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GBS205
business law final exam
| Question | Answer |
|---|---|
| Heidi and Ian are directors and shareholders of Globe Software, Inc. Heidi’s written authorization to Ian to vote Heidi’s shares at a Globe shareholders’ meeting is | a proxy. |
| Frida and Gregor want to market a new line of fishing gear. To avoid income taxes at the corporate level, they should form | an S corporation. |
| Qatar Global Investments is a foreign entity—a firm owned and operated by investors in a foreign country. With respect to a limited liability company in the United States, Qatar Global can | not become a member, but can participate in its operations. |
| Genna is a director of Fab Stuff Corporation. Without informing Fab, Genna starts up Evertrendy, Inc., to compete with Fab. Genna is liable for breach of | the duty of loyalty. |
| Kirby is a manager of Jumpstart Fitness LLC, a limited liability company. Kirby owes fiduciary duties to | Jumpstart and its members. |
| Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse. Dex completes the installation. The act of installing the pump | is not sufficient consideration because it is not goods or money. |
| Lucy agrees to work for Mung Manufacturing, Ltd., as a Chinese/ English/ French translator. In determining whether a contract has been formed, an element of prime importance is | the parties’ intent. |
| Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is | a click-on agreement. |
| Esmeralda promises to pay Fiorello $400 because “he does not have as much money as other people.” Esmeralda’s promise is not enforceable because | Fiorello has not given consideration in return. |
| Fabien offers to sell his Graphic Signs, LLC, business to Hana for $100,000. Hana replies, “The price is too high. I will buy it for $75,000.” Hana has | rejected the offer and made a counteroffer. |
| Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver. Dondi buys the appliance else-where for $5,500. Dondi’s measure of damages is | $1,000 plus incidental damages. |
| Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Overseas Bank through Newt’s investment firm. Unknown to Mona, Newt realizes ongoing commissions from the investment. Most likely, Mona may | rescind the contract on the basis of undue influence. |
| Dharma enters into a contract to manage the operations of Esther’s dental office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be | performed. |
| Garland induces Jules to enter into a contract for the purchase of a Chef’s Burger House restaurant. Garland knowingly misrepresents a number of material features about the restaurant and the business. When Jules discovers the truth, he can | rescind the contract on the basis of fraud. |
| Horizon Corporation makes cell phones. Gina files a product liability suit against Horizon, alleging a design defect. In deciding whether to hold Horizon liable, the court may consider the “reasonableness” of | an available alternative design. |
| Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises | automatically. |
| Sheri files a petition for bankruptcy. She must include with the petition | a certificate proving credit-counseling from an approved agency. |
| Vito borrows $110,000 from Watershed Bank to buy a home. If he fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. This is | foreclosure. |
| Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is | a forbearance. |
| Jordan is a surety for Kelly’s loan from Lenders Credit Corporation. When the loan comes due, Kelly tries to pay Lenders Credit, but the creditor rejects the payment. Jordan is | released from any obligation on the debt. |
| Milos files a petition in bankruptcy. His dischargeable debts include | unsecured credit-card debt. |
| Rita is appointed as an agent for Superior Sales, Inc. The agency agreement is silent as to the level of sales that Rita is expected to achieve. She must | use reasonable diligence and skill in selling. |
| Fruits & Vegetables, Inc., employs hundreds of seasonal and permanent workers, both skilled and unskilled, in seven states. Fruits & Vegetables can hire illegal immigrants | under no circumstances. |
| Mineral Mining Corporation is a U.S. employer. Mineral, and other U.S. employers, must perform I-9 verifications for | each new hire. |
| Clive works for Digby Excavation Corporation. While operating a backhoe, Clive suffers an injury. Clive will be compen-sated under state workers’ compensation laws only if | his injury was accidental. |
| Elton files a suit in a federal district court against the state of Florida, alleging employment discrimina-tion under the Age Discrimination in Employment Act of 1967. The state asks the court to dismiss the suit. The court is most likely to rule that | the state is immune from the suit. |
| Greta is the only female employee in the maintenance department of Hydraulics Inc. Greta’s supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. This is | a constructive discharge. |
| Resourced Forestry Corporation and the Service Employees International Union are sued by plaintiffs alleging job discrimination in violation of Title VII of the Civil Rights Act of 1964. This law applies to employers and labor unions with at least | fifteen employees or members. |
| Energy Resources, Inc., operates an oil refinery near Forest River, which flows into Grove Lake. Discharging oil from the refinery into the river can result in | penalties and damages. |
| Before being transported, hazardous waste generated by Perilous Fabrication, Inc., must be properly labeled and packaged under the Resource Conservation and Recovery Act by | Perilous Fabrication, Inc. |
| Hi-Yield Agriculture, Inc., makes a pesticide with a one-in-a-million risk to people of developing cancer from exposure. This substance must be | registered before it is sold. |
| Noxious, Inc., makes and sells pesticides. If a substance is identified as harmful and the harm is imminent, the Environmental Protection Agency can | conduct an inspection of Noxious’s plant. |
| Ultrahazard Removal & Disposal Corporation transports radioactive materials. Vincent, an Ultrahazard employee, is diagnosed with radiation sickness after exposure to the materials. Vincent’s suit against Ultrahazard to recover for the injury is known as | a toxic tort. |
| Organic Cheeses, Inc., Fine & Fresh Foods Company, and Healthy Whole Foods, Inc. organize together to exchange information and share advertising. This is an example of a | trade association. |
| Healthcare Device, Inc., has exclusive control over the market for its product. Healthcare Device’s market power is most likely | subject to further evaluation. |
| Global Services Corporation engages in trade practices that may violate antitrust law. The Federal Trade Commission has the power to act against unfair trade practices under | the Federal Trade Commission Act. |
| Bild-It-Rite Corporation is a public company that is preparing to issue securities that do not qualify for an exemption from registration. This means that Bild-It-Rite must | file a registration statement with the SEC. |
Created by:
kadystyn