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Sarah is 75 years old. She has a serious illness, but she does not want to be kept alive by
extraordinary medical technology. Specifically, she does not want to be kept alive by a
respirator. Which of the following should Sarah use in order to make sure that her
wishes are followed?
A. A living will
B. A codicil
C. A joint will
D. A nuncupative will
The National Collegiate Athletic Association Inc., (NCAA) is incorporated in Indiana.
The NCAA accredits college athletic programs and sanctions and regulates athletic
competitions among its member colleges. The NCAA selects New Orleans, Louisiana
as the site of its men's college basketball 1999 Final Four, with Tulane University as the
host school. To assist Tulane's hosting of the Final Four, NCAA officials make several
trips to New Orleans in the course of one year. For nine days immediately and during
the Final Four, NCAA officials are in New Orleans. Altogether, NCAA officials spend
23 days in New Orleans. Is the NCAA required to qualify to do business in Louisiana?
What is the basic remedial device in cases of Fourth Amendment violations?
A. Exclusionary rule
B. Due process clause
C. Habeas corpus
D. Counterclaim
Evan plans to open a Company named "Maryland" for which her trademark is "M".
This trademark in no way resembles the famous McDonald's Trademark. However, she
fears that the latter might think otherwise and sue her in future. Evan wants to take no
risk and hence seeks the court's judgment on the issue. Can she do it?
A. Yes, she can do it because she wishes to seek the court's opinion.
B. Yes, she can do it under state and federal declaratory judgment statutes.
C. No, she cannot agitate an issue that has not yet arisen.
D. No, she cannot agitate the issue as she knows that the two marks are not similar.
The Elle Corporation manufactures fingernail polish. Suzy buys a container of Elle's
fingernail polish, applies it to her nails, and suffers a severe allergic reaction. She sues
Elle under the implied warranty of merchantability. The test for determining whether
Suzy will recover is whether:
A. the nail polish she bought was suitable for the needs of the average consumer.
B. the nail polish she bought properly performed its function of coloring one's nails.
C. such a reaction in an appreciable number of consumers was reasonably foreseeable.
D. the ingredient causing the reaction was foreign to the nail polish, or natural to it.
Which instrument enables the seller's bank to just act as an agent for collection of the
due amount from the buyer?
A. Confirmed letter of credit
B. Advised letter of credit
C. Negotiable bill of lading
D. Draft
Which of the following is true of necessaries?
A. The liability for necessaries is quasi-contractual.
B. A minor is liable for the necessaries that he/she did not receive.
C. In case of a disaffirmance, the minor need not pay for any necessary.
D. An item is considered a necessary even if the minor already possesses it.
A minor's liability for necessaries supplied to him is quasi-contractual, i.e., the minor is
liable for the reasonable value of the necessaries that he actually receives.
What is the term for being equitably prevented from raising a legal defense?
A. Quid pro quo
B. Estoppel
C. Breach of Contract
D. International Subsidy Agent
The effort by legislatures to cap monetary damages in civil cases is called what?
A. Constitutional Reform
B. Criminal Reform
C. Tort Reform
D. Contract Reform
A "non sequitur" used in an argument is a wrong conclusion:
A. that does not follow from the facts or premises set out.
B. based on a false analogy.
C. that relies on the idea that a popular belief is true.
D. based on an attack against the speaker, not his/her reasoning.
Which of the following statements is true regarding an accommodation surety?
A. An accommodation surety must provide adequate collateral to the creditor.
B. An accommodation surety is usually a professional such as a bonding company, who
is paid for serving as a surety.
C. An accommodation surety receives relatively more protection from courts.
D. An accommodation surety is secondarily liable for the payment of the debt.
The Federal Trade Commission recently instituted an adjudicative proceeding against
OK Corp., a manufacturer of inflatable dolls. OK is alleged to have made deceptive
statements concerning the quality of its product in nationwide advertisements. Which of
the following statements is accurate?
A. If the statements in the OK ads were material misrepresentation that could mislead
reasonable consumers, the FTC's deception standard would require a conclusion that
OK did engage in deceptive advertising.
B. OK may be held to have engaged in deceptive advertising even if all company
employees and executives involved in advertising decisions believed in good faith that
false statements in the ads were true.
C. If the FTC proves that the intent in OK advertisements was to offend reasonable
consumers, then an administrative law judge could order OK to cease making such an
advertising claim.
D. OK cannot be held to have engaged in deceptive advertising if no consumers have
actually been deceived by the OK ads.
A representative is personally liable to a holder in due course that took the instrument
without notice that the representative was not intended to be liable if:
A. the instrument identifies the represented person.
B. the form of the signature does not show unambiguously that the signature was made
in a representative capacity.
C. the instrument categorically states that the representative would be liable even if the
signature has been authorized.
D. it is proved that the original parties did not intend her to be liable on the instrument.
Customs and practices of the business that are known by people in the business and that
are usually assumed by parties to a contract for goods of that type are known as _____.
A. usage of trade
B. warranties
C. courses of action
D. fair norms
Bob contracts to sell Ben 15 bales of hay at $10 per bale. A bale is the accepted
commercial unit in hay transactions. Ben accepts only 9 1/5 of the 20 bales. Ben will
have to pay _____.
A. $100
B. $95
C. $150
D. $15
If there is a conflict between the express terms of the contract and trade usage, the:
A. past course of dealing between the parties will prevail.
B. seller is excused.
C. contract is voided.
D. express terms of the contract prevail.
John receives certain goods from Tom. He promises to pay Tom later. This transaction
is based on a(n) _____.
A. deed of trust
B. unsecured credit
C. mortgage
D. subrogation
When the consideration given in exchange for the collateral promise is something the
guarantor seeks primarily for his own benefit rather than for the benefit of the primary
debtor, the contract:
A. is the opposite of an original contract.
B. is considered void.
C. is outside the statute of frauds.
D. needs to be in writing.
Which of the following instruments is nonnegotiable?
A. "I promise to pay to the order of Carol Reed $40, Jerry Jacobs."
B. A statement in the instrument that it was given in payment of the previous month's
rent.
C. A statement in the instrument that it was given in payment of the purchase price of
goods.
D. "I promise to pay to the order of Meg Raven, at my option, $100 or five baskets of
oranges, Dan Gilbert."
What does the term "judgment-proof" imply about a debtor?
A. He/she has defaulted on a mortgage.
B. He/she has paid the full amount for the transaction.
C. He/she has provided a security interest for the debt.
D. He/she has no property subject to execution.
Which of the following is true about the liability of a dissociated partner for obligations
incurred while a partner?
A. To complete the requirements for novation, a dissociated partner must also secure his
release by the partnership's creditors.
B. Dissociated partners are not liable to partnership creditors for partnership liabilities
incurred while they were partners.
C. Continuing partners must not indemnify dissociated partners from liability on
partnership obligations.
D. A creditor's agreement to release an outgoing partner from liability may be implied,
but usually it is express.
Russ purchases a new television set from Trista's TVs. The television set carries a
four-year express warranty. It was purchased on November 1, 2002 and delivered on
November 3, 2002. On February 3, 2007, after four years and three months of service,
the set collapsed due to a defect covered by the warranty. Russ had discovered this
defect on November 5, 2002 when he turned the television set on for the first time.
When did the Code's statute of limitations begin to run?
A. November 1, 2002
B. November 3, 2002
C. November 5, 2002
D. February 3, 2007
The appointment of another person to perform a duty under a contract is called a(n):
A. assignment.
B. delegation.
C. affidavit.
D. bilateral contract.
When is proof of joint action required for violation of Section 2 of Sherman Act?
A. When a firm enters into an exclusive dealing agreement with a supplier.
B. When more than one firm is charged with a conspiracy to monopolize.
C. Charges of monopolization do not require any proof of joint action.
D. When a firm possesses not only monopoly power but also an intent to monopolize.
A(n) _____ case involves harm caused by the principal's negligence regarding the
agent.
A. respondeat superior
B. direct liability
C. vicarious liability
D. implied warranty
Which of the following has NOT been categorized as a suspect class?
A. Race and national origin
B. Alienage
C. Sexual orientation
D. Illegitimacy
Which of the following occurs at a corporation's organization meeting?
A. Adoption of preincorporation contracts.
B. Authentication of the articles of incorporation.
C. Adoption of bylaws to supplement the articles of incorporation.
D. Creation of preincorporation contracts.
Carol, an Acme Co. employee, regularly takes pens, paper, and other office supplies
from the Acme office supply cabinet and brings them home for her husband to use in
his home office. Carol defends this action by saying that: "I don't get paid enough, and
besides, no one will miss the supplies." This statement is an example of:
A. circular reasoning.
B. false analogy.
C. bandwagon fallacy.
D. a non sequitur.
Which of the following characterizes a trademark?
A. It includes generic terms.
B. It is easier to transfer trademark rights compared to patent rights.
C. Federal registration of a trademark lasts for 10 years.
D. Descriptive marks are protected on the basis of their primary meaning.
What article of the Uniform Commercial Code (UCC) governs the issuance of stocks by
a corporation?
A. Article 8
B. Article 2
C. Article 13
D. Article 9
Which of the following is an example of restrictive endorsements recognized under
Article 3?
A. "Pay to Bruce Zucker in Trust for Jay Zucker."
B. "Pay to Bruce Zucker Only."
C. "Pay to Jay Zucker on the condition that he completes construction on my house by
November 1, 2012."
D. "Pay to the order of my account."
Cyrano hired Roxanne to purchase a yacht. Cyrano did not want sellers to know that he
was the buyer because he was very rich and he thought that sellers would demand a
higher price if they were aware of this. So he instructed Roxanne to inform the sellers
that she was acting for an anonymous buyer. Roxanne followed these instructions and
entered into a contract to purchase a yacht from Richard. However, Cyrano did not like
the yacht that Roxanne selected and refused to pay the purchase price. Richard insisted
that Roxanne herself pay the purchase price. If Richard sues Roxanne to enforce the
contract against her, what will be the outcome?
A. Richard will win because Roxanne did not disclose her principal's identity.
B. Richard will win because Roxanne did disclose that she was acting as an agent, and
not for herself.
C. Richard will lose because Roxanne did disclose that she was acting as an agent, and
not for herself.
D. Richard will lose because Roxanne was acting as an agent with actual express
authority.
Today, a "tort reformer" is someone who wants to:
A. help more injured plaintiffs recover more money.
B. make tort law more clear, coherent, and rational through uniform legislation.
C. deal with the "insurance crisis" by limiting plaintiffs' ability to recover damages.
D. get rid of negligence law and replace it with strict liability.
If a buyer and seller of goods fail to specify in their contract when title is to pass, the
UCC's "gap filler" provision provides that title will pass when:
A. the goods are sent to the buyer's home.
B. the contract is formed.
C. the seller completes obligation with respect to physical delivery of the goods.
D. the buyer pays the purchase price.
