1. Digital Equipment, Inc., sells computer products. Which of the following may Digital's board of directors do without shareholder approval?
A- Amend the articles of incorporation.
B- Buy substantially all of the assets of another corporation.
C- Dissolve the corporation.
D- Sell substantially all of the assets of Digital.
2. Chavez is a manager of X Corporation. Another company asks for a recommendation about a former employee of X, Burke, who is now applying for a job. The reference is sent to the new potential employer, where it is received and read by the HR director. It is very negative, and truthful in most respects, but inaccurate to some degree about Burke's attendance record. Burke does not get the job and sues Chavez for the tort of defamation. The likely result of such a lawsuit will be:
A- Burke will lose since the recommendation was not published to more people at the new potential employer.
B- Burke will prevail since he has been falsely maligned in part in the reference.
C- Burke will prevail since Chavez interfered with Burke's livelihood.
D- Burke will lose since Chavez typically would be protected by a conditional or qualified privilege assuming that that Chavez did not act with malice or bad faith.
3. Omega, Inc. controls 80 percent of the market for telecommunications equipment in the southeastern United States. To show that Omega is monopolizing that market in violation of the Sherman Act requires proof of
A-only the possession of monopoly power in the relevant market. b.
B-only the willful acquisition or maintenance of monopoly power.
C-the possession of monopoly power in the relevant market and its willful acquisition or maintenance.
D-none of the above.
4. Before opening her new sports merchandise store, Kay places an ad in the newspaper showing cross-training shoes at certain prices. Within hours of opening for business, the store is sold out of some of the shoes. In this situation
A- Kay has made an offer to the people reading the ad.
B- Kay has made a contract with the people reading the ad.
C- Kay has made an invitation seeking offers.
D- Any customer who demands goods advertised and tenders the money is entitled to them.
5. Dan assigns to Evan a contract to buy a used car from Fran. To be valid, the assignment must
A-be in writing and be signed to Dan.
B-be supported by adequate consideration from Evan.
C-not be revocable by Dan.
D-not materially increase Fran's risk or duty.
6. Local Delivery Company and Regional Trucking, Inc., attempt to enter into a contract in electronic form. Under the Electronic Signatures in Global and National Commerce Act (E¬SIGN Act), because this contract is in electronic form, it
A -may be denied legal effect.
B-may not be denied legal effect.
C-will be limited to certain terms.
D-will not be enforced.
7. Carl continuing trespasses on Lisa's land by cutting across her property as a "short-cut" to the bus stop. Lisa asks Carl to stop doing this but Carl refuses saying he is really doing no damage or harm to the property by merely walking across it. Lisa's best legal remedy would be to seek what legal redress against Carl?
A- A degree of specific performance.
B- A lawsuit for money damages
C- An injunction
D- A quasi-contract.
8. Big Nuclear Energy Corporation commences a pro-nuclear advertising campaign to extol the benefits of safe nuclear energy. Vermont, the Green Mountain state, passes a law prohibiting the company from advertising in Vermont. The likely result of such a lawsuit would be:
A-The Vermont law would be struck down as a violation of the company's free speech rights under the First Amendment.
B-The law would be upheld since nuclear energy is known to be dangerous and Vermonters do not want to encourage the nuclear industry.
C-The law would be upheld since corporations do not have any First Amendment rights.
D- The law would be struck down since only the federal government and the Federal Trade Commission can regulate advertising in the United States.
9. To acquire the ownership of a strip of waterfront property by adverse possession, Glen must occupy the property exclusively, continuously, and peaceably for a specified period of time
A-in an open and adverse manner.
B-until the owner files suit.
C-without the owner's knowledge.
D-with the state's permission.
10. Beth offers to buy from Chris a used computer, with a monitor and printer, for $400. Chris says, "OK, but I must have $200 more for the monitor and printer." Chris has
A- accepted the offer.
B- made a counteroffer without rejecting the offer.
C- rejected the offer and made a counteroffer.
D- rejected the offer without making a counteroffer.