The UCC permits terms to be added into a contract or filled in as gap fillers; however,
the contract cannot be enforceable unless the parties have agreed to and specified a
price in their agreement.
According to the mailbox rule, a revocation is valid the moment that it is mailed.
A telephone book listing citizens’ names, addresses, and phone numbers may not be
copyrighted.
Courts are bound by the Restatement of Torts, once it is published.
Saying that “this car is the ultimate driving experience” is an example of puffery.
A contract that is not yet complete is called an executed contract.
LLPs may choose to be taxed like a corporation or choose pass-through taxation
treatment.
Arthur Andersen, as a result of its conviction following the Enron scandal, is now
completely out of business.
If the police fly over your home with a helicopter and observe your activities using
binoculars or a telephoto lens, this would constitute an illegal search if done without a
warrant.
The finder of lost property obtains better rights of ownership to that property than
anyone else.
Criminal law can be characterized as public law but can never be considered private
law.
Once a corporation is recognized as existing by the state, the corporation automatically
becomes liable for all contracts that a promoter had entered into on behalf of the
corporation.
The Revised Model Business Corporation Act mandates that all corporations other than
single-member corporations maintain a board of directors with at least three members
who are independent of the officers and shareholders.
The Insider Trading and Securities Fraud Enforcement Act created substantial civil
penalties but no criminal penalties for those committing insider-trading violations.
The SEC’s issuing of licenses to individuals to trade stocks is not an agency function
because it is regulating individuals and not businesses.
When an accord and satisfaction is agreed to, the original obligation subject to the
accord is immediately discharged.
Scoop Masters Inc. has been charged by Fab Flavors Corp. with stealing Fab Flavors’
patented process for making ice cream. After the papers are filed, Scoop Masters begins
shredding all documents pertaining to its ice cream-making process. Since no motion
has been made requesting production of documents, Scoop Masters has done nothing
wrong.
If a jury is deadlocked and cannot come to a decision at the end of a trial, the prosecutor
may not bring charges to retry the defendant due to the defendant’s double-jeopardy
protection under the Constitution.
The FDA enforces both specific and general standards for food safety.
Reciprocity is an important concept in the Berne Convention.
Debentures are unsecured equity instruments that are issued by a corporation.
If a state appellate court renders a decision on a new issue, that state decision will
become precedent for any federal court decisions when the federal court is located
within the state and the decided issue is one of state law.
If two companies enter into a sales contract and the shipping terms are omitted from the
agreement, the contract will automatically become a shipping contract.
With regard to dissociation and dissolution, the Revised Uniform Partnership Act
adopted and reserved the same general rules and procedures as its predecessor, the
Uniform Partnership Act.
Counterclaims are filed by the plaintiff in civil matters.
If a student leaves a book bag in class by accident and the professor takes possession to
safeguard the bag, a bailment has been formed.
A closely held corporation may be privately held or publicly held depending on the
status determined at creation.
The most common form of sexual harassment is quid pro quo harassment.
The fundamental underlying concept of corporate social responsibility is that
conscience resides in individuals but not in a corporation itself.
Generally, courts do enforce a strict compliance standard for contract conditions.
An LLC can last until a specified term expires.
Records of agency personnel matters are open to the public under the Freedom of
Information Act.
A security can exist in the absence of a formal certificate evidencing the investment and
also in the absence of an interest taken in the tangible assets of the company being
invested in.
The rule of addition applies when someone creates something exactly like an item
already patented but adds some sort of extra feature or improvement. That new
extra-feature item will not be considered a patent infringement.
George has assigned the lease on his apartment to Brad for a six-month period. Three
months later, the apartment is infested with cockroaches. When Brad complains to the
landlord, the landlord informs him that his agreement is with George and that only
George has the right to enforce habitability and quiet enjoyment complaints. Brad must
have George make the complaint to the landlord.
Under the Patient Protection and Affordable Care Act and the Health Care and
Education Reconciliation Act, individuals not covered under a health care plan by 2014
are required to purchase a plan through a health care exchange.
In U.S. v. Morrison, the Supreme Court found that commerce power was a legitimate
justification to validate the right of women to sue their attackers for monetary damages
under the Violence Against Women Act.
Albert has sued Tina and received a judgment for $50,000. Tina’s assets may be exempt
from collection of the judgment if Tina has filed bankruptcy.
