Judicial review is the process by which courts review governmental action to determine
whether such actions conform to the U.S. Constitution.
a. True
b. False
Death or insanity of either the offeror or the offeree ordinarily terminates the offer.
a. True
b. False
The courts readily enforce a covenant not to compete during the period of employment.
a. True
b. False
The Lujan v. Defenders of Wildlife case involved:
a. the doctrine of standing.
b. the issue of whether an agency action violated the Administrative Procedure Act.
c. interpretation of an administrative regulation.
d. enforcement action on the part of an agency and whether the demand for information
was sufficiently specific and not unreasonably burdensome.
With respect to the voting rights of shareholders, unless the articles of incorporation
provide otherwise, a shareholder is entitled to:
a. vote only at annual shareholder meetings.
b. one vote for every two shares of stock owned.
c. vote only in person and not by proxy.
d. vote at annual and special shareholder meetings with one vote for each share of stock
he owns.
A goal of the EU is to promote progress by establishing an economic and monetary
union.
a. True
b. False
David makes and delivers a promissory note for $500 to the order of Kerry, who
indorses the note and delivers it to Stan in payment of an outstanding debt Kerry owes
him. Stan has given value as far as the Code requirements for a holder in due course.
a. True
b. False
Under the Second Restatement, all third parties that were aware of the apparent
authority of the agent must have actual and not constructive notice to terminate the
agent’s apparent authority.
a. True
b. False
The UCC permits a seller to limit or modify the buyers remedies for breach of
warranty:
a. in all cases.
b. except for unconscionable limitations or exclusions of consequential damages.
c. in no cases, as this would be contrary to public policy.
d. except when the seller seeks to limit the time within which the warranty is effective.
Expain whether each of the following would be negotiable or not negotiable.
a. A check with the amount payable omitted.
b. A draft for 3,000 bushels of corn.
c. A check written in pencil on a paper towel.
d. A note stating that it is secured by a mortgage on a specified parcel of land.
e. A note stating “IOU fifty dollars.”
There are no defenses available for strict liability; it is imposed absolutely.
a. True
b. False
The “corporate veil” is most likely to be pierced in the case of closely held corporations
and in parent-subsidiary relationships.
a. True
b. False
The RUPA requires a central filing of a statement of partnership authority specifying the
names of partners authorized to execute instruments transferring real property held in
the name of the partnership.
a. True
b. False
Under which of the following circumstances would a court be unlikely to enforce the
illegal contract?
a. Where the aggrieved party was unaware of the illegality.
b. Where a party withdraws from an illegal agreement prior to performance.
c. Where the agreement is with an unlicensed attorney.
d. Where one of the parties is less at fault than the other.
A drawee banks refusal to certify a check constitutes dishonor of the instrument.
a. True
b. False
A title search involves examining prior transfers of and encumbrances to the property.
a. True
b. False
Matt sells bikes at a local discount store. To encourage Bob to buy a more expensive
model than he originally contemplated, Matt tells Bob, “This is the most awesome bike
money can buy at this price. You can expect lots of riding pleasure.” Based on this
statement Bob buys the bike. A week later, before his bike is fully paid for, Bob sees a
far superior bike for a lower price at another store. Bob can avoid his contract with Matt
because of fraudulent misrepresentation.
a. True
b. False
At its discretion, a court of equity may grant an injunction against breach of a
contractual duty when damages for a breach would be inadequate.
a. True
b. False
Constructive trusts are generally found where the creator clearly intended a trust to be
formed.
a. True
b. False
Under the common law, a landlord is under an obligation to provide or maintain the
premises in a livable condition.
a. True
b. False
In commercial speech cases, the U.S. Supreme Court requires that any restriction on
such speech must be the least restrictive possible to achieve a substantial governmental
interest.
a. True
b. False
Both the Code and the Restatement provide that an authorized means of accepting an
offer is any reasonable means of communication.
a. True
b. False
A person admitted into an existing partnership is personally liable for all of the
obligations of the partnership arising before his admission.
a. True
b. False
Andrew agrees to paint Rosalene’s house for $500. Two days after he starts the job, he
decides that $500 isn’t enough money. He refuses to finish the job, unless Rosalene
agrees to pay him $100 more. What principle applies to this fact situation?
a. The acceptance of additional money to settle a disputed claim is supported by
consideration.
b. A past obligation is sufficient consideration for a new promise.
c. Andrew was already obligated to paint the house. He gives no additional
consideration in return for Rosalene’s promise to pay more money.
d. Rosalene has made a promise in exchange for a forbearance.
In a sex discrimination case under the Equal Protection Clause, the courts apply the
strict scrutiny standard of review.
a. True
b. False
A basic element of fraud is a false representation or a misrepresentation.
a. True
b. False
The tort of appropriation protects a person’s exclusive right to exploit the value of her
identity.
a. True
b. False
Permissible lenders expenses, which would not be considered in determining the rate of
interest under usury statutes, include all but which of the following?
a. Cost of title examination.
b. Reasonable cost of drawing up the necessary documents.
c. A charge to the borrower of $500 to investigate the borrowers credit, when it actually
cost the lender $75.
d. All of these charges would be considered in determining the rate of interest under
usury statutes.
Albert breaches a contract with Bill in a state where the statute of limitations is six
years. Seven years later Bill wants to sue. The contract is unenforceable, but it is neither
void nor voidable.
a. True
b. False
In order to be sufficient, an agreement required to be written under the statute of frauds
must be signed at the bottom and notarized.
a. True
b. False
A corporation is considered a citizen:
a. of the state in which it has its principal office, for the purpose of determining
diversity of citizenship.
b. of the state of its incorporation, for the purpose of determining diversity of
citizenship.
c. in both of these situations.
d. in neither of these situations.
The Revised Act authorizes shareholders in closely held corporations to adopt
shareholder agreements that depart from statutory norms by altering the governance of
the corporation. These agreements:
a. are effective if adopted by a majority of the shareholders.
b. are valid for the life of the corporation unless a new agreement is reached.
c. are binding on shareholders, the state, creditors, and other third parties.
d. terminate automatically if the corporations shares are traded publicly.
The Vietnam Veterans Readjustment Act requires:
a. all Vietnam veterans to register with the EEOC.
b. all firms receiving federal contracts to engage in affirmative action for disabled and
Vietnam-era veterans.
c. all firms to engage in affirmative action for Vietnam-era veterans.
d. firms having at least $10,000 in federal contracts to engage in affirmative action for
disabled and Vietnam-era veterans.