Harriett raises and sells hippos. In order to keep her hippos happy and healthy, she feeds
them Hippo Chow, which she buys from the local pet store. Under the UCC, Harriett is
a. a merchant of both hippos and Hippo Chow.
b. a merchant of hippos, but not of Hippo Chow.
c. a merchant of Hippo Chow, but not of hippos.
d. not a merchant of either hippos or Hippo Chow.
Mark signs a periodic tenancy lease at the River’s Edge Warehouse for one year. After
the year expires, Mark stays in the warehouse and the landlord acquiesces. Mark
a. has a month-to-month periodic lease, which can be terminated by either party giving
a 30-day notice.
b. has a tenancy at sufferance which is not a true tenancy at all.
c. has another one-year lease.
d. must move out when the landlord finds another tenant.
A gun manufacturer in Helena, Montana agrees to sell guns and ammunition to the ATF
in Washington, D.C. The terms of the contract specify that the goods are to be shipped
“FOB, Chicago.” When does the buyer acquire title and risk of loss?
a. When the goods reach Chicago.
b. When the goods are delivered to the carrier in Montana.
c. When the goods are tendered in Washington D.C. by the carrier.
d. When the goods reach Washington D.C.
An agreement in which parties intend to form a valid bargain, but a court declares that
some rule of law prevents enforcing it is called
a. a void agreement.
b. a voidable contract.
c. an unenforceable agreement.
d. a quasi-contract.
Jeremiah was a partner in a partnership, but he quit unexpectedly when he got his
feelings hurt over an internal decision. Dissociation has occurred.
a. True
b. False
When Myrtle comes home from work one evening, she finds that her yard has been
mowed and trimmed. Later, a man comes to collect for the yard work done. Myrtle
refuses to pay for the work since she has never seen the man before and did not hire
him to do her yard work. Which of the following answers is most accurate?
a. This is an implied, unilateral contract and she must pay the price requested by the
man.
b. This is an express, voidable contract that either party may avoid.
c. The court would order Myrtle to pay the reasonable value of the yard work because
of the benefit conferred on her.
d. Myrtle would not have to pay for the yard work.
Which of the following statements is most accurate regarding appellate courts?
a. Appellate courts often hear new evidence and testimony.
b. Appellate courts generally accept the factual findings of the trial court.
c. Only the federal court system has appellate courts.
d. Appellate courts hear only criminal cases.
The U.S. Supreme Court was asked to decide whether same-sex sexual harassment is a
violation of Title VII of the Civil Rights Act. This law forbids discrimination in
employment on the basis of sex. In interpreting statutes, the court may use all of the
following EXCEPT
a. the plain meaning rule.
b. legislative history.
c. public policy.
d. enabling legislation.
Ali took a seat at a booth at Midway Diner. Between the salt and pepper shakers, Ali
noticed something glittering. It was a diamond ring. The ring is
a. abandoned property.
b. an accession.
c. mislaid property.
d. treasure trove.
In June, The Seascape Gallery sells an oil painting to Collegiate Systems, Inc.
Collegiate promises to pay for the painting in three months. The gallery prepares a draft
ordering Collegiate Systems to pay $3,000 to First Bank on September 15. Collegiate
Systems signs the draft. The draft is a
a. sight draft.
b. time draft.
c. trade draft.
d. future draft.
Megan agrees to sell Nancy her Rolex watch but they do not specify a price. In such a
case, the court would not enforce the agreement because all of the essential terms are
not present.
a. True
b. False
Which of the following represents a valid Regulation A Tier 1 offering?
a. Selling $3 million of securities in any 12-month period with a $250,000 individual
investor limit
b. Selling $10 million in securities in any 12-month period; investors can’t buy more
than 10% of their annual income or net worth
c. Selling $4 million of securities in any 12-month period with no individual investor
limit
d. Selling $20 million in securities in any 12-month period; investors can’t buy more
than 5% of their annual income or net worth
Sid burned his own warehouse in an attempt to collect on a fire insurance policy. Sid
has committed
a. arson since he maliciously used fire to damage or destroy personal property.
b. larceny since he committed an act intended to wrongfully obtain money from his
insurance company.
c. a crime called “burning to defraud insurers” since the crime of arson only applies to
property owned by another person.
d. an intentional tort, but not a crime since a person has a right to destroy his own
property.
The UCC requires consideration for agreements modifying contracts for the sale of
goods.
a. True
b. False
When Congress passed a criminal statute called the “Gun-Free School Zones Act,” the
Supreme Court ruled that
a. the law was valid as a proper exercise of the power to regulate interstate commerce.
b. the law was void for vagueness; thus, it was not valid.
c. the law was not valid since Congress exceeded its power under the Commerce
Clause.
d. although the law was not a proper exercise of the power to regulate interstate
commerce, Congress had the power to create such legislation on other grounds.
Therefore, the statute was valid.
An accountant is liable for fraud to
a. only her client.
b. only her client and any known user of her information.
c. any foreseeable user of her work product who justifiably relied on it.
d. any third party with the exception of investors or creditors.
Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his
moving expenses up to $10,000 if Robert would quit his job and come to work for him
at his manufacturing plant. Robert agreed to do so, but requested a written contract.
Alfred assured him that the company attorney would prepare such a contract as soon as
possible, but Alfred needed Robert to start at once. Accordingly, Robert sold his house,
moved his family, and commenced to work for Alfred. He was fired without cause two
months later. No written contract was ever executed. Can Robert enforce Alfred’s oral
promise?
a. No. This was a contract for longer than one year and is not applicable to exception. It
violates the statute of frauds and is not enforceable.
b. Maybe. Robert should go to court under the theory of promissory estoppel. Alfred
made an oral promise that Robert relied upon, and the way to avoid injustice is to
enforce the promise.
c. Yes. This is a personal satisfaction contract, and Alfred gave no reason for
dissatisfaction. Robert can recoup the loss he took on the sale of his house.
d. Yes. This is a partial performance of the sale of goods. Robert can recoup the loss he
took on the sale of his house.
An inmate in a state prison claims his United States constitutional rights prohibiting
cruel and unusual punishment are being violated by the state correctional facility. This
case
a. may not be decided by a federal court since it involves a state facility.
b. must be decided by the state court where the inmate established residency before
going to prison.
c. is a federal question case over which the federal courts have jurisdiction.
d. cannot be heard, as prisoners lose the right to sue.
Which of the following is a heat source of water pollution?
a. Discharge from a household water pipe
b. An oil spill into a body of water
c. Stormwater run-off that carries pollutants
d. Water that has been used as a coolant and returned to the waterways
When a corporation accepts legal responsibility for a contract, it is called novation.
a. True
b. False
Approximately how much merchandise is stolen from United States retail stores every
year?
a. $30 million
b. $300 million
c. $3 billion
d. $30 billion
Linda, a partner, is involved in the winding-up of the partnership. A lucrative business
opportunity for the partnership arises. Linda does not have the right to take on this new
business.
a. True
b. False
Under most state statutes, a corporation may
a. include in its charter a provision indemnifying directors unless they have engaged in
intentional misconduct or bad faith.
b. include in its charter a provision indemnifying directors under any circumstances in
the conduct of their duties for the corporation.
c. not include in its charter a provision indemnifying directors who engage in negligent
conduct of their duties.
d. not include in its charter any provisions regarding indemnification of directors.
When a partner leaves the partnership, whether it be voluntary or by expulsion, death or
bankruptcy, it is called
a. dissociation.
b. termination.
c. detachment.
d. separation.
A contract should have a descriptive title, which is generally in all capital letters,
underlined and centered at the top of the page.
a. True
b. False
In order to travel extensively and not worry about handling her affairs, Lee transfers
most of her assets into a trust, with her bank serving as trustee. She has created
________ trust.
a. a travel
b. a testamentary
c. a constructive
d. an inter vivos
The percentage of voters who must be present for a meeting to count is referred to as
a. a plurality.
b. simple majority.
c. a quorum.
d. a proxy.
Hanna intends to give her granddaughter, Melodee, her antique hat pin. This heirloom
has been kept under lock and key in the wall vault in the library of Hannas house in
Virginia. The hat pin is currently the only item in the vault. When Hanna is visiting
Melodee in Connecticut, Hanna gives Melodee the only key to the vault. Melodee is
grateful for the present and excitedly accepts. In this situation has there been a
completed gift?
a. No. There has been no physical delivery of the hat pin.
b. Yes. There has been physical delivery of the hat pin.
c. No. There has only been constructive delivery of the hat pin.
d. Yes. There has been constructive delivery of the hat pin.
A college professor copies seven chapters from a book called “How to Get Better
GradesA Creative Approach to College Success!” There are ten chapters in the book.
She incorporates this material into a packet of material that is printed in her college’s
copy center. The packet is then placed in the local book store and is placed on the
required materials list for students to purchase. The author of the book on getting better
grades believes the professor has violated his copyright.
a. The author is right. The professor should not have copied the chapters and placed
them for sale in the bookstore.
b. The author is technically correct. However, even though an infringement occurred, he
cannot sue the professor since educational personnel are exempt from liability under
copyright law.
c. The author is not correct. Under the “fair use doctrine” a college professor can copy
material and distribute it to students for educational purposes.
d. The author is not correct. It does not appear that the professor actually made any
money from the alleged copyright infringement.
When promissory estoppel is used by the courts, it is because there is NOT an
enforceable contract present.
a. True
b. False
The burden of proof required in a criminal case is
a. clear and convincing.
b. a preponderance of the evidence.
c. beyond a reasonable doubt.
d. highest degree of honesty.
Sarah has car insurance. While driving her automobile, Sarah negligently ran a red light
and hit Vi’s car. Which type of coverage will pay for the damage done to Vi’s car?
a. liability insurance
b. comprehensive insurance
c. accident insurance
d. uninsured motorist insurance
Describe the doctrine of precedent and its application to common law.
McCann Construction purchased a poured concrete form from Advance Concrete
Forms, Inc. McCann purchased the concrete form by placing a phone call to Advance in
Madison, Wisconsin. Advance delivered the concrete form with an invoice stating the
terms of the sale required payment within 30 days and a 1 1/2 % interest per month
finance charge would be charged on accounts over 30 days. When McCann failed to
pay the invoice on time, interest was charged according to this rate. Later, McCann
refused to pay the accumulated interest charge, claiming there was not a meeting of the
minds regarding the finance charge in any conversation prior to the sale. The trial court
concluded that the finance charge was in fact an additional term added by Advance
when it accepted McCann’s purchase order. Discuss Uniform Commercial Code Section
2-207 in general and with regard to this situation. Does McCann owe the interest
accrued?
Distinguish between a contract and a gift. Give an example of each.
List and discuss the protections afforded criminal defendants by the Bill of Rights.
Discuss the differences between a will and a trust.
On Monday, Travis took his four-wheeler to Repparts Equipment & Service for repair
because the steering was not working properly. On Friday he called Repparts to see if
his four-wheeler was ready because he wanted it for a weekend trip. Repparts said they
had done the major repairs but that the steering system still needed some work and they
needed another few days to finish the repairs. Travis told them he would pick the
four-wheeler up and use it for the weekend and then bring it back to have them finish
their work. While riding with friends on the weekend, Travis ran into someone because
the steering stuck and he couldnt swerve to avoid them. Discuss how a court would
determine causation in a negligence suit against Travis.
Violations of antitrust law are either per se violations or rule of reason violations. What
are the differences between these two types of violations? Give examples of each.
Explain the difference between public international law and private international law.
Jenna works for Mega Corp as a production employee. She is paid an hourly wage. She
wishes to negotiate her own employment contract with management since she does not
agree with the terms of her union’s collective bargaining agreement. Can Jenna
negotiate her own contract? Explain.
Differentiate between licensing requirements designed to protect the public and those
designed to generate revenue.
List the types of agreements that are within the statute of frauds and explain the
consequences if the parties do not comply with the requirements of the statute of frauds.
Jack and Jill were living together. Jack wanted to start a small retail store, but did not
have good credit. Jill, whose credit was excellent, signed loan agreements with Jack so
he could borrow the money to start the business. Jack used business cards that stated he
was the “owner” of the business. He and Jill filed separate tax returns. Jack stated he
was self-employed and claimed the business was a sole proprietorship. The money that
was earned from the store was placed into a joint checking account owned and used by
Jack and Jill. When there were significant decisions to be made about the business, such
as deciding to franchise the business, the decision was made jointly by Jack and Jill.
Five years after the business was started, Jill left Jack. She claimed she was entitled to
one-half the business’s profits since she and Jack were partners. Jack disagreed and
claimed they never had a partnership. Discuss Jill’s claim.
Briefly discuss the enforceability of contracts by third parties.
Dwight Stringer signed three promissory notes as an agent for his company. The first,
he signed “Dwight Stringer, agent for Park Systems, Inc. The second, he signed
“Dwight Stringer, Agent. The third note was signed merely “Park Systems, Inc. Discuss
the liability of Dwight and Park Systems, Inc. on each of the notes.
A contractor used dynamite to loosen a rocky hillside. The blast from the dynamite
caused a house foundation to crack. The house was located over a half-mile away from
the dynamite site. The contractor was careful when using the dynamite and no
allegation of negligence is made. However, the house owner claims the contractor is
liable for damage to the foundation. Is the house owner correct? Explain.
An auditor suspects its client is committing illegal acts that will have a material impact
on its financial statements. What is the auditor legally required to do and under what
circumstances would the auditor directly notify the SEC?
Explain the core principles in the Code of Fair Information Practices.
What does the term ‘substantial performance” mean? What factors are generally
considered when determining whether one of the parties has substantially performed?