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Prior to the 1920s, the banking system in the United States was subject to strict
regulation by the federal government.
All group boycotts are per se illegal.
If a covered member or manager of a limited liability company commits an ordinarily
negligent act that is not grossly negligent, he or she is not liable to the LLC.
Most contracts are performed without the aid of the court system.
Cases involving nominal damages are usually brought on principle.
Title VII of the Civil Rights Act of 1964 is also called the Fair Employment Practices
Act.
A licensor can recover lost profits caused by the licensee's failure to accept or complete
performance of the contract.
An incidental beneficiary has no rights to enforce or sue under other people's contracts.
A Chapter 13 bankruptcy may be filed by a sole proprietorship.
The Williams Act does not regulate the length of time that a tender offer must remain
open.
Scienter means "innocent mind."
Because limited-jurisdiction courts are appellate courts, evidence can be introduced and
testimony can be given.
In Ledbetter v. Goodyear Tire & Rubber Co., Inc., the United States Supreme Court
held that the 180-day statute of limitations for pay discrimination begins to run on the
date the pay was agreed upon, not when the most recent paycheck violation occurred.
A defense to the enforcement of a contract is that the assent of one or both of the parties
to the contract was not genuine or real.
A quasi-contract is imposed where one person confers a benefit on another person who
retains the benefit, and it would be unjust not to require the recipient to pay for the
benefit received.
The courts have held that a party is considered to have manifested her consent to enter
into a contract by his or her physical action of using a mouse to click an "I Agree"
prompt button for a click-wrap license.
If one party to a contract has reasonable grounds to believe that the other party either
will not or cannot perform his or her contractual obligations, an adequate assurance of
performance may be demanded orally or in writing.
If one of the "four legals" is received by a bank, even if the bank has finished its
process of posting, the check cannot be paid contrary to the legal notice or action.
An operating agreement for a limited liability company regulates the affairs of the
company and the conduct of its business, but not relations among the members,
managers, and company.
A rare example of negligent infliction of emotional distress involves a bystander who
witnesses the injury or death of a relative caused by another's negligent conduct.
A mechanic's lien will take priority over a perfected lien that predates the creating of the
mechanic's lien.
An agency can arise in any of the following four (4.) ways:
. formal agency;
informal agency;
transparent agency;
agency by certification.
The Taft-Hartley Act gives employers the right to engage in free-speech efforts against
unions prior to a union election.
Under the Occupational Safety and Health Act, employers have a general duty to
provide a work environment free from recognized hazards that are causing or are likely
to cause death or serious physical harm to employees.
The term of a patent begins to run when the patent application is filed, not when the
application is accepted and the patent is granted.
Generally, minerals, crops and timber are real property both while attached to the land,
and when severed from the land.
In order for a common law marriage to be recognized, the parties need not hold
themselves out as husband and wife.
In most states, a valid real estate sales contract may be in writing, or it may be based on
oral statements at the option of the buyer and the seller.
The doctrine of quasi-contract is intended to prevent unjust enrichment, but not unjust
detriment.
To satisfy the fiduciary duty of care, directors and officers of a corporation must
discharge their duties in good faith, with the care that an ordinary prudent person in a
similar position would use under similar circumstances, and in a manner they
reasonably believe to be in the best interests of the corporation.
Which of the following acts regulates internal union affairs?
A) the Norris-LaGuardia Act.
B) the National Labor Relations Act.
C) The Labor-Management Reporting and Disclosure Act.
D) the Labor-Management Relations Act.
E) the Labor-Organized Crime Act
Unless otherwise expressly stated, an auction is considered a(n) ________.
A) auction with reserve
B) auction without reserve
C) unilateral contract
D) informal contract
E) voidable contract
What is the effect of the No Electronic Theft Act?
A) It provides a method for the federal government to criminally attack copyright
infringement and curb digital privacy.
B) It provides for imprisonment for up to one year for violation of the Act.
