Through what kind of written instrument would Tim direct Howard to pay $600 to the
order of Celeste?
A. A certificate of deposit
B. A note
C. A draft
D. A dishonored draft
Which of the following is true of a summary jury trial?
A. The jury provides an advisory verdict based on the facts.
B. The jurors are prohibited from speaking to the parties about the case.
C. The judge submits written questions that the parties have prepared for the jurors.
D. Neither side can withhold an argument that they later present in court.
Morey and Sheryl enter into a contract in which Morey agrees to pay Sheryl $40 to
collect his mail while he is on a month-long vacation. Sheryl then delegates the duty to
her son Greg. In this assignment, Sheryl is:
A. the assignor.
B. the obligor.
C. the assignee.
D. the obligee.
Pogisa is a director at Trendz Corp. After studying and consulting with experts, Pogisa
votes to have Trendz sell a tract of land for $500 per acre. Within a year, the land is
worth $2,000 per acre and Trendz shareholders want to sue Pogisa for her vote to sell
the land. What legal protection, if any, does Pogisa have?
A. The fairness rule
B. The business judgment rule
C. The insider trading rule
D. The actual authority rule
Beth, 15, enters into a written contract with Joan, also 15. In the contract, Beth agrees to
do Joan’s math homework for two weeks for $50, which Joan agrees to pay at the end of
the two-week period. This contract is:
A. implied-in-law.
B. void.
C. unenforceable.
D. voidable.
Vega appoints Ancel, a real estate broker, to negotiate the sale of her home. Which legal
rule requires that this agreement be written?
A. Parol evidence rule
B. Best evidence rule
C. Standard construction rule
D. Equal dignities rule
The reward given to persons who voluntarily assist a sinking ship is known as:
A. gift in causa mortis.
B. chose in action.
C. salvage.
D. severalty.
Allison and Zena own property as joint tenants. Zena’s creditors:
A. canlevy upon interest on execution and take over Zena’s interest as a tenant in
common.
B. can levy upon Zena’s interest on execution and take over Zena’s interest as a joint
tenant.
C. can levy both Allison’s and Zena’s interest on execution and take over their interest
as a lien creditor.
D. can levy upon both Allison’s and Zena’s interest on execution and take over their
interest as owner.
Jack and Jill live in a community property state. Jill works full time and Jack stays
home taking care of their children. What is the legal status of the earnings Jill makes
that are used to purchase a new home?
A. Owned by Jill.
B. Owned by Jill subject to a one third interest Jack has.
C. Jointly owned by Jack and Jill.
D. Owned by Jill, Jack, and the children.
Most courts with appellate jurisdiction are empowered to determine whether the lower
courts have made errors of law. This process is referred to as:
A. plenary review.
B. a clearly erroneous standard.
C. abuse of discretion.
D. de novo review.
In a ____, a target corporation uses news releases, advertisements, and press
conferences to convince shareholders to retain present management.
A. greenmail
B. lockup agreement
C. public relations campaign
D. targeted shareholder agreement
Tort law differs from criminal law in that:
A. tort law involves a public wrong.
B. tort law involves legal action by governmental authorities.
C. tort law protects the public.
D. tort law compensates the injured party’s loss.
Highflight Foundation offers $1 million to the makers of the first private spacecraft to
fly to the moon and back. Spaceview, Inc. succeeds in producing the first private
spacecraft to fly to the moon and back, but Highflight refuses to pay. Is Highflight
bound by its offer?
A. Highflight is not bound unless there is a written and signed contract with
Spaceview.
B. Highflight is bound since Spaceview performed the required action.
C. Highflight is not bound since the moon is not under U.S. legal jurisdiction.
D. Highflight is bound since Spaceview had a firm offer.
This theory of corporate governance is based on the idea that corporate decision making
affects more individuals and groups than just the shareholders and the managers of the
corporation.
A. Corporate democracy
B. Governmental control
C. Special interest group control
D. Managerial control
Linda calls a cab in the morning to get to work. The fare that Linda would pay to the
cab is:
A. an exchange.
B. a donation.
C. a consideration.
D. a legal detriment.
Celebrity Shelly Dunkle, wishing to spend a few undisturbed days by herself, checks
into a resort hotel. She reserves a suite under the name of Barbi and stamps the initials
B.I. into the hotel register. She also orders room service and signs all hotel bills with
those same initials. Which of the following statements is true?
A. Because Shelly has not signed her real initials, she cannot be held liable for the cost
of the suite and all other bills she rings up under the initials B.I.
