The Robinson-Patman Act is a federal statute, enacted in 1930, that prohibits price
discrimination.
A limited liability company can choose whether to be taxed as a partnership or as
corporation.
If sufficient credible witnesses are brought forth, an oral statement can be held to be a
valid negotiable instrument.
The appealing party is known as the appellee.
The Uniform Computer Information Transactions Act was passed by the U.S. Congress
and is the exclusive law in the area of electronic contracts and licenses, preempting
state law.
Because an indorsement is not required on bearer paper to deliver it, the indorsement
has no legal effect.
An employer may not restrict union solicitation activities during the employees’ free
time.
State antitrust statutes are usually patterned after the federal antitrust statutes.
Express warranties are often found in published materials such as advertisements,
brochures, and catalogs.
The shareholders do not have the power to terminate a corporation.
If a sales or lease contract does not state the time of performance then it is
unenforceable under the UCC.
The Communications Decency Act of 1996 provides that “(n)o provider or user of an
interactive computer service shall be treated as the publisher or speaker of any
information provided by another information content provider.”
The price charged for the sale or transfer of Web domain names is regulated in order to
prevent excessive prices from being charged.
If no time is stated in the offer, the offer terminates after thirty (30) days.
In terms of the conspicuous display of a warranty disclaimer, a heading printed in
uppercase letters or a typeface that is larger or in a different style than the rest of the
body of a sales or lease contract is considered to be “conspicuous.”
Houses, apartment buildings, manufacturing plants, and office buildings constructed on
land are real property.
In an assignment, the assignee cannot receive greater rights than those held by the
assignor.
State antitakeover statutes apply to corporations that are incorporated in the state.
The basic rule for whether the principal is liable for the negligence of an agent is
whether the principal knew about the agent’s commission of the tort.
A gift of real estate by will is called a devise.
The police power permits states to enact laws to protect or promote the public health,
safety, morals, and general welfare.
Anti-delegation clauses are seldom enforced by the courts.
If a consumer product is found to be potentially hazardous, the manufacturer can be
required to recall, repair, or replace the product or take other corrective action.
Bankruptcy law is exclusively federal law; there are no state bankruptcy laws.
Two (2) of the four (4) basic contract requirements are: 1) agreement between the
parties and 2) signatures of the parties.
All fifty (50) states in the United States base their legal system on English common law.
The purpose of a fictitious business name statement is to reduce a proprietor’s personal
liability for debts and other legal obligations incurred by the business.
The equitable doctrine of quasi-contract allows a court to award monetary damages to a
plaintiff for providing work or services to a defendant, provided that an actual contract
existed between the parties.
In Ultramares Corporation v. Touche, the United States Supreme Court held that an
accountant cannot be held liable for negligence unless the plaintiff was either in privity
of contract or a privity-like relationship with the accountant.
A legal right that arises out of a breach of contract may not be assigned.
Already existing goods are identified when the contract is made and names the specific
goods sold or leased.
The two (2.) tests the United States Supreme Court has developed for determining the
lawfulness of a restraint of trade are the rule of inquiry and the per diem rule.
Since the plaintiff has the burden of proof in a civil case, only the plaintiff’s attorney is
allowed to make an opening statement to the jury.
A member of a manager-managed limited liability company who is not a manager owes
no fiduciary duty of loyalty or care to the LLC or its other members.
In order to be effective, a condition must be express.
In a product liability action based on strict liability, the plaintiff must prove the
existence of a defect, but does not need to prove who caused the defect.
A statement such as “Are you interested in selling your building for $2 million?” is not
an offer.
The owner of a trade secret can bring a civil lawsuit under state law against anyone who
has misappropriated a trade secret through unlawful means.
The objective theory of contracts asks whether a reasonable person, viewing the
circumstances, would conclude that the parties intended to be legally bound.
An actual contract may be either ________ or ________.
