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Agency is a two-party relationship in which the agent is authorized to act on behalf of
the principal.
The doctrine of stare decisis states that like cases should be decided alike.
The statute of frauds does not cover contracts in which marriage is the consideration.
A partnership does not have the authority to ratify the unauthorized act of partners.
Ordinarily, higher degree of proof of likely competitive injury is required in cases
involving secondary level price discrimination.
The rules promulgated by the Restatement (Second) of Contracts often resemble the
rules created by Article 2 of the UCC.
Under the MBCA, an incorporator may become jointly and severally liable for
preincorporation contracts just by being an incorporator.
In order for an artisan's lien to be valid, the lien holder normally must have possession
of the debtor's property.
Mark, John, and Graham are partners. Mark voluntarily and nonwrongfully leaves the
partnership. However, the partnership has a three-year lease with Green Real Estate Inc.
So long as Mark leaves the partnership, he is no longer liable for the lease agreement.
Under the doctrine of unconscionability, the courts would refuse to grant the equitable
remedy of specific performance for breach of contract if the contract is oppressively
unfair.
If Tom Smith works in the in counsel depart of Supermart Corporation then he will be
considered an employee not a nonemployee agent.
Ordinarily, contracts entered into by mentally impaired people are void, while contracts
entered into by intoxicated people are voidable.
A subagent is an agent of an agent.
A security interest is said to be a property interest in the collateral.
Generally speaking, statements made during judicial proceedings are absolutely
privileged and, therefore, shield against defamation liability.
Unlike the UCC, the CISG requires new consideration to modify a contract.
Mr. Green sneaks into hunting property of Mr. Blue. Mr. Green builds a basic structure
that is hidden from plain site. Ten years later Mr. Green files for title of the property. A
court will reject Mr. Green's assertion of ownership of the property.
Under a tenancy at will, property is leased for an indefinite period with an agreement to
pay rent regularly.
Social security basically is a social compromise.
An easement is a transfer of ownership real property from one person to another.
Under the RUPA, when the dissociated partner has not wrongfully dissociated and there
is no partnership agreement on the issue, he should be paid within 120 days.
In order to facilitate the operation of the board of directors, many tasks and decisions
are delegated to a committee of the board.
In order to create a bailment, the bailor and bailee need not agree in writing to the
existence of the bailment.
An offer is the first step in the contract formation process.
In rem jurisdiction is based only on the fact that property of the defendant is located
within the state.
The federal government has a comprehensive program to fight climate change.
In some states that have eliminated assumption of risk as a separate defense;
assumption of risk reappears as one of the many kinds of fault that a court must weigh
in applying the state's comparative fault defense.
In general, ambiguities in a written agreement are resolved against the party who
drafted the agreement.
The doctrine of certiorari jurisdiction makes it mandatory for the U.S. Supreme Court to
hear appeals from federal and state courts.
A principal can ratify an agent's unauthorized contract even if the third party withdrew
from the contract prior to ratification.
Carl gave his car to be serviced and washed at Harold's carwash. Unknown to either of
them, Danny replaces the engine in the car with a new four-speed transmission. He now
claims that the car belongs to him. Which of the following is true?
A. Carl remains the actual owner, as he always was.
B. Danny has rights over the car since he improved it.
C. The car belongs to Harold because he is the owner of the carwash.
D. Danny can sue both Harold and Carl if they do not pay him.
According to the law, crimes are statutory offenses; this essentially means that:
A. it must be proved that the crime is dangerous or detrimental to society.
B. a behavior is not a crime unless a state legislature has criminalized it.
C. the prevention of crime should include deterrence and rehabilitation.
D. courts may assess punitive damages in order to punish the wrongdoer.
Companion regulations promulgated by EPA and enforced by the Food and Drug
Administration control the amount of pesticide residue that can remain on raw and
processed food intended for human or animal consumption. These regulations establish
what are known as:
A. allowances.
B. permits.
C. tolerances.
D. blocs.
Brilliant Manufacturing is building a new factory. What kind of air pollution control
technology must Brilliant install in its factory according to the Clean Air Act?
A. The best available state-of-the-art technology
B. Technology that its competitors in the industry are using
C. The most cost-efficient technology
D. Technology in line with the local air quality
When a customer deposits a check to her account without an indorsement, then the
bank:
A. puts the sign of the manager under the typed name of the customer.
B. signs the customer's name.
C. stamps the name of the bank on the check to cover for the customer's signature.
D. stamps on it that it was deposited by the customer.
An otherwise valid contract whose enforcement is barred by the applicable contract
statute of limitations is an example of a(n):
A. voidable contract.
B. quasi-contract.
C. bilateral contract.
D. unenforceable contract.
The classic underwriting arrangement is a _____ underwriting.
A. standby
B. sponsorship
C. best efforts
D. firm commitment
After dissolution of a corporation and liquidation of its assets, proceeds of the sale of
assets is distributed in the following order:
A. preferred shareholders, common shareholders, creditors.
B. creditors, preferred shareholders, common shareholders.
C. common shareholders, creditors, preferred shareholders.
D. preferred shareholders, creditors, common shareholders.
The necessary intent for assault is the same as that required for battery, which is to
cause:
A. loss of reputation
B. offensive contact
C. conversion of one's property
D. contractual breach
Which of the following causes dissolution and winding up?
A. A partner's transfer of his transferable partnership interest
B. When the partnership has completed the undertaking for which it was created
C. A creditor's obtaining a charging order
D. The addition of a new partner to the partnership
Which of the following is also known as an implied-in-law condition since they are
imposed by law rather than by agreement of the parties?
A. Condition precedent
B. Express condition
C. Constructive condition
D. Subsequent condition
Under the UCC Secured Transactions Article, for a security interest to attach, the:
A. debtor must agree to the creation of the security interest.
B. creditor must properly file a financing statement.
C. debtor must be denied of all rights in the collateral.
D. creditor must take and hold the collateral.
Where covered and noncovered peril join to cause a loss, and the covered peril plays
the dominant role in such loss, then the policy:
A. will provide coverage, because of the dominant role played by the covered peril.
B. will not provide coverage, because of the presence of the excluded peril.
C. will provide coverage, because loss is sustained by the insured.
D. will not provide coverage, because the insurance is voidable.
In some states if the plaintiff in a negligence action substantially contributes to the harm
at issue, then the plaintiff will not recover. This theory of negligence is called what?
A. Contributory Negligence
B. Premise Liability
C. Criminal Negligence
D. Negligence per se
A(n) _____ is the basic selling document of a security offering registered under the
1933 Act.
A. prospectus
B. investment letter
C. registration statement
D. suitability letter
Which of the following is covered by the statute of frauds?
A. A real estate mortgage
B. A $300 contract for the sale of pencils
C. A contract that can be performed within a week
D. A $100 VCR repair
Which of the following documents is required for a foreign corporation to do intrastate
business in a state?
A. Domicile certificate
B. Certificate of authority
C. Commerce certificate
D. Tax returns certificate
Which of the following prevents the federal government from depriving "any person of
life, liberty, or property, without due process of law"?
A. First Amendment
B. Fifth Amendment
C. Fourteenth Amendment
D. Fifteenth Amendment
When a majority of the directors of a corporation are not independent and the
shareholders bring a derivative action against the directors, the burden of proving that
the Zapata test has been met lies on the:
A. company secretary.
B. secretary of state.
C. corporation.
D. shareholders.
In reference to Section 8 of the Clayton Act, what does the term interlock mean?
A. When the same corporate officers serve in competing corporations
B. When the capital funding a corporation is from a foreign country
C. When a corporation is incorporated by federal government instead of the state
D. When competitors are using the same supplier in the same market
Which of the following is most likely to be classed as an independent contractor rather
than an employee?
A. An assembly line worker
B. A lawyer who works as in-house counsel for a corporation
C. A franchisee of a fast-food chain
D. The president of a corporation
If all or part of the price of goods is payable in real property, then:
A. only the transfer of goods is covered by the law of sales of goods.
B. both the transfer of goods and the real property is covered by the law of real
property.
C. both the transfer of goods and the real property is covered by the law of sales of
goods.
D. only the transfer of the real property is covered by the law of real property.
The original offeree is one who:
A. first makes the offer and determines its terms and conditions.
B. has the legal power to accept an offer and create a contract.
C. hears of the contract indirectly and has an intent to accept.
D. first accepts the additional terms presented by the offeree.
Three days before she was judicially declared mentally incompetent and
institutionalized, Irma bought a $50,000 automobile by cash and took delivery of it.
Which of the following is true about this contract?
A. It is voidable at the discretion of the seller.
B. The contract is voidable due to Irma's institutionalization.
C. The contract cannot be disaffirmed because it is fully executed.
D. Irma ratified the contract by paying the price of the car.
For a principal to be directly liable in a Tort case, the following individual must be at
fault for the injury to the victim:
A. The principal
B. The agent
C. The subagent
D. The incorporator
A "long-arm" statute allows:
A. criminal courts jurisdiction over civil cases.
B. state courts more power than federal ones.
C. court's jurisdiction over out-of-state defendants.
D. appellate courts to hear new cases.
Trisha has been given the responsibility of making an important decision for her firm.
Which of the following actions strengthens the argument that Trisha is a justice
theorist?
A. Trisha chooses the alternative that promises the highest net welfare to society as a
whole.
B. Trisha chooses the alternative that respects the most important human right.
C. Trisha considers whether everyone is getting what he deserves.
D. Trisha determines whether anyone's rights are negatively affected by an alternative.
Bill submits a time card for a non-existent employee. The employer issues the payroll
check. Bill forges the indorsement and negotiates the check to Ted. Which of the
following statements holds true for this situation?
A. The loss from the forged check is borne by the holder in due course.
B. The check cannot be negotiated as it carries the signature of a non-existent person.
C. The employer has the right to refuse payment to Ted.
D. Ted submits the check to the employer and gets the mentioned amount.
Which of the following has been recognized by the courts as a possible justification for
tying agreements?
A. The tying product functions properly only if used with the tied product.
B. The tying product is not available for purchase without the agreement.
C. The tying agreement involves two separate and distinct items.
D. The seller is the market leader in both the tying and tied product categories.
A limited partnership certificate must contain the:
A. partners' shares of profits.
B. signature of each general partner.
C. names of the limited partners.
D. capital contributions of the general partners.
Which of the following characterizes definiteness standards under the common law?
A. Courts are contract enforcers.
B. Contracts need to contain all the terms.
C. Courts should be able to provide "gap fillers" in contracts.
D. Courts can take a "hands-on" approach to contracts.
Tim contracts with Home Dairy to deliver a bottle of milk to Tim's house every day.
Home Dairy assigns Tim's contract to Mother Dairy. Tim is notified of the change and
continues to get his daily bottle of milk. His contract is now with the new dairy. Mother
Dairy is the:
A. assignee.
B. factor.
C. holder in due course.
D. assignor.
An employee cannot sue her employer for a violation of _____.
A. OSHA
B. FLSA
C. ERISA
D. FMLA
_____ imposes liability on underwriters and experts for misstatements or omissions of
material fact in Securities Act registration statements.
A. Section 18 of the Securities Exchange Act of 1934
B. Section 12(a)(2) of the Securities Exchange Act of 1934
C. Section 17(b) of the Securities Act of 1933
D. Section 11 of the Securities Act of 1933
The usual penalty resulting from a final decision against the respondent is a:
A. fine of $20,000.
B. cease-and-desist order.
C. fine of $10,000.
D. consent order.
