Adam and Beth form A&B, LLC, a limited
liability company (LLC). One advantage of an LLC is that it may be taxed as
Answer
a corporation.
a partnership.
a non-profit entity.
a syndicate.
0.5 points
Question 11
X, Y, and Z fast-food burger chains have a secret meeting in Captain Tony's Bar
in Key West where they all agree to divide up the Keys into three geographic
territories - upper, middle, lower including Key West - each to receive an
exclusive territory, and where they also promise not to compete with each other
in their respective territories. This agreement is:
Answer
Legal if they can demonstrate that it is good for the consumer since the
companies will now be able to compete more effectively against other fast-food
businesses, especially Subway, which now has surpassed McDonald's in the number
of worldwide outlets, and KFC.
Legal as long as the territorial division is a fair one and there was no fraud
or mistake present in the transaction.
Illegal pursuant to the
Per Se doctrine of anti-trust law.
Legal pursuant to the Rule of Reason doctrine of anti-trust law.
0.5 points
Question 12
Best Office Company promises to pay Carl $1,000 to repair the roof on Best's
building. Carl fixes the roof. The act of fixing the roof
Answer
imposes a moral obligation on Best to pay Carl.
imposes no obligation on Best unless it is personally satisfied with the job.
is not sufficient consideration because it is not goods or money.
is the consideration that
creates Best's obligation to pay Carl.
0.5 points
Question 13
Susan and her neighbors who live in an older, working-class neighborhood had
their homes seized by the city pursuant to eminent domain since the city wants
to turn the property over to a big private developer who plans to build a mall,
thereby increasing the tax base of the city. Susan and her neighbors have been
evicted; but they are promised "fair market value" for their homes.
However, they want to stay in their homes. They sue the city for acting in an
unconstitutional manner. The likely result of that lawsuit would be:
Answer
Susan and her neighbors will win since the city seized their properties merely
for a mall and not something major like an airport extension.
Susan and her neighbors will win because the city did not use the properties
itself but turned them over to a private developer.
Susan and her neighbors will win since under the old common law, "An
Englishman's home is his castle," and thus government cannot
constitutionally seize private property.
Susan and her neighbors
will lose, assuming they receive fair market value for their properties, since
the city acted in a constitutional manner.
0.5 points
Question 14
Ann gives Bill the distinct impression that Carol is Ann's agent, when in fact
she is not. Bill deals with Carol as Ann's agent. Regarding any agency
relation¬ship, Ann
Answer
can deny it.
can deny it to the extent of any injury suffered by Bill.
can deny it to the extent of any liability that might be imposed on Ann.
cannot deny it.
0.5 points
Question 15
Yard Work, Inc., makes and sells garden tools. Under the strict liability
doctrine, a tool could be unreasonably dangerous and defective
Answer
only if, in making the
tool, Yard Work failed to use a less dangerous but economically feasible
alternative.
only if the tool is dangerous beyond the ordinary consumer's expectation.
if, in making the tool, Yard Work failed to use a less dangerous but
economically and practically feasible alternative.
none of the above.
0.5 points
Question 16
American Sales Company and B2C Corporation enter into a contract over the
Internet. The contract says nothing about the UETA. The UETA applies to
Answer
none of the contract.
only the part of the contract that does not involve computer information.
only the part of the contract that involves computer information.
the entire contract.
0.5 points
Question 17
Allie, an adult, is injured while using a very sharp kitchen knife manufactured
by Fearless Cutting to prepare a dinner. The knife is manufactured according to
Fearless' product standards. There is an adequate handle for the knife, a
sheath to enclose the knife, but no warning on the box, sheath, or knife itself
that the knife is very sharp. Allie sues Fearless pursuant to the doctrine of
strict liability, contending that the knife is a defective product. The likely
result of such a lawsuit would be:
Answer
a. Fearless loses since it is deemed to be an insurer of an ultra-hazardous
product which caused harm to a consumer.
b. Fearless loses since there was no warning on the product that the knife was
sharp and could cut.
c. Fearless loses since the knife was a flawed product.
d. Allie loses since the
product was not defective and a reasonable person should have been aware of the
risk of being cut by a knife.
