1) amy is hired by bigmart as a cashier. at the time of hiring, amy is required to sign an
arbitration agreement under which she agreed to settle any and all claims she might
have relating to her employment by final and binding arbitration before a neutral
arbitrator and in accordance with bigmarts dispute resolution rules and procedures
which is a separate ten-page document containing complex procedural details. under the
agreement, amy is required to pay for all arbitration-related costs, and bigmart can still
sue amy in civil court for claims arising from her employment. a court will most likely
view this agreement as:
a.unenforceable since it is a quasi-contract.
b.enforceable because it is an arbitration agreement.
c.unconscionable because it is an adhesion contract that is oppressive.
d.enforceable because it is part of a valid employment agreement.
2) if the delivery term of the contract is _____ the place at which the goods originate,
the seller is obligated to deliver to the carrier goods that conform to the contract and are
properly prepared for shipment to the buyer, and the seller must make a reasonable
contract for transportation of the goods on behalf of the buyer.
a.cfr
b.fob
c.cif
d.daf
3) which of the following is most important for imposing strict liability?
a.unavoidable circumstances
b.unreasonably unsafe
c.unreasonable expensive
d.unavoidably protected
4) if a limited partner becomes a general partner as well in a limited partnership:
a.her share of profits will go down.
b.she will lose her managerial powers.
c.she will lose her limited liability.
d.she will lose her right to receive profits.
5) which of the following is subject to a substantial performance standard in the
absence of an express condition?
a.a promise to pay money
b.a promise to deliver a deed
c.a promise to build a house
d.a promise to deliver some goods
6) when courts review formal agency adjudications or formal rulemaking, the apa calls
for the application of a(n):
a.substantial evidence test.
b.beyond reasonable doubt review.
c.de novo review.
d.arbitrary and capricious test.
7) which of the following tests requires a professional to know the name of the
nonclient who will use his/her work product and the particular purpose for which that
person will use the work product?
a.restatement test
b.primary benefit test
c.foreseeable users test
d.scienter test
8) the general common law rule on contract modifications holds that an agreement to
modify an existing contract requires a(n):
a.necessary increase in the value of the exchange.
b.inclusion of a new party to the contract.
c.new and independent consideration.
d.economic exchange of substantial value.
9) in order to satisfy the consideration requirement to form a contract, the consideration
exchanged by the parties must:
a.have a monetary value.
b.conform to the parties subjective intent.
c.be legally sufficient.
d.have approximately the same value.
10) mike has a three-year lease on the apartment he occupies. he has lived there one
year. he now wants to leave and go to aspen, colorado to be a ski instructor. however,
mikes landlord will not release him from the lease, and threatens to sue him if he breaks
his lease. mike finds paul to take over the last two years of the lease, but mike is
worried that paul might cause damage or in other ways inflict loss and that he, mike,
might be held financially responsible. in order to assure mike that he will be completely
discharged from all obligations under his lease, mike should attempt to bring about:
a.an assignment.
b.a novation.
c.either an assignment or novation – it will not affect mikes future liability.
d.neither an assignment nor a novation – both will not accomplish mikes objective.
11) what can the plaintiff usually elect to receive in lieu of the basic remedy in a case of
copyright infringement?
a.punitive damages
b.liquidated damages
c.special damages
d.statutory damages
12) mark and bonnie are partners. mark contributed $30,000 of capital to the
partnership and bonnie contributed $15,000. mark does 70 percent of the partnerships
work, while bonnie does 30 percent. they agree that mark will assume 60 percent of
partnership losses and bonnie 40 percent. they have not decided how to share profits.
the partnership earns a profit of $90,000. what is bonnies share of the profits?
a.$45,000
b.$30,000
c.$27,000
d.$36,000
13) in which of the following statements concerning a cpa firms action is scienter or its
equivalent absent?
a.having actual knowledge of fraud.
b.performing substandard auditing procedures.
c.reckless disregard for accuracy in ones work.
d.intent to profit by concealing fraud.
14) under the mbca, which of the following is correct concerning shares repurchased by
the corporation?
a.they are no longer issued or outstanding, which means that they may be resold only
for par value or more.
b.they may either be restored to unissued status or held as treasury shares, which means
they may be sold at any price.
c.they may be canceled, in which case they are no longer authorized and cannot be
reissued.
d.they are issued but not outstanding, which means they may be resold at any price.
15) chica, a womens clothing store, held a prize drawing for a $500 shopping spree on
saturday that it had advertised throughout the week. participation in the drawing
required being at the store by noon and completing an application form that included
personal information and placing it in a box. the information would then be put into a
database for marketing purposes. fashion consultants offering merchandise for sale
greeted customers arriving at the store on saturday morning. joy was the winner of the
drawing. has she given consideration for the prize?
a.no, she gave no legal value to chica.
b.no, unless she purchased an item from one of the fashion consultants.
c.yes, she came to the store and gave information that was for the stores use.
d.yes, unless the store was conveniently located.
16) if there are insufficient funds to satisfy all the creditors within a class:
a.the debtors have the last say on the amount that each member shall receive.
b.the class members decide amongst themselves the amount that each of the members
should receive.
c.the court makes an arbitrary decision regarding the share of each member.
d.each class member receives a pro rata share of his claim.