Which of the following can satisfy the statute of frauds writing requirement?
a. bills of sale
b. Letters
c. Telegrams
d. all of the above
A(n) ______________ principal is liable for a simple contract made by an authorized
agent.
a. partially disclosed
b. undisclosed
c. both a. and b.
d. neither a. nor b.
The “public comment” period for proposed administrative agency rules must be at least
__________ days.
a. 30
b. 60
c. 90
d. 120
In determining whether limited use of copyrighted material may be permitted as “fair
use,” courts will consider:
a. the purpose and character of the use, including whether such use is of a commercial
nature or is for nonprofit educational purposes.
b. the nature of the copyrighted work.
c. the amount and substantiality of the portion used in relation to the copyrighted work
as a whole.
d. all of the above.
The United States constitution places the most significant limitations on administrative
investigation in the area of:
a. search and seizure of the person.
b. aerial inspection.
c. search and seizure of papers and records.
d. guarantee against self-incrimination.
When a state statute requires a security interest in a motor vehicle to be noted on the
certificate of title, the security interest is perfected:
a. by the certificate notation, when a non-inventory motor vehicle is involved.
b. by filing under the UCC, regardless of how the vehicle is classified.
c. by filing under the UCC, when the motor vehicle is inventory.
d. either by the certificate notation or by a UCC filing, depending on how the state
statute defines the term motor vehicle.
Under the Clayton Act, when large-scale enterprises plan to merge, they must in
advance:
a. notify the New York Stock Exchange.
b. notify the President of the United States.
c. complete the necessary financing arrangements.
d. notify the Antitrust Division of the Department of Justice.
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 employer of a salesperson:
a. is only bound by a contract if the employee is acting as a soliciting agent.
b. is not bound by a contract if the employee is acting as a contracting agent.
c. is not bound by a contract until the contract is accepted.
d. is always bound by contracts made by all employee salespersons.
A forged indorsement must be reported within:
a. forty (40) days.
b. six (6) months.
c. one (1) year.
d. three (3) years.
Arthur made a bid at an auction by calling out the amount of $250. The auctioneer
acknowledged Arthur’s bid. There were no higher bids, and before the fall of the
auctioneer’s hammer, Arthur announced that he was withdrawing the bid. The
auctioneer said that it was too late for Arthur to withdraw his bid, because the bid had
already been acknowledged. What is the result?
a. Arthur’s bid is an ordinary offer that can be revoked.
b. Arthur’s bid is firm and cannot be withdrawn.
c. Since the auctioneer had in fact acknowledged Arthur’s bid, the bid became an option
exercisable at the election of the seller.
d. Since the auctioneer had in fact acknowledged Arthur’s bid, a contract had been
formed by way of offer and acceptance; accordingly, Arthur’s subsequent attempt to
withdraw his bid was ineffective.
In general, a mortgagor is under a duty to:
a. make improvements to the mortgaged property.
b. insure the property.
c. pay taxes and assessments on the property.
d. reimburse the mortgagee for expenditures made by the mortgagee for valuable and
lasting improvements.
An insurer who wrongfully refuses to defend the insured is liable for:
a. breach of contract.
b. insurance fraud.
c. the tort of wrongful interference with contractual relations.
d. the tort of malicious prosecution.
The person who initiates a civil lawsuit is called the:
a. defendant.
b. prosecutor
c. plaintiff.
d. judge.
Perfection of a security interest takes place:
a. upon the creditor’s possession of the collateral.
b. upon attachment in the case of a purchase money security interest in consumer
goods.
c. upon the filing of a financing statement.
d. all of the above.
Which of the following statements is correct concerning a stale check?
a. A check is stale when dated more than six (6) months before presentation to the bank.
b. Banks are required to pay stale checks unless a stop payment order has been issued.
c. Both a. and b.
d. None of the above.
Many states provide that a lease for a term exceeding __________ must be in writing.
a. three (3) months
b. six (6) months
c. one (1) year
d. three (3) years
To bring a tort action for malpractice, a plaintiff must show that the defendant’s breach
was at least:
a. intentional.
b. negligent.
c. reckless.
d. fraudulent.
Which of the following can be consideration for a promise?
a. Refraining from beating one’s spouse.
b. Promising to refrain from beating one’s spouse.
c. Refraining from smoking cigarettes.
d. Refraining from using cocaine.
A valid meeting of the voting shareholders of a corporation requires the presence of a:
a. quorum.
b. forum.
c. majority.
d. voting majority.
What federal act regulates the federal government in terms of its operations and impact
on the environment?
a. the Environmental Protection Act
b. the National Environmental Policy Act
c. the Clean Water Act
d. the Resource Recovery Act
State supreme courts primarily have what type of jurisdiction?
a. appellate
b. limited trial court
c. general
d. none of the above
The Martin family owned a home that was badly in need of repair. Mrs. Martin worked
outside the home and Mr. Martin took care of the household responsibilities and cared
for the two young Martin children. One day, Mrs. Martin left for work and a home
repair crew drove up and began to put aluminum siding on the Martin house. Mr.
Martin telephoned his wife, told her, and inquired about whether she had hired the
workers. When the Martins realized that they never had ordered this work done, Mr.
