1) article 2 of the ucc determines the rights of the seller, the buyer, and third parties
irrespective of who has title at any given moment.
2) in a strict liability case, the plaintiff must prove that the defendant breached a duty.
3) the eighth amendment forbids cruel and unusual punishments.
4) as a general rule, the court has held that searches carried out without a proper warrant
are unreasonable.
5) in case of a dispute between the common law and a precedent that has been properly
distinguished, the common law prevails.
6) bob authorizes steward to borrow money on his behalf. steward signs his name on a
note in his individual capacity i.e. without disclosing that the signature is on behalf of
bob. then steward becomes liable for the note.
7) a famous journalist predicted the result of an nba match between the la groves and la
phantoms in favor of the phantoms, based on the present form of groves. accordingly,
mark placed a huge bet on the phantoms and lost heavily. this is an example of
misrepresentation of a material fact of a contract.
8) a bankrupt person who conceals property in order to hinder, delay, or defraud
creditors loses any discharge that he may have had regarding that property, but his other
debts still are dischargeable.
9) according to the general rules of interpretation of contracts, ordinary words are given
their general meanings and the technical ones are given their technical meaning.
10) termination occurs after all partnership assets have been distributed.
11) instruments cannot be negotiable even if they are payable in a foreign currency.
12) deborah owes a debt to casey. sean contracts with deborah to pay her debt to casey.
casey is a creditor beneficiary of the contract between sean and deborah.
13) the mccarranferguson act does not exempt all actions by insurance companies from
antitrust liability.
14) stitchwell is an apparel manufacturer. huge mart, a wholesale dealer, is its largest
customer. huge mart also owns gorgeous, a department store chain that deals in
apparels, shoes, and accessories. stitchwell routinely offers wholesaler special discounts
to huge mart and other wholesalers. are these discounts illegal?
a.yes, these discounts are per se illegal under section 2(a) of the robinson-patman act.
b.no, these discounts are not illegal because stitchwell can legally set resale prices.
c.yes, these discounts will be deemed illegal if huge mart passes them on to gorgeous
customers.
d.no, these discounts are not illegal considering they are provided only for wholesalers.
15) in order for a worker to succeed in obtaining a workers compensation award, the
worker must demonstrate that the:
a.employer was at fault in causing the accident.
b.injury was work-related.
c.worker was not at fault in contributing to the accident.
d.injury was due to a co-worker.
16) the doctrine of standing to sue requires that:
a.the lawsuit must benefit the public in general.
b.the plaintiff have a substantial stake in the outcome of the litigation.
c.cases must be genuine controversies.
d.courts must not issue any advisory opinions in cases.
17) what is the best possible solution for a bailee if there is a third-party, who claims to
have superior rights to those of the bailor for possession of the bailed property?
a.he should give the bailed property to the third-party.
b.he should give the bailed property to the bailor.
c.he should bring the third-party claimant into a lawsuit along with the bailor.
d.in such a case, the bailee will always get possession of the bailed property.
18) which of the following is true about buyout of nonwrongfully dissociated partners?
a.the partnership may wait to buy out the partner until the end of the partnerships term.
b.the buyout price must deduct the interest from the date of dissociation.
c.the dissociated partner cannot ask the court to determine the buyout price.
d.the partner must be paid in cash within 120 days.
19) three days before she was judicially declared mentally incompetent and
institutionalized, irma bought a $50,000 automobile by cash and took delivery of it.
which of the following is true about this contract?
a.it is voidable at the discretion of the seller.
b.the contract is voidable due to irmas institutionalization.
c.the contract cannot be disaffirmed because it is fully executed.
d.irma ratified the contract by paying the price of the car.
20) which of the following is most likely to be perfected by the secured partys
possession of the collateral?
a.a security interest in inventory
b.a security interest in consumer goods
c.a security interest in general intangibles
d.a security interest in equipment
21) courts have held that a beneficiarys rights cannot be lost by modification or
discharge. this is known as:
a.assignment.
b.dissociation.
c.malfeasance.
d.vesting.
22) when rita ryan died, she left a will naming her children, john and dale, as the sole
beneficiaries. in her will, rita designated john as the executor of her estate and excused
john from posting a bond as executor. at the time of ritas death, she owned a parcel of
land with her sister, ann, as joint tenants with right of survivorship. with respect to ritas
interest in the land, it will pass to:
a.john and dale outside ritas estate by right of survivorship.
b.john and dale through ritas estate after the will is probated.
c.ann through ritas estate after the will is probated.
d.ann outside ritas estate by right of survivorship.
23) which of the following enters a land without its possessors consent and without any
other privilege?
a.invitees
b.trespassers
c.guests
d.licensees
24) which of the following is a criticism of the usa patriot act?
a.it covers a narrow range of activities associated with terrorism.
b.it does not permit warrants for roving wiretaps.
c.it delays the sanctioning of search warrants.
d.it gives undue freedom to law enforcement agencies.
25) why does article 2 hold merchants to a higher standard than nonmerchants?
a.because buyers tend to place more reliance on merchants.
b.because merchants are not required to observe reasonable commercial standards of
fair dealing.
c.because the code gives more weightage to technical requirements such as
consideration.
d.because the code does not recognize the concept of an unconscionable contract
between a merchant and a buyer.
26) a party who borrows money to buy a home and signs an agreement giving the bank
the right to repossess the home in case of default is called a:
a.mortgagor.
b.guarantor.
c.creditor.
d.trustee.
27) a partner of a firm that leases residential property to college students allows his
daughter to live in a partnership-owned apartment. based on this situation, this partner:
a.has a duty to relinquish his management rights for misusing partnership property.
b.has a duty to account for the use of partnership property.
c.has a duty to return the personal profits secured through this transaction.
d.has a right to be indemnified for payments made from his personal funds.
28) if a statute is considered to be _____, the purpose of the legislation is to protect the
public against dishonest or incompetent practitioners.
a.regulatory
b.enforceable
c.adhesive
d.ancillary
29) _____ of the robinson-patman act prevents large buyers, either directly or through
subsidiary brokerage agents, from receiving phony commissions or brokerage payments
from their suppliers.
a.section 2(f)
b.section 2(c)
c.section 2(a)
d.section 2(e)
30) a buyer claiming lost profits caused by the sellers breach of contract is claiming for
_____.
a.incidental damages
b.unconscionable damages
c.penalties
d.consequential damages
31) hailey wrote a check for marsha, her landlady, on july 7 and dated it for august 1.
hailey notified her bank to not honor the check before august 1. however, the bank
honored the check when marsha presented it on july 29. due to insufficient funds, the
bank turned down the check and charged $50 to haileys account. marsha terminated
haileys rental contract for writing her a bad check. which of the following is true of this
situation?
a.the bank is not liable for any damages to hailey since it has the right to honor a
postdated check if presented earlier.
b.hailey can file a lawsuit against marsha for presenting a postdated check earlier than
instructed and causing her loss.
c.hailey is liable to pay damages to marsha, in addition to the rent, and a $50 fine to the
bank for lack of funds.
d.the bank is liable to pay hailey damages for honoring the check before the date
mentioned in the notice.
32) bonn, a secured party, sells collateral at a private sale to a good faith purchaser for
value after the debtor defaults. which of the following statements is true with regard to
the ucc secured transactions article?
a.in all cases, the collateral will remain subject to the security interests of subordinate
lien creditors.
b.the security interest under which the sale was made and any security interest or lien
subordinate to it will be discharged.
c.in all cases, bonn may not buy the collateral at a private sale.
d.bonn will be entitled to receive a first priority in the sale proceeds.