1) an agreement can be illegal even if no statute specifically states that such an
agreement is illegal.
2) a typed or rubber stamped signature is sufficient if it is put on the instrument to
validate it.
3) in mixed goods-services situations, courts determine whether the contract is for the
sale of goods by determining whether the good or the service is the dominant part of the
transaction.
4) the model business corporation act has made the inclusion of a purpose clause in the
articles compulsory.
5) a firm offer for the sale of goods requires consideration to be given in exchange for
the offerors promise to keep the offer open.
6) usually, only clients sue professionals under the securities law.
7) which of the following is a nonwrongful dissociation?
a.a partners filing a bankruptcy petition
b.a partners retirement at age 60 when the partnership agreement requires the partners
to retire at age 70
c.a partners willful and persistent breach of the partnership agreement
d.death of a partner
8) brandon leased his house to patrick for 5 months. a few days after moving in patrick
found that the house had several defects such as leaking taps, broken windows, faulty
electrical wiring. despite repeated requests, brandon did not do the repairs. as a result,
patrick went ahead with the repairs and deducted the amount from the rent due that
particular month. brandon threatened to sue him. brandon will:
a.win the case because he is the owner of the house.
b.win the case because a tenant has no right to repair defects.
c.lose the case because he was informed of the defects before the repairs.
d.lose the case because the law is biased toward tenants.
9) a common variation of a(n) _____ agreement is the requirements contract.
a.exclusive dealing
b.joint venture
c.reciprocal dealing
d.formal written
10) when a person procures the transfer of property by means of fraud or duress, he
becomes a(n) _____ and is under an obligation to return the property to its original
owner.
a.constructive trustee
b.implied trustee
c.executor
d.administrator
11) a(n) _____ is a person who is liable for the payment of another persons debt or for
the performance of another persons duty.
a.beneficiary
b.trustee
c.surety
d.executor
12) ahmed, a lawyer, sold his car to carlos. has an implied warranty of merchantability
been created by this transaction?
a.yes, because a car is goods and the uniform commercial code applies to contracts for
the sale of goods.
b.yes, because if the car is defective carlos will have a right to return in to ahmed.
c.no, because ahmed is not a merchant.
d.no, ahmed has not implied so either orally or in written.
13) _____ voting permits a holder of more than 50 percent of the shares of a
corporation to dominate the corporation.
a.preference
b.cumulative
c.ranked
d.straight
14) edith purchases what is represented to be a new dvd player from big als electronic
emporium, by giving al a check for $200 drawn on big bank. edith then discovers that
the dvd player is a used model and calls big bank to place a stop-payment order on the
check. big al negotiates the check to john who qualifies as a holder in due course. john
presents the check to big bank the next day, and big bank pays the check. which of the
following statements is most accurate?
a.for recourse, edith would have to pursue big al on her misrepresentation claim.
b.edith may use her personal defense of misrepresentation to have her account
recredited by big bank.
c.edith may pursue both big bank and john for the amount taken from her account.
d.if big bank had refused to pay the check, john would have had no recourse against
edith.
15) infobox online, an internet services provider, includes in its clickwrap contract a
clause stating that california courts have exclusive jurisdiction over subscribers disputes
with infobox online. this clause will most likely be:
a.unenforceable because it was not the result of bargaining.
b.unenforceable against a subscriber in another state.
c.enforceable if the subscriber does not file a motion to dismiss.
d.enforceable if it is considered reasonable by a court.
16) gridco, inc. owns the building in which its offices are located. on april 1, gridco
insured the building with olden days insurance co., which issued a $200,000 face
amount policy. the olden days policy contained a pro rata clause. keeping that policy in
force, gridco procured an additional policy on the building on june 15. this policy, had a
$600,000 face amount and contained a pro rata clause, was issued by big city insurance
corp. on august 10, while both policies were in force, lightning (a covered peril under
each policy) struck the gridco building. this sparked a fire that resulted in $72,000 of
damage to the warehouse. gridco has filed claims and proofs of loss with olden days
and big city. which of the following correctly sets forth the amounts the respective
insurers must pay gridco?
a.olden days: $72,000; big city: 0.
b.olden days: $18,000; big city: $54,000.
c.olden days: 0; big city: $72,000.
d.olden days: $24,000; big city: $48,000.
17) apple assigns the same contract rights to enzo, and then to sam. sam immediately
notifies the obligor of the assignment to him; enzo never notifies the obligor. when sam
notified the obligor, he did not know about the earlier assignment to enzo. sam will
have the better right under the:
a.american rule.
b.english rule.
c.restatement (second) of contracts.
d.common law.
18) sarah is 75 years old. she has a serious illness, but she does not want to be kept alive
by extraordinary medical technology. specifically, she does not want to be kept alive by
a respirator. which of the following should sarah use in order to make sure that her
wishes are followed?
a.a living will
b.a codicil
c.a joint will
d.a nuncupative will
19) which of the following is true of leases in general?
a.provisions of extensions should be drafted separately.
b.long-term leases need to be carefully drafted.
c.they are the most important in matters of residential property.
d.there are no laws regulating leases, only local housing codes.
20) which of the following would be most suitable to be tried under comment k of
section 402a of the restatements (second) of torts?
a.cases related to development of medicines
b.cases of manufacturing defect
c.cases of design defect
d.cases of failure-to-warn
21) property insurance policies are in the nature of:
a.partnership contracts.
b.negotiation contracts.
c.indemnity contracts.
d.lease contracts.
22) an agency coupled with an interest is terminated if:
a.the principal revokes agency.
b.the principal tenders his obligation.
c.the principal loses capacity.
d.the agent dies.
23) which of the following allows a party who has materially breached a contract to
recover the reasonable value of any benefits he has conferred on the promise?
a.quasi-contract
b.anticipatory repudiation
c.specific performance
d.accord and satisfaction
24) in an llp that is continuing business after dissociation:
a.a dissociated partner has high risk of continuing liability for contracts.
b.a dissociated partner has less risk of torts occurring before or after the partner leaves
the llp.
c.the partners liability is limited beyond the llps assets.
d.the buyout payment made to a dissociated llp partner will impair the ability of the llp
to pay its creditors.