The Lanham Act grants protection for:
a. marks.
b. patents.
c. copyrights.
d. trade secrets.
A counteroffer is a(n):
a. acceptance of the original offer.
b. rejection of the original offer.
c. acceptance of the original offer and an invitation to further negotiate.
d. a revocation of the original offer.
Real property includes:
a. land.
b. shrubs, grass and tress.
c. rights in the land of another.
d. all of the above.
A promise that the grantor of an interest in land will execute any additional documents
required to perfect the title of the grantee is known as a covenant:
a. of seisin.
b. of further assurances.
c. against encumbrances.
d. of quiet enjoyment.
Which of the following is an effective means of notice to purchasers of shares that there
are restrictions on the sale?
a. notation in the bylaws
b. resolution of the shareholders at a shareholders’ meeting
c. notation on the stock certificate
d. resolution of the directors at a directors’ meeting
Letter of credit transactions involve ______ contract(s).
a. one (1)
b. two (2)
c. three (3)
d. four (4)
In a lease agreement, the person who owns the real property and permits the occupation
of the premises is known as the __________, and the person who occupies the property
is known as the __________.
a. lessor; lessee
b. lessee; lessor
c. grantor; grantee
d. grantee; grantor
White-collar crimes:
a. always involve the threat or use of force or violence.
b. generally involve the threat or use of force or violence.
c. sometimes involve the threat or use of force or violence.
d. do not involve the threat or use of force or violence.
__________ property means land and things embedded in the land.
a. Real
b. Personal
c. Intangible
d. Tangible
The party that breaks a contract may be required to pay damages to the other party to
compensate for:
a. losses that could have been avoided by hiring someone else to perform the contract.
b. emotional disturbance caused by the breach of contract.
c. a heart attack induced by the emotional disturbance caused by the breach of contract.
d. damages resulting necessarily and directly from the breach of contract.
The Racketeer Influenced and Corrupt Organizations (RICO) Act is a product of:
a. Congress.
b. international trade agreements.
c. state law.
d. none of the above.
Consideration is:
a. the concern shown by the other contracting party.
b. what is demanded by the promisor as the price for the promise.
c. a stated number of dollars.
d. the concern of both contracting parties for the protection of the environment.
Costs generally are awarded to the prevailing party in litigation. Those costs usually
include:
a. filing fees.
b. service-of-process fees.
c. deposition transcript costs.
d. all of the above.
Hostile work environment sexual harassment:
a. cannot be created by unwelcome sexual flirtation and propositions.
b. cannot result in an injunction being granted against offensive conduct.
c. occurs when a supervisor’s conduct does not affect an employee’s economic benefits,
but causes anxiety and “poisons” the work environment for the employee.
d. can result in the court ordering the business to be sold, upon proper notice, at a
publicly-held auction.
A corporation is liable to a third person for the act of its agent:
a. to the same extent as a natural person would be liable.
b. only if the agent was expressly authorized to perform the act.
c. only if the agent’s act was a crime.
d. only if the agent’s act was based on an intent to benefit the corporation.
When a buyer assigns the right to goods under a contract, the buyer’s liability to make
payment to the seller is:
a. transferred to the third party.
b. terminated.
c. still in effect.
d. shared equally with the third party.
Within the past five years, the U.S Supreme Court has:
a. placed some limitations on the commerce clause.
b. increased Congressional authority for all activities that have economic impact.
c. given states the ability to override the federal government on interstate commerce
issues.
d. all of the above
A partner may withdraw from the partnership without liability:
a. unless the withdrawal violates the partnership agreement.
b. when the partnership is not for a definite purpose.
c. when the partnership is not for a definite time.
d. all of the above.
A cancellation provision:
a. makes a promise illusory.
b. gives a person a free way out.
c. is limited to the terms set forth by the provision.
d. none of the above.
In a contract in which a tenant borrowed money from a bank for the purpose of adding a
bathroom to her apartment, the landlord is:
a. a direct beneficiary.
b. in privity of contract with the tenant.
c. a third-party beneficiary.
d. an incidental beneficiary.
A contract involving both services and goods is classified as a contract for the sale of
goods if:
a. the services are to be performed upon the goods.
b. the services cannot be performed unless the goods are supplied.
c. no charge is made for the services.
d. the sale of goods is the dominant aspect of the transaction.
Revised UCC Article 3 refers to which of the following parties as secondary obligors?
a. drawers
b. indorsers
c. accommodation parties
d. all of the above
The term apparent authority is used when there is:
a. no interaction between the principal and third persons.
b. actual authority.
c. only the appearance of authority and that appearance of authority was created by the
principal.
d. only the appearance of authority and that appearance of authority was created by the
agent.
