In reference to the case in the text, Ex Parte Emmette L. Barran, III, what was the result
after the plaintiff sued the national and local Kappa Alpha organization following
hazing activities?
A. The court ruled that under pure contributive negligence principles, the plaintiff was
entitled to recover.
B. The court ruled that under pure comparative negligence principles, the plaintiff was
entitled to recover.
C. The court ruled that under modified comparative negligence principles, the plaintiff
was entitled to recover.
D. The court dismissed the case on the basis of negligence per se.
E. The court dismissed the lawsuit on the basis that the plaintiff assumed the risk of
harm.
“Missed Payments.” Robin, who loved water sports and relaxing in hot tubs, purchased
a hot tub on an installment plan and was to pay the seller monthly. Her last payment
was made on January 2, 2008. After several attempts at collection, the seller brought a
lawsuit against her for sums remaining on the account on January 3, 2013. Robin
defended on the basis that the statute of limitations had run. The seller claimed,
however, that adequate time remained because the UCC applies a flexible statute of
limitations; and, at any rate, sellers have at least five years in which to sue. Robin also
arranged to purchase a personal watercraft. By contract with the seller, Robin was to
pay an initial deposit within 10 days of the sale at which point she could take
possession of the watercraft making monthly payments thereafter. Recognizing that a
personal watercraft would not allow her to invite all her friends on lake trips, a couple
of days after purchasing the personal watercraft, Robin purchased a pontoon boat.
Because the seller of the pontoon boat demanded cash, Robin paid the total sales price
prior to delivery. Unfortunately, when the pontoon boat was delivered, Robin found that
it had a less powerful motor than the seller represented. Robin notified the seller of the
problem, but the seller claimed to have no obligation to remedy the problem. Although
recognizing that she paid too much for it, Robin decided that since lake season was
underway, she would keep the pontoon boat. Because Robin paid full price for the
pontoon boat, she was unable to pay within 10 days the deposit on the personal
watercraft. The seller refused to deliver the watercraft, and sold it to another customer.
Robin informed the seller that the refusal to deliver the watercraft was wrongful and
that she was going to exercise her right to cover.
Which of the following is true regarding Robin’s rights, if any, as to the personal
watercraft?
A. She has no right to cover although she may sue for damages because, while the UCC
allows for installment sales, deposits are not required in the installment sale situation.
B. She has a right to cover only because she is a consumer, not a merchant.
C. She has a right to cover only if she pays the initial watercraft seller any amount by
which the cost of the watercraft used for cover was lower than the cost of the initial
watercraft.
D. She has no right to cover only because she is a consumer, not a merchant.
E. She has no right to cover, and the merchant was not required to deliver the personal
watercraft.
Federal law is the primary law governing wills.
By law, a document of title may not be negotiable.
A liquidated debt may be the subject of an accord and satisfaction.
The articles of incorporation determine who has the power to amend the corporate
bylaws after the first organizational meeting.
Chapter 11 reorganization may be involuntary but not voluntary.
If proceeds of the sale of real property do not cover the debt, the mortgagee can seek a
deficiency judgment.
According to the pure comparative negligence defense, a defendant must be more than
50% at fault before the plaintiff can recover.
The National Labor Relations Board is the administrative agency that interprets and
enforces the National Labor Relations Act.
Tort law is primarily state law.
A time instrument becomes overdue at any date after the expressed due date on the
instrument.
Aggressors often try to win the favor of a few institutional investors that own large
blocs of shares.
A party cannot be a holder in due course of a non-negotiable instrument.
During the winding-up process, the partners must still fulfill their fiduciary duty to one
another in the sense that they must disclose all information about the partnership assets.
Utilitarianism is a form of consequentialism.
Collateral is the property that is subject to a security interest.
Under a subsidy system, the government gives firms tax credits, low-interest loans,
and/or grants if they install pollution control devices or change their production
methods to reduce harmful emissions.
Undue influence refers to those special relationships in which one person has taken
advantage of his or her dominant position in a relationship to unduly persuade the other
person and interfere with that person’s ability to make his or her own decision.
If a statute is drafted in a manner that is ambiguous with respect to the type of agency
rule making required, a court will interpret the rule as requiring formal rule making.
All states require the showing of some sort of cause before drug testing of employees.
In Russia a transaction involving a promissory note is a legitimate documentary
transaction.
Mistakes in contract law result from untrue statements made by one party to the
contract.
Because ethical issues vary from country to country, international business persons
should not take ethical considerations into account in the decision-making process.
Network Solutions Inc., is funded by the National Science Foundation and is
responsible for registering domain names on the Internet.
China punishes embezzlement and bank fraud less severely than the U.S.
State laws may give employees less, but not more, protection than federal law.
After an audit, the accountant is the legal owner of working papers.
The customer cannot order a stop payment on an electronic fund transfer.
The case of Hill v. Gateway, discussed in the text, ruled that in order to be effective, a
contract must be verbally read to a consumer who purchases a computer over the
telephone.
A security interest may apply to personal property that is not yet in the debtor’s
possession.
To use the assumption of the risk defense successfully, a defendant must prove that the
plaintiff voluntarily and unreasonably encountered the risk of the actual harm the
defendant caused.
Insurance is defined as a contract in which the insured party makes payments to the
insurer in exchange for the insurer’s promise to make payment or transfer goods to
another party in the event of injury or destruction to the insured party’s property or life.
The UCC adopts several common law principles.
Incineration is viewed as the last resort for disposal of hazardous waste.
In some cases, the U.S. Supreme Court functions as a trial court of limited jurisdiction.
A rent escalation clause is typically found in short-term leases.
There is no legally required wording to be used or forms to be filled out for assignments
to be valid.
An arbitrator is more likely to issue a compromise decision than a judge.
A person who is considered an infant under the law cannot be tried as an adult under
any circumstances.
Specific performance usually requires that the seller or lessor cover.
Which of the following is a false document or sign of existence used to perpetrate
fraud, such as making counterfeit money?A. False entries
B. False token
C. False pretenses
D. Ponzi scheme
E. Pretexting
By filing a[n] ______ petition under Chapter 7, creditors can attempt to force a debtor
into bankruptcy.A. Voluntary
B. Involuntary
C. Complaint
D. Accusatory
E. Dispute
“Wrecked Furniture.” Ralph buys new furniture for his living room from Good Times
Furniture. It is agreed that the goods will be placed with a common carrier for delivery.
The contract between Ralph and Good Times is ambiguous regarding whether the seller
had the duty to deliver the goods only to the common carrier’s hands or whether the
seller had the duty to deliver the goods to Ralph’s home. Unfortunately, on the way to
Ralph’s home, through no fault of the delivery driver, the delivery truck was involved in
a collision, and the furniture was significantly damaged.
Which of the following is true regarding the risk of loss at the time the goods were
damaged?
A. The risk of loss was with the furniture store.
B. The risk of loss was with Ralph.
C. The risk of loss was split 50-50 between Ralph and the furniture store.
D. The risk of loss was with Ralph only if the driver is determined to be an agent of the
furniture store.
E. The risk of loss was with the furniture store only if the driver is determined to be an
agent of the furniture store.
Which of the following was the result on appeal in the case nugget Bates County
Redi-Mix Inc. v. Windler, in which a supplier of concrete sought a mechanic’s lien for
the cost of concrete although the concrete had to be removed and replaced based upon
improper installation by a subcontractor unconnected with the plaintiff?
A. The concrete supplier lost because the concrete had to be replaced.
B. The concrete supplier was granted a mechanic’s lien largely because it was not
responsible for the improper installation.
C. The concrete supplier was granted a mechanic’s lien for only 50% of the cost of the
concrete.
D. The concrete supplier was granted a mechanic’s lien for only 75% of the cost of the
concrete.
E. The concrete supplier was granted a mechanic’s lien for only 25% of the cost of the
concrete.
A statement releasing one of the parties to an agreement from all liability, regardless of
who is at fault or what the injury suffered is, would be referred to as a[n] ______
agreement.A. Substantive
B. Adhesion
C. In pari delicto
D. Exculpatory
E. Res Ipsa
What did the U.S. Supreme Court rule in Teresa Harris v. Forklift Systems Inc., the case
in the text involving Title VII and whether psychological injury is necessary in order for
a plaintiff to prevail?
A. That tangible psychological injury is necessary in order to prevail in a sexual
harassment case under Title VII.
