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A gratuitous assignment is revocable by the assignor.
a. True
b. False
SEC regulations concerning fraud in securities transactions apply to:
a. all securities transactions involving interstate commerce.
b. only securities registered under the 1934 Act.
c. only securities registered under the 1933 Act.
d. securities registered under both the 1933 and 1934 Acts.
Carroll, Daniels, and Elmore organized their veterinary practice as a professional
corporation. This organization of professionals will be treated as a partnership for
liability purposes.
a. True
b. False
Section 1 of the Sherman Act does not prohibit concerted action.
a. True
b. False
Which of the following is true regarding unconscionability under the Code?
a. It is defined in Article 2 as "extortionately harsh, showing no regard for conscience."
b. The Code denies or limits enforcement of an unconscionable contract for the sale of
goods.
c. Unconscionability may be substantive, but it cannot be procedural.
d. Unconscionability of a contract for the sale of goods makes the contract void.
Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the
broker to register the stock in her husband Warren's name. If this stock is intended as a
Valentines gift, Warren becomes:
a. a donee beneficiary.
b. a transferee.
c. a delegatee.
d. an assignee.
An instrument is payable to order if it is payable:
a. to the order of an identified person.
b. to an identified person or order.
c. Both of these.
d. Neither of these.
The main categories of the law are (a) substantive and procedural, (b) public and
private, and (c) civil and criminal.
a. True
b. False
The Consumer Product Safety Commission cannot issue an order banning a hazardous
product from the market.
a. True
b. False
A contract has an open price term if the agreement:
a. says nothing as to price.
b. provides that the parties shall agree later as to the price and they fail to so agree.
c. fixes the price in terms of some agreed market or other standard, as set by a third
person or agency, and the price is not so set.
d. All of these.
e. None of these.
A buyer's right to purchase, in good faith and without unreasonable delay, substituted
goods from Seller B when Seller A breaches a sales contract is:
a. cover.
b. specific performance.
c. replevin.
d. reclamation.
Brad doesn't like Jordan and especially dislikes Jordan's new felt hat, so he intentionally
knocks it off Jordan's head in order to embarrass Jordan. Brad has committed a battery.
a. True
b. False
Point-of-sale systems permit customers to charge items to a charge account at a bank.
a. True
b. False
The type of moral equality espoused by John Rawls is:
a. freedom to do what one wishes.
b. social and material equality.
c. freedom from government regulation.
d. equality of opportunity.
The most important federal statute(s) governing hazardous substances include(s):
a. SARA.
b. CEQ.
c. FIFRA.
d. Both CEQ and FIFRA.
e. Both SARA and FIFRA.
An employer's interference with the employee's right to bargain collectively is not an
unfair labor practice.
a. True
b. False
The Recreation and Parks Agency of the state government has six employees and is
interviewing for a person to teach gymnastics and arts and crafts to 3-5 year olds. Ed,
age 68, applies but is told he is too old. If he sues under the Age Discrimination in
Employment Act, the agency's best defense would be that:
a. they are not subject to the Act since they only have six employees.
b. the agency, as part of state government, is not subject to the Act.
c. Ed is not able to do gymnastics.
d. this is not a salary dispute.
"Capital surplus" would be credited with the excess received over par value for shares
issued by the corporation.
a. True
b. False
At common law, the risk of loss or damage to goods identified under a contract of sale
falls upon:
a. the buyer.
b. the seller.
c. the party who had title or ownership of the goods at the time of the loss or damage.
d. the designated party as determined by the court.
Issues of fact are decided by the jury.
a. True
b. False
Under the RUPA, a partner violates the duty of loyalty if the conduct furthers the
partners own interest.
a. True
b. False
The World Bank established the Multilateral Investment Guarantee Agency to
encourage increased investment in developing nations.
a. True
b. False
Which of the following is true of restrictive covenants?
a. They are widely used in subdivisions.
b. Restrictive covenants are construed strictly against a party asserting their
applicability.
c. They may bind lot purchasers as though the restrictions had actually been asserted in
their own deeds.
d. All of these.
Lowell recently graduated from college with a degree in business administration, but
has been unable to find a job. He decided to file a Chapter 7 petition with the
Bankruptcy Court. He has the following assets:
a. $1,200 in equity in a new car which he purchased with a loan from the bank.
b. $5,000 in equity in his residence, a condominium secured by a mortgage.
c. $100 a week in unemployment benefits after being laid off from his job as a
burgermaker at a local restaurant.
d. $750 in business administration books including a hardly used copy of Mann and
Roberts, Essentials of Business Law and the Legal Environment.
e. a $1,000 retainer for his teeth prescribed by his orthodontist.
His debts are as follows:
a. $10,000 in student loans.
b. $20,000 to the bank for his car, which is secured by the car.
c. $5,000 in unsecured credit card debts.
Under federal exemptions, what can he keep? What will each of the creditors receive?
Explain.
Steven is a manufacturer's representative for Incell Corporation. One day he receives a
big-screen television as a gift from one of the clients he contacts on behalf of Incell.
a. Steven must account to Incell for the gift he has received.
b. The big-screen television belongs to Incell rather than to Steven.
c. If he keeps the TV without telling Incell, he will have breached his fiduciary duty.
d. All of these are correct.
Fraud in the inducement will render an agreement void.
a. True
b. False
Which of the following is included within the term "property" for purposes of
procedural due process?
a. Real property.
b. Social security payments.
c. Food stamps.
d. All of these.
Destruction of the subject matter has what effect on the offer?
a. The offer is terminated.
b. The offer is delayed until additional subject matter can be located.
c. This creates an impossibility of fact that does not terminate the offer.
d. The offer is merely delayed under the "Hardship Rule."
The Uniform Commercial Code does not apply to:
a. employment contracts.
b. service contracts.
c. insurance contracts.
d. contracts involving real property.
e. All of these.
If Marguarite promises to pay Neal $300 not to defame her, the promise is
unenforceable because tort law imposes a preexisting obligation on Neal to refrain from
such an act.
a. True
b. False
Mary orders a dress for $1,000. The designer sends the wrong size. Mary doesn't
inspect the dress on arrival and therefore doesn't discover the nonconformity until the
day before she is to wear it to her first board meeting as president of Tri-State
Engineering. She calls the designer and sends the dress back, but it is lost in the mail.
Mary's insurance would cover $400 of the loss. The designer's insurance would cover
$900. Who is liable?
a. Mary will bear the whole loss because she accepted the goods.
b. The designer will bear the whole loss because Mary returned the nonconforming
goods.
c. Mary will owe $100, the designer $900.
d. The risk is Mary's to the extent of $400.
The Norris-La Guardia Act gave federal courts the power to issue injunctions in
nonviolent labor disputes.
a. True
b. False
