The most accurate statement regarding appellate courts is:
a. appellate courts often hear new evidence and testimony.
b. appellate courts generally accept the factual findings of the trial court.
c. only the federal court system has appellate courts.
d. appellate courts hear only criminal cases.
In a shipment contract, title and risk of loss pass to the buyer when the goods are
properly tendered at the destination point.
a. True
b. False
The doctrine of preemption is based on the Constitution’s:
a. Commerce Clause.
b. Due Process Clause.
c. Equal Protection Clause.
d. Supremacy Clause.
Jessie is the maker of a $1000 promissory note in favor of Tyler. Tyler subsequently
indorses the note to Ryan by signing just his name. Ryan in turn indorses it to Breanna
by indorsing the back of the note, “Without recourse, Ryan.” Breanna then indorses it to
Liz, the present holder, with a special indorsement.
If the note is dishonored by Jessie after it is properly presented to her for payment by
Liz, then Liz, after giving timely notice to Tyler, Ryan, and Breanna, may collect
payment under signature liability from:
a. Tyler only.
b. Breanna and Tyler only.
c. either Tyler, Ryan, or Breanna.
d. neither Tyler, Ryan, nor Breanna.
Under the Fair Debt Collection Practices Act, a collection company is legally permitted
to:
a. call the debtor between 8 a.m. and 9 p.m.
b. call acquaintances of the debtor to locate the debtor.
c. contact the debtor at work if not prohibited by the employer.
d. All of the above are permissible.
In awarding punitive damages, a court must consider:
a. the reprehensibility of the defendant’s conduct.
b. the ratio between the harm suffered and the award.
c. the difference between the punitive award and any civil penalties used in similar
cases.
d. All of the above.
One of the factors leading courts away from a laissez-faire approach to contract law
was:
a. the movement away from requiring a writing and a seal on contracts.
b. a change in relative bargaining power between parties to contracts.
c. the assumption that promises are not legally significant.
d. the assumption that parties had freedom to contract and would have to live with the
consequences.
A union declares it will be engaging in a partial strike whereby its employees will
alternate between working for a period of time and then walking off the job for an
indefinite time. Thus, employees may work for a few days or only a few hours before
walking off the job again. The employer claims the union does not have the legal right
to engage in a partial strike. Which statement is correct?
a. The employer is correct. The union must either strike or workit cannot alternate
between working and striking.
b. The employer is correct only if the union does not state the specific hours or days
workers will be off the job. The law requires the union to provide the employer with at
least seven days’ notice of when workers will be off the job.
c. The employer is not correct since the NLRA expressly states workers have a right to
engage in a partial strike.
d. Whether the employer is correct depends on state law.
Police Officer Paul apprehends a wanted criminal and then demands the $10,000
reward offered by Crime Stoppers. Which of the following statements is true?
a. Police Officer Paul is not entitled to the reward because past consideration is never
valid consideration.
b. Police Officer Paul is entitled to the reward because he puts his life on the line every
day.
c. Police Officer Paul is not entitled to the reward because he was under a pre-existing
duty to make the arrest.
d. Police Officer Paul is not entitled to the reward but may have an argument under
promissory estoppel.
The United States v. Lopez case demonstrates which of the following?
a. There are no limitations on the federal government’s power pursuant to the Interstate
Commerce Clause.
b. The extensive power of the states to regulate interstate commerce.
c. Limitations on federal power.
d. Gun ownership cannot be regulated.
Title VII of the Civil Rights Act of 1964 applies to employers with any number of
employees, making it illegal to discriminate on the basis of race, color, religion, sex or
national origin.
a. True
b. False
The difference between an inter vivos gift and a gift causa mortis is that the inter vivos
gift is made during the donor’s lifetime and a gift causa mortis is a gift is made after the
donor’s lifetime by the donor’s estate.
a. True
b. False
All the business forms listed below have limited liability except the:
a. limited liability company.
b. general partnership.
c. Subchapter “S” corporation.
d. corporation.
