In the majority of states, in a case of negligence per se, the plaintiff would only have to
prove violation of a statute in order to show negligent conduct.
a. True
b. False
Under the informal rulemaking procedures of the APA, an agency must provide notice
of a proposed rule only if there is a good cause.
a. True
b. False
Classifications based on age and sex are examples of ‘suspect classifications” in the
context of the Equal Protection Clause of the Constitution.
a. True
b. False
An offer can only be communicated by words; conduct cannot constitute an offer.
a. True
b. False
The Code does not label the warranty of title as an implied warranty, despite the fact
that it arises out of the sale and not from the words or conduct of the parties.
a. True
b. False
A misrepresentation is material if:
a. it would likely induce a reasonable person to enter into a transaction.
b. the maker does not know it would likely induce the other party to enter into the
transaction.
c. it is made knowingly.
d. All of these.
Sandra purchases a life insurance policy naming her husband as beneficiary. His rights
as a donee beneficiary vest at the time she purchases the policy, even though the policy
permits her to cancel the policy or change beneficiaries.
a. True
b. False
If Jim, Ken, and Lee each deposit 10,000 bushels of wheat in a grain elevator, they
would own one-third of the mixture by:
a. accession.
b. adverse possession.
c. prescription.
d. confusion.
Jesse purchases Erica’s house and in so doing assumes the mortgage. Which of the
following is true?
a. Only Jesse is personally liable to pay the mortgage.
b. Only Erica is personally liable to pay the mortgage.
c. Erica and Jesse are both personally liable to pay the mortgage.
d. Erica is liable only if Jesse defaults on paying the mortgage.
If it is unclear whether the parties formed a unilateral or bilateral contract, the courts
presume the parties intended a bilateral contract.
a. True
b. False
Tim signs a contract to sell 500 wood pallets for a specified price to Schirmer Industries
to be delivered by September 1. In this case:
a. Tim has a duty to deliver the goods by September 1.
b. Schirmer Industries has a right to receive the goods by September 1.
c. The duties and rights of Tim and Schirmer Industries are correlative.
d. All of these.
Anita, in violation of a specific agreement not to extend credit over $1,000 without the
other partners approval, extends credit of $2,000 to a friend. Anita will be held
personally liable to the partners for any unpaid debt since she violated the duty of
obedience.
a. True
b. False
What standard does a court use in reviewing the factual determinations of an
administrative agency?
a. Whether the agency properly interpreted the applicable law.
b. Whether the conclusions reached are supported by substantial evidence.
c. Whether the agency acted contrary to procedural requirements of the law.
d. Any one of the above, depending on the particular situation.
One common type of restrictive covenant restricts the use of property to residential
purposes.
a. True
b. False
Curtis, a trustee, fraudulently purchases property with trust funds and puts title in his
own name. What type of trust will a court create?
a. Constructive trust.
b. Implied trust.
c. Express trust.
d. Resulting trust.
To create a joint tenancy, the tenants must assume title by the same instrument.
a. True
b. False
“Piercing the corporate veil” will result in personal liability of shareholders.
a. True
b. False
Nell exceeds her authority when making a contract for Denver. If he ratifies the
contract, both Nell and Denver are in the same position as the one they would have
been in had Denver actually authorized the act originally except that Nell is not entitled
to compensation.
a. True
b. False
In a disparate impact case, the Civil Rights Act of 1991 now provides that if an
employer can prove the “business necessity” of a challenged employment practice, the
plaintiff cannot win.
a. True
b. False
Which chapter of the Bankruptcy Act allows for the adjustment of debts of an
individual with regular income?
a. Chapter
b. Chapter
c. Chapter
d. Chapter
Parties that seek to challenge agency action must:
a. have standing.
b. have exhausted their administrative remedies.
c. be a party injured by the agency action.
d. All of the above.
After an amendment to the corporate charter has been approved, it must be filed with
the secretary of state.
a. True
b. False
An administrative agency’s discretion to compel the disclosure of information is subject
to any legal privileges to withhold such information.
a. True
b. False
Identify and describe the following types of wills.
a. Holographic
b. Nuncupative
c. Soldiers’ and sailors’ will
Don asked Karen to marry him and gave her a 1/2-carat diamond engagement ring.
Three months later, Karen broke the engagement because she decided she was not ready
for marriage yet. According to most courts, Don may:
a. not recover the ring because it was a gift.
b. recover the ring because he did not break the engagement and the gift was
conditional.
c. not recover the ring even if the marriage does not take place because gifts cannot be
conditional.
d. not recover the ring unless the reason the marriage was called off was Karens death.
Jessup and Lange are having a dispute regarding some property. They want to have a
binding resolution to their dispute, but they would prefer to have the dispute handled
privately and by someone with special expertise. The best form of dispute resolution for
their problem would be:
a. litigation.
b. arbitration.
c. mediation.
d. a summary jury trial.
The duties of a trustee are:
a. to carry out the purposes of the trust.
b. to act with prudence and care in the administration of the trust.
c. to exercise a high degree of loyalty toward the beneficiary.
d. All of these.
The federal courts and the state courts can never have concurrent jurisdiction over the
same case.
a. True
b. False
A collateral promise is an undertaking to be primarily liable for the principal debtor’s
debt.
a. True
b. False
The Government in the Sunshine Act covers all but which of the following agencies?
a. Consumer Product Safety Commission.
b. Commodity Futures Trading Commission.
c. Environmental Protection Agency.
d. Securities and Exchange Commission.
In the absence of a specific agreement, shares of stock are not freely transferable.
a. True
b. False
Under Alternative A of the Code’s horizontal privity provision, a corporation may bring
a case against the manufacturer of a defective product for breach of the warranty of
merchantability.
a. True
b. False
Tender of delivery requires:
a. only that the seller put and hold goods that conform to the contract at the buyers
disposition.
b. that the goods be made available to the buyer for at least one week if they are not
perishable.
c. that the seller give the buyer reasonable notice of the tender.
d. that tender occur during the buyers normal business hours.