CLAW Total Exam 2

Eliza buys a new motorcycle from Fab Cycles, Inc. The most important factor in determining whether an express warranty is created is whether a. Eliza expresses to Fab Cycles what she wants warranted. b. Eliza's desire for the cycle becomes part of her motivation to deal. c. Fab Cycles expresses to Eliza what it expects of its customers. d. Fab Cycles's promise becomes part of the basis of the bargain.

. Fab Cycles's promise becomes part of the basis of the bargain

After an accident with a vehicle licensed to Guardian Security Company, Heidi signs a covenant not to sue Guardian Security for damages in a tort action if it pays for the damage to her car. This covenant is a. a bar to recovery if Guardian Security pays. b. an illusory contract. c. barred by the preexisting duty rule. d. barred by the doctrine of promissory estoppel.

a. a bar to recovery if Guardian Security pays.

Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the contract: a. Guido must return the $100 and Hal must return the bike. b. Guido must return the $100 only. c. Hal must return the bike only. d. the parties can keep the "benefits" of their bargain.

a. Guido must return the $100 and Hal must return the bike.

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

a. a bilateral contract.

Talk, Inc., offers to buy from Ultra Corporation 1,000 phones. Without notifying Talk, Ultra timely ships phones of a different quality. With respect to the offer and a possible contract, this shipment is an acceptance and: a. a breach. b. an accommodation. c. complete performance. d. a cure.

a. a breach.

Enrico accesses Finance Bank's computer system without authority to obtain protected financial and credit records. Under federal law, this is: a. a felony if it was done for a commercial purpose. b. a felony if the bank brings a civil suit against Enrico. c. not a crime. d. a crime but not a felony.

a. a felony if it was done for a commercial purpose.

Copper Circuit, Inc., and Direct Electric LLC sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is: a. a liquidated damages clause. b. a nominal-damages clause. c. a waiver-of-breach clause. d. a penalty clause.

a. a liquidated damages clause.

Lindsay operates a sole proprietorship, a corporation, and a partnership. She wants to obtain relief for her individual debts and the debts of her corporation and partnership. For each of these, she may file a petition in bankruptcy for relief through a. a liquidation. b. a reorganization. c. a repayment plan. d. any of the choices.

a. a liquidation.

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include a. a provision relating to the resolution of any dispute. b. a detailed history of the music business. c. positive reviews from users of the service. d. an updated list of the music available through the service.

a. a provision relating to the resolution of any dispute.

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include: a. a provision relating to the resolution of any dispute. b. a detailed history of the music business. c. positive reviews from users of the service. d. an updated list of the music available through the service.

a. a provision relating to the resolution of any dispute.

Basso downloads to his computer several of Dante's copyrighted sound recordings without permission. Basso shares these recordings through a P2P network, but requires everyone who downloads the songs to sign an agreement stating they will not sell the songs. This is: a. a violation of copyright law. b. a "fair use" exception to the provisions of the act. c. not a "fair use" exception to the provisions of the act. d. all of the choices.

a. a violation of copyright law.

InfoFree Inc. makes and sells devices and services for the circumvention of encryption software. Under the Digital Millennium Copyright Act, this is a. a violation of copyright law. b. prohibited but not a violation of copyright law. c. a "fair use" exception to the provisions of the act. d. permitted for reconsideration every three years.

a. a violation of copyright law.

Employees of Bodegas & Bistros Inc. (B&B) maintain a password-protected social media page to "vent about work." When B&B learns of the page, the company intimidates the network that operates it into revealing the password. After reviewing the posts, B&B fires the participants. Most likely, this is: a. a violation of the Stored Communications Act. b. within B&B's rights as an employer. c. a subject for dispute resolution by B&B's Internet service. d. a "business-extension exception" under the Electronic Communications Privacy Act.

a. a violation of the Stored Communications Act.

Eddie and other users of Facebook and other social networking sites post trademarked images and copyrighted materials on these sites without permission. This is a. a violation of the intellectual property rights of the owners of the images and materials. b. within the rights of the users of social networks. c. a subject for dispute resolution by the providers of the social networks. d. a "business-extension exception" under the Electronic Communications Privacy Act

a. a violation of the intellectual property rights of the owners of the images and materials.

Grain Mill Company brings a suit against Milled Grain Company under the Anticybersquatting Consumer Protection Act, alleging that Milled Grain is profiting from a domain name that is confusingly similar to Grain Mill's trademark. If Grain Mill is successful, a recovery may include: a. actual damages and profits in any amount. b. statutory damages no greater than $1,000. c. statutory damages no less than $100,000. d. all of the choices.

a. actual damages and profits in any amount.

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation, which sells some of the items to Physicians Clinic, which later sells them to Oscar, a patient and consumer. Article 2 of the UCC applies to the sales transactions between a. all buyers and sellers. b. Medico and New Hospital only. c. New Hospital and Physicians Clinic only. d. Physicians Clinic and Oscar only

a. all buyers and sellers.

Real Gear Corporation enters into a contract to sell ski equipment to Sno-Sports Inc., which sells a pair of the skis to Tyra, a consumer, who later sells them to Upton, another consumer. Article 2 of the UCC applies to the sales transactions between a. all of the buyers and sellers. b. Real Gear and Sno-Sports only. c. Sno-Sports and Tyra only. d. Tyra and Upton only.

a. all of the buyers and sellers.

Patty files a petition in bankruptcy. At the moment of filing a. an automatic stay goes into effect. b. Patsy's debts are discharged. c. Patsy's petition is dismissed. d. Patsy's property is distributed to her creditors

a. an automatic stay goes into effect.

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Hillside sends a written copy of the agreement to Greg to be signed. If Greg signs the copy, the parties will have: a. an express contract. b. an implied contract. c. a mixed contract. d. no contract.

a. an express contract.

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold a. as is. b. by a merchant. c. in perfect condition. d. with no known defects

a. as is.

. Stephanie enters into a contract to work as a lifeguard at Tim's Water Park for the summer in exchange for a weekly paycheck and free admission to the park's attractions. If Stephanie works the entire summer and Tim's provides her paychecks and free admission, the duties have been a. avoided. b. breached. c. performed. d. rescinded.

a. avoided.

Olive borrows money from Capital Loan Company. For Capital to obtain a writ of execution, Olive must: a. be unable or refuse to pay the amount of a judgment. b. be unable to redeem her exempt property. c. be notified in writing (in a "writ") of the lender's intent. d. surrender possession of her property to a court.

a. be unable or refuse to pay the amount of a judgment.

Brian offers Carly a dozen piano lessons for a certain price per lesson but conditions the deal on Carly accepting the offer by April 1. Brian may revoke the offer: a. before Carly accepts the offer. b. before April 1, whether or not Carly has accepted the offer. c. only after Carly accepts the offer. d. only after April 1.

a. before Carly accepts the offer.

Home Construction LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases—in effect, Home will lose money if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is a. breached. b. discharged. c. rescinded. d. suspended.

a. breached.

Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting. Grande Floors, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified: a. by clear, conspicuous language called to the buyer's attention. b. by implied affirmations of fact relating to the goods. c. in any way that the seller sees fit for the ordinary purpose. d. in no way.

a. by clear, conspicuous language called to the buyer's attention.