Most federal environmental laws do not require that states work in conjunction with the
EPA to implement and enforce them.
George wants to buy an old chemical factory in the warehouse district of town. He
plans to take advantage of the upcoming neighborhood and turn the building into
expensive lofts. After purchasing the property and starting renovations, he discovers
that the land is contaminated with hazardous chemicals. He contacts the EPA to create a
cleanup plan. When allocating liability and cleanup costs the EPA determines that
George is:
A. not liable because he did not own the land when it was contaminated.
B. not liable because the chemical factory owners contaminated the property.
C. liable because he is the owner of the contaminated property.
D. liable because he should have conducted all reasonable inquiries into the previous
ownership to determine whether any contamination was present.
What is the main problem with international courts?
A. finding judges who understand the complexities of international law
B. creating a body of law that reflects multiple legal systems
C. enforcing a ruling on sovereign nations
D. lacking recognition from the United Nations and World Trade Organization
Alice has inherited 21 acres of land in Alaska. Since she has no urge to visit Alaska, she
has never seen the land. Ron and Jane have moved onto the land and erected a home.
They have started using the land and have even fenced much of it in. There is no
mortgage on the land, and Alice doesn’t receive a tax bill because Ron and Jane pay the
yearly taxes. After the statutory period in Alaska has run, Ron and Jane would become
the owners of the land.
Which of the following is not a class of principally responsible parties (PRPs) under the
Superfund?
A. current owners
B. previous owners
C. owners at the time that the hazardous substances were disposed on the site
D. businesses that accepted hazardous substances for transportation to the site and
selected the site
Officer Tom stops Kathy because she looks like a criminal to him, and after a pat down
finds marijuana in her pocket. He then uses the drugs to justify a warrant to search her
home for drugs. The search uncovers 8 kilos of cocaine.
A. The marijuana in her pocket would be excluded from evidence; however, the 8 kilos
were found pursuant to a warrant, so they are admissible evidence at trial.
B. Both the marijuana from her pocket and the 8 kilos of cocaine would be admissible
evidence at trial.
C. The marijuana would be admissible at trial but not the cocaine because marijuana
and cocaine are so different.
D. Neither the marijuana nor the cocaine would be admissible at trial.
Each of the following is a discharge by mutual consent except:
A. accord and satisfaction.
B. novation.
C. rescission.
D. frustration of purpose.
Vertical restraints are agreements between:
A. business and government.
B. noncompetitors.
C. competitors.
D. consumers and government.
Which of the following is not a general category of torts?
A. intentional torts
B. negligence
C. strict liability
D. criminal torts
Which agency had its oversight power over credit card issuers increased by the Credit
Card Accountability Responsibility and Disclosure Act of 2009?
A. Interstate Commerce Commission
B. Consumer Protection Agency
C. Securities and Exchange Commission
D. Federal Trade Commission
Alan has accepted a new job. Which of the following is not a contract condition related
to that job?
A. Medical and dental benefits will start after Alan has worked for six months.
B. Alan will receive a bonus provided that he obtains six new clients within 30 days.
C. Alan’s salary will be $1,000 a week.
D. Alan cannot begin work unless he passes a drug and alcohol screening.
Which of the following would not be considered tangible?
A. a car
B. oxygen
C. the right of ownership
D. the pen or pencil you are using
An easement by prescription:
A. creates ownership of the land in question.
B. creates a right of use in the land in question.
C. occurs when landlocked property is purchased.
D. creates a leasehold estate.
Assume that the state of Georgia has just raised the fee for registration of motor
vehicles $5 per year. If challenged, this new statute would be reviewed using:
A. rational basis scrutiny.
B. intermediate scrutiny.
C. strict scrutiny.
D. no particular form of scrutiny (none is required in this situation).
The amendment that requires probable cause with respect to searches and seizures is
the:
A. Fourth Amendment.
B. Fifth Amendment.
C. Sixth Amendment.
D. Eighth Amendment.
Joey owned three homes in three different states. He tells Monica that she can live in
his Iowa home until he decides to start using the home again in the future. Monica
moves in and lives there for 13 years when Joey calls and says that he wishes to start
using the home and that she must move out. Monica tells Joey that the statutory period
for adverse possession in Iowa is 10 years and that she is now the owner.
A. Monica owns the home because she was open, notorious, visible, continuous, and
exclusive and lived there longer than the 10-year requirement.
