Under the general rule of the Third Restatement, death of a principal terminates all
authority of an agent, including apparent authority, even though no notice is given to
third parties.
a. True
b. False
Brian makes a material misrepresentation of fact regarding his horse to Rosalind while
out riding one day. Later that day, Rosalind makes an offer to buy the horse which Brian
accepts, without correcting his earlier misrepresentation of fact. In this case:
a. Brian may avoid the contract.
b. Rosalind may avoid the contract.
c. either or both Brian or Rosalind may avoid the contract.
d. neither Brian nor Rosalind may avoid the contract.
NEPA requires that the EIS contain:
a. an analysis of the relationship between local short-term uses of the environment and
the maintenance and enhancement of long-term productivity.
b. reversible and retrievable commitments of resources involved.
c. only a brief outline of the adverse environmental effects of a proposed action.
d. All of these.
The UCC states that an instrument fulfills the requirements of being payable to bearer if
it:
a. states it is payable to bearer or the order of bearer.
b. does not state a payee.
c. states it is payable to “cash” or to the order of “cash.”
d. All of these.
A restrictive covenant stating that a house cannot be sold to someone who is not of the
Caucasian race will be upheld by the courts.
a. True
b. False
Which of the following would not be a promise statutorily made enforceable without
consideration?
a. Hawkins, in good faith, changes the quantity of square yards of carpet ordered from
Grant Mills.
b. Jones promises to pay his cousins past-due cell phone bill.
c. Dodds signs and delivers a waiver of a claim arising out of a breach of contract by
Keys.
d. A signed, written offer by Marcum Jewelers to sell four dozen 18 gold chains to the
Alpha Sorority for $480 within the next 30 days.
Which of the following is true with regard to securities regulation in foreign markets?
a. Anti-fraud provisions apply where there is conduct in the U.S. relating to a violation
of the federal securities laws.
b. Foreign issuers who issue securities must register them in the U.S. unless an
exemption is available.
c. No specific regulations are allowed because of the act of state of doctrine.
d. None of these are true.
Under the United States legal system, guilt is never presumed by the court.
a. True
b. False
The Fifth and Fourteenth Amendments prohibit the federal and state governments,
respectively, from depriving any person of life, liberty, or property without due process
of law.
a. True
b. False
Which of the following is not a principal objective of tort law?
a. To compensate persons who sustain harm or loss resulting from another’s conduct.
b. To punish the person who committed the tort.
c. To place the cost of compensating victims only on those parties who should bear it.
d. To prevent future harms and losses.
Which of the following is NOT true concerning the requirements for an effective
assignment?
a. The assignment must be voluntary.
b. Consideration is required.
c. There must be an intention to make the assignee the owner of the right.
d. The assignment may be either written or oral.
A defense to an action based on material omissions and untrue statements contained in a
registration statement is:
a. innocent mistake.
b. due diligence.
c. constructive disclosure.
d. reasonable diligence.
The 1933 Securities Act differs from the 1934 Act in that the former deals with trading
in stock that has already been issued and the latter has to do with the issuance of
securities.
a. True
b. False
The various forms of MNE include:
a. NASDAZ.
b. NFTRA.
c. EU.
d. Wholly owned subsidiaries.
Tim and his friend are playing catch in the back yard when Tim suddenly throws the
ball over the fence into the neighbor’s yard where it breaks the window. This is trespass
to real property, even if Tim himself does not go onto the property to get the ball.
a. True
b. False
The Interstate Land Sales Full Disclosure Act has been repealed because it was no
longer needed.
a. True
b. False
If a contract does not comply with the statute of frauds, it is void.
a. True
b. False
Under the CISG, if the buyer fails to perform contractual obligations, the seller may
require the buyer to:
a. pay the price.
b. take delivery.
c. perform the contractual obligations.
d. All of these.
The National Conference of Commissioners on Uniform State Laws:
a. was created by President Bill Clinton to study and report on the Uniform Commercial
Code.
b. is another name for the American Law Institute.
c. has drafted only five uniform laws: the UCC, the Uniform Partnership Act, the
Uniform Limited Partnership Act, the Uniform Probate Code, and the Model Business
Corporation Act.
d. has drafted over 250 uniform laws.
To obtain relief for negligent or innocent misrepresentation, the elements of fraud must
be present but the misrepresentation need not be material.
a. True
b. False
Oral warranties made before the execution of a written agreement containing an express
disclaimer are subject to the parol evidence rule.
a. True
b. False
By the operation of law, the occurrence of certain events will automatically terminate an
agency relationship.
a. True
b. False
Federal courts have exclusive jurisdiction over bankruptcy, patent, trademark, and
copyright cases.
a. True
b. False
To help sell the product, a book publisher used a well-known commentators name and
her quote on the back book jacket of a new release without the commentators
knowledge or permission. No tort was involved since there was no injury to anyone.
a. True
b. False
Alimony and support payments owed to the debtor who files bankruptcy are part of the
bankruptcy estate that can be distributed to the debtor’s creditors for the payment of
allowed claims filed with the bankruptcy court.
a. True
b. False
In the case of Hochster v. De La Tour the plaintiff was allowed to treat the repudiation
by De La Tour as breach of contract and immediately bring suit.
a. True
b. False
CERCLA is an act that:
a. Regulates current and future generation, transportation, and disposal of hazardous
waste.
b. Provides limited authority for the cleanup of inactive and abandoned hazardous waste
sites.
c. Requires the federal government to establish a National Contingency Plan.
d. Bothregulates current and future generation, transportation, and disposal of
hazardous waste and alsoprovides limited authority for the cleanup of inactive and
abandoned hazardous waste sites.
An agreement between a manufacturer and a wholesaler is horizontal.
a. True
b. False
The definition of commercial reasonableness as used in contract law includes:
a. the business judgment of expert business managers.
b. that the practices customary in the type of transaction involved be used as a standard.
c. the requirements to develop creative and innovative solutions never before used in a
particular industry.
d. None of these.
A party delegating his duty to a third party is known as a delegator.
a. True
b. False
The withdrawal of a partner in a partnership at will may be either a rightful or wrongful
dissociation.
a. True
b. False
The court in Furlong v. Alpha Chi Omega Sorority held that:
a. the UCC did not apply to this situation.
b. the design specifications were part of the basis of the bargain and as such became an
express warranty.
c. rejection of the goods was not rightful even though the sorority seasonably notified
the seller within a reasonable time since notice was by phone.
d. the law required the sorority to accept Furlongs offer of compromise.
All but which of the following is true about a delegation of duties?
a. When the delegatee assumes the delegated duty, both the delegator and the delegatee
are liable for performance of the contractual duty to the obligee.
b. Contractual duties are generally delegable.
c. The courts will examine an assignment more closely than a delegation.
d. A delegation will not be permitted if the nature of the duties are personal in that the
obligee has a substantial interest in having the delegator perform the contract.