When the name of the payee is spelled incorrectly, the payee:
a. must indorse the instrument with the incorrect spelling of the payee€s name.
b. must indorse the instrument with the correct spelling of the payee€s name .
c. may indorse the instrument with either the correct or incorrect spelling of the
payee€s name.
d. may not indorse the instrument.
Which federal agency is most often authorized to adopt standards and regulations to
carry out the provisions of environmental statutes?
a. FTC
b. ICC
c. EPA
d. SEC
The Public Company Oversight Board:
a. is a governmental body.
b. must have at least three board members that are CPAs.
c. enforces rules to ensure audit quality and auditor independence.
d. all of the above.
A depositor issued a check and, after mailing the check, suffered a heart attack and died.
In the regular course of business, the bank paid the check when presented for payment,
despite the fact that the bank had received notice fourteen (14) days earlier of the
depositor’s death. In terms of the bank€s payment of the check
a. the bank is not because the payment was made within 20 days of the notification of
the death.
b. the bank is potentially liable to the depositor€s estate.
c. the bank is not liable unless the depositor’s executor posted an indemnity bond.
d. the bank’s authority to act for the depositor ended on the depositor’s death, regardless
of whether the bank had been notified of the depositor€s death.
Statutory law is created by:
a. Congress.
b. state legislatures.
c. local governments.
d. all of the above.
Which of the following groups may legally be paid less than minimum wage?
a. Full time college students
b. Individuals with impaired productive capacity due to mental disability
c. Both a. and b.
d. Neither a. nor b.
Under the Clayton Act, a divestiture order is:
a. notification from the Department of Justice that a merger is about to occur.
b. notification from the Department of Justice that a merger did not occur.
c. a decision by a court requiring a defendant to sell an enterprise.
d. an order by a court requiring an enterprise to dispose of its inventory.
The CISG:
a. governs all contracts between parties in countries that have ratified it.
b. applies only to goods bought for personal, family or household uses.
c. applies to contracts in which the predominant part of the obligation is the supply of
labor or other services.
d. none of the above.
The owner of a lost credit card is:
a. liable for all purchases made by its finder if the card was lost through negligence.
b. not liable for any purchases if the card was lost despite the exercise of reasonable
care by the cardholder.
c. liable for all purchases if the card originally had been sent to the cardholder without
any prior request and never was used by such holder.
d. not liable for more than $50 for the unauthorized use of the card.
Under modern law, when the issue that an agency decides is a question of law based on
a technical statute:
a. the court on appeal will reverse the agency’s decision if the court disagrees with the
decision.
b. the court will not accept the agency’s decision unless the agency’s interpretation is the
only one that could have been made.
c. the court will tend to accept the agency’s interpretation of the law as long as it is
reasonable.
d. the court will not reverse the agency’s decision.
A finding of undue influence would most likely not occur in a contract between:
a. parent and child.
b. attorney and client.
c. neighbor and neighbor.
d. guardian and ward.
Professionals have a duty to perform their jobs at the level of:
a. a reasonable person.
b. a reasonable professional in the same business.
c. an extraordinarily careful person.
d. none of the above.
Arthur made a bid at an auction by calling out the amount of $250. The auctioneer
acknowledged Arthur’s bid. There were no higher bids, and before the fall of the
auctioneer’s hammer, Arthur announced that he was withdrawing the bid. The
auctioneer said that it was too late for Arthur to withdraw his bid, because the bid had
already been acknowledged. What is the result?
a. Arthur’s bid is an ordinary offer that can be revoked.
b. Arthur’s bid is firm and cannot be withdrawn.
c. Since the auctioneer had in fact acknowledged Arthur’s bid, the bid became an option
exercisable at the election of the seller.
d. Since the auctioneer had in fact acknowledged Arthur’s bid, a contract had been
formed by way of offer and acceptance; accordingly, Arthur’s subsequent attempt to
withdraw his bid was ineffective.
The RMBCA provides that shareholders:
a. have no preemptive rights unless the articles of incorporation so provide.
b. have preemptive rights regardless of what the articles of incorporation provide.
c. cannot have preemptive rights.
d. only have preemptive rights with respect to the transfer of a block of stock as
consideration.
Which of the following debts is not dischargeable in bankruptcy?
a. judgments based on negligence
b. judgments based on breach of contract
c. judgments for willful and malicious injuries
d. judgments in which the creditors would receive no distribution
A discharge does not release a person from a consumer debt to a single creditor totaling
more than $5,775 for luxury goods or services if the debt was incurred within how
many days of the order for relief?
a. 90
b. 120
c. 180
d. 365
For the parties to enter into an accord and satisfaction that discharges the original
obligation, there must be a bona fide dispute.
Kant’s theory understood that sometimes you have to use someone to achieve a
one-sided benefit.
Impossibility of performance applies when the debtor does not have sufficient funds to
pay a debt.
Samuel signed a contract to purchase furniture on credit. The contract clearly set forth
in bold print all charges included in the cost of the credit, including the interest rate and
annual percentage rate. The seller informed Samuel that the seller regularly sold these
contracts to a finance company that paid it immediate cash and then collected from the
debtors. The seller further advised that the finance company did not want “the
headache” of determining the validity of consumer complaints and that therefore the
contract provided that the consumer waived all defenses concerning the furniture
against the finance company. The contract expressly provided that the seller would
remain responsible for any non-conformities in the furniture or breaches of contract on
its part. The furniture was defective, but the finance company is demanding that Samuel
make the payments to it required by the contract and resolve its disputes with the seller
of the furniture. Samuel consults you regarding his rights. What is your response?
In common usage today, there is no distinction between real and personal property.
The principal is bound by knowledge but not by notice of any fact that is acquired by an
agent while acting within the scope of actual or apparent authority.
In general, any form of property that may be sold or conveyed may be mortgaged.
The dissolution of a limited partnership is governed by unique rules quite different from
those applicable to the dissolution of a general partnership.
It is possible for a limited partner to be subject to the debts of the firm if the limited
partner participates in the control of the business.
The United States Constitution provides that we have a right to be free from intrusions
by others.