Multiple choice
1. Home Products Company issues common stock for sale to the public. If Ira buys ten shares of the stock, he has a proportionate interest with regard to
control only.
earnings and net assets only.
control, earnings, and net assets.
none of the above.
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:
Burke will lose since the recommendation was not published to more people at the new potential employer.
Burke will prevail since he has been falsely maligned in part in the reference.
Burke will prevail since Chavez interfered with Burke’s livelihood.
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. Gamma Company agrees to sell software to Holly from Gamma’s Web site. To complete the deal, Holly clicks on a button that, with reference to certain stated terms, states, “I agree.” The parties have
a binding contract that does not include the terms.
a binding contract that includes only the terms to which Holly later agrees.
a binding contract that includes the terms.
no contract.
4. Jay is seeking to avoid performing a promise to pay Karen $150. Jay is claiming a lack of consideration on Karen’s part. Jay will win if he can show that
before Jay’s promise, Karen had already performed the requested act.
Karen’s only claim of consideration was the relinquishment of a legal right.
Karen’s asserted consideration is only worth $50.
the consideration to be performed by Karen will be performed by a third party.