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.
A voting trust permits a concentration of corporate control in one or more persons.
a. True
b. False
A reasonable person, as used in the law of torts, is a fictitious individual who is always
careful, prudent, and never negligent.
a. True
b. False
Because private causes of action have proved to be inadequate to recompense and
prevent environmental damage, the federal, state, and local governments have enacted
statutes designed to protect the environment.
a. True
b. False
Under the Revised Act, a corporation can act as an incorporator of another corporation.
a. True
b. False
With regard to the interpretation of a contract, what priority is given to each of the
following items?
(a) Course of dealing
(b) Usage of trade
(c) Express terms
(d) Course of performance
E-Sign was enacted by Congress in 2000 and makes electronic records and signatures
valid and enforceable across the United States for many types of transactions in or
affecting interstate or foreign commerce.
a. True
b. False
An agent may lose the right to compensation:
a. by breaching the agency contract willfully and deliberately.
b. if the specified result of the contract is not obtained.
c. if the duty of loyalty is breached.
d. All of these
e. None of these.
A five-member Public Company Accounting Oversight Board oversees the audit of
public companies, and the SEC oversees the Board.
a. True
b. False
A PMSI is created in goods when a seller retains a security interest in the goods sold on
credit by a security agreement.
a. True
b. False
An involuntary petition in bankruptcy:
a. eliminates the operation of an automatic stay.
b. may only be filed under Chapter 7 or 11.
c. must be filed by the trustee.
d. eliminates the need for the court to order a discharge.
The contract between the buyer and the seller cannot provide for any additional
remedies other than those specified in the Code.
a. True
b. False
A covenant not to compete is a type of restraint of trade that courts today will enforce
under certain circumstances.
a. True
b. False
A partner can withdraw his partnership capital at any time.
a. True
b. False
A shareholder would have all of the following rights EXCEPT the right to:
a. inspect the corporate records in order to discover customer lists to share with a
competitor.
b. see corporate financial statements in order to value his share for future sale.
c. bring suit against the corporation to require payment of his declared dividend.
d. bring suit on behalf of the corporation to recover improper dividends.
Jack lived in a block with two-family homes. He finished his third floor for his family
and when his children left home, he wanted to rent the floor as an apartment. The town
enacted a zoning ordinance restricting occupancy of the building to a maximum of two
unrelated families. Jack’s best argument for waiving the ordinance is:
a. he can make more money renting two floors.
b. he cannot meet the costs of maintaining the building unless he rents both floors.
c. he is not going to add any more occupants to the building.
d. he was using the third floor as an apartment for rent before the zoning ordinance was
enacted.
A debtor need not sign the financing statement.
a. True
b. False
When a treaty and a right declared under a subsequent federal statute conflict, the treaty
must prevail.
a. True
b. False
The case of Harris v. Looney dealt with the issue of:
a. a de facto corporation.
b. defective incorporation.
c. personal liability for a debt by a person purporting to act as or on behalf of a
corporation, knowing no corporation existed.
d. the effect of an ultra vires act.
In most, if not all, cases where there is a legal detriment to the promisee, there is also a
legal benefit to the promisor.
a. True
b. False
The U.S. Supreme Court has eliminated the doctrine that commercial speech is wholly
outside the protection of the First Amendment and now allows very narrow, limited
protection of commercial speech.
a. True
b. False
Arthur is authorized to collect accounts for Peter. Peter dies, and there is no notice
given to Theresa, who pays Arthur, as she has done in the past. Under the rules of the
Third Restatement and the Uniform Durable Power of Attorney Act, if Arthur absconds
with the money, Theresa will not have to pay again.
a. True
b. False
Securities sold under Regulation A must be registered if they are resold.
a. True
b. False
Expropriation of property by a foreign government for a public purpose with the
payment of just compensation, but without the consent of the owner, violates generally
observed principles of international law.
a. True
b. False
Maureen agrees to sell her interest in the farm to Joe. Maureen and her husband, Bill,
hold the property as tenants by the entireties. What consequence?
a. There is no sale.
b. The sale severs the tenancy and creates a joint tenancy.
c. The sale transfers one-half interest in the land.
d. The sale results in a partition of the land.
One of the principal objectives of tort law is to prevent future harms and losses.
a. True
b. False
Because of the Bill of Rights, state legislation that conflicts with federal legislation will
preempt the federal legislation and the courts will apply the state statute without
modification.
a. True
b. False
Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous
assignment of his rights from Anita. If Brad dies prior to delivering the statement to
Cal:
a. Brad’s death has no effect on the assignment.
b. the assignment is terminated upon Brad’s death.
c. the signing of the statement makes the assignment irrevocable.
d. the assignment is invalid, because it is gratuitous.
Under the Securities Exchange Act of 1934 and the Williams Act, a tender offer:
a. must be disclosed if the offeror’s acquisition would give him 3 percent of the target’s
stock.
b. must be disclosed only to the shareholders of the target corporation.
c. disclosure is informational to ensure that investors may make an informed decision.
d. None of these are correct.
Which of the following would constitute a defect within the meaning of 402A of the
Restatement?
a. A chair with legs designed to be attached with screws and glue but lacking the
screws.
b. A small car designed to have the fuel tank next to the rear axle.
c. A flammable liquid bottled in a container without a warning label to warn users of the
flammability.
d. All of these are defects within the meaning of 402A.
A purchaser of a house who buys the property ‘subject to” the mortgage is not
personally liable for the mortgage, nor is he a surety for the mortgage obligation.
a. True
b. False