Specific performance is almost never awarded in contracts for the sale of land.
The mutual agreement necessary to create an express contract is evidenced by writing.
A tort is a civil wrong which is also the same as breach of contract.
There is prescribed formal language that must be used to create an express condition as
part of a contract.
A corporation is required to reimburse a promoter for his reasonable expenses incurred
on behalf of the corporation prior to incorporation.
Under Section 11 of the Securities Act of 1933, an underwriter is liable for errors in the
entire Securities Act registration statement because an underwriter is an expert.
The Sarbanes-Oxley Act of 2002 extends the statute of limitations to three years after
discovery of facts constituting a violation of Section 11 of the 1933 Act and seven years
after the violation.
A written agreement to the effect that the parties do not intend to form a partnership is
not conclusive if their actions provide evidence of their intent to form a relationship that
meets the RUPA partnership test.
An interested party in a will can be a witness to the will.
The secured party whose interest in fixtures is perfected will have priority where the
security interest is perfected prior to the time the goods become fixtures.
Dissociation is the term for adding new members to an existing partnership.
The three requirements for a valid offer are: present intent to contract, definiteness, and
communication to the offeree.
Television and radio broadcasts usually are classified as slander rather than as libel
because they involve spoken words rather than written ones.
A bailment is the delivery of personal property by the owner of the property rights to
another individual who accepts it under conditions to return it later to the owner or to a
designated third party.
Contracts must always be in writing to be enforceable.
Capacity is the ability to enter into legal obligations.
The executive branch of government exercises significant control over agency action
through the Office of Management and Budget (OMB).
The Toxic Substances Control Act gives the EPA the authority to regulate the
production and use of agricultural chemicals such as insecticides.
Property insurance policies are indemnity contracts.
The Securities Exchange Act of 1934 does not impose any criminal liability for
violation of any provision of the 1934 Act.
Negligent defendants are never liable for the consequences of an unforeseeable
intervening cause.
If no Code rule applies to an issue regarding a sale of goods contract, the common law
rules apply.
In many cases, a blind person will be held to a different standard of reasonable care
than a person who can see.
Acceptance of shipped goods happens according to the UCC before the buyer inspects
the commercial goods.
Estoppel is the concept that a principal may be liable to a third party if that party
justifiable believed that the agent had authority to act for the principal and there was a
detrimental change in the third party’s position.
Under the Model Business Corporation Act, a corporation may not issue its shares in
return for any benefit to the corporation.
Termination of agency by the principal it is known as renunciation and termination by
agent it is known as revocation.
Mr. Yellow agreed to pay the debt created by Mr. Blue in his contract to Mr. Green. This
agreement is called a collateral contract.
A mortgage is a security interest in real property.
Commercial paper is a form of contract involving the paying of money.
The courts exercise the greatest control over agency behavior because all agency
actions are subject to judicial review.
UCC 9-307 states that a buyer purchases a good in a normal type transaction is a good
faith purchaser and owns the good free and clear of previous security liens on goods.
Bill contracts to build a building for Harvey. A few changes in the building code that
were made after the contract was signed will increase Bill’s costs in performing his
duties. He is excused from performance under the contract.
The work papers and documents that a professional receives from a client to perform
services like auditing or accounting will remain the property of the client.
Which of the following is true about the effect of LLP statutes after appointment of a
new partner?
A. RUPA provides that the new partner has full liability for the LLP’s obligations.
B. The former partners will be personally responsible on committing a malpractice.
C. For obligations incurred before his admission, the new partner may not be held
liable.
D. LLP partnership agreements often change the RUPA rule about a new partner’s
liability.
Which of the following situations is most likely a case of Sherman Act Section 1
violation?
A. A manufacturer unilaterally assigns exclusive territories to its dealers.
B. A manufacturer unilaterally suggests a retail price to its dealers for its products.
C. A manufacturer causes its dealers to agree not to sell outside their dealership
territories.
D. A manufacturer limits the dealerships it grants in a particular geographic area.
In which of the following situations can a buyer revoke acceptance of nonconforming
goods?
A. The buyer accepted them without knowledge of the nonconformity because of the
difficulty of discovering the nonconformity.
B. The buyer accepted them with the knowledge of the nonconformity, because they
were the only option available in the market.
C. The price of the goods fell in the general market.
D. The buyer accepted the nonconforming goods because the seller couldn’t cure the
defect.
In the event of a breach of a presentment warranty:
A. the drawee is entitled to compensation for expenses and loss of interest resulting
from the breach to compensate for the amount paid by the drawee.
B. the drawee’s right to recover damages for breach of warranty is annulled by any
failure on the part of the drawee to exercise ordinary care in making payment.
C. the warrantor may defend by showing that the indorsement is effective under the
impostor or fictitious payee rules.
D. the drawee can withdraw an amount equal to the amount paid by the drawee less the
amount the drawee received or is entitled to receive from the drawer.
Which of the following is an example of personal property?
A. Land
B. Commercial Office Building
C. House
D. Books
Which of the following statements about the permit system established by Congress
through the 1990 amendments to the Clean Air Act is accurate?
A. Permits under the permit system are issued by the EPA.
B. The permit system was established by Congress in 1970.
C. A state permitting program is approved by each concerned state.
D. The permits contain monitoring and reporting requirements.
Which of the following causes a dissociation of a partnership?
A. Withdrawal of a partner from a partnership at will
B. Three partners disagreeing on a matter in the ordinary course of business
C. A partner being provided his partnership interest
D. Addition of a partner to the partnership
Who, among the following, is NOT present during administrative adjudications?
A. Respondent
B. Jury
C. Complainant
D. Judge
What is recidivism?
A. A special theory of deterrence
B. A quasi-criminal offense punished by light fines
C. Repeat offenses by previously punished offenders
D. Attempts to change the behavior of convicted offenders
Which of the following would the United States Supreme Court deny there is a
reasonable expectation of privacy for items in these locations?
A. Private Dwellings
B. Offices
C. Mail
D. Items left in an open field
To be relieved of obligations as surety, a compensated surety must show that:
A. he is secondarily liable for the payment of the debt.
B. a change in the contract was material and prejudicial to him.
C. he lacks the capacity to fulfill his promise.
D. he has provided adequate collateral to the creditor.
Which of the following CANNOT be disaffirmed until after the age of majority?
A. A contract that affects title to real estate.
B. A contract for a necessary.
C. A contract that is fully executed.
D. A contract for the sale of goods.
In which of the following statements concerning a CPA firm’s action is scienter or its
equivalent absent?
A. Having actual knowledge of fraud.
B. Performing substandard auditing procedures.
C. Reckless disregard for accuracy in one’s work.
D. Intent to profit by concealing fraud.
Hailey wrote a check for Marsha, her landlady, on July 7 and dated it for August 1.
Hailey notified her bank to not honor the check before August 1. However, the bank
honored the check when Marsha presented it on July 29. Due to insufficient funds, the
bank turned down the check and charged $50 to Hailey’s account. Marsha terminated
Hailey’s rental contract for writing her a bad check. Which of the following is true of
this situation?
A. The bank is not liable for any damages to Hailey since it has the right to honor a
postdated check if presented earlier.
B. Hailey can file a lawsuit against Marsha for presenting a postdated check earlier than
instructed and causing her loss.
C. Hailey is liable to pay damages to Marsha, in addition to the rent, and a $50 fine to
the bank for lack of funds.
D. The bank is liable to pay Hailey damages for honoring the check before the date
mentioned in the notice.
Which of the following is true about successor’s liability for predecessor’s obligations?
A. Once continuation begins after dissociation, the creditors remain the creditors of the
predecessor.
B. Partners may escape prior liabilities by forming new partnerships.
C. There has to be an agreement with creditors to eliminate liability for prior
obligations.
D. The original partners are not liable for obligations incurred prior to dissociation.
The term _____ is used to describe the nature of a person’s ownership interest in real
property.
A. tenancy
B. fixture
C. estate
D. easement
According to the MBCA, which of the following may, rather than must, be included in
the articles of incorporation?
A. The number of shares that the corporation has authority to issue.
B. The name and address of each incorporator.
C. The address of the initial registered office of the corporation.
D. The names and addresses of the individuals who are to serve as the initial directors.
Which of the following instances is sufficient reason to cause commercial
impracticability?
A. Increased cost
B. War
C. Collapse of market
D. Shortage of good
Courts tend to approve broad delegations of power by Congress to an administrative
agency when Congress has:
A. effectively isolated the judicial powers of the agency.
B. changed the enabling legislation appropriately.
C. expressed an intelligible principle to guide the agency’s actions.
D. received approval of the President for such delegation of power.
Denise contracts with Long Life Insurance Co., agreeing to pay premiums in return for
which the company agrees to pay $500,000 to Denise’s husband Barn when Denise dies.
Barn is a(n):
A. creditor beneficiary.
B. donee beneficiary.
C. incidental beneficiary.
D. delegatee.
How long is the legal temporary monopoly that present patent laws provide to the
inventor after the filing of the patent application?
A. Ten years
B. Seventeen years
C. Twenty years
D. The lifetime of the inventor.
When Rita Ryan died, she left a will naming her children, John and Dale, as the sole
beneficiaries. In her will, Rita designated John as the executor of her estate and excused
John from posting a bond as executor. At the time of Rita’s death, she owned a parcel of
land with her sister, Ann, as joint tenants with right of survivorship. With respect to
Rita’s interest in the land, it will pass to:
A. John and Dale outside Rita’s estate by right of survivorship.
B. John and Dale through Rita’s estate after the will is probated.
C. Ann through Rita’s estate after the will is probated.
D. Ann outside Rita’s estate by right of survivorship.
Under the doctrine of _____, courts would refuse to grant the equitable remedy of
specific performance for breach of a contract if they found the contract to be
oppressively unfair.
A. unconscionability
B. mirror image
C. community-of-interest
D. contract bar
With regard to an assignment, the person to whom the right has been transferred is
called the:
A. obligor.
B. obligee.
C. assignor.
D. assignee.
Courts today view a mortgage as:
A. a lien on land.
B. conveyance of title to land.
C. assignment of property interest.
D. sublease.
A(n) _____ is created by operation of law rather than the seller’s express statements.
A. endorsement
B. advertisement
C. express warranty
D. implied warranty
A document that gives person A the right to act for person B, in the event, person A
becomes incapacitated is known as a:
A. durable power of attorney.
B. living trust.
C. right of succession.
D. codicil.
A joint venture is a(n):
A. association limited to no more than two persons in business for profit.
B. enterprise of numerous co-owners in a nonprofit undertaking.
C. corporate enterprise for undertaking multiple projects of various durations.
D. association of persons engaged as co-owners in a single undertaking for profit.
Amy bought Mississippi State Lottery tickets. Several days later, she learned that
someone had won the lottery but that the winner had not yet come forward. She
searched for her ticket to see if she had selected the winning numbers, but was unable to
find it. Although the lottery ticket was gone, Amy still possessed the play slip she had
used when she purchased the ticket. She checked the numbers on the play slip and
discovered that she had the winning numbers for the lottery. Reasoning that the play
slip would satisfy the Lottery office, Amy laid her claim. The Lottery Office took the
position that Amy needed to produce the actual winning ticket as per the rules, and
hence denied her claim. Amy sued the Lottery Office for breach of contract and unjust
enrichment. Will she succeed?
A. Yes, because the play slip should be proof enough to substantiate her claim on the
prize money.
B. Yes, because this is a good faith claim and the Lottery office should accept Amy’s
play slip as proof of her winning the lottery.
C. No, because Amy had made a mistake in losing the original ticket.
D. No, because the rules of the contract prescribed the ticket must be shown to claim
the money. Amy had accepted that rule when she entered into the contract and thus she
is now precluded from claiming the prize money.
Which of the following is a history of what the public records show regarding the
passage of title to, and other interests in, a parcel of real property?
A. Recorded deed
B. Title insurance
C. Abstract of title
D. Quitclaim deed