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1) the basic recovery for copyright infringement is only the owners actual damages.
2) minor criminal cases and civil disputes are decided in the appellate courts.
3) public figure pam sues a newspaper for defamation based on statements regarding
her stand on a public issue. pam must prove the newspapers actual malice in order to
recover any damage.
4) ratification is a process whereby a principal binds himself to an unauthorized act
done by an agent, or by a person purporting to act as an agent.
5) offers that fail to provide a specific time for acceptance are invalid because they are
deemed to be indefinite.
6) the barrel & wine partnership is being wound up and liquidated. net assets are to be
distributed according to which of the following order of priority?
a.first to creditors who are not partners, then to creditors who are partners
b.first to all creditors, then to partners as per their capital accounts
c.first to partners per their capital accounts, then to all creditors
d.first to partners who have made loans to the partnership, then to all other creditors
7) which of the following theories of recovery is likely to be most effective against a
disclaimer of liability?
a.express warranty
b.implied warranty of merchantability
c.implied warranty of fitness
d.section 402a
8) under the model nonprofit corporation act (mnca), members have an absolute right to
inspect and copy a list of the members.
9) today, a tort reformer is someone who wants to:
a.help more injured plaintiffs recover more money.
b.make tort law more clear, coherent, and rational through uniform legislation.
c.deal with the insurance crisis by limiting plaintiffs ability to recover damages.
d.get rid of negligence law and replace it with strict liability.
10) the outer limit on a firm offer is:
a.1 month.
b.3 months.
c.6 months.
d.1 year.
11) jerry wants to purchase a flat. so he borrows $50,000 from xyz bank. he signs a note
for $50,000 and gives the bank a $50,000 mortgage on the flat as security for his
repayment of loan. within a year and a half, jerry repays the entire loan. after the
repayment of the loan, which of the following right does jerry have against xyz bank?
a.right of foreclosure
b.right to reimbursement
c.right of subrogation
d.right of redemption
12) eu countries depend more on litigation instituted by private parties as the chief legal
means of dealing with misleading advertising. in this sense, the approach taken by eu
nations resembles advertising regulation in the united states under:
a.section 5 of the ftc act.
b.section 4 of the clayton act.
c.section 16(c) of the sherman act.
d.section 43(a) of the lanham act.
13) jims contract with frank obligated jim to pay frank $10,000. frank properly assigns
the contract to abel. at that time, abel notifies jim about the assignment. jim, however,
forgets and pays the $10,000 to frank. by this time, abel is screaming for his money.
however, by then, frank goes into bankruptcy. in this case:
a.jim is liable to abel for $10,000.
b.abel is out of luck because jim performed his obligation by paying frank.
c.jim is liable to abel not for the $10,000, but for his breach of the implied warranty that
the assignor is solvent.
d.abel is out of luck because his notification was oral rather than written.
14) dillons, a discount retailer with over 500 employees, includes a clause in its
employment application stating that all future employment disputes will be resolved
through binding arbitration. this clause most likely:
a.will be considered valid by federal courts.
b.will be considered unenforceable by all courts.
c.will result in employees having to mediate their employment-related claims against
dillons.
d.will require an employee to mediate employment-related disputes.
15) the motion to dismiss for failure to state a claim upon which relief can be granted is
sometimes called the:
a.deposition.
b.demurrer.
c.interrogatory.
d.directed verdict.
16) a chapter 13 of the bankruptcy code provides an advantage to the debtor by which:
a.the debtor is not obligated to reveal all his assets.
b.unsecured creditors are not recognized as valid creditors.
c.the debtor can avoid the stigma of bankruptcy by getting an opportunity to pay the
debts in installments under the protection of a federal court.
d.the court does not appoint a trustee, as it relies on the good faith of the debtor for the
settlement of all debts.
17) tracy is attending the annual general meeting of shareholders of acor corporation.
seven directors are going to be elected from twenty nominees during the meeting
through cumulative voting. one thousand shares will be voted. what is the minimum
number of shares that tracy needs to have to be able to elect three directors?
a.374
b.375
c.376
d.377
18) ashburn had a big ranch in georgia. one day pamela stated, id like to buy your sheep
for $50. theyre so cute! to which ashburn immediately replied, sure. thats a deal! this
cannot be enforced as a contract because of lack of:
a.consideration.
b.definiteness.
c.communication to offeree.
d.present intent to contract.
19) abraham, who is a partner in adonas firm, has been declared a terrorist by the court
following investigations of a criminal case. his partners at the firm want to expel him
from partnership but they are not ready to give his interest in partnership. is abraham
entitled to his interest in partnership?
20) barry and andrew contract for the sale of 100 widgets (goods) from barry to andrew
for $1,000. the contract contains a clause prohibiting assignment of the contract.
nonetheless, andrew assigns the contract to smith. is there a valid assignment of
contract rights here? is there a delegation of duties?
21) selena joins konas management consulting business. they do not indicate whether
selena is konas partner, but selena receives 34 percent of the profits of the business and
makes decisions regarding which clients the business should accept. two years later,
selena leaves the business to start a singing career. selena claims she owns a portion of
the value of the business. is selena correct?
22) bev stratton owns 100 shares of maxom company, which are traded on the new york
stock exchange. maxoms board of directors has approved a merger of maxom with vert
company. bev believes the merger is economically unjustified and intends to seek her
dissenters right. what must bev do to enforce her dissenters right?
23) pesky, inc. employs numerous sales representatives who attempt to sell the
companys products door-to-door. all of the products sold in this manner are designed
for use in the home. they range in price from $29.95 to $149.95. each pesky sales
representative has been instructed to provide customers the address from which
warranty information about peskys products may be obtained. the sales representatives
give customers this address before the sale of any product takes place. the ftc has sued
pesky in federal court, requesting appropriate injunctive relief on the theory that peskys
practices (as just described) do not comply with the magnuson-moss act and its
implementing regulations. is the ftcs position correct? explain.
24) while auditing the financial statements of merlyn company, arturo artinez discovers
nonpublic, confidential information that merlyns earnings will be larger than earlier
projected. arturo informs his sister selena about this, telling her, you can make a lot of
money using this information because it isnt public yet. be discreet, however, because
im not supposed to give you this information. selena uses the information to purchase
20,000 shares of merlyn. three weeks later when, merlyn releases the financial
statements showing its actual earnings, the price of its shares rises and selena earns a
$120,000 profit. has selena violated rule 10b5 of the securities exchange act?
25) wanda contracted to sell mike 100 boxes of ball bearings. the contract did not
specify a place of delivery. the ball bearings now reside at wandas place of business.
wanda refuses to ship the 100 boxes to mike, and mike refuses to come to wandas place
of business to pick them up. who is right? why?
26) little llp, a cpa firm, has been doing financial statement auditing for honesty corp.
for the last 10 years. while auditing last years financial statements of honesty, little finds
out that honesty has overstated assets by 12 percent and revenues by 19 percent to make
up for the huge losses it incurred. when little informed the management of honesty
about this illegal act, honestys management threatened to cancel littles contract with
honesty and demanded back the personal records and working papers from little. should
little give them back? who owns them? who has right of access to them? if little is
forced by honesty to destroy those papers, under which act can little be punished?
27) the board of directors of lorantan corporation has 12 members. lorantans bylaws
provide that a majority of seven or more directors is necessary to form a quorum. at a
meeting of the board of directors, a resolution is adopted authorizing the sale of a
substantial portion of the corporate assets to pam park, a director. pam is one of the
eight directors present. what must the directors do for pam to avoid liability for buying
the assets from the corporation?
28) richard contracts with yuan to buy yuans house for $100,000 unless my horse does
not win the kentucky derby. this is a condition subsequent, or at least an attempted
condition subsequent. rephrase it as a condition precedent with the same effect. if you
can do this, why does the law bother to distinguish condition precedent from condition
subsequent?
