Mom and Carolyn own a farm as joint tenants. When Mom dies, her share will pass to:
a. Carolyn.
b. her heirs.
c. her beneficiaries.
d. Carolyn’s heirs.
Millie, a tenant, abandons her apartment after 6 months, even though there are 6 months
left on her lease. If there were no survival clause in the lease, would the landlord be
able to hold Millie liable for rent?
a. Yes, but he must leave the apartment vacant
b. Yes, after he gives notice to the tenant
c. Yes, after he relets the apartment
d. No, the landlord must relet the apartment in order to collect rent for the remaining
lease term.
Alice Jones receives a bonus of $500 from her boss. She needs cash for her vacation, so
she indorses the check to Charlie who gives her $300 cash and an IOU for $200. When
Charlie presents the check to Alice’s company for payment, her boss says the check was
meant for Alex Jones instead; it was all a big mistake. What will Charlie be able to
collect from the company?
a. $500
b. $300
c. $420
d. Nothing
The intentional exercise of dominion or control over another’s personal property which
so seriously interferes with the other’s right of control as to justly require the payment
of full value for the property is:
a. trespass to personal property.
b. interference with economic interests.
c. fraudulent misrepresentation.
d. None of the above.
Answer the following:
a. Discuss the aggregate theory.
b. What is the entity theory?
c. Which approach is adopted by the RUPA? Explain your answer.
All of the following except which one is a duty of an agent?
a. Account for money received on behalf of the principal
b. Inform the principal of any information relevant to the agency
c. Refrain from competing with the principal
d. Refrain from using any information gained while an agent
Bob took a check written by Jack to Jack’s bank to be certified. The bank stamped
“Certified” on it and gave it back to Bob. What consequence?
a. Bob can only demand the money from Jack.
b. The bank is now primarily liable on the check.
c. The bank would have to pay if Jack doesn’t.
d. Bob would have to pay if the bank doesn’t.
In order for advertising to be found deceptive by the FTC, it is necessary that:
a. the advertisement can only be reasonably interpreted in one way, and in that way, it is
misleading.
b. there is a misrepresentation, omission, or practice that is likely to mislead the
consumer acting reasonably in the circumstances, to the consumer’s detriment.
c. the sellers have malice or evil intent.
d. something affirmative was said which was misleading; i.e., an omission cannot be
deceptive.
Which of the following is not a purpose of the Consumer Product Safety Commission?
a. To create legislation imposing mandatory safety standards
b. To protect the public against unreasonable risks of injury associated with consumer
products
c. To assist consumers in evaluating the comparative safety of consumer products
d. To develop uniform safety standards for consumer products
The characteristics of a qualified or base fee estate include(s) that:
a. it is possible to convey or will property to a person to enjoy absolutely, subject to its
being taken away at a later date should a certain event occur.
b. a holder of a qualified fee interest may transfer the property by deed, subject to the
initial condition.
c. a qualified fee interest may pass by intestate succession.
d. All of the above.
All of the following are dischargeable in bankruptcy EXCEPT:
a. an unsecured note to a bank.
b. a car loan.
c. alimony and child support.
d. a court judgment against the debtor.
Jason may validly authorize Nathan to:
a. obtain title to Max’s car by making materially false representations of an existing
fact.
b. vote in his place since Jason is not feeling well on election day.
c. negotiate a contract for the sale of Jason’s boat.
d. All of the above.
When is an agency relationship irrevocable?
a. It is never irrevocable.
b. When the agency is coupled with an interest of the agent in the subject matter
c. When the principal violates his duties to the agent
d. When the agency is gratuitous
Andrew negligently hit a dog, which lay stunned in the street for a moment and then ran
toward Bill, a bystander, and bit him. In this case:
a. the dog’s action is a foreseeable cause of harm.
b. the dog’s action is a superseding cause of harm.
c. Andrew will be liable to Bill, because the dog’s behavior is a natural consequence of
the situation caused by Andrew’s negligence.
d. Two of the above, (b) and (c).
While a limited partnership interest is transferable, the transferee will become a limited
partner if:
a. the other members consent.
b. he has paid fair market value.
c. he has also donated services.
d. he has consented to the organizational character.
June purchases $8,000 of goods from Will on thirty days’ credit, and Will assigns the
account to Mark. If June finds the goods defective and only worth $6,000:
a. she has no defense against full payment since the account was assigned.
b. she only needs to pay Mark $6,000 if Mark had notified her of the assignment.
c. Mark is entitled to the full $8,000 since he acquires rights greater than those of Will,
who assigned the contractual rights to payment.
d. she must pay $6,000 directly to Will regardless of whether Mark notified her of the
assignment.
e. Both (a) and (c).
In order for a deed to be effective, it must contain all of the following except:
a. a description of the land.
b. a description of the consideration.
c. the signature of the grantor.
d. language conveying title.
Wanda at age 17 purchased an expensive stereo system from Stereo Sales. If Wanda
wishes to ratify this contract, Wanda:
a. must reach the age of majority and ratify the contract as a whole.
b. may do so by express notification at any time before reaching the age of majority.
c. may at any time keep the stereo but avoid any remaining debt owed on the stereo.
d. may do so at any time by express or implied action before or after reaching the age of
majority.
“Value” is defined as:
a. consideration under contract law.
b. a binding commitment to extend credit.
c. an antecedent debt.
d. All of the above.
Acting with reckless disregard for the falsity of the matter, Anita included Joe’s name
and photograph in a list of the FBI’s top ten criminals. Joe has never been convicted of a
crime and is horrified by the thought of being considered a criminal. This:
a. is defamation.
b. is false light.
c. is nuisance.
d. could be either defamation or false light.
Gerard, an adult, contracts with Communiserve to purchase, in installments over a
period of five years, a very large quantity of services that he will probably never need.
Although Gerard understands what he is doing when he enters the contract, he has a
mental condition that impairs his ability to act in a reasonable and rational way. Under
the Restatement:
a. Gerard’s contract is voidable at his option while it is entirely executory.
b. Gerard cannot avoid the contract if Communiserve had no reason to suspect Gerard’s
incompetency.
c. Gerard cannot avoid the contract if the terms are fair.
d. Gerard can only avoid the contract if the terms are grossly unfair.
The 1934 Securities Exchange Act requires certain disclosure during a “tender offer.”
Which of the following best describes this requirement?
a. Whenever stock is acquired with intent to effect a takeover
b. Whenever an offer for more than 5 percent of a class of registered equity securities is
made
c. Whenever 10 percent of a target corporation’s stock is acquired
d. Whenever the acquiring company acquires a “controlling interest” in the target
Which of the following would be an unconditional promise or order to pay?
a. I hereby acknowledge my debt to John Jones.
b. I hereby assign all my rights under this instrument to John Jones.
c. Pay to the order of bearer ten dollars.
d. IOU fifty dollars.
To which of the following does a property owner owe the highest duty of care?
a. A stranded motorist who comes onto the property to seek help
b. A social guest and close friend who have come to the house for a party
c. A client who has come to an accountant’s office in a building which the accountant
owns
d. A neighbor who comes over uninvited to use a backyard lounge chair
ABC Company sells nursery products. It hires only women as sales representatives
because it thinks that its customers relate better to women. This is:
a. a violation of Title VII of the 1964 Civil Rights Act.
b. an example of a bona fide occupational qualification.
c. a violation of the Equal Pay Act.
d. None of the above.
Answer the following:
Which of the following would be considered to be a misrepresentation of a material fact
for purposes of establishing fraud in the inducement?
a. A statement of judgment of value, such as “This is the best car in town for the
money.”
b. “This style of jacket is going to be the most popular style next year.”
c. “This car has a new radiator.”
d. “In my opinion, this is the best buy for the money.”
Which of the following is true about the regulation of pesticide use by EPA?
a. A pesticide may be legally registered if it will perform its intended function without
posing unreasonable risk to humans or the environment.
b. The EPA may balance the economic and social costs and benefits of use of a pesticide
in deciding whether to register it.
c. Once a pesticide is registered the registration cannot be canceled for five years.
d. Both (a) and (b).
e. Both (a) and (c).
An agent can never act for two principals.
If a payor bank gives the provisional settlement as required, it has until the midnight
deadline to return the item.
Before an indorser can be held responsible for payment of a check, the check must be
presented to the drawee bank for payment.
The shareholders normally determine the price for which shares will be issued unless
the charter permits the board of directors to set the price.
Cumulative voting is permitted so the majority of shareholders can keep control of the
board of directors.
Expropriation of property by a foreign government for a public purpose with the
payment of just compensation, but without the consent of the owner violates generally
observed principles of international law.
When a breach of contract occurs, the nonbreaching party is required to take reasonable
steps to lessen or mitigate the damages that he may sustain.
For a misrepresentation to be material, it must be likely to induce a reasonable person to
manifest assent or the maker must know that it would be likely to induce the recipient
to do so.
Corporations may be held liable for crimes.
Delay in notice may be excused where the holder was too busy at work to send notices
that day.
Yukino pays $500 toward the purchase of a boat from Tyler. Although their agreement
for the sale of the boat for $2,200 is oral, courts agree that her part payment and its
acceptance by Tyler make the contract enforceable.
The Orange Grove Limited Partnership would like to make an offering of $2 million in
limited partnership interests under either Rule 505 or Rule 506 of Regulation D of the
Securities Act of 1933. Orange Grove plans to sell to 40 investors, eight of whom have
net incomes in excess of $200,000 per year and net worth of more than $2 million. The
40 investors also include five mutual funds and three insurance companies. The other
investors to whom Orange Grove plans to sell are not experienced investors. Is either
Rule 505 or Rule 506 available to the Orange Grove Partnership?
Because the statute of frauds does not apply expressly to a contract for the formation of
a partnership, usually no writing is required to create the relationship.
An easement in gross is personal to the one individual who obtained that right and will
not pass to another owner of the property.
The Revised Act does not consider a stock dividend issued by ZYX Corporation to its
stockholders a distribution.
What is the difference between a “closed shop” and a “union shop”? What is their legal
status?