C) It provides for fines of up to $100,000 for violation of the Act.
D) It provides a method for the federal government to criminally attack copyright
infringement and curb digital privacy, it provides for imprisonment for up to one year
for violation of the Act, and it provides for fines of up to $100,000 for violation of the
Act.
E) The No Electronic Theft Act did not become law; although the Act was proposed and
passed by the U.S. Congress in 1997, it was not passed by the Senate.
Regarding a certificate of deposit:
A) the financial institution is the drawee.
B) the financial institution is the drawer.
C) the financial institution is the payee.
D) the financial institution is the maker.
E) there is no financial institution involved with a certificate of deposit
For which of the following in the U.S. Congress can the number to which a state is
entitled change over time?
A) senators
B) representatives
C) both senators and representatives
D) neither senators nor representatives
E) all members of the U.S. Congress
Fred, who is a policeman, and Wilma have been married for a number of years and Fred
has frequently abused her. After a particularly savage beating, Wilma musters the
courage to go to her priest for advice. In fact, Fred has previously been to the priest and
told him that he hates hitting Wilma but can't stop, pleading for help. The priest
counsels her to go to the police which she does. The police come to the house and arrest
Fred. Which of the following is correct?
A) Fred cannot stop the priest from testifying, because the privilege between them does
not apply in this situation.
B) Since Fred is a cop, the Miranda warnings need not be given.
C) Wilma must have a witness to corroborate her charges, because spousal privilege
will not allow a wife to testify against her husband (or a husband against his wife).
D) The police cannot arrest Fred until they have an indictment from the grand jury
approved.
E) The spousal privilege does not apply in this situation, and Wilma can testify against
Fred.
Mountain Tamer makes mountain bikes. Mountain Tamer's bikes are known for their
lightness. This lightness is attained by making all of the individual components of the
bikes as light as possible. Mountain Tamer's latest model, the MTN-500, contains
several new breakthroughs in weight-reduction technology, including a new lighter seat
post design. Trevor was one of the first in town to purchase an MTN-500, and loved it.
In the third week that he had it, the seat post broke while he was riding and Trevor was
injured. Trevor returned the bike to the dealer where he purchased it, and the dealer
notified the manufacturer of the problem. Assuming that this is the first seat failure,
which of the following is known at this point?
A) This would be considered misuse if Trevor weighs more than most riders of
mountain bikes.
B) This is a manufacturing defect, because the defect occurred in a manufactured
product.
C) This is a design defect, because a sturdier design would not have failed.
D) This could be either a design or a manufacturing defect, and further information
would be needed on the precise reason for the failure in order to determine which.
E) There is no theory under which Mountain Tamer could be held liable for the first
failure.
Tom has entered into a contract to purchase a home from Fred. As the closing date
approaches, Tom and Fred get into a dispute over whether or not the home theater
system that Fred had installed two years earlier is included in the sale. The contract that
Tom and Fred signed did not mention the home theater system. Which of the following
is true?
A) The home theater system is not included in the sale, because the contract did not
mention the home theater system in any way.
B) The home theater system is included in the sale, because it is within the walls of the
house.
C) Whether the home theater system is included in the sale depends on whether it can
be removed without causing significant damage to the house.
D) The home theater system is included in the sale, but only if the property is in
compliance with all applicable zoning regulations.
E) The home theater system is not included in the sale, because it was personal property
when Fred purchased it from the electronics store.
Which form of real property ownership includes the greatest degree of ownership?
A) fee simple limitless
B) fee simple defeasible
C) fee simple absolute
D) absolute life estate
E) rest and remainder
The passage of the National Environmental Policy Act and several other major
environmental statutes occurred in which decade?
A) the 1950s
B) the 1960s
C) the 1970s
D) the 1980s
E) the 1990s
Only ________ property can be bailed.
A) personal
B) real
C) intellectual
D) intangible
E) inherited
How many states have enacted legislation that compensates employees for injuries
sustained while working within the scope of their employment?
A) forty-six
B) forty-nine
C) forty-nine, with worker's compensation legislation pending in Alabama
D) forty-nine, with worker's compensation legislation pending in Maine
E) fifty
Someone who believes that the principles of justice and moral duties are based on
universal rules, and that the actor must abide by the same rules being applied to others,
believes in which moral theory?
A) ethical relativism
B) utilitarianism
C) ethical fundamentalism
D) Kantian ethics
E) Rawls's distributive justice theory
The primary source of antitrust laws is/are:
A) the United States Constitution.
B) the Uniform Commercial Code.
C) the Federal Trade Commission.
D) federal statutes.
E) common law.
Under the Economic Espionage Act (EEA), an organization can be fined up to $250,000
per criminal act.
The term 'sceinter" means:
A) good faith
B) empty head and innocent heart
C) troubled mind
D) guilty mind
E) troubled conscience
On May 1st, Bob offers to sell his car to Carol. Carol tells him that she'll need a few
days to decide. He says that he'll give her till May 3rd. On May 2nd, Bob sells the car to
Ted and Alice. On May 2nd Carol sees Ted and Alice who inform her about their
purchase. On May 3rd Carol calls Bob to accept. Which of the following is correct?
A) A contract was formed between Bob and Carol on May 1st.
B) A contract was formed between Bob and Carol on May 3rd.
C) Bob was required to wait until May 3rd before selling the car.
D) Carol could enforce the contract based on promissory estoppel.
E) Bob and Carol have no contract.
Which of the following is true regarding liability when a car is stolen or damaged while
parked in a commercial lot or garage?
A) Garages are always bailees of automobiles, and they are therefore liable for all theft
and/or damage occurring to vehicles in their possession and control.
B) Garages are liable for car theft, but not damage to vehicles.
C) Garages are liable for damage to vehicles, but not car theft.
D) Garages are not bailees, and they are therefore not liable for car theft or damage to
vehicles.
E) If the owner parks his or her own car and takes the keys, the arrangement is
considered merely a lease of the parking space, not a bailment, with the general rule
being that the owner of the garage is not liable for theft of or damage to the car.
When a party does not have a legally-required license to practice her profession, can a
party who enters into this contract avoid payment to the professional under the
contract?
A) no, the contractual obligation is unaffected by the lack of the required license
B) no if the licensing requirement is designed to raise revenue, but yes if it is designed
to protect the public from unqualified practitioners of the profession
C) yes if the licensing requirement is designed to raise revenue, but no if it is designed
to protect the public from unqualified practitioners of the profession
D) yes, regardless of the purpose of the licensing statute
E) yes, in any circumstance where the client was unaware that the professional was
lacking the required license
Assume Heather is driving her automobile when she is involved in a serious automobile
accident and rushed to the hospital. She receives medical services while she is
unconscious. Is Heather responsible for the hospital charges?
A) yes, under the doctrine of quasi-contract
B) yes, under an implied-in-fact contractual theory
C) no, because Heather never asked for the treatment
D) Whether Heather is responsible for the hospital charges depends on what the judge
thinks about Heather's subjective intent to form a contract.
E) no, because a tort was involved.
Property is considered ________ property when its owner voluntarily places the
property somewhere and then inadvertently forgets it.
A) abandoned
B) conditional
C) lost
D) mislaid
E) intangible
A limited liability company is formed by delivering articles of ________ to the office of
the secretary of state for filing.
A) organization
B) incorporation
C) association
D) establishment
E) certification
One of the main reasons that contracts involving minors are voidable at the minor's
option is:
A) to protect the minor from unscrupulous adults.
B) to reduce the amount of litigation in the courts.
C) to support the policy of not enforcing gift promises.
D) to punish adults for entering into contracts with minors.
E) to prevent minors from entering into contracts.
Which of the following is true about the Statute of Frauds?
A) The Statute of Frauds requires that all major terms of a contract must be written and
signed by all parties to the contract.
B) The Statute of Frauds requires the seller to provide the buyer with a signed invoice
upon delivery of goods.
C) The Statute of Frauds only applied to merchants.
D) The Statute of Frauds is a defense to the "Battle of the Forms"
E) The Statute of Frauds requires certain contracts to be in writing and signed by the
party against whom enforcement is sought.
Which of the following is correct about the World Trade Organization?
A) The World Trade Organization was created in the 1940s.
B) The World Trade Organization has adopted a judicial-based dispute resolution
system to replace the politically-oriented system in place previously.
C) Only a few nations have a representative on the World Trade Organization
dispute-settlement body.
D) Parties to a dispute have a veto power over any decision reached by the World Trade
Organization.
E) China has not been admitted to the World Trade Organization.
Which of the following is true regarding bailment agreements?
A) The creation of all bailments requires a writing.
B) A bailment may be express, but not implied.
C) A bailment may be implied, but not express.
D) An example of an implied bailment is the finding and safeguarding of lost property.
E) The creation of all bailments requires that exact formalities be observed.
The document by which a shareholder grants another person the right to vote his or her
shares at a shareholders' meeting is called a(n):
A) power of attorney.
B) proxy.
C) voting trust.
D) election agency.
E) voting authority.
Which of the following is correct about the states' powers regarding foreign affairs?
A) The states have no power over foreign affairs, because the United States
Constitution grants that power exclusively to the federal government.
B) The states can pass laws and enter into treaties with foreign nations, so long as they
do not unduly burden foreign commerce.
C) The states can pass laws affecting foreign commerce and enter into treaties with
foreign nations, so long as they first obtain the consent of the United States Senate.
D) The states can pass laws so long as they do not unduly burden foreign commerce,
but the states have no authority to enter into treaties with foreign nations.
E) Because of the sharing of powers between the federal government and the states,
states have powers over foreign affairs equal to the powers of the federal government.
Which of the following statements is not true regarding the buyer's right to cover?
A) The buyer is obligated to cover when commercially reasonable.
B) The measure of damages in a cover is cover price less contract price.
C) Cover must be done in a commercially reasonable manner and without undue delay.
D) Consequential damages can be recovered in addition to the cover damages.
E) The seller may not cover.
Which of the following is true about the Law and Economics School of jurisprudence?
A) It is also known as the Chicago School.
B) It promotes the use of economic principles in resolving cases, so long as the case is
one involving business.
C) It would say that a case which no lawyer would take on a contingent fee basis should
be brought by an attorney who is paid by the state.
D) It holds that antitrust cases should be vigorously prosecuted in order to protect the
economic viability of smaller firms.
E) There is no Law and Economics School of jurisprudence.
An unconditional promise to perform is known as a(n):
A) irrevocable offer.
B) firm offer.
C) covenant.
D) estopped promise.
E) unconditional offer.
In State of Ohio v. Wilson, in which Wilson set his girlfriend on fire and she died nine
months later, the court decided that:
A) Wilson was convicted of aggravated assault but could not be charged with murder
because Melissa Spear did not die immediately from her burns.
B) Wilson could not be convicted of murder because he intended to hurt her but not kill
her, so there was no intent.
C) The fire had a causal connection to Melissa's death, so Wilson was guilty of murder
even though she did not immediately die.
D) Foreseeability could not be proven, so the case was remanded to the lower court to
be retried.
E) Wilson could not be found guilty of murder because there is a six-month statute of
limitations from the act to the death. Anything longer makes the proximate cause too
remote.
An accommodation party can sign:
A) only as maker or drawer.
B) only as maker or indorser.
C) only as maker, drawer or indorser.
D) only as acceptor or indorser.
E) as maker, drawer, indorser or acceptor.
A(n) ________ clause is a contractual provision that relieves one or both parties to a
contract from tort liability.
A) culpability
B) inculpatory
C) exculpatory
D) divestiture
E) exclusionary
