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1) ruth purchased a property insurance policy from abc insurance (abc). this policy
covered ruths airplane and the policy limits were $300,000. a fire broke out on january
1, 2006, when the airplane was stored in its hangar, completely destroying the airplane.
there was suspicious evidence that the fire had been deliberately set, and abc honestly
believed that ruth had set the fire. abc refused to pay on this policy. however, ruth was
completely innocent, and she sued to enforce the policy. the lawsuit, which ended on
january 1, 2007, determined that ruth had nothing to do with the fire. because ruth
needed to use a private airplane to visit clients in remote areas, she rented an airplane
during the calendar year 2006. this cost her $50,000. abc was aware that ruth needed an
airplane to reach her clients when it issued the policy. ruth would have used the policy
limits of $300,000 to purchase another airplane in 2006, but for abcs refusal to pay on
its policy. under these circumstances, ruth is entitled to a judgment in the amount of:
a.$300,000 (the policy limits).
b.$300,000 (the policy limits) and also $50,000 consequential damages.
c.$300,000 (the policy limits), $50,000 consequential damages and also punitive
damages.
d.$300,000 (the policy limits), $50,000 consequential damages, statutory damages and
also punitive damages.
2) market shares in excess of _____ have historically justified an inference of monopoly
power.
a.70 percent
b.60 percent
c.90 percent
d.80 percent
3) what is an amendment to a will called?
a.bequest
b.residuary
c.advance directive
d.codicil
4) which of the following fits within one of the exceptions to the bankruptcy acts
preference provision?
a.a perfected article 9 security interest.
b.a transfer to an insider of the debtor.
c.a transfer made in the ordinary course of the debtors business.
d.a consumers transfer of less than $2000 to a creditor who has sold her consumer
goods.
5) which of the following is true of the foreign intelligence surveillance act (fisa)?
a.it was enacted as a result of the usa patriot act.
b.it has not been amended after its enactment.
c.it prohibits surveillance or monitoring without a warrant.
d.it has expanded the governments ability to monitor the phone calls of suspected
terrorists.
6) under the tila, a creditor can unilaterally terminate a credit plan for a home equity
loan and require immediate repayment of the outstanding balance when a consumer
has:
a.paid the installment without the added interest.
b.lost his only source of income.
c.defaulted on one repayment installment.
d.made material misrepresentations.
7) john owns a parcel of land on which he wants to build an apartment building.
however, johns land is currently a swamp; he wants to drain it. john should apply for a
permit to drain the swamp from:
a.the army corps of engineers.
b.the wetland preservation board.
c.the environmental protection agency.
d.the national institute of health.
8) which of the following is most true regarding noncompetition clauses in contracts?
a.such clauses are not used during employment contracts.
b.if they have a legitimate business purpose, such clauses will be enforced.
c.such clauses are enforced only for protecting the environment and conserving
resources.
d.such clauses help in promoting free trade.
9) a representative is personally liable to a holder in due course that took the instrument
without notice that the representative was not intended to be liable if:
a.the instrument identifies the represented person.
b.the form of the signature does not show unambiguously that the signature was made
in a representative capacity.
c.the instrument categorically states that the representative would be liable even if the
signature has been authorized.
d.it is proved that the original parties did not intend her to be liable on the instrument.
10) a non-sequitur used in an argument is a conclusion:
a.that does not follow from the facts or premises set out.
b.based on a false analogy.
c.that relies on the idea that a popular belief is true.
d.based on an attack against the speaker, not his/her reasoning.
11) which of the following serves essentially the same function as a magistrates
probable cause determination?
a.arraignment
b.special deterrence
c.indictment
d.incapacitation
