An act that is not wrongful or unfair may constitute duress.
a. True
b. False
Checks, when accepted, are said to be certified.
a. True
b. False
The LMRA prohibits the closed shop, although it permits the existence of a union shop
unless state right-to-work laws prohibit them.
a. True
b. False
The U.N. Convention on Contracts for the International Sales of Goods (CISG)
includes provisions relating to which of the following?
a. Interpretation and trade usage.
b. Intellectual property rights.
c. Obligations and remedies of sellers, but not buyers.
d. Sharing of profits.
Natalie, age 17, rented a power washer and while using the machine, she negligently
damaged it beyond repair. Under the majority view, the rental company can
successfully sue Natalie for damages on a tort theory of negligence since it is well
settled that minors are liable for their torts.
a. True
b. False
The Statutory Close Corporation Supplement to the Model and Revised Acts applies
only to corporations having fewer than 100 shareholders that elect statutory close
corporation status.
a. True
b. False
The common law traditionally:
a. restricted competition.
b. held that contracts in restraint of trade are illegal and unenforceable.
c. favored concentrations of economic power in the form of trusts and combinations.
d. All of these.
Sovereign immunity is absolute immunity from the courts of a host country.
a. True
b. False
An agency may impose in its orders sanctions, such as seizing property or revoking a
license.
a. True
b. False
Jack was fired by Bob but decided to try to win back his job as agent by getting a big
new contract. He approached Sharon, a new client, and made a pitch to sell Bob’s
product. Sharon agreed to buy 100. Jack tells Bob. What are the legal consequences?
a. Bob has to hire Jack again and then make the deal.
b. Bob would have to ratify the deal to get the benefit of the contract.
c. Bob would have to negotiate the deal with Sharon himself.
d. Jack would forfeit his commission if Bob took the contract.
By agreement, parties to a contract may discharge each other from performance under a
contract.
a. True
b. False
Discharge relieves the debtor in bankruptcy from liability for all of his debts.
a. True
b. False
Ron says to Mark, “If you design and landscape my front lawn by the time I return from
Paris next month, I will pay you $5,000.” Mark does not respond but has the
landscaping done by the time Ron returns. This is an example of a unilateral contract.
a. True
b. False
Under the Leahy-Smith America Invents Act signed into law in 2011:
a. a patent will be awarded to the first inventor to file an application for the invention.
b. a patent will be awarded to the first person to create an invention.
c. patents granted after January 2012 may be renewed for one additional term.
d. the patent application process will be more complicated, but it will harmonize the
U.S. system with systems commonly used in other countries with which the U.S. trades.
Effective in 2000, a plain English term sheet is required in all tender offers and mergers.
a. True
b. False
Misty wrote a check to Acme for $220. She is discharged from liability on the check if
Acme does not present the check for payment within 30 days after the date the check
was signed.
a. True
b. False
Under the CISG:
a. loss of, but not damage to, the goods after the risk of loss has passed to the buyer
discharges the buyer from the obligation to pay the purchase price.
b. if the sales contract involves the carriage of the goods and the seller is not obligated
to hand them over at a particular destination, risk of loss passes to the buyer when the
goods are handed over to the first carrier.
c. if the sales contract does not involve carriage of the goods, the risk of loss passes to
the buyer when the goods are tendered to him.
d. All of the answers are correct.
A contract to pay for lawn care services costing $1,500 would have to be in writing or
in proper electronic form to be enforceable.
a. True
b. False
Punitive damages are not always awarded as a deterrent in breach of contract cases.
a. True
b. False
The common law “mirror image” rule has been modified by the Code.
a. True
b. False
The antifraud provisions of the 1934 Act would prohibit which of the following?
a. Lying about the value of the firm’s assets to sell stock.
b. Disclosing that the firm has discovered oil on its property in order to sell stock.
c. Telling about the bad health of the CEO in a transaction to purchase stock.
d. Not disclosing the salaries of secretaries of a large firm whose stock is being sold.
An agent is never personally liable for the torts he commits while in the scope of his
employment.
a. True
b. False
For an accountant to be civilly liable under Rule 10b-5, the accountant must have acted
with scienter.
a. True
b. False
Steven has a typed copy of a contract, which he would like to have Thomas sign.
Thomas, who needs glasses to read typing, doesn’t want to sign until he has read the
document, but Steven convinces Thomas to sign it anyway, because it is a ‘standard”
contract for this type of situation. Is the contract which Thomas signed binding upon
him?
a. No, because he did not read it.
b. No, because he entered into it based upon fraud in the execution.
c. Yes, because he has made a unilateral mistake of law.
d. Yes, because he was negligent in not ascertaining its contents.
In Berg v. Traylor, the court found that:
a. a minor may not disaffirm an agreement signed by a parent.
b. the disaffirmance of an agreement by a minor does not operate to terminate the
contractual obligations of the parent who signed the agreement.
c. Craig could not disaffirm the contract to secure personal management services
because it was a contract to provide his and his familys necessaries.
d. Craig, an infant, could not disaffirm in this case because it would cause undue
hardship on the other party.
In the case of Eastman Kodak Co. v. Image Technical Services, Inc. the U.S. Supreme
Court identified the exact conduct, beyond mere possession of monopoly power, which
violates Section 2 of the Sherman Act.
a. True
b. False
A resulting trust depends on a contract or agreement as evidenced by the parties’ acts.
a. True
b. False
Assume a state has a criminal statute that punishes “every person who by himself or his
employee or agent sells anything at short measure. Chris, an employee of Watkins
Fencing, Inc. within that state, intentionally sells wire fence to Nowton Construction at
short measure. Watkins:
a. may be held criminally liable for Chriss act even if Watkins did not authorize this
action.
b. will only be held liable if Chris is a managerial employee.
c. cannot be vicariously liable for Chriss action unless Watkins directed, participated in,
or approved of the act.
d. will not be vicariously liable for Chriss action if it was not authorized because the
element of mental fault is missing on the part of Watkins.
Under the Americans with Disabilities Act (ADA), an employer may not use
qualification standards, tests, or selection criteria that screen out disabled workers
because of business necessity even if they are job related.
a. True
b. False
The criminal intent necessary to commit a crime is known as:
a. actus reus.
b. mens rea.
c. the M’Naghten test.
d. malice aforethought.