Law test

Barlow owns the surface rights for Canyon Ranch, but does not own the subsurface rights. Dusty owns the subsurface rights. Canyon Ranch includes a house, a bunkhouse, and two barns, which are damaged when Dusty is excavating for minerals under the surface. Most likely responsible for the damage is A. Dusty B. Barlow C. Dusty and Barlow D. No one

A. Dusty

Lucas was a coporate officer for micro manufacturing. Ethical dillemmas that he wouldnt encounter would be a.whether to report internal misconduct to government b. Whether to lay off employees c.whether to provide federally mandated facility

A. Wether to report internal misconduct to government

Rule of Reason

Contracts or conspiracies are illegal only if they constitute an unreasonable restraint of trade or attempt to monopolize.

Retail Company and Sales Wholesale Corporation enter into a contract for a sale of beach toys for $5,000. To be enforceable, the contract should be in writing and identify a. the source of payment. b. the price. c. the terms of payment. d. the quantity.

D

A bitch owns two houses. She allows her friend Nikki to live in one of them without paying rent. Nikki dies. Nikkis tenancy gets passed to A. Passes to heirs indefinitely B. Passes to her heirs for one year C. Passes to her heirs for four years D. Is terminated

D. Is terminated

Metro Movers Miami Corporation allows Metro Movers Milwaukee Company to use Metro Movers' trademark as part of its company advertising. This is A. A license B. Likely to confuse customers C. Trademark infringement D.Trademark Dillution

D. Trademark Dilution

trade secret

Information or a process that gives a business an advantage over competitors who do not know the information or process.

exclusive dealing contract

An agreement under which a seller forbids a buyer to purchase products from the seller's competitors.

shrink-wrap agreement

An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged.

Liquidated Damages

An amount, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.

Richard agrees to lend his bike to sheila, who promises to return it in the evening. This is a. A constructive bailment b.an involuntary bailment c.an express bailment d.no bailment

An express bailment

restraint of trade

An unreasonable limitation on the full exercise of doing business with others

Mailbox Rule

At the time the offeree sends or delivers the acceptance via the communication mode

Contractors Service, Inc., enters into a contract to build a restaurant for Diedres spoons with the payment due on August 1. On August 1, her bank is closed so she cant pay on time. in this situation A. Diedres bank is liable to the company B. Diedres in breach of contract C. Contract discharged D. Contract suspended

Breach of contract

Disc & Shoe Brakes Corporation, a brake manufacturer, sells its products to Eastside Motors, a retailer, at lower prices than it charges Fast Brake, a competitive retailer. This price discrimination is legal a. under any circumstances. b. unless its effect is to cause a competitor a loss of any business. c. unless its effect is to substantially lessen competition. d. unless there is no effect on a competitor.

C

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had a. an expired contract when Neil said that he had changed his mind. b. a quasi contract when Neil said that he would pay for certain work. c. a unilateral contract as soon as Outdoor began to perform. d. no contract.

C

Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when a. Ray offered to sell his iPod. b. Ray exchanged his iPod for $50. c. Steve promised to pay Ray for the iPod. d. Steve paid Ray $50 for the iPod.

C

To acquire monopoly power in its market, Sugar, Inc., sets its prices substantially below the costs of production. Under antitrust law, this is a. a per se violation. b. a violation if the firm's competitors set similar prices. c. a violation if the firm thereby acquires monopoly power. d. not a violation.

C

To prevent its competitors from obtaining sufficient supplies to make their products, Continental Steel, Inc., uses its market power on the buy side to increase the prices of those supplies. This is a. price discrimination. b. business judgment. c. predatory bidding. d. predatory pricing.

C

Invested Capital Corporation provides other firms with funds to expand operations. If Invested Capital strictly applies with exsisting laws, the firms business ethics obligations will? A. Be entirely met B. Not to be met C. Be partially met D. Not to need to be met

C. Be partially met

Excavate n' Fill, Inc., enters into a contract with Fred to fill and landscape an abandoned quarry on Fred's land. Fred advances Excavate n' Fill 10 percent of its cost. The parties rescind the contract. Excavate n' Fill's refund of the payment is A. A penalty B. Liquidated damages C. Restitution D. Reformation

C. Restituion

Constellation Research Inc. uses a mark associated with its name to distinguish its services from those of other tech firms. This mark is A. A certification mark B. A collective Mark C. A service mark D. Trade dress

C. Service Mark

Vera sells her alluvial acres to walt. The title is transferred by deed. Vera is A. The grantee B.The Grantor C. The adverse possesor D. The licensor

C. The Adverse possesser

Coffe company makes and sells a chocloate flavored coffee drink under the name Cococafe, Later a market puts up a drink name KoKocafe A. Copyright infringement B.Patent Infringment C. Trademark law D. None

C. Trademark Infringment

Edge is a video game featuring interactive extreme sports. The graphics used in the game are protected by A. Copyright Law B. Patent Law C. Trademark Law D. None

A. A copyright law

asked a Question about if the firm should bid low to obtain a contract that they know can only fufill a high price. A practical method of answering this question involves all the following steps EXCEPT A. Absolution B. Decision C. Inquiry D. Justification

A. Absolution

Earth farm has Fresh Express, a common carrier transport almonds to delaware. Fresh express will NOT be liable for Earth farm for failing to deliver the almonds on time if A. Authorities are stopping and searching all trucks leaving california B. Fresh Express dispather mistakenly delays Gregs departure C. Fresh Express truck is broken into and the almonds are stolen D. Greg has to wait two days in Sacremento

A. Authorites are stopping and searching all trucks.

A unilateral contract is formed at the moment when the contract is performed T or F

True

A written contract that is intended to be the final statement of the terms of an agreement is an integrated contract. T or F

True

An action may be legal but not ethical T or F

True

An unenforceable contract is one that cannot be enforced because of certain legal defenses against it T or F

True

Each member of the TRIPS agreement must include in its domestic laws intellectual property rights T or F

True

Eminant domain is the right of an owner of property in fee simple absolute to use the property as she sees fit T or F

True

Estray Statutes make it possible for finders to aquire a legal title to the property they find T or F

True

If a voidable contract is ratified, the parties must fully perform their respective legal obligations. T or F

True

One of the basic elements of zoning is the classification of land by permissible use as part of a comprehensive municipal plan. T or F

True

Oral evidence to "fill in the gaps" of a contract with incomplete terms can be introduced at a trial. T or F

True

Restitiution involves one party recapture of a benefit through which another party has unjustly been enriched T or F

True

Tangible personal property has physical substance T or F

True

The basis of antitrust legislation is our society's desire to foster competition. T or F

True

The implied warranties of merchantability and fitness for a particular purpose extended to bailments that include rights to use the bailed good T or F

True

The measure of compensatory damages often varies by type of contract. T or F

True

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit A. Must be filed within ten to twenty years depending on state law B. Can no longer be brought C. Can be filed with four years after Kelly decides to sue D. Must be filed between four years

can no longer be brought

5 types of damages

compensatory, consequential, punitive, nominal, liquidated

patent

exclusive rights over an invention; copyright; to arrange or obtain such rights;

antitrust laws

laws that prevent monopolies and promote competition and fairness

restitution

making good on a loss or damage

Domininion

ownership of the subject or matter of the gift

Chattel

personal property

Mislaid Property

property that is intentionally placed somewhere but then forgotten

lost property

property which the owner unknowingly leaves somewhere or accidentally drop

The most common way to aquire personal property

purchase it

market power

the ability to alter the market price of a good or service

price discrimination

the business practice of selling the same good at different prices to different customers

horizontal merger

the combination of two or more firms competing in the same market with the same good or service

vertical merger

the combination of two or more firms involved in different stages of producing the same good or service

Copyright

the exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same.

conveyance

the life tenants ownership right cease estate to exist on the life tenants

service mark

the same as a trademark except that it refers to a service offering

Divesture

the transfer of total or partial ownership of some of a firm's operations to another company

lucy vs zimmer case

too intoxictated to agree to sell his farm to the person he signed the contract with, when they took it to court the judge decided that he wasnt too drunk and he knew what he was doing

Certification Mark

used by someone other than owner of company to certify region, materials, quality, or accuracy.

Bailee's lien

when a bailee entitled to payment retains possession until paid

accession

when someone adds value to an item

Adverse Possession

when the land of another private person is adversely and exclusively possessed in an open way

4 elements of a contract

-Agreement -Consideration -Capacity - Legality

4 types of remedies

-Legal -Equittable -Top Rest order Top injunction

Quitclaim Deed

A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest.

Clayton Act

A federal law that prevents price discrimination and helps with fairness

vertically integrated firm

A firm that carries out two or more functional phases (manufacture, distribution, and retailing, for example) of the chain of production.

Collective Mark

A mark used by members of a cooperative, association, certify the region, materials, mode of manufacture, quality, or other characteristic of specific goods or services.

bailee

A person who receives personal property from another as a bailment.

forum-selection clause

A provision in a contract designating the court, jurisdiction, that will decide any disputes arising under the contract.

Mitigation of Damages

A rule requiring a plaintiff to have done whatever was reasonable to minimize the damages caused by the defendant.

collateral promise

A secondary promise to a primary transaction, such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be in writing to be enforceable.

Statute of Frauds

A state statute under which certain types of contracts must be in writing to be enforceable.

Estray Statute

A statute defining finders' rights in property when the true owners are unknown.

Constructive Delivery

A symbolic delivery of property that cannot be physically delivered.

Tenancy at Sufferance

A tenancy which is created when one is in wrongful possession of realty, even though the original possession may have been legal.

Porches & Verandas, Inc., agrees to build a screen porch for Quinn, but fails to complete the job. Quinn hires Ramadas, Inc., to finish the project. Quinn may recover from Porches & Verandas A. the contract price less cost of material and labor B. Contract Price C. The cost needed to complete construction D. Profit plus cost incurred up to that point

The costs needed to complete construction

Barbara and Johann are parties to a contract. They agree on a novation. The novation requires A. The existence of a previous and valid obligation B. Consideration greater than 5,000 C. Performance of the original contract by all parties D. An accord and Satisfaction

The existence of a previous and valid observation

trade dress

The image and overall appearance ("look and feel") of a product that is protected by trademark law.

Fee Simple Absolute

The maximum possible estate or right of ownership of real property, continuing forever.

Noviation

The substitution of a new contract for a prior contract.

Inverse Condemnation

The taking of private property by the government without payment of just compensation as required by the U.S. Constitution. The owner must sue the government to recover just compensation.

tenancy at will

a tenancy granted by landlords to tenants allowing them to remain in possession without written agreement

Title Insurance

a type of insurance that protects the buyer if problems with the title are found later

per se violation

activity that is illegal regardless of its effect

Vertical Restraints

agreements among parties at different levels in the chain of distribution

escrow account

an account where money is held in trust until it can be delivered to a designated party

Revocation

an act or instance of calling back

tying arrangement

an agreement to sell one product only if the buyer agrees to buy another, different product

condemnation

an expression of strong disapproval

Quantam Meruit

as much as deserved

An integrated contract is a contract with more than one subject or part. T or F

False

The acquisition of power as a consequence of a superior product is an element of monopolization. T or F

False

The theft of trade secrets is a federal crime T or F

False

Sherman Act

Fight against monopoly and trade

An antitrust action is brought against Carrier Freight Company, alleging that a certain act constitutes the offense of attempted monopolization. To qualify, the act must have had a. a dangerous probability of success. b. a definite guaranty of success. c. a preponderant possibility of success. d. a reasonable probability of success.

A

Clay offers to pay Dian $50 for a golf lesson for Ewan. They agree to meet on Friday to exchange the cash for the lesson. These parties have a. a bilateral contract. b. a unilateral contract. c. a void contract. d. an executive contract.

A

Gearbox, Inc., a manufacturer of vehicle parts, refuses to sell to Motor Repair & Replace, Inc., a national vehicle service firm. Gearbox convinces Cam & Cylinder Company, a competitor, to do the same. This is a. a group boycott. b. an exclusive-dealing contract. c. a tying arrangement. d. a market division.

A

HVAC Parts Company charges different buyers different prices for identical goods. HVAC's prices are subject to evaluation under a. the Clayton Act. b. the Federal Trade Commission Act. c. the Sherman Act. d. no antitrust law.

A

Jana tells Levi she will give him an Xbox if Levi promises to do Jana's chores for a month. Levi promises to do the chores but has not yet begun to do them. Jana and Levi have formed a. a bilateral contract. b. a unilateral contract. c. a void contract.

A

Sales Corporation and Real Properties, Inc., agree to the payment of a commission for the sale of certain property. If this deal has all of the elements necessary for one of the parties to enforce it in court, it is a. a valid contract. b. a voidable contract. c. a voidable contract. d. an unenforceable contract.

A

Smart Tablets, Inc., requires all distributors of its products to sell them at a specified minimum price. This is a violation of antitrust law a. if the anticompetitive effects outweigh the competitive benefits. b. if the competitive benefits outweigh the anticompetitive effects. c. under any circumstances. d. under no circumstances.

A

Sunrich Company can process solar energy into an inexpensive fuel for internal combustion engines. As an innovator in its market, Sunrich currently has the power to affect the price of its product. This is a. market power. b. predatory pricing. c. price discrimination. d. monopsony power.

A

Susan enters into a contract with Troy to act as his personal sports trainer. If a dispute later arises and the contract contains unclear terms, the rules of contract interpretation will give effect to a. the parties' intent as expressed in their contract. b. what the promisor claims was the parties' intent. c. what the promisee claims was the parties' intent. d. what the parties now agree they intended.

A

Trademark

A brand that has exclusive legal protection for both its brand name and its design

condition precedent

A condition in a contract that must be met before a party's promise becomes absolute.

condition subsequent

A condition in a contract that operates to terminate a party's absolute promise to perform.

Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future T or F

Fakse

A contractual obligation may not be discharged through noviation

False

A restraint of trade is an agreement between firms that has the effect of reducing anticompetitive business practices. T or F

False

All collateral promises must be in writing to be enforceable. T or F

False

Neal allows owen to store his trailer on Neals property, 20 $ a month while owen is out of town. The bailor is

Neal

Concurrent Ownership

Ownership by two or more persons at the same time

eminent domain

Power of a government to take private property for public use.

To drive its competitors out of a certain geographic segment of its market, Drone Drives, Inc., sets the prices of its products below cost for the buyers in that area. This is a. price-fixing. b. business acumen. c. predatory pricing. d. price discrimination.

Predatory Pricing

Mirror Image Rule

Requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.

Non-possessory interests

Rights to physical real estate that do not include the right of exclusive possession

Recording Statutes

Statutes that allow deeds, mortgages, and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.

Hamer vs. Sidway

Uncle promised nephew $5,000 plus interest if the nephew refrained from drinking, smoking, and gambling until his 21st birthday. The nephew left the money in his uncles hands to collect interest until his uncle died and he had to sue to get the money from the will. The appeals court ruled that the nephew had legal right to the money based on a promise contract.

Wilson buys a lottery ticket. Wilson has accepted an offer for a. a bilateral contract. b. a unilateral contract. c. a void contract. d. an unenforceable contract.

Unilateral Contract

Market Concentration

When a small number of companies share a large part of the market

Warranty Deed

a deed that expressly warrants that the title is clear

concentrated industry

a firm or large number of firms control a large percentage of market sales