An agreement for the purchase of an illegal substance will be enforced by the courts if
all other elements of the contract are present.
a. True
b. False
“Goods” for purposes of the Code are essentially defined as tangible, movable, personal
property.
a. True
b. False
The Code provides an exception to the executory promise rule in:
a. the giving of a negotiable instrument.
b. the making of an irrevocable obligation to a third party.
c. the lack of notice.
d. Both the giving of a negotiable instrumentand the making of an irrevocable
obligation to a third partyare correct.
In reviewing an agency action, which of the following are included in the questions of
law a court will consider?
a. Whether the agency violated any constitutional provision.
b. Whether the agency acted contrary to the procedural requirements of the law.
c. Whether the agency exceeded its authority.
d. All of these.
Contract law is significant in that it is basic to other fields of law such as:
a. sales of personal property.
b. commercial paper.
c. secured transactions.
d. All of these.
The First Amendment’s guarantee of free speech applies to:
a. corporate political speech.
b. defamation.
c. commercial speech.
d. all of these.
Because of the increasing complexity of the social, economic, and industrial life of the
nation, the scope of __________ has expanded enormously.
a. common law
b. administrative law
c. procedural law
d. equity
Brown Corporation purchased all of the stock of Gremlin Corporation. The appraisal
remedy is not available to a dissenting shareholder of Brown Corporation.
a. True
b. False
To be effective, an offer must:
a. be spoken directly to the offeree.
b. always contain the price of the product or service offered.
c. always contain the place of delivery.
d. be communicated to the offeree.
A finance lease is a special type of lease transaction that generally involves three parties
instead of two.
a. True
b. False
Bill has had a problem with vandalism at his business, so he rigs up a spring gun at the
entryway to his store, so that any after-hours intruder will be shot upon entry. Bill may
legally use this deadly force to protect his business.
a. True
b. False
If the original agreement was oral, a subsequent oral modification, which brings the
resulting contract within the statute of frauds, is binding on and enforceable by the
parties.
a. True
b. False
The contracts of a person who is adjudicated insane and placed in care of a guardian are
void.
a. True
b. False
An “I.O.U.” is a negotiable instrument.
a. True
b. False
A criminal trial is similar to a civil trial, but there are some significant differences.
These differences are:
a. the defendant is always the government in a criminal trial.
b. burden of proof on the prosecution is to prove criminal guilt beyond a reasonable
doubt in a criminal trial.
c. the defendant is required to testify.
d. All of these.
Which of the following is not correct regarding the relationship between an independent
contractor and a principal?
a. The contractor is liable under respondeat superior.
b. The contractor generally contracts to perform services but is not controlled by the
principal.
c. The right of control is the essential and often decisive factor in determining whether
someone is an independent contractor or an employee.
d. Under some circumstances, a principal will be vicariously liable for torts committed
by a carefully selected independent contractor.
Under the Dodd-Frank Act signed into law in 2010, proxy solicitations asking
shareholders to approve an acquisition, merger, or consolidation in publicly held
companies must provide shareholders with a binding vote to approve any compensation
relating to these combinations.
a. True
b. False
How is ‘sovereign immunity” interpreted under U.S. law today?
a. It gives absolute immunity to a foreign nation from all U.S. laws.
b. It gives immunity to foreign governments for commercial activity carried on in the
U.S. by the foreign government.
c. It exempts the public acts of a foreign government, such as those involving
diplomatic activity, from all U.S. laws.
d. All of these are a part of the interpretation.
Written consent of all partners is required for the addition of a general partner if the
partnership agreement so provides or if the partnership agreement fails to deal with this
issue.
a. True
b. False
The __________ is an orderly compilation of the general common law of the United
States, prepared by a distinguished group of lawyers, judges, and law teachers.
a. statute of frauds
b. Uniform Commercial Code
c. Maxims
d. Restatement of Law
Deeds generally end with:
a. the grantor’s signature.
b. a seal.
c. an acknowledgment before a notary public to verify the authenticity of the document.
d. All of these.
In addition to the four basic requirements of a contract, which of the following must
also occur in order to have a valid contract?
a. The agreement must always be in writing.
b. There must be evidence of undue influence.
c. There must be an absence of invalidating conduct.
d. A legal remedy must be available for there to be a breach.
Jack is a guest at Harry’s home. While there, he goes into the library and picks up a
music box that is part of Harry’s collection. Jack overwinds the stem and it breaks.
Hoping Harry won’t notice, Jack takes the music box for repair to a jeweler who sells
similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it
to Robert. Jack is frantic. Can Harry get the music box from Robert?
a. No, the jeweler gives good title to a bona fide purchaser for value.
b. No, the jeweler was not a merchant with regard to music boxes.
c. Yes, Robert was not a buyer in the ordinary course of business.
d. Yes, Robert has assumed only Jack’s title, which is no title at all.
Adam Smith, in The Wealth of Nations, said the capitalistic system was composed of six
institutions, which include all but which of the following?
a. Economic motivation.
b. Free enterprise.
c. Labor.
d. Limited government.
a. What are the obligations of the seller under a shipment contract?
b. What are the obligations of the seller under a destination contract?
Arbitration may be preferred over litigation because the quality of the arbitrator’s
decision is often higher than that available through the court system.
a. True
b. False
Pat and Sally started a charcoal fire for Sally’s backyard barbecue and left it uncovered.
Then Sally went into the kitchen to make hamburger patties. While Sally was inside,
Pat backed up to catch a football and hit the grill, knocking the coals onto his feet. In a
pure comparative negligence state, who is liable?
a. Sally is liable for ALL of Pat’s injuries.
b. Sally is liable for Pat’s injuries in proportion to the degree of fault or negligence
found against her.
c. Sally is not liable for any of Pat’s injuries.
d. Sally is liable for Pat’s injuries only if Pat was more negligent than Sally.
The board of directors of Case Corporation declared cash dividends of $5 per share. If
these dividends are not paid, a shareholder can bring suit to require payment.
a. True
b. False
The European Community was formed through a merger between the Common Market,
the European Coal and Steel Community, and the European Atomic Energy
Community.
a. True
b. False
The same act can be both a tort and a crime.
a. True
b. False
When goods have been damaged without the fault of either the seller or buyer, if the
risk of loss is placed on the seller, the seller has no right to recover the purchase price
from the buyer and has no right to the return of the damaged goods.
a. True
b. False