B. That whether the victim subjectively perceived the work environment to be abusive
and suffered psychological injury is irrelevant to whether a violation of Title VII based
on sexual harassment occurred.
C. That so long as the environment would reasonably be perceived, and is perceived, as
hostile or abusive, there is no need for it also to be psychologically injurious.
D. That courts should apply a precise mathematical test as prescribed in the case in
order to determine whether psychological damages are available.
E. That whether the conduct at issue is physically threatening is the determining factor
on the issue of whether psychological damages are available.
Which of the following is true regarding whether usage of trade may impose a remedy
in the event of a breach?
A. Usage of trade may not impose a remedy in the event of a breach.
B. Usage of trade may impose a remedy in the event of a breach but it may not impose
an exclusive remedy.
C. Usage of trade may impose an exclusive remedy in the event of a breach.
D. Usage of trade may impose an exclusive remedy in the event of a breach only if both
sides are represented by an attorney.
E. Usage of trade may impose an exclusive remedy in the event of a breach only if a
contract signed by both parties specifically provides as such.
“Stolen Bicycle.” Donnie borrowed the bicycle of his friend Karen. She told him that
she was happy for him to use it for free, but she would appreciate him taking good care
of it. Donnie said nothing in reply. Although Donnie lived in a high crime
neighborhood, he left the bicycle unlocked on his deck. The next morning, he
discovered that the bicycle had been stolen. Donnie told Karen that he was very sorry
about the bicycle. Karen told him that she expected him to pay for it. Donnie refused on
the basis that a thief took the bicycle. Donnie told Karen that he believes he knows the
identity of the thief and that since only Karen has the right to sue to recover the
property, he has no further responsibility.
Which of the following is true regarding the bailment situation, or lack thereof, existing
between Donnie and Karen?A. It was a gratuitous bailment.
B. It was a bailment for consideration.
C. It was a temporary bailment.
D. It was a constructive bailment.
E. There was no bailment because no consideration was provided.
Unless the articles of partnership states otherwise, which of the following is true
regarding the rights of partners to share in profits?A. Distribution of profits is
suspended until the partners amend the articles of partnership to address the distribution
of profits.
B. Partners share in profits in proportion to the amount of capital contributed to the
partnership.
C. Partners share in profits in proportion to the amount of work done for the
partnership.
D. Partners share in profits in proportion to their seniority with the partnership with
partners of equal seniority sharing equally in profits.
E. All partners have a right to share profits equally.
Which of the following references the type of merger that occurs when an acquiring
firm desires to spread into a new market where it does not have a product, merges with
a firm in that market, and continues to produce the other firm’s product in the target
market?A. Horizontal extension
B. Market extension
C. Diversification
D. Vertical extension
E. Product extension
Carla learns that her employer, a healthcare facility, is committing fraud against the
government by filing false Medicare claims. Under which of the following might she
obtain a portion of any recovery obtained by the government?A. RICO.
B. The False Claims Act.
C. The Sarbanes-Oxley Act of 2002.
D. The Medicare Recovery Act.
E. The Healthcare Fraud Act.
A promise to do something that you are already obligated to do is ____.A. Valid
consideration because it is illusory consideration
B. Valid consideration only in the employment context
C. Valid consideration because it is past consideration
D. Valid consideration only if a sale of goods is involved
E. Not valid consideration
In which of the following types of checks does the bank draw on itself to pay a specific
person?A. Certified.
B. Agreed.
C. Acknowledged.
D. Cashier’s.
E. Promise.
Which of the following is true regarding the implied warranty of fitness for a particular
purpose?A. It applies in every case in which an express warranty is found.
B. It applies in every case in which an implied warranty of merchantability is found.
C. It is a common law doctrine not followed by the UCC which recognizes only the
implied warranty of merchantability.
D. It applies in every sales transaction involving a merchant.
E. It may be applied to sellers who are not merchants.
“Exemptions.” Sidney is injured in an automobile accident and cannot work. She cannot
pay her bills and files for bankruptcy relief under Chapter 7. Federal exemptions apply,
and she lists as exempt $25,000 in equity in her residence; interest in a vehicle of
$2,000; interest in jewelry of $400; and retirement funds in her individual retirement
account. Her creditors filed an objection to all claimed exemptions except for the home
equity claim.
What is the status of the exemption she claimed for individual retirement account
funds?A. She will not be able to claim that exemption.
