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Under the federal Bankruptcy Code, the exemption amount for the debtor's personal
residence is:
a. $21,625.
b. $37,100.
c. $50,725
d. $80,300.
Ryan, a minor, contracted to sell his auto to Ed, a 28-year-old. Ryan later refused to
complete the sale. If Ed sues to enforce the contract, Ed will:
a. win because Ryan was the seller.
b. win because minors can only avoid contracts for the sale of land.
c. lose, as the contract is void.
d. lose, because the contract is voidable by Ryan.
Which school of jurisprudence is based on the philosophy that what matters is not what
is written as law, but who enforces the law and by what process?
a. Legal positivism.
b. Natural law.
c. Legal realism.
d. Sovereign selection.
Derek and Abyan were discussing business over lunch when they agreed on the sale of
a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote
the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel
located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the
price of $4,500 per acre. Transfer of title, payment, and possession to take place on May
1, 2011." Abyan signed the napkin. On May 1, 2011, Derek was ready to close the deal
and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for
the price of the land, the most likely result will be:
a. Abyan will win because the writing is not sufficient under the statute of frauds.
b. Derek will win because the writing is sufficient under the statute of frauds.
c. Abyan will win because Derek did not sign the writing.
d. Derek will win because the statute of frauds does not apply to this situation.
The "dormant aspect of the Commerce Clause:
a. is also known as the "negative aspect.
b. means that there are many unused powers still available to the government to
regulate trade between the states.
c. guarantees that Congress has the power to regulate trade with foreign countries that
have not yet developed trade practices with the United States.
d. guarantees that the states have the power, even if unused, to impose regulations
affecting interstate commerce.
The age of majority to contract in all states is 21.
a. True
b. False
The United States has taken a position that legal issues are best resolved by lawsuits
involving parties with conflicting interests presenting their strongest possible case to a
neutral factfinder. Because of this, the legal system in the United States is considered:
a. an adversary system.
b. a conflict system.
c. an alternative dispute resolution system.
d. a mediation system.
Identity theft:
a. is a relatively new crime that was created through use of the Internet.
b. affects about 8 million American victims each year.
c. has slight impact on the victim since consumer law protects owners of credit cards
and limits their loss to $50 if they promptly report the loss of their card.
d. is now addressed by only state statutes.
A 'socially conscious organization is a non-profit organization that pledges to use 10%
of its revenues to benefit environmental or social causes.
a. True
b. False
Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600
pounds of cherries in three equal installments of 200 pounds each. If the first
installment arrives with 5 pounds of spoilage, then Dessert World may:
a. reject the installment shipment because of the perfect tender rule.
b. not reject the installment if those in the food industry expect a small percentage of
spoilage with fresh fruits or vegetables.
c. reject the entire contract.
d. declare a breach and "cover."
The Supreme Court has limited the scope of the "theft of honest services statute to
apply only to situations where employees are taking bribes or kickbacks.
a. True
b. False
Online auctions:
a. are the major source of consumer complaints about online fraud.
b. involve approximately $1 million worth of goods annually.
c. allow people to bid on their own goods.
d. allow owners of goods to cross-bid with a group of other sellers.
Which of the following persons is an agent?
a. Diane, a shoe salesperson for a retail store.
b. Tim, a real estate broker for a large real estate company.
c. Craig, a telephone marketing employee.
d. All the above.
If Terrill steals a digital camera and sells it to Samuel, Samuel will get a valid title as
long as he can prove he gave value for the camera and acted in good faith.
a. True
b. False
If the title of an appellate court case appears as Jones v. Smith:
a. Jones is the plaintiff and Smith is the defendant.
b. Smith won the trial court decision.
c. You cannot determine which party is the plaintiff, because when a defendant loses a
trial and files an appeal, some courts (but not all) reverse the names of the parties.
d. The trial judge was Jones and the appellate judge is Smith.
Statutes of limitations:
a. define how much money the injured party can sue for under a breach of contract
claim.
b. define whether there has been substantial performance of a contract or a material
breach.
c. limit the time in which an injured party may sue.
d. only apply to the sale of goods. There is no statute of limitations on a service
contract.
The Theft of Honest Services statute:
a. is violated if an employee draws sick leave pay on a day when she is not sick.
b. applies only to government officials.
c. prohibits both public and private employees from taking bribes or kickbacks.
d. was not passed into law due to a presidential veto.
Emily runs a childrens clothing boutique which takes in local homemade items on a
consignment basis. Her standard form contract indicates that Emily has the right to put
items on sale without prior approval, but intentionally does not specify what effect the
sale has on the consignors payment percentage. Her intent is to keep the same profit she
would have had without the sale. She is using ambiguity in her contract to increase her
sales and profit.
a. True
b. False
TECO Coal Corporation mines and ships more than six million tons of coal annually.
TECO is comprehensively regulated by the U.S. Bureau of Mines. The U.S. Bureau of
Mines may conduct a surprise inspection of one of TECO's mines:
a. only if it has a search warrant.
b. only if it has a subpoena.
c. only if it has reason to believe a violation of a regulation has occurred.
d. without a search warrant if the purpose of the inspection is to ensure safety.
The Gramm-Leach-Bliley Privacy Act of 1999 requires pretexting to find out private
financial information.
a. True
b. False
Deontologists would agree that the increasing medical concern over obesity in the
United States justifies federal regulation of high fat, high sugar, low nutrition food
advertising during childrens television programs.
a. True
b. False
Victoria registered a trademark under the Lanham Act. Six years later Don noticed
Victoria's trademark and filed a lawsuit to enjoin her from using it. He proved he had
registered the mark in several states more than ten years before Victoria obtained her
trademark. Will Don prevail?
a. Probably. Victoria should have conducted a better search of trademarks registered
under state laws.
b. Yes. Federal law specifically states a federal trademark is not valid for any lawful
owner of the same mark under state law.
c. No. Don will not prevail and Victoria can continue to use the mark because she has
been using it for more than 5 years.
d. None of the above.
Generally, reasonable liquidated damage clauses will be enforced:
a. when actual damages are easily determined.
b. when actual damages are difficult to determine.
c. almost always.
d. only in real estate sales contracts.
Bernie owes an undisputed amount to Wildes Heating & Air Conditioning. Which of the
following is true?
a. If Wildes agrees to accept less than the full amount as full payment, the agreement is
not binding.
b. The undisputed amount is also known as an unliquidated amount.
c. If the parties agree to settle for less than the full amount, their agreement is governed
by the ruling in Henches v. Taylor.
d. If Wildes agrees to accept less than the full amount, the agreement is only binding if
it is in writing and signed by Bernie.
A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to
deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month
because of recent price increases in coffee. The retailer may treat the wholesaler as
having breached the contract and sue for damages even though the wholesaler's
performance is not due until next month.
a. True
b. False
Lori and her friends burn an American flag as an act of political protest. Lori is arrested
for violating a state law that prohibits flag burning. The Supreme Court has ruled that
laws making it illegal to burn an American flag:
a. are void because they deny a person due process rights.
b. are void because a state court has no power to prosecute a person for burning the
federal flag.
c. are void because they violate a person's right to freedom of speech.
d. are valid.
Which of the following are generally considered to be legal offers?
a. Placing an item up for auction.
b. Catalog advertisements.
c. Price lists.
d. A note scribbled on a restaurant napkin that includes the details of the offer.
Cecilia made a check out to Gideon for $15. Gideon fraudulently changed the check to
read $150, and cashed it at Corner Bank. Is Cecilia discharged from liability on the
check?
a. Yes, Cecilia owes nothing on the check because alteration of a check is a real defense
and real defenses are good even against holders in due course.
b. No, Cecilia pays $150 because of the impostor rule.
c. No, Cecilia pays $150 because she in not an indorser or accommodation party.
d. Yes, Cecilia owes nothing unless Corner Bank is a holder in due course in which case
she owes the original $15.
Miguel reprogrammed a cellular telephone so that it intercepted electronic funds
transfers and rerouted them to Miguels bank account. What crime has he committed?
a. Insurance fraud, since the banks insurance will have to cover the misdirected funds.
b. Wire fraud.
c. Mail fraud.
d. Embezzlement
The intent required to commit a burglary would be:
a. general intent.
b. reckless conduct.
c. strict liability.
d. specific intent.
The United States of America v. Angevine case held that the professor had no reasonable
expectation of privacy in his office computer.
a. True
b. False
