Which of the following legal provisions treats a corporation as a person?
A. Corporation law
B. The law of contract
C. The Constitution of the United States
D. The law of torts
To give notice of a dissociation that is effective against everyone, the ULPA permits the
filing of a Notice of Dissociation which is effective:
A. 120 days after filing.
B. 90 days after dissociation.
C. 90 days after filing.
D. 120 days after dissociation.
The obligation of an acceptor is:
A. to make an unconditional promise to pay a fixed amount of money and is responsible
for making good on that promise.
B. to pay the check according to its terms at the time he issued it.
C. to pay the draft according to the terms at the time of its acceptance.
D. to pay the amount due on the instrument according to its terms at the time he
indorsed it.
Generally, a landlord may evict a tenant by:
A. moving the tenant out himself and suing to recover unpaid rent.
B. moving the tenant out himself and changing the lock.
C. finding a new the tenant to occupy the place.
D. filing a lawsuit against the tenant.
Ted Nix purchased two acres of land from Sally Pine. Nix paid 15 percent at the closing
and gave his note for the balance secured by a 30-year mortgage. Five years later, Nix
found it increasingly difficult to make payments on the note and finally defaulted. Pine
threatened to accelerate the loan and foreclose if Nix continued in default. Pine told Nix
either to get the money or obtain an acceptable third party to assume the obligation. Nix
offered the land to Quick Co. for $4,000 less than the equity Nix had in the property.
This was acceptable to Pine and at the closing, Quick paid the arrearage, executed a
new mortgage and note, and had title transferred to its name. Pine surrendered Nix’s
note and mortgage to him. The transaction in question is a(n):
A. third-party beneficiary contract.
B. novation.
C. purchase of land subject to a mortgage.
D. assignment and delegation.
A(n) _____ is a serious crime such as murder, sexual assault, arson, drug-dealing, or a
theft or fraud offense of sufficient magnitude.
A. misdemeanor
B. felony
C. tort
D. infraction
Hans purchased an auto insurance policy from ABC Insurance (ABC) which had a
liability provision. Hans was involved in a collision with Beth, caused by negligence of
both Beth and Hans. Both were injured. Who would be entitled to collect money under
the liability provision of Hans’ policy?
A. Beth only
B. Hans only
C. Both Beth and Hans
D. Neither Beth nor Hans
A(n) “_____” is a person who is liable for the payment of another person’s debt or for
the performance of another person’s duty.
A. beneficiary
B. trustee
C. surety
D. executor
All of the following constitute transfer warranties under Article 3 except:
A. that all signatures on the instrument are authentic or authorized.
B. that the instrument has not been altered.
C. that the instrument is not subject to any defense or claim in recoupment.
D. that the instrument is negotiable.
Which of the following is true regarding the requirements of ratification?
A. An agent’s illegal contract cannot be made binding by the principal’s subsequent
ratification.
B. An agent should disclose the principal’s identity when entering into a contract with a
third party.
C. A principal without legal capacity can ratify the unauthorized acts of the agent.
D. An agent’s beneficial acts can be ratified by the principal while the detrimental ones
can be rejected.
Bruce told Adam that he was selling his house in Syracuse, New York. Adam sent
Bruce an e-mail containing an offer of $300,000 for the house. Bruce responded via
e-mail that he wanted $315,000 for the house. After further e-mails, the parties finally
agreed on a sale with a price of $310,000. A series of e-mails contained the terms of the
sale, and all included a salutation containing their typewritten names. However, Bruce
later decided to sell the house to Marty for $325,000. Adam sued Bruce, claiming that
Bruce breached their contract for the sale of the house. Most likely, Adam will:
A. lose, because the contract does not meet the statute of frauds.
B. lose under the parol evidence rule.
C. win, because the essential terms of the contract were set forth in the signed e-mails.
D. win, because of the partial performance exception to the statute of frauds.
The main difference between concealment and nondisclosure is that:
A. concealment is always regarded as an assertion of fact, while nondisclosure may or
may not amount to such an assertion.
B. a tort suit is possible in a concealment case, but not in a nondisclosure case.
C. punitive damages are available in a nondisclosure case, but not a concealment case.
D. nondisclosure is always regarded as an assertion of fact, while concealment may or
may not be an assertion of fact.
With respect to property insurance, the insurable interest requirement:
A. need only be satisfied at the time the policy is issued.
B. must be satisfied both at the time the policy is issued and at the time of the loss.
C. will be satisfied only if the insured owns the property in fee simple absolute.
D. will be satisfied by an insured who possesses a leasehold interest in the property.
Which legal form of business has the ability to attract the greatest amount of capital
from investors?
A. A limited liability company
B. A partnership
C. A corporation
D. A sole proprietorship
Under the Expedited Funds Availability Act, customers can draw upon checks deposited
in their checking account within:
A. the second business day following deposit, if the drawee bank is in the same Federal
Reserve check-processing region as the depositary bank.
B. one week following deposit, if the drawee bank is in a different Federal Reserve
check-processing region than the depositary bank.
C. three days after the deposit, in the case of checks drawn on the U.S. Treasury.
D. five days of deposit in the case of cashier’s checks.
In order for a party to successfully bring a lawsuit in federal court challenging a federal
administrative agency decision, that party must first:
A. sue in state court, and only then in federal court.
B. exhaust all necessary administrative remedies.
C. obtain a writ of certiorari.
D. submit the challenge to the Inspector General’s office for review.
The _____ are the documents that the parties file with the court when they first state
their respective claims and defenses.
A. summons
B. pleadings
C. appeals
D. clauses
_____ refers to a two-party relationship in which one party is authorized to act on
behalf of, and under the control of, the other party.
A. Bailment
B. Agency
C. Estoppel
D. Abatement
Regarding the formation of a general partnership, which of the following is not a legal
requirement but has been described as “highly desirable”?
A. A formal, written partnership agreement
B. An oral agreement
C. An exchange of mutual consideration
D. An agreement limiting the liability of the partners
Which of the following is an implied authority of a partner winding up the business of
an accounting partnership?
A. Entering into new contracts made after the dissolution
B. Disposing of the partnership’s excess supplies
C. Making a contract to audit the financial records of a new client
D. Borrowing money in the name of the partnership
What type of agreement is required in nearly all security interest transactions?
A. An authenticated security agreement
B. An international depositor’s agreement
C. Foreign Assignment agreement
D. Title conveyance agreement
Which of the following helps to prevent offerors from revoking their offers prior to
acceptance when the offeree relies on it being kept open?
A. Option
B. Promissory estoppel
C. Unilateral contracts
D. Firm offer
The person who is designated to vote on behalf of the shareholder is called a(n):
A. sharebroker.
B. agent.
C. voter.
D. proxy.
Which of the following must exist in order for a person to possess apparent authority?
A. The principal’s payment of consideration to the agent
B. The agent’s consent to the agency relationship
C. A third party’s belief that agency exists
D. The principal’s written authorization to the agent
What is the document that is filed with the secretary of state to form an LLC?
A. Articles of Incorporation
B. Certificate of Organization
C. Operating Agreement
D. Bylaws
Which of the following is correct concerning the Foreign Corrupt Practices Act
(FCPA)?
A. Under the FCPA, a company may be fined up to $5 million.
B. Under the FCPA, directors participating in violations are liable for prison terms up to
10 years.
C. The FCPA bribery provisions apply only to American firms with equity securities
registered under the 1934 Act.
D. Facilitating or grease payments are not prohibited by the FCPA.
Which is the only state to have adopted the Uniform Commercial Code (UCC) only
partially?
A. Arizona
B. Connecticut
C. Louisiana
D. Wisconsin
Which of the following is slander rather than libel?
A. A defamatory statue
B. An oral defamatory statement
C. A defamatory magazine article
D. A defamatory TV broadcast
What is the best possible solution for a bailee if there is a third-party, who claims to
have superior rights to those of the bailor for possession of the bailed property?
A. He should give the bailed property to the third person.
B. He should give the bailed property to the bailor.
C. He should bring the third-party claimant into a lawsuit along with the bailor.
D. In such a case, the bailee will always get possession of the bailed property.
Which of the following covers the rules of contract, and property?
A. Procedural law
B. Private law
C. Criminal law
D. Ordinances
If a buyer rejects tender of the goods, title to those goods:
A. will automatically be revested in the seller.
B. will stay with him until he makes the payment.
C. will remain undecided until the parties reach an agreement.
D. belongs to neither of the parties.
What is the main purpose of the taxing power?
A. To enact healthcare reform law.
B. To regulate grants to the states.
C. To regulate interstate commerce.
D. To raise revenue for the federal government.
Bing engaged Dill to perform personal services for $2,200 a month for a period of four
months. The contract was entered into orally on July 1, 1984, and performance was to
commence September 1, 1984. On August 10, Dill anticipatorily repudiated the
contract. As a result, Bing:
A. may not assign his rights to damages under the contract to a third party.
B. can obtain specific performance.
C. may not enforce the contract against Dill since the contract is oral.
D. can immediately sue for a breach of contract.