Match the following:
a. Conclusively presumed unreasonable and therefore illegal.
b. Acquisition by one company of a competing company.
c. Established environmental protection as a goal of federal policy; created the Council
on Environmental Quality and requires an EIS in certain circumstances.
d. Company’s acquisition of one of its suppliers or customers.
e. An illegal form of sexual discrimination that includes unwelcome sexual advances,
requests for sexual favors, and other verbal or physical conduct of a sexual nature.
f. Presidential order, for example, President Johnson’s order prohibiting discrimination
by federal contractors on the basis of race, color, sex, religion, or national origin on any
work performed by the contractors of the federal contract.
g. Includes any note, stock, bond, preorganization subscription, and investment contract
(any investment of money or property made in expectation of receiving a financial
return solely from the efforts of others).
h. A signed writing by a shareholder authorizing a named person to vote her stock at a
specified meeting of shareholders.
i. A general invitation to all shareholders to purchase their shares at a specified price for
a specified time.
j. Not recognized by the common law or federal law, although some states have adopted
statutes granting some form of this.
k. Enacted to assure workers of a safe and healthful work environment.
l. Transaction involving delayed payment for goods, services, or land to be used for
personal, household, or family purposes.
m. Having the characteristics of being novel, useful, and not obvious.
n. Requires advertisers to have a reasonable basis for their claims.
o. Prohibits a written warranty from disclaiming any implied warranty.
p. Foreign country’s freedom from a host country’s laws.
q. Any business that engages in transactions involving the movement of goods,
information, money, people, or services across national borders.
r. Controlled by trade barriers on imports and exports.
s. Statutes prohibiting anticompetitive practices and seeking to prevent unreasonable
concentrations of economic power.
t. Superfund; established a national contingency plan for responding to releases of
hazardous substances and established a trust fund to pay for cleanup and removal of
hazardous waste.
u. The judicial branch of the United Nations that has voluntary jurisdiction over nations.
1) sexual harassment
2) tender offer
3) ad substantiation
4) executive order
5) per se
6) security
7) vertical merger
8) antitrust laws
9) International Court of Justice
10) CERCLA
11) proxy
12) NEPA
13) patentable
14) accountant-client privilege
15) multinational enterprise (MNE)
16) consumer credit
17) sovereign immunity
18) horizontal merger
19) flow of trade
20) disclaimer limitation
21) OSHA
A contractor and Buckingham, Inc. have a contract, which calls for the contractor to
build a building with the completion of it by June 15. If the building is not completed
by that date, the contract calls for the contractor to pay $100 per day in damages. The
$100 per day is:
a. punitive damages.
b. nominal damages.
c. liquidated damages.
d. an illegal penalty.
A payment order:
a. is a sender’s instruction to a receiving bank to pay, or to cause another bank to pay, a
fixed or determinable amount of money to a beneficiary.
b. is issued when sent and, if more than one payment is to be made, the payments are
condensed into one payment order.
c. must be communicated in writing or electronically.
d. All of the above.
Under the UPA, which of the following liabilities of a partnership has the highest
priority for payment out of partnership assets? Amounts owing to:
a. partners for profits
b. partners for loans and advances
c. nonpartner creditors
d. partners for capital
The Wall Street Reform and Consumer Protection Act of 2010 requires all but which of
the following in relation to mortgages?
a. That lenders ensure a borrower’s reasonable ability to repay the loan.
b. That subprime mortgages not be issued.
c. Disclosure of the maximum amount a consumer could pay on a variable rate
mortgage.
d. Expanded protection for borrowers of high-cost loans.
e. Warning that payments on a variable rate mortgage will vary based on interest rate
changes.
The Revised Act permits a corporation to purchase, redeem, or otherwise acquire its
own shares unless:
a. the corporation’s total assets after the distribution would be less than the sum of its
total liabilities and the maximum amount that would be payable for all outstanding
shares having preferential rights in liquidation.
b. the corporation would be unable to pay its debts as they became due in the usual
course of its business.
c. Both of the above.
d. None of the above.
Code Section Matching:
a. A written contract may be explained or supplemented by course of dealing, usage of
trade, course of performance, or evidence of consistent additional terms unless the
parties intended the writing to be a complete and exclusive statement of their
agreement.
b. “Good faith” means honesty in fact in the conduct or transaction concerned.
c. An offer to make a contract is construed as authorizing acceptance in any reasonable
manner.
d. Variant acceptances; modification of “mirror image” rule.
e. Definition of a “merchant.”
f. The common law of contracts applies where the Code has not specifically modified
general contract law.
g. Unconscionable contracts.
h. The Article 2 statute of frauds.
i. Open terms; gap-filler provisions.
j. Firm offers.
k. Defines ‘sale.”
1) 1-103
2) 1-201(19)
3) 2-104
4) 2-106
5) 2-201
6) 2-202
7) 2-204, 2-305, 2-308
8) 2-205
9) 2-206
10) 2-207
11) 2-302
In the case of Hadley v. Baxendale, the plaintiff was seeking damages for:
a. restitution.
b. lost profits.
c. failure to convey land.
d. failure to specifically perform a contract.
The fair market value of a 10-foot fishing boat is $1,000. In a special promotion, J’s
Marina purchases a 10-foot fishing boat for $900. The boat is badly scratched when it
arrives. J’s Marina, however, accepts the shipment and notifies the seller of the defect.
The boat as delivered has a value of $800. If the damaged boat is a breach of warranty
by the seller, the buyer may recover from the seller:
a. $100.
b. $100 plus incidental and consequential damages.
c. $200.
d. $200 plus incidental and consequential damages.
Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later
Miller changed his mind after discovering that he could have sold the property to
another buyer for an additional $20,000. Jefferson sues and asks the court to have the
property conveyed to him at the price of $80,000. Jefferson is seeking:
a. restitution.
b. punitive damages.
c. specific performance.
d. valid tender.
The Civil Rights Act of 1964 provides which of the following defenses?
a. A bona fide seniority or merit system
b. A professionally developed ability test
c. A bona fide occupational qualification (BFOQ)
d. All of the above
e. None of the above
XYZ, Inc. has been convicted of bribing public officials. It is now time for sentencing.
Possible sentences include:
a. putting the corporation’s president, who was not involved in the bribery, in jail.
b. putting the corporate shareholders in jail.
c. fining the corporation.
d. None of the above. A corporation cannot commit a crime.
Lynne took her earrings off at Marcia’s beauty parlor and put them on the counter. She
left the shop without remembering the earrings. Betty finds them and wants to keep
them. Can she?
a. Yes, since she is a finder
b. Yes, she now is the true owner
c. No, since the earrings were personal property
d. No, Marcia would have first claim if the true owner is not discovered
Under Chapter ____, the bankruptcy estate includes wages earned after commencement
of the case.
a. 7
b. 11
c. 13
d. None of the above
Which of the following would NOT be considered an agent?
a. A salesman who sells his employer’s goods
b. An independent contractor without authority to act on behalf of the person hiring her
c. A factory worker hired to operate a machine
d. A buyer who regularly buys merchandise for a store
e. Both (b) and (c).
Alice loans George $500 and Sue acts as surety under the loan agreement. When
George defaults, Alice comes to Sue to collect the $500. Sue reaches a settlement to pay
$400 to Alice in complete satisfaction of the loan. What recourse does Sue have against
George?
a. She can require reimbursement of $400.
b. She can require payment of $500.
c. She can require payment of $100.
d. She cannot require him to pay her, since she accepted the risk of liability.
The international treaty to which the United States is a party and which protects
copyrighted works is known as the:
a. Berne Convention.
b. Convention on International Copyright Protection (CICP).
c. Geneva Convention.
d. Treaty of Vienna.
Assume a foreign nation has seized all of the property of an American corporation. The
foreign nation has assumed ownership of the property for a public purpose and has paid
the American corporation what it believes to be fair compensation. Under these facts,
the seizure of property is best described as:
a. expropriation.
b. confiscation.
c. force majeure.
d. eminent domain.
Mark, who is 16 years old, appoints Joe, age 21, as his agent to purchase a videotape
recorder from VideoWorld. The transaction between Joe and VideoWorld is:
a. void because Mark is a minor.
b. voidable by VideoWorld because Mark is a minor.
c. voidable by Mark because he is a minor.
d. not voidable because Joe is not a minor.
Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the
following is correct?
a. Violet may not disaffirm the contract.
b. Violet may disaffirm the contract at any time.
c. Violet may disaffirm the contract when Tim becomes an adult.
d. Tim may ratify the contract at any time during his minority.
Henry was burning leaves in his backyard. One of the burning leaves was lifted by the
wind into Emilio’s yard next door. It landed on the lawn mower which exploded, setting
fire to the wooden lawn furniture. Henry’s best argument against liability would be:
a. that the leaf was not a substantial factor in causing the damage.
b. res ipsa loquitur.
c. that it was not foreseeable that the lawn mower would explode.
d. that the damage was not caused by the leaf but by the gasoline.
