1. Bill's Beer is brewed in Arkansas. The brewery was sold to another company which stopped payment on a contract with Yakima Hops (Bill's hops supplier). Hops had just shipped a large quantity of hops to Bill's. In response to the new owner's action, Hops may:

a. must wait until Bill's rejects the goods before it can do anything

b. elect to cancel the contract, resell the goods, or withhold or stop deliveries

c. view the contract as breached, stop delivery of the goods if not yet received by the buyer, and sue for damages

d. view the contract as breached, stop delivery of the goods if not yet received by the buyer, and sue for damages orelect to cancel the contract, resell the goods, or withhold or stop deliveries

e. do nothing because its client no longer exists

2. Under some circumstances, courts do not require consideration for a promise to be enforced. The doctrine used by the courts to bind a promisor is called detrimental reliance or:

a. promissory estoppel

b. none of the other choices

c. all of the other choices

d. revocation

e. restitution

3. Which of the following is not true about corporate directors?

a. directors must always act to preserve the corporation

b. directors are subject to a fiduciary duty of loyalty

c. all of the other choices are true

d. directors may be removed from office for breach of duty

e. the initial board is often specified in the articles of incorporation