B. Monica owns the home because she was there with Joey’s permission and had not
broken the law.
C. Joey owns the home because he did show up after 13 years to claim the property.
D. Joey owns the home because Monica was not adverse or hostile since she was there
with his consent.
Joyce contracted with Mega Drug Corporation to buy vitamins on behalf of Howard, a
personal trainer. Howard told Joyce to use her own name and not to disclose to Mega
that she was working for Howard. If Joyce signs the contract in her own name only and
Howard won’t honor it:
A. Joyce can’t be sued because she’s only an agent.
B. Joyce is liable but may sue Howard based on indemnification.
C. Joyce is liable but may sue Howard based on failure of loyalty.
D. Howard has no liability to anyone, since his name was never disclosed.
An employee must file charges of illegal discrimination with the EEOC generally
within ________ days of the adverse job action.
A. 90
B. 120
C. 180
D. 365
The fact that the actual negligent act must directly cause the injury is called the:
A. proximate cause.
B. misfeasance.
C. nonfeasance.
D. cause in fact.
Ally, a minor, purchases a car from a used-car dealer. The law allows minors the right to
cancel a contract until the time the minor turns 18. The contract between Ally and the
dealer is:
A. a valid contract.
B. a voidable contract.
C. a void contract.
D. an unenforceable contract.
The power to carry out foreign policy is an enumerated power granted to:
A. the executive branch.
B. the legislative branch.
C. the judicial branch.
D. all three branches.
With regard to establishing minimal contacts to establish jurisdiction regarding
out-of-state companies that advertise and sell products over the Internet, which of the
following is not a true statement?
A. The U.S. Supreme Court has not yet directly ruled on the issue.
B. The Zippo standard, established in Zippo Manufacturing Company v. Zippo Dot
Com Inc., is not legally binding precedent.
C. At least six federal circuit courts have adopted the Zippo standard as the legal
framework to assess minimum contacts.
D. The Zippo standard sets a rigid test to establish minimum contacts, requiring that at
least 5 percent of the state’s population visit the company’s website.
In which of the following situations is the agent not liable should the principal breach
the contract with the third party?
A. none (Agents are liable in all agency situations.)
B. partially disclosed agency
C. undisclosed agency
D. disclosed agency
Which of the following gives a person the right to vote at an annual meeting?
A. a debenture
B. a share of stock
C. a bond
D. a promissory note
The color or shape of an item, if distinctive, is:
A. a trademark.
B. trade dress.
C. a copyright.
D. a patent.
In a contract governed by the CISG, when must a contract for the sale of goods be
written?
A. when the price exceeds $500
B. when the price exceeds $1,500
C. when the price exceeds $5,000
D. never (There is no requirement that the contract be written.)
The Chicago Cubs major-league baseball team is in the playoffs and doing well. Behind
the left-field wall there is an apartment building, and the owner advertises, “Space
available on the apartment building roof with a clear view of the field for the World
Series. Bring a lawn chair, your radio, and a cooler and enjoy the game. Just $50 per
game.” Bart, a lifelong fan, answers the ad and pays the building owner $100 to reserve
space for the first two games. Unfortunately, the Cubs start playing poorly and don’t
make it to the World Series.
A. The building owner does not have to refund the money because Bart reserved space
and the space is still there for him to use whether the games are played or not.
B. The building owner does not have to refund the money because it’s not her fault that
the Cubs didn’t make it to the World Series.
C. Bart will get a refund because of impracticability.
D. Bart will get a refund because of frustration of purpose.
Most state workers’ compensation statutes exempt each of the following except:
A. a maid who injures her back while vacuuming a rug.
B. a full-time custodial worker employed at a local store.
C. a college student who regularly works part-time for a florist after classes and is
injured while making a delivery to a customer.
D. a college student who works two months a year during his summer vacation as a
lifeguard at a pool and is injured while saving a woman.
A franchise should be thought of as:
A. a type of business entity.
B. a federally regulated business entity.
C. a contractually based business entity.
D. a method of conducting business.
The UCC will permit an incomplete or slightly ambiguous contract to be enforced using
each of the following criteria except:
A. past commercial conduct.
B. industry standards or norms.
C. judicial input of any terms necessary to maintain fairness.
D. correspondence or verbal exchanges between the parties.
Which of the following is rarely awarded in contract cases?
A. consequential damages
B. compensatory damages
C. punitive damages
D. liquidated damages
Antitrust laws designed to combat the problem of monopolization are known as:
A. horizontal restraints.
B. structural-offense laws.
C. rules of reason.
D. consent orders.
Generally, tort law is governed by:
A. state statutory law.
B. state common law.
C. federal statutory law.
D. constitutional law.
Incidental beneficiaries are known about when the contract is entered into.
Brent has opened a fruit and vegetable business named Brent’s Country Stand near an
affluent suburban neighborhood. After six months Brent wishes to raise capital for
expansion, so he offers a number of his customers the following deal: If the individual
gives Brent $10,000, Brent will provide a promissory note, payable in five years with
full repayment of the principal and a 10 percent interest rate of return. Brent’s Country
Stand is the maker of the notes, and about 10 customers have purchased these notes. Do
these promissory notes qualify as securities? Why or why not?
One who agrees to act and is authorized to act on behalf of another, a principal, to
legally bind the principal in particular business transactions with third parties pursuant
to an agency relationship is the ___________.
Name and discuss the four sources of administrative law.
What does the corporate opportunity doctrine state, and what factors does the court
examine to determine whether an opportunity belongs to a corporation?
Federal laws regulating the selling of equity in limited partnerships through
broker-dealer contracts are known as ________ laws.
Manny, Moe, and Jack are hunters. In 1990 they discovered what appeared to be a
deserted hunting lodge in the woods. The lodge had no indoor plumbing, no running
water, and no heating system other than a fireplace. The building is a 1-mile hike from
the nearest road. Every year since 1990, they have returned to the lodge and used it as a
base during the deer and elk hunting seasons that occur in the fall and winter months.
They spend a total of six weeks a year using the lodge. They have cleaned the place up,
cut and stacked firewood, and even stored clothing inside when they weren’t there. The
owner of the lodge has noticed the stacked firewood but hasn’t traveled to the lodge
during hunting season to find out who is using the property even though he is disturbed
that the property is being used without his permission. After the statutory period has
run, have Manny, Moe, and Jack acquired title to the property?
The loss of marital relations and spousal companionship is called loss of ______.
The right of a state to protect its citizenry is called its _______.
A person who performs preincorporation duties on behalf of the forming corporation is
called a _______.
Discuss the differences between the common law and civil law with regard to precedent
and the court’s right to establish new law.
If terms are left open in a sales contract, the UCC will complete the contract by
inserting ________ to make the contract enforceable.
Veggy Time Inc., is a distributor of canned vegetables. It has been dealing with Fred
Farmer for 10 years, purchasing Fred’s entire corn crop. Fred’s farm is so large and
productive that Veggy Time has exclusively bought all of its corn from Fred alone.
Once again it has entered into a contract with Fred to purchase his entire 2015 crop and
has no other corn sellers under contract. For the past 10 years, Fred has delivered
100,000 bushels of corn to Veggy Time. Unfortunately, due to an extraordinary amount
of rain, Fred’s fields are now flooded and most of his crop is destroyed. In 2015, Fred
can deliver only 10,000 bushels, and Veggy Time is about to suffer a huge loss. Does
Veggy Time have any rights against Fred to recover for its losses? What could Veggy
Time do to mitigate its damages?
What are the categories of contracts in the following scenario?
An avid skier, Dr. Pearson decides to purchase a new pair of skis. He goes to a local ski
shop and is assisted by the shop’s owner as he looks at several pairs. He really likes a
pair that costs $1,085, the most expensive set in the store, and says he will buy them if
the owner will include bindings. The owner agrees and prints an order form with
instructions to the shop staff for fitting the skis with bindings. Dr. Pearson pays for the
skis and collects his receipt. The shop staff prepares the skis, and Dr. Pearson returns
the following week to pick them up, ready to hit the slopes.
Describe the probable cause standard used for administrative warrants.
Language such as “provided that” or “unless” in a contract that triggers a performance
obligation is called a _______.
A piece of personal property affixed to real property is called a ______.
Evidence that stems from the original evidence is called ________ evidence.
Olivia works as an advertising executive for a large public relations firm in New York.
Her boss gives her tickets to attend a formal event in Washington, D.C., that will be
attended by many of the firm’s clients. He expects her to represent the firm and
generally solidify client relations through her attendance. While mingling with the
attendees, she slips on a spilled drink and is severely injured in the fall. If Olivia files
for workers’ compensation, will she be eligible for benefits?