Global Industries requires all new employees to be at least six feet tall to correspond
with their marketing campaign: “The big people serve you.” Women who are denied
employment solely because of their height sue Global. What must Global prove?
A. Height is directly related to the specific job in question.
B. Nothing, since the burden of proof is on the women who sue.
C. Height is directly related to Global’s general business needs.
D. Nothing, since Global applies the height standard in a nondiscriminatory manner.
Agnes borrowed a cup of sugar from her next-door neighbor. She intended to return the
sugar the next day. This transaction was a:
A. bailment for the sole benefit of the bailor.
B. mutuum.
C. mutual-benefit bailment.
D. bailment for the sole benefit of the bailee.
Vernon owns a family run farming business. He earned $100,000 in the current
financial year. He owes $70,000, which forms a part of his farm expenses, to creditors
but he wants to keep the business running. Which type bankruptcy should Vernon file
for?
A. Chapter 7 only
B. Chapter 11 and chapter 7
C. Chapter 7 and Chapter 12
D. Chapter 12
Ted gave Stanly a $300 negotiable note for repairs to his car. Stanly did not do the
repairs but indorsed the note to Nami who did not know of Stanley’s lack of work and
paid Stanly for its note. Nami gave the note to her daughter, Sopan, for Christmas and
Sopan attempted to collect the note. What is Sopan’s legal status?
A. Sopan is not a holder in due course but has the rights of a holder in due course.
B. Sopan is not a holder in due course and has no rights of a holder in due course.
C. Sopan is not a holder in due course but does qualify as a holder in gift status.
D. Sopan has no rights since she did not give consideration.
Vanessa has received gifts subject to the provisions of the Uniform Transfer to Minors
Act. When Vanessa graduates from high school at age 17 and moves away from home
she wants to terminate the custodianship. At what age does the custodianship
terminate?
A. 17
B. 18
C. 21
D. The age is decided on case to case basis.
A credit card company has cheated one million cardholders out of 50 cents each.
Marlene, one of the defrauded cardholders, wants to sue the credit card company but
cannot find an attorney who is willing to do this. Marlene should:
A. approach the legislature for special suit legislation.
B. approach the U.S. Supreme Court to grant original jurisdiction.
C. bring a petition to the Congress signed by the cardholders.
D. bring a class action suit.
Iago has a tenancy for years apartment rental agreement with Ranch Apartments. When
the agreement ends in March, Iago asserts a right to renew while Ranch states that the
rental agreement ended without notice. Which party is correct?
A. Iago, since there is an implied renewal right.
B. Ranch, since no statute requires a party to give notice when ending a lease.
C. Iago, since the tenancy for years must at least continue until the end of the calendar
year.
D. Ranch, since the tenancy for years automatically terminates on the expiration of the
stated term.
An acceleration of the debt:
A. increases the interest rate.
B. makes the entire amount of the debt due for immediate payment.
C. increases the monthly payment amount.
D. makes the repayment period of the entire debt one year.
Who typically conducts “direct examination”?
A. The plaintiff’s attorney
B. The defendant’s attorney
C. The judge
D. The jury
Which of the following is true of rejection of goods by the buyer?
A. A rejection by the buyer can be done even after the buyer has expressed acceptance
of the goods.
B. A buyer can claim ownership of the goods even after rejection.
C. A rejection by the buyer can occur even before the goods are tendered and
inspected.
D. A rejection must be done within a reasonable time after delivery or tender to the
buyer.
The _____ accepts the risk of loss in return for a premium.
A. insured
B. insurer
C. beneficiary
D. benefactor
Small State has a limited customer base north and south of the interstate highway.
Company A and Company Z agree that A will sell north of the interstate highway and Z
will sell south of the interstate. This is a _____ violation of the Sherman Antitrust Act.
A. per se
B. rule-of-reason
C. joint federal and state
D. minor
Jackie is interested in the property of the Big Partnership, in which Jackie is a full
partner. She wants to mortgage the property in order to avail of loans for the
organization. All the partners do not agree with Jackie. What is Jackie’s legal position
with regard to the mortgage under UPA?
A. Her partners’ non-agreement is legally irrelevant.
B. Jackie’s interest in the partnership property cannot be assigned.
C. Jackie can mortgage her share of the organization’s property.
D. UPA does not address this issue and a court will decide on a case by case basis.
Attachment occurs when the:
A. secured party does not sign a security agreement.
B. debtor has no ownership rights in the collateral.
C. secured party transfers something of value to the debtor.
D. secured party gives possession of the collateral.
Which of the following is true of public interest and public policy?
A. Public interest promotes behaviour complying with the public consensus while
public policy refers to the idea that certain activities affect the entire social structure.
B. Public interest is the consensus and public policy is the coercive social engineering
strategy by which that consensus is implemented.
C. Public interest promotes the making of safe goods to coerce the public policy to
maintain a social structure that promotes health and safety, and prevents illness and
injury.
D. To meet the goal of public policy, public interest insists that manufacturers, sellers,
and distributors compensate a victim, who is injured by an unsafe product,
Agent Greta receives money from clients of her principal Wayne on the fifteenth of
each month. In the absence of an agreement, how frequently must Greta account to
Wayne for the money she receives?
A. Typically during the financial year end.
B. Immediately upon receiving the money.
C. Within a year of receiving the money.
D. Within a reasonable period of time after the money is received.
Lydian owns a small island outright. She is said to have a(n):
A. estate in fee simple.
B. leasehold estate.
C. life estate.
D. reversion estate.
Anthony offers to sell a computer to Salvador for $900 if Salvador replies by e-mail
only, sent no later than noon on Saturday. On Saturday, Salvador is unable to access his
e-mail, so he mails an acceptance at the post office before noon. Which of the following
is true of the situation?
A. A legal contract exists since Salvador’s acceptance was sent by noon on Saturday.
B. No contract exists since Salvador’s acceptance is not effective until reviewed.
C. Anthony is legally bound to the contract since Salvador’s e-mail malfunction was no
fault of his own.
D. A legal contract does not exist since the mode of acceptance specified in the offer
was not used.
Stanley falls in the low-income group. Which of the following health care plans can
Stanley opt for?
A. Medicaid
B. Long-term care insurance
C. Medicare
D. Mediclaim
Mitch is photographed attending a public school board meeting where violent protestors
attacked members of the school board. Later, when Mitch runs for the school board, a
local newspaper publishes Mitch’s picture next to that of the violent protestors. Mitch
may:
A. sue if the newspaper writes a false article with actual malice.
B. sue for creating a false light.
C. sue the newspaper if he is able to prove the motive of the publisher.
D. sue the newspaper for both defamation and disparagement.
This action is a conspiracy in which a union places pressure on a neutral customer with
whom the union has no dispute to cause the neutral entity to cease doing business with
the employer with whom the union has a dispute.
A. Constructive discharge
B. Featherbedding
C. Secondary boycott
D. Arbitration
Claudia contracts with Friendly Paving Co. to install a new driveway. To pay for this
work, Claudia transfers to Friendly Paving Co. her right to receive payment from
Clifford for a loan she made him. Friendly Paving Co. is the:
A. creditor beneficiary.
B. donee beneficiary.
C. executor.
D. fiduciary.
Ron, aged 20 years and 4 months, purchases a car from Slim’s Auto Sales for $2,000.
However, Ron returns the car to Slim Auto Sales telling them he does not feel this is the
right car for him and that he wants his money back. At the time of disaffirmance Ron
was 21, the age at which he is considered an adult in his jurisdiction. Will this
disaffirmance be enforceable in the court of law?
A. No, since Ron did not give Slim a signed disaffirmance.
B. Yes, since Ron disaffirmed during the year he reached his adulthood.
C. No, since the disaffirmance must be written when the price exceeds $500.
D. Yes, since the courts and laws always rule in the favor of minors.
Sear Enterprises wants to continue in business but needs some relief from creditors’
claims. Sear Enterprises should consider filing under _____ of the Bankruptcy Code.
A. Chapter 7
B. Chapter 11
C. Chapter 12
D. Chapter 13
Jan signs the articles of incorporation for a corporation being formed and Tom wants to
locate possible investors in the new corporation. Jan is a(n):
A. incorporator.
B. promoter.
C. registered agent.
D. shareholder.
Which of the following is true of using facsimile signatures in contracts?
A. A facsimile signature violates the best evidence rule and is unacceptable even if the
contract validates it.
B. The law decrees the use of facsimile signatures of public officials as a fraud.
C. The law allows the use of facsimile signatures and contracts in place of original
ones.
D. The use of facsimile signatures of public officials is allowed when certain
requirements are followed.
In terms of disputed amounts, satisfaction:
A. is the legal term used to describe the sacrifice that each contracting party must
experience.
B. is the implied acceptance of less than what has been billed to the debtor.
C. is the agreed-to settlement contained in the accord.
D. is the expressed acceptance of less than what has been billed to the defaulter.
A trust that is created by a will is called a(n):
A. conveyance in trust.
B. declaration of trust.
C. inter-vivos trust.
D. testamentary trust.
In terms of agreements, preexisting duties:
A. are enforceable in most states.
B. are enforceable in some states for contracts not involving goods.
C. are enforceable under the UCC for contracts involving goods.
D. are unenforceable as a consideration in a new contract.
Tom gave celebrity Lynnetta Landau a blank sheet of paper and asked her to sign her
autograph on it. Then, without Lynetta’s knowledge, Tom wrote a promissory note made
payable to him for $3,000 above her signature. This kind of fraud is known as fraud:
A. as to the essential nature of the transaction, which may not be used as a defense
against a holder in due course.
B. as to the essential nature of the transaction, which may be used as a defense against
a holder in due course.
C. in the inducement, which may not be used as a defense against a holder in due
course.
D. in the inducement, which may be used as a defense against a holder in due course.
Early neutral evaluation:
A. is an ADR process that combines mediation with arbitration.
B. is a shortened version of a trial conducted in less than a day before an actual jury
renders an advisory verdict in the case.
C. is an ADR technique by which the parties hire a retired judge to hear their dispute.
D. is an ADR process in which the parties permit a referee to assess their case on the
basis of the facts and legal arguments alone.
A point is a one-time charge equal to:
A. one-tenth of the principal amount borrowed.
B. three percent of the principal amount borrowed.
C. one percent of the principal amount borrowed.
D. ten percent of the principal amount borrowed.
Jess buys a microwave oven with a manufacturer’s full one-year warranty. If Jess
discovers that the microwave oven does not work properly during this time, the
manufacturer is obligated to:
A. charge Jess only for the cost of the parts replaced, not for the labor involved.
B. repair the microwave at a nominal cost to Jess.
C. provide a pro-rata credit for the defective part of the microwave.
D. fix or replace the microwave for free.
Under the ____, the principal consideration is the safety of the product, not the conduct
of the manufacturer or supplier of the goods.
A. doctrine of public policy
B. doctrine of negligence
C. doctrine of public interest
D. doctrine of strict liability
