BIZ FINAL LAW

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The exterior boundaries of land extend no further than the depth of the deepest hole and the height of the tallest structure.

False

Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC). To succeed with an age-discrimination claim against MVMC, Lomax will have to show that

Lomax is qualified for his job

A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.

A limited liability company can be taxed as a partnership.

A limited liability company is a citizen of every state of which their members are citizens.

A limited liability limited partnership is a type of limited partnership.

Taking private property for public use requires the payment of "just compensation."

True

T/F: Any oil facility that discharges oil into navigable waters or onto an adjoining shore may be liable for cleanup costs, as well as damages.

True

T/F: National effluent (pollution) standards are set by the Environmental Protection Agency for each industry.

False

T/F: Public water systems operators must come as close as possible to meeting the Environmental Protection Agency's standards by using any available technology that is economically and technologically feasible.

False

T/F: The National Pollutant Discharge Elimination System focuses on industrial wastewater and storm water discharges.

If a wage differential is due to any factor other than gender, then it does not violate the Equal Pay Act.

TRUE

In some states, an unsolicited e-mail must include a toll-free phone number that the recipient can use to ask the sender to send no more unsolicited e-mail.

TRUE

Under the Age Discrimination in Employment Act of 1967 permits private cause of action against employers for age discrimination

TRUE

Environmental Law

The body of statutory, regulatory, and common law relating to the protection of the environment.

A credit-card company must send monthly bills to cardholders twenty-one days before the due date.

True

In choosing a form of business organization for a new enterprise, important factors include the ability to raise capital.

True

Like the shareholders of a corporation, the owners of a limited liability company enjoy limited liability.

True

Most courts apply the same principles to joint ventures as they apply to partnerships.

True

New sources of water pollutants must install pollution-control equipment before beginning operations.

True

Uri borrows Vera's boat to enjoy for a weekend. Uri negligently runs the boat aground near Water's Edge Beach, damaging the hull. Liable for the cost of repairing the boat is

Uri only.

Fleet Trucking, LLC, buys a white van from Go Motors, Inc. , on credit under a guaranty signed by Herbie, Fleet's president, making him personally liable if the company does not pay. Herbie is

a guarantor

Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death of ether owner, that owner's interest in the stock passes to the surviving owner. This is

a joint tenancy.

Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the property, including extracting silver from an existing mine, for life. Patsy also has the right to lease the land for a period not to exceed her life. Patsy's ownership interest is

a life estate.

George borrows funds from Hometown Credit Union (HCU) to buy real property. George signs a written instrument that gives HCU an interest in the property as security for the debt's payment. This is

a mortgage

Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a relationship between

a principal and an agent

Paxton agrees to pay QuikChek Lenders a debt that is otherwise dis¬chargeable in bankruptcy. This is

a reaffirmation

Lebron, Michael, Nolan, and O'Neill combine to buy a professional basketball franchise. Their selected form of business organization is an investment group, which is also known as

a syndicate.

Consumer Shops, Inc., signs a lease for a storefront owned by Downtown Building Company. Unlike a purchaser of real property, Consumer Shops

acquires only temporary possession of the premises.

Colin, Demi, and Erin agree to be partners in Fajita Pizza, splitting the profits equally. Colin contributes 65 percent of the capital. When Fajita Pizza is dissolved, its liabilities are greater than its assets. The losses are paid by

all of the partners in proportion to their shares of the profits.

Missoula, Montana, passes an ordinance to regulate waste disposal. The disposal of waste may also be regulated by

all other levels of government.

Greg obtains from Helpful Insurance Company a policy that provides that Greg has thirty days after a premium's due date to pay it before the policy will be canceled. This is

an antilapse clause.

Phil is an insurance broker. This means that Phil is

an employee of an insurance company.

Thalia is an employee of Universal Insurance Company. Universal's employee manual states that workers will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is

an exception based on contract theory.

Donovan obtains from Equity Insurance Company a policy that provides that if the parties cannot agree on the amount of a loss covered by the policy, an estimate of the value by an impartial third party can be de-manded. This is

an incontestability clause.

Jeremy is considering forms of business organization, including the limited liability company (LLC), for his concessions business—Kettle Popt-Korn. Most states require that an LLC have

at least one member.

EZ Rentals Company wants to insure the equipment that it rents to the public. To obtain insurance, EZ must have an insurable interest in the equipment

at the time a loss occurs.

Wetlands

Areas of land designated by government agencies (such as the Army Corps of Engineers or the Environmental Protection Agency) as protected areas that support wildlife and that therefore cannot be filled in or dredged by private contractors or parties.

Lisa brings a successful lawsuit against her employer Metal Mold & Die Corporation for unlawful discrimination. Lisa may be awarded

back pay, retroactive promotions, and damages

Oberon buys a Pro Club Health & Fitness, Inc., franchise, which the franchisor later terminates. In determining whether the termination was proper, a court will generally

balance the rights of both parties.

During the last years of her life, Barb's chief companion was Sylvia. Barb told Sylvia that she could have a certain painting when Barb died. Barb died without a valid will. Her family refused to give the painting to Sylvia, however, who filed a suit to obtain its possession. Based on the decision in Case 23.1, In re Estate of Piper, the court will most likely rule in favor of

Barb's family, because the painting was never delivered to Sylvia.

Berry indicates that she is acting as an agent on behalf of an unidentified client—Cuisine Catering, LLC—when she enters into a contract with Désean

Berry and Cuisine Catering

Berry indicates that she is acting as an agent on behalf of an unidentified client—Cuisine Catering, LLC—when she enters into a contract with Désean. Refer to Fact Pattern 17-2. Liability to Désean for nonperformance of the contract may be imposed on

Berry and the Cuisine Catering

China Bank is a foreign entity¾a firm owned and operated by investors in a foreign country. With respect to an LLC in the United States, China Bank can

become a member.

Cal owes Devin $500 on their roof repair contract, but refuses to pay. To collect, Devin files a me¬chanic's lien. Under a mechanic's lien, security for the debt is repre¬sented by

Cal's real estate

Bob rents a golf cart at Country Club Golf Course. The brakes are worn, and while Bob is driving the cart, they fail. The cart crashes into a tree, and Bob is injured. Country Club could have discovered, with reasonable diligence, that the brakes were worn. Liability for Bob's injuries most likely rests with

Country Club only.

Dhani is the beneficiary of a life insurance policy on Elmo's life obtained from Famed Insurance Company. The insured under this policy is

Elmo.

Children under fourteen years of age are not allowed to work.

For a party to take by adverse possession, the party's possession must be peaceable, and not hostile or adverse.

Generally, under employment-at-will doctrine, an employer may fire an employee even if doing so

Labels on fresh meats are not required to indicate where the food originated.

Marketable title means that the grantor's ownership is sell-able even if there are encumbrances or defects.

Most employers can treat their employees more or less favorably based on their religious beliefs or practices.

Persons cannot share ownership rights simultaneously in particular property (including real property and personal property)—one person's interest is always superior.

The Civil Rights Act of 1964 prohibits job discrimination on the basis of merit.

The distribution of promotions and other job benefits according to a seniority system is not normally a good defense to a suit for employment discrimination.

The exterior boundaries of land extend down to the depth of the deepest hole and up to the height of the tallest structure and no further.

The law governing limited liability companies is uniform.

The mere possession of land without right is called a tenancy at will.

The most common exception to the employment-at-will doctrine is made on the basis that the employer's reason for firing the employee violates fundamental common sense.

The rights that accompany a fee simple absolute include the right to use the land for whatever purpose it is best suited, not necessarily for whatever purpose the owner sees fit.

Title VII of the Civil Rights Act of 1964 applies to employers with fifteen or less employees.

Title VII of the Civil Rights Act of 1964 prohibits only intentional discrimination.

To recover workers' compensation, an employee must prove that an injury did not occur on the job or in the course of employment.

The Food and Drug Administration does not have the authority to directly recall any food products that it suspects are tainted but must rely on the producers to recall items.

F-( 4 protection of health and safety )/protect: adulterated and misbranded foods and drugs FDA: to ensure drugs are safe and effective before marketed to the public

Labels on fresh meats are not required to indicate where the food originated.

F/ Fair packaging and labeling act requires food product labels identify: the product; the net quantity of the contents and , if the number of serving is state, the size of serving ( II- labeling and packing laws )

State consumer protection agencies are charged by Congress with the broadly stated goal of preventing unfair and deceptive trade practices

F/very agency and department of the federal government has an office of consumer affairs, and most states have one or more such offices to help consumers. Also, typically the attorney general's office assists consumers at the state level./Introduction

Compensatory damages are not available in cases of intentional discrimination in violation of Title VII of the Civil Rights Act of 1964

FALSE

Cybersquatting is illegal only if a domain name is identical to the trademark of another, not if the name is merely confusingly similar.

FALSE

Cybersquatting occurs when key words are inserted into the hyper text markup language code to tell Internet browsers specific information about a Web page.

FALSE

Employees who use social media in a way that violates their employer's stated policies cannot be disciplined or fired from their jobs.

FALSE

Employers are not required to modify their job-application and selection process so that those with disabilities can compete for jobs with those who do not have disabilities.

FALSE

Employers can avoid liability for employment discrimination on the basis of after-acquired evidence of an employee's misconduct

FALSE

Employers can monitor employees' electronic communications made in the ordinary course of business, including employees' personal communications.

FALSE

Federal law permits the intentional accessing of stored electronic communication even if the accessing is unauthorized

FALSE

Federal law permits the intentional interception of any wire, oral, or electronic communication

FALSE

Advertising that appears to be based on factual evidence will not be deemed deceptive even if it is not reasonably supported by evidence

False

Any suit against the business or its employees does not lead to unlimited personal liability for the owner of a sole proprietorship.

False

Credit can be denied solely on the basis of race.

False

Deceptive advertising does not occur in the online environment.

False

Federal law provides the basis for issuing regulations to control multistate air pollution.

False

Generally, if a member dissociates form a limited liability company (LLC), the other members cannot continue to carry on the LLC's business.

False

Major credit reporting agencies must provide consumers with free copies of their own credit reports every six months.

False

No state requires franchisors to provide presale disclosures to prospective franchisees.

False

Property used by a government for a public purpose such as a park is community property.

False

Public water systems operators must come as close as possible to meeting the Environmental Protection Agency's standards by using any available technology.

False

Puffery constitutes deceptive advertising.

False

State consumer protection agencies are charged by Congress with the broadly stated goal of preventing unfair and deceptive trade practices

False

Surface and subsurface rights cannot be separated.

False

StartUp Investors, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be

divided equally among the members.

Great Looks Clothing Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices. Hot Trends Inc. sends e-mail ads to any e-mail address that Hot Trends can find on the Web or otherwise generate. Ilene sends e-mail notes to her friends, relatives, and co-workers, discussing personal issues and recommending products or services that she likes. 1. Refer to Fact Pattern 15-1. Federal law preempts state antispam laws

except for provisions that prohibit false and deceptive e-mailing practices.

Omni Corporation provides cell phones, laptops, and 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

excluded from the coverage of the Electronic Communications Privacy Act

Cory employs Dash Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is

express authority

11. The lender does not have to strictly comply with the state statute governing foreclosure—substantial compliance is sufficient.

false

12. A surety can be required to pay an obligation only after the principal debtor defaults and usually only after the creditor has made an attempt to collect from the debtor.

false

John contracts with Kelly to buy a certain number of cattle for Kelly's Circle K ranch. John makes a deal with Lawson, the owner of a local herd, and makes a down payment. Kelly fails to pay the rest of the price. Lawson sues John for breach of contract. John's right to hold Kelly liable for any damages that he has to pay is the right of

idemnification

A franchise agreement between Simple Software Company and Total Game, Inc., is silent on a time for termination of the franchise. Simple may

terminate on reasonable notice.

Churchy hires Danielle, a real estate broker, to act as his agent to sell his land for $150,000. Oil is discovered beneath the land, causing its market value to increase considerably. The agency agreement is likely

terminated by operation of law

Gena borrows $350,000 from Fish Island Bank to buy a home, which secures the mortgage. In the seventh year of the loan, Gena stops making payments. After the bank repossesses the property but before it is sold, Gena may buy it by paying

the full amount of the debt, plus any interest and costs

the full amount of the debt, plus any interest and costs.

Grant wants to transfer the ownership of his warehouse to Holly by deed. To do so requires

the grantor's signature only

Cierra rents an apartment from Damian that floods whenever there is a heavy rain. Damian refuses to fix the problem. Damian has breached

the imp lie warranty of habitability

The operations of Commercial Concrete, Inc., are major sources of air pollution. These operations must use

the maximum achievable control technology

Kailin owns a farm near Manhattan, Kansas, with a farmhouse, barn, and other structures permanently attached. Kailin grows soybeans on the property. A pond lies within the boundaries. Land includes

the pond, the soil, and the structures.

Bay City wants to acquire undeveloped land within the city limits to convert into a public park. Bay City brings a judicial proceeding to obtain title to the land. This is

the power of eminent domain

Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S. Marines Corps. Ned agrees. This is a bailment for

the sole benefit of the bailor.

County Water & Sewer operates a public water supply system. County Water must send to every household that it supplies with water an annual statement describing

the source of the water, and any contaminants and health concerns

Brad is a general partner, and Carlos and Dora are limited partners, in Eastside Physicians, a medical clinic and limited partnership. East side is dissolved and its assets are collected, liquidated, and distributed. This results in

the termination of Eastside's legal existence. a. nothing with respect to Eastside's existence. b. the maturity of Eastside's debts. c. the suspension of Eastside's business. d. the termination of Eastside's legal existence.

Arnie is a member of Bowling & Billiards, LLC, a limited liability company. Arnie can participate in the firm's management

to any extent. a. only to the extent that he assumes liability for the firm's debts. b. only to the extent of his investment in the firm. c. to any extent. d. to no extent.

Buckley is a general partner in Cut-Rate Shipping, LLLP, a limited liability limited partnership, which cannot pay its debts. Buckley is personally liable for the debts

to the extent of his capital contribution. a. in proportion to the number of partners in the firm. b. to no extent. c. to the extent of his capital contribution. d. to the full extent.

Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house. Sari ratifies the contract. Later, Sari tries to rescind the part of the contract relating to the exterior. This attempt will be

totally unsuccessful

Interactive Entertainment Corporation markets its products online. Through the use of cookies, Interactive Entertainment and other online marketers can

track individuals' Web browsing activities

CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register "calltalk" as its second-level domain. Later, CallTalk's less successful competitor, CellTalk Company, chooses to use and register "caltalk" (an intentional misspelling of "calltalk") as its second-level domain. Still later, Call&Talk, Inc., uses the domain name "callltalk" (also a deliberate misspelling of "calltalk") without CallTalk's authorization, to sell pornographic phone conversations. Refer to Fact Pattern 15-2. Call&Talk's use of the domain name "callltalk," without CallTalk's authorization, to sell pornographic phone conversations, is

trademark dilution

Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance, this policy is an arrangement for

transferring and allocating risk.

10. If a homeowner defaults, or fails to make the mortgage payments, the lender has the right to foreclose on the mortgaged property.

true

13. When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right that the creditor had against the debtor.

true

15. A guaranty contract must always be in writing to be enforceable.

true

17. Personal property that is most often exempt from satisfaction of judgment debts does not include equipment that the debtor uses in a business or trade

true

An agency can terminate once its purpose is achieved.

true

An agency coupled with interest is a relationship created for the benefit of the principal.

true

An agent has a duty to keep and make available to the principal an account of all property and funds received and paid out on the principal's behalf.

true

An agent has the implied authority to do what is reasonably necessary to carry out express authority.

true

An agent is authorized to act on behalf and instead of a principal in doing business with third parties.

true

An agent's deviation from the lawful, clearly stated instructions of the principal is a violation of the duty of obedience.

true

If a homeowner defaults, or fails to make the mortgage payments, the lender has the right to foreclose on the mortgaged property.

true

If a principal does not ratify an unauthorized contract, the principal is not bound.

true

If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract

true

Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn, and other structures permanently attached to the land. Chita's brother Elvin owns everything else on the farm¾implements, seed, and so on. The real property is owned by

Chita only.

Socrates Software Corporation wants to hire Tomas, a noncitizen. To hire Tomas, Socrates must petition

Citizenship and Immigration Services.

Cody believes that Delta Corporation has discriminated against him on the basis of gender. Cody files a suit against Delta under Title VII. To establish a prima facie case of employment discrimination, Cody must show that

Cody is a member of a protected class.

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town. Later, Ben notices rainwater collecting in the trailer and covers it with a tarp at a cost of $40. This cost is most likely borne by

Cody only.

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is

a bailment.

Yogi loans his laptop to Zoey. This is

a bailment.

Paul files a petition in bankruptcy. He turns his assets over to O'Brien, who sells them and then distributes the proceeds to Paul's creditors. O'Brien is

a bankruptcy trustee

Satin, Silk & Swimwear, a women's clothing store, employs female attendants who as¬sist customers in the dressing rooms. Toribio, a forty-one-year-old male, ap¬plies for an atten¬dant's job, but is not hired. In Toribio's suit against Satin, Silk & Swimwear for em¬ployment discrimination under the Civil Rights Act of 1964, the store has

a bona fide occupational qualification defense

Silky Coordinates, a women's clothing store, employs female attendants to assist customers in the dressing rooms. Radley, a forty-one-year-old male, applies for an attendant's job, but is not hired. In Radley's suit against Silky for employment discrimination under Title VII, the store has

a bona fide occupational qualification defense.

Greta is the only female employee in the maintenance department of Hydraulics Inc. Greta's supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. This is

a constructive discharge on the basis of gender discrimination.

Licensed fishing outfits in Bayou City form a business organization to provide, without profit, an economic service to its members. This is

a cooperative.

Vela and other farmers in Washington County form a business organization to provide, without profit, an economic service to its members. This is

a cooperative.

Hydraulic Equipment Company makes its products without required pollution control technology, causing a discharge of oily waste into the nearby Idle Lake. This activity can result in

a criminal fine, imprisonment, an injunction, or damages.

Boni, the owner of Café Rico, knows about, but does not take any action to prevent, the sexual harassment of employees. Boni and the café may be liable for such harassment by

a customer or a co-worker

Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is

a forebearance

Global Shipping Corporation and Harbor Warehouse Company transfer their property to Investment Managers, Inc., which manages the property and distributes the profits to Global Shipping and Harbor Warehouse. This form of a business organization is

a joint stock company

Build-Rite Construction Corporation and Deals-R-Us, Inc., combine their efforts to build an office and retail complex. Their form of business organization is

a joint venture.

Greenway Corporation and Happy Trails, Inc., combine their efforts to build a network of biking and hiking trails along an unused railroad spur. Their form of business organization is

a joint venture.

Omega Corporation and Precision Coding, Inc., two software firms, wish to combine their research and development capabilities to make a special, limited edition computer game. The most appropriate legal entity for this project might be

a joint venture.

Rural Holding Company (RHC) possesses farmland. RHC has the right to use the property, including harvesting the crops, for ten years. RHC does not have the right to extract the coal under the land. This is

a leasehold estate.

Bee Hive Honey, LLC's members include Chad, Dolores, and others. For purposes of suing and being sued, Bee Hive Honey is

a legal entity apart from the owners. a. an aggregate of Chad, Dolores, and the other members. b. a natural person in the members' "family." c. a legal entity apart from the owners. d. a non-participating third party.

Dimitri, a certified public accountant and an investor, and Elinor, an insurance salesperson and a realtor, may create an agency relationship for

a legal purpose only

Sol allows Tiffany to camp on his land for several days and take photos for an upcoming exhibit of landscape photography. Sol has given Tiffany

a license

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 license.

Instead of setting up a business to market her own products, Krissy considers entering into a distributorship franchise with Little Breweries Corporation. This involves the transfer of

a license.

Roderick possesses five hundred acres of forested property. Roderick has the right to use the land, including cutting its timber, for life. Roderick also has the right to lease the land for a period not to exceed his life. This ownership interest is

a life estate

Custom Auto Body & Detailing, LLC, is a limited liability company. Its members include Dennis and Estelle. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as

a partnership.

QuizBooks LLC is a limited liability company. Like any other LLC, unless QuizBooks chooses otherwise, the firm will be taxed as

a partnership.

Custom Auto Body & Detailing, LLC, is a limited liability company. Unless indicated otherwise on the Custom Auto's federal tax form, the firm will be taxed as

a partnership. a. a cooperative. b. a corporation. c. a joint venture. d. a partnership.

Refer to Fact Pattern 23-1. These facts give rise to

a presumption of negligence by Truck & Transfer.

Jewelry & Coin Company hires Kelly Ann to buy gems and precious metals from various sources on its behalf. In this relationship, Jewelry & Coin is

a principal

A easement is the revocable right of a person to come onto another person's land.

A joint tenant cannot transfer his or her rights by sale or gift without the consent of the other joint tenants.

A license is a right to go onto land owned by another and take away some part of the land itself or some product of the land.

A limited liability company must be managed by nonmembers.

A limited partnership cannot be dissolved by court decree.

A member of a limited liability company (LLC) has the power and the right to dissociate from the LLC at any time.

A quitclaim deed offers the most protection against defects in the title.

Community property it is created when a real property owner or lessor agrees to convey the right to possess and use the property to a lessee (tenant) for a certain period of time.

Compensatory damages are not available in cases of intentional discrimination in violation of Title VII of the Civil Rights Act of 1964.

Credit can be denied solely on the basis of race.

Employee demotion is one of the least frequently cited reasons for a finding of constructive discharge under Title VII of the Civil Rights Act of 1964.

Employees of private (non-government) employers have some privacy protection under the U.S. Constitution.

Employers are not required to modify their job-application and selection process so that those with disabilities can compete for jobs with those who do not have disabilities.

Employers are required to establish retirement plans for their employees.

Employers can avoid liability for employment discrimination on the basis of after-acquired evidence of an employee's misconduct.

Federal law does not restrict what employers may do on the basis of results of genetic testing.

For an employer to successfully defend against a charge of a supervisor's sexual harassment, the plaintiff-employee must have taken a tangible employment action against the supervisor.

For federal income tax purposes, one-member limited liability companies are not taxed.

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.

If a member's dissociation from a limited liability company is rightful, normally the dissociated member has the right to force the LLC to dissolve.

In a limited partnership, a limited partner has full responsibility for the partnership and for all its debts.

Inverse condemnation occurs when an owner simply gives private property to the government without accepting any compensation.

Major credit reporting agencies must provide consumers with free copies of their own credit reports every six months

The alter-ego theory can be applied to a corporation, but not a limited liability company.

The Consumer Product Safety Commission is the primary agency that issues regulations on food labeling.

F/CPSC : with broad regulatory authority over the safety of consumer products: 1-setting safety standards for consumer products 2-ban the manufacture and sale of any product that the commission believes poses an ''unreasonable risk to consumers' 3-remove : imminently hazardous and issues recalls products 4- Require manufacturer report : hazardous already sold or intended for sale 5- administer product safety: Child production and Toy Safety act ( protection of health and safety )

Advertising that appears to be based on factual evidence will not be deemed deceptive even if it is not reasonably supported by evidence

F/deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim-definition of deceptive advertising Advertising that appears to be based on factual evident but in fact is not reasonable support will deemed deceptive (I/ deceptive advertising)

Employee demotion is one of the least frequently cited reasons for a finding of constructive discharge under Title VII of the Civil Rights Act of 1964.

FALSE

Federal law permits the sending of unsolicited commercial e-mail and does not prohibit spamming activities

FALSE

For an employer to successfully defend against a charge of a supervisor's sexual harassment, the plaintiff-employee must have taken a tangible employment action against the supervisor

FALSE

Most employers can treat their employees more or less favorably based on their religious beliefs or practices

FALSE

Much of the material on the Internet, including software and database information, is not copyrighted.

FALSE

No federal court has held that digitally sampling a copyrighted sound recording of any length constitutes copyright infringement.

FALSE

The Civil Rights Act of 1964 prohibits job discrimination on the basis of merit.

FALSE

The distribution of promotions and other job benefits according to a seniority system is not normally a good defense to a suit for employment discrimination

FALSE

Title VII of the Civil Rights Act of 1964 applies to employers with fifteen or less employees.

FALSE

Title VII of the Civil Rights Act of 1964 prohibits only intentional discrimination

FALSE

Trademark dilution occurs when a person registers a domain name that is the same as, or confusingly similar to, the trademark of another and then offers to sell the domain name back to the original owner

FALSE

Using another's trademark in a meta tag is not permissible, even if the use is reasonably necessary.

FALSE

A cooperative cannot be incorporated.

False

A license is a right to go onto land owned by another and take away some part of the land itself or some product of the land.

False

A partner is liable to the partnership for honest errors in judgment in conducting partnership business.

False

A partnership is a pass-through entity and a taxpaying entity.

False

A sole proprietor does not own the entire business.

False

A sole proprietor pays personal and business income taxes on the business's profits.

False

A sole proprietorship offers less flexibility than does a partnership or a corporation.

False

A sublease releases the tenant from his or her obligations under the lease.

False

Advertising that contains an endorsement by a celebrity will not be deemed deceptive.

False

An assignment of a lease releases the original tenant from the obligation to pay rent should the assignee default.

False

Businesses that engage in ultrahazardous activities are not liable for any injuries the activities cause.

False

Different standards for air quality depend on whether the sources are located in clean areas or polluted areas.

False

Eminent domain is the right of an owner of property in fee simple absolute to use the property as he or she sees fit.

False

For a party to take by adverse possession, the party's possession must be peaceable, and not hostile.

False

For federal income tax purposes, one-member limited liability companies are not taxed.

False

If an agent has no authority but nevertheless contracts with a third party, the principal can be held liable on the contract

False

In a limited liability company, the management may consist of members or nonmembers, but not both.

False

In a limited partnership, limited partners have essentially the same rights as general partners to participate in management.

False

In a limited partnership, no partner has full responsibility for the partnership and for all its debts.

False

In most states, a limited liability company must have at least two members.

False

Labels on fresh meats are not required to indicate where the food originated.

False

The Consumer Product Safety Commission is the primary agency that issues regulations on food labeling.

False

The Food and Drug Administration does not have the authority to directly recall any food products that it suspects are tainted but must rely on the producers to recall items.

False

The National Pollutant Discharge Elimination System focuses only on industrial wastewater and storm water discharges.

False

The day-to-day operation of the franchise business normally is under the control of the franchisor.

False

The duration of a franchise is a matter determined by federal or state statutes.

False

The holder of a life estate has the right to use property for whatever purpose he or she sees fit without regard to the rights of a fee simple owner.

False

The landlord is responsible for all damage to leased premises.

False

There are no defenses to liability under the Comprehensive Environmental Response, Compensation, and Liability Act.

False

Traditionally, entrepreneurs have used one major business form—the sole proprietorship.

False

Under the Clean Water Act, criminal penalties apply whether a violation was intentional or unintentional.

False

Under the implied warranty of habitability, a tenant impliedly warrants that he or she will "habitate" on the premises during the term of the lease.

False

With a tenancy at will, either party can terminate the tenancy without notice.

False

With regard to air pollution, there is one set of ambient standards—maximum permissible levels of certain pollutants—and the federal government formulates plans to achieve them.

False

Advertising that contains an endorsement by a celebrity will not be deemed deceptive.

False/Advertising that contains an endorsement by a celebrity may be deemed deceptive if the celebrity does not actually use the product.

Puffery constitutes deceptive advertising.

False/vague generalize and obvious ezag generalize are permissible and not considered deceptive(I - deceptive advertising)

EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is

Farm Harvest.

Fabio makes a living by farming near Gastric Combustibles, Inc., which has discharged pollutants into the area's air and water. If Fabio brings a suit asking for an injunction against Gastric on the ground of nuisance, the court is most likely to rule in Gastric's favor if

Gastric's operation is the core of the local economy.

Hugh is a limited partner and Ida is a general partner in HI Volume, a limited partnership. Joy is one of HI Volume's creditors. On HI Volume's dissolution, the party whose rights have the first priority to the firm's assets is

Joy only. a. Hugh and Ida. b. Hugh only. c. Ida only. d. Joy only.

Mena applies for a homeowners' insurance policy on her house with Neighbors Insurance Company through Obie, an agent who works for Neighbors. In this transaction, Obie is

Neighbors's agent, and not Mena's agent.

Now Shopping Mall Corporation leases space to Only U Stores and Pik-Ur-Choice, Inc. Later, Pik-Ur-Choice begins to sell items that are similar to Only U's goods, and Only U abandons its space before the end of the lease term. Only U is liable to

Now only for the unpaid rent.

Nagel allows O'Neill to store his trailer on Nagel's property for $50 a month while O'Neill is out of town on a job for Plain States Construction, his employer. The bailor is

O'Neill.

Oleg takes a PowerMade-brand rototiller to QuikFix Inc. for repairs. Lacking certain parts, QuikFix ships the rototiller to Repair & Parts Company. While in Repair & Parts's possession, the machine is damaged. QuikFix can recover for the damage from

Oleg.

Orin is a doctor with Physicians Health Clinic, which obtains insurance from Quotient Insurance, Inc., on Orin's life. Orin dies. The proceeds of the policy belong to

Physicians Health Clinic

Plywood & Particleboard Mill, Inc., does not use filters on its stacks, which consequently pollute the air. Quinn, a Plywood employee, suffers respiratory illness. To succeed in a suit against the company on the ground of negligence, Quinn must show that he suffers from

Plywood's failure to use reasonable care to a vert herm to Quinn

Natural Gas, LP, is a limited partnership to which its partners have contributed capital. Natural Gas's creditors include Precision Piping, Inc. On Natural Gas's dissolution, its assets will be distributed to pay

Precision Piping before the partners.

Most states apply to a limited liability company (LLC) formed in another state the law of the state where the LLC was formed.

Most states imply a warranty—the implied warranty of habitability—in the sale of new homes.

One of the basic elements of zoning is the classification of land by permissible use as part of a comprehensive municipal plan.

Sexual harassment occurs when sexual favors are demanded in return for job opportunities, promotions, salary increases, or other benefits.

The Americans with Disabilities Act of 1990 defines persons with disabilities as persons with physical or mental impairments that "substantially limit" one or more everyday activities of the affected individuals.

