exam 4 l201
Which of the following is not an example of puffery?
"This car gets 30 mpg," stated in the sales contract.
Which of the following is an example of puffery?
"This car's an antique."
The Sherman Act states that corporations convicted of violating it may be fined as much as:
$100 million per violation
What is the number of events considered sufficient under the minimum contacts test to confer jurisdiction on a state's courts?
1
Which of the following situations is most likely a case of Sherman Act Section 1 violation?
A manufacturer causes its dealers to agree not to sell outside their dealership territories.
Which of the following would not be an example of negligent failure to warn?
A mousetrap with a metal catch mechanism.
Which of the following is true of a subagent's duties to a principal?
A subagent who knows of the original principal's existence also owes that principal all the duties agents owe their principals.
Which of the following is an example of actual notification of termination of agency to third parties?
A writing delivered to the third party's place of business
Actual authority is created by:
All of these.
The Model Business Corporation Act (MBCA) was prepared and authorized by the:
American Bar Association's Committee on Corporate Laws.
Which of the following statements is true regarding an accommodation surety?
An accommodation surety receives relatively more protection from courts.
Which type of marks are most likely to be registered for trademark protection?
Arbitrary
An agent can bind his principal on a contract or other matter only when the agent has ____ to do so.
Authority
Which of the following is not required for a good to be considered to be merchantable?
Be of the highest possible quality.
Which of the following is true of revocation and renunciation?
Both result in the termination of agency.
Jackson is a pension fund manager for several large corporation's pension funds. Which of the following imposes certain fiduciary duties on Jason regarding the pensions funds?
Employee Retirement Income Security Act
The two types of actual authority are
Express and implied.
Which of the following theories of recovery is likely to be most effective against a disclaimer of liability?
Express warranty
Which of the following regulates child labor?
Fair Labor Standards Act
Which of the following is true of subagents?
For a subagency to exist, an agent must have the authority to make the subagent his agent.
When is constructive notification sufficient for an agent's apparent authority to end?
For third parties who are aware of the agency but did no business with the agent.
Under privity statutes adopted by some states, which of the following is not considered when determining whether a plaintiff can recover outside privity in warranty cases?
If the plaintiff can meet the reasonable-to-expect test
Several chemical manufacturers are selling a harmful fertilizer. It's impossible to prove which firm produced the fertilizer. Which type of liability arises under these circumstances?
Industrywide liability.
Which of the following characterizes section 43 (a) of the Lanham Act?
It is available only to commercial parties.
Ahmed, a lawyer, sold his car to Carlos. Has an implied warranty of merchantability been created by this transaction?
No, because Ahmed is not a merchant.
Which of the following is not a major life activity under the Americans with Disabilities Act?
Speaking a foreign language
What was the name of the document given to early American corporations by state legislatures that permitted them to operate as a corporation?
Special Charter
Which of the following terms is a legal requirement that anyone seeking to challenge a particular action in court must demonstrate that such action substantially affects his or her legitimate interests before he or she will be entitled to bring suit?
Standing
Assume Linares chose the name "Apollo" because Apollo is the god of light and sun in Greek mythology and Linares wants people to think of Apollo diamonds as giving off dazzling, sparkling light like the sun. If so, "Apollo" for the diamonds would mostly likely fall into which category of distinctiveness for trademarks?
Suggestive
Assume Apollo uses marketing brochures to market its diamonds. Which of the following would be least likely to qualify for copyright protection?
The prices and weights of a company's products
Which of the following statements is true of not-for-profit corporations?
They provide services to their members.
Which type of intellectual property law is most likely to protect the use of logos such as the upside-down swoosh stripe when attached to a product?
Trademark Law
What requirement for obtaining a U.S. patent requires that the invention must work and must be capable of having some useful application or serving some useful purpose?
Utility
Nancy is the mortgagor of a property subject to a mortgage. Can she sell the property?
Yes, but the sale does not affect the mortgagee's interest in the property or the mortgagee's claim against the mortgagor.
A(n) _____ surety is a person who acts as a surety without compensation, such as a friend who cosigns a note as a favor.
accommodation
The most important requirement of goods regarding their merchantability is that they must:
be fit for the ordinary purposes for which they are used.
The law of piercing the corporate veil is an example of a _____ law protecting the creditors of corporations.
common
According to the Chicago School viewpoint, the traditional antitrust focus on the structure of industry has improperly emphasized protecting ______ instead of protecting _______.
competitors; competition
Traditional antitrust thinkers argue that:
concentrated economic power may lead to antidemocratic concentrations of political power.
When two or more persons or business entities join for the purpose of restraining trade, a(n) ______ occurs.
conspiracy
Most of the common law of corporations deals with:
creditor and shareholder rights.
If a firm conducting interstate commercial activities is found to have monopolized or attempted to monopolize, it will be guilty of a(n) ___________.
felony
An agent who accepts a bribe to purchase goods for a principal from a seller who is a personal friend breaches his _____ duty by taking the money, since it is the agent's duty to work only for the best interests of the principal.
fiduciary
The Sherman Act provides that individuals criminally convicted of violating it may be:
fined up to $1 million per violation and may be imprisoned for as long as 10 years.
In the case of _____, the right must be expressly conferred on the mortgagee by the terms of the mortgage.
foreclosure by power of sale
A(n) _____ is secondarily liable for the debt of the principal debtor.
guarantor
A(n) _____ is created by operation of law rather than the seller's express statements.
implied warranty
Patent _____ occurs when a defendant, without authorization from the patentee, usurps the patentee's rights by making, using, or selling the patented invention.
infringement
A trademark owner who wins an infringement suit may obtain a(n) _____ against uses of the mark that are likely to cause confusion.
injunction
A nolo plea or a consent decree is often attractive to antitrust defendants because:
it is not admissible as proof of a violation of the Sherman Act in a private plaintiff's later civil suit.
When shareholder-managers pay themselves excessively high salaries or have the corporation pay their personal credit card bills, this is an example of:
looting.
Famous British trading companies were the forerunners of the modern corporation and primarily sought corporate status because the government granted them:
monopolies and governmental powers.
Acton Supply Company has the power to fix prices and exclude competitors in its market area. This power is known as _________________.
monopoly power
In the famous Du Pont cellophane case, the Supreme Court ruled that even though Du Pont had a 75 percent market share in cellophane, it did not have monopoly power in cellophane, because:
other functionally equivalent products were available in the market.