Martin sneaked out the back with the children. He later met his wife at work and they
returned home for dinner. By that time, the entire front of the house had been
aluminum-sided. The foreman asked, “Mr. and Mrs. Wolf, how do you like the job?”
The Martins replied that they loved the job, but the Wolfs lived next door. When it
became clear that the repair crew had made an error, the foreman insisted that the
Martins had to pay.
a. Decide the case, and explain the reason(s) for your decision.
b. Decide the case, assuming that the Martins were away on vacation when the
improvements were made, and then returned home to discover the improvements.
The federal-state system that provides unemployment compensation under the Social
Security Act of 1935 does not cover which of the following categories of workers?
a. Agricultural employees
b. Domestic employees
c. State and local government employees
d. None of these categories of workers are covered by the federal-state system.
Federal regulation of the sale of securities is based on the:
a. Securities Act of 1933 and the Securities Exchange Act of 1934.
b. Securities Act of 1933 and the Federal Trade Act of 1936.
c. Federal Trade Act of 1936 and the Blue Sky Act of 1933.
d. Fair Stock Act of 1932 and the Investment Securities Act of 1934.
An affirmative action plan that “unnecessarily trammels” the interests of nonminority
employees:
a. is an example of reverse discrimination.
b. is lawful if women are the favored group.
c. is lawful to aid in the hiring of blacks and Native Americans.
d. is unlawful unless the favored group has been severely disadvantaged.
Under the known user rule:
a. the accountant is not liable to any third parties who experience a loss as a result of the
accountant’s negligence.
b. the accountant is liable to all third parties who experience a loss as a result of the
accountant’s negligence.
c. the accountant is liable to third parties who experience a loss as a result of the
accountant’s negligence but only if the accountant knew the third party would be using
the work product.
d. the accountant is liable to third parties who experience a loss as a result of the
accountant’s negligence but only if the accountant’s client gave the work to the third
party.
When a testator provides for a bequest of his gold watch to his nephew, but the gold
watch is not owned by the testator at the time of death:
a. the nephew is entitled to an equivalent amount of cash.
b. the executor must purchase a similar gold watch for the nephew if funds are
available.
c. the bequest to the nephew fails by ademption.
d. all legacies in the estate abate to provide funds to purchase a gold watch for the
nephew.
Under collective bargaining:
a. groups of employers meet to draw up contracts for all of their employees.
b. representatives of the employees bargain with a single employer or a group of
employers for an agreement on wages, hours, and working conditions for the
employees.
c. groups of employees meet to dictate the terms of employment to their employers.
d. none of the above.
Provision for exemption from the registration requirements of the Securities Act of
1933 is made for offerings made solely to accredited investors by SEC Regulation:
a. A.
b. B.
c. C.
d. D.
When a drawee bank pays on a check that lacks an essential endorsement:
a. the drawer is liable.
b. the payee is liable.
c. the drawee bank is liable.
d. no one is liable.
What form of tort liability was developed to provide guaranteed protection for those
who are injured by conduct the law deems both serious and inexcusable?
a. strict liability
b. negligence
c. both a. and b.
d. neither a. nor b.
If a contract is ambiguous regarding whether the agent has signed in a representative or
an individual capacity:
a. there is a presumption that the agent signed in a representative capacity.
b. there is a presumption that the agent signed in an individual capacity.
c. the agent and the principal will both be liable on the contract.
d. parol evidence is admissible to establish the character in which the agent was acting.
A contract to build a house is deemed performed when:
a. there has been substantial performance of the contract.
b. the house is approved by the city housing inspectors.
c. the house is approved by the owner’s architect.
d. the house is approved by the owner.
The U.S. Constitution has been amended:
a. only expressly.
b. only by interpretation.
c. only by practice.
d. by all of the ways listed above.
In some cases the court may require specific performance when there is a breach of
contract.
Limited liability is not a feature of general partnership law.
The names of limited partners and investors must be included on the certificate of
limited partnership.
Stockbrokers are eligible to file Chapter 11 bankruptcy.
The Sarbanes-Oxley Act of 2002 requires written certification of the 10-K and 10-Q
reports by each company’s CFO and CEO.
In some states an exculpatory clause protects the accountant from a malpractice suit
brought by a third party but now from a suit brought by a client.
Freedom from economic domination is a personal right protected under United States
law.
Malice is always a required element of defamation.
Equal employment opportunity laws provide protection for minorities and women, but
the disabled are not within the protection of the laws.
Consequential damages may not be recovered, even if they were within the
contemplation of the parties at the time of contracting.
Agency is a relationship by which the principal is authorized to act on behalf of an
agent in negotiating and making contracts with third persons.
A seller’s duty to deliver goods requires the seller to transport the goods to the place
designated by the buyer.
Bribery requires the use of violence.
Conville signed a note as an officer of the Hughesville Manufacturing Corporation, but
she did not name the corporation in the note or indicate that she was acting as an officer
for it. Later, she was sued by the Grange National Bank, the holder of the note. She
raised the defense that the corporation was liable on the note. Who was liable?
Within each state in the United States, only one constitution is in force.
Mediation is a generally accepted method of resolving disputes.
A trust is invalid if a beneficiary lacks capacity.