The Consumer Product Safety Commission conducts research on the safety of individual consumer products and maintains a clearinghouse on the risks associated with various products.

The Equal Pay Act and other federal laws prohibit employers from engaging in gender-based wage discrimination.

The key consideration in determining whether an employment manual creates an implied contract is the employee's reasonable expectations.

The protection of an individual's right to his or her property has become one of our most important rights.

Title VII of the Civil Rights Act of 1964 prohibits job discrimination against majority group individuals, such as white males.

Under the Age Discrimination in Employment Act of 1967 permits private cause of action against employers for age discrimination.

Vesting gives an employee a legal right to receive pension benefits at some future date when he or she stops working.

When the harassment of co-workers creates a hostile working environment, an employee may have a cause of action against an employer.

Whenever a work-related injury or disease occurs, employers must make reports directly to the Occupational Safety and Health Administration.

The Food and Drug Administration must ensure the safety of new medications.

T-4 protection of health and safety

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

T-Sale

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts—Regulation Z.

T/ definition 5 -truth lending act

True

T/F: A public authority, such as a state's attorney general, can sue to stop a "public" nuisance.

False

T/F: An environmental impact statement must analyze the impact on any affected business of proposed environmental controls.

True

T/F: An injured party may sue a business polluter in tort under the negligence and strict liability theories.

False

T/F: Businesses that engage in ultrahazardous activities are not liable for any injuries the activities cause.

True

T/F: It is a violation of federal law to sell a pesticide or herbicide that has a chemical strength different from the concentration declared on the label.

True

T/F: National Pollutant Discharge Elimination System permits can be issued even if a discharge will violate water-quality standards.

False

T/F: Only the federal government may restrict emissions from motor vehicles.

False

T/F: The Clean Water Act permits the filling or dredging of wetlands without a permit.

False

T/F: The Environmental Protection Agency has not concluded that greenhouse gases, including carbon dioxide emissions, constitute a public danger.

False

T/F: The primary responsibility for implementing air-pollution standards established under the Clean Air Act rests with state and local governments.

False

T/F: There are no defenses to liability under the Comprehensive Environmental Response, Compensation, and Liability Act.

False

T/F: There is one set of ambient standards—maximum permissible levels of certain pollutants—and the Environmental Protection Agency formulates plans to achieve them.

True

T/F: Those who knowingly violate the Clean Air Act may be subject to criminal liability.

False

T/F: Under the Clean Water Act, criminal penalties apply whether a violation was intentional or unintentional.

False

T/F: Water-quality standards are set by the Environmental Protection Agency.

False

T/F: When a release of hazardous chemicals from a site occurs, potentially responsible parties can avoid liability through transfer of ownership.

An Internet service provider (ISP) is not liable for copyright infringement by its customer unless the ISP is aware of the subscriber's violation.

TRUE

Any federal, state, or local affirmative action program that uses racial or ethnic classifications as the basis for making decisions is subject to strict scrutiny by the courts.

TRUE

Federal wiretapping law covers electronic forms of communication.

TRUE

If a job applicant or an employee with a disability, with reasonable accommodation, can perform essential job functions, the employer must make the accommodation.

TRUE

Intentional discrimination by an employer against an employee is known as disparate-treatment discrimination.

TRUE

It is frequently the companies rather than courts or legislatures that are defining the privacy rights of their online users.

TRUE

Law enforcement uses social media to detect and prosecute criminals.

TRUE

Online defamation is wrongfully hurting a person's reputation by communicating false statements about that person to others online

TRUE

Sexual harassment occurs when sexual favors are demanded in return for job opportunities, promotions, salary increases, or other benefits.

TRUE

Social media posts are routinely included in discovery in litigation.

TRUE

The Equal Pay Act and other federal laws prohibit employers from engaging in gender-based wage discrimination

TRUE

The law does not restrict the "fair use" of methods for the circumvention of encryption software or other technological antipiracy protection for educational and other noncommercial purposes

TRUE

Title VII of the Civil Rights Act of 1964 prohibits job discrimination against majority group individuals, such as white males

TRUE

When the harassment of co-workers creates a hostile working environment, an employee may have a cause of action against an employer.

TRUE

When you download an application on your smartphone, you are typically entering into a license agreement.

TRUE

Stacy contracts to buy a franchise from Tender Steak House Company. In this contract, as in most franchise contracts, the determination of the territory to be served is made by

Tender Steak House.

Rhett works at Scarlett's Service Station. After work, in the station's restroom, Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed by

Thalia.

Reno is the beneficiary of a life insurance policy on Sula's life obtained from Thayer Insurance Company. The underwriter of this policy is

Thayer.

National Pollutant Discharge Elimination System permits can be issued even if a discharge will violate water-quality standards.

True

On dissolution, the creditors of the partnership and the creditors of the individual partners can make claims on the partnership's assets.

True

Performance standards for new sources of water pollution require the use of any available control technology, or AACT.

True

Restaurants must post guidelines on the number of calories that an average person requires daily.

True

State deceptive trade practices acts apply to actions by franchisors.

True

The Consumer Product Safety Commission conducts research on the safety of individual consumer products and maintains a clearinghouse on the risks associated with various products.

True

The Environmental Protection Agency sets maximum levels for pollutants in public water systems.

True

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts—Regulation Z.

True

The Food and Drug Administration must ensure the safety of new medications.

True

The covenant of quiet enjoyment guarantees that the buyer will not be disturbed in his or her possession of the land.

True

The franchise agreement is not likely to set out standards for the franchise to meet.

True

The government can recover the cost to clean up a hazardous waste disposal site from the persons who were even remotely responsible.

True

The intent to associate is a key element of a partnership.

True

Those who knowingly violate the Clean Air Act may be subject to criminal liability.

True

To be valid, a deed must contain a legally sufficient description of the land.

True

Under the doctrine of nuisance, persons may be liable if they use their property in a manner that unreasonably interferes with others' rights to use or enjoy their own property.

True

A sanction known as counter-advertising requires a company to advertise anew to inform the public about earlier misinformation.

True/ definition

Tab stores video equipment with U-Store-It, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to U-Store-It's negligence destroys the equipment. The loss is most likely to be imposed on

U-Store-It only.

Venerable Company stores office furniture with Warehouse Storage, Inc. (WSI), under a contract that limits the warehouse company's liability for lost or damaged property to $500. Venerable declines the option to pay a higher storage rate for an increase in the liability limit. The furniture is lost through no fault of WSI. The loss is most likely suffered by

Venerable only.

Under the Resource Conservation and Recovery Act, before hazardous waste generated by Xtreme Industries, Inc., can be transported, the waste must be properly labeled and packaged by

Xtreme Industries, Inc.

Detailed Designs Company, an architectural firm, wants to hire Eduardo, a noncitizen. A temporary work visa is most likely to be set aside for a noncitizen who is

a "person of extraordinary ability."

Isabel obtains a fire insurance policy on her home from Justice Insurance Company. The home is lost in a fire, but the parties dispute the amount of Justice's liability under an ambiguous clause in the policy. A court would most likely

interpret the clause against Justice.

Uri is an employee of Verity Security Services. For Uri to obtain the benefits of federal wage-hour requirements, Verity must be engaged in

interstate commerce.

Kelsy obtains a business liability insurance policy from Luminous Insurance Company for Kelsy's Framing & Art Supplies store. When an event occurs that gives rise to a claim, Luminous has a duty to

investigate to determine the facts.

Merlin is a drug addict who has completed a supervised drug-rehabilitation program. Nabil used drugs casually in the past. Both work for Omni Insurance & Investments Inc. Considered to have a disability under the Americans with Disabilities Act of 1990

is Merlin only

Smith & Jones, Accountants, is a limited liability partnership (LLP). The major features of an LLP are that it limits the personal liability of the partners and

it allows the partnership to continue as a pass-through tax entity.

Round-Up Ranch and Smith & Jones, Accountants, are limited liability partnerships (LLPs). The major features of an LLP are that it limits the personal liability of the partners and

it allows the partnership to continue as a pass-through tax entity. a. it allows the partnership to continue as a pass-through tax entity. b. LLP statutes do not vary from state to state. c. it can only do business in the state in which it was formed. d. only a few states have enacted LLP statutes.

Leigh wants to go into the business of construction contracting. Among the reasons that would probably convince Leigh to set up his business as a sole proprietorship would be

its greater organizational flexibility.

Energy Industries, Inc., obtains insurance policies with Fidelity Insurance, Inc., and Goodworth Insurance Company against the risk of loss of Energy's property. Each policy includes a multiple insurance clause. A fire partially destroys one of Energy's buildings. Energy can collect from Fidelity

its proportionate share of the loss to the total amount of insurance.

Beatrix defaults on a debt to Credit Loan Corporation (CLC). As a creditor, CLC can place liens on all of Beatrix's property except

motor vehicles used to commute to work

Damian owns a pick-up truck and a motorcycle. He sells the motorcycle to Eden for $10,000. Eden pays for the cycle with a check, knowing that she had insufficient funds in her account to cover the amount. A week later, Damian files a petition in bankruptcy for relief through a liquidation. Refer to Fact Pattern 15-1. Regarding the pick-up truck, Damian

must include it as part of the estate unless the trustee recovers the price from Eden

Hillside Vineyards is a family limited liability partnership. All of the partners must be

natural persons or persons acting as fiduciaries for natural persons. a. natural persons only. b. natural persons or persons acting as fiduciaries for natural persons. c. persons acting as fiduciaries for natural persons only. d. related.

Maggie uses John's garage to store her car. She does not pay rent. John decides that he needs the garage for his own car. To terminate Maggie's tenancy, John

need not give Maggie any notice

Orina hires Padget, a real estate broker, to sell her oceanfront house. The house is destroyed in a hurricane before being sold. Padget is

no longer Orina's agent

Holly obtains an insurance policy from Inviolable Insurance Corporation (IIC). IIC may cancel, or refuse to renew, the policy because of

none of these choices.

Seafood Canning Corporation keeps a file of I-9 verifications forms. To inspect this file, the appropriate government officer must obtain

not a subpoena, a warrant, or the employer's consent.

Smelting & Refining Company generates solid waste considered hazardous. The company labels and packages properly all waste to be transported to a disposal site. Under the Resource Conservation and Recovery Act, this is most likely

not a violation

Conrad and Delilah are employees of EcoCrop Feed & Seed Corporation. Under the Equal Pay Act of 1963, EcoCrop can legitimately pay different wages on the basis of

seniority

Melanie files an employment discrimination suit against Natural Resources Industries Corporation under the Civil Rights Act of 1964 on a disparate-impact theory. To succeed, Melanie must show that members of a protected class are adversely affected by any of the following except the employer's

seniority system

Alexis sells half of her Triple A Ranch land to the Bar B Ranch. On the land is a reservoir. In the deed, Alexis retains the right to remove a limited amount of water per day from the reservoir. This right is

a profit

Mix-It Concrete Company has the right to enter Nim's land and remove the rock from Nim's quarry. This is

a profit.

Manhattan Developers, Inc., pays Northeast Trust Company to release its claim to a strip of waterfront property. Northeast gives Manhattan a deed that conveys only whatever interest Northeast has in the strip. This deed is

a quitclaim deed

Owen, Paula, Quinn, and Rita combine to finance the building of Super Stores, a shopping mall. Their selected form of business organization is an investment group, or

a syndicate.

David's family came to the United States from Ukraine in 1895. Eva's family came to this country from Vietnam in 1995. Fiona's family came from Mexico in 2005. Current immigration laws are based on

a system of sanctions against employers who hire illegal immigrants.

Grey rents an apartment to Hugh, who retains possession of the apartment after the lease expires without making any payments of rent. This is

a tenancy at sufferance

Samantha occupies a house on her mother Ruth's farm without paying rent. Either party can terminate this arrangement without notice. This is

a tenancy at will

Edna and Flavia buy a boat that they dock in a marina near Gulfport, Mississippi. On the death of either owner, that owner's interest in the boat passes to her heirs. This is

a tenancy in common.

Investment Properties Corporation conveys an office building to Jim with a deed that makes the greatest number of warranties and provides the most extensive protection against defects of title. This deed is

a warranty deed

Sasha's debt to Tully is past due. Tully brings a legal action against Sasha to collect the debt. To ensure that a judgment in Tully's favor will be collectible, he asks the court to order the seizure of Sasha's property. This is a request for

a writ of attachment

A court awards a judgment to Loan Collection Agency, who is the creditor, against Margret, who is the debtor. After the judgment, the creditor requests a court order to seize Margret's property to ensure that the judgment will be collectible. This is

a writ of execution

a writ of execution.

Barlow owns the surface rights for Canyon Ranch, but does not own the subsurface rights. Dusty owns the subsurface rights. Canyon Ranch includes a house, a bunkhouse, and two barns, which are damaged when Dusty is excavating for minerals under the surface. Most likely responsible for the damage is

a. Dusty. a. Dusty. b. Barlow. c. Dusty and Barlow. d. no one.

With respect to Italo's bottomland, Jacob has an easement, Kristin has a profit, and Leopold has a license. A right to possess the bottomland is owned by

a. Italo. a. Italo. b. Jacob. c. Kristin. d. Leopold

Processed Food Packaging Company employs workers, including Quint, at six locations in two states. Processed Food's discharge of Quint outside the terms of an employment contract may result in

a. Processed Food's liability for damages. a. Processed Food's liability for damages. b. Quint's liability for damages. c. discontinuance of Quint's health-plan coverage. d. monitoring Processed Food's communications for privacy violations.

Franz owns Guest House Hotel. His ownership rights include the right to sell or give away the property without restriction, as well as the right to commit waste, if he chooses. Franz's ownership interest is

a. a fee simple absolute. a. a fee simple absolute. b. a profit. c. a life estate. d. the power of eminent domain

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are a. a restaurant chain with twenty or more locations b. a food distributor with twenty or more customers c. a food processor with twenty or more products d. a food producer with twenty or more acres

a. a restaurant chain with twenty or more locations

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is

a. a restaurant chain with twenty or more locations.

Free-Flo Pipes & Plumbing Corporation is a private employer involved in an employment discrimination suit under the Civil Rights Act of 1964. Punitive damages may be recovered against Free-Flo only if the employer

a. acted with malice or reckless indifference. a. acted with malice or reckless indifference. b. can easily afford to pay the amount. c. has one hundred or more employees. d. consents.

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is

accession.

Free-Flo Pipes & Plumbing Corporation is a private employer in¬volved in an employment discrimination suit under the Civil Rights Act of 1964. Punitive damages may be recovered against Free-Flo only if the employer

acted with malice or reckless indifference

Commerce & Business Insurance, Inc., has a valid reason to cancel a policy issued to DIY Auto & Truck Parts Company. In most states, Commerce & Business could cancel the policy on

advance written—not oral—notice.

Graham buys from Hook, Line & Sinker Corporation the exclusive right to sell Hook, Line & Sinker fishing gear in a certain area. Their franchise agreement requires Graham to pay certain administrative expenses. Their agreement may also require Graham to pay a percentage of the franchisor's

advertising costs.

Svetlana, a fifty-five-year-old member of a racial minority with a disability, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on

age.

