A wrong that arises from a violation of a private duty is called a:
a. criminal action.
b. tort.
c. crime.
d. de mala.
The term apparent authority is used when there is:
a. no interaction between the principal and third persons.
b. actual authority.
c. only the appearance of authority and that appearance of authority was created by the
principal.
d. only the appearance of authority and that appearance of authority was created by the
agent.
The tort of invasion of privacy includes:
a. intrusion into private affairs.
b. public disclosure of private facts.
c. misappropriation of another’s name.
d. all of the above.
A zoning restriction:
a. constitutes an eminent domain “taking.”
b. always entitles the landowner to compensation.
c. never lowers the value of the land it concerns.
d. may prevent the landowner from use of the land.
A letter of credit usually sets a:
a. minimum money amount.
b. maximum money amount.
c. both of the above.
d. none of the above.
When a plaintiff sues on the basis of strict tort liability, the action is subject to:
a. the UCC statute of limitations.
b. the appropriate state’s tort statute of limitations.
c. no statute of limitations.
d. FTC approval.
_________ of a corporation may occur when management is deadlocked and the
deadlock cannot be broken by the shareholders.
a. Bankruptcy
b. Consolidation
c. Reinstatement
d. Judicial dissolution
Statutory law is created by:
a. Congress.
b. state legislatures.
c. local governments.
d. all of the above.
The means by which stockholders may seek to protect themselves against corporate
actions to which they object include all of the following except:
a. voting in new directors.
b. bringing legal action.
c. voiding the charter.
d. calling a special stockholders’ meeting.
An administrative agency can be created to perform:
a. only one of the three functions of government (executive, legislative, or judicial).
b. any two of the three functions of government.
c. all three of the functions of government.
d. none of the three functions of government.
If a contract for the sale of goods does not state the price to be paid, the:
a. contract is void because it is too indefinite to be enforced.
b. buyer is required to pay a reasonable price for the goods.
c. buyer can pay whatever price the buyer in good faith believes is a proper price.
d. seller can rightfully charge whatever price the seller in good faith believes is a proper
price.
Which of the following statements is correct concerning restrictive covenants?
a. Restrictive covenants that have not been enforced or observed are nevertheless valid
and enforceable.
b. Restrictive covenants take precedence over conflicting statutes.
c. Restrictive covenants generally impose some limitations on the landowner’s use of
the property.
d. If any uncertainty exists in the interpretation of a restrictive covenant, the covenant
will be interpreted liberally in favor of the limited use of the land.
An instrument is payable on demand if it is payable:
a. on or before a stated date.
b. at sight or presentation.
c. at a fixed time after acceptance.
d. all of the above.
The EFTA is concerned with the:
a. elimination of foreign terrorists
b. eradication of foreign tribunals
c. electronic transfers of funds
d. eleemosynary, or charitable, transfers of funds
When a minor avoids a contract to purchase a car:
a. the parents of the minor are liable for the purchase price.
b. a relative who cosigned the contract is liable for the purchase price.
c. a friend to whom the minor loaned the car is liable for the purchase price.
d. the automobile insurance company is liable for the purchase price.
An agreement to restrain trade may be void on the grounds that it is:
a. fraudulent.
b. contrary to public policy.
c. illegal lobbying.
d. unfair to merchants.
The effect of the making of a partial payment to satisfy an admitted debt is an example
of the rule that:
a. past benefits cannot be consideration for a later promise.
b. a conditional promise may be consideration.
c. doing what one is already under a legal obligation to do is not consideration.
d. consideration must be adequate to be binding.
Which party to an illegal agreement may get relief from the court?
a. Plaintiff
b. Defendant
c. the less-guilty party, when public interest is advanced by granting relief
d. a doctor who was unlicensed at the time of the making of an agreement for the
provision of medical services, but who later obtained a proper license
The federal regulation of express warranties:
a. applies only to limited warranties.
b. applies to a seller who makes a written express warranty for a consumer product
costing more than $10.
c. requires all express warranties to be full warranties.
d. requires an implied warranty to be designated as either full or limited.
A person or enterprise harmed by a Sherman Act violation may bring an action for:
a. punitive damages only.
b. treble damages.
c. quadruple damages.
d. actual damages only.
If there is a consolidation of corporations A, B, and C:
a. corporations B and C are absorbed into corporation A, and corporation A continues to
exist.
b. all of the corporations continue to exist.
c. all corporations continue to exist, but corporation A owns all of the stock of
corporations B and C.
d. corporations A, B, and C cease to exist, and a new corporation with the property and
assets of the old corporations comes into being.
A contract based on a mutual mistake in judgment is:
a. voidable by the adversely affected party.
b. not voidable by the adversely affected party.
c. void ab initio.
d. none of the above.
A __________ agent is authorized by the principal to do all acts that can be delegated
lawfully to a representative.
a. special
b. general
c. secret
d. universal
If an obligor could successfully defend against a suit brought by the assignor:
a. the obligor will also prevail against the third-party beneficiary.
b. the obligor will also prevail against the assignee.
c. the obligor will also prevail against the incidental beneficiary.
d. none of the above.
The frustration of purpose doctrine:
a. is based on common law.
b. requires that both parties were aware of the purpose.
c. temporarily suspends contract performance.
d. all of the above.
A thief stole Art’s checkbook and forged Art’s name as drawer of a check. The drawee
paid the check in good faith and sent it to Art with the monthly statement on January 3,
2013. The thief forged other checks during February and March of 2013, which the
drawee in good faith paid. All paid checks were sent to Art with monthly statements. On
May 25, 2014, Art discovered all of the forgeries and notified the drawee. For which
check(s) is Art entitled to be reimbursed?
a. none of them
b. all of them
c. the first check only
d. the last check only
The transferee has only those rights that were possessed by the transferor of the note
when a transfer of an instrument is made by:
a. an assignment.
b. a negotiation.
c. a sale.
d. a will.
The concept of imposing liability for the fault of another is known as __________
liability.
a. imperious
b. gregarious
c. vicarious
d. virtual
The Federal __________ Act makes it unlawful to intercept oral and electronic
communications and provides for __________ against the violator.
a. Wiretapping; civil damages
b. Wiretapping; criminal liability and civil damages
c. Homeland Security; civil damages
d. Homeland Security; criminal liability and civil damages
Interpretations of aspects of the right to privacy are often found in:
a. statutes.
b. customs.
c. societal guidelines.
d. none of the above.
Consumer protection statutes are identical in all fifty states and the District of
Columbia.
A(n) __________ is a negotiated disposition of a matter before an administrative
agency, generally without public sanctions.
a. formal settlement
b. informal settlement
c. judicial verdict
d. quasi-judicial verdict
In a Chapter 11 rehabilitation plan, the debtor:
a. keeps all of the assets (both exempt and nonexempt).
b. remains in business.
c. makes a settlement that is acceptable to the majority of the creditors.
d. all of the above.
All goods other than those existing and owned by a seller at the time of a transaction are
called:
a. existing goods.
b. tangible goods.
c. future goods.
d. intangible goods.
The standard form of check does not specify when it is payable, and it is therefore
automatically payable on demand.
An agent is authorized to make contracts for, and is under the control of, the principal.
A full warranty allows the seller to require the buyer to assume the shipping cost of
returning the good(s) for repair.
Robertson and Enrickson prepared an agreement to enter into a partnership. Both of the
partners realized that outside capital was needed for the firm to begin operations;
however, they also realized that their individual and combined credit ratings would not
attract sufficient funds. In order to improve the new partnership’s ability to attract
investment capital, and with the approval of Enrickson, Robertson added his friend
Thompson’s name to the partnership agreement. Thompson, a well-known personality
from a family of means, was not asked to be a partner and knew nothing of Robertson’s
and Enrickson’s actions. Upon seeing Thompson’s name on the partnership agreement, a
local bank readily agreed to advance Robertson and Enrickson the total sum required to
begin operations. The partnership has now failed, and the bank would like to hold
Thompson, Robertson and Enrickson liable for the amount of the loan. Will the bank
recover from Thompson, Robertson and Enrickson?
Those who are liable for violations of consumer protection situations are persons or
enterprises that regularly enter into the type of transaction in which the injured
consumer was involved.
A failure by the settlor to name a trustee renders a trust invalid.
The fact that there has been a series of contracts between the parties and that one party’s
offer has always been accepted before by the other does not create any legal obligation
to continue to accept subsequent offers.
Arnold Properties, Inc. entered into a lease agreement with Janet for a residential house.
Janet made four (4) subsequent monthly payments. At the end of the four (4) months,
Janet learned that she was to be transferred to a new job in another state. Janet
approached her landlord and explained her situation. The landlord was unsympathetic
and refused to release Janet from her rent. The landlord insisted on enforcement of
rental payment for the duration of the lease, which was for one (1) year. Janet had not
provided for a release in her lease to cover the possibility of a job transfer. Must Janet
pay for the remaining eight (8) months of rent even if she is not in physical possession
of the property?
A partnership may occur even though the parties did not label their relationship a
partnership.
The Railway Express Agency delivered a shipment of goods to Lorraine. Payment for
the goods was made with a certified check, payable to the order of the Railway Express
Agency. The check was drawn by Lorraine on the First National Bank of Detroit. Later,
the bank refused to pay the check when it was presented by Railway Express, the
holder, because the bank had become insolvent and stopped doing business. The
Railway Express Agency sued Lorraine. Lorraine claimed that she was not liable on the
check because it was certified. Is she correct?
A trademark is any word, name, symbol, device, or combination of these used to
identify a product.
If a trustee is not elected by creditors, an interim trustee will be appointed by the court.
A binding contract cannot contain a cancellation provision.
According to the EEOC, claims for retaliation may only be filed under Title VII.
Under the United States Supreme Court’s “doctrine of equivalents,” infringers may not
avoid liability for patent infringement by substituting insubstantial differences for some
of the elements of the patented product or process.
Trademarks and service marks are recorded with the Register of Copyrights.
Both Congress and state legislatures enact statutory law.
If there is a written contract, a disclaimer of the implied warranty of merchantability
must be conspicuous.