The final act of winding up a dissolved partnership is the distribution of assets.
Answer:
An agent’s exercise of apparent authority, in the absence of actual authority, is in
violation of the agent’s duty to the principal.
Answer:
S Corporations are similar to partnerships in that corporate tax is paid.
Answer:
A draft is a form of commercial paper that involves a promise to pay money.
Answer:
Emma had contracted with Queen Arts to perform a ballet. A day before the program
there was a fire and the dance floor was burnt and Emma could not perform. Since
Emma cannot perform her contractual duties, she is liable for material breach.
Answer:
A forged indorsement will not prevent a person from becoming a holder in due course.
Answer:
Unless the circumstances of the relationship suggest that the agent intended to act for
free, a duty to pay the agent is implied.
Answer:
The exclusive dealing clause permits the licensee from providing goods or services that
are competitive with those supplied by the licensor.
Answer:
A conveyance of real property also transfers the fixtures associated with that property,
even if the fixtures are not specifically mentioned.
Answer:
The warranty of fitness for a particular purpose applies only to merchants.
Answer:
Miss Shell bought eyeglasses from Vision Co., but she failed to make her payments.
The optician’s collection agency, the D. Siplin Company, responded very
enthusiastically. Siplin phoned Shell about 15 times daily, including calls after
midnight. Calls and letters were directed to her employer, her neighbors, and her
minister telling them about her indebtedness. Siplin also posted a notice in Vision Co.’s
window stating that Shell was behind in her payments, and mounted the same message
on a billboard. Shell was admitted to the hospital with a nervous breakdown. Discuss
her possible legal remedies against Siplin.
Answer:
Negligence is an intentional breach of duty that may or may not result in harm to
another.
Answer:
Consent can be a defense to battery only if the consent is freely and intelligently
given.
Answer:
Section 11 of the 1933 Act is considered a radical liability section because the
defendant has the burden of proving that he exercised due diligence.
Answer:
According to the Fifth and Fourteenth Amendments, the government can take real and
personal property for public use without compensating private property owners.
Answer:
The rights of beneficiaries are superior to the rights of creditors under a will.
Answer:
A surety is a person who is liable for the payment of another person’s debt.
Answer:
The UCC and the U.N. Convention of Contracts for the International Sale of Goods
both hold that acceptances are effective when they are dispatched.
Answer:
The Fair Credit and Charge Card Disclosure Act requires more detailed and uniform
disclosure by credit and charge card issuers at the time of application by the
consumers.
Answer:
A business can reduce the risk of suffering devastating losses in the event of an
expropriation through licensing.
Answer:
Which of the following is TRUE of limited partnerships?
A. Limited partners are liable for the debts of the partnership.
B. The partnership must file a certificate with the secretary of state.
C. Limited partners are fiduciaries.
D. Limited partnerships can be created only under federal statutes.
Answer:
Apparent authority may exist:
A. only if actual authority has been conferred.
B. if a principal has unintentionally permitted third persons to believe a person is her
agent.
C. if the principal specifically describes the extent of the agent’s powers in writing or
orally and makes him/her a special agent.
D. when the conduct of the principal causes a third person reasonably to believe that
another has the authority to act for the principal.
Answer:
An intervening force, which happens after the defendant’s negligent act and contributes
to the plaintiff’s injury, can excuse the defendant from liability if:
A. it was unreasonable.
B. it was proximate.
C. it was unforeseeable.
D. it was highly extraordinary.
Answer:
Which of the following statements is TRUE about the Miranda warning?
A. It is a protection offered to the U.S citizens under the Eighth Amendment.
B. It gives defendants the right to a speedy, public trial by a jury of their peers.
C. It allows accused persons the right to confront accusers and cross-examine them.
D. It gives people charged with a criminal offence the right to be represented by
effective counsels.
Answer:
Which of the following would terminate an offer without notice to the offeree?
