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.
Yukon Corporation purchases 1,000 shares of its own stock from Jones at a price of $50
a share. These shares, which are now issued but not outstanding, are known as:
a. treasury shares.
b. preemptive shares.
c. preferred stock.
d. no par stock.
Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26
each. She then realized what a good buy this was and called the store with a request to
modify the contract to read two dozen. What is the consequence?
a. The modified contract is unenforceable.
b. The modified contract is void.
c. The modified contract is valid and enforceable.
d. There is no consideration, so the contract is void.
The act-of-state doctrine provides that to maintain international relations and trade, a
host country must refrain from imposing its laws on a foreign sovereign nation present
within its borders.
a. True
b. False
Which of the following is not a corporate characteristic?
a. A relatively small number of corporations own the great bulk of U.S. industrial
wealth.
b. The great majority of publicly held corporations have audit committees consisting
entirely of outside directors.
c. The board of directors of the majority of publicly held U.S. corporations consist
mainly or entirely of inside directors.
d. Corporate governance requirements on publicly held corporations have been imposed
by federal legislation.
Which of the following is correct with respect to the Code’s approach to impossibility
of performance?
a. A significant drop in demand for the goods will excuse the buyers performance.
b. Increased production costs will excuse performance by the seller.
c. Performance will be excused when it is impractical as a result of one or more
unforeseen supervening events that are more than mere hardship or increased cost of
performance.
d. All of these are correct.
Who is primarily liable on a note?
a. The maker.
b. The indorsers.
c. The drawee bank.
d. The holder.
Which of these elements determine the existence of a bailment?
a. A separation of ownership and possession of the property.
b. A duty on the party in possession to redeliver the identical property to the owner or to
dispose of it according to the owner’s directions.
c. Neither of these.
d. Both a separation of ownership and possession of the propertyand also aduty on the
party in possession to redeliver the identical property to the owner or to dispose of it
according to the owner’s directions.
Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he
quits smoking for a month. If Robbie does, is there a binding contract?
a. No, because Robbie gave no benefit to Aunt Ellie.
b. No, because Robbie did not suffer any detriment.
c. Yes, because stopping smoking will benefit Robbie’s health.
d. Yes, because Robbie gave up a legal right.
Procedural due process would require the government to establish a set of fair
procedures in all but which of the following cases?
a. Where Social Security benefits are denied.
b. Where a juvenile criminal is sent to a detention home.
c. Where a professor is fired from his tenured position.
d. Where a college student is denied a private scholarship.
Rulemaking powers of federal agencies are primarily governed by the:
a. SEC.
b. APA.
c. FCC.
d. NHTSA.
The international treaty to which the United States is a party and which protects
copyrighted works is known as the:
a. Berne Convention.
b. Convention on International Copyright Protection (CICP).
c. Geneva Convention.
d. Madrid Protocol.
Federal trademark protection:
a. lasts for ten years after registration.
b. can be renewed an unlimited number of times.
c. can be abandoned by non-use.
d. All of these.
Mel has a neighborhood grocery store that he would like to sell. Casey is interested in
purchasing the business, but he is concerned because he knows that Mel has built up a
lot of goodwill over the years, and he wonders whether Mel might not just open another
store down the block and take all of the business from the old store with him. Casey
asks for and receives from Mel a clause in the sale agreement that Mel will not open
another grocery store within a 150-mile radius of the old store for a period of at least
ten years.
a. What is this agreement called?
b. Is the negotiated clause a valid one? Explain why or why not.
c. What guidelines would a court ordinarily use in determining whether to enforce such
a clause?
Which of the following statements best describes charitable subscription promises?
a. They are generally not enforceable.
b. They are equated by the law with gifts.
c. They are generally enforceable if there is reliance or a probability of reliance by the
charity.
d. Courts generally find that it would be unjust to enforce them because persons who
promise charitable subscriptions do not expect to be held accountable for them.
The intentional exercise of dominion or control over another’s personal property which
so seriously interferes with the other’s right of control as to justly require the payment
of full value for the property is:
a. trespass to personal property.
b. interference with economic interests.
c. conversion.
d. fraudulent misrepresentation.
The law of conveyancing firmly establishes that a contract for the sale of land carries an
implied sellers obligation to transfer marketable title.
a. True
b. False
In suing to recover for environmental damage under the common law, plaintiffs
generally have had causes of action in:
a. nuisance.
b. trespass.
c. strict liability.
d. All of these.
Assume that 12,000 shares are represented at a shareholder meeting. How many votes
are normally necessary to carry a motion?
a. 4,001
b. 8,001
c. 6,001
d. 10,000
The remedy for misrepresentation is specific performance of the contract.
a. True
b. False
Marilyn contracted with Bravo Builders to build an addition to her house for $15,000.
After digging the foundation, Bravo decides that it will take more work and more
concrete than it had originally thought and that it will need to charge an additional
$5,000 for the job. Assuming Marilyn agrees, which of the following is correct?
a. Marilyn will have to pay $20,000.
b. This is a contract under seal which is enforceable.
c. This is a modification of a preexisting contract, which under common law must be
supported by additional consideration on the part of Bravo Builders.
d. This is the settlement of a disputed debt that requires no additional consideration on
the part of Bravo Builders.
How may an easement be created?
a. By prescription.
b. By reservation.
c. By necessity.
d. It may be created in all of the above ways.
The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire
production. After signing the agreement, Abbot can increase its production from one
shift to two shifts and Baker will have to buy all of the doubled production.
a. True
b. False
If a defendant acts under emergency conditions, these conditions will be taken into
account in applying the reasonable person standard.
a. True
b. False
A stepchild will not ordinarily inherit under intestacy statutes unless legally adopted.
a. True
b. False
Which of the following results in a void contract?
a. Duress by improper threat.
b. Duress by physical force.
c. Undue influence on a party.
d. Fraud in the inducement.
e. Duress by physical force and also undue influence on a party.
When Mark bought new office furniture on credit, Bartin’s Office Supply Co. filed a
financing statement. What would be required on the financing statement?
a. The trade name of Mark’s business.
b. Mark’s signature.
c. Mark’s name and an indication of what collateral is covered by the agreement.
d. All of these.
All of the following are exempt from registration under the 1933 Act except:
a. government bonds.
b. securities issued by for-profit medical facilities.
c. notes with a maturity of not more than nine months when issued for working capital.
d. state-regulated insurance company annuities.
Sheena knowingly and falsely tells Jenn that an automobile she is trying to sell has
never been in a flood. In reliance upon Sheenas statement, Jenn buys the car. Sheena is
liable to Jenn for fraudulent misrepresentation.
a. True
b. False
Ashley wrote a defamatory letter regarding Brian which she mailed to Brian, but which
she did not show to anyone else. Ashley has committed:
a. the tort of slander.
b. the tort of libel.
c. neither libel nor slander, because there has been no publication of the letter.
d. the tort of false light.
Which of the following best describes the libertarian social ethics theory?
a. Libertarians stress market outcomes as the basis for distributing society’s rewards.
b. Libertarians encourage social control over all people in order to design an equitable
society.
c. Libertarians believe it is just for society to take wealth earned by some citizens and
distribute it to those who did not directly earn it.
d. The fact that some people end up with fortunes while others are poor proves only that
absolute power corrupts absolutely.