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
Since 1976, the Food and Drug Administration has had the increased authority to:
a. subject medical devices to premarket approval.
b. require manufacturers to do corrective advertising.
c. make manufacturers responsible for seeing that drugs are proven safe and effective
before being sold.
d. make package inserts or labels on drugs list possible side effects.
In a third-party beneficiary contract, the third party’s rights arise at the time the contract
is formed.
a. True
b. False
The Gramm-Leach-Bliley Financial Modernization Act is administered and enforced
solely through two federal agencies: the SEC and FTC.
a. True
b. False
Jeremy Bentham was a proponent of utilitarianism.
a. True
b. False
A retiring partner has no way of being discharged from her existing liabilities other than
by paying them off.
a. True
b. False
The Code has made certain offers irrevocable without the offeree’s giving any
consideration for the promise to keep the offer open. These offers are known as:
a. options.
b. firm offers.
c. variant acceptances.
d. auctions.
A letter sent to someone falsely accusing her of being a murderer constitutes the tort of
defamation.
a. True
b. False
Under the CISG, a party may suspend performance of his obligations if, after the
conclusion of the contract, it becomes apparent that the other party will not perform a
substantial part of his obligations.
a. True
b. False
Arthur is a shareholder of Rowson, Inc. He has evidence to suggest that its
president/CEO has allowed the corporation to engage in acts that are ultra vires. Based
upon this evidence, Arthur contacts an attorney and sues the corporation on behalf of
the corporation. The lawsuit Arthur has filed is known as:
a. a direct suit.
b. a derivative suit.
c. a class action suit.
d. an unauthorized suit.
In most states, a corporation may, with shareholder approval, limit or eliminate the
liability of directors for some breaches of the duties which they owe to the corporation.
a. True
b. False
A person can be a holder if:
a. the instrument has been issued to that person.
b. the instrument has been transferred to that person by negotiation.
c. the instrument is ambiguous.
d. Either the instrument has been issued to that person orthe instrument has been
transferred to that person by negotiation.
The shelter rule did not exist at common law.
a. True
b. False
To run with the land, a restrictive covenant must involve promises that are enforceable
under the law of contracts.
a. True
b. False
Which of the following would be charged to the life tenant’s interest in the course of
administering a trust?
a. Expenses of selling a trust investment.
b. The costs of establishing the trust.
c. Ordinary repairs to trust property.
d. Permanent improvements to the trust property.
Bob took a check written by Jack to Jack’s bank to be certified. The bank stamped
“Certified” on it and gave it back to Bob. What consequence?
a. Bob can only demand the money from Jack.
b. Bob can only demand the money from the bank.
c. The bank would have to pay if Jack doesn’t.
d. Bob would have to pay if the bank doesn’t.
Which of the following will be acceptable as a witness to a will?
a. The testator’s spouse.
b. The administrator of the estate.
c. The beneficiary of a testamentary trust.
d. The spouse of a beneficiary.
Most of the protections provided by the U.S. Constitution and its amendments apply
only to governmental action, which is referred to as:
a. due process.
b. state action.
c. equal protection.
d. separation of power.
A principal may generally revoke the authority of an agent at any time.
a. True
b. False
Sylvia draws a check on ABC Bank payable “to the order of Ann Smith.” Ann indorses
it and deposits it in her account at First Bank. First Bank is a:
a. drawee bank.
b. payee bank.
c. depositary bank.
d. payor bank.
Extinguishing a limited partnership involves:
a. dissolution.
b. winding up or liquidation.
c. termination.
d. All of these.
e. Only dissolutionandwinding up or liquidation.
Under constitutional privilege, a public official or public figure must prove that the
defendant published the defamatory and false comment with knowledge of the
comment’s falsity or in reckless disregard of the truth.
a. True
b. False
Hal holds a gun to Irving’s head and tells him to sign the contract. Irving signs the
contract, because he fears for his personal safety. The contract is void, because it was
entered into under duress.
a. True
b. False
Debentures are the same as indentures.
a. True
b. False
A court will require witnesses’ signatures to be proven before a formal decree will be
issued allowing the will.
a. True
b. False
The Revised Act requires that demand be made upon the board of directors to enforce
the corporate right at issue as a prerequisite to bringing a derivative suit.
a. True
b. False
Victims of racial discrimination are entitled to recover unlimited compensatory and
punitive damages even after the Civil Rights Act of
a. True
b. False
Incorporation statutes usually provide only for involuntary dissolution of a corporation.
a. True
b. False
From a Kantian perspective, for an action to be moral, it must be possible for it to be
made into a universal law and it must be respectful of the autonomy and rationality of
all human beings.
a. True
b. False
Apparent authority arises out of words or conduct of a disclosed or partially disclosed
principal manifested to third persons.
a. True
b. False
Regarding the election of directors:
a. under the Revised Act, directors are elected by a majority of the votes.
b. cumulative voting is a right of shareholders in all states.
c. cumulative voting permits minority shareholders to obtain majority representation on
the board.
d. under straight voting, shareholders owning a majority of the voting shares can always
elect the entire board of directors.
Which of the following is/are the criteria for a common carrier?
a. The carriage must be part of its business.
b. The carriage must be for remuneration.
c. The carrier must represent to the general public that it is willing to serve the public in
the transportation of property.
d. All of these are criteria.