Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts
on the most highly trafficked street in Metro City. Linc buys the property and then
discovers that the street has no more traffic than any other in its vicinity. Linc is most
likely a victim of
a. opinion.
b. fraud.
c. mistake.
d. nothing.
Answer:
Emylee, an employee of Farm Supplies, Inc., files a sexual-harassment suit against
Gowan, her supervisor. Emylee wins. 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.
Answer:
Ingmar asks Jessie to contract with Jessie’s high school classmates to babysit Ingmar’s
new baby. Jessie orally agrees to do so. This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not an agency relationship.
Answer:
Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale
Distributors. When Genovese runs into the types of difficulties that contracÂtors
ordinarily confront, Hawthorne agrees to pay extra compensation to overÂcome them.
Regarding the agreement to pay more, a court would likely
a. enforce it.
b. rescind it.
c. order the parties to renegotiate it.
d. not enforce it.
Answer:
Sea & Surf Corporation makes sailboards, which are bought and distributed by Tropical
Marketing Company to UV Sports Stores, Inc., which sells them to consumers. Wen is
inÂjured while using a Sea & Surf board that he bought from UV Sports. In a product
liabilÂity suit based on strict liÂability, Wen may recover from
a. Sea & Surf only.
b. Sea & Surf, Tropical Marketing, or UV Sports.
c. UV Sports only.
d. none of the choices.
Answer:
Investment Sales Corporation wants to monitor its employees’ electronic comÂ-
munications. Investment Sales’s best course of action to avoid liability under laws
related to employee monitorÂing is to notify
a. no one.
b. its employees.
c. its clients.
d. the public generally.
Answer:
Lucy takes out a student loan from Midtown Bank. When she fails to make the
scheduled payments for six months, Midtown advises her of further acÂtion that it will
take. This violates
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Answer:
Jenna files a civil suit against Keshia. To succeed, Jenna must prove her case
a. beyond a reasonable doubt.
b. by a preponderance of the evidence.
c. by indisputable proof.
d. to the extent promised in her attorney’s opening statement.
Answer:
Mexican employees of Farmacos Ltd., a subsidiary of Global Pharmaceuticals, Inc., a
U.S. firm, offer cash and gifts to regional Mexican government officials to obtain their
approval of favorable contracts. Steps that company managers might take to end the
practice and to influence other employees not to engage in similar conduct include
a. termination of the employees who offered the bribes.
b. mandatory antibribery training for all employees.
c. audit of company expenses to expose illegal and unethical payments.
d. all of the choices.
Answer:
Emily and other users of Facebook and other social networking sites post messages,
images, and other materials on these sites. Social media posts are routinely included in
discovery in litigation to
a. establish a person’s intent.
b. establish what a person knew at a particular time.
c. reduce damages awards.
d. all of the choices.
Answer:
Sybil agrees with Tyrone and other professional athletes to sign contracts with
promoters and others on the athletes’ behalf. Sybil is
a. an agent.
b. an employee.
c. an employer.
d. a principal.
Answer:
Grease & Lubricants Inc. makes its products without required pollution control
technology, causing a discharge of oily waste into the nearby Holly Lake. This activity
can reÂsult in
a. a criminal fine or imprisonment only.
b. a criminal fine, imprisonment, or an injunction only.
c. a criminal fine, imprisonment, an injunction, or damages.
d. an injunction only.
Answer:
Badal is an employee of Cloud Computing Corporation. The federal government raids
the firm and determines that Badal and many of his co-workers are illegal immigrants,
whom are then detained and later deported. Derry, Badal’s manager, is imprisoned for
federal law violations related to the immigrants’ hiring. Unable to attract replacement
workers at a competitive wage, Cloud Computing shuts its doors. Reasons for
reforming U.S. immigration laws include
a. the disruption of business caused by federal raids on employers.
b. the economic conditions prompting immigration to the United States.
c. the imprisonment of those who violate U.S. laws.
d. the low wages offered by employers for jobs that should pay more.
Answer:
Fact Pattern 17-1
Jumbo Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the
Jumbo Juice trade name as a member of a select group of dealers that engage in retail
juice sales.
Refer to Fact Pattern 17-1. Jumbo Juice makes earnings claims to potential investors.
For those claims, the franchisor
a. can have a hypothetical basis.
b. must have a reasonable basis.
c. must have an actual basis.
d. can have any or no basis.
Answer:
Bliss County Zoning Commission demands that Commercial Development, Inc., the
private developer of Discount Stores, allocate space for parking and take other
measures to manage traffic. This is
a. a restrictive covenant.
b. inverse condemnation.
c. a zoning restriction.
d. a zoning variance.
Answer:
Qiana and Rex take title to a Shakes n’ Burgers restaurant in such a way that if one dies,
the other will be the sole owner. Qiana and Rex own the restaurant as
a. co-owners in fee simple.
b. joint tenants.
c. tenants by the entirety.
d. tenants in common.
Answer:
The Environmental Protection Agency has not concluded that greenhouse gases,
including carbon dioxide emissions, constitute a public danger.
Answer:
A trade name can be protected under the common law, but only if it is unusual or
fancifully used.
Answer:
If an employee presents false documentation of eligibility to work in the United States,
his or her employer is subject to deportation.
Answer:
In putting together a repayment plan under Chapter 13, a debtor must apply the means
test to identify the amount of disposable income that will be available to repay
creditors.
Answer:
Corporate officers and directors may be held criminally liable for the actions of
employees under their supervision.
Answer:
The duration of a franchise is a matter determined by federal or state statutes.
Answer:
To gain authorization for hiring a foreign worker, an employer must show that no U.S.
worker is qualified, willing, and able to take the job.
Answer:
Ordinarily, a waiver by a contracting party will not operate to waive subsequent,
additional, or future breaches of contract.
Answer:
When the meaning of a statute’s language is unclear and an agency interprets it, a court
need not follow the interpretation even if it is reasonable.
Answer: