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The phrase "time is of the essence" means that:
a. the court is in a hurry to dispose of the case.
b. performance under the contract at the times specified in the contract is vital or
essential.
c. the contract expressly states that time is of the essence.
d. the price stated in the contract is subject to change without notice.
The party making an assignment is called the:
a. assignee.
b. assignor.
c. obligor.
d. successor.
A stockholder-approved amendment to the certificate of incorporation may indemnify
directors who:
a. acted in bad faith.
b. acted negligently.
c. breached their duty of loyalty.
d. gained an improper personal benefit.
What form of tort liability was developed to provide guaranteed protection for those
who are injured by conduct the law deems both serious and inexcusable?
a. strict liability
b. negligence
c. both a. and b.
d. neither a. nor b.
In a cash sale that does not require the physical moving of the goods, the:
a. parties are required to perform concurrently.
b. seller is required to tender the goods before the buyer must pay for them.
c. buyer must pay for the goods in advance.
d. buyer must actually receive the goods before he or she is required to pay for them.
Which of the following acts was passed to ensure that public shareholders faced with a
cash tender offer would not be required to respond without sufficient information?
a. the Mann Act
b. the Robinson-Patman Act
c. the Williams Act
d. the SEC Act
An exculpatory clause most likely would be held to limit or disclaim liability for
malpractice:
a. in an action based on fraud.
b. in a suit brought by a third person.
c. when the accountant can reasonably be expected to stand behind the information in
question.
d. when the clause is conspicuous, unambiguous, and clear.
____ of a corporation may occur when management is deadlocked and the deadlock
cannot be broken by the shareholders.
a. Bankruptcy
b. Consolidation
c. Reinstatement
d. Judicial dissolution
Perjury occurs:
a. only in court.
b. only in written form.
c. only in state courts.
d. none of the above.
The first action generally attempted by the EEOC is:
a. litigation.
b. conciliation.
c. mediation.
d. arbitration.
Which of the following can constitute an effective delivery of a deed?
a. a physical delivery
b. a symbolic delivery
c. a constructive delivery
d. all of the above
Under the commerce power, the federal government may regulate:
a. some interstate commerce only.
b. all interstate commerce.
c. some intrastate commerce only.
d. all intrastate commerce.
Winona was a person of average intelligence, education, and experience in business.
She negotiated for the purchase of insurance and paid the premium. The policy was
mailed to her, but before it arrived a loss was suffered. When the policy was read,
Winona could not determine whether the loss was covered because the policy was too
difficult to understand. The loss is:
a. not covered unless expressly stated to be covered.
b. covered because the insurer had an obligation to word the policy in an
understandable way.
c. not covered unless stated to be so in a rider.
d. covered if included in an express exception to the policy.
Which of the following is not characteristic of the "living" Constitution?
a. strong government
b. strong President
c. administrative agencies
d. states' powers equal to federal powers
One of the motions that can be made after a verdict has been entered is a motion for a:
a. voluntary nonsuit.
b. compulsory nonsuit.
c. directed verdict.
d. judgment notwithstanding the verdict.
If there is a time limitation or any other restriction in a contract, a third-party
beneficiary:
a. may ignore it.
b. may void it.
c. is bound thereby.
d. must consent to be bound thereby before it is effective.
Which of the following is true about administrative agencies?
a. Administrative agencies exercise powers guaranteed to them in the U.S. Constitution.
b. Administrative agencies exercise powers allocated to them by the president.
c. Administrative agencies make decisions that are rarely reviewed by the courts.
d. Administrative agencies make decisions that are effectively reviewed by voters.
A qualified indorsement is given by using the phrase __________.
a. "as is"
b. "without recourse"
c. "with all faults"
d. "buyer beware"
When supervisors seek sexual favors in return for job benefits, the practice is called:
a. quid pro quo sexual harassment.
b. hostile work environment sexual harassment.
c. res ipsa loquitur sexual harassment.
d. none of the above.
A valid meeting of the voting shareholders of a corporation requires the presence of a:
a. quorum.
b. forum.
c. majority.
d. voting majority.
The signature requirement, as an element of negotiability, can be met by:
a. the use of initials.
b. a mark.
c. a trade name.
d. all of the above.
The status of a trustee in a bankruptcy proceeding is best described as the:
a. prosecutor of the debtor.
b. successor to the debtor.
c. defender of the debtor.
d. protector of the debtor.
Which of the following is a possible remedy for a nuisance?
a. termination by police authority
b. injunction
c. money damages
d. all of the above
If you allow another person to use your credit card but the person uses the card for a
purpose other than the one you specified:
a. an unauthorized usage has occurred.
b. an authorized usage has occurred.
c. you will not be responsible for more than $50 of the amount charged.
d. both a and c.
Which of the following statements is incorrect about fixtures?
a. Personal property may become a fixture by annexation to the realty.
b. Personal property may become a fixture by adaptation to the realty.
c. Personal property may become a fixture based on the intent of the person affixing the
personal property to the realty.
d. Personal property that is readily removable from the realty is generally a fixture.
Otella borrowed $5,000 from a bank and was behind in her payments. Later, Armand
wrote to the bank that Armand would "make good" Otella's obligations if Otella did not
pay. Armand's agreement is:
a. binding because it is written.
b. binding because it is supported by consideration.
c. invalid unless Otella also signs Otella's statement.
d. not binding because it is not supported by consideration.
The Petroleum Marketing Practices Act gives gas station __________ the opportunity
to continue in business by purchasing the entire premises used in selling motor fuel
when the franchisor decides to sell the property and not renew a lease.
a. franchisees
b. licensors
c. joint venturers
d. partners
The "living" Constitution has which of the following characteristics?
a. strong federal government
b. a strong president
c. diminution of state powers relative to those of the federal government
d. all of the above
Blackmail is defined as:
a. giving money to a person to influence that person's judgment.
b. an illegal demand made by a public official.
c. an illegal demand made by a nonpublic official.
d. providing improper political influence.
Personal property that is attached to the earth or placed in a building in such a way or
under such circumstances that it is deemed part of the real property is called a(n):
a. asset.
b. estate.
c. easement.
d. fixture.
Distribution of the debtor's assets must be made according to an order of priority.
The use of agency arrangements allows a U.S. firm to avoid taxation on sales made in
its agent's country.
In order to recover under a fair business practices or deceptive trade practices act, a
consumer is only required to show that the defendant is in breach of contract.
Chandra sues Martin for breach of contract. Both parties have completed discovery.
Chandra now wants her attorney to file a motion to have the judge rule in her favor
without having to proceed further. Chandra does not know whether the motion to
dismiss or the motion for a summary judgment is proper. Which motion is proper and
why?
Partnership property is only that property contributed by the partners.
An ambiguity in an insurance policy is generally interpreted in favor of the insured.
Solid waste disposal regulations today deal almost entirely with recycling.
A living will, now legal in most states, provides that if the testator becomes unable to
express his or her wishes and is in an irreversible, incurable medical condition, he or
she does not want life-sustaining medical treatments.
Unless a contract so provides, time is ordinarily not of the essence, and performance
within a reasonable time is sufficient.
When a party refuses to perform a contract at the time of performance, a repudiation
has occurred.
A promise to make a gift is enforceable.
An agency may be created to perform almost any act that a principal could lawfully do.
Bon, located in Florida, desires to enter into a contract with Jon, a resident of Maine.
Neither wishes to meet face-to-face, as both are busy with a variety of business
interests. Instead, they wish to form a contract over the Internet. Would a contract
formed over the Internet be valid?
Discriminatory and punitive incapacities have largely disappeared.
A merger is subject to antitrust law, while a consolidation is not.
Personal property is lost when an owner does not know where it is located but intends
to retain title or ownership to it.
Herman Corporation is engaged in preparing a marketing campaign consisting of
electronic and print images. Drawings and photographs for the campaign are coming
from a variety of sources, including popular magazines, international newspapers, and
web sources. The marketing vice president asserts that the company may use the images
under the fair use doctrine. What factors should be considered in the application of the
fair use doctrine?
Pursuant to the Credit Repair Organization Act of 1996, credit repair organizations must
be "non-profit."
The issuer of a letter of credit can revoke or modify the letter at any time without the
consent of the beneficiary, even if that right is not expressly reserved in the letter.
