Business Law Final Exam - Multiple Choice

Front 1

Britney, an employee of Computer Associates, is arrested at work. A grand jury issues a formal charge against Britney for larceny. This charge is
a. an arraignment.
b. an indictment.
c. an information.
d. an inquisition.

Back 1

an indictment.

Front 2

A state statute requires machinery in industrial plants to include automatic shut-off switches accessible to each employee working on the machine. Steel Company's (SC's) equipment does not have the switches. Trudy, an SC employee, suffers an injury that an accessible shut-off switch would have prevented. Trudy's best theory for recovery against SC is
a. assumption of risk.
b. negligence per se.
c. res ipsa loquitur.
d. strict liability.

Back 2

negligence PER SE.

Front 3

Quality Products, Inc., files a suit against Retail Sales Corporation. Sid is a witness fro Quality. Tod is a witness for Retail. Quality may direct interrogatories to
a. Retail only.
b. Retail, Sid, or Tod.
c. Sid only.
d. Sid or Tod only.

Back 3

Retail only.

Front 4

The graphics use in "Go!", a handheld video game featuring racecars, are protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.

Back 4

copyright law.

Front 5

RiteMade Machinery, Inc., designs, makes and sells a drill press. Steel Equipment Company copies the design without RiteMade's permission. Steel's conduct is actionable provided
a. consumers are confused.
b. Steel's conduct is intentional.
c. Steel's conduct reduces the value of RiteMade's design.
d. RiteMade's design is patented.

Back 5

RiteMade's design is patented.

Front 6

The Constitution provides that no person shall be deprived of "life, liberty, or property without due process of law." Under this clause, "persons" include
a. animals and other "beings in nature."
b. buildings and other "manmade creations."
c. corporations and other "legal persons."
d. none of the choices.

Back 6

corporations and other "legal persons".

Front 7

Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The complaint should include
a. an explanation of the proof to be offered at trial.
b. a motion for judgment n.o.v.
c. a motion for judgment on the pleadings.
d. a statement of the grounds for the court to exercise jurisdiction

Back 7

a statement of the grounds the for the court to exercise jurisdiction.

Front 8

Edie files a suit against Frank. If this suit is like most cases, it will be
a. dismissed during a trial.
b. dismissed or settled before a trial.
c. resolved only after a trial.
d. settled at a trial.

Back 8

dismissed or settled before a trial.

Front 9

Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is defamatory only if
a. a third party hears it.
b. Hu has not been caught.
c. the statement is puffery.
d. the statement is true.

Back 9

a third party hears it.

Front 10

Marbled Granite Company files a suit against Natural Stone, Inc., in a Colorado court with general jurisdiction. In a Delaware court with limited jurisdiction, E-Sales Corporation files a suit against First State Bank. The difference between general and limited jurisdiction is
a. the subject matter of the cases that the courts can decide.
b. whether a case is being heard for the first time.
c. whether a suit is filed against a single individual or many people.
d. whether a suit is filed by a citizen or by a business.

Back 10

the subject matter of the cases that the courts can decide.

Front 11

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, Sara's work is protected
a. for ten years.
b. for twenty years.
c. for the life of the author plus seventy years.
d. forever.

Back 11

for the life of the author plus seventy years.

Front 12

Domino causes a disturbance at El Nino Cafe. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by
a. a fine only.
b. imprisonment up to one year.
c. imprisonment up to six months.
d. imprisonment up to ten days.

Back 12

imprisonment up to one year.

Front 13

Ross, an employee of Super Snowboard Company, e-mails Super Snowboard Company's future marketing
campaign to Winter Sports Corporation, Super's competitor, without permission. This is
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. a theft of trade secrets.

Back 13

a theft of trade secrets.

Front 14

Business Markets Coalition (BMC), a political lobbying group, wants a certain policy enacted into law. If BMC's
policy conflicts with the U.S. Constitution, a law embodying it can be enacted by
a. any state legislature and Congress.
b. any state legislature but not Congress.
c. Congress but not any state legislature.
d. none of the choices.

