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1) speaking generally, a quasi-contract applies where there has been foreseeable
reliance on an express promise.
2) at common law, the risk of loss for shipped goods falls upon the person or party who
had "technical title" at the time the goods were damaged or destroyed.
3) when one of the parties offers a disproportionately small amount of money in
settlement of a debt and refuses to pay more, it is a form of economic duress.
4) in a partnership, some classes of partners may have greater voting rights than others.
5) john promises to pay robert $100 per week, in exchange for roberts promise not to
beat john up. there is no consideration for johns promise.
6) in order to acquire title to property by adverse possession, the adverse possessor must
continually use the property for a statutorily prescribed period of time.
7) a person becomes the owner of abandoned property by possessing the property.
8) as in a criminal case, a defendant in a civil case may not be compelled by the
plaintiff to testify.
9) andrew, being a partner, has appointed a caretaker for his property. therefore, he has
committed a wrongful dissociation.
10) the new article 3 recognizes and enforces indorsements that prohibit further
negotiation of the instrument.
11) where an offer stipulates a certain means of acceptance, the offerees acceptance is
effective upon dispatch even if it uses means other than those specified in the offer.
12) in order to pierce the corporate veil, a creditor needs to show that each shareholder
does not actively participate in the management of the corporation.
13) when a promisors performance is an express condition of the promisees duty to
perform, that performance must meet a strict performance standard.
14) the fifth amendment guarantees indigent defendants the right to court-appointed
counsel.
15) the epa regulates underground storage tanks, such as those used for gasoline.
16) the sex discrimination test is an example of the:
a.rational basis test.
b.intermediate scrutiny test.
c.full strict scrutiny test.
d.due process test.
17) a nolo plea or a consent decree is often attractive to antitrust defendants because:
a.the government must prove criminal intent on the defendants part.
b.it results in an imposition of a penalty without requiring a defendant to remedy his
actions.
c.it is not admissible as proof of a violation of the sherman act in a private plaintiffs
later civil suit.
d.it does not attract the same penalty as a guilty plea or a conviction at trial.
18) the national collegiate athletic association inc., (ncaa) is incorporated in indiana. the
ncaa accredits college athletic programs and sanctions and regulates athletic
competitions among its member colleges. the ncaa selects new orleans, louisiana as the
site of its mens college basketball 1999 final four, with tulane university as the host
school. to assist tulanes hosting of the final four, ncaa officials make several trips to
new orleans in the course of one year. for nine days immediately and during the final
four, ncaa officials are in new orleans. altogether, ncaa officials spend 23 days in new
orleans. is the ncaa required to qualify to do business in louisiana?
19) antiassignment clauses in contracts generally are:
a.enforceable but read narrowly.
b.enforceable but not covered by the ucc.
c.unenforceable because they are unconscionable.
d.unenforceable because they are void.
20) gath meat packing company is a meat processing business. to reduce costs and
increase profits, the president and ceo of gath orders gaths employees to violate federal
criminal meat processing laws. the united states department of justice prosecutes gath
for criminal violations of the meat processing law. has gath committed criminal
violations?
a.yes, because the president and ceo, a high-level administrator of gath, authorized the
commissions of the crimes.
b.yes, because a corporation is always liable for all the crimes committed by its agents.
c.no, because the board of directors did not authorize the president and ceo or the other
employees to violate federal law.
d.no, because a corporation is not liable for most crimes committed by its agents.
21) under the _____, no writing is required where the guarantor makes a collateral
promise for the main purpose of obtaining some personal economic advantage.
a.parol evidence rule
b.leading object rule
c.collateral contract rule
d.part performance rule
22) under the model business corporations act, a director who is sued in connection
with his/her duties to the corporation may be indemnified by the corporation when:
a.the director acted in good faith and his conduct was lawful.
b.the director failed to act in the best interests of the corporation.
c.the directors actions were grossly negligent but not intentional.
d.the director received unqualified financial benefits.
23) which of the following covers the rules of contract, and property?
a.procedural law
b.private law
c.criminal law
d.ordinances
24) payne borrowed $500 from long bank. at the time the loan was made to payne, gem
orally agreed with long that gem would repay the loan if payne failed to do so. gem
received no personal benefit as a result of the loan to payne. which of the following is
most likely to be true, under the circumstances?
a.gem must provide a collateral to long.
b.both gem and payne are primarily liable to repay the loan.
c.gem is free from liability concerning the loan.
d.payne must provide a lien to gem for the amount of the debt.
25) which of the following occurs when a buyer, after having a reasonable opportunity
to inspect them, either indicates that he will take them or fails to reject them?
a.rejection of goods
b.assignment of goods
c.revocation of rights
d.acceptance of goods
26) the bankruptcy act of 2005 increases the responsibility of a debtors attorneys
thereby raising concerns that bankruptcy practice may become less attractive as:
a.the attorney has to operate on relatively thin margins as provisions increase along with
costs and risks.
b.the attorney owes a duty to client for getting the debtors property appraised.
c.the attorney has to call a meeting of all the creditors of the debtor.
d.the attorney has to classify the priority of creditors as per the 10 classes of priority
given in the bankruptcy code.
27) okeydokey, inc. sells its canned beets to its wholly owned subsidiary, buylow co.,
which then sells the beets in the nationwide chain of buylow grocery stores. in addition,
okeydokey sells canned beets to various other grocery store chains. the beets sold by
okeydokey to buylow are packaged by okeydokey under the buylow label. the beets
sold by okeydokey to the other grocery store chains are packaged under the okeydokey
label. despite the different names, however, the beets sold by okeydokey under the two
labels are the same in quality. the price at which okeydokey sells the beets to buylow is
significantly lower than the price at which it sells the beets to the other chains. one of
the other chains has brought a robinsonpatman act lawsuit against okeydokey on the
theory that okeydokey engaged in price discrimination. has okeydokey violated the
robinsonpatman act? explain your reasoning.
28) in a conversation, donna falsely tells wendy that paul has krabbe disease, a rare
genetic disorder. paul wants to sue donna for defamation, but hes having trouble
showing any tangible financial loss. must paul prove special damages in order to
recover against donna? why or why not?
29) allie is a licensed pilot who is nearsighted. she has 20/20 (perfect) vision when she
wears her contact lenses. without her contact lenses, she cannot read or drive, but with
her contact lenses, she is able to engage in these activities. acme airlines has a
requirement that its pilots have 20/20 uncorrected vision. allie applies for a pilot
position with acme, and is rejected based on her need to wear contact lenses. allie goes
to the eeoc to file a charge under the ada against acme airlines. what is the likely result?
30) austin llp, a cpa firm, audits financial statements of cooley company. cooley tells
austin that the statements will be used to sell preferred shares in a registered offering
under the securities act of 1933. austin is concerned about its potential liability under
section 11 of the securities act of 1933 for mistakes in the audited financial statements.
discuss austins due diligence defense under section 11.
31) under what circumstances can a shareholder have liability for corporate debts?
32) a transfers a negotiable note to b, who in turn transfers it to c. under what conditions
has a made a transfer warranty to c?
33) give two reasons why the differences between fraud and misrepresentation are
relevant.
