The Consumer Product Safety Commission’s authority is applicable to ___.
A. firearms
B. drugs
C. cosmetics
D. lawn mowers
Answer:
A bankrupt debtor:
A. can elect to use the set of exemptions provided by either the state or federal
bankruptcy law.
B. can elect to keep some items exempted under the state law and other items under the
federal law.
C. cannot elect which set of exemptions will be allowed; the creditors’ committee or
trustee makes that decision.
D. can elect the exemptions of the place where she/he was domiciled for 100 days
before filing of the petition.
Answer:
Which of the following reasons is applicable for voiding a contract based on illegality?
A. It requires the commission of a misdemeanor.
B. It is in violation of the Code alone; not the common law.
C. It is contrary to public policy.
D. It protects the interests created by the contract to a reasonable measure.
Answer:
These result from a breach of contract and may also be limited or excluded by an
agreement.
A. Liquidated damages
B. Registration default
C. Consequential damages
D. Remedy
Answer:
If a bank pays a check after it is given a stop-payment order:
A. it acquires all the rights of its customer against the person to whom it originally
made payment.
B. it acquires no rights of the person to whom it made payment.
C. it acquires partial rights of its customer against the person to whom it originally
made payment.
D. the customer to whom payment was made retains all the rights.
Answer:
In which of the following situation a party’s duty to perform cannot be discharged?
A. The nonoccurrence of a condition subsequent
B. The nonoccurrence of a condition precedent
C. Anticipatory breach
D. Material breach
Answer:
When parties fail to expressly agree on the terms of a sales contract:
A. the contract is automatically void.
B. the contract will fail if the court finds that the parties are acting as though they have
a contract and it is impossible to point to a particular moment in time when the contract
was created.
C. the contract will not be enforceable under the UCC.
D. the contract will not fail if the court finds that the parties intended to make a contract
and that their agreement is complete enough to allow the court to reach a fair settlement
of their dispute.
Answer:
“Status quo ante” means:
A. that minors can lose the right to disaffirm if they fraudulently misrepresent their age.
B. “the condition beforehand,” or the position one would be in if a given contract had
never come into existence.
C. “the state sets the ante,” or that the basic risks of entering into contracts are not
protected by the state.
D. that a minor is totally protected by law on all counts of misbehavior.
Answer:
Tom Tune purchased a new radio that was warranted to be free from manufacturing
defects or defects in workmanship for a period of six years. Five years after Tom
purchased the radio, he was burned when the radio spontaneously caught fire as a result
of a manufacturing defect. Under these circumstances, which of the following
statements is most correct?
A. Tom is entitled to recover the difference between the price of the defective radio and
its value as warranted, but Tom cannot recover damages for personal injuries unless the
contract expressly provided for such recovery.
B. Tom is entitled to recover damages for personal injury as consequential damages but
he cannot recover damages for the loss in value of the radio.
C. Tom can recover damages for loss in value of the radio and can recover damages for
personal injury as consequential damages for breach of warranty.
D. Tom cannot recover damages from the manufacturer under these facts because his
action is barred by the U.C.C. statute of limitations.
Answer:
The U.S. Supreme Court has ruled that fraud claims under Section 10(b) and Rule
10b-5 must be brought:
A. within one year after discovery of the facts constituting the violation and not more
than three years after the violation has occurred.
B. within three years after discovery of the facts constituting the violation and not more
than five years after the violation has occurred.
C. within five years after discovery of the facts constituting the violation and not more
than ten years after the violation has occurred.
D. within two years after discovery of the facts constituting the violation and not more
than ten years after the violation has occurred.
Answer:
Licensing arrangements are:
A. per se violations of U.S. anti-trust laws.
B. subject to the rule of reason.
C. subject to strict scrutiny analysis.
D. unlikely to raise antitrust issues.
Answer:
Bob purchased a new washing machine from a local department store. He paid for the
washing machine by check. Two days later, Bob discovered that the washing machine
did not work. Bob telephoned the bank and issued an oral stop-payment order on the
check. Which of the following will be TRUE for an oral stop-payment order?
