Acceptance of goods occurs if the seller sends non-conforming goods and the buyer
accepts them.
Under the Lilly Ledbetter Fair Pay Act of 2009, if the EEOC chooses not to bring suit
against the employer on the complainant’s behalf, it will issue a “right to sue” letter to
the complainant.
An “easement by grant” automatically occurs when land-locked property is sold.
Article II, Section 2, Clause 2 of the United States Constitution is also known as the
Supremacy Clause.
A false statement that appears in writing or other “fixed medium” is slander.
The objective theory of contracts stresses the outward manifestation of assent made by
the parties.
A contract to purchase a $399 television must be in writing in order to be enforceable.
Under the Uniform Computer Information Transactions Act, a court will order specific
performance by the licensor in favor of the licensee, but the contract must provide that
specific performance is available as a remedy.
The Employee Retirement Income Security Act mandates which employers must
provide pension plans for its employees.
A person is walking on a public sidewalk. When he finishes smoking a cigarette, which
is still lit, he negligently tosses it, and it lands close to a house. The cigarette causes a
fire that burns down the house. In this instance, the smoker is not the proximate cause
of the damage.
If a review of the pleadings shows that there is no factual dispute between the parties,
the trial may be concluded with the filing of a motion for a judgment on the pleadings.
Royalty fees for the continued use of the franchisor’s trade name, property, and
assistance are usually paid on an annual basis.
In order to register for a domain name, the U.S. Patent and Trademark Office must issue
an authorization that the name is available and is not confusingly similar to existing
names.
In terms of the “good faith” requirement for becoming a holder in due course, “honesty
in fact” is an objective test.
In terms of fiduciary duty, a non-manager member of a manager-managed limited
liability company is treated equally to a shareholder in a corporation.
A qualified promise is another name for a covenant.
The non-recordation of a mortgage or deed of trust affects the legality of the instrument
between the mortgagor and the mortgagee.
Owners of limited liability companies are said to have “quasi-limited” liability.
Provisional applications can be filed three months prior to the actual patent application
giving the inventor pre-application protection.
Under the inferred intent doctrine, the law transfers the perpetrator’s intent from the
target to the actual victim of the act.
A member’s distributional interest in a limited liability company is personal property
and may be transferred in whole or in part.
Expiration of the applicable statute of limitations period is an affirmative defense.
In order to be enforceable, contracts to pay debts barred by the statute of limitations
must be in writing.
In a bailment, the title to the goods stays with the bailor.
The Historical School of jurisprudence believes that the law should not change and that
what has historically been the law should remain the law.
The seller’s or lessor’s basic obligation is the tender of delivery, or the transfer and
delivery of goods to the buyer or lessee in accordance with a sales or lease contract.
Prior to the Sarbanes-Oxley Act, companies with established codes of ethics often did
not include senior financial officers under the code.
A check is an order to pay.
Upon cancellation of a license, the licensee has the right to retain licensed information.
The essence of the fixed amount requirement is that a holder of an instrument can
calculate the payment required from the face of the instrument.
According to White’s Law Dictionary, “Law, in its generic sense, is a body of rules of
action or conduct prescribed by controlling authority, and having binding legal force.
That which must be obeyed and followed by citizens subject to sanctions or legal
consequences is a law.”
If an agency is terminated by agreement between the parties, the principal is not legally
required to give any third party notice of the termination.
One reason for criticizing Rawl’s theory of social justice is that the blind “original
position” for choosing moral principles is impossible in the real world.
Minors are liable for the contract price of any necessaries of life for which they
contract.
In a product liability case based on negligence, all parties in the product’s chain of
distribution are liable for the injury, even if only one party was negligent.
If the buyer exercises the right to inspect goods, even if the goods are rejected for
nonconformance, the buyer is responsible for the costs of inspection and cannot recover
the costs from the seller.
All justices on the U.S. Supreme Court, including the chief justice, have an equal vote.
The Small Corporate Offering Registration Form is a “question-and-answer” disclosure
form that small businesses can complete and file with the Securities and Exchange
Commission, if they plan to generate $2 million or less from the public issue of
securities.
Principal has entered into a six-month contract during which Agent will sell Principal’s
products on a commission basis. Although Agent is complying with all terms of the
agreement, during the third month Principal tells Agent she is no longer is authorized to
sell his products, and will receive no further commissions if she does. Which of the
following is true?
A) Agent continues to have a duty to sell, because the six-month period has not yet
expired.
B) Principal has the power, but not the right, to terminate the agency.
C) Principal has the right, but not the power, to terminate the agency.
D) Principal has both the right and the power to terminate the agency.
E) Principal has neither the right nor the power to terminate the agency.
Mike and Ike agreed orally that Mike would tutor Ike in geology for $10 per hour for
three hours. After Mike has done the three hours of tutoring, but before Ike pays him
next week, this contract is:
A) executed.
B) implied-in-fact.
C) executory.
D) performed.
E) quasi-executed.
Offerors can revoke offers by:
A) an express statement that the offer is revoked.
B) an act that is inconsistent with the offer remaining open.
C) either an express statement that the offer is revoked or an act that is inconsistent with
the offer remaining open.
D) an express statement that the offer is revoked, but this must be followed by an act
that is inconsistent with the offer remaining open.
E) Offers cannot be revoked.
Which of the following are protected classes under Title VII of the Civil Rights Act of
1964?
A) race, national origin and sex
B) race, national origin and political affiliation
C) race, religion and sexual orientation
D) national origin, race and sexual orientation
E) religion, color and prior welfare eligibility
When there has been a breach of warranty, the buyer or lessee may sue the seller or
lessor to recover ________ damages.
A) punitive
B) liquidated
C) compensatory
D) illusory
E) confiscatory
The buyer and seller enter into a sales contract for the sale of t-shirts. The contract
provides that the 500 t-shirts will be an assortment of sizes and colors. The contract
does not specify exactly what that assortment will be. The seller sends the buyer an
assortment of various colors and sizes. Does the seller have the right to choose the
assortment?
A) No, since the contract did not specify the assortment, the buyer has the right to make
the selection of the assortment.
B) No, since the contract did not specify the assortment, the seller must fulfill the order
under the accommodation shipment rule.
C) Yes, since the contract did not specify the assortment, the seller can choose what to
send to the buyer.
D) Yes, but only if the seller makes their selection in good faith and within limits set by
commercial reasonableness.
E) Yes, the seller must choose the same assortment it chooses for its other customers
with similar orders.
Which of the following is correct about national ambient air quality standards?
A) All of these standards are set based on protecting human beings.
B) The primary standards are set to protect animal life, and the secondary standards are
set to protect plant life.
C) The Environmental Protection Agency sets primary standards, and the states set
secondary standards.
D) The primary standards are set to protect human beings, and the secondary standards
are set to protect vegetation, matter, climate, visibility, and economic values.
E) The primary standards were set by Congress and the secondary standards are set be
the Environmental Protection Agency.
In which of the following scenarios would a consolidation be appropriate?
A) Alan, a serial drunk driver, has three accidents in a five day period with three
different victims
B) a bus crashes and 21 passengers are injured
C) students from three different departments in a college sue three different professors
for sexual harassment
D) two plaintiffs claim economic harm and personal injury resulting from their use of
two (2.) similar products produced by competing companies
E) defendant airline is sued for two (2.) plane crashes occurring within the same year
States retain the power to regulate intrastate business activity and much interstate
business activity that occurs within their borders. This is commonly referred to as states’
________ power.
A) commerce
B) supremacy
C) autonomous
D) police
E) delegated
The United Nations General Assembly is composed of ________ UN member nations.
A) five (5)
B) ten (10)
C) fifteen (15)
D) twenty-five (25)
E) all
Adam was a factory sales agent for the Wave Warrior, a line of personal watercraft. His
territory was the Atlantic coast of Florida, and he sold to retail dealers. One Friday
morning Adam made one sales call, but at 10:00 a.m., he headed to Tampa for the
weekend. His boss was unaware of his early departure. Adam took the most powerful
Wave Warrior with him. Even though he was outside his territory, he put the craft in the
water and gave numerous sales demonstrations on Friday afternoon near Tampa. He
made two sales, and arranged for delivery to be made through a Miami dealer, one of
his favorites in his territory. Adam was not supposed to make sales in this manner, but
he realized it was unlikely that his employer would find out. After his second sale, he
took the buyer on a ride to show some of the craft’s capabilities, and struck a swimmer
near the beach, injuring the swimmer. Discuss the liability of Adam and his employer
for the injuries.
Under the Economic Espionage Act (EEA), the criminal prison term for individuals and
the criminal fine for organizations can be increased if the theft of a trade secret was
made to benefit a foreign government.
The ________ theory of contracts holds that the intent to enter into an express or
implied-in-fact contract is judged by the ________ person standard.
A) objective; reasonable
B) subjective; reasonable
C) objective; professional
D) subjective; professional
E) objective; subjective
Franchises can be used for which types of businesses?
A) services
B) goods
C) goods and/or services
D) goods and services, but only for services if the services are connected with a
particular good
E) services and goods, but only for goods if a ‘secret formula” is connected with a
particular good
According to ________, there are no universal ethical rules to guide a person’s conduct.
A) ethical relativism
B) ethical absolutism
C) ethical fundamentalism
D) Kantian ethics
E) Rawl’s social justice theory
Which of the following are in the proper order from first to last filed?
A) complaint; reply; cross-complaint; answer
B) answer; complaint; reply; cross-complaint
C) complaint; cross-complaint; reply; answer
D) complaint; answer; cross-complaint; reply
E) reply; cross-complaint; answer; complaint
A corporation’s ________ powers are found in the United States Constitution, state
constitutions, federal statutes, state statutes, articles of incorporation, bylaws, and
resolutions of the board of directors.
