Oral evidence may be introduced to “fill the gaps” in an incomplete written contract.
Answer:
In a bailment situation, the bailor retains the title to the item of property.
Answer:
Mike indorsed a check from his employer by signing his name and the words “without
recourse.” This indorsement is an example of a:
A. qualified indorsement.
B. blank indorsement.
C. special indorsement.
D. restrictive indorsement.
Answer:
The U.S. Supreme Court requires that actual malice be proved when:
A. public officials sue the media for false and defamatory statements.
B. public officials are found strictly liable for a crime.
C. public figures sue for physical harm resulting from malice.
D. public figures and public officials sue the media for publishing TRUE statements.
Answer:
The Unites States awards patent privileges based on a ____ standard.
A. first to contemplate
B. first to use
C. first to file
D. first to invent
Answer:
Big Oil indorses a check “Pay St. Joseph Coal Co. only if it delivers 1000 tons of coal
by 30th September.” Under Revised Article 3, what type of indorsement is this?
A. Blank
B. Qualified
C. Conditional
D. Restrictive
Answer:
Roy was doing repair work in the apartment of Melinda. He saw a deep crack in the
floor but did not repair it at the time. Later while doing ceiling work, his ladder got
stuck in the crack and he injured himself. Can he recover damages from Melinda?
A. He can impose consequential damages on Melinda.
B. He can recover under the specific performance provision.
C. No, he cannot recover for injuries that could be easily avoided.
D. No, he cannot recover damages till he gets an injunction.
Answer:
Under the Balancing Approach, the third party:
A. cannot recover unless in privity.
B. cannot recover unless the accountant knew the purpose of reports and the identity of
user.
C. may recover when the accountant knew audited material would be used.
D. may recover if determinative factors make liability desirable.
Answer:
In which of the following situations can a party’s duty to perform be discharged?
A. Statutes and legislation that make a performance more difficult.
B. When something that is essential to the promisor’s performance is destroyed through
no fault of the promisor but its substitute is available.
C. When events occur after the formation of the contract that would make the return
performance of the other party worthless to the promisor.
D. When the promisor impliedly assumed the risk that the event would occur.
Answer:
The dividends on this stock if not paid this year will be payable in any year the funds
are available.
A. Cumulative preferred
B. Noncumulative preferred
C. Participating preferred
D. Cumulative to the extent earned
Dividends on cumulative preferred stock, if not paid in any year, will be payable later
when funds are available.
Answer:
Under the Clean Water Act, the primary responsibility for preventing, reducing, and
eliminating water pollution lies with:
A. international agencies.
B. the federal government.
C. the EPA.
D. the states.
Answer:
Which of the following is intended to avoid unjust enrichment?
A. A bilateral contract
B. A quasi contract
C. A void contract
D. An express contract
Answer:
According to the leading object doctrine, promises of third parties to a contract who are
primarily motivated by a desire to secure some personal benefit:
A. fall outside the scope of the statute of frauds.
B. are covered by the statute of frauds.
C. are estopped from recovery.
D. have to be in writing to be enforceable.
Answer:
Which of the following is a taxable entity?
A. A corporation
B. A sole proprietorship
C. A partnership
D. An S Corporation
Answer:
Which of the following statements is TRUE for contracts made illegal by statutes?
A. Barbers and beauty operators do not require licenses for working.
B. Blue laws do not regulate the sale of alcohol.
C. Agreements violating wagering statutes are regarded illegal only in certain states.
D. Forfeiture of excess or all interest is a common penalty for violation of usury laws.
Answer:
If no time or event is specified explaining when the agency relationship will end, the
agency:
A. will continue indefinitely.
B. will continue for the statutory maximum of 10 years.
C. automatically ends when the result for which the agency was created has been
accomplished.
D. automatically ends after a period of 70 days even if the result for which the agency
was created has not been accomplished.
Answer:
If the behavior of someone who commits a tort is outrageous, that person can be made
to pay compensatory and:
A. special damages.
B. punitive damages.
C. liquidated damages.
D. nominal damages.
Answer:
Which of the following sources govern(s) the relationship between the depositor and
the drawee bank?
A. Only the deposit agreement.
B. The deposit agreement and Article 6 of the UCC.
C. Article 8 of the UCC.
D. The deposit agreement and Articles 3 and 4 of the UCC.
There are two sources that govern the relationship between the depositor and the
drawee bank: the deposit agreement and Articles 3 and 4 of the Code.
Answer:
Whenever the agent’s duties to the principal conflict with the agent’s own interests:
A. the agent automatically is regarded as having breached the duty of loyalty.
B. the agent must disclose such facts to the principal, or be in violation of the duty of
loyalty.
C. there is no duty of disclosure if the agency is gratuitous.
D. the agent must resign immediately.
Answer:
A partnership is a:
A. limited association in which parties sign a contract expressing their intent to form the
partnership.
B. voluntary and consensual association involving two or more persons.
C. voluntary association formed by an express agreement.
D. consensual association which requires the property to be used in the business to be
owned by it.
Answer:
The subject of misrepresentation must be:
A. a statement about the future.
B. a statement that amounts to puffing.
C. a knowable fact.
D. a statement of opinion.
Answer:
A ______ provides the greatest ease of management.
A. close corporation
B. sole proprietorship
C. general partnership
D. limited partnership
Answer: