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1) in some circumstances, article 3 allows a person to become a holder by negotiation,
even though the transfer of possession is involuntary.
2) the executive branch of government exercises significant control over agency action
through the office of management and budget (omb).
3) a bank is not authorized to pay a postdated check before the date on the check and
charge the amount to the customers account, unless the customer has given notice to the
bank.
4) many agency proceedings are settled by a consent order after completion of the
adjudication process.
5) if an insurance applicant sustains losses after submission of the application but
before acceptance by the insurer, the rule in most states is that the insurer must
nevertheless cover the losses.
6) a person who commits fraud may be liable for punitive damages for the tort of:
a.deceit.
b.fraud.
c.misrepresentation.
d.assertion.
7) the rullca allows for automatic dissolution of an llc when:
a.a member of the llc dies.
b.a majority of the members dissociate.
c.a member of the llc goes bankrupt.
d.it becomes unlawful for the llc business to continue.
8) a check is not negotiable if it:
a.reads pay kim turner.
b.states that it is payable only on a certain condition.
c.is signed with a rubber-stamped signature.
d.is issued by a drawer who lacks capacity to contract.
9) green and nunn own a 40-acre parcel of land as joint tenants with the right of
survivorship. nunn wishes to sell the land to ink. if nunn alone executes and delivers a
deed to ink, what will be the result?
a.green will retain a undivided interest in the 40-acre parcel, and will be unable to set
aside nunns conveyance to ink.
b.ink will obtain an interest in of the parcel, or 20 acres.
c.ink will share ownership of the 40 acres with green as a joint tenant with a right of
survivorship.
d.the conveyance will be invalid because green did not sign the deed.
10) trisha has been given the responsibility of making an important decision for her
firm. which of the following actions strengthens the argument that trisha is a justice
theorist?
a.trisha chooses the alternative that promises the highest net welfare to society as a
whole.
b.trisha chooses the alternative that respects the most important human right.
c.trisha considers whether everyone is getting what they deserve.
d.trisha determines whether anyones rights are negatively affected by an alternative.
11) companion regulations promulgated by epa and enforced by the food and drug
administration control the amount of pesticide residue that can remain on raw and
processed food intended for human or animal consumption. these regulations establish
what are known as:
a.allowances.
b.permits.
c.tolerances.
d.blocs.
12) what is the main purpose of the taxing power?
a.to enact healthcare reform law.
b.to regulate grants to the states.
c.to regulate interstate commerce.
d.to raise revenue for the federal government.
13) why did the restatement not have the force of law?
a.it was the product of a private organization.
b.it had conflicting perspectives.
c.it was deemed significantly inferior to the common law.
d.it was deemed significantly inferior to the ucc.
14) which of the following characterizes discovery?
a.it begins before the pleadings are completed.
b.information may be subject to discovery only if it is ultimately be admissible at trial
under the legal rules of evidence.
c.it is an efficient and time-saving remedy for litigants.
d.interrogatories are a commonly utilized form of discovery.
15) regarding the formation of a general partnership, which of the following is not a
legal requirement but has been described as highly desirable?
a.a formal, written partnership agreement
b.an oral agreement
c.an exchange of mutual consideration
d.an agreement limiting the liability of the partners
16) if an agent has, within the scope of the agency relationship, committed both
negligent and intentional acts resulting in injury to third parties, the principal:
a.may be liable even if the agents acts were unauthorized.
b.may effectively limit his or her liability to those third parties if the agent has signed a
disclaimer absolving the principal from liability.
c.will be liable under the doctrine of respondeat superior only for the intentional acts of
the agent.
d.will never be criminally liable unless he or she actively participated in the acts.
17) which of the following is the most rigorous standard of judicial review of agency
factual judgments as provided by the apa?
a.beyond reasonable doubt review
b.substantial evidence test
c.de novo review
d.arbitrary and capricious test
18) marion purchased a digital camera, paying with a promissory note. the note stated
that marion promised to pay $300 (the purchase price of the camera) in 10 monthly
installments of $30 plus interest. payments are due on the first day of each month,
starting in january 2010. the interest is to be calculated as three percent over the chase
manhattan prime rate. is this instrument negotiable?
a.no, because the future prime rate is not known at the time of the making of the note.
b.no, because the note does not describe a fixed amount of money to be paid.
c.yes, because the variable rate of interest is calculated by reference to an index.
d.yes, because the future prime rate is known at the time of the making of the note.
19) which of the following elements is an exception that validates a financing statement
which covers goods that are to become fixtures, without it being lapsed?
a.name of the debtor
b.name of the secured party
c.description of a real estate mortgage
d.description of a nonfixture
20) a contract in which the parties have not yet fully performed their obligations is
called a(n):
a.executed contract.
b.executory contract.
c.quasi-contract.
d.bilateral contract.
21) checks and other drafts collected through the banking system usually have all of the
following except:
a.bank.
b.payee.
c.drawer.
d.employee.
22) gorgeous is a conglomerate and its major businesses include department store
chains and grocery store chains. gorgeous recently acquired connect corp., a
mobile-network operator. connect has the third-largest share of the mobile-network
market. this is gorgeous first venture into the mobile-network business. which of the
following theories is the most appropriate one for challenging the acquisition of connect
by gorgeous under section 7 of the clayton act?
a.elimination of actual potential competition
b.potential reciprocity
c.unfair advantage to acquired firm
d.elimination of perceived potential competition
23) _____ refers to securing exempt personal property from secured creditors by paying
them the full value of the collateral at the time the property is redeemed.
a.automatic stay
b.discharge
c.exemption
d.redemption
24) which of the following corporate decisions requires an approval vote of the
shareholders?
a.merger
b.share trading
c.purchasing land for office
d.joint venture