A) express-in-law; implied-in-law
B) express-in-law; implied-in-equity
C) express; implied-in-fact
D) express; implied-in-law
E) express; implied-in-equity
The school of jurisprudence that believes that legal rules are unnecessary and used by
the powerful to maintain the status quo, and that disputes should be resolved based on
general notions of fairness, is:
A) the Command School
B) the Sociological School
C) the Critical Legal Studies School
D) the Law and Economics School
E) the Analytical School
Which of the following is true regarding when a strike can be called?
A) The union may call a strike only if thirty percent of union members vote for a strike.
B) The union may call a strike only if a majority of the union’s members agree.
C) The union may call a strike only if eighty percent of union members vote for a strike.
D) The union may call a strike only if ninety percent of union members vote for a
strike.
E) The union may call a strike on its own, without a vote by union members.
Currently, the immigration laws of the United States are administered by which of the
following agencies?
A) the United States Department of the Interior
B) the United States Department of Commerce
C) the United States Citizenship and Immigration Services
D) the United States Border Patrol
E) the Federal Bureau of Investigation
The remedy, or relief, that was available in the law courts of England was:
A) specific performance.
B) fines and imprisonment.
C) monetary awards for damages.
D) returning the parties to their positions before the dispute arose.
E) substantial performance.
Regarding a promissory note, the party who makes a promise to pay is the ________ of
the note, and the party to whom the promise to pay is made is the ________.
A) drawer; holder in due course
B) drawee; holder in due course
C) drawer; payee
D) drawee; payee
E) maker; payee
A(n) ________ is an order of the court declaring that a marriage did not exist.
A) injunction
B) invalidation
C) dissolution
D) divestiture
E) annulment
An accommodation party who signs an instrument guaranteeing payment is ________
liable on the instrument.
A) primarily
B) secondarily
C) conditionally
D) never
E) exclusively
A penal code is:
A) the classification of a particular crime.
B) a series of statutes that define precisely the conduct that is considered criminal.
C) the list of sentences for particular crimes.
D) the unwritten code of conduct among prison personnel.
E) another term used to describe a crime’s degree, such as first degree or second degree.
Monty was an odd sort of fellow who spent most of his time tinkering in his garage. He
was certain that some day he would invent something that would make him very
wealthy. Finally, he thinks he has the million-dollar idea. He has invented a device that
attaches to both his phone line and through his computer to the Internet to block
telemarketing calls without having to pay a service fee for the capability to the local
phone company. The technology for this already existed, but Monty was the first to put
it together in this way. Monty is waiting to perfect this invention before filing a patent
application. Monty learns that someone else has invented a similar device after he did,
but has already filed an application. Also, someone broke into Monty’s garage and stole
the information about the invention. Discuss Monte’s legal situation.
Stan Johnson is the secretary of Balzene’s, Inc. a small corporation. Before an important
meeting with some potential clients, Stan purchases some supplies from a local office
supply store. Stan takes one of the company’s checks that are imprinted with the
company’s name to pay for this merchandise. In his rush before the meeting, Stan
simply signs the check “Stan Johnson.” Which of the following is true in this situation?
A) Stan is not an agent of Balzene’s, because he did not sign as an agent.
B) Stan will have exclusive primary liability on this check.
C) Stan and Balzene’s will share primary liability on this check.
D) Stan will not have any liability on this check, because the check was imprinted with
Balzene’s name.
E) Balzene’s has exclusive primary liability at the time the check is written.
Unless the parties agree otherwise, when is payment required for goods that are
accepted?
A) when and where the goods are delivered
B) at least 10 days before shipment
C) at least 24 hours before shipment
D) at least 48 hours after delivery
E) at least 5 days after delivery
Mark recently started a small business and acquired a domain name for the business. At
the same time, he remembered hearing about people buying up names related to
companies and to famous individuals and then selling the names for astronomical sums.
Mark wants to buy the domain name “Sharonstone.com.” He figures he will start a fan
club for the famous movie star, and then see if he can sell the domain name to her for a
profit. Which is true in these circumstances regarding Mark’s options?
A) He will be unable to buy the name because it is the name of a person.
B) He will have to give Sharon Stone the first opportunity to buy the name.
