The definition of price-fixing includes agreements that may, among other things:
a. depress prices.
b. stabilize prices.
c. raise prices.
d. All of these.
A type of insurance in which the insured and the insurer share a risk of loss due to fire
is:
a. co-insurance.
b. non-forfeiture insurance.
c. no-fault insurance.
d. reinsurance.
A person may misappropriate a trade secret by unintentionally discovering it.
a. True
b. False
A duty may not be delegated if there is an express provision in a contract against
delegation.
a. True
b. False
Bargains are illegal if they violate a crime or tort but not if they are merely against
public policy.
a. True
b. False
An indorsement in trust creates a trust for the benefit of the indorser or others.
a. True
b. False
If a landlord furnishes heat in the summer in order to force his tenant to move and the
tenant does in fact move, a court of law will probably decide that:
a. waste has occurred.
b. there has been an unreasonable abandonment of the premises.
c. a constructive eviction has taken place.
d. vacating of the premises constituted an assignment.
Which of the following are the most usual covenants to convey title of realty?
a. Covenant of title.
b. Covenant against encumbrances.
c. Quiet enjoyment.
d. All of these.
Which of the following statements is true regarding administrative law judges?
a. ALJs are appointed by the president with the approval of the Senate.
b. ALJs may be removed only for good cause.
c. There are more than twice as many federal judges as there are administrative law
judges.
d. Administrative law judges preside over jury cases within the area of expertise of the
agency.
Only documentary evidence may be admitted at an administrative hearing.
a. True
b. False
The Equal Pay Act has been interpreted by the courts to require equal pay for men and
women based upon the concept of ‘substantially equal” rather than identical work.
a. True
b. False
The Fair Credit Reporting Act has to do with:
a. bills that are incorrectly added.
b. credit checks done by potential lenders.
c. reports made by credit agencies.
d. All of these.
e. reports made by credit agencies and alsocredit checks done by potential lenders.
The President of the United States has the authority to issue laws, which are called:
a. Restatements of law.
b. executive orders.
c. Constitutional amendments.
d. codes.
The __________ gives shareholders who elect such a right in the articles of
incorporation the power to dissolve the corporation.
a. appraisal remedy
b. U.C.C.
c. Statutory Close Corporation Supplement
d. None of these.
Shares without par value may be issued for any amount set by the board or the
shareholders.
a. True
b. False
Which of the following is not a remedy of the buyer?
a. The buyer has the right of cover and to receive damages.
b. The buyer has the right to stop delivery of the goods.
c. The buyer may have the right to obtain specific performance.
d. The buyer may have the right to recover incidental and consequential damages.
Mark gives a bearer note for $50 to Joe in exchange for an excellent dinner at Joe’s
restaurant. Joe delivers the note to Sue for $50 and Sue takes it to Mark to be paid. If
Mark says the note was originally written for only $5, what can Sue do?
a. Hold Joe liable for breach of warranty.
b. Get $50 from Mark.
c. Hold Joe liable for breach of contract.
d. Any of these.
A warranty of title may be included only by specific language or by certain
circumstances.
a. True
b. False
An automatic stay ends:
a. upon termination or dismissal of the bankruptcy case.
b. upon the debtor’s receipt of a discharge.
c. only by court order.
d. Both (a) and (b).
Comment (m) to Section 402A provides that the basis of strict liability rests solely in
tort and, therefore, is not subject to contractual defenses.
a. True
b. False
An agent acts for a(n) __________ principal when the agent appears to be acting on her
own behalf and the third person with whom she is dealing has no knowledge that she is
an agent.
a. unidentified
b. undisclosed
c. unauthorized
d. disclosed
On the sellers breach, if the buyer makes substitute purchases in good faith and without
unreasonable delay, she may recover, as damages, the difference between the cost of
cover and the contract price, plus incidental damages but minus any expenses she saved
because of the seller’s breach.
a. True
b. False
Substituted contracts immediately discharge the original contracts.
a. True
b. False
What term refers to the entire set of activities in which an administrative agency
engages?
a. Rulemaking.
b. The administrative process.
c. Promulgating.
d. Enforcement.
Marie is the bookkeeper for the Buildco Construction Company. She makes out the
payroll; prepares all of the payroll checks and reconciles the bank statements for the
firm. She decides to increase her income by padding the payroll; accordingly, she
makes out a check in the name of someone who does not exist. She then indorses the
check with the payees name and her name and cashes the check herself at First Bank
where the company has its account. Under the fictitious payee rule, Buildco and not the
bank will be liable for this check.
a. True
b. False
Even if a party has the power to avoid a contract for lack of capacity, duress, or undue
influence, the party will lose that power by affirming the contract.
a. True
b. False
Breach of the implied warranty of habitability allows a tenant to withhold rent
according to most courts.
a. True
b. False
The 1934 Act rules governing proxy solicitations would require a proxy statement
describing the material facts relating to items to be voted upon.
a. True
b. False
The courts are likely to provide remedies in all but which of the following cases?
a. A person refuses to return your friend’s book.
b. A stranger refuses to help rescue a drowning child.
c. A person pushes a stranger into the lake.
d. A driver maneuvers recklessly on a busy street.
A buyer is obliged to accept conforming goods and to pay for them according to the
contract terms.
a. True
b. False
Under E-Sign, an electronic agent:
a. is a computer program or other automated means used independently to initiate an
action or respond to electronic records or performances.
b. is an individual who uses electronic means to initiate an action or respond to
electronic records or performance.
c. is an electronic sound, symbol, or process attached to or logically associated with a
contract or other record.
d. may not form a contract without an individuals reviewing the terms.
What happens if the police illegally seize evidence in violation of the Fourth
Amendment?
a. The evidence will be excluded from use at trial.
b. The defendant’s arrest is nullified.
c. The defendant is entitled to another trial.
d. The defendant will be paid for the expenses of his defense.
Jane, Kelly, and Lois are partners in an accounting firm in a state that has adopted the
RUPA. Jane intends to retire and withdraw from the partnership at the end of the year.
Jane is liable to the firms creditors:
a. for a partnership obligation incurred within two years after dissociation if the
partnership did not dissolve and if at the time of entering into the transaction the other
party reasonably believed Jane was then a partner.
b. only for all debts incurred prior to her retirement.
c. until the day of her retirement when she will be absolved of all liability.
d. for an amount not to exceed her partnership interest on the day of her retirement.
e. for an amount not to exceed her initial capital contribution to the partnership.
Analyze whether telling a lie is unethical in terms of each of the following ethical
theories:
a. The deontological approach.
b. Utilitarianism.
c. Intuitionism and the “Television Test.”
d. Ethical relativism.
e. Ethical fundamentalism.
The transfer of real estate requires consideration to be valid.
a. True
b. False