Business Law Final: Multiple Choice

Riley, a State Bank employee, deposits into his account checks that are given to him by bank customers to deposit into their accounts. This is a. embezzlement. b. larceny. c. money laundering. d. no crime.

A

A specific grade of corn that fills BioFuel Cooperative's silo is fungible. this means that the corn is a. alike naturally or by agreement or trade usage. b. fundamentally different. c. fundamentally edible. d. perishable.

A.

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.

A.

City Car Company and Dave's Autos enter into a contract for a sale of motor vehicles. City assures Dave's that it has valid title to the vehicles. Under the UCC, a warranty of title arises a. automatically in most sales contracts. b. only if the buyer asks for such a warranty. c. only if the seller expresses such a warranty. d. only in conjunction with lease contracts, not sales contracts.

A.

Claudia enters into a contract with Bayside Inn to provide Bayside's guests with complimentary breakfast foods. When a dispute arises over the terms of their contract, Bayside files a suit against Claudia. If the contract's writing is clear and unequivocal, a court will a. enforce it according to its obvious terms. b. give greater consideration to standardized terms. c. give greater consideration to general language. d. interpret it against the party who did not draft the contract.

A.

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.

A.

Creekside Property Corporation enters into a contract with Downstream Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is a. a limitation-of-liability clause. b. an exculpatory clause. c. an illegal clause. d. a quasi contract.

A.

Diamond Financial Planners employs Ella, who is the firm's most productive performer. Ella, dissatisfied with the commission structure, quits to work for Feldstar Investments, Inc. She takes her list of Diamond clients to induce them to switch to Feldstar. Trade secrets law covers a. Diamond's list of clients. b. Ella's performance. c. Ella's prior salary. d. none of the choices.

A.

Digital Architecture, Inc., enters into a contract to design robotic software for Chassis Assembly Corporation. The requirements of this, and any other, contract include a. something of value received or promised to convince a person to make deal. b. persons whose characteristics qualify them as implied parties. c. negotiation and compromise. d. a paragraph that describes the contracting parties' intent.

A.

Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, "Forget it. I changed my mind." Elmore's offer was terminated by a. Elmore. b. Ford. c. Grace. d. no oneElmore's offer is still open.

A.

Frank and AgriShip, Inc., enter into a contract for AgriShip to transport a silo of soybeans for which Frank agrees to pay. When AgriShip's schedule conflicts, the firm contacts Hybrid Transport Company, to which AgriShip "assigns all rights under the contract." This transfer is a. an assignment and a delegation. b. an assignment only. c. a delegation only. d. neither an assignment nor a delegation.

A.

Grover contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Grover is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. The parties' belief about the adjacency of the property is a. a bilateral mistake. b. a fraudulent misrepresentation. c. a unilateral mistake. d. unconscionable.

A.

In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Daphne v. Even Steven Auto Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to a. allow the minor in the Daphne case to cancel the contract. b. disregard the Ben case. c. order the minor in the Daphne case to cancel the contract. d. require the minor in the Daphne case to fulfill the contract.

A.

In Sales Distribution Corp. v. Consumer Products Co., the court decides that a precedent is incorrect or inapplicable. The court a. may rule contrary to the precedent. b. must apply the precedent. c. must ask a higher court to rule on the case. d. must refuse to decide the case.

A.

Jamal signs a lease with Kelvin to occupy a house on Leech Lake in Minnesota for the summer. Jamal's tenancy is a. a fixed-term tenancy. b. a periodic tenancy. c. a restrictive covenant. d. a tenancy at will.

A.

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. Refer to Fact Pattern 2-1. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the advantages of a. arbitration. b. conciliation. c. intervention. d. mediation.

A.

Joy induces Kelly to enter into a contract for the purchase of a condominium about which Joy knowingly misrepresents a number of material features. When Kelly discovers the truth, Kelly can a. enforce the contract and seek damages. b. enforce the contract but not seek damages. c. neither enforce the contract nor seek damages. d. seek damages but not enforce the contract.

A.

Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson's farm acreage for four corn-planting seasons. After Jaime prepares the land and plants the first crop, Karson says that their deal is off. Jaime can most likely recover a. in quasi contract. b. in reformation. c. in restitution. d. on the parties' existing contract.

A.

KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands. KupaJava agrees to pay Lola a salary, plus commission. KupaJava stipulates the standards that should be observed, the goals that should be attained, and the methods that should be used. Lola is most likely KupaJava's a. employee. b. independent contractor. c. principal. d. work for hire.

A.

Lou claims that he and Myra entered into an implied-in-fact contract. To establish this contract, it is not necessary to show that a. a court imposed a promise in the interest of fairness. b. Lou expected to be paid for providing services or property. c. Lou provided Myra with services or property. d. Myra failed to reject services or property provided by Lou.

A.

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.

A.

Orin owns Pilot's Landing Office Park. His ownership rights include the right to sell or give away the property without restriction, as well as the right to commit waste, if she chooses. Orin's ownership interest is a. a fee simple absolute. b. a leasehold estate. c. a life estate. d. the power of eminent domain.

A.

Over the course of a year, Real Deal Corporation sells appliances to customers to whom it extends credit. Real Deal orders the appliances from Superior Appliance Company's warehouse, from which the items are shipped via common carrier to Real Deal's customers. Article 2 of the UCC governs a. all of the parties' sales of the goods. b. Real Deal's extension of credit. c. Superior's storage of the goods. d. the common carrier's delivery of the goods.

A.

Ozzy is an officer of Prudent Financial Corporation. Ozzy serves in a representative capacity for Prudent Financial's owners. With respect to binding Prudent Financial to contracts, Ozzy 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.

A.

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.

A.

Ralph offers to sell Sophie, who is seventeen years of age, a car about which Ralph intentionally misrepresents several material facts. In reliance on the misrepresentations, Sophie buys the car. To prove fraud in this transaction, Sophie would have to show that a. Ralph intentionally deceived Sophie. b. Ralph made statements that were obviously exaggerated. c. Sophie does not know anything about cars. d. Sophie is under eighteen years of age.

A.

Roy and Sheila are parties to a contract. They subsequently agree that Tony should take Roy's place and assume all of his rights and duties under the contract. This is a. a novation. b. an accord and satisfaction. c. an assignment. d. a modification.

A.

To acquire the ownership of a mountain cabin by adverse possession, Cody must occupy the cabin exclusively, continuously, and peaceably for a specified period of time a. in an, open, hostile, and adverse manner. b. until the owner files a suit. c. without the owner's knowledge. d. with the state's permission.

A.

Tyro has the right to drive across Ula's land, which is next to Tyro's property, to reach an access road. Tyro's right is a. an easement appurtenant. b. an easement in gross. c. a profit appurtenant. d. a profit in gross.

A.

Delite Candy Company hires Elton to sell Delite's products in a certain area. Delite agrees to pay Elton a salary, plus commission, for a trial period. They also agree that Elton can sell using any methods and during any hours that seem appropriate. The key factor in whether Elton is Delite's employee is a. the amount of Elton's salary. b. the control Delite has over the details of the work. c. the length of the trial period. d. the title that designates Elton's position.

B

A Minnesota state statute restricts certain kinds of advertising to protect consumers from being misled. A court would likely hold this statute to be a. an unconstitutional restriction of speech. b. constitutional under the First Amendment. c. justified by the need to protect individual rights. d. necessary to protect national interests.

B.

Belle enters into a contract to subdivide and sell housing lots in Cole's hillside field if Dell City annexes the property within the next year. Belle's duty to perform is a. absolute. b. conditional. c. illusional. d. irresolute.

B.

Cielo is fifteen. In most states, Cielo would be considered a minor because she is under the age of a. sixteen. b. eighteen. c. twenty. d. twenty-one.

B.

Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract is subject to a. Article 2 of UCC. b. Article 2A of the UCC. c. Article 11 of the CISG. d. the common law only.

B.

Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongful interference with a. a bargaining relationship. b. a business relationship. c. a contractual relationship. d. a customer relationship.

B.

Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid Corporation's design without Hybrid's permission. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.

B.

Hi-Tech Company contracts to sell fiber optic cable to Internet Services, Inc. Hi-Tech may bring an action to recover the purchase price and incidental damages if Internet a. accepts the cable and pays for it. b. accepts the cable but does not pay for it. c. rejects the cable. d. revokes acceptance of the cable.

B.

