Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their
profits to Protestant churches that provide certain services to persons whose income is
below the poverty level. Price-LoMart files a suit to block the laws enforcement. The
court would likely hold that this law violates
a. no clause in the U.S. Constitution.
b. the establishment clause.
c. thefree exercise clause.
d. thesupremacy clause.
Dairy Products, Inc., and Eden Farms Corporation form a joint venture to make and
test-market Frosty Ice Cream. A joint venture is usually formed for
a. an implied duration of not more than six months.
b. a single transaction or project.
c. a stated duration of not more than one year.
d. a perpetual existence.
Oliver slips and falls on Port Harbors Tour Boat and is injured. Oliver files a suit
against Port Harbor for $500,000. If Oliver is 20 percent at fault and Port Harbor is 80
percent, under the “50 percent rule comparative negligence principles, Oliver would
recover
a. $0.
b. $250,000.
c. $400,000.
d. $500,000.
Robin claims that her contract with Stroud for tennis lessons is voidable. If their
contract is avoided,
a. both parties are released from it.
b. both parties must fully perform their obligations under it.
c. both parties will agree to a wholly different contract.
d. a wholly different contract is imposed “as if the parties had agreed.
Drill Makers, Inc., and Edge Mine & Mill Supply Stores enter into a contract for a sale
of mining drill bits. The contract indicates that the price includes transportation costs to
a specific destination by including the term
a. C.I.F.
b. delivery ex-ship.
c. F.A.S.
d. F.O.B.
RiversideRanch is a horse breeding facility. Steed Stables is a customer looking for a
new stallion for its breeding program. Riversides representative Tomas shows Steed a
stallion that he says is very fertile and can easily breed twenty mares per year. This
statement is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
Secure Investments, Inc., a U.S. firm, expands into international markets through a joint
venture. In this situation, Secure Investments owns
a. all of the operation.
b. as much of the operation as SecureInvestmentswants.
c. none of the operation.
d. part of the operation.
Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting.
Grande Floors, a merchant who deals in goods of the kind sold, makes express
warranties in connection with the sale. Under the UCC, at the time a contract is formed,
an express warranty can be disclaimed or modified
a. by clear, conspicuous language called to the buyers attention.
b. by implied affirmations of fact relating to the goods.
c. in any way that the seller sees fit for the ordinary purpose.
d. in no way.
Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical
procedure. This contract is enforceable by
a. Jolie.
b. Jolies medical insurance company.
c. Keaton.
d. no one.
Renew Turf, Inc., enters into a contract with Sports Park to provide surface material for
Sports Parks baseball fields by October 1 for a series to begin October 5. The contract
specifies an amount to be paid if the contract is breached. This is a liquidated damages
clause if the amount is
a. meant to pay for additional liquid sealant in the event of damage.
b. a reasonable estimate of the loss on a breach.
c. designed to penalize the breaching party.
d. intended to quickly provide cash to the nonbreaching party.
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 Omnis 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.
Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for a
a. bilateral contract.
b. unilateral contract.
c. void contract.
d. unenforceable contract.
Ruta is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee. The owner
announces that some employees will be discharged. Ruta tells Tim that for sexual favors
she will give him an excellent performance review and recommend a raise. This is
a. harassment on the basis of sexual orientation.
b. hostile-environment harassment.
c. not harassment.
d. quid pro quo harassment.
Johan steals Krispins car and sells it to Lemar. Krispin can recover the car from Lemar
a. only if Lemardid not know that the car was stolen.
b. only if Krispin pays to Lemar the amount that Lemar paid to Johan for the car.
c. only if Lemarknew that the car was stolen.
d. under any circumstances.
Jonah tells Levi he will give him an Xbox if Levi does Jonahs chores for a month. Levi
promises to do the chores. Jonah and Levi have formed a
a. a bilateral contract.
b. aformal contract.
c. a unilateral contract.
d. no contract.
Omar and Penn want to discharge their contract by executing a new agreement with
performance different from what they originally promised. They can best accomplish
this by
a. a mutual agreement to rescind.
b. an accord and satisfaction.
c. a novation.
d. an alteration of the original contract.
