Under the national taxing power, Congress may NOT
a. tax the sale of clothing in all states.
b. tax the sale of food in all states.
c. enact a graduated income tax.
d. exempt certain states from a federal tax.
Diana is a state court judge. In her court, as in most state courts, she may grant in a
particular case
a. a legal remedy only.
b. an equitable remedy or a legal remedy but not both.
c. equitable and legal remedies.
d. neither an equitable nor a legal remedy.
Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay
enters into is
a. voidable if Fay has a lucid interval at the time of contracting.
b. voidable if Fay lacks the capacity to comprehend the consequences.
c. voidable if the other party does not realize that Fay is incompetent.
d. unavoidable.
Lovett County Bank offers to lend money to Kino, the owner of Java Stop, at 15 percent
interest. Before Kino accepts, a state statute is enacted prohibiting loans at rates greater
than 12 percent. Kino and the bank have
a. have a contract for a loan at 15 percent interest.
b. have a contract for a loan at 12 percent interest.
c. have a contract for a loan at 0 percent interest.
d. no contract for a loan.
Century Properties. Inc., and Broadview Capital Corporation enter into a contract for a
sale of land. To be enforceable, the contract must be in writing if the land is valued at
a. $50.
b. $500.
c. $5,000.
d. $50, $500, or $5,000.
OK Dry-Cleaning advertises so effectively that the regular customers of its competitor
Purity Cleaners patronize OK instead of Purity. This is
a. appropriation.
b. conversion.
c. wrongful interference with a contractual relationship.
d. none of the choices.
Phillip assigns his rights under a contract with Maria to his college roommate, John.
Neither Phillip nor John notifies Maria of the assignment. The assignment
a. will not be effective until notice is given to Maria.
b. will become effective after thirty days even if no notice is given to Maria.
c. is immediately effective.
d. can be circumvented.
During a trial between Gene and Homer over the use of Gene’s lakeside vacation cabin,
Gene’s attorney asks questions of the plaintiff’s witness Illya. This is
a. a cross-examination.
b. a deposition.
c. a direct examination.
d. an interrogatory.
VuTech Company agrees to sell digital video equipment to Home & Business Stores,
Inc., for Home & Business to sell to its customers. Their contract will not be
enforceable unless it includes
a. the duration of the deal.
b. the price of the goods.
c. the quantity of the goods.
d. the requirements of OSI’s customers.
Julie works as an employee for Organic Produce Express, Inc. (OPI). Rowan, who is
unemployed, collects unemployment compensation. This compensation is provided by a
tax on
a. Julie and other employees.
b. Julie, OPI, and other employees and employers.
c. OPI and other employers.
d. not Julie, OPI, or other employees or employers.
Clay buys an iPad for $800 and a pair of stereo speakers for $600 from a Discount City
store, and downloads $300 worth of digital music from eMusic.com. Which contract
does NOT need to be in writing to be enforceable?
a. The digital music, the iPad, and the speakers
b. The speakers only
c. The iPad only
d. The digital music only
Gerald files a bankruptcy petition. The resulting automatic stay will apply to Gerald’s
a. alimony debts.
b. child-support debts.
c. spousal maintenance debts.
d. car payment debts.
Eve dies intestate, survived by her grandson Boyd and her sister Grace. Boyd and Grace
are Eve’s
a. collateral heirs.
b. inter vivos heirs.
c. lineal heirs.
d. none of the choices.
Jill has a mortgage loan from All Star Bank. Shortly after obtaining her mortgage, an
agent from All Star convinces Jill to refinance, even though refinancing will not benefit
Jill. This is
a. an acceptable way to conduct business.
b. steering and targeting.
c. loan flipping.
d. unjustified lending.
Mary writes a check drawn on County Bank for $400 “payable to Bill” on May 1. Mary
dies on May 3. Bill presents the check to County Bank on May 5. County Bank
a. may not pay the check.
b. may pay the check.
c. must consult with Mary’s heirs before paying the check.
d. must read Mary’s will before paying the check.
Jacqi tells Kenneth, who does not know how to perform comedy, that she will tutor him
in the subject for $500. As an offer, this is
a. effective.
b. not effective, because comedy is not a serious subject.
c. not effective, because Jacqi’s tutoring will be subjective.
d. not effective, because Kenneth has no knowledge of the subject.
Jill believes that she should file a plan for a Chapter 13 discharge in bankruptcy. A court
will confirm her bankruptcy plan if it provides for
a. the completion of all payments to all creditors within six years.
b. the payment of 100 percent of all obligations in full.
c. the surrender of all collateral to the creditors.
d. the turnover of the debtor’s future income to the trustee.
Sara has a fixed-rate mortgage. The index rate for her mortgage
a. is a government-determined rate.
b. can only be adjusted upward.
c. can only be adjusted downward.
d. cannot be adjusted.
Eagle Financial Corporation merges with First Bank Corporation, with Eagle Financial
absorbing First Bank. After the merger
a. a different, new corporation is the surviving corporation.
b. Eagle Financial and First Bank are both surviving corporations.
c. Eagle Financial is the surviving corporation.
d. First Bank is the surviving corporation.
Regina handwrites her entire will on a legal pad. Regina’s will is
a. invalid.
b. a holographic will.
c. a nonholographic will.
d. a residuary will.
Eighty-year-old Clark exhibits confusion, forgetfulness, and disorientation. To Clark’s
doctor Dave, the symptoms indicate dementia. Elsa, who has significant contact with
Clark, believes that he is in a state of mental decline. These facts indicate
a. an urgency that Clark distribute his assets.
b. Clark’s lack of capacity.
c. Dave’s misdiagnosis.
d. Elsa’s intent to take advantage of Clark.
EZ Credit Company signs an instrument payable to the order of Flem that states, “The
maker of this note at the date of maturity, May 1, 2015, can extend the time of payment,
but for no more than a reasonable time.” This instrument is
a. negotiable.
b. nonnegotiable, because it includes an extension clause.
c. nonnegotiable, because it is not payable within a definite time.
d. nonnegotiable, because it is payable to a specific payee.
On January 10, Winchester Pet Supplies orders fifty small dog collars from Quality
Collars, Inc. to be delivered by January 15. On January 13, Quality Collars tenders fifty
large dog collars. Winchester Pet Supplies rejects the shipment. Quality Collars has
a. no right to cure.
b. until January 15 to cure.
c. until the end of the business day on January 13 to cure.
d. unlimited time to cure.
Rafe signs a one-year lease with Suki to occupy an apartment in Lawrence, Kansas,
near the University of Kansas. Rafe needs the apartment only for two semesters and
may have to sublet it for the rest of the term. Rafe’s tenancy is
a. a periodic tenancy.
b. a tenancy at will.
c. a tenancy at sufferance.
d. a fixed-term tenancy.
Franzea is injured in an accident caused by Gentry. Gentry agrees to pay Franzea
$2,500 if she agrees to release him from further liability. She agrees. If Franzea’s
damages ultimately exceed $2,500, she can collect
a. the balance from Gentry in a breach-of-contract suit.
b. the balance from Gentry in a tort suit.
c. the balance from Gentry on the ground of unforeseen difficulties.
d. nothing more from Gentry.
With some exceptions, every portion of every meeting of the Federal Reserve System
Board of Governors and other federal administrative agencies must be open to public
observation under
a. no federal or state law.
b. the Freedom of Information Act.
c. the Government in the Sunshine Act.
d. the Public Accountability Act.
Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams
Motel, including the land, building, furnishings, shares of stock in Suite Dreams
Company, and a contract with Trudy to create an ad campaign. Reba suspects that
Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs
a. the sale of any of the property evidenced by a writing.
b. the entire deal, including the marketer’s services.
c. the sale of the furnishings priced at $500 or more.
d. the sale of the land and the building.
Melanie files an employment discrimination suit against Natural Gas Industries Corp.
under Title VII on a disparate-impact theory. To succeed, Melanie must show that a
protected group of people are adversely affected by any of the following except the
employer’s
a. practices.
b. procedures.
c. tests.
d. seniority.
In relation to Edie’s solicitation of investors in a nonexistent business, she is charged
with “mail fraud.” This requires, among other things,
a. claiming that an item is “in the mail” when it is not.
b. deceiving postal authorities as to the content of an item of mail.
c. depositing items in the postal system without proper postage.
d. mailing or causing someone else to mail a writing.
Which of the following is NOT a requirement for ratification of an unauthorized
contract or act involving an agent and a third party?
a. The principal must know of all material facts involved in the transaction.
b. The principal must have the legal capacity to authorize the transaction at the time the
agent engages in the act.
c. The principal’s affirmance must occur prior to the withdrawal of the third party from
the transaction.
d. The principal must be a disclosed principal.
A contract between Lee and Mary may not be assigned if it
a. does not expressly permit assignment.
b. involves a sale of goods.
c. involves personal services.
d. is oral.
Swinborn sells “Tyger” steroids over the Internet. He is arrested and charged with the
sale of a controlled substance. This is cyber crime, which is
a. a crime in which the letter “y” is used in the misspelling of a word.
b. a crime that occurs in cyberspace.
c. a crime that is less real than the same crime in the physical world.
d. no crime.
For a creditor to have an enforceable security interest, the debtor must have rights in the
collateral.
To be negotiable, an instrument must be signed in the lower right-hand corner.
A restriction on commercial speech is valid as long as it forbids only the expression of
views on controversial issues.
A bargained-for exchange is one of the elements of consideration.
A corporate officer cannot act as an agent of the corporation.
Chris promises Dina $40,000 if she graduates from Eagle College. Dina enrolls in
Eagle, attends full-time for four years, and graduates. When Dina asks Chris for
$40,000, Chris says, “I don”t remember promising you $40,000. But if there was a
promise, it’s not enforceable, because we didn’t bargain for it. And even if there was a
promise that would otherwise be enforceable, I revoke it now.” Can Dina enforce
Chris’s “promise”? Why or why not?
Assignment and delegation occur after the original contract is made.
Through tort law, society compensates those who suffer injuries as a result of others’
wrongful conduct.
All persons who are arrested have the constitutional right to remain silent.
If there is a statute that prohibits a certain action, a contract to do it is unenforceable.
As long as a contract is personal in nature, all rights under the contract can be assigned.
Some unilateral contracts do NOT require that an offeror be notified of acceptance.
Size alone does NOT determine whether a firm is a monopoly.
If an employee dies in a work-related incident, the employer must notify OSHA within
eight hours.
Under the perfect tender rule, if tender is not perfect, the seller is obligated to try again.
An oral contract for a transfer of land is always enforceable.
A contract cannot prevent the assignment of the right to receive funds.
An integrated contract is the final embodiment of the terms of an agreement.
The terms “due process” and “equal protection” mean the same thing.