Tina cosigns a promissory note at Globe Bank for $500 for her friend Tom. Tom defaults on the loan, and Globe Bank collects $500 from Tina. Tina then collects $500 from Tom. Tina could collect money from Tom because of her right of _____.
reimbursement
Today, most artisans' liens:
require that the artisan have possession of the debtor's property.
The U.S. Transportation Department:
requires random drug testing of employees occupying certain safety-sensitive or security-related positions.
Abby borrows money from Cain Bank and Baker cosigns on the loan contract. Abby fails to repay this loan and Cain Bank collects the debt from Baker. Baker is entitled to recover the amount he paid to the bank from Abby. This is known as the:
right of reimbursement.
If goods have been delivered to a buyer pursuant to a sale or return contract, the:
risk of loss for the goods passed to the buyer.
Which of the following outlaws monopolization, attempted monopolization, and agreements in restraint of trade?
shaerman
Not-for-profit corporations are regulated primarily by the:
states.
A principal need not compensate his agent if:
the agent has committed a breach of a fiduciary duty.
A state law regulating the activities of a foreign corporation does not unduly burden interstate commerce if:
the foreign corporation has chosen the least burdensome means of promoting that interest.
In the case in the text, Wilke v. Woodhouse Ford, Inc., the court held that:
the implied warranty disclaimer did not violate public policy.
In cases where a product's risks are open and obvious, many courts hold that:
there is no duty to warn.
John receives certain goods from Tom. He promises to pay Tom later. This transaction is based on a(n) _____.
unsecured credit
The failure of a foreign nonprofit corporation to qualify to do intrastate business in a state prevents it from:
using the state's courts to bring lawsuits.
Under the UCC, _____ means that a buyer has given any consideration sufficient to support a simple contract.
value
Ralph is claiming that he has a disability under the Americans with Disabilities Act. Which of the following is not a major life activity that Ralph may claim is restricted by his disability?
Running a marathon
Which of the following refers to the transfer of ownership to tangible personal property in exchange for money, other goods, or the performance of services.
Sale of goods
In the International Shoe case, the United States Supreme Court held that a foreign corporation must have certain "minimum contacts" with the state such that asserting jurisdiction over the corporation does not offend "traditional notions of fair play and substantial justice." Which of the following did the Court use to justify its holding?
Benefit theory
In a sale or return, goods are delivered to a buyer for resale with the understanding that the buyer had the right to return them. Under this doctrine, the buyer must pay the expense of returning the items.
CIF
Which of the following would be most suitable to be tried under Comment k to section 402A of the Restatements (Second) of Torts?
Cases related to development of medicines
Nineteenth century product liability law is best characterized by which of the following phrases:
Caveat emptor.
Bob Jones, a gardener, wants to get a haircut. This transaction is governed by:
Common law.
Which of the following situations is most likely to be deemed in violation of Section 2 of the Sherman Act?
Conspiracy to monopolize
Which of the following distinguishes a copyright from a patent?
Copyrightable works need not be novel.
______________________ regulates wages and hours of certain covered employees by specifying a minimum wage and setting the 40-hour work week.
Fair Labor Standards Act
Which of the following types of items would be covered by the Magnuson-Moss Act?
Liquid soap costing $12.99.
Suppose that Local, a small town bookseller, contacts Kangaroo Press, a publisher, requesting Kangaroo to send 1,000 copies of the new thriller, "White Out," to three of its stores in Indianapolis, Indiana with the understanding that unsold copies could be returned to the publisher. The books arrive, but severe thunderstorms are forecast and Local decides to shut down and ship its books back to avoid liability. Local request that Kangaroo pay the price of return. Finally, Local pays, but the books are destroyed in transit. Under this scenario, which company is liable, and under what doctrine?
Local; Sale or Return.
Mayker, Inc. and Oylco contracted to have Oylco be the exclusive provider of Mayker's fuel oil for three months. The stated price was subject to increases of up to a total of 10% if the market price increased. The market price rose 25% and Mayker tripled its normal order. Oylco seeks to avoid performance. Oylco's best argument in support of its position is that:
Mayker ordered amounts of oil unreasonably greater than its normal requirements.
Joe went to a music store and misrepresented himself as James to the store attendant. He buys a plasma television set on credit, charging it to James's account. He then sells that set to Mike. Mike buys the set in good faith. Which of the following is true?
Mike will hold a good title; hence no harm can be caused to him.
Bob borrowed $200,000 from ABC Bank to purchase his residential house. A mortgage was used as the financing vehicle. Several years later Bob encountered financial difficulties. He did not pay his mortgage payments for 4 months and the bank foreclosed. At that time, the remaining loan balance was $170,000. Bob had not maintained the property well, and the winning bid at the foreclosure auction sale was only $150,000. Is Bob liable for the $20,000 deficiency that has resulted (using the majority rule)?
No, because the property was his residence.
In agency law, the term "independent contractor" is referred to as what?
Nonemployee agent
Which of the following classes of corporation may not distribute surplus revenue from its operations to its members?
Not-for-profit corporation
What requirement for obtaining a U.S. patent requires that the applicant must be the first person to have invented the process?
Novelty
Constructor Co., a commercial construction company, must comply with which of the following to provide its employees with a workplace and jobs free from recognized hazards that may cause death or serious physical harm?
Occupational Safety and Health Act
When do a principal's communications to an agent have an impact on whether the agent has apparent authority?
Only if the principal's communications to the agent become known to the third party or affect the agent's behavior.
What is the basic recovery for copyright infringement?
Owner's actual damages and the attributable profits received by the infringer
Which of the following activities is classified as doing business for the purpose of intrastate business qualification?
Owning or using real estate for general corporate purposes.
Which of the following is an example of noneconomic damages from a tort case?
Pain and suffering
Maple Interiors, located in Boston, contracted to sell and ship sofas to Peach Furniture, located in Atlanta. The contract stated that the goods were to be shipped "F.O.B. Boston, via XYZ railroad." Maple delivered the sofas to XYZ railroad. They were shipped from Boston but never seen again. Both Peach and Maple assumed that the other party had the risk of loss, so neither had obtained insurance. Who must bear this loss?
Peach must bear the loss because the risk passed to it after the sofas were delivered to XYZ railroad.
To have standing in a federal antitrust case, what must a potential plaintiff have?
A direct injury resulting from the antitrust violation
Which of the following types of items would not be covered by the Magnuson-Moss Act?
