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1) the first amendment prohibits state regulation of deceptive commercial advertising.
2) a person cannot be a holder in due course of a negotiable instrument if, when she
takes it, the instrument is irregular or some important or material term is blank.
3) it is unimportant for the court, whether the interpretation of a statute is consistent
with the legislative purpose; it is the actual language (plain or ambiguous) of the statute
that needs to be studied.
4) property held in joint tenancy or tenancy by the entirety is not controlled by a will,
5) only those shareholders who sign a shareholder voting agreement are bound by it.
6) the takings clause applies only in situations where the federal government or the
states "take" private property through formal condemnation procedures.
7) in rem jurisdiction is based only on the fact that property of the defendant is located
within the state.
8) chapter 13 of the bankruptcy code gives individuals an opportunity to pay their debts
free of such problems as garnishments and attachments of their property by creditors.
9) most information-gathering efforts by administrative agencies are considered so
intrusive as to amount to a prohibited search and seizure.
10) obscene noncommercial expressions receive no first amendment protection.
11) in general, an employee who has been fired and who wants to sue for breach of
contract need not do anything to limit or mitigate his damages, such as looking for
another job. this would unfairly benefit an employer who has wrongfully breached a
contract.
12) generally, forum selection clauses in form agreements are unenforceable.
13) which of the following gives the president executive power?
a.congress
b.the supreme court
c.the u.s. constitution
d.state legislatures
14) a _____ occurs when a tenant remains in possession of the property (holds over)
after a lease has expired.
a.periodic tenancy
b.tenancy at sufferance
c.tenancy at will
d.month-to-month tenancy
15) in the famous dupont cellophane case, the supreme court ruled that even though
dupont had a 75 percent market share in cellophane, it did not have monopoly power in
cellophane, because:
a.other functionally equivalent products were available in the market.
b.dupont had not acquired its market power through improper means.
c.cellophane was not a significant product in interstate commerce.
d.inference of monopoly power requires market share in excess of 80 percent.
16) the electronic signatures in global and national commerce act (e-sign):
a.invalidates agreements between parties conducting transactions by electronic means.
b.states that electronic transactions on subjects covered by the statute of frauds require
an additional writing.
c.overrides state laws that are inconsistent with the ueta.
d.creates barriers to e-commerce by invalidating electronic records and digital
signatures.
17) which of the following instances of lending is most likely to be covered by the truth
in lending act (tila)?
a.a savings and loan association extends a $30,000 credit to a retail consumer.
b.an auto retailer extends a $25,000 credit to a buyer payable in five equal installments.
c.an accountancy firm extends a $10,000 one-time credit to an employee.
d.a bank extends a $20,000 credit to a farmer for use in agricultural purposes.
18) mark is a partner in harbin associates, a partnership. the term of the partnership
agreement is one year and includes a clause on buyouts. after the term expires, mark
decides to dissociate while the remaining partners wish to continue. under the rupa:
a.the remaining partners must wind up and terminate the partnership.
b.they must buy out mark of his interest on marks demand for the same.
c.they must not pay mark the greater of the liquidation price or the sale price of the
business.
d.they can renew their partnership agreement.
19) under a(n) _____, the sellers bank agrees to assume liability on the letter of credit.
a.confirmed letter of credit
b.advised letter of credit
c.negotiable bill of lading
d.revocable letter of credit
20) lido adopted a policy under which its employees aged over 50 years would be given
the preference of availing company sponsored transport facility. marina, aged 55 years
was provided transport facility. however henry, aged 46 years was denied the same.
henry challenged the company policy as violative of the age discrimination in
employment act (adea) which forbids discriminatory preferences for the young over the
old. will henry succeed in the court of law?
a.yes, as per the plain meaning rule of statutory interpretation.
b.yes, as per the rule of general public purpose.
c.no, as per the rule of legislative purpose.
d.no, as per federal law.
21) in january 2002, a court with the necessary subject-matter jurisdiction holds marvin
mentally incompetent and appoints a guardian for him. in november 2002, marvin
escapes his guardians care and takes off on his own. while eating lunch with clara, who
knows about marvins condition, marvin signs an agreement to sell a valuable property
he owns. when he signs the contract, marvin believes that he is the president of the
united states signing an important treaty. the agreement between marvin and clara is
best described as:
a.void.
b.voidable.
c.unenforceable.
d.perfectly valid, if the price clara pays for the property is fair.
