Final Exam

1.A contract that by its own terms cannot be performed within a year must be in writing to be enforceable.

2.Karen writes on a piece of paper, “I owe you $600,” signs it, and gives it to Lou. This instrument is

3.A failure to exercise reasonable care is negligence.

4.The test for whether an advertisement is deceptive is whether a reasonable consumer would be deceived.

5.Michelle gives out a business card with an e-mail address on it. It is reasonable to infer that Michelle has consented to

6.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

7.National Ladder Company is subject to regulations issued by the Occupational Safety and Health Administration (OSHA). Like other federal administrative agencies, the OSHA was created by

8.The basic purpose of antitrust law is to regulate economic competition.

9.Compensatory damages are foreseeable damages that arise from a party’s breach of a contract.

10.The United States and other members of a certain organization agree to grant normal trade relations status on each other with regard to imports and exports. This organization is

11.ABC Motors, Inc., sells to Matt the right to the possession and use of a motor vehicle under a lease. As defined in the UCC, ABC is

12.All rights can be assigned.

13.Accidental destruction of a negotiable instrument cancels it.

14.Parker, a salesperson for Quality Textiles, Inc., shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any shipment will match the samples. This statement is

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

16.Khali’s debt to Lew is past due. Lew obtains a judgment against Khali to collect the debt, but Khali refuses to pay. Lew asks the court to order Khali’s employer to pay a portion of Khali’s paycheck to Lew. This is a request for

17.State and local agency actions prevail over federal agency operations.

18.A signature can consist of initials signed by a party.

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

20.Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima’s products in Canada. This is

21.The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through corporate Web sites. The first step is

22.Superior Sign Company is subject to the Fair Labor Standards Act (FLSA). The FLSA is not concerned with

23.A click-on agreement is an agreement whose terms are expressed inside a box in which the goods are packaged.

24.Quality Watches, Inc., ships an assortment of timepieces to Retail Jewelers, Inc., which agrees to pay for items that are not returned within six months. This is

25.Article 2 of the UCC governs contracts for sales of goods.

26.Labor Recruiters, Inc., has been ordered to appear at a hearing before an administrative law judge of the National Labor Relations Board. A significant difference between a trial and an administrative hearing is that

27.The United States taxes each barrel of imported oil at a flat rate. This is

28.A price-fixing agreement that is reasonable does not violate antitrust law.

29.The rights and duties of a bank and its customer are contractual.

30.The U.S. Citizenship and Immigration Service issues a rule. Like the rules of other federal administrative agencies, this rule is compiled in

31.Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies, Inc., only if Nice Candies agrees to buy all the corn it needs from Midwest Agri-Products, even though there are other corn sellers from whom Nice Candies could buy. This is

32.The brakes on a River Valley Railroad train malfunction and it rolls towards maintenance workers on the tracks. Everyone gets out of the way except Dick, who wants to show off. The train hits Dick, who sues Stops-it, Inc., the brakes’ manufacturer. Stops-it can raise the defense of

33.The term cure refers to the right of the seller to adjust or replace nonconforming goods.

34.Mona and Nero want to discharge their contract by executing and performing a new agreement. They can best accomplish this by

35.The Uniform Commercial Code governs checks.

36.To obtain a contract with the Chinese government, Digby Engineering Corporation a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

37.Home Delivery Corporation and Interstate Transport, Inc., sign an agree¬ment that provides for the payment of “$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti¬mate but approximately $1,000.” This is

38.Ron makes a contract with Stu that indirectly benefits Tim, although neither Ron nor Stu intended that result. Tim is

39.An employer who hires and fires workers according to a fair seniority system may have a good defense to an employment discrimination suit.

40.Retail Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods. To be enforceable, the contract should be in writing if the goods are valued at more than

41.The payment of Eden’s debt to Flem is guaranteed by Eden’s personal property. This property is

42.“Major medical” and “marine” insurance are military policies.

43.North Mining Company and South Excavation Company agree to abide by the decisions of East Coast Financial Corporation as to their respective levels of production, markets, and prices, effectively reducing competition and increasing profits. This is most likely

44.Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a potentially hazardous toy from the market is

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

46.Randy and Beach Biz Company enter into an oral contract under which Randy agrees to clean Beach Biz’s office for two years. This contract is enforceable by

47.Congress can create a new federal administrative agency.

48.Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its closest competitor is Fluid Systems Company, another Florida firm. The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida. This is

49.If a lessor’s tender of delivery fails to conform to a contract in any way, the lessee can reject the goods.

50.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

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