Archives: Quiz

Fact Pattern 9-2 Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deala student loan accruing interest at a certain rate and payable beginning on a certain datewas unfair because the consideration for their contract […]

Fact Pattern 28-1 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 28-1. Nikas ownership interest […]

Elin decides to try to sell her collection of celebrity memorabilia in an auction “with reserve. If Elin changes her mind, she can withdraw her collection a. only before the auctioneer announces that the items are sold. b. only before […]

Rona and Savannah do business as Treasure Island Traders. Acting in good faith on the firms behalf in a deal with Unlimited Potential, Inc., Rona makes an honest error in overestimating the profit. To her firm, Rona is a. liable […]

Tyrone draws a check payable to “Cash and presents it to United Bank for payment. This instrument is a. a bearer instrument. b. an order instrument. c. valid but nonnegotiable. d. void. Green Landscape Company buys a backhoe on credit […]

The payment of Edens debt to Flem is guaranteed by Edens personal property. This property is a. a secured party. b. a secured transaction. c. a security interest. d. collateral. Fact Pattern 20-1 Northeast Bank makes mortgage loans to consumers, […]

Cody believes that Delta Corporation has discriminated against him on the basis of gender. Cody files a suit against Delta under Title VII. To establish a prima facie case of employment discrimination, Cody must show that a. Cody is a […]

Thor Power Products Corporation permits its directors to be elected by cumulative voting. This a. allows minority shareholders to be represented on the board. b. assures directors that they will be selected by their peers. c. guarantees Thors executive officers […]

Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house burns down before being sold. The agency agreement is likely a. still in force if Frida gives Gert additional consideration. b. still […]

Bobbie claims that Carl breached their contract. Carl responds that he never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to a. the conscious theory of contracts. b. the […]

Mac files a petition for a discharge in bankruptcy. Macs failure to appear at a meeting of the creditors listed in Macs schedules may result in Mac being a. denied a discharge of bankruptcy. b. fined. c. held in contempt. […]

Bea is a shareholder of Candy Confections Corporation. The right to inspect corporate books and records is a. held by Bea only if she is a director. b. held by Bea, without restrictions. c. held by Bea, with some restrictions. […]

Holiday Sales Company and Global Distributors, Inc., enter into an express contract for the delivery of imported specialty goods. Express contract terms are given a. less priority than the parties prior dealing. b. less priority than the trade usage in […]

Mountain Bikes, Inc. (MBI), and Nero enter into a contract for a sale of a mountain bike. MBI, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss […]

Yves is an accountant charged with negligence by Zesty Soup Company, a client. Yves may successfully defend against the claim if he can show that a. scienter was lacking. b. he complied with all International Financial Reporting Standards. c. the […]

Nouveau Riche Corporations officers, directors, and shareholders buy and sell securities. SEC Rule 10b-5 applies to a. only the purchase or sale of a security by a financial corporation. b. only the purchase or sale of a security involving an […]

RockStar Software, Inc., develops a new series of performance-related video games. This software is most likely protected by a. copyright law. b. patent law. c. trademark law. d. trade secrets law. Bob, research manager for CornAgri Products, Inc., applies utilitarian […]

Home Products Store buys furniture from Relax Furniture, Inc. The parties agree that the furniture will be shipped “F.O.B. Relaxs warehouse to Home Products via Swifty Shipping Corporation. The furniture is lost in transit. The loss is suffered by a. […]

Ralph offers to sell Sophie, who is seventeen years of age, a car about which Ralph intentionally misrepresents several material facts. In reliance on the misrepresentations, Sophie buys the car. To prove fraud in this transaction, Sophie would have to […]

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires. Good Tire is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises a. automatically […]

Pat, the manager of Quik Mart, deposits the stores receipts in its account at Regional Bank. As to the receipts, the relationship between Quik Mart and the bank is a. attorney and client. b. creditor and debtor. c. guardian and […]

Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners trademark in restaurants in Germany. This is a. a distribution agreement. b. a joint venture. c. direct exporting. […]

InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to pay for the service. If InTown does not perform, the firm may be required to a. do nothing. b. make another promise. c. pay damages. b. […]

Fact Pattern 17-2 Tom draws a check, on his account in State Bank in New York, payable to Digital Media, Inc., in San Francisco. Digital deposits the check in its account at First National Bank. First National deposits the check […]

Denise and Elke do business as Final Curtain Decorators. In most states, for purposes of holding title to property, this partnership would be treated as a. an aggregate of the individual partners. b. a natural person. c. an entity. d. […]

Leather Products Stores, Inc., rejects a shipment of goods that does not conform to its contract with Manufactured Cowhide Corporation, but is unable to obtain instructions from the seller. Leather Products may a. resell or return the goods only. b. […]

Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio a. […]

Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death of ether owner, that owners interest in the stock passes to the surviving owner. This is a. a joint tenancy. b. a tenancy by the […]

Debit & Credit Accounting Services and Brickwork Construction Company negotiate a contract. Terms in the contract that are the subject of separate negotiation will be con- sidered subordinate to a. standardized terms. b. terms that can be understood only by […]

In 2012, Sara writes Terror at the Track, a novel about racecar driving. Sara does not register the work with the appropriate government office. Under federal copyright law, Saras work is protected a. for ten years. b. for twenty years. […]

Luke is a director of Motor Parts Corporation. Luke makes decisions with respect to Motor Parts in good faith, in what he believes is the firms best interest, and without violating any duties owed to it. If, despite these circumstances, […]

Screen Perfect, Inc., and TV Stores enter into a contract for a sale of high-definition television sets. Screen Perfect ships goods that do not exactly conform to the contract in some details. TV Stores a. cannot reject the entire shipment. […]

Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, “Forget it. I changed my mind. Elmores offer was terminated by a. Elmore. b. Ford. […]

Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that warrants only that Opal held good title during her ownership of the property. This deed is a. a grant deed. b. a quitclaim deed. c. a […]

The E-Sign Act preempts the uniform version of the Uniform Electronic Transactions Act (UETA). To finance the purchase of a house from Tuna, Uri signs an instrument promising to pay to “Verity Mortgage Service $160,000 with interest in installments with […]

Opalina asks Paolo, who does not understand English, to sign what Opalina says is an application to open a bank account. In fact, the “application is a note. If sued on the note by an HDC a. Paolo must pay […]

Via the Internet, Rocky sabotages the computer system of Quik ChiknCompany, a food manufacturer, to alter the levels of ingredients in thecompanys products so that consumers of the food become ill. Rocky is a a. cyberterrorist. b. botnet. c. virus. […]

Sales of securities must occur within five days of registration. a. True b. False Ryder and Sergei are partners in Timberline Gear, which sells mountain- and rock-climbing equipment. Ryder manages the business. Unless the partnership agreement states otherwise, Ryder is […]

A mechanics lien is possessory. a. True b. False Express warranties can notbe disclaimed in contracts. a. True b. False Answer: False Victor leaves his Dodge sport utility vehicle at Gordos Auto Service for an oil change. This is a. […]

Veggie Grocers orders by phone twenty cartons of canned beets from Organic Food Packers, Inc. After ten cartons are delivered and accepted, Veggie repudiates the contract. Organic can enforce the contract to a. any extent because the order was placed […]

Jason contracts with Golf Carts Unlimited, Inc. to buy five golf carts. The contract lists the five carts as GC001, GC002, GC003, GC004, GC005. Identification a. requires that Jason verify his identity to take possession of the carts. b. has […]

A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated. a. True b. False Mike is arrested at a warehouse in North Industrial […]

A hacker is someone who uses one computer to break into another. a. True b. False Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital […]

Mother & Daughter Jewelers breaches its lease with Longview Mall and vacates the premises six months before the end of the term. In some states, Longview would have to a. avoid reletting the premises to recover damages. b. use reasonable […]

An order for relief in a bankruptcy proceeding amounts to a discharge of the debts of the party petitioning for bankruptcy protection. a. True b. False Marquis Companys liabilities exceed its assets, but the firms employees falsify its books to […]

Qatar Global Investments is a foreign entitya firm owned and operated by investors in a foreign country. With respect to a limited liability company in the United States, Qatar Global can a. act as a creditor, but cannot otherwise invest […]

The majority rule controls decisions on ordinary matters connected with partnership business. a. True b. False Burt, a mentally impaired person, is asked by Carl to sign a piece of pa-per that Carl says is an autograph book. In fact, […]

The Second Amendment to the U.S. Constitution reserves all powers not delegated to the national government to the states. a. True b. False If a life insurance applicant pays a premium but dies before the physical exam, there is obviously […]

Riley obtains permission from Saga Company to use the firms game app on Rileys smartphone, tablet, and other mobile device. But Riley does not obtain ownership rights in the app. This is a. a license. b. a cookie. c. cloud […]

Hals Hardware store defaults on a debt to Intrastate Bank, which takes possession of the collateral securing the debt. Intrastate sells the collat-eral. The proceeds from the sale are applied first to a. Hals debt to Intrastate. b. Hals debts […]