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1) when two or more business entities conspire to monopolize a relevant market,
section 2 of the sherman act may be violated.
2) delta corporations board of directors is considering a resolution that may cause
severe liability to the directors. wayne, a board member, disagrees with the decision.
unless he clearly registers his dissent, he may be liable.
3) a state homicide statute is an example of a substantive law, criminal law and public
law.
4) as a general rule, liability insurance policies furnish the insured with coverage for his
negligence and his intentional acts of a wrongful nature.
5) a surety has a right of exoneration.
6) mandatory dividend provisions enacted in corporate laws have generally been held
legal.
7) under the new article 3, a depositary bank cannot become a holder of a check that is
deposited by a customer without an indorsement.
8) a bicycle manufacturer sells 100 bikes to bill's bike shop. the contract says that bill's
may return any bike not sold within six months, and he will be reimbursed for them.
bill's bike shop burns down in one week after the delivery of the bikes, which are
destroyed in the fire. bill's bears the risk of loss for the 100 bikes.
9) to be within the scope of employment, the employees conduct must have been
completely motivated by the desire to serve his employer.
10) at a preliminary hearing in a felony case, the government must prove its case by the
beyond a reasonable doubt standard.
11) after dissolution of a corporation and liquidation of its assets, proceeds of the sale of
assets is distributed in the following order:
a.preferred shareholders, common shareholders, creditors.
b.creditors, preferred shareholders, common shareholders.
c.common shareholders, creditors, preferred shareholders.
d.preferred shareholders, creditors, common shareholders.
12) when is the revocation of an offer effective?
a.when received by the offeror
b.when received by the offeree
c.when sent by the offeree
d.when sent by the offeror
13) which of the following deeds uses phrases such asi grant, i bargain and sell or i
convey property?
a.grant deed
b.deed of general warranty
c.special warranty deed
d.quitclaim deed
14) which of the following is a true statement about easements?
a.it gives the right to make certain uses of anothers property.
b.they are more informal than licenses.
c.it pertains to personal rather than real property.
d.they cannot pass with the land.
15) a _____ is found when an arrangement is made not to establish an ongoing business
involving many transactions, but is limited to a single project.
a.corporation
b.limited liability company
c.partnership
d.joint venture
16) proof of aiding and abetting another persons securities violation is not sufficient
misconduct to overcome the privity requirement of securities act section 12(a)(2).
17) which of the following is most likely to violate section 2(a) of the robinson-patman
act?
a.refusing to sell except at a discriminatory price
b.price discrimination for sales to different purchasers made at the same time
c.discriminating between customers when quoting prices
d.price discrimination in consignment transactions
18) which of the following statements is true regarding an accommodation surety?
a.an accommodation surety must provide adequate collateral to the creditor.
b.an accommodation surety is usually a professional such as a bonding company, who is
paid for serving as a surety.
c.an accommodation surety receives relatively more protection from courts.
d.an accommodation surety is secondarily liable for the payment of the debt.
19) an agencys legislative rules are considered as binding in nature and carry the full
force and effect of law, provided:
a.they are in consonance with the administrative procedure act only.
b.they are in consonance with the constitution but not necessarily in consonance with
the enabling legislation.
c.they are in consonance with the enabling legislation, but not necessarily with the
constitution.
d.they are in consonance with the enabling legislation, the apa as well as the
constitution.
20) which of the following is often used by agreements that try to make gratuitous
promises look like true bargains?
a.nominal consideration
b.past consideration
c.composition agreement
d.requirements contract
21) _____ is the method by which the rights of the property owner are cut off so that the
lienholder can realize her security interest.
a.reimbursement
b.garnishment
c.foreclosure
d.subrogation
22) agnes, a waitress at a restaurant, suffers severe anxiety attacks when things get
really busy at her job. as a result, she is a very ineffective waitress when the restaurant
is crowded. for this reason, she is fired. maybe her employer could have assigned agnes
to shifts when the restaurant is not busy, but this would have irritated the other
waitresses, caused significant scheduling difficulties, and appreciably increased
expenses. if agnes sues the restaurant under the americans with disabilities act (ada), the
restaurants best argument would be:
a.that agness anxiety attacks are not a disability under the ada.
b.that the ada doesnt require employers to accommodate such disabilities.
c.that accommodating agnes would cause the restaurant undue hardship.
d.that the ability to handle stress is a bfoq for the job of being a waitress.
23) wonder widgets agrees to sell bill buyer 10,000 of its grade a widgets at a price of
$3.00 per widget. after wonder breaches the contract by failing to deliver, bill buys
substitute widgets at a price of $3.20 per widget. bill also incurs $200 in reasonable
expenses associated with the purchase. bill then sues wonder for $2,200. what, if
anything, can bill actually recover?
a.nothing.
b.$200.
c.$2,000.
d.$2,200.
24) the european union regulatory scheme is premised on what is known as the _____
principle that requires companies to demonstrate that a chemical is safe before it is
produced and distributed.
a.exclusion
b.precautionary
c.equivalence
d.uncertainty
25) which of the following is an example of a gift inter vivos?
a.tom is promised a watch by his uncle in case he dies during an operation.
b.eva receives a car as a birthday gift from her father.
c.casey inherits a huge mansion according to his late grandfathers will.
d.a charity home receives a huge grant from its dead benefactors trust.
26) besides imposing duties on consumer reporting agencies, the fair credit reporting
act (fcra) imposes duties on users of credit reports generated by such agencies.
27) ted failed to disaffirm a contract during his minority. the contract was automatically:
a.ratified.
b.rescinded.
c.set aside.
d.made voidable at the option of the minor.
28)
29) the _____ of corporate social responsibility holds that rather than merely striving to
maximize profits for its shareholders, a corporation should balance the interests of
shareholders against the interests of other corporate stakeholders, such as employees,
suppliers, customers, and the community.
a.deontological theory
b.kantian theory
c.stakeholder theory
d.utilitarian theory
30) fiona owed lutz $5,000. as the result of an unrelated transaction, lutz owed bing that
same amount. the three parties signed an agreement that fiona would pay bing instead
of lutz and lutz would be discharged from all liability. the agreement among the parties
is:
a.unenforceable for lack of consideration.
b.voidable at bings option.
c.an accord and satisfaction.
d.a novation.
31) discuss the rules of dissociation and dissolution for mining partnerships.
32) before he died, aaron created a charitable trust for the plantation of analytica beni
trees, nominating david as his trustee. some years later, planting analytica beni trees is
declared illegal by the state. what remedies does david have available to him?
33) wilma, who thought she had a terminal disease, signed over the title to her new
cadillac to her cousin, kenny, and told him that she wanted him to have the car after im
gone. kenny took the keys and began to use the car. a week later, wilma was told that
her diagnosis had been an error, and that she was not terminally ill. wilma wants her car
back. can she recover it from kenny? why or why not?
34) harmer company has filed a registration statement under the 1933 act for purposes
of issuing $5,000,000 of debentures. the registration statement has not been declared
effective. harmer wants to issue a press release concerning its plans to expand its
operations. it also wants to telephone several large investors and tell them why they
should buy the debentures. will these activities cause harmer to violate section 5 of the
securities act?
35) ned and bill complete an oral contract for the sale of land from ned to bill for
$100,000. bill pays ned the $100,000, and then begins to build his house on the land. at
this point, ned says that the deal is off and refuses to convey the deed to bill. in doing
so, ned relies on the statute of frauds. is this agreement enforceable by bill?
36) joe smith, a police patrolman, joins a new religious sect which renounces any real
or threatened use of force against another human being for any reason. thus, joe refuses
to employ or threaten any kind of physical force against anyone he encounters in his
patrolmans job. instead, he tries to reason with lawbreakers and to instruct them about
gods will. for this reason, the city police force reassigns joe from his patrolmans job to
an office job. joe sues for religious discrimination under title vii. can the department
successfully argue that it isnt discriminating against joes religion, just the way he does
his job? if not, what else can the department argue? how successful is this argument
likely to be?
