Describe the crime of false pretenses and name and define four crimes similar to false
pretenses that were discussed in the textbook.
Marvin offers to sell his lawnmower to Cheryl for $75 if she pays cash and picks the
mower up at his house the following week. Cheryl replies that she would like to buy the
mower and thinks $75 is a fair price, but she has no way to transport the mower, so she
will buy it for cash if Marvin will have it delivered to her house. In this situation:
a. Cheryl has provided an additional term, which will be construed as a proposal which
Marvin can accept or reject.
b. Marvin and Cheryl are considered merchants in relation to the mower, so the delivery
of the mower is an additional term which will become part of the contract unless
Marvin objects within a reasonable time.
c. the delivery of the mower is a different term from that in the offer, and it generally
will not become part of the contract unless Marvin specifically agrees to it.
d. courts would all agree that the different delivery terms cancel each other out and the
Code would provide the missing term.
With respect to the board of directors of a corporation, which of the following is NOT
correct?
a. They manage the business and affairs of the corporation.
b. They are the shareholders’ elected representatives.
c. They must always obtain shareholder approval before deciding questions of operating
policy.
d. They have the authority to delegate power to officers and agents.
Non-compete agreements drafted for employees of Internet companies:
a. are no different in enforceability than non-compete agreements for other types of
companies.
b. are subject to smaller geographic restrictions than for other types of companies.
c. have been held subject to larger geographic restrictions than for other types of
companies.
d. have not yet been the subject of litigation.
A contract agreeing to indemnify the insured against certain specified defects in title to
real property is called:
a. title insurance.
b. a warranty deed.
c. guarantee insurance.
d. a real estate guarantee.
The fraudulent conversion of another’s property by one in lawful possession of it is:
a. robbery.
b. theft.
c. larceny.
d. embezzlement.
Bonds subject to a redemption provision, which permits the corporation to redeem, or
pay off, all or a part of the issue before maturity at a specified redemption price are
known as:
a. secured bonds.
b. income bonds.
c. callable bonds.
d. convertible bonds.
Members of member-managed LLCs and manager-managed LLCs are the same in
which of the following aspects?
a. Control.
b. Who has fiduciary duties.
c. Liability.
d. Whether the member is an agent of the LLC.
Product liability exists if:
a. the consumer misuses the product.
b. the consumer alters the product before he or she uses it.
c. the product reaches the consumer without substantial change in the condition in
which it is sold.
d. the consumer abuses the product.
Which of the following is NOT always necessary in order for a valid contract to be
formed?
a. Mutual assent.
b. Legality of purpose.
c. A writing.
d. Competent parties.
Quasi contracts are used to provide a remedy when the parties enter into a(n):
a. void contract.
b. implied in fact contract.
c. situation in which promissory estoppel applies.
d. All of the above.
Jeff is acting as an agent for Tyler. Tyler’s liability if Jeff makes an unauthorized
tortious misrepresentation:
a. depends primarily on whether Jeff is an employee or independent contractor.
b. exists only if Jeff is an employee and was acting outside the scope of employment.
c. exists only if Jeff is an independent contractor and Tyler did not intend the
misrepresentation.
d. exists regardless of whether Jeff is an employee or independent contractor and
regardless of whether Tyler intended the result of Jeff’s misrepresentation.
Austin enters a contract with Bess to remodel her kitchen within one month. He
repeatedly comes to her house to start the project, but Bess does not let him begin
because she says she needs unrestricted use of her kitchen. Bess has:
a. not caused a discharge of Austin’s duty under the contract; they will have to work out
another time.
b. violated the perfect tender rule.
c. materially breached the contract by substantially interfering with or preventing
Austin’s performance.
d. created an accord.
If you lose your wallet along with your ATM card, your liability is:
a. unlimited unless you notify the bank within thirty days.
b. limited to $200 if you notify the bank within two days.
c. limited to $50 if you notify the bank within two days.
d. limited to $500 if you notify the bank within sixty days.