Back 14

NONE of the choices (any state legislature and Congress, any state legislature but not Congress, Congress but not any state legislature)

Front 15

Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with
Jac, a resident of Kentucky. Jac files a suit against Hua in Indiana. Regarding the property, Indiana has
a. federal question jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.

Back 15

IN REM jurisdiction.

Front 16

Tori files a suit against the state of Utah, claiming that a Utah state law violates the commerce clause. The court
will agree if the statute
a. impinges on citizens' private activities.
b. imposes a substantial burden on interstate commerce.
c. imposes a substantial burden on the state.
d. promotes the public order, health, safety, morals, or general welfare.

Back 16

imposes a substantial burden on interstate commerce.

Front 17

Mace copies Nick's book, Off the Beaten Path, in its entirety and sells it to Parkland Books, Inc., without Nick's permission. Parkland publishes it under Mace's name. This is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.

Back 17

copyright infringement.

Front 18

Melanie engages in speech that wrongfully harms others' good reputations on her blog at no.lie.com. The First Amendment gives such speech
a. less protection than obscene speech.
b. more protection than symbolic speech.
c. no protection.
d. the same protection as any noncommercial speech.

Back 18

no protection.

Front 19

Vladimir is a "payday" lender charged with filing false claims in bankruptcy proceedings against his customer-debtors. The standard of proof to find a defendant who has been charged with a crime guilty is
a. a preponderance of the evidence.
b. beyond all doubt.
c. beyond a reasonable doubt.
d. clear and convincing evidence

Back 19

beyond a reasonable doubt.

Front 20

Liz trespasses on Mega Corporation's property. Through the use of reasonable force, Mega's security guard Ned
detains Liz until the police arrive. Mega is liable for
a. assault and battery.
b. false imprisonment.
c. intentional infliction of emotional distress.
d. none of the choices.

Back 20

NONE of the choices (assault and battery, false imprisonment, intentional infliction of emotional distress)

Front 21

Jim files a suit against Kay. Before going to trial, the parties meet, with their attorneys to represent them, to present
their dispute to a third party who is not a judge but who renders a legally binding decision. This is
a. arbitration.
b. litigation.
c. mediation.
d. negotiation.

Back 21

arbitration.

Front 22

Modern Clothing, Inc., and National Denim Corporation use the mark "Made by Members of the U.S. Textile
Workers Union" on the tags of their products to indicate the participation of the union in the manufacture. Modern and National are not in business together and do not own this mark. This mark is
a. a strong mark.
b. a collective mark.
c. a service mark.
d. trade dress.

Back 22

a collective mark.

Front 23

George has a badly infected right foot. Herb, George's physician, prescribes amputation. George agrees. During the operation, Herb amputates the left foot. In George's suit against Herb, George's best theory for recovery is
a. assumption of risk.
b. negligence per se.
c. res ipsa loquitur.
d. strict liability

Back 23

RES IPSA LOQUITUR

Front 24

Vance points a gun at Workman, threatening to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense
a. insanity.
b. duress.
c. entrapment.
d. self-defense

Back 24

self-defense.

Front 25

Dian, a clerk at an Entertainment Unlimited store, takes a DVD player from the store without permission. Dian is
liable for
a. appropriation.
b. benefiting an employee.
c. conversion.
d. wrongful interference with a business relationship.

Back 25

conversion.

Front 26

Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Oswald promptly sells to Moe. This is
a. no crime.
b. employment fraud.
c. phishing.
d. vishing.

Back 26

phishing.

Front 27

Nico is a passenger in a car driven by Owen, whose negligence causes an accident, injuring himself. Nico,
uninjured, accompanies Owen to Parkside Hospital in an ambulance. The ambulance is hit by a car driven by Quin, injuring Nico. Nico files a suit against Owen, whose best defense is
a. assumption of risk.
b. contributory negligence.
c. negligence per se.
d. superseding cause.