In a dispute over a sale involving a bicycle, Dain argues that as to this deal Elle's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Elle's is a merchant by assessing whether a. it has sold any bikes within the last year. b. it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction. c. its owner enjoys biking. d. it subscribes to Bike, a biweekly trade magazine.

B.

In a suit against Sandy, Taylor obtains a remedy. In the U.S. legal system, this remedy will most likely be a. an injunction b. damages c. rescission d. specific performance

B.

Jon agrees to sell his K9 Sports Equipment store to Lacy. As part of the sale, Jon promises never to open a similar, competing store anywhere. Jon's promise is most likely a. invalid because it is part of a sale of an ongoing business. b. invalid because of the unreasonable terms of area and time. c. valid because it is part of a sale of an ongoing business. d. valid because Jon and Lacy apparently have the capacity to contract.

B.

Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover a. $13,000. b. $10,000. c. $3,000. d. $0.

B.

Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning 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.

B.

Lew angrily accuses Mandy, a broker with New Financial Services, of fraudulently inducing him to invest in Open Pit Oil Company, whose wells are dry. The reliance that gives rise to liability for fraud is normally based on a statement of a. emotion. b. fact. c. opinion. d. puffery.

B.

Mikayla enters into a contract with Logan to provide surface material for Mikayla's tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is a. an excessive estimate of the loss on a breach. b. a reasonable estimate of the loss on a breach. c. designed to penalize the breaching party. d. intended to quickly provide cash to the nonbreaching party.

B.

Mineral Resource Company contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts, the distributor a. can substitute some other material for the tin. b. is excused from the performance of its contracts. c. is liable for breach of contract. d. must still supply the tin needs of its customers.

B.

Moby, a resident of New Jersey, has an accident with Ogden, a resident of New York, while driving through New York. Ogden files a suit against Moby in New York. Regarding Moby, New York has a. federal question jurisdiction. b. in personam jurisdiction. c. in rem jurisdiction. d. no jurisdiction.

B.

Mona offers Ned, a building inspector, money to overlook the violations in her new warehouse. Ned accepts the money and overlooks the violations. Mona is charged with the crime of bribery. The crime occurred when a. Mona decided to offer the bribe. b. Mona offered the bribe. c. Ned accepted the bribe. d. Ned overlooked the violations.

B.

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.

B.

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.

B.

Page points a knife at Ray's daughter, threatening to hold her hostage and "cut" her unless Ray takes a certain file from Skelter Supplies Corporation, his employer. Charged with theft, Ray can successfully claim as a defense a. insanity. b. duress. c. entrapment. d. self-defense.

B.

Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within "3" days, although the parties intend "30" days. Refined cannot convince Select to amend the contract. Refined should seek a. damages. b. reformation. c. rescission. d. specific performance.

B.

Rita believes that Shady Grove Apartments, Inc., her landlord, has violated the law in a way that entitles her to withhold the rent. This remedy is generally associated with a. breach of the covenant of quiet enjoyment. b. breach of the implied warranty of habitability. c. discrimination. d. failure to provide security against crimes in common areas.

B.

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m. and 6 a.m. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been a. absolute. b. complete. c. conditional. d. substantial.

B.

Sam is a judge hearing the case of Local Co. v. National Corp. Applying the relevant rule of law to the facts of the case requires Sam to find previously decided cases that, in relation to the case under consideration, are a. as different as possible. b. as similar as possible. c. at odds. d. exactly identical.

B.

Silky Material Corporation in New Jersey sells fifty tons of fabric to Tattered Clothing, Inc., in Ohio, "F.O.B. New Jersey." The cost of transporting the fabric to Ohio will be paid by a. Silky Material. b. Tattered Clothing. c. New Jersey. d. Ohio.

B.

To prepare for a trial between Large Lots Development Corporation (LLDC) and MiniMansion Construction Company (MMCC), MMCC's attorney places LLDC's president under oath. A court reporter makes a record of the attorney's questions and the officer's answers. This is a. a cross-examination. b. a deposition. c. an imposition. d. an interrogatory.

B.

Utility Power Company has the right to run its power lines across Velma's land. This is a. a license. b. an easement. c. a profit. d. a tenancy at sufferance.

B.

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.

B.

Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his business license. Yummy's duty to perform is a. absolute. b. conditional. c. licentious. d. operational.

B.

An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Key, a patron, is injured. Jack's has committed a. a dram shop act. b. contributory negligence. c. negligence per se. d. res ipsa loquitur.

C.

Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it according to the contract specifications. Candy hires Do-We Fix-It Company to finish the project. Candy may recover from Beachside a. the contract price less costs of materials and labor. b. the contract price. c. the costs needed to complete construction. d. profits plus the costs incurred up to the time of the breach.

C.

Biff wrongfully takes an unopened carton from a Cold Storage Warehouse loading dock, puts the carton in his car, and drives away. This is a. burglary. b. forgery. c. larceny. d. no crime.

C.

Clear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Great Vu, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivery is in a. California. b. Delaware. c. Florida. d. Hawaii.

C.

Clu serves in a representative capacity for Digger. Elmo is injured through Clu's negligence. Digger may be liable to Elmo if Clu's conduct occurred a. due to a propensity Digger was not and could not have been aware of. b. during normal working hours. c. in the course and scope of Clu's employment. d. outside the parties' employment relationship.

C.

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.

C.

Cray returns a digital music player that he bought from Discount City, which refunds the price. Their exchange involves a. an emancipation. b. a ratification. c. restitution. d. severability.

C.

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.

C.

Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf. Edwina later contacts Frida to approve the contract. This is a. an agency by agreement. b. an agency by estoppel. c. an agency by ratification. d. not the creation of an agency relationship.

C.

Electric Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each sales agreement should note that a car is sold a. as is. b. in perfect condition. c. subject to warranties included in the written contract only. d. with no known defects.

C.

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.

C.

GR8 Skates Company makes and sells a pair of skates to Hugh. GR8 fails to exercise "due care" to make the skates safe, and Hugh is injured as a result. GR8 is most likely liable for a. assumption of risk. b. knowledgeable use. c. negligence. d. product misuse.

C.

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.

C.

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.

C.

In Fancy Frills Corporation's suit against Glamour Stores, Inc., the jury returns a verdict in Fancy's favor. Glamour files a motion asking the judge to set aside the verdict and begin new proceedings. This is a motion for a. a judgment in accordance with the verdict. b. a judgment on the pleadings. c. a new trial. d. judgment n.o.v.

C.

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. Refer to Fact Pattern 2-1. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of settling their dispute may be mediation because a. the case will be heard by a mini-jury. b. the dispute will eventually go to trial. c. the process is not adversarial. d. the resolution of the dispute will be decided an expert.

C.

Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know a. Milo. b. Nadine. c. that the marimba is stolen. d. what a marimba is.

C.

Mavis, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on her religion's principles. The First Amendment guarantees Mavis's freedom of a. religion only. b. speech only. c. religion and speech. d. neither religion nor speech.

C.

Melanie engages in false speech that 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.

C.

Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry a. compensatory damages. b. consequential damages. c. nominal damages. d. punitive damages.

C.

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.

C.

Oven Products Company makes microwave ovens. Pico discovers that his Oven Products oven is defective and sues the maker for product liability based on strict liability. To win, Pico must show that a. Oven Products sold the oven to Pico. b. Pico knew and appreciated the risk caused by the defect. c. Pico suffered an injury caused by the defect. d. the "defect" was a commonly known danger.

C.

Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel, including the land, building, furnishings, shares of stock in Suite Dreams Company, and a contract with Trudy to create an ad campaign. Reba suspects that Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs a. the sale of any of the property evidenced by a writing. b. the entire deal, including the marketer's services. c. the sale of the furnishings priced at $500 or more. d. the sale of the land and the building.

C.

Raw Material, Inc., and Sewn Fabric Corporation enter into a contract for a sale of muslin. The terms do not clearly indicate whether it is a destination or shipment contract. A court would most likely presume that it is a. a bailment contract. b. a destination contract. c. a shipment contract. d. a transportation contract.

C.

Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products. Regional, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent a. all implied warranties displace all express warranties. b. all express warranties displace all implied warranties. c. the implied warranty of fitness for a particular purpose takes precedence. d. the implied warranty of merchantability takes precedence.

C.

Uri sells 100 cases of vitamins to Wanda, but before she takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of a. physical possession. b. product liability. c. risk of loss. d. title.

C.

Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's promise to pay. Avatar delivers. The contract is a. voidable. b. executed. c. executive. d. executory.

D.

Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as a. a blameless person. b. a faultless person. c. a reliable person. d. a reasonable person.

D.

Cathy assures Don that she will deliver his products as he directs. An assertion that one will do something in the future is part of the definition of a. a declaration. b. a moral obligation. c. an ethical principle. d. a promise.

D.

Clyde enters Desert Decathlon, an athletic competition in which Clyde has often competed. Regarding the risk of injury, Clyde assumes the risks a. attributable to the Decathlon in any way. b. different from the risks normally associated with the Decathlon. c. greater than the risks normally associated with the Decathlon. d. normally associated with the Decathlon.

D.

Dina and Elle agree that Elle can satisfy a preexisting debt owed to Dina by paying the money directly to Fava. The designation of this contract as a third party beneficiary contract is determined by the intent to benefit a. Dina, Elle, and Fava. b. Dina only. c. Elle only. d. Fava only.

D.

Donney takes the trade secrets of Effervescent Soda Company without Effervescent's consent. Donney gives the secrets to Fruity Drinks Corporation, an Effervescent competitor, without compensation. Fruity knows that the secrets were acquired without Effervescent's consent. Under federal law, Fruity has committed a. a crime only if Fruity uses the secrets. b. a crime only if Effervescent later discovers the theft. c. not a crime. d. a crime.

D.

During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is a. the assessment of the arguments on the issues. b. the determination of the issues to be argued. c. the litigation of the issues and arguments. d. the selection of jurors.

D.

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.

D.

Jaqy distributes a handbill among her neighbors accusing one of themKedof being a convicted sex offender. The statement is defamatory only if a. a neighbor repeats it. b. Ked suffers emotional distress. c. the statement is true. d. the statement is false.

D.

Justice For All, a political organization, files a claim to challenge a Colorado statute that limits the liberty of all persons to broadcast "annoying" radio commercials. This claim is most likely based on the right to a. engage in interstate commerce. b. privacy. c. procedural due process. d. substantive due process.

D.

Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio a. has a sufficient stake in the matter. b. has jurisdiction. c. has sufficient minimum contacts with the parties. d. is a more convenient location to hold the trial.

D.

Network Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to design and install custom software in Network's computer system. Network is a. the appellant. b. the appellee. c. the defendant. d. the plaintiff.

D.

Oceanic Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Oceanic is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached a. only if Oceanic did not know about and could not have discovered the defect. b. only if Oceanic did not know about the defect. c. only if Oceanic knew about or could have discovered the defect. d. regardless of what Oceanic knew or could have discovered.

D.

Ollie buys a cup of coffee for $2, a magazine for $5, and a boombox for $600. The requirement of a writing for the enforceability of a contract for a sale of goods at, or for more than, a certain price is governed by a. the common law. b. the parol evidence rule. c. the parties' agreement. d. the Uniform Commercial Code.

D.

Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover a. the contract price less costs of materials and labor. b. the contract price. c. the costs needed to complete construction. d. profits plus the costs incurred up to the time of the breach.

D.

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.

D.

Rodeo, S.A., which is based in Spain, enters into a contract for the sale of seven hydraulic lifts to Tonnage Shipping Company, which is based in the United States. This contract is governed by a. Spanish law. b. the provisions in the laws of both countries that are similar. c. Article 2 of the UCC. d. the United Nations Convention on Contracts for the International Sale of Goods.

D.

To avoid liability for intentional injuries, Vermont Power Corporation includes in its contracts an exculpatory clause. This is a. enforceable if the other parties are protected from liability. b. enforceable if the other parties consent to it. c. enforceable if the other parties have equal bargaining power. d. not enforceable.

D.

Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may a. monitor any arbitration until it concludes. b. order an arbitrator to rule in a particular way. c. order a party to bring the dispute to court. d. order a party to submit to arbitration.

D.

Wally's Warehouse offers to sell a certain used forklift to Value Lumber Outlet, but it is stolen before Value accepts. Most likely, Wally's must obtain a. a forklift for Value if Wally's insurance covers the loss. b. a forklift for Value if it still wants one. c. nothing for Value because that would extend the time of the offer. d. nothing for Value because the theft terminated the offer.

D.