1) Some countries provide insurance for their citizens’ investments abroad.
2) Clothing is a “necessary.”
3) The Consumer Product Safety Commission conducts research on the safety of
individual consumer products and maintains a clearinghouse on the risks associated
with various products.
4) Production techniques are not trade secrets.
5) Under the authority of a long arm statute, a court can exercise personal jurisdiction
over certain out-of-state defendants.
6) Under the UCC, the aggrieved party is not limited to one exclusive remedy.
7) The government does not need a subpoena or a warrant to inspect an employer’s file
of I-9 forms.
8) A straight majority vote of the shares represented at a shareholders’ meeting is
usually required to pass resolutions.
9) The alter-ego theory is applied when a corporation is so dominated and controlled by
an individual or group that the separate identities of the person (or the group) and the
corporation are no longer distinct.
10) It is notan unfair labor practice for an employer to contribute financial or other
support to a labor organization.
11) The Clean Water Act permits the filling or dredging of wetlands without a permit.
12) Generally, all contracts are assumed to be shipment contracts if nothing to the
contrary is stated in the contract.
13) In every situation involving a forged drawer’s signature or an alteration, a bank
must observe reasonable commercial standards of care in paying on a customer’s check.
14) A professional can not be liable for fraud if he or she did not act with fraudulent
intent.
15) Brady knows that the brakes on his car do not work, but he tells Celia, a potential
buyer, that there are no problems with the car. On this assurance, Celia buys the car. On
learning the truth, she may sue Brady for
a.trade libel.
b.conversion.
c.fraudulent misrepresentation.
d.appropriation.
16) Buena files a suit against Credit Services Corporation under the Civil Rights Act of
1964, alleging employment discrimination on the basis of gender on a disparate-impact
theory. To succeed, Buena must show that Credit Services hires fewer women than the
percentage of
a.qualified women in the local labor market.
b.qualified women in the United States.
c.women in Credit Services’s state.
d.women who apply to Credit Services for work.
17) Downtown Contractors and Equipment Rental Corporation are parties to an oral
agreement for a one-year lease of a crane with payments totaling more than $10,000.
They may satisfy the Statute of Frauds by
a.mutually agreeing not to commit fraud.
b.repeating the terms in a phone call.
c.setting out the terms in a memo.
d.shaking hands on the deal.
18) Jade signs an advance health directive that states what medical treatment may be
used after a serious accident or illness. She indicates that she wants certain lifesaving
procedures to be undertaken unless the treatment will not result in a reasonable quality
of life. This is
a.a durable power of attorney.
b.a health-care power of attorney.
c.a living will.
d.a living trust.
19) Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government
of Bolivia seizes the property for an illegal purpose without paying just compensation.
This is
a.confiscation.
b.defalcation.
c.dumping.
d.expropriation.
20) Rubin writes a check drawn on his account at Clearwater Bank and payable to the
order of Gwyn. The bank does not pay the check. Rubin is
a.absolved of liability on the check.
b.liable to Gwyn for the amount of the check.
c.liable to the bank for the amount of the check.
d.entitled to payment of the amount of the check from Gwyn.
21) Business Banners, Inc., and Cam’s Auto & Truck Sales Dealership enter into a
contract for a sale of thirty advertising banners emblazoned with Cam’s logo. The terms
do not explicitly or clearly indicate whether it is a destination or shipment contract. A
court would normally presume that it is
a.a delivery ex-ship.
b.a destination contract.
c.a shipment contract.
d.none of the choices.
22) Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger.
For this promise to be enforceable under the doctrine of promissory estoppel,
a.the Charger must be considered a customized good.
b.Carolina must act in reliance on Benito’s promise to her detriment.
c.Benito’s promise must have been overheard by a third party.
d.there must be written evidence of the deal.
23) Effervescent Egg Cream Company’s trademark is used by Fizzy Drinks without its
owner’s permission. Fizzy’s use of the mark is actionable provided that
a.consumers are confused.
b.Fizzy’s use is intentional.
c.Fizzy and Effervescent are competitors.
d.Effervescent’s mark is registered.
24) The payment of Fritz’s debt to Gianini is guaranteed by Fritz’s personal property.
Gianini is
a.a debtor.
b.a secured party.
c.a secured transaction.
d.a security interest.
25) LaDonna signs a one-year lease with Mae to occupy an apartment near the
University of Iowa. LaDonna needs the apartment for two semesters only and may have
to sublet it for the rest of the term. La Donna’s tenancy is
a.a periodic tenancy.
b.a tenancy at will.
c.a tenancy at sufferance.
d.a fixed-term tenancy.
26) Qiana gives Rick a $50 check as payment for a debt. Rick crudely raises the amount
of the check to $500 and transfers it to Smart Phones & Minutes Store for a new phone.
Smart Phones & Minutes deposits the check in its Trade Market Bank account. Qiana is
liable for the payment of $500 to
a.no one.
b.Trade Market Bank.
c.Rick.
d.Smart Phones & Minutes.
27) The checks that you wrote are negotiable instruments that act as substitutes for
cash.
28) Through agents, a principal can conduct only one business operation at a time.
29) An unauthorized signature is wholly inoperative and will not bind the person whose
name is signed or forged.
30) Administrative agencies at various levels of government work together and share
the responsibility of enforcing particular regulations.
31) Even if a promissory note is incomplete at the time a maker signs it, the maker is
still obligated to pay.
32) An agency relationship created for a purpose that is contrary to public policy may
still be enforceable.
33) An acceptance can impose new conditions or change the terms of the original offer
without rejecting it.