Back 27

superseding cause.

Front 28

Sam, an engineer, supervises the construction of a new bridge. When the bridge collapses due to faulty
construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to the same standard of care as
a. ordinary persons.
b. other engineers.
c. other professionals, including doctors, dentists, and lawyers.
d. those injured in the collapse of the bridge.

Back 28

other engineers.

Front 29

Joy invites Ken into her apartment. Ken commits trespass to land if he
a. enters the apartment with fraudulent intent.
b. harms the apartment in any way.
c. makes disparaging remarks about Joy to others.
d. refuses to leave when Joy asks him to go.

Back 29

refuses to leave when Joy asks him to go.

Front 30

Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and onto Bella's land. Doyle commits trespass if he
a. does not have Bella's permission to drive on the property.
b. drives onto the property for recreational purposes.
c. harms the property in a material way.
d. harms the property in any way.

Back 30

does not have Bella's permission to drive on the property.

Front 31

The Securities Exchange Commission (SEC) is an administrative agency. Like other administrative agencies, the SEC was established to
a. act as a liaison between federal and state governments.
b. impose uniform laws on the states.
c. perform a specific function.
d. standardize laws for the executive and judicial branches.

Back 31

perform a specific function.

Front 32

Ellen publishes a book titled First Place, which includes a chapter from Frank's copyrighted book Great Racecar
Drivers. Ellen's use of the chapter is actionable provided
a. consumers are confused.
b. Ellen's use is intentional.
c. Ellen's use reproduces Frank's chapter exactly.
d. Ellen does not have Frank's permission.

Back 32

Ellen does not have Frank's permission.

Front 33

Under Ohio's state constitution, the Ohio Environmental Protection Agency issues a new rule, the Polk County Commission approves a new property tax measure, and the professors and students at Ohio Law School publish the results of their most recent legal research. Sources of law do not include
a. the measures approved by local governing bodies.
b. the results of legal scholars' research.
c. the rules issued by state administrative agencies.
d. the states' constitutions.

Back 33

the results of legal scholar's research.

Front 34

Olsen Grocery Company files a suit against Pickle Products, Inc. Pickle responds that even if Olsen's statement of the facts is true, according to the law Pickle is not liable. This is
a. a counterclaim.
b. a motion for judgment on the pleadings.
c. a motion for summary judgment.
d. a motion to dismiss.

Back 34

a motion to dismiss.

Front 35

Jean sends e-mail to Irwin promising a percentage of the amount in an African bank account for assistance in transferring the funds to a U.S. bank account. Irwin forwards his account number, but the funds are never sent. Instead, Jean quickly withdraws the funds in Irwin's account. This is
a. online greed but not fraud.
b. an online "fool-me-once, shame on you" occurrence but not fraud.
c. online gambling but not fraud.
d. online fraud.

Back 35

online fraud.

Front 36

Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will
terminate
a. after a reasonable period of time.
b. after a typical work week (five business days).
c. after a usual month (thirty calendar days).
d. never.

Back 36

after a reasonable period of time.

Front 37

Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders. When Faye's schedule conflicts, she asks Gudren to serve Faye's coffee and pastries at the meeting. This transfer of duties is
a. a delegation.
b. an assignment.
c. a novation.
d. prohibited by law.

Back 37

a delegation

Front 38

Elmo, a minor, misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos. Ordinarily, Elmo can disaffirm the contract
a. only if he can prove that Fine New Autos did not know his true age.
b. only if he can prove that Fine New Autos knew his true age.
c. under any circumstances.
d. under no circumstances.

Back 38

under any circumstances.

Front 39

Musica Production Company and Nora enter into a contract for Nora to write six songs for which Musica agrees to pay her. Nora transfers her right to payment under the contract to Omni Entertainment Agency. Nora is
a. a delegator.
b. an assignor.
c. a payor.
d. a righter.

Back 39

an assignor.

Front 40

Lem buys an MP3 player for $50 from Bill, a laptop for $750 from Frank, and signs a one-year employment
contract for a $4,000 monthly salary to start at the end of the next month. The Statute of Frauds covers
a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only

Back 40

the employment contract and the laptop purchase only.

Front 41

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.
d. perform a different service.

Back 41

pay damages.

Front 42

Intoxicated, Clio agrees to sell her restaurant, Diners Café, to Evan for half of its real market value. This deal is most likely void if
a. Clio appeared intoxicated to Evan.
b. Clio disaffirms the contract after becoming sober.
c. Clio was so intoxicated as to have no memory of the deal.
d. Evan fraudulently induced Clio to become intoxicated.

Back 42

Evan fraudulently induced Clio to become intoxicated.

Front 43

Vernon claims that his contract with Ulani is voidable. If their contract is avoided
a. both parties are released from it.
b. both parties must fully perform their obligations under it.
c. a wholly different contract is agreed to.
d. a wholly different contract is imposed "as if" the parties had agreed.

Back 43

both parties are released from it.

Front 44

Dobry Die & Mold, Inc., enters into a contract with Chet's Refitting Service to fix Dobry's precisely engineered molding equipment. If Chet's delays the repair for five days, knowing that Dobry will lose a certain percentage of profit for the delay, Dobry might be awarded consequential damages to
a. establish, as a matter of principle, that Chet's acted wrongfully.
b. provide Dobry with funds for a foreseeable loss beyond the contract.
c. provide Dobry with funds for its loss of the bargain.
d. punish Chet's and set an example to deter others from similar acts

Back 44

provide Dobry with funds for a foreseeable loss beyond the contract.

Front 45

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for $5,000. The
contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves
a. a right to receive money.
b. a right to Ben's services.
c. rights under Ivy's insurance policy against Ben's failing to perform.
d. a right whose transfer is otherwise expressly prohibited by statute.

Back 45

a right to receive money.

Front 46

Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside sells
the acreage to Fealty Realty, and fails to go through with DA's deal on the agreed date, when the market price of the land is $17,000. DA may recover
a. $17,000.
b. $15,000.
c. $2,000.
d. $0.

Back 46

$2,000.

Front 47

Rural Development Corporation (RDC) and Smike enter into a contract for the clear-cutting of RDC's fifty-acre
tract for which RDC agrees to pay Smike. Smike transfers his duty to log the tract under the contract to Timber Logging Company. Timber is
a. a delegatee.
b. an assignee.
c. an obligee.
d. a prohibitee.

Back 47

a delegatee.

Front 48

Debit & Credit Accounting Services and Brickwork Construction Company negotiate a contract. Terms in the contract that are the subject of separate negotiation will be considered subordinate to
a. standardized terms.
b. terms that can be understood only by lawyers and judges.
c. terms that are not negotiated separately.
d. none of the choices.

Back 48

NONE of the choices (standardized terms, terms that can be understood only by lawyers and judges, terms that are not negotiated separately)

Front 49

Used Car Lot's salesperson Vic offers to sell Will, who is twenty years of age, a car about which Vic intentionally
misrepresents several material facts. In reliance on the misrepresentations, Will buys the car. To prove fraud in this transaction, Will would not have to show that
a. Vic intentionally deceived Will.
b. Vic misrepresented several material facts.
c. Will is under twenty-one years of age.
d. Will justifiably relied on Vic's misrepresentations.

Back 49

Will is under twenty-one years of age.

Front 50

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 the parties' industry.
c. less priority than the parties' course of performance.
d. more priority than the prior dealing, course of performance, and trade usage.

Back 50

more priority than the prior dealing, course of performance, and trade usage.

Front 51

Todos Ltd. agrees to supply United Steel, Inc., with minerals from Venezuela. When the government is
unexpectedly overthrown in a revolution, Todos can obtain the goods only at a much higher price. United agrees to pay but later files a suit to recover the difference. The court will most likely rule that
a. a change in government is a risk ordinarily assumed in business.
b. an unforeseen difficulty supported the contract modification.
c. Todos engaged in extortion or the so-called holdup game.
d. Todos had a preexisting duty to supply the goods at the initial price.

Back 51

an unforeseen difficulty supported the contract modification.

Front 52

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 the consequences.
b. enforceable if Huck knew the market value of the farm.
c. enforceable if Huck was the record owner of the farm.
d. void.

Back 52

void.

Front 53

Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely
a. enforceable.
b. unenforceable.
c. void.
d. voidable.

Back 53

voidable.

Front 54

Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid
employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to
a. establish, as a matter of principle, that ISI acted wrongfully.
b. provide Hybrid with funds for a foreseeable loss beyond the contract.
c. provide Hybrid with funds for its loss of the bargain.
d. punish ISI and set an example to deter others from similar acts.

Back 54

provide Hybrid with funds for its loss of the bargain.

Front 55

A contract between Donald and Chloe to lease commercial property contains an exculpatory clause. This clause is
a. enforceable as a matter of public policy.
b. enforceable if either party is in a business important to the public.
c. enforceable if an event occurs to which the clause applies.
d. generally unenforceable.

Back 55

generally unenforceable.

Front 56

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. If Hollis breaches the contract, Grady's normal remedy would be
a. damages.
b. quasi contract.
c. reformation.
d. specific performance.

Back 56

specific performance.

Front 57

Flem, a user of GameCenter.com's Web site, can download gaming software for free if he first clicks on "I accept" after viewing certain terms. This is
a. a contract that does not include the terms.
b. a contract that includes the terms.
c. not a contract but the terms are enforceable.
d. unenforceable.

Back 57

a contract that includes the terms.

Front 58

Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have
a. an executed contract.
b. an express contract.
c. an implied contract.
d. a quasi contract

Back 58

an express contract.

Front 59

Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15. These
promises are most likely
a. enforceable.
b. valid.
c. void.
d. voidable.

Back 59

void.

Front 60

Outbound Travel Agency agrees to hire Petra for one year at a salary of $1,000 per week. When Outbound cancels the contract, Petra spends $2,000 to obtain a similar job that pays $750 per week for a year. Petra is entitled to recover
a. the amount of the wages that Outbound promised only.
b. the difference between the wages at the two jobs only.
c. the difference between the wages at the two jobs plus $2,000.
d. $2,000 only.

Back 60

the difference between the wages at the two jobs plus $2,000.

Front 61

Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract
a. Lou must return the $50 and Mira must return the player.
b. Lou must return the $50 only.
c. Mira must return the player only.
d. the parties can keep the "benefits" of their bargain.

Back 61

Lou must return the $50 and Mira must return the player.

Front 62

Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is
a. voidable if Fay has a lucid interval at the time of contracting.
b. voidable if Fay lacks the capacity to comprehend the consequences.
c. voidable if the other party does not realize that Fay is incompetent.
d. unavoidable.

Back 62

voidable if the other party does not realize that Fay is incompetent.

Front 63

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejection
first, then changes his mind and sends an acceptance. Whether they have a contract is determined by
a. Kyle's rejection.
b. Kyle's subjective intent.
c. whatever Jane decides.
d. whether Kyle's rejection or acceptance is received first.

Back 63

whether Kyle's rejection ro acceptance is received first.

Front 64

Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is
a. enforceable.
b. not enforceable because contracting parties can change their minds.
c. not enforceable because the contract clearly favors Wander Talk.
d. not enforceable because Uri was intoxicated when he agreed to it.

Back 64

enforceable.

Front 65

Green Grocers, Inc., enters into a contract with Hiway Transport Company for the delivery of a shipment of fresh produce. If the language in the contract has more than one meaning, it will be construed against
a. the party who drafted the contract.
b. the party with the greater bargaining power.
c. the promisor.
d. the promisee.

Back 65

the party who drafted the contract.

Front 66

Windshield Repair Shop (WRS) promises to pay Vincent $1,000 a week to work for WRS. Vincent accepts and
quits his job with Ultra Glass. WRS fails to provide a job for Vincent. Vincent has a cause of action based on
a. an illusory promise.
b. a release.
c. past consideration.
d. promissory estoppel.

Back 66

promissory estoppel.

Front 67

Odell owns Payroll Company, a bookkeeping service losing market share to Quik Work, Inc. Odell pays Remy $5,000 to steal a list of Quik's clients, to whom Odell will aggressively market Payroll's services. This deal is
a. enforceable.
b. void.
c. voidable at the option of either party.
d. voidable at the option of the party having less bargaining power.

Back 67

void.

Front 68

A contract between E-Debits, Inc., and First Credit 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.

Back 68

not enforceable.

Front 69

Delta, Inc., agrees to assume a debt of Excel Company to First State Bank. The agreement is not in writing. To be enforceable, the promise must be for the benefit of
a. any party.
b. Delta.
c. Excel.
d. First State.

Back 69

Delta.

Front 70

Capital Properties. Inc., and Broadview Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at
a. $50.
b. $500.
c. $5,000.
d. any price

Back 70

any price.

Front 71

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.

Back 71

a bearer instrument.

Front 72

Thelma signs a check "pay to the order of Uri" drawn on Thelma's account in Verity Bank. Thelma has $400 in her
account but the amount of the check is $500, which the bank pays. This is
a. a dishonored check.
b. an overdraft.
c. a postdated check.
d. a stale check.

Back 72

an overdraft.

Front 73

Frida is an employee of Green Recycled Products Company. A state statute protects Frida from Green's retaliation if Frida reports to state officials, or others, that Green is involved in unsafe or illegal activity. With respect to the employment-at-will doctrine, this is
a. an example of the doctrine.
b. an exception based on contract theory.
c. an exception based on public policy.
d. an exception based on tort theory.

Back 73

an exception based on public policy.

Front 74

Cash is an employee of Drowsy Resort, Inc., covered by federal overtime provisions, which apply only after an
employee has worked more than
a. eight hours in a day.
b. forty hours in a week.
c. 160 hours in a month.
d. one year for the same employer.

Back 74

forty hours in a week.

Front 75

Dependable Appliances, Inc., and Elain enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably
a. fit for the buyer's particular purpose.
b. fit for the ordinary purpose for which such goods are used.
c. suitable for resale at an acceptable price.
d. the best quality that money can buy

Back 75

fit for the ordinary purpose for which such goods are used.

Front 76

Kris transfers a note, on which Liu is the maker, to Mia, who takes it for value and in good faith. Mia knows that Kris breached the contract underlying the note, giving Liu a defense against payment. With respect to this note, Mia is
a. a knowledgeable holder in due course.
b. an ordinary holder.
c. an ordinary holder in due course.
d. an ordinary note taker.

Back 76

an ordinary holder.

Front 77

EZ Credit Company signs an instrument payable to the order of Flem that states, "The maker of this note at the date of maturity, May 1, 2013, can extend the time of payment, but for no more than a reasonable time." This instrument is
a. negotiable.
b. nonnegotiable, because it includes an extension clause.
c. nonnegotiable, because it is not payable at a definite time.
d. nonnegotiable, because it is payable to a specific payee.

Back 77

nonnegotiable, because it is not payable at a definite time.

Front 78

Olly applies for a job with Petro Company. Petro does not hire Olly because of his ethnicity, or national origin.
This is
a. desperate-measure discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.

Back 78

disparate-treatment discrimination.

Front 79

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks, Inc., but refuses to deliver. After the pizzas have been identified to the contract, Roller Rinks finds that cannot obtain pizza elsewhere, due to a spice shortage. Roller Rinks's right to recover the goods from Cheesy is the right of
a. cover.
b. cure.
c. replevin.
d. specific performance.

Back 79

replevin.

Front 80

GR8 Products, Inc., warrants its goods to be free of defects. If Heck issues an instrument to obtain goods from GR8 that prove defective, Heck can avoid paying on the instrument
a. only if it is a check.
b. only if it is a note.
c. whether it is a check or a note.
d. under no circumstances.

Back 80

whether it is a check or a note.

Front 81

Vladimir negotiates a bearer instrument to Wendy by
a. assignment.
b. delivery.
c. presenting it in response to a demand by Wendy.
d. promising to pay.

Back 81

delivery.

Front 82

Natural Foods, Inc., orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers. Olive Grove ships "Grade B" oil, which Natural Foods accepts. To recover damages for the nonconformity, Natural Foods must give notice of the breach within a reasonable time to
a. Olive Grove only.
b. Olive Grove, Pic 'N Pay, and the appropriate government agency.
c. Pic 'N Pay only.
d. the appropriate government agency only.

Back 82

Olive Grove only.

Front 83

To finance the purchase of a car from Giant Auto Sales, Hoppy signs an instrument promising to pay to "Ideal Credit Union" $18,000 with interest in installments with the final payment due May 15, 2014. To be negotiable, this instrument must include on its face
a. any conditions on the sale of the car.
b. any conditions to the disbursement of the funds.
c. any conditions to the repayment of the loan.
d. no conditions.

Back 83

no conditions.

Front 84

Dina's debit card, issued by Eminent Bank, is stolen and used without Dina's permission. Dina tells Eminent Bank within thirty days. Dina may be required to pay no more than
a. $5.
b. $50.
c. $500.
d. $5,000.

Back 84

$500.

Front 85

Cory employs Daily Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is
a. apparent authority.
b. equal authority.
c. express authority.
d. implied authority

Back 85

express authority.

Front 86

Based on Bluto's conduct, Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so. Cass makes a payment to Dee for Bluto. Dee keeps the money and disappears. Bluto
a. can demand that Cass make a repayment directly to Bluto.
b. can obtain damages from Cass for Dee's misconduct.
c. may be estopped from denying that Dee had authority.
d. must repudiate Dee's misconduct to avoid liability.

Back 86

may be estopped from denying that Dee had authority.

Front 87

Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is
a. a cashier's check.
b. a certified check.
c. a trade acceptance.
d. a traveler's check.

Back 87

a cashier's check.

Front 88

Lew, a member of a protected class, applies for a job with Mit-E Construction Company, but fails Mit-E's employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is
a. desperate-measure discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.

Back 88

disparate-impact discrimination.

Front 89

Research Statistics Corporation uses a merit system to pay its employees according to their job performance. Suki, a female, and Troy, a male, are Research employees with comparable jobs. Due to superior performance, Suki is paid more than Troy. This is
a. disparate-impact discrimination.
b. gender discrimination.
c. not discrimination.
d. reverse discrimination

Back 89

not discrimination.

Front 90

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment
contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before shipping them.
d. place the goods into the hands of a carrier.

Back 90

place the goods into the hands of a carrier.

Front 91

Pat, the manager of Quik Mart, deposits the store's 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 ward.
d. trustee and beneficiary.

Back 91

creditor and debtor.

Front 92

Opal signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable "with interest at the legal rate." This note is
a. negotiable.
b. nonnegotiable, because it does not specify a rate of interest.
c. nonnegotiable, because it is a promissory note.
d. nonnegotiable, because it is payable only with interest

Back 92

negotiable.

Front 93

Open Country, Inc., makes grills, camp ovens, and other outdoor cooking appliances. Under the Restatement (Third) of Torts: Products Liability, Open Country could be liable for a warning defect if there is a foreseeable risk of harm posed by one of its products and
a. the omission of a warning renders the product not reasonably safe.
b. there is a reasonable alternative design.
c. there is a lack of care in making of the product.
d. none of the choices.

Back 93

the omission of a warning renders the product not reasonably safe.

Front 94

Craft Engineering, Inc., contracts for a sale of technical instruments to Detail Design Company. Before the date on which performance is due, Craft notifies Detail that it will not perform. This is
a. anticipatory repudiation.
b. perfect tender.
c. rejection of performance.
d. revocation of acceptance.

Back 94

anticipatory repudiation.

Front 95

Cold Stuf, Inc., makes snowboards, which it sells to Deep Freeze Sports Store (DFS). DFS sells Cold Stuf boards to consumers, including Ed. Ed is injured while using the board. In a product liability suit based on strict liability, Ed may recover from
a. Cold Stuf only.
b. Cold Stuf or DFS.
c. DFS only.
d. no one.

Back 95

Cold Stuf or DFS.

Front 96

Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargo
vans. VLA delivers eight vans, but they are not cargo-sized. Wander
a. cannot reject the entire shipment.
b. can reject the entire shipment.
c. must accept the entire shipment.
d. must reject the entire shipment.

Back 96

can reject the entire shipment.

Front 97

Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between
a. any loss avoided and any profit gained.
b. the actual price and the hoped-for price.
c. the contract price and the market price.
d. the current prices in the parties' locations

Back 97

the contract price and the market price.

Front 98

Thalia is an employee of Universal Insurance Company. Universal's employee manual states that workers will be
dismissed only for good cause. With respect to the employment-at-will doctrine, this is
a. an example of the doctrine.
b. an exception based on contract theory.
c. an exception based on public policy.
d. an exception based on tort theory

Back 98

an exception based on contract theory.

Front 99

Steve steals one of Tricia's checks and forges her signature. Tricia's bank, Unity Bank, pays the check. Tricia can recover from
a. Steve, but not Unity Bank.
b. Unity Bank, which cannot recover from Steve.
c. Unity Bank, which can recover from Steve.
d. no one.

Back 99

Unity Bank, which can recover from Steve.

Front 100

Lenore is the sole proprietor of Mall Kiosks. With respect to contracting for her own business interests, Lenore is
a. an agent and has the authority.
b. an agent but does not have the authority.
c. not an agent and does not have the authority.
d. not an agent but does have the authority.

Back 100

not an agent but does have authority.

Front 101

Trey, an agent for Uno Music Corporation, executes an unauthorized contract with Variety Recording, Inc., that is highly advantageous to Uno. Variety withdraws from the deal before Uno ratifies the contract. The contract is
a. valid.
b. variable.
c. void.
d. voidable.

Back 101

void.

Front 102

On May 1, City Auto & Truck Sales agrees to sell a car to Dino. Five days later, Dino refuses delivery and cancels
the contract. City is entitled to
a. force Dino to accept the car.
b. recover any damages from Dino but not resell the car.
c. resell the car and recover any damages from Dino.
d. resell the car but not recover any damages from Dino.

Back 102

resell the car and recover any damages from Dino.

Front 103

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 in force if Gert does not tell prospective customers.
c. terminated by mutual consent of the parties.
d. terminated by operation of law.

Back 103

terminated by operation of law.

Front 104

Opal asks Paolo, who does not understand English, to sign what Opal says is an application to open a bank
account. In fact, the "application" is a note. If sued on the note by an HDC, Paolo's best defense would be
a. extreme duress.
b. fraud in the execution.
c. fraud in the inducement.
d. mistake.

Back 104

fraud in the execution.

Front 105

Hong, Ivan, and Juana apply to work for King Meatpacking Company. These individuals' identities and eligibility to work must be verified by
a. the employer.
b. the individuals.
c. the individuals' countries of origin.
d. the U.S. Citizenship and Immigration Services.

Back 105

the employer.