All but which one of the following would be exempt from bankruptcy under the federal
law?
a. $500 received in child support.
b. A $300 cocktail ring.
c. A $200 cashmere sweater.
d. A $10,000 truck.
In the presence of Betty, Ann tells Thomas that Ann is Betty’s agent. In reality, Ann has
no authority. Betty hears the statement, but she says nothing. In reliance, Thomas ships
goods to Betty on Ann’s order. Betty is liable even though no actual authority existed.
a. True
b. False
The author of a creative work does not own the entire copyright.
a. True
b. False
Whether an implied warranty arises out of the circumstances under which the parties
enter into a contract may depend on:
a. the type of contract entered into.
b. the seller’s merchant or non-merchant status.
c. applicability of other statutes.
d. All of these.
e. None of these.
The U.S. Constitution vests power in the branches of government that form a “checks
and balances” system. Those branches of government include:
a. executive.
b. legislative
c. judicial.
d. All of these.
The “bubble concept” is used by the EPA to view an entire plant as one source to
evaluate emissions.
a. True
b. False
The bulk sales portion (Article 6) of the Code applies only to transfers in the ordinary
course of business.
a. True
b. False
The World Bank established the MIGA to eliminate the practice of dumping.
a. True
b. False
Plant patents require which of the following elements?
a. Distinctiveness.
b. Novelty..
c. Nonobviousness.
d. All of these.
The federal government’s authority to govern economic matters flows from the
Commerce Clause.
a. True
b. False
A negotiation may be valid to transfer the instrument even under which of the following
condition(s)?
a. The negotiation is made by an infant.
b. The negotiation is made by a person without capacity.
c. The negotiation is part of an illegal transaction.
d. All of these.
e. None of these.
Amanda ordered fifty personalized sweatshirts from King Manufacturing Company.
After the shirts were specially imprinted, but before they were mailed, Amanda called
King Manufacturing to disavow the contract. The next day the sweatshirts were stolen.
In this case:
a. Amanda must pay the entire purchase price, because she breached the contract.
b. King Manufacturing will have to bear the entire loss, because it had not yet mailed
the shirts.
c. Amanda must bear the entire loss, because the shirts were identified to the contract.
d. King must first seek payment from its insurance carrier, and then collect from
Amanda for any amount not covered by insurance.
Shopville Industries, Inc., a nonconstruction employer of 35 people, is subject to the
Executive Order prohibiting discrimination based on race, sex, religion, or national
origin by federal contractors:
a. only if it has contracts for more than $100,000.
b. only if it has contracts for more than $50,000.
c. regardless of the dollar value of its contracts.
d. under no circumstances since the Executive Order only applies to construction
contractors.
John is a Haitian who has obtained U.S. citizenship. State X passes a law that all
Haitian-born citizens must submit to AIDS testing. The courts will review this law
based on:
a. deferring to the legislature to determine whether such a classification of persons is
constitutionally permissible.
b. clear and convincing evidence that there is no reasonable basis for the legislation.
c. the rational relationship test.
d. the strict scrutiny test.
The person to whom an offer is made is an offeree.
a. True
b. False
The definition of “goods” in the UCC may include timber, minerals, growing crops, or a
building.
a. True
b. False
An environmental impact statement is required by NEPA if federal legislation or action
will have a significant environmental effect.
a. True
b. False
Busby contracts to build a house for Connell. Busby finishes approximately half of the
house and quits. Connell files suit against Busby. Which remedy is not available?
a. Compensatory damages.
b. Specific performance.
c. Reformation.
d. Nominal damages.
Tom’s bank is threatening to repossess his car. Tom’s mother notifies the bank that she
promises to pay the bank if Tom defaults on the loan. This promise must be in writing
or have a sufficient electronic record to be enforceable.
a. True
b. False
Which of the following is necessary to be considered a good faith purchaser?
a. The purchaser must act honestly.
b. The purchaser must give value for the item.
c. The purchaser must take the goods without notice or knowledge of any defect in the
title of the transferor.
d. All of these are necessary.
The United States and a Latin American country signed a treaty whereby the United
States agreed to assist the Latin American country in controlling drug traffic. The
United States, following the treaty, seized 100 square meters of land and bulldozed it,
because it was a suspected haven of drug smuggling. The land in question was in Latin
America, but belonged to an American citizen. Which of the following is correct?
a. The treaty will supersede any general Constitutional rights because the treaty gave
specific authorization for the act.
b. The act was not offensive to the Constitution, because it occurred in Latin America.
c. Constitutional rights apply to people, not to property.
d. Constitutional rights supersede treaties.
Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700. It is to be
delivered to Bill’s home on July 7. Under the perfect tender rule, which one of the
following cases would permit Bill to rightfully reject the goods?
a. Sam delivered an 18-cubic-foot, silver refrigerator on July 7, and Bill calls Sam to
complain.
b. Sam sent an 18-cubic-foot, yellow refrigerator with a small dent in it on July 7. Bill
refuses delivery but never bothers to call Sam.
c. Sam sent his truck to Bill’s home with the 18-cubic-foot, yellow refrigerator on July
7, but Bill was not home.
d. Sam sent 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and
notifies Bill of the defect.
A typical state long-arm statute applies only to nonresident defendants who commit
criminal acts in the state.
a. True
b. False
Which of the following is true with respect to the distribution of assets following
dissolution of a limited partnership?
a. Partners are paid before ex-partners for unpaid distributions.
b. Limited partners who are creditors are paid at the same priority as third-party
creditors of the partnership.
c. The amount limited partners are paid for their partnership interests has no relation to
the proportion in which they share in distributions.
d. Capital contributions are paid before unpaid distributions.
If Connie buys real estate subject to an existing mortgage, she will have to pay the
mortgage if the mortgagor does not.
a. True
b. False
Which of the following is a true statement?
a. A treaty signed by the president and approved by the Senate has the legal force of a
federal statute.
b. A federal statute may supersede a prior treaty.
c. Both of these.
d. Neither of these.
When the buyer breaches a sales contract, if the difference between the contract price
and the market price will not place the seller in as good a position as performance
would have, then the seller may recover the lost profit.
a. True
b. False
An unauthorized signature cannot be ratified by the person whose name appears on the
instrument.
a. True
b. False
a. What is the Magnuson-Moss Warranty Act? What is its purpose?
b. What is a statute of repose? Why have some states adopted such statutes?
Article 9 of the UCC makes ineffective any term in a contract prohibiting the
assignment of a security interest arising out of a sale of any right to payment for goods
sold.
a. True
b. False
In most states, it is not necessary to record a deed for title to pass to the grantee.
a. True
b. False