Congress enacts a new air quality statute that applies to businesses. To enforce federal environmental legislation, the federal government relies on

all levels of government and private citizens

CPA Accounting, LLC, is a limited liability company. If the law in CPA's state is like the law in most states, unless the members have agreed otherwise, participants in the firm's management will be considered to include

all members.

Outreach Security & Rescue, LLC, is a limited liability company. Unless the members have agreed otherwise, participants in the firm's management will be considered to include

all members.

Sly includes in his song "Sneaky" a few seconds of Wily's copyrighted sound recording "Wits" without permission. Some federal courts have found that such digital sampling is

all of the choices: a violation of copyright law, a "fair use" exception to the provisions of the act, not a "fair use" exception to the provisions of the act.

Emily and other users of Facebook and other social networking sites post messages, images, and other materials on these sites. Social media posts are routinely included in discovery in litigation to

all of the choices: establish a person's intent, Establish what a person knew at a particular time, reduce damages awards.

Oliana is a partner in Pacific Traders. In the majority of states, with respect to any partnership obligations that Oliana does not participate in, know about, or ratify, Oliana would be liable for

all of the obligations, jointly and severally.

Watercraft, Inc., employs Vladimir as a sales agent for a trial period. At the end of the period, Watercraft and Vladimir disagree on the amount of the commissions Vladimir is due for sales that he made. Vladimir may demand

an accounting

Otto is considering forms of business organization for Pro Tree Service, his landscaping firm. Like most states, Otto's state requires that to form a limited liability company, he must file with a central state agency

articles of organization. a. articles of certification. b. articles of formation. c. articles of organization. d. no specific documents.

Kerin obtains a property insurance policy for her art collection from Lawton Insurance Company. Kerin can cancel the policy

at any time.

Coco is considering forms of business organization for her concessions business Coco's Cakes. Most states require that a limited liability company have

at least one member. a. no minimum number of members. b. at least one member. c. at least two members. d. at least three members, including one general partner.

U-Rents Company wants to insure the equipment that it rents to consumers. To obtain insurance, U-Rents must have an insurable interest in the property

at the time a loss occurs.

BroadView Company arranges to have Carrier Corporation, a common carrier, transport 500 DVD players from New York to California. Dan is Carrier's driver. BroadView will have no cause of action against Carrier if Carrier fails to deliver the players on time because

authorities are stopping and searching all trucks entering California.

Earth's Bounty Farms arranges to have Fresh Express, Inc., a common carrier, transport a load of almonds from California to Delaware. Greg is Fresh Express's driver. Fresh Express will not be liable to Earth's Bounty for failing to deliver the almonds on time if

authorities are stopping and searching all trucks leaving California.

Vida is a purchasing agent for Wholesome Foods with the authority to buy grain up to a certain quantity. After the grain is bought, the agency relationship terminates

automatically

Community Recycling, Inc., plans to lay off fifty of its five hundred workers, including Bev. Bev has a right to continued health-care coverage under Community's group plan unless

b. Community completely cancels its plan. a. Community changes its insurer. b. Community completely cancels its plan. c. Bev files a suit against Community for wrongful discharge. d. Community decides not to pay Bev's premium.

Emylee, an employee of Farm Supplies, Inc., files a sexual-harassment suit against Gowan, her supervisor. Emylee wins. Farm Supplies may also be liable if it had effective harassment policies and complaint procedures, and

b. Emylee followed them. a. none of the employees followed them. b. Emylee followed them. c. all of the employees were aware of them. d. Gowan followed them.

Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC). To succeed with an age-discrimination claim against MVMC, Lomax will have to show that

b. Lomax is qualified for his job. a. Kyla is not qualified for Lomax's job. b. Lomax is qualified for his job. c. MVMC's qualifications for Lomax's job are too high. d. no one could do Lomax's job as well as he could.

Satin, Silk & Swimwear, a women's clothing store, employs female attendants who assist customers in the dressing rooms. Toribio, a forty-one-year-old male, applies for an attendant's job, but is not hired. In Toribio's suit against Satin, Silk & Swimwear for employment discrimination under the Civil Rights Act of 1964, the store has

b. a bonafide occupational qualification defense. a. no defense. b. a bonafide occupational qualification defense. c. a business necessity defense. d. an affirmative action defense.

Boni, the owner of Café Rico, knows about, but does not take any action to prevent, the sexual harassment of employees. Boni and the café may be liable for such harassment by

b. a customer or a co-worker. a. an employee's previous employer. b. a customer or a co-worker. c. an employee's spouse or other close relative. d. none of the choices.

Mouth & Gums, Inc. (CSI), engages in deceptive advertising when it markets its product Oral Rinse as able to kill germs over long periods of time. In an action against Mouth & Gums, the firm is ordered to stop its false advertising of Oral Rinse and other products. This is a. counter-advertising b. a multiple product order c. a "cooling-off" law d. a validation notice

b. a multiple product order

Alf rents an apartment. The lease does not specify how long it will last, but it does specify that Alf must pay rent every month. Alf's tenancy is

b. a periodic tenancy. a. a fixed-term tenancy. b. a periodic tenancy. c. a tenancy at will. d. not a tenancy.

In the ordinary course of business, Loan2Buy Corporation offers credit to Mai and other consumers and reports on the loans to credit agencies. To save time and money, Loan2Buy generally does not correct or update its reported information. This is most likely to result in a. a levy of a nominal fine b. an assessment of damages c. an order of rescission of the loan contracts d. no sanctions

b. an assessment of damages

Region Construction Company has a right to drive its trucks across Staple Business, Inc.'s property, which is adjacent to Region's office. This right is

b. an easement. a. a license. b. an easement. c. a profit. d. the power of eminent domain.

Febo is an employee of Guitar & Drum Company. Guitar & Drum's employee manual states that workers, such as Febo, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is

b. an exception based on contract theory. a. an example of the doctrine. b. an exception based on contract theory. c. an exception based on public policy. d. an exception based on tort theory.

Seiko works for Tall-Tales Publishing, Inc. The basis for Seiko's contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for her loss of income on retirement is her

b. annual wage base. a. seniority at TallTales. b. annual wage base. c. special job skills. d. county of residence.

Neville, a member of a protected class, applies for a job with Origami Paper Products Corporation, but fails the company's employment test and is not hired. Neville believes that the test has an unintentionally discriminatory effect. If so, this is

b. disparate-impact discrimination. a. reverse discrimination. b. disparate-impact discrimination. c. disparate-treatment discrimination. d. not discrimination.

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to a. conduct negotiations between the competitors b. draft a formal complaint c. issue a cease-and-desist d. permit Spicy Salsa to broadcast similarly deceptive counter-advertising

b. draft a formal complaint

b. draft a formal complaint.

Curtis is an employee of Deep-water Drilling, Inc., covered by federal overtime provisions, which apply only after an employee has worked more than

b. forty hours in a week. a. eight hours in a day. b. forty hours in a week. c. 160 hours in a month. d. one year for the same employer.

Flannery is seventeen years old. Under the Fair Labor Standards Act, she cannot work

b. in a hazardous job. a. during school hours. b. in a hazardous job. c. more than eighteen hours per week. d. without a special permit.

b. is Merlin only. a. are Merlin and Nabil. b. is Merlin only. c. is Nabil only. d. none of the choices.

Investment Sales Corporation wants to monitor its employees' electronic communications. Investment Sales's best course of action to avoid liability under laws related to employee monitoring is to notify

b. its employees. a. no one. b. its employees. c. its clients. d. the public generally.

Qiana and Rex take title to a Shakes n' Burgers restaurant in such a way that if one dies, the other will be the sole owner. Qiana and Rex own the restaurant as

b. joint tenants. a. co-owners in fee simple. b. joint tenants. c. tenants by the entirety. d. tenants in common.

Qatar Global Investments is a foreign entity—a firm owned and operated by investors in a foreign country. With respect to a limited liability company in the United States, Qatar Global can

become a member.

Qatar Global Investments is a foreign entity a firm owned and operated by investors in a foreign country. With respect to a limited liability company in the United States, Qatar Global can

become a member. a. act as a creditor, but cannot otherwise invest or participate. b. become a member. c. not become a member, but can participate in its operations. d. not become a member or otherwise participate in its operations.

Kelly, the owner of Llama Farms, a sole proprietorship, wants to obtain additional business capital but to maintain control. This can best be accomplished by

borrowing funds.

Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf in a deal with Quaint Village Mall, Nora takes advantage of an opportunity to make a secret profit on her own behalf. To her firm, Nora is liable for

breach of the duty of loyalty.

Rita believes that Shady Grove Apartments, Inc., her landlord, has violated the law in a way that entitles her to withhold the rent. This remedy is generally associated with

breach of the implied warranty of habitability.

Geoff serves in a representative capacity for Huck. To accomplish the objectives of this relationship, Geoff's authority can be implied

by custom

Refer to Fact Pattern 23-1. Truck & Transfer can avoid liability

by proof that Truck & Transfer was not negligent.

Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC). Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply

c. Lomax must be forty years of age or older. a. Kyla must be forty years of age or younger. b. Kyla must be forty years of age or older. c. Lomax must be forty years of age or older. d. Lomax must have been MVMC's employee for at least forty years.

Solar Power Panels Corporation requires its employees to have a high school diploma, claiming a connection between a high school education and job performance. In a suit against Solar Power under the Civil Rights Act of 1964, this is shown to have a discriminatory effect. Solar Power has

c. a business necessity defense. a. an affirmative action defense. b. a bonafide occupational qualification defense. c. a business necessity defense. d. no defense.

c. a life estate. a. a fee simple absolute. b. a leasehold estate. c. a life estate. d. an easement.

Marco conveys three acres of wetlands to Nature Preserves, Inc., with a deed that warrants only that Marco held good title during his ownership of the property. This deed is

c. a special warranty deed. a. a grant deed. b. a quitclaim deed. c. a special warranty deed. d. a warranty deed.

Dian and Elton buy a duplex in Fargo, North Dakota. On the death of either owner, that owner's interest in the duplex passes to his or her heirs. This is

c. a tenancy in common. a. a joint tenancy. b. a life estate. c. a tenancy in common. d. ownership in fee simple absolute.

Bliss County Zoning Commission demands that Commercial Development, Inc., the private developer of Discount Stores, allocate space for parking and take other measures to manage traffic. This is

c. a zoning restriction. a. a restrictive covenant. b. inverse condemnation. c. a zoning restriction. d. a zoning variance.

Vidal is an employee of Wild Thing Ranch. Vidal learns that Wild Thing is illegally importing endangered animals to sell as pets. He reports his employer's illegal activities but is laid off shortly thereafter and successfully sues Wild Thing for retaliatory discharge. With respect to the employment-at-will doctrine, this is

c. an exception based on public policy. a. an example of the doctrine. b. an exception based on contract theory. c. an exception based on public policy. d. an exception based on tort theory.

Thom, who works as an employee for Upstate Power Corporation, suffers an injury in an accident. Thom will be compensated under state workers' compensation laws

c. only if the injury occurred on the job. a. only if the injury occurred during working hours. b. only if the injury occurred off the job. c. only if the injury occurred on the job. d. whenever and wherever the injury occurred.

Medi-Insurance Company faxes ads to Nancy and other individual consumers without the recipients' permission. This is subject to a. a cease-and-desist order by the Federal Trade Commission b. no sanctions c. possible fines by the Federal Communications Commission d. rescission on the order of the Federal Reserve Board

c. possible fines by the Federal Communications Commission

Medi-Insurance Company faxes ads to Nancy and other individual consumers without the recipients' permission. This is subject to

c. possible fines by the Federal Communications Commission.

The credit department of Discount Retail Stores Inc. calls Emmett at work about an overdue bill. Emmett's employer objects. Discount Retail's credit department continues to call Emmett at work. This is a violation of a. no federal law b. the Fair and Accurate Credit Transactions Act c. the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

c. the Fair Debt Collection Practices Act

c. the Fair Debt Collection Practices Act.

Debt & Loan Collection Agency calls Ethel several times a day, and sometimes in the middle of the night, about an overdue bill that a Furniture4U store turned over to Debt & Loan for collection. This is a violation of a. no federal law b. the Fair and Accurate Credit Transactions Act c. the fair Debt Collection Practices Act d. the Truth-in-Lending Act

c. the Fair Debt Collections Practices Act

Blayne is an employee of Chemical Refinery, Inc. Blayne is threatened with a discharge when he refuses a transfer to a Chemical Refinery department in which several employees suffered serious injuries from exposure to hazardous chemicals. Blayne may be entitled to protection from discharge under

c. the Occupational Safety and Health Act. a. no law. b. the Family and Medical Leave Act. c. the Occupational Safety and Health Act. d. the state workers' compensation act.

Tax Accounting, LLC, is a member-managed limited liability company. If the law in Tax Accounting's state is like the law in most states, unless the members have agreed otherwise, voting rights are apportioned according to

capital contributions.

Gerald files a petition in bankruptcy. An automatic stay will apply to actions by creditors seeking to collect Gerald's debts comprised of

car payments

Energy Resources, Inc., operates an oil refinery near Forest River, which flows into Grove Lake. Discharging oil from the refinery into the river can result in an assessment of

cleanup costs and damages

ChemoCorp, Inc., makes and sells pesticides. If a substance is identified as harmful and the harm is imminent, the Environmental Protection Agency, among other things, can

conduct an inspection of ChemoCorp's plant.

Nero and Olav each buy certain quantities of oil to sell to Petro Refinery, and agree to share storage costs until Petro can take delivery. The oil is commingled so that Nero's oil cannot be distinguished from Olav's. This is

confusion.

Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is

confusion.

Clancy sells shares in Deepwater Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Eton, but gives him the key to a safety-deposit box in First State Bank in which the stock certificates are locked. Presenting the key is

constructive delivery.

Ester sells stock in Fast Food Franchise Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is

constructive delivery.

Commercial Credit & Finance is a limited partnership. Derry, Eleni, and Frey are the general partners. Derry dies. The partnership can

continue only if Eleni and Frey consent. a. continue only after a distribution of its assets. b. continue only as a general partnership. c. continue only if Eleni and Frey consent. d. not continue because Derry's death dissolves the firm.

Anna obtains a business liability insurance policy for her Brew & Bagels Coffee Shop from ChoiceFirst Insurance Company. When an event occurs that gives rise to a claim, each party has a duty to

cooperate in an investigation to determine the facts.

Spicy Hot Dog Vendors, Inc., grants its agent Teona an exclusive territory in which to sell Spicy Hot Dog products. Spicy Hot Dog cannot compete with Teona in that territory under the principal's duty of

cooporation

Stefano transfers copyrighted music recordings, without the copyright owners' authorization, to his friends. This is

Regulations governing air pollution cover mobile and stationary sources. Those who may be subject to penalties for violations of the Clean Air Act include

corporate officers who knowingly violate the act

Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely be considered acting outside the scope of her employment if she

crashed into a car at the airport while off duty

Dorothy files a petition for bankruptcy in bankruptcy for relief through an individual's repayment plan. If she is granted a discharge, debts that will most likely be discharged include

credit-card debt incurred more than one year before filing

Dorothy files a petition for bankruptcy in bankruptcy for relief through an individual's repayment plan. If she is granted a discharge, debts that will most likely be discharged include

credit-card debt incurred more than one year before filing.

