BUSINESS LAW QUIZ REVIEW WOW

In​ 2000, the Internet Corporation for Assigned Names and Numbers​ (ICANN) expanded the number of domain names by introducing new​ ________ domains which identify​ ________.

generic​ top-level; businesses,​ professions, and other activities

Sometimes, a party registers a domain name of another​ party's trademarked name or a famous​ person's name. This is called​ ________.

cybersquatting

The​ ________ is a federal statute that permits trademark owners and famous persons to recover domain names that use their names where the domain name has been registered by another person in bad faith

ACPA

The Anticybersquatting Consumer Protection Act​ (ACPA) has two fundamental​ requirements: 1) the name must be​ _____; and​ 2) the domain name must have been registered in​ ________

​famous; bad faith

A transaction where Dall​ Computers, Inc. sells 10 computers to the Downy Company would involve Article​ ________ of the UCC

2

A(n) ________ consists of the passing of title of goods from a seller to a buyer for a price

sale

________ are defined as​ ________ items that are movable at the time of their sale.

Goods; tangible

Simons, Inc. sells a copy machine to​ Howey, Inc. which comes with a​ five-year servicing agreement costing​ $100 per month for unlimited repairs. This sale is known as​ a(n) ________ transaction.

hybrid

The term​ ________ is often used in the UCC as a replacement for the words writing or written

record

The​ ________ rule says that a merchant who makes an offer to​ buy, sell, or lease goods and assures the other party in a separate writing that the offer will be held open cannot revoke the offer for the time stated​ or, if no time is​ stated, for a reasonable time.

firm offer

The​ ________ rule states that when a sales or lease contract is evidenced by a writing that is intended to be a final expression of the​ parties' agreement or a confirmatory​ memorandum, the terms of the writing may not be contradicted by evidence of a prior oral or written agreement or a contemporaneous oral agreement.

parole evidence

If a contract between​ Fisher, Inc.,​ seller, and Rudolph​ Co., buyer, specifies​ "No-arrival, no-sale," and the goods are being shipped to Houston via the Titanic​, ________ bears the risk of loss during​ transportation, and​ ________ bears the expense of shipping.

Fisher, Inc.; also

________ of goods is distinguishing the goods named in a contract from the​ seller's or​ lessor's other goods

Identification

If the contract is​ silent, when does the identification of unborn stock animals​ occur?

when they are conceived

In a shipment​ contract, the buyer receives title when​ ________.

the seller delivers the goods to the​ carrier's hands

A document of title is an actual piece of​ paper, such as a​ ________ or​ a(n) ____, which is required in some transactions of pickup and delivery.

warehouse​ receipt; bill of lading

The shipping term​ ________ requires the seller to arrange to ship the goods and put the goods in the​ carrier's possession. The buyer bears the shipping expense and risk of loss while the goods are in transit.

F.O.B. point of shipment

The shipping term​ ________ requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination

​ex-ship (from the carrying​ vessel)

On June​ 1, BEH Grocery orders 100 boxes of cereal from​ Post, Inc. The contract provides that BEH will pick them up from the warehouse belonging to​ Post, Inc., a​ merchant, on June 10.​ Post, Inc. delivers a document of title on June 5 to BEH. If the goods are destroyed at the Post Inc. warehouse on June​ 6, who bears the risk of​ loss?

Title passed to BEH on June​ 5, so BEH would bear the risk of loss

If a contract between​ Fisher, Inc.,​ seller, and Rudolph​ Co., buyer, specifies​ "C.I.F. Titanic​, New​ York," and the goods are being shipped to​ Houston, ________ bears the risk of loss​ ________.

Fisher, Inc.; until it delivers the goods to the Titanic

A​ ________ contract requires the seller to deliver goods conforming to the contract to a carrier.

shipment

A​ ________ contract requires the seller to deliver conforming goods to a specific destination.

destination

A(n) ________ is a holder of goods who is not a seller or a buyer.

bailee

When does the buyer begin to bear the risk of loss in a point of shipment​ contract?

dxuring transportation

Fisher, Inc.,​ seller, and Rudolph​ Co., buyer, who are both​ merchants, enter into a contract where Rudolph Co. will purchase​ 1,000 chess sets. If a contract between​ Fisher, Inc.,​ seller, Rudolph​ Co., buyer, specifies the Rudolph Co. will pick up the chess sets at a port in​ Houston, who bears the risk of​ loss?

The​ Fisher, Inc. bears the risk until the goods are picked up.

________ law placed the risk of loss to goods on the party who held title to the goods.

Common

BEH Grocery orders 100 boxes of cereal from​ Post, Inc. on a shipment contract.​ Post, Inc. does not pack the boxes carefully and they arrive completely smashed. Who bears this​ loss?

​Post, Inc. bears the risk of loss because the goods being delivered were nonconforming goods.

BEH Grocery orders 100 boxes of cereal from​ Post, Inc. on a delivery contract.​ Post, Inc. ships the 100 boxes of cereal but while they are being delivered BEH changes its mind and says it no longer want the cereal and will not accept them. The boxes of cereal are destroyed in transit. Who bears this​ loss?

BEH breached the sales contract by refusing to accept the conforming goods and so they must bear the loss.

In a​ ________ contract, the seller delivers goods to a buyer with the understanding that the buyer may return the goods if they are not used or resold within a stated or reasonable period of time.

Sale or return

Esmeralda takes her luxury purses to the Second Chance Shop for it to sell on her behalf. This is known as​ a(n) ________.

Consignment

In the case of an ordinary​ lease, if the lessor is a​ merchant, the risk of loss passes to the lessee on the​ ________ of the goods.

lessee's receipt

Dr. Chiang leases dental equipment for her dental practice from Medical​ Equipment, Inc. The risk of loss passes to Dr. Chiang on the​ ________ of the goods

receipt

Which of the following is NOT a party to a finance​ lease?

carrier

According to the​ ________ rule, when an owner entrusts the possession of his or her goods to a merchant who deals in goods of that​ kind, the merchant has the power to transfer all rights​ (including title) to the goods to a buyer in the ordinary course of business.

entrustment

Circuit Town Stores purchases 20 TVs from​ Jirí, who stole them off of a delivery truck heading to​ Wal-Town, which had already paid for them. Circuit Town holds​ _____ title to the TVs and​ _____.

void; Wal-Town can reclaim the goods

Caroline purchases a Mayflower washing machine that has a sticker on the back indicating that if the washing machine breaks down within the first five​ years, that Mayflower will repair it at no cost. This is known as​ ________

an express warranty

Caroline purchases a Teslac washing machine that has a sticker on the back indicating that if the washing machine breaks down within the first five​ years, that Teslac will repair it at no cost. If the machine breaks down during the first year and Teslac refuses to make the​ repairs, Caroline is entitled to​ ________.

compensatory damages

Which of the following is one of the most common forms of implied​ warranties?

mplied warranty of merchantability

Which test has a majority of states adopted to determine the merchantability of food​ products?

Consumer expectation

Under the​ ________ test, the court asks what a consumer would expect to find or not find in food or drink that he or she consumes.

consumer expectation

The UCC incorporates the implied warranty of fitness for human consumption within​ ________.

the implied warranty of merchantability

A warranty that covers the costs of parts but not the labor to fix a defective product is​ a(n) ________ warranty.

limited

The​ ________ stipulates that sellers or lessors who make​ _______ warranties related to consumer products are forbidden from disclaiming or modifying the implied warranties of merchantability and fitness for a particular purpose.

Magnuson-Moss Warranty​ Act; express written

Bad Truck Dealership sells a truck that it has stolen from another dealership down this street. They have breached the​ ________.

warranty of good title

With the​ ________, the seller warrants that the goods sold are delivered free from any​ third-party security​ interests, liens, or encumbrances that are unknown to the buyer.

warranty of no security interests

With the warranty of​ ________, the lessor warrants that no person holds a claim or an interest in the goods that arose from an act or omission of the lessor that will interfere with the​ lessee's enjoyment of his or her leasehold interest.

quiet possession

Juno hires​ real-estate agent Mauricio to find her a house. Juno is​ a(n) ________

principal

Juno hires​ real-estate agent Mauricio to find her a house. Mauricio is​ a(n) ________.

agent

A​ principal-_____ relationship is formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf.

agent

The Sabrina Company hires Stanley to do accounting​ work, but does not authorize him to sign​ contracts, Stanley is​ a(n) ________. The Sabrina company also hires​ Jim, who is authorized to sign contracts on the Sabrina​ Company's behalf. Jim is​ a(n) ________.

​employee; independent contracto

________ agency is the most common form of agency.

express

A power of attorney is an​ ________ agency agreement that is often used to give​ a(n) ________ the power to sign legal documents on behalf of the​ ________.

express; agent; principal

Olivia, who is moving​ abroad, gives her sister broad powers to act in matters on her behalf while she is outside the United​ States, this is known as a​ ________ power of attorney.

general

With​ a(n) ________ power of​ attorney, a principal confers powers on an agent to act in specified matters on the​ principal's behalf.

special

In many​ situations, a principal and an agent do not expressly create an agency.​ Instead, the agency is inferred from the conduct of the parties. This type of agency is referred to as​ a(n) ________ agency

implied

Olivia signs a document giving her sister the authority to sign any documents necessary to list her house for sale while she is on vacation. This is known as​ a(n) ________.

special power of attorney

Olivia signs a document giving her sister the authority to act on her behalf while she undergoes surgery. This is known as​ a(n) ________.

durable power of attorney

An apparent agency is also known as an agency by​ ________

estoppel

Whose actions create an apparent​ agency?

the​ principal's

Siri, who is driving her​ automobile, is injured when another driver negligently causes an automobile accident. Siri hires Janice​ Hill, a​ lawyer, to represent her in the lawsuit. If the lawyer does not win or settle the​ lawsuit, he gets paid nothing. The customary fee for personal injury cases is​ 33%. Janice can recover​ 33% of the amount she wins on behalf of Siri because of the duty to​ ________.

compensate

Which of the following is a duty an agent owes to a​ principal?

performance

An agency terminates by​ ________ of performance because a situation arises that makes the fulfillment of the agency impossible.

impossibility

Which of the following is true about termination of agency by operation of​ law?

If an agency terminates by operation of​ law, there is no duty to notify third parties about the termination.

Notice that an agency has terminated that has been placed in the newspaper is an example of​ ___________.

constructive

The duty of​ ________ is a fiduciary duty owed by an agent not to act adversely to the interests of the principal.

loyalty

​Edwina, a business​ broker, is hired by Big Web to sell its website designing business.​ Edwina's friend Rogelio hears about it and tells Edwina that if she can get the price of the business below​ $75,000, he will buy it and pay Edwina a small commission.​ Edwina, without mentioning the commission she will receive from​ Rogelio, gets Big Web to lower their price. If Edwina closes the deal and collects a commission from both​ parties, she has engaged in​ ________ agency and violated the​ ________.

dual; duty of loyalty

Penny is a real estate agent who owns a piece of property she is having difficulty selling. Howie and Bernie employ Penny as their real estate agent to find them a house. If Penny sells them her property without disclosing that she owns​ it, this is a violation of the duty of loyalty known as​ ________.

dealing

Under the​ ________ rule, a principal is generally​ ________ for injuries caused by its agents and employees while they are on their way to or from work

coming and​ going; not liable

Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. In this​ case, the agent is on a​ ________, and most jurisdictions hold​ ________ liable if the agent injures someone while on such a mission.

​dual-purpose mission; both the principal and the agent

The doctrine of​ ________ rests on the principle that if someone expects to derive certain benefits from acting through​ others, that person should also bear the liability for injuries caused to third persons by the negligent conduct of an agent who is acting within his or her scope of employment.

Negligence

Benji asks​ Jerry, who works for​ him, to drop off the mail at the post office on his way home. If Jerry negligently causes an accident on the way to the post​ office, he is considered to be on a​ ________, and most jurisdictions will hold​ ________ liable for the injuries.

dual-purpose mission; both the principal and the agent

Under the​ ________ test, if the​ agent's motivation for committing an intentional tort is to promote the​ ________ business, the principal is liable for any injury caused by the tort.

Motivation; principal’s

Under the​ ________ test, if an agent commits an intentional tort within a​ work-related time or

spacelong dashfor

​example, during working hours or on the​ principal's

premiseslong dashthe

principal is liable for any injuries caused by the​ agent's intentional torts.

work related

Eloise is contacted by Henry Dinks regarding her antique armoire telling her he is interested in purchasing it for​ $10,000 on behalf of his employer. In​ fact, Henry is acting on behalf of the royal family. Henry is​ a(n) ________ agent.

partially disclosed

Universal Company wants to open a new theme park in Chicago but first needs to acquire land for the park. Universal employs Javon Arnold as an agent to work on its behalf to acquire the needed​ property, with an express agreement that the agent will not disclose the existence of the agency to a​ third-party seller. If Jackie​ Knox, who owns property in​ Chicago, agrees to sell the needed land and the agent signs his name​ "Javon Arnold,"​ ________.

both Javon and Universal are liable on the contract

Universal Company wants to open a new theme park in Chicago but first needs to acquire land for the park. Universal employs Javon Arnold as an agent to work on its behalf to acquire the needed property. If Jackie​ Knox, who owns property in​ Chicago, agrees to sell the needed land and the agent signs his name​ "Javon Arnold, agent for​ Universal," ________.

only Universal is liable on the contract

Universal Company wants to open a new theme park in Chicago but first needs to acquire land for the park. Universal employs Javon Arnold as an agent to work on its behalf to acquire the needed property. If Jackie​ Knox, who owns property in​ Chicago, agrees to sell the needed land and the agent signs his name​ "Javon Arnold,​ agent," ________.

both Javon and Universal are liable on the contract

Universal Company wants to open a new theme park in Chicago but first needs to acquire land for the park. Universal employs Javon Arnold as an agent to work on its behalf to acquire the needed property. Universal tell Javon that the maximum it will pay for a​ 1-acre lot is​ $1 million. If Jackie​ Knox, who owns property in​ Chicago, agrees to sell the needed land for​ $1.5 million and the agent signs his name​ "Javon Arnold, agent for​ Universal," ________.

only Javon is liable on the contract

Universal Company wants to open a new theme park in Chicago but first needs to acquire land for the park. Universal employs Javon Arnold as an agent to work on its behalf to acquire the needed property. Universal tell Javon that the maximum it will pay for a​ 1-acre lot is​ $1 million. If Jackie​ Knox, who owns property in​ Chicago, agrees to sell the needed land for​ $1.5 million and the agent signs his name​ "Javon Arnold, agent for​ Universal," ________.

only Universal is liable on the contract if Universal ratified the contract

Rogerio hires​ Bruno, an independent​ contractor, to work in his mine. Using​ explosives, Bruno extends the mine deeper into the mountain and negligently injures one of the other miners. Who is​ liable?

Bruno and Rogerio

Personal property is sometimes referred to as​ ________ or​ ________

goods; chattels

A tree that is part of a forest is​ ________ property; a tree that is cut down is​ ________ property.

real; personal

Juan signs a will which leaves all of his property to his​ wife, Matilda. Matilda would be the​ ________ of the will.

beneficiary

]Jaqueline's grandmother gives her a garnet ring on​ Mary's eighteenth birthday which belonged to​ Jacquline's mother. This is known as a gift​ ________.

inter vivos

​________ occurs when the value of personal property increases because it is added to or improved by natural or manufactured means.

Accession

Hospitality​ Hotel, Inc., operates a hotel located in a state that has an​ innkeepers' statute that​ (1) eliminates a​ hotel's liability for​ guests' property not placed in the safe located at the​ hotel's registration desk and​ (2) limits a​ hotel's liability to​ $500 for any​ guest's property stored in the​ hotel's safe. The hotel has proper notices posted at the registration counter and in​ guests' rooms, notifying them of these limitations on liability.​ Gion, a guest at the​ hotel, has the hotel place his expensive jewelry and cameras in the safe when he temporarily leaves the hotel. When Gion​ returns, the hotel informs him that through no fault of their​ own, his jewelry and cameras have been stolen. Which of the following is​ true?

Because of the​ innkeepers' statute, the hotel is liable to Gion for​ $500

Hospitality​ Hotel, Inc., operates a hotel located in a state that has an​ innkeepers' statute that​ (1) eliminates a​ hotel's liability for​ guests' property not placed in the safe located at the​ hotel's registration desk and​ (2) limits a​ hotel's liability to​ $500 for any​ guest's property stored in the​ hotel's safe. The hotel has proper notices posted at the registration counter and in​ guests' rooms, notifying them of these limitations on liability.​ Gion, a guest at the​ hotel, leaves expensive jewelry and cameras in his room when he temporarily leaves the hotel. When Gion​ returns, he finds that his jewelry and cameras have been stolen. Which of the following is​ true?

Because of the​ innkeepers' statute, the hotel is not liable for​ Gion's loss.

ABC Company delivers goods to​ Lowell, Inc., a commercial warehouser for storage. A fee is charged for this service. ABC Company receives the benefit of having its goods​ stored, and​ Lowell, Inc. receives the benefit of being paid compensation for storing the goods. In this​ example, Lowell, Inc. owes a​ ________.

duty of reasonable care

Which of the following is a type of ordinary​ bailment?

bailment for the sole benefit of the bailor

Jacinta permits her​ neighbor, Jock, to park his motorcycle in her garage while he is out of town in exchange for​ $50. When Jock​ returns, he discovers that his motorcycle has been stolen. Because this was​ a(n) _____, and Jacinta kept the garage locked the entire time Jock was​ away, Jacinta​ _____ for the loss of the motorcycle.

bailment for the mutual benefit of the bailor or​ bailee; is not liable

Jacinta permits her​ neighbor, Jock, to park his motorcycle in her garage for free while he is out of town. When Jock​ returns, he discovers that his motorcycle has been stolen. Because this was​ a(n) _____, and Jacinta kept the garage locked the entire time Jock was​ away, Jacinta​ _____ for the loss of the motorcycle.

bailment for the sole benefit of the​ bailor; is not liable

________ generally:​ (1) establish(es) land use districts within the​ municipality; (2)​ restrict(s) the​ height, size, and location of buildings on a building​ site; and​ (3) establish(es) aesthetic requirements or limitations for the exterior of buildings.

zoning

Shen asks Billy to watch his laptop while he goes to the bathroom. This would be an example of​ a(n) ________ bailment.

gratuitous

If​ Alexi, a​ commuter, finds a smartphone on the floor of a​ light-rail station in​ Seattle, the smartphone is considered​ _____ property. If there is identification of the owner on the smartphone​ (e.g., name,​ address, telephone​ number), Alexi​ _____.

​lost; owes a duty to contact the rightful owner and give back the smartphone

Hospitality​ Hotel, Inc., operates a hotel located in a state that has an​ innkeepers' statute that​ (1) eliminates a​ hotel's liability for​ guests' property not placed in the safe located at the​ hotel's registration desk and​ (2) limits a​ hotel's liability to​ $500 for any​ guest's property stored in the​ hotel's safe. The hotel has proper notices posted at the registration counter and in​ guests' rooms, notifying them of these limitations on liability.​ Gion, a guest at the​ hotel, leaves expensive jewelry and cameras in his room when he temporarily leaves the hotel. When Gion​ returns, he finds that his jewelry and cameras have been stolen. Which of the following is​ true?

.

Because of the​ innkeepers' statute, the hotel is not liable for​ Gion's loss.