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A(n) is a measure designed to protect the public from unqualified practitioners.
a. exculpatory clause
b. revenue license
c. regulatory license
d. usury statute
Ordinarily, an agent may delegate his duties to an equally qualified subagent.
a. True
b. False
A profit is not usually exclusive to the owner of that right.
a. True
b. False
Which of the following is not true of promoters of a corporation?
a. They arrange for capital and financing to start a corporation.
b. They assemble the necessary assets to start a corporation.
c. They attend to the actual legal formation of a corporation.
d. They continue to solicit capital whenever needed after incorporation.
All agency decisions must include a statement of findings of fact and conclusions of
law.
a. True
b. False
A trade fixture is not intended to become part of the realty.
a. True
b. False
In most states, whether the time within which a minor disaffirms a contract constitutes a
reasonable time is determined by:
a. state statute.
b. the UCC.
c. the facts and circumstances of the case.
d. common law, without regard to the unique facts of the case at hand.
A felony is a more serious type of crime than a misdemeanor.
a. True
b. False
Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel
unless weather conditions require additional labor to be hired. The rate would then be
$3.50 per bushel. A freeze warning required Louis to hire
100 additional overtime workers, raising the cost per bushel to $4.75. Louis wants to
get out of his contract. Can he?
a. No, the parties expected the hardship and provided for it in their contract
b. No, there is no hardship
c. Yes, the contract is impracticable
d. Yes, the freeze is a supervening event
A buyer may not recover consequential damages that could have been prevented by
cover.
a. True
b. False
Because the authority given to an agent by a principal is strictly personal, the agent's
death terminates the agency.
a. True
b. False
Which of the following would be admissible under the parol evidence rule? Assume the
written contract was made on June 1, 2010, and that it is an integrated document.
a. A letter dated July 9, 2010, reciting agreement to new delivery terms
b. A chart showing the dates for delivery written on August 16, 2009
c. A copy of two letters while the parties were in the negotiation stage of their contract
which showed agreement to a term not included in the June 1, 2010 contract
d. A copy of common carrier rules on the duty of delivery persons for uncrating
merchandise, which is datedDecember 1, 2006
An agent who makes a contract with a third person on behalf of a disclosed principal
usually is not a party to the contract.
a. True
b. False
The drawee is the individual who signs a check and promises to pay.
a. True
b. False
David enters into a contract to give Edward the right of first refusal to purchase a tract
of land owned by David.
David subsequently offers the land to Fred without first offering it to Edward. An
appropriate remedy for Edward to seek would be:
a. injunction.
b. liquidated damages.
c. reformation.
d. punitive damages.
Which of the following is untrue of a limited partnership?
a. Limited partnerships must be formed under a state statute.
b. Limited partners cannot ordinarily be named in the partnership business name.
c. Partners in limited partnerships must contribute services to the partnership.
d. Limited partners are generally not responsible for the debts of the partnership beyond
their investment.
Voting trusts generally are effective for only one year.
a. True
b. False
Most forms of speech are protected by the strict or exacting scrutiny standard.
a. True
b. False
Return for lack of proper indorsement constitutes a dishonor of the check.
a. True
b. False
Alice Jones receives a bonus of $500 from her boss. She needs cash for her vacation, so
she indorses the check to Charlie who gives her $300 cash and an IOU for $200. When
Charlie presents the check to Alice's company for payment, her boss says the check was
meant for Alex Jones instead; it was all a big mistake. What will Charlie be able to
collect from the company?
a. $500
b. $300
c. $420
d. Nothing
Generally, the legislative branch of government has the power to enforce the law.
a. True
b. False
A chronological report of recorded transfers and encumbrances to the property can be
obtained by a(n):
a. warranty deed.
b. title search.
c. attorney's opinion.
d. assumption of a mortgage.
Joel's car broke down on a dark, rainy night. Along came Andy in his four-wheel drive
truck with tools and supplies in the back. Joel didn't have any credit cards and had only
$3.25 cash, so Andy told him to write a check or an IOU. Neither Andy nor Joel had
any paper, so Joel wrote on the cover of Andy's lunchbox: "If my car is fixed right by
Andy Walcott, I will pay him $150. (Signed) Joel Boyd." Andy indorses the note and
takes it to a commercial factor for negotiation. The factor refuses, saying it is
non-negotiable because:
a. it is written on a lunchbox.
b. it mentions the existence of a contract to repair the car.
c. it is conditional on satisfactory repair of the car.
d. All of these.
If a person dies without a valid will, her property will be distributed according to state
statute, even if that distribution
is contrary to the decedent's clear intention.
a. True
b. False
Damages a buyer may recover for loss resulting from requirements, the needs of which
the seller had reason to know at the time of contracting and which could not reasonably
be prevented by cover, are:
a. incidental.
b. consequential.
c. punitive.
d. liquidated.
Under the RMBCA, the filing of the articles of incorporation by the Secretary of State
is conclusive proof that the incorporators have satisfied all conditions precedent to
incorporation so that a shareholder or creditor would be unable to challenge the
existence of the corporation.
a. True
b. False
Apparent authority can arise where there is an undisclosed principal as well as where
the principal is disclosed.
a. True
b. False
The original mortgagor and mortgagee can transfer their interests to assignees whose
right and obligations will depend primarily on which of the following?
a. Agreement of the parties to the assignment
b. Legal rules protecting the interest of one who is party to the mortgage but not to the
transfer
c. Both of these.
d. None of these.
The appointment of an agent by a minor or an incompetent not under a guardianship
and any resulting contracts are not voidable regardless of the agent's contractual
capacity.
a. True
b. False
Judicial review is another phrase for an appeal of a lower court's judgment.
a. True
b. False
Oscar, who was driving too fast, collided with a truck carrying explosives. The truck
was unmarked, so Oscar had no way of knowing what it contained. The collision caused
an explosion, which shattered glass in a building a block away. The glass injured Ida,
who was working inside the building. John, who was walking down the street near the
site of the collision, was seriously burned as a result of the explosion. In this case:
a. Oscar's negligent driving is the proximate cause of Ida's injury.
b. Oscar's negligent driving is the proximate cause of John's injury.
c. both Ida and John are within the zone of danger of the collision.
d. All of these.
Which of the following is not true of leases of real property?
a. They must always be in writing.
b. They vary in manner of termination.
c. They are both contracts and conveyances of an estate in land.
d. They involve an exclusive right to use and possession of the land for a definite or
ascertainable time and are nonfreehold estates.
