Business Law Midterm Review

Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as

A service mark

Wrongfully taking or retaining possession of an individual's personal property and placing it in the service of another is known as

A tort of conversion

A ___________________ is an order issued by the Supreme Court to a lower court requiring that court to send the record of the case for review.

A writ of certiorari

These are protected by the First Amendment:

An offensive political t-shirt.

Apex Electrical, Inc., agrees to allow Apex Foundations LLC to use the owner's trademark "Apex" as part of its company name, but not otherwise. The domain name apex.com can be used online by

Apex Electrical only.

Good intentions are not a defense against conversion, and someone who buys stolen goods

Can be sued for conversion even if the buyer did not know that the goods were stolen.

The law that applies to ISPs and protects them from liability for posting defamatory statements from a third party is:

Communications Decency Act.

If Terry wants to sue Jerry and they are citizens of different states, and the amount of damages sought is $100,000. Furthermore, Jerry has long-arm and minimum contacts with Terry's state, the fact that Terry can bring the suit in his home state court or federal court is called:

Concurrent jurisidiction

ChemCo Inc. expends funds and takes steps to ensure that all employees are treated fairly, and that they are acting ethically and are accountable to society. This is the concept of:

Corporate social responsibility

Berry Good LLC registers its trademark with the U.S. Patent and Trademark Office, and uses it to market a distinctive line of ice cream products. Crabapple, Inc., uses the mark without Berry's consent to sell imitation frozen desserts. Berry has a cause of action against

Crabapple.

______________________________ refers to the number of procedural devices to obtain information and gather evidence about the case from the other party or from third parties before the trial begins.

Discovery

______ does not prevent an injured party from bringing civil charges against a defendant once they are found innocent in a criminal case.

Double Jeopardy

Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,

Efron understood the legal consequences.

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that

Ernie is under twenty-one.

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.

United Wear, Inc., and Winter Gear stores enter into a contract for a sale of coats. Their contract can indicate that the price includes transportation costs to a specific destination by including the term

F.O.B

A copyright owner who sells a copy of a work retains the right to control the further distribution of that copy.

False

A general patent gives the inventor the exclusive right to make, use, and sell an invention for a period of thirty years.

False

Facts that are generally known to the public are copyrightable.

False

Information that cannot be patented, copyrighted, or trademarked cannot be protected as a trade secret.

False

Once a manufacturer's trademark is established, another manufacturer may use it without permission.

False

Only the federal government provides for the registration of trademarks.

False

Tapping into a competitor's computer to obtain confidential business data is not a theft of trade secrets.

False

The European Union's copyright rules limit the royalty protection for musicians to ten years.

False

The first person to invent a product gets the patent protection.

False

Chuck signs Dolly's name, without her authorization, to the back of her paycheck, which was issued by Eastside Market. This is

Forgery

______ states that all evidence derived from illegal means, normally must be excluded from the trial proceedings.

Fruit of the poisonous tree

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck is lost in a fire with the berries inside, following an accident. The loss of the berries is suffered by

Grocers.

Analytica LLC files a suit against the United States, challenging a congressional enactment mandating that employers pay their employees' student loans. The process by which the court decides this issue is

Judicial review

Kim takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Lum picks up the ring, puts it on, and walks away. Lum has likely committed

Larceny

Lumber LLC files a suit against Mill Company to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

Lumber foreseeably and justifiably relied on Mill's promise.

Under the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act, which of these would be allowed?

Mailing a seasonal coupon out to a previous customer.

On May 1 Ralph offers to harvest Sam's corn crop and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives the letter on May 5 and responds on May 6. Ralph's revocation of the offer became effective on

May 6

Jill and Kane meet with their attorneys to try to resolve a dispute. A neutral third party works with both sides and proposes a solution but does not make a decision resolving the matter. This is an example of:

Mediation

______ can excuse one from criminal liability under the theory of mistake.

Mistake of fact

__________ engages in financial transactions to conceal the identity, source, or destination of illegally gained funds.

Money laundering

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is

New Credit

Quarry Mining Inc. and Riverside Vineyards agree to resolve a dispute in arbitration. The arbitrator meets with Quarry's representative to discuss the matter without Riverside's representative being present. Is this normally allowed during arbitration?

No.

Under corporate social responsibility, which of these is not an activity that would qualify:

Paying all employees the same wage

Which of the following does not qualify as an invasion of privacy?

Privilege

_______________________ is essentially a trademark that is used to distinguish the services (rather than the products) of one person or company from those of another.

Service mark

Which of the following is a common type of trespass to land?

Shooting a gun over the land

Sid offers Tina, a city inspector, money to overlook health code violations in his restaurant. Tina accepts the money and overlooks the violations. Sid is charged with the crime of bribery. The crime occurred when

Sid offered the bribe.

A person must have _______________________________, or a sufficient "stake" in the matter to justify seeking relief through the court system.

Standing to sue

A______________________ consists of a document that notifies a defendant that a legal action has been commenced against them, and that they must appear in court to answer the complaint.

Summons

Hale, research manager for Investor Fund, Inc., adheres to utilitarian ethics in making business and ethical decisions that involve the actions of the firm. According to this standard, an action is morally correct when it produces the greatest good for

The greatest number

With respect to what society will tolerate, a company's compliance with the law, and no more, is

The moral minimum

Flo, the manager of Grounds Maintenance Inc., must decide whether to use an herbicide that could be unhealthy to employees. They want to use it (as well as the public) once it is on the ground. Flo might lose the client if she refuses to use the herbicide. If Flo analyzes the importance of good health and the avoidance of disease as the rights of people in making her decision, she is likely using

The principle rights theory

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

True

A trademark owner that successfully proves infringement can recover the profits that the infringer wrongfully received from the infringement.

True

Generic terms that refer to an entire class of products, such as bicycle and computer, receive no protection, even if they acquire secondary meanings.

True

The United States has signed the Anti-Counterfeiting Trade Agreement (ACTA), an international treaty to combat global counterfeiting and piracy.

True

To obtain copyright protection under federal law, a work must be original

True

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

True

Bette choreographs a dance to accompany City Orchestra's performance of a medley of movie scores. Dian, a dance instructor, distributes copies of a short portion of the choreography to her students. This is most likely

a "fair use"

Jan tells Lee she will pay him to babysit her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

a bilateral contract.

Talk, Inc., offers to buy from Ultra Corporation 1,000 phones with certain features. Without notifying Talk, Ultra timely ships phones with fewer features. With respect to the offer, this shipment is an acceptance and

a breach.

Greg is marketing manager for Home Stuff LLC. Greg is responsible for branding the company's products. Aspects of branding that can be trademarked include

a catchy phrase, such as "Stuff your home with Home Stuff!"

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must click "I agree" to a provision stating that she will not make and sell copies of the music. This provision is

a click-on agreement

State University provides housing on campus, and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

a condition.

Via the Internet, Britta enters false code into the computer control system of Chicken Company, a food maker, to alter the levels of ingredients so that consumers of the food become ill. Britta is

a cyberterrorist

Haji is arrested at a warehouse in Industrial Park and is charged with the crime of theft. Haji will be prosecuted by

a district attorney or an attorney general.

Jason, a citizen of Kansas, wants to file a suit against Lora, a citizen of Michigan. Their diversity of citizenship may be a basis for:

a federal court to exercise jurisdiction.

Martin files a suit against Nichelle in a state court over an employment contract. The case proceeds to trial, after which the court renders a verdict. The case is appealed to the state's highest court. After that court's review of Martin v. Nichelle, a party can appeal the decision to the United States Supreme Court only if

a federal question is involved.

Sam, driving under the influence, causes a car accident that results in the death of Tanya. Sam is arrested and charged with a crime punishable by imprisonment for more than a year. This crime is

a felony

Interstate Transport Company pays Trucks & Trailers, Inc., a stated price for the use of seven tractor-trailer rigs for a year. Under the UCC, this is

a lease

Burger Corporation allows its trademark to be used as part of a domain name for Burger NY Inc., an unaffiliated company. Burger NY Inc. does not obtain ownership rights in the mark. This is an example of:

a license

O-Ring Corporation allows Piston Company to incorporate O-Ring's patented fuel-injection system into Piston's product. This is

a license

Rue obtains permission from Saga Corporation to use the firm's game app, Boggle, on their mobile devices. Rue does not obtain any ownership rights in the app. This is an example of:

a license

With respect to different types of transactions, including ordinary loans, the purpose of a usury statute is to

a maximum rate of interest.

Andy causes a disturbance at Brew Pub. He is arrested and charged with disorderly conduct; a crime punishable by imprisonment up to one year. This crime is

a misdemeanor.

Clean Clinic offers to buy from Dental Supplies Company a specific quantity of a certain type of floss for a stated price. Dental can accept the offer by

a promise to ship (or a prompt shipment) the goods.

Mining Corporation purchases the business assets of Open Pit, Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is

a sale

Galaxy Research, Inc., uses a mark associated with its name to distinguish its services from those of other tech firms. This mark is

a service mark

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp, Inc. Unless the contract states otherwise, this is assumed to be

a shipment contract

The tort of misrepresentation may involve reliance on:

a statement of opinion.

Paving Corporation taps into the computer network of Roadwork, Inc., a competitor, and downloads confidential business data without Roadwork's knowledge or authorization. This is most likely

a theft of trade secrets

The publication of false information about another's product alleging that it is not what its seller claims is

a tort, slander of quality, and a trade libel.

Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is

a trade name

Red offers to pay Sara to deliver certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have

a unilateral contract.

Data, Inc., offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is that

a unilateral mistake does not afford relief from a contract.

Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. According to the UCC, this is

a usage of trade

Main St. Market, Inc., and Natural Food Corporation discuss the terms of a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Between these parties, the e-mails are

a written contract

Grain Mill Company brings a suit against Milled Grain Company under the Anticybersquatting Consumer Protection Act (ACA), alleging that Milled Grain is profiting from a domain name that is confusingly similar to Grain Mill's trademark. If Grain Mill is successful, their recovery may include:

actual damages and profits.

France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain's copyright must be recognized by

all of the signatories of the Berne Convention.

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now, instead of $5,000 later. This is

an accord and satisfaction

The utilitarian theory of ethics does not require

an assessment of the effects of alternatives on those affected.

Sara files a suit in a state court against Tech Innovations Inc. The parties are allowed to file litigation-related documents with the court online for their state. This is considered:

an electronic court filing system.

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

an injunction

ABC Corporation wants to create something that will help protect their trade secrets and still allow communication between employees of all of their branches. What would be their best option?

an internal social media network.

Lon says to Misty, "I would like to sell you my vinyl records." This statement is

an invitation to negotiate, not an offer.

Luke puts his motorcycle up for sale via a post on an online auction site. This is

an invitation to negotiate, not an offer.

Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one-year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

an offer and an acceptance.

In a suit against Karen, Luke obtains an injunction. This is

an order to do or to refrain from doing a certain act.

Pros in Politics, a bookstore in Capitol City, sells publications that criticize government actions and policies. The city enacts an ordinance prohibiting the sale of such materials in the interest of preserving public tranquility. This ordinance is most likely constitutional under the First Amendment.

an unconstitutional restriction of speech.

VidGames, Inc., markets a variety of shooting, fighting, and hunting video games. A state statute is enacted to require all game makers to label any games with an option to kill something as "excessively violent." A court would likely hold this regulation to be

an unconstitutional restriction of speech.

Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as

anticipatory repudiation.

Nature's Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Nature's Eggs can reasonably ask Omelet Express to pick up the eggs at

any reasonable hour

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.

Stig creates unique graphic works that feature characters of his own imagination. Copyright protection for Stig's work is

automatic and no registration required

Cass, a certified public accountant, agrees to perform an audit for Drone Distribution, Inc. These parties are most likely to follow the rules of contract law in order to

avoid potential disputes

Sure Good Appliance Corporation contracts with Trucking Company to take a selection of appliances to United Railroad, Inc., for United to transport the goods to a VeriSafe Company warehouse. Trucking, United, and VeriSafe each have possession of the goods by a document of title. These parties are

bailees.

Daisy enters into a contract with Evan for the construction of a Fast-Food Café, according to a certain schedule. The parties perform some preparatory steps, but Evan materially and willfully fails to begin work on the specified date. To rescind the contract, Daisy must show that the parties can

be restored to the status quo.

Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would

be unjustly enriched.

Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot. The discount is legally sufficient consideration

because it is a promise of something of value.

An intended third-party beneficiary cannot enforce a contract against the original parties until the third party's rights have

been fulfilled.

Compliance with the law is not always sufficient to determine if a decision or behavior is "right" because

being legal does not necessarily mean it is ethical.

Works that are copyrightable include

books, music videos, product packaging

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto

can reject the entire shipment

Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl

can rescind the deal based on fraudulent misrepresentation.

When a business makes an unethical decision and then rationalizes it by saying it is only a small issue, is an example of:

categorical imperative.

The UCC imposes on merchants

certain special business standards

ConnectWeb, Inc., operates a subscription-based service that extends the software and data storage capabilities of its subscribers. This is an example of:

cloud computing

Quint, an employee of Reservations Inc. pays Sienna, an employee of Reservations' competitor Travel Inc., for a list of Travel's clients. This is most likely

commercial bribery.

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward but finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of

communication.

Sara enters into a contract to sell her condo to Ted for a certain price on a specific day. On that day, Sara unconditionally offers to perform. Sara's offer

constitutes tender of performance.

Dana downloads music into her computer's cloud memory without authorization. This is:

copyright infringement.

Skye posts excerpts from comics and graphic novels on social networking sites without the permission of the owners of the copyrights. She says her reason is to promote the artists' work. This is an example of:

copyright infringement.

Without the permission of the copyright owner, Faye copies the literary expression of Game of Thrones, changes the names of the main characters, and publishes the result as her own work. This is

copyright infringement.

Obtaining a court order to close down the domain name of a website is an effective tool that U.S. officials use to combat online sales of

counterfeit goods

Kohl receives from Lily a camera stolen from Mark. Kohl knows that the camera is stolen, and he intends to keep it. Kohl is

criminally liable.

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

customers begin to associate the name with the source of the product.

Outsourcing Inc. registers a domain name that is the same as the trademark of Resourcing LLC, and offers to sell the name to the mark's owner, Resourcing LLC. This is an example of:

cybersquatting

Web Invest Inc. buys and sells domain names with the click of a mouse. The high rate at which domain names change hands, and the difficulty in keeping track of mass automated registrations, have created a situation where:

cybersquatting can easily flourish.

Fraudulent misrepresentation involves intentional deceit for personal gain and includes

damage suffered as a result of the reliance.

Dean solicits investors for a nonexistent business, eApps. Dean is arrested and charged with "mail fraud." This requires intent to

defraud the public.

Pine Mills Inc. agrees to sell a certain quantity of plywood to Quality Lumber Company under a destination contract. Pine Mills must

deliver the plywood to a particular destination.

Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should

demand assurances of performance from the seller.

Metro Holdings, Inc., contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is

designed to penalize Metro

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

discharged.

In making a business decision, Jin Soo brainstorms possible solutions to his problem, and then considers what he should do. If Jin Soo is using the IDDR approach to decision making, he is in the:

discussion step.

Rancho Stables orders ten saddles from Saddles, Inc. The sales contract states that if the tack is defective, Rancho will allow Saddles to repair or replace it instead of rejecting the shipment. When the gear arrives, it is defective. In this case, the perfect tender rule

does not apply.

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

does not have to pay Josh

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is

effective.

Quay, the owner of RV Park, trusts Sara to manage the resort's daily cash flow. One night, without Quay's knowledge or consent, Sara takes and keeps $1,000 from the receipts. This is most likely

embezzlement.

Insurance Company violates a state licensing statute when selling a policy to Jay, in whose state it is not licensed to sell insurance. As a member of the class of persons protected by the statute, Jay can

enforce the policy and recover from the insurer.

For ________ to succeed as a defense, both the suggestion and the inducement must take place.

entrapment

Music Masters, Inc., enters into a contract to pay Nagi for a dozen original songs. Nagi transfers the right to payment under the contract to Omni Artists. After the transfer, Nagi's contract right to the payment is

extinguished

The period of patent protection begins on the date when the patent application is ________________.

filed

According to the theory of corporate social responsibility, any decision by the management of Precision Processing Corporation should consider how a proposed action may affect only the

firm's officers, shareholders, and stakeholders.

Bruno buys and sells stocks and bonds. Bruno may be subject to penalties under the Racketeer Influenced and Corrupt Organizations Act

for the commission of securities fraud.

Dex sells a motorcycle to Elton without disclosing that the odometer, which reads 10,000 miles, was disconnected 100,000 miles ago. Dex is most likely liable for

fraudulent misrepresentation.

If a company strictly complies with existing laws, the firm will

fulfill some business ethics obligations.

Payback Inc. discovers that defamatory statements about its policies are being posted in an online forum. Q Web Inc., the Internet service provider whose users are posting the messages, refuses to reveal the users' identities. Payback Inc. should first:

gain unauthorized access to Q Web's servers.

Bob and Jim enter into a contract where Jim will custom make curtains for Bob's living room. Bob picks out the fabric and Jim makes the curtains. He delivers them to Bob and Bob refuses to pay, and says he does not like them. On what basis can Jim enforce?

good faith

Without a legal framework of reasonably assured expectations within which to make plans, businesspersons would most reliably be able to count only on others'

good faith

Leo is accused of a crime. To obtain information about the crime from Leo, the state can

grant Leo immunity from prosecution.

Safety Insurance Agency contracts with Town Motors to buy six cars. The contract lists the cars by their VINs (vehicle identification numbers). Under the UCC, identification

has taken place with the VIN numbers

Barry purchases some goods online from Acme Corp. He had clicked the accept terms box on the website when purchasing, which included a dispute resolution agreement that all disputes be sent to arbitration. He is unhappy with the product and injured by it. He brings a lawsuit in court against Acme Corp, and Acme files to dismiss based on the arbitration agreement. Barry will:

have to pursue arbitration for his dispute.

The triple bottom line looks at all of the following except

how decisions impact relations with foreign nations.

Sea Coast Café uses the trademark of Tacos del Mar without permission. This use of the mark is actionable as trademark infringement

if consumers are confused.

BeFriends Corporation uses the trademark of Community Life Inc., a social media site, as a meta tag without Community Life's permission. This may be permissible:

if it is shown to be reasonably necessary for BeFriend's business.

Without permission, Race Runners, Inc., uses a trademark that is similar to the registered mark of Swiftfoot, Inc. This use of the mark constitutes trademark dilution

if the use diminishes the distinctive quality of the mark.

Pia registers a domain name—quallitytires.com—that is confusingly similar to the domain name qualitytires.com used by Quality Tires Inc. Quality Tires Inc. also owns the trademark of quality tires. Pia has a "bad faith intent" to profit from the domain name by selling it to Quality Tires. This would be:

illegal by cybersquatting.

Dale's Uncle Ed tells Dale, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Ed's promise is

illusory.

Hal, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jack, a resident of Kentucky. Jack files a suit against Hal in Indiana. Regarding this suit, Indiana has

in remjurisdiction.

When adopting duty-based ethics, corporations often describe the values and duties they owe:

in their mission statements and strategic plans.

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be

in writing or evidenced by a written memorandum.

Business Center, Inc., and Catering LLC enter into a contract. Later, they agree to rescind it and enter into a new contract. If the first contract was subject to a preexisting duty, the new contract will most likely be

invalid.

Bon, an agent for City Motors, Inc., e-mails Dale on May 1 that the dealer will sell her a 2018 Ford pick-up truck for $25,000 between May 1 and July 1. Bon's offer to Dale is

irrevocable for the stated period.

County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Dale to Ezra, the furnished information is mistaken. The contract between Dale and Ezra that includes the mistake may be rescinded because the mistake

is about a material fact.

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor

is excused from the performance of its contracts.

Volatile Investments Inc. sends e-mail ads to all e-mail address they can find on the Web, or otherwise generate with software. Under the CAN-SPAM Act, Volatile's marketing method:

is prohibited

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

is the consideration that creates Kim's obligation to pay Leo.

The idea for "Price & Profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by

it cannot be protected

A statement by a salesperson that "this bike will never break—it is the best bike ever made," will not lead to an express warranty because

it is so clearly improbable.

Bud works at a Cheap Stuff Store from which, without authorization, he takes merchandise that he has not paid for home for his own use. This is

larceny

An internal business code of conduct is not

legally binding law.

Online contracts may be formed not only for the sale of goods and services, but also for:

licensing

Phoenix, Inc., is a publisher. Phoenix uses a logo featuring a bird rising from a flame to identify its publications. The publications are printed in a unique process that includes a 3-D printer. Phoenix could most likely obtain trademark protection for its

logo

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

national

Barley that fills County Grain Co-op's silo is fungible if the barley is

naturally alike, by agreement, or by trade usage

The failure to exercise the standard of care that a reasonable person would exercise in similar circumstances is

negligence

Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss could attempt to resolve their dispute through:

negotiation

Ruby invents a new type of pillow and obtains a patent for it. Sleep-Time, Inc., believes that Ruby's pillow infringes on one of Sleep-Time's previously patented products. Sleep-Time must file a challenge to Ruby's patent within

nine months

Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by

no one because it is oral

Ilene, an accountant, and Jerry enter into a contract under which Ilene agrees to perform audits for Jerry's Plastics Company. Ilene can delegate the duty to perform the audits to

no other party

Mix Restaurant Corporation owns the trademark "Mix." Remix Café Company begins to use the mark without authorization as their domain name. Mix files a suit against Remix on a theory of trademark dilution. This claim requires proof that:

no proof is necessary.

Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of vegetables. Some of the produce spoils before the buyer can resell it. Growers refuses to pay for the spoiled goods. In a suit over the dispute, the seller claims that the buyer assumed the risk of spoilage. The court may allow evidence of this claim if it finds that the parties' contract is

not fully integrated

EcoEnergy LLC files a suit against Fiber Optics, Inc., claiming that the consideration for their contract is inadequate—that the plaintiff will not realize sufficient financial benefit from the deal to make it worthwhile. Most likely, the court will

not question the adequacy of consideration.

Like most successful companies, Phones, Inc., has trade secrets. The law protects those secrets if the information is

of value to a competitor.

Mobile Device Company (MDC) discovers that defamatory statements about its products are being posted in an online forum. NuView Inc., the Internet service provider, whose users are posting the messages, can disclose the poster's identity:

only when ordered to do so by a court.

To be protected under the Copyright Act, a work must be

original and fixed in a durable medium.

Bob's Neighborhood Grocery agrees to buy all of Patricia's green beans that she produces this year. This is an example of a

output contract

GoodGro, Inc., makes genetically modified seeds that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely

patent infringement

The employees of Eco Engineering Inc. share company-related resources among multiple computers without requiring a central network server. This is an example of:

peer-to-peer (P2P) networking.

Copyright owners are protected against all, but which of the following:

people sharing copies with friends to read.

Elegant Carpets, Inc., agrees to sell a certain quantity of carpeting to Fantastic Floors stores under a shipment contract. Elegant Carpets must

place the carpeting into the hands of Great States Trucking, a carrier.

More than half of the states have enacted some type of legislation that:

prevents employers from asking employees or prospective employees their social media passwords.

Erica, a police officer, wants to search the offices of Debit & Credit, Accountants. She asks Judge Bern to issue a warrant. No warrant for a search can be issued without

probable cause

At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 15 percent. Nate finds the language of the contract difficult to understand. This is most likely

procedural unconscionability.

Marie claims that a Nebraska state statute infringes on her "procedural due process" rights. This claim focuses on

procedures used in making decisions to take life, liberty, or property.

Sales Corps Inc. provides tablets for its employees to use "in the ordinary course of its business." Sales Corps Inc. intercepts the employees' personal communications made on these devices. Under the Electronic Communications Privacy Act, this is

prohibited for the employer.

ABC Hardware Store orders one hundred power hand-drills from Best Tools Inc. When the hand-drills are delivered, they are all missing pieces. ABC rejects the shipment. To exercise a right to cure, Best Tools must

promptly notify ABC of the intent to cure.

Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to

provide Soapy with funds for its loss of the bargain.

Renee, a minor, enters into a contract to buy two all-season passes from Ski Mountain Resort. The contract will be made enforceable if Renee

ratifies it.

Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic's authorized mode of communication, it will be effective when it is

recieved

Reese contracts to sell her Spicy Pizza restaurant to Titian. As part of the deal, Reese agrees not to open a competing business within a hundred-mile radius for ten years. Reese later sues Titian, alleging that the agreement is illegal. To enforce the covenant not to compete, the court will most likely

reform the contract to make the distance and time limits reasonable.

Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely

reform the covenant.

Under _________, a court may impose criminal liability on corporate officers regardless of whether they participated in, directed, or even knew about a given criminal violation.

responsible corporate officer doctrine

Under ______, parties are restored to their original position prior to loss or injury, or placed in the position they would have been in had the breach not occurred. This often involves returning goods, property, or funds.

restitution

Bert pushes Connie to the ground, grabbing her phone as she falls. The use of force or fear is required for this act to constitute

robbery

To avoid unethical practices by a foreign supplier, an effective business practice is to

routinely monitor the foreign workplaces.

Salty Snacks, Inc., markets a fish-shaped cracker. When Tasty Tidbits, Inc., begins to sell a similar product, Salty files a suit against Tasty, alleging infringement and claiming that consumers are likely to be confused. The court will most likely

rule in the plaintiff's favor.

Insider trading is a violation of _______.

securities law

According to a ______, the party who opens the box automatically accepts the terms by keeping the goods.

shrink-wrap agreement

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

still liable on the bid.

Numerous federal courts now hold _____________________________ (another type of ADR), in which the parties present their arguments and evidence, and the jury renders a verdict.

summary jury trials

Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by

taking immediate action in response to unethical conduct.

The basis of all law in the United States is

the U.S. Constitution

Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily may recover damages for

the agent's fraudulent misrepresentation.

Donald is a minor. He can enter into any contract an adult can, provided

the contract is not one prohibited by law for minors.

One party wants to file a suit against another. For a court to hear the case,

the court must have jurisdiction over the parties, as well as the subject matter at issue.

Physicians Clinic orders by phone seven cases of single-use latex gloves from Quality Medical Supplies, Inc. After three cases are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to

the extent of the three accepted cases.

In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if

the fact is a serious defect known to Nan, but not to Marc.

Each court has a jurisdiction. Jurisdiction is best defined as

the geographic area in which a court has the power to apply the law.

Cindy, a real estate agent, sells her friend Doug's house without charging a commission. In return, Doug promises to give Cindy $1,000. This promise is not an enforceable contract because

the house has already been sold—the consideration is past.

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.

Ski Shop sells a pair of skis to Tami. When Tami uses the skis, they snap in two. The cause is something that Ski Shop did not know about and could not have discovered. This is a breach of

the implied warranty of merchantability.

Omar asserts that a deal he entered into with Pat to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Omar's best defense to the enforcement of this contract is

the lack of a party's voluntary consent.

Restore, Inc., contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover

the loss of profit from the delayed opening.

Rice Farm Corporation offers to sell Sushi Restaurants, Inc., five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels only if the rice is Grade A quality." Without more, their contract is formed according to

the new terms of the acceptance.

Predictive Data LLC makes and sells software that enables a business to target its advertising precisely. The company could successfully bring an action for copyright infringement against a competitor who copies

the parts of the software that can be read by humans.

Zoey is accused of auto theft. She refuses to give information related to her alleged criminal activities because she suspects it will be used to prosecute her. This is

the privilege against self-incrimination

Farmers Pantry Products Inc. and Market Grocers LLC dispute a term in their contract. Because the parties have a long-standing business relationship that they would like to continue, they would prefer to settle their dispute through mediation because:

the process is not as adversarial as litigation.

Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for

the purchase

Builders Inc. and Concrete Supply Company enter into a contract for a sale of cement. Concrete delivers, but Builders does not pay. Concrete can recover as damages

the purchase price plus incidental damages.

Gusher Irrigation, Inc., and Heartland Farm enter into a contract for a sale of irrigation equipment for $50,000. To be enforceable, the contract should be in writing and identify

the quantity

United, Inc., a U.S. film production company, files a suit against Video Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the U.S. and Mexico are signatories of the TRIPS agreement, under which United is entitled to

the same rights and protection under Mexican law as Video.

Leah, a citizen of Maine, obtains a federal license to operate a commercial fishing boat in a certain area off the Maine coast. The Maine state legislature enacts a law that bans all commercial fishing in that area. Most likely, the state law violates

the supremacy clause

When a publication denies or casts doubt on another's legal ownership of property, and the property's owner suffers financial loss as a result, this is

the tort of slander of title.

Pseudo Drugs, Inc., is convicted of trafficking in counterfeit prescription drugs. As a penalty, the company may be ordered to pay restitution to the trademark holders in an amount equal to

their lost net profits.

Businesses generally attempt to protect their __________________ by having all employees who use the process or information agree in their contracts, or in confidentiality agreements, never to divulge it.

trade secrets

Without authorization, Java Joe uses the trademark of The Best Coffee Company to help promote his cheap, flavorless coffee candy, which is not at all similar to The Best's products. Therefore it diminishes the distinctive quality of the coffee company's mark. This is an example of:

trademark dilution

CallTalk Corporation, a phone calling service, uses its mark "calltalk" as its domain name. Later, Converse Inc. uses the domain name "caltalk" (a deliberate misspelling of "calltalk") without CallTalk's authorization, to sell sexually explicit phone conversations. This is an example of:

trademark dilution.

Afford Motors LLC, an auto broker, uses the trademark of Ford Motor Company in a meta tag without Ford's permission. This is an example of:

trademark infringement.

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.

Ross registers a domain name—sweetfriedpotatos.com—that is a misspelling of a popular brand of sweet fried potatoes that has a domain name of sweetfriedpotatoes.com. This is an example of:

typo squatting

Graphix S.A. traffics in labels that bear counterfeit trademarks. This is a crime

under all circumstances

Nina is induced by her guardian Ollie to sign a contract to invest funds in Penny Stocks, Inc., through Ollie's investment firm. Unknown to Nina, Ollie realizes a commission from the investment. Most likely, Nina may rescind the contract on the basis of

undue influence

Under a contract with River Valley Farm, Sancho begins grading a terraced hillside for planting. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." The farm agrees, but later refuses to pay. The agreement to pay more is

unenforceable, because Sancho's performance was a preexisting duty.

Managers who set unrealistic production or sales goals increase the probability that employees will act:

unethically

On July 10, Bob's Pet Supply Store orders fifty small dog collars from Canine Collars, Inc. to be delivered by July 15. On July 13, Canine Collars tenders fifty large dog collars. Bob's rejects the shipment. Canine Collars has

until July 15 to cure

Oceans, Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

valid

Oscar owns Payroll Company, a bookkeeping service. Oscar pays Ripley $5,000 to steal a list of a competitor's clients. This deal is

void

Grains, Inc., agrees to sell to Harvest Bread Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will presume

whatever is reasonable

Odell is an employee of Packing Corporation. She uses social media in a way that violates her employer's stated social media policies. Packing Corporation disciplines Odell, and then fires her after a second transgression. This is:

within the employer's rights.

Fresh Agro, Inc., offers to deliver produce to Growers' Market for a certain price. Fresh's intent to extend an offer is determined by reference to Fresh's

words and actions

Fiesta LLC contracts to buy 1,000 balloons from Gas Bags Inc. for $1 per item. When the market price decreases to 50 cents per balloon, Fiesta refuses to go through with the deal. Gas Bags can recover

$500

Firms that violate the FCPA can be fined up to $2 million. Individuals can be fined up to _______, and imprisoned for up to five years.

10,000