Promises to make a gift are not enforceable contracts because a valid agreement is not
present.
If a contract requires the occurrence or nonoccurrence of an event before a party is
obligated to perform a contractual duty, this is a condition antecedent.
The misappropriation of a franchisor’s trade secret is called unfair competition.
Actual cause is also referred to as “causation in equity.”
When determining child custody, the court will consider the “best interests of the child”
before considering the wishes or preferences of the child.
An acceptance is valid only if it indicates acceptance of the exact terms of the offer.
The only way that in personam jurisdiction can be obtained against a defendant in state
court is to have the summons served on that person within the territorial boundaries of
the state.
Non-intent crimes are often imposed for reckless or grossly negligent conduct that
causes injury to another person.
The creation of a bailment requires contractual formality.
Strict liability can be effectively disclaimed with a clear and conspicuous disclaimer.
Because of the communication requirement, silence can never create a valid acceptance.
Letters of credit are governed by the Uniform Commercial Code.
In certain circumstances, a company in reorganization bankruptcy may reject a
collective bargaining agreement with its employees.
With a “per se” antitrust violation under Section 1 of the Sherman Act, a balancing of
those effects helping competition and those hurting competition is considered in
determining if an action was illegal.
There is usually no trustee named in a Chapter 11 bankruptcy case.
The amount of social security taxes self-employed individuals must pay is equal to the
combined employer-employee amount.
Once the court has awarded permanent alimony, the only reason it will terminate the
alimony payment obligation is upon the death of either party.
The mailbox rule is also called the “acceptance-upon-arrival” rule.
Administrative regulations are the primary source of criminal law.
The English common law can be divided into cases decided by the law courts, equity
courts, and merchant courts.
A simple majority of the number of directors established in the articles of incorporation
or bylaws usually constitutes a quorum.
Automobile sales contracts are usually contracts of adhesion.
Personal property can be transformed into real property, and real property can be
transformed into personal property.
Seniority systems are lawful if they are not the result of intentional discrimination.
A general power of attorney confers broad powers on the agent to act in any matters on
the principal’s behalf.
Under the Uniform Commercial Code, value has not been given if the holder acquires a
security interest in or lien on the instrument.
The Anticybersquatting Consumer Protection Act only provides injunctive relief, not
monetary damages.
Horizontal price fixing occurs when the competitors in the same line of business agree
to set the price of goods or services they sell.
The North American Free Trade Agreement set immigration and emigration quotas on
the signatory countries in order to assist in economic control.
The seller’s or lessor’s general obligation is to transfer and deliver the goods to the
buyer or lessee.
Compensatory damages in a strict liability action are meant to punish the defendant and
to send a message to the defendant (and other companies) that such behavior will not be
tolerated.
Amounts recoverable in workers’ compensation benefits do not vary from state to state.
Which of the following is not required to be included in an environmental impact
statement?
A) identification of the groups who oppose the action
B) a cost-benefit analysis for the proposed action
C) identification of alternatives to the proposed action
D) a description of the impact on the environment of the proposed action
E) a listing of the resources that will be committed to the proposed action
Kantian ethics can best be characterized by:
A) the consultation of an outside source, such as a book or person, for guidance.
B) the belief that the moral rules should be determined by persons who have a “veil of
ignorance” about their place or station in society.
C) the belief that a person must decide what course of action is proper based on that
person’s own set of beliefs or feelings.
D) determining which course of action produces the greatest amount of good for the
greatest number of people.
E) universal rules that are based on consistency and reversibility.
Which of the following is not one of the functions of the Securities and Exchange
Commission?
A) adopting rules to advance the purposes of securities laws
B) providing government-backed insurance to purchasers of securities
C) bringing enforcement actions against suspected violators of securities laws
D) regulating securities brokers and advisors
E) registering securities brokers and advisors
There are ________ circuits in the federal court system.
A) twelve (12.)
B) thirteen (13.)
C) fourteen (14.)
D) fifteen (15.)
E) sixteen (16.)
Bruno owns a French Poodle that he advertises for sale. The dog has a history of
viciously biting three local neighborhood kids without reason, as well as each of
Bruno’s three kids. Marge is looking for a dog to be a playmate for her children. When
she comes to Bruno’s house to see the dog, she sees it playing with Bruno’s kids and
doesn’t ask about the dog’s past behavior. She tells Bruno that she’s looking for a dog
for her kids and Bruno says nothing. Five minutes after the dog enters her house, it bites
one of Marge’s kids. Which of the following is the most accurate statement regarding
Bruno’s nondisclosure of his dog’s vicious propensities?
A) Bruno has not committed a fraud, because silence cannot be considered a fraud.
B) Bruno has not committed a fraud, because Marge did not specifically ask if the dog
bites.
C) Bruno has committed an innocent misrepresentation, because he did not state a lie
but only withheld all of the truth.
D) Bruno has committed fraud, because he withheld a material fact.
E) This cannot be fraud or a misrepresentation, because no one can predict what a dog
will do, so Bruno should not be responsible.
For which of the following kinds of intellectual property is a filing or registration
required in order to receive protection?
A) copyrights
B) patents
C) trademarks
D) copyrights and patents
E) patents and trademarks
Which of the following actions is/are consistent with the “maximizing profits” theory of
the social responsibility of business?
A) raising wages because it is expected to lower employee turnover and long-term
overall compensation expenses
B) raising wages because it is believed that workers are underpaid relative to the
industry average and that employee relations would be improved even though overall
compensation expense will increase
C) raising wages to avoid a strike that would cost more than the increased costs of the
wage increase
D) raising wages because it is expected to lower employee turnover and long-term
overall compensation expenses, and raising wages to avoid a strike that would cost
more than the increased costs of the wage increase
E) raising wages because it is expected to lower employee turnover and long-term
overall compensation expenses, raising wages because it is believed that workers are
underpaid relative to the industry average and that employee relations would be
improved even though overall compensation expense will increase, and raising wages
to avoid a strike that would cost more than the increased costs of the wage increase
A(n) ________ power of attorney remains effective even though the principal is
incapacitated.
A) permanent
B) absolute
C) unconditional
D) durable
E) general
Which of the following does not automatically terminate an agency?
A) bankruptcy of the agent
B) bankruptcy of the principal
C) supervening illegality
D) death of the agent
E) death of the principal
When an obligor transfers her obligation to perform a contract duty to another, this is
known as a(n):
A) denigration.
B) assignment.
C) delegation.
D) accord.
E) stipulation.
Under the objective theory of contracts, a contract could result from an offer made:
A) by someone who was clearly intoxicated.
B) by someone who clearly had Alzheimer’s disease.
C) due to a need to sell an item quickly.
D) due to fraud.
E) under duress.
Which of the following can be a result under state law for violating a usury statute?
A) the interest rate in the contract will be adjusted down to the maximum legal rate
B) the court will not enforce the payment of any interest at all
C) the court will not enforce payment of the principal or the interest
D) the interest rate in the contract will be adjusted down to the maximum legal rate, or
the court will not enforce the payment of any interest at all
E) the interest rate in the contract will be adjusted down to the maximum legal rate, the
court will not enforce the payment of any interest at all, or the court will not enforce
payment of the principal or the interest
Under RICO:
A) racketeering activity is narrowly defined to include only offenses commonly
engaged in by organized crime such as money laundering.
B) to constitute a pattern under the statute the conduct must be engaged in at least once
a year for five consecutive years.
C) only corporations and individuals are subject to its provisions.
D) a successful plaintiff in a civil action may recover treble damages plus attorney fees
if successful.
E) only organized crime organizations and their members can be convicted under the
statute.
Sarah calls John and orders 500 t-shirts over the phone. The t-shirts cost $10,000. John
delivers and Sarah accepts 250 of the t-shirts. Before John can deliver the other t-shirts,
Sarah cancels the order. Sarah refuses to pay for any of the t-shirts. John sues, who
wins?
A) John wins. Sarah has to pay for all 500 of the t-shirts because she accepted the first
part of the order.
B) John wins. Sarah has to pay for all 500 of the t-shirts because an enforceable
contract was created when Sarah placed the order over the phone.
C) John wins, but Sarah only has to pay for 250 of the t -shirts because she accepted the
first part of the order.
D) Sarah wins because the order should have been in writing to be enforceable.
E) Sarah wins because Sarah’s rejection of part of the order is considered a rejection of
the entire order.
Sometimes a murder is committed during the commission of another crime even though
the perpetrator did not originally intend to commit murder. Most states hold the
perpetrator liable for the crime of murder in addition to the other crimes. This is called
the ________ rule.
A) statutory murder
B) misdemeanor murder
C) felony murder
D) misdemeanor manslaughter
E) felony manslaughter
When one party to a contract makes a misrepresentation about the law, what is the
deceived party able to do?
A) The deceived party can usually rescind the contract.
B) The deceived party can usually collect damages.
C) The deceived party can never collect damages or rescind the contract because all
parties to a contract are presumed to know the law, either on their own or by securing
the services of an attorney.
D) The deceived party usually has no remedy unless the party making the
misrepresentation of law is a professional who should know the law and has
intentionally misrepresented the law to a less sophisticated party.
E) The deceived party can usually rescind the contract only if the contract involves an
amount of over $500.
When does a forgery prevent a holder from qualifying as a holder in due course?
A) never
B) if there was apparent evidence of the forgery
C) only if the forgery involved a signature
D) only if the forgery involved the price of goods
E) All forgeries prevent a holder from qualifying as a holder in due course.
Under Article 3 of the UCC, what is the effect of a note not stating a time for payment?
A) The note is void and unenforceable due to vagueness.
B) The note is considered nonnegotiable, but might nonetheless be enforceable.
C) The note is considered a time instrument, with payment due at a reasonable time.
D) The note is considered a demand instrument, with payment due on demand.
E) The note is voidable by the maker.
Cindy was riding her bicycle on a paved bike path and had an accident with another
cyclist. Cindy’s $1,000 bicycle was destroyed in the accident. If the jury determined that
Cindy was 60 percent at fault and the other cyclist 40 percent at fault, under which
doctrines would Cindy be entitled to recover $400 from the other cyclist?
A) contributory negligence
B) pure comparative negligence
C) partial comparative negligence
D) either form of comparative negligence, but not under contributory negligence
E) either form of comparative negligence, as well as under contributory negligence
False imprisonment is defined as:
A) being held in jail when no formal charges have been filed.
B) the intentional confinement or restraint of another person without authority or
justification and without that person’s consent.
C) the imprisonment of an individual who was convicted of a crime that he or she did
not commit.
D) a confinement caused when one accidentally causes another to be confined without
that person’s consent.
E) being arrested without an arrest warrant.
Sometimes a party will register a domain name of another party’s trademarked name or
famous person’s name. This is called cyber-________.
A) dominion
B) possession
C) domineering
D) squatting
E) coercion
Mike owns a pet tiger that he keeps in his back yard. He has a 24-foot fence placed
around his property that he tops with barbed wire and has electrified. Maria, while
drunk, accidentally drives her car into the fence and the tiger escapes. The tiger enters a
neighbor’s house and attacks Monica. If Monica sues:
A) Mike wins because he did everything right and the tigers escape was not his fault.
B) Mike wins only if Monica could have escaped from the tiger but chose to not runinto
a closet to save herself.
C) Mike loses based on negligence because his duty to protect others was breached.
D) Mike loses based on strict liability.
E) Mike wins because a Tiger acts on instinct and Mike can’t control instinct.
Article 2 and Article 2(A) of the UCC cover which types of transactions?
A) sales of goods and sales of real property
B) sales of goods and leases of goods or real property
C) sales of goods and contracts for the providing of services
D) sales of goods and leases of goods
E) sales of goods and leases of services
The consequence of a plurality decision is that:
A) the decision of the Circuit Court of Appeals is affirmed.
B) the case is not decided, and will be reheard at a later date.
C) the case is decided, but is not precedent for later cases.
D) the case is decided and becomes precedent for later cases.
E) the case is not decided, but the applicable legal reasoning becomes precedent for
later cases.
What characteristics are necessary for a draft to be a check?
A) It contains an indorsement in blank.
B) It is payable on demand, and the drawee is a bank.
C) It is not an order to pay.
D) It is bearer paper.
E) There are no separate requirements; the requirements for a draft and a check are the
same.
A will that is made entirely in the testator’s own handwriting is what kind of will?
A) nuncupative
B) invalid
C) holographic
D) reciprocal
E) self-proving
“Pay to John Smith, without recourse, (signed) Michael R. Harmon” is what type of
indorsement?
A) a blank, restrictive indorsement
B) a restrictive, unqualified indorsement
C) a special, qualified indorsement
D) a blank, qualified indorsement
E) a special, unqualified indorsement
All applications for patents must be filed in which Washington D.C. office?
A) The Patent and Copyright Office
B) The Patent and Trademark Office
C) The Patent, Copyright and Trademark Office
D) The Office of Patents
E) The Office of Patent and Invention Protection
The following are types of marks that can be registered, except:
A) performance marks.
B) certification marks.
C) service marks.
D) trademarks.
E) collective membership marks.
Mere possession of monopoly power in a particular field:
A) violates Section 1 of the Sherman Act.
B) violates Section 2 of the Sherman Act.
C) violates the Federal Trade Commission Act.
D) violates the Clayton Act.
E) is not an antitrust violation.
Jack and Jill were discussing business over lunch when they agreed on the sale of some
goods. Because neither of them had any paper with them, Jack wrote the following on a
napkin: “Jill agrees to purchase from Jack, 1,000 widgets to be delivered on July 1,
2001, at a cost of $10,000, payable on delivery.” Jill signed the napkin, although Jack
did not sign it. Jack delivered the widgets per the contract, but Jill refuses to pay for
them. If Jack sues Jill for the price of the goods, the most likely result is:
A) Jill will win, because this writing is not sufficient under the Statute of Frauds.
B) Jack will win, because the writing is sufficient under the Statute of Frauds.
C) Jill will win, because Jack did not sign the contract.
D) Jack will win, because the Statute of Frauds does not apply to this situation.
E) Jill will win, because there was no reasonable basis for her to believe there as an
enforceable contract.
Assuming the bank has proper notice, which of the following situations would not
allow the bank to rightfully dishonor a check?
A) the drawer’s death or incompetence
B) The check was drawn 4 months ago.
C) a court order freezing the account
D) a stop- payment order
E) the exercise of a right of setoff
Under which type(s) of tenancy is the tenant a trespasser?
A) tenancy at will
B) tenancy at sufferance
C) tenancy at will and periodic tenancy
D) tenancy at will and tenancy at sufferance
E) tenancy at will, tenancy at sufferance, and periodic tenancy
A ________ is a court order directing the defendant to appear in court and answer the
complaint.
A) directive
B) decree
C) proclamation
D) summons
E) warrant
Why can creditors reach the property of buyer that the buyer has under a sale or return
contract or consignment, but not property under a sale on approval contract or lease? Is
this difference rational?
Many parties are eager to extend credit to those who have just received a discharge in
bankruptcy. One view is that such persons have no other debts, and thus are a relatively
safe credit risk. Furthermore, such persons cannot qualify for another discharge in
bankruptcy for a prescribed number of years. Many discharged debtors, however, incur
excessive debts time and again. Should there be limits on the ability of those discharged
in bankruptcy to incur new debt? What are the arguments for and against such a rule?
Kathy has decided to spend some money on herself and goes out to purchase a big
screen television and a home theater system. She goes to Best Circuit, a national chain
and sees the exact television she wants and it’s on sale. She purchases the television for
cash and then looks at the home theater systems. She sees a few that she likes and one
that she loves. Unfortunately the one she loves is more than her budget allows so she
decides to wait until it goes on sale. The next day she’s mentions home theatre system to
a coworker who tells her that she knows someone that sells home theater systems very
inexpensively. She calls this “friend” who meets her at lunch time and has the theater
system she wants in the trunk of his car. It’s in a sealed box and the price is 25% off
what Best Circuit sells it for. Kathy purchases the system for cash and takes it home. A
week later, the police show up at her door. It seems that Best Circuit paid the
manufacturer with a bounced check when obtaining the television. The “friend” turned
out to be a thief that sold her a stolen theater system. Does Jan get to keep the television
and home theater system or must she relinquish them?
Why are the requirements for will validity so specific and detailed? Should they be
specific and detailed, or more flexible?
Sam is a sales representative for a pharmaceutical firm. Sam frequently plays golf with
his clients and potential clients. One summer weekend when he is on vacation at his
family’s home in Myrtle Beach, Sam runs into two of his clients who are attending a
medical convention. They arrange to meet and play golf on Sunday. While on the sixth
hole, another golfer tees off prematurely, and Sam is struck in the head by a golf ball.
Can Sam recover under workers’ compensation? What remedies are available to him?
Zora is a manager in an accounting firm. She enjoys flirting with the male accountants
who are under her supervision. She also enjoys going out on dates with them. Her
company, “Accounting Is Our Game,” has a policy prohibiting sexual harassment. The
company’s policy provides that complaints should be made to the company president,
Cory. Donnie, an accountant under Zora’s supervision, rebuffs her advances and denies
her request for a date. After Donnie refuses to go out with her, Zora increases her
practice of telling sexually-oriented jokes in his presence, and makes fun of him in front
of co-workers because he refuses her advances. Donnie is not aware of the company’s
anti-sexual harassment policy. Although it is on file, he has never received a copy of the
policy. Donnie is not psychologically-distressed over the matter, but he is tired of Zora’s
conduct. He files a complaint in federal court against Zora pursuant to Title VII. Zora’s
defense is that Donnie’s pay was never reduced, he experienced no psychological injury,
and he never complained under company policy. Discuss the merits of his case.
To what extent should ‘speech” over the Internet be regulated? Should the Internet be
treated like television, or should different standards apply? Or is the Internet more like
print media such as books or newspapers? Give reasons for your positions.
What is the “Statute of Frauds” doctrine? What are some of the exceptions to the Statute
of Frauds rule? Do the exceptions defeat the purpose of the rule?
What is the common law rule regarding risk of loss? How did the UCC change the
common law rule? Which do you think is easier to implement?
We elect House and Senate members to Congress expecting them to make and
administer the law. Once elected, these Congressmen and Congresswomen delegate
substantial authority to members of administrative agencies allowing them to make and
administer law in select areas and scenarios. How do administrative agencies make the
government more efficient and effective?
The government has proposed demolishing 800 of 2,000 units in a low-income public
housing project that has become crime-ridden and in poor repair. These 800 units will
be replaced with 300 units, half of which will be for low-income families, and half for
moderate-income families, resulting in fewer low-income housing units in total.
Evaluate this proposal under utilitarianism.
After having graduated from college, John returned to his hometown. Some friends of
his parents had a carriage house above their garage that they sometimes rented. Upon
John’s return to his hometown, the carriage house was vacant, and the owner told John
he could stay there until he found another place to live. The owner initially did not want
John to pay anything, but John started paying $100 a week. John then sent a note at the
beginning of August saying, “Here is $500 for the month of August. I know I hadn’t
planned to be here this long, but I hope this is acceptable.” The owner cashed the check,
but the topic was never discussed. John sent $500 at the beginning of September and
October, but on October 15, the owner came to John with $100 and said, “Enough is
enough. Here’s some of the money you gave for October. You are lucky to get that back.
You have an hour to get all your stuff out of here.” John asserts that he paid for October,
and that he is not leaving. He also said that he is entitled to at least a month’s notice
regarding termination of the lease. Discuss the type of tenancy created, if any, and the
rights of the parties involved.
Should an insurance company have a duty to defend its insured when the defense will
cost the insurance company more than it will cost to simply pay the claim? For
example, should an automobile insurer have a duty to spend $10,000 to defend an
insured when the claim is under $10,000? What ethical problems arise when the
outcome would affect the insured’s driving record, and therefore the rates that the
insurance company would charge? What ethical problems can arise with this duty to
defend when both drivers are covered by the same insurance company?
Courts have broad discretion in deciding whether or not a contract is illegal because it is
contrary to public policy. Often, a court will treat a contract as being against public
policy even though there is nothing called for in the contract that is illegal. Should a
court be able to do this? What are the consequences to the parties?
Jake talked to Joan, a salesperson at Hot Cars, about purchasing a Jaguar for $70,000.
Jake really liked that specific car because it was the color he wanted and had all the
options he liked. Jake, however, wanted to think it over for a few days. Joan told him
not to worry, that she would hold the car for him, and she gave him a written and signed
assurance that the offer to sell the automobile for $70,000 would be held open for 14
days. Jake thought it over, decided to purchase the car, and returned one week later
ready to make the deal. Joan told him that another buyer with ready case wanted the
Jaguar and that she sold it. Joan told Jake that he gave no consideration for the
agreement to hold the car, that there was no contract, and that she was free to sell it to
the ready buyer. Is she right, and why or why not?
With the lowering of international trade barriers and a corresponding increase in the
globalization of business, should the determination of the “relevant market” be
modified? For products or services provided by foreign firms competing in the United
States market, are United States antitrust laws obsolete?
Terry, Richard, and Connie enter into a “member-managed” limited liability company to
make ice cream for distribution. Terry secretly develops his own recipe, and starts
competing with the company. When Connie and Richard find out, they inform Terry
that they will sue him. Terry warns that he will counterclaim against them for
interfering with his business. What should Connie and Richard sue Terry for, and will
they win the lawsuit, or will Terry win on his counterclaim?
What is the most favorable shipping terms to buyers? Why? What about to sellers?
Why?
Should states impose an implied warranty of habitability on landlords? What are the
benefits and drawbacks of automatically imposing this warranty on landlords? Is not the
ability of a tenant to move to a different location sufficient incentive to encourage a
landlord to keep the leased premises livable?