The City of Chicago would best be described as which of the following?
a. A corporation formed pursuant to the Model Business Corporation Act.
b. A close corporation.
c. A public corporation.
d. A domestic corporation.
A maker must sign in the lower right-hand corner of the instrument.
a. True
b. False
In an installment contract, if the contract is silent about payment, the Code provides that
the seller may demand the price, if it can be apportioned, for each lot.
a. True
b. False
For the purposes of procedural due process, __________ includes certain entitlements
conferred by government such as social security payments and food stamps.
a. the right of free speech
b. equal protection
c. property
d. liberty
Tim and Steve are roughhousing in Tim’s parents’ front yard when Steve intentionally
pushes Tim onto the neighbor’s property. The trespasser(s) is/are:
a. Tim.
b. Steve.
c. both Tim and Steve.
d. neither Tim nor Steve.
Unanimous written consent of all partners is required to add new limited partners to a
limited partnership, unless the partnership agreement provides otherwise.
a. True
b. False
How does Immanuel Kant’s approach to ethical decision-making differ from that of an
ethical fundamentalist?
a. Kant’s approach is premised on the rationality of human beings and not on principles
handed down from above.
b. Kant’s approach stresses liberty and not justice.
c. Kant’s approach judges society in moral terms by how it distributes goods and
services.
d. Kant’s approach assesses each separate act according to whether it maximizes
pleasure over pain.
Under the UCC, an acceptance must always be identical to an offer for a valid contract
to be formed.
a. True
b. False
Fred is a concert violinist who is scheduled to perform at Carnegie Hall for the first
time. He buys what he is told is a Stradivarius violin from a well-known, reputable
dealer in quality violins, and he pays the going rate for a Stradivarius. He later learns
the violin is an imitation, although it is a good imitation, which fooled even the dealer.
In this case:
a. Fred has made a unilateral mistake and cannot void the contract.
b. the dealer has committed fraud in the inducement.
c. the sale is voidable by the purchaser for mutual mistake.
d. the sale may be rescinded, because the dealer has made a nonfraudulent
misrepresentation.
If Nioma cannot prove a particular element of her loss with reasonable certainty, she is
barred from recovering any of the loss arising from breach of contract by the other
party.
a. True
b. False
Judicial review extends to:
a. legislation.
b. acts of the executive branch.
c. decisions of inferior courts.
d. All of these.
Which of the following is true regarding an agent who is acting for an undisclosed
principal?
a. The agent will bind both himself and the principal on most contracts.
b. The third party will never be bound in a contract with the principal.
c. An undisclosed principal will bind only himself and not the agent.
d. Failure to disclose the name of the principal is a form of fraud.
The Clean Water Act imposes civil penalties but not criminal penalties for violations of
the Act.
a. True
b. False
Once properly declared, the effect of a cash dividend is:
a. it is revocable until actually paid.
b. that it is considered a debt the corporation owes to the shareholders.
c. it imposes personal liability on the directors who vote for it.
d. it imposes personal liability on the shareholders of a solvent corporation.
If the goods or the tender of delivery fail in any respect to conform to the contract, the
buyer may:
a. reject the whole.
b. accept the whole.
c. accept any unit(s) and reject the rest.
d. Any of these.
a. When may the attorney general of a state seek judicial action to dissolve a
corporation?
b. When may the shareholders of a corporation seek to dissolve it?
c. When may the creditors of a corporation seek to dissolve it?
A security interest:
a. is an interest only in personal property to secure payment or performance of an
obligation.
b. is effective against third parties, but not the debtor, when it “attaches.
c. may arise in fixtures under UCC Article 9.
d. in fixtures, even if perfected, will not have priority over a mortgage in the real
property to which the goods are attached.
Adjudication of drawer’s incompetence will not affect the bank’s ability to act with
respect to the drawer until the bank knows and has a reasonable opportunity to act on
this knowledge.
a. True
b. False
Failure to comply with Section 1 or 2 of the Sherman Act:
a. is a felony and can result in imprisonment.
b. may subject an individual to a fine of up to $1 million per violation.
c. may subject a corporation to a fine of $100 million per violation.
d. All of these are true.
Shareholder approval of a fundamental change means a unanimous vote.
a. True
b. False
Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for
$200,000. After mailing the letter, Elmer learns that the farm is actually worth $300,000
and changes his mind about selling. In this case, Elmer:
a. has made a firm offer to Fred which cannot be revoked.
b. can revoke his offer at any time before Fred accepts it, because there is no
consideration to keep it open.
c. must keep the offer open, because this is an option contract.
d. cannot, because of promissory estoppel, revoke his offer to Fred.
TSCA includes provisions that:
a. regulate the manufacture of new chemicals.
b. allow for the registration of pesticides.
c. require that exports be labeled “not registered for use in the United States of
America.”
d. All of these.
Edward, an engineer, is working on a new design for some highly technical equipment
which Martus, Inc. hopes to market within the next five years. The employment
agreement between Edward and Martus states that Edward will not go to work for
another company in the same business for a period of two years after termination of his
employment with Martus, Inc. This agreement is void and unenforceable because,
although Martus is a very specialized company, it would make it difficult for Edward to
find other employment.
a. True
b. False
The fourth Congress approved ten amendments to the U.S. Constitution, now known as
the Bill of Rights, which were adopted on December 15, 1799.
a. True
b. False
Chris was driving a car with defective brakes very slowly down Fifth Avenue looking
for a parking place. Mindy jumped out into the street five feet in front of his car. Chris
could not help but hit her. What is Chris’s best defense to the charge of negligence?
a. Mindy had a mental deficiency.
b. He was not negligent since he did not have a statutory duty to keep his brakes in top
condition.
c. Mindy crossed in the middle of the street, which is against the law.
d. He was lawfully seeking a parking place and did not see her jump out.
Assume that Denmark, a member of the European Community, is contemplating the
enactment of a protective tariff for its fledgling electronics industry due to domestic
political and economic pressures. Assume further that the EC has a tariff that it has also
enacted for all electronics manufacturers within the EC that is considerably lower than
the one that is being proposed in Denmark. The policy behind the lower EC tariff is to
promote freer trade even at the risk of destroying some of the weaker manufacturers in
that organization. In this situation:
a. Denmark could enact the higher tariff since EC members give up no authority to the
organization in regulating trade and business practices.
b. Generally, when EC economic policies conflict with the laws of member nations, EC
law will prevail. Thus, Denmark’s tariff may be illegal.
c. Denmark could petition the United Nations Council of Economic Policy and if it
concurs with Denmark, the EC tariff policy would be overridden.
d. Assuming Denmark is a signatory to GATT, the General Agreement on Tariffs and
Trade, it could retain its higher tariff since the purpose of GATT is to protect domestic
industries by promoting higher tariffs.
An unauthorized alteration of ANY of the material terms in a written contract
discharges the entire contract.
a. True
b. False
Elvis makes an offer to Fred, but before Fred can accept, the state supreme court
decides a case that makes Elvis’s offer illegal. The court’s decision:
a. automatically terminates the offer.
b. has no effect on the offer.
c. acts as a condition on the offer.
d. acts as a rejection of the offer by the offeree.
“Presentment” is necessary within 10 days of the date of issuance of a check.
a. True
b. False
Robbery is a larceny accompanied by force or a threat of force.
a. True
b. False
Article 2A of the UCC affords special treatment for consumer leases.
a. True
b. False
Intellectual property consists of which of the following?
a. Trade secrets.
b. Patents.
c. Trade symbols.
d. All of these are considered intellectual property.
Under the majority rule, the test under the one-year provision of the statute of frauds is
whether it is likely that the contract will be completed within one year.
a. True
b. False
Violation of a statute designed to protect underage, unlicensed drivers, as well as
innocent third parties, from the consequences of juvenile car theft and “joy riding,” by
prohibiting car owners from leaving the keys in their car if the car is unattended, is
likely to be characterized as:
a. negligence per se.
b. res ipsa loquitur.
c. contributory negligence.
d. assumption of risk.
Under the RUPA, a partner in a term partnership who wrongfully dissociates before the
end of a definite term cannot receive payment of a portion of the buyout price before
the expiration of the term.
a. True
b. False