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
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 purpose and has paid the
American corporation what it believes to be fair compensation. Under these facts, the
seizure of property is best described as:
a. expropriation.
b. confiscation.
c. force majeure.
d. eminent domain.
The doctrine of promissory estoppel:
a. is a doctrine enforcing noncontractual promises.
b. includes as a requirement within the doctrine that there has been justifiable reliance
on the promise.
c. a doctrine relying on justice and not contractual rights.
d. All of these
Which of the following is empowered to issue industry-wide safety standards for
consumer products?
a. UCCC
b. RESPA
c. FCCPA
d. CPSC
Al owes Tracy $500, due June 1. Al, Tracy, and Ted mutually agree that Ted will pay
Tracy instead of paying Al the money Ted owes Al. Such an agreement is an example
of:
a. an accord.
b. a novation.
c. a satisfaction.
d. a rescission.
The party who files an appeal is the:
a. plaintiff.
b. appellant.
c. appellee.
d. defendant.
Under the Revised Act, dividends must always be paid in money.
a. True
b. False
Under the Competitive Equality Banking Act, a nonlocal check must clear in no more
than four intervening business days.
a. True
b. False
Which of the following is correct with regard to risk of loss, where the goods are in the
possession of a bailee and are covered by a negotiable document of title?
a. Risk of loss passes when the buyer receives the document.
b. Risk of loss passes when the document is tendered to the buyer.
c. Risk of loss passes when notification of the arrival of the goods is given to the buyer.
d. If the buyer is a merchant, risk of loss passes to the buyer when the goods are
delivered.
Any person who may be a debtor under Chapter 7, except a stockbroker or a
commodity broker but including railroads, may be a debtor under Chapter 11.
a. True
b. False
If the surety is a(n) ___________, then the creditor may hold the surety liable as soon
as the principal debtor defaults.
a. absolute surety
b. conditional surety
c. subrogee
d. mortgagee
A forged or otherwise unauthorized signature necessary to negotiation breaks the chain
of title to the instrument.
a. True
b. False
Today most crimes are covered by statutory law rather than by the common law,
although many of the crimes in statutory form had their origins in the common law.
a. True
b. False
If the EPA determines that an SIP is not complete, the EPA must treat it as a nullity in
whole.
a. True
b. False
Daniel is a general partner in a real estate investment firm. Hank and Barry are limited
partners. Daniel, without the consent or ratification of Hank and Barry, can:
a. admit another limited partner.
b. act as an agent of the partnership.
c. rename the partnership using Hank’s last name.
d. not have almost exclusive managerial control of the business.
In an action for damages in a nuisance suit, the plaintiff is required to prove that the
defendant’s conduct is unreasonable.
a. True
b. False
Although a federal agency must consider all reasonable alternatives in an EIS, doing
nothing need not be considered.
a. True
b. False
Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia
agrees never to open a hair salon in the state. Which of the following best describes this
contract clause?
a. Void as an illegal violation of a statute.
b. Valid as a reasonable restraint on trade.
c. Unenforceable as a violation of public policy.
d. Binding as fair protection.
While driving his car five miles over the speed limit, Carl struck Darla, who was
jaywalking across the street. When the case came to trial, the jury determined that Carl
was 40% negligent and that Darla was 60% negligent. Darla’s injuries are $10,000. If
this accident occurred in a state following the modified comparative negligence theory
of recovery, Darla will:
a. recover $10,000.
b. not recover anything.
c. recover $6,000.
d. recover $4,000.
A license is the limited right to remove the produce from another’s land.
a. True
b. False
A mortgage creates a security interest in real property.
a. True
b. False
The Equal Credit Opportunity Act prohibits discrimination based on what factors in the
extension of credit?
a. Sex, marital status, or race.
b. Religion, national origin, and age.
c. Income, occupation, or apparent stability.
d. Both race and age.
Sam, a student, promises to act as a guide on a fishing trip for a group of visiting
dignitaries. The dignitaries agree to pay him $200 for his services. Sam guides them,
but when they discover that Sam does not have a fishing license, they refuse to pay him.
The agreement is an illegal one, which is not enforceable.
a. True
b. False
A lease is the transfer of title to goods from seller to buyer for a price.
a. True
b. False
A false communication made with knowledge of its falsity and with the intent to induce
another to act is known as:
a. disparagement.
b. fraudulent misrepresentation.
c. defamation.
d. invasion of privacy.
Generally, the secretary of state may commence an administrative proceeding to
dissolve a corporation when the corporation:
a. does not pay franchise taxes or penalties immediately when due.
b. does not deliver its annual report within ten days after it is due.
c. is without a registered agent in the state for more than 60 days.
d. All of these.
The principal has a duty to indemnify the agent for losses incurred or suffered while
acting as directed by the principal in a transaction which is not illegal or wrongful.
a. True
b. False
Amy agrees to buy goods from Van for a contract price of $2,000 payable on delivery.
Amy repudiates the contract and refuses to pay anything. Van resells the goods in
compliance with the Code for $1,700, incurring $200 in sales commissions but saving
$250 in shipping costs. Van would recover from Amy:
a. the contract price of $2,000.
b. $500.
c. $350.
d. $250.
Enforcement and interpretation of the Truth-in-Lending Act is now the responsibility of
the:
a. Consumer Financial Protection Bureau.
b. Justice Department.
c. Federal Trade Commission.
d. Federal Reserve Board.
The improper taking of another’s property by one in lawful possession of it, that violates
a trust, is:
a. robbery.
b. theft.
c. larceny.
d. embezzlement.
On November 1, Paula and Roberta enter into a contract where both parties are
obligated to perform on December 31. On December 1, Paula tells Roberta, “I can, in
no way, perform my duties in our contract.” This statement is:
a. a material alteration.
b. anticipatory repudiation.
c. a nonmaterial breach since the statement is made before December 31.
d. an accord.
A “private placement” involves no public offering and is exempt from registration.
a. True
b. False
RICO defines a pattern of racketeering as the commission of three or more predicate
acts within a five-year period.
a. True
b. False
Only records specifically exempted by statute from disclosure are inaccessible under
the FOIA.
a. True
b. False