A person who becomes a party to an instrument to add strength to the instrument for the
benefit of another party to the instrument is called a:
a. benefactor.
b. secondary obligor.
c. collateral obligor.
d. contingent beneficiary.
An incontestability clause ordinarily bars contest of the validity of a life insurance
policy by the insurer after the lapse of:
a. sixty (60) days.
b. one (1) year.
c. two (2) years.
d. ninety (90) days.
In an auction __________, the auctioneer takes bids as agent for the seller with the
understanding that no contract is formed until the seller accepts the transaction.
a. without reserve
b. with reserve
c. without preserve
d. with preserve
The liability for losses on counterfeit checks depends on:
a. whether or not the bank acted reasonably in its processing systems in clearing the
checks.
b. whether or not the bank complied with time requirements for customers regarding the
checks.
c. both a. and b.
d. none of the above.
An oral contract containing a promise by an executor to pay estate debts from estate
funds is:
a. binding.
b. voidable by the executor or administrator.
c. enforceable against the executor only if the executor signs written proof of the
agreement.
d. enforceable against the other contracting party only if that party signs a written
agreement.
A consumer who notifies the issuer of an EFT card within two (2) days after learning of
a loss or theft of the card is limited to a maximum liability of:
a. $500.
b. $50.
c. There is no liability limitation in this situation.
d. There is no liability in this situation.
The Digital Millennium Copyright Act :
a. made notice of copyrights no longer mandatory.
b. changed the life of a copyright.
c. was enacted to curb the pirating of software and other pirated works.
d. all of the above.
Shareholder control is generally limited to voting at shareholders’ meetings to elect
directors.
To prevail in an action for trade dress infringement, a plaintiff must prove that its trade
dress is distinctive and nonfunctional and the defendant’s trade dress is confusingly
similar to the plaintiff’s.
Ann was seriously ill and feared that she might lapse into a coma or somehow become
unable to speak or act for herself in her medical emergency. She is aware that agents
ordinarily lose their authority to act for principals who become mentally disabled. She
nevertheless desires to have her husband Alberto make medical decisions and speak on
her behalf. She is particularly concerned about existing on life support in a persistent
and incurable vegetative state. Is there any action that she might take to enable Alberto
to act for her?
An easement may be destroyed by an act of the grantor.
Bart owned 100 shares of a stock that was actively traded on a national stock exchange.
Bart wanted to sell the shares but felt that his profit would be seriously diminished by
selling through a broker and paying the customary brokerage commission. Bart offered
the 100 shares to any of a group of six people in a conversation at a party. The offered
price was $750 per share, the price at which the shares had closed that day. No one
really responded to the offer at that time. Ten days later when the shares were trading at
$76.25, Marie, one of the offerees at the party, appeared at Bart’s office saying that she
accepted the offer. Bart claimed the offer no longer was available. Evaluate the legal
outcome of this dispute.
Samuel signed a contract to purchase furniture on credit. The contract clearly set forth
in bold print all charges included in the cost of the credit, including the interest rate and
annual percentage rate. The seller informed Samuel that the seller regularly sold these
contracts to a finance company that paid it immediate cash and then collected from the
debtors. The seller further advised that the finance company did not want “the
headache” of determining the validity of consumer complaints and that therefore the
contract provided that the consumer waived all defenses concerning the furniture
against the finance company. The contract expressly provided that the seller would
remain responsible for any non-conformities in the furniture or breaches of contract on
its part. The furniture was defective, but the finance company is demanding that Samuel
make the payments to it required by the contract and resolve its disputes with the seller
of the furniture. Samuel consults you regarding his rights. What is your response?
Workers’ compensation statutes provide the exclusive remedy for employees who are
covered by such statutes and who suffer job-related injuries.
A buyer who buys goods from a debtor in the ordinary course of business is subject to a
creditor’s security interest but only if the interest was perfected and the buyer had notice
of it.
Both the Secretary of Commerce and the Secretary of the Interior are given
responsibilities under the Endangered Species Act.
Price discrimination is not permitted even when it can be justified on the basis of a
difference in grade, quality, or quantity.
An oral agreement to supply a line of credit for two (2) years cannot be enforced
because of the statute of frauds.
The operating agreement of an LLC must be in writing to be valid.
A “rent-a-judge” serves as a referee.
General contract law determines whether a limitation clause is a part of the contract
between the warehouser and the customer.
A common barrier to the free movement of goods across borders is the tariff barrier.
The corporate form of business continues regardless of changes in stock ownership.