A factory lighting system costing $1,500.
In which scenario is a company least likely to be able to assert ownership of intellectual property?
A janitor for the company invents a new type of floor polish while experimenting with his own materials in his basement at home.
Which of the following represents an agency coupled with an interest?
A loan agreement in which the borrower pledges collateral to the lender and gives the lender the power to take the collateral should the borrower default on the loan.
In which scenario is a company least likely to be able to assert ownership of intellectual property?
A worker is wearing a trademarked product in a picture on her social media website.
Which of the following is most likely to be classed as an independent contractor rather than an employee?
An autonomous franchisee of a fast food fried chicken chain.
Megan has purchased two tickets for a lucky draw at the local supermarket, which are with the store's cashier. Tracy, her friend, who knows about this, convinces the cashier that she is Megan and takes the tickets. She then goes and sells the tickets to Anya, who has no knowledge of the case. Which of the following statements is true?
Anya is a good faith purchaser.
Which section of the United States Constitution empowers Congress to promote progress of science by enacting copyright and patent laws?
Article I, § 8
Bob, an attorney, purchased licensed software from Bill Able Inc. to prepare his clients' invoices online. The shrinkwrap packaging for the program disks and the software manuals contained a limitation of remedies clause, which limited the buyer's remedies to the $50 purchase price of the software. Bob later discovered that his invoices for the past year were too low due to a malfunction in the software, costing him over $10,000 in lost revenue. Bob sues Bill Able Inc. for breach of warranty. What is the likely result?
Bob loses because the disclaimer is effective.
Suppose that Indiana College is contracting with several local farms to provide food for the residence halls. Part of their contract requires that the farms insure the goods. This provision is called:
CIF
In a contract for the sale of goods between two merchants, if a term is omitted the UCC Article 2:
Can use gap fillers to fill in the blank.
Assume that Apollo began selling a diamond under the name "Sparkle" because it wants to convey to consumers that the diamond sparkles in the sunlight. If so, "Sparkle" for the diamond would mostly likely fall into which category of distinctiveness for trademarks?
Descriptive
Petite Enterprises has a maximum weight requirement for all of its employees. No one can be hired if he or she is over 135 pounds; however, anyone who is 135 pounds or less is considered for hiring regardless of that person's race, color, sex, national origin, religion, age, or disability status. Nevertheless, the weight limit results in far fewer male applicants being hired than female applicants. In fact, while males and females apply to Petite Enterprises in roughly equal numbers, Petite Enterprises employs three times as many females as males. Ernie applies to Petite Enterprises, but is not hired because he weighs 170 pounds. If Ernie sues Petite Enterprises for sex discrimination under Title VII, what mode of proof best suits Ernie's case?
Disparate impact
Which of the following is a principal's duty to his agent?
Duty to reimburse
John is working hard for his employer, Big Corp. He goes on a sales trip for Big, and while on the trip purchases food and lodging, which was impliedly authorized by Big. Which of the following identifies Big's fiduciary duty to pay John?
Duty to reimburse.
Which of the following situations is most likely to trigger liability for a vertical boycott under Section 1 of the Sherman Act?
Evidence indicates that a manufacturer and its nonterminated dealers were engaged in an unlawful vertical price-fixing conspiracy.
An authority which is created by principal's own words is called
Express authority.
Susan is hired to manage a business that manufactures basketballs. This means that she has the authority to make contracts that are reasonably necessary for conducting the business, such as purchasing supplies. After not doing so for two months, Susan's boss directly told her to purchase these supplies. The boss's statement is called:
Express authority.
Throgmartin works as a clerical employee at Cheapskate Industries. He is paid only $1.50/hour. Which of the following federal laws provides him with a remedy for being paid less than a mandatory nationwide minimum wage?
Fair Labor Standards Act
Which of the following doctrines recognizes that the social purposes present in certain uses of copyrighted works may be important enough to excuse defendants' uses of the works without permission?
Fair use doctrine
Which of the following statements is true regarding a guarantor?
Generally, a guarantor's promise must be made in writing to be enforceable under the statute of frauds.
Carrie promises to pay her cousin Joe's debt, but only if Joe does not pay. Carrie is a:
Guarantor
To prove a violation of monopoly under the Sherman Act, the offending person or company must have done what?
Had the intent to monopolize
If Janet and Joan, a buyer and seller of a used car, fail to specify when title for the car is to pass, UCC gap fillers provides that title will pass when:
Joan, the seller, completes her obligation with respect to physical delivery of the goods.
Wei was an employee at private company, LMNOP, Inc. He was terminated from his job because he refused to submit to a polygraph test. LMNOP was losing inventory due to theft (often referred to as "shrinkage") and began a polygraph program in which employees working in the relevant sections were all tested. When Wei said the test was stupid and refused to take it, he was terminated. Which of the following is true?
LMNOP may use the polygraph test in this situation only if it meets an exception for theft investigations in the Employee Polygraph Protection Act.
Suppose that Local, a small town bookseller, contacts Kangaroo Press, a publisher, requesting Kangaroo to send 1,000 copies of the new thriller, "White Out," to three of its stores in Indianapolis, Indiana with the understanding that unsold copies could be returned to the publisher. The books arrive, but a freak tornado destroys the bookstores. Under this scenario, which company bore the risk of loss, and under what doctrine?
Local; Sale or Return.
Which of the following statements about the Anticybersquatting Consumer Protection Act (ACPA) is true?
Many cases in which a trademark owner complains about another party's registration of a domain name have been submitted to arbitration, rather than to a court, in recent years.
Under Article 2 of the UCC, why does it matter whether a party to a contract is a merchant?
Merchants are treated differently than other parties.
Suppose the students disclose their secret business strategy to Nike, but only after Nike signs a noncompetition agreement. If Nike then uses the students' idea without their permission, what legal claim should the students assert against Nike?
Misappropriation of trade secrets
What form of negligence involves the duty of a manufacturer to develop a safe product?
Negligent design
Murray, an accountant, sells his motorcycle to Emily, a rock star. Has an implied warranty of merchantability been created?
No, because Murray is not a merchant.
Which damages are awarded to punish the defendant?
Punitive
A local chemical company should be punished for polluting the town reservoir. What types of damages would be awarded by a jury specifically to punish the chemical company?
Punitive.
Jimmy co-signed for his friend Fred for the purchase of a motorcycle. Fred is refusing to pay for the motorcycle despite not having a valid defense against payment and despite having the money to do so. Jimmy, who has paid nothing towards the motorcycle yet, should exercise the _____ to require Fred to make good on his obligation to pay for the motorcycle.
Right of exoneration
Which of the following was a characteristic of 19th century product liability law?
The buyer should beware.
Which of the following is not an example of a fiduciary duty?
The duty of principals to train agents to become principals.
Which of the following, if true, is least likely to prevent a company from asserting trade secret rights in a secret formula or manufacturing process?
The formula or process has been used for more than 20 years.
Which of the following, if true, is most likely to prevent a company from asserting trade secret rights in a secret formula or manufacturing process?
The formula or process is used to make a product that is still in development and not currently being sold.
Which of the following factors would not be considered by the courts in a negligent failure to warn case?
The importance of the product to society.
Which of the following factors is most likely to distinguish employees from independent contractors?
The principal's right to control the manner and means of the agent's performance
Which of the following was not a characteristic of 19th century product liability law?
The seller should beware.
Which of the following factors will be most important in determining whether an express warranty has been created concerning goods sold?
The seller's description of the goods formed the basis of the bargain.
Which type of intellectual property is likely to protect the use of the design on the front of the shirt (i.e., the swoosh logo and the "Just Done It!" slogan in stylized font)?
Trademark and copyright
Suppose consumers are likely to confuse the two slogans, and—as a result—to buy the students' shirts under the mistaken belief that they are made by Nike. If so, what type of legal claim should Nike assert against the students?
Trademark infringement
What type of marks would the slogan and swoosh mark be if they are used to market and sell shirts?
Trademarks
Suppose that Acme is contracting with Office Paper to order printing paper. The contract omits a quantity term. But should a dispute arise, the _____ code supplies _____ to still create an enforceable contract.
UCC; gap fillers
When is proof of joint action required for violation of Section 1 of Sherman Act?
When more than one firm is charged with a conspiracy to monopolize.
Which of the following is not a consideration when determining whether a state law regulating the activities of a foreign corporation places an undue burden on interstate commerce?
Whether the state's law is the most economical solution to the problem.
___________________________ is not a factor used to determine if a man and a woman are performing substantially equal work for purposes of the equal pay act.
Whether their job descriptions are substantially similar
Julia has filed a lawsuit against her employer claiming a violation of the Equal Pay Act. She based her suit on a claim that she and Mike, her co-worker, were performing substantially equal work even though Mike was paid significantly more than her. Which of the following will the court NOT consider in evaluating the case?
Whether their job descriptions are substantially similar.
Peter hires Brian and tells Brian that he has the authority to make purchases for Peter's company. Peter tells Brian he is not to consider himself as Peter's agent. Is Brian Peter's agent?
Yes, because if a party's conduct indicates an agreement that one person is to act on behalf of and under the control of another, this creates an agency relationship even when the parties expressly say they do not intend to create it.
Tracy contracted with Stanley to pay 2 installments of $1000 over a two-month period to buy a new laptop from Stanley. Juan co-signed the note for Tracy. Tracy could not make the second payment on time and Stanley extended the repayment period to three months. Is Juan still responsible as a surety?
Yes, because if the creditor merely allows the principal more time without the surety's consent, this does not relieve the surety of responsibility.
In Green v. Ford Motor Co., the case in the text, the Indiana Supreme Court held that in crashworthiness cases alleging enhanced injuries:
a finder of fact shall apportion fault to the person suffering physical harm when that alleged fault relates to the cause of the underlying accident.
Sarah, age 17, buys a car on credit from Lora. Sarah signs a promissory note, agreeing to pay $1000 a month on the note until the note is paid in full. Lora has Sarah's father cosign the note. Under these circumstances, Sarah's father is:
a surety.
Anne worked as Amanda's assistant. Amanda told Anne to buy Amanda coffee every morning (using Anne's own money) and to buy Amanda the latest fashion accessory (scarf, purse, hat, watch, etc.) from Nordstrom on Friday of each week (using Amanda's store account with Nordstrom). Anne has done so for the past year. This past Friday, Anne bought Amanda coffee using Anne's own money, and bought a scarf for Amanda and a purse for herself from Nordstrom (both of which she charged to Amanda's store account). A court is most likely to find that Anne had _______ authority to buy the coffee and scarf; that Anne had _______ authority to buy the purse; and that Amanda has a duty to _______ Anne for the coffee.
actual; apparent; reimburse
When two or more business entities work together to monopolize a relevant market, they may be guilty of _____________.
conspiracy to monopolize
A surety has a right of _____, which is the right of the surety or guarantor to require the debtor to make good on his commitment to the creditor when he (1) is able to do so and (2) does not have a valid defense against payment.
exoneration
In determining the quantity of goods to be produced or taken pursuant to an output or needs contract, the rule of _____ applies.
good faith
Firms that develop monopoly power by acquiring ownership or control of their competitors are likely to be held to have ____________________.
intent to monopolize
Purposeful acquisition or maintenance of monopoly power is evidence that a defendant had ___________________.
intent to monopolize
Smith Co. is accused of monopolization. To prove this, it must be shown that Smith Co. had both monopoly power and ___________________.
intent to monopolize
Big Corporation (BC) was dominated by its president, Mr. Vincent. He used his dominance for an improper purpose—defrauding lenders to the corporation. As a result, a court can:
make him personally liable on the debts to those lenders.
Under the Magnuson-Moss Act, if a seller gives a consumer a full warranty on consumer goods whose price exceeds $10, the seller:
may not disclaim, modify, or limit the duration of the implied warranty.
The act of pricing below the appropriate cost for the purpose of eliminating competitors in the short run and reducing competition in the long run is known as ______________.
predatory pricing
The case in the text, Riegel v. Medtronic, Inc., is an example of the concept of:
preemption.
Susan was hired by Teddy & Co. as a sales woman. However, management, upon seeing her intelligence and capabilities allowed her to use the office library and research facility to create an inventive product. Susan now wants to patent the product in her own name. This is not permissible under the:
shop right doctrine.
Juan is going to be out of town when the purchase of his car is completed. He empowers his sister, Tanya, to sign the contract for the purchase of the car. Tanya is a _____.
special agent
Joe is going on a "survival hike" in the desert. He goes to a sporting goods store, describes the hike, and asks the salesman to select suitable hiking boots for him. The boots the salesman suggests are well made and are appropriate for normal hiking, but are not suitable for Joe's plans. Relying on the salesman's selection, Joe buys the boots. After he suffers personal injury because the boots prove inadequate for the survival hike, Joe sues the store. Joe can recover under:
the implied warranty of fitness.
