The victim of a fraud may be able to recover punitive damages.
Answer:
An agreement is illegal if it calls for behavior that violates a statute, but not a general
rule of public policy.
Answer:
When entering into a contract, parties are expected to exercise reasonable judgment.
Answer:
Even if the law enforces corporations to engage in ethical behavior, it is not certain that
all corporations will respond to the threat of financial penalties.
Answer:
The doctrine of res ipsa loquitur places the burden on the plaintiff to show that his
injury was caused by the defendant’s negligence.
Answer:
An accountant’s liability to third persons for negligence is generally barred by the
privity doctrine unless the accountant should have foreseen that the third party would
rely on the audit.
Answer:
Under no circumstances can a single firm lawfully refuse to deal with firms or agree to
deal only on certain terms.
Answer:
Malpractice insurance provides protection for professionals whose negligent
professional conduct causes injuries to third persons.
Answer:
When the terms of a check are ambiguous, handwritten terms prevail over printed
terms.
Answer:
A voluntary petition can only be filed by a corporation.
Answer:
The duty of the principal to keep records from which the compensation due to the
agent can be determined is reinforced by tax laws that require such recordkeeping.
Answer:
Emancipation gives a minor the capacity to contract.
Answer:
Assignors who are paid for making an assignment are potentially liable to assignees for
certain implied guarantees.
Answer:
Kyle offered to sell Pam 500 television sets. Kyle is the:
A. offeree.
B. agent.
C. offeror.
D. distributor.
Answer:
In general, performing a preexisting duty:
A. is consideration.
B. is not consideration.
C. is consideration only if the preexisting duty is substantial.
D. does not involve contractual duties.
Answer:
A person who seeks to recover benefits under a life insurance policy:
A. must notify the insured that a loss covered by the policy has occurred.
B. needs to furnish only proof of loss.
C. needs to furnish a sworn statement of loss.
D. must notify the insurer of the loss and furnish proof of loss.
Answer:
A certificate of deposit:
A. is an instrument in which the maker makes an unconditional promise to pay a fixed
amount of money with interest to the payee on demand.
B. is the most widely used form of commercial paper that is a draft payable on demand
and drawn on a bank.
C. is an instrument in which the maker makes an unconditional promise to pay a fixed
amount of money without interest to the payee at the specified future time.
D. is an instrument containing an acknowledgment by a bank that it has received a
deposit of money and a promise to repay the sum of money.
Answer:
Modern rights theory:
A. holds that duties are absolute.
B. holds that we should not abide by a rule unless a more important rule conflicts with
it.
C. must determine the fundamental rights and how they are ranked in importance.
D. argues for a just distribution of society’s resources.
Modern rights theory is a deontological ethical theory that responds to the perceived
weaknesses in Kantianism. Modern rights theorists believe that there may be
circumstances when actions like lying and killing could be morally acceptable. They
must determine what the fundamental rights are and how they are ranked in importance.
Answer:
Which of the following applies to an insurable interest in goods?
A. Buyers have an insurable interest in goods the moment they pay for the goods.
B. Buyers have an insurable interest in goods the moment they get the title to the goods.
C. Sellers have an insurable interest in goods till the risk of loss is with them.
D. Sellers have an insurable interest in their goods as long as they have title to the
goods or a security interest in them.
Answer:
A check drawn by a credit union on its account at a bank is a:
A. personal check.
B. teller’s check.
C. certified check.
D. stale check.
Answer:
In a de jure corporation:
A. the promoters have substantially complied with all mandatory provisions.
B. the promoters have only complied with directory provisions.
C. the business intends to be treated as a corporation.
D. the omission of directory provisions will destroy the enterprise’s corporate identity.
Answer:
Full rule of reason analysis:
A. cannot be determined until after a court conducts a full market analysis.
B. is a “quick look” form of rule of reason analysis.
C. like per se restraints, applies to restraints that are facially illegal.
D. is utilized for restraints that have an obvious adverse impact on competition.
Answer:
In an auction:
A. acceptance occurs when an offeror makes the highest bid.
B. bidders are treated as offerors, making offers the seller is free to accept or reject.
C. an item cannot be withdrawn from sale prior to acceptance.
D. the seller is required to accept the final offer when the auction is advertised as being
“with reserve.”
Answer:
In a ____, the promoters substantially complied with all mandatory provisions.
A. de jure corporation
B. de facto corporation
C. corporation by estoppel
D. close corporation
Answer:
Which of the following is TRUE for employment contracts?
A. They are assignable.
B. They are contrary to public policies.
C. They are nonassignable.
D. They involve the transfer of duties.
Answer:
Which of the following is one of the options of a buyer when the goods delivered do
not conform to the contract?
A. The buyer can pay for the units accepted at a price lower to the price per unit
provided in the contract.
B. The buyer can accept only part of a commercial unit and reject the rest.
C. The buyer can reject an installment delivery even if the nonconformity can be
corrected by the seller.
D. The buyer can accept all of the goods, or accept any commercial unit, and reject the
rest.
Answer:
Under the Clean Air Act, _____ were designed to protect vegetation, materials, climate,
visibility, and economic values.
A. complementary standards for pollution control
B. primary standards by federal air quality control
C. elementary standards for air quality
D. secondary standards by federal air quality control
Answer:
Mr. Gregg has made an inflammatory speech denouncing the action of the government
in the recent war. The government can restrict his speech through regulation:
A. under the Fifth Amendment.
B. if it is the least intrusive means to promote the government’s interests.
C. if it is not forcefully furthering government interest.
D. if it is a part of the due process of law.
Answer:
“Parol evidence” refers to:
A. the evidence given at a parole hearing.
B. the idea that when the parties to an agreement have expressed their agreement in a
complete, unambiguous writing, the writing is the best evidence of their intent.
C. the rule requiring that certain types of perjury (lying under oath) concerning the
evidence in a case results in criminal sentences without possibility of parole.
D. the equitable doctrine of promissory estoppel.
Answer:
A surety’s right to recover his/her costs from the principal once he/she performs or pays
the principal’s obligations is known as ___.
A. the right to fair compensation
B. the right of subrogation
C. the right to reimbursement
D. the right to contribution
Answer:
When a person has been adjudicated insane:
A. the court rules that the person is of unsound mind but has lucid moments.
B. most states hold that the contracts of such persons are voidable.
C. the court appoints a guardian or conservator for the person’s estate.
D. the court says that such a person is liable for any value of necessaries.
Answer:
John tells Sally he will sell her his car for $1,000. Sally agrees to buy the car on John’s
terms. The contract between John and Sally is:
A. unilateral and executory.
B. bilateral and voidable.
C. bilateral and executory.
D. unilateral and implied.
Answer:
Arnold purchased real estate known as Parcel A, subject to a preexisting mortgage, in
favor of Local National Bank. Bridget purchased real estate known as Parcel B,
assuming a preexisting mortgage on it in favor of Local National. After each purchase
took place, there were defaults on the debts that gave rise to the mortgages referred to.
Though Local National instituted and completed foreclosure proceedings with regard to
each of the two mortgages, it did not yield enough funds to pay off the debt in full.
Therefore, Local National made demands on Arnold and Bridget for payment of the
deficiency owed on Parcel A and on Parcel B respectively. Explain if Local National is
entitled to receive the deficiencies it seeks from Arnold and Bridget.
Answer:
Maxwell construction made an apartment block for Riverside. After 5 years of the
construction Riverside sued Maxwell for the leakages in its ceiling. Is this lawsuit
valid?
Answer:
Why does the UCC distinguish between merchants and nonmerchants by holding
merchants to a higher standard in some instances?
Answer:
What are technology transfer agreements?
Answer:
Can a buyer reject goods for nonconformity in contracts that call for delivery of the
goods in separate installments? If yes, under what circumstances can he reject such
goods?
Answer:
Explain the difference between a certified check, a cashier’s check, and a teller’s
check.
Answer:
Under the MBCA, what types of corporate documents does a shareholder have a right
to inspect?
Answer:
Who is entitled to enforce an instrument?
Answer:
Who is a creditor beneficiary? Can he/she enforce the contract?
Answer:
Describe Section 2 of the Sherman Act.
Answer: