1) dan has leased a site from mark for a period of 2 years. bob is interested in
purchasing it and makes a great offer to him for the site. in this case:
a.dan cannot sell the land because he does not have ownership.
b.dan cannot sell the land, unless he stays on it for more than 5 years.
c.dan can sell the land because he has leased it from mark.
d.dan can sell the land if the amount offered is equal to the value of the site.
2) together, express and implied authority constitute _____.
a.fixed authority
b.actual authority
c.apparent authority
d.traditional authority
3) which of the following is true of the remedies for misrepresentation and fraud?
a.all states allow a victim of fraud to rescind and sue for damages.
b.a person can claim punitive damages for fraud under the tort of misrepresentation.
c.the contractual remedy for innocent misrepresentation is rescission.
d.ratification enables the right to rescind a contract.
4) an easement by prior use is created by:
a.grant.
b.prescription.
c.reservation.
d.implication.
5) who amongst the following can be held liable under section 12(a)(2) of the securities
act of 1933?
a.a consultant who is hired by a company making a public distribution of securities to
improve performance.
b.an auditor who issues an opinion regarding financial statements of a company making
a public distribution of securities.
c.an accountant in the accounts division of a publicly traded company which is issuing
new securities to the public.
d.an underwriter who is involved in issuance of new securities to the public by a
publicly traded company.
6) bill, a senior manager at bizlaw, inc., instructs kim, a mid-level manager, to make
false statements on the performance evaluation of gloria, one of kims employees who
has recently filed a discrimination claim against bill. bill tells kim, look around you.
every manager makes up stories about employees bizlaw wants to get rid of. bills
argument illustrates:
a.bandwagon fallacy.
b.argumentum ad baculum.
c.argumentum ad hominem.
d.circular reasoning.
7) which of the following notifies the defendant that he, she, or it is being sued?
a.summons
b.complaints
c.pleadings
d.interrogatories
8) ward is attempting to introduce oral evidence in an action relating to a written
contract between ward and weaver. weaver has pleaded the parol evidence rule. ward
will be prohibited from introducing parol evidence if it relates to:
a.a modification made several days after the contract was executed.
b.a change in the meaning of an unambiguous provision in the contract.
c.fraud in the inducement.
d.an obvious error in drafting.
9) in a limited partnership, general partners:
a.have the right to manage the business.
b.are not liable for the firms debts.
c.are nonparticipating investors.
d.cannot transfer their ownership interest.
10) the magnuson-moss warranty act of 1975 mainly applies to:
a.presale agreements for products used for commercial purposes.
b.written warranties for products used for household purposes.
c.presale agreements for products used for household purposes.
d.written warranties for products used for commercial purposes.
11) 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.
12) wonder widgets agrees to sell bill buyer 10,000 of its grade a widgets at a price of
$3.00 per widget. after wonder breaches the contract by failing to deliver, bill buys
substitute widgets at a price of $3.20 per widget. for this purchase, bill incurs $200 in
reasonable expenses and saves $100 in shipping expenses. bill then sues wonder for
$2,200. what, if anything, can bill actually recover?
a.nothing.
b.$200.
c.$2,100.
d.$2,200.
13) _____ is the authority the principal wants the agent to possess and is based on the
principals communications or manifestations to the agent.
a.apparent authority
b.actual authority
c.incidental authority
d.traditional authority
14) according to the code classifications of collateral, investment property includes:
a.patents, copyrights, software, and franchises.
b.checks, notes, drafts, and certificates of deposit.
c.stocks, bonds, and commodity contracts.
d.bills of lading, dock warrants, dock receipts, and warehouse receipts.
15) with regard to an assignment, the person to whom the right has been transferred is
called the:
a.obligor.
b.obligee.
c.assignor.
d.assignee.
16) which of the following committees of a board of directors reviews and approves
salaries of high-level corporate executives?
a.executive committee
b.compensation committee
c.nomination committee
d.audit committee
17) a typewriter, which was subject to a prior ucc security interest, was delivered to ed
fogel for repair. fogel, who is engaged in the business of repairing typewriters, repaired
the typewriter. however, the owner of the typewriter now refuses to pay for the services
performed by fogel. the state in which fogel operates his business has a statute which
gives fogel a mechanics lien on the typewriter. fogels mechanics lien:
a.takes priority over a prior perfected security interest under all circumstances.
b.is subject to a prior perfected purchase money security interest under all
circumstances.
c.is subject to a prior unperfected security interest where the statute is silent as to
priority.
d.takes priority over a prior perfected security interest unless the statute expressly
provides otherwise.