A trademark is considered to be abandoned when:
the owner fails to use it.
In Coleman v. Retina Consultants, P.C., the case in the text, the court held that:
the plain language of the injunction exceeded the scope required of Coleman pursuant to the terms of the Software Agreement.
For antitrust purposes, monopoly power is usually described as _________________.
the power to fix prices or exclude competitors from a given market
Submaterialmen are entitled to a lien only when:
the state statute specifically includes them.
A firm claiming a trade secret must show that it:
took reasonable measures to ensure secrecy.
Jackson, Inc. sells bleach in containers that are similar in size, shape, and color to a well-known competitor's containers for the same product. Jackson may face liability under section 43(a) of the Lanham Act based on a(n):
trade dress infringement claim.
Any word, name, symbol, device, or combination thereof used by a manufacturer or seller to identify its products and distinguish them from the products of competitors is called a:
trademark.
If a buyer rejects tender of the goods, title to those goods:
will automatically be revested in the seller.
In the case of Cleanify Corp. described in the previous question, what would Cleanify have to prove to avoid liability if Hao sues for national origin discrimination under Title VII?
That English language vocabulary test is job related and consistent with business necessity.
In the case of Burrito Chime described in the previous question, what would Burrito Chime have to prove to avoid liability if he sues for sex discrimination under Title VII?
That the maximum height requirement is job related and consistent with business necessity.
Which of the following, if true, is most likely to prevent a company from asserting trade secret rights in a secret formula or manufacturing process?
The company informs employees that the information is valuable, but does not take any measures to keep the information secret.
Assume Apollo markets its diamonds exclusively to microchip manufacturers for use in making computer microchips. Which of the following marks, if later used by another company, is most likely to be considered an infringement of rights in the trademark APOLLO for diamonds used in computer microchips?
The mark APOLO for diamonds used in computer monitors
Under the product liability theory of recovery known as strict liability, which parties may be held liable? (Answer using the majority rule used in most states.)
The wholesaler only, engaged in the business of selling that product
Jonny, a high school history teacher, sells his car to Doris, a friend. This sale is governed by:
UCC Article 2.
When does an agent expressly bind herself to a contract made for a principal?
When the agent acts as a surety
Which of the following statements about noncompetition agreements is false?
Without a noncompetition agreement, the ex-employee is normally free to compete with her former employer on the basis of trade secrets and skills obtained during the employment relationship.
Which of the following is a tort claim for wrongful discharge or unjust dismissal?
Wrongful discharge in violation of public policy
Chicago School theorists argue that antitrust policy's primary thrust should feature:
anticonspiracy efforts.
When general incorporation statutes first emerged in the United States, they permitted incorporation only for limited purposes that:
benefited the public.
The 20th century product liability law is best characterized by the phrase:
caveat venditor.
A distinction between a surety and a cosurety is that only a cosurety is entitled to the right of/to:
contribution.
The bona fide occupational qualification defense under Title VII:
is available for cases of sex, religious, and national origin discrimination, but not for race or color cases.
Acme Corp. has captured 90 percent of the national market for commodity "X." Acme is most likely to be liable for monopolization under Section 2 of the Sherman Act, if "X" is:
men's socks.
When a firm has captured a predominant share of the relevant market, it is said to have acquired ____________.
monopoly power
A party who borrows money to buy a home and signs an agreement giving the bank the right to repossess the home in case of default is called a:
mortgagor.
Information that is reasonably discoverable by proper means may not be protected as a trade secret. Which of the following would not constitute "proper means"?
Reverse engineering of an illegitimately acquired product
The maximum number of shareholders that are allowed in a Subchapter S corporation is:
100.
Which section of the UCC grants a warranty for fitness for particular purpose?
2-315
Which section of the UCC states that title passes to the buyer when seller has completed physical delivery of the goods?
2-401
Market shares in excess of ___ percent have historically justified an inference of monopoly power.
70
Which of the following is not a breach of the implied warranty of merchantability?
A car that was sold as a sports car capable of high speeds but still adequately runs.
Which of the following is most likely to be considered a sale of goods to which the UCC applies?
A department store sells a car battery.
In which scenario is a company least likely to be able to assert ownership of intellectual property?
A movie star is wearing one of their products in a movie.
Which of the following regarding merchants and the UCC is false?
A person is a merchant if he employs an agent, even if the agent does not have special knowledge and does not regularly deal in the kind of goods being sold.
Which of the following is true of a person's capacity to be a principal or agent?
A principal must have the capacity to do the acts for which the agent has been retained.
Which of the following must exist in order for a person to possess apparent authority?
A third party's belief that agency exists
Which of the following is a good under the UCC?
A used computer worth $200.
When can a lienholder sell goods or claim ownership if he possesses goods because his charges are not paid?
After following state procedure or filing a lawsuit.
Generally, an agency relationship is terminated by operation of law in all of the following situations except:
Agent's renunciation of the agency.
Generally, an agency relationship is terminated by operation of law in all of the following situations except:
An agent's illness.
Which of the following is least likely to be an independent contractor?
An assembly line worker.
Which of the following is least likely to be considered a sale of goods to which the UCC applies?
An optometrist gives a contact case to a patient.
Which of the following constitutes a necessary part of a larger joint undertaking serving procompetitive ends?
Ancillary horizontal restraints
After an agency relationship is terminated, which of the following types of authority generally still in exists?
Apparent.
Frank, a business law professor who has never sold a car before; sells his 1995 Honda Civic to Wanda. This sale is governed by:
Article 2 of the UCC.
How can a patentee transfer ownership of the patent to another party?
Assignment
Which tort would be appropriate for a plaintiff-businessperson to sue under if the defendant made a statement that impugns the plaintiff-businessperson's character or conduct?
Defamation
Which of the following situations does not violate the Age Discrimination in Employment Act if the decision in question is based on age and the employer in question has more than 20 employees and is in an industry affecting interstate commerce?
Beryl, a 21 year old, is not hired, instead John, a 70 year old, is.
Which of the following agreements will result in the formation of an agency coupled with an interest?
Borrower shall pledge securities to a lender, authorizing the lender to sell the securities and apply the proceeds to the loan in the event of default.
The only difference between C & F and CIF shipping contracts is:
C & F shipping contracts do not require the seller to insure the goods
Suppose that Chemicals 'R Us is contracting with several international suppliers to provide chemicals for their operations. Part of their contract requires that Chemicals 'R Us insure the goods. This provision is called:
C&F
According to the Supreme Court of the United States, a foreign corporation may be brought into a state's court in connection with its activities within the state, provided that the state does not violate the corporation's due process rights under the Fourteenth Amendment of the Constitution and its rights under the:
Commerce Clause.
Suppose consumers don't confuse Nike's shirts and the students' shirts, but they do think of Nike's famous slogan "Just Do It" when they see the students' slogan "Just Done It" and, as a result, Nike's slogan becomes less distinctive and unique. If so, what type of legal claim should Nike assert against the students?
Dilution by blurring
Suppose consumers are likely to associate the "Just Done It" slogan with Nike's "Just Do It" slogan and, as a result of the low quality of the students' shirts, are likely to think less of Nike's shirts. If so, what type of legal claim should Nike assert against the students?
Dilution by tarnishment
Sellers of goods sometimes attempt to disclaim (avoid) their liability under warranties. Which type of warranty disclaimers must be written in order to be effective?
Disclaimers of the warranty of fitness for a particular purpose.
Cleanify Corp., a corporate housekeeping and janitorial services company, requires all applicants to take a rather challenging English language vocabulary test. Any applicant who fails the vocabulary test—whether or not English is that applicant's native language—is not considered for employment at Cleanify. Cleanify has 200 employees. Housekeeping is an industry affecting interstate commerce. Cleanify is located in New Hanoi, a small Midwestern town where 50% of the population consists of recent Vietnamese immigrants. While roughly half of Cleanify's applicants are Vietnamese immigrants or of Vietnamese ancestry, only about 10% of its workforce is Vietnamese. Cleanify's managers and owners actually have had uniformly positive experiences with their employees who are from the local Vietnamese community and would be happy to hire more of them but for the difficulty a majority of the Vietnamese applicants seem to have with the English language vocabulary test. Hao is a Vietnamese immigrant who fails the English test. He wants to sue Cleanify for national origin discrimination under Title VII of the Civil Rights Act of 1964. What theory would Hao most likely use to support his Title VII claim on these facts?
Disparate impact
Ima Restauranteur owns Burrito Chime, a fast food Mexican restaurant. Ima has a rule—due to the physical layout of the restaurant, including the relatively low level of the stove and of the countertops and prep areas on which the cooking occurs—that she only hires cooks who are shorter than six feet tall (to avoid requiring the cooks to spend too much time being bent over). Ima is willing to hire anyone who is shorter than six feet tall and who is otherwise qualified for the job. Burr Nowt, an applicant for a cook position at Burrito Chime, is six feet and two inches tall, so he does not get the job. Burr believes he is a victim of sex discrimination as prohibited by Title VII of the Civil Rights Act of 1964 (assume that Burrito Chime is a covered entity under Title VII). What theory would Burr most likely use to support his Title VII claim on these facts?
Disparate impact
Andrea works for a parking garage, taking tickets and collecting money. Andrea forgot to keep track of the number of people who paid for parking and the number who had tickets but left without paying. Andrea likely violated:
Duty to account.
Suppose that an NBA franchise owner orders that a player take a fall during a game. The player refuses, and the franchise owner brings suit. What type of fiduciary duty is in play, and how will the case likely turn out?
Duty to obey reasonable instructions; for the player.
Suppose that European Airlines is contracting with Wright Bros. Airplanes to test a new type of airplane that Wright has developed, the 797 Starliner. The 797 is delivered to European Airlines and begins making regular flights with it, but never formally accepts the contract. Under this scenario:
European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine.
Suppose that European Airlines is contracting with Wright Bros. Airplanes to test a new type of airplane that Wright has developed, the 797 Starliner. The 797 is delivered to European Airlines, which decides to return the aircraft but never informs Wright of this decision. Under this scenario:
European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine.
Suppose that European Airlines is contracting with Wright Bros. to test a new type of airplane that Wright has developed, the 797 Starliner. The 797 is delivered to European Airlines, which decides to return the aircraft but never informs Wright of this decision and instead uses it in regularly scheduled flights. Under this scenario:
European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine.
Assume that Apollo began selling a diamond using the made-up word "Zizazozu" because it wanted its product to have a completely original name. If so, "Zizazozu" for the diamond would mostly likely fall into which category of distinctiveness for trademarks?
Fanciful
Which constitutional amendment requires public employers to be careful when implementing drug testing programs to ensure that they do so only when there is a reasonable basis for suspecting that an employee is using drugs or alcohol, or that they only test employees whose drug or alcohol use would threaten the public interest of public safety?
Fourth
Payne borrowed $500 from Long Bank. At the time the loan was made to Payne, Gem orally agreed with Long that Gem would repay the loan if Payne failed to do so. Gem received no personal benefit as a result of the loan to Payne. Which of the following is most likely to be true, under the circumstances?
Gem is free from liability concerning the loan.
Ojay Corp., A-C, Inc., and Kato Co. are competitors in the production and sale of knives. A year ago, the three firms agreed to share pricing information with each other on a periodic basis. As a result of this agreed sharing of information, the three companies regularly charge the same prices, including a minimum price that none of the three goes below and a maximum price that none of the three goes above. A fourth producer of knives, Bronco Co., is the plaintiff in a Sherman Act Section 1 lawsuit against Ojay, A-C, and Kato. Bronco claims that the foregoing facts constituted price-fixing and that Bronco suffered direct antitrust injury as a result. Assuming that Bronco is a proper plaintiff, which of the following is an accurate analysis under current antitrust law?
If the court believes that the evidence demonstrates an agreement to fix prices, it will hold the defendants liable under Section 1 regardless of the business justifications for their agreement.
Susan is hired to manage a business that manufactures basketballs. This means that she has the authority to make contracts that are reasonably necessary for conducting the business, such as purchasing supplies. This type of authority is called:
Implied authority.
Suppose that Indiana Power and Light (IPL) has been running two nuclear power plants in Northern Indiana for several years. Michigan Power and Illinois Electric also run power plants in the area. A river becomes contaminated with nuclear waste, and it is impossible to say for sure which nuclear power plant is to blame. Which is the best theory of liability that would allow plaintiffs to recover?
Industrywide liability.