B. The status of the exemption is unclear without further information regarding
beneficiaries of the IRA.
C. She will be able to claim that exemption.
D. She will be able to claim that exemption but only up to $50,000.
E. She will be able to claim that exemption but only up to $25,000.
Which of the following are defenses to an action for libel brought by a public figure in
the United Kingdom regarding a statement made in the United Kingdom?A. Only that
the statements were true.
B. Only that the statements were made in Parliament.
C. Only that the statements were made in court.
D. That the statements were made in Parliament or court.
E. That the statements were true, that the statements were made in Parliament, or that
the statements were made in court.
The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to
individuals on the basis of ____.A. Race, religion, national origin, color, sex, marital
status, or age
B. Race, national origin, color, sex, marital status, or age
C. Race, religion, national origin, color, sex, or age
D. Race, religion, national origin, color, or sex
E. Race, religion, color, sex, marital status, or age
“Bad Hair Day.” Molly started a new hair salon and leased space for the salon from
Peggy. Unfortunately, Molly’s styling caused some problems for customers. One
customer’s hair turned green from her bleaching process, and she burned another
customer with a curling iron. Not surprisingly, Molly had little business and was unable
to pay her lease payments as they came due. Peggy filed a lawsuit against Molly and
obtained a judgment against Molly for $7,000 in past due rent. Peggy asked for a
court-ordered judgment permitting the sheriff to seize and sell Molly’s equipment
including her hair-dryers, pedicure chair, nail polish, and other items, but the judge
refused her request. Peggy did, however, obtain an order allowing her to seize $3,000
held in Molly’s bank account with which to partially satisfy the debt. Peggy also
discovered that Molly had for her personal use a wide-screen television set worth
approximately $1,000 which was being held by Harold, a television repairer for the
costs of repair. Peggy asked him to turn over the television because her lien had priority,
but Harold refused.
Which of the following is the term for what Peggy requested when she requested that
the judge have law enforcement officers seize and sell Molly’s equipment?A. Order of
compliance
B. Order of law
C. Writ of execution
D. Writ of garnishment
E. Writ of debt satisfaction
Which of the following is a reason Congress passed the Private Securities Litigation
Reform Act of 1995?A. To provide protection to companies who issue forecasts of
earnings.
B. To provide stronger penalties against companies who issue forecasts of earnings that
turn out to be wrong.
C. To provide stronger penalties against insiders who trade on forecasts of earnings.
D. To provide protection to insiders who trade on forecasts of earnings.
E. To provide protection to accredited investors who trade on insider information.
Which of the following are promises voluntarily entered into by property owners by
which the owners promise to use or not to use their land in particular ways?A.
Obligatory covenants
B. Public use agreements
C. Approved use requirements
D. Restrictive covenants
E. Zoning
Which of the following was the result on appeal in Equity Fire & Casualty Company v.
Laurence Traver, the case in the text in which an insured on a policy of automobile
insurance mailed a premium to the insurer, but it did not reach the insurer prior to the
expiration date of the policy; and the insurer refused to provide coverage for a motor
vehicle accident that occurred after the expiration date of the policy and before the
premium was received?
A. The court ruled that coverage was required under the policy because of the mailbox
rule.
B. The court ruled that coverage was not required under the policy because of the
mailbox rule.
C. The court ruled that coverage was not required under the policy because the insured
did not meet his obligation of seeing that the premium amount was received by the
insurer in a timely manner.
D. The court ruled that coverage was required because the insured had a grace period of
7 days in order for the payment to arrive.
E. The court ruled that under the unique facts of the case, there was acceptance of the
renewal offer preventing a lapse of the policy.
A ______ is a gift of real property by will.A. Behest
B. Grant
C. Bestowment
D. Devise
E. Bequeath
Which of the following serves to combat bribery of foreign officials?A. The Foreign
Official Bribery Act
B. The International Bribery Prohibition Act
C. The Fair Business Act
D. The International Fair Business Practices Act
E. The Foreign Corrupt Practices Act
What was the result in the Opening Case in which the plaintiff attempted to buy a jet
from Pepsi for Pepsi points and some additional funds?A. The plaintiff prevailed, and
Pepsi had to sell the jet as offered because Pepsi failed to specifically reserve details of
the offer to a separate writing.
B. The plaintiff prevailed, and Pepsi had to sell the jet as offered because Pepsi’s
advertisement was considered an offer which the plaintiff validly accepted.
C. The plaintiff prevailed, and Pepsi had to provide the jet as offered because Pepsi did
not revoke the offer soon enough.
D. The plaintiff did not prevail because the jet was unobtainable as a military aircraft.
E. The plaintiff did not prevail because Pepsi reserved the details of the offer to a
separate writing, and Pepsi had the authority to reject the plaintiff’s offer to purchase.
Under the Restatement (Third) of Torts, which of the following results in strict liability?
A. A manufacturing defect but not a design defect or a failure to warn.
B. A design defect and a failure to warn but not a manufacturing defect.
C. A design defect but not a manufacturing defect or a failure to warn.
D. Both a manufacturing defect and a design defect but not a failure to warn.
E. A manufacturing defect, a design defect, and a failure to warn.
Which of the following is accurate regarding the speed and cost of ADR?A. It is usually
faster and cheaper.
B. It is usually faster but more expensive.
C. It is usually slower and more expensive.
D. It is usually slower but cheaper.
E. No studies have known, so issues regarding the speed and cost of ADR as opposed to
traditional litigation is unknown.
A third party, who is not part of an original contract, but to whom duty to perform
contained in the original contract is transferred is called a[n] _____.A. Delegatee
B. Delegator
C. Assignor
D. Assignee
E. Transferor
Which of the following stages must be experienced before the termination of a
partnership may be considered complete?A. Dissolution only
B. Winding-up only
C. Dissolution and release of claims, but not winding-up
D. Release of claims and winding-up, but not dissolution
E. Dissolution and winding-up, but not release of claims
Without obtaining advance permission, Annie places an unflattering photograph of the
president of the college which she attends on folders that she is selling outside of class
for extra money. Which of the following is true?A. Annie has committed defamation of
the college president in the form of slander.
B. Annie has committed defamation of the college president in the form of libel.
C. Annie has appropriated for commercial gain the photograph which constitutes an
invasion of privacy.
D. Annie has committed both defamation and invasion of privacy toward the college
president.
E. Annie has not committed any tort.
Which of the following is false regarding the Convention on the International Sale of
Goods?A. It applies to transactions involving the commercial sale of goods.
B. National contract law applies in areas not covered by the Convention on the
International Sale of Goods.
C. The Convention on the International Sale of Goods was adopted in 2000.
D. The United States has adopted the Convention on the International Sale of Goods.
E. The Convention on the International Sale of Goods has been ratified by the majority
of states in the developed world.
As set forth in the case in the text, Bily v. Arthur Young & Co., which of the following is
true regarding auditor liability to third parties under the Restatement rule?A. An auditor
retained to conduct an annual audit and to furnish an opinion for no particular purpose
generally undertakes no duty to third parties.
B. An auditor retained to conduct an annual audit and to furnish an opinion for no
particular purpose does undertake a duty to any foreseeable third party users.
C. An auditor retained to conduct an annual audit and to furnish an opinion for no
particular purpose undertakes a duty only to third parties who are financial institutions.
D. An auditor retained to conduct an annual audit and to furnish an opinion for no
particular purpose generally undertakes a duty only to directors of the company who
provide loans to the company.
E. An auditor retained to conduct an annual audit and to furnish an opinion for no
particular purpose generally undertakes no duty to third parties except for financial
institutions and also directors who provide loans to a company.
Which of the following is true regarding how the obligations of sellers/lessors and
buyers/lessees are determined?A. Obligations of parties are determined by the terms the
parties outline in agreements, but not by custom or rules outlined by the UCC.
B. Obligations of parties are determined by the rules outlined by the UCC, but not by
terms the parties outline in agreements or by custom.
C. Obligations of parties are determined by terms the parties outline in agreements and
rules outlined by the Uniform Commercial Code, but not by custom.
D. Obligations of parties are determined by the rules outlined by the UCC and by
custom, but not by terms the parties outline in agreements.
E. Obligations of parties are determined by the terms the parties outline in agreements,
custom, and rules outlined by the UCC.
Which of the following occurs when three conditions are met: one party makes a
promise knowing the other party will rely on it; the other party does rely on it; the only
way to avoid injustice is to enforce the promise?A. Promissory agreement
B. Promissory estoppel
C. Quasi estoppel
D. Quasi agreement
E. Promissory performance
Describe a finance lease and explain how it is different from a regular lease contract.
Jackie is hiring Ron to do clean up and maintenance, as an independent contractor, for
her building which has several tenants. She is aware that Ron has sued some previous
building owners. He however, does a good job, and she would like to hire him. Ron has
agreed to sign an arbitration agreement. What should Jackie do to have a binding
agreement that will be enforced?
Henry’s boss, Jacob, tells him that because he has been such a valuable employee, he
will receive an extra week of vacation. When Henry decides to schedule the vacation,
he reminds Jacob of his statement. Jacob says that he has changed his mind and that he
really cannot afford to let Henry off. Henry says that Jacob has breached the contract he
had with Jacob for an extra vacation week. Assuming injustice cannot be established,
who is right and why regarding whether a valid contract for an extra week off existed?
Define punitive damages, set forth how the UCC handles the issue of punitive damages,
and discuss whether you believe they should be available in breach of contract actions.
Millie mows her own yard to save money. Her neighbor Paul, however, hires a lawn
service to mow his yard. One day Millie is looking out of the window and sees Paul’s
lawn service drive up. Surprisingly, they begin to mow her yard, not Paul’s yard. Millie
thinks that is great and keeps her mouth shut while they mow the yard. Later, she gets a
bill. She calls the owner of the lawn service and says that she does not have to pay
because there was no contract where she agreed to have her yard mowed. The lawn
service says that she is liable for the full amount of its contract. Discuss whether the
lawn service is entitled to any recovery and why or why not.
Sally, who has a candy shop, agreed to sell Ricky, a teacher, all the chocolate candy
bears in her shop for treats for his class. Unfortunately, through no fault of hers, Sally’s
air conditioner went out and the bears partially melted. What are the rights and duties of
the parties in relation to the contract?
As set forth in the text, under what two circumstances are wills usually contested?
List and discuss two reasons why notice of assignment should be given.
Discuss the circumstances that result in an anticipatory repudiation of a contract.
Discuss the rights of a nonbreaching party when faced with anticipatory repudiation.
Alice, a resident of Michigan, claims that Pet Food Company Inc., put out some dog
food that made her dog, Champ, sick. Champ is a prize winning poodle. He survived
the pet food fiasco but only after traveling to a veterinarian in Florida specializing in
poodles and having two very expensive surgeries. Additionally, his ability to sire has
been impaired, and Alice will have no more breeding fees from Champ. Her damages
are $80,000. Pet Food Company Inc., is incorporated in Delaware, with its principal
place of business in Michigan. Alice asks you whether she can sue in federal court.
What would you tell her and why?
Explain the concept of the “dormant commerce clause.”
As set forth in the text, list the types of information that articles of partnership usually
include.
Explain the effect of auctions held with reserve and without reserve, and discuss what
happens if nothing is said regarding whether an auction is being held with reserve or
without reserve.
Trudy, who was angry with her business law teacher, Tom, because of a hard test,
angrily watched him come into the fast food restaurant where she worked as a cashier.
She noticed that he had on his new designer suit, the one he wore when he wanted to
impress the chancellor. Trudy completely lost her temper, threw a milkshake on Tom,
and then reached across the counter and punched him in the eye. The police were
called. Tom says that he wants both Trudy and the owner of the restaurant, Sally,
arrested. Assuming that Trudy committed the crimes of assault and battery, is Sally also
criminally responsible? Set forth reasoning in support of the conclusion.
How are arbitrations similar and dissimilar to a court trial?
Rita, a lawyer, hired Sam to do general clerical work for her. She maintained control
over his work, gave him day-to-day instructions regarding his duties, paid him on an
hourly basis, and furnished all equipment he needed. Rita for tax purposes claimed Sam
as an independent contractor. She was audited by the IRS who took the position that
Sam was an employee. Is Sam an independent contractor, why or why not, and what is
the effect of a finding of employee or independent contractor as far as the IRS is
concerned?
What needs to be shown under the UCC for goods to be found merchantable?
Set forth the factors referenced in the text that enter into a finding of whether undue
influence exists.
Set forth the ways in which an offer can be terminated.