A business founder lets a lender believe she is a partner, attends the loan meeting, says nothing when introduced as an equal partner, and the lender extends credit in reliance on that representation. Which statement is...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
...toaster sues the retailer that sold it new in the ordinary course of business. The retailer argues it did not manufacture or know of the defect. Under strict products liability, which statement is most accurate? Strict...
Citations: Restatement products-liability principles
A contractor negligently cut power to a business district for six hours. A restaurant lost refrigerated food and had to close for dinner. A nearby accounting firm lost only the chance to finish work for clients that even...
Citations: Restatement negligence duty principles
...l partnership signs an ordinary supply contract for the partnership's business. Which statement best describes the partner's authority? This question tests the basic partner-agency rule. Revised Uniform Partnership Act s...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A town phases out adult businesses in a residential district after ten years, allowing existing lawful businesses to operate during the amortization period. What is the best general characterization? The reasonableness o...
Citations: Common-law and constitutional zoning principles
City H adopted an ordinance making it unlawful for any business to engage in "unfairly annoying commercial behavior" near a public market. The ordinance gives inspectors authority to issue penalties of up to $500,000 per...
Citations: Grayned v. City of Rockford, BMW of North America, Inc. v. Gore, State Farm Mutual Automobile Insurance Co. v. Campbell
City H adopted an ordinance making it unlawful for any business to engage in "unfairly annoying commercial behavior" near a public market. The ordinance gives inspectors authority to issue penalties of up to $500,000 per...
Citations: Grayned v. City of Rockford, BMW of North America, Inc. v. Gore, State Farm Mutual Automobile Insurance Co. v. Campbell
Lena and Marco launch a weekend catering business. They never file formation documents, and their written note says, "This is not a partnership; we are only testing a concept." Lena contributes kitchen equipment and mana...
Citations: Revised Uniform Partnership Act secs. 202-204, 401
...o did not record but immediately moved in, placed a sign with Buyer's business name on the property, and began renovations visible from the road. Seller then conveyed the land to Purchaser for value. Purchaser did not in...
Citations: Common-law real-property recording-act principles
A business broker agreed to represent a seller of a food truck route. Without telling the seller, the broker also agreed to help the buyer obtain financing for the same purchase and expected a referral fee from the buyer...
Citations: Restatement (Third) of Agency secs. 1.01, 8.01, 8.02, 8.03, 8.05, 8.08, 8.09
A business owner pays one person 10 percent of net profits to repay a loan, another 12 percent of lesson profits as compensation, and a third 25 percent of overall profits plus equal control over pricing and hiring. Whic...
Citations: Revised Uniform Partnership Act secs. 202-204, 401
A business owner tells a supplier that her purchasing manager handles inventory orders. The owner privately tells the manager not to buy more than $5,000 of goods per month. The manager signs a $7,500 ordinary inventory...
Citations: Restatement (Third) of Agency secs. 2.01-2.03, 4.01, 6.01-6.03, 7.03-7.08
A business owner testifies that a customer appeared angry and intoxicated during a meeting based on the owner's own observations of the customer's speech and movements. The owner also wants to testify that the customer h...
Citations: Federal Rule of Evidence 701, Federal Rule of Evidence 702
A buyer calls the seller's listed business number. A person answers, "Seller Auto Parts," discusses the buyer's pending order, gives the correct invoice number, and promises shipment. At trial, the buyer offers testimony...
Citations: Federal Rule of Evidence 901(b)(6)
A city ordinance makes it a misdemeanor to engage in "annoying business behavior" in a shopping district. The ordinance gives officers no examples or standards. Officers enforce it against some vendors who call out price...
Citations: Grayned v. City of Rockford
A city ordinance makes it a misdemeanor to engage in "annoying business behavior" in a shopping district. The ordinance gives officers no examples or standards. Officers enforce it against some vendors who call out price...
Citations: Grayned v. City of Rockford
A collector operates a storefront and online business buying and selling antique watches. She sells a rare watch to a casual buyer. The buyer later argues that she is a merchant under Article 2. Which statement is most a...
Citations: UCC section 2-104
A collector operates a storefront and online business buying and selling antique watches. She sells a rare watch to a casual buyer. The buyer later argues that she is a merchant under Article 2. Which statement is most a...
Citations: UCC section 2-104
A consultant in the business of supplying market data carelessly gives a client a false sales figure for use in a pending acquisition. The client reasonably relies and overpays. Which element best separates negligent mis...
Citations: Restatement misrepresentation principles
A corporation's shareholders want to end the business voluntarily and wind up after paying creditors. Which statement is most accurate? This question tests voluntary dissolution approval and winding up. Model Business Co...
Citations: Model Business Corporation Act secs. 11.01-11.07, 12.02, 13.01-13.31, 14.01-14.32, Revised Uniform Limited Liability Company Act secs. 701-707
...operly supported summary-judgment motion with deposition excerpts and business records. The plaintiff's opposition states that the complaint already alleges the defendant acted wrongfully and that a jury might believe th...
Citations: Fed. R. Civ. P. 56(c), Fed. R. Civ. P. 56(e)
...operly supported summary-judgment motion with deposition excerpts and business records. The plaintiff's opposition states that the complaint already alleges the defendant acted wrongfully and that a jury might believe th...
Citations: Fed. R. Civ. P. 56(c), Fed. R. Civ. P. 56(e)
A general partnership defaults on an ordinary business debt to a vendor. Which statement best describes general partner liability? This question tests personal liability of general partners for partnership obligations. R...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A partner in a partnership votes against expanding the business because the partner believes the expansion would increase personal workload without fair compensation. The partner discloses that concern and does not misle...
Citations: Model Business Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
USABarPrep Coach