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Mary's car was parked just outside the east door of the Civic Center. When she tried to
exit, three ominous-looking gang members were blocking that door. She called the
police who arrested the three for loitering. If Mary brings suit against them for false
imprisonment:
a. she will lose if there was another exit she could have used.
b. she will lose because she was not harmed by the confinement.
c. she will win even if there was another way out because she was, in effect, being
confined to the Civic Center.
d. she will win because they were blocking her passage to her car.
Under the 1934 Act:
a. criminal sanctions may be imposed on any person who willfully violates any
provision of the Act (except the antibribery provision) or the SEC rules promulgated
pursuant to the Act.
b. criminal sanctions may not be imposed.
c. conviction of an individual may result in imprisonment for up to 25 years.
d. a person who proves he had no knowledge of the rule is still subject to imprisonment.
Karen decided to sell her stair step exercise machine, because she wasn't using it as
much as she thought she would. Her friend Lydia bought it from Karen for $100. If the
first day that Lydia used the stair stepper it fell apart, injuring Lydia's ankle:
a. Lydia can sue Karen for breach of the warranty of merchantability, because the stair
stepper is not fit for its ordinary purpose.
b. Karen can sue the manufacturer for breach of the warranty of merchantability,
because she was the original buyer.
c. Lydia cannot sue Karen for warranting that the stair stepper is reasonably fit for its
ordinary purpose, because Karen is not a merchant.
d. Lydia cannot sue Karen, because they are not in privity of contract.
Alex wants to submit a bid on a city sewer project. He computes the cost, but
mistakenly omits the cost of one item. Accordingly, he submits a bid of $430,000 to the
city. The next highest bid is $675,000, and the rest of the bids are even higher. The city
is happy to have such a low bid, so it accepts Alex's bid and awards him the contract for
the job, even though the city engineer is of the opinion the job cannot be done for less
than $650,000. In this case:
a. Alex must perform for the agreed upon price because he has made a unilateral
mistake.
b. the city was aware of or should have been aware of Alex's mistake. When it accepted
the bid with knowledge of Alex's mistake, the city sought to take an unconscionable
advantage of Alex's error.
c. there was a palpable unilateral mistake.
d. Both (b) and (c).
The warranty of fitness for a particular purpose:
a. is an implied warranty that applies only to merchant sellers.
b. requires that the seller know that the buyer is relying on the seller's expertise in
selecting a product for the buyer's specific purpose.
c. requires no proof of reliance in a case for breach of warranty.
d. Both (a) and (b).
e. Both (a) and (c).
Which of the following is a prerequisite for requesting appraisal rights?
a. Make a written demand
b. Meet the statutory time limit
c. Get an independent appraisal of the stock's value
d. Both (a) and (b)
e. None of the above
A distribution may be in the form of:
a. declaration or payment of a dividend.
b. a purchase, redemption, or other acquisition of shares.
c. a distribution of indebtedness.
d. All of the above.
To be negotiable, the instrument must satisfy all except which one of the following
requirements?
a. It must contain a promise or order to pay.
b. It must be for a fixed amount.
c. It must be written on paper.
d. It must be signed.
Defenses to an action in strict liability include:
a. contributory negligence only.
b. contributory negligence and comparative negligence.
c. comparative negligence only.
d. express assumption of risk under the Third Restatement and, in some states,
comparative negligence.
Under the parol evidence rule, which of the following types of evidence may be used to
vary or contradict the written agreement?
a. Prior oral or written agreements
b. Contemporaneous oral or written agreements
c. Subsequent oral or written agreements modifying the original agreement
d. Both (a) and (b).
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
modified comparative negligence state, who is liable?
a. Sally is liable for ALL of Pat's injuries.
b. If Sally is found negligent, Sally is liable for a proportionate share of Pat's injuries
unless Pat's negligence was as great as or greater than Sally's.
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.
Under the UPA, which of the following requires the unanimous consent of the partners?
a. Submission of a partnership claim to arbitration
b. Confession of judgment
c. Disposing of the goodwill of the business
d. All of the above
If a monthly lease does not specifically provide for a date the rent is due, the tenant
must pay at:
a. the end of the month.
b. the 15th of the month.
c. the beginning of the month.
d. five days after the beginning of the month.
A significant change to U.S. financial regulation occurred with the 2010 Congressional
enactment, the:
a. Sarbanes-Oxley Act.
b. Wall Street Reform and Consumer Protection Act.
c. RMBCA.
d. Statutory Close Corporation Supplement.