A) conditional
B) equitable
C) implied
D) express
E) defined
Under what circumstances can management recover from the corporation the costs it
incurs in a proxy contest?
A) under all circumstances
B) in all proxy contests management wins
C) in a proxy contest involving an issue of policy, even if management does not win the
proxy contest
D) in all proxy contests involving issues of policy, and in the case of contests
concerning personal matters, if management wins
E) in all proxy contests involving issues of policy that management wins, but never for
contests involving personal issues
A professional corporation is one that:
A) is formed with the assistance of a lawyer.
B) has been in existence long enough to reasonably assure that it will be profitable in
the near future.
C) is typically used as a form of doing business by professionals such as lawyers,
accountants, physicians, and dentists.
D) does not have shareholders.
E) is publicly traded, as required by law.
Under which of the following shipping terms the shipper bear the risk of loss during
transport, but is not under a duty to deliver replacement goods?
A) No-arrival, no-sale
B) Ex-ship
C) F.O.B. point of shipment
D) F.O.B. place of destination
E) F.A.S.
Under Article 2 of the UCC, if a purported acceptance to an offer contains additional
terms:
A) it is treated as a rejection and counteroffer.
B) if both parties are merchants, this would be a counteroffer, if at least one part is a
nonmerchant, it is considered a proposed addition.
C) if neither party is a merchant, there is no contract.
D) it is treated as a counteroffer, but it does not reject the original offer.
E) it is treated as a rejection but not a counteroffer.
Bob operates a machine for his employer, Mighty Horse. Bob is inattentive one day, and
sprains his thumb as a result. Bob has to go to the doctor and is unable to work for two
days. Assuming he appropriately files a claim for workers’ compensation and that the
employer carries workers’ compensation insurance, which of the following is true?
A) Bob cannot receive workers’ compensation, because he only had a strain and did not
actually receive a permanent injury.
B) Bob cannot receive workers’ compensation, because he negligently caused his own
injury.
C) Bob can receive some workers’ compensation, but his recovery will be reduced
based on the comparative negligence doctrine.
D) Bob can receive workers’ compensation, and he can also sue his employer for
damages in civil court.
E) Bob can receive workers’ compensation, but he cannot sue his employer for damages
in civil court.
Where two parties contract for the purchase and sale of an ordinary item, such as a
desk, that unknown to both parties is a rare and valuable example of that item, this is a:
A) unilateral mistake.
B) mutual mistake of law.
C) mistake of value, but not a mistake of fact.
D) case of fraud by concealment.
E) case of implied-in-fact mistake.
In order to be enforceable, a covenant not to compete must be reasonable in each of the
following aspects except:
A) the length of time the restriction is in effect.
B) the scope of the restriction.
C) the amount paid to the one who gives up the right to compete.
D) the geographic area of the restriction.
E) Covenants not to compete are generally unenforceable, since they are prima facie
unreasonable.
The tort of assault and the tort of battery:
A) are two names for the same tort.
B) are strict liability torts.
C) can occur independently or together.
D) can only occur together.
E) cannot both occur in the same incident.
Which of the following is not required in order for someone to be a holder in due
course of a negotiable instrument?
A) take the instrument directly from the maker or drawer
B) take the instrument in good faith
C) take the instrument without notice of any defenses
D) take the instrument for value
E) take the instrument without apparent evidence of forgery, alterations, or irregularity
Where there is no agreement to share profits in a partnership, but one partner invests
twice as much capital in the partnership as the other over the course of the year, how are
the profits to be distributed?
A) in the ratio of time devoted to the partnership
B) in the ratio of capital invested in the partnership
C) The profits must remain in the partnership, and are not to be distributed.
D) equally
E) in accordance with which partner earned them
Which of the following is true about the situation where a party conveys a life estate,
but does not convey any other interest?
A) Upon the death of the holder of the life estate, the property will go to the heirs of the
holder of the life estate.
B) The grantor has created a remainder, even though the identity of the holder of the
remainder is not yet known.
C) The grantor holds a fee simple defeasible.
D) Upon the death of the holder of the life estate, the property reverts to the grantor, the
grantor’s estate, or other designated person.
E) The conveyance is invalid because it is incomplete.
A(n) ________ statement is a document that an issuer of securities files with the
Securities and Exchange Commission that contains required information about the
issuer, the securities to be issued, and other relevant information.
A) origination
B) declaration
C) registration
D) certification
E) proclamation
Which of the following is needed to impose a quasi-contract?
A) a benefit having been conferred and injustice if the benefit were not paid for
B) actions implying a contract and an agreement as to the price
C) a promise asking for action and the requested action having been completed
D) a benefit having been conferred and objective intent that it be conferred
E) a written document signed by the parties
Which kind(s) of liability can be imposed only if a party has signed an instrument?
A) warranty liability only
B) contract liability only
C) both contract liability and warranty liability
D) neither contract liability nor warranty liability
E) excess liability