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 obligors risk.
Maggie and Nate enter into a contract for the sale of a car, but Nate later refuses to
deliver the car. Maggie asks a court to order Nate to perform as promised. Ordering a
party to perform what was promised is
a. specific performance.
b. damages.
c. rescission.
d. beyond the courts authority.
Data Analytics, Inc., is a corporation engaged in the business of compiling, analyzing,
and marketing data. To accomplish its purposes, Data Analytics obtains financing, and
hires and fires employees. Laws and government regulations affect such business
activities as
a. hiring and firing decisions.
b. the manufacturing and marketing of products.
c. business financing.
d. all of the choices.
Camille, a tennis pro, convinces Dante, who has no athletic ability, that he has
considerable skill and induces him to pay Camille $1,000 for tennis lessons. When
Danterealizes the truth, he files a suit against Camille. Danteis most likely to recover on
the basis of
a. opinion.
b. fraud.
c. unconscionability.
d. none of the choices.
Like the bylaws of other corporations, the bylaws of Equipment Leasing, Inc.,
a. establish the operating name of the corporation.
b. establish the value and classes of corporate stock.
c. were adopted at its first organizational meeting.
d. were submitted for approval to the public official in charge.
Investment Holdings Corporation hires Jerilyn, a business appraiser, to locate
investment possibilities for Investment Holdings. Jerilyn learns of a salsa and hot sauce
manufacturing company available for a reasonable price, but neglects to tell Investment
Holdings. Most likely, Jerilyn
a. breached the agents fiduciary duties to the principal.
b. did nothing wrong.
c. failed to take advantage of a business opportunity.
d. assumed that the information was confidential.
Elsa participates in an investigation into possible violations of the Civil Rights Act of
1964 at Fabrication Foundry, Inc., where she works. As a result, Elsas employer
demotes her. Elsa can file a
a. harassment complaint.
b. retaliation claim.
c. constructive discharge claim.
d. disparate-impact discrimination claim.
MedBeat Inc., makes medical devices, including heart pacemakers. Nina, a heart
patient, files a product liability suit against MedBeat, alleging a warning defect with
respect to its pacemaker. In deciding whether to hold MedBeat liable, the court may
consider whether there is a foreseeable risk of harm posed by thepacemaker and
a. the omission of a warning renders the pacemaker not reasonably safe.
b. there is a reasonable alternative design.
c. MedBeat did not use due care in making the pacemaker.
d. Nina lacks insurance coverage.
Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior
and exterior of Minas house. If Mina decides to ratify the contract, she must affirm
a. all of the contract.
b. any part of the contract, with Lars liable to Nemo for the difference.
c. any part of the contract before performance begins.
d. any part of the contract at any time.
Ronelle, the human resources director for Small Business Solutions, Inc., attempts to
comply with the law in dealing with applicants and employees. One of the challenges
Ronellefaces is that the legality of an action is
a. always clear.
b. never clear.
c. only sometimes clear.
d. usually clear.
Georgebuys from Haul-U Corporation the exclusive right to use the Haul-U trademark
and sell and lease Haul-U-brand productsin a certain area. Their franchise agreement
requires George to pay certain administrative expenses. Their agreement may also
require George to pay a percentage of the franchisors
a. advertising costs.
b. personal expenses.
c. retirement income.
d. none of the choices.
Naomi tells Ogden, who has no knowledge of Shakespearean comedy, that she will
tutor him in the subject for $50. As an offer, this is
a. effective.
b. not effective because comedy is not a serious subject.
c. not effective because Naomis tutoring will be subjective.
d. not effective because Ogden has no knowledge of the subject.
Ripe Produce, Inc., and Southeast Asian Bistro & Market enter into a contract for the
delivery of locally grown fruits and vegetables. The parties use a standard Ripe Produce
form that contains some of the terms the parties agree on but not others. Some of the
produce spoils before it can be cooked, served, and eaten, or sold. Southeast Asian
refuses to pay for the spoiled goods.
Ripe Produce responds that it did not waive payment for spoiled goods in the parties
previous transactions. Ripe Produce is arguing that the court should take into account
a. the course of dealing.
b. the course of performance.
c. the usage of trade.
d. a rule of construction.
In Research & Development Companys suit against Structural Engineers, Inc.,
Research & Development wants to introduce evidence that it claims is relevant.
Relevant evidence is evidence that
a. establishes the degree of probability of a fact or action.
b. tends to disprove a fact in question.
c. tends to prove a fact in question.
d. all of the choices.
Octavio receives a catalogue fromPastry Dough, Inc., and a “personalized letter inviting
Octavio to buy any item at the advertised price. This is
a. an offer because of the “personalized letter.
b. an offer because there is no room for price negotiation.
c. an offer only if Octavio previously bought items from Pastry Dough.
d. not an offer.
Commercial Wholesale, Inc., conducts its operations unethically, which, when revealed,
will likely affect its
a. good will only.
b. profits only.
c. reputation only.
d. good will, profits, and reputation.
Karen is a judge hearing the case of Local Dispatch Co. v. National Transport Corp.
Applying the relevant rule of law to the facts of the case requires Karen to find cases on
pointpreviously decided cases that, in relation to the case under consideration, are
a. as different as possible.
b. as similar as possible.
c. at odds.
d. exactly identical.
Lisa brings a successful lawsuit against her employer Metal Mold & Die Corporation
for unlawful discrimination. Lisa may be awarded
a. back pay, but not retroactive promotions.
b. retroactive promotions, but not back pay.
c. damages, but not back pay.
d. back pay, retroactive promotions, and damages.
CallTalk Corporation, a smartphone and phone-time seller,chooses to use and register
“calltalk as its second-level domain. Later, CallTalks less successful competitor,
CellTalk Company, chooses to use and register “caltalk(an intentional misspelling of
“calltalk) as its second-level domain. Still later, Call&Talk, Inc., uses the domain name
“callltalk (also a deliberate misspelling of “calltalk) without CallTalks authorization, to
sell pornographic phone conversations.
Refer to Fact Pattern 9-1. By using a similar domain name to CallTalks, CellTalk is
most likely attempting to profit from its competitors
a. goodwill.
b. fair use.
c. license.
d. safe harbor.
In Fuel Injection Products & Service Corporations suit against Gears & Cylinders, Inc.,
the jury returns a verdict in Fuel Injections favor. Gears & Cylindersfiles a motion
asking the judge to set aside the verdict and begin new proceedings. This is a motion for
a. a judgment in accordance with the verdict.
b. a judgment on the pleadings.
c. a new trial.
d. judgmentn.o.v.
Garden Field Farms and Haute Gourmet Restaurant, Inc., enter into a contract for a sale
of lettuce. AfterGarden Field ships the lettuce but before Haute Gourmet receives it, the
buyer declares bankruptcy. Garden Field can stop delivery of the goods in transit
a. only if the quantity is deficient.
b. only if the quantity exceeds the contract amount.
c. only if the quantity is at least a truckload.
d. regardless of the quantity.
Petro Refining Corporation makes payments to potential customers, suppliers, and
others with whom they might do business, including foreign private companies and the
representatives of foreign labor organizations. If Petro knows that these payments will
be passed on to a foreign government, this practice is
a. illegal if the payments violate the Foreign Corrupt Practices Act.
b. legal if a third party acts as a “go-between.
c. legal if private parties are involved on both sides of the deal.
d. legal if the payments are intended to facilitate business.
A contract between Recreational Games & Rides, Inc., and Summer Fair Corporation
includes a provision excluding liability as a result of fraud. This provision is
a. enforceable because the parties are protected from liability.
b. enforceable because the parties consented to it.
c. enforceable if the parties have equal bargaining power.
d. not enforceable.
Medical Billing Collection Corporation and Naturopath Clinic make a deal for Medical
Billings services via electronic records. Under the UETA, an e-record is considered
received when
a. it enters the recipients processing system in a readable form.
b. the recipient is aware of its receipt.
c. the recipient is aware that it has been sent.
d. it leaves the senders control.
Arnie is a member of Bowling & Billiards, LLC, a limited liability company. Arnie can
participate in the firms management
a. only to the extent that he assumes liability for the firms debts.
b. only to the extent of his investment in the firm.
c. to any extent.
d. to no extent.
Selenas Fajitas, a fast food outfit, files a suit against the state of Texas, claiming that a
Texas state law violates the commerce clause. The court will agree if the statute
imposes a substantial burden on
a. a local government.
b. interstate commerce.
c. noneconomic activity.
d. the state.
Wendy works as a weather announcer for a TV station under the character name
Weather Wendy. Wendy can register her characters name as
a. a certification mark.
b. a trade name.
c. a service mark.
d. none of the choices.
Cellphones & Calltime, Inc., makes an offer to Delores to enter into a contract to work
as asalesperson for a certain base salary plus commission for ninety days subject to a
one-year renewal based on her performance. Delores accepts the offer. A valid contract
requires
a. a price and a subject.
b. a duration and termination provision.
c. an offer and an acceptance.
d. specific quality standards.
Roadbuilders, Inc., uses dynamite in its operations. Sky-Hi Fireworx, Inc., stores
explosives in its warehouses. Most likely liable under the doctrine of strict liability for
any injury caused by an abnormally dangerous activity will be
a. none of the choices.
b. Roadbuilders and Sky-Hi.
c. Roadbuilders only.
d. Sky-Hi only.
Dawson owns Evergreen, a complex under construction that will include commercial
and residential suites, as well as a parking garage. Dawson allows First Call
Construction, Inc., the contractor, to complete a stage of construction late. Thiswaives
Dawsons right to sue for
a. this delay only.
b. any subsequent breaches by First Call.
c. any future breaches by First Call or any subcontractor.
d. none of the choices.
Most courts apply the same principles to joint ventures as they apply to partnerships.
A service mark distinguishes products used by those in public service.
The United Nations Convention on Contracts for the International Sale of Goods
(CISG) is the uniform international sales law of countries that account for more than
two-thirds of all global trade.
Members of limited liability companiesare shielded from personal liability in many
situations.
Even during emergency situations, when the principal cannot be consulted, the agent
may not deviate from the principals instructions without violating the duty of
obedience.
The law governing limited liability companies is uniform.
Title VII of the Civil Rights Act of 1964 applies to employers with fifteen or less
employees.
All adhesion contracts are unconscionable.
Originally, the only goal or duty of a corporation was to maximize profits.
A franchisee is generally economically independent of the franchisors integrated
business system.
A warranty of title cannot be disclaimed.
In some states, misrepresentation of age is enough to prevent disaffirmance.
As long as a contract is personal in nature, all rights under the contract can be assigned.
Dissociation normally entitles the partner to buy his or her interest from the partnership.
Implied conditions are not understood to be part of an agreement but are found in the
express language of the agreement.
Anything that an agent obtains by virtue of the employment or agency relationship is
his or hers to keep.
When the harassment of co-workers creates a hostile working environment, an
employee may have a cause of action against an employer.
If a job applicant or an employee with a disability, with reasonable accommodation, can
perform essential job functions, the employer must make the accommodation.