Which of the following is correct with regard to the Bill of Rights?
a. It serves as a restriction on the powers and authority of the federal government.
b. It does not apply directly to the states, but the Supreme Court has held that the
Fourteenth Amendment makes many of its principles applicable to the states.
c. It consists of ten amendments to the U.S. Constitution that were adopted in 1791.
d. All of these are correct.
A false communication made with knowledge of its falsity and with the intent to induce
another to act is known as:
a. disparagement.
b. fraudulent misrepresentation.
c. defamation.
d. invasion of privacy.
After an FOIA request has been made, an agency has __________ working days within
which to indicate whether it intends to comply.
a. three
b. ten
c. twenty-one
d. thirty
There are rigorously enforced restrictions regarding both number and qualification of
investors who purchase securities under Regulation A.
Which of the following is true with regard to securities regulation in foreign markets?
a. Anti-fraud provisions apply where there is conduct in the U.S. relating to a violation
of the federal securities laws.
b. Foreign issuers of securities must register them in the U.S. unless an exemption is
available.
c. No specific regulations are allowed because of the act of state of doctrine.
d. None of the above.
All but which one of the following would be exempt from bankruptcy under the federal
law?
a. $500 received in child support.
b. A $300 cocktail ring.
c. A $200 cashmere sweater.
d. A $10,000 truck.
How are ALJs selected?
a. They are appointed by the president and then confirmed by Congress.
b. They are elected by Congress.
c. They are appointed by the president without confirmation by Congress.
d. They are appointed by the agency through a professional merit selection system.
Which of the following would NOT meet the signature requirement for a writing to
satisfy the Article 2 statute of frauds provision?
a. A typewritten name.
b. Handwritten initials.
c. A printed name.
d. All of the above meet the signature requirement.
In March, Margaret made a loan to Pete for $10,000. Three months later, she began to
hear rumors about Pete’s failing financial condition. When in late July, Pete asked her to
loan him an additional $2,000 to buy inventory, Margaret required a security interest in
the inventory and also demanded that Pete secure the first loan with his personal
automobile. In September, Pete filed bankruptcy. Will these security interests stand up?
a. Yes, if they are properly filed.
b. Yes, since they are for antecedent debts.
c. No, both will be voidable preferences.
d. No, the security interest in the automobile would be a voidable preference.
The scope of an EIS:
a. does not apply to psychological effects.
b. does not apply to the urban environment.
c. is narrowly construed.
d. applies to a broad range of types of effects.
Fixit Co., a four-person business, employs Wesley as a full-time mechanic. One day
while welding a frame modification on a sports car, Wesley paid no attention to a
clearly visible oil leak dripping from the engine compartment of the car. The welding
torch ignited the oil, causing a fire in which Wesley was badly burned. Which of the
following BEST describes the rights of the parties?
a. Fixit is liable to Wesley under a workers’ compensation statute despite the fact
Wesley may have been contributorily negligent when he ignored the oil leak.
b. Wesley cannot recover workers’ compensation since federal law requires that an
employer have at least 25 employees before he must provide workers’ compensation
benefits.
c. Fixit is not liable to pay Wesley workers’ compensation since Wesley fell below a
recognized standard of care by auto mechanics.
d. Wesley cannot recover workers’ compensation benefits, but can sue Fixit for failing
to provide a safe working environment.
A seller’s incidental damages for a buyer’s breach would include all but which one of
the following?
a. Cost to store the widgets in buyer’s city.
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.
The owner of legal title to the property in a trust is the:
a. grantor.
b. settlor.
c. beneficiary.
d. trustee.
The agent may be subject to liability to her principal for breach of the duty of obedience
if she:
a. entered into an authorized contract and the principal has changed her mind.
b. delegates her authority in any way and under any circumstances.
c. committed a tort for which the principal is now liable.
d. All of the above.
__________ jurisdiction refers to the authority of a particular court to judge a
controversy of a particular kind.
a. Exclusive federal
b. Subject matter
c. Concurrent federal
d. None of the above.
Agreements by which the seller or lessor of a product conditions the agreement upon
the buyer’s or lessee’s promise not to deal in a competitor’s goods are:
a. tying arrangements.
b. exclusive dealing arrangements.
c. attempts to monopolize.
d. None of the above.
Under the UCC, a(n) __________ is a sequence of previous conduct between the
parties to an agreement which may be fairly regarded as establishing a common basis of
understanding for interpreting their conduct under the contract.
a. course of dealing
b. usage of trade
c. course of performance
d. extrinsic set of evidence
Marjorie has been cared for by her family physician for 35 years. She decides to assume
the mortgage on his new clinic. The contract is automatically invalid because of undue
influence.
Apparent authority can arise where there is an undisclosed principal as well as where
the principal is disclosed.
What is the broad category of defenses available to the tort of defamation? Under what
circumstances can the U.S. Constitution be used as a defense to an action for an
intentional tort?
Some states require the lender to forfeit two or three times the amount of usurious
interest charged.
The owner of a collective mark must produce the goods it seeks to mark.
Express voluntary assumption of the risk is a defense to an action based upon strict
liability.
Injunctive relief is a common remedy under the Lanham Act.
When a court uses the equitable remedy of reformation, the court creates a new,
enforceable agreement for the parties.
Misuse of legal procedure can occur even when the plaintiff succeeds in the litigation.
A principal may be liable where his agent sells liquor to an underage person even
though the principal did not authorize the act.