Blackmail is defined as:
a. giving money to a person to influence that person’s judgment.
b. an illegal demand made by a public official.
c. an illegal demand made by a nonpublic official.
d. providing improper political influence.
The type of patent that may be granted to developers of plant reproduction methods is
called a:
a. process patent.
b. functional or utility patent.
c. improvement patent.
d. plant patent.
The standard statute of frauds:
a. requires full disclosure in the case of consumer sales on credit.
b. requires a seller of real estate to obtain a broker’s license.
c. specifies the punishment of perjury.
d. requires that a contract for the sale of land be evidenced by a writing.
The right to privacy applies to protect you from unreasonable searches:
a. to you personally.
b. to your home.
c. to your business.
d. all of the above.
The principal forms of business organization are:
a. sole proprietorships, joint ventures, and corporations.
b. unincorporated associations, partnerships, and corporations.
c. unincorporated associations, limited partnerships, and corporations.
d. sole proprietorships, partnerships, and corporations.
A __________ is a condition that must occur before a party to a contract has an
obligation to perform under a contract.
a. condition precedent
b. condition subsequent
c. concurrent condition
d. none of the above
Which of the following is an incorrect statement about officers?
a. Their duties are generally set forth in the corporation’s bylaws.
b. They have a fiduciary obligation to the corporation.
c. They are agents of the corporation.
d. Their authority as agents is increased if they are shareholders.
Sylvia and Morris were married and owned their home as tenants by the entirety. When
Morris died, his will said that he left his half of his home to his brother Tim. Sylvia
objects to this. The ownership of the home:
a. belongs solely to Sylvia by survivorship.
b. is now a joint tenancy between Sylvia and Tim.
c. is now a tenancy in common between Sylvia and Tim.
d. belongs to Sylvia and the state, in equal and divisible shares.
Goods that are not yet in existence or are not yet owned by the seller are__________
goods.
a. fungible
b. nonexistent
c. future
d. contingent
If a maintenance employee at a hotel finds a pocketbook with $500 in cash while
cleaning an empty guest room, the employee:
a. is entitled to keep the property, because the employee has the legal status of a
“finder.”
b. must give the property to the manager of the hotel to be kept for the owner.
c. must place an advertisement in a local newspaper, and if the property is not claimed
within seven (7) business days, the employee is entitled to keep it.
d. can retain possession of the property until the owner establishes ownership.
When one party has broken a contract, there are several remedies available to the
non-breaching party, including:
a. bringing an action for money damages.
b. rescinding the contract.
c. seeking specific performance.
d. all of the above.
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.
Which of the following is not an example of incidental damages recoverable by a
seller?
a. expenses for the care of the goods after the buyer’s breach
b. expenses for transportation of the goods after the buyer’s breach
c. expenses for resale of the goods after the buyer’s breach
d. expenses for the attorney’s fees after the buyer’s breach
Which of the following does not constitute an acceptance?
a. An express statement of approval by the buyer.
b. The buyer’s examination of the goods.
c. The buyer’s retention of goods for an unreasonable period of time.
d. The buyer’s modification of the goods.
When a zoning ordinance is adopted, any existing property used for a purpose that does
not conform to the zoning ordinance:
a. must be demolished.
b. must no longer be used for a nonconforming use or purpose.
c. may be used for any use that does not conform to the zoning regulation.
d. may continue to be used for the same nonconforming use.
A minor cannot avoid a contract to purchase a car if the:
a. car has been destroyed.
b. car has been damaged.
c. car is used for non-commercial purposes.
d. minor is able to return the car but does not do so.
The FTC franchise disclosure statement must contain:
a. the business experience of the franchisor and its brokers.
b. any current and past litigation against the franchisor.
c. the grounds for termination of the franchise.
d. all of the above.
A warehouser that holds itself out to serve the public generally without discrimination is
called a(n):
a. public warehouser.
b. general warehouser.
c. nondiscriminatory warehouser.
d. ordinary warehouser.
Strict tort liability is applied:
a. independently of the UCC.
b. without regard to privity of contract.
c. despite negligence on the part of the plaintiff.
d. all of the above.
By the mere act of selling, a warranty is made that the:
a. goods are the finest available.
b. seller’s title is good and the transfer is rightful.
c. price is the lowest available.
d. all of the above.
For a bilateral contract to be enforceable there must be:
a. mutuality of obligation.
b. an illusory promise.
c. forbearance.
d. adequacy of consideration.
The common law rights and duties of a warehouser, in the absence of modifying
statutes, are for the most part those of a bailee in:
a. a bailment for the sole benefit of the bailee.
b. an ordinary mutual-benefit bailment.
c. a bailment for the sole benefit of the bailor.
d. none of the above.
A bailment is created:
a. when a person rents space in a building
b. when a person rents a safe deposit box at a bank
c. both a. and b.
d. neither a. nor b.
In applying the “front-page-of-the-newspaper” test to a contemplated course of conduct
one should ask:
a. Would I be found criminally liable if this winds up on the front page of the
newspaper?
b. Would I be liable for monetary damages if this winds up on the front page of the
newspaper?
c. Would I be willing to have my spouse, friends, and children read about this if it winds
up on the front page of the newspaper?
d. Would I be able to explain this to the authorities if it winds up on the front page of
the newspaper?
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.
A right is defined as:
a. an obligation of law imposed to perform an act.
b. a legal capacity to require another party to perform an action.
c. any written promise.
d. none of the above.
Under the Uniform Commercial Code (UCC), a firm offer applies to:
a. a written, signed offer by a merchant to buy or sell goods.
b. an unwritten but definite offer to buy or sell goods.
c. a written, signed offer by anyone to buy or sell goods.
d. an unlimited, stipulated period of time.
A seller’s right to retain possession of goods until the seller has been paid is called a:
a. seller’s lien.
b. buyer’s lien.
c. merchandise estoppel.
d. nonpayment tort.
The relationship of guest and hotelkeeper ends when the guest:
a. pays his or her bill.
b. advises the hotelkeeper of his or her departure .
c. leaves or ceases to be a transient.
d. has stayed for 30 days and becomes a boarder.
Under which of the following doctrines is it held that a foreign sovereign cannot be
sued unless it engages in illegal commercial conduct?
a. act-of-state
b. sovereign compliance
c. Timberlane
d. sovereign immunity
The Petroleum Marketing Practices Act gives gas station __________ the opportunity
to continue in business by purchasing the entire premises used in selling motor fuel
when the franchisor decides to sell the property and not renew a lease.
a. franchisees
b. licensors
c. joint venturers
d. partners
Which of the following statements regarding limited partnerships is true?
a. The words limited partnership or simply LP must appear in the firm’s name.
b. General partners cannot avoid personal liability by incorporating.
c. Limited partners can lose their liability limitation if they participate in the control of
the business.
d. All of the statements are true.
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.
The Fifth Amendment to the United States Constitution’s protection against
self-incrimination applies to:
a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
Most courts consider an engagement ring to be a conditional gift.
Employers have access and control rights to their employees’ e-mail.
Before an appeal can be taken to a court concerning a determination of an agency, all
administrative remedies must be exhausted.
When a special indorsement is made, the instrument continues to be order paper and
may be negotiated only by an indorsement and delivery.
The fact that a partnership is terminated after a life insurance policy is obtained by one
partner on another invalidates the policy.
Subject to constitutional limitations, corporations may be regulated by statutes.
An administrative agency has the power to investigate, to require persons to appear as
witnesses, to require witnesses to produce relevant papers and records, and to bring
proceedings against those who violate the law.
A “right to control” test determines whether an individual is an agent, an employee, or
an independent contractor.
An action for negligence rests upon common law tort principles.
One of the characteristics of the “living” Constitution is limited government.
When the plaintiff seeks the remedy of specific performance, the plaintiff wants the
other party to carry out the terms of the contract and not pay damages.
Ulysses bought Whiteacre from Gordon but never recorded the deed. Gordon stayed on
the property as a tenant for three (3) years. Near the end of the three (3) years, Gordon
learned that Ulysses had never recorded the deed. Gordon advertised Whiteacre for sale
and Cheryl negotiated with Gordon thinking that Gordon was the owner. Finally, Cheryl
checked the records at the recording office and, finding no reason to question Gordon’s
ownership of the property, purchased Whiteacre from Gordon. Cheryl recorded the deed
and Gordon fled with the purchase money. Meanwhile, Ulysses had failed to pay the
real estate taxes on Whiteacre for the three (3) years in question thinking it was the
responsibility of Gordon, the tenant. Ultimately, Cheryl and Ulysses disputed over the
ownership of the property. Decide the case between Cheryl and Ulysses. Also decide
whether Ulysses is responsible for the three (3) years of real estate taxes assessed while
Gordon occupied the property as a tenant.
Licensees are on the premises with the permission of the landowner.
An agency coupled with an interest is an exception to the general rule regarding
termination of the agency and the agent cannot be discharged or fired before the
expiration of the interest.
For ratification to occur, the agent must have purported to act on behalf of, or as agent
for, the identified principal.