1) a sole proprietorship is a legal entity separate from its owner.
2) to encourage people to cancel illegal contracts, courts will allow a person who
rescinds such a contract before any illegal act has been performed to recover any
consideration that he has given.
3) the doctrine of stare decisis states that like cases should be decided alike.
4) tenants must do routine tasks to ensure the basic upkeep of rental property.
5) television and radio broadcasts usually are classified as slander rather than as libel
because they involve spoken words rather than written ones.
6) a partnership does not have the authority to ratify the unauthorized act of partners.
7) the same behavior will sometimes violate both civil law and the criminal law, and in
such a case, both liabilities can be claimed at the same time.
8) specific performance requires that the seller is obligated to give the buyer the
requisite goods covered by the contract.
9) the two easiest ways to freeze out minority shareholders are the freeze-out
acquisition and the share split.
10) if acme corp. and bogus, inc. both manufacture product x but no other products, the
relevant product market for purposes of an antitrust challenge to a merger between
acme and bogus will not be a crucial consideration.
11) federal antitrust laws have been extensively applied to activities affecting the
international commerce of the united states.
12) a limited partner in a limited partnership has the right to manage the limited
partnership business.
13) when is proof of joint action required for violation of section 2 of sherman act?
a.when a firm enters into an exclusive dealing agreement with a supplier.
b.when more than one firm is charged with a conspiracy to monopolize.
c.charges of monopolization do not require any proof of joint action.
d.when a firm possesses not only monopoly power but also an intent to monopolize.
14) tim is a partner at starland properties and gives one of starlands customer lists to
sun realty, the firms leading competitor. in this situation, tim has violated:
a.the duty too act with apparent authority.
b.the duty to indemnify partners.
c.the duty to account.
d.the duty to maintain confidentiality of partnership information.
15) general contract law uses the test of _____ for determining when a person is
excused from performing contractual obligations.
a.commercial impracticability
b.superior knowledge
c.frustration of purpose
d.impossibility
16) which of the following is an example of the privilege of statements made to protect
or further the legitimate interests of another?
a.employment reference
b.intracorporate communications
c.accurate media reports
d.opinion polls
17) why is the implied warranty of habitability considered to be superior to the doctrine
of constructive eviction?
a.the tenant does not have to vacate the premises to seek damages.
b.constructive eviction does not obligate the landlord to make repairs.
c.constructive eviction is applicable only to commercial property.
d.landlords need to pay damages to tenants.
18) if the uniform commercial code recognizes the fact that the parties to sales contract
frequently omit terms from their agreements or state ambiguous terms, then the code:
a.can fill in the blanks with reference to common trade practices.
b.has no power to fill in the blanks.
c.declares such a transaction as a void one.
d.penalizes both parties for such lacunae.
19) which of the following is true of invasion of privacy?
a.public figures do not enjoy any right to privacy.
b.there are four distinct torts related to it.
c.it is a subject of the second amendment of the u.s. constitution.
d.examining a persons public records amounts to an invasion of privacy.
20) what effect does the rule of res ipsa loquitur have in a negligence case?
a.it creates a rebuttable presumption of breach of duty.
b.it creates a non-rebuttable presumption of causation.
c.it results in strict liability of the defendant.
d.it results in strict liability of the plaintiff.
21) which of the following helps to prevent offerors from revoking their offers prior to
acceptance when the offeree relies on it being kept open?
a.option
b.promissory estoppel
c.unilateral contracts
d.firm offer
22) mike operates an upholstering business. he goes to hans house to reupholster a sofa
for hans. after the work was complete, hans refused to pay the agreed price. mike wants
to assert a lien against the sofa in order to collect the money due to him. is mike entitled
to a lien under these circumstances?
a.yes, because he is an artisan who improved personal property.
b.yes, because hans owes a debt to mike.
c.no, because there is no surety involved in the transaction.
d.no, because hans did not give up the possession of the chair.
23) how does the clean water act regulate wetlands?
24) karla retires from orton associates, a partnership. the business is continued by the
remaining partners and wes, a new partner who has agreed to assume karlas liability for
partnership obligations. creditors have not been notified of karlas retirement. what are
karlas and wess liabilities to the creditors?
25) delbert cars sells jim a nice new model. unfortunately for jim, a defect in the cars
brakes causes them to fail; in turn causing an accident that totals the car and puts jim in
the hospital. jim sues (among others) delbert, arguing that delbert was negligent in
failing to inspect the brakes for defects. all delbert did was to drive the car around the
block to see if it ran as it should. under what conditions might delbert be liable here?
under what conditions will it escape liability?
26) jones goes to a clothing store and orders $1000 worth of clothing on credit. the
salesperson writes up a receipt describing the terms of the deal, but jones does not sign
anything. three days later, the store delivers $750 worth of clothing, which jones
accepts. one day later, however, jones decides that he doesnt want the clothing. when
the store insists that he has to pay the full $1000, jones pleads the statute of frauds. does
the statute of frauds give jones a defense against payment here?
27) what three things are seen in the corporate scandals of 2002, such as enron and
worldcom?
28) explain the difference between an accommodation surety and a compensated surety.
29) on june 1, dave drawer writes a check to pete payee. the check is postdated to july
1. nonetheless, pete presents the check for payment at daves bank on june 15, and
receives payment on that date. after dave learns of this, he screams bloody murder,
arguing that the check was not properly payable and that the bank should recredit his
account. is dave right? assume that the check is otherwise properly payable, and that
dave never told the bank about it before pete presented it.
30) an attorney acquires confidential information about a certain client. however, he
discovers that this information is important for the affairs of a second client. in this
situation, two duties are in conflict. what are these two conflicting duties? how does
agency law resolve the conflict?
31) pedro is a corporate promoter for nolo corporation, a corporation yet to be formed.
pedro spends $40,000 of his own money and devotes 400 hours to bring nolo and its
business into existence. when nolo is incorporated, pedro asks the board of directors to
issue some of its common shares to pedro as compensation for his expenses and
services. would such an issuance be legal?