Amanco is to deliver to D & R Wholesalers 50 dozen wire-rim glasses frames by
October 15. On October 2, Amanco delivers 30 dozen wire-rim frames and 20 dozen
plastic frames. If D & R rejects the frames:
a. Amanco has until October 15 to cure the defect if it notifies D & R of its intention to
do so.
b. D & R need not notify Amanco of its rejection of the nonconforming goods in order
for the rejection to be effective since Amanco should know the goods did not meet the
contract specifications.
c. the contract is automatically voided since the goods were nonconforming.
d. Amanco has no opportunity to cure the defect since it exhibited bad faith in not
sending goods specified in the original contract.
Todd, a minor, rents an automobile from Rosa, an adult. Todd damages the vehicle
when he negligently backs into a pole. Under the majority view, can Rosa recover
damages from Todd?
a. Yes, Todd breached his duty to exercise reasonable care and diligence to protect the
automobile.
b. Yes, although Todd is a minor, it is well settled that minors are generally liable for
their torts.
c. No, minors generally cannot be held liable for their torts.
d. No, his contractual immunity protects him from legal action by Rosa.
The Clean Water Act:
a. establishes one scheme that is to be used for both existing and new sources of
pollution.
b. applies to all navigable waters in the United States, but not to freshwater wetlands or
nonnavigable intrastate waters.
c. carries civil penalties of up to $37,500 per day per violation, as well as possible
criminal penalties.
d. provides for one program for both point and nonpoint sources of pollution.
Well-established defenses that were available to the employer for a negligence suit filed
by injured employees at common law included:
a. the fellow servant rule.
b. contributory negligence on the part of the employee.
c. the employee's assumption of the risk.
d. All of the above were common employer defenses.
A sequence of previous conduct between a buyer and a seller, which may be regarded as
establishing an understanding for interpreting an agreement between the two parties, is
known as:
a. good faith.
b. a course of dealing.
c. a course of performance.
d. usage of trade.
Which of the following promises does not have to be evidenced by writing in order to
be enforceable?
a. Jones' agreement with Smith to sell his condominium for $100,000
b. Stewart's promise to work for Austin for a two-year period
c. Dad's promise to the credit union that he will make payments on his son's truck if his
son does not pay
d. Mindy's agreement with Susan to buy her bike for $400
A court may dissolve a corporation in a proceeding by a shareholder if it has established
that:
a. the directors are deadlocked in the management of the corporate affairs.
b. the acts of the directors or those in control of the corporation are illegal, oppressive,
or fraudulent.
c. the corporate assets are being misapplied or wasted.
d. the shareholders are deadlocked and have failed to elect directors for at least two
consecutive annual meetings.
e. All of the above.
The debtor is presumed to have been insolvent on and during what period of time
immediately preceding the date on which the petition was filed?
a. Thirty days
b. Sixty days
c. Ninety days
d. Six months
An offer need not take any particular form to have legal validity. To be effective,
however, it 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.
Co-ownership of the means or instrumentality of accomplishing a single business
transaction or a limited series of transactions ordinarily results in a:
a. partnership.
b. joint venture.
c. corporation.
d. R & D partnership.
Carlos ordered an aluminum storm door for $249.99. Before it was delivered, the same
store from which he ordered the door ran an ad in the paper for the same storm door at
$179.99. Carlos calls the store and demands the advertised price. If the store agrees:
a. Carlos must pay $179.99.
b. Carlos must pay $249.99.
c. there is no contract.
d. there is a contract for the reasonable value of the door.
Jack has been in the business of selling carpeting for 20 years. He calls Barb, who is
opening another branch of her furniture stores, and offers to sell her 100 yards of carpet
at $12 per square yard. Barb agrees and sends back the following letter confirming the
deal:
Dear Jack:
As we discussed on the phone January 3, we accept your offer of 100 yards of Saxony
"heather blue" carpeting at the price of $12 per square yard. We also reserve the right to
purchase any additional yardage we need to carpet our other showroom facilities at the
same rate for one year from that date.
Very truly yours,
Barb
Which of the following is true?
a. There is a contract for only 100 yards of carpeting.
b. There is a contract for 100 yards plus the additional yardage.
c. There is no contract since Barb made a counteroffer.
d. There is no contract because the additional term is too uncertain to become a contract
term.
The president of Hi-Glow Cosmetics sends his top chemist to Hi-Glow's competitor's
labs to steal its formula for shiny lipstick. The chemist gets caught and is sent to jail.
Can Hi-Glow be found to be criminally liable?
a. Yes, under the theory of ultra vires
b. Yes, since the president authorized the crime
c. No, because a corporation acts through the board of directors
d. No, because a corporation can't go to jail
Pedro ordered a custom-made suit from Rooks & Sons to be delivered by Friday at 5
p.m. When it is delivered to his office on Friday afternoon, he is in conference with a
client. His secretary hangs the suit in the office closet. When Pedro tries on the suit
Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless
trousers, so he called Rooks & Sons on Monday and informed them that he was
returning the suit. What can he do?
a. He cannot revoke acceptance since the cuffs are not difficult to discover.
b. He can revoke acceptance because the cuffs substantially impair the value of the
goods to him.
c. He can reject the goods since he had not yet accepted them prior to inspection.
d. He cannot reject the goods because the cuffs are curable.
