A judge instructs a jury as to the law that applies in a case.
A landlord is usually required to give some period of notice to terminate a periodic
tenancy.
Patent protection begins on the date that a patent is issued.
An integrated contract is a contract with more than one subject or part.
If the purpose of a licensing statute is to protect the public from unlicensed
practitioners, a contract with an unlicensed professional is illegal.
When a check “bounces,” its holder can resubmit the check later, hoping that sufficient
funds will be available.
Generally, a cash deposit is not available for withdrawal until the next business day.
An order stating “I wish you would pay” is sufficient to create a negotiable instrument.
A contract can include a provision stating that no damages can be recovered for certain
types of breaches.
The most common way to discharge a contract is by breach.
A blank indorsement specifies no particular indorsee.
Most advertisements-“this property for sale”-are offers.
The Federal Reserve System acts as a clearinghouse where banks exchange checks.
If a contract condition is not satisfied, the obligations of the contracting parties are
discharged.
An easement can be created by implication.
A financing statement is effective only if it is filed electronically.
A party cannot recover damages for severe emotional distress absent a showing of
physical injury.
Corporations can be good citizens by promoting goals that society deems worthwhile.
A lack or failure of consideration is no defense to payment of a negotiable instrument to
any holder.
A crime can be committed only against persons.
An instrument is not defective simply because it is overdue.
Punitive damages are never awarded in breach of contract actions.
The terms of a shrink-wrap agreement may be enforced in the same way as the terms of
other contracts.
The Americans with Disabilities Act of 1990 defines disabled persons as persons
impaired mentally or physically “in any way.”
A maker is secondarily liable on an instrument.
In a limited partnership, a limited partner is personally liable to the partnership’s
creditors.
Consent is a defense to an allegation of assault, but not battery.
Before a principal can ratify a contract, the agent must withdraw from the deal.
An invitation to submit bids-“how much would you charge to do this work?” -is an
offer.
In considering the scope of an agent’s implied authority, the test is whether the agent
reasonably believed that he or she had the authority.
Most limited liability company statutes have no provisions regarding members’
meetings.
To succeed in a strict product liability suit, an injured plaintiff must show that a
product’s defect was the proximate cause of the injury.
It is not a crime to defraud the public through the use of ads on television.
A court will not pierce the corporate veil of a corporation that is formed merely to
evade an existing legal obligation.
A buyer’s breach of a contract will not usually give the seller the right to cancel the
contract.
In most states, a person must be sixteen years of age to execute a valid will.
The price that a secured party obtains on a sale of collateral is all that the creditor can
recover on the debt.
Flite-Craft Corporation makes and sells aircraft parts. In most states, the minimum
number of directors that must be present before Flite-Craft’s board can transact its
business is
A.all of the directors authorized in the articles or bylaws.
B.a majority of the number authorized in the articles or bylaws.
C.any odd number.
D.one.
Jen makes a gift of a check to Kilroy who takes it in good faith and without notice of
any claim, defense, or defect. With respect to this check, Kilroy is
A.an extraordinary holder in due course.
B.an ordinary check passer.
C.an ordinary holder.
D.an ordinary holder in due course.
Jen is a third party beneficiary under a contract between Kyla and Leo. Kyla and Leo
can modify or rescind their contract without Jen’s consent
A.at any time.
B.at no time.
C.only after Jen’s rights have vested.
D.only before Jen’s rights have vested.
Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for
twenty-four months to use its facilities. Six months later, after reaching the age of
majority, Mica continues to use the club. This act is
A.a disaffirmance.
B.an emancipation.
C.a ratification.
D.a restitution.
In a suit against Sandy, Taylor obtains a remedy. In the U.S. legal system, this remedy
will most likely be
A.an injunction.
B.damages.
C.rescission.
D.specific performance.
Tomato Farms (TF) offers to sell United Grocers, Inc., a boxcar load of tomatoes. The
offer is sent via fax. An acceptance is required urgently. It would be most reasonable for
United to accept via
A.a fax, a letter, or a phone call to TF within two weeks.
B.a fax sent to TF as soon as the offer is received.
C.a letter mailed to TF within two days.
D.a phone call to TF within five business days.
Moby leases from National Theater Corporation a theater in which to stage a series of
concerts. Ollie buys a ticket to the series. What distinguishes Moby, a tenant, from
Ollie, a licensee, is
A.the exclusivity of possession.
B.the quiet enjoyment of rights.
C.the temporary nature of possession.
D.the title to the property.
Peak & Vale Accountants provides other firms with accounting services. Questions of
what is ethical involve the extent to which Peak & Vale has
A.a legal duty beyond those duties mandated by ethics.
B.an ethical duty beyond those duties mandated by law.
C.any duty beyond those mandated by both ethics and the law.
D.any duty when it is uncertain whether a legal duty exists.
Dwayne and Ewell enter into a contract for the design of an addition to Dwayne’s house
for which he agrees to pay Ewell. Ewell transfers his right to payment under the
contract to Flex Construction Company. Flex is
A.a delegatee.
B.an assignee.
C.an obligee.
D.a prohibitee.
Made4U Goods, Inc., asks its employees, many of whom are members of the National
Machinists Union, to apply the utilitarian theory of ethics. This theory does not require
A.a choice among alternatives to produce the maximum societal utility.
B.a determination of whom an action will affect.
C.an assessment of the effects of alternatives on those affected.
D.the acquiring of the means of production by workers.
Iowa enacts a statute that requires a label on a video game to warn parents when “the
range of options available to a player include killing and maiming the image of a human
being.” Gamemakers file a suit against the state to block the statute’s enforcement.