Inan effort to reduce traffic, Bay City enacts an ordinance that allows only a few
specific street vendors to operate in certain areas. A court would likely review this
ordinance under the principles of
a. the commerce clause.
b. the equal protection clause.
c. the due process clause.
d. the First Amendment.
Eleanora offers Flossy the amount of an investment in Flossys start-up business venture
if she marries Eleanoras son Glenn. This promise is enforceable
a. only if it is in writing.
b. only if the amount of the investment is more than $500.
c. only if Glenn agrees to marry Flossy.
d. under no circumstances.
Megan reaches into Neds pocket and takes his walletwithout his consent and without
his immediate awareness. Unlike robbery, picking pockets does not involve
a. breaking and entering.
b. force or fear.
c. large amounts of cash.
d. weapons.
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. After a final determination in the case of
Martinv. 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.
Nguyen has her family buy and ship textbooks legally produced in Vietnam to her for
resale in the United States. The U.S. owners of the copyrights on the items file a suit
against Nguyen, alleging infringement. Applying a decision of the United State
Supreme Court in a similar case, the court in this case is most likely to rule in favor of
Nguyen on the basis that
a. U.S. copyright law does not apply to works that are made outside the United States.
b. Nguyen offered “good prices for the books.
c. Nguyen importedthebooks “with the authority of the owner(her family).
d. the first sale doctrine applies in these circumstances.
Digital Storage, Inc., offers to sell provide cloud-computing services to Entrepreneur
Enterprises, Inc., but mistakenly transposes some of the digits in the price so that
$15,400 appears in the offer as $14,500. Entrepreneur Enterprisesaccepts the written
offer.
Entrepreneur Enterprisesbest argument in favor of enforcement of the contract is that
a. a bilateral mistake does not afford relief from a contract.
b. a mistake of value does not afford relief from a contract.
c. a unilateral mistake does not afford relief from a contract.
d. the price was below the prices of comparable devices.
Shasta offers to sell a used hay baler to Roberto, but receives a letter of acceptance from
Quito, who has no relation to Roberto. A valid contract exists between
a. Shasta and Roberto.
b. Shasta and Quito.
c. Roberto and Quito.
d. none of the choices.
Farmland County Bank offers to lend money to Gino, the owner of Home Hardware
Store, at 15 percent interest. Before Gino accepts, a state statute is enacted prohibiting
loans at rates greater than 12 percent. Gino and the bank have
a. a contract for a loan at 15 percent interest.
b. a contract for a loan at 12 percent interest.
c. a contract for a loan at 0 percent interest.
d. no contract for a loan.
Fresh Meds, Inc., a U.S. firm, contracts with Gong, Ltd., a Hong Kong firm, allowing
Gong to use and profit from Fresh Medspatented products. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
On behalf of Bobble Head Manufacturing Company, Carmela types her name at the
bottom of an e-mail purchase order and submits the order to Designer Parts Company.
Under the UETA, Carmelas typed name qualifies as
a. a ‘signature.
b. a statement of future intent.
c. a partnering agreement.
d. a preliminary negotiation.
California Produce Company hires Drew to work on California Produces shipping
dock, checking outgoing loads and dispatching the companys drivers. With respect to
California Produce, Drew is most likely
a. an agent.
b. an independent contractor.
c. a principal.
d. awork for hire.
Island Breeze Company designs and makes desk, window, and ceiling fans. In a product
liability suit based on negligence, Island Breeze could be liable for violating its duty of
care with respect to all of the following except
a. the design of the fans.
b. theproduction process used to make the fans.
c. thewarnings on the labels of the fans.
d. a consumersunforeseeable misuse of a fan.
Marcus files a suit against Naomi in an Ohio state court. Naomis only connection to
Ohio is an ad on the Web originating in Pennsylvania. For Ohio to exercise jurisdiction,
the issue is whether Naomi, through her ad, has
a. a commercial cyber presence in Ohio.
b. conducted substantial business with Ohio residents.
c. claimed to be a resident ofOhio.
d. solicited virtual business in Ohio.