Match the following:
a. Interest in land created by a written document that provides security for payment of
the debt.
b. An interest that is legally protected.
c. Identical goods belonging to different people are so commingled (mixed) that the
owners cannot identify their own property.
d. Document issued by a carrier to a shipper as a receipt, evidence of the carriage
contract, and a document of title.
e. The temporary transfer of possession of personal property by one party to another.
f. A security interest by possession.
g. Absolute ownership of real property.
h. An addition to or revision of a will executed with all the formalities of a will.
i. Co-ownership with the right of survivorship.
j. The right to remove natural resources from the land of another.
k. Permission to use land of another.
l. Ownership of real property for an indefinite time or for the life of a person.
m. The principal method of public control over private land use.
n. A formal document transferring an interest in land.
o. The acquisition of title to land by open, continuous, and adverse occupancy for a
statutorily prescribed period.
p. The power of a government to take (buy) private land for public use.
q. Private restriction on property contained in a conveyance.
r. The transfer of legal title to property to one party for the use, enjoyment, and benefit
of another.
s. A written instrument executed with the formalities required by statute whereby a
person makes a disposition of his property to take effect after his death.
t. The court's supervision of the management and distribution of a decedent's estate.
u. The person named in the will and appointed by the court to administer the will.
v. A contractual arrangement that distributes risk of loss among a large number of
members.
w. Transporter that offers its services and facilities to the public for remuneration.
x. The failure of an applicant for an insurance to disclose material facts that the insurer
does not know.
y. Intentional relinquishment of a known right.
1) confusion
2) bill of lading
3) zoning
4) freehold estate
5) trust
6) bailment
7) joint tenancy
8) waiver
9) concealment
10) codicil
11) pledge)
12) common carrier
13) license
14) deed
15) profit à prendre
16) fee simple
17) probate
18) eminent domain
19) mortgage
20) insurance
21) adverse possession
22) restrictive covenant
23) executor
24) will (testament)
25) property
The NPDES is a highly effective water emission technology required to be used by the
EPA.
Harms or injuries that are tortious may be inflicted:
a. intentionally.
b. negligently.
c. without fault.
d. In all of the above ways.
Which of the following best describes the manifest system?
a. It is the best available technology requirement as described in the Clean Air Act.
b. It is the national pollution policy as set forth in NEPA.
c. It is the registration system required by TSCA.
d. The manifest is a form on which a generator certifies that the toxicity of waste has
been reduced to the greatest degree that is economically practicable.
Under the Model Act and in a majority of the states, a quorum of shareholders at an
annual meeting may be not less than ____ percent of the shares entitled to vote.
a. 10
b. 33 1/3
c. 66 2/3
d. 50
An agency contract appointing the agent for a period of more than one year does not
have to be in writing.
Under the Competitive Equality Banking Act, a nonlocal check must clear in no more
than four intervening business days.
The Code has changed the common law rule regarding modification of a preexisting
contract by providing that a contract for the sale of goods can be effectively modified
by the parties without new consideration, provided they intend to do so and act in good
faith.
A widely applied test for causation in fact is the "but-for" test.
Unanimous written consent of all partners is necessary to add new limited partners to a
limited partnership.
Stephens, an employee of bankrupt ABC Company, would be able to receive her $2,000
in unpaid wages earned within 90 days before ABC's filing of the bankruptcy petition
and $2,000 in contributions to her employee benefit plans, for a total of $4,000 before
any money is paid to Ramsdell, a consumer, to compensate him for a deposit paid to the
company for goods which were never delivered because of the company's going
bankrupt.
Legal sufficiency of consideration and adequacy of consideration are virtually
synonymous terms.
If a zoning restriction causes a financial loss to a property owner, this amounts to a
taking of property and the local government will have to compensate the landowner for
his loss.
A drawee bank is primarily liable after it accepts the check.
The Pregnancy Discrimination Act protects the job reinstatement rights of women
returning from maternity leave.
Res ipsa loquitur makes it easier for the defendant to prevail in a negligence action.
There is only one way to completely and legally discharge a contract.
Komco Computer Company has developed a new and innovative magazine and
television ad campaign that it would like to protect from use by its competitors. Komco
may copyright its magazine and television ads.
In a contract that provides that the sale is F.O.B. Chicago, the seller must at his own
expense and risk transport the goods to Chicago and there tender delivery to the buyer.
Unless the contract specifies otherwise, goods may be tendered in installments.
If a person's 150-pound sheep dog has a tendency to jump enthusiastically on visitors,
the animal's keeper would not be liable for any damages done by the dog's playfulness.
