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Implied assumption of the risk occurs when the plaintiff expressly agrees, usually in a
written contract, to assume the risk posed by the defendant's behavior.
Express conditions are conditions that are not specifically stated but inferred from the
nature and language of the agreement.
The Government in Sunshine Act requires that federal agencies publish in the Federal
Register the places where the public can get information from the agency.
Federal securities law does not require that target corporations assist aggressors in any
way.
The Taft-Hartley Act was passed to further strengthen restrictions on employers
regarding unionization.
Since its inception, English courts have expanded the number of cases falling within
their statute of frauds.
Corporate income is taxed twice.
The legislative branch can declare acts of the executive branch unconstitutional.
Contracts related to the sale of goods totally over $500 fall within the statute of frauds.
Creditor beneficiaries can enforce their rights under a contract whenever the contract is
valid.
A negligent misrepresentation results when the party making the statement would have
known the truth about the fact had he used reasonable care to discover or reveal it.
The Consumer Product Safety Commission protects the public from injuries associated
with consumer products but lacks the authority to issue product recalls on its own.
A contract is a set of legally enforceable promises.
A sample or model may constitute an express warranty.
An agent may use implied authority reasonably necessary to achieve the specific goals
she is to achieve.
Items taken from real estate, such as minerals, clay, and soil may be treated as goods
under UCC sales contracts.
Forbearance is sufficient consideration for a valid and enforceable contract.
Silence may constitute acceptance of an offer.
The SEC issues opinions regarding the worth of securities.
A covenant not to compete is an agreement limited to the sale of an ongoing business.
An easement is a revocable right to use some part of another's land for a specific
purpose without taking anything from it.
An association between two or more persons or corporations created for a specific
business undertaking is a joint stock company.
A document whereby a bank promises to pay a payee a certain amount of money at a
future time is called a time instrument.
If a shipment contract is vague or ambiguous on the issue, an origin contract will be
presumed.
The UCC adopted the common law of warranties in total.
To use the assumption of the risk defense successfully, a defendant must prove that the
plaintiff voluntarily and unreasonably encountered the risk of the actual harm the
defendant caused.
If at least one party has the ability to either withdraw or enforce the agreement, the
contract is voidable.
Making regular payments under a contract after reaching the age of majority will
probably constitute implied ratification of the agreement.
Members of the board of directors of a corporation are elected by shareholders.
All contracts deemed valid by the court are enforceable.
The result of an error by both parties about a material fact is known as a bilateral
mistake.
If an appellate court concludes that the trial court's ruling was incorrect and remands the
case, the appellate court will conduct the new trial or hearing.
The constitution of Belarus requires everyone to protect the environment.
Rescission is the return of any property given up under the contract.
State laws require that all contracts must be in writing to be enforceable in the courts.
The UCC's definition of good faith is strictly an objective standard.
When the buyer alleges that goods fail to conform to contract specifications, the buyer
has the automatic right to reject the goods.
Judicial review allows higher courts to review the constitutionality of lower courts'
decisions.
A(n) _____________ investor is a private investor who is allowed to accept private
securities offerings under certain specific guidelines set by the SEC.
A. securities
B. prospectus
C. accredited
D. due diligent
E. insider
Which of the following is not a typical type of compensatory damage?
A. Pain and suffering.
B. Cost to repair damaged property.
C. Medical expenses.
D. Attorney fees.
E. None of these.
_________________ governs the issuance of credit reports.
A. The Prohibited Report Act
B. The Fair Credit Reporting Act
C. The Unfair Reporting Act
D. The Loan Reporting Act
E. The Credit Protection Act
Which of the following is the determination that the defendant's breach of duty resulted
directly in the plaintiff's injury?
A. Proximate cause.
B. Legal cause.
C. Apparent cause.
D. Actual cause.
E. Significant cause.
If a trademark is unregistered, which of the following may the holder recover when an
infringer uses the mark to pass off goods as being those of the mark owner?
A. Damages.
B. An injunction prohibiting the infringer from using the mark.
C. An additional amount of damages computed as a multiplier of 5 times the original
damages.
D. Damages, an injunction prohibiting the infringer from using the mark, and additional
damages based on a multiplier of 5 times the original damages.
E. Damages and an injunction prohibiting the infringer from using the mark.
Which of the following occurs when a plaintiff implicitly assumes a known risk?
A. Implied assumption of the risk.
B. Express assumption of the risk.
C. Express assumption of the last-clear-chance doctrine.
D. Implied assumption of the last-clear-chance doctrine.
E. Assumption by contract.
________________ is not a federal law referenced in the text regulating product
labeling.
A. The Wool Products Labeling Act
B. The Fur Products Labeling Act
C. The Flammable Fabrics Act
D. The Nutrition Labeling and Education Act
E. The Imported Canine and Feline Fur Act
Which of the following has been adopted by courts to aid plaintiffs in establishing
negligence claims?
