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__________ is a provision excusing one party from liability.
a. Procedural unconscionability
b. An exculpatory clause
c. Substantive unconscionability
d. Tortious conduct
Which of the following is correct regarding a foreign corporation?
a. A foreign corporation is incorporated in a foreign country.
b. Failure to obtain a certificate of authority to transact business in the state impairs the
validity of a contract entered into by the corporation.
c. A foreign corporation transacting business within a particular state without having
first qualified cannot use the state court to maintain a lawsuit until the corporation
obtains a certificate of authority.
d. All of these are correct.
A defense available to the employer in an action for workers' compensation is that:
a. the employee assumed the risk.
b. the employee's injury happened before he came to work.
c. the employee was contributorily negligent.
d. a co-worker caused the injury.
Dr. David Doright is a professor at Towers State University. One day he has an
argument with the president of the University over which team should win the next
Super Bowl. The next day, Dr. Doright is fired for incompetence. He sues, claiming the
firing is arbitrary and that he was denied an opportunity to respond to the charges.
a. This is not a criminal case, so Dr. Doright has no right to a hearing.
b. Dr. Doright appears to have been denied the equal protection of the law.
c. The firing by a state university is state action involving a property right that would
entitle Dr. Doright to a hearing and an opportunity to respond to the allegations against
him.
d. The U.S. Constitution does not apply to this case.
Before granting an injunction enjoining a former employee from competing in a
described territory, the courts insist that the employer demonstrate that the restriction is
__________ to protect the employer's legitimate interest.
a. exculpatory
b. unconscionable
c. necessary
d. usurious
Which of the following would always be considered to be contrary to public policy?
a. A contract which contains a covenant not to compete.
b. A contract offered on a take-it-or-leave-it basis.
c. An agreement to pay someone to make false statements about a competitor's product.
d. An agreement which contains an exculpatory clause.
Which of the following contracts is covered by Article 2 of the Uniform Commercial
Code?
a. The sale of a house.
b. The sale of a new car.
c. An employment agreement.
d. A sale of automobile insurance.
After the employee has demonstrated that the employer pays unequal wages for equal
work to members of the opposite sex, the burden shifts to the employer to prove that the
pay differential is based on:
a. a seniority system.
b. any factor except gender.
c. a system that measures earnings by quantity or quality of production.
d. All of the above.
Congress has enacted disclosure statutes to enhance public and political oversight of
agency activities. These statutes include:
a. Freedom of Information Act.
b. Government in the Sunshine Act.
c. All of these are correct.
d. None of these are correct.
Mary, age 17, sold Mark, age 22, the briefcase she got for graduation. Mark's father
liked it and bought it from him. If Mary decides to disaffirm the contract, will Mark's
father have to return the briefcase to her?
a. Yes, the briefcase is not a necessary.
b. Yes, if Mark's father still has it.
c. No, her contract was with Mark and he cannot return goods he does not have.
d. No, if Mark's father bought it without knowing that Mary was a minor.
The consolidation of AB Corporation and ZX Corporation requires the affirmative
majority vote of:
a. the boards of directors and shareholders of both corporations.
b. the boards of directors of both corporations, but not the shareholders.
c. the shareholders of both corporations, but not the boards of directors.
d. the directors and shareholders of one of the corporations, but not both corporations.
Justifiable reliance:
a. is misrepresentation made without due care.
b. requires that the misrepresentation contribute substantially to the misled party's
decision to enter into the contract.
c. involves a misrepresentation made without knowledge of its falsity but with due care.
d. All of the above.
Which of the following will often NOT constitute valid consideration?
a. Forbearance to do an act.
b. Performance of services.
c. A promise to perform.
d. An illusory promise.
The president of Hi-Glow Cosmetics sends his top chemist to Hi-Glow's competitor's
labs to steal its formula for shiny lipstick. The chemist gets caught and is sent to jail.
Can Hi-Glow be found to be criminally liable?
a. Yes, under the doctrine of ultra vires.
b. Yes, since the president authorized the crime.
c. No, because a corporation cannot go to jail.
d. Both (a) and (b).
In normal times, the economic community is best served by:
a. free competition in trade and industry.
b. the elimination of competition.
c. contracts and combinations that restrain trade.
d. conscious parallelism to stabilize prices.
Absent an agreement otherwise, upon dissolution under the UPA a partner is entitled to
which of the following after payment of partnership creditors?
a. A share of profits in proportion to his capital contribution.
b. Shares of profits dependent upon the capital and time he contributed to the
partnership.
c. Repayment of his loans to the partnership, capital contribution, and a share of the
profits.
d. The UPA requires that the partners have an agreement or else they must seek a court
order distributing the remaining assets.
Social Security benefits are funded by:
a. legally required assessments on employers.
b. taxes paid by both employers and employees or by self-employed persons.
c. the federal tax on corporations.
d. a combination of federal and state taxes.
What statutory powers does a corporation normally possess?
Explain the difference between lost, mislaid, and abandoned property and who has
rights to it.
If a person paying an instrument subject to the impostor rule fails to exercise ordinary
care, the issuer may recover from the payor to the extent the payor's negligence
contributed to the loss.
Explain the process of jury selection and the differences in challenges for cause and
peremptory challenges. In addition, discuss the implications of race-based exclusions
from a jury by a state prosecutor and by a private defense attorney.
A monopolistic market will produce fewer goods than a competitive market would, but
price would not ordinarily be affected.
A person who represents himself to third persons as being a partner when in fact he is
not, may have the liability of a partner.
A beneficiary may sell his interest in trust assets before he is entitled to receive the
corpus unless otherwise provided in the trust instrument.
When reviewing factual determinations, the court uses one of three different standards:
arbitrary and capricious, substantial evidence, or unwarranted by the facts.
If it is unclear whether the parties formed a unilateral or bilateral contract, the courts
presume the parties intended a unilateral contract.
