Assignments of future wages are subject to statutes that sometimes prohibit them
altogether.
a. True
b. False
The doctrine of necessaries applies in the same way to minors and mental incompetents.
a. True
b. False
The UPA marshaling of assets doctrine is abolished by the RUPA.
a. True
b. False
Specific performance is an equitable remedy which seeks to compel the party in breach
to perform the contract according to its terms.
a. True
b. False
If the buyer received goods on credit while he was insolvent by misrepresenting his
solvency in writing within three months prior to deliver of the goods, the seller is able
to reclaim the goods only if the seller makes a demand on the buyer within ten days
after the buyer has received the goods.
a. True
b. False
Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory
security interest in household goods if the interest is not a purchase money security
interest.
a. True
b. False
Security interests, defined by the Code as interests in personal property or fixtures that
ensure payment or performance of obligations, are governed by Article 6 of the UCC.
a. True
b. False
Claudia hires Greg to plant a tree in her yard. Greg discovers a shoebox buried in the
ground. Greg owns the shoebox and its contents since he is the finder.
a. True
b. False
a. What is the difference between equal pay for equal work and equal pay for
comparable worth?
b. How is it possible to establish a claim for equal pay for comparable worth if the jobs
are different jobs?
c. Is equal pay for comparable worth covered by the federal employment discrimination
laws? Explain.
If Randall and Gale agree to an assignment of Randalls contract with Doug:
a. there is no ambiguity; this is an assignment of rights only.
b. there is no ambiguity; this is a delegation of duties only.
c. under both the Code and the Restatement, unless circumstances or language indicate
the contrary, an assignment of “the contract means the assignment of rights and a
delegation of duties.
d. the language is ambiguous and, therefore, the assignment is unenforceable.
Mala in se crimes are those crimes that are not morally wrong but are declared
wrongful by the legislature.
a. True
b. False
Which of the following is a warranty of the transferor?
a. Transferor has no knowledge of any insolvency proceedings with respect to the
maker, acceptor, or drawer of an unaccepted instrument.
b. Transferor warrants that all signatures are authentic and authorized.
c. Transferor warrants that he is entitled to enforce the instrument.
d. All of these are warranties of the transferor.
A limited partnership must continuously maintain an office at which basic
organizational and financial records are kept.
a. True
b. False
McDonald’s Corporation grants to Bob a franchise in which he will be the only one who
has the right to sell McDonald’s products in his small hometown. Under the Sherman
Act:
a. this is per se illegal.
b. there is no violation.
c. this will be tested under the rule of reason.
d. there is a tying arrangement.
A consolidation:
a. has precisely the same result as a merger.
b. is the most typical form of business combination used today.
c. is always illegal (in contrast to mergers, which are legal under some state laws).
d. requires the assent of both corporations board of directors and shareholders.
Situational ethics, unlike ethical relativism, judges a person’s ethics, but first looks at
the decision or act from the perspective of the actor.
a. True
b. False
Albert found a stone in his yard and took it to Bob, a jeweler, for evaluation. Bob wasn’t
sure as to the nature of the stone, but told Albert he thought it was a topaz. Bob then
offered to buy the stone for $25 and Albert agreed. Later Albert found out the stone was
an uncut diamond worth about $700. The sales contract:
a. is a valid contract that should be enforced by the law, because neither party knew the
exact nature of the stone at the time of the sale.
b. can be voided based upon fraud in the execution.
c. can be voided based upon fraudulent misrepresentation.
d. can be voided based upon mistake as to the identity of the subject matter.
Which of the following are remedies for violation of the Americans with Disabilities
Act (ADA)?
a. Injunctive relief.
b. Reinstatement with back pay.
c. Compensatory and punitive damages.
d. All of these.
T-J Computer Company has developed a new and innovative magazine and television
ad campaign that it would like to protect from use by its competitors. T-J may copyright
its magazine and television ads.
a. True
b. False
Under the Revised Act, if the charter simply states that the corporation elects to have
preemptive rights, the shareholders have no preemptive rights with respect to:
a. shares issued as compensation to directors, officers, and employees.
b. shares issued within six months of incorporation.
c. the corporation’s unissued shares.
d. Shares issued as compensation to directors, officers, and also employees andshares
issued within six months of incorporation.
Which of the following is correct with regard to duress?
a. It always renders a contract void.
b. Duress by improper threats or acts is the more common form of duress.
c. The wrongful act must be either a crime or a tort in order to be considered wrongful.
d. All of these.
Which of the following would be a bearer instrument?
a. A check payable to “cash.”
b. A check that says “pay to the order of John Jones.”
c. A check that says “pay to the order of bearer.”
d. A check payable to “cash” or acheck that says “pay to the order of bearer.”
The RMBCA has been adopted, in whole or in part, by most states.
a. True
b. False
The death or bankruptcy of a limited partner will dissolve the partnership.
a. True
b. False
A seller has breached his contract by providing unfit seed for the planting of beans.
Damages would include:
a. the lost profits from a contract to sell the bean crop.
b. the cost of keeping the defective seed in a storeroom.
c. the cost of replacement seed.
d. All of these.
Assume an offeree mails a rejection to the offeror on November 1. This rejection arrives
at the offeror’s place of business on November 5. In the meantime, on November 4, the
offeree sends the offeror an acceptance that arrives November 6. Which of the
following statements correctly describes the situation?
a. There was no contract.
b. There was a contract since the acceptance was mailed prior to the time the rejection
was received.
c. There was no contract because the rejection was mailed first.
d. There was no contract because the acceptance was mailed more than three days
subsequent to the rejection.
Which of the following is correct with respect to “finance leases”?
a. A finance lease generally involves four parties.
b. Finance leases are governed by the Truth in Lending Act rather than the UCC.
c. The finance lessor functions as a source of credit.
d. All of these are correct.
A collection agency may not personally contact the debtor if the debtor has engaged a
lawyer to represent him.
a. True
b. False
After an assignment, only the assignee has a right to the obligor’s performance.
a. True
b. False
How does the due process clause of the Fourteenth Amendment differ from the due
process clause of the Fifth Amendment?
a. The Fourteenth Amendment clause protects individuals from violations of their rights
by state governments; the Fifth Amendment protects individuals from violations of their
rights by the federal government.
b. The Fourteenth Amendment clause guarantees both substantive and procedural due
process but the Fifth Amendment clause does not.
c. The Fourteenth Amendment clause protects individuals against violation of their
rights by private individuals as well as the government.
d. The Fourteenth Amendment clause requires the application of strict scrutiny in all
cases.
The purpose of the statute of frauds is to prevent the performance of oral contracts.
a. True
b. False
Ellen’s driveway is actually on Richard’s land, but in 20 years nobody has ever said
anything to Ellen about it. When Richard sells his house, a survey shows the problem
and the new owner demands that Ellen abandons use of the driveway. Will she have to
move her driveway?
a. Yes, if she does not actually own the land.
b. Yes, since it is not in her deed.
c. Not if she used it continuously.
d. Not if she got permission from Richard.