Due process requires that a hearing generally be held before an agency may make a
judicial decision:
a. in all actions.
b. when the action affects the community generally.
c. when the action concerns a class of persons.
d. when the action concerns only the persons directly affected.
If not an offer, the first statement made by one of two persons is most properly termed
a(n):
a. option.
b. acceptance.
c. invitation to negotiate.
d. contract.
The EFTA is concerned with the:
a. elimination of foreign terrorists
b. eradication of foreign tribunals
c. electronic transfers of funds
d. eleemosynary, or charitable, transfers of funds
Which of the following is not a necessary element of promissory estoppel?
a. The promisor and the promisee must engage in a bargained-for exchange.
b. The promisor must intend or should reasonably expect that the promisee will rely on
the promise.
c. The promisee must in fact rely on the promise in some definite and substantial
manner.
d. Enforcement of the promise is the only way to avoid injustice.
Defamation of a public figure requires what additional element?
a. intent
b. malice
c. causation
d. none of the above
In an employment contract, agreements not to compete are:
a. illegal.
b. uniformly held to be in the public interest and therefore legal.
c. never questioned by the court.
d. valid, if the restriction is reasonable and necessary for the protection of the benefited
party.
An agent has implied __________ authority to do any act that usually accompanies the
transaction for which the agent is authorized to act.
a. express
b. apparent
c. customary
d. incidental
The main thrust of the quasi contract is to:
a. encourage the making of written contracts.
b. prevent enrichment.
c. compensate those who voluntarily help others.
d. prevent unjust enrichment.
Judges of the United States Supreme Court:
a. are appointed by the president, with the approval of the Senate.
b. are appointed by the Senate, with the approval of the president.
c. cannot be impeached.
d. are elected by the public.
Title VII of the Civil Rights Act of 1964 applies to:
a. the hiring process.
b. discipline.
c. discharge
d. all of the above.
__________ lending is a practice on the part of the subprime lending market whereby
lenders take advantage of less sophisticated consumers or those who are desperate for
funds by using the lenders’ superior bargaining positions to obtain credit terms that go
well beyond compensating them for their risks.
a. Predatory
b. Dilatory
c. Confiscatory
d. None of the above
Under which circumstance will an employee not be entitled to Workers’ Compensation
benefits for an on-the-job injury?
a. an injury that is the result of an employee’s own negligence
b. an injury that is the result of an employee’s own gross negligence
c. an injury that is caused by a fellow employee
d. an injury that is the result of an employee’s intoxication
The willingness of an offeror to enter into a contractual agreement regarding a
particular subject is expressed by a(n):
a. offer.
b. acceptance.
c. contract.
d. agreement.
An implied contract is shown by:
a. a writing.
b. the acts and conduct of the parties.
c. statements made in open court.
d. an exchange of oral promises.
Which federal agency has primary responsibility for enforcing environmental laws?
a. the Environmental Protection Agency
b. the Council of Environmental Quality
c. the Superfund Panel
d. none of the above
If an obligor could successfully defend against a suit brought by the assignor:
a. the obligor will also prevail against the third-party beneficiary.
b. the obligor will also prevail against the assignee.
c. the obligor will also prevail against the incidental beneficiary.
d. none of the above.
A motion for a directed verdict is appropriate:
a. immediately after the pleadings are filed.
b. immediately after discovery is concluded.
c. immediately after the presentation of all evidence at trial.
d. on appeal.
In attempting to fulfill the ethical category of promise-keeping, it is important to avoid
multiple conflicting commitments because:
a. it will not always be possible to pay dividends.
b. promises to pay taxes can only be subordinated to secured debt.
c. repeatedly breaking promises will cost a business its reputation in the long run.
d. stakeholders will relax their expectations if they know you are overextended.
Which of the following does not constitute an acceptance?
a. an express statement of approval by the buyer
b. the buyer’s examination of the goods
c. the buyer’s retention of goods for an unreasonable period of time
d. the buyer’s modification of the goods
A depositor issued a check and, after mailing the check, suffered a heart attack and died.
In the regular course of business, the bank paid the check when presented for payment,
despite the fact that the bank had received notice fourteen (14) days earlier of the
depositor’s death. In terms of the bank’s payment of the check
a. the bank is liable if the check was a gift to charity.
b. the bank is potentially liable to the depositor’s estate.
c. the bank is not liable unless the depositor’s executor posted an indemnity bond.
d. the bank’s authority to act for the depositor ended on the depositor’s death, regardless
of whether the bank had been notified of the depositor’s death.
Unless statutory requirements are met, a will is invalid and the testator:
a. is considered to have died testate.
b. is considered to have died intestate.
c. is subject to federal law.
d. has provided guidelines of distribution.
