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Upon dissolution of a partnership, all authority of a partner to act on behalf of the
partnership terminates.
a. True
b. False
In relation to the Takings Clause, public use has been held to be synonymous with
public purpose.
a. True
b. False
The principal has the duty to provide the employee with reasonably safe conditions of
employment and to warn the employee of any unreasonable risks involved in the
employment.
a. True
b. False
Professor Doright has a life insurance policy on his own life that provides that in the
event of his death, his mother will receive the proceeds. Professor Doright's mother is
a(n):
a. incidental beneficiary.
b. creditor beneficiary.
c. donee beneficiary.
d. assignee.
Ratification of a contract, once effected, is final and cannot be withdrawn.
a. True
b. False
The buyer's rejection of nonconforming goods or tender is rightful under the perfect
tender rule.
a. True
b. False
Agatha, Betty, and Clara are sisters who own 300 acres of land as joint tenants.
a. What interest does each of them have in the parcel of land?
b. If Betty dies, what happens to her share of the 300 acres?
c. If Clara sells one-half of her interest to Diane, what interest does Diane acquire in the
300-acre parcel?
A union shop contract requires the employer to hire only union members.
a. True
b. False
Authority conferred upon an agent for a specified time does not continue after the
specified time.
a. True
b. False
The courts may not create implied trusts.
a. True
b. False
Which of the following is NOT a characteristic of the corporate form of doing business?
a. Limited liability.
b. Perpetual existence.
c. Informal organization.
d. Transferability of corporate shares.
The issuance of favorably priced shares to management while excluding other
shareholders normally will constitute a violation of the fiduciary duty.
a. True
b. False
At common law, a minor was a person who was under the age of twenty-one years.
a. True
b. False
Which of the following would not be considered an abnormally dangerous activity,
subjecting the person who carries it out to strict liability?
a. Pile driving.
b. Transmitting gas through a gas pipe.
c. Collecting water in a dangerously large quantity.
d. Emitting noxious fumes in a subdivision.
A codicil to the will must be executed with all the formal requirements of a will.
a. True
b. False
Adam wants to buy a six-passenger car. The salesman tells him that the two-seat sports
car Adam sees on the car lot would be just perfect for six people. Adam test drives the
car and then buys it.
a. Adam has a valid cause of action for fraud.
b. Adam is not entitled to relief based on fraud because he was not justified in relying
upon the salesman's representation that the car would seat six people.
c. The element of scienter is missing in this fact situation.
d. The salesman is in a confidential relationship with Adam.
a. How do you distinguish between tangible and intangible property?
b. How do you distinguish between real and personal property?
A definite time required for negotiability would NOT be satisfied in which instance?
a. Payable on or before January 2, 2015.
b. Payable one year from the completion of the building
c. Payable one week after demand is made.
d. Payable on June 15, 2014 or, if the building is not complete on that date, one year
from that date.
An authorization to confess judgment on the instrument destroys its negotiability.
a. True
b. False
The time for dishonor of a check can vary greatly depending on the number of banks
involved in the collection process.
a. True
b. False
Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash,
tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you."
Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be:
a. an accord.
b. a novation.
c. a rescission.
d. a satisfaction.
Warrick makes a $10,000 investment in a debenture issued by Wryteway Company.
Warrick is now an unsecured creditor of Wryteway Company.
a. True
b. False
Sole proprietors have limited liability for the sole proprietorship's debts.
a. True
b. False
Barry's Sport Shop calls Champion Tee Shirt Company to order 200 designer tee shirts
at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the
order is filled, he calls to change the order to 300 tee shirts. Champion sends 200. Can
Barry force Champion to send the additional 100?
a. No, because there is no consideration for the extra 100 shirts.
b. No, because Barry does not have a writing signed by Champion Tee Shirts.
c. Yes, because this is a subsequent modification of the original contract.
d. Yes, because Champion Tee Shirts is a merchant within the meaning of Article 2 of
the UCC.
Remedies for the Equal Pay Act would include:
a. employer fines.
b. an award of non-liquidated damages.
c. enjoining the employer from further unlawful conduct.
d. All of these.
Morris ordered 1,000 sq. ft. of green carpet from RS Company. In error, RS Company
shipped 1,000 sq. ft. of gold carpet. In this case, the risk of loss remains with the seller
until the seller remedies the defect or until Morris accepts the gold carpet.
a. True
b. False
Identify and give the basic characteristics of each of the following specialized types of
corporations.
a. Professional corporations
b. Public corporations
c. Nonprofit corporations
White-collar crime is defined as a nonviolent crime usually involving deceit,
corruption, or breach of trust.
a. True
b. False
A shareholder of N Corporation dissents to the corporation's merger with J Corporation.
If the appraisal remedy is granted, the shareholders will be paid the:
a. par value of their shares.
b. stated value of their shares.
c. fair value of their shares.
d. accounting book value of their shares.
A(n) __________ is an intended beneficiary of a contract who receives the benefits of
the contract as a gift.
a. incidental beneficiary
b. intended beneficiary
c. assignor
d. donee beneficiary
The definition of a limited liability company includes that:
a. it is a noncorporate business.
b. it limits liability for all its owners.
c. all members may participate in management of the business.
d. All of these.
e. None of these.