A. Enactment of a statute making the contract illegal after acceptance.
B. Physical inability of the offeree to perform.
C. Promissory estoppel.
D. Insanity of either party.
Answer:
A person lacking mental capacity must return the other party to status quo when:
A. the other party was aware of the person’s lack of mental capacity.
B. the person lacking mental capacity has already enjoyed the product of the agreement.
C. the other party was unaware of the person’s lack of mental capacity.
D. the person lacking mental capacity has passed on the product of agreement to
someone else.
Answer:
(p. 425; 426) When an agent breaches a duty owed to the principal, the agent:
A. may not be discharged until the contract has expired.
B. may be discharged without liability in spite of an unexpired contract.
C. may be discharged only if the principal can show actual damage.
D. may not be discharged until contractual damages are paid.
Answer:
Franchising:
A. can be conducted as a sole proprietorship or a corporation but not as a partnership.
B. typically involves a corporation as a franchisor.
C. does not include the risk of violating federal and state antitrust laws under any
circumstances.
D. is not contractual.
Answer:
Liability on negotiable instruments flows from:
A. proper payment of the instrument.
B. signatures on the instruments.
C. non-presentment of an instrument.
D. writing “without recourse” on the instrument.
Answer:
The Employment Retirement Income Security Act of 1974:
A. primarily requires employers to establish pension plans.
B. primarily regulates the management and vesting of established plans.
C. covers only union-sponsored pension plans but not employer-sponsored pension
plans.
D. processes unfair practice charges brought against unions and employers.
Answer:
Devon draws a check payable to the order of Jen on his account at Big Bank. Jen
properly negotiates the check to Seth, who sells the check to Andy. Seth indorsed
without recourse. Andy deposits the check in his bank account at Mega Bank without
indorsing the check. Who has liability to Mega Bank?
A. Big Bank
B. Seth
C. Jen
D. Jen, Seth and Andy
Answer:
There is an action against a manufacturer who is sued on the basis of industrywide
liability for the manufacture and sale of a standardized product that caused injury after a
number of years. Which of the following defenses can the manufacturer raise to avoid
or minimize its liability?
A. The manufacturer should be truthful about the fact that he manufactured the product
that caused the injury to the plaintiff.
B. It manufactures the product with a disclaimer.
C. The risks from its product were lower than those from other products.
D. Its market share was more than alleged by the plaintiff.
Answer:
Which of the following, used to enforce promises, is supported by consideration?
A. Illusory promise
B. Preexisting duty
C. Charitable subscriptions
D. Past consideration
Answer:
Ratification may be inferred by a court:
A. from the fact that the principal accepted the benefits of an unauthorized contract.
B. from the agent’s failure to repudiate an unauthorized contract after becoming aware
of it.
C. from the third party’s extent of knowledge about the contract.
D. from the principal’s failure to give express authority to the agent.
Answer:
Which of the following likely would disqualify the definition of “public use” under the
government’s power of eminent domain?
A. Seizure of private land by the government to build a new city hall.
B. Seizure of private land to sell it to a private developer who aims to make profit from
it.
C. Seizure of private land by the government to build a public road.
D. Seizure of private land by the government to build a mall for the public.
Answer:
Who among the following has a duty to inspect new, prepackaged goods even if they
have no reason to know of a defect?
A. Retailers
B. Manufacturers
C. Distributors
D. Wholesalers
Answer:
A patent:
A. grants its owner the exclusive right to make, use, or sell an invention or process for
an indefinite period.
B. deprives competitors of the opportunity to use the invention without the patent
holder’s consent.
C. creates a permanent monopoly thereby discouraging the creation and utilization of
new products and technologies.
D. includes articles or processes falling under the category of physical phenomena or
abstract ideas.