A. Res ipsa loquitur only.
B. Negligence per se only.
C. Assumption of risk only.
D. Res ipsa loquitur and negligence per se.
E. Res ipsa loquitur, negligence per se, and assumption of risk.
If the FDA bans the use of green food coloring in baked goods due to health and safety
concerns but the Florida legislature enacted a statute allowing the use of green food
coloring in baked goods, the Florida law is:
A. unconstitutional.
B. overrides the FDA ban.
C. valid for Florida only.
D. valid for Florida only until the president appoints a new chair for the FDA.
E. a private law.
When, the creditor becomes the secured party who has a security interest in the
collateral __________ occurs.
A. attachment
B. transformation
C. reaffirmation
D. security
E. perfection
As discussed in the text, which of the following is true in China when fraud is
involved?
A. Because of the governmental interest in increasing international business, it is very
difficult to prove fraud when an international business is involved.
B. Because of the governmental interest in increasing international business, few
penalties are imposed on international businesses that are guilty of fraud.
C. Because of the governmental interest in increasing international business, it is very
difficult to prove fraud when an international business is involved; and few penalties
are imposed on international businesses that are guilty of fraud.
D. Chinese law does not recognize the concept of fraud.
E. Fraudulent misrepresentations have resulted in heavy fines and refusals to allow any
more agreements with Chinese firms.
Powder Room Mess. For $300,000, Willis agrees to build a new home for Robert, who
is very picky. Willis builds the home to Robert's specifications with one exception. The
faucets and linoleum flooring in an upstairs powder room are not exactly what Robert
specified. That was a mistake on Willis' part, but he had not intentionally failed to
follow specifications. When Robert sees the powder room, he goes ballistic and tells
Willis that he will not pay Willis anything for the house. It will take $300 to put in
correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in
the position he would have been in had the correct faucets and linoleum been used, but
that is all he is willing to pay. Which of the following is most likely true regarding
Robert's entitlement to damages from Willis?
A. There are no damages because Willis did not breach the contract.
B. Robert will not have to pay for the house because Willis failed to substantially
perform.
C. Even though Willis substantially performed, Robert will not have to pay for the
house because Willis materially breached the contract.
D. Robert is released from paying for the house because of an anticipatory breach.
E. Any damages awarded would be in the range of $300, the amount it would take to fix
the breach.
Cat Chaser. Annette, who is angry because her neighbor, William, allows his dog to
chase her cat, decides that she wants to get even. She moves a number of farm animals
into her backyard and begins playing music at all hours of the night. She also steals a
nice lawn chair off of William's deck. She intends to keep the chair and not give it back.
Annette further took a rake off of William's deck that she plans to return after she
finishes raking her leaves. William did not give her permission to take the rake. William
is unhappy about the whole situation and wants to sue. Which of the following would
be the most appropriate cause of action against Annette in regard to the farm animals
and music?
A. Trespass to personality.
B. Conversion.
C. Private nuisance.
D. Negligence.
E. Harassment.
The group that urges states to enact model laws to provide greater uniformity of law is
called the __________.
A. Model Law on Uniform State Laws Organization
B. Federal Uniform Law Commission
C. National Conference of Commissioners on Uniform State Laws
D. Model and Uniform Law Consortium
E. Uniform Statutory Enforcement Commission
Repossession. Tina sold used vehicles. She sold a used pick-up truck to Joan and a used
convertible to Barry. She properly obtained a security interest in both vehicles. Both
Joan and Barry defaulted on payments owed to Tina for the vehicles. Tina told her
assistant, Samantha that the only legal remedy was repossession; that she was going
after the vehicles; and that Samantha should call law enforcement if she did not show
up at the office by 10 a.m. for the next few mornings. Tina decided that she would
repossess Joan's pick-up at Joan's house. Therefore, Tina slipped into the driveway at
midnight one night and started the engine. Joan immediately ran out and confronted
Tina. Tina shoved Joan away and drove off in the pick-up truck. Tina was able to
repossess Barry's convertible in a public parking lot with no altercation with him.
Which of the following is true regarding Tina's repossession of the pick-up truck?
A. She improperly breached the peace in recovering the collateral.
B. Tina did not breach the peace in recovering the collateral unless Joan can establish
the existence of actual injuries.
C. Tina did not breach the peace because she was entitled to repossess the vehicle and
any injury sustained by Joan was her own fault.
D. Tina breached the peace, but only because she did not provide Joan with prior
notification that she was coming to repossess the collateral.
E. Tina breached the peace, but only because she acted to repossess the collateral after
10:00 p.m. at night.
Ordinarily, to obtain an arrest warrant, a law enforcement agent must demonstrate that
there is _____ that a suspect committed or is planning to commit a crime.
A. likely cause
B. suspected cause
C. certainty
D. probable cause
E. information
Which of the following is true regarding whether a seller must provide a warranty under
the Magnuson-Moss Act?