Marian lives in a “notice-race” state. She buys Blackacre from Robin but fails to record
her deed. Robin then sells Blackacre to John, who also forgets to record. If Marian
realizes her mistake and then records the deed, who will own title to the land?
a. John, since he had no notice.
b. John, since he purchased in good faith.
c. Marian, because she was first to file.
d. Marian, because she bought the property first.
A writing signed by a shareholder, granting authority to another to vote the signer’s
stock at a specified shareholder meeting is a:
a. tender offer.
b. short-term commercial paper.
c. registration.
d. proxy.
Congress has concluded that ____________ is the most prevalent method used for
distributing pornography and perpetrating fraudulent schemes, and it enacted the
____________ to deal with the problem.
a. spam; CAN-SPAM Act
b. mala prohibita crime; Model Penal Code
c. mala in se crime; RICO Act
d. white-collar crime; Sarbanes-Oxley Act
Shirley hears about a reward being offered by the local television station for
information leading to the arrest and conviction of a local rapist. She supplies the
requested information, and the suspect is then arrested and convicted. In this case:
a. Shirley cannot collect the money unless the offer was specifically made to her by the
station.
b. the offer by the television station was an offer made to the general public to enter into
a unilateral contract, which offer Shirley has accepted.
c. because Shirley failed to notify the station of her intention to supply the information
before actually doing so, she has not accepted their offer.
d. Shirley was just doing her duty as a citizen and has no right to the payment of any
money.
Mary cleaned her dorm room in the spring and left a pile of books in Sara’s room. Mary
told everybody that the books were a gift to Sara. Does Sara have to dispose of them?
a. Yes, because there was a present intent and delivery
b. Yes, because they are constructively in Sara’s possession
c. No, because Sara did not accept the books
d. No, because there was no agreement between the two parties
Walker recently purchased 1,000 shares of Heights Corp. stock, but now receives
additional 100 shares of Heights stock, which represent a ratable distribution of
additional shares by the corporation. Walker’s receipt of additional shares is a:
a. property dividend.
b. liquidated dividend.
c. convertible dividend.
d. stock dividend.
Alice offers to sell her computer, monitor, and printer to Bradley for $300. Bradley says
he will accept provided that Alice includes her word processing software. What is the
status of their discussions?
a. There is a valid contract for the computer, the monitor, the printer, and the software.
b. There is no contract, because Bradley has made a counteroffer.
c. There is no contract, because the time for delivery has not been decided.
d. There is no contract, because the offer has been revoked by the offeror.
Which of the following is NOT a major duty which the agent owes to his principal?
a. Duty to obey instructions.
b. Duty to act in good faith and with loyalty.
c. Duty to indemnify.
d. Duty to exercise care.
Shannon orally agrees to buy 500 telephone answering machines from Thomas for
$25,000. Thomas delivers 300 answering machines to Shannon, who receives and
accepts them. Which of the following is correct with regard to this transaction?
a. Shannon can enforce the contract for the additional 200 machines.
b. The contract is enforceable only to the extent of the 300 machines that have been
received and accepted.
c. The entire contract is in violation of the statute of frauds and cannot be enforced.
d. This is a bad deal and therefore unconscionable and unenforceable from the
beginning.
An accountant’s liability under the federal securities laws is basically the same as the
liability at common law.
A nonpoint source is a land use that causes pollution.
Article 2 of the Uniform Commercial Code does not apply to the sale of services.
What is the difference between contributory negligence and comparative negligence?
Why have so many states adopted comparative negligence?
The English statute of frauds and the Code’s provision differ in language but have the
same basic legal effect: an oral contract for certain identified situations is void.
Dividends paid in stock of the corporation have virtually the same legal significance as
cash or property dividends.
The Wall Street Reform and Consumer Protection Act of 2010 requires that the amount
of any interchange transaction fee that an issuer may receive or charge with respect to
an electronic debit transaction, including those on debit cards issued by small banks and
prepaid reloadable cards, must be reasonable and proportional to the cost incurred by
the issuer, as determined by the Federal Reserve.
The Americans with Disabilities Act applies to all employers with ten or more
employees.
The signature of the maker of a note may be typewritten or by means of a signature
stamp so long as it represents an intention to authenticate the instrument.
Each party to a contract must intentionally exchange a legal benefit or incur a legal
detriment as an inducement to the other party to make a return exchange.
Under Article 2A a lessor may recover compensation for loss to his residual interest in
the goods caused by the lessee’s default.
Social Security programs are funded completely through employer taxes.
A person who falls asleep while driving would not be liable for any resulting injury
since it would be an unavoidable accident.
The more narrowly that a product market is defined as being, the more likely that the
firm will be found to possess monopoly power.
What interests of an injured party are protected by contract remedies?