Which tort involves the publication of false statements that disparage another's business, property, or title to property, and thus harm her economic interests?
Injurious falsehood
Which of the following antitrust activities can be challenged only under state law?
Intrastate agreements in restraint of trade.
Which of the following statements about the Restatement (Third) of Torts is false?
It has been adopted by enough states to make it a majority rule.
Suppose that, in the Wal-Mart case mentioned by the students, the people used Wal-Mart's copyrighted materials as part of a parody intended as a criticism of Wal-Mart's labor practices. If so, what would be the people's best defense if Wal-Mart sued them for copyright infringement?
It is a fair use
Yum Yum Corporation hired Ursula to be its agent. Yum Yum Corporation has now dissolved. What happens to the agency?
It is terminated by operation of law.
Larry agrees to sell Janet his lawnmower for $70. Janet writes Larry a check for the full amount, which bounces when Larry presents it to his bank for deposit. Which of the following statements is true?
Janet has a voidable title in the lawnmower.
John buys a machine for $10,000 under a contract that excludes consequential damages and limits the buyer's remedies to repair and replacement of defective parts. John later discovers that the machine is not working properly. Under these circumstances if the remedy of limitation is enforceable, to what extent will John be successful?
John can only get the machined replaced or repaired by the seller.
Suppose that Local, a small town bookseller, contacts Kangaroo Press, a publisher, requesting Kangaroo to send 1,000 copies of the new thriller, "White Out," to three of its stores in Indianapolis, Indiana with the understanding that unsold copies could be returned to the publisher. The books arrive, but severe thunderstorms are forecast and Local decides to shut down and ship its books back to avoid liability. Local requests that Kangaroo pay the price of the return. It refuses. Under this scenario, which company is correct, and under what doctrine?
Kangaroo; Sale or Return.
John is a construction contractor. Based on Kevin's advanced skill and training as a plumber, John hires Kevin to install plumbing in ten houses that he is building. Jon does not pay payroll taxes or provide employee benefits to Kevin. Kevin provides his own tools and equipment to complete the job. Which of the following is a court most likely to find?
Kevin is an independent contractor of John.
Which of the following is a transfer of the right to possess and use goods belonging to another?
Lease
A manufacturer is developing a new type of baby carriage. It puts a warning label on the baby carriages, but does not include a warning to lock the wheels when the carriage is standing still. Several babies are injured because of the carriages rolling on very small inclines. The parents of these babies sue the manufacturer. Their best cause of action would be:
Negligent failure to warn.
Lucia is paying Martha to sell properties that Lucia owns. Can Martha sell one of Lucia's properties to herself?
No, because an agent may not deal with himself.
Anderson incorporated his new company, Pearl, Inc., in the business of manufacturing rubber. After some years, he opened his own subsidiary rubber manufacturing company. The new subsidiary company is a success. Meanwhile, the workers of Pearl, Inc. claimed that payment of bonus is due and they are demanding the same from the subsidiary company. In this case, are both Pearl, Inc. and its subsidiary liable?
No, they are not liable because a subsidiary is not liable for parent's debts as provided under the law.
In Noble Roman's v. Pizza Boxes, the case in the text, the court held that:
Noble Roman's was only required to pay the "printing prep" charges in the event Pizza Boxes did not manufacture the 2.5 million boxes.
Which of the following involves a plea where the defendant technically has not admitted guilt, but the sentencing court can still impose the same penalty as if the defendant pleaded guilty or was convicted at trial?
Nolo contendere
Assume Linares wants to obtain a patent for his manufacturing process. What requirement for obtaining a U.S. patent requires that Linares' invention must be something that would not have been readily apparent to a person who is skilled in the existing technology ("prior art") in the same or related fields?
Non-Obviousness
Under the _____ system, the subcontractors or materialmen have direct liens and are entitled to liens for the value of labor and materials furnished, irrespective of the amount due from the owner to the contractor.
Pennsylvania
Which of the following is not a major life activity under the Americans with Disabilities Act?
Playing basketball
Which of the following is the oldest and also the simplest security device?
Pledge
Which of the following refers to a direct contractual relation?
Privity of contract
If Sammy the salesman is trying to sell a new tractor to Michael, and Sammy tells Michael "this tractor is a really good buy." This is an example of:
Puffery.
Pulse Corp. maintained a warehouse where it stored its manufactured goods. Pulse received an order from Star. Shortly after Pulse identified the goods to be shipped to Star and before moving them to the loading dock, a fire destroyed the warehouse and its contents. With respect to the goods, which of the following statements is correct?
Pulse has title and an insurable interest.
Robert cosigns a note for his friend Amelia, which she has given to Credit Union to secure a loan. Suppose the note was originally for $5,000 and payable in 12 months with interest at 10 percent a year. Credit Union and Amelia later agree that Amelia will have 24 months to repay the note but that the interest will be 13 percent per year. Robert is not aware of this change of terms. In the event of Amelia defaulting on the loan, will Robert have to repay the debt?
Robert will not have to pay the debt because he has not accepted the changed terms of the loan.
Stone, a merchant seller in Seattle, contracted with Rose, a merchant buyer in Rochester, for the sale of goods to be shipped by truck. The terms of the contract were "F.O.B. Seattle." Stone delivered the goods to the carrier. After leaving Seattle, the truck containing the goods was never seen again. Stone has demanded payment for the goods, and Rose has refused. If Stone sues, the outcome will be:
Rose will win because under the UCC, this was a shipment contract.
Smith Co. is accused of attempted monopolization. If charged, Smith will likely be charged with a violation of the _______ Act.
Sherman
The three federal antitrust statutes are the Clayton Act, the Robinson-Patman Act, and the ____________.
Sherman Act
Which Act deals with monopolies and restraints on trade?
Sherman Act
Assume that the Oklahoma Wholesale Lumber Suppliers' Association, a trade association formed by all lumber wholesalers in the state, adopts a "fair competition" plan that divides the state into exclusive territories for member wholesalers. Each member wholesaler is forbidden by the plan to sell to retailers in another wholesaler's territory. Under these circumstances, which of the following is true?
Since this is a case of "naked" horizontal restraint, the courts would apply the per se rule to determine whether it is lawful.
In the case of Petite Enterprises described in the previous question, what would Petite Enterprises have to prove to avoid liability if Ernie sues for sex discrimination under Title VII?
That the maximum weight requirement is job related and consistent with business necessity.
Which of the following statements about the Defend Trade Secrets Act (DTSA) is false?
The DTSA preempts state trade secrets law.
Which of the following is NOT true of a private employer's drug testing program?
The Fourth Amendment limits such programs to when an employee's drug use is reasonably suspected.
Which of the following best represents an agent's duty of segregation?
The agent should not deal with the principal's property so that it appears to be the agent's.
Which of the following is most important in determining who bears the risk of loss in a sale of goods contract?
The agreement of the parties
In the case in the text, Branham v. Ford Motor Co., the court stated that the plaintiff was required to prove three things at trial for his product liability design defect action. Which of the following is not one of the three requirements?
The defendant knew the product was dangerous
Samwise works as a diamond buyer for Frodo, owner of the jewelry store Rings, Etc. Without Frodo's knowledge or consent, Samwise has also been working as a diamond sales agent for Sauron Mines. On several occasions he has sold Sauron Mines's diamonds to Frodo for inflated prices and then pocketed the difference. Also, because of his position with Sauron Mines, Samwise has become aware that a supposedly impending strike by diamond workers in Sauron Mines, which has been driving up diamond prices, has been avoided. This information would be relevant to Frodo and material to decisions Frodo will be making about Rings, Etc. Samwise does not tell Frodo that the strike has been averted. Which of the following fiduciary duties to Frodo has Samwise not breached in this situation?
The duty not to disclose confidential information.
_____ analysis of behavior challenged under Section 1 of the Sherman Act is thought to provide reliable guidance to business.
per se
Bony Corp. requires retailers and wholesalers that purchase Bony's $200 videocassette recorders (VCR) to purchase $20 of blank Bony videotapes with each VCR. Under these circumstances, which of the following statements is accurate?
The fact that Bony is the market leader in the VCR market is a relevant factor insofar as the legality of Bony's tying requirement is concerned.
A patent can be viewed as a contract between the inventor and who?
The federal government
Assume Apollo markets its diamonds exclusively to jewelry stores. Which of the following marks, if later used by another company, is most likely to be considered an infringement of Apollo's rights in the trademark APOLLO for diamonds sold in jewelry stores?
The mark APOLLÓ used for emeralds sold in jewelry stores
Assume Apollo markets its diamonds exclusively in jewelry stores. Which of the following marks, if later used by another company, is least likely to be considered an infringement of rights in the trademark APOLLO for diamonds sold in jewelry stores?
The mark APPALL used for motor oil sold in auto parts stores
Apollo is least likely to obtain copyright protection when using the Internet to market its diamonds for which of these?
The prices listed for products on an Internet website
Which of the following terminates an agency relationship through operation of law?
The principal dies and the agent is notified of the death.
Which of the following is true of a principal's duty of indemnity?
The principal must indemnify the agent for tort damages resulting from authorized conduct that the agent did not believe was tortious.
Which of the following state tax scenarios violates the commerce clause?
The tax is slightly related to the services provided by the state.
Which of the following sometimes serves as an alternative to claims of trademark infringement?
Trademark dilution
Sandra Love, a tennis pro, enters into a contract to sell her tennis racket. This sale is governed by:
UCC Article 2.
Which of the following is NOT a claim or doctrine sounding in contract?
Wrongful discharge in violation of public policy
Jack has been Will's personal assistant for 10 years. Jack's duties have always included arranging for one room in Will's house to be re-decorated every year while Will is on his annual vacation in Greece. For the last five years, Jack has hired Grace as the interior designer in charge of the re-decoration project. This year, two weeks before Will left for Greece, he and Jack had a major disagreement about how to decorate the spare bedroom. Will wanted to go with a French-toille inspired theme. Jack insisted on a Hello Kitty theme. The snit escalated into an all-out fight and Will abruptly fired Jack. Without Will's knowledge, Jack went ahead and hired Grace to decorate the spare bedroom in a Hello Kitty theme. He paid Grace's usual 50% up-front fee with Will's credit card, which Will forgot to take away from Jack. When Will returns from Greece he is livid. He refuses to pay Grace for the balance of the bill, because he claims that Jack acted without authority. Is Will liable to Grace for the balance of the bill?
Yes, because, even though the agency was terminated, Jack retained apparent authority to bind Will to contracts with Grace until Will actually notified Grace of the termination.
The Benson Bearing Company sells Textron, Inc. a quantity of baseball bats that were stored in an independent warehouse at the time of the sale. The contract says that Textron is to pick up the bats at the warehouse. The risk of loss passes to Textron:
at the time it receives a negotiable warehouse receipt for the bats.
A difference between a surety and a guarantor is that the guarantors:
become liable only if the principal debtor first defaults.
A _____ takes goods free of any security interest in the goods that their seller may have given to a third party.
buyer in the ordinary course of business
Dr. Evil, the CEO of Evil Enterprises, Inc., convinces all of the company's competitors to merge with Evil Enterprises, Inc. He tells them that they will be able to "charge customers as much as they want, and become large enough to run any dissenting company out of business." In this situation, Dr. Evil is trying to engage in _____________.
conspiracy to monopolize
A Subchapter S corporation is typically treated like a _____ for federal income tax purposes.
partnership
Toywood Inc., headquartered in Vermont, specializes in manufacturing non-toxic wooden toys in its two mechanized units in Vermont and New Hampshire. Its flagship store is located in Philadelphia, Pennsylvania. It will be considered a(n) _____ corporation in Pennsylvania.
foreign
A corporation that is incorporated in one state and doing business in another state is called a(n):
foreign corporation
When one party to a contract claims that the defendant's meddling with the other party's performance of the contract wrongly caused the plaintiff to lose the benefit of that performance, the plaintiff has a cause of action for:
interference with contractual relations.
In a _____ contract, the goods are delivered to the buyer primarily for resale with the understanding that the buyer has the right to return them.
sale or return
Since the level of doing business that constitutes intrastate business for qualification purposes has been difficult to define, the Model Business Corporation Act lists several activities that do not require qualification. One such activity is:
soliciting orders by mail that require acceptance outside the state.
The apparent authority of a general agent for a disclosed principal will terminate without notice to third parties when:
the third party has notice of the principal's death.
Resale price maintenance is also known as:
vertical price-fixing.
A seller who has a _____ has the power to pass good title to a good faith purchaser for value.
voidable title
In a case of intentional interference, a defendant generally escapes liability when his contract interference:
was guided by public interest.