0.5 points
liability company (LLC). One advantage of an LLC is that it may be taxed as
Answer
a corporation.
a partnership.
a non-profit entity.
a syndicate.
0.5 points
Question 11
X, Y, and Z fast-food burger chains have a secret meeting in Captain Tony's Bar
in Key West where they all agree to divide up the Keys into three geographic
territories - upper, middle, lower including Key West - each to receive an
exclusive territory, and where they also promise not to compete with each other
in their respective territories. This agreement is:
Answer
Legal if they can demonstrate that it is good for the consumer since the
companies will now be able to compete more effectively against other fast-food
businesses, especially Subway, which now has surpassed McDonald's in the number
of worldwide outlets, and KFC.
Legal as long as the territorial division is a fair one and there was no fraud
or mistake present in the transaction.
Illegal pursuant to the
Per Se doctrine of anti-trust law.
Legal pursuant to the Rule of Reason doctrine of anti-trust law.
0.5 points
Question 12
Best Office Company promises to pay Carl $1,000 to repair the roof on Best's
building. Carl fixes the roof. The act of fixing the roof
Answer
imposes a moral obligation on Best to pay Carl.
imposes no obligation on Best unless it is personally satisfied with the job.
is not sufficient consideration because it is not goods or money.
is the consideration that
creates Best's obligation to pay Carl.
0.5 points
Question 13
Susan and her neighbors who live in an older, working-class neighborhood had
their homes seized by the city pursuant to eminent domain since the city wants
to turn the property over to a big private developer who plans to build a mall,
thereby increasing the tax base of the city. Susan and her neighbors have been
evicted; but they are promised "fair market value" for their homes.
However, they want to stay in their homes. They sue the city for acting in an
unconstitutional manner. The likely result of that lawsuit would be:
Answer
Susan and her neighbors will win since the city seized their properties merely
for a mall and not something major like an airport extension.
Susan and her neighbors will win because the city did not use the properties
itself but turned them over to a private developer.
Susan and her neighbors will win since under the old common law, "An
Englishman's home is his castle," and thus government cannot
constitutionally seize private property.
Susan and her neighbors
will lose, assuming they receive fair market value for their properties, since
the city acted in a constitutional manner.
0.5 points
Question 14
Ann gives Bill the distinct impression that Carol is Ann's agent, when in fact
she is not. Bill deals with Carol as Ann's agent. Regarding any agency
relation¬ship, Ann
Answer
can deny it.
can deny it to the extent of any injury suffered by Bill.
can deny it to the extent of any liability that might be imposed on Ann.
cannot deny it.
0.5 points
Question 15
Yard Work, Inc., makes and sells garden tools. Under the strict liability
doctrine, a tool could be unreasonably dangerous and defective
Answer
only if, in making the
tool, Yard Work failed to use a less dangerous but economically feasible
alternative.
only if the tool is dangerous beyond the ordinary consumer's expectation.
if, in making the tool, Yard Work failed to use a less dangerous but
economically and practically feasible alternative.
none of the above.
0.5 points
Question 16
American Sales Company and B2C Corporation enter into a contract over the
Internet. The contract says nothing about the UETA. The UETA applies to
Answer
none of the contract.
only the part of the contract that does not involve computer information.
only the part of the contract that involves computer information.
the entire contract.
0.5 points
Question 17
Allie, an adult, is injured while using a very sharp kitchen knife manufactured
by Fearless Cutting to prepare a dinner. The knife is manufactured according to
Fearless' product standards. There is an adequate handle for the knife, a
sheath to enclose the knife, but no warning on the box, sheath, or knife itself
that the knife is very sharp. Allie sues Fearless pursuant to the doctrine of
strict liability, contending that the knife is a defective product. The likely
result of such a lawsuit would be:
Answer
a. Fearless loses since it is deemed to be an insurer of an ultra-hazardous
product which caused harm to a consumer.
b. Fearless loses since there was no warning on the product that the knife was
sharp and could cut.
c. Fearless loses since the knife was a flawed product.
d. Allie loses since the
product was not defective and a reasonable person should have been aware of the
risk of being cut by a knife.
0.5 points
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