BUS LAW Final Exam

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of parts located at Fuel Connector's place of business, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

A. Fuel Connector's place of business

Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $250. To rescind the contract

A. Guido must return the $250 and Hal must return the bike

Floyd delivers his suit to Goody's Laundry for dry cleaning. This is

A. a bailment and a contract

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is

A. a bailment.

Drainage Equipment, Inc., contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires

A. a mutual agreement to rescind

Owen is a director of Packaging Company. As a director, Owen's rights include a right to

A. access the corporation's books, records, facilities, and other property.

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

A. accession

In Benny v. City Car Dealership, a state supreme court held that a minor was allowed to cancel a contract for the sale Page 4 of a car. Now a trial court in the same state is deciding Dora v. Even Steven Auto Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to

A. allow the minor to cancel the contract.

Ethan is indebted to finance corporation for $100,000. Ethan agrees to pay, and finance corporation agrees to accept, a lessor amount than the creditor originally claimed was owed. This agreement is

A. an accord.

Federico and Gwen are involved in a court proceeding to enforce a right. This is

A. an action

Jane is eighteen years old. Legally, Jane is considered

A. an adult

Energy Company, a U.S. firm, and Fresh Petro, a Dutch firm, enter into a contract that includes an arbitration clause. This clause must provide that the arbitrator will be

A. any specified third party

Mike and Nora incorporate Onion Farm Inc. The number of directors who serve on Onion's board of directors is determined by its

A. articles of incorporation

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would

A. award allow the parties to rescind the contract.

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions necessary to the management of corporate affairs rests with Metro's

A. board of directors

Chase, the owner of Data Master, a sole proprietorship, wants to obtain additional business capital. This opportunity is most likely limited to

A. borrowing funds

Adam is a shareholder of Bay Boats Inc. with preemptive rights. With these rights, he can

A. buy a prorated share of a new issue of stock before other buyers.

In a bailment, strictly liable for any loss or damage to bailed goods are

A. common carriers

Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

A. confiscation.

Abigail and James are wheat farmers with adjacent properties. After Abigail and James harvest their wheat, they combine it by storing the wheat in a single silo. This constitutes

A. confusion

Devon takes temporary family leave from her job at Equipment Sales Company to care for a newborn baby. With respect to Devon's health-care coverage, during the leave, under the Family and Medical Leave Act, Equipment must

A. continue it

In a tweet to Ann, a reporter for the website Blast!, Carl falsely accuses Database Corporation of cheating on its taxes. This is

A. defamation

Flake, a minor, enters into a contract to buy an electric guitar. Flake does not take possession or make payments. With respect to the contract, most courts would hold that this is

A. disaffirmance

Medical Accounts Collection enters into a contract to employ Natalie as a billing manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job. 34. Refer to Fact Pattern 16-1. Natalie's performance most likely

A. discharges Medical from the contract

Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and onto Bella's land. Doyle commits trespass if he

A. does not have Bella's permission to drive on the property

Under the Export Trading Company Act, U.S. banks are

A. encouraged to invest in export trading companies

While sailboarding, Jolie is injured when Kirby carelessly crosses her path. Kirby's insurance company offers Jolie $50,000 to release Kirby from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is

A. enforceable

Kathy is a director of Line Production Inc. As a director, with respect to the corporation, Kathy is expected to subordinate

A. her personal interests to the corporation's welfare

Mike pushes Nora, who falls and breaks her arm. Mike is liable for the injury

A. if he intended to push Nora

To benefit from international trade, individual nations agree to be governed by

A. international law

To become a bailment, a delivery of property from one person to another must

A. involve personal property

The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can

A. issue a formal complaint

Soft Chair Company contracts to deliver one hundred chairs to Stuffy Furnishings Store on May 1. Soft tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy

A. may await performance, sue Soft, or suspend its own performance.

Gargantua Equipment Corporation registers its trademark as provided by federal law. This registration gives notice that the mark belongs exclusively to Gargantua. This notice is

A. nationwide

Pat invents a new type of pillow and obtains a patent for it. Quiet Rest Inc. believes that Pat's invention infringes on the firm's previously patented cushion. After issuance, a challenge to a patent must be brought within

A. nine months

Steel Fabricators, Inc., markets its products to businesses and individual consumers on an interstate basis. Under the commerce clause, Congress has the power to regulate

A. only interstate commercial enterprises.

Marcy owns land in North Dakota under which deposits of oil shale are discovered. Marcy sells the rights to the shale to Oil Mining Inc. Once the oil in the rock is removed and refined, it will be considered

A. personal property

Trade barriers are

A. restrictions on imports

Kay and Lease-Away Inc. enter into a bailment involving the delivery of a moving van to Kay for her use. Unless stated otherwise, the agreement assumes that Kay will

A. return the van

Leigh buys Masters of Business, a copyrighted book. Under the first sale doctrine, Leigh can legally

A. sell the book to another person

Susan enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises, the court will interpret the contract according to

A. the parties' intent at the time they entered into the contract.

The executive branch of the government can exercise control over an administrative agency through

A. the president's veto powers.

Len, an agent for Mind Games LLC, executes an unauthorized contract with NOW Marketing, Inc. The deal is highly advantageous to Mind, and the company ratifies the contract. The contract is

A. valid

Consumers Choice store accepts a shipment of phones from Digital Devices, Inc. Consumers Choice later discovers a hidden defect in the phones, revokes acceptance, and returns the goods via GoBack, Inc. During the return, the goods are lost. The loss is suffered by

B. Digital Devices

Grey buys a bus ticket at a window in the Hound Dog Depot before checking his backpack and boarding a bus to Idaho. Subject to a bailment is

B. Grey's backpack

Kim allows Lee Ann to store her trailer on Kim's property for $50 a month while Lee Ann is out of town on a job for Marketing Inc., her employer. The bailor is

B. Kim

Kyla replaces Lomax in his job at Motor City Corporation. 30. Refer to Fact Pattern 27-2. To succeed with an age-discrimination claim against Motor, Lomax will have to show among other things that

B. Lomax is qualified for his job.

Adam promises his daughter Bev that she can have his restored 1968 Chevy Corvette when he dies. This is

B. a promise to make a gift.

Beth complains about the pervasiveness of sexual harassment toward employees at ChemWorks, Inc., where she is also an employee. As a result, the employer demotes her. Beth can file

B. a retaliation claim

Global Enterprises Inc.'s board of directors can delegate some of its functions to

B. an executive committee

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

B. community property

Alain and Brie sign a contract for the sale of Alain's Patisserie to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Alain must first buy the building from Commercial Properties, Inc., after which Alain and Brie will agree on a price. 63. Refer to Fact Pattern 14-3. The writing that Alain and Brie signed is

B. conditionally integrated

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

B. confusion

Serene City enacts an ordinance that bans the use of "sound amplifying systems" on public streets in order to reduce the noise pollution and its negative effects on downtown businesses, including a local school that was having problems in the classroom because of the noise. Tyler wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck. In Tyler's suit against the city, a court would likely hold the ordinance to be

B. constitutional under the First Amendment as a reasonable, content-neutral restriction.

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

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

. Ken tells Laurie that his Mazda Miata has never been in an accident, when Ken knows that the car has been in two major collisions. This may give rise to an action for fraud, because the statement is one of

B. fact.

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

B. fraudulent misrepresentation

Through attorneys, Ethel, a minor, does business in the manner of an adult to negotiate and buy Front Street Villas, an apartment building. In many states, this contract would be

B. fully enforceable

Sam and Terry agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

B. in writing

Sources of law do not include

B. legal scholars' research

Len is a member of Maintenance Service, a limited liability company. The firm's profits are "passed through" to Len and the other members who pay

B. only personal income taxes

Richard, an engineer, supervises the construction of a new mountainside roadway. When the road collapses in a landslide due to faulty grading, Richard is sued by motorists and hikers injured in the collapse. As a professional engineer, Richard is held to the same standard of care as

B. other engineers

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

B. patent infringement.

The legally protected rights and interests that a person has in anything of established value subject to ownership is

B. property.

After a dinner at Rosario's Diner, Sharon believes that she was overcharged and shoves Tom, the waiter, who is injured when he falls. Tom sues Sharon, alleging that the shove was a battery. Sharon is liable if

B. she intended to shove Tom.

Each court has a certain jurisdiction. Jurisdiction is best defined as

B. the authority to decide a specific dispute

Generally, given the broad language of the Constitution, the line between state and national powers lies is determined by

B. the courts

Analytic Data, Inc., wants to hire Benazir, a noncitizen. A work visa is most likely to be set aside for a noncitizen if

B. there is a shortage of qualified U.S. workers capable of doing the work.

Salsa Caliente, Inc., employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, unpaid family or medical leave of

B. up to twelve weeks

Liz buys a Miata from Nate's Mazda, paying with a check that is later dishonored. With respect to this offer, Liz's title to the car is

B. voidable.

Brad buys a bulldozer from Construction Equipment Corporation, which he leases to Deep Digg, Inc. In this situation, the lessee is

C. Deep Digs, Inc.

Roofing Contractor LLC buys roofing tiles from Shingles Inc. The parties agree that the tiles will be shipped "F.O.B. Shingles' warehouse" to Roofing's location via Tristate Shipping Corporation. The tiles are lost in transit. The loss is suffered by

C. Roofing.

In a suit against Guy, Holly obtains an award of damages. This is

C. a payment of money for a harm suffered

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

C. a principal

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

C. all of the signatories of the Berne Convention.

Wei Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is

C. dumping

Darien, a minor, wants to disaffirm a contract that he entered into with Echo, a cell service company. The law in Darien's state, as in all states, permits minors to disiaffirm

C. executory and fully executed contracts.

T.J. owns a Miata. T.J. can use the car or dispose of it as he wishes. When T.J. dies, the car will descend to his son. T.J. is an owner in

C. fee simple

Charter Company offers to provide an air-conditioned bus to Denny's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Denny accepts the offer by

C. regular mail.

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has

C. rejected the offer and made a counteroffer.

Bonds

C. represent the long-term borrowing of funds by a corporation.

With respect to property, the law defines the right to

C. sell or dispose of it, and prevent trespass onto it

A statute enacted by the Wyoming state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts will weigh the burden that it imposes on interstate commerce against

C. the state's interest in regulating the matter

Brewed Beans Inc. makes and sells "CoCoCafe," a chocolate-flavored coffee. Darkroast Inc. later markets a similar drink under the name "KoKoKafe." This is most likely

C. trademark infringement

Faye owns the land on which Golden Spurs Ranch is situated, plus the ranch house, barn, and other structures permanently attached to the land. Faye's brother Huey owns everything else in the ranch's operation—livestock, feed, and so on. The personal property is owned by

D. Huey only

Ruby stores her furniture with Stow-Away, Inc., under a contract that limits the dollar amount of its liability. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on

D. Stow-Away, subject to the contractual limitation

Interstate Trucking, Inc., keeps a file of I-9 verifications forms, which are required by the Immigration Reform and Control Act. To monitor compliance with the act, random audits and enforcement actions are conducted by

D. U.S. Immigration and Customs Enforcement.

Smart Minds Inc. owns a brain-computer interface that enables physicians to diagnose and treat some diseases quickly and accurately. Federal copyright protection extends to

D. all of the choices

As a director of InstaTalk Inc., Jim has a right of inspection. This right

D. cannot be restricted

Under the Outer Space Treaty, a moon, a planet, an asteroid, or any other celestial body is subject to the appropriation of

D. no single nation.

ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months. This contract is enforceable by

D. none of the choices

Bram, a salesperson for Cruisin' Motors, promises Deb a certain car will give her a "smooth ride." Bram offers a test drive, which Deb declines. She buys the car but soon realizes its suspension is in poor condition. Deb can rescind the Page 11 contract on the ground of

D. none of the choices

Buddy's Burgers advertises so effectively that the regular customers of its competitor Slider Sandwiches patronize Buddy's instead of Slider. This is

D. none of the choices.

Lewis tells a representative of Music Inc. that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract

D. only if it is in writing.

If a provision in the California state constitution conflicts with a provision in the U.S. Constitution

D. the U.S. Constitution is supreme.

Desayuno de Chile S.A., an export company in Chile, and Deli Source Inc., an import firm in the United States, enter into a contract. When Deli breaches the contract, Desayuno obtains an award of damages in a Chilean court. Desayuno then asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Chilean court's decree. This is

D. the principle of comity.

Bess, an accountant, distributes a handbill to her business clients and potential customers accusing her competitor Clara of being a thief. The statement is defamatory if

D. the statement is false.

Berry Fields, Inc., employs hundreds of seasonal and permanent workers, both skilled and unskilled, in three states. Under federal immigration law, Berry Fields can hire illegal immigrants

D. under no circumstances.

Best Restoration, Inc., begins renovating houses for City Edge Property Company under a contract for a stated amount per house. After six months, Best demands an extra $20,000 per house. City Edge agrees to pay. 58. Refer to Fact Pattern 10-3. Suppose Best asks for the extra $20,000 because ordinary business expenses have increased. The agreement is

D. unenforceable due to the preexisting duty rule

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally binding

D. without more