U.S. courts will assume jurisdiction and apply antitrust laws to conduct business outside
the United States if the activities of the business firms outside the United States have a
direct, substantial, and foreseeable impact on U.S. commerce. This is based on what
principal?
a. the “jurisdictional rule of reason”
b. the “act”of’state doctrine
c. the “effects” doctrine
d. comity
Through which of the following circumstances may a contract be discharged?
a. mutual cancellation
b. mutual rescission
c. accord and satisfaction
d. all of the above
The rule that doing or promising to do what one is already legally bound to do is not
consideration applies to a part payment made in satisfaction of a(n) __________ debt.
a. unliquidated
b. superfluous
c. non-superfluous
d. liquidated
The “public comment” period for proposed administrative agency rules must be at least
__________ days.
a. 30
b. 60
c. 90
d. 120
When a negotiable instrument is negotiated by delivery without indorsement, the
warranty liability of the transferor runs:
a. only to the immediate transferee.
b. not to the immediate transferee, but to all subsequent transferees.
c. to both the immediate transferee and all subsequent transferees.
d. neither to the immediate transferee, nor to any subsequent transferees.
If the trustee breaches the trust, which of the following remedies might be available?
a. a money judgment
b. an injunction
c. a criminal prosecution
d. all of the above
The Endangered Species Act gives which of the following cabinet-level officers the
authority to protect various species?
a. the Secretary of the Interior only
b. the Secretary of Commerce only
c. both the Secretary of the Interior and the Secretary of Commerce
d. none of the above
__________ represents a pattern of performance between the parties to a contract.
a. Course of dealing
b. Usage of trade
c. Course of trade
d. Usage of dealing
The tort statutes of limitations tend to be __________the UCC statute of limitations.
a. shorter than
b. longer than
c. equal to
d. excluded by
If a guaranty contract is entered into subsequent to the original transaction:
a. permission must be obtained from the state legislature.
b. no new consideration is required.
c. new consideration must be given for the promise of the guarantor.
d. no new consideration is required for the promise of the surety.
The equal protection clause:
a. requires all persons to be treated equally.
b. allows laws that discriminate on the basis of moral standards.
c. requires that a statute be sustained unless it is clearly arbitrary or capricious.
d. allows laws that discriminate on the basis of cultural patterns.
A provision in a residential lease excusing a landlord from liability for damage caused
by water, snow, or ice is __________.
a. enforceable
b. enforceable, but only in those areas of the United States that are unusually exposed to
adverse weather conditions
c. void
d. voidable
Forbearance to assert a claim is binding consideration:
a. only if the claim has legal merit.
b. regardless of whether the claim has merit, and regardless of whether the claim has
been asserted in good faith.
c. only if the claim has legal merit and has been asserted in good faith.
d. when the claim, regardless of whether it has legal merit, has been asserted in good
faith.
Disclaimers of liability are valid when the circumstances are such that it is not
reasonable to expect the accountant to stand behind certain data.
Newlog, which had developed a new process for making artificial logs, entered into an
oral contract with Specialty Manufacturing. The contract provided that Specialty would
manufacture a special part that Newlog needed to make its artificial log machinery. The
contract provided that Specialty would make the part to Newlog’s specifications.
Newlog orally agreed to pay $5,000 for the part. Specialty made the part to Newlog’s
specifications, but Newlog refused to pay, claiming that the oral contract was
unenforceable because of the statute of frauds. Is Newlog correct?
The government may regulate production but not prices.
A bilateral contract is essentially an exchange of promises.
The duties of officers of a corporation are generally set forth in the articles of
incorporation.
Creditors of a firm have first claim on the assets of the partnership.
Trade dress protection under the Lanham Act is the same as that provided a qualified
unregistered trademark, and does not provide all the protection available to the holder
of a registered trademark.
A corporation generally may avoid a transaction because of a director’s secret
disqualification, such as a conflict of interest.
Those who are liable for violations of consumer protection situations are persons or
enterprises that regularly enter into the type of transaction in which the injured
consumer was involved.
The doctrine of promissory estoppel is also known as the doctrine of beneficial reliance.
Where the lawsuit is based on negligence, the defendant has the burden of proving
himself or herself free of negligence.
When a tenant is deprived of the possession, use, and enjoyment of the premises by a
third party, an eviction has occurred.
Although processes and machines are eligible for patent protection, manufactures and
compositions of matter are not.
The right to cut firewood from another’s property would constitute a profit.
Agents are themselves liable for harm caused third persons by the agents’ fraudulent,
intentional, or negligent acts.
Law firms and public accounting firms that prepare fraudulent registration statements
on behalf of clients are not subject to civil liability.
George was the maker of a written promissory note that stated that $500 would be paid
on the sale of George’s automobile. George initialed the note instead of writing his full
name. The promissory note stated that it would be payable six months from the date.
The promissory note was not dated. You now have come into possession of this note. Is
this note negotiable? Discuss the elements of negotiability and whether each one has
been met.
One advantage of our current legal system is that the growth of technology has not
created many new laws.