Lwc1 End Of The Book Test

Front 1

Assume the Federal Trade Commission (FTC) issued a rule requiring website operators to obtain parental consent before gathering personal information from children. This rule is an example of common law.

Back 1

False

Front 2

co-Motion, Inc. has adopted an ethics program. Why would Loco-Motion actively encourage ethical behavior?

Back 2

Unethical behavior creates a resentful workforce and reduces unethical productivity and reduces job stability.

Front 3

A motion for summary judgment:

Back 3

cannot be granted if any significant facts are in dispute

Front 4

While jogging, Steve saw a man who was severely injured on the side of the road. Steve did not know the man. Under the common law of most states, Steve has an obligation to assist the man.

Back 4

False

Front 5

Commercial speech has the same constitutional protection as noncommercial speech.

Back 5

False

Front 6

In addition to proving the four elements of defamation, a public official or public figure can win a defamation case only by proving actual malice by the defendant.

Back 6

True

Front 7

Alma was shot and severely injured during an armed robbery as she was working as a clerk at MiniMart Convenience Store in the Astro Shopping Center. If Alma sues Astro, she probably would:

Back 7

recover if she could show other similar acts in the Center.

Front 8

A reasonable mistake of fact can excuse criminal liability.

Back 8

True

Front 9

janoFoods, Inc., a U.S. company, entered into a contract to sell restaurant supplies to a MexiCali, Mexican company. The contract included the following provision, "Any disputes that arise under this contract will be resolved in the courts of Mexico." This contract term is a letter of credit.

Back 9

False

Front 10

If a contract involves both goods and services, the UCC always controls.

Back 10

False

Front 11

Micki offered to sell her toboggan to Kevin for $30. Kevin replied, "I will buy the toboggan for $25." Kevin's response terminates Micki's offer.

Back 11

True

Front 12

Enterprise promised to give Arthur 2% of the company's stock if he would stay one more year. Arthur agreed to stay. There is consideration to support this agreement.

Back 12

True

Front 13

When Martha was hired as a sales representative by Overton, Inc., she signed an employment agreement which contained the following provision: "I, Martha, will not solicit business from the customers that I worked with at Overton for a period of one year following my termination of employment with Overton." Agreements, like the one signed by Martha, are generally only enforceable if necessary to protect:

Back 13

trade secrets, confidential information, or customer lists developed over an extended period.

Front 14

The courts treat mutual and unilateral mistakes about the same.

Back 14

False

Front 15

Western Cleaning Supplies entered into an oral agreement to sell 500 ostrich feather dusters to America's Best Hotels, Inc. Western delivered 400 of the dusters on January 15. On February 1, America's Best notified Western that it would not honor the agreement. Which statement is correct?

Back 15

The contract is enforceable for 400 dusters.

Front 16

When a novation is present, it:

Back 16

creates a new contract by releasing the former obligor from liability under the original contract.

Front 17

If the costs of performing a contract have unforeseeably risen so unexpectedly and dramatically that performance would result in a substantial loss, the contract may be discharged on the grounds of:

Back 17

commercial impracticability.

Front 18

Mike entered into a contract with Coins-R-Us to purchase a rare coin. When Mike tendered payment, Coins-R-Us refused to perform. If requested, the court will grant:

Back 18

specific performance

Front 19

Which of the following contracts requires a writing under the UCC, Article 2?

Back 19

Americo, a textile manufacturer, contracted to sleeping bags for $10,000 to UpTown Department Store.

Front 20

According to the UCC, title can pass in any manner the parties agree to

Back 20

True

Front 21

Green Valley Produce purchased a freezer from Daire, Inc., "AS IS." Daire made no promises or statements concerning the performance of the freezer. Green Valley installed the freezer but the temperature in the freezer never got any colder than 40 degrees. Green Valley sued Daire. Who wins?

Back 21

Daire wins; there were no express warranties and all implied warranties have been successfully disclaimed.

Front 22

Wal-Smart ordered 500 toy trucks from Mattsel to resell in its retail store. When the shipment from Mattsel did not arrive by the contract deadline, Wal-Smart purchased 500 toy trucks from TruckCo. Wal-Smart's remedy is called:

Back 22

cover.

