Recovery of damages under Rule 10b-5 requires proof of:
a. reliance on a misstatement or omission.
b. materiality.
c. scienter.
d. connection with the purchase or sale of a security.
e. All of these.
A constitution:
a. restricts powers of government.
b. specifically enumerates certain liberties of the people.
c. establishes governmental structure.
d. All of these.
Under the RUPA, in a term partnership, if within 90 days after any specified cause of
dissolution occurs, fewer than half of the remaining partners express their will to wind
up the partnership business, the partnership will not dissolve.
a. True
b. False
Which equal protection test is applied to cases based on gender and legitimacy?
a. The rational relationship test.
b. The strict scrutiny test.
c. The intermediate test.
d. All of these.
Which of the following can meet the scienter requirement to establish fraud in the
inducement?
a. Actual knowledge.
b. Lack of belief in the statement’s truthfulness.
c. Reckless indifference as to a statement’s truthfulness.
d. All of these meet the requirement.
Under the UCC, a(n) __________ is a sequence of previous conduct between the
parties to an agreement which may be fairly regarded as establishing a common basis of
understanding for interpreting their conduct under the contract.
a. course of dealing
b. usage of trade
c. course of performance
d. extrinsic set of evidence
Under the parol evidence rule, which of the following types of evidence may be used to
vary or contradict the written agreement?
a. Prior oral or written agreements.
b. Contemporaneous oral or written agreements that change the contract.
c. Subsequent oral or written agreements modifying the original agreement.
d. Two of these but not all three.
Section 16(b) of the 1934 Act differs from Rule 10b-5 in that the latter:
a. applies to transfers within 6 months of each other.
b. only applies to officers, directors, and 10% shareholders.
c. requires material inside information.
d. All of these.
Unless one of the parties contractually assumes the risk, the __________ discharges a
contract if supervening circumstances make fulfillment of the purpose which both
parties had in mind impossible.
a. bankruptcy law
b. frustration of purpose doctrine
c. perfect tender rule
d. impossibility of performance doctrine
A court may not dissolve a corporation in a proceeding brought by a shareholder if it is
only established that the acts of the directors are merely oppressive and not destructive.
a. True
b. False
The transfer of personal property involves formalities not required in the transfer of real
property.
a. True
b. False
Barbara put her old clothes in a box in the bedroom of her roommate. The roommate
now owns the clothes, because they are presumed to be a gift.
a. True
b. False
Which of the following would NOT be a merchant under Article 2 of the UCC?
a. The owner of a hardware store which sells paint.
b. A car mechanic who fixes used cars and sells them in his spare time.
c. A person who inherits three speedboats and wants to sell them to buy a car.
d. Two of these are true.
Corporate powers granted by the RMBCA include all but which of the following?
a. To establish profit-sharing plans and other employee benefit plans.
b. To make charitable donations.
c. To be considered a person under the Fourth Amendments search and seizures clause
and the Fifth Amendments self-incrimination clause.
d. To borrow and lend money.
Chapter 3 of the Bankruptcy Code deals with:
a. the meetings of creditors.
b. the officers who administer the case.
c. the administrative powers of the officers who administer the case.
d. All of the above.
Bartow signed a contract to coach baseball for Washington High for a period of three
years. After two years he is offered and accepts an assistant coaching position at State
University. Contract law will not allow Washington High to ask for:
a. specific performance of his contract.
b. payment of compensatory damages.
c. an injunction against coaching at the university.
d. liquidated damages.
A major difference between trespass to personal property and conversion is that the
latter does not require intent to harm whereas trespass does.
a. True
b. False
Howard needs a truck to pull a 2,000-pound trailer. Gordon tells Howard, “My truck
will pull a 2,000 pound trailer with ease.” Relying on Gordon’s statement, Howard buys
the truck, but it will not pull a 2,000-pound trailer. If Gordon did not intend to deceive
and Howard sues for nonfraudulent misrepresentation, he can ask for:
a. punitive damages, but not out-of-pocket damages.
b. out-of-pocket damages, plus consequential damages.
c. out-of-pocket damages plus punitive damages.
d. nominal damages because Howard should have known the capacity of the truck.
Which of the following is NOT correct regarding a limited liability partnership?
a. All of the states authorize them.
b. It is the same as a limited partnership.
c. A registered limited liability partnership is a general partnership that makes a
statutorily required filing.
d. All of these.
To a libertarian, it is unjust for a society to take wealth earned by one citizen and to
distribute it to others who did not earn it.
a. True
b. False
Where a contractual term has more than one possible meaning, it will be interpreted in
favor of the party who supplied the contract.
a. True
b. False
A partner has all but which of the following duties?
a. A duty of faithful service to the best of his ability.
b. A duty to act in accordance with the partnership agreement.
c. A duty not to engage in any other business while a partner.
d. A duty not to acquire for himself a partnership opportunity without the consent of all
the partners.
The various chapters of the Bankruptcy Code are the only options for resolving the
conflict between creditor rights and debtor relief.
a. True
b. False
In equal protection cases involving economic regulation, the courts use the rational
relationship test.
a. True
b. False
Massey Fabrications sells some equipment to Keiser Co., warranting its suitability for
Keisers purpose. The equipment, which is not suitable for Keisers purpose, causes
$5,000 in damage to Keisers property and $12,000 in personal injuries. Keiser can
recover $17,000 in consequential damages.
a. True
b. False
The most common method of perfecting a security interest under Article 9 is filing a
completed financing statement.
a. True
b. False
To be negotiable, an instrument must be in writing.
a. True
b. False
The Civil Rights Act of 1991 provides that victims of sex discrimination no longer face
limits on compensatory and punitive damages.
a. True
b. False
Every registration filed with the SEC is held in confidence until the business permits
disclosure.
a. True
b. False
The designation “TM” or “SM” cannot be used until and unless the mark is registered.
a. True
b. False
An implied in fact contract is formed by conduct.
a. True
b. False
Under the Restatement, if there are successive assignments of the same right:
a. the first assignee to notify the obligor prevails.
b. the latest assignee is usually entitled to the assigned right.
c. a prior assignee is entitled to the assigned right to the exclusion of a subsequent
assignee in most circumstances.
d. a subsequent assignee is entitled to the assigned right unless a prior assignee gave
value and obtains either a judgment against the obligor or a new contract with the
obligor.
The UCC provides that a contract for the sale of goods can be effectively modified
without new consideration, provided the modification is made in good faith and both
parties intend to modify the contract.
a. True
b. False