LaDonna signs a one-year lease with Mae to occupy an apartment near the University of Iowa. LaDonna needs the apartment for two semesters only and may have to sublet it for the rest of the term. LaDonna's tenancy is

d. a fixed-term tenancy. a. a periodic tenancy. b. a tenancy at will. c. a tenancy at sufferance. d. a fixed-term tenancy.

Mix-It Concrete Company has the right to enter Nim's land and remove the rock from Nim's quarry. This is

d. a profit. a. the power of eminent domain. b. a license. c. an easement. d. a profit.

Valley View Construction Corporation wants to obtain a zoning variance for a part of its property. The variance must not

d. alter the essential character of the property. a. compromise the campaign promises of the zoning board members b. include a burden that has a connection to the property. c. result in a profit for its proponent. d. alter the essential character of the property.

Lena offers Miguel a job, representing falsely that it will be long term. In reliance, Miguel takes the job but is laid off shortly thereafter and successfully sues Lena for fraud. With respect to the employment-at-will doctrine, this is

d. an exception based on tort theory. a. an example of the doctrine. b. an exception based on contract theory. c. an exception based on public policy. d. an exception based on tort theory.

Lisa brings a successful lawsuit against her employer Metal Mold & Die Corporation for unlawful discrimination. Lisa may be awarded

d. back pay, retroactive promotions, and damages. a. back pay, but not retroactive promotions. b. retroactive promotions, but not back pay. c. damages, but not back pay. d. back pay, retroactive promotions, and damages.

Data & Data Accountants, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly prohibits Data & Data from subjecting its employees to

d. lie-detector tests. a. job-skills tests. b. monitoring of business communications. c. drug tests. d. lie-detector tests.

Slow-Brew Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the World!' " The Federal Trade Commission would consider this ad to be a. false and misleading b. impermissibly vague and general c. a deceptive half-truth d. none of the choices

d. none of the choices

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Commission is most likely to issue a. a cease-and-desist order b. a counter-advertising order c. a multiple product order d. none of the choice

d. none of the choices

d. none of the choices.

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Commission is most likely to issue

d. none of the choices.

Petro Oil Company wants to conduct genetic testing of its workers to identify those who might develop significant health problems in the future. Under federal law, Petro may use genetic information to

d. none of the choices. a. make decisions about hiring or firing. b. make decision about job placement or promotion. c. deny group health-care coverage or charge a higher premium. d. none of the choices.

Jasmine receives an unsolicited credit card in the mail and tosses it on her desk. Without Jasmine's permission, her roommate Ilene uses the card to buy a new tablet for $500. Jasmine is a. liable for $500 b. liable for $250 c. liable for $50 d. not liable for any amount

d. not liable for any amount

Jasmine receives an unsolicited credit card in the mail and tosses it on her desk. Without Jasmine's permission, her roommate Ilene uses the card to buy a new tablet for $500. Jasmine is

d. not liable for any amount.

Sara believes that she was rejected for a position at Trek n' Travel Agency on the basis of her race. Sara files a suit against Trek n' Travel under the Civil Rights Act of 1964. To establish a prima facie case of employment discrimination, Sara must show all of the following except that

d. other persons of her race hold similar positions with other similar employers. a. she is a member of a protected class. b. she applied and was qualified for the job in question. c. she was rejected for a position by Trek n' Travel. d. other persons of her race hold similar positions with other similar employers.

Steel Production Industries, Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Steel Production must do all of the following except

d. pay employees higher wages for working in more dangerous areas. a. keep occupational injury and illness records for each employee. b. report any work-related diseases. c. report any employee death due to a work-related incident within eight hours. d. pay employees higher wages for working in more dangerous areas.

Ruta is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee. The owner announces that some employees will be discharged. Ruta tells Tim that for sexual favors she will give him an excellent performance review and recommend a raise. This is

d. quid pro quo harassment. a. harassment on the basis of sexual orientation. b. hostile-environment harassment. c. not harassment. d. quid pro quo harassment.

. QuikPay Inc. extends credit to consumers. QuikPay is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

d. race.

Grid Tool Company makes and sells tools. One of the tools is believed to be hazardous. The appropriate government agency may require Grid to a. export the tool and sell it only abroad b. increase the price to cover the cost of any injuries or damage c. reduce the price to indicate the hazard to consumers d. remove the tool from the market

d. remove the tool from the market

Grid Tool Company makes and sells tools. One of the tools is believed to be hazardous. The appropriate government agency may require Grid to

d. remove the tool from the market.

Insurance Sales Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is

d. reverse discrimination. a. disparate-impact discrimination. b. gender discrimination. c. not discrimination. d. reverse discrimination.

d. seniority system. a. practices. b. procedures. c. tests. d. seniority system.

Iago believes that he is a victim of a form of employment discrimination that falls under the Civil Rights Act of 1964. Compliance with this statute is monitored by

d. the Equal Employment Opportunities Commission. a. employees and job applicants, not an administrative agency. b. employers and businesses, not an administrative agency. c. the courts and Congress, not an administrative agency. d. the Equal Employment Opportunities Commission.

Nature's Food Market sells groceries. Metro Snacks & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is a. nature's Food Market and Metro Snacks & Druge STore b. Metro Snacks & Drug Store only c. the Federal Trade Commission d. The Food and Drug Administration

d. the Food and Drug Administration

Nature's Food Market sells groceries. Metro Snacks & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is

d. the Food and Drug Administration.

Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances—stove, refrigerator, dishwasher, microwave, and toasteroven—for $3,999. This transaction is subject to a. no federal law b. the Fair Credit Reporting Act c. the Telecommunications Act d. the Truth-in-Lending Act

d. the Truth-in-Lending Act

Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to a. no federal law b. the Consumer Leasing Act c. the Consumer Product Safety Act d. the Truth-in-Lending Act

d. the Truth-in-Lending Act

d. the Truth-in-Lending Act.

Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to

d. the Truth-in-Lending Act.

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to a. the car loan only b. the home repair loan only c. the retail installment sale only d. the car loan, the home repair loan, and the retail installment sale

d. the car loan, the home repair loan, and the retail installment sale

d. the car loan, the home repair loan, and the retail installment sale.

Uri and Veda each own one-half of Wind Power, an alternative energy products company, as a tenant in common. Uri sells his interest to Xavier, who now owns

d. the firm with Veda as tenants in common. a. no interest in the firm. b. the firm in fee simple. c. the firm with Veda as joint tenants. d. the firm with Veda as tenants in common.

Buck owns five acres of land in California. On the land Buck has a house and a tool-shed. There are ten large maple trees around the house. The real property includes

d. the land, the house, the tool-shed, and the trees. a. the land only. b. the land and the house only. c. the land, the house, and the tool-shed, but not the trees. d. the land, the house, the tool-shed, and the trees.

Lucas owns Muddy Flats Ranch in New Mexico. The exterior boundaries of the land extend

d. to the center of the earth and up to the farthest reaches of the atmosphere. a. 100 feet into the earth and 100 feet into the atmosphere. b. one mile into the earth and one mile into the atmosphere. c. to infinity and beyond. d. to the center of the earth and up to the farthest reaches of the atmosphere.

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are a. prohibited b. required c. strictly voluntary d. warranted by the nature of the food

d. warranted by the nature of the food

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are

d. warranted by the nature of the food.

Piku files an employment discrimination suit against Quotient Accounting, Inc., under Title VII, based on its discharge of Piku. In these circumstances, possible relief under Title VII includes

damages or job reinstatement.

Research Statistics Corporation uses a merit system to pay its employees according to their job performance. Suki, a female, and Troy, a male, are Research employees with comparable jobs. Due to superior performance, Suki is paid more than Troy. This is

not discrimination.

Rona and Stiv do business as Treasure Island Traders. In acting on the firm's behalf in a deal with Unlimited Potential, Inc., Rona makes an honest error in overestimating the profit. To her firm, Rona is

not liable.

Lumber Mill Inc. is a private employer with more than twenty employees. Its employment practices do not indicate a past pattern of discrimination. It is located in Metro City, which has recently seen an increase in the number of its citizens who are members of protected classes. Under the Civil Rights Act of 1964, Lumber Mill is

not required to implement an affirmative action policy

Dina asks Edie to co-sign a credit application so that she can borrow money and buy a piano from First Chair, a musical instruments and supplies seller. If, after the loan agreement is signed, Dina agrees to a higher rate of interest without telling Edie, then Edie is

discharged from the agreement

disparate-impact discrimination

Lew, a member of a protected class, applies for a job with Mit-E Construction Company, but fails Mit-E's employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is

disparate-impact discrimination.

Olly applies for a job with Petro Company. Petro does not hire Olly because of his ethnicity, or national origin. This is

disparate-treatment discrimination.

Craig, Donna, and Eve do business as FasTrak Career Consultants. Eve's relationship to FasTrak ends, but the firm continues to do business. This is

dissociation.

Gizelle, Haya, and Ivy do business as Janitorial Services, Limited Partnership. After Gizelle's relationship to the firm ends, Haya and Ivy agree not to continue the business. This is

dissolution. a. dissociation. b. dissolution. c. gross negligence. d. simple misconduct.

divided equally among the members. a. distributed according to the members' proportionate shares of ownership in the firm. b. divided equally among the members. c. forfeited to the state. d. reinvested in the business until the dispute is resolved.

The Environmental Protection Agency (EPA) has the authority to regulate "any air pollutant." In issuing standards for the discharge of soot and other pollutants, the EPA

does not have to take economic costs into account.

Fact Pattern 17-1 Nadya and Owen work at Purified Water Company. Nadya is a sales representative who works with Purified's customers, including restaurants, grocery stores, and other businesses, as well as individual consumers. Purified closely supervises all of its sales reps, and dictates their schedules. Owen is an engineer who works in Purified's water treatment plant. Refer to Fact Pattern 17-1. With respect to third parties, Owen is Purified's

employee and agent

Nadya and Owen work at Purified Water Company. Nadya is a sales representative who works with Purified's customers, including restaurants, grocery stores, and other businesses, as well as individual consumers. Purified closely supervises all of its sales reps, and dictates their schedules. Owen is an engineer who works in Purified's water treatment plant. Refer to Fact Pattern 17-1. With respect to third parties, Nadya is Purified's

employee and agent

Rafe is interested in buying a franchise from Sportz Rulez Company. In this transaction, the Federal Trade Commission's Franchise Rule

enables Rafe to weigh the deal's risks and benefits.

Business Enterprise Company agrees to sell a commercial office building and parking garage to City Investments, Inc., which assigns the rights to the realty to Downtown Properties, LLC. Downtown Properties does not yet exist, but once it is created and comes into existence, the contract on novation will most likely be

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

Nancy joins with other creditors to force Odette, a debtor, into bankruptcy. One of the goals of bankruptcy law with respect to creditors is to

ensure equitable treatment of creditors who are competing for a debtor's assets

Location! Realty LLC is a limited liability company. Like other LLCs, for federal jurisdictional purposes, Location! Realty is most likely a citizen of

every state in which its members are citizens. a. all states. b. every state in which its members are citizens. c. no state. d. only the state in which it was formed.

Pat enters into an agreement with Ole! Food, Inc., to operate a franchise in Region City. Later, Ole! grants franchises to others within the city, Pat files a suit to close them. This suit will likely

fail if Ole! did not give Pat exclusive rights to Region City.

14. A surety is entitled to receive from the debtor the actual amount of the debt paid to the creditor on behalf of the suretyship arrangement but not other expenses incurred.

false

16. A homestead exemption allows a debtor to subtract the value of the family home from the amount of a debt.

false

19. Rulings from bankruptcy courts are final—they cannot be appealed.

false

21. The means test forces more people to file for Chapter 7 bankruptcy rather than gave their debts discharged under Chapter 13

false

22. An involuntary bankruptcy occurs when the debtor forces his or her creditors into bankruptcy proceedings.

false

23. An involuntary bankruptcy occurs when a debtor's creditors are forced to accept a discharge of the debtor's debts.

false

24. An individual debtor cannot exempt or exclude any property from the bankruptcy.

false

26. In the distribution of the debtor's estate, unsecured creditors take priority over secured creditors.

false

3. If a creditor wins a judgment against a debtor and the debtor will not or cannot pay the amount due, the dispute is at an end.

false

31. In a Chapter 11 case, the court cannot confirm a reorganization plan over the objections of a class of creditors.

false

34. In a repayment plan case, the plan must provide for payment of all obligations in full.

false

4. A writ of execution applies to a debtor's nonexempt real or personal property wherever located.

false

6. There is no limit to the amount that can be taken from a debtor's weekly take-home pay through garnishment.

false

7. Only a few types of property—a debtor's wages or bank account, for example—can be garnished.

false

8. A fixed-rate mortgage is a standard mortgage with a rate of interest that changes periodically.

false

A person must have contractual capacity to be an agent.

false

A principal's ratification of an agent's unauthorized act must be express.

false

A surety can be required to pay an obligation only after the principal debtor defaults and usually only after the creditor has made an attempt to collect from the debtor.

false

A surety is entitled to receive from the debtor the actual amount of the debt paid to the creditor on behalf of the suretyship arrangement but not other expenses incurred.

false

A writ of execution applies to a debtor's nonexempt real or personal property wherever located.

false

An individual debtor cannot exempt or exclude any property from the bankruptcy.

false

For an agent's implied authority to be effective, a principal must confirm it in writing.

false

If a debtor does not pay a mechanic's lien, the debtor's property can be sold to satisfy the debt.

false

If a principal is undisclosed, the agent may be liable to the principal for a third party's nonperformance of a contract.

false

Implied authority is authority declared in clear, direct, definite terms.

false

In a Chapter 11 case, the court cannot confirm a reorganization plan over the objections of a class of creditors.

false

Independent contractors have no control over the details of their work performance.

false

Only a few types of property—a debtor's wages or bank account, for example—can be garnished.

false

Personal property that is most often exempt from satisfaction of judgment debts does not include equipment that the debtor uses in a business or trade.

false

Rulings from bankruptcy courts are final—they cannot be appealed.

false

The lender does not have to strictly comply with the state statute governing foreclosure—substantial compliance is sufficient.

false

The means test forces more people to file for Chapter 7 bankruptcy rather than gave their debts discharged under Chapter 13.

false

The relationship between a principal and an independent contractor cannot involve an agency relationship.

false

Through agents, a principal can conduct only one business operation at a time.

false

Vicarious liability is direct liability.

false

Agency relationships only exist between employers and employees.

false?

If a principal is disclosed, the agent may be liable to a third party for the principal's nonperformance of a contract.

false?

Alexandra manages a Beans Bistro for Coffee Shops, Inc. To manage the business, Alexandra's authority can be inferred

from the position Alexandra occupies

CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register "calltalk" as its second-level domain. Later, CallTalk's less successful competitor, CellTalk Company, chooses to use and register "caltalk" (an intentional misspelling of "calltalk") as its second-level domain. Still later, Call&Talk, Inc., uses the domain name "callltalk" (also a deliberate misspelling of "calltalk") without CallTalk's authorization, to sell pornographic phone conversations. Refer to Fact Pattern 15-2. By using a similar domain name to CallTalk's, CellTalk is most likely attempting to profit from its competitor's

goodwill

Restful Inn Motel Corporation wants to terminate its franchise arrangement with Steve's Cabins. Their contract does not provide for notice of termination or set a time for winding up the business. This means that to wind up, Steve's

has a reasonable time, with notice.

Star Resorts Corporation wants to terminate its franchise arrangement with Tony. Their contract does not provide for notice of termination or set a time for winding up the business. This means that to wind up, Tony

has a reasonable time, with notice.

Brad is a general partner, and Carlos and Dora are limited partners, in Eastside Physicians, a medical clinic and limited partnership. Carlos's assignment of his interest in Eastside to Good Credit Corporation results in

nothing with respect to Eastside's existence. a. nothing with respect to Eastside's existence. b. the maturity of Eastside's debts. c. the suspension of Eastside's business. d. the termination of Eastside's legal existence.

As the beneficiary of a business trust, Kevin's liability for trust debts and obligations is

nothing.

Rick and Sandy are limited partners in Total Profit Enterprises, a limited partnership. A limited partner has no right to

participate in the firm's management.

Nikki and Orlando are limited partners in Port City Exports, a limited partnership. To avoid personal liability for partnership obligations, they must not

participate in the firm's management. a. acquire an interest in the firm. b. contribute property to the firm. c. engage in activities independent of the firm's business. d. participate in the firm's management.

Ethan is seventeen years old. Under the Fair Labor Standards Act, Ethan cannot work

in a hazardous occupation.

Guy and Hanna do business as G-H Associates. If G-H is a partnership, it is governed by the Uniform Partnership Act

in the absence of an express agreement.

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred

in the course and scope of Mirena's employment

Mineral Mining Corporation is a U.S. employer. Mineral, and other U.S. employers, must perform I-9 verifications for new hires working under the employer's direct supervision

including contractors and day workers.

Great Looks Clothing Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices. Hot Trends Inc. sends e-mail ads to any e-mail address that Hot Trends can find on the Web or otherwise generate. Ilene sends e-mail notes to her friends, relatives, and co-workers, discussing personal issues and recommending products or services that she likes. Refer to Fact Pattern 15-1. Great Looks and Hot Trends are subject to the laws of the states in which they are located and do business. Many states

prohibit false and deceptive e-mailing practices

Faye is interested in buying a franchise from Gas n' Snax Stores Inc. This transaction, like other franchise deals, is regulated to protect

prospective franchisees from dishonest franchisors.

Buena files a suit against Credit Services Corporation under the Civil Rights Act of 1964, alleging employment discrimination on the basis of gender on a disparate-impact theory. To succeed, Buena must show that Credit Services hires fewer women than the per¬centage of

qualified women in the local labor market

Riki files an employment, gender-based discrimination suit against Superior Corporation under Title VII, on a disparate-impact theory. To succeed, Riki must show that Superior hires fewer women than the percentage of

qualified women in the local labor market.

Ruta is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee. The owner announces that some em¬ployees will be discharged. Ruta tells Tim that for sexual favors she will give him an excellent performance review and recommend a raise. This is

quid pro quo harassment

Rona is Stu's administrative assistant and both work for TriCounty Labor Inc. Stu tells Rona that for sexual favors, he will give her an excellent performance review and recommend a raise. This is

quid pro quo harassment.

QuikPay Inc. extends credit to consumers. QuikPay is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on a. intelligence b. education c. income d. race

race

Southwestern Foods Corporation operates a packaging plant near the border between the United States and Mexico. Due to the location, it would be easier for Southwestern to employ noncitizens. It is legal for a U.S. employer to

recruit persons not authorized to work in the United States.

Kelvin is an agent for Lookout Mountain Accountants, Inc. On Lookout's behalf and at its request, Kelvin pays Nerdlinger for custom software designed for the management of Lookout's services. Kelvin's right to obtain the amount of those payments from Lookout arises under the principal's duty of

reimbursement

Elsa participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Elsa's employer demotes her. Elsa can file a

retaliation claim.

Pricey Auto Corporation gives notice to Quint that Pricey is terminating their franchise arrangement. Winding up the business requires

returning Pricey's property.

reverse discrimination.

United Industrial Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is

reverse discrimination.

In contemplation of death during risky surgery, Donnelly, a guitarist, gives his guitars to Cathy. The surgery is successful, and Donnelly does not die. The gift of the guitars is

revoked because it was a gift causa mortis.

Quince owns a used-car lot where Ray works as a salesperson. Quince tells Ray not to make any warranties for the cars. To make a sale to Sylvia, however, Ray adds a 50,000-mile warranty. Later, Sylvia sues Quince for breach of warranty. Quince's right to hold Ray liable for any damages he has to pay is the right of

indemnification

Donald applies for a life insurance policy with Equity Insurance Company through Fletch, an agent who works for Equity. Donald pays the initial premium. Fletch writes a binder, which

indicates that a policy is pending and states its essential terms.

Helene, a disabled person, applies for a job at Industrial Engineering Applications Inc. for which she is well quali¬fied, but for which she is rejected. Industrial Engineering continues to seek applicants and eventually fills the posi¬tion with a person who is not disabled. Helene is most likely to succeed in a suit against Industrial Engineering for discrimination under the Americans with Disabilities Act of 1990 if she can show that

she was not hired solely because of her disabil¬ity

Eminent Properties, Inc., wants to fill its wetlands to build Fieldview Homes, a residential subdivision. The Clean Water Act prohibits the filling of wetlands unless

the Army Corps of Engineers issues a permit.

Iago believes that he is a victim of a form of employment discrimination that falls under the Civil Rights Act of 1964. Compliance with this statute is monitored by

the Equal Employment Opportunities Commission

Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with this statute is monitored by

the Equal Employment Opportunity Commission.

Riley is interested in buying a franchise from Soft Shoe Corporation. Soft Shoe must disclose material facts that Riley needs to make an informed decision concerning this purchase, according to

the Federal Trade Commission's Franchise Rule.

Unity Production Company is suspected of employing illegal immigrants. The government conducts random compliance audits and other enforcement measures against those who might violate immigration laws through

the ICE.

Metro City operates its own municipal public drinking water system. With regard to pollutants, this system is primarily subject to

the Safe Drinking Water Act.

Over a forty-year period, Ewa worked in a variety of jobs. She was also occasionally unemployed, briefly hospitalized, and suffered a temporary disability. She retired last year. The key law on all of these subjects is

the Social Security Act.

Brenda, a salesperson at a Cabinets & Countertops store, tells D'Antoni, a customer, "Buy your cabinets here, and I'll install them for half of what the store would charge." D'Antoni buys the cabinets, which Brenda installs for half the store's price. Brenda keeps the money. Brenda has breached

the agents duty of loyalty

Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached

the agents duty of loyalty

IT Apps, LLC, is a limited liability company. Among its members, a dispute arises that the operating agreement does not cover. The dispute is governed by

the applicable state LLC statute.

Adrian applies for, and obtains, casualty insurance coverage from Business Insurance Company for his business, Country Club, Inc. The effective date of the policy is the date

the application specifies as the effective date.

Luke owns a farm near Marshalltown, Iowa, with stands of trees serving as windbreaks. Luke grows corn on the property. When Luke sells the farm to Nina, if the contract does not specify otherwise, the sale includes

the crops and the trees.

Xavier owns a duplex that he leases to Yvon and Zack. Xavier may sell

the duplex at any time.

Hu, Ivan, and Juana apply to work for King Meatpacking Company. These individuals' identities and eligibility to work must be verified by

the employer.

Moby leases from National Theater Corporation a theater in which to stage a series of concerts. Ollie buys a ticket to the series. What distinguishes Moby, a tenant, from Ollie, a licensee, is

the exclusivity of possession.

Carl sells Direct Marketing Enterprises, a sole proprietorship, to Erv. This is a transfer of

the ownership of the business.

Roy leaves his Honda sport utility vehicle at Sam's Auto Service for an oil change. This is a bailment for

the parties' mutual benefit.

Little City Company operates a public water supply system. Little City must send to every household that it supplies with water an annual statement describing

the source of the water, and any contaminants and health concerns.

Dunn and Etta are limited partners in Fancee Fashion Stores, a limited partnership. In terms of the firm's books, Dunn and Etta are entitled to

total access.

Bud approves on behalf of Cody—but without authorization—a contract with Dick to build a new silo. Cody does not ratify the contract. Later, Dick tries to enforce the deal. This attempt will be

totally unsuccessful

The clerk of a bankruptcy court must provide consumer-debtors with information on the types of services available from credit counseling agencies.

true

When a debtor has no assets, creditors are notified of the debtor's petition for bankruptcy but are instructed not to file a claim.

true

When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right that the creditor had against the debtor.

true

With a mechanic's lien, real estate becomes security for a debt.

true

with a machanic's lien, real estate becomes security for a debt

true

Employment laws apply only to the employer-employee relationship.

true?

Loni, Michel, and Nita are investors in Oceanic Exploration, a business trust. A business trust is managed by its

trustees.

Milos files a petition in bankruptcy. His dischargeable debts include

unsecured credit-card debt

Discount Retail Corporation's social media policy directs its employees to "avoid negative public comments about your company." Elin is an employee of Discount Retail. When Elin criticizes fellow employees online, Discount Retail fires her. Elin then files a suit against the employer, seeking reinstatement. The court will most likely

uphold Discount Retail's right to terminate Elin

Account numbers on credit-card receipts must be truncated (shortened).

Limited liability company operating agreements typically contain provisions relating to management.

Members of limited liability companies are shielded from personal liability in many situations.

Most employers with fifty or more employees are required to offer health-insurance benefits.

Insurance companies must spend at least 85 percent of all premium dollars from large employers on benefits and quality improvements.

Intentional discrimination by an employer against an employee is known as disparate-treatment discrimination.

If the circumstances indicate bad faith, a court can dismiss a debtors' Chapter 13 petition.

true

An employee may take up to twenty-six weeks of military caregiver leave within a twelve-month period to care for a family member with a serious injury or illness incurred as a result of military duty.

An employer can voluntarily pay overtime to ineligible employees.

An employer generally is required to notify an employee when an absence will be counted as family or medical leave under federal law.

It is presumed that a co-tenancy is a tenancy in common unless there is specific language indicating the intent to establish a joint tenancy.

Any federal, state, or local affirmative action program that uses racial or ethnic classifications as the basis for making decisions is subject to strict scrutiny by the courts.

To adjust debt and institute a repayment plan, Delton, a family fisherman in the Gulf of Mexico, may file a petition in bankruptcy for relief under the Bankruptcy Code's Chapter

Certain employees are exempt from federal overtime provisions.

Certain employers must provide advance notice of a layoff to the affected workers or their representative (if the workers are members of a labor union).

Eminent domain is the condemnation power of government to take land for public use.

Employers have a general duty to keep workplaces safe.

Federal wage-hour laws cover all employers engaged in interstate commerce.

Generally, under the employment-at-will doctrine, an employee may quit a job at any time for any reason.

Industrial Solvents, Inc., averages $15,000 profit per day before deciding to ignore air pollution standards, after which the average is $50,000. Industrial Solvents is subject to a fine of

50,000 per day

Rolling Transport & Storage Corporation wants to insure its warehouse to obtain the maximum possible recovery for the lowest possible premium. To obtain the maximum recovery under a coinsurance clause, the percentage of the value of the property that should be insured is

80 percent.

Nuisance

A common law doctrine under which persons may be held liable for using their property in a manner that unreasonably interferes with others' rights to use or enjoy their own property.

Toxic Tort

A personal injury caused by exposure to a toxic substance, such as asbestos or hazardous waste. Victims can sue for medical expenses, lost wages, and pain and suffering.

Potentially Responsible Party (PRP)

A potentially liable party under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Any person who generated the hazardous waste, transported the waste, owned or operated the site at the time of disposal, or currently owns or operates he site may be responsible for some or all of the cleanup costs involved.

Charise files a petition in bankruptcy in a liquidation proceeding. If the court administers the means test and concludes that Charise is abusing the bankruptcy process by filing for a liquidation, most likely

Charise will be forced to file for relief through an individual repayment plan

If a job applicant or an employee with a disability, with reasonable accommodation, can perform essential job functions, the employer must make the accommodation.

Environmental Impact Statement (EIS)

A statement required by the National Environmental Policy Act for any major federal action that will significantly affect the quality of the environment. The statement must analyze the action's impact on the environment and explore alternative actions that might be taken.

If a limited liability company (LLC) agreement does not cover a topic, the state LLC statute will govern.

Donatella owns factory machinery and the tools to service it, as well as office furniture, including computers. Emilio owns patents, trademarks that identify the products made under those patents, and stock in the company that sells those products. Personal property includes items owned by

Donatella and Emilio.

Dusty

Eduardo is a debtor. Furniture Mart is Eduardo's employer. Guaranty Credit, Inc., and the government are Eduardo's credi¬tors. For these parties, a petition in bankruptcy for relief through an individual's repayment plan could be filed by

Eduardo only

Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston. Subject to a bailment is

Emily's luggage.

Emylee followed them

If a wage differential is due to any factor other than gender, then it does not violate the Equal Pay Act.

Fong contracts to buy a franchise from Genuine Asian Sushi House Company. In this contract, as in most franchise contracts, the determination of the territory to be served is made by

Genuine Asian Sushi House.

Grace applies for a homeowners' insurance policy on her house with Heroic Insurance Company through Ian, a broker. In this transaction, Ian is

Grace's agent, and not Heroic's agent.

GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to transport fifty large-screen HDTVs from San Diego to Phoenix. En route, a pothole causes the truck to crash, damaging the goods. Liability for the damage most likely rests with

Haul-Way only.

GR8 Vision, Inc., hires Haul-Way Company to transport fifty large-screen HDTVs from GR8's warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The bailee is

Haul-Way.

Ginny obtains a health-insurance policy for her family from Hope Insurance Company. The policy includes an incontestability clause. Under such a clause, after a policy has been in force for a specified period or time, such as two or three years

Hope cannot contest Ginny's statements in the application.

Like Social Security, Medicare is funded by contributions from the employer and the employee.

In a limited partnership, a general partner's dissociation from the firm normally will lead to dissolution unless all partners agree to continue the business.

Lloyd and Milly are employees of NuTech Corporation. They have the same job. Under the Equal Pay Act, NuTech can legitimately pay Lloyd more than Milly on the basis of

Lloyd's greater production or seniority.

Logan borrows Morris's bike to ride over mountain trails. The bike is damaged during the ride. Liable for the cost of repairing the bike is

Logan.

Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC). Lomax believes that he has been discriminated against on the basis of his age. For the Age Dis¬crimination in Employment Act of 1967 to apply

Lomax must be forty years of age or older

Fact Pattern 18-1 Kit, manager of Long-Term Care Company's office in Metro City, decides to replace the office's male employees with females. Nia, an assistant manager transferred from a different Long-Term Care office, refuses to cooperate. Kit retaliates against Nia, who quits. Within a year, the male employees also quit. Refer to Fact Pattern 18-1. Liability for Kit's conduct most likely rests with

Long-Term Care, which should have known, and Kit, who acted.

Longhaul Trucking Company transports radioactive materials. Marla suffers from cancer. To succeed in a strict liability action against Longhaul, Marla must show that her injury was caused by

Longhaul's operation.

Fact Pattern 18-2 Lita replaces Manny in his job at Neighborly Business Corporation (NBC). Refer to Fact Pattern 18-2. To succeed with an age-discrimination claim against CBC, Manny will have to show that

Manny is qualified for his job.

Fact Pattern 18-2 Lita replaces Manny in his job at Neighborly Business Corporation (NBC). Refer to Fact Pattern 18-2. Manny believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply

Manny must be forty years of age or older.

Rhett works at Scarlett's Sandwich Café. After work, in the parking lot, Rhett finds a diamond ring lost by Melanie. Title to the ring is possessed by

Melanie.

Mena applies for a homeowners' insurance policy on her house with Neighbors Insurance Company through Obie, an agent who works for Neighbors. In this transaction, Obie is

Mena's agent, and not Neighbors's agent.

Kyla is a salesperson for Liberty Financial Corporation. Micky is also a Liberty salesperson. Neil is Kyla and Micky's supervisor. Owen is a Liberty customer. Liberty may be liable for sexual harassment to Kyla by

Micky, Neil, or Owen.

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Miklos death or incapacity

Owen takes a Paisley-made pinball machine to Quality Games, Inc., for repair. Lacking certain parts, Quality ships the game to Regal Repair Company. While in Regal's possession, the game is damaged. Quality can recover for the damage from

Regal.

Portia is the beneficiary of a life insurance policy on Quentin's life obtained from Renewall Insurance Company through Stan, an insurance broker. The insured of this policy is

Renewall.

A credit-card company must send monthly bills to cardholders twenty-one days before the due date.

A debt-collection agency is someone who regularly attempts to collect debts on behalf of someone else, usually for a percentage of the amount owed.

Shop n' Pay Convenience Stores, Inc., is a franchisor. Tonya operates a Shop n' Pay franchise. Ulysses is one of Tonya's employees. As a franchisor, if Shop n' Pay controls the day-to-day operations of the business to a significant degree, it may be liable for tortious acts by

Shop n' Pay, Tonya, or Ulysses.

Sid borrows Tony's paint sprayer to paint his house. Uma allows Vic to store his posthole digger in her shed. The party with a right to use the bailed property is

Sid only.

A limited liability partnership may exempt its partners from personal liability for any partnership obligation.

Ruby stores her furniture with Stow-Away, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on

Stow-Away only.

A recording statute allows deeds to be recorded to give notice to the public.

Limited liability companies are entities apart from their owners.

A sale of real estate is a complicated transaction that involves certain formalities that are not required in a sale of goods.

Insurance companies must spend at least 85 percent of all premium dollars from large employers on benefits and quality improvements.

True

It is a violation of federal law to sell a pesticide or herbicide that has a chemical strength different from the concentration declared on the label.

True

It is presumed that a co-tenancy is a tenancy in common unless there is specific language indicating the intent to establish a joint tenancy.

True

Limited liability companies are entities apart from their owners.

True

Members of a limited liability company can stipulate in their operating agreement how voting rights will be apportioned.

True

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

True

Title VII of the Civil Rights Act.

A debt-collection agency is someone who regularly attempts to collect debts on behalf of someone else, usually for a percentage of the amount owed.

True

A fixed-term tenancy is created when property is leased for a specified period of time.

True

A joint stock company is usually treated like a partnership.

True

A joint tenant's sale of his or her interest terminates the joint tenancy.

True

A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.

True

A limited liability company is a citizen of every state of which its members are citizens.

True

A limited liability partnership must be formed in compliance with state statutes.

True

A partner always has the power but he or she may not have the right to dissociate from the partnership.

True

A partner may pursue his or her own interests without automatically violating the partner's fiduciary duties to the partnership and the other partners.

True

A periodic tenancy is created by a lease that does not specify how long it is to last, but does specify that rent is to be paid at certain intervals.

True

A public authority, such as a state's attorney general, can sue to stop a "public" nuisance.

True

A sanction known as counteradvertising requires a company to advertise anew to inform the public about earlier misinformation.

True

Account numbers on credit-card receipts must be truncated (shortened).

True

An agency by estoppel arises when the principal's actions have created the appearance of an agency that does not in fact exist.

True

Generally, each state limits the liability of partners in a limited liability partnership in some way.

True

In a general partnership, the senior partner manages the partnership.

True

Most franchise contracts provide that notice of termination must be given.

True

Solar Power Panels Corporation requires its employees to have a high school diploma, claiming a connection between a high school edu¬ca¬tion and job performance. In a suit against Solar Power under the Civil Rights Act of 1964, this is shown to have a discriminatory effect. Solar Power has

a business necessity defense

Dreem Land Corporation and EZ Investments Company transfer their property to Financial Managers, Inc., which manages the property and distributes the profits to Dreem and EZ. This form of a business organization is

a business trust.

Sheri files a petition for bankruptcy. She must include with the petition

a certificate proving credit-counseling from an approved agency

Jim wishes to appeal a decision of a bankruptcy court. Jim may appeal to

a federal district court

Bess wishes to appeal a decision of a bankruptcy court. Bess may appeal to

a federal district court.

Frank owns GuestHouse Hotel. His ownership rights include the right to sell or give away the property without restriction, as well as the right to commit waste, if he chooses. Frank's ownership interest is

a fee simple absolute

A&B Storage, Inc., signs a six-month lease to occupy a warehouse. This is

a fixed term tenancy

Jamal signs a lease with Kelvin to occupy a house on Leech Lake in Minnesota for the summer. Jamal's tenancy is

a fixed-term tenancy.

Rafe signs a one-year lease with Suki to occupy an apartment in Lawrence, Kansas, near the University of Kansas. Rafe needs the apartment only for two semesters and may have to sublet it for the rest of the term. Rafe's tenancy is

a fixed-term tenancy.

General Packaging Corporation, a U.S. employer, may hire Hilo, a noncitizen, if Hilo is

a lawful permanent resident of the United States.

Sweet Selections, a general partnership, operates as a gift shop. Sweet Selections has ten partners. Jill and Amy each have a 25 percent interest in the partnership. All the other members have a 10 percent interest. With respect to management decisions

a majority of the partners must agree.

Refuse Reuse & Disposal Center operates a recycling plant. Stan and other Refuse Reuse neighbors file a suit, alleging injuries from the plant. To succeed, they must show that the defendant failed to use reasonable care if the suit is based on

a negligence theory

Debris Disposal Center operates a recycling plant. Edwin and other Debris neighbors file a suit, alleging injuries from the plant. To succeed, they must show that Debris failed to use reasonable care if the suit is based on

a negligence theory.

Kelly leases an office from Land & Building Company (LBC) for a four-year term with the rent payable monthly. At the end of the term, Kelly retains possession of the office with LBC's consent and continues to pay monthly rent. This is

a periodic tenancy

Rural Residential Development Company and Suburban Real Estate Corporation form a joint stock company. A joint stock company can be formed for, at the most,

a perpetual existence.

Ronda holds herself out as possessing special accounting skills. As an agent, she must exercise the degree of skill or care expected of

a person having those skills

Wild River Tours Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business. To accomplish this goal, Wild River should file a petition in bankruptcy for relief through

a reorganization

To adjust debt and institute a repayment plan, Bianca—who is not a corpo-ration, a partnership, or a family farmer or fisherman—may file a peti¬tion in bankruptcy for relief through

a repayment plan

ConnectWeb, Inc., an Internet service provider (ISP), supplies information to the Federal Trade Commission concerning possible unfair or deceptive conduct in foreign jurisdictions. For this disclosure, federal law gives ConnectWeb and other ISPs immunity from liability. This is

a safe harbor.

Fay is a member of Garden Groves LLC. Like other members of limited liability companies, Fay's liability for Garden Groves's obligations resembles the liability of

a shareholder of a corporation.

Erin and Dooley, a married couple, borrow $120,000 from Capital & Credit Bank to buy a home. When Erin and Dooley divorce, they are unable to make payments on the mortgage. The market value of the home has declined to less than the balance of the loan. Capital & Credit agrees to a sale of the property for this amount. This is

a short sale

a short sale.

Without creating a separate business organization, Reynold starts up, and assumes the financial risk of, Sole Savers, a new, pre-owned auto sales enterprise. Reynold is

a sole proprietor.

Cal sells "DownSize," a weight-reduction program, from a Web site, in competition with Eat-Less Inc.'s product "Fit 'n Trim." Eat-Less files a suit against Cal, alleging in part that he is a sole proprietor, but his enterprise should be deemed a different form of business. Cal's enterprise should most likely be considered

a sole proprietorship because Cal is a sole proprietor.

Corbin organized, and owns and operates, Corbin's Deep Sea Fishing Tours in the simplest form of business organization. This is

a sole proprietorship.

Jim organized, and owns and operates, Jim's Landscaping Service in the simplest form of business organization. This is

a sole proprietorship.

Wren owns and operates Yoga Center without creating a separate business organization. She receives all the profits from the fees for the classes and the sales of the center's merchandise. Yoga Center is most likely

a sole proprietorship.

Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that warrants only that Opal held good title during her ownership of the property. This deed is

a special warranty deed.

Tropic Breeze Residences, Inc., owns apartment buildings. Suki leases one of Tropic Breeze's apartments. Suki's transfer of her interest in the lease to Vito for a period shorter than the lease term is

a sublease

Oak Grove Residences, Inc., owns apartment buildings. Pedro leases one of Oak Grove's apartments. Pedro's transfer of his interest in the lease to Quito for a period shorter than the lease term is

a sublease.

Ultrahazard Removal & Disposal Corporation transports radioactive materials. Vincent, an Ultrahazard employee, is diagnosed with radiation sickness after exposure to the materials. Vincent's suit against Ultrahazard to recover for the injury is known as

a toxic tort

Shale Oil, Inc., files a petition in bankruptcy for relief through a reorganization and assumes the role of a debtor in possession. In this role, Shale Oil is simi¬lar to

a trustee in a liquidation

Loaf & Biscuit Company operates a commercial dough making and packaging plant—a "major source"—that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use any equipment to reduce its emissions. Under the Clean Air Act, this is most likely

a violation

InfoFree Inc., makes and sells devices and services for the circumvention of encryption software and other technological antipiracy protection. Under the Digital Millennium Copyright Act, this is

a violation of copyright law.

April and other employees of Bodegas & Bistros Inc. (2B) maintain a password-protected social media page to "vent about work." When 2B learns of the page, the company intimidates April into revealing the password, and after reviewing the posts, fires her and the other participants. Most likely, this is

a violation of the Stored Communications Act.

Oak Forest Homes, Inc., includes, on the map of a twenty-lot development, a restriction that limits construction on each lot to one single-family house. Oak Forest files the map in the appropriate public office. In each lot's deed is a reference to the map and a provision that each buyer "and his or her successors, heirs, or assigns" are bound to it. Pablo buys one of the lots and later sells it to Quito. With respect to the restriction, Quito is

a. bound. a. bound. b. not bound, because Quito is not a "successor, heir, or assign." c. not bound, because Quito is not the original buyer of the lot. d. not bound, because of a lack of sufficient notice.

Bay City wants to acquire undeveloped land within the city limits to convert into a public park. Bay City brings a judicial proceeding to obtain title to the land and pay the owner just compensation. This is an exercise of

a. eminent domain. a. eminent domain. b. constructive eviction. c. inverse condemnation. d. zoning power.

Through careless manufacturing practices, Metalworks Company makes and distributes unsafe products that are sold to Nabi and other consumers. This may be subject to sanctions under

a. federal and state law.

Through careless manufacturing practices, Metalworks Company makes and distributes unsafe products that are sold to Nabi and other consumers. This may be subject to sanctions under a. federal and state law b. federal law only c. no law, according to the principles of freedom to contract d. state law only

a. federal and state law/

Back-fill Equipment Corporation currently employs three thousand full time workers. Because business has declined, Back-fill plans to lay off one hundred workers. If Back-fill does not provide advance notice of the layoff, the employer may be subject to

a. fines, employee back-pay awards, attorneys' fees, and more. a. fines, employee back-pay awards, attorneys' fees, and more. b. a cease-and-desist order or other injunction but no economic liability. c. imprisonment but no injunctive or economic sanction. d. no sanctions.

To acquire the ownership of Bart's mountain cabin by adverse possession, Cody must occupy the cabin exclusively, continuously, and peaceably for a specified period of time

a. in an, open, hostile, and adverse manner. a. in an, open, hostile, and adverse manner. b. until Bart files a suit. c. without Bart's knowledge. d. with the state's permission.

Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates a. no federal law b. the Fair and Accurate Credit Transactions Act c.the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

a. no federal law

Lucy takes out a student loan from Midtown Bank. When she fails to make the scheduled payments for six months, Midtown advises her of further action that it will take. This violates a. no federal law b. the Fair and Accurate Credit Transactions Act c. the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

a. no federal law

a. no federal law.

Lucy takes out a student loan from Midtown Bank. When she fails to make the scheduled payments for six months, Midtown advises her of further action that it will take. This violates

a. no federal law.

Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth wishes to terminate his tenancy. Under the common law, he must give his landlord notice of at least

a. one week. a. one week. b. two weeks. c. thirty days. d. sixty days.

Cy, an employee of Dockyard Shipping Corporation, is injured on the job and accepts workers' compensation. Cy can successfully sue Dockyard

a. only if the injury was caused by Dockyard intentionally. a. only if the injury was caused by Dockyard intentionally. b. only if the injury was caused by Dockyard's negligence. c. regardless of Dockyard's fault. d. under no circumstances.

a. qualified women in the local labor market. a. qualified women in the local labor market. b. qualified women in the United States. c. women in Credit Services's state. d. women who apply to Credit Services for work.

Hauser takes temporary family leave from his job at Gelato Confectionery Corporation to care for a new baby. On Hauser's return from the leave, Gelato must

a. restore Hauser to his original position. a. restore Hauser to his original position. b. reimburse Hauser for his expenses while on leave. c. promote Hauser to the status of a key employee. d. do nothing.

Livia takes temporary family leave from her job at Meat-packers Corporation to care for a new baby. On Livia's return from the leave, Meat-packers must

a. restore Livia to her original position. a. restore Livia to her original position. b. reimburse Livia for her expenses while on leave. c. promote Livia to the status of a key employee. d. do nothing.

Conrad and Delilah are employees of Eco-Crop Feed & Seed Corporation. Under the Equal Pay Act of 1963, Eco-Crop can legitimately pay different wages on the basis of

a. seniority. a. seniority. b. job descriptions. c. substantial equality of skill, effort, and responsibility. d. gender.

Helene, a disabled person, applies for a job at Industrial Engineering Applications Inc. for which she is well qualified, but for which she is rejected. Industrial Engineering continues to seek applicants and eventually fills the position with a person who is not disabled. Helene is most likely to succeed in a suit against Industrial Engineering for discrimination under the Americans with Disabilities Act of 1990 if she can show that

a. she was not hired solely because of her disability. a. she was not hired solely because of her disability. b. she can function well with corrective devices or on medication. c. her disability causes her undue hardship. d. she could not perform the job even with reasonable accommodation.

Ridgeline Bank provides Shirley with a mortgage to buy a home. The rate of interest is fixed for three years and then adjusts annually. This is

an adjustable-rate mortgage

Ridgeline Bank provides Shirley with a mortgage to buy a home. The rate of interest is fixed for three years and then adjusts annually. This is

an adjustable-rate mortgage.

Roberta introduces Steve to her friends as "my associate." Steve purports to act as Roberta's agent in several business transactions with those friends. If Roberta is liable for Steve's actions, it will be because their relationship is

an agency by operation of law

Mountain States Distribution Inc. hires Norris to work on Mountain States's shipping dock, accepting deliveries, dispatching trucks, and dealing with customers and other companies' drivers. With respect to Mountain States, Norris is most likely

an agent

Emery is a corporate officer of Frakking Mining Corporation. Emery serves in a representative capacity for Frakking's owners. With respect to binding Frakking Mining to contracts, Emery is

an agent and has the authority

an assessment of damages.

Meadowland Acres, Inc., owns rural property that it leases to various tenants, including Norma. Norma's transfer of her entire interest in the leased property to Odette is

an assignment

Hobby Farms, Inc., owns rural property that it leases to various tenants, including Ira. Ira's transfer of his entire interest in the leased property to a Jason is

an assignment.

Car Wash Company has a right to direct its customers to drive their vehicles across Don's Gas n' Shop property, which is adjacent to Car Wash's facility. This right is

an easement

Region Construction Company has a right to drive its trucks across Staple Business, Inc.'s property, which is adjacent to Region's office. This right is

an easement.

Reynaldo is a delivery driver for Southeast Asian Noodle Company. Reynaldo does exactly what the company tells him. Reynaldo is

an employee

Bram finds a tablet on the counter at Caffe Café. He takes the tablet to a police station. A police officer tells Bram that if the tablet is not claimed by a certain time, Bram can obtain title to it. This is acquiring possession by

an estray statute

Flem is an employee of Glo Goods, Inc. Flem reports to state officials that Glo is illegally shipping unsafe goods to unsuspecting customers. When Glo learns of Flem's report, Glo fires him. He successfully sues Glo for wrongful discharge. With respect to the employment-at-will doctrine, this is

an exception based on public policy.

Miranda delivers her bridesmaid's dress to Nina for alterations. Nina promises that the dress will be ready within five business days. Miranda agrees to pay the charge when she picks up the dress. This is

an express bailment.

One morning, Rochelle agrees to lend her bike to Steve, who promises to return it in the evening. This is

an express bailment.

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has

apparent authority

Roland files a petition in bankruptcy. After all his assets have been sold and the proceeds distributed among his creditors, Roland's remaining debts

are discharged

b. not required to implement an affirmative action policy. a. required to promote diversity in its workplace, but not to implement an affirmative action policy. b. not required to implement an affirmative action policy. c. required to implement an affirmative action policy until the number of its minority employees is proportional to the number of minority individuals in Metro's labor pool. d. required to implement an affirmative action policy that considers race merely as a plus factor.

Elsa participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Elsa's employer demotes her. Elsa can file a

b. retaliation claim. a. harassment complaint. b. retaliation claim. c. constructive discharge claim. d. disparate-impact discrimination claim.

Mythic Games Company employs two hundred workers full-time. If Mythic Games plans to have a mass layoff, it must provide its employees with notice of at least

b. sixty days. a. thirty days. b. sixty days. c. ninety days. d. one year.

Geno's Italiano Ristorantes, Inc., employs three hundred workers at four locations in two states. Under federal law, Geno's must provide each employee, during any twelve month period, family or medical leave of up to twelve

b. weeks. a. days. b. weeks. c. months. d. years.

Jack buys a Kitchens, Inc., franchise, which the franchisor later terminates. In determining whether the termination was proper, a court will generally

balance the rights of both parties.

Philo files a petition in bankruptcy for relief through an individual's repayment plan. He is granted a discharge. Generally, all debts are dischargeable except

claims allowed by the plan

Great Looks Clothing Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices. Hot Trends Inc. sends e-mail ads to any e-mail address that Hot Trends can find on the Web or otherwise generate. Ilene sends e-mail notes to her friends, relatives, and co-workers, discussing personal issues and recommending products or services that she likes. Refer to Fact Pattern 15-1. One of the senders—Great Looks, Hot Trends, or Ilene—is acting outside the bounds of federal law. Federal law prohibits the sending of

commercial e-mail to randomly generated addresses.

The Environmental Protection Agency (EPA) has the authority to regulate "any air pollutant." Fresher Air Group, a private organization that supports cleaner air, can file a suit against the EPA to

compel the EPA to act or prevent it from acting.

Narib and Olivia are limited partners in Physicians Medical Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Narib and Olivia are entitled to

complete access.

Nazih and Ovidia are limited partners in Physicians Medical Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Nazih and Ovidia are entitled to

complete access. a. access in proportion to their participation in management of the firm. b. access to the parts that directly relate to their capital contributions. c. no access. d. complete access.

Speedy Shipping Corporation applies to TransInsurance Company for a fire insurance policy on Speedy's warehouse. On the application, Speedy misrepresents the age of the property to obtain a lower premium. When a fire soon destroys the warehouse, TransInsurance can

deny payment, because of Speedy's fraud in the application.

Bret buys a franchise from Comida Mexicano Ltd. If their agreement is like most franchise agreements, it will specify that Comida can terminate the franchise

for cause only.

Teresa buys a franchise from Urgent Medical Clinics, LLC. If their agreement is like most franchise agreements, it will specify that Urgent Medical can terminate the franchise

for cause.

Vito borrows $110,000 from Watershed 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

Cash is an employee of Drowsy Resort, Inc., covered by federal overtime provisions, which apply only after an employee has worked more than

forty hours in a week.

Paige applies to work for Quibbling & Company. Reece applies for admittance to State University. As part of their applications, Paige and Reece are asked to divulge their social media passwords. Legislation that protects individuals from having to disclose their social media passwords has been enacted in

four states

Edy obtains a homeowners' insurance policy with First Source Insurance Company. First Source can cancel the policy

if Edy fails to pay the premiums.

Stan is liable for the conversion of Tyler's business law textbook

if Tyler proves that the book was in Stan's possession when it disappeared.

Open Pit Excavation Inc. operates a rock quarry next to Robyn's vineyard and winery. Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and unreasonably interferes with Robyn's enjoyment of her property. Refer to Fact Pattern 24-1. The court is most likely to award Robyn damages

if letting the pollution continue is less harmful than stopping it

Fact Pattern 24-1 Open Pit Excavation Inc. operates a rock quarry next to Robyn's vineyard and winery. Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and unreasonably interferes with Robyn's enjoyment of her property. Refer to Fact Pattern 24-1. The court is most likely to award Robyn an injunction

if letting the pollution continue is more harmful than stopping it

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 the use is reasonably necessary.

Mabel and Nicol do business as One World Realty. In acting on the firm's behalf in a deal with Property Acquisition Company, Mabel fails to account for the profit. To her firm, Mabel is

liable for breach of the duty of loyalty.

Bren leases an apartment from Cris for one year. After two months, she sublets the premises for the next six months to Dee, without obtaining Cris's consent. Dee pays the rent for only four months. For the last two months of Dee's six-month term, Bren is

liable for the rent, because Dee defaulted.

Estelle owns and operates a commercial dairy farm with her son Gabe. Estelle applies to obtain an insurance policy from Farm & Ranch Insurance Company to pay $1 million to Gabe on Estelle's death. This is

life insurance.

Nell's debt to Olsen is past due. Olsen obtains an order of garnishment to require Nell's employer Pro Transmission Service, Inc., to pay part of Nell's paycheck to Olsen. The law

limits the amount that can be taken from Nell's take-home pay

Ronaldo's debt to Sofia is past due. Ronaldo obtains a judgment against Sofia to collect the debt, but Sofia will not pay. Ronaldo requests a writ of execution. The property that is seized under the writ of execution must be

located within the court's geographic jurisdiction

Nico is interested in buying a franchise from Oz Inc. For Nico to make an informed decision concerning this purchase, Oz must disclose in writing or online

material facts such as the basis of projected earnings figures.

Inadvertently, Bret leaves his briefcase at Clean 'n Dry Launderers when she stops to pick up her clothes. The briefcase is

mislaid property.

Fruitful Garden Company makes and sells pesticides. For the pesticides to remain on the market, the acceptable level of risk to people of developing cancer from exposure to the products is

one in a million.

In putting together a repayment plan under Chapter 13, a debtor must apply the means test to identify the amount of disposable income that will be available to repay creditors.

true

Mia has a periodic tenancy that requires her to pay rent weekly. Mia wishes to terminate her tenancy. Under the common law, she must give her landlord notice of at least

one week

Hoppy, who works as an employee for Imperial Power Corporation, suffers an injury in an accident. Hoppy will be compensated under state workers' compensation laws

only if the injury occurred on the job.

Bob is the sole proprietor of ClamBooks, an electronic book subscription service. As a sole proprietor, on the business's profits, Bob pays

only personal income taxes.

Bo and Clancy decide to do business as Marketing & Promotion Services. To be a partnership, this association can result from an agreement that is

oral, written, or implied by conduct.

Sara believes that she was rejected for a position at Trek n' Travel Agency on the basis of her race. Sara files a suit against Trek n' Travel under the Civil Rights Act of 1964. To es¬tablish a prima facie case of employment discrimi-nation, Sara must show all of the following except that

other persons of her race hold similar positions with other similar employers

Jeri and Knute are members of Lighthouse Tours LLC, a limited liability company. With respect to Lighthouse Tours's liability, as members, Jeri and Knute are shielded from

personal liability.

Marcy owns land in North Dakota under which deposits of oil shale are discovered. Marcy sells the rights to the shale to Oil Mining & Refining Inc. Once the oil in the rock is removed, it will be considered

personal property.

Rosalee is a partner in Silver Dragon, a partnership consisting of the owners of a Chinese and American restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosalee is

personally liable to the full extent

Tundi is a partner in WooHoo! Amusement, a new partnership. A WooHoo! debt comes due. Tundi is

personally liable to the full extent of the debt.

Liens generally take priority over other claims against the same property.

true

Normally, employees who deal with third parties are not deemed to be agents.

true

Jordan is a surety for Kelly's loan from Lenders Credit Corporation. When the loan comes due, Kelly tries to pay Lenders Credit, but the creditor rejects the payment. Jordan is

released from any obligation on the debt

Energy Market Corporation wants to build a wind power plant on private land, for which a federal permit is required. For this action, an environmental impact statement is

required

Midwest Power Corporation wants to build a nuclear power plant on private land, for which a federal permit is required. For this action, an environmental impact statement is

required.

Leif files a petition in bankruptcy. Among his debts are unpaid taxes, fines owed to the government, student loans owed to Metro University, and support owed to his ex-wife Nadia. Most likely to be discharged are

student loans whose payment would impose undue hardship.

BioChemical Disposal Corporation operates a hazardous waste storage facility. ChemCo Inc. buys BioChemical before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund imposes on ChemCo

strict liability

Leif files a petition in bankruptcy. Among his debts are un¬paid taxes, fines owed to the government, student loans owed to Metro University, and support owed to his ex-wife Nadia. Most likely to be dis¬charged are

student loans whose payment would impose undue hardship

Oil Refining Company's plant emits hazardous air pollutants. Regarding these pollutants, the plant must use

the maximum achievable control technology.

Brad is a general partner, and Carlos and Dora are limited partners, in Eastside Physicians, a medical clinic and limited partnership. Brad's dissociation from the firm results in

Bakri owns a house. In the house, on a tile floor is a throw rug. Most likely to meet the definition of a fixture is

the tile floor.

Gretel, an inventor, has tools in her workshop, including hammers, a table saw, and drills. She has a patent on her most recent invention, a kitchen gas grill. She licenses the patent to Housewares, Inc. Her tangible personal property includes

the tools.

CallTalk Corporation, a smartphone and phone-time seller, chooses to use and register "calltalk" as its second-level domain. Later, CallTalk's less successful competitor, CellTalk Company, chooses to use and register "caltalk" (an intentional misspelling of "calltalk") as its second-level domain. Still later, Call&Talk, Inc., uses the domain name "callltalk" (also a deliberate misspelling of "calltalk") without CallTalk's authorization, to sell pornographic phone conversations. Refer to Fact Pattern 15-2. CallTalk wants to sue Call&Talk for its unauthorized use of the domain name "callltalk." Before bringing the suit, CallTalk has to ask the court for a subpoena to discover

the true identity of the owner of the unauthorized site

An agency agreement can be created by an oral agreement.

true

The agent has the right to be compensated, and to be reimbursed and indemnified.

true

Dana is a member of Earthground Coffee, LLC, a limited liability company. Dana is liable for Earthground's debts

to the extent of her investment in the firm.

Orlando is a limited partner in Port of Call Exports, a limited partnership. By participating in the firm's management, Orlando is liable for its obligations

to the full extent.

18. One goal of bankruptcy law is to ensure equitable treatment of creditors who are competing for a debtor's assets

true

20. The clerk of a bankruptcy court must provide consumer-debtors with information on the types of services available from credit counseling agencies.

true

25. When a debtor has no assets, creditors are notified of the debtor's petition for bankruptcy but are instructed not to file a claim.

true

27. In putting together a repayment plan under Chapter 13, a debtor must apply the means test to identify the amount of disposable income that will be available to repay creditors.

true

28. Certain debtors may not qualify to have all debts discharged in bankruptcy

true

29. A bankruptcy court may deny a discharge based on a debtor's conduct.

true

30. For individual debtors, the plan in a reorganization case must be completed before discharge will be granted.

true

32. If the circumstances indicate bad faith, a court can dismiss a debtors' Chapter 13 petition.

true

33. A reorganization plan is a plan to conserve and administer a business's assets in the hope of an eventual return to successful operation and solvency.

true

35. The procedure for filing a family-farmer bankruptcy plan is very similar to the proce¬dure for filing a repayment plan.

true

5. Liens generally take priority over other claims against the same property.

true

9. Foreclosure is the legal process by which a lender repossesses and auctions off property that has secured a loan.

true

A familiar example of an agent is the owner of a corporation.

true

A power of attorney can permit an agent to transact all business for a principal.

true

A principal does not have the right to control an agent's conduct in matters entrusted to the agent.

true

A principal has a duty to cooperate with the agent and to assist the agent in performing his or he duties.

true

Agency relationships normally are consensual.

true

Fruits & Vegetables, Inc., employs hundreds of seasonal and permanent workers, both skilled and unskilled, in seven states. Under the Immigration Act of 1990, Fruits & Vegetables can hire illegal immigrants

under no circumstances.

OntheWeb Company is an Internet service provider. OntheWeb's customer Phoebe commits copyright infringement. OntheWeb is not liable for Phoebe's activity

unless OntheWeb is aware of Phoebe's violation

The National Park Service hires Outdoor Play, Inc., to replace outdated playground equipment in a handful of national parks. For this action, an environmental impact statement is most likely

unnecessary because the action is not "major"

Truckers Storage Depot, a private company, wants to build a warehouse on private land. For this action, an environmental impact statement is

unnecessary.

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

using the authority of the court

Limon, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing, Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is

valid

Michael contracts with Jill to fix the brakes on her Honda Civic. Jill leaves her car with Michael, but refuses to pay when the work is done. Michael refuses to return the car until she pays. If Michael imposes a lien on Jill's car, it will end

when Michael voluntarily surrenders possession of the car

Sabin and Tyler agree while talking on the phone to form a partnership. Their partnership agreement is legally binding

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