The UCC defines a debtors “rights in collateral in Article
a. True
b. False
Which of the following is an exception to the suretyship provision requirement under
the statute of frauds?
a. A collateral promise made to the creditor.
b. A promise, the leading object of which is to obtain an economic benefit for oneself.
c. A collateral promise where there are three parties and two contracts involved.
d. A promise by an executor to pay the debts of the decedent from the executor’s own
funds.
a. What are the three essentials of an offer?
b. How does one distinguish between an offer and an invitation seeking offers?
The term “nuisance” in the law may mean two distinct types of wrongful actions: one a
private nuisance, the other a public nuisance.
a. True
b. False
An oral contract for the transfer of an interest in land may be enforced if the party
seeking enforcement has so changed his position in reasonable reliance on the contract
that a court can prevent injustice only by enforcing the contract.
a. True
b. False
The state may appeal a verdict of “not guilty” if there is an error in the trial.
a. True
b. False
Many states impose no limit on the rate of interest that may be charged on loans to
corporations.
a. True
b. False
Fred contracts to sell a certain tract of land to Mary for $20,000, but the contract is
silent as to the time of delivery of the deed and payment of the price. In this case:
a. the payment of the $20,000 and the delivery of the deed are independent of each
other.
b. the delivery of the deed is a condition subsequent to the payment of the $20,000.
c. the payment of the $20,000 and the delivery of the deed are mutually dependent and,
in the absence of an agreement to the contrary, are concurrent conditions.
d. the payment of the $20,000 is a condition precedent to the delivery of the deed.
a. Velinda and Thelma enter into a contract. What are the ways in which Velinda can be
discharged?
b. What are the ways in which both parties can be discharged?
Which of the following is true in relation to market share and monopoly power?
a. A market share greater than 50% generally indicates monopoly power.
b. A market share between 50 and 75% is, in itself, inconclusive in determining
monopoly power.
c. Market share is rarely used as a test of monopoly power because it is difficult to
determine.
d. Market share is a common test for monopoly power because it is an easy, objective
measurement for courts to determine.
On March 1, Tammy, a student, received a telephone call from Watterson, Inc. offering
her a job for one year beginning on June 15, after completion of the school year.
According to the personnel manager, she will have to move to California and be ready
to start work at 8:00 a.m. on June 15. Should Tammy ask for a letter confirming the
telephone conversation if she accepts the offer immediately?
a. Yes, because the job offer is a collateral promise.
b. Yes, because the job offer is covered by the parol evidence rule.
c. Yes, because the job offer is for longer than one year from March 1.
d. No, because the job offer is for one year from June 15.
State action is a term that may include conduct by private parties who perform a public
function.
a. True
b. False
A lessor retains title to the goods and has the right to recover possession of them upon
default by the lessee.
a. True
b. False
Webster Industries has a unionized workforce. Fredricks job of operating a stamping
machine has been eliminated by technological advances, but the union is requiring
Webster to pay Fredrick for the work he would have performed had the machine still
been in operation. This requirement is a violation of:
a. the Norris-LaGuardia Act.
b. the Labor-Management Relations Act.
c. the National Labor Relations Act.
d. no labor law; it is just a result of lawful, effective union negotiation.
Which of the following is not generally required in order to have a valid contract?
a. Mutual assent.
b. A lawful purpose.
c. Fairness of the bargain.
d. Parties who have contractual capacity.
Despite 402A’s bar of contributory negligence in strict liability cases, some courts apply
comparative negligence to strict liability cases.
a. True
b. False
Bill lends Harvey $1,500 and the loan is secured by Harvey’s furniture. If Bill files a
financing statement on January 30, 2012 how long will it be effective?
a. Until July 30, 2012.
b. Until January 30, 2017.
c. Until January 30, 2032
d. For 30 days.
The general partners of a limited partnership have almost exclusive control and
management of the limited partnership.
a. True
b. False
An involuntary petition for bankruptcy can be filed against a:
a. non-profit charitable organization.
b. partnership that invests in real estate.
c. life insurance company.
d. wheat farmer.
Under the Revised Act, the filing of the articles of incorporation by the secretary of
state is conclusive proof that the incorporators have satisfied all conditions precedent to
incorporation so that a shareholder or creditor would be unable to challenge the
existence of the corporation.
a. True
b. False
In the First State Bank of Sinai v. Hyland case, the Supreme Court of South Dakota
held:
a. Mervins obligation on a promissory note was void due to his alcohol-related
incapacity.
b. Mervin ratified his voidable contract by conduct, making it a fully valid legal
obligation.
c. the alcohol intoxication of a party to a contract does not affect the contracts
enforceability.
d. Mervin could only use express language to ratify a contract formed while he was
incapacitated by alcohol use.
A limited partner who participates in the control of the business has broad liability to
third persons regardless of whether they have transacted business with the partnership
believing the limited partner is a general partner.
a. True
b. False
The use of cash-out combinations has raised questions concerning both their purpose
and their fairness to minority shareholders. In this context, fairness includes:
a. fair dealing.
b. fair price.
c. both (a) and (b).
d. tender.
A number of courts have used the doctrine of promissory estoppel to displace the
requirement of a writing by enforcing oral contracts within the statute of frauds.
a. True
b. False
All independent contractors are agents, but not all agents are independent contractors.
a. True
b. False
An example of a “certification mark” would be:
a. Holiday Inns.
b. Xerox.
c. Real Cheese.
d. Nabisco.
Much of federal, state, and local law in this country has been established by
__________, which people label as the “fourth branch of government” because they
possess tremendous power.
a. executive committees
b. administrative agencies
c. the courts
d. legislatures, including Congress
In which of the following areas do special state trial courts have jurisdiction?
a. Traffic offenses.
b. Administration of wills and estates.
c. Family courts with jurisdiction over divorce and child custody cases.
d. Both (b) and (c) are correct.
e. None of these.
The U.S. Constitution provides that Congress has the power to regulate commerce with
other nations and among the states. The Commerce Clause has what effect(s)?
a. It provides a broad source of power for the federal government to regulate the
economy.
b. It restricts state regulations that obstruct or unduly burden interstate commerce.
c. Both of these.
d. Neither of these.
Third party rights in contracts can arise by assignment of rights, delegation of duties, or
in third party beneficiary contracts.
a. True
b. False
Manuel applied for a variance from the local zoning ordinance in order to build a
building. His neighbor, Sandra, appeared before the zoning board to speak in opposition
to the application. At the hearing, Sandra testified under oath and made several
untruthful statements regarding Manuel’s character which she believed, but which were
not correct. The variance was denied. Manuel is now considering a lawsuit against
Sandra for slander. Does Manuel have a valid cause of action against Sandra? Explain.
What are the elements that he must prove to win a case of slander? What defenses can
Sandra raise to the action?
Name and briefly describe the special features or extraordinary duties of five special
types of bailments.
Discuss a minor’s duty to a seller upon disaffirmance of a contract for the sale of goods.
Discuss whether officers and directors may entrust important work to others and their
potential liability if they do.
Briefly discuss the Contract Clause of the Constitution.
What is the broad category of defenses available to the tort of defamation? Under what
circumstances can the U.S. Constitution be used as a defense to an action for an
intentional tort?
What is negotiation? How does one become a “holder” of an instrument?
Explain what is considered a “major rule and the effect of an administrative rules being
in this category.
How has the Code affected the rights of good faith purchasers with respect to minors?
Discuss the arguments for and against businesses’ involvement in socially responsible
activities.
List and define the common law remedies for environmental damage.
Under the Restatement and the Code, when can supplemental evidence be used with a
written contract?
Myra, Elsa, and Ellen are sisters who own 500 acres of land as tenants in common.
Discuss the interest each has in the real estate.
Discuss preemptive rights. Are preemptive rights more important in a closely held
corporation or in a publicly held corporation? Explain.
What are the liabilities of a limited partner in a limited partnership?
Distinguish between a note and a certificate of deposit. How are they alike? How are
they different? Explain your answer.
Hubert bought heavy-duty, sharp hedge clippers to trim the hedges in his yard. In the
process of using the clippers, he severely cut his hand. He is now suing the
manufacturer because the clippers are unreasonably dangerous. Can he recover?
Explain.
Define and discuss horizontal and vertical privity. Explain the effect of the Code and
the courts on the concept of privity of contract.