Garden Tool Company makes chain saws. Hadrian is injured while using a Garden Tool
saw and sues the company for product liability based on negligence. To win, Hadrian
must show that
a. Garden Tool did not use due care with respect to the trimmer.
b. Garden Tool used puffery in its advertising.
c. Hadrian was not experienced in the use of trimmers.
d. Hadrian was in privity with Garden Tool.
Odina signs a covenant not to compete with her employer, Penultimate Sales
Corporation. A court decides that the covenant is overly restrictive. Depending on the
jurisdiction, the court will likely
a. enforce it as written so as not to undercut the freedom of contract.
b. enforce it but evaluate its effects over time.
c. reform its terms to prevent any undue burden.
d. refuse to enforce it unless Penultimate pays a fine to the court.
Reality Financial Corporation, a U.S. firm, files a suit against Switzerland in a U.S.
court. Switzerland claims foreign sovereign immunity. Under the Foreign Sovereign
Immunities Act
a. Reality Financial must show that Switzerland is not entitled to sovereign immunity.
b. Switzerland must show that it is entitled to sovereign immunity.
c. the court must dismiss the suit without any showing.
d. the court may hear the suit but its decision will have no effect.
Iago believes that he is a victim of a form of employment discrimination that falls under
the Civil Rights Act of 1964. Compliance with this statute is monitored by
a. employees and job applicants, not an administrative agency.
b. employers and businesses, not an administrative agency.
c. the courts and Congress, not an administrative agency.
d. the Equal Employment Opportunities Commission.
Avatar, Inc., agrees to deliver t-shirts emblazoned with video game characters for a
certain price to Bling Bling Corporation. To constitute a contract, the terms of this deal
a. must all be express.
b. must all be implied.
c. may be express, implied, or a mixture of both.
d. may be express or implied, but not both.
Brett boards her horse Charley at Dallass Equestrian Stables. Brett sells the horse to
Flem and tells Dallas, “I sold Charley to Flem. Dallas says, “Okay. That night, Charley
is kicked in the head by another horse and dies. Who suffers the loss?
When a franchise agreement contains a notice-and-cure provision, a franchisees breach
of the duty of honesty and fidelity is not enough to allow the franchisor to terminate the
franchise.
Erin contracts in writing to sell her Ford-brand pick-up truck to Garth for $10,500. Erin
agrees to deliver the truck on Friday, and Garth promises to pay the $10,500 on the
following Monday. On Thursday, Garth tells Erin that he changed his mind and will not
buy the truck. Over the weekend, Garth changes his mind again and tenders $10,500 to
Erin on Monday. Erin has not sold the truck to another party but refuses the tender and
refuses to deliver. Garth claims that Erin has breached their contract. Erin contends that
Garths repudiation released her from her duty to perform under the contract. Who is
correct, and why?
When an agreement is ambiguous as go whether it is a shipment or a destination
contract, courts will normally presume that it is a destination contract.
Ethics is based more on research than judgment.
Essentially, adequacy of consideration concerns the fairness of the bargain.
In a limited number of instances, the UCC presumes that special business standards
ought to be imposed on merchants because of their relatively high degree of
commercial expertise.
In certain circumstances, bargains are so oppressive that the courts relieve innocent
parties of part or all of their duties.
Law enforcement uses social media to detect and prosecute criminals.
Labor law regulates the circumstances and conduct of strikes.
A member of a limited liability company (LLC) has the power and the right to
dissociate from the LLC at any time.
If, before the time for contract performance, one party clearly communicates to the
other the intention not to perform, the other party must wait to see if the repudiating
party will decide to honor the contract despite the avowed intention to renege.
The UETA does not apply to all writings and signatures.
The rights of a third party beneficiary under a contract vest if the third party materially
changes his or her position in justifiable reliance on the promise.
The breadth of the commerce clause permits the government to legislate only in areas in
which Congress has explicitly been granted power.
For accord and satisfaction to occur, the amount of the debt cannot be in dispute.
To have standing to sue, a party must have complaining sufficient stake in a matter to
justify seeking relief through the court system.
After both sides have rested their cases, only the plaintiffs attorney makes a closing
argument.
A buyers failure to cover will bar him or her from using any other remedies available
under the UCC.