The Uniform Durable Power of Attorney Act (UDPAA) changes the general rule that
insanity of a principal terminates an agent’s authority to act for the principal.
Trespass applies to:
a. personal property only.
b. land only.
c. both personal property and land.
d. only government-owned property.
The writing required by the statute of frauds in the case of a contract for the sale of land
must:
a. be addressed to the other party to the contract.
b. be made with the intent to create a writing to satisfy the statute of frauds.
c. be signed at the end of the writing.
d. describe the land to be sold.
The provisions of the United Nations Convention on Contracts for the International
Sale of Goods (CISG) have been strongly influenced by:
a. the GATT’s most-favored nation clause.
b. the European Economic Community’s Treaty of Rome.
c. the Uniform Commercial Code.
d. the success of the Organization of Petroleum Exporting Companies.
A security agreement must:
a. identify the parties involved.
b. contain a reasonable description of the collateral.
c. demonstrate that the parties intended for the creditor intends to have a security
interest.
d. all of the above.
If an offer requires that acceptance be communicated by a specific date and the
acceptance is properly dispatched by the offeree on the final date,
a. no contract is formed, since the offeror will undoubtedly receive the dispatched
acceptance after the deadline for acceptance.
b. a contract is formed, but the contract is voidable at the election of the offeror.
c. the acceptance is timely and a contract is formed, even though the offeror actually
receives the acceptance well after the specified date has passed.
d. the acceptance is timely and a contract is formed, but only if the offeror actually
receives the acceptance by the deadline specified for acceptance.
Which of the following terms would make an instrument nonnegotiable?
a. It is dependent upon an event.
b. It is undated.
c. It is payable in foreign money.
d. It gives the holder the right to receive interest.
If an involuntary bankruptcy petition is dismissed other than by consent of all
petitioning creditors and the debtor, the court may award which of the following to the
debtor?
a. Costs
b. Reasonable attorney fees
c. Damages
d. All of the above
The “living” Constitution has which of the following characteristics?
a. strong federal government
b. strong president
c. various administrative agencies with significant power
d. all of the above
What is the principal law regulating equal employment opportunity in the United
States?
a. Title VII of the Civil Rights Act of 1964
b. The United States Constitution
c. The Fair Labor Standards Act
d. The Equal Pay Act
The U.S. Patriot Act and airport security regulations were enacted for the protection of:
a. the person.
b. public, health, safety and morals.
c. the state.
d. personal rights.
Pursuant to the __________ theory, when a corporation is so dominated and controlled
by shareholders, officers, and/or directors that the separate personalities of the
individuals and the corporation no longer exist and there is a wrongful use of that
control, the courts will disregard the corporate entity so as not to sanction a fraud or
injustice.
a. alter ego
b. altered states
c. puppeteer
d. invisible hand
A contract requires:
a. an offer.
b. an acceptance.
c. both an offer and an acceptance.
d. an agreement manifested by the written or spoken words of the parties.
The obligation of a cosigner is discharged by:
a. the minority status of one of the parties.
b. the majority status of one of the parties.
c. the court’s declaration of the contract’s provision of necessaries.
d. the payment of the debt.
Technology:
a. has not created situations that require the application of new rules of law.
b. has indeed created situations that require the application of new rules of law.
c. has done away with the right of privacy.
d. has made it easier to identify when one’s privacy has been invaded.
An individual who desires to make provisions that will be effective only on his or her
death is said to have:
a. probationary intent.
b. a prejudicial interest.
c. testamentary intent.
d. attestation intent.
Which of the following is an incorrect statement about directors?
a. Their eligibility requirements may be found in the bylaws.
b. Bylaws may require that directors be shareholders in the corporation.
c. The board of directors has authority to manage the corporation.
d. Courts will interfere with the board’s discretion when they disagree with its actions.
If a man names his wife as beneficiary of his life insurance and the two are thereafter
divorced, the insurance policy:
a. is canceled automatically.
b. is not affected.
c. is divided into two policies on the life of each for one-half the amount of the original
policy.
d. becomes the property of the former wife.
If the principal revokes the agency:
a. the agent’s authority to act for the principal is terminated immediately.
b. the right of the agent to bind the principal to third persons generally ends
immediately upon the termination of the agent’s authority.
c. the termination is not effective until notice is given to third parties.
d. all of the above.
Money __________ involves the knowing and willful participation in a financial
transaction involving unlawful proceeds when the transaction is designed to conceal or
disguise the source of the funds.
a. ironing
b. vacuuming
c. laundering
d. cooking
Management of an LLC is vested in its:
a. members
b. partners
c. shareholders
d. managers
Workers’ compensation statutes do not typically provide for:
a. immediate medical benefits.
b. prompt periodic wage replacement.
c. a death benefit.
d. punitive damages.
An instrument may be negotiated even though:
a. it has been dishonored.
b. it is overdue.
c. it is demand paper that has been outstanding for more than a reasonable period of
time.
d. all of the above.
In interpreting an ambiguous contract, one part of the contract:
a. must be viewed in isolation.
b. must be viewed as a condition.
c. must be viewed in connection with the rest of the contract.
d. must be viewed as indicating joint and several liability.
An ethical duty of confidentiality could be breached where:
a. information obtained through research of the employer is disclosed.
b. customer lists or leads are disclosed to a competitor.
c. proprietary information or technology of a business is disclosed.
d. all of the above.
Article 3 of the UCC establishes a __________-year statute of limitations for most
actions involving negotiable instruments.
a. one
b. two
c. three
d. four
Which is not considered an alternate means of dispute resolution?
a. civil lawsuit
b. arbitration
c. association tribunals
d. minitrial
When a foreign government takes over an American business that is being conducted in
the foreign country, this is called:
a. expropriation.
b. dollar credits.
c. suspension agreement.
d. antidumping.
An assignment:
a. is a contract.
b. requires consideration.
c. is a transfer of rights.
d. is not enforceable.
Under which organizational structure would the death of the owner have no legal
effect?
a. a partnership
b. a corporation
c. a sole proprietorship
d. all of the above
A limited liability company may be classified as a partnership for tax purposes if:
a. such an election is made by “checking the box” for partnership tax treatment on the
appropriate Internal Revenue Service form.
b. such an election is made in the operating agreement.
c. such an election is made in the articles of incorporation.
d. a majority of its members petition the Internal Revenue Service for partnership tax
treatment.
A common carrier must:
a. receive and carry proper and lawful goods of all persons who offer them for
shipment.
b. furnish adequate facilities.
c. follow the instructions of the shipper.
d. all of the above.
The commercially reasonable charges incurred by a seller in caring for goods after the
buyer’s breach are recoverable by the seller in an action for damages as:
a. contract damages.
b. punitive damages.
c. additional damages.
d. incidental damages.
When an accountant makes a contract to perform services, there is a duty to exercise the
skill and care that are common for the accounting profession.
The Foreign Corrupt Practices Act prohibits improper payments to influence foreign
officials.
Stealing trade secrets can result in fines, but not imprisonment.
Art and Mary were good friends who went through high school and college together.
Art eventually became a college philosophy professor and Mary went into the business
world. Mary became a senior vice-president of a management firm and learned many of
the company’s trade secrets. Both Art and Mary signed one-year contracts with their
respective employers. The contracts contained clauses that provided that they would not
compete against their former employers for a period of one year after leaving their jobs.
The area covered by the restrictions for both Art and Mary was a radius of 500 miles
from the place of employment.
Both Art and Mary resigned and within two months took other jobs. Art went to work
for another college 50 miles away, teaching philosophy. Mary took a job 75 miles from
her former employment. Her new position was similar to her former job. The former
employers sued to enforce the anticompetitive covenants in the original contracts.
Discuss the probable outcome of the lawsuits.
Some courts allow sellers to recover the profits they would have made if the buyer had
completed the transaction.
A check is a particular kind of draft.
Generally, only the parties to a contract may sue on it.
A special agent is authorized by the principal to transact all affairs in connection with a
particular type of business or trade or to transact all business at a certain place.
Only written words that show an intention to transfer or assign will be given the effect
of an assignment.
To satisfy the statute of frauds, the writing must be signed and must include the price of
the goods.
Changes to the Constitution have been brought about by interpretation, amendment, and
practice.
Case law consists of the rules and regulations parties agree to as part of their contractual
relationship.
Every trust must have a beneficiary.
Nelson took her computer to ABC Computer for repairs. ABC repaired the computer at
a cost of $350 and informed Nelson that her computer was ready. Before Nelson came
to pick up her computer, ABC was burglarized and Nelson’s computer was taken. ABC
had a commonly-used alarm system that was operating properly on the night of the
burglary, and all the doors and windows were properly secured. Nelson sued ABC for
the cost of the computer. ABC denied any liability and counterclaimed for the $350 in
repairs. Who will win?
Careless actions that result in injuries to others usually are not deemed to be torts.
“Conglomerate” describes the relationship of equal companies engaged in similar fields
of business activity.
Modern law holds that an employer is liable for an intentional tort committed by an
employee for the purpose of furthering the employer’s business.