A newspaper article hints that a certain corporation is a front for illegal activity. The
corporation:
a. will lose a defamation suit because only natural persons can successfully bring
defamation suits.
b. will likely win a defamation suit if the statement is untrue and was made with malice.
c. will likely lose a defamation suit because the press has an absolute privilege in this
type of case.
d. can win an invasion of privacy suit even if the statement is true.
The most popular and widely used unincorporated business form that provides limited
liability for its members is the:
a. limited partnership.
b. limited liability partnership.
c. limited liability company.
d. limited liability limited partnership.
Jan owns lots in the Cruz neighborhood, where she was planning to build an 8-story
apartment complex. Cruz has adopted a single-family dwelling ordinance that
encompasses Jan’s lots. Jan goes to the library and finds she can attempt to get judicial
review of ordinances based on which of the following?
a. The zoning ordinance is invalid.
b. The ordinance bears no reasonable relation to public health, safety, morals, or
welfare.
c. The ordinance amounts to confiscation of property.
d. All of the above.
The Recreation and Parks Agency of the state government has six employees and is
interviewing for a person to teach gymnastics and arts and crafts to 3-5 year olds. Ed,
age 68, applies but is told he is too old. If he sues under the Age Discrimination in
Employment Act, the agency’s best defense would be:
a. it is not subject to the Act since it only has six employees.
b. the Act only protects people from 40-66 years of age.
c. Ed is not able to do gymnastics.
d. this is not a salary dispute.
Utility patents require which of the following elements?
a. Ornamentality
b. Novelty
c. Obviousness
d. Distinctiveness
In most cases, how long does a copyright last?
a. 50 years
b. 17 years
c. 70 years
d. The author’s life plus 70 years
Steven has a typed copy of a contract, which he would like to have Thomas sign.
Thomas, who needs glasses to read typing, doesn’t want to sign until he has read the
document, but Steven convinces Thomas to sign it anyway, because it is a ‘standard”
contract for this type of situation. Is the contract which Thomas signed binding upon
him?
a. No, because he did not read it
b. No, because he entered into it based upon fraud in the execution
c. Yes, because he has made a unilateral mistake of law
d. Yes, because he was negligent in not ascertaining its contents
Answer the following:
Spoken or written words the principal communicates to the agent create:
a. actual, express authority.
b. actual, implied authority.
c. apparent authority.
d. incidental authority.
CERCLA is an Act that:
a. regulates current and future generation, transportation, and disposal of hazardous
waste.
b. granted to state governments the authority to take removal action in response to a
release of hazardous substances.
c. requires the federal government to establish a National Contingency Plan.
d. (a) and (b).
ABC Partnership agrees to hire an “errand runner” 20 hours per week for the summer.
Alan, a partner, interviews a college student and decides to offer her the job. But she
says she needs a 40-hour-a-week job, so Alan agrees to make it 40 hours. What result?
a. ABC Partnership is not bound to hire her.
b. ABC Partnership is bound to pay her for 40 hours per week.
c. Alan is bound to pay her for 20 hours per week.
d. Alan has to pay her for 40 hours per week.
The Overseas Private Investment Corporation (OPIC):
a. is a private company that analyzes and monitors the political climate of countries in
which American companies do business.
b. offers insurance to American companies to diminish the risks of expropriation of
their property in the countries in which they do business.
c. was successful in lobbying Congress to repeal the Foreign Sovereign Immunities Act
which had, in the past, prevented American companies from seeking relief from
countries which had expropriated their property.
d. None of the above.
A business, according to the FTC:
a. must disclose a product’s country of origin.
b. may not have a salesperson make statements such as, “This is a great buy.”
c. may use visual aids, such as adding marbles in a bowl of vegetable soup to make it
look thick, when televising commercials.
d. All of these are correct.
Sarah goes to Marlin’s Department Store to look for clothes. The store happens to be in
the process of remodeling, and there is a lot of clutter in the aisle. Sarah trips over the
clutter and is injured. Sarah’s status with regard to the store is that of:
a. licensee.
b. business visitor.
c. public invitee.
d. trespasser.
Noel and Lyle have a contract whereby Noel is to perform routine construction services
according to the blueprints that Lyle has provided. Noel assigns the contract to David.
As a result of this assignment:
a. Lyle can bring suit based upon detrimental reliance.
b. Noel has no more rights or responsibilities with regard to the contract.
c. Noel no longer has any rights under the contract, but he remains responsible for the
duties he agreed to perform.
d. Noel has all of his rights under the contract, but he has no responsibility for the
performance of the duties.
Cybercrime:
a. may be categorized based on whether the computer was the instrument or the target
of the crime.
b. has not been regulated by state laws.
c. has been controlled by comprehensive federal legislation.
d. is easy to detect.
Match the following:
a. A contract that binds an offeror to keep an offer open for a specified period of time.
b. Improper physical or mental coercion exercised upon a person so that he is forced to
act against his free will.
c. Taking unfair advantage of a person by reason of a dominant position based on a
relationship of trust and confidence.
d. A contract resulting from the exchange of a promise for an act or a forbearance.
e. A wrongful failure to properly perform contractual promises.
f. A contract that has not been fully performed.
g. A binding agreement that the courts will enforce.
h. A contract that has been fully performed by all of the parties.
i. A contract in which both parties exchange promises.
j. Contingency not contained in the language of the contract but imposed by law.
k. Transfer of a contractual obligation to a third party.
l. A merchant’s irrevocable offer to sell or buy goods in a signed writing that gives
assurance that it will not be terminated for the time stated, up to three months.
m. A statement in the form of a promise that imposes no obligation on the person
making the statement.
n. Affirmation of an entire contract; may be done upon reaching majority.
o. The inducement given to enter into a contract; whatever is given in exchange for
something else.
p. A substituted contract involving a new third-party promisor or promisee.
q. An equitable remedy that compels the actual performance by the defaulting party of
his contractual obligations.
r. Voluntary transfer of contractual rights to a third party.
s. An obligation not based upon contract that is imposed to avoid injustice.
t. Withdrawal of an offer by the offeror.
u. Doctrine enforcing noncontractual promises in certain circumstances to avoid
injustice.
v. A court order prohibiting a party from doing a specific act.
w. Approval based on whether a reasonable person would be satisfied.
x. An agreement to purchase all the materials of a particular kind that the purchaser
needs from one seller.
y. An agreement to sell the entire production of a particular seller to one buyer.
1) contract
2) breach
3) novation
4) assignment
5) promissory estoppel
6) quasi contract
7) executed contract
8) executory contract
9) bilateral contract
10) unilateral contract
11) delegation
12) option contract
13) firm offer
14) duress
15) undue influence
16) constructive condition
17) ratification
18) consideration
19) output contract
20) requirements contract
21) illusory promise
22) revocation
23) objective satisfaction
24) specific performance
25) injunction
The Hometown News snapped a picture of Tom, a local teenager, as he was sleeping
under a tree in the park on a warm spring day. If they print the picture on the front page
of the paper:
a. the Hometown News is guilty of intrusion.
b. the Hometown News is guilty of false light.
c. the Hometown News is guilty of appropriation.
d. it is unlikely that the Hometown News is guilty of any tort.
At common law, the risk of loss or damage to goods identified under a contract of sale
falls upon:
a. the buyer.
b. the seller.
c. the party who had title or ownership of the goods at the time of the loss or damage.
d. the designated party as determined by the court.
Most state attorneys general:
a. play a small role in enforcing consumer protection laws.
b. are active in consumer protection by enforcing laws against consumer fraud through
judicially imposed injunctions.
c. help consumers by enforcing laws that impose restitution.
d. Both (b) and (c).
Any action for breach of a sales contract must be begun within:
a. four years after the cause of action accrued.
b. five years after the cause of action accrued.
c. whatever period of time the parties have set in their contract.
d. two years of when the breach actually occurred or within five years of its discovery.
Darinel insures a $150,000 building with Morales Insurance Co. for $50,000 and with
Washington Insurance Co. for $100,000. The building is partially destroyed by fire,
causing $25,000 in damages. Darinel will be able to collect:
a. one-third of the damages from Morales Insurance Co.
b. one-half of the damages from Morales Insurance Co.
c. from neither Morales nor Washington since it was fraudulent to purchase policies
covering the same property from two different insurance companies.
d. $25,000 from either Morales or Washington Insurance Co., but cannot collect from
both insurers.
Which of the following gratuitous promises is/are enforceable by statute?
a. A good-faith contract modification in a contract for the sale of goods
b. A written offer signed by a merchant to buy or sell goods that assures it will be kept
open for one month
c. A renunciation of a claim in a written waiver that is signed and delivered by the
aggrieved party when the contract involves a sale of goods
d. All of the above are enforceable by statute.
Scott buys a television from Joe’s TV Store, giving Joe a check for $550. Joe uses a
special indorsement and negotiates the check to Tom. Tom carefully changes the
amount to read $1550 and loses the check on the way to the bank. Harry picks it up and
tries to cash it. What will he get?
a. Scott will have to pay him $550.
b. Joe will have to pay him $550.
c. Tom will have to pay him $1550.
d. No one will have to pay Harry.
The new revision of the RULPA provides that, when a limited partnership is a limited
liability limited partnership,:
a. a general partner is personally liable for a contractual obligation.
b. a general partner is personally liable for an obligation arising from a tort.
c. a contractual obligation or an obligation arising from a tort is solely the obligation of
the limited partnership.
d. a contractual obligation or an obligation arising from a tort is the joint and several
obligation of the limited partnership and the general partners.
The SEC’s computer system that performs automated collection, validation, indexing,
acceptance, and dissemination of reports required to be filed with the SEC is known as:
a. SEC-ELS.
b. ELMER.
c. EDGAR.
d. EDMOND.
The Foreign Sovereign Immunities Act specifically provides that a foreign state shall be
immune from neither federal nor state court jurisdiction in certain circumstances. The
circumstances include that the suit is based on:
a. a commercial activity conducted in the United States by the foreign state.
b. an act that the foreign state performed in the United States in connection with a
commercial activity it carried on elsewhere.
c. a commercial activity performed outside U.S. borders that directly affects the United
States.
d. All of the above.
e. Both (a) and (b), but not (c).
Bob and his sister, Claudia, can own property by:
a. tenancy by the entireties.
b. tenancy in common.
c. joint tenancy.
d. Any of the above.
e. Both (b) and (c) above.
Hal doesn’t like Bradley so, at a cocktail party, he spread untrue rumors about Bradley’s
personal lifestyle and sexual practices. If these rumors harm Bradley’s reputation in the
community:
a. Hal is guilty of libel.
b. Hal is guilty of slander.
c. Bradley does not have a defamation suit against Hal.
d. Hal is protected by the First Amendment to the Constitution.
Which of the following defenses may be raised by an accountant under Section 11 of
the 1933 Securities Act?
a. Privity and due diligence
b. Privity, but not due diligence
c. Due diligence, but not privity
d. Neither privity nor due diligence
Anita owes Brad $75,000. Brad signs a written statement granting Glen a gratuitous
assignment of his rights from Anita. Brad delivers the signed statement to Glen before
Brad dies. The assignment is:
a. irrevocable because of the delivery of the statement.
b. terminated upon Brad’s death.
c. irrevocable because of the signing of the statement.
d. invalid because it is revocable.
Discuss the duty of general partners to limited partners.
In general, a tenant is under a duty to make minor repairs to the leased premises.
Two of the factors that are taken into consideration in determining the scope of liability
for negligent conduct are foreseeability and superseding cause.
Voting trusts generally are effective for only one year.
A principal may generally revoke the authority of an agent at any time by notifying the
agent.
The distinction between a void and voidable title is not important in determining the
rights of good faith purchasers of goods.
If a person dies without a valid will, her property will be distributed according to state
statute, even if that distribution is contrary to the decedent’s clear intention.
A defamatory communication that is spoken or oral is designated libel.
At common law a promise under a seal to authenticate it was effective without anything
more.
The word “parol” literally means release.
Lou and David have an executory contract that is supposed to be performed on June 1.
On May 1, David indicates that he has no intention of performing the contract as
agreed. Lou must wait until June 1 before he can pursue any remedies for breach of
contract against David.
Distinguish between a note and a certificate of deposit. How are they alike? How are
they different? Explain your answer.
Drawers of checks may disclaim contractual liability by using the words “without
recourse.”
Under the CFPA of 2010, publicly held companies must, on their proxy solicitations,
disclose and provide shareholders with a binding vote to approve any type of
compensation based on or relating to mergers, consolidations, or the proposed sale of
all of the assets of the company.
A negotiation is void if the transaction in which it occurs is void.
Under the RUPA, a partner’s duty not to compete terminates upon dissociation, and the
dissociated partner may immediately engage in a competitive business without further
consent.
The parol evidence rule is an exclusionary rule of evidence.
Contractual duties are assignable.
Julius had just finished a reading of his work in a local park. Afterwards he passed out
copies of the same for folks to enjoy at home. However, Martina took her copy to a
local college magazine and had it published in her name. What are Julius’s rights under
the copyright law?