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Future interests in land
a. are presently existing nonpossessory rights that may or may not develop later.
b. are possessory interests because they permit the holder to take possession at some
point.
c. must create a right to, not merely the possibility of, possession at some time in the
future or they would be merely illusory.
d. cannot be bought and sold.
Concurrent conditions arise when there is both a condition precedent and a condition
subsequent.
a. True
b. False
Which of the following traits is NOT currently protected under Title VII?
a. National origin
b. Sexual orientation (homosexual vs. heterosexual)
c. Gender (male vs. female)
d. Family responsibility (mothers vs. fathers)
What type of collusion does the Supreme Court refer to as "the supreme evil of
antitrust"?
a. Price fixing
b. Reciprocal dealing
c. Price discrimination
d. Vertical mergers
A(n) _______ contract is illegal from the beginning and may not be enforced by either
party; a(n) _______ contract is legal but permits one party to escape, if he or she so
wishes.
a. disaffirmed; affirmed
b. void; voidable
c. affirmed; disaffirmed
d. voidable; void
In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit
against him on a breach of contract action. Y-K agreed and accepted a $5,000 check
from Alex. Which of the following statements is correct?
a. Y-K's promise to refrain from suing Alex was not supported by legal consideration.
b. Y-K's promise to refrain from suing Alex was supported by legal consideration and is
enforceable.
c. This is an accord and satisfaction, and Y-K cannot sue.
d. The courts would apply promissory estoppel in this situation.
The principle of net neutrality asserts that all information contained on the Internet
should be regulated equally among each of the fifty states.
a. True
b. False
Which of the following played a role in the creation of the U.S. government by solving
the problem of federalism?
a. The Visigoths
b. The Iroquois Native Americans
c. Confucius
d. Alexis de Tocqueville
The primary purpose of RICO was
a. to be a tool against organized crime.
b. to raise revenue.
c. to prosecute non-citizens.
d. to prosecute those engaged in tax fraud.
When courts consider economic duress, they consider all the following factors
EXCEPT
a. relative bargaining power.
b. financial distress.
c. legitimate business purpose.
d. relative size of the contract.
In a Chapter 13 bankruptcy, creditors cannot force a debtor into bankruptcy; nor can
they vote to confirm or reject a plan of reorganization.
a. True
b. False
If the subject of the contract includes issues that may be controversial or "touchy," it is
best to
a. keep lawyers out of the negotiation, so relationships are not strained.
b. deal with them up front before the relationship becomes strained.
c. deal with them one at a time, as the problems arise.
d. state your position up front and stand firm when the other party objects.
Statutes of limitations
a. define how much money the injured party can sue for under a breach of contract
claim.
b. define whether there has been substantial performance of a contract or a material
breach.
c. limit the time in which an injured party may sue.
d. only apply to the sale of goods. There is no statute of limitations on a service
contract.
In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of
Regents and found a duty of care to avoid furnishing alcohol to underage consumers. If
in 2008 a Flagstaff, Arizona plaintiff brings a lawsuit against an Arizona universitys
fraternity for providing alcohol to members under the legal drinking age, the
Hernandez v. Arizona Board of Regents case will serve as precedent.
a. True
b. False
One of the factors leading courts away from a laissez-faire approach to contract law
was
a. the movement away from requiring written contracts with a seal affixed.
b. a change in relative bargaining power between parties to contracts.
c. the assumption that promises are not legally significant.
d. the assumption that parties had freedom to contract and would have to live with the
consequences.
Which of the following types of concurrent ownership does not provide for rights of
survivorship?
a. Joint tenancy.
b. Tenancy in common.
c. Tenancy by the entirety.
d. All of these provide for rights of survivorship.
Chapters 11 and 13 are liquidation chapters.
a. True
b. False
Notren, Inc., a U.S. company, and SWT, a Singapore company, entered into a contract
under which SWT is to ship party supplies to Notren. One of the terms of the contract
states, "Any disputes that arise under this contract will be resolved in the courts of
Singapore." This contract term is a
a. letter of credit.
b. choice of language clause.
c. choice of forum clause.
d. draft clause.
Cincy, Inc. is building a $20 million dollar addition onto its distribution facility. To
build the facility, Cincy must fill in two acres of wetlands. Under the Clean Water Act,
Cincy must obtain a permit before filling in the wetlands.
a. True
b. False
What type of transaction employs special committees made up of disinterested board
members who review the transaction to determine if it is entirely fair to the
corporation?
a. Hostile takeover
b. Self-dealing
c. Rational business purpose
d. Corporate opportunity
Companies with substantial assets must notify the FTC before consummating a merger.
a. True
b. False
A letter of intent summarizes progress made during business negotiations, but more
importantly, it creates a binding contract.
a. True
b. False
A contract between a company in the U.S. and one in China, contained a clause that
stated: "If an event happens which is extraordinary and out of the control of the parties
such as a strike, act of God, fire, accident, or transportation difficulties, then the
affected party shall be relieved of its obligations under the contract." This type of clause
is
a. an objective impossibility clause.
b. a force majeure clause.
c. a concurrent condition clause.
d. a condition precedent clause.
Angie, a minor, wants to avoid a contract she made with Cumberland Cycles. Which is
a valid way for Angie to disaffirm the contract?
a. by notifying Cumberland orally that she will not honor the agreement
b. by filing a lawsuit to have a court formally cancel the contract
c. by just refusing to perform her obligations under the contract
d. All of the answers are correct.
Taking or using someone's personal property without consent is referred to as
a. fraud.
b. negligence.
c. conversion.
d. trespassing.
Pizazz, Inc. sold a condo on the 34th floor in a building in downtown Chicago. This
contract is governed by Article 2A of the UCC.
a. True
b. False
Which of the following is one of the four steps in reading a contract?
a. What-ifs
b. Scan for typos
c. Re-write with a lawyer
d. Final approval
Whether or not the zoning board will grant a request for a variance depends upon
a. the type of the proposed building.
b. the reaction of the neighbors.
c. the reason the owner claims she or he is harmed by the zoning ordinance.
d. All of the above.
Treaties with foreign nations can only be made by ________ and ratified by ________.
a. the Secretary of State; the President
b. the President; the Senate by a two-thirds vote
c. the Department of Defense; the Senate by a plurality
d. the President; the House of Representatives by a three-fourths vote
Techno is planning a security offering under Regulation D, Rule 506. Under this rule,
Techno can
a. offer up to $5 million in securities over 12 months.
b. offer up to $1 million in securities over 12 months.
c. can offer an unlimited amount of securities.
d. can only offer an amount equal to twice its initial capitalization.
Jake owns an old piece of exercise equipment. He has been using the equipment merely
to hang his clothes on, so Jake decides to get rid of the thing. He takes the unused
exercise machine to the landfill and throws it off the back of the truck. Maggie, a
teenager, is at the landfill rummaging for useful items. Maggie sees the exercise
equipment and decides it is just the thing to give her sister for Christmas, so she decides
to take it home. As she is loading it into the back of her pickup truck, Jake stops and
tries to get it back. The landfill owner sees the commotion and decides he would like to
have the equipment as well. Who has the best rights in the exercise equipment?
a. They are all joint owners.
b. Maggie.
c. Jake.
d. The landfill owner.
Which of the following organizations was responsible for putting forth the UN
Convention for the International Sale of Goods (CISG) and the Convention on the
Recognition and Enforcement of Foreign Arbitral Awards (New York Convention)?
a. the World Bank
b. the UN Commission on International Trade Law
c. the International Monetary Fund
d. the World Intellectual Property Organization
