Archives: Quiz

Nate works as a carnival barker. His employment contract specifies that he can be fired if he “loses his voice. This is an example of: a. vagueness. b. extortion. c. ambiguity. d. duress. An engagement letter is a written contract: […]

In Hernandez v. Arizona Board of Regents, the court held that individuals who: a. intentionally provide alcohol to minors can be liable for negligence to injured third parties. b. intentionally provide alcohol to minors cannot be held liable for negligence […]

The concept of stare decisis focuses most on: a. predictability. b. flexibility. c. legislative intent. d. change. Nestles sold a drink called Boost Kid Essentials, which contained probiotics and claimed that Boost would prevent children from getting sick or missing […]

A Japanese company operates a ship called the Kinia. If the Kinia sails in U.S. waters, it must comply with the standards set by the Clean Water Act. Which of the following projects would require the preparation of an Environmental […]

Sprock is a holder in due course on an instrument issued by Klingon. Which of the following defenses could be successfully raised by Klingon? a. Forgery. b. Prior payment. c. Breach of contract. d. Fraud in the inducement. Dick offers […]

The WTO is: a. a world trade organization that regulates trade among its member nations. b. a treaty negotiated by the European Union to regulate its trade c. a world court established by the GATT treaty that hears trade disputed. […]

Zebra Toy Company, located in Chicago, sells $500,000 worth of toys to a London, England, wholesaler. This contract could be governed by: a. Illinois’s Uniform Commercial Code. b. English law. c. the CISG. d. All the above are correct. Claude […]

Pat’s Pen Co. manufacturers and sells an inexpensive ball-point pen. Salley’s Stationery purchases the pens for $.25 each in quantities of 1,000. Salley’s discovered that a national chain, a competitor of Salley’s, buys the pen at $.20 for 1,000. If […]

The Americans with Disabilities Act of 1990 defines persons with disabilities as persons with physical or mental impairments that ‘substantially limit one or more everyday activities of the affected individuals. On May 1, Newtown Motors, a used-car dealer, wrote a […]

The United Nations Convention on Contracts for the International Sale of Goods provides international sellers and buyers with remedies very different to those available under the UCC. A valid delegation of duties relieves the delegator of obligationsunder the contract. Answer: […]

No federal court has held that digitally sampling a copyrighted sound recording of any length constitutes copyright infringement. Federal wiretapping law covers electronic forms of communication. Answer: F Oral evidence of the modification of a contract after its making can […]

Dumping is the exporting of environmentally polluting goods to a foreign market. A quasi contract is an actual contract. Answer: F International law requires nations to honor the actions of other nations. Answer: F A bill of lading is a […]

Any written material, including information stored electronically, can be the object of a discovery request. Social media posts are routinely included in discovery in litigation. Answer: T A partner may pursue his or her own interests without automatically violating the […]

The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract. International contracts rarely include arbitration clauses. Answer: F The principle of comity basically refers to legal reciprocity. Answer: T A warranty of […]

The law considers all new, single-owner businesses to be sole proprietorships unless the owner affirmatively adopts some other form. A right can be assigned even if the assignment will significantly alter the risks or duties of the obligor. Answer: F […]

Federal law allows the intentional interception of any wire, oral, or electronic communication. Corporate officers and directors may be held criminally liable for the actions of employees under their supervision. Answer: T The federal courts are superior to the state […]

Under the Anti-Counterfeiting Trade Agreement, member nations are required to establish border measures that allow officials to search commercial shipments of imports and exports for counterfeit goods. A disclosed principal is liable to a third party for a contract made […]

A contract for a sale of goods priced at $501 must be in writing to be enforceable. A void contract imposes certain legal obligations on the parties but is not otherwise enforceable. Answer: F Oral evidence of otherwise clear terms […]

A seller who makes a statement that relates to the value or worth of the goods creates an express warranty. Sellers are required to take precautions against every conceivable misuse of a product. Answer: F Bonds represent the borrowing of […]

The element of bargained-for exchange distinguishes contracts from gifts. An executive officer of a corporation normally can conduct ordinary business transactions without obtaining written authority from the corporation. Answer: T The term consideration refers to the legality of the subject […]

With a few exceptions, almost anything is patentable. Every sale or lease of goods made by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty that the goods are fit […]

In most legal controversies, there is one single correct result. The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state. Answer: T It is frequently the companies rather than courts or legislatures that […]

The decisions made by the courts establish the boundaries of the law as it applies to almost all business relationships. Intentional discrimination by an employer against an employee is known as disparate-treatment discrimination. Answer: T Each judge had his or […]

Under the UCC, a firm offer for a sale or lease of goods made by a merchant without consideration can be revoked at any time before acceptance. The Revised Model Business Corporation Act gives a close corporation less flexibilitythan other […]

Dixie, a driver for Express Delivery Company, leaves the truck’s motor running in neutral and carelessly forgets to set the parking brake while she makes a delivery. The truck rolls and crashes into a nearby gas station pump, igniting a […]

A collateral promise is one made by a third party to assume the debts or obligations of a primary party to a contract if that party does not perform. When a corporation earns profits, it must pass them on to […]

Although cases may be similar, no two cases are ever identical in all respects. Religious rules generally are absolute with respect to the behavior of their adherents. Answer: T Statutes of repose places outer times limit on product liability actions. […]

While a minor, Uri misrepresents his age as twenty-one to purchase a motorbike from Vans Dirt Bikes & Scramblers. Ordinarily, Uri can a. disaffirm the contract but must return the motorbike. b. none of the choices. c. ratify the contract, […]

Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes for $4.50 per month. Nate accepts. If a dispute arises, a court would likely a. enforce the deal after questioning the adequacy of the consideration. b. not question […]

Larry enters into a contract with Motivational Education Services to host a panel discussion at a sales conference. When the conference is postponed indefinitely, Larry asks a court to cancel the contract and return the parties to the positions that […]

Organicos Café orders five gallons of PureMaid-brand transfat-free olive oil from Quico Cooking Supplies, Inc. Quico mistakenly ships soy oil, which Organicos keeps, despite the nonconformity. The oil is destroyed in a fire. The loss is suffered by a. all […]

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optimas products in Canada. This is a. a distribution agreement. b. a joint venture. c. direct exporting. […]

GreatGro, Inc., makes genetically modified seedswith properties that are identical to Hearty Harvest Corporations patented seeds, without Hearty Harvests permission. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. not infringement. FastBreak Inc. is dissatisfied […]

Leif contracts to sell his Micro Brewery & Pub to Naomi on April 1. On March 15, Leif tells Naomi that he will not go through with the deal. Naomi can recover a. the cost of any property that Naomi […]

Mallory promises to buy illegal digital copies of movies from Napoleon, who promises to deliver on October 31. These promises are most likely a. enforceable. b. valid. c. void. d. voidable. Custom Auto Body & Detailing, LLC, is a limited […]

Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Price-LoMart files a suit to block the […]

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. […]

Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund offices for as long as Hedge Fund needs them. This contract may be enforceable by a. […]

The U.S. Congress enacts a new federal statute that imposes liability on businesses hiring employees without verifying their citizenship status. This statute applies a. only to businesses not covered by state law. b. only to those states that consent to […]

Moses sells an apartment building to Noellewith a promise to install a newheating and air conditioning systembefore September The following February 1, Moses sends Ollie, anHVAC technician, to begin the installation. Noelle orders Ollieto leave and refuses to make further […]

At an auction for the first time, Dulcineabids on a one-hundred-year-old Edison-brand phonograph, believing that it is worth more than the price asked. When the item proves to be less valuable, Dulcinea is a. liable on the bid. b. not […]

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to a. damages. b. nothing more. c. to be excused from performance. d. suspend performance. To complain about Discount Retail Corporations products, […]

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 […]

Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the […]

In selling a commercial building, Birdie tells Colt that theproperty has a certain capacity, making it suitable for a nightclub. Birdie knows nothing about the capacity of the building, but it is not as she specifies. Colt buys the building. […]

Big Deal! Marketing Company, a U.S. firm, signs a contract with Comercio Exterior, Ltd., a Chilean firm, to give Comercio the right to use Big Deal!s animation techniques and characters in product promotions. This is a. a distribution agreement. b. […]

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 […]

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Lights place and assume all of its rights and duties under the contract. This is a. a mutual […]

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

Which of the following is true about police powers? A. These powers have given the federal government expansive power to regulate business. B. The powers sometimes allow the state regulations to be arbitrary. C. The powers help protect the public’s […]