A. A seller must provide an express, full warranty.
B. A seller must provide an implied, full warranty.
C. A seller must provide at least an express, limited warranty.
D. A seller must provide at least an implied, limited warranty.
E. The act does not require that the seller provide any warranties.
A contractual condition of satisfaction may be judged by either a(n) ______ or ______
standard depending on the issue involved.
A. objective; express
B. subjective; express
C. objective; absolute
D. absolute; express
E. objective; subjective
A goods-in-bailment contract that lacks the words "to the order of" indicates a(n) _____
document.
A. negotiable
B. nonnegotiable
C. shipment contract
D. origin contract
E. sale-or-return contract
In a(n) ______ debt, there is no dispute about the fact that money is owed and the
amount of money owed.
A. actual
B. acknowledged
C. certain
D. liquidated
E. unliquidated
The ______ requirement ensures that courts do not render advisory opinions.
A. moistness
B. subject-matter jurisdiction
C. case or controversy
D. in rem
E. in persona
Masked Bandit. Barry, who owned a small convenience store, was robbed when a
masked bandit entered his store and demanded his cash while pointing a gun at him. As
the bandit ran out of the store, Barry grabbed his own gun and shot the bandit in the leg.
When the police arrived, Barry was arrested along with the thief. Barry claimed that no
charges should be brought against him because his action in shooting the robber was
justified. After the arrest, the officers searched his store and found marijuana. When
Barry complained about the arrest and search, the officer in charge told him that since
the state police were involved, federal constitutional rights were waived. Barry is
attempting to obtain legal representation in an attempt to get out of jail, but cannot
afford a lawyer because he just spent all his funds buying the illegal drugs for resale
that have now been confiscated by the police. Sam, another inmate, asks Barry if the
officers explained his rights to him; but Barry only recalls being arrested, hustled into
the police cruiser, and whisked off to jail. Which of the following is true regarding
Barry's right to counsel?
A. Barry had a right to counsel only because felony charges were likely involved.
B. Barry had a right to counsel only because misdemeanor charges were likely
involved.
C. Barry had a right to counsel only if he can establish that he had no previous criminal
record.
D. Barry had a right to counsel.
E. Barry had no right to counsel.
Which is true regarding a buyer's right to waive warranties?
A. A buyer may not waive warranties.
B. A buyer may waive implied warranties but not express warranties.
C. A buyer may waive express warranties but not implied warranties.
D. A buyer may waive both express warranties and implied warranties.
E. A buyer may waive express warranties and the implied warranty of fitness for a
particular purpose, but not the implied warranty of merchantability.
Bankruptcy remedies are available to ______________________.
A. individuals
B. individuals and corporations
C. individuals and partnerships
D. corporations and partnerships
E. individuals, corporations, and partnerships
What characteristics must a written document have in order to satisfy the requirement
that a negotiable instrument be in writing?
A. A signature by both parties and an allonge.
B. An allonge and movability.
C. Relative permanence and a signature by both parties.
D. Movability and a signature by both parties.
E. Relative permanence and movability.
Which of the following are types of conditional sales contract?
A. Sale-on-approval contracts
B. Sale-or-return contracts
C. Condition-on-sale contracts
D. Sale-on-approval contracts, sale-or-return contracts, and condition-on-sale contracts
E. Sale-on-approval contracts and sale-or-return contracts, but not condition-on-sale
contracts
Which of the following is not a true title?
A. Void title
B. Voidable title
C. Good title
D. Examined title
E. Substantiated title
Discrimination based upon _____________ is protected by Title VII.
A. Race and color
B. Race, color, and religion
C. Race, color, religion, and sex
D. Race, color, religion, sex, and national origin
E. Race, color, religion, sex, national origin, and age
How is a determination made regarding the identity of the permanent trustee in a
Chapter 7 proceeding?
A. The bankruptcy judge appoints the trustee.
B. The district court judge appoints the trustee.
C. The court clerk appoints the trustee.
D. The debtor appoints the trustee.
E. The creditors elect the trustee.
________________ occurs when a principal leads a third party to believe another
individual serves as his or her agent; but, the principal has actually made no agreement
with the so-called agent.
A. Expressed agency
B. Implied agency
C. Apparent agency
D. Ratification
E. Endorsement
Inez, wishing to sell a used business law book, calls Janice and tells her that if she does
not hear from her within twenty-four hours, she will assume that Janice wishes to
purchase the book for $50. After the expiration of twenty-four hours, which of the
following is correct regarding the status of the proposed book sale?
A. There is no contract because silence, as a general rule, cannot be used to form a
contract.
B. There is no contract because the offer was not made in person.
C. There is no contract because the offer was not made in writing.
D. Janice can avoid there being a contract only if she can prove by preponderance of the
evidence that she did not hear about the offer before the stated expiration time.
E. Janice can avoid this being a contract only if she can prove beyond a reasonable
doubt that she did not hear about the offer before the stated expiration time.
