Regarding drug and alcohol testing of employees by employers:
a. the NLRB makes it a mandatory subject of collective bargaining in a union setting.
b. the constitutional protection from unwarranted search and seizure protects private
sector employees from the practice.
c. the Constitution prohibits any public sector employer from testing its employees
under any circumstances
withouta warrant.
d. federal legislation sets forth comprehensive guidelines for the practice.
A principal owes to any agent the same duties under tort law that the principal owes to
all parties.
a. True
b. False
A gratuitous agent:
a. is a paid agent.
b. is subject to the same duty of loyalty as other agents.
c. has no duty of diligence.
d. need not be reimbursed for her expenses.
Laura is considering the possibility of becoming a surety to Carl on a debt by David,
but she would like more information on the relationship between Carl and David
concerning the transaction. If Laura requests such information from Carl, he must
disclose it, because his failure to disclose material facts will constitute fraud.
a. True
b. False
The criminal intent necessary to commit a crime is known as:
a. actusreus.
b. mensrea.
c. vicarious liability.
d. malice aforethought.
Abby needs some quick cash, so she hits upon a scheme. She tells Frank that she is
collecting for foreign refugees, so Frank makes out a check for $100 payable to the
order of Abby. Abby indorses it and delivers it to Joanne for
$90 cash. Joanne gives it to Margaret as a present. Frank discovers Abby’s deception
and refuses to pay Margaret. Will he win?
a. No, because Margaret is a holder in due course
b. No, because of the shelter rule
c. Yes, since Margaret did not take the check for value
d. Yes, since the check was not negotiated to Margaret
In 2009, Congress enacted the Investor Protection and Securities Reform Act, which
imposes new corporate governance and investor protection rules on privately and
publicly held companies.
a. True
b. False
Under the CISG, if the buyer fails to perform any obligations, the seller may:
a. set an additional period of time of reasonable length for performance.
b. require the buyer to pay the price.
c. receive damages.
d. All of these.
Though contractual duties generally are delegable; a delegation will not be permitted if
the nature of the duties is personal in that the obligee has a substantial interest in having
the delegator perform the contract.
a. True
b. False
Which of the following may transfer title to land?
a. Deed
b. Will, or by the law of descent upon the death of the owner
c. Open, continuous, and adverse possession by a nonowner for a statutorily prescribed
period of years
d. All of these.
A debtor has the option of using either federal or state exemptions; however, the 2005
Act imposes limits on the use of a state homestead exemption to the extent that the
homestead was obtained through fraudulent conversion of nonexempt assets at any time
before filing the bankruptcy petition.
a. True
b. False
Which of the following is correct with respect to RICO?
a. It subjects to penalties enterprises that engage in a pattern of racketeering, defined as
the commission of two or more specified state or federal criminal offenses within a
period of ten years.
b. It was enacted with the stated purpose of terminating the infiltration of organized
crime into legitimate businesses.
c. It provides for both civil and criminal penalties for violators.
d. All of these are correct.
Wanda makes a note payable to Henry in return for Henry’s car. Henry negotiates the
note to his cousin, Sharon, who accidentally drops it on the floor where it is swept into
the garbage. What effect?
a. The note is canceled.
b. The note is ineffective.
c. The obligation is discharged.
d. The obligation is not affected.
Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for
$200,000. After mailing the letter, Elmer learns that the farm is actually worth $300,000
and changes his mind about selling. Elmer:
a. has made a firm offer to Fred which cannot be revoked.
b. can revoke his offer at any time before acceptance, because there is no consideration
to keep the offer open.
c. must keep the offer open, because this is an option contract.
d. is prohibited from revoking his offer to Fred under the doctrine of promissory
estoppel.
Incompetents and persons under the age of 18 cannot be held liable for their intentional
torts.
a. True
b. False
A form of strict liability applies to all of the following situations except:
a. a lawnmower sold in a defective condition that injures its owner.
b. a fireworks factory that blows up and injures townspeople and their property.
c. a medical procedure.
d. a herd of goats that travel onto a neighbor’s property, eating and trampling the
neighbor’s roses.
The characteristics of a special warranty deed include:
a. the grantor warrants the title so far as it concerns his acts or omissions.
b. the grantor warrants the title to be free of defects caused by acts or omissions of
others.
c. a general warranty of title.
d. All of these.