B. Because Shelly has not signed her real initials, the hotel management cannot prove
that any contractual agreement took place between them.
C. Because the initials B.I. constitute Shelly’s legal signature, she is legally obligated to
pay for the cost of the suite as well as for other bills that she signs using those initials.
D. Because Shelly did not sign her real name both parties must split payments for all
bills signed with the initials B.I.
A private civil trial can be defined as _______________.
A. a process that establishes supportive relationships among parties to a contract to
head off disputes before they occur
B. a technique by which parties hire a retired judge or a magistrate to hear the dispute,
following rules used in an official trial
C. a shortened version of a trial conducted in less than a day before an actual jury that
then renders an advisory verdict in the case.
D. a period during which a court’s docket is cleared of all business, except for
settlement hearings.
The _____ is a model set of laws designed to govern almost all commercial
transactions.
A. Uniform Contract Law Code
B. Uniform Common Code
C. Uniform Civil Code
D. Uniform Commercial Code
Alan and Baker are disappointed in the profitability of their A and B Partnership. They
want to join their partnership with the X and Y Partnership. Is it possible for a
partnership to be a partner?
A. Yes.
B. No.
C. Yes, if the partners agree to personally guarantee the debts of the new partnership.
D. No, because a partner must be an entity.
John must repair Gladys’ motorcycle, but when he becomes ill he transfers that
responsibility to Clark. The transfer to Clark is:
A. an assignment.
B. a delegation.
C. a novation.
D. a conveyance.
_____ occurs when one party makes false statements or commits some sort of false
action that causes another party to rely on those falsehoods then experience an injury or
loss as a result.
A. Abandonment of contractual obligation
B. Fraudulent misrepresentation
C. Anticipatory breach
D. Constructive breach of contract
An agreement in which one party consents to sell to a second party all of the goods that
party makes in a given period of time is ____.
A. a requirements contract
B. a current market price contract
C. a cost-plus contract
D. an output contract
A contract implied by the direct or indirect acts of the parties is known as a(n):
A. express contract.
B. implied-in-fact contract.
C. unilateral contract.
D. void contract.
Security interests on fixtures are perfected by:
A. filing a financing statement with the registry of deeds where the land is located.
B. making a note of the lien on the certificate of title issued by the state government.
C. attachment alone.
D. possession of the collateral.
Charles creates a revocable living trust. What are the typical advantages of creating a
revocable living trust?
A. Estate tax advantages
B. Management advantages
C. Both estate and income tax advantages
D. Management advantages as well as estate and income tax advantages
Which of the following is true of ethical and legal harmony?
A. In a utopian society, ethics and law would always differ.
B. Ethical considerations cannot form the foundation of a legal system.
C. A legal system founded on ethics will rarely succeed in reaching its objectives.
D. Ethics can lead the way in difficult situations where law is yet to venture.
The targeted corporation makes a deal with the suitor to protect management of the
target in a:
A. greenmail.
B. lockup agreement.
C. public relations campaign.
D. targeted shareholder agreement.
Which of the following is true of the Statute of Frauds?
A. It states that all contracts have to be in writing to be enforceable in the court of law.
B. It decrees oral contracts to be invalid and hence not upheld or enforceable by law.
C. It states that certain types of contracts have to be in writing to be enforceable.
D. It maintains that agreements can be oral while contracts have to be in the written
format.
A lease agreement may give the tenant which, if any, of the following rights?
A. Right to rent control.
B. Right to a security deposit.
C. Right to renew or purchase.
D. Neither the right to renew or purchase.
Which of the following is true of coinsurance?
A. It can be purchased to protect both real and personal property.
B. It allows the insured to pay an extra premium initially in exchange for a guaranteed
option to buy more insurance at certain specified times later.
C. It excuses the insured from paying premiums if he or she becomes disabled.
D. It is a provision under which the insurer and the insured share costs, after the
deductible is met, according to a specific formula.
A nonprofit organization, Save the Tigers, wants to contest Anna’s will, since she
promised to leave property to them at the annual Charity Banquet. Save the Tigers:
A. may submit evidence that Anna was of unsound mind.
B. may submit evidence that Anna was subjected to undue influence.
C. may not contest the will.
D. may not contest the will but may challenge the ownership of the property in
question.
On the federal level, this act assures all workers in a business, in or affecting interstate
commerce, a safe and healthful place of employment.
A. OSHA
B. FLSA
C. FICA
D. ERISA