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Bart sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11
a.m. on Tuesday, Carla delivers an acceptance to Speedy Mail-to-You Express, Inc., but
due to their error, the letter is not sent out by the company until Wednesday at 8 a.m. At
what time does the law consider the acceptance to be effective?
a. At 10 a.m. on Tuesday.
b. At 11 a.m. on Tuesday.
c. At 8 a.m. on Wednesday.
d. At the time Bart receives the letter.
A(n) __________ is a sudden, unexpected event calling for immediate action, that is
considered when determining whether conduct was reasonable in a negligence lawsuit.
a. res ipsa loquitur.
b. duty to act.
c. emergency.
d. None of these.
The 2005 Act establishes a means test which determines a creditors eligibility for a
priority claim.
a. True
b. False
The legal doctrine upon which Justice Cardozo based his decision in the Palsgraf case
is the doctrine of:
a. res ipsa loquitur.
b. foreseeability.
c. negligence per se.
d. assumption of the risk.
A warranty deed contains an implied warranty of good title and quiet enjoyment of the
land.
a. True
b. False
A motion to dismiss a lawsuit for failure to state a claim is a(n):
a. affirmative defense.
b. demurrer.
c. motion for a default judgment.
d. interrogatory.
One who is in possession of a negotiable instrument that is drawn, issued, or indorsed to
him or to his order or that is indorsed in blank is a(n):
a. bearer.
b. holder.
c. transferor.
d. assignee.
In determining whether a state law unduly burdens interstate commerce, the Court
considers:
a. the extent to which the law discriminates against interstate commerce in favor of
local concerns.
b. only the blanket consideration of whether Congress has already legislated in the
affected subject area.
c. whether the Constitution specifically allows states to regulate that subject matter.
d. only the necessity of the law to the proper functioning of the state.
Edith files a Chapter 7 petition in bankruptcy. She owns the following property: (1) an
automobile valued at $1,800; (2) a homestead valued at $75,000, on which First Bank
holds a mortgage of $60,000; (3) personal jewelry valued at $1,100; and (4) monthly
disability payments of $1,000. Assuming Edith elects to use the exemptions listed in the
Bankruptcy Code, what property may Edith keep?
a. The disability payments only.
b. The disability payments and the homestead only.
c. The disability payments plus the automobile, the homestead, and the jewelry.
d. Nothing. She must sell all of her assets and have the proceeds distributed to the
creditors, and she must turn the disability payments over to the trustee.
The drawer is obligated to pay the draft only if the drawee fails to pay the instrument.
a. True
b. False
An express warranty may consist of a sample.
a. True
b. False
Both design and manufacturing defects can subject a manufacturer or seller to product
liability.
a. True
b. False
Which of the following debts are dischargeable in a Chapter 7 bankruptcy proceeding?
a. A $10,000 judgment that has not yet been executed.
b. Medical expenses of $25,000.
c. Credit card debts of $15,000 from two years ago.
d. All of these are dischargeable.
The Fifth Amendment protects a defendant from double jeopardy.
a. True
b. False
The bankruptcy definition of "insolvency" is a financial condition such that the sum of
one's debts exceeds the sum of all one's property at fair valuation.
a. True
b. False
The First Amendment allows free speech in any and all circumstances.
a. True
b. False
An accommodation party is a direct beneficiary of the value received from lending her
credit on an instrument.
a. True
b. False
Which of the following would be an unconditional promise or order to pay?
a. "I hereby acknowledge my debt to John Jones."
b. "I hereby promise to pay $2,000 to John Jones provided the lawn tractor sold meets
the contractual specifications."
c. "Pay to the order of bearer ten dollars."
d. "IOU fifty dollars."
Pam certified a statement prepared by John, her employee, without checking John's
work. He was never known to be anything but diligent and his integrity had never been
questioned. The audit contained gross misstatements. Pam defends a suit against her
claiming "due diligence." She will:
a. succeed, since she had no reason to believe her employee would lie.
b. succeed, because a reasonable person would have inquired further.
c. fail, because due diligence requires reasonable investigation.
d. fail, because she is automatically liable for her employee's act.
Rhonda is arrested for a misdemeanor that carries a possible five-month prison
sentence. She is entitled to a jury trial.
a. True
b. False
The 2002 amendments to the Revised Act provide for domestication and conversion
into other entities without a merger.
a. True
b. False
To establish a private nuisance, a plaintiff:
a. must show that the defendant has substantially and unreasonably interfered with the
use and enjoyment of the plaintiff's land.
b. must show that in an action for damages in conjunction with private nuisance, the
defendant's conduct was unreasonable.
c. need not show that the interference was unreasonable.
d. need only show that the quiet enjoyment of plaintiff's land was substantially
impacted.
Express contracts and implied in fact contracts:
a. are both genuine contracts.
b. are equally enforceable.
c. are not really contracts.
d. Two of these are true.
Which of the following would NOT be considered to be an example of open-ended
credit?
a. A gasoline credit card.
b. A VISA card.
c. A real estate mortgage.
d. A department store credit card.
The defendant must testify in a criminal proceeding.
a. True
b. False
Stan sends for a law school catalog from Ivory Towers University. According to the
catalog, the law school applications are evaluated on the basis of undergraduate grades,
standardized test scores, and references. Stan, who is a straight-A student, has high test
scores and excellent references, applies and pays the $100 application fee. His
application is rejected. Later he finds out that others with low grades and test scores
were accepted based on their family connections and donations made to the University.
If Stan followed all of the guidelines in the college catalog and paid the required
application fee, then according to the court in Steinberg v. Chicago Medical School:
a. there is not a contract.
b. there is a quasi contract.
c. there is a valid contract; the school bound itself to honor the obligations set forth in
the college catalog.
d. there is a voidable contract.
A persons written statement that he is leaving property "to Margaret in full confidence
and with hope she will take care of Tina is too indefinite to create a trust.
a. True
b. False
The buyer and seller of goods may not simultaneously hold insurable interests in the
goods.
a. True
b. False
Respondeat superior:
a. imposes vicarious liability on the principal.
b. makes a principal liable for the acts of independent contractors.
c. makes a principal liable for the unauthorized acts of employees committed within the
scope of employment.
d. Imposes vicarious liability on the principal and alsomakes a principal liable for the
unauthorized acts of employees committed within the scope of employment.
Equitable remedies result in money awards to the plaintiff.
a. True
b. False
If an act is ultra vires, it is beyond the legal authority of the corporation.
a. True
b. False
A buyers or lessees right to reject nonconforming goods depends on the size or extent of
the breach of the sellers or lessors duty to tender conforming goods.
a. True
b. False
