Stare decisis has no application in a dual court system.
a. True
b. False
Possession is available as a means of perfecting a security interest in accounts and
letter-of-credit rights.
a. True
b. False
The validity of zoning is based on the police power reserved to the states.
a. True
b. False
A trust is presumed to be irrevocable unless the grantor reserves the power of
revocation.
a. True
b. False
Regarding priority claims:
a. each claimant in a priority class shares pro rata if the assets cannot satisfy all claims
in the class.
b. employees have a priority for contributions to employee benefit plans but only to the
extent that the $4,500 cap for unpaid wages has not been reached.
c. subordination agreements are not enforceable.
d. All of the above.
e. Both (a) and (c) are correct.
All states agree that a minor who has fraudulently misrepresented her age when
entering into a contract has no power to disaffirm the contract.
a. True
b. False
The National Cooperative Research Act:
a. prohibits using the rule of reason test in judging joint ventures in research and
development of new technology.
b. is designed to clear up uncertainty about the legality of joint ventures.
c. now requires treble damages if joint ventures are formed in violation of Section 1 of
the Sherman Act.
d. All of these.
All price discrimination is illegal under the Robinson-Patman Act.
a. True
b. False
Vladimir entered into a contract to buy Daniel’s collection of rare stamps. Vladimir
mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, “I’ll
never part with these stamps.” Are the following remedies available to Vladimir?
a. Restitution: Yes; Specific Performance: Yes
b. Restitution: Yes; Specific Performance: No
c. Restitution: No; Specific Performance: Yes
d. Restitution: No; Specific Performance: No
Carson, who is an agent for Peter, breaches his fiduciary duty to Peter. Carson:
a. is liable to Peter for breach of contract.
b. is liable to Peter in tort for any losses caused by the breach.
c. must make restitution for any profits or property received in breach of this duty.
d. All of these are correct.
A “closed shop” is:
a. the same as a “runaway” shop.
b. one in which a union once existed but has since been voted out.
c. one in which a union is barred.
d. outlawed by the Taft-Hartley Act.
Edmund, who is auditing the books of Windgrove Co., becomes aware of information
indicating an illegal act within the company. Edmund must:
a. determine whether an illegal act occurred and, if it did, the possible effect on
Windgroves financial statements.
b. notify the SEC immediately so it can conduct an investigation.
c. resign immediately to avoid criminal liability.
d. notify local law enforcement and remove himself from any association with the
company.
Jean is called for jury duty. However, the defendant’s attorney decides to have her
removed from the jury pool because he wants the jury to be comprised of
predominantly males. The defendants attorney:
a. will succeed in keeping Jean off the jury because he has a limited number of
peremptory challenges for which no cause is required to disqualify a juror.
b. will succeed in keeping Jean off the jury because his defendant is a male. The
attorney may use his unlimited number of challenges for cause because of the potential
for gender discrimination on the part of Jean.
c. may be successfully contested on the use of the peremptory challenge to exclude Jean
from the jury on the grounds that the action is unconstitutional.
d. may not have the privacy of his theory of a case as manifested in peremptory
challenges invaded by a judge.
Under the Due Process Clause, entitlements conferred by the government, such as
social security payments, are property, which cannot be revoked without procedural due
process.
a. True
b. False
A(n) __________ is a measure designed to protect the public from unqualified
practitioners.
a. exculpatory clause
b. revenue license
c. regulatory license
d. usury statute
A general partnership that, by making the statutorily required filing, limits the liability
of its partners for some or all of the partnership’s obligations is known as a:
a. limited liability partnership.
b. limited liability company.
c. limited liability limited partnership.
d. limited partnership.
Agents and principals have mutual fiduciary duties to one another.
a. True
b. False
In Donahue v. Rodd Electrotype Co., Inc., the court’s opinion stated:
a. by definition, a close corporation strongly resembles a partnership.
b. minority shareholders have no right to rely on the loyalty and abilities of the
majority.
c. minority shareholders in a close corporation can cause dissolution of the corporation.
d. when a close corporation purchases the shares of a controlling stockholder, there is
necessarily a preferential distribution of the corporations assets.
Kevin delivers to Zach nonconforming goods. Zach accepts, but later discovers the
defect and rightfully revokes acceptance. If the goods are destroyed through no fault of
Kevin or Zach:
a. if Zachs insurance is adequate, it will cover the loss and Kevin would not bear any of
the loss.
b. Kevin would bear the loss of these nonconforming goods, whether or not Zach has
insurance.
c. Zach will bear the loss, whether he has insurance or not.
d. Kevin and Zach will equally share the loss.
Legislative rules may, in certain circumstances, exceed the authority granted to an
agency by the enabling statute.
a. True
b. False
What is the supreme law of the land in the United States?
a. Federal statutes.
b. Treaties.
c. Case law as developed through the U.S. Supreme Court.
d. The U.S. Constitution.
The duration of a copyright is the same whether the copyright is owned by the author or
if it is a work for hire.
a. True
b. False
When existing goods are identified to the contract of sale, the buyer acquires a special
property interest in the goods.
a. True
b. False
The Civil Rights Act of 1964 would scrutinize which of the following situations?
a. A woman engineer was denied a job for which she was qualified.
b. A short man was denied employment as a busboy.
c. A two-man partnership with two employees refused to hire a qualified black attorney.
d. All of these would be scrutinized.
To have the full benefit of negotiability, negotiable instruments must:
a. meet the requirements of negotiability.
b. meet the requirements of negotiability and be acquired by a party who notified the
maker or drawer of the transfer.
c. be acquired by a holder in due course.
d. Both meet the requirements of negotiabilityand alsobe acquired by a holder in due
course.
The Truth-in-Lending Act would not require disclosure of the amount that would be due
if the borrower had paid cash instead.
a. True
b. False
The owner of legal title to the property in a trust is the:
a. grantor.
b. settlor.
c. beneficiary.
d. trustee.
Coinsurance is common in property insurance as a means of sharing risk between the
insurer and insured.
a. True
b. False
Harold says in the presence of three other people that he is giving his automobile to his
nephew, and then hands the keys to the car to the nephew. Delivery of the auto has
taken place.
a. True
b. False
Mel is 17 years old but looks older than 18. He makes a contract to buy a car from
Maisie, who is the age of majority. When Maisie finds out Mel’s age, she may avoid the
contract even if Mel did not misrepresent his age.
a. True
b. False
Lemon laws are generally understood to be laws that:
a. apply to the safety of food additives for fruits and vegetables.
b. are federal legislation designed specifically to protect state consumers from
fraudulent car manufacturers.
c. are state laws that attempt to provide new car purchasers with rights that are similar
to full warranties under the Magnuson-Moss Act.
d. are Interstate Compacts to uniformly deal with lemon cars.
The Mortgage Reform and Anti-Predatory Lending Act of 2010 regulates only
mortgages that are not subprime.
a. True
b. False