Front 23

Enterprises wrote a negotiable note payable to TexMart, Inc. for $10,000. TexMart expertly altered the amount of the instrument to state, "$60,000." The note was negotiated to Ventura, a holder in due course. Ventura is only entitled to be paid $10,000.

Back 23

True

Front 24

Generally, one who signs on the back of an instrument is considered to be an acceptor.

Back 24

False

Front 25

On February 1st Keith wrote a check for $4,000 to Ohio Construction Company. The check was presented to Keith's bank for payment ten months later, on December 1st. If the bank pays the check, it will be liable to Kyle for all actual and consequential damages.

Back 25

False

Front 26

On November 7, EZ Delivery Company purchased a van from Auto Mall signing a promissory note and security agreement giving Auto Mall a security interest in the van. On November 10, EZ Delivery took delivery of the van. On November 15, Auto Mall filed a financing statement in the appropriate state office. On what date did Auto Mall have a perfected security interest in the van purchased by EZ Delivery.

Back 26

November 15, the filing date.

Front 27

Usually, unsecured creditors receive most of what they are owed in a Chapter 7 bankruptcy

Back 27

False

Front 28

Clayton hired Vacations Plus to contract for the purchase of a condominium for him in Florida. The agency agreement must be in writing.

Back 28

True

Front 29

Thomas, an employee of Virgo, LLC, failed to stop at a stop sign while delivering a Virgo order and hit a pedestrian, breaking her leg. Virgo is:

Back 29

liable for the damages because Thomas was an employee and the negligence occurred in the scope of employment

Front 30

Remedies under title VII include unlimited punitive damages.

Back 30

False

Front 31

Several workers at Trico, Inc. were interested in organizing a union. When the President of Trico heard about the employees discussions, she sent an e-mail to all its workers stating that a union will only hurt the company and that "we are a family that can solve any problems ourselves -- we do not need union activists from outside our company trying to tell us what to do!" Which statement is correct?

Back 31

Trico cannot stop the employees from organizing a union.

Front 32

Which of the following does not require a governmental filing?

Back 32

A general partnership

Front 33

Termination of a partnership happens automatically once the winding up is finished.

Back 33

True

Front 34

Viceroy, Corp. is incorporated in the state of Delaware. Jo purchased a Viceroy product from a company sales representative following a presentation in Idaho. Jo was seriously injured by the product in Idaho. Jo:

Back 34

can sue Viceroy in Idaho because it has sufficient minimum contacts in Idaho.

Front 35

The Business Judgment Rule is based solely on the director's duty of loyalty to the corporation.

Back 35

False

Front 36

EXtreme, Inc. solicited proxies from its shareholders. A proxy authorizes someone else to vote in the place of the shareholder.

Back 36

True

Front 37

SEC Regulation D allows for the sale of certain types of private offerings without full registration.

Back 37

True

Front 38

TCC, an accounting firm, entered into an oral contract to prepare Gannon, Inc.'s tax return for the current year. The contract is not enforceable since it is not in writing.

Back 38

False

Front 39

Chick, Inc. entered into a contract with Uptown Department store under which Uptown agreed not to carry any handbags other than Chick's bags. Exclusive dealing contracts are per se illegal.

Back 39

False

Front 40

The Consumer Leasing Act requires a lessor to disclose which of the following?

Back 40

The consumer's right to terminate a lease early

Front 41

The EPA believed that employees of Justin, Inc. knowingly violated the Clean Air Act. The EPA can:

Back 41

seek criminal prosecution of the corporate officers and to seek criminal prosecution of employees involved in the violation as well as seek criminal prosecution of the corporation.

Front 42

Internet service providers must reveal the secret identity of customers who have posted defamatory information.

Back 42

True

Front 43

An author of a novel who fails to register the work with the Library of Congress cannot take any legal action for copyright infringement

Back 43

False

Front 44

Kristina and Edward owned a lake cabin as joint tenants with right of survivorship. Kristina died leaving all of her property to Mary. On Kristina's death, the lake cabin is owned by:

Back 44

Edward

Front 45

In constructive eviction, the tenant elects to vacate the premises and has no liability on the lease.

Back 45

True

Front 46

Deidra took her cats to the kennel while she went on vacation. This is a:

Back 46

mutual benefit bailment

Front 47

The assets of spendthrift trusts generally can not be obtained by creditors.

Back 47

True