Cassie files a voluntary petition in bankruptcy for relief through a liquidation proceeding. Among her debts that will not be discharged are claims a. by creditors who were not notified of the bankruptcy. b. for money to be paid for goods not delivered. c. for contributions to employee benefit plans. d. for long overdue credit-card debt.

a. by creditors who were not notified of the bankruptcy.

Daniel is a trustee for a federal bankruptcy court. Daniel's duties include: a. collecting the debtor's available estate. b. establishing priority for the payment of unsecured creditors. c. operating a debtor's business to obtain maximum profit for creditors. d. submitting to an examination under oath by the creditors.

a. collecting the debtor's available estate.

Jo files a voluntary petition for bankruptcy under Chapter 7. The court will likely deny a discharge of her debts if she: a. conceals records of her financial condition to defraud a creditor. b. does not have sufficient assets to pay all her secured creditors. c. filed for bankruptcy 12 years ago. d. has a criminal record.

a. conceals records of her financial condition to defraud a creditor.

Dana downloads music into her computer's random access memory, or RAM, without authorization. This is a. copyright infringement. b. within Dana's rights as a computer user. c. a basis of liability for the computer maker if it does not act against Dana. d. none of the choices.

a. copyright infringement.

Jason transfers select copyrighted music recordings, without the copyright owners' authorization, through his computer and phone to his friends. Jason does not charge his friends for his "service." This is a. copyright infringement. b. a license. c. goodwill. d. "fair use."

a. copyright infringement.

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's was able to purchase the noodles from Noodle Bowl Inc. at a slightly higher price. Bob's right to purchase substitute noodles from Noodle Bowl is the right of: a. cover. b. cure. c. tender. d. specific performance.

a. cover.

Tech Outsourcing Inc. registers a domain name that is the same as, or confusingly similar to, the trademark of Tech Resourcing Corporation and then offers to sell the domain name back to Tech Resourcing. This is a. cyber squatting b. typo-squatting c. trademark infringement d. trademark dilution

a. cyber squatting

Web Marketing Inc. buys and sells domain names with the click of a mouse. A domain name can be bought and sold many times. Each change of owner is registered automatically as part of a mass registration. In this environment a. cybersquatting can flourish. b. typosquatting occurs unintentionally through clerical misspellings. c. brands and trademarks are automatically protected from cybersquatters. d. the Federal Trade Commission can sanction Web Marketing

a. cybersquatting can flourish.

Paxton uses social media to post links that, when clicked, secretly install software on hundreds of others' personal computers without their owners' knowledge Paxton's software is harmful to the computers on which he installed it. This program is: a. malware. b. badware. c. harmware. d. infectware.

a. malware.

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 a. demand assurances of performance from the seller. b. consider the contract repudiated and sue the seller for breach. c. buy the equipment from a different firm and bill the seller for the price. d. buy the equipment from a different firm and bill Excavation for the price.

a. demand assurances of performance from the seller.

Matt files a petition for a discharge in bankruptcy. His failure to complete the required consumer education course may result in him being a. denied a discharge of bankruptcy. b. fined. c. held in contempt. d. imprisoned.

a. denied a discharge of bankruptcy

Refer to Fact Pattern 9-2. By using a domain name similar to CallTalk's, CellTalk is most likely a. diminishing the quality of CallTalk's mark. b. making a fair use of CallTalk's mark. c. licensing the use of CallTalk's mark to itself. d. engaging in smart competitive conduct.

a. diminishing the quality of CallTalk's mark.

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: a. effective. b. not effective because comedy is not a serious subject. c. not effective because Anton's tutoring will be subjective. d. not effective because Brooke has no knowledge of the subject.

a. effective.

Global Corporation enters into contracts with buyers in e-commerce and traditional commerce. The Uniform Electronics Transactions Act applies, if at all, only to those transactions in which the parties agree to use: a. electronic means. b. paper documents. c. updates and cross-checks to orally verify any e-terms. d. notarized documents.

a. electronic means.

Bond, the owner of CinePlex, trusts Dex to manage the theater's daily cash flow. One night, without Bond's knowledge or consent, Dex takes and keeps $1,000 from the receipts. This is most likely a. embezzlement. b. larceny. c. robbery. d. burglary.

a. embezzlement.

While sailboarding, Jolene is injured when Kirby carelessly crosses her path. Kirby's insurance company offers Jolene $50,000 to release Kirby from liability, and she accepts. Later, Jolene learns that her injuries are more serious than she realized. The release is a. enforceable. b. unenforceable because Jolene's injuries are unforeseeably difficult. c. unenforceable because Kirby has a preexisting duty to pay. d. unenforceable because the release is an illusory promise.

a. enforceable.

Lou offers to service Millie's heating and air conditioning system for one year for $500. Under the mirror image rule, Millie's response will be considered an acceptance if the terms of the acceptance: a. exactly mirror those of the offer. b. change the items offered, but do not change the price. c. change the price, but do not change the items offered. d. change both the price and the items offered.

a. exactly mirror those of the offer.

Laird is an employee of Motor Parts, an auto parts store. On the orders if his employer, he switches trademarks on parts that come into the store to be sold to consumers. This is most likely a. forgery b. larceny c. robbery d. obtaining goods by false pretenses

a. forgery

Alan induces Beth to enter a contract for the purchase of a Chef's Burger House restaurant. Alan knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of a. fraud b. undue influence c. mistake d. none of the choice

a. fraud

Skip is accused of a crime. Skip can refuse to provide information about his allegedly criminal activities a. if he suspects the information will be used to prosecute him. b. if the police do not promise to keep the information confidential. c. if the information is "fruit of the poisonous tree." d. under no circumstances.

a. if he suspects the information will be used to prosecute him.

band, Inc., an Internet service provider, supplies information to the Federal Trade Commission concerningpossible unfair or deceptive ads originating in a foreign jurisdiction. Under federal law, Broadband is a. immune from liability. b. subject to liability if the information is false. c. subject to liability if the ads were sent through B's service. d. subject to liability in the foreign jurisdiction, but not in the United States.

a. immune from liability.

Equipment Rentals Corporation (ERC) agrees to lease two backhoes to Dig & Fill Construction, Inc. Before any interest in the backhoes can pass from ERC to Dig & Fill, they must be a. in existence and identified as the goods in the contract. b. in ERC's physical possession. c. in Dig & Fill's physical possession. d. listed in a document of title and filed in the appropriate state office.

a. in existence and identified as the goods in the contract.

Rose commits an act via e-mail against Savers Bank, a business in Texas, where the act is a cyber crime. Rose resides in Utah where the act is not a crime. Prosecution of Rose in Texas involves questions of a. jurisdiction. b. "maximum contacts." c. the immunity of Internet service providers. d. encryption

a. jurisdiction

Fresh Milk, Inc., is the offeror and Guernsey Dairy Farm is the offeree under a unilateral sales contract. Fresh is not notified of Guernsey's performance within a reasonable time. Fresh a. may treat the offer as having lapsed. b. must assume that Guernsey has started to perform. c. must contact Guernsey. d. must assume that Guernsey has rejected the offer

a. may treat the offer as having lapsed.

