Russell promises to deliver and install living room carpeting for Nina. Classify as an
express, implied-in-fact, or implied-in law condition Nina’s notification to Russell of
her choice of type and color of carpeting. Compare and contrast this condition with the
other two types of contractual conditions.
Under the UPA, after dissolution:
a. the partnership must be liquidated.
b. the remaining partners have the right to continue the partnership if the majority of
them agree.
c. the remaining partners have the right to continue the partnership if the partnership
was dissolved in contravention of the partnership agreement.
d. the partnership must be liquidated only if the dissolution was caused by the expulsion
of a partner in accordance with the partnership agreement.
In the Zelnick v. Adams case, the Supreme Court of Virginia found:
a. the trial court correctly granted summary judgment, ruling the contingency fee
agreement was not binding because Jonathan was a minor when the contract was
executed.
b. the case must be remanded for further proceedings, including the taking of evidence
on the issue of the factual determination of necessity under all of the circumstances.
c. when faced with a defense of infancy, a court has an initial duty to determine, as a
matter of fact, whether the things supplied to the infant under a contract were in the
general class of ‘necessaries.’
d. Both (b) and (c).
A small damage amount fixed without regard to the amount of loss is known as:
a. reliance damages.
b. out-of-pocket damages.
c. nominal damages.
d. None of the above.
A consolidation:
a. has precisely the same result as a merger.
b. is the most typical form of business combination used today.
c. is always illegal (in contrast to mergers, which are legal under state law).
d. requires the assent of both corporations’ board of directors and shareholders.
A constitution:
a. restricts powers of government.
b. specifically enumerates certain liberties of the people.
c. establishes governmental structure.
d. All of the above.
Sylvia deposits in her account at First Bank a $50 check drawn on Valley Bank. First
Bank transfers the check to Second Bank, which in turn forwards it to Valley Bank,
which pays the item. Which of the following is correct?
a. Valley Bank is the payor bank.
b. Valley Bank is the drawee bank.
c. Valley Bank is the collecting bank.
d. Both (a) and (b).
Par value:
a. indicates the worth of the stock at issue.
b. is the minimum price at which the corporation may sell the stock at issuance.
c. represents the maximum price at which the stock may be sold at issuance.
d. represents the amount for which the stock must be traded.
Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later
Miller changes his mind after discovering that he could have sold the property to
another buyer for an additional $20,000. Jefferson sues and asks the court to have the
property conveyed to him at the price of $80,000. Jefferson is seeking:
a. restitution.
b. punitive damages.
c. specific performance.
d. valid tender.
ARM disclosure rules apply to any loan that is:
a. an open-ended consumer transaction.
b. secured with real or personal property.
c. longer than one year in duration.
d. All of the above.
Pre-judgment attachment permits a creditor to seize the debtor’s property:
a. to prevent the debtor from disposing of assets before litigation would result in a
judgment for the creditor.
b. if the defendant has not paid his debts on time.
c. when the defendant has filed for bankruptcy.
d. if the defendant cannot be persuaded to come to court.
Under Chapter ___________, the bankruptcy estate does not include wages earned after
commencement of the case.
a. 7
b. 11
c. 13
d. All of the above.
Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years
of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk
repay him all that he has paid. In the majority of jurisdictions, what would happen?
a. Steve would be out of luck.
b. Steve must have the truck repaired.
c. Steve will receive his money less the depreciation in value of the vehicle.
d. Steve may simply return the vehicle and get his money.
Which of the following is correct with regard to an accountant’s contractual liability?
a. An accountant is bound to perform all the duties she explicitly agrees to perform.
b. An accountant implicitly agrees to perform a contract in a competent and
professional manner.
c. An accountant who breaches his contract with a client may also be liable to a third
party intended beneficiary.
d. All of these are correct.
In which of the following types of cases can issues of accountant-client confidentiality
arise?
a. Contract disputes.
b. Criminal cases.
c. Tax cases.
d. All of the above.
Agency is governed primarily by:
a. state common law.
b. the UCC.
c. federal statutes.
d. administrative law.
Which of the following is/are the criteria for a common carrier?
a. The carriage must be part of its business.
b. The carriage must be for remuneration.
c. The carrier must represent to the general public that it is willing to serve the public in
the transportation of property.
d. All of the above.
The National Highway Traffic Safety Administration:
a. recalls autos for safety reasons.
b. tests the fuel efficiency of each year’s car models.
c. enforces trademark laws on cars and car parts to ensure buyers get what they think
they are buying.
d. None of these are correct.
The Equal Pay Act requires equal pay for men and women based upon the concept of
‘substantially equal” rather than identical work.
At the end of a bailment, a bailee may correctly deliver the bailed property to a third
party (other than the bailor) in certain cases.
“Perfection” is required in order for the secured party to enforce rights against the
debtor.
At the marriage of her daughter, Lorna is given papers to sign, which the catering
company says are the invoices for the food, service, and decorations. Underneath the
invoices are a carbon and a contract of sale for a portion of the failing catering business.
Lorna signs the papers; her signature is transferred to the sales contract. This is a void
contract because it was entered by fraud in the execution.
A gratuitous assignment is revocable even after the assignor has made an effective
delivery of the assignment to the assignee.
Mary financed her TV at the bank, but is now delinquent on her payments. The bank
holds a security interest in the TV. In most states, when Mary is not at home and
without her knowledge, bank personnel may enter Mary’s home to repossess the TV.
Brown Corporation purchased all of the stock of Gremlin Corporation. The appraisal
remedy is not available to a dissenting shareholder of Brown Corporation.
In a lease, the lessee obtains the right to possess and use the goods for a period of time
in return for consideration, but title does not pass.