Based on the decision of a California court in a case involving a similar statute, the
court in this case is most likely to rule that the statute
A.extends restrictions on sex-based content to violence in video games.
B.violates the First Amendment’s guarantee of freedom of speech.
C.imposes market-share liability on makers of violent video games.
D.replaces the voluntary rating system currently in use.
Windshield Repair Shop (WRS) promises to pay Vincent $1,000 a week to work for
WRS. Vincent accepts and quits his job with Ultra Glass. WRS fails to provide a job for
Vincent. Vincent has a cause of action based on
A.an illusory promise.
B.a release.
C.past consideration.
D.promissory estoppel.
Greta is a member of Hovercraft LLC. As a member, Greta is
A.a manager or officer, but not an owner.
B.an investor, but not a manager, officer, or owner.
C.an owner.
D.a participant, but not an investor, manager, officer, or owner.
Dino hires Eve to perform at Dino’s Club, but Eve later breaches the agreement to
accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court
will most likely
A.award damages to Dino.
B.cancel Dino and Eve’s contract.
C.order Eve to perform the contract.
D.reform Dino and Eve’s contract.
Mace copies Nick’s book, Off the Beaten Path, in its entirety and sells it to Parkland
Books, Inc., without Nick’s permission. Parkland publishes it under Mace’s name. This
is
A.copyright infringement.
B.fair use.
C.licensing.
D.protected expression.
Quality Products, Inc., files a suit against Retail Sales Corporation. Sid is a witness for
Quality. Tod is a witness for Retail. Quality may direct interrogatories to
A.Retail only.
B.Retail, Sid, or Tod.
C.Sid only.
D.Sid or Tod only.
Superior Company draws a check payable to Ted. Uri makes a note payable to Vital
Finance Corporation. Primarily liable parties include
A.neither Superior nor Uri.
B.Superior and Uri.
C.Superior only.
D.Uri only.
Lia works for Media Marketing Company. Her job includes putting “spin” on the firm’s
successes and failures. In this context, ethics consist of
A.”bad” versus “good” publicity.
B.questions of rightness and wrongness.
C.the firm’s quarterly revenue.
D.whatever is legal.
Seymour borrows $350,000 from Reliable Bank to buy a home. Seymour stops making
payments on the loan ten months later. After the bank repossesses the property securing
the loan but before it is sold, Seymour wants to buy it. This is
A.a deficiency judgment.
B.a reverse mortgage.
C.a violation of the law.
D.the right of redemption.
Dale’s debts are discharged in a liquidation bankruptcy. With respect to Dale’s
prebankruptcy debt, Even Stevens Credit Reporting Agency must automatically report
A.nothing.
B.the debt as “discharged,” except the nondischargeable debt.
C.the debt as “discharged,” including the nondischargeable debt.
D.the debt as “unpaid.”
Sonia manages a Tasty Pastry store for United Food Company. To manage the business,
Sonia’s authority can be implied by
A.an inference from the position Sonia occupies.
B.any inference a reasonable customer or supplier would make.
C.any inference Sonia chooses to make.
D.no inference.
Secure Investments, Inc., a U.S. firm, expands into international markets through a joint
venture. In this situation, Secure owns
A.all of the operation, and its profits and liabilities.
B.all of the operation, and none of its profits and liabilities.
C.none of the operation, and none of its profits and liabilities.
D.part of the operation, and shares its profits and liabilities.
The payment of Frida’s debt to Gianini is guaranteed by Frida’s personal property.
Gianini is
A.a debtor.
B.a secured party.
C.a secured transaction.
D.a security interest.
City Car Company and Dave’s Autos enter into a contract for a sale of motor vehicles.
City assures Dave’s that it has valid title to the vehicles. Under the UCC, a warranty of
title arises
A.automatically in most sales contracts.
B.only if the buyer asks for such a warranty.
C.only if the seller expresses such a warranty.
D.only in conjunction with lease contracts, not sales contracts.
Bea is a shareholder of Candy Confections Corporation. The right to inspect corporate
books and records is
A.held by Bea only if she is a director.
B.held by Bea, without restrictions.
C.held by Bea, with some restrictions.
D.not held by Bea.
Brendan signs a check “pay to the order of City College Bookstore” drawn on his
account in Delta Bank to pay for his current semester’s textbooks. The bookstore
deposits the check in its account in Eagle Bank. Like most checks, this check is
A.a one-party instrument.
B.a four-party instrument.
C.a three-party instrument.
D.a two-party instrument.
Omni Corporation is a Pennsylvania-based firm that does business throughout the
United States. With respect to this circumstance, the UCC has been adopted by, and
applies in,
A.a few of the states.
B.all of the states, in whole or in part.
C.half of the states.
D.none of the states, to date.
Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy
agrees to support as long as Xavier maintains his business license. Yummy’s duty to
perform is
A.absolute.
B.conditional.
C.licentious.
D.operational.
Mary induces Nick to sign a contract by placing a gun to Nick’s head. The contract is
void
A.only if the contract has an illegal purpose.
B.only if the terms are unfair to Nick.
C.under any circumstances.
D.only if the gun was loaded.
Lew, a member of a protected class, applies for a job with Mit-E Construction
Company, but fails Mit-E’s employment test and is not hired. Lew believes that the test
has an unintentionally discriminatory effect. If so, this is
A.desperate-measure discrimination.
B.disparate-impact discrimination.
C.disparate-treatment discrimination.
D.not discrimination.
Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry
does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office
Accounting may recover from Perry
A.compensatory damages.
B.consequential damages.
C.nominal damages.
D.punitive damages.