Dian, an agent for Expo Motors Inc writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25000 between November 1 and December 31. Dian's letter to Flynn is a. merchant's firm offer b. an acceptance c. an option contract d. none of the choices

a. merchant's firm offer

Quinn contracts to provide ten tons of scrap steel at $500 per ton to Rendered Materials, Inc. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Quinn to fulfill the contract for less than $5,000 per ton. Quinn's best defense against performing the contract would be that a. performance of the contract is commercially impracticable. b. procuring the steel would force Quinn into bankruptcy. c. the law has rendered performance of the contract illegal. d. the specific subject matter of the contract has been destroyed.

a. performance of the contract is commercially impracticable.

Sound Financials and Instable Investments are subject to the laws of the states in which they are located and do business. Thirty-seven states: a. prohibit or regulate the use of spam. b. require the use of spam by business entities. c. ban the use of spam altogether. d. preempt the application of state law to commercial e-mail.

a. prohibit or regulate the use of spam.

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board must a. promptly notify ABC of the intent to cure. b. pay a cure fee. c. pick up the nonconforming games before the end of the business day. d. enter into a new contract with ABC.

a. promptly notify ABC of the intent to cure.

Bytes Inc. enters into contracts for its cloud services online. Bytes can protect itself against disputes involving these contracts by making important terms: a. reasonably clear. b. vaguely ambiguous. c. practical. d. standardized.

a. reasonably clear.

Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to: a. recover damages. b. rescind the contract. c. undo Eve's influence. d. punish the defendant.

a. recover damages.

Moe threatens physical harm to force Norel to contract to pay him for protecting her store against vandalism and destruction. Norel may a. rescind the contract or refuse to comply with its terms. b. do nothing once she has agreed to pay. c. recover from her insurer for the cost. d. recover from the local police for their failure to protect her store.

a. rescind the contract or refuse to comply with its terms.

Mobile Device Company (MDC) discovers that defamatory statements about its policies and products are being posted in an online forum. NuView Inc., the Internet service provider whose users are posting the messages, refuses to disclose the identity of the person or persons responsible. MDC should: a. seek to use the authority of the court to obtain the identity from NuView. b. bring a suit against NuView for publishing the statements. c. counter the statements with its own posts. d. post defamatory statements about NuView.

a. seek to use the authority of the court to obtain the identity from NuView.

Prodigious Profit, LLC, and other companies operate social media Web sites, issue apps for mobile devices, obtain ad revenue from search engines, and sell directly to consumers from other sites. The privacy rights of the users of these products are frequently defined, not by the courts or legislatures, but by a. the companies that own the sites and the apps b. retailers who have had to change their procedures to compete c. spammers, cyber-squatters, and typo-squatters d. internet service providers

a. the companies that own the sites and the apps

Jill believes that she should file a plan for a Chapter 13 discharge in bankruptcy. A court will confirm her bankruptcy plan if it provides for all of the following except: a. the completion of all payments to all creditors within six years. b. the full payment of claims entitled to priority. c. identical treatment of all claims within a particular class. d. the turnover of the debtor's future income to the trustee.

a. the completion of all payments to all creditors within six years.

CallTalk wants to sue Call&Talk for its unauthorized use of the domain name "callltalk" on a theory of trademark dilution. This claim requires proof that: a. the distinctive quality of the mark has been diminished. b. consumers are likely to be confused by the names. c. the products involved are similar. d. CallTalk has registered all variations of the name "calltalk."

a. the distinctive quality of the mark has been diminished.

Dan defaults on a debt to Rachel. Rachel will not be able to recover the debt from a. the sale of Dan's prize-winning pet dog. b. the sale of Dan's investments in stocks. c. Dan's wages. d. Dan's lottery winnings.

a. the sale of Dan's prize-winning pet dog

Zeke files a petition for bankruptcy under Chapter 13. Zeke's Chapter 13 plan must provide for a. the turnover of his future income to the trustee. b. his attendance at a credit-counseling briefing. c. adequate means for the petition's execution. d. a preference for one creditor over another

a. the turnover of his future income to the trustee.

Ruth owns Skyview, a complex under construction that will include commercial and residential suites, and a parking garage. She allows Town Contracting, the contractor, to complete a stage of the project late. This waives Ruth's right to sue for: a. this delay. b. any subsequent breaches. c. any past breaches. d. none of the choices.

a. this delay.

Interactive Entertainment Corporation markets its products online. Through the use of cookies, Interactive Entertainment and other online marketers can: a. track individuals' Web browsing activities. b. gain access to competitors' servers. c. "sweet talk" consumers into buying certain products. d. attack competitors' Web sites.

a. track individuals' Web browsing activities.

Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to: a. transact business electronically. b. submit to the recipient's jurisdiction. c. respond to e-mail sent to that address. d. nothing.

a. transact business electronically.

One of the advertisers—either Sound Financials or Instable Investments—is acting within the bounds of federal law. Federal law permits the sending of: a. unsolicited commercial e-mail. b. solicited commercial e-mail only. c. commercial e-mail to randomly generated addresses. d. commercial e-mail to addresses "harvested" from Web sites through the use of specialized software.

a. unsolicited commercial e-mail.

Sales & Revenue, Inc., discovers that defamatory statements about its policies and products are being posted in an online forum. TransWeb Inc., the Internet service provider whose users are posting the messages, refuses to disclose the identity of the person or persons responsible. Sales & Revenue files a suit against the anonymous users. The plaintiff can obtain from TransWeb the identity of the persons responsible for the defamatory messages by: a. using the authority of the court. b. gaining unauthorized access to TransWeb's servers. c. deceiving TransWeb into revealing the posters' identities. d. no legal or illegal means.

a. using the authority of the court.

Larry has fifteen creditors. To force Larry into bankruptcy proceedings, at least three creditors must join the petition and their unsecured claims must add up to at least a. $500. b. $15,325. c. $100,000. d. $500,000.

b. $15,325

Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2,500, but RSW fails to deliver. Oxley buys the appliance else-where for $3,500. Oxley's measure of damages is: a. $1,000. b. $1,000 plus incidental damages. c. incidental damages only. d. $0.

b. $1,000 plus incidental damages.

Cow's Milk Creamery, Inc., needs a certain part for its pasteurizing equipment to continue its operations and orders one for $3,000 from Dairy Supplies Company. Cow's Milk tells Dairy Supplies that it must receive the part by Tuesday or it will lose $10,000. Dairy Supplies ships the part late. Cow's Milk can recover: a. $13,000. b. $10,000. c. $3,000. d. $0.

b. $10,000.

Julie owes Ryan $10,000. When the debt comes due, Julie refuses to pay. Ryan obtains a judgment to collect the debt. Using a writ of execution, the court orders the sheriff to seize Julie's boat and sell it to pay the debt. The boat sells for $15,000. Ryan will receive a. $15,000 b. $10,000. c. $7,500. d. $15,000 minus the collection costs

b. $10,000.

Chet, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of a. neither party. b. Chet only. c. either party. d. Denise only.

b. Chet only.

