A check on which one bank is the drawer and another bank is a drawee is a:
A. cashier’s check.
B. antedated check.
C. certified check.
D. teller’s check.
In an assault case, it is irrelevant:
A. whether the threatened contact actually occurs.
B. whether there is any intent or not.
C. whether there is an apprehension of harmful contact.
D. whether there is any reasonable apprehension of imminent battery.
The Department of Homeland Security:
A. is an executive administrative agency.
B. is a non-profit organization.
C. is a cabinet-level department.
D. has no effect on governmental organization.
Ahmed Cohen received a check for $5,000 for a used car he sold. The check was
marked “pay to the order of Ahmed Cohen.” On back of this check he wrote, in his
handwriting, “Ahmed Cohen.” This has the legal effect of:
A. making this instrument nonnegotiable.
B. making this instrument void.
C. making this instrument order paper.
D. making this instrument bearer paper.
Which of the following rules is applicable to determine the liability of a corporation for
any torts committed by its agents?
A. Principle-agent relationship
B. Joint and severally liable
C. Strict liability
D. Vicarious liability
Jones hired Smith, a general contractor, to build a garage as an addition to Jones’ home.
Smith hired Adam to do the roofing work on this garage. All the work was done
satisfactorily, and at the completion of the work, Jones paid Smith the agreed price.
However, Smith never paid Adam for his work. Three weeks after Adam finished his
work, he filed a mechanics’ lien against the property and demanded that Jones pays him
for his work. Which of the following is most correct?
A. Jones need not pay Adam because he has already paid in full for the garage.
B. Jones need not pay Adam because Adams’ contract is actually with Smith in this
case.
C. Jones should pay Adam because Adam has the right of redemption.
D. Jones should pay Adam because he can enforce his lien claim against the property.
According to the Statutory Close Corporation Supplement to the MBCA who does a
shareholder have a fiduciary responsibility to?
A. To all the other shareholders of the corporations
B. To the Secretary of State
C. To individual citizens in the state the corporation is incorporated
D. To the CEO of the corporation
Scarlett and Mark want to lease an apartment from Connor for a year. Connor first
agrees, but on finding that they have two small children, refuses to lease them his
apartment. Is Connor’s refusal legal?
A. Yes, he is the owner and has the right to refuse a lease.
B. Yes, he has a valid reason for the refusal.
C. No, because Scarlett and Mark have promised to pay rent on time.
D. No, because this blatant discrimination is prohibited by the law.
Which of the following is a provision of the Sarbanes-Oxley Act of 2002?
A. It imposed a maximum of 15 years of imprisonment as punishment for the
destruction of documents.
B. It decreased the maximum term of imprisonment for mail fraud and wire fraud to 15
years.
C. It provided legal protection for corporate employees who act as whistleblowers.
D. It shortened the statute of limitations period within which certain securities fraud
cases may be filed.
Which of the following distinguishes the Restatement (Third) from section 402A?
A. It covers design defects.
B. It covers manufacturing defects.
C. It does not require that the product be unreasonably dangerous.
D. It covers sellers engaged in selling the product that harmed the plaintiff.
Which of the following characterizes section 43 (a) of the Lanham Act?
A. It is a consumer remedy.
B. It addresses everything except advertisements.
C. It is available only to commercial parties.
D. It creates a state law of unfair practices.
With regard to an agreement for the sale of real estate, the statute of frauds:
A. does not require that the agreement be signed by all parties.
B. does not apply if the value of the real estate is less than $500.
C. requires that the entire agreement be in a single writing.
D. requires that the purchase price be equal to the value of the real estate.
Which of the following is true of a person’s capacity to be a principal or agent?
A. To be an agent, a person must have the ability to make his won contracts,
independent of the principal.
B. Any duty that a principal has the capacity to perform can be delegated to an
authorized agent.
C. A principal must have the capacity to do the acts for which the agent has been
retained.
D. To be an agent, a person must have the capacity to perform non-delegable
obligations for the principal.
Consideration can be a(n) _____ in the case of a bilateral contract.
A. act
B. promise
C. exchange
D. gift
Betty, age 16, buys a car and wrecks it one week later. She takes it back to the seller and
demands all her money back. According to the traditional rule, is she entitled to get all
her money back?
A. Yes, regardless of the condition of the car, because this was a void contract.
B. Yes, regardless of the condition of the car, because this was a voidable contract.
C. No, she is entitled to no remedy in this situation.
D. No, she is entitled to get some money back but less the value of the damage to the
car.
The standard of proof in a criminal case is:
A. proof by a preponderance of the evidence.
B. proof beyond a reasonable doubt.
C. proof that is “more likely than not.”
D. proof beyond the presumption of innocence.
Which of the following is an example of a consequential damage?
A. Expense that a buyer incurs in receiving and inspecting goods shipped by the seller
that do not conform to those called for in the contract.
B. Charge that the buyer has to pay in obtaining substitute goods.
C. An injury to a person caused by a breach of warranty.
D. Expense that a buyer incurs in storing nonconforming goods shipped by the seller.
Bob and Evan both own tanning salons in Ridgemont, California. They form the “Slow
Growth Society of Ridgemont” as a lobbying group to persuade Ridgemont City
Council to pass a zoning ordinance that would effectively prohibit new personal
services businesses such as tanning salons in Ridgemont. This is prohibited under the
Sherman Act.
_____ is the plaintiff’s voluntary consent to a known danger.
A. Contributory negligence
B. Product misuse
C. No privity
D. Assumption of risk
If a person signs a check as an accommodation indorser:
A. his contractual liability is that of an indorser.
B. his contractual liability is limited to the payment of the principal.
C. his contractual liability is more than that of an indorser.
D. his contractual liability is limited to the payment of the interest.
The courts in determining if a merger is anticompetitive will look at the area that will
have effects that are direct and immediate. What is the term for this analysis?
A. Relevant Geographic Market
B. International Risks Test
C. Irrelevant Geographic Means
D. Domestic Risk Analysis
On preincorporation share subscriptions:
A. promoters have no liability.
B. promoters have no liability after incorporation.
C. promoters have personal liability till novation.
D. promoters have maximum liability.
A joint will:
A. can only have a single beneficiary.
B. is only valid if the testators are a married couple.
C. is a single instrument that constitutes the will of both or all of the testators.
D. cannot be changed once it is created.
Section 2-608 of the UCC governs gives the buyer what right in sales contracts?
A. The right to revoke a sales contract within a reasonable period for nonconformity
B. The right to accept fewer units from the seller in order to make the agreement
profitable
C. The right to place sales agreement on hold till new credit can be obtained
D. The right to pay less that agreed upon price if the agreement is not profitable
The rationale for the fictitious payee rule is that:
A. the bank should bear the immediate loss of the forged instruments.
B. the holder in due course should bear the immediate loss of the forged instruments.
C. the employer of the wrongdoer should bear the immediate loss of forged instruments.
D. the wrongdoer should bear the immediate loss of the forged instruments.
Katie Kuric is the only shareholder, director, and officer of two corporations,
Multimedia Corporation and Kuric Network Television Corporation (KNT).
Multimedia produces television shows and movies. KNT broadcasts television
programming over the air and on cable. KNT purchases much of its TV programs and
movies from Multimedia. KNT often pays Multimedia for the TV shows and movies
more than a year after payment is due, without being required to pay interest or a late
payment penalty. What risk is Katie taking by allowing KNT to pay Multimedia late?
A. None, because KNT and Multimedia are separate and distinct legal entities.
B. None, because only Multimedia is harmed by this arrangement, and Katie owns both
corporations.
C. KNT’s veil will be pierced because KNT is evading an obligation with Multimedia.
D. KNT’s veil will be pierced because Multimedia’s creditors are being defrauded.
Which of the following factors is most significant in determining whether an item of
personal property has become a fixture?
A. The extent of injury to the property by its removal.
B. The value of the item.
C. Actual physical attachment to real property.
D. The buyer of the item.
Mr. Blue gave Mr. Green $1000 to help his family out. Later Mr. Blue entered into a
sales contract with Mr. Green and wanted the consideration to be in part the $1000.
What is the term for the $1000?
A. Past Consideration
B. Future Consideration
C. Equitable exchange
D. Present Intent
A limited partner’s obligation to contribute capital may be enforced only by the:
A. general partners and the creditors of the limited partnership.
B. limited partners of the limited partnership.
C. limited partnership and the general partners.
D. limited partnership and creditors of the limited partnership.
Helga owns an insurance business in Idaho. Her clients are all Idaho residents. She later
sells her business to Carlos. As part of the deal, the contract contains a noncompete
clause that prevents Helga from operating an insurance business anywhere in Idaho,
Washington, or Oregon for a period of five years. Six months after this sale, Helga
opens an insurance business in Oregon. If Carlos seeks to enforce the noncompete
agreement against Helga, will he probably be successful?
A. Yes, because this agreement is reasonable.
B. Yes, because the clause is not imposing an undue hardship.
C. No, because this agreement is not reasonable.
D. No, because the agreement is not yet converted into a treaty.
What type of transactions are governed by the Uniform Commercial Code?
A. Contracts for the sale of goods.
B. Contracts for services.
C. Contracts for the sale of land.
D. Any commercial contract, whether for goods, services, or land.
Which of the following is one of the four material elements required for meeting the
substantially-equal-work condition for application of the Equal Pay Act?
A. Equal training opportunities
B. Equal remuneration
C. Equal responsibility
D. Equal bonus structure