A fraudulent misrepresentation:
a. must be material to obtain rescission.
b. must be material to recover damages.
c. may be innocent, meaning the representation was made without knowledge of its
falsity but with due care.
d. need not have the element of scienter.
The ICJ is:
a. the Internal Court of Jurisdiction of the U.N. to deal with disputes within the United
Nations organization.
b. a U.S. court created specifically to deal with international contracts.
c. the judiciary branch of the United Nations, which has advisory jurisdiction if
requested by a U.N. organ or specialized U.N. agency.
d. one of the many regional trade communities.
Strict liability in tort imposes liability on:
a. a manufacturer of a component used within a larger product, the manufacturer of
which modifies the component for use in its finished product.
b. a manufacturer of a defective component used in a larger product if the manufacturer
of the finished product made no essential change in the component.
c. a merchant or nonmerchant seller of a defective product which is unreasonably
dangerous to the user or consumer.
d. All of the above.
With respect to the tort of conversion, which of the following statements is true?
a. Conversion is an intentional exercise of dominion over another’s real property that so
seriously interferes with the right of control as to justly require the payment of
damages.
b. All conversions are nuisances.
c. All trespasses are conversions.
d. None of the above.
a. What is a bulk transfer?
b. What is the purpose of bulk sales law?
c. What is the effect of a failure to comply with the provisions in Article 6 in those
states that still follow this Article?
Transfer of title to personal property can occur by which of the following ways?
a. By sale.
b. By gift.
c. By accession.
d. All of the above.
Under the CISG:
a. loss of, but not damage to, the goods after the risk of loss has passed to the buyer
discharges the buyer from the obligation to pay the purchase price.
b. if the sales contract involves the carriage of the goods and the seller is not obligated
to hand them over at a particular destination, risk of loss passes to the buyer when the
goods are handed over to the first carrier.
c. if the sales contract does not involve carriage of the goods, the risk of loss passes to
the buyer when the goods are tendered to him.
d. All of these are correct.
The __________ established the MIGA to encourage increased investment in
developing nations.
a. World Bank
b. Regional Trade Communities
c. United Nations
d. NAFTA
Austin withdraws from a partnership and the remaining three partners decide to
continue in business. Discuss the effect of the withdrawal on the partnership and on
creditors rights under the UPA.
Under the Supremacy Clause of the U.S. Constitution:
a. the executive branch of government is the most powerful branch.
b. federal law preempts state law, but only if it clearly conflicts.
c. federal law preempts state law, not only in cases where they conflict, but also if a
Congressional intent to preempt state legislation can be inferred.
d. the states and the people have the supreme power of governance.
Which of the following are basic objectives of the 1933 Securities Act?
a. To provide investors with material information concerning securities offered for sale
to the public.
b. To prohibit misrepresentation, deceit, and other fraudulent acts and unfair practices in
the sale of securities generally, whether or not they are required to be registered.
c. All of these are correct.
d. None of these are correct.
At the __________, the accused is informed of the charge against him and enters his
plea.
a. preliminary hearing
b. arraignment
c. indictment
d. information
Which of the following statements best describes charitable subscription promises?
a. They are generally not enforceable.
b. They are equated with gifts.
c. They are generally enforceable if there is reliance or a probability of reliance by the
charity.
d. Courts generally find that it would be unjust to enforce them because persons who
promise charitable subscriptions do not expect to be held accountable for them.
Edith files a Chapter 7 petition in bankruptcy. She owns the following property: (1) an
automobile valued at $1,000; (2) a homestead valued at $75,000, on which First Bank
holds a mortgage of $60,000; (3) personal jewelry valued at $1,100; and (4) monthly
disability payments of $1,000. Assuming Edith elects to use the exemptions listed in the
Bankruptcy Code, what property may Edith keep?
a. The disability payments only.
b. The disability payments and the homestead only.
c. The disability payments plus the automobile, the homestead, and the jewelry.
d. Nothing. She must sell all of her assets and have the proceeds distributed to the
creditors, and she must turn the disability payments over to the trustee.
Intent as used in the law of intentional torts requires the defendant to:
a. have knowledge or reckless disregard of the negligence of her action.
b. desire to cause the consequences of her action.
c. believe the consequences are substantially certain to result from her action.
d. Both (b) and (c).
A(n) __________ is a person in a position of trust and confidence who has a duty of
utmost loyalty and good faith.
a. fiduciary
b. servant
c. independent contractor
d. principal
A judicial lien against a partner’s transferable interest in a partnership is known as:
a. a legal aggregate.
b. a delegation of assets.
c. a charging order.
d. an assignment.
In the First State Bank of Sinai v. Hyland case, the Supreme Court of South Dakota
held:
a. Mervin’s obligation on a promissory note was void due to his alcohol-related
incapacity.
b. Mervin ratified his voidable contract by conduct, making it a fully valid legal
obligation.
c. the alcohol intoxication of a party to a contract does not affect the contract’s
enforceability.
d. Mervin could only use express language to ratify a contract formed while he was
incapacitated by alcohol use.
A field warehouse, under Article 9 of the UCC, is:
a. one kind of a pledge.
b. a common arrangement for financing inventory.
c. an agreement that allows the debtor access to the pledged goods and simultaneously
gives the secured party control over the pledged property.
d. All of the above.
Rulemaking powers of federal agencies are primarily governed by the:
a. SEC.
b. APA.
c. FCC.
d. NHTSA.
Mark threw a bomb into the office of his insurance agent, intending to kill the agent
because the company had disallowed his claim. The agent wasn’t in the building, but the
bomb seriously injured his secretary, who was working in the office. Mark:
a. cannot be liable to the secretary for any torts because he did not intend to hurt her.
b. can be sued by the secretary for her injuries based on an intentional tort cause of
action because Mark’s intent to harm the agent is transferred to the secretary.
c. has committed a crime, but he is not liable for any torts.
d. has committed the tort of intrusion.
Which of the following occurs when the seller of a product, service, or intangible
conditions its sale on the buyer’s purchasing a second product, service, or intangible
from the seller?
a. Boycott.
b. Tying agreement.
c. Monopoly.
d. Price fixing.
If, after performing an environmental assessment, a federal agency concludes that an
EIS is not required, the agency must engage in ‘scoping.’
Warranty liability is based on signature; thus, it may not be imposed on nonsigners.
Discuss how parties show mutual assent and what standard is used to determine
agreement.
Revocation and rejection give the buyer the same rights and duties with respect to the
goods.
Acceptance of goods, which disallows any later rejection of them, is accomplished only
through express words.
The law requires that to form a valid contract the agreement must be voluntary and
knowing.
Hank’s tractor is collateral for a loan and Hank moves to the next county. In most states,
the security instrument must be re-filed in the proper county or it will render the
security interest ineffective.
One type of restraint of trade is a covenant not to compete.
Harold, a minor, decided to trade his 1985 truck on a new car at the local dealership.
One week after driving the new car, Harold decides that he cannot afford the payments.
Harold now wishes to disaffirm his purchase and get his old truck back. The dealer
informs Harold that the truck has been sold. Can Harold get the old truck back and
disaffirm his contract with the dealer? Explain.
The most frequently used documents of title are the warehouse receipts issued by
warehousers and the bills of lading issued by carriers.