22) which of the following is true of contracts involving people suffering from mental
illnesses?
a.contracts of people suffering from a mental defect at the time of contracting are
usually considered to be enforceable.
b.a person disaffirming on the ground of mental impairment need not return any
consideration given by the other party.
c.a person disaffirming on the ground of mental impairment is liable for the reasonable
value of necessaries.
d.a person incapacitated by mental impairments cannot ratify a contract if he/she
regains his capacity.
23) the fourth amendment to the u.s. constitution:
a.protects persons against all searches and seizures.
b.provides protection to places or items as to which the court found no reasonable
expectations of privacy such as open fields and personal bank records.
c.provides protection to matters such as voluntary conversations between criminal
defendants and government informants.
d.protects persons against arbitrary and unreasonable governmental violations of their
privacy rights.
24) 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
25) jackie collins is issued a check payable to the order of jacky collens. she takes the
check to the bank. in order to cash the check she has to:
a.sign either jackie collins or jacky collens.
b.sign only jackie collins.
c.sign only jacky collens.
d.sign both jackie collins and jacky collens.
26) which of the following actions is most likely to adhere to the magnuson-moss
warranty act of 1975?
a.a seller does not disclose any limitations on the duration of implied warranties.
b.a sellers written warranty does not include information on the duration of the
warranty.
c.a seller refuses to disclose warranty terms to a buyer before the sale.
d.a seller fails to give a written warranty to a consumer for a consumer product.
27) with the emergence of comparative negligence and comparative fault, some states
have eliminated assumption of risk as a defense. does this mean that the plaintiff of the
risk and his voluntary acceptance of it have no role to play in negligence law? why or
why not?
28) what is the significance of the instrumentalist attitude in implementing the law?
29) doug dillard owns a house that he presently rents out to a family. dillard would like
to convert the house into commercial space (for a store or offices), because the rent he
could charge for the property as commercial space would exceed what he is realistically
able to charge for the house as a dwelling. the house is located, however, in an area
zoned by the city for residential uses only. this means that dillard cannot convert the
house to commercial space unless the city grants him a zoning variance, something the
city has refused to do. dillard has therefore sued the city on the theory that the zoning
ordinance and the refusal to grant a variance amount to a taking of his property and
entitle him to just compensation under the fifth amendment. will dillard win his case?
why or why not?
30) abc is a nonprofit corporation formed by alex. as its promoter, alex made a few
contracts with johnsons inc. the following year, alex formed another for-profit company.
meanwhile, johnsons inc., claimed that alex has not honored the contracts he made with
them as promoter of abc. is alex liable for those contracts? if not, what remedies are
available for johnsons inc.?
31) joe loser enters into an investment scheme with some reputed financiers. to get joes
money, these people lie to joe about several present facts that are critical to the
investment scheme. later, joe sues to rescind the investment contract on the basis of
fraud. while joe is on the stand, the attorney for the other parties asks him: mr. loser,
why did you enter this deal in the first place? joe says: for the one and only reason: i
admired these men tremendously and figured that any deal good enough for them was a
deal i wanted in on too. the details didnt matter; if they were in it, i wanted to be in it
too. joe has just blown his fraud case. why?
32) bunyan corp. has patented a revolutionary chainsaw. in order to maximize the
revenues from its patent and recover its research and development expenses, bunyan
requires other manufacturers that make the chainsaw under license from bunyan to
adhere to a minimum price schedule. bunyan also requires its retail dealers to adhere to
a minimum resale price schedule. the justice department has challenged bunyans
marketing practices as unlawful. is the challenge valid? explain your reasoning.
33) b.g. disco purchased a property insurance policy and named himself as the
beneficiary. disco had no ownership interest in the house at the time he purchased the
policy. the house was in fact owned by his aunt, polly espy. he procured the insurance,
however, because he hoped to inherit the house at some future date and thus wanted to
protect that potential interest. a month after disco purchased the policy; aunt pollys
house was destroyed by fire, a covered peril. is disco entitled to collect under the
insurance policy? explain your reasoning.
34) ben, an accountant in los angeles, interviewed with matt, a cpa in san francisco. at
the end of his interview, matt, the cpa, told ben: i look forward to working with you.
please let me know if i can help you prepare for your move to san francisco. ben
returned to los angeles, quit his job, gave a 30-day notice to his landlord, rented an
apartment in san francisco, and moved to san francisco. ben then called matt to ask if he
could start his job the following week. matt replied that ben had no job with him. ben
wants to recover the cost of moving expenses from matt. under what legal theory may
he proceed? discuss the arguments that ben and matt will each make if the claim is
brought.
