bank and writes on its face that it is “nonnegotiable.” This note is
a.negotiable.
b.nonnegotiable, because it is dated.
c.nonnegotiable, because it is payable with interest.
d.nonnegotiable, because it includes the notation “nonnegotiable.”
4) Omni Corporation provides cell phones, laptops, and tablets for its employees to use
“in the ordinary course of its business.” Omni intercepts the employees ‘ business
communications made on these devices. This is
a.a violation of the rights of Omni ‘s employees.
b.a matter for which Omni must obtain its employees ‘ consent.
c.a subject for dispute resolution by the communications providers that Omni uses.
d.excluded from the coverage of the Electronic Communications Privacy Act.
5) Bilbo signs a lease agreement for an apartment with Cato, who owns and manages
the Deer Creek Apartments complex. These parties have
a.an express contract.
b.an implied contract.
c.a quasi contract.
d.no contract.
6) 15.Bread & Bagels Corporation wants to purchase all of the assets of Coffee &
TeaInc. Dollyis a Coffee & Tea shareholder. The approval of Dolly and other Coffee &
Tea shareholders is necessary
a.in all circumstances.
b.in no circumstances.
c.only if Coffee & Tea will be paid with unauthorized, unissued stock.
d.only if Bread & Bagels agrees to assumeCoffee & Tea’s liabilities.
7) In Hazel’s suit against Ingrid, the court issues a judgment in Ingrid’s favor. If the case
is appealed to an appropriate court of appeals, the appellate court will hear
a.all of the evidence.
b.most of the evidence.
c.none of the evidence.
d.select pieces of evidence.
8) Holly lends her textbook to Iggy to study over a long weekend. While in the Iggy’s
possession, the textbook is lost. Iggy is most likely liable for the loss because this was a
bailment for
a.both parties’ mutual benefit.
b.Holly’s sole benefit.
c.Iggy’s sole benefit.
d.neither party’s benefit.
9) Natural Gas, Inc., and Olio Energy Company refine and sell natural gas. To limit the
supply of natural gas on the market and thereby raise prices, Natural Gas and Olio
Energy agree to buy”excess” supplies from dealers and”dispose” of it.
The agreement between Natural Gas and Olio Energy is
a.a horizontal restraint.
b.none of the choices.
c.a resale price maintenance agreement.
d.a vertical restraint.
10) Sal assures Tom that she will deliver a truckload of hay to his cattle ranch. A
person’s declaration to do a certain act is part of the definition of
a.an expectation.
b.a moral obligation.
c.a prediction.
d.a promise.
11) Nature’s Food Market sells groceries. Metro Snacks & Drug Store sells groceries
and fills prescriptions. The party with the chief responsibility to prevent unsafe food
and drugs from being sold is
a.Nature’s Food Market and Metro Snacks & Drug Store.
b. Metro Snacks & Drug Store only.
c.the Federal Trade Commission.
d.the Food and Drug Administration.
12) All federal government agencies must make their records available electronically on
the Internet and in other electronic formats.
13) Data Analytics, Inc., and eProducts Corporation market competing software
products. Data Analytics launches an advertising campaign claiming that eProducts,
instead of testing software before it is marketed, has customers “test” the software by
using it. eProducts knows this is not true but begins to lose sales to Data Analytics. On
what grounds could eProducts sue Data Analytics for injury to eProducts’ reputation?
14) Contract law demonstrates which excuses our society accepts for breaking certain
types of promises.
15) Vogel bought a phone made by WiFi Communications, Inc. Three months later,
after recharging the battery through a power jack, Vogel picked up the phone only to
have it ignite in his hand. Suffering a severe burn, Vogel filed a suit against WiFi,
alleging that a design defect in the phone weakened the connection between the power
jack and the motherboard, causing the wiring to overheat and creating an unreasonable
safety hazard. Could Vogel succeed on his strict product liability claim? Explain.
16) Best Yogurt Corporation orders refrigeration equipment from Cold Storage, Inc.,
which has an unperfected security interest in the equipment until it is paid for.
Meanwhile, Best Yogurt takes out a loan from Dependable Credit, Inc., subject to a
security interest in Best Yogurt’s building and equipment, which Dependable Credit
perfects. Best Yogurt files a petition in bankruptcy for relief in a liquidation proceeding.
If the petition is granted, in what order will the creditors be paid?
17) At the beginning of a trial, only the defendant’s attorney makes an opening
statement.