Which of the following would be an example of a civil lawsuit?
a. George is being prosecuted for bank fraud.
b. The government has initiated an action against Jeff for operating a motor vehicle
under the influence of alcohol.
c. Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
d. The district attorney is bringing Ali to court for violating the city’s keg ordinance.
Larry goes to his barber who has cut his hair for the past several years. The barber
proceeds to cut his hair as they talk about the most recent snow storm to hit the area.
This is an example of a:
a. unilateral, implied contract.
b. bilateral, implied contract.
c. unilateral, express contract.
d. bilateral, express contract.
A tenancy with no fixed duration is a:
a. Tenancy from month to month.
b. Tenancy at will.
c. Periodic tenancy.
d. Tenancy for years.
Darlene lent Jeff her car to go to a job interview. She did not tell him her brakes were
going out. While driving to the job interview the brakes went out on Jeff and he cause a
major accident resulting in his hospitalization. Who is liable for the damages?
a. Jeff, he was a bailee for his sole benefit.
b. Jeff as he was driving except Darlene may be liable for the lost income because he
did not get the job.
c. Darlene is liable because she did not tell Jeff about all known defects
d. Both Darlene and Jeff are liable as this was a bailment by agreement.
Research has shown that the least important motivation for managers in behaving
ethically is:
a. they want to feel good about themselves.
b. they want to feel good about the decisions they make.
c. they value their reputation.
d. profitability.
Under the UCC statute of frauds, the writing for a sale of goods must:
a. state quantity.
b. state price.
c. be signed by both parties.
d. be notarized.
Chapter 13 bankruptcy:
a. is used by businesses to reorganize their financial situations.
b. is an involuntary bankruptcy.
c. can be used only by individuals with a regular source of income.
d. is used by businesses to liquidate their debts.
The Bill of Rights refers to:
a. the inalienable rights found at the beginning of the Constitution.
b. the first ten amendments to the Constitution.
c. a specific listing of individual rights found in the original text of the Constitution.
d. a grouping of individual rights set forth by the United States Supreme Court shortly
after the Constitution was ratified by the states.
Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland. Big
Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to
Hardhat. The documents required by the letter of credit are presented to the bank for
payment while the goods are still in transit. Is Hardhat entitled to be paid?
a. No, payment is not due until the goods are delivered.
b. No, payment is not due until 30 days after delivery.
c. No, payment is not due until the buyer has had a reasonable time to inspect the
goods.
d. Yes, the letter of credit is a promise by the bank to pay when certain documents are
presented.
Ramona has received a discharge in bankruptcy, but wants to reaffirm a debt to her
sister. To be valid, the reaffirmation:
a. will be scrutinized by the court to make sure her sister has not unfairly pressured
Ramona.
b. will be automatically disallowed because allowing Ramona to promise to pay a
discharged debt would be contrary to the goals of the bankruptcy proceedings.
c. will be automatically allowed if Ramona voluntarily chooses to make it.
d. must clearly disclose that Ramona has the right to rescind at any time since the debt
was already discharged.
Which of the following is generally NOT in the introductory paragraph of a contract?
a. The date of contracting.
b. The duties of the parties.
c. The parties to the contract.
d. The nature of the contract.
A bailee always has a right:
a. to possession of the bailed property. Anyone who interferes with this right is liable to
the bailee. Even the bailor himself is liable for wrongful interference with the bailees
possession.
b. to use the bailed property.
c. to compensation.
d. All of the answers are correct.
Laura intends to file a Title VII lawsuit against her employer. Which of the following is
true?
a. Laura is required to first submit her claim to the Equal Employment Opportunity
Commission.
b. Laura must first submit her claim to a state civil rights commission before she may
proceed with her lawsuit.
c. If the EEOC determines Laura has no case against her employer, she may not file a
lawsuit.
d. Laura may initiate a lawsuit or file with the EEOC as she so elects.
The Toxic Substances Control Act requires:
a. new chemicals or old chemicals being used in a new way be registered
b. testing of all new chemicals
c. BPAs be removed from all chemicals.
d. all of the above
E. I. James is a writer with a best selling novel. He wishes to create a corporation called
“James, Inc. He will be the only shareholder. Can James incorporate his business of
writing?
a. Yes, this would be the incorporation of a sole proprietorship.
b. No, the law requires at least two people to be shareholders of a corporation.
c. No, the law does not permit a person to, in effect, incorporate himself.
d. Only if he forms an S Corporation.
The three branches of government in the United States are:
a. the executive, legislative, and administrative.
b. the administrative, executive, and statutory.
c. the executive, legislative, and judicial.
d. the administrative, legislative, and international.
Jessica was a former employee of Mark. When potential employers called Mark for a
reference about Jessica, he stated she was not a very good worker and had been fired for
excessive absences. He said he believed Jessica was on drugs, but he did not know for
sure. Jessica learned what Mark was saying and sued him. In most states:
a. it was legal for Mark to say what he said if it was true and Mark was not motivated
by ill will.
b. it was legal for Mark to say what he said, since courts have consistently ruled that
former employers are immune from lawsuits for giving references.
c. it was not proper for Mark to say what he said, since courts have consistently ruled
that former employers should not give references over the telephone or in writing
without the former employee’s written authorization.
d. though it was proper for Mark to talk about Jessica’s work-related history, he acted
improperly when he said he thought she was on drugs.
Ali took a seat at a booth at Midway Diner. Between the salt and pepper shakers, Ali
noticed something glittering. It was a diamond ring. The ring is:
a. abandoned property.
b. an accession.
c. mislaid property.
d. treasure trove.
Under what type of securities offering must the issuer determine if the investor is an
accredited, sophisticated, or unaccredited investor?
a. Regulation A offering.
b. Regulation D offering.
c. Public offering.
d. An interstate offering.
Which of the following is not required of an agency relationship?
a. Consideration.
b. Fiduciary relationship.
c. Consent of the parties to act as agent or principal.
d. Control of principal over agent’s conduct.
UCC Section 2-204 provides three important rules that enable parties to make a contract
quickly and informally. These include all but which of the following?
a. The parties may make a contract in any manner sufficient to show that they reached
an agreement.
b. A writing sufficient under the statute of frauds may be a simple memo, a letter, or
informal note, but need not itself be a contract.
c. The UCC will enforce a deal even though it is difficult to say exactly when it was
formed.
d. A court may enforce a bargain even though one or more terms were left open.
Holt and Collins decide to have their dispute arbitrated by Corrales. Which of the
following will NOT be a result of the arbitration?
a. Corrales will render a binding decision.
b. Holt and Collins retain the right to a class action.
c. Holt and Collins give up the right to discovery.
d. Corrales need not give reasons for the decision.
Which of the following persons is an agent?
a. Diane, a shoe salesperson for a retail store.
b. Tim, a real estate broker for a large real estate company.
c. Craig, a telephone marketing employee.
d. All the above.
You make an online purchase of a hooded sweatshirt with the logo of the Dallas
Cowboys. The next time you log on, your screen has a banner ad for Dallas Cowboy
hats and shirts. This banner ad is most likely the result of:
a. Tracking software
b. A coincidence.
c. The Internet crime of theft of private information.
d. Encryption software.
Link negligently ran his car into John, causing $50,000 in injuries. Link was intoxicated
at the time of the accident. Can Link discharge this debt in bankruptcy?
a. Yes, claims based on negligence are dischargeable.
b. Yes, as long as he didn’t intend to hit John’s car.
c. No, such claims are not dischargeable in bankruptcy.
d. No, because Link breached a fiduciary duty.
TriColor purchased an industrial stamping machine from Vicy, Inc. TriColor paid for
the machine with a negotiable note. The note was payable to the order of Vicy, Inc.
Vicy, Inc. indorsed the note and gave it to CCLoans to satisfy a debt. CCLoans knew
nothing about the contract between TriColor and Vicy, Inc. CCLoans indorsed the note
and gave it to Great River Youth Club as a charitable donation. When Great River Youth
Club presented the note for payment on its due date, TriColor refused to pay, claiming
that the stamping machine was defective.
(A) Is Great River Youth Club a holder in due course?
(B) Will TriColor be able to avoid liability to Great River Youth Club on the basis that
the machine was defective?
Which statement is true about definitions in a contract?
a. All ambiguous terms must be defined.
b. Definitions must be grouped together in a separate section of the contract.
c. Definitions must be located on the same page where the term is first used.
d. The parties to the contract may be defined with shorter designations than their actual
names.
If Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will
probably:
a. set aside the agreement as being unfair.
b. set aside the agreement because the consideration is inadequate.
c. not set aside the agreement based on the adequacy of the consideration.
d. not set aside the agreement because of the UCC.
Which of the following acts resulting in injury would be negligence per se?
a. Janet driving 40 mph over the posted speed limit.
b. Ted keeping explosives in his private, locked garage without complying with state
law regulating the storage of such materials.
c. A retailer selling glue containing benzene to a 14-year-old boy in violation of state
law.
d. All the above acts are negligence per se.
The fraudulent conversion of property which is already in the defendant’s possession is:
a. money laundering.
b. exclusion.
c. embezzlement.
d. trespassory taking.
Insurance contracts are not required to be in writing because they can be fulfilled in less
than one year but some states require they be in writing.
A sports fan, injured by a hockey puck that flew into the stands during an NHL game,
would be subject to the defense of assumption of the risk in a suit to recover for her
injuries.
At one point in American history, American courts regarded any coordinated effort by
workers as a criminal conspiracy, and courts convicted workers merely for the act of
joining together, even if no strike took place.
All bailments have to be by agreement between the bailor and bailee.
A prospective juror was excused from serving after being questioned by the plaintiff’s
attorney. No reason was given for the rejection. This would be accomplished by the use
of a peremptory challenge.
The Age Discrimination in Employment Act would be violated if a company refuses to
interview and hire applicants under twenty years of age.
Insurance policies often contain a covenant of good faith and fair dealing. Even if the
clause is not in the policy, often courts will imply it. Explain the covenant of good faith
and fair dealing and provide an example illustrating when an insurance company might
breach this covenant.
Contract rescission can sometimes be based upon a unilateral mistake.
Discuss how SEC rules affect the legal and the ethical relationship between accountants
and the companies they audit.
Discuss the major provisions of the Clean Air Act.
Generally an agreement not to compete ancillary to a legitimate bargain is not valid.
Tim is buying a farm. A general warranty deed is the best type of deed for Tim.
If interrogatories are being used as a form of discovery, the party being questioned must
generally answer all the questions orally under oath.
Lori works for Big Corporation as an “at will” employee. Richard, owner of a small
store, offers to pay Lori much more money if she will leave Big Corp and work for his
store. When Lori starts to work for Richard, Big Corp correctly claims Richard is liable
for tortious interference with a contract.
False Imprisonment is the intentional restrain of a person for any reason.