Testamentary capacity refers to:
a. the age of the testator.
b. the same capacity as required to contract.
c. the ability to understand the nature and extent of one’s property, to appreciate the
natural objects of one’s bounty, and the ability to formulate an orderly plan of
disposition.
d. the influence of others over the testator.
An artist would like to protect one of her original oil paintings from being sold as
original prints. She may protect her painting by applying for a:
a. copyright.
b. patent.
c. trademark registration.
d. service mark registration.
a. What is a marketable title? Explain.
b. What is the implied warranty of habitability? Explain.
c. Alice buys a home in which she plans to live with her family. After she moves in,
everyone in the family becomes very ill. Eventually, they trace the source of the illness
to chemicals in the cabinets and walls of the home. What can Alice do? Explain.
The signature of the maker of a note may be typewritten or signed by means of a
signature stamp so long as it represents a present intention to authenticate the
instrument.
a. True
b. False
Which of the following would be an invalid restrictive covenant in a deed?
a. A requirement that all buildings are of a certain style.
b. A requirement that all homes contain a double garage.
c. An agreement not to sell to African-Americans.
d. An agreement requiring a minimum size for homes.
Which of the following is INCORRECT regarding zoning?
a. Zoning restrictions can be used to regulate, but not to take, private property.
b. A variance permits an otherwise impermissible use of the property.
c. A zoning ordinance needs no reasonable relationship to public health, safety, or
morals to be upheld.
d. A nonconforming use may be permitted where property was so used prior to adoption
of the zoning ordinance.
In the Lesher v. Strid case, the court held that:
a. a representation is material if it is likely to influence a reasonable person.
b. for a misrepresentation to be actionable, it must be one of fact rather than of opinion.
c. a mutual mistake of fact renders a contract voidable by the adversely affected party if
the mistake is so fundamental that it frustrates the purpose of the contract.
d. the contracts “as is clause expressly excluded reliance on extrinsic representations
such as the defendants representation about the four-acre water rights.
If the issuer and the person paying an instrument subject to the impostor rule are both
negligent, comparative negligence would apply.
a. True
b. False
A provision in a promissory note payable one year from its date that the maker may
extend the maturity date six months impairs the notes negotiability.
a. True
b. False
A life tenant may do anything with the land that is legal.
a. True
b. False
As of the writing of the textbook, the Restatement (Third) of Torts: Products Liability
had replaced the Second Restatement in all but four of the states.
a. True
b. False
At age 17, Wanda purchased an expensive sound system from Lectronic City. If Wanda
wishes to ratify this contract, Wanda:
a. must reach the age of majority and ratify the contract as a whole.
b. may do so by express notification at any time before reaching the age of majority.
c. may at any time keep the sound system but avoid any remaining debt owed on it.
d. may do so at any time by express or implied action before or after reaching the age of
majority.
Gail dies intestate leaving two children, Benjamin and Christopher. Her daughter, Anna,
died two years earlier. Anna had three children, Carolyn, Jeffrey and Scott. If Gail
leaves an estate of $150,000, how much will Jeffrey’s share be under the usual statutes
of descent and distribution?
a. $0.
b. $30,000.
c. $16,667.
d. $50,000.
The concept of waste, as used in real property, includes:
a. any act that permanently injures the realty.
b. any omission that permanently injures the realty.
c. any act that unreasonably changes the value of the realty.
d. All of these.
A person who has made a financially unsound contract may be relieved from
performance under the doctrine of commercial impracticability.
a. True
b. False
In the Pearsall v. Alexander case, the court found that by exchanging mutual promises
to share in proceeds of lottery tickets, the parties entered into a valid, enforceable
contract.
a. True
b. False
The purpose of reliance damages is to place the injured party in a position as good as he
would have held if the contract had not been made.
a. True
b. False
An illusory promise has the form of a promise but imposes no real obligation.
a. True
b. False
Marie owes Nathan $900 and the parties agree that Marie will paint Nathan’s house in
satisfaction of the debt. The debt is not discharged until Marie performs the substituted
agreement by painting Nathan’s house.
a. True
b. False
Under the Equal Pay Act:
a. an employer cannot discriminate against a minority worker by paying him less than a
non-minority worker.
b. a man could be paid more than a woman for the same kind of work if he produced
more on a piece-rate basis.
c. an employer cannot discriminate in pay for substantially equal work on the basis of
religion, sex, or national origin.
d. All of these are correct.
By the majority view, a minor need only return any property he has received from the
other party if the minor wishes to disaffirm the contract. He has no duty to return the
property in the same condition in which he received it.
a. True
b. False
The Securities Act of 1934 imposes significant disclosure requirements upon reporting
companies.
a. True
b. False
There is no state action where a court orders enforcement of a private agreement among
property owners since the property owners were private individuals.
a. True
b. False
A sale exists after the buyer takes:
a. the title to the goods.
b. the risk of loss on the goods.
c. an insurable interest in the goods.
d. a special property interest in the goods.
Which of the following is true with respect to substantial performance?
a. It does not apply to the construction industry.
b. Substantial performance does not defeat the purpose of the contract.
c. When one party to a contract has substantially performed, the other party cannot
recover damages for the imperfect performance.
d. All of these.
Mark hires Joe’s real estate agency to sell his property, telling Joe he has lost too much
money playing the stock market to afford to keep it up. Then Mark wins the three
million-dollar lottery! Joe reads this in the newspaper and that afternoon makes a
contract with Sharon to sell the property. Is the contract valid?
a. No, the agency terminated because of the change in conditions.
b. No, the agent has no right to sell without consent.
c. Yes, Mark would have to notify Joe if he wanted to stop the sale.
d. Yes, Joe had apparent authority to sell.
Generally, the executive branch of government has the power to enforce the law.
a. True
b. False
The tender offer is open to select holders of the class of shares subject to the tender
offer.
a. True
b. False
Contracts binding without consideration include promises to pay debts barred by a
statute of limitations and debts discharged in bankruptcy.
a. True
b. False
A minor cannot act as an agent.
a. True
b. False
Damages awarded in excess of normal compensation in order to punish a defendant for
a serious civil wrong are known as punitive damages.
a. True
b. False
Assignments that materially increase the risk, duty, or burden on the obligor will
nonetheless remain effective and enforceable.
a. True
b. False
Howard stole a computer and then sold it to his friend Ivan for $100. Ivan has:
a. good title to the computer, because he paid for it.
b. a voidable title to the computer.
c. a void title to the computer.
d. good title to the computer, because he is a good faith purchaser for value.
Which of the following is correct with respect to the accountant-client privilege?
a. The common law recognizes such a privilege.
b. Federal law recognizes such a privilege.
c. Some states statutorily recognize such a privilege.
d. All of these are correct.
To a libertarian, it is not unjust for some people to accumulate fortunes while others live
in poverty.
a. True
b. False