Due on Receipt, Inc., makes tax software, which is packaged with a shrink-wrap agreement. Evenflo Products Company distributes the software to retailers, including a Flatprice discount store, where Greta buys a package of it. The parties to the shrink-wrap agreement are a. Due on Receipt, Inc., Evenflo Products Company and Greta. b. Greta and Due on Receipt, Inc. c. Evenflo Products and Greta. d. Flatprice, Greta and Evenflo Products Company.

b. Greta and Due on Receipt, Inc

Household Products Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household will have an insurable interest in the cleaners as long as a. Household remains in business. b. Household retains title to the goods. c. the goods are in existence. d. there is no risk of loss.

b. Household retains title to the goods.

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

b. Mia offered the bribe.

Jordan believes that she needs to obtain a discharge in bankruptcy through an individual's repayment plan. This proceeding can be initiated by a filing of a petition by: a. a trustee. b. a debtor. c. a corporation. d. a partnership.

b. a debtor.

A contract between Fruit of the Valley Corporation and Green Grocer, Inc., requires Fruit to deliver goods to Green's place of business. This is a. a bill of lading. b. a destination contract. c. a shipment contract. d. a warehouse receipt.

b. a destination contract.

Rhino causes a disturbance at Soufflé Café. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by: a. a fine only. b. a fine and imprisonment up to one year. c. a fine and imprisonment up to six months. d. a fine and imprisonment up to ten days.

b. a fine and imprisonment up to one year.

Troy files a petition for bankruptcy. Troy must include with the petition a. proof of each creditor's claim. b. a list of creditors and the amount of the debt owed to each. c. all of his debit and credit cards to be disposed of by the court. d. an affidavit testifying to his having studied the Bankruptcy Code.

b. a list of creditors and the amount of the debt owed to each.

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents a. a breach of contract. b. a mitigation of damages. c. liquidated damages. d. restitution.

b. a mitigation of damages.

Clean Mouth Clinic offers to buy from Dental Supplies Company a certain quantity of floss and other items for a certain price. Dental can accept the offer by a. a material alteration of the terms within a reasonable time. b. a promise to ship or a prompt shipment of the goods. c. a prompt shipment of the goods only. d. a shipment of nonconforming goods with a notice of accommodation.

b. a promise to ship or a prompt shipment of the goods.

Ron offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ron and Sara will have: a. a bilateral contract. b. a unilateral contract. c. a void contract. d. an executive contract.

b. a unilateral contract.

. Revenue & Sales Corporation and Software, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $64,500. Software transfers the right to payment under the contract to CreditLine LLC. This transfer is a. a delegation b. an assignment. c. prohibited. d. a third-party beneficiary contract.

b. an assignment

. Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have a. no contract. b. an express contract. c. an implied contract. d. a mixed contract.

b. an express contrac

Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is: a. an enforceable contract. b. an illusory promise. c. an option-to-cancel clause. d. promissory estoppel.

b. an illusory promise.

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is a. a delegatee. b. an intended beneficiary. c. an incidental beneficiary. d. an obligor

b. an intended beneficiary.

Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open for thirty days in return for a small payment.This is an example of a. an invitation to negotiate. b. an option contract. c. an agreement to agree. d. the mirror image rule.

b. an option contract.

Jessie's debt to Kayla is past due. Kayla brings a legal action against Jessie to collect the debt. Kayla asks the court to order Liberty Bank, in which Jessie has an account, to pay a portion of the funds to Kayla. This is a request for: a. a writ of execution. b. an order of garnishment. c. an order that would violate most state laws. d. a composition agreement.

b. an order of garnishment.

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit: a. must be filed within ten to twenty years, depending on state law. b. can no longer be brought. c. can be filed within four years after Kelly decides to sue. d. must be filed between four and five years after Kelly decides to sue.

b. can no longer be brought.

Amy and Bob enter into a contract for Bob to perform waste management services for Amy's commercial properties. Later, Bob alters a material term—increases the price—without Amy's knowledge or consent. Amy a. can alter a material term, such as the payment date, without Bob's consent. b. can treat the contract as discharged. c. must adapt his performance accordingly. d. must determine whether Bob's alteration constitutes substantial performance.

b. can treat the contract as discharged.

Quiana, an employee of Reservations-for-less Inc pays Sven an employee of Reservations-for-less competitor Travel Cheap Inc for a secret company pricing schedule. This may be a. an effective marketing strategy b. commercial bribery c. creative legal bookkeeping d. money laundering

b. commercial bribery

Global Reach Corporation uses invisible files created on the computers, smartphones, and other mobile devices of visitors to its Web sites to track the users' browsing activities. These files are a. licenses. b. cookies. c. cloud computing. d. a violation of the law

b. cookies.

Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. This contract requires Pine Mills, the seller, to a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before tendering their delivery. d. place the goods into the hands of a carrier.

b. deliver the goods to a particular destination.

Maggie is a surety for Jo's debt to Bill. Bill and Jo decide to make material changes to the original contract without informing Maggie. Maggie is: a. bound by the contract including the changes. b. discharged completely. c. bound by the contract according to the original terms. d. bound by the contract unless she objects within thirty days.

b. discharged completely.

Suzu, an employee of Ridgeline Credit Union, deposits into her personal account checks entrusted to Ridgeline through its ATM system by customers to deposit into their accounts. This is: a. burglary. b. embezzlement. c. larceny. d. mail and wire fraud.

b. embezzlement.

Builders Construction files a voluntary petition for bankruptcy. In listing its assets, Builders intentionally omits certain assets, including plots of undeveloped real estate. After Builders is granted a discharge, Commercial Electric, one of Builders' unsecured creditors whose claims were discharged, learns of the fraud. Commercial Electric can: a. do nothing. b. enforce its claim against Builders. c. file an involuntary petition for bankruptcy against Builders. d. take possession of the stones with or without a breach of the peace.

b. enforce its claim against Builders.

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony a. agree to sign a bill of sale. b. exchange the car for the $3,000. c. sign a receipt. d. shake hands and go their separate ways

b. exchange the car for the $3,000.

Home Re-modelers Inc and Imogen enter into a contract for a sale of cabinets and counter-tops. Home Re-modelers, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchant-ability Under the UCC, this means that the goods are reasonably a. fit for the buyer's particular purpose b. fit for the ordinary purpose for which such goods are used c. suitable for resale at an acceptable price d. the best quality that money can buy

b. fit for the ordinary purpose for which such goods are used

Bruno is a businessperson with investments in legal and illegal operations. Bruno may be subject to penalties under RICO: a. for making an unprofitable, but legal, investment. b. for the commission of any business fraud. c. only in a case involving a "racket." d. only in a case involving organized crime.

b. for the commission of any business fraud.

Jordan reaches into Ken's pocket and takes his wallet—without his consent and without his immediate awareness. Unlike robbery, picking pockets does not involve: a. breaking and entering. b. force or fear. c. large amounts of cash. d. weapons.

b. force or fear.

Chad signs Dolly's name, without her authorization, to the back of her paycheck, which was issued by Eastside Market. This is: a. embezzlement. b. forgery. c. larceny. d. robbery.

b. forgery.

Berry enters into a contract with Clyde for a guided tour of Deep Canyon. Clyde represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Berry is most likely a victim of a. undue influence. b. fraud. c. mistake. d. unconscionability.

b. fraud.