A. An oral stop-payment is not valid for more than 24 hours.
B. An oral stop-payment is valid for only 14 days unless Bob confirms it in writing
during that time.
C. An oral stop-payment is not valid for more than 48 hours.
D. An oral stop-payment order is valid for 6 months and can be extended for another 6
months by giving the bank instructions to continue.
Answer:
Which of the following statements about debt securities is TRUE?
A. They transfer an ownership interest in the corporation.
B. They do not arise in the form of a debenture.
C. They arise in the form of notes, debentures, or bonds.
D. They are generally in the form of stocks and not loans.
Answer:
When notice of a special meeting is defective, the defect may be cured if:
A. one non-attending director specifies another person to vote on matters in his/her
place.
B. all of the directors attend the meeting.
C. the attending directors take action on all matters at hand.
D. some of the directors attend the meeting.
Answer:
On April 1, 2008, Joe received a telegram from Adam offering to build Joe a resort
cottage for $100,000. On April 5, 2008, at 10:00 AM, Adam sends Joe a telegram
attempting to revoke the offer. At 11:00 AM on the same day, Joe sends Adam an e-mail
attempting to accept the offer. At 11:30 AM, Joe receives Adam’s revocation. Assume
Adam’s offer was silent on the question of what means Joe could use to accept. Which
of the following is TRUE when the offeror impliedly authorizes acceptance by any
reasonable means?
A. the parties would not have a contract because the impliedly authorized means of
communication was a telegram.
B. the parties may have a contract if the court concludes that mail was a reasonable way
for Joe to accept Adam’s offer.
C. the parties would not have a contract because Joe did not use the means impliedly
authorized by trade usage.
D. the parties may have a contract if Adam reads the acceptance e-mail before the
revocation reaches Joe.
Answer:
A check on which a bank is both the drawer and the drawee is a:
A. cashier’s check.
B. stale check.
C. certified check.
D. personal check.
A cashier’s check differs from a certified check. A check on which a bank is both the
drawer and the drawee is a cashier’s check. The bank is primarily liable on a cashier’s
check. A teller’s check is similar to a cashier’s check in that it is a check on which one
bank is the drawer and another bank is the drawee.
Answer:
Written contracts that call for performance over a considerable period of time and thus
increase the risk of faulty or willfully inaccurate recollection of their terms in
subsequent disputes are called:
A. long-term bilateral contracts.
B. collateral contracts.
C. guaranty contracts.
D. international contracts between companies in signatory countries.
Answer:
The National Environmental Policy Act:
A. does not provide citizens the authority to go to court to force compliance with
NEPA.
B. commissions a federal agency to assess the environmental impact of a project after
the project is undertaken.
C. requires that an environmental impact statement be prepared for most of the
recommendations or reports on legislation.
D. requires an environmental impact statement for every major federal action
significantly affecting the quality of the environment.
Answer:
A person who transfers a negotiable instrument to someone else and for consideration
warrants:
A. that all signatures on the instrument are authentic.
B. that some signatures on the instrument are authorized.
C. that the beneficiary cannot recover any amount from the warrantor if the warranty
has been breached.
D. that the warrantor is aware of insolvency proceedings commenced with respect to
the maker.
Answer:
Adele and Roy established a trailer park and restaurant on their property to supplement
their income. Acme Oil operated a refinery 1,000 feet from Adele and Roy’s property.
The refinery regularly emits nauseating gases and odors in large quantities, which
invade neighboring property and make people sick. Acme disregarded Adele and Roy’s
pleas to abate emitting the noxious odors. What can Adele and Roy do?
A. Adele and Roy can bring an action for private nuisance for damages and to enjoin
Acme from emitting the odors.
B. Adele and Roy cannot sue for public nuisance because private parties can never sue
for abatement of public nuisance.
C. Adele and Roy do not have a cause of action.
D. Adele and Roy can sue for public nuisance as Acme is committing an illegal act.
Answer: