Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit,
mortgage, and investment firm. Their agreement states that it is a breach of the
agreement for any partner to assign his or her interest to a creditor without the consent
of the other partners.
Bryn, Cornell, and Duke decide to admit Giselle as a new partner in Equity Lending.
Giselles liability for partnership debts incurred before her admission is
a. limited to her capital contribution to the firm.
b. limited to her personal assets.
c. nothing.
d. unlimited.
Melanie files an employment discrimination suit against Natural Resources Industries
Corporation under the Civil Rights Act of 1964 on a disparate-impact theory. To
succeed, Melanie must show that members of a protected class are adversely affected
by any of the following except the employers
a. practices.
b. procedures.
c. tests.
d. seniority system.
Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of
Bolivia seizes the property for an illegal purpose without paying just compensation.
This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Destiny and Enzo engage in a business transaction for the creation and baking of a cake
and other pastries and desserts for Destinys wedding dinner and reception. When a
dispute arises,Destiny initiates a lawsuit against Enzo by filing a complaint. If Enzo
files a motion to dismiss, and the court denies it,
a. Destiny will be given time to file an amended complaint.
b. Destiny will have a judgment entered in her favor.
c. Enzo will be given time to file another response.
d. Enzo will have a judgment entered in his favor.
Gladys enters into a contractwith Hydraulic Fracturing, Inc., for a sale of the oil beneath
Gladyss 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.
Arnold enters a Bunco tournament hosted by Bunco Players Association (BPA). During
the event, Arnold signs an agreement that stipulates BPA will pay all of the winners fees
and expenses to attend the Bunco World Games, but if the winner does not attend, he or
she agrees to repay the funds. Arnold wins and BPA pays his expenses, but hedoes not
go to the World Games. In BPAs suit to recover the expended funds, a court is most
likely to rule that the agreement is
a. an invalid modification of the tournament contract between Arnold and BPA.
b. bindingto the extent that the parties ‘split the difference.
c. not binding because it was signed “during the event.
d. binding and Arnold must repay the funds.
Noah and Orin do business as partners in Personnel Providers, an employment agency.
In most states, for purposes of suing and being sued, Personnel Providers would be
treated as
a. an aggregate of the individual partners.
b. a natural person.
c. an entity.
d. a non-existent party.
Bernadette enters into a contract to operate a Caramel Coffee franchise, which Caramel
Coffee agrees to support as long as Bernadette maintains her business license. Caramel
Coffees duty to perform is
a. not a condition.
b. a condition precedent.
c. a concurrent condition.
d. a condition subsequent.
In 2014, Kelly writes Like the Wind, a novel about marathoners and ultramarathoners.
Kelly does not register the work with the appropriate government office. Under federal
copyright law, Kellys work is protected
a. for ten years.
b. for twenty years.
c. for the life of the author plus seventy years.
d. forever.
Digital Analytics, Inc., considers the impact of its corporate decisions on various groups
and often acts in the interest of a group that has a greater stake in a decision than
Digitals shareholders. This approach is most likely to attract potential employees who
are
a. investors focused on short-term profits.
b. older professionals.
c. information technology specialists.
d. recent college graduates.
Investment Sales Corporation wants to monitor its employees electronic com-
munications. Investment Saless best course of action to avoid liability under laws
related to employee monitoring is to notify
a. no one.
b. itsemployees.
c. its clients.
d. the public generally.
Haute Dogs, Inc., sells a franchise to Ilenes Cuisine, a lunch truck. Ilenes Cuisine is
a. a franchisee.
b. a franchisor.
c. an agent.
d. a principal.
Emylee, an employee of Farm Supplies, Inc., files a sexual-harassment suit against
Gowan, her supervisor. Emyleewins. Farm Supplies may also be liable if it had
effective harassment policies and complaint procedures, and
a. none of the employees followed them.
b. Emylee followed them.
c. all of the employees were aware of them.
d. Gowan followed them.
Economy Bank issues a letter of credit in favor of Finish & Refining Company, a U.S.
firm, to facilitate an international sales contract to buy resources from Global Mining,
Ltd., a British company.
Economy Bank is bound to
a. make sure that the parties perform the contract.
b. verify with Finish & Refining that the transaction has been completed.
c. make payment when Global Mining presents the proper documents.
d. payGlobal Mining whenever it asks to be paid.
Neville, a member of a protected class, applies for a job with Origami Paper Products
Corporation, but fails the companys employment test and is not hired. Nevillebelieves
that the test has an unintentionally discriminatory effect. If so, this is
a. reverse discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
Business Computer Solutions Education Service enters into a contract to employ
Chandra as an instructor for two years to begin June 1. One month before the term
begins, Business Computer is underbid by a competitor and loses a major client, Debt
Consolidation Corporation. Business Computer now refuses to hire Chandra.
Business Computers repudiation of its contract to employ Chandra is most likely
a. a material breach.
b. a minor breach.
c. a condition subsequent.
d. not a breach.
Jayne develops a new color of lipstick. To market her lipstick, Jayne uses a computer
design program to show a famous model using Jaynes lipstick. Jayne does not ask the
models permission. The model can sue Jayne for
a. battery.
b. fraudulent misrepresentation.
c. defamation.
d. appropriation.
Gilbert promises to buy Hadleys iPod for $75. Hadley is
a. anofferee.
b. an offeror.
c. a promisee.
d. a promisor.
Build-It ConstructionCompany contracts with Classic Beverage Corporation to build
Classic Beverages corporate headquarters.Build-It Construction contracts with
Dependable Tools & MaterialsInc. for construction supplies but refuses to pick up the
order. Meanwhile, Classic Beverage hires Elmo, a certified public accountant, to work
in its cost-accounting division as an employee, with no authority to hire or supervise
others. Elmoasks Fayette, an outside experienced accountant, to advise him on certain
accounting procedures but fails to pay Fayettefor the service. Classic Beverage also
contracts with Gloria, a salesperson, to solicit orders for its products in a designated
territory. Gloriaobtains an order from Highpoint Concessions, Inc., which is assured the
order will be filled soon. But Gloriadoes not follow through with the paperwork and
fails to submit the order to Classic Beverage. Highpoint Concessionssuffers a loss.
Dependable Tools, Fayette, and Highpoint Concessionsclaim Classic Beverage is liable
under agency law. Discuss fully whether an agency relationship was created by Classic
Beverage with Build-It Construction, Elmo, or Gloria.
After an accident with a vehicle licensed to Guardian Security Company, Heidi signs a
covenant not to sue Guardian Security for damages in a tort action if it pays for the
damage to her car. This covenant is
a. a bar to recovery only if Guardian Security pays.
b. an illusory contract.
c. barred by the preexisting duty rule.
d. barred by the doctrine of promissory estoppel.
GR8 Daze Products, Inc., and Hot Springs Spas Stores enter into a contract for a sale of
hot tubs. Under a shipment contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before shipping them.
d. place the goods into the hands of a carrier.
Data & Data Accountants, a private employer, handles bookkeeping for small
employers. In most circumstances, with exceptions, federal law clearly prohibits Data
& Data from subjecting its employees to
a. job-skills tests.
b. monitoring of business communications.
c. drug tests.
d. lie-detector tests.
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.
Drake enters into a contract with Eve, who claims to have access to a stock-trading
algorithm that will multiply an investment many times over. When the results do not
match this promise, Drake learns that Eve does not have access to any unique software
and files a suit against her, alleging fraud. Proof of an injury is required to
a. recover damages.
b. rescind the contract.
c. undo Eves influence.
d. punish the defendant.
Recent advances have fostered the growth of a relatively new industry to profit from
crime. Statistics show that criminals have learned it is easier, less risky, and more
profitable to
a. rob banks using traditional means.
b. steal via the Internet.
c. engage in legitimate activities such as stock trading via the Internet.
d. selltheir stories to movie, music, and TV producers or video-game makers.
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.
Leon contracts to install automatic watering troughs in Kendalls dairy barn. Leon then
becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable
and never shows up to install the troughs. Kendall can sue
a. no one.
b. Jake only.
c. Leon only.
d. Jake or Leon.
Sweet Selections is a general partnership that sells candy, cards, and flowers. Sweet
Selections has ten partners. Jill and Amy each have a 25 percent interest in the
partnership. All the other members have a 10 percent interest. To pass a management
decision
a. a majority of the partners must agree to the decision.
b. both Jill and Amy must agree to the decision.
c. Jill or Amy must agree to the decision.
d. 30 percent of the partners must agree to the decision.
Following negotiations, Office Park, Inc., enters into an informal contract with Quality
Janitorial Company for custodial services for Office Parks buildings. This means that
the parties contract
a. requires no special form.
b. is freely open to either partys interpretation.
c. is subject to change by either party, within reason.
d. is not yet completely formed.
SodaBubbles Corporation makes and sells soft drinks. Talia buys and drinks a Soda
Bubbles beverage, which proves defective and injures her. One justification for holding
Soda Bubbles strictlyliable for the harm caused to Taliaby its defective product is that
a. Soda Bubbles is making a profit from its activities.
b. Talia is a person, not a business.
c. making and selling products are abnormally dangerous activities.
d. Soda Bubbles and Talia are in privity.
Raven, the owner of Strawberry Fields, contracts to sell its harvest to Tender Fruits, Inc.
When Raven refuses to perform, Tender Fruits files a suit to enforce the contract. Raven
and Tender Fruits are in a state that does not recognize the doctrine of
unconscionability.To defend successfully against enforcement of the contract on similar
grounds, Raven might rely on traditional notions of
a. fraud.
b. materiality.
c. mistake.
d. value.
Larue buys aniPod for $150 and a new laptop for $1,200, and signs a one-year
employment contract for a $4,800 monthly salary to start at the beginning of the next
month. The Statute of Frauds covers
a. the employment contract, and the laptop, and iPod purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and iPod purchases only.
Location! Realty, LLC, is a limited liability company. Like other LLCs, for federal
jurisdictional purposes, Location! Realty is most likely a citizen of
a. all states.
b. every state in which its members are citizens.
c. no state.
d. only the state in which it was formed.
Either party may appeal a jurys verdict but only the defendant may appeal a judges
ruling.
Contract law does not distinguish between promises that create only moral obligations
and promises that are legally binding.
The key consideration in determining whether an employment manual creates an
implied contract is the employees reasonable expectations.
A negotiable instrument is a formal contract.
In corporate law, acts of a corporation that are beyond its express or implied powers are
de facto orde jure acts.
During collective bargaining, the employer and the union are obligated to reach an
agreement.
A primary obligation is a promise to pay anothers debt only if that party fails to pay.
Lori claims that she suffered injuries in an auto accident with an uninsured vehicle.
When her insurerMiserly Insurance Companydoes not pay her claim, she files a suit
against Miserly for breach of contract. The insurer files a motion to compel Lori to
comply with a discovery request for everything that she has posted on Facebook,
Twitter, and other social media sites since the accident. Why would the insurer want to
obtain such material? What might Lori argue in opposition to the motion? Should the
court grant the defendants request? Discuss.
A liquidated damages provision specifies that a certain amount is to be paid in the event
of a future default or breach of contract.
A license permits the use of anothers intellectual property for certain purposes.
Under the UCC, an offeror must be notified within a reasonable time that the offeree
has accepted.
An agents authority to act on behalf of a principal must be apparent to be real.
Preferred stock is included among the liabilities of a business because it is equity.
Production techniques arenot trade secrets.
Manufacturers must use due care in selecting the materials to be used in a product.
Rescission is an equitable remedy used when the parties have imperfectly expressed
their agreement in writing.
A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the
contact, but may not seek damages.
A party seeking to recover compensatory damages cannot also recover incidental
damages.
Carney & Deb, Accountants, perform a variety of tasks for their clientsfinancial
statements and tax returns, for example. To accomplish these tasks, Carney & Deb
collects their clients personal and financial information. Carney & Deb can store the
personal and financial information of its clients on any electronic device, including a
smartphone, a tablet, a flash drive, a laptop, and a copier. When Carney & Deb
upgrades its storage media, the information is transferred between devices. Does
Carney & Deb have an ethical obligation to its clients with respect to this information?
If so, what are the ethics in the situation?
General descriptions take precedence over inconsistent samples.