1) Limited personal liability obviates the need to obtain for insurance for significant
business liability risks.
2) A merger involves the legal combination of two or more corporations, after which
both continue to exist.
3) A forged signature on a check has no legal effect as the signature of a drawer.
4) Intentional discrimination by an employer against an employee is known as
disparate-treatment discrimination.
5) Confusion of fungible goods results in the owners’ loss of their rights in the property.
6) A citation identifies the publication in which a legal authority can be found.
7) Employers can avoid liability for employment discrimination on the basis of
after-acquired evidence of an employee’s misconduct.
8) Merchants must issue a refund within a specified period of time when a consumer
cancels an order.
9) A party who has conferred a benefit on someone else unnecessarily can invoke the
principle of quasi contract to recover the cost.
10) Most employers cantreat their employees more or less favorably based on their
religious beliefs or practices.
11) A firm may be a monopolist even though it is not the sole seller in a market.
12) Federal law permits the sending of unsolicited commercial e-mail and does not
prohibit spamming activities.
13) Interrogatories are written questions for which written answers are prepared by a
judge.
14) 5.Paradise Footwear buys a franchise from Quadrangle Athletic Shoes Inc. This
relationship, like all other franchise relationships, is governed by
a.contract law.
b.no law.
c.the Franchise Disclosure Document, or FDD.
d.Article 2 of the Uniform Commercial Code.
15) Ripe Orchards, Inc., employs hundreds of seasonal and permanent workers, both
skilled and unskilled, in three states. Under federal immigration law, Ripe Orchards can
hire illegal immigrants
a.if either the employer or the immigrants file special forms.
b.only if the employer files a special form.
c.only if the immigrants file special forms.
d.under no circumstances.
16) 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.
17) AviatorsSource Corporation makes and sells aircraft parts. In most states, the
minimum number of directors that must be present before Aviators Source’s board could
transact its business is
a.all of the directors authorized in the articles or bylaws.
b.a majority of the number authorized in the articles or bylaws.
c.any odd number.
d.one.
18) Quentin questions whether there is consideration for his contract with Rainey to
exchange his performance with the Symphonic Saxophone Sextet for her payment of a
certain amount. To constitute consideration, there must be
a.a payment.
b.a performance.
c.a bargained-for exchange.
d.serious thought underlying each party’s intent to contract.
19) Tory borrows $10,000 from USA National Bank to remodel a room in her home.
This transaction is subject to
a.no federal law.
b.the Consumer Leasing Act.
c.the Consumer Product Safety Act.
d.the Truth-in-Lending Act.
20) Baxter obtains a check payable to his order from Chanel. For Baxter to negotiate
this order instrument to Darlene requires
a.indorsement and delivery.
b.assignment and a promise to pay.
c.presentment and dishonor.
d.good faith and value.
21) Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical
procedure. This contract is enforceable by
a.Jolie.
b.Jolie’s medical insurance company.
c.Keaton.
d.no one.
22) Herb’s Hot Dog Vending, Inc., enters into a contract to pay Idris for a business
survey and review of Herb’s competitors, which Idris delivers on August 1. Herb’s offer,
on the same date, to pay Idris is
a.a concurrent condition.
b.a novation.
c.tender.
d.mutual rescission.
23) A contract between Laser Maintenance, Inc., and Medical Vision Operation
Corporation contains a clause stating that any assignment is “void.” This ordinarily
prohibits
a.any assignment.
b.no assignment.
c.only an assignment of contract rights to personal services.
d.only an assignment that would change the obligor’s risk.
24) Babs sees an e-book reader on the porch of Coco’s house, takes the reader to her
home, and tells everyone she owns it. Danno, wielding a knife, forces Easter to give
him her smartphone, and runs away with it. Fritz breaks into Ginger’s apartment, takes a
laptop, and leaves. Hazel sells Idi an expensive wristwatch for a fraction of its value,
admitting that the watch is stolen property but claiming that she is not the thief. Which
of these acts are crimes, and what are the differences among them?
25) A warranty of title cannot be disclaimed.
26) One of the four requirements of a valid contract is an adequate price.
27) People who keep domestic animals are strictly liable for any harm inflicted by the
animals.
28) Generally, a contract must express its terms-no reasonable inferences are
permissible.
29) A debtor must be insolvent to file for bankruptcy relief.
30) Any breach discharges the nonbreaching party from the contract.
31) A price list is a form of invitation to negotiate or trade.
32) Every sale or lease of goods made by a merchant who deals in goods of the kind
sold or leased automatically gives rise to an implied warranty that the goods are fit for a
particular purpose.
33) Quentin wants to give Rowena a pearl necklace that he has in his safe deposit box at
Security Bank. The bank is closed for a holiday. Quentin gives Rowena a key to the box
and tells her to go to the bank after the holiday and take the necklace. Rowena does this.
The next day, Quentin dies unexpectedly. His heirs want the necklace. What type of gift
was this? Can Rowena keep the necklace?