The RULPA specifies the events that will trigger a dissolution, after which the limited
partnership’s affairs must be liquidated. These events include which of the following?
a. The expiration of the time period specified in the certificate.
b. The unanimous written consent of all the partners.
c. A limited partner’s withdrawal from the partnership.
d. Both (a) and (b).
Steven owes Tina $100 for a used computer which he bought last year at Tina’s garage
sale. The two agree that the debt can be paid by Steven’s shoveling snow from Tina’s
driveway from January through March. The new contract is a(n):
a. accord.
b. satisfaction.
c. novation.
d. rescission.
A __________ is a delivery of possession of personal property to an agent for sale by
the agent.
a. sale on approval
b. consignment
c. sale or return
d. None of the above.
Carol buys some items at the drugstore and writes a check to the store on her account at
First Bank. Who is the drawee?
a. Carol.
b. The drugstore.
c. First Bank.
d. There is none.
Tender of delivery requires:
a. only that the seller put and hold goods that conform to the contract at the buyer’s
disposition.
b. that the goods be made available to the buyer for at least one week if they are not
perishable.
c. that the seller give the buyer reasonable notice of the tender.
d. that tender occur during the buyer’s normal business hours.
Which of the following involves a creditor beneficiary relationship?
a. A contract where the insured names a bank with which he has a loan as the
beneficiary of a life insurance policy.
b. A contract between an employer and a union representing the employees which
contract is made for the benefit of the employees.
c. A contract between the owner of a building and the contractor stating that the
contractor will pay the contractor’s employees at a specified rate.
d. A contract between a governmental unit and business for services to be rendered to
area citizens.
Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26
each. She then realized what a good buy this was and called the store with a request to
modify the contract to read two dozen. What is the consequence?
a. The modified contract is unenforceable.
b. The modified contract is void.
c. The modified contract is valid and enforceable.
d. There is no consideration, so the contract is void.
Which of the following is NOT an express warranty?
a. Restating facts or market figures about a product.
b. The opinion of an expert in a certain field regarding a product in that field.
c. A statement of the product specifications.
d. The seller’s opinion of the value of goods.
A(n) __________ is a method of discharging a contract in which a third party becomes
bound upon a promise to the obligee.
a. assignment
b. delegation
c. partial assignment
d. novation
How many stages are there in Kohlberg’s Theory of Moral Development?
a. 2
b. 3
c. 4
d. 5
An ordinary contract between the debtor and his creditors whereby the creditors receive
pro rata a part of their claims and the debtor is discharged from the balance of the
claims is:
a. a non-statutory composition.
b. a statutory assignment.
c. an equity receivership.
d. an automatic stay.
Which of the following best describes the Libertarian social ethics theory?
a. Libertarians stress market outcomes as the basis for distributing society’s rewards.
b. Libertarians encourage social control over all people in order to design an equitable
society.
c. Libertarians believe it is just for society to take wealth earned by some citizens and
distribute it to those who did not directly earn it but are in need.
d. The fact that some people end up with fortunes while others are poor proves only that
social interference is necessary to justly redistribute wealth in certain circumstances.
Which of the following acts mandates clear disclosure of relevant credit information in
consumer credit transactions? It requires conspicuous disclosure of finance charges and
that interest rates be calculated in a uniform manner.
a. Equal Credit Opportunity Act.
b. Fair Credit Billing Act.
c. Truth-in-Lending Act.
d. FTC Act.
A general partner of a limited partnership has a __________ relationship to the general
and limited partners.
a. limited
b. fiduciary
c. foreign
d. None of the above.
Identify the following relationships and parties.
a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase some property.
She agrees to pay him $75 an hour for his services, and he agrees to use his own office
and secretarial staff to negotiate and draft the agreement.
b. Mel owns a retail store. He hires Sarah to work for him as a clerk in the home
furnishings department.
c. Carl is the general contractor for the construction of a large office complex. Carl hires
Ed’s Electric Company to do all of the wiring for the building.
d. Incellmed Corporation hires Bob as an outside salesman and instructs him to call on
customers in a specified territory and to solicit orders for their products.
e. Marlin, who is the owner of Marlin’s Department Store, hires Melissa as the general
manager of his new branch in the Hillridge Mall.
Which of the following terms correctly describes the law?
a. Pervasive.
b. Permissive
c. Prohibitory
d. All of the above.
The RUPA treats a partnership as a legal entity in which one of the following respects?
a. Liability of partners for partnership obligations.
b. For the purpose of suing or being sued.
c. For all purposes.
d. Assignment of a partner’s interest.
Harms or injuries that are tortious may be inflicted:
a. intentionally.
b. negligently.
c. without fault.
d. All of these are correct.
Tender requires that the seller, at a reasonable time:
a. put and hold conforming goods at the buyer’s disposition.
b. give notice to the buyer that the goods are available.
c. keep the goods available for a reasonable period of time.
d. All of the above.
The Fourth Amendment to the Constitution:
a. requires a speedy trial.
b. prevents double jeopardy.
c. prohibits unreasonable search and seizure.
d. All of the above.
Amy agrees to buy goods from Van for a contract price of $2,000 payable on delivery.
Amy repudiates the contract and refuses to pay anything. Van resells the goods in
compliance with the Code for $1,700, incurring $200 in sales commissions but saving
$250 in shipping costs. Van would recover from Amy:
a. the contract price of $2,000.
b. $500.
c. $300.
d. $250.
Under the Second Restatement, except in cases of death or incapacity, or where the
performance of an authorized act becomes impossible, actual notice of termination of
agency is required to the third party if she is one:
a. with whom the agent has dealt on credit.
b. to whom the agent has been specially accredited.
c. with whom the agent has begun to deal, as the principal should know.
d. All of the above.
Adverse possession, requires no:
a. contract.
b. deed.
c. formality.
d. All of the above.
What are a payor bank’s rights to subrogation upon an improper payment of an
instrument?
Under the UCC and the Bankruptcy Code, the bankruptcy trustee has priority over a
creditor with a security interest that was not perfected at the time the bankruptcy
petition was filed.
There is currently a law promoting the purchase, development, and use of industrially
polluted property.
A payor bank is required to dishonor an uncertified check that is more than six months
old.
Disparagement differs from defamation in that defamation pertains to personal
reputation, whereas disparagement pertains to business interests.