A principal has no duty to compensate his or her agent if:
a. the agent breached the duty of obedience.
b. the agent breached the duty of loyalty.
c. it is a gratuitous agency.
d. All these are correct.
An involuntary petition for bankruptcy can be filed against a:
a. non-profit charitable organization.
b. partnership that invests in real estate.
c. life insurance company.
d. wheat farmer.
In bankruptcy law, an insider may include:
a. a relative.
b. a general or limited partner of the debtor.
c. the trustee.
d. Both (a) and (b).
The U.S. Immigration and Naturalization Service issues various types of visas to
persons who:
a. are temporarily visiting the U.S. for business or pleasure.
b. enter the U.S. to perform services that the unemployed in this country cannot
perform.
c. are transferred to the U.S. by their employers.
d. All of the above.
Larry leaves his hat under the seat at the movie theater. Is this a bailment?
a. No, because the theater manager does not have physical possession of the goods.
b. No, because Larry did not pay the theater to keep his hat.
c. Yes, if the theater manager finds it.
d. Yes, since the theater controls the building.
The charter of the corporation is required to provide all of the following EXCEPT:
a. the number of shares authorized.
b. the street address of the registered office.
c. names of the initial directors.
d. the name and address of each incorporator.
Temporary insurance coverage prior to the issuance of the actual policy may be
obtained by use of a(n):
a. premium agreement.
b. coinsurance clause.
c. option clause.
d. binder.
Almost all jurisdictions require that:
a. express trusts of real property be in writing.
b. trusts have at least four witnesses.
c. an inter vivos trust have at least two trustees.
d. a charitable trust have at least two trustees.
Which of the following acts protects consumers who have errors in credit card billings?
a. Equal Credit Opportunity Act.
b. Fair Credit Billing Act.
c. Fair Debt Collection Practices Act.
d. Truth-in-Lending Act.
Ed signs a ten-year lease with a survival clause. If Ed is evicted for nonpayment of rent
after two years, he will have to pay:
a. rent for the remaining 8 years.
b. damages equal to the difference between the rent specified in the lease and the rent
the landlord is able to obtain from reletting the premises.
c. until eviction.
d. until he assigns the lease.
Under Chapter ___________, certain debts of individuals are not dischargeable despite
the debtor’s good faith.
a. 7
b. 11
c. 13
d. All of the above.
A(n) __________ is a sudden, unexpected event calling for immediate action, that is
considered when determining whether conduct was reasonable in a negligence lawsuit.
a. res ipsa loquitur
b. duty to act
c. emergency
d. None of the above.
Which of the following is found in the Fifth Amendment to the U.S. Constitution?
a. A privilege against self-incrimination.
b. A requirement of probable cause.
c. A prohibition against cruel and unusual punishment.
d. The right to an attorney.
The first bank to receive a check for collection is the:
a. depositary bank.
b. drawee bank.
c. payor bank.
d. intermediary bank.
Which of the following is correct with respect to consequential damages under the
Code?
a. Consequential damages include damages for destruction of a warehouse caused by
the explosion of nonconforming goods.
b. Consequential damages include damages for lost profits from a contract to resell
goods which the seller never delivers.
c. Particular needs of the buyer need to be made known to the seller before the seller
can be held responsible for consequential damages relating to those needs.
d. All of these are correct.
An insurable interest in property is a financial interest or factual expectancy in
someone’s property that justifies insuring such property.
W & W, Inc. manufactures and sells widgets. It sells widgets to Marklin of Marklin’s
Department Store and gives him a preference in pricing that discriminates against other
retailers. Does Marklin have liability for price discrimination? Does W & W, Inc. have
liability for price discrimination? Explain.
The UCC provides that a contract for the sale of goods can be effectively modified
without new consideration, provided the modification is made in good faith and both
parties intend to modify the contract.
The type of business enterprise with the most entities is the sole proprietorship,
followed by the corporation; but the type of business enterprise with the greatest total
revenue generation per year is the corporation.
Describe the structure of the federal court system. How does the federal court system
compare/contrast with the state court system of the state where you are living?
Each partner has an interest in the partnership, which includes his share of profits and
losses and his management rights.
If upon the seller’s breach the buyer makes substitute purchases in good faith and
without unreasonable delay, she may recover, as damages, the difference between the
cost of cover and the contract price, plus incidental damages but minus any expenses
she saved because of the seller’s breach.
When a corporation issues no par value stock, the entire consideration received
constitutes stated capital unless the board of directors allocates a portion of the
consideration to capital surplus.
An agreement to pay a public officer something extra for performing his official duty is
enforceable.
What is unjust to a social egalitarian will also be unjust to a libertarian.