Essentials of Business Law and The Legal Environment 12th Edition

Which of the following would ordinarily NOT be considered a security under the federal securities laws? a. Bonds. b. Stocks. c. Investments in limited partnerships. d. An investment in a nonprofit venture based on one's own entrepreneurial efforts. Answer: d Answer: d Answer: d Shareholders normally have the right to do all but which one of the following? a.

Community property does not include a ring owned by the wife prior to the marriage. a. True b. False Answer: True Answer: True Answer: True Specific lender usury statutes rather than the general usury statute generally apply to real estate mortgages and small consumer loans. a. True b. False Answer: True Answer: True Answer: True In the federal system, appeals from the

Which amendment prohibits the government from depriving any person of life, liberty, or property without due process of law? a. First. b. Fifth. c. Fourteenth. d. Both (b) and (c). e. All of these. Answer: d Answer: d Answer: d A voting trust permits a concentration of corporate control in one or more persons. a. True b. False Answer: True Answer: True Answer: True A

Few obstacles to recovery in warranty cases present serious problems to plaintiffs in strict liability actions brought pursuant to Section 402A because this section was drafted largely to avoid such obstacles. a. True b. False Answer: True Answer: True Answer: True Since 1976, the Food and Drug Administration has had the increased authority to: a. subject medical devices

Dan, an agent for Ramona, sees what he thinks is a good deal for Ramona. Without asking whether he has authority to negotiate the deal, Dan enters into a contract on Ramona's behalf. Ramona says later that she isn't interested. Is Ramona liable on the contract? Is Dan liable on

An indenture is not a debt agreement. a. True b. False Answer: False Answer: False Answer: False The purpose of Article 2 of the UCC is to modernize, clarify, simplify, and make uniform the law of sales. a. True b. False Answer: True Answer: True Answer: True Apparent authority is not actual authority. a. True b. False Answer: True Answer: True Answer: True In order for a full

A defense that can only be asserted by the principal debtor is called a: a. real defense. b. subrogated defense. c. personal defense. d. joint defense. Answer: c Answer: c Answer: c Harvard philosopher, Robert Nozick, stressed liberty, not justice, as the most important obligation that society owes its members. a. True b. False Answer: True Answer: True Answer: True The Magnuson-Moss Warranty Act

Grandfather conveyed to Erin the right to the family farm after her grandmother dies. This is called: a. a possibility of a reverter. b. a reversionary interest. c. a vested remainder. d. a contingent remainder. Answer: c Answer: c Answer: c Yukon Corporation purchases 1,000 shares of its own stock from Jones at a price of $50 a share.

The Wal-Mart Stores, Inc. v. Samara Brothers, Inc. case involved which of the following? a. Infringement of unregistered trade dress. b. Infringement of a registered symbol. c. Use of a certification mark. d. Use of a collective mark. Answer: a Answer: a Answer: a Generally, whether or not the parties deal at arm's length does not affect whether

Every indorsement is either blank or special. a. True b. False Answer: True Answer: True Answer: True All methods of alternative dispute resolution, such as arbitration, mediation, conciliation, and negotiation, involve a third party to help resolve the dispute. a. True b. False Answer: False Answer: False Answer: False Regarding drug and alcohol testing of employees by employers: a. the NLRB makes it

Which of the following is the basic governing document of a corporation? a. A subscription. b. A charter, after filing. c. The set of bylaws. d. A certificate of authority. Answer: b Answer: b Answer: b A patent would be appropriate in all but which one of the following cases? a. The discovery of a medical use for moon

The word "truck" cannot be a trademark for trucks, although it could be a trademark for a new brand of designer jeans. a. True b. False Answer: True Answer: True Answer: True Assume a foreign nation has seized all of the property of an American corporation. The nation has assumed ownership of the property for a public

Which of the following may be used to redress the ultra vires acts committed by a corporation? a. Proceeding by shareholders for an injunction. b. Suit by the corporation or shareholders derivatively against present or former directors or officers for commission of the acts. c. A proceeding by the attorney general of the

Bob rented a lawn mower from Scott Rentals. The lawn mower wheel was loose when Bob picked up the mower. When he began to use it, the wheel fell off, causing the mower to tip over onto his foot. Under what theory can Bob hold Scott liable for his injuries? a.

Which of the following is untrue with regard to the interpretation of contracts? a. Express terms prevail over course of performance, and course of performance prevails over course of dealing. b. Technical terms will always be given technical meaning and language that has a commonly accepted meaning is always interpreted in accordance

The Federal Trade Commission Act allows the FTC to: a. determine what constitutes deceptive advertising practices. b. prohibit all advertising in certain professions. c. require advertisers to contribute to a fund to reimburse injured consumers. d. require the independent testing of consumer goods. Answer: a Answer: a Answer: a George has been declared incompetent by the court and

The UCC defines a debtors "rights in collateral in Article a. True b. False Answer: FalseDIFFICULTY: Moderate Answer: FalseDIFFICULTY: Moderate Answer: False DIFFICULTY: Moderate Which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. A collateral promise made to the creditor. b. A promise, the leading object of

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code. a. True b. False Answer: False Answer: False Answer: False Steven owes Theresa $100 for a used computer which he bought last year at Theresa's garage sale. The two agree that the debt can be paid by Steven's shoveling Theresa's

Upon dissolution of a partnership, all authority of a partner to act on behalf of the partnership terminates. a. True b. False Answer: False Answer: False Answer: False In relation to the Takings Clause, public use has been held to be synonymous with public purpose. a. True b. False Answer: True Answer: True Answer: True The principal has the duty to provide

The tort of invasion of privacy actually consists of: a. unreasonable intrusion into the seclusion of another. b. unreasonable public disclosure of private facts. c. unreasonable publicity that places another in a false light. d. All of these. Answer: d Answer: d Answer: d Carolyn, a cashier at Tops Supermarkets, may cash checks for up to $20 over

Which of the following activities is/are regulated by the federal government through its exercise of the commerce power? a. Commercial speech. b. Civil rights in employment. c. Shoplifting. d. All of these. e. None of these. Answer: b Answer: b Answer: b Section 402A provides that liability exists only if the product reaches "the user or consumer without substantial

To whom does an accountant have potential liability? a. To his client only. b. To an intended third party beneficiary. c. To a foreseen user of the accountant's work. d. All of these. Answer: d Answer: d Answer: d The remedy for a director's breach of fiduciary duty is: a. a suit in equity by the corporation. b. a derivative

Carlie contracted to purchase an entertainment center while she was 16. She can ratify the contract the following year. a. True b. False Answer: False Answer: False Answer: False A quorum for the United States Supreme Court consists of any three justices. a. True b. False Answer: False Answer: False Answer: False What remedies are available for the Federal Trade Commission? a. Affirmative

A __________ is a law establishing a maximum rate of permissible interest for which a lender and borrower of money may contract. a. wager b. usury statute c. Sunday statute d. None of these. Answer: b Answer: b Answer: b The final arbiter as to the constitutionality of laws passed by Congress or by the legislature of a

Stare decisis has no application in a dual court system. a. True b. False Answer: False Answer: False Answer: False Possession is available as a means of perfecting a security interest in accounts and letter-of-credit rights. a. True b. False Answer: False Answer: False Answer: False The validity of zoning is based on the police power reserved to the states. a. True b.

An agreement for the purchase of an illegal substance will be enforced by the courts if all other elements of the contract are present. a. True b. False Answer: False Answer: False Answer: False "Goods" for purposes of the Code are essentially defined as tangible, movable, personal property. a. True b. False Answer: True Answer: True Answer: True The Code provides an exception

Like domestic law, international law can be easily enforced, because international courts have compulsory jurisdiction. a. True b. False Answer: False Answer: False Answer: False If a person with a mental condition that impairs her ability to act in a reasonable manner enters a contract that is grossly unfair, the contract is voidable. a. True b. False Answer: True Answer: True Answer:

Landview Appliances sells a stove to Evan for his home. The contract of sale excludes liability for consequential damages. When Evan turns on the stove, it catches fire, burning Evan severely. Evan cannot recover for his injuries because of the exclusion of damages clause. a. True b. False Answer: False Answer: False Answer: False The "discovery"

Rorzex, Inc. entered into a contract with Denzil under the terms of which Denzil would receive $20,000 if he stole trade secrets from the leading competitor of Rorzex. Denzil performed his end of the agreement by delivering the trade secrets. Rorzex now refuses to pay Denzil for his services. Denzil: a.

Edward is hired to manage Fred's business. Which of the following is untrue regarding Edward's authority? a. Edward has authority to sell a used cash register when he buys a new computerized checkout system for the store. b. Edward has authority to send bills to customers and to accept payments on behalf

The __________ precludes imposing liability on directors and officers for honest mistakes in judgment if they act with due care, in good faith, and in a manner reasonably believed to be in the best interests of the corporation. a. duty of diligence. b. duty of obedience. c. business judgment rule. d. None of these

Defenses of absolute, conditional, and constitutional privilege apply to defamation and also to publication of any matter that is an invasion of privacy. a. True b. False Answer: True Answer: True Answer: True Federal registration of a mark under the Lanham Act: a. permits the registrant to use the federal courts to enforce the mark. b. is required

By law, bystanders are always required to help others in peril. a. True b. False Answer: False Answer: False Answer: False In 1992, the SEC issued new rules establishing an integrated registration and reporting system for small business issuers. a. True b. False Answer: True Answer: True Answer: True Which of the following is untrue about a corporation's ratification of an act

The president of Hi-Glow Cosmetics sends his top chemist to Hi-Glow's competitor's labs to steal its formula for shiny lipstick. The chemist gets caught and is sent to jail. Can Hi-Glow be found to be criminally liable? a. Yes, under the doctrine of ultra vires. b. Yes, since the president authorized

A partner has implied authority to hire and fire employees whose services are necessary to carry on the partnership business. a. True b. False Answer: True Answer: True Answer: True Almost all jurisdictions require that: a. express trusts of real property be in writing. b. trusts have at least four witnesses. c. an inter vivos trust have at least two

The Dodd-Frank Act amends the 1933 and 1934 Acts to require knowledge as the mental state required for the SEC to bring aiding and abetting cases. a. True b. False Answer: False Answer: False Answer: False When delivery is to be made without moving the goods, unless otherwise agreed, title passes: a. at the time and place

Which of the following is NOT a duty of a collecting bank in the collection process? a. Duty of care. b. Duty to act in a timely manner. c. Duty to honor a valid stop payment order. d. Duty to honor a restrictive endorsement. Answer: c Answer: c Answer: c After an agency terminates, the agent is free

Lawsuits based on the commercial activities of a foreign state conducted in the U.S. are subject to the jurisdiction of state or federal courts in the U.S. a. True b. False Answer: True Answer: True Answer: True The Revised Model Act would permit the directors to avoid a shareholder vote for which of the following amendments

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as: a. mutual assent. b. consideration. c. legality of object. d. contractual capacity. Answer: b Answer: b Answer: b Al, an accountant, has a tax service and accounting business in

Willton Bros. obtains from Marbowe Manufacturing a line of credit of $100,000, of which Willton initially uses $27,000 for purchase of inventory. Marbowe may only have a security interest in the inventory that covers the initial $27,000 advance. a. True b. False Answer: False Answer: False Answer: False Discuss which of the social ethics theories listed below

The definition of price-fixing includes agreements that may, among other things: a. depress prices. b. stabilize prices. c. raise prices. d. All of these. Answer: d Answer: d Answer: d A type of insurance in which the insured and the insurer share a risk of loss due to fire is: a. co-insurance. b. non-forfeiture insurance. c. no-fault insurance. d. reinsurance. Answer: a Answer: a Answer:

Whether an agency relationship has been created is determined by using a subjective test. a. True b. False Answer: False Answer: False Answer: False Mark (age 16) appoints Joe (age 21) as his agent to purchase a digital camcorder from Electronic World. The transaction is: a. void because Mark is a minor. b. voidable by Electronic World because

The 2010 amendments to the Federal Organizational Corporate Sentencing Guidelines restricted the availability of reduced sentencing for corporations having effective compliance and ethics programs and meeting additional requirements. a. True b. False Answer: False Answer: False Answer: False In 1990, Congress enacted the Administrative Dispute Resolution Act to require agencies to use alternative dispute resolution. a. True b.

As the result of a seller's breach, a buyer may ask for incidental damages. Incidental damages include costs incurred in: a. storing goods in a warehouse. b. making calls to obtain replacement goods. c. inspecting the goods. d. All of these. Answer: d Answer: d Answer: d The 1994 amendments allow the creditors to elect a trustee in

Garnett, who was driving too fast for conditions, collided with a truck carrying explosives. The truck was unmarked, so Garnett had no way of knowing what it contained. The collision caused an explosion, which shattered glass in a building a block away. The glass injured Ida, who was working inside

Andrew agreed to exchange something clearly without value to enter a contract with Milt. The contract will not fail for lack of consideration because, if the parties agree to the exchange, the courts will not be concerned about whether the consideration is "adequate. a. True b. False Answer: False Answer: False Answer: False Which of the

Bess, Ray, and Irwin inherited 48 acres of land, which they own as tenants in common. If Bess decides she wants to live on a portion of the land, in order to get clear title to that portion: a. Bess may request that the land be partitioned, which would change her,

The modern approach follows the common law rule in holding that a corporation cannot commit a criminal act. a. True b. False Answer: False Answer: False Answer: False Which of the following duties would not be delegable? a. John has a contractual duty to pay Isaac $50. b. Karl has a contractual duty to deliver 50 bushels of corn

NAFTA establishes a free trade area between the United States and Mexico but not with Canada. a. True b. False Answer: False Answer: False Answer: False Section 14(e) of the Securities Act of 1934 makes it unlawful for any person to: a. make any untrue statement of material fact in connection with any tender offer, even if the

The exercise of the power to avoid a contract is known as: a. ratification. b. disaffirmance. c. ab initio. d. restitution. Answer: b Answer: b Answer: b Maximum rates of interest that are permitted under usury statutes are uniform from state to state. a. True b. False Answer: False Answer: False Answer: False All of the following are true of promoters of a

A long-arm statute allows a state to obtain jurisdiction over a nonresident defendant when the nonresident defendant has sufficient contacts with the state. a. True b. False Answer: True Answer: True Answer: True In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must

The board of directors of a corporation: a. determines the capital structure and financial policy of the corporation. b. receives no salaries for services, although directors may receive a fee for attending board meetings. c. has the power to bind the corporation when acting as a unit or individually. d. All of these are

An agent will not be authorized to act for a principal unless he receives some consideration for the task. a. True b. False Answer: False Answer: False Answer: False Contractual incapacity excuses a minor from an obligation to pay for necessaries. a. True b. False Answer: False Answer: False Answer: False If an agency is gratuitous, the principal ordinarily may revoke it

A depositary bank is any bank handling an item for payment. a. True b. False Answer: False Answer: False Answer: False Lucille bought a new lawn mower on sale at a local discount store. The mower did not come with an instruction book nor did it have warning labels placed near dangerous parts of the mower.

Testamentary capacity refers to: a. the age of the testator. b. the same capacity as required to contract. c. the ability to understand the nature and extent of one's property, to appreciate the natural objects of one's bounty, and the ability to formulate an orderly plan of disposition. d. the influence of others over

Bart sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11 a.m. on Tuesday, Carla delivers an acceptance to Speedy Mail-to-You Express, Inc., but due to their error, the letter is not sent out by the company until Wednesday at 8 a.m. At what

Under the general rule of the Third Restatement, death of a principal terminates all authority of an agent, including apparent authority, even though no notice is given to third parties. a. True b. False Answer: False Answer: False Answer: False Brian makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one

Marilyn read an ad in the school newspaper offering a $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way.

In general, an undisclosed principal and the third party to a contract are contractually bound if the agent acts within the scope of his actual authority in making the contract. a. True b. False Answer: True Answer: True Answer: True Neal is the young, likable, optimistic, and generous son of a prominent public official. He has

Judicial review is the process by which courts review governmental action to determine whether such actions conform to the U.S. Constitution. a. True b. False Answer: True Answer: True Answer: True Death or insanity of either the offeror or the offeree ordinarily terminates the offer. a. True b. False Answer: True Answer: True Answer: True The courts readily enforce a covenant not

Two years of nonuse raises a presumption of abandonment and loss of a federally protected trademark. a. True b. False Answer: False Answer: False Answer: False The Family and Medical Leave Act: a. applies to private employers with 50 or more employees. b. does not apply to governmental employers. c. allows, during a twelve-month period, up to sixteen weeks

An act that is not wrongful or unfair may constitute duress. a. True b. False Answer: False Answer: False Answer: False Checks, when accepted, are said to be certified. a. True b. False Answer: True Answer: True Answer: True The LMRA prohibits the closed shop, although it permits the existence of a union shop unless state right-to-work laws prohibit them. a. True b. False Answer:

All but which one of the following would be exempt from bankruptcy under the federal law? a. $500 received in child support. b. A $300 cocktail ring. c. A $200 cashmere sweater. d. A $10,000 truck. Answer: d Answer: d Answer: d In the presence of Betty, Ann tells Thomas that Ann is Betty's agent. In reality, Ann

Recovery of damages under Rule 10b-5 requires proof of: a. reliance on a misstatement or omission. b. materiality. c. scienter. d. connection with the purchase or sale of a security. e. All of these. Answer: e Answer: e Answer: e A constitution: a. restricts powers of government. b. specifically enumerates certain liberties of the people. c. establishes governmental structure. d. All of these. Answer:

Assignments of future wages are subject to statutes that sometimes prohibit them altogether. a. True b. False Answer: True Answer: True Answer: True The doctrine of necessaries applies in the same way to minors and mental incompetents. a. True b. False Answer: True Answer: True Answer: True The UPA marshaling of assets doctrine is abolished by the RUPA. a. True b. False Answer: True Answer: True Answer:

In the majority of states, in a case of negligence per se, the plaintiff would only have to prove violation of a statute in order to show negligent conduct. a. True b. False Answer: True Answer: True Answer: True Under the informal rulemaking procedures of the APA, an agency must provide notice of a proposed rule

The court in the Schoenberger v. Chicago Transit Authority case held that: a. the actual authority of an agent may be founded on the acts or words of the agent. b. implied authority is such authority as the principal knowingly permits the agent to assume. c. actual authority is such authority as

The City of Chicago would best be described as which of the following? a. A corporation formed pursuant to the Model Business Corporation Act. b. A close corporation. c. A public corporation. d. A domestic corporation. Answer: c Answer: c Answer: c A maker must sign in the lower right-hand corner of the instrument. a. True b. False Answer: False Answer: False Answer:

James threatens to hit Kenneth in the head with a baseball bat unless Kenneth signs a contract agreeing to pay James $400 for his saw. Because of the threat, Kenneth signs the contract. a. This contract is voidable at Kenneth's option. b. James has committed physical duress against Kenneth. c. This is an

Revised Article 1 of the UCC states that the "money requirement for a negotiable instrument means the current official currency of the government, not just a medium of exchange authorized or adopted by a sovereign government as part of its currency. a. True b. False Answer: True Answer: True Answer: True The First Amendment guarantee of

A void title may allow good title to pass in special circumstances. a. True b. False Answer: False Answer: False Answer: False Which one of the following assignments would probably be prohibited by a court? a. Mary is in debt. A credit card company calls and threatens to sue. Mary orally assigns her next bimonthly paycheck to her

Federal trademark protection may be obtained for the symbol of the U.S. flag. a. True b. False Answer: False Answer: False Answer: False A registration statement becomes public immediately on filing with the SEC, but a prospectus only becomes public upon signature of the chief financial officer. a. True b. False Answer: False Answer: False Answer: False The essential characteristic of ethical

Which of the following is NOT true about Social Security? a. The purpose is to provide full retirement to almost all employees. b. Employers and employees share the cost of contributions for the employees benefit. c. Self-employed individuals pay the full cost of contributions for their benefit. d. Social security consists of four main

Which of the following acts protects consumers who have errors in credit card billings? a. Equal Credit Opportunity Act. b. Fair Credit Billing Act. c. Fair Debt Collection Practices Act. d. Truth-in-Lending Act. Answer: b Answer: b Answer: b Under the Fair Credit Reporting Act, a consumer has the right to have inaccurate information removed from his consumer

A condominium differs from a cooperative in that a tenant in the latter: a. rents his apartment from the cooperative. b. owns his apartment in cooperation with corporate owner. c. owns all the space except the common areas. d. owns only the internal space. Answer: a Answer: a Answer: a Presentment for payment is one step necessary to

In 2006, the SEC abolished the requirement that a registration statement disclose compensation paid to senior executives and directors. a. True b. False Answer: False Answer: False Answer: False The Weichert Co. Realtors v. Ryan case found that the parties formed an express contract by mutually manifesting assent to the essential terms. a. True b. False Answer: False Answer: False Answer:

The right of a shareholder to examine the books and records of the corporation may be denied if the shareholder: a. seeks information to determine the financial condition of the corporation. b. desires to know the value of shares. c. seeks information to embarrass or cause loss to the corporation. d. desires the names

An offer is an indefinite proposal made by one person to another. a. True b. False Answer: False Answer: False Answer: False Discuss whether the principal is liable in each of the following situations. a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase some property. She agrees to pay him $75 an hour for

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible? a. The employees of the bank. b. An on-duty sheriff's deputy in

Under the provisions of the Foreign Sovereign Immunities Act: a. all foreign governments are immune from suit by U.S. citizens. b. U.S. citizens in U.S. courts can always sue most foreign governments. c. a car used by a foreign embassy in Washington can be seized to settle a judgment against a driver. d. U.S.

To eliminate minority interests, which of the following are sometimes used to take a publicly held corporation private? a. Conversion. b. Domestication. c. Cash-out combinations. d. All of these. Answer: c Answer: c Answer: c A small breach of contract damage amount fixed without regard to the amount of loss is known as: a. reliance damages. b. out-of-pocket damages. c. nominal damages. d.

A gratuitous assignment is revocable by the assignor. a. True b. False Answer: True Answer: True Answer: True SEC regulations concerning fraud in securities transactions apply to: a. all securities transactions involving interstate commerce. b. only securities registered under the 1934 Act. c. only securities registered under the 1933 Act. d. securities registered under both the 1933 and 1934 Acts. Answer:

Would a letter written after the execution of a contract and which contained agreements different from those in the written contract be admissible under the parol evidence rule? a. No, because it contradicts the terms of the contract. b. No, because it changes the agreement. c. No, because it explains the agreement. d. Yes,

Marty Sandidge wrote a check payable to "Charles Saxon when the payees real name was spelled "Charles Saxton. In order to obtain payment, Charles: a. must have Marty void the check and rewrite another check with Charless name spelled correctly. b. may be required by a person taking the instrument for value

The debtor has an absolute right to have his bankruptcy case dismissed, whether the case is under Chapter 7, 11, or 13. a. True b. False Answer: False Answer: False Answer: False Generally, legislative rules must be promulgated in accordance with the procedural requirements of the APA. a. True b. False Answer: True Answer: True Answer: True When the per se approach

Harold purchased 400 pairs of gloves from Isaac at a contract price of $800. Fifty of the gloves were defective and a dispute arose as to the amount due and owing under the contract. Harold refuses to pay the $800, and Isaac is threatening to sue. Which of the following is

A person who owes a duty under a contract is an obligee. a. True b. False Answer: False Answer: False Answer: False Ed signs a ten-year lease with a survival clause. If Ed is evicted after two years, he will have to pay: a. rent for the remaining 8 years. b. damages equal to the difference between the

Interpretative rules of administrative agencies are automatically binding on the private parties the agency regulates. a. True b. False Answer: False Answer: False Answer: False If the act or threat would affect a person of average strength and intelligence, then and only then will the act constitute duress. a. True b. False Answer: False Answer: False Answer: False Laws passed by Congress

At the __________, the accused is informed of the charge against him and he enters his plea. a. preliminary hearing b. arraignment c. indictment d. information Answer: b Answer: b Answer: b A "merchant" is defined as a person who: a. is a dealer in a particular type of goods. b. by his occupation holds himself out as having knowledge

The burden of proof in a criminal case is preponderance of the evidence. a. True b. False Answer: False Answer: False Answer: False In most states, determining what is a reasonable time for disaffirmance depends on circumstances rather than a statutorily prescribed time period. a. True b. False Answer: True Answer: True Answer: True Which of the following is a type of

Kelley borrows $3,000 from Paul and orally agrees to repay him in three annual installments. Most courts would hold: a. the oral contract is unenforceable because it cannot be performed within one year. b. Article 2 of the UCC controls this loan. c. the oral contract is enforceable only through the doctrine of

The RCRA was enacted by Congress: a. to provide a comprehensive scheme of treatment for hazardous solid waste. b. and established a manifest system to be used by generators. c. and gave states the primary responsibility for hazardous waste. d. Both to provide a comprehensive scheme of treatment for hazardous solid wasteand also established

A person cannot be guilty of trespass unless he or she intended to violate the other's rights. a. True b. False Answer: False Answer: False Answer: False Estoppel may create a corporation. a. True b. False Answer: False Answer: False Answer: False The right of a surety who has paid the creditor to be repaid by the principal debtor is: a. exoneration. b. subrogation. c.

Which of the following is correct with respect to the reasonable person standard? a. It makes allowance for mental deficiency. b. It makes allowance for physical disability. c. It applies an individualized test to children that takes into consideration the child's age, intelligence, and experience. d. Two of these but not all of these. Answer:

Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank. Rob purchases the property subject to the mortgage. The value of the property declines and there is a default on the mortgage. When First Bank forecloses, the property sells for only $30,000. a. Can First Bank

The U.S. Supreme Court has held that the Takings Clause requires just compensation not only if a governmental taking actually occurs, but also if a governmental regulation reduces the value of the property. a. True b. False Answer: False Answer: False Answer: False Constructive eviction would result in a discharge of any obligation to pay rent

The right of the buyer to recover from an insolvent seller the goods in which he has a special property interest and for which he has paid, existed at common law before being included in the Code. a. True b. False Answer: False Answer: False Answer: False Under the Statutory Close Corporation Supplement to the MBCA, a

If Terry makes a tender offer to the owners of Pizza Village's registered stock, he must file a statement with the SEC if he: a. owns 1% of Pizza Village stock. b. will, after the acquisition, own 5% of all Pizza Village stock. c. will, after the acquisition, own 5% of one class

The UPA provides that partners are __________ liable on all debts and contract obligations of the partnership. a. jointly b. strictly c. jointly and severally d. partially Answer: a Answer: a Answer: a The powers of a trustee are determined solely by the trust instrument. a. True b. False Answer: False Answer: False Answer: False If a person dies intestate, his property will be: a.

Contracts of a ward may be ratified by his guardian during the period of guardianship. a. True b. False Answer: True Answer: True Answer: True Actual notice requires a written, not oral, communication to the third party. a. True b. False Answer: False Answer: False Answer: False A composition would bind all of the debtor's creditors to the settlement. a. True b. False Answer: False Answer:

In the case of partial destruction of identified goods before risk of loss passes to the buyer, the buyer has the option to avoid the contract or to accept the goods with due allowance from the contract price for the deterioration or deficiency. a. True b. False Answer: True Answer: True Answer: True Tate brings an

An important and fundamental part of administrative law is the limits imposed by judicial review upon the activities of administrative agencies. a. True b. False Answer: True Answer: True Answer: True Agency relationships are governed primarily by federal statute. a. True b. False Answer: False Answer: False Answer: False Under the Fair Credit Reporting Act: a. credit reports may be used by potential

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to

The RUPA treats a partnership as a legal entity in which one of the following respects? a. Liability of partners for partnership obligations. b. For the purpose of suing or being sued. c. For all purposes. d. Assignment of a partners interest. Answer: b Answer: b Answer: b The federal government leaves corporate stock regulation to the states

An estate in fee simple would have which of the following characteristics? a. It may be inherited. b. It may be sold. c. Judgment creditors may levy upon it. d. All of these. Answer: d Answer: d Answer: d Identify the following parties and relationships. a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase some property.

Stan doesn't like having neighborhood teenagers walk across his yard at night. He rigs an animal trap on the path the teenagers usually use to cross his land. One night, Tim and his friends are walking across the yard when Tim gets caught in the trap. He is taken to

Under the RUPA, a partners dissociation in a term partnership is wrongful if before expiration of the term: a. the partner voluntarily withdraws one month after another partner dies. b. the partner dies. c. a court determines the partner became incapable of performing her duties under the partnership agreement. d. the partner becomes a

Most incorporation statutes have adopted an intermediate position regarding the revocability of preincorporation subscriptions, making them irrevocable for a stated period without regard to whether they are supported by consideration. a. True b. False Answer: True Answer: True Answer: True Fraud in the execution is a fairly common occurrence and involves defrauding a person as to

A partnership agreement should include all but which one of the following? a. The duties of the partners. b. The capital contribution of the partners. c. The agreement for dividing tax liability of the partnership. d. The division of profits and losses. Answer: c Answer: c Answer: c Which of the following is least likely to be classified

Paper payable "on demand" fails the test of negotiability in that it does not contain a specific time. a. True b. False Answer: False Answer: False Answer: False The implied warranty of habitability: a. is a warranty that the land is well maintained. b. is a concept created by Congress to protect consumers who rent homes. c. requires leased

For a misrepresentation to be actionable as fraud in the inducement, it must be a misrepresentation of opinion. a. True b. False Answer: False Answer: False Answer: False Judges who serve in the U.S. Courts of Appeals receive lifetime appointments from the President, subject to confirmation by the Senate. a. True b. False Answer: True Answer: True Answer: True Consequential damages include

An anomalous indorsement is: a. one that specifically identifies the person to whose order the instrument is payable. b. an indorsement made by a person that is not the holder of the instrument. c. one that makes the signer liable on the instrument as an indorser. d. Both one that specifically identifies the person

A gratuitous assignment is revocable even after the assignor has made an effective delivery of the assignment to the assignee. a. True b. False Answer: False Answer: False Answer: False Congress appoints and removes the chief administrators of federal executive administrative agencies. a. True b. False Answer: False Answer: False Answer: False The Contract Clause prevents a state from: a. making contracts with