If an anticipatory repudiation substantially impairs the value of the contract, the
aggrieved party may:
a. await performance for a commercially reasonable time.
b. resort to any appropriate remedy for breach.
c. All of the above.
d. None of the above.
The case of VonHoldt v. Barba & Barba Construction, Inc. held that:
a. the implied warranty of habitability does not include actions against a builder brought
by a subsequent purchaser for latent defects in an addition to a home.
b. the plaintiff’s complaint should not have been dismissed by the lower court.
c. when a builder makes a significant addition to a previously built home, an action for
damages resulting from latent defects affecting habitability exists under the doctrine of
implied warranty of habitability.
d. Both (b) and (c).
If a holder presents a note for payment to the maker, which one of the following
warranties is given?
a. All indorsements are genuine.
b. All signatures are genuine.
c. The holder has no knowledge that any indorsements are forged.
d. The holder is entitled to enforce the note or is authorized to obtain payment on behalf
of the person entitled to enforce the note.
The possible consequences of a defective incorporation include which of the following?
a. The state may bring an action against the association for involuntary dissolution.
b. A third party may assert that it is not liable to the association.
c. The associates are held personally liable to a third party.
d. All of the above.
A __________ is a general invitation to all of the shareholders of a target company to
sell their shares for a specified price.
a. compulsory share exchange
b. tender offer
c. buyout
d. None of the above.
The Rehabilitation Act of 1973:
a. requires all employers with 20 or more workers to take affirmative steps to employ
the handicapped.
b. has been recently amended to categorically remove those with AIDS from its
protection.
c. states that a person addicted to cigarette smoking is handicapped under the Act.
d. does not consider drug and alcohol abuse handicapping conditions for the purposes
of the statute.
Which of the following is true with respect to substantial performance?
a. It has particular importance in the construction industry.
b. Substantial performance does not defeat the purpose of the contract.
c. When one party to a contract has substantially performed, the other party cannot
recover damages for the imperfect performance.
d. Both (a) and (b).
Which of the following is true regarding unconscionability under the Code?
a. It is defined in Article 2 as “monstrously extortionately harsh, showing no regard for
conscience.”
b. The Code denies or limits enforcement of an unconscionable contract for the sale of
goods.
c. Unconscionability may be substantive, but it cannot be procedural.
d. All of the above.
Bob and his sister, Claudia, can own property by:
a. a tenancy by the entireties.
b. tenancy in common.
c. joint tenancy.
d. Both (b) and (c).
Kelly wrote a check to Trish, which Trish immediately changed from $20 to $120. She
negotiated the check to Cam for value, who in turn took it to Kelly’s bank for
certification. Kelly’s bank checked his account and certified the check since there were
sufficient funds to cover the check. Thereafter, Cam gave the check to Ford as part of
the down payment for his car. Ford presents the check to Kelly’s bank for payment and
they discover the alteration. What consequence?
a. Bank can sue Ford for breach of presentment warranty of no alteration.
b. Bank can charge Cam’s account for $120.
c. Bank can refuse to pay Ford more than $20.
d. Bank must pay Ford $120 and cannot sue them for breach of warranty.
The UPA marshaling of assets doctrine is abolished by the RUPA.
The civil penalty for a person who trades on inside information:
a. is payable into the U.S. Treasury.
b. may be three times the profit gained or loss avoided as a result of the unlawful
purchase or sale.
c. is, for a controlling person, up to the greater of $1,425,000 or three times the profit
gained or loss avoided as a result of the controlled person’s violation.
d. All of the above.
A person who makes a promise is a(n):
a. promisor.
b. promisee.
c. offeror.
d. executor.
The person who signs the articles of incorporation is the:
a. promoter.
b. incorporator.
c. subscriber.
d. majority stockholder.
Incorporation statutes generally require that each share of stock issued carry voting
rights.
Most courts allow an accountant to raise the defense of the plaintiff’s contributory or
comparative negligence.
The doctrine of marshaling of assets involves segregation of assets and considers
separately the assets and liabilities of the partnership and the respective assets and
liabilities of the individual partners.
The Economic Espionage Act of 1996 prohibits the theft of trade secrets and provides
criminal penalties for violations.
Discuss the duties of general partners to limited partners and the standard used in the
Wyler case.
Even if a party has the power to avoid a contract for lack of capacity, duress, or undue
influence, the party will lose that power by affirming the contract.
Some states have statutes prohibiting an employee from assigning his future wages.
A violation of a statute constitutes negligence per se regardless of whether the injured
party is a member of the class protected by the statute.