Which of the following is not guaranteed under an implied warranty?
a. The goods are free of hidden security interests or liens.
b. The goods are not subject to a rightful claim by a third party.
c. The goods are merchantable.
d. The goods may be returned for a refund or replaced in the event of any defect.
The prohibition against wrongful discharge prohibits an employer from firing a worker
for a bad reason.
a. True
b. False
The landlord’s duty to provide quiet enjoyment of the premises and the landlord’s duty
to deliver and maintain the premises in a habitable condition are one and the same.
a. True
b. False
In order to constitute a valid gift:
a. the donor must intend to transfer ownership of property immediately.
b. the donee must accept the gift.
c. the donor must deliver the gift property to the donee.
d. All of the above are necessary for a valid gift.
Felicia, an elderly woman, does not speak or read English well. Felicia is a recent
immigrant to this country. A dishonest immigration officer tells Felicia to sign several
documents as being necessary to maintain her legal alien status. Unknown to Felicia,
she signs a promissory note. The immigration officer thereafter sells the note to
Neighborhood Bank, a holder in due course, who goes after Felicia for payment of the
note. Felicia’s defense to the Neighborhood Bank is:
a. fraud in the inducement; a real defense.
b. fraud in the execution; a real defense.
c. unauthorized completion; a personal defense.
d. breach of contract; a real defense.
Reba orders a pair of custom-made cowboy boots, C.O.D. from Home on the Range
Western Wear. When the boots arrive, Reba pays the carrier for the boots, then opens
the package, only to discover that the boots are the wrong snake skin color and three
sizes too big. At this point:
a. she is entitled to inspect the goods after payment (due to the C.O.D. terms) and she
can reject the boots because they are nonconforming.
b. Reba cannot revoke the acceptance, because the wrong color and size of the boots are
not substantial impairments.
c. Home on the Range can allege that Reba did not conduct a proper inspection;
therefore, though Home on the Range must cure, Reba is obligated to pay for the return
of the incorrect boots and the shipment of replacement boots.
d. None of the above.
Common law, like statutory law, is prospective.
a. True
b. False
Which of the following may not be used as collateral within the scope of UCC Article
9?
a. Certificates of deposit.
b. Accounts receivable.
c. Goodwill.
d. A 250-acre farm.
A prospective juror was excused from serving after being questioned by the plaintiff’s
attorney. No reason was given for the rejection. This would be accomplished by the use
of a peremptory challenge.
a. True
b. False
A gambling contract is legal unless it is specifically prohibited by state statute.
a. True
b. False
The executives of Jornaginn Corporation have decided they need to sell 50,000
additional shares of stock to finance their expansion plans. The executives:
a. cannot sell that many shares unless they were authorized initially in the corporate
charter.
b. can sell as many shares as the market will bear.
c. are limited by the number of shares authorized in the corporate charter, but this
number can be increased by amending the charter and paying a fee.
d. can sell the shares only if the shares have a par value which is close to the current
market price.
Crops are considered identified when they are planted.
a. True
b. False
The correct order of payment of claims from the debtor’s estate would be:
a. secured claims, priority claims, unsecured claims.
b. secured claims, unsecured claims, priority claims.
c. priority claims, secured claims, unsecured claims.
d. priority claims, unsecured claims, secured claims.
If a contract is made with a person required by law to hold a license, and the purpose of
the license is protection of the public, the contract made by an unlicensed person will
generally be unenforceable.
a. True
b. False
The Internet was started in the 1960s as a project to link military contractors and
universities. The World Wide Web was created in 1991 as a subnetwork of the Internet.
a. True
b. False
Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms
of a promissory note. The trial ended before it began, with the trial judge granting a
motion for summary judgment in favor of Curtis. Ulhoff has appealed, and the Supreme
Court of Iowa has remanded the case. This means:
a. Curtis automatically wins because he won in the lower court.
b. Ulhoff automatically wins because he lost in the lower court.
c. Neither party wins because the case is being thrown out.
d. We don’t know who wins yet because the case is being returned to the trial court for
additional steps.
Explain the difference between an ISP and a Web host, and discuss whether they are
treated alike under the Communications Decency Act (CDA).