The Employee Polygraph Protection Act of 1988 prohibits employers from doing all of
the following except
a. requiring or causing employees or job applicants to take lie-detector tests.
b. using, accepting, or referring to, or asking about the results of lie-detector tests taken
by employees or applicants.
c. taking or threatening negative employment-related action against employees or
applicants based on results of lie-detector tests.
d. using lie-detector tests to investigate losses due to theft.
Alf rents an apartment. The lease does not specify how long it will last, but it does
specify that Alf must pay rent every month. Alf’s tenancy is
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a tenancy at will.
d. not a tenancy.
Megan, an agent for a department store, orders one hundred dresses from Sal’s Clothing
Shop for the Spring Blossom Sale. There is no specific agreement in the sale contract
indicating when title will pass to the department store. The title will pass to the
department store when
a. Megan signs the contract.
b. Megan and the Sal’s Clothing Shop agent sign the contract.
c. Sal’s Clothing Shop physically delivers the dresses to the department store.
d. Megan pays Sal’s Clothing Shop for the dresses.
Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not
to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen
discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical
expenses for a latent injury.
Refer to Fact Pattern 10-4. In Carmen’s suit against Dex to recover her repair and
medical expenses, Carmen will most likely recover
a. half the amount to pay the costs over what Dex already paid Carmen.
b. nothing.
c. the estimated amount to pay those costs and any other liability.
d. the exact amount to pay those costs and no more.
David is the secured party in a secured transaction with James, who is the debtor. The
collateral is James’s collection of baseball cards. David is in possession of the baseball
cards. David leaves the cards on his kitchen table during a party and a guest spills beer
on them and ruins them. David is
a. liable for breach of duty of reasonable care of collateral.
b. not liable for anything.
c. liable for one-third of the value of the baseball cards.
d. liable for one-half of the value of the baseball cards.
Phyllis intentionally injures herself while performing her job for Stone Cutters, Inc.
Phyllis will
a. be entitled to full workers’ compensations benefits.
b. be entitled to half of the normal workers’ compensation benefits.
c. be entitled to 10 percent of the normal workers’ compensation benefits.
d. not be entitled to any workers’ compensation benefits.
Sandy, a resident of Illinois, wants to file suit against Carl, a resident of Kansas, over
Carl’s failure to pay Sandy for work on his house. The amount in dispute is $15,000.
Under diversity of citizenship
a. no court can exercise jurisdiction.
b. a state court cannot take jurisdiction because the amount in controversy is less than
$25,000.
c. a federal court cannot take jurisdiction because the amount in controversy is more
than $10,000.
d. a federal court cannot take jurisdiction because the amount in controversy is less than
$75,000.
The payment of Yves’s debt to Zac is guaranteed by Yves’s personal property. Their
agreement identifies Yves’s property by serial number. To establish Zac’s interest, this is
most likely
a. irrelevant.
b. not sufficient.
c. sufficient if it accurately describes the collateral.
d. sufficient unless it is too tedious to review.
Dora leases a house from Evan for a two-year term. To ensure the validity of their lease,
it should include
a. a description of the premises.
b. a due date for the payment of the property taxes.
c. a requirement that Dora perform structural repairs to the house.
d. a requirement that Evan carry liability insurance.
Fact Pattern 28-1
Lita replaces Manny in his job at Neighborly Business Corporation (NBC).
Refer to Fact Pattern 28-1. Manny believes that he has been discriminated against on
the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply
a. all parties must be forty years of age or younger.
b. Lita must be forty years of age or older.
c. Manny must be forty years of age or older.
d. NBC must have been in existence for at least forty years.
Vivian and Rob enter into a contract under which Vivian will clean Rob’s house every
week for a year. In order for e-signatures to be enforceable for this contract
a. Vivian and Rob must both agree to use e-signatures.
b. only Vivian needs to agree to use e-signatures.
c. only Rob needs to agree to use e-signatures.
d. Vivian and Rob must both register their e-signatures with the federal government.
Alan, the president of Bayside Investments, Inc., and Colin, Bayside’s accountant, are
charged with a crime, after the police search Bayside’s offices. Under the exclusionary
rule
a. certain Bayside records are excluded from subpoena.
b. certain parties to a criminal action may be excluded from a trial.
c. illegally obtained evidence must be excluded from a trial.
d. persons who have biases that would prevent them from fairly deciding the case may
be excluded from the jury.
Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of
Bolivia seizes the property for an illegal purpose without paying just compensation.
This is
a. confiscation.
b. defalcation.
c. dumping.
d. expropriation.
Generally, Sports Fitness Club Company and other corporations can pay dividends if
a. the corporation can continue to pay its debts as they come due.
b. the amount of the dividends exceed the corporation’s net worth.
c. the shareholders approve.
d. the corporation’s assets equal its total liabilities.
Janet defaults on her mortgage for her house. Real Deal Bank, as Janet’s lender, has
a. the right to foreclose on Janet’s house.
b. no right to foreclose on Janet’s house.
c. an obligation to help Janet find a way to make her payments.
d. the right to foreclose on Janet’s house only if Janet has not purchased mortgage
insurance.
Marco and Fred enter into a contract for the sale of Marco’s apartment for which Fred
agrees to pay him $100,000. Marco cannot prohibit Fred from transferring his right to
the ownership of the apartment because such a prohibition is
a. against public policy.
b. immoral.
c. unconscionable.
d. a crime.
Kayla wants to rent an apartment from QualityLiving, Inc. The QualityLiving agent
knows that many of the QualityLiving apartments have leaky roofs. When Kayla asks
the QualityLiving agent if roof of the apartment ever leaks, the agent assures her that
there have never been any leaks in any of the apartments. When Kayla moves in, she
discovers a large leak in the kitchen and water stains on all the ceilings. Kayla
a. can rescind the contract on the ground of unilateral mistake.
b. can rescind the contract on the ground of misrepresentation.
c. can rescind the contract on the ground of bilateral mistake.
d. was not defrauded.
KO Marketing Company, a U.S. firm, signs a contract with Librador Corporacion, a
Chilean firm, to give Librador the right to use Innovative’s animation techniques and
characters in product promotions. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
James buys a copy of the book The Black Stallion. Later, after reading the book, James
sells the book to his sister. James’s sale of the book is
a. legal.
b. legal only if the copyright has expired.
c. legal only if he sells it for less than he paid for it.
d. illegal.
Mariah takes off her ring and places it on her desk while she works. Without her
knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away.
Nita has likely committed
a. burglary.
b. forgery.
c. larceny.
d. no crime.
Guaranty Bank receives a check drawn on the account of Get-Rich Industries, Inc., one
of the bank’s customers, at 3 p.m. Friday. Garry, the presenter of the check, is not one of
the bank’s customers. The bank uses deferred posting with a 2 p.m. cutoff hour. If it
decides to dishonor the check, it must do so by midnight
a. Saturday.
b. Sunday.
c. Monday.
d. Tuesday.
In his will, Jason leaves $10,000 to each of his three children. However, after Jason dies
and all his debts are paid, there is only $9,000 left in his estate. Each child will receive
a. $10,000.
b. $3,000.
c. $1,000.
d. $500.
Trademarks are protected from use on noncompeting goods by the
a. Federal Trademark Dilution Act.
b. America Invents Act.
c. Anticybersquatting Consumer Protection Act.
d. Copyright Act.
Kelly tells Jimmy she will pay him $1,000 if he builds a shed in her backyard. Kelly is
a(n)
a. offeree.
b. offeror.
c. promisee.
d. contractor.
Subprime mortgages
a. have lower interest rates than standard mortgages.
b. have higher interest rates than standard mortgages.
c. have a higher risk for the borrower than standard mortgages.
d. are the same thing as home equity loans.
Jason wants to apply for the simplest mortgage loan. He should apply for a(n)
a. fixed-rate mortgage.
b. adjustable-rate mortgage.
c. interest-only mortgage.
d. balloon mortgage.
Silky Coordinates, a women’s clothing store, employs female attendants to assist
customers in the dressing rooms. Radley, a forty-one-year-old male, applies for an
attendant’s job, but is not hired. In Radley’s suit against Silky for employment
discrimination under Title VII, the store has
a. no defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. a seniority systems defense.
To finance the purchase of a house from Tuna, Uri signs an instrument promising to pay
to “Verity Mortgage Service” $160,000 with interest in installments with the final
payment due July 10, 2040. To be negotiable, this instrument must include the signature
of
a. a non-party witness.
b. Tuna or Tuna’s realtor.
c. Uri.
d. Verity’s chief financial officer.
Smith & Jones Associates is a business customer of Superior Bank. Under federal law,
Smith & Jones cannot demand
a. any proof of payment except Superior’s good faith.
b. monthly statements.
c. recrediting of its account on payment of a forged item.
d. the return of its original checks with its monthly statements.
James obtains a mortgage loan from Willis Bank. If Willis Bank fails to record the
mortgage
a. it could find itself in the position of an unsecured creditor.
b. nothing bad will happen.
c. James will not have to make payments.
d. it could be fined for violating lending regulations.
Orin claims that a Pennsylvania state statute infringes on his ‘substantive due process”
rights. This claim focuses on
a. procedures used to make decisions to take life, liberty, or property.
b. the content of the statute.
c. the similarity of the treatment of similarly situated individuals.
d. the steps to be taken to protect Orin’s privacy.
Thinking about killing someone constitutes the crime of attempted murder.
Whether financial statements created by an accountant need to be verified for accuracy
is not a legal question.
A gift is effective whether or not it is accepted.
In sales law, product liability is assurance by one party of the existence of a fact on
which the other party can rely.
Only real property can be insured.
A periodic tenancy is created by a lease that does not specify how long it is to last, but
does specify that rent is to be paid at certain intervals.
Equity is a branch of law, founded in justice and fair dealing, that seeks to supply a
fairer and more adequate remedy than money damages.
If a seller is not a merchant, and the goods are not to be moved, the risk of loss passes
to a buyer on tender of delivery.
Express warranties can be limited in contracts.
A patent applicant must demonstrate that an invention, discovery, or design is novel,
useful and not obvious in light of current technology to receive a patent.
According to utilitarianism, an action that affects the majority adversely is morally
wrong.
A promissory note can be a negotiable instrument.
A life tenant is NOT required to pay property taxes.
A closed shop is a firm that rejects union membership as a condition of employment.
Forbearance is an agreement between the lender and the borrower to postpone, for a
limited time, of part or all of the payments on a loan in jeopardy of foreclosure.
All mistakes of fact are material.
Airline passengers are subjects of a bailment.
On a motion for judgment on the pleadings, a court may consider evidence outside the
pleadings.