Drawers and indorsers are secondarily liable on negotiable instruments.
a. True
b. False
Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the
tooth. If Walter refused to pay and Matt sued:
a. Walter would win as there was no contract.
b. Walter would win because of the UCC.
c. Matt would win; this is an implied contract.
d. Matt would win in quantum meruit.
Stuart is vying for a promotion, but faces competition from a co-worker, Brenda.
Without authorization, Stuart accesses stored company records and discovers an
unfavorable e-mail message Brenda had written about the company. Stuart sends the
message to his supervisor in hopes of keeping Brenda from getting the promotion.
Discuss whether Stuart has violated any statute and, if so, what sanctions he may face.
Mentally infirmed Sasha contracts to purchase a piano for $2,500 in 60 monthly
installment payments. Six months later she tries to void the contract on grounds of
mental impairment. A court will:
a. normally void the contract without requiring anything further on Sashas part.
b. normally void the contract but will require Sasha to return the piano.
c. ordinarily not void the contract unless Sasha had a court-appointed guardian at the
time she entered into the contract.
d. not void the contract unless Sasha agrees to have the court appoint a guardian for her.
Commonground Collections has been hired to collect past-due medical bills for
Lakeview Physicians. List some activities that Commonground may not do pursuant to
the FDCPA.
Spam is illegal per se.
a. True
b. False
L & M loaned Joan $400 so that she could buy her textbooks for the current semester. L
& M’s terms for repayment of the loan (including interest) are, $200 in two months,
$200 in four months, and another $100 at the end of the fifth month. The legal
maximum rate of interest on this type of loan is six percent per annum. L & M’s loan is
usurious.
a. True
b. False
Janice wrote a song called “Feelings of Love.” She wrote the piano score and lyrics for
a class she was taking at college and turned it into her professor.
a. Janice’s song was automatically copyrighted when she wrote it down on paper.
b. If Janice wishes to enforce her copyright, she must first register her song with the
Copyright Office.
c. Both of the above are correct.
d. Neither a nor b.
Grandpa owns a farm. In a signed writing, Grandpa gave Sue the irrevocable right to
use a road on his farm so that Sue could more easily reach her own property. What kind
of interest in land did Grandpa give to Sue?
a. Easement
b. Profit
c. License
d. Prescription
The United States and Argentina have signed the Convention on Contracts for the
International Sale of Goods (CISG). Oxtron, Inc., a U.S. company, and Leer, an
Argentinean company, have entered into a contract under which Oxtron is to ship
medical devices to Leer. The contract does not include a choice of law provision. The
contract will be governed by:
a. the CISG.
b. the UCC.
c. the domestic contract law of Argentina.
d. the domestic contract law of the United States.
If apparent authority is present, the principal is liable for even the unauthorized acts of
the agent.
a. True
b. False
First Bank loaned $400,000 to Thomas, taking a security interest in his yacht. Thomas
defaulted on the loan and First Bank repossessed the boat. First Bank sold the yacht at a
public sale. The sale yielded $50,000 more than the debt. First Bank:
a. must pay Thomas the $50,000.
b. is entitled keep the $50,000.
c. must share the $50,000 equally with Thomas.
d. must pay the surplus to the Secretary of State.
Race may be a bona fide occupational qualification when the employee will be working
with children of a different race.
a. True
b. False
AVCO used a famous registered trademark of BNC, Inc. in a manner that reduced its
value. This is a violation of the:
a. Federal Fair Use Act.
b. Federal Trademark Dilution Act.
c. Federal Trade Protection Act.
d. Cleveland/Myer Act.
Administrative agency rules consist of:
a. executive and independent rules.
b. legislative and interpretive rules.
c. informal and “notice and comment” rules.
d. promulgated and unpromulgated rules.
Linda agrees to buy Missy’s Greyhound race dog for $2,000. Linda is to deliver the
money and take possession of the dog the next morning. That night, running his best
race ever, the dog runs away from Missy, never to be seen again.
a. Linda must give $2000 for the dog, but only if the dog was insured.
b. Linda must give $2000 for the dog, but only if Missy can find a replacement dog
within a reasonable time.
c. Linda must give $2000 for the dog.
d. None of the above; the contract duties are discharged.
A court:
a. will enforce any express conditions intended by the parties.
b. may refuse to enforce an express condition intended by the parties if the court
determines it is unfair and harmful to the general public.
c. requires strict performance if a clause of the contract expressly demands it.
d. applies an objective standard whenever ruling on a personal satisfaction contract.
If Velma, as a birthday present, assigns to Jim her contractual right to collect $50 from
Wood Co., this would be a gratuitous assignment.
a. True
b. False
Roger purchased a tennis racquet from Rafael. Roger can prove he is a BFP by showing
only that he gave value and acted in good faith.
a. True
b. False
Which of the following contracts requires a writing under the UCC, Article 2?
a. Jeremy, a full-time student, sold his snow blower to a friend for $450.
b. Jeremy, a full-time student, purchased a used computer from Office Plus for $300.
c. A toy manufacturer contracted to sell dolls valued at $10,000 to a department store.
d. Tobias Department Store contracted to sell Jenny a $400 doll.
Brett applies to his bank for a $30,000 loan to purchase a truck for his familys use. This
loan is subject to TILA disclosure requirements.
a. True
b. False
Pamela hired Lena to sell her business. Lena:
a. can buy the business as long as the price is fair.
b. can buy the business as long as she qualifies for financing.
c. can buy the business only with Pamela’s permission.
d. cannot buy the business under any circumstances.
Quid pro quo sexual harassment cases involve co-workers making offensive jokes, rude
comments or displaying pornographic materials, but not sexual offers or requests.
a. True
b. False
The Pines, a small motel in central Georgia, may be subject to federal regulation even
though it is not close enough to the state borders to have many guests from other states.
a. True
b. False
Circuit City Stores, Inc. v. Commissioner of Revenue…
a. the issue was where were the goods identified.
b. the Court determined that the goods were not subject to Massachusetts sales tax
because title did not pass until they were picked up in new Hampshire.
c. The case involved insurable interest in good sold in one state but picked up in
another.
d. the court determined that until a specific serial number was recorded and the goods
were identified title could not pass.
Hall was arrested for burning the United States’ flag in a protest of governmental policy.
His action is protected under the First Amendments guarantee of free speech because
the flag burning is considered symbolic speech.
a. True
b. False
The Administrative Procedure Act:
a. applies to all federal agencies.
b. applies to executive branch agencies but not to independent agencies.
c. applies to independent agencies but not to executive branch agencies.
d. does not apply to federal agencies.
Larry decided to relocate to Germany. Larry hired Happy Homes, Inc. to find a buyer
and contract for the sale of his house in the U.S. The agency relationship between Larry
and Happy Homes must be evidenced with a written agreement.
a. True
b. False
If a court finds as a matter of law that a clause of a contract was unconscionable at the
time the contract was made, the court must refuse to enforce the contract.
a. True
b. False
A plaintiff sues in negligence but has no direct proof that the defendant behaved
unreasonably. Which of the following is most likely to help the plaintiff?
a. Res judicata.
b. Stare decisis.
c. Res ipsa loquitur.
d. Mens rea.
Charles owns 1,000 shares of stock in Temperan, Inc. Charles wants to obtain corporate
records including the corporation’s minute book and accounting records. Under the
Model Act, Charles is entitled to this information if he requests it in good faith and:
a. he has a proper purpose.
b. he owns at least 1 percent of the company or $2,000 of stock.
c. he is an employee of Temperan.
d. he is a controlling shareholder.