Harold makes an oral agreement to purchase Tina’s boat for $700. Under the UCC:
A. the contract is voidable.
B. the contract is barred by promissory estoppel.
C. the agreement is barred by the statute of frauds.
D. the contract can be enforced without a writing.
A statute of frauds essentially says that in some cases, the law will require more
evidence (a writing) that the parties had an agreement than the oral testimony of the
party claiming that a contract existed. The Uniform Commercial Code states that
contracts for the sale of goods costing $500 or more are not enforceable without a
writing or other specified evidence.
Answer:
Which of the following describes an action where liability of a seller is based on the
theory that the manufacturer failed to use reasonable care to avoid foreseeable injury to
the ultimate user or consumer?
A. Negligence
B. Strict liability
C. Breach of warranty
D. Magnuson-Moss Act
Answer:
It is seen that Court X hears cases that have been referred to it by trial courts. However,
it does not hear any witnesses nor does it review new facts about the case. Court X is
a/an:
A. municipal court.
B. inferior court.
C. appellate court.
D. justice of peace court.
Answer:
_____ is the organization responsible for certifying that an organization meets the
requirements of ISO 14001.
A. The National Safety Council
B. The National Institute of Standards and Technology
C. The American National Standards Institute
D. The American Society for Quality
Answer:
The obligation of the maker is owed:
A. to a person entitled to enforce the instrument.
B. only to holders of the instrument.
C. even to indorsers who have not paid the instrument pursuant to their indorser’s
liability.
D. only to a nonholder in possession of the instrument.
Answer:
A grease payment:
A. is one that is made by a company toward foreign governmental officials to secure
routine governmental action.
B. is one that is made by a company to the government for the purpose of obtaining
goods-and-services contracts.
C. is an offer to make a prohibited payment.
D. is any gift of value to government officials for the purpose of obtaining business.
Answer:
_____ is/are essential to a minor’s continued existence and general welfare.
A. Considerations
B. Emancipation
C. Forbearance
D. Necessaries
Answer:
Mack’s Bar sent Olive Outlet an order for 200 cases of olives, to be shipped “as soon as
possible.” The day Olive Outlet receives Mack’s order, it ships the olives. Later that day,
Mack phones the Outlet and tries to revoke his offer. Under these circumstances:
A. Mack cannot revoke, since a contract was created when Outlet shipped the olives.
B. Mack can revoke because the acceptance had not been received.
C. Mack can revoke based on principles of promissory estoppel.
D. Mark cannot revoke, since the olives will get spoilt if it is shipped back.
Answer:
Liability is imposed on an agent who has exceeded his authority on the basis of an:
A. implied warranty of authority.
B. actual warranty of authority.
C. inherent warranty of authority.
D. apparent warranty of authority.
Answer:
The word “Mitigate” denotes:
A. a legal scandal in the early 1970’s which established remedies for breaches made in
bad faith.
B. a legal term which means to reduce, avoid, or minimize.
C. a legal term which means to sue or take to trial.
D. a legal term which means to recover damages for injuries that could have been
avoided.
Answer:
A person may stop payment on a check:
A. as long as he/she is authorized to draw a check from the account in question.
B. as long as he/she is authorized to draw a check from the account in question and
he/she is the party who signed the check in question.
C. as long as he/she has sufficient funds to cover any liability an erroneous
stop-payment order would incur.
D. after a month of the deposit of the check.
Answer:
If there are cosureties and one of them has had to pay the principal’s debt, the cosurety
who paid the debt has a claim against the other cosureties because of:
A. the right of subrogation.
B. the right to contribution.
C. the right of strict foreclosure.
D. the right to reimbursement.
Answer:
Which of the following is an element of fraud?
A. Opinion
B. Undue influence
C. Duress
D. Scienter
Answer:
Which of the following holds TRUE of revocation of acceptance by the buyer?
A. He/she can revoke acceptance when the nonconformity substantially impairs the
value of the goods.
B. He/she cannot revoke if the buyer accepted the goods because of assurances by the
seller.
C. He/she can revoke acceptance even after accepting goods with the knowledge of the
nonconformity.
D. He/she after revoking acceptance will not have the same rights and duties with
regard to goods involved as they had rejected them.
Answer:
A negotiable instrument:
A. must be payable to a specific person.
B. must be payable “to cash.”
C. must be payable “to order” or “to bearer.”
D. must be payable on fulfillment of a conditional promise.
Answer:
According to attorney-client privilege:
A. the privilege does not apply until the attorney is actually retained by a client.
B. an attorney is allowed to divulge confidential information communicated to the
lawyer by a client in the course of seeking legal advice.
C. a client must feel free to speak fully and honestly with his attorney if the judicial
system is to function effectively.
D. the privilege covers statements made in the presence of people other than the
attorney or the attorney’s subordinates.
Answer:
Under the UCC, which of the following remedies is available to both a buyer and a
seller?
A. Cover and damages for the total value of goods in the contract.
B. Contract rescission.
C. Damages in the amount of the difference between the contract price and the market
price of goods.
D. Specific performance.
Answer:
Under the Fair Credit Reporting Act, a consumer who has been denied credit:
A. cannot compel the credit reporting agency to delete any inaccurate or obsolete
information from the file.
B. is entitled to disclosure of the name and address of the credit reporting agency that
made the report.
C. can file compel the credit reporting agency to delete disputed information without an
investigation.
D. is not entitled to a reinvestigation of the disputed information in the report made by
the credit reporting agency.
Answer:
The bylaws of a corporation:
A. usually set up procedures for the holding of shares.
B. do not involve financial matters such as declaring and paying dividends.
C. establish rules for the conduct of internal affairs.
D. need not be consistent with state laws or the articles of incorporation.
Answer:
The creation of an express warranty depends on:
A. the seller’s intent.
B. the seller’s statement becoming part of the bargain.
C. the mere recommendation of the goods by the seller.
D. the seller’s confining their statements to ‘sales talk.”
Answer:
If a person carelessly runs a car into yours, the person has committed:
A. civil tort of negligence.
B. substantive tort of negligence.
C. criminal tort of negligence.
D. procedural tort of negligence.
Answer:
Jodie’s brother is a director at Trip Corporation. He calls her and says that Trip’s
earnings, as yet unannounced, will be up 75 percent and that Jodie should buy Trip
common stock. Under these circumstances, Jodie:
A. can trade because she obtained public information from an insider.
B. cannot trade because she is not an insider.
C. can trade because the information will eventually be made public.
D. cannot trade because she is the relative of an insider.
Answer:
If Jamie indorses an instrument in blank and gives it to Clare Hill:
A. Clare must indorse it before it can be negotiated further.
B. Clare may negotiate it without indorsing it.
C. Clare cannot convert the blank indorsement to a special one.
D. Clare is not liable even if she indorses it as it was given to her by Jamie.
Answer:
A procedural device that is designed to narrow issues to be proved at trial or to facilitate
a settlement is the:
A. alternative dispute resolution.
B. mediation agreement.
C. judgment notwithstanding the verdict.
D. pretrial conference.
Answer: