Generally, notice to the agent is notice to the principal if it relates to the business of the
agency.
Answer:
When the express terms of a contract and the past course of dealings are in conflict, the
express terms will prevail.
Answer:
A grant-back provision requires the licensee to transfer any inventions it derives from
the licensed technology to the licensor.
Answer:
Commercial paper may serve as a substitute for money payable immediately, but
cannot be used as a means of extending credit.
Answer:
In a bidding process the owner of the project or a general contractor who wants to farm
out a portion of a large job to a subcontractor are generally held to have made an
invitation to offer.
Answer:
Dividends must always be paid in cash.
Answer:
Warranties do not depend on presentment, dishonor, and notice, but may be utilized
before presentment has been made.
Answer:
Describe how a person acquires title by adverse possession and give an example.
Answer:
Misrepresentation cannot result from an honest mistake.
Answer:
The creditor beneficiary has rights against the promisee, but not the promisor.
Answer:
Under the Delaware General Corporation Law, e-mail is not a legally-recognized
official form of business communication.
Answer:
Exculpatory clauses are generally enforceable if they do not involve a duty to the
public.
Answer:
According to courts today, an assignment of rights does not imply a delegation of
duties.
Answer:
Normally, management of the business of the limited partnership is in the hands of the
limited partner or partners.
Answer:
Small claim courts are courts of record.
Answer:
Which of the following concerning ‘˜pleadings’ is TRUE?
A. The first step in starting a lawsuit is the serving of a summons on the defendant.
B. The case is set for trial on the court calendar once the pleadings have commenced.
C. They serve three major functions.
D. The complaint, answer and reply inform the parties of each other’s claims and form
the basis for a trial.
Answer:
In actions for malicious prosecution and for wrongful use of civil proceedings, a
plaintiff must show that:
A. the wrongfully brought suit did not terminate in his favor.
B. the suit was brought with probable cause to believe the suit was justified.
C. the suit was brought for an improper purpose.
D. the wrongfully brought suit terminated in the defendant’s favor.
Answer:
The Bankruptcy Code:
A. is a provision of the Uniform Commercial Code.
B. is a federal law.
C. is a state law.
D. comes under both the federal and the state law.
Answer:
To appoint a proxy, the MBCA requires a ____.
A. court order
B. written document
C. waiver
D. vote of approval from other shareholders
As a shareholder, one may appoint another person, known as a proxy, to vote for
him/her. The MBCA requires a written document appointing the proxy as an agent to
vote.
Answer:
If Harry’s negligent act injures Sally, and Susan, while attempting to come to Sally’s
aid breaks her arm in the process then, Harry is liable for the harm to __.
A. Sally only
B. Susan only
C. both Sally and Susan
D. neither Sally nor Susan
Answer:
On April 1, 2005 Parker entered an oral contract with Wilkins in which Parker
promised to work for Wilkins for three years for a salary of $40,000 per year. On April
5, 2005, Wilkins called Parker and repudiated the contract, stating that he had decided
not to hire him after all. If Parker sues Wilkins for breach of contract:
A. Wilkins will win because the contract violates the statute of frauds.
B. Wilkins will lose because the contract is enforceable.
C. Wilkins will win because the contract violates the parol evidence rule.
D. Wilkins will lose because his main purpose in promising to hire Parker was to
benefit himself.
Answer:
Bob Hunter, a merchant, makes an offer to Linda, another merchant, to buy 1,000 of her
widgets in a signed letter containing all necessary terms of the offer. The letter states
that Hunter will keep the offer open for three weeks from the day the offeree receives it.
One week later, Hunter writes Linda another letter attempting to revoke his offer. Linda
writes Hunter a letter accepting Hunter’s original offer before she receives his
revocation. What is the result?
A. Linda’s acceptance is effective and a contract is created.
B. Hunter’s revocation is effective and no contract is created.
C. Promissory estoppel prevents the formation of a contract in this situation.
D. Since it is an option offer, it cannot be revoked.
Answer:
Nonprofit corporations:
A. are similar to nontaxing governmental corporations.
B. are formed and operated by public persons.
C. do not permit officers and employees to receive salaries.
D. have the power to tax.
Answer:
If a product is inherently dangerous so that no amount of due care could make it safe:
A. the manufacturer is required to give the consumer notice of the unreasonable danger.
B. privity bars recovery.
C. contributory negligence prevents recovery.
D. the manufacturer is required to provide the consumer a disclaimer at the time of sale.
Answer:
Which of the following is TRUE about a trustee’s duties?
A. He represents the debtor in bankruptcy proceedings.
B. He represents the creditors in bankruptcy proceedings.
C. He cannot have the debtor’s property appraised.
D. He cannot sell the debtor’s nonexempt property.
Answer:
Schwartz, a painter, offers to sell a painting entitled “The Riverside Damsel” to
Grimgerde for $50. Grimgerde responds that she needs more time to think about
Schwartz’s offer. Then Schwartz dies and the value of the painting escalates. Grimgerde
calls Schwartz’s widow, Waltraute, and says “I accept Schwartz’s offer.” Which of the
following statements is TRUE?
A. There is a binding contract entitling Grimgerde to the painting.
B. There is a binding contract entitling Grimgerde to the painting if she did not know
Schwartz was dead when she called Waltraute.
C. There is no binding contract entitling Grimgerde to the painting under any
circumstances.
D. There is no binding contract entitling Grimgerde to the painting unless Grimgerde
actually pays Waltraute the $50.
Answer:
Change of possession is:
A. the most common way of perfecting a security interest.
B. the only way to perfect a security interest in money.
C. the most convenient way of perfecting a security interest in consumer goods.
D. not a practical method of perfecting security interests in commercial collateral.
Answer:
_____ of the Uniform Commercial Code sets out a comprehensive scheme for
regulating security interests in personal property and fixtures.
A. Article 3
B. Article 5
C. Article 6
D. Article 9
Answer:
Under the Patient Self-Determination Act, health care providers must:
A. provide oral information to adults receiving medical care about their rights to accept
or refuse medical treatment.
B. document in the patient’s medical record whether the patient has executed an
advance directive.
C. must ensure compliance with federal laws concerning advance directives.
D. contact the patient’s attorney for consenting or withholding consent to surgery.
Answer:
Statutes or ordinances designed to prevent abuse of security deposits by landlords:
A. limit the amount the tenant may pay.
B. require that the security deposit be refundable.
C. allow landlords to withhold portions even when the tenant causes ordinary damage
to the property.
D. prohibit landlords from taking advance payments of rents from tenants.
Answer:
_____ means “honesty in fact in the transaction concerned”.
A. Good value
B. Good faith
C. Fair title
D. Good title
Answer:
To have testamentary capacity, a person must:
A. not move in and out of periods of lucidity.
B. not be less than 20 years of age.
C. be in perfect mental health.
D. be of sound mind and of legal age.
Answer:
This occurs when a buyer, after having reasonable opportunity to inspect the goods,
either indicates that he will take them or fails to reject them.
A. Tender of delivery
B. Notification
C. Acceptance
D. Reasonable contract
Answer:
Jimmy J sells Mary an old station wagon and tells her that it is in excellent condition,
although he did not bother to check out the statement of the previous owner that the car
was idling fast and backfiring a lot. Under these circumstances, Mary could probably
contest the agreement on the grounds of:
A. mutual mistake.
B. duress.
C. fraud.
D. misrepresentation.
Answer:
A collateral contract involves:
A. three parties and two promises, one of which is conditional.
B. two parties and two promises, both are conditional.
C. two parties and one promise which is conditional.
D. three parties and two promises, both are conditional
Answer:
The SEC requires proxy statements to include:
A. information about employment contracts but not stock option benefits.
B. information on any material transaction between a nominee and the corporation.
C. whether or not the proxy is coupled with an interest.
D. a choice to vote for or withhold a vote from all of the shareholders.
Answer:
Describe Title VII of the Civil Rights Act of 1964. Discuss the purpose and coverage of
the provision.
Answer:
When will a court pierce the veil of a corporation?
Answer:
Explain the idea of ‘stipulation” and the effect it has on a contract.
Answer:
Answer:
Discuss the purpose of insurance commissions paid to the agents.
Answer:
Holographic wills are valid under which conditions?
Answer:
What is meant by proximate cause?
Answer: