Two years of nonuse raises a presumption of abandonment and loss of a federally
protected trademark.
a. True
b. False
The Family and Medical Leave Act:
a. applies to private employers with 50 or more employees.
b. does not apply to governmental employers.
c. allows, during a twelve-month period, up to sixteen weeks of leave for childbirth,
adoption, or serious health conditions of a spouse, child, or parent.
d. requires that the employer pay at least 50 percent of the employees wages and
benefits during the leave period..
The privilege to play tennis and socialize at the Capital City Country Club (CCCC) is
obtained through application, references, resumes, and fees. Steven and Chanel want to
assign the remaining 4 years of their 5-year membership to Charles and Prissy so that
Steven and Chanel may join the posh Silver Hawk Tennis and Polo Club. CCCC sues to
enjoin Steven and Chanel from assigning their membership. CCCC will most probably:
a. not prevail because all contract rights are assignable.
b. prevail because the parties intended the contract to be personal and non-assignable.
c. prevail because assigning the membership contract would violate public policy.
d. None of these.
By holding a knife to his back, Ed compelled Sean to sign a contract advantageous to
Ed. This contract was entered under:
a. physical duress.
b. improper threats.
c. undue influence.
d. false representation.
Under the Commerce Clause, any state statute that affects interstate commerce is
unconstitutional.
a. True
b. False
Under the Americans with Disabilities Act:
a. only governmental employees are covered.
b. punitive and compensatory damages are not recoverable.
c. an employer may not use tests that screen out workers with disabilities.
d. punitive damages for intentional discrimination are subject to a ceiling depending on
company size.
In the case of Speelman v. Pascal, the court held that:
a. a gratuitous assignment is terminated by the assignor’s death, even if the assignor
made an effective delivery of the assignment prior to his death.
b. assignments of rights to sums that are expected to become due to the assignor are
enforceable.
c. assignments cannot be made of sums that are not presently due but are expected to
become due in the future.
d. personal contracts are not assignable.
Sam is George’s agent. George decides to fire Sam. Mel is an old customer of George’s
and he has dealt with Sam for over 20 years. Ellie is a prospective customer that Sam
has spoken with on numerous occasions in his capacity as George’s agent, and George
was aware of the preliminary negotiations. Mel orders goods from Sam after Sam has
been fired but Mel has no knowledge of the firing. Later, Sam takes an order from Ellie,
who does not know of the firing. Using the rules of the Second Restatement, which of
the following statements would apply to this scenario?
a. George will be liable for the contract with Mel.
b. George will not be liable on the contract with Mel.
c. George will not be liable on the contract with Ellie.
d. George will be liable for the contract with Mel but not liable on the contract with
Ellie
e. George will be not liable for either the contract with Mel or the contract with Ellie
If a debtor defaults on a credit contract, the creditor may:
a. impose a late charge.
b. garnish wages if there has been a court proceeding to enforce collection of a
judgment.
c. declare the entire balance of the debt immediately due and may sue on the debt.
d. All of these.
e. Bothimpose a late charge anddeclare the entire balance of the debt immediately due
and sue on the debt.
Which of the following is an objective of the Treaty on European Union?
a. To create cultural diversity among the member nations to increase tourism.
b. To develop individual national autonomy on justice and home affairs.
c. To promote economic and social progress by creating an area without internal borders
and by establishing an economic and monetary union.
d. None of these are objectives of theTreaty on European Union.
In 2000, Boyd created a trust that would become effective on his death. In the trust
instrument, Boyd specified that all of the income from his stocks and bonds be used for
the benefit of St. John’s Hospital and indicated that his brother Chad should administer
the trust.
a. What kind of trust is this?
b. What is Boyd with relationship to the trust?
c. What is the corpus of the trust?
d. What is Chad with relationship to the trust?
Damages for reliance include expenses for:
a. lost profits.
b. injury to the person.
c. preparing to perform.
d. punishment of the breaching party.
If a person is unable to understand the nature and effect of entering into a contract, he or
she can avoid it.
a. True
b. False
The category of law that creates, defines, and regulates legal rights and obligations is
known as:
a. substantive law.
b. procedural law.
c. Constitutional law.
d. criminal law.
Redemption of shares is not permitted if the corporation:
a. asks for an injunction.
b. would, by that action, reduce total assets below the stated capital amount.
c. has outstanding treasury shares.
d. is likely to be rendered insolvent.
In order to sue for battery, a plaintiff must prove that he or she has received a physical
injury.
a. True
b. False
In the case of Hadley v. Baxendale, the plaintiff was seeking damages for:
a. restitution.
b. lost profits.
c. failure to convey land.
d. failure to specifically perform a contract.
What term is used to describe the creation of a security interest that is enforceable
against the debtor?
a. Attachment.
b. Pledge.
c. Perfection.
d. Lien.
The Consumer Product Safety Commission enforces the:
a. Federal Hazardous Substances Act.
b. Flammable Fabrics Act.
c. Refrigerator Safety Act.
d. All of these.
e. None of these.
The right of exoneration allows the surety to require the principal debtor to pay his
obligation to the creditor.
a. True
b. False
With regard to Article 6 of the Uniform Commercial Code, which of the following is
accurate?
a. The National Conference of Commissioners on Uniform State Laws and the
American Law Institute jointly issued a recommendation stating “that changes in the
business and legal contexts in which sales are conducted have made regulation of bulk
sales necessary.”
b. Nearly all of the states have repealed Article 6 of the UCC.
c. Article 60 is a revision of Article 6.
d. All of these are accurate.
e. None of these are accurate.
a. Ron wants to buy all of the stock of Quagmar, Inc. He approaches the officers and
directors and offers to pay them $200 per share for each of the shares they hold. The
officers and directors agree and then convince the majority of shareholders to sell their
stock for $100 per share. Do the other stockholders have a cause of action against the
officers and directors? Explain.
b. Arthur, Bob, and Clark are three of the five board members of Krescent, Inc. One day
they meet by chance for breakfast and decide to transact some corporate business while
they are all together. If they decide to declare a dividend and to purchase another
building for the corporation at this meeting, will their actions be binding on the
corporation? Explain.
The distinction between a void and voidable title is not important in determining the
rights of good faith purchasers of goods.
a. True
b. False
Title to existing, identified goods can pass whenever the parties agree it will pass.
a. True
b. False
An uncommon but possible way to obtain title to property is by adverse possession.
a. True
b. False
The CISG specifically excludes sales of:
a. goods bought for personal, family, or household use.
b. ships or aircraft.
c. electricity.
d. All of these.
Which of the following is true of state action?
a. It includes any actions of the federal government, but not actions of state
government.
b. It includes any actions of the federal or state government, but not actions of local
government.
c. It includes only certain actions of state governments as set forth in the Constitution.
d. Protections that guard against state action may be extended by statute to apply to
private activity.
An agent may agree to become liable on a contract between a principal and a third party
in all but which of the following ways?
a. Making the contract in the agent’s own name.
b. Co-making the contract with the principal.
c. Disclosing the principal’s name and the agency relationship.
d. Guaranteeing that the principal will perform the contract between the third party and
the principal.
Most zoning ordinances provide that a nonconforming use may be terminated:
a. immediately.
b. after 6 months of the structure’s future useful life.
c. when a nonconforming structure is destroyed or substantially damaged.
d. All of these.
The CISG:
a. does not follow the perfect tender rule.
b. provides that the seller must, in all cases, deliver the goods within a reasonable time
after the conclusion of the contract.
c. provides that in most instances the buyer must pay the contract price before
examining the goods.
d. provides no right of “cure.
A totten trust involves a bank account opened by the settlor of the trust.
a. True
b. False
Courts treat contracts of incompetents and intoxicated persons essentially the same,
except they are stricter with intoxicated persons because of its voluntary nature.
a. True
b. False