Which of the following acts protects consumers who have errors in credit card billings?
a. Equal Credit Opportunity Act.
b. Fair Credit Billing Act.
c. Fair Debt Collection Practices Act.
d. Truth-in-Lending Act.
Under the Fair Credit Reporting Act, a consumer has the right to have inaccurate
information removed from his consumer credit report.
a. True
b. False
A sellers incidental damages for a buyers breach would include all but which one of the
following?
a. Cost to store the widgets in buyer’s city after breach.
b. Cost to ship widgets back to seller.
c. Cost to initially ship the widgets to buyer.
d. Cost to reload widgets onto seller’s truck at buyer’s city.
Which of the following is correct regarding a two-for-one stock split?
a. The purpose of the split may be to decrease the value per share of the stock.
b. The purpose of the split is to make a distribution to the stockholders.
c. After the split, each stockholder will have greater ownership interest in the
corporation.
d. The value of each share of stock will increase as a result of the split.
An incomplete instrument is not negotiable. However, when it is completed, it may
become negotiable.
a. True
b. False
The suretyship provision rule within the statute of frauds applies to cases involving one
party promising to perform the duty of another party to yet a third party.
a. True
b. False
Which of the following is a requirement of a valid gift?
a. An adult donor.
b. Payment of money.
c. A writing.
d. Delivery.
As amended in 2008, SEC Rule 144 imposes stricter requirements on securities resales
of issuers subject to 1934 Act reporting requirements than on securities resales of
non-reporting issuers.
a. True
b. False
In a contract for the sale of lawn care services, an issue arises about whether the
homeowner would receive disproportionately less in service than the lawn care
company would receive in compensation. This disparity may be relevant to the:
a. requirement of legally sufficient consideration.
b. availability of certain defenses and remedies.
c. the voidability of the contract due to undue influence.
d. All of these.
The delivery terms “ex-ship” and “no arrival, no sale” indicate that the contract is a
shipment contract.
a. True
b. False
Although corporations are not persons but artificial entities created by the state, it is
clear that they can and should be held morally accountable.
a. True
b. False
Under the Clayton Act, private parties can bring civil actions in federal court for treble
damages and attorneys’ fees.
a. True
b. False
Which of the following would be likely to result in liability to a director of a textile
company?
a. The director sells stock in the textile company before a merger is announced.
b. The director uses the corporation’s offices to buy and sell his own investment
securities.
c. The director owns stock in an automobile company.
d. The director agrees to hire as president a man he has not personally investigated.
e. Both the director sells stock in the textile company before a merger is announced and
the director uses the corporation’s offices to buy and sell his own investment securities.
Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years
of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk
repay him all that he has paid. In the majority of jurisdictions, Steve:
a. would be out of luck.
b. must have the truck repaired.
c. will receive his money less the depreciation in value of the vehicle.
d. may simply return the vehicle and get his money.
Harris was awarded $4 million in damages in a malpractice case against Dr. Kelsoe.
The doctors attorney filed a motion for a new trial. The motion may be granted if:
a. the damages are excessive.
b. the verdict was against the weight of the evidence.
c. the trial was unfair.
d. All of these.
The states initially had primary responsibility for controlling air pollution.
a. True
b. False
Under the Pregnancy Discrimination Act:
a. family leave must be given to pregnant women and mothers of newborns.
b. employers may not refuse to hire a pregnant woman, fire her, or force her to take
maternity leave.
c. employers must give family leave to fathers of newborns as well as to mothers.
d. the BFOQ defense is not available.
Gerald, an agent, who makes a contract with Adele on behalf of Leon, an unidentified
principal, may maintain in Geralds own name a breach of contract action against Adele.
a. True
b. False
The Constitution provides that federal statutes are paramount to state constitutions and
statutes.
a. True
b. False
A limited partner’s financial obligation to the partnership may be increased if:
a. the limited partner acts as agent for a competing partnership.
b. the limited partner takes active part in the management of the partnership.
c. the certificate of limited partnership is incorrect or incomplete.
d. The limited partner takes active part in the management of the partnership orthe
certificate of limited partnership is incorrect or incomplete.
Under the __________, a buyer may reject goods for even the slightest defect.
a. revocation of acceptance rule
b. perfect tender rule
c. rules for inspection
d. excuses for nonperformance
There is no such thing as an irrevocable will.
a. True
b. False
The Commerce Clause allows the federal government to invalidate state laws that
burden interstate commerce.
a. True
b. False
If a statute is found to be applicable to a fact situation, then the courts will hold that an
unexcused violation of that statute which causes an injury to another is:
a. strict liability.
b. res ipsa loquitur.
c. negligence per se.
d. assumption of the risk.
Which of the following is not ordinarily a part of a reported opinion?
a. The essential facts.
b. The names of the attorneys representing the parties.
c. What pleadings are material to the issues.
d. The application of legal principles involved in the case.
Which of the following promises does not have to be evidenced by a writing or
electronic record in order to be enforceable?
a. Jones’s agreement with Smith to sell his condominium for $100,000.
b. Stewart’s promise to work for Austin for a two-year period.
c. Dad’s promise to the credit union that he will make payments on his son’s truck.
d. Mindy’s agreement with Susan to buy her bike for $400.
The doctrine of unconscionability has evolved through its application by the courts to
include:
a. contract negotiating procedures.
b. substantive contract terms.
c. good faith.
d. Both contract negotiating proceduresand substantive contract termsare correct.
Which of the following transactions is governed by Article 2 of the UCC?
a. The sale of an apartment complex.
b. The sale of oranges to be picked from a 10-acre grove.
c. The sale of common stock of a soft drink company.
d. A contract to receive medical services in a hospital.
An absolute privilege exists to protect which of the following defendants in defamation
cases?
a. Members of Congress on the floor of Congress.
b. Statements made by the President of the U.S. in the discharge of official duty.
c. Statements about a third party made to one’s spouse when the couple is alone.
d. All of these.
Bodily contact that is harmful or offensive can give rise to the tort of:
a. assault.
b. battery.
c. defamation.
d. appropriation.
Which of the following is true of PSD areas under the Clean Air Act?
a. Only limited increase in air pollution is allowed.
b. New construction of a major stationary source requires a permit from the state.
c. To receive a permit, a new source must show it will use the best control technology
available.
d. All of these.
e. None of these.
On February 21, Cara wrote to Pandora Mfg. asking for shipment of 100 swimsuits on
90-day credit. In the letter, she gave references that indicated that her store was
financially sound. Actually she had bills that she could not pay and hoped to turn the
business around with the summer swimsuit sales. Pandora shipped the suits on April 2;
they were received April 15. Cara immediately put them on display and 27 were sold by
April 30 when Pandora discovered that Cara had lied. Pandora could:
a. recover 73 suits plus incidental damages.
b. recover 10 suits provided that Pandora acted within 10 days of discovering the
misrepresentation.
c. recover no suits since it had been more than 10 days since delivery.
d. recover 73 suits.
An appeal from a small claims court is taken to the state court of appeals where a trial
de novo is begun.
a. True
b. False
Transfer of title to personal property can occur by all but which of the following ways?
a. By deed.
b. By gift.
c. By will or descent.
d. By accession.
e. Transfer can occur by any of the above.
Harry was told that he had to pay $50 for filing his claim in small claims court. He did.
If the fee is really $40, he cannot recover the $10 because it is a unilateral mistake of
fact.
a. True
b. False
What rights are protected by the First Amendment? What sorts of speech are
constitutionally protected? Explain.
Farmer Brown brings his crop of wheat to the local grain elevator where it is stored
along with the grain of several other farmers. A few months later, the grain elevator
declares bankruptcy. Who owns the grain? Can Farmer Brown get his grain back?
Explain.
In the common law system of the United States, the reported opinion in a case provides
what specific information that can be used to understand and apply legal analysis?
Sam orally agreed to sell his house to Humphrey. Humphrey wanted it ready for his
family quickly, so after he paid Sam a 5% deposit, he had a new roof put on, new
carpeting installed, and he renovated the kitchen. Sam now thinks the place looks great
and has decided not to sell. A business law student told him he could back out of the
oral agreement. Can he? Explain.
Compare and contrast the intent necessary to commit a tort to the intent necessary to
commit a crime.
What are a payor banks rights to subrogation upon an improper payment of an
instrument?
Discuss the revocability of assignments.
Homemade Soup Co. has advertised their soup in certain magazines using photographs
showing bowls of their soup with pebbles at the bottom of the bowl. The pebbles were
used to displace the soup in the bowl, forcing the vegetables and meat to the surface.
This photographer’s trick made the soup appear heartier than it was. An FTC staffer is
thumbing through the latest edition of her favorite magazine. She notices the
Homemade Soup Co. ad and goes to her kitchen, opens up a bowl of Homemade’s soup
and decides that her bowl of soup looks nothing like the one in the ad. What are the
steps the FTC would take to proceed against Homemade Soup Co.?
What is the effect on liability of a limited partner who participates in the management
of the partnership? What activities may a limited partner perform without affecting
liability?
Identify the purpose of the U.S. Constitution as stated in its preamble.
Stephen and Martha have spent months looking for their dream home. One day they
saw it and fell in love with everything about the house, and they asked the realtor to
draw up a purchase agreement, which they then signed. After signing the papers, they
asked the realtor whether the house was in good shape. The realtor said it was. When
the couple moved into the house, they realized that the basement had serious water
problems and that the roof leaked. They now want to sue the realtor. What tort should
they consider? If they sue the realtor for this tort, will they win? Why or why not?
Explain.
Explain how the terms civil law and civil law system differ.
What are the various kinds or sources of American law? Discuss how these various
types of law interrelate to form the system of law in the United States.
Identify at least four means states have used to limit the punitive damages a plaintiff
can collect in a product liability lawsuit.
Compare and contrast ratification and adoption of unauthorized contracts.