A promisor who renders performance to the assignor without notice of the assignment:
A. is still liable under the contract.
B. has no further liability under the contract.
C. creates a novation.
D. cannot be sued for nonperformance.
Answer:
Carl is a doting father who wants to reward his son, Matt for graduating from college.
Carl contracts with a local auto dealer to provide Matt with a new BMW. Under the
contract, Carl promises to pay the dealer in exchange for the dealer’s promise to deliver
the car to Matt. The dealer then backs out of the deal and Matt wants to sue him. In this
case:
A. Matt is a creditor beneficiary of the contract and can enforce it against the dealer.
B. Matt is a donee beneficiary of the contract and can enforce it against the dealer.
C. Matt is an incidental beneficiary of the contract and cannot enforce it against the
dealer.
D. Matt cannot enforce the contract against the dealer because Carl’s promise was
gratuitous and therefore unenforceable.
Answer:
The Computer Fraud and Abuse Act:
A. includes only criminal penalties.
B. prohibits interference with computers used by the government or financial
institutions.
C. prohibits an authorized person from unknowingly transmitting a code to a computer
used in interstate commerce.
D. enables providers to disclose the contents of electronic communication to
intelligence officials.
Answer:
When a contract is partly printed and partly written:
A. the written terms control the printed terms.
B. ambiguities are resolved in favor of the party who drafted the contract.
C. the printed terms control the written terms.
D. the meanings of printed words are controlled by trade usage.
Answer:
If the amount of a debt is “due and certain”:
A. a promise to pay less than the amount lacks consideration.
B. the debt is considered to be an unliquidated debt.
C. there is a dispute about the existence of the debt.
D. a promise to pay more than the amount lacks consideration.
Answer:
Ricardo borrowed $1,000 from his friend, John Wilfred. Ricardo signed a handwritten
note stating, “I promise to pay $1,000 to John Wilfred on or before August 1, 2001.”
Under these circumstances:
A. the note is negotiable because it was handwritten.
B. the note is not negotiable because it does not acknowledge the reason for the debt.
C. the note is not negotiable because it is not payable to order or to bearer.
D. the note is negotiable because it is a simple contract.
Answer:
The tort of false imprisonment protects:
A. the right to life.
B. only the freedom of movement.
C. mental and physical interests.
D. only the freedom from knowledge of confinement.
Answer:
If a business involves high risk, a single factor such as _____ will be so important as to
outweigh other factors.
A. limited liability
B. taxation
C. formalities
D. financing
Answer:
Under the parol evidence rule, parties cannot vary the terms of:
A. a written contract by introducing evidence of terms allegedly agreed on prior to, or
contemporaneous with the writing.
B. an oral contract by introducing evidence of a written agreement.
C. a written contract by introducing evidence of another writing produced after the
original contract was drafted.
D. an oral agreement by publishing notice of a subsequent modification.
Answer:
What is the term used to describe the termination of a parent’s right to receive services
and wages from a child and to generally control him?
A. Emancipation
B. Disaffirmation
C. Ratification
D. Incapacity
Answer:
The Consumer Leasing Act:
A. requires the creditor to disclose the aggregate costs of leasing consumer goods.
B. does not require the lease agreement to define the consumer’s liability.
C. applies to leases of consumer goods only if the leases are for more than five years.
D. applies to leases of consumer goods if the total contractual obligation exceeds
$25,000.
Answer:
Which of the following is a test of merchantability for all sales contracts?
A. The goods conform to any promises or statements of fact made on the container or
label.
B. The goods are of different kind, quality, and quantity within each unit.
C. The goods need not necessarily be packaged or labeled adequately.
D. The goods conforming to the general description of the goods available in the
market.
Answer:
Local legislation regulating zoning and noise levels are examples of:
A. ordinances.
B. treaties.
C. administrative rules.
D. administrative decisions.
Answer:
A director who has acted in bad faith or who is found liable to the corporation:
A. is still covered by mandatory indemnification.
B. may only be indemnified if the shareholders find it to be appropriate.
C. may only be indemnified upon the approval of an independent legal counsel.
D. cannot be indemnified under any circumstances.
Answer:
Winslow Manufacturing sought a loan from National Lending Corporation. In
connection with the loan application, National required that Winslow submit certain
audited financial statements. Winslow had an audit performed by an independent CPA,
who submitted his report to Winslow under the presumption that his report was to be
used solely for the purpose of negotiating a loan from National. After National rejected
Winslow’s loan application, Winslow submitted the CPA’s report to other lenders in
connection with its loan applications with them. It was subsequently learned that the
CPA, despite the exercise of reasonable care, had failed to discover a sophisticated
embezzlement scheme by Winslow’s chief accountant. Under these circumstances, the
CPA is:
A. liable to any creditor who extended a loan to Winslow.
B. liable to Winslow to return the audit fee because credit was not extended by
National.
C. liable to Winslow for any losses Winslow suffered as a result of the CPA’s failure to
discover the embezzlement.
D. not liable to any of the parties.
Answer:
Which of the following instruments is negotiable?
A. A note which states, “I promise to pay to the order of Karl Adams $1,000 if he
replaces the roof on my garage.”
B. An instrument which provides, “Payment is subject to the terms of a mortgage dated
November 20, 2009.”
C. A note which contains the statement, “This note is secured by a mortgage dated
August 30, 2009.”
D. An instrument which reads, “I promise to pay to the order of MyHome Appliance
Co. $550 sixty days after the delivery of my new refrigerator.”
Answer:
A petition for Chapter 13 proceedings:
A. can be initiated by the voluntary petition of a debtor.
B. can be initiated by the involuntary petition of creditors.
C. can be initiated by the trustee.
D. can be initiated by the secured creditors.
Answer: