The document outlines various legal principles including contract enforceability, negligence, and the rights related to negotiable instruments. It also addresses topics such as antitrust laws, administrative rules, and the obligations of parties in business agreements. Additionally, it discusses regulations pertaining to safety, employment discrimination, and consumer protection.

1. 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.

2. 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

3. 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

4. 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

5. 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.

6. 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.

7. 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