The tort of invasion of privacy actually consists of:
a. unreasonable intrusion into the seclusion of another.
b. unreasonable public disclosure of private facts.
c. unreasonable publicity that places another in a false light.
d. All of these.
Carolyn, a cashier at Tops Supermarkets, may cash checks for up to $20 over a
purchase amount. A friend needs money for a dress so Carolyn cashes a check for $50
with no purchase. The check bounces. Carolyn is:
a. liable because she violated her duty of obedience.
b. liable because she breached her duty to inform.
c. not liable since she has apparent authority to take the check.
d. not liable unless she knew her friend did not have the money in the bank.
A collective mark is used in connection with goods or services to certify their regional
origin.
a. True
b. False
The UCC prohibits assignments of $5,000 or more.
a. True
b. False
Larson & Son manufactured welders that frequently malfunctioned, setting clothing on
fire and causing serious burns. Larson & Son sold all of its assets to Swenson Co.,
which continued to manufacture the Larson welder product line. Eleven months after
Swenson’s purchase, one of Larson’s customers sued Swenson for injuries caused by a
welder purchased from Larson, six months prior to the purchase by Swenson. Under the
circumstances, Swenson Co.:
a. cannot be held liable, because it is a corporation.
b. cannot be held liable, because it did not manufacture the welder in question.
c. might be held liable in some states under strict liability.
d. could not be liable if Larson & Son still exists as a corporate entity.
Concurrent federal jurisdiction could exist for cases involving:
a. admiralty.
b. treaties of the United States.
c. antitrust.
d. All of these.
Identify the constitutional protections given to a criminal defendant by each of the
following Amendments to the U.S. Constitution. How does each apply to the procedure
involved in arresting and trying a criminal defendant?
a. Fourth Amendment
b. Fifth Amendment
c. Sixth Amendment
d. Eighth Amendment
Which of the following is correct with regard to treasury shares?
a. The acquisition of such shares by the corporation is a distribution to shareholders
with an effect similar to that of a dividend.
b. Under the Revised Act, treasury shares are unauthorized but issued.
c. The 1980 amendments to the MBCA eliminated the concept of treasury shares.
d. Treasury shares are issued and outstanding.
Melissa cannot transfer control of the goods held by a bailee by transferring a document
of title.
a. True
b. False
Owners of interests in businesses with unlimited liability place their entire estate at risk.
a. True
b. False
A contract agreeing to indemnify the insured against certain specified defects in title to
real property is called:
a. title insurance.
b. a warranty deed.
c. guarantee insurance.
d. a real estate guarantee.
Which of the following would NOT be exempt from registration under the 1933
Securities Act?
a. An offering restricted to the residents of the state in which the issuing company is a
resident and doing business.
b. An offering by a noninvestment company issuer for $4 million in securities over 12
months without general advertising or general solicitation.
c. An offering of limited partnership tax shelters.
d. A private offering to sophisticated investors who will not redistribute them.
Growingreen, a gourmet fresh food store that sells only the highest quality fruits, orders
100 lbs. of peaches from Western Fruits “on approval.” Growingreen has never dealt
with Western before this transaction. The peaches arrived on Saturday, but the owners
of Growingreen were too busy to open the crates. Sunday they are closed. Monday at 4
p.m., they opened the boxes and inspected the peaches. They did not meet the high
standards of Growingreen, so they nailed the crates shut and ordered a truck to return
them the next day. They arrived at Western on Thursday, totally spoiled, a week after
they were sent. This is the first time Western knew they were not being accepted. Who
is responsible for the damages to the peaches?
a. Growingreen, since it did not inspect and notify Western within a reasonable time.
b. Growingreen, the risk of loss was on them when the peaches arrived.
c. Western, since they retained the risk of loss until approval.
d. Western, because they agreed to take the goods back.
Caryn deposits a check in her bank at 2:30 on Monday. The bank may, under the Code,
treat the check as having been deposited on Tuesday for purposes of meeting the
midnight deadline rule.
a. True
b. False
The characteristics of a qualified or base fee estate include(s) that:
a. it is possible to convey or will property to a person to enjoy absolutely, subject to its
being taken away at a later date should a certain event occur.
b. a holder of a qualified fee interest may transfer the property by deed, subject to the
initial condition.
c. a qualified fee interest may pass by intestate succession.
d. All of these.
A critical issue in banking law is at what point an item is finally paid.
a. True
b. False
A special warranty deed will give the buyer better rights against the grantor (seller) than
a general warranty deed.
a. True
b. False
A contract that requires a person to commit a tort will be enforced by the courts.
a. True
b. False
Discharge by performance is the most frequent method of discharging a contractual
duty.
a. True
b. False
Which of the following is true regarding property distribution upon a person’s death
intestate?
a. At common law, property lineally ascended to parents if there was no surviving
spouse and there were no children.
b. Today, in all states, if there is a surviving spouse, he or she gets the entire estate.
c. Rules of descent vary widely from state to state.
d. All of these.
The Contract Clause of the Constitution prevents states from retroactively modifying
public charters and private contracts.
a. True
b. False
To certify a check, the bank must:
a. tell the one who presents it.
b. send a letter to the drawer.
c. write the acceptance on the check.
d. Any of these will be sufficient.
Any natural person having full capacity may enter a partnership.
a. True
b. False
A company does not have to issue all of the shares authorized by the corporate charter,
but it cannot issue more shares than are authorized.
a. True
b. False
An employer directs his vice-president of marketing to fix prices with their company’s
competitors. The employee does so. Under these facts:
a. only the employee is criminally liable.
b. both the employee and the employer are criminally liable.
c. only the employer is criminally liable.
d. neither the employee nor the employer is criminally liable.
A(n) ___________ signs an instrument to lend his credit to an instrument, and his
liability is determined by the capacity in which he signs.
a. indorser
b. accommodation party
c. authorized agent
d. maker
A principal factor that the courts consider in determining limitations on the causal
connection between the defendant’s negligence and the plaintiff’s injury is:
a. negligence per se.
b. unforeseeable consequences.
c. superseding causes.
d. Both unforeseeable consequences and superseding causes are factors.
Robert paid William $1,000 for a rare first edition of an Edgar Allen Poe novel. The
sales contract states that the book is to be delivered within ten days. William, however,
refused to deliver the book as promised. In order to sue for specific performance under
the UCC, Robert must prove that money damages will not be adequate compensation
for his loss.
a. True
b. False
Courts will never limit freedom of contract.
a. True
b. False
The Freedom of Information Act and the Government in the Sunshine Act are different
names for the same statute.
a. True
b. False
In the Carter v. Tokai Financial Services, Inc. case, the agreement was found to:
a. fit within the definition of a secured transaction.
b. be governed by UCC Article 9.
c. be for an initial term of five years, which ARC had an option to renew for nominal
consideration.
d. be a true finance lease.