C) He could buy the domain name, but will likely be liable under the
Anti-cybersquatting Consumer Protection Act since Sharon Stone is famous, and since
obtaining the domain name “Sharonstone.com” to obtain a profit from her would legally
constitute bad faith.
D) He could buy the domain name, and will be liable under the Anticybersquatting
Consumer Protection Act only if it can be proven that he acted in bad faith in acquiring
the name and that Sharon Stone can prove that she suffered damages from his Web site.
E) He could buy the domain name, but could be liable under the Anticybersquatting
Consumer Protection Act only if it is proven that he acted in bad faith in acquiring the
name and if Sharon Stone can prove that he earned profits from the fan club Web site.
Which of the following is not one of the fees typically found in a franchise agreement?
A) initial license fee
B) royalty fee
C) assessment fee
D) lease fee
E) annual continuation fee
Which of the following is considered to be fully protected speech under the U.S.
Constitution?
A) political speech
B) commercial speech
C) offensive speech and commercial speech
D) political speech and commercial speech
E) political speech, commercial speech and offensive speech
In a proxy contest involving management on one side and dissenting shareholders on
the other side, what is true about the right to recover the costs incurred in conducting
the proxy fight?
A) Neither side can recover its costs in the proxy contest.
B) If the contest involves a policy issue, the winning side can recover its costs from the
losing side.
C) The victorious side can always recover its costs from the corporation in a contest
involving a policy issue.
D) Management is the only side that can ever recover its costs from the corporation in a
proxy contest involving a personal issue.
E) Each side can recover its costs from the corporation in a proxy contest involving
matters of policy, regardless of the outcome.
Which of the following is a type of damages recoverable in a breach of contract action?
A) dispensatory
B) tangential
C) non-liquidated
D) nominal
E) non-cumulative
Which of the follow is an element of a consignment?
A) The consignee only remits a small fee to the consignor when goods are sold.
B) The consignor retains the risk of loss and title.
C) A consignee’s creditors may have a claim to consigned goods under certain
circumstances.
D) The consignor retains the risk of loss, but passes title to the consignee.
E) The consignor keeps title, but passes the risk of loss to the consignee.
Which of the following is a correct statement regarding the legal requirements for a
bona fide occupational qualification?
A) It must be job-related and cost effective.
B) It must be job-related and non-discriminatory.
C) It must be job-related and a business necessity.
D) It must be rationally based and evenly applied.
E) It must be long-term and permanently applied.
Which of the following is not a Sixth Amendment right?
A) the right to be free from cruel and unusual punishment
B) the right to cross-examine witnesses
C) the right to have the assistance of a lawyer
D) the right to an impartial jury
E) the right to a speedy trial
Which of the following is true about exemptions for an individual in Chapter 7
bankruptcy?
A) The federal statutory exemptions apply in all cases.
B) Exemptions are always determined by state law.
C) The federal law allows states to establish their own exemptions, which can be either
mandatory or optional, to use instead of federal exemptions.
D) The state exemptions, where present, are always “pro-debtor.”
E) Homestead exemptions are never higher under state law than under federal law.
Stella is a volunteer at her church during bingo night. At the end of the night, it is her
responsibility to take the evenings profits and drop them in the night deposit box at the
local bank. She is given the leather and canvas case filled with money and she leaves
for the bank. On the way there, she decides to keep the money and drives to another
state. What crime has she committed?
A) extortion
B) burglary
C) embezzlement
D) robbery
E) larceny
Which of the following is true about both sureties and guarantors?
A) The arrangement is one in which the surety or guarantor agrees to pay the debt of
another party, under certain circumstances.
B) The surety or guarantor becomes secondarily liable on the debt.
C) The obligation arises only if the debt cannot be collected from the primary debtor.
D) The bankruptcy of the primary debtor will release both the primary debtor and the
surety or guarantor from the debt.
E) The defense of the debtor’s incapacity may be asserted.
The Magnuson-Moss Warranty Act covers ________ warranties related to ________
products.