Farrah buys a car from Go Motors, financing the purchase through a loan. Less than a year later, she files for bankruptcy under Chapter 13. Her plan must provide that Go has a lien on the car until the entire debt is paid: a. under no circumstances. b. if Go extended credit for all or part of the purchase price of the car. c. if any of the loan for the car remains unpaid, regardless of the creditor. d. if her other creditors do not object.

b. if Go extended credit for all or part of the purchase price of the car.

Elbert uses FedEx in a scheme to defraud Global Sales Company by obtaining merchandise to which he is not entitled. Found guilty of mail fraud, Elbert can be punished by: a. imprisonment for up to fifty years. b. imprisonment for up to twenty years and/or fines. c. fines up to $5 million. d. none of the choices.

b. imprisonment for up to twenty years and/or fines.

Rob's creditors try to force him into involuntary bankruptcy. The creditors will be unsuccessful if Rob: a. owns a business that employs fewer than ten people. b. is a farmer. c. has a medical condition. d. has to pay child support.

b. is a farmer.

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 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. is excused from the performance of its contracts.

. Orin signs a covenant not to compete with his employer, Product Distribution, Inc. The covenant will be enforced if it a. does not require either party to obtain a business license. b. is reasonable with respect to geographic area and duration. c. relieves the employer from liability for any injury to Orin. d. none of the choices.

b. is reasonable with respect to geographic area and duration

Marketing Solutuions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is a. liable to Niki under the concept of rescission and new contract b. liable to Niki under the doctrine of promissory estoppel c. liable to Niki under the preexisting duty rule d. the best quality that money can buy

b. liable to Niki under the doctrine of promissory estoppel

Reese, driving while intoxicated, causes a car accident that results in the death of Sanyo. Reese is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for: a. any period of time. b. more than one year. c. more than six months. d. more than ten days.

b. more than one year.

Juan and Isidro enter into a contract to buy, restore and reopen the Coastal Park Carousel. Before either party begins to perform, they agree to cancel their deal. This is: a. specific performance. b. mutual rescission. c. accord and satisfaction. d. novation.

b. mutual rescission.

Carlos and David contract for the sale of five hundred head of Carlos's cattle for $95 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is: a. entitled to recover the value of the lost cattle. b. not required to pay due to the bilateral mistake. c. not required to pay due to the unilateral mistake. d. required to pay because he assumed the risk the cattle might die.

b. not required to pay due to the bilateral mistake.

Thirty-one days before filing a petition in bankruptcy, Gavin transfers property and makes payments that favor one creditor over another. These are: a. affirmation agreements. b. preferences. c. secured interests. d. unsecured debts.

b. preferences.

Erica, a police officer, wants to search the offices of Debit & Credit, Accountants. She asks Judge Bernie to issue a warrant. Under the Fourth Amendment, no warrant for a search can be issued without: a. double jeopardy. b. probable cause. c. reasonable doubt. d. immunity.

b. probable cause.

Lauren files a suit against Moving Service for breach of contract, based on what Lauren claims was Moving's offer. For a court to determine if a contract has been breached, under the common law, the offer must include terms that are: a. exactly precise. b. reasonably definite. c. unequivocally approximate. d. vague or uncertain.

b. reasonably definite.

A contract for a sale of land from Bayside Properties, Inc., to City Development Corporation contains an erroneous legal description. The most appropriate remedy for these parties is: a. restitution. b. reformation. c. rescission. d. specific performance.

b. reformation.

Ossie enters a convenience store and points a gun at the clerk Pico. Ossie forces Pico to open the cash register and give him all the money. Ossie will most likely be charged with: a. burglary. b. robbery. c. larceny. d. receiving stolen property.

b. robbery.

Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. The intent to enter into a contract is determined with reference to: a. the intentional theory of contracts. b. the objective theory of contracts. c. the personal theory of contracts. d. the subjective theory of contracts.

b. the objective theory of contracts.

. River Gear Company and Scenic Trips, Inc., enter into a contract on August 1 for the sale of fifty inflatable river rafts. Scenic cancels the contract ten days later, before the goods have been delivered. River Gear's available remedies include all of the following except a. the right to cancel the contract. b. the right to replevy the goods. c. the right to withhold delivery. d. the right to resell or dispose of the goods.

b. the right to replevy the goods.

. Robert registers a domain name—sweetfriedpotatos.com—that is a misspelling of a popular brand— sweetfriedpotatoes.com. This is a. cybersquatting. b. typosquatting. c. trademark infringement. d. trademark dilution.

b. typosquatting.

Mother & Daughter Jewelers breaches its lease with Longview Mall and vacates the premises six months before the end of the term. In some states, Longview would have to a. avoid reletting the premises to recover damages. b. use reasonable means to find a new tenant to mitigate damages. c. relet the premises to recover any damages. d. sell the premises to recover any damages.

b. use reasonable means to find a new tenant to mitigate damages.

Frank performs a contract with Gene to add a garage to Gene's property, but Gene does not pay. Frank can file a lien on Gene's property if, from the last date labor or materials were provided, he acts: a. immediately. b. within 60 to 120 days. c. within two years. d. within a reasonable time.

b. within 60 to 120 days.

Keisha is an employee of Leeway Corporation. She uses social media in a way that violates her employer's stated social media policies. Leeway first disciplines its employee and then, after a second transgression, fires her. This is; a. a violation of Keisha's rights as an employee. b. within Leeway's rights as an employer. c. a subject for dispute resolution by the social media that Keisha used. d. a "business-extension exception" under the Electronic Communications Privacy Act.

b. within Leeway's rights as an employer.

BurgerBoy Restaurant Corporation allows its trademark to be used as part of a domain name for BurgerBoyNY, Inc., an unaffiliated company. BurgerBoyNY does not obtain ownership rights in the mark. This is: a. trademark infringement. b. fair use. c. a license. d. trademark dilution.

c. a license.

Robin's home is in a state that has a $30,000 homestead exemption. Robin defaults on a $60,000 debt that she owes to Suburban Mortgage Company. Robin's home is sold at auction for $80,000. From the proceeds, Suburban may recover: a. $0. b. $30,000. c. $50,000. d. $60,000.

c. $50,000.

To adjust debt and institute a repayment plan, Don, a family fisherman in the Pacific Ocean off the coast of Alaska, may file a petition in bankruptcy for relief under the Bankruptcy Code's Chapter: a. 7. b. 11. c. 12. d. 13.

c. 12.

. 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 a. Dick intentionally deceived Ernie. b. Dick misrepresented material facts. c. Ernie is under twenty-one. d. Ernie justifiably relied on Dick's misrepresentations.

c. Ernie is under twenty-one.

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality must give Pipes & Culverts a warehouse receipt for the goods, which Pipes will then pick up. Title to the goods passes to Pipes & Culverts when a. Quality stores the pumps. b. Pipes & Culverts orders the pumps. c. Pipes & Culverts picks up the pumps. d. Quality gives Pipes & Culverts a warehouse receipt for the pumps.

c. Pipes & Culverts picks up the pumps.

Roofing Company buys asphalt tiles from Shingles, Inc. The parties agree that the tile will be shipped "F.O.B. Shingles warehouse" to Roofing's location via Shipping Corporation. The tiles are lost in transit. The loss is suffered by: a. Shipping Corporation. b. Shingles, Inc. c. Roofing Company. d. Roofing's customers by an increase in the prices of goods and services.

c. Roofing Company.

Ludwig receives from Milo a marimba stolen from Nadine. Which of the following, if Ludwig knew, would cause him to be criminally liable?: a. Milo overcharged him for the marimba. b. Nadine did not want the marimba. c. That the marimba is stolen and he intended to keep it. d. What a marimba is.

c. That the marimba is stolen and he intended to keep it.

To test computer security and conduct encryption research, Tech Solutions Inc. circumvents the encryption software and other technological antipiracy protection of United Business Corporation's software. Under the Digital Millennium Copyright Act, this is: a. a violation of copyright law. b. prohibited but not a violation of copyright law. c. a "fair use" exception to the provisions of the act. d. permitted for reconsideration every three years.

c. a "fair use" exception to the provisions of the act.

Via the Internet, Rocco sabotages the computer system of Quik Chik'n Inc., a food manufacturer, with the purpose of altering the levels of ingredients of the company's products so that consumers of the food become ill. Rocco is: a. an entrapper. b. a network employee. c. a cyberterrorist. d. a prosecutor.

c. a cyberterrorist.

Donna goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when a. a debtor files forms designated for the purpose in a bankruptcy court. b. a debtor is unable to pay his or her debts as they come due. c. a debtor's creditors force the debtor into bankruptcy proceedings. d. a debtor's debts exceed the fair market value of his or her assets.

c. a debtor's creditors force the debtor into bankruptcy proceedings.

Edie uses TV ads to defraud millions of people. She can most likely be charged with a. larceny. b. no crime. c. robbery. d. wire fraud.

d. wire fraud.

Spicy Pizza, Inc., files for bankruptcy under Chapter 11. Spicy's reorganization plan must contain: a. a plan to turn over its future income to the trustee. b. a certificate proving attendance at a credit-counseling briefing. c. a provision of adequate means for the plan's execution. d. a statement of preference for one creditor over another.

c. a provision of adequate means for the plan's execution.

Bull is arrested at a warehouse in Corporate Park and charged with the crime of theft. Bull will be prosecuted by a. the owner of the warehouse. b. the owner of the property that Bull is charged with stealing. c. a public official. d. any third party unrelated to Bull, the property, or the crime.

c. a public official.

To adjust debt and institute a repayment plan, Diana—who is not a corporation, a partnership, or a family farmer or fisherman—may file a petition in bankruptcy for relief through a. a liquidation. b. a reorganization. c. a repayment plan. d. a straight bankruptcy plan.

c. a repayment plan.

Leslie pays Mobile Electronics $600 for a new phone. Under the UCC, this is a. a merchant's firm offer. b. a lease. c. a sale. d. a requirements contract

c. a sale.

Ozzie files a petition in bankruptcy for relief through an individual's repayment plan. He is granted a discharge. Debts that will not be discharged include claims for a. all debts provided for by the plan b. money owed for services rendered c. allowed claims not provided for by the plan d. credit-card debt

c. allowed claims not provided for by the plan

A valid contract requires a. a price and a subject. b. a duration and termination provision. c. an offer and an acceptance. d. specific quality standards.

c. an offer and an acceptance.

EZ Credit, Inc., lends $1,000 to Joe. Kay acts as Joe's surety. If Kay pays the loan, she gets: a. any right that EZ had against Joe, but not a right to be repaid by Joe. b. a right to be repaid by Joe, but not any right that EZ had against Joe. c. any right that EZ had against Joe and a right to be repaid by Joe. d. none of the choices.

c. any right that EZ had against Joe and a right to be repaid by Joe.

Sun-Hi, who operates a Pan-Asian restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. The standard of proof to find a defendant who has been charged with a crime guilty is: a. a preponderance of the evidence. b. a unanimous verdict. c. beyond a reasonable doubt. d. clear and convincing evidence.

c. beyond a reasonable doubt.

Confections Corporation orders Delicious-brand Chocolate Bars from Edibles Company. Edibles identifies the goods. Before they are shipped, an insurable interest in the goods exists in: a. Confections only. b. Edibles only. c. both Confections and Edibles. d. Delicious only.

c. both Confections and Edibles.

ConnectWeb, Inc., operates a subscription-based service that extends the software and storage capabilities of its subscribers. This is a. dilution. b. peer-to-peer (P2P) networking. c. cloud computing. d. a distributed network.

c. cloud computing.

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that a. approximately conform to the contract description. b. entirely conform to the contract description except in one or two details. c. conform to the contract description in every way. d. substantially conform to the contract description in most details.

c. conform to the contract description in every way.

Gilda is accused of conspiracy to defraud. She is given an opportunity to object to the charge before a judge. She is also given the opportunity to confront and cross-examine witnesses and to present her own witnesses. These procedures represent: a. a reasonable expectation of privacy. b. the prohibition against double jeopardy. c. due process of law. d. the privilege against self-incrimination.

c. due process of law.

Rico borrows $110,000 from Sterling Bank to buy a home. If he fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. This is foreclosure. a. attachment. b. execution. c. foreclosure. d. subrogation.

c. foreclosure.

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be: a. substantiated by reliable, external evidence. b. signed in a sufficient manner by both parties. c. in writing or evidenced by a written memorandum. d. all of the choices.

c. in writing or evidenced by a written memorandum.

UCC. In this situation, the CISG applies because: a. it is a treaty of the U.S. national government. b. it is a convention of the United Nations. c. it has been ratified by both parties' countries. d. China has not adopted the UCC.

c. it has been ratified by both parties' countries.

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

c. larceny.

Edith works for Fast Trades, Inc., a brokerage that facilitates frequent, quick securities transactions for investors. Edith steals her employer's computer program to start up her own competing business, Get Rich Quick, Inc. This is: a. obtaining goods by false pretenses. b. robbery. c. larceny. d. no crime.

c. larceny.

Mariah takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away. Nita has likely committed: a. burglary. b. forgery. c. larceny. d. no crime.

c. larceny.

Idina admires Jules's collection of guitars. Jules says, "I plan to sell the collection when I get tired of it." Jules's statement is: a. an offer. b. not an offer because it has not been communicated to Idina. c. not an offer because Jules expressed only an intent to enter into a future contract. d. an acceptance.

c. not an offer because Jules expressed only an intent to enter into a future contract.

Lynn, the owner of Market Sales Company, sells the firm to Nell for a note payable to Lynn for $100,000. Nell does not pay the note and files for bankruptcy under Chapter 7. The debt represented by the note is: a. dischargeable if $100,000 was a high price for the firm. b. dischargeable under any circumstances. c. not dischargeable if Nell concealed assets to defraud Lynn. d. not dischargeable under any circumstances.

c. not dischargeable if Nell concealed assets to defraud Lynn.

Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self- incrimination and can: a. be prosecuted only for a crime about which she agreed to testify. b. not be prosecuted for any crime. c. not refuse to testify. d. refuse to testify.

c. not refuse to testify.

Posing as Visa Bank, Walt e-mails Paula, asking her to update her credit-card information through a link in the e- mail. She clicks on the link and types in the data, which Walt promptly sells to O"Hara. This is: a. hacking. b. employment fraud. c. phishing. d. cyberterrorism.

c. phishing.

Global Enterprise enters into a contract with HealthCare Insurance to obtain insurance for Global employees. HealthCare breaches the contract and Global is awarded compensatory damages. The purpose is to: a. establish, as a matter of principle, that HealthCare acted wrongfully. b. provide Global with funds for a foreseeable loss beyond the contract. c. provide Global with funds for its loss of the bargain. d. punish HealthCare and deter others from similar acts.

c. provide Global with funds for its loss of the bargain.

Carly files a petition in bankruptcy. One of the goals of bankruptcy law with respect to a debtor is to a. encourage the continued use of credit to borrow funds. b. ensure that third parties will continue to guarantee loans. c. provide a fresh start, free from creditors' claims. d. shield assets from creditors' claims.

c. provide a fresh start, free from creditors' claims.

Refined Grains Inc agrees to sell to Sunny Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at a. a neutral place of business halfway between the parties' locations b. a "reasonable" place of delivery c. refined's place of business d. sunny's place of business

c. refined's place of business

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is a. still open. b. terminated. c. rejected and subject to a counteroffer. d. revoked.

c. rejected and subject to a counteroffer

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by: a. mutually agreeing not to commit fraud. b. repeating the terms in a phone call. c. setting out the terms in a memo. d. shaking hands on the deal.

c. setting out the terms in a memo.

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on a. neither the accord nor the original obligation. b. the accord only. c. the accord or the original obligation. d. the original obligation only.

c. the accord or the original obligation

. Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation a. Contractors is in breach of contract. b. the local zoning authority is in breach of contract. c. the contract is discharged. d. Discount must compensate Contractors for its lost profit.

c. the contract is discharged.

Owen and Pablo enter into a contract for a sale of well-drilling equipment. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between: a. any loss avoided and any profit gained. b. the actual price and the hoped-for price. c. the contract price and the market price. d. the current prices in the parties' locations.

c. the contract price and the market price.

Porches & Verandas, Inc., agrees to build a screen porch for Quinn, but fails to complete the job. Quinn hires Ramadas, Inc., to finish the project. Quinn may recover from Porches & Verandas a. the contract price less 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. the costs needed to complete construction.

. Tile & Grout (T&G) contracts to resurface the insides of the pools at Water Park. T&G knows that without the resurfacing, Water Park will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water Park can recover c. the loss of profit from the delayed opening. d. nothing. a. the cost of new pools. b. the difference between T&G's price and the eventual cost of resurfacing.

c. the loss of profit from the delayed opening.

Ryan is accused of auto theft. Ryan refuses to give information related to his alleged criminal activities because he suspects it will be used to prosecute him. This is: a. duress. b. entrapment. c. the privilege against self-incrimination. d. necessity.

c. the privilege against self-incrimination.

TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver does not pay. TackMaker can normally recover as damages: a. any profit lost minus any loss avoided. b. whatever amount the seller wishes to claim. c. the purchase price plus incidental damages. d. the market price at the place at which the seller delivered the goods.

c. the purchase price plus incidental damages.

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 covers: 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. the sale of the furnishings priced at $500 or more.

Lucy owns a condominium that she leases to Marie, gives her son Neal $450 on his sixteenth birthday, and sells her car to her neighbor Odalles for $1,500. UCC Article 2 covers: a. the lease with Marie. b. the gift to Neal. c. the sale to Odalles. d. all of the choices.

c. the sale to Odalles.

Edwin is charged with a crime. Almost all federal courts and some state courts would not hold him liable if, at the time of the offense, as a result of a mental disease or defect, he lacked substantial capacity to obey the law and to appreciate a. the power of the police. b. the authority of the court. c. the wrongfulness of his conduct. d. the fruits of his crime.

c. the wrongfulness of his conduct.

Far & Wide Corporation uses the trademark of Google Inc. in a meta tag without Google's permission. This is a. cybersquatting. b. typosquatting. c. trademark infringement. d. trademark dilution.

c. trademark infringement.

Without authorization, Brady uses the trademark of Ciera Coffee Company to promote cheap, flavorless candy, which is not similar to Ciera's products but diminishes the quality of the coffee company's mark. This is a. cybersquatting. b. typosquatting. c. trademark infringement. d. trademark dilution.

c. trademark infringement.

Property Management, Inc. (PMI), presents a standard-form lease for an apartment to Quentin, a potential tenant. PMI offers it on a take-it-or-leave-it basis. Quentin signs it, but later wants to withdraw from it. He is most likely to avoid enforcement of the lease on the ground of a. economic duress. b. undue influence. c. unconscionability. d. mistake

c. unconscionability.

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 a. enforceable. b. valid. c. void. d. voidable.

c. void

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue: a. no one. b. Jake only. c. Leon only. d. Jake or Leon.

d. Jake or Leon.

Quest Outdoor Store orders RiverRun-brand kayaks from Sports Merchandise, Inc. Sports Merchandise mistakenly ships kayaks of the wrong size, which Quest rejects and returns via Trans-State Shipping Company. During the return, the kayaks are lost. The loss is suffered by: a. Quest. b. Trans-State. c. RiverRun. d. Sports Merchandise.

d. Sports Merchandise.

Fruit Packers, Inc., provides its sales representatives with phones to use in the ordinary course of business. Fruit monitors the employees' electronic communications made through the phones. This is: a. a violation of the rights of Fruit's employees. b. within Fruit's rights even if the employer did not provide the phones. c. a subject for dispute resolution by Fruit's phone service. d. a "business-extension exception" under the Electronic Communications Privacy Act.

d. a "business-extension exception" under the Electronic Communications Privacy Act.

State University (SU) 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 SU. This requirement is a. a discharge by performance. b. a material alteration. c. an accord and satisfaction. d. a condition.

d. a condition.

Employees, clients, and others with authorization use World Transport Corporation's network around the globe to share computer files. This is: a. an invasion of privacy. b. trademark and copyright infringement. c. digital sampling. d. a distributed network.

d. a distributed network.

Riley obtains permission from Saga Company to use the firm's game app on Riley's smartphone, tablet, and other mobile device. But Riley does not obtain ownership rights in the app. This is: a. a license. b. a cookie. c. cloud computing. d. a violation of the law.

d. a violation of the law.

Sandy, a businessperson, is convicted of RICO offenses. Sandy's penalties may include a. divestiture or dissolution of Sandy's business. b. imprisonment for up to twenty years. c. a fine of up to $25,000 per violation. d. all of the choices

d. all of the choices

Because of the loss of significant amounts of revenue as a result of unauthorized digital downloads, file-sharing has created problems for: a. the motion picture industry. b. recording artists and their labels. c. the companies that distribute file-sharing software. d. all of the choices.

d. all of the choices.

Ann offers to buy Beth's land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth's price. Ann and Beth's obligations: a. must still be performed. b. must now be renegotiated. c. are on "hold." d. are discharged.

d. are discharged.

Kevin obtains a loan from Liberty Credit Bank at an interest rate that exceeds the state's maximum. Liberty has a. none of the choices. b. engaged in a restraint of trade. c. violated a licensing statute. d. committed usury.

d. committed usury.

Don sends an e-mail to Eve, promising her a percentage of the amount in a foreign bank account if she will assist in transferring the funds to a U.S. bank account. Eve forwards her account number, but the funds are never sent. Instead, Don quickly withdraws the funds in Eve's account. This is: a. hacking. b. identity theft. c. phishing. d. cyber fraud.

d. cyber fraud.

Jade puts up a collection of sports memorabilia for bids on BuyBuy, an Internet auction site. Khalil makes the highest bid and sends the payment, which Jade receives, but she does not send the collection. This is: a. hacking. b. identity theft. c. phishing. d. cyber fraud.

d. cyber fraud.

Omni Corporation provides tablets for its employees to use "in the ordinary course of its business." Omni intercepts the employees' business communications made on these devices. This is a. a violation of the rights of Omni's employees. b. a matter for which Omni must obtain its employees' consent. c. a subject for dispute resolution by Omni's Internet service provider. d. excluded from the coverage of the Electronic Communications Privacy Act.

d. excluded from the coverage of the Electronic Communications Privacy Act.

Kim enters into a contract to lease an apartment from Laurel Wood Apartments. The lease contains an exculpatory clause. This clause is: a. enforceable as a matter of public policy. b. enforceable if it releases the landlord from liability regardless of fault. c. enforceable if an event occurs to which the clause applies. d. generally unenforceable.

d. generally unenforceable.

Teri files a petition for bankruptcy. Her creditors must file with the court their proof of claims against her assets within: a. fifteen days of the order for relief. b. thirty days of the filing of the petition. c. sixty days of the automatic stay. d. ninety days of the creditors' meeting.

d. ninety days of the creditors' meeting.

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot a. nothing. b. compensatory damages. c. consequential damages. d. nominal damages.

d. nominal damages.

ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months. This contract is enforceable by any third party, such as ActioNOW's clients.: a. ActioNOW. b. Becca. c. any third party, such as ActioNOW's clients. d. none of the choices.

d. none of the choices.

A contract between Rides & Games, Inc., and State Fair Corporation includes a provision excluding liability as a result of fraud. This provision is a. enforceable because the parties are protected from liability. b. enforceable because the parties consented to it. c. enforceable if the parties have equal bargaining power. d. not enforceable.

d. not enforceable.

In selling 300 acres of rural land to Organic Farms, Peyton tells the buyer that the land "will be worth twice as much by next year." This is a. adhesion. b. fraud. c. mistake. d. opinion.

d. opinion.

The employees of Eco Engineering Inc. share company-related resources among multiple computers without requiring a central network server. This is a. digital sampling. b. cybersquatting. c. cloud computing. d. peer-to-peer (P2P) networking.

d. peer-to-peer (P2P) networking.

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to: a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before shipping them. d. place the goods into the hands of a carrier.

d. place the goods into the hands of a carrier.

. Refer to Fact Pattern 9-1. In those states with antispam laws, federal law a. prohibits or regulates the use of spam. b. requires the use of spam by business entities. c. bans the use of spam altogether. d. preempts the application of state law to commercial e-mail with certain exceptions.

d. preempts the application of state law to commercial e-mail with certain exceptions.

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce. After Field ships the lettuce but before the restaurant receives it, the buyer declares bankruptcy. The seller can stop delivery of the goods in transit: a. only if the quantity is at least 50 percent of the contract amount. b. only if the quantity is in a single "unit." c. only if the quantity is at least a truckload. d. regardless of the quantity.

d. regardless of the quantity.

Herb, a computer programmer for Inventory Control Ltd., is arrested in his employer's parking lot on suspicion of larceny. Herb must be informed of his right to a. a trial by jury. b. punishment c. question witnesses. d. remain silent.

d. remain silent.

Rob promises to pay Sara, his niece, $5,000 if she obtains her degree at Tech University, where she is in her third year. Sara graduates. Rob is a. not required to pay because Sara was already at Tech. b. not required to pay because obtaining a degree benefits Sara. c. required to pay because a job can be hard to find after college. d. required to pay because Sara obtained a degree at Tech.

d. required to pay because Sara obtained a degree at Tech.

Berto pushes Consuela to the ground, grabbing her smartphone as she falls. The use of force or fear is required for this act to constitute a. burglary. b. any crime. c. larceny. d. robbery.

d. robbery.

Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be a. absolute. b. complete. c. material. d. substantial

d. substantial

Global Outfitters Outlet and Holly, a consumer, enter into a contract for a sale of camping gear. If the contract includes a clause that is perceived as grossly unfair to Holly, its enforcement may be challenged under: a. the mirror image rule. b. the principle of fair trade. c. the predominant-factor test. d. the doctrine of unconscionability.

d. the doctrine of unconscionability.

Renee's voluntary petition for bankruptcy is found to be proper. The order for relief is effective as soon as a. she files the petition. b. she posts a bond to cover the costs of the proceedings. c. her creditors agree to the terms. d. the trustee collects and distributes the property of her estate

d. the trustee collects and distributes the property of her estate.

Call&Talk's use of the domain name "callltalk," without CallTalk's authorization, to sell pornographic phone conversations, is: a. a legitimate marketing technique. b. a fair use. c. a license. d. trademark dilution.

d. trademark dilution.

Industrial Engineering Inc promises to give stock options to Jasmine for processes she has already designed for the firm. This promise is enforceable a. because it is a new contract b. because it is an illusory promise c. because it is supported by past consideration d. under no circumstances

d. under no circumstances

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 a. if the appropriating site has nothing to do with the meta tag. b. if the two sites appear in the same search engine results. c. if the use constitutes trademark infringement. d. under no circumstances.

d. under no circumstances.

Gene, an accountant, convinces his client Hazel to sign a contract to invest her savings in 2Gether, a nonexistent social-networking Web site. There is clear and convincing evidence that Hazel did not act out of her free will. This is: a. duress. b. fraud. c. mistake. d. undue influence.

d. undue influence.

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of a. duress. b. fraud. c. mistake. d. undue influence.

d. undue influence.

Creditors hold judgments on overdue debts against Expert Auto Repair when the debtor receives a discharge in bankruptcy. The discharge will: a. extend the time for payment of the overdue debts. b. have no effect on the creditors' judgments. c. require creditors to re-file their collection actions. d. void any creditor's judgment on a discharged debt.

d. void any creditor's judgment on a discharged debt.

Fresh Gro, Inc., offers to deliver produce to the customers of Grocer's Mart for a certain price. Fresh's intent to extend a serious offer to Grocer's Mart is determined by reference to Fresh's: a. assumptions. b. beliefs. c. intentions. d. words and action.

d. words and action.

Edgar refuses to pay Delia $500 for the cost to repair Edgar's washing machine and dryer, which Delia still possess Delia has a lien on the machines, which will terminate a. if she continues to maintain possession b. if she does not file a written notice of lien within thirty days c. if she voluntarily surrenders possession d. at the end of the machines' warranty period

if she voluntarily surrenders possession