bus308 final

____________ means to sign, execute, or adopt any symbol on an electronic record that verifies that the person signing has the intent to adopt or accept the record.

Authenticate

Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing Tours. Bayou repudiates the contract. Eventide's recovery is measured at the time

Eventide learned of the breach.

A bar of soap is unmerchantable if stepping on it would cause its user to slip and fall.

False

A buyer is required to cover, and a failure to do so, will bar the buyer from using any other remedies available under the UCC.

False

A partner can put his or her self-interest before the interest of the partnership without violating any fiduciary duty owed to the firm.

False

A secured party perfects a claim by filing a financing statement with the debtor.

False

Facts that are generally known to the public are copyrightable.

False

The UCC's classification or definition of collateral does not affect where or how to perfect a security interest.

False

The Uniform Partnership Act governs the operation of partnerships in spite of a different agreement among the partners.

False

The guarantor can be required to pay the obligation only after the principal debtor defaults,

False

The law does not prohibit the creation or shipment of counterfeit labels, unless they are attached to products.

False

Time commuting to and from work is considered part of the employment.

False

To avoid conflicts with the First Amendment, no state requires a franchisor to submit ads aimed at prospective franchisees to the state for approval.

False

A patent applicant must demonstrate that an invention is useful to receive a patent.

True

Courts apply a "reasonableness" test to determine if a warning adequately alerts consumers to a product's risks.

True

Destruction of goods that were identified in a contract can excuse both parties from performance

True

Generally, the buyer acquires whatever title the seller has to the goods sold.

True

Holding defendants strictly liable for manufacturing defects encourages greater investment in product safety and quality control standards.

True

In a limited partnership, a general partner assumes no liability for partnership debts beyond the amount of capital contributed.

True

Independent contractors are exempt from federal overtime laws.

True

Parties to sales or lease contracts often obtain insurance coverage to protect against damage, loss, or destruction of the goods.

True

Taking personal property from its owner, without permission or just cause, is trespass—retaining it is conversion.

True

The parties to a sales contract can limit or exclude consequential damages for any commercial loss—such as a business's lost profits or property damage.

True

The use of someone's likeness, name, or other identifying characteristics for profit without their permission constitutes a tort.

True

To bring a product liability lawsuit on the ground of misrepresentation, the plaintiff must have relied on the misrepresentation.

True

To create an express warranty, a reasonable buyer must regard a seller's representation of fact—for example, on a product label—as part of the basis of the bargain.

True

Under regular contract principles, an offer can be revoked at any time before acceptance.

True

With respect to a patented process, all steps or their equivalent must be copied for infringement to occur.

True

Works that are copyrightable include brochures, or other printed advertisements.

True

Rice that fills Harvest Co-op's silo is fungible if the rice is

alike naturally, by agreement, or by trade usage.

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is

an employee.

Cultivator Inc. designs and makes tractors, balers, and other farm equipment. In a product liability suit based on negligence, Cultivator could be liable for failing to exercise due care with respect to all of the following except

the inspection of components purchased to use in the equipment.

Brewed Beans Inc. makes and sells "CoCoCafe," a chocolate-flavored coffee. Darkroast Inc. later markets a similar drink under the name "KoKoKafe." This is most likely:

trademark infringement.

To succeed in a suit for trademark infringement, the owner must show that the infringer acted intentionally.

False

A statement of fact that is actually true but appears on its face to be negative can constitute defamation

False

False imprisonment occurs only when a person justifiably restrains another.

False

If a buyer wrongfully refuses to pay for goods, the seller can reclaim them and resell them, without crediting the sale proceeds to the buyer.

False

In a sole proprietorship, the owner is not the business.

False

Intentional deceit for personal gain may be unethical, but it does not give rise to liability for a fraudulent misrepresentation.

False

To maintain an action in strict product liability, the plaintiff must show why, and how the product became defective.

False

When a security interest is perfected, it has priority over any other perfected security interests.

False

When the time for performance under a contract expires, the right to cure also expires.

False

Grill Time Inc. makes commercial cooking appliances, including a grill in use by Haute Cuisine Food Cart. Inez, a Haute employee, is injured when the grill malfunctions. If the injury occurred as a result of a misrepresentation about the product, Grill Time is most likely liable for

fraud.

Bram knows that the pipes in his building leak, but he tells Cass, a potential buyer, that there are no leaks. On this assurance, Cass buys the building. On learning the truth, she may sue Bram for:

fraudulent misrepresentation.

When a contract completely sets forth all the terms and conditions agreed to by the parties and is intended as a final statement of their agreement, it is considered

fully integrated.

Ceramic Corporation makes commercial ceramic products, including heat-resistant tiles for industrial ovens. When damage occurs in an oven at Duramold Inc., strict product liability may be imposed on Ceramic if the tiles sold to Duramold were

in a defective condition that was the proximate cause of the damage.

Etta, who is obese, files a product liability suit against Fast Meal Corporation, alleging that the company's food products are unhealthy, because the products contain high levels of cholesterol and saturated fat. Fast Meal can most successfully assert the defense of:

knowledgeable user.

Gargantua Equipment Corporation registers its trademark as provided by federal law. This registration gives notice that the mark belongs exclusively to Gargantua. This notice is

nationwide.

When the merchant seller keeps the goods for pickup, a document of title is usually

not used.

Ivy slips and falls on the deck of Jet's Tour Boat and is injured. She incurs in medical expenses of $500,000, and files a suit against Jet to recover. Under the "50 percent" rule, if Ivy is more than 50 percent at fault, she will recover:

nothing.

When the contract involves movement of the goods through a common carrier but does not specify when risk of loss passes, the courts first look for

specific delivery terms in the contract.

Quint is injured when a can of Remove-It explodes into flames. Solvents Inc. manufactured the Remove-It. Under product liability laws, Quint's options include

suing Solvents Inc. for product liability.

When the goods are held by a bailee, risk of loss passes to the buyer when

the buyer receives a negotiable document of title for the goods.

To create an enforceable security interest between Mortgage Bank and Nations Property Company with a written security agreement, the agreement must be signed by

the debtor.

Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

the implied warranty of fitness for a particular purpose.

Stents Inc. makes medical devices. Toni files a product liability suit against Stents, alleging a warning defect with respect to its device. In deciding whether to hold the maker liable, the court may consider whether

the omission of a warning rendered the device not reasonably safe.

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

Home Repair.

Khan takes a rock from a pile of stones on Lamb's property and throws it intending to hit Minh, but misses and hits Nasir instead. For the tort of battery, Nasir can sue

Khan.

A principal can ratify an agent's unauthorized acts in part or in whole.

True

Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is

a destination contract.

Haute Dogs Inc. sells a franchise to Ilene's Cuisine, a lunch truck. Ilene's Cuisine is

a franchisee.

Resort Gift Shop is operated as a partnership, with five partners. Shan has a one-third interest in the firm. Each of the other partners has a one-sixth interest. Ted is the senior partner. With respect to management decisions

a majority of the partners must agree.

Kit hires Lanie to manage Kit's Cattle Ranch. Lanie agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Lanie to so act. Their relationship is

a principal and an agent.

Blake, a salesperson for Custom Commercial Kitchens Inc., shows Dylan, a buyer for Eatery Inc., display items in Custom's showroom, stating that any purchased equipment will match the display. This statement is

an express warranty.

A patent holder who has been violated can seek ________, as well as request damages for royalties and lost profits.

an injunction

Brass Instruments, Inc., sells seventy-six trombones to Community Band. To avoid liability for most implied warranties, Brass should state in writing that the trombones are sold

as is.

Don One decides to use his personal name for a line of clothing he is developing. In this instance, Don One will receive trademark protection under the law when:

customers begin to associate the name with his product.

Bob makes a statement about Joe that he has a very infectious skin disease. This is not true. Joe can sue Bob for:

defamation

Fran tells Gio that her Hyundai Kia has never been in an accident. This may give rise to an action for fraud if the statement is

false.

Hilo tells the Internal Revenue Service that Jon "cheated on his taxes." This can lead to Hilo's liability for defamation if the statement is

false.

DIY, a retail hardware store, must use reasonable care on its premises to warn its invitees of

foreseeable risks.

Bean Processor, Inc., agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract. Against Bean, as a contract, the e-mail will be sufficient if

it is signed by Bean.

Lyn is injured when a part of a building ledge breaks free and strikes her. If Lyn brings a successful tort action against the building'sowner, she may be awarded special damages to compensate her for

monetary losses, such as medical expenses.

By using agents, a principal can conduct multiple business operations simultaneously in various locations.

True

A manufacturer does not need to inspect and test any purchased components used in the final product to avoid product liability.

False

Rev Motor Company buys plugs and points from Sparkplugs Inc. and puts them in Rev vehicles without changing their composition. If the parts are defective, strictly liable for any damage caused by the defects?

Rev and Sparkplugs.

A court may decide that a franchisor has not wrongfully terminated a franchise if the franchisor's decision to do so was made in the normal course of business.

True

A trademark is a distinctive word, symbol, sound, or design that identifies the manufacturer as the source of particular goods, and distinguishes its products from those made (or sold) by others.

True

An act intended to make another person fearful of an immediate physical harm is an assault if the threat is reasonably believable.

True

Any transaction in which the payment of a debt is guaranteed by personal property owned or held by the debtor is a secured transaction.

True

Arbitrary and fanciful trademarks are sometimes considered to be the most distinctive trademarks, and they trigger the highest degree of protection.

True

If a person knowingly and voluntarily puts themselves in a position of danger and is injured, they will still be allowed to sue for damages

True

If the parties have not agreed on a price, the court will determine a "reasonable price at the time for delivery!

True

In a destination contract, the seller agrees to deliver conforming goods to the buyer at a particular destination

True

Risk of loss cannot pass from seller to buyer unless the goods are identified in the contract.

True