A) implied; consumer
B) written; consumer
C) implied; commercial
D) written; commercial
E) written and implied; consumer and commercial
A ________ marriage is one in which the parties have not obtained a valid marriage
license, nor have they participated in a legal marriage ceremony. Instead, the parties are
eligible to marry, the parties voluntarily intend to be husband and wife, the parties live
together, and the parties hold themselves out as husband and wife.
A) common law
B) de facto
C) prima facie
D) statutory
E) quasi-
Which of the following is true?
A) The creditor is generally not entitled to obtain a deficiency judgment where the
collateral is goods, even if their sale does not cover the amount owed on the underlying
debt.
B) The right of redemption for collateral extends until a reasonable time after its
disposal.
C) To exercise the right of redemption, the debtor must not only pay the amount owed,
but also all expenses reasonably incurred by the secured party in retaking and holding
the collateral, and any attorney’s fees and legal expenses provided for in the security
agreement and not prohibited by law.
D) Deficiency judgments are generally against public policy, unless reasonable in
amount.
E) Redemption rights are not available for personal property.
Sarah has given twenty-four acres of land to Kent County for as long as the land is used
as a park. Kent County has a:
A) life estate.
B) fee simple defeasible.
C) fee simple absolute.
D) tenancy at will.
E) tenancy at sufferance.
What is a “lockout” in connection with labor law?
A) an action by workers to prevent management from entering the company’s premises
B) an action by workers to prevent customers from entering the company’s premises
C) an action by workers to prevent suppliers from entering the company’s premises
D) an action by management to prevent union organizers from entering the company’s
premises
E) an action by management to prevent workers from entering the company’s premises
Our country’s form of government is referred to as
A) imperialism.
B) federalism.
C) altruism.
D) statism.
E) nationalism.
Which of the following exculpatory clauses will most likely be enforceable?
A) an exculpatory clause that relieves a riding stable of negligence
B) an exculpatory clause that relieves a riding stable from intentional torts
C) an exculpatory clause that relieves a riding stable from criminal acts
D) an exculpatory clause that is hidden in an eight-page document that all riders are
required to sign
E) an exculpatory clause that the injured party signs after an accident involving the
riding stable’s gross negligence
Which of the following is not a buyer’s remedy?
A) right to reject
B) right to specific performance
C) right to cancel the contract
D) right to recover damages
E) right to resell
Jan has two daughters, Ann and Betty. Each of these daughters has two sons. While all
of these persons are living, Jan writes a will leaving her entire estate to her “lineal
descendants, per stirpes.” After Jan writes this will, the older daughter, Ann, dies. Jan
dies next. If the value of Jan’s estate is $120,000, how much does Ann’s older son
receive?
A) $20,000
B) $24,000
C) $30,000
D) $36,000
E) $40,000
What is the result of the “effects on interstate commerce” test?
A) The federal government can regulate all interstate commerce that actually crosses
state lines.
B) Prior to enacting laws, states are required to identify any effects that the law might
have on interstate commerce.
C) The federal government can regulate a business activity that takes place within a
single state if the activity has an effect on interstate commerce, even though the
regulated activity does not itself involve interstate commerce.
D) Commercial speech protections apply only to speech that has an effect on interstate
commerce.
E) The federal government can regulate transportation.
Which of the following is true?
A) Very important cases are usually initially tried in the U.S. Supreme Court.
B) When a case is appealed, the appellate court usually holds a new trial.
C) In the federal court system, there are usually two levels of appeal by right.
D) The U.S. Supreme Court chooses to review only a small fraction of those cases that
it is asked to review.
E) The U.S. Supreme Court chooses to review only half of those cases that it is asked to
review.
Which of the following is not true regarding the seller’s and lessor’s right to dispose of
goods?
A) The disposition of the goods must be made in good faith.
B) The seller or lessor may recover the difference between the disposition price and the
original contract price.
C) The seller or lessor may not recover any incidental damages.
D) The profit does not revert to the original buyer if the goods are disposed of at a
higher price than the buyer contracted to pay.
E) The disposition of the goods must be made in a commercially reasonable manner.