Donna defaulted on her loan owed to Second State Savings and Loan. The loan was
secured with Donna’s car. Donna used the car for personal and family reasons. Which
statement is correct?
a. Second State may take Donna’s car without a court order if this can be done without a
breach of the peace.
b. Second State may take Donna’s car without a court order even if it means a breach of
the peace.
c. Second State may not take Donna’s car because it is a consumer good.
d. Second State may not take Donna’s car because perfection was automatic.
A nonparty to a contract may enforce the contract if the person is:
a. a donee beneficiary.
b. an incidental beneficiary.
c. a creditor beneficiary.
d. Both a and c.
An insurance policy must meet which of the following?
a. State statutory requirements for tort law.
b. Federal statutory requirements for tort law.
c. Common law requirements for contracts.
d. Common law requirements for tort law.
On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and
agrees to pay Deb $600 on January 27. Which of the following is correct?
a. Until January 16, the contract was executory.
b. On January 16, the contract was executed.
c. This contract is a unilateral contract.
d. There is no contract until January 27.
Jeannie carelessly packed her grandmother’s antique glassware and had it shipped to her
30-year-old daughter, Abby, via Common Freight Carriers. When the china arrived at
Abby’s house, most of the pieces were broken. As between Jeannie and Common
Freight Carriers, who will bear the loss?
a. Jeannie is liable for the loss if Common Freight Carriers shows it was not negligent
and that the loss was caused by Jeannies failure to wrap and pack the glassware
properly.
b. Common Freight Carriers is liable. A common carrier is always liable.
c. Common Freight Carriers is liable because of its negligence in not inspecting
Jeannie’s packing job.
d. Jeanie is liable because she did not get an exculpatory clause.
InTotes-Isotoner Co. v. United States, the federal appellate court ruled that as to the
government charging different tariffs for mens goods than womens :
a. the tariffs will vary depending on the classification.
b. the governemnt could charge differently as long as the government did not intent to
discriminate
c. governemnt could not charge differently because it violated the equal portection
clause.
d. the government can charge differently based on whatever the custom service values
the product.
Which of the following is a primary goal of bankruptcy:
a. to preserve as much of the debtor’s property as possible.
b. to divide the debtor’s assets fairly between the debtor and the creditors.
c. to divide the debtor’s assets fairly among the creditors.
d. All of the above.
Johnny is hit by a car and thrown into the ditch breaking his leg. when this happens it
scares Jims cat who runs away tripping Mrs. Afton. what kind of cause is Mrs. Aftons
fall.
a. superseding cause
b. proximate cause
c. factual cause
d. contributive cause
The IRS files criminal charges against Rich for evasion of federal taxes. Rich’s
accountant, Sonya, is summoned to appear in court to testify against Rich. The state
where the incident occurred recognizes an accountant-client privilege. Does Sonya have
to testify in federal court against her client?
a. Yes.
b. Yes, but only if she is granted immunity by her state.
c. No, the federal court must recognize her state’s accountant-client privilege.
d. No, the federal accountant-client privilege will protect her from testifying.
Which of the following is true about wills?
a. A will can be amended to change specific terms by execution of a codicil.
b. The testatrix cannot disinherit her minor children without stating a reason in the will.
c. If the will meets the legal technicalities, the surviving spouse cannot override it.
d. Once a will is written, it cannot be changed.
What are some defenses against a holder in due course?
a. check.is forged
b. maker was underage.
c. the check was based on an illegal transaction.
d. All of these answers are correct.
GBH, an accounting firm, was hired to prepare financial statements for E-treme. Great
State Bank has asked to see GBH’s working papers. Great State Bank is thinking about
extending a $4 million line of credit to E-treme. GBH:
a. can show the bank the working papers because Great State Bank has a proper
purpose.
b. can show the bank the working papers because Great State Bank is a known third
party.
c. cannot show the bank the working papers under any circumstances as they are not
finalized.
d. cannot show the bank the working papers unless E-treme gives permission.
Which of the following are tasks of the National Labor Relations Board?
a. To adjudicate claims that an employer has committed an unfair labor practice.
b. To adjudicate claims that a union has committed an unfair labor practice.
c. To decide whether a particular union is entitled to represent a group of employees.
d. All the above are tasks of the National Labor Relations Board.
Who makes up the Stakeholders
a. Shareholders, community, employees, customers
b. CEO & shareholders
c. Landowners, taxpayers, shareholders
d. None of these answers are true
If repossessed collateral is sold or otherwise disposed of by the creditor, the time, place,
manner, and method of disposal must be:
a. commercially reasonable.
b. scheduled with the debtor so that the debtor is able to attend.
c. court ordered.
d. perfected.
If you buy a CD you do not like you are entitled to:
a. Financial damages
b. Sell it to anyone you want
c. Copy it to your hard drive and then sell the physical CD.
d. None of the answers are correct
M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in
accordance with the agreement. Coda paid for the stands as promised. The contract
between M & E and Coda is discharged by:
a. full performance.
b. agreement.
c. rescission.
d. accord and satisfaction.
Angelina owned a lot near a lake. Although she did not have lake access she fenced in a
portion of the lot next door that gave her lake access. She never had permission from
the owner of the adjoining land. She even built a little boat ramp there for her boat. If
Angelina continued this use of her neighbors land for the number of years required by
local statute, she would have:
a. A tenancy in common
b. Adversely possessed the land
c. Eminent domain over the land
d. A license to use her neighbors land.
Carfano v. Metrosplash.com, Inc. held Matchmaker.com was not liable because:
a. Matchmaker.com had immunity
b. Matchmaker.com did not create develop or post the relevant information
c. Matchmaker.com only had liability for photos which were posted
d. None of these answers are correct
A security interest in money may be perfected by:
a. filing a financing statement.
b. creating a PMSI.
c. possession only.
d. redemption.
The employer has the right to monitor a workers electronic communication:
a. in the ordinary course of business.never
b. The communication is made during business hours.
c. except if it does not relate to work
d. If the employer provided the computer where the communication is stored.
Ted and Alice own their recreational vehicle subject to a security agreement to Third
U.S. Bank to secure the repayment of the purchase money loan. Ted and Alice sell their
RV to Bob and Carol, who agree to take over the loan payments to the bank. There is no
novation with the bank. Under these facts, if Bob and Carol do not make the loan
payments, Third U.S. Bank:
a. can sue Bob and Carol only.
b. can sue Ted and Alice only.
c. can sue Bob, Carol, Ted, and Alice.
d. cannot sue anyone but can repossess the RV.
The Dodd Frank Wall Street Reform and Consumer Protection Act:
a. requires companies every three years to take a binding shareholder vote on executive
compensation.
b. requires companies every three years to take a non- binding shareholder vote on
executive compensation.
c. requires companies every three years to take a binding board of directors vote on
executive compensation.
d. not include in its charter any provisions regarding indemnification of directors.
Under the UCC, a holder in due course is a holder who has given value for the
instrument. Which of the following holders have given value for the instrument?
a. Beth promises to paint the neighbor’s house in exchange for a promissory note as an
advance payment for the job.
b. Steve gives a note and mortgage on his house to his attorney as a retainer to handle
his pending divorce.
c. Todd, a newspaper carrier, accepts a properly indorsed two-party check for the past
two months of deliveries.
d. All of the above are correct.
Donny fired Willie. If Willie is an at-will employee, what is true?
a. Willie has no legal recourse, unless Donny committed a criminal act.
b. Willie has no legal recourse because he is an employee at-will.
c. Willie has no legal recourse, unless Donny violated public policy.
d. Donny is immune from lawsuit because there is no contract.
U.S.A. v Warshak held that the 4th Amendment applied to Internet communications.
After the plaintiff has presented her case, the defendant may be granted a:
a. directed verdict.
b. summary judgment.
c. judgment n.o.v.
d. judgment on the pleadings.
Wayne worked in an office. He had no criminal record, had never had a complaint made
against him about his work or his conduct, and had been a faithful employee for nearly
20 years. One day, Wayne followed his supervisor to his home and fatally shot him. The
estate of the supervisor sued the company, claiming it should have been aware of
Wayne’s growing frustration with work. The company’s best defense will be that:
a. there was no way to foresee that the incident would happen.
b. the incident occurred away from the office.
c. the killing was the result of a personal conflict between Wayne and the supervisor.
d. even if the company had been aware of Wayne’s difficulty with his supervisor, Wayne
did not have any criminal history.
Linda assigns to Ben a right to receive rent payments. The law implies the following
warranty on Lindas part:
a. the tenant is solvent.
b. Linda actually has a right to the rental payments.
c. the tenant will actually pay.
d. No warranties are implied by law in an assignment.
First Bank has agreed to loan Teresa $100,000 for use in her cosmetics business. If
Teresa sells the business to Melissa before the loan is consummated, Teresa can assign
her right to the loan to Melissa.
The Occupational Safety and Health Administration (OSHA) has proposed rules aimed
at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. ATC,
Inc. should challenge the proposed rules in court to prevent them from becoming final
rules.
Unlike with patents, the ideas underlying copyrighted material need not be novel.
Sandra and Joe own a hobby farm as tenants in common. They also own a vacation
home as joint tenants. What is the difference between the tenancy in common and joint
tenancy?
A corporation is required to have at least one class of stock with voting rights.
Manuel, in conducting an audit, must rely most heavily on rules found in generally
accepted accounting principles (GAAP).
List and briefly describe the basic elements of a contract.
Punitive damages are intended to punish the defendant for conduct that is extreme and
outrageous.
An agent cannot disclose nor use for their own benefit any information they learn
during the agency
While at the park, Tasha saw a small child fall into the lake. Tasha did not know the
child. Under the common law of most states, Tasha has a legal duty to take reasonable
steps to assist the child if Tasha is able to help and such help will not jeopardize Tasha’s
well being.
Generally, either party to an agency relationship has the power to terminate it at any
time.
Hanson Corporation is concerned that its employees are spending too much work time
talking on the telephone, sending e-mails, and using the Internet for personal uses.
Discuss what steps Hanson may legally pursue to protect its interests in productivity.
BGH Accounting firm audited the financial statements that were included in E-prise’s
registration statement. The financial statements overstated sales by 2000%. In
conducting the audit, BGH did not comply with generally accepted auditing standards
(GAAS). Under Section 11 of the 1933 Act, BGH is liable for any material
misstatement in the financial statements.
The tariff for mens gloves can be higher than womens gloves as long as the government
did not intend to discriminate.
Spam is illegal per se.
Distinguish between a contract and a gift. Give an example of each.
Discuss a bailors liability for defects in the bailed property.
Jolene hired Lacy to find a buyer for her house. Adam was interested in buying the
house. If both Jolene and Adam agree, Lacy, a real estate agent, may represent both
parties.
An agent is always liable for his or her own torts committed within the scope of the
agency relationship.
John Akers, former chairman of IBM, argues that ethics are not important to economic
competitiveness.