If a provision in an insurance policy is ambiguous:
a. it is interpreted in favor of the insurer because the insured could have rejected the
policy.
b. it is interpreted against the insurer.
c. parol evidence is admitted to show what was intended.
d. the policy is declared void and the insurer is required to return all premiums to the
insured.
Title VII protects members of which racial grouping(s)?
a. black only
b. black, Native American, and Asian-Pacific
c. white only
d. all racial groupings
Most limited liability company statutes provide that a LLC will dissolve:
a. by the consent of the members.
b. upon the death of a member.
c. upon the expulsion of a member.
d. all of the above.
The right of privacy consists of:
a. the right to be secure against unreasonable searches by the government only.
b. the right to protection against intrusions by others only.
c. both the right to be secure against unreasonable searches by the government and the
right to protection against intrusions by others.
d. none of the above.
Which form of business entity was created primarily to shield innocent owners,
particularly those in professions, from malpractice liability generated from other owners
in the firm?
a. the limited partnership
b. the limited liability partnership
c. the limited liability company
d. none of the above
Service of process refers to:
a. a demand letter sent by the plaintiff to the defendant.
b. a reply sent to the plaintiff by the defendant.
c. giving the defendant proper notice that a legal action is pending.
d. a record of the court’s preliminary hearing.
The tort statutes of limitations tend to be __________the UCC statute of limitations.
a. shorter than
b. longer than
c. equal to
d. excluded by
For a bilateral contract to be enforceable there must be:
a. mutuality of obligation.
b. an illusory promise.
c. forbearance.
d. adequacy of consideration.
Which of the following can be consideration for a promise?
a. Refraining from beating one’s spouse.
b. Promising to refrain from beating one’s spouse.
c. Refraining from smoking cigarettes.
d. Refraining from using cocaine.
The party who writes or creates a promissory note is called the:
a. payee.
b. drawee.
c. drawer.
d. maker.
Which of the following is not a product liability theory that protects buyers and allows
them to recover for injury and economic loss?
a. express warranty
b. implied warranty
c. strict tort liability
d. assumption of the risk
Which of the following statements is correct concerning restrictive covenants?
a. Restrictive covenants that have not been enforced or observed are nevertheless valid
and enforceable.
b. Restrictive covenants take precedence over conflicting statutes.
c. Restrictive covenants generally impose some limitations on the landowner€s use of
the property.
d. If any uncertainty exists in the interpretation of a restrictive covenant, the covenant
will be interpreted liberally in favor of the limited use of the land.
When goods are sold at an auction in separate lots, the title to each lot passes:
a. when the winning bidder tenders payment for the lot.
b. when the lot is received by the winning bidder.
c. only when all lots have been sold.
d. when the auctioneer announces that the lot in question has been sold to the bidder.
When a seller breaches a contract for the sale of goods to a buyer, the buyer is entitled
to specific performance of the contract if the:
a. goods are unique.
b. market cost of the goods has increased.
c. goods can be purchased in any major city in the country.
d. buyer’s customers will be disappointed if the buyer does not obtain the goods.
Under the UCC, an assignment of all the assignor’s rights under a contract generally is
held to be both an assignment of rights and a delegation of duties.
Suzy Anders enters into an oral contract to purchase a tract of land from Bill Hermes.
The land is considered worthless, but Anders feels that she has discovered a possible
usage that would drastically increase the value of the land. To assure herself of the
potential value of the land, Anders orally hires an attorney to investigate the title and
records associated with the land in question. Before gaining any information from her
attorney, Anders orally contracts with a builder to construct a huge building on the site.
Because of the size of the project, a completion time is difficult to predict. Anders now
discovers that the land is indeed useless, a fact that she obtains through information
from her attorney.Anders now refuses to honor her contracts with Hermes, her attorney,
and the builder. Must Anders honor her contractual agreements?
A party injured by the other party’s anticipatory repudiation of a contract has the right to
bring suit at the time of the repudiation without waiting to see if there will be proper
performance when due .
A consumer claiming that there has been a violation of a consumer protection statute
has the burden of proving that the statutory definition of “consumer” has been satisfied.
Investors who lack inside information and have sold their stock during the relevant time
period may recover damages from insiders who have made use of the undisclosed
information.
When a buyer materially breaches a contract, the seller may cancel it.