General contract law states that contracts that have to be in writing must:
a. specify the parties to the contract.
b. specify the subject matter and essential terms.
c. be signed by the party to be charged or by his/her agent.
d. All of the above.
The SEC established a computer system that performs automated collection, validation,
indexing, acceptance, and dissemination of reports required to be filed with the SEC. It
is known as:
a. ELMER.
b. EDGAR.
c. electronic delivery.
d. SEC-ELS.
Which article of the UCC deals with “negotiable instruments”?
a. Article 1.
b. Article 2.
c. Article 3.
d. Article 9.
Ben challenged his state transportation department’s affirmative action plan as
constituting illegal reverse discrimination. The plan will be:
a. subject to strict scrutiny under the Equal Protection Clause of the Fourteenth
Amendment.
b. subject to a rational basis test to determine its constitutionality.
c. examined to see if the classification is justified by a compelling governmental
interest and uses the least intrusive means available.
d. Both (a) and (c).
Curtis, a trustee, fraudulently purchases property with trust funds and puts title in his
own name. What type of trust is created?
a. Constructive trust.
b. Implied trust.
c. Express trust.
d. Resulting trust.
Francenie was digging a trench to install a drainage pipe along her property line and in
the process, she had to tunnel under a small area on her neighbor’s property. The entry
onto the neighbor’s property:
a. cannot be a trespass because it was beneath the surface of the land.
b. is not a trespass unless there was some actual damage to the neighbor’s land.
c. is a trespass.
d. is not a trespass if Francenie was under the reasonable belief that she owned all of the
land on which she was digging.
Under Truth-in-Lending Act, the cost of consumer credit must be expressed in an:
a. appreciated payment rate.
b. annual percentage rate.
c. appraisal payment ratio.
d. allocated procedures remedy.
In which of the following circumstances would the buyer or seller be permitted to treat
the contract as breached and cancel?
a. Seller delivered conforming goods, but from another manufacturer because he ran out
of the brand ordered.
b. Seller delivered the goods to a truck line when railroad delivery had been specified,
but the rail line was not running on a suitable schedule.
c. Seller delivered a box of badly overripe pears that were part of an order for 12 “fruits
of the month,” one to be delivered during the first week of each month for a year.
d. Seller failed to deliver Volume 3 of a set of three books after repeated requests by the
buyer.
When is an agency relationship irrevocable?
a. It is never irrevocable.
b. When the agency is coupled with an interest of the agent in the subject matter.
c. When the principal violates his duties to the agent.
d. When the agent is a fiduciary.
Discuss whether the principal is liable in each of the following situations.
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. One day, Andrew is driving
his own automobile to a meeting with Edward to discuss the purchase of the land that
he owns. Andrew drives too fast for conditions and has a minor traffic accident that
results in $600 damage to the other vehicle.
b. Mel owns a retail store. He hires Sarah to work for him as a clerk in the home
furnishings department. Mel instructs Sarah to make certain representations to
customers regarding a microwave oven, which Sarah sells. Mel knows these
misrepresentations are false, but Sarah does not. Henrietta buys a microwave in reliance
on the misrepresentations.
c. ABC Inc. hires Keith as an outside salesman and instructs him to call on customers in
a specified territory and to solicit orders for its products. One day Keith is driving the
company car a little too fast for conditions on his way to call on a client. He
accidentally drives the wrong way on a one-way street and has an accident with another
vehicle that results in $6,000 in property damage and $30,000 in medical expenses.
d. The A & B Machine Company (ABMC) hires John as an outside salesman for its
computers. It sets high sales quotas for him and instructs him to beat up salesmen from
competing firms in order to keep them away from ABMC customers. In order to meet
his monthly sales quota, John roughs up Ralph, who is a salesman for a competing firm
and then tells Ralph to find his own customers and to stay away from John’s territory.
Under the UPA, a partner’s ownership interest in any specific item of partnership
property is that of a:
a. joint tenant.
b. tenant in common.
c. tenant in partnership.
d. tenant by the entireties.
State trial courts of general jurisdiction:
a. may be called county, district, common pleas, or superior courts.
b. have a dollar limitation on their jurisdiction in civil cases.
c. cannot hear criminal cases.
d. maintain no formal records of their proceedings.
What standard does a court use in reviewing the factual determinations of an
administrative agency?
a. Whether the agency had a rational basis for reaching its decision.
b. Whether the conclusions reached are supported by substantial evidence.
c. Whether the conclusions were unwarranted by the facts.
d. Any one of the above, depending on the particular situation.
The Uniform Commercial Code provides that a court may scrutinize every contract for
the sale of goods to determine whether, in its commercial setting, purpose, and effect,
the contract is:
a. exculpatory.
b. unconscionable.
c. usurious.
d. None of the above.
Adam wants to buy a six-passenger car. The salesman tells him that the two-seat sports
car Adam sees on the car lot would be just perfect for six people. Adam test drives the
car and then buys it. In this case:
a. Adam has a valid cause of action for fraud.
b. Adam was not justified in relying upon the salesman’s representation that the car
would seat six people.
c. the element of scienter is missing.
d. the salesman is in a confidential relationship with Adam.
The doctrine of stare decisis means that:
a. the common law has not been able to evolve in a stable and predictable manner.
b. decisions can be overruled.
c. courts adhere to and rely on rules of law that they or superior courts relied on in
similar decisions.
d. courts are not allowed to correct erroneous decisions or to choose among conflicting
precedents.
Constructive eviction would result in a discharge of any obligation to pay rent if:
a. proper notice is given to the landlord.
b. the tenant abandons possession within a reasonable time.
c. the tenant fixes the problem.
d. the tenant serves the landlord with a court order.
A promise or order is payable at a definite time if it is payable at a:
a. time readily ascertainable at the time the promise or order is issued.
b. fixed date or dates.
c. definite period of time after sight or acceptance.
d. All of the above.
Which of the following is an objective of the European Union?
a. To create cultural diversity among the member nations to increase tourism.
b. To develop individual national autonomy on justice and home affairs.
c. To promote economic and social progress by creating an area without internal borders
and by establishing an economic and monetary union.
d. None of the above.
What right does a share confer on its owner in regard to an interest in the corporation?
a. Right to participate in control.
b. Right to participate in earnings of the corporation.
c. Right to participate in residual assets of the corporation upon dissolution.
d. All of the above.
A quasi contract is another name for an oral contract.
Statutes of repose were enacted to give consumers more rights against large
manufacturers.
Under the Statutory Close Corporation Supplement to the MBCA, a close corporation
must have bylaws on file with the Office of the Secretary of State or some other public
office.
Written consent of all partners is required for the addition of a general partner only if
the partnership agreement fails to deal with this issue.
Congress enacted the Administrative Procedure Act in 1946.
Under Article 9 of the UCC, “value” may include past consideration such as an
antecedent debt.
On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same
day John changes his mind and sends a letter of acceptance to Arlene. The letter of
acceptance will be effective only if it is received by Arlene before she receives the
rejection.
What is stare decisis? Discuss its role in the American legal system.
In an assignment for the benefit of creditors, if each creditor is paid a pro rata share of
his original obligation, the debtor is then discharged from any further obligation to the
creditor.
A trust is a fiduciary relationship in which the settlor holds legal title to certain property
while its use and benefit belong to a trustee.