Business Law

Which of the following transactions is not governed by Article 2 of the UCC?

Leasing an automobile worth $35,000

Sheri signs a contract with Farmer Charlie on February 1. Under the deal, she will pay $25,000 for Charlie's entire pumpkin crop on October 1. Charlie plants pumpkin seeds on March 1, and they begin to sprout on April 1. When are the pumpkins identified?

March 1

For a contract governed by the UCC sales article, which one of the following statements is correct?

The obligations of the parties to the contract must be performed in good faith.

11. Finn learns that, despite his stellar record, he is being paid less than other salespeople at Barry Co. So he decides to start his own company. During his last month on the Barry payroll, he tells all of his clients about his new business. He also tells them that Barry is a great company, but his fees will be lower. After he opens the doors of his new business, most of his former clients move with him. Is Finn liable to Barry?

Yes, Finn has violated his duty of loyalty to Barry.

Gregg Young, the CEO of BJY Inc., insisted on calling Mamdouh El-Hakem "Manny" or "Hank" even when El-Hakem asked him not to. El-Hakem was of Arab heritage. Young argued that a "Western" name would increase El-Hakem's chances for success and would be more acceptable to BJY's clientele. Does this behavior violate the law?

Yes, Young violated Title VII by discriminating against El-Hakem on the basis of his national origin. Yes, Young was creating a hostile work environment.

Figgins is the dean of a college. He appointed Sue acting dean while he was out of the country and posted an announcement on the college web site announcing that she was authorized to act in his place. He also told Sue privately that she did not have the right to make admissions decisions. While Figgins was gone, Sue overruled the admissions committee to admit the child of a wealthy alumnus. Does the child have the right to attend this college?

Yes, because Sue had apparent authority

Under UCC Article 9 on secured transactions, which of the following statements is correct concerning the disposition of goods by a secured creditor after a debtor defaults on a loan?

A good faith purchaser of the goods for value and without knowledge of any defects in the sale takes free of any security interest.

On Monday, Wolfe paid Aston Co., a furniture retailer, $500 for a table. On Thursday, Aston notified Wolfe that the table was ready to be picked up. On Saturday, while Aston was still in possession of the table, it was destroyed in a fire. Who bears the loss of the table?

Aston, because Wolfe had not yet taken possession of the table

Fred assembles computers in his garage and sells them. He makes and agreement with Alpha Company under which Alpha will deliver 100 keyboards. The agreement does not specify when payment is due. Which of the following is true?

Fred must pay within a commercially reasonable time.

When Brooke went to work at an advertising agency, his employment contract stated that he was, "at will and could be terminated at any time." After 28 months with the company, he was fired without explanation. Which of the following statements is true?

He could be fired for any reason except a bad reason.

At Business University, semester enrollment begins at midnight on April 1. Jasper asked his roommate Alonso as a favor to register him for an important required course. Alonso agreed to do so but then overslept. As a result, Jasper could not enroll in the required course he needed to graduate and had to stay in school for an additional semester. Is Alonso liable to Jasper?

No, because Alonso was not grossly negligent.

When Allain University was looking for a diversity officer, it decided it would only hire a person of color. Is this decision legal?

No, neither race nor color can be a BFOQ.

The CEO of BankTwo realized that not one single officer of the bank was female or minority. He announced that henceforth, the bank would only hire people in these two groups until they made up at least 30 percent of the officers. Is this plan legal?

No, the plan is too unfair to white men, who have no chance of being hired for a long time.

During a job interview with Venetia, Jack reveals that he and his wife are expecting twins. Venetia asks him if he is planning to take a leave once the babies are born. When Jack admits that he would like to take a month off work, he can see her face fall. She ultimately decides not to hire him because of the twins. Which of the following statements are true?

None of the above. The FMLA only applies to people who have worked for the company for a year. Jack is not pregnant, so the Pregnancy Discrimination Act does not apply.

Kurt asked his car mechanic, Quinn, for help in buying a used car. Quinn recommends a Ford Focus that she has been taking care of its whole life. Quinn was working for the seller. Which of the following statements is true?

Quinn must pay Kurt the amount of money she received from the Ford's prior owner.

Ralph has worked as model builder at Snowdrop Architects for 30 years. The firm replaces him with Charlotte who is only 24 and willing to work for 30% less than his salary. The firm never offered to let him stay for less pay. When he left, one of the partners told him, "Frankly, it's not a bad thing to have a cute young person working with the clients." Which of the following statement is true?

Snowdrop is not liable because age was not the deciding factor in Ralph's firing.

Assume that a contract is modified. New consideration must be present for the modification to be binding if the deal is governed by:

The common Law

During chemotherapy for bone cancer, a delivery person is exhausted, nauseous and weak. He has asked permission to come in later, work a shorter day and limit his lifting to 10 pounds. Delivery people typically carry packages of up to 70 pounds. Does Vulcan, his employer, have the right to fire him?

Vulcan must transfer the employee to another position but only if one is vacant and he is able to perform it.

Under the UCC Statute of Frauds, a contract must be signed by the __to count as being "in writing". Also, the __of the goods must be written.

defendant; quantity

Sam obtains a Patek Philipe watch from Greg by fraud. It has a retail price of $10,000. He sells it to Melissa for $9000. She believes he owns the watch. Melissa __ a bona fide purchaser. Sam disappears. If Greg discovers that she has the watch and demands that it be returned, Melissa __ have to give the watch to Greg.

is; will not