Andrew, an attorney, has a case that was recently heard by the United States Court of
Appeals. He would like to have the United States Supreme Court hear the case. One
way by which the U.S. Supreme Court may review the case is by:
a. forum non conveniens.
b. writ of certiorari.
c. en banc appeal.
d. motion for supreme judgment.
Because of the increasing complexity of the social, economic, and industrial life of the
nation, the scope of __________ has expanded enormously.
a. common law
b. administrative law
c. procedural law
d. equity
Which of the following is correct with regard to treasury shares?
a. The acquisition of such shares by the corporation is a distribution to shareholders
with an effect similar to that of a dividend.
b. Under the Revised Act, treasury shares are unauthorized but issued.
c. The 1980 amendments to the MBCA eliminated the concept of treasury shares.
d. Treasury shares are issued and outstanding.
Ken loaned Barbara $8,000 and took in return a note secured by Barbara’s car. If
Barbara files for bankruptcy when the value of the car is $4,500, what is Ken’s status?
He has a (n):
a. secured claim for $4,500.
b. unsecured claim for $8,000.
c. unsecured claim for $4,500.
d. secured claim for $8,000.
Which of the following is required regarding indorsements?
a. An indorsement must be written on the back side of the instrument.
b. Indorsements must comply with Federal Reserve Board guidelines in order for the
instrument to be negotiable.
c. Indorsements must be made on a separate sheet of paper stapled to the instrument.
d. None of the above.
A characteristic of a tenancy in common is that:
a. it is the most frequently used form of concurrent ownership.
b. each co-owner has an undivided interest in the property and has the right to
possession.
c. there is a right of survivorship.
d. Both (a) and (b).
Ashley wrote a defamatory letter regarding Brian which she mailed to Brian, but which
she did not show to anyone else. Ashley has committed:
a. the tort of slander.
b. the tort of libel.
c. neither libel nor slander, because there has been no publication of the letter.
d. the tort of false light.
The Wal-Mart Stores, Inc. v. Samara Brothers, Inc. case involved which of the
following?
a. Infringement of unregistered trade dress.
b. Infringement of a registered symbol.
c. Use of a certification mark.
d. Use of a collective mark.
Pat bought a cotton sweater at Ivey’s Fashion Store. Sue, the salesperson, told her the
sweater was guaranteed not to shrink if washed in cold water by hand. Pat washes the
sweater as directed, and it shrinks. Which of the following is correct?
a. Pat has no recourse against the store, because it was only the salesclerk who
misrepresented the sweater.
b. Sue has apparent authority to make warranties such as the one that she made.
Therefore, the store is bound.
c. If Sue is only a part-time employee, Ivey has no responsibility for misrepresentations
she makes.
d. Salesclerks are usually independent contractors. Thus, there is no liability on the part
of Ivey.
Which of the following is not one of the situations in which the 1934 Securities
Exchange Act requires disclosure during a “tender offer”?
a. When a person or group acquires more than 5 percent of a class of voting securities
registered under the 1934 Act.
b. When a person makes a tender offer for more than 5 percent of a class of registered
equity securities.
c. When a company makes a tender offer for any voting stock in another company.
d. When the issuer makes an offer to repurchase its own registered shares.
If a bank pays a postdated instrument prior to its date, it will be a proper debit to the
drawer’s account, unless the drawer had timely informed the drawee that the check was
postdated.
An exclusive dealing contract is one type of contract which is illusory, because it lacks
consideration.
Identify two situations in which silence or nondisclosure constitutes a
misrepresentation.
What are the various kinds or sources of American law? Discuss how these various
types of law interrelate to form the system of law in the United States.
Wills and trusts, after being validly created, are revocable.
Unlike general partnerships, limited partnerships are statutory creations.
A prospectus is an offer a corporation makes to interest people in buying securities.
Everyone is regarded as having contractual capacity unless the law, for public policy
reasons, holds that the individual lacks such capacity.
If the EPA determines that a SIP is not complete, the EPA may treat it as a nullity in
whole or in part.