Answer:
Statutes that require proof of character and skill are considered to be:
A. regulatory.
B. usury.
C. wagering.
D. revenue-raising.
Answer:
George owns three adjacent town houses in an upscale neighborhood. He sells one to
Ted but gets Ted to promise to never sell the property to a woman or a poor person. This
restriction is built into the deed George gives to Ted, along with a statement that the
property is to revert to George if this promise is broken. Is this restriction enforceable?
A. Yes, because the restrictions are reasonable.
B. Yes, because these private restrictions do not prevent the sale of the property to
anyone else.
C. No, because the restrictions are against public policy.
D. No, because private restrictions can only apply to the size and cost of the house.
Answer:
A promise exchanged for a promise is an example of:
A. a bilateral contract.
B. a unilateral contract.
C. an implied contract.
D. promissory estoppel.
Answer:
Which of the following statements is TRUE for a sale on approval?
A. Goods are delivered to the buyer primarily for exchange purposes.
B. Goods are delivered to the buyer primarily for the buyer’s use.
C. The risk of loss and title automatically pass to the buyer.
D. The trial of goods is regarded as an acceptance by the buyer.
In a sale on approval, the goods are delivered to the buyer primarily for the buyer’s use.
The buyer is given the opportunity to examine or try the goods so as to decide whether
to accept them.
Answer:
Bankruptcy judges:
A. are considered to be units of the district court.
B. are not considered to be part of the district court.
C. are considered to be units of local circuit courts.
D. are considered to be units of the federal court.
Answer:
The Family and Medical Leave Act:
A. covers birth but not adoption of a child.
B. covers employees the moment they begin work.
C. requires employers with 50 or more employees to give covered employees up to 12
paid workweeks of leave per year to deal with the care of themselves.
D. provides job security to employees with serious health conditions.
Answer:
A defendant is guilty of recklessness when:
A. his/her behavior indicates a conscious disregard for a known high degree of probable
harm to another.
B. the risk of harm is lower than the degree of risk that would make an act negligent.
C. he/she commits a highly dangerous act without intent and foreseeable harm.
D. he/she involuntarily exposes himself to an unknown danger created by another’s
negligence.
Answer:
Scienter:
A. involves misstatements about the content of something contained in a form.
B. refers to the mental state of the defendant.
C. pertains to an actionable misrepresentation that concerns a present or past fact.
D. is a causal connection between a misrepresentation and the complaining party’s entry
into the contract.
Answer:
After staying home and raising four children, Quinn got a job at a museum. Ten years
later, she realized her marriage was in trouble and began psychological counseling. She
later separated from her husband but continued therapy. During a session at which her
husband was present, he asked his wife, “What do you want?” She wrote on a piece of
paper that she wanted the house, her car, the joint bank accounts, and a computer. The
husband took the note to his attorney, who drafted a property settlement on its basis.
Quinn, ignoring the advice of her psychologist to hire her own attorney, signed the
agreement. She later challenged the agreement on the grounds of incapacity. Will she
succeed?
Answer:
What types of debts are not affected by the discharge of a bankrupt debtor?
Answer:
Wilma locked herself in the trunk of a 1973 sedan in an attempt to learn a magic trick.
After some time, she decided to get out of the trunk, but was unable to do so. She was
released nine days later. She subsequently sued the manufacturer of the sedan for the
psychological and physical injuries she sustained because the trunk did not have an
internal release or opening mechanism that would have allowed her to escape. She
alleged that the manufacturer was negligent in its design of the car because it lacked
such a mechanism, and negligent because it failed to warn users that the trunk did not
have such a mechanism. Was the manufacturer of the sedan negligent for failing to
warn, or failing to include a release in its design of the car?
Answer:
What does the agent’s duty of loyalty mean?
Answer:
Why does the legal system have safeguards to protect the accused? Name a few of
these provisions given to them.
Answer:
What are the differences between a gift inter vivos and a gift causa mortis?
Answer:
Explain the concept of apparent authority.
Answer:
Discuss an agent’s duty to communicate information to the principal and when is this
duty considered to be violated?
Answer: