Archives: Quiz

A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian. Later, without Inez’s knowledge, Huck signs a contract to sell his farm to Kyle for its real market value. The contract is a. enforceable if Huck comprehended […]

Guard Personnel Company is charged with using hiring practices that do not meet requirements set by the Transportation Safety Administration (TSA). The administrative law judge orders Guard to comply with the TSA’s regulations. Guard may a. appeal to the commission […]

Jean buys a bike from Mike’s Bike Shop. She wants to make sure that there is a warranty of title. Jean a. does not need to do anything because warranties of title arise automatically in most sales contracts. b. must […]

Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information leading to the apprehension of a certain criminal. CCS could normally terminate […]

Sarah believes that she was rejected for a position at Trekking Travel Agency due to her race. Sarah files a suit against Trekking Travel Agency under Title VII on the basis of disparate-treatment discrimination. Sarah must show all of the […]

James and Will enter into an oral contract on May 1 under which James agrees to deliver a collection of exotic wines by April 30 of the following year. This contract is enforceable by a. James only. b. Will only. […]

Colleen is intoxicated, but still mentally capable of understanding the consequences of her actions when she signs a contract to sell the rights to her latest novel to Addie. The contract is a. enforceable only if Colleen does not attempt […]

Evermore Corporation and Trendy Goods, Inc., enter into a contract. To be enforceable, the contract must include a. no particular signatures. b. the signatures of all parties to the deal. c. the signature of the party against whom enforcement is […]

Albert wants to build a new house, but he needs to borrow money to do so. Albert should obtain a. a balloon mortgage. b. an interest-only mortgage. c. a subprime mortgage. d. a construction loan. Nimble Numbers Accounting Corporation, a […]

Cara is a bankruptcy trustee. As a bankruptcy trustee, Cara cannot a. cancel fraudulent transactions made by the debtor within two years of the filing of the petition. b. ask the court for a writ of execution. c. avoid preferences. […]

Wrugged Woolens, Inc., a U.S. corporation, sets up a specialized marketing organization in Scotland by appointing a foreign agent. This is called a. direct exporting. b. indirect exporting. c. a joint venture. d. piracy. To obtain office supplies for All-Care […]

Sonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Jana and sends $1,500 as a down payment. When Sonny sends Jana the rest of the price, she refuses to ship the collection. Sonny should seek a. […]

With a bill of lading, Cartage Common Carrier Company acknowledges possession of certain goods and contracts to deliver them. Cartage is a. a bailee. b. a buyer in the ordinary course of business. c. a good faith purchaser for value. […]

Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the “best one ever made.” This is a. fraud if the statement is the truth. b. fraud if Jim […]

Richard suspects his supervisor of unethical accounting practices. However, he does not want to lose his job if he reports the supervisor and the supervisor finds out who reported him. An important feature of online reporting systems like EthicsPoint is […]

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Total World Sports, a U.S. wholesaler of Suisse’s products. U.S. courts will apply U.S. antitrust laws if a. the agreement was made in Switzerland. b. […]

Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative agency) issues rules, the Southeast Financial Institutions Association (a private organizations) issues instructions, South Valley Bank posts a memo with orders for its employees, and Tina tells her co-worker […]

To obtain a business license, Bess writes a check to a certain state agency. Bess is a. the drawee. b. the drawer. c. the indorser. d. the payee. The payment of Eden’s debt to Flem is guaranteed by Eden’s personal […]

Kendall executes a separate written instrument to amend her prior will. This separate document is a. a bequest. b. a codicil. c. a devise. d. a holographic will. Kayla puts an item in an auction with reserve. Kayla is the […]

A court may rule contrary to a precedent if a. the court decides that the precedent is incorrect. b. the court decides that the precedent is inapplicable. c. the judge does not like the precedent. d. (a) and (b) Ludwig […]

Ada is the maker of a note, on which Bart is secondarily liable. Cash & Credit Company (C&C) is the current holder of the note. Bart will be obligated to pay the note if a. Ada defaults on the note. […]

Fact Pattern 38-1 Nika owns land in Ohio. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses. Refer to Fact Pattern 38-1. Nika’s ownership interest […]

The E-Sign Act does NOT preempt the uniform version of the Uniform Electronic Transactions Act (UETA). Kasper, the owner of Lakeview Farm, and Milt, the tenant of the farmhouse on the property, may create a fixed-term tenancy by a. deed. […]

Joli, acting within the scope of her authority for the Cake Bake Shop, contracts with Valley View Berry Farms to buy an assortment of fruit. Cake Bake is liable on the contract, and Joli is not, if Cake Bake is […]

Homestead Insurance Company tells its customer Teresa that she need not respond to questions about her national origin or race on her insurance application. Teresa provides the information anyway. Homestead a. can use the information to avoid its obligations under […]

Draco agrees to assume Mira’s debt to NuSales Corporation. Draco does not get any personal benefit for the agreement. To be enforceable, the promise must be in writing if the debt is for a. $50. b. $500. c. $5,000. d. […]

Shelby offers to make digital copies of Relay Company’s business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay’s acceptance by e-mail will be considered effective when a. received. b. sent. c. followed up by […]

Philip purchases ten lawnmowers through a sale or return contract. He plans to resell the lawnmowers in his garden supply store. The contract specifies that Philip must return the lawnmowers within six months if he decides that he does not […]

The payment of John’s debt to Kirsten is guaranteed by John’s personal property. Kirsten is most likely to perfect her interest by a. attaching a bright label to John’s property. b. calculating the precise amount of John’s debt. c. correcting […]

Like other manufacturers and sellers, Happy Household Products Company packages its products with labels. Under federal law, such labels must be a. accurate and use easily understood words. b. bright and feature eye-catching colors. c. graphically distinctive and well-designed. d. […]

Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000. On April 30, Little cancels the contract. Kris finds another job during May but earns only $3,000. Kris files a suit against Little. As compensatory damages, Kris […]

A contract between Lou and Mike requires a transfer of stolen goods for counterfeit currency. This contract is a. enforceable. b. void. c. voidable at the option of either party. d. voidable at the option of the party having less […]

Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with this statute is monitored by a. employees and job applicants, not an administrative agency. b. […]

The Employee Polygraph Protection Act of 1988 prohibits employers from doing all of the following except a. requiring or causing employees or job applicants to take lie-detector tests. b. using, accepting, or referring to, or asking about the results of […]

Lizzie, a clerk at a Movies Unlimited store, takes a DVD player from the store without permission. Lizzie is liable for a. appropriation. b. benefiting an employee. c. conversion. d. wrongful interference with a business relationship. Boyd is a minor. […]

Riley invents a new deep-sea fishing net, which he names “SeaMaster.” He also writes the operating manual to be included with each net. Riley could obtain copyright protection for a. the net. b. the “newness” of the net. c. the […]

Larceny relies on fear and force. An order for relief in a bankruptcy proceeding amounts to a discharge of the debts of the party petitioning for bankruptcy protection. Answer: T Sierra borrows $175,000 from Regional Home Finance Corporation to buy […]

A promise to give value in the future is sufficient to confer the rights of an HDC on one in possession of a negotiable instrument. The establishment clause of the U.S. Constitution prohibits the federal government from establishing a state-sponsored […]

An assignment of rights in real estate often cannot be prohibited. In order to truly understand our legal system, it is important to understand the origins of the common law tradition. Answer: T The contract term “delivery ex-ship” means that […]

If a principal does not ratify an unauthorized contract, the principal is not bound. If a seller is not a merchant, and the goods are not to be moved, the risk of loss passes to a buyer on tender of […]

Under the Fourth Amendment, a general search warrant and a general search through a person’s belongings are permitted. Recovery in a product liability case may be limited when it can be shown that the plaintiff misused the product. Answer: T […]

Employers can treat their employees more or less favorably based on their religious beliefs or practices. An easement can be created by prescription. Answer: T Management’s behavior sets the ethical tone of a firm. Answer: T Gelato Cheese Company, a […]

An agency can terminate once its purpose is achieved. Joint venturers have the authority to enter into contracts that will bind the joint venture. Answer: T A divestiture is an order to a company to cease, or divest itself of, […]

Bankruptcy proceedings are held in federal courts. A covenant not to compete is never enforceable. Answer: F Brock is a shareholder of Competent Homebuilders Corporation (CHC). For the last few years, business has not been profitable for CHC. The firm […]

In a dispute between Cosmic Games Corporation and Mythic Engineering Associates, Inc., the court applies the doctrine of stare decisis. What is this doctrine? What does this doctrine have to do with the American legal system? Plant life is not […]

Preemption occurs when Congress chooses to act exclusively in a concurrent area and a valid federal statue or regulation takes precedence over a conflicting state or local law. Under the Statute of Frauds, oral contracts are void. Answer: F Different […]

A course of performance is the conduct that occurs under the terms of a particular agreement. Insurance coverage is never effective until a formal written policy is issued. Answer: F All states require that members of certain professions to have […]

A board of directors governs every corporation. The doctrine of sovereign immunity cannot immunize a foreign nation from the jurisdiction of U.S. courts. Answer: F The mirror image rule requires an acceptance to adhere exactly to an offer to create […]

The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members. A lease is enforceable even if the premises are intended for an illegal purpose. Answer: F A personal check cannot be […]

All unemployed workers who are willing and able to work are eligible for unemployment compensation. An installment contract is breached if a buyer accepts any nonconforming goods. Answer: F The minimum number of members of a body of officials that […]