A contractual provision which states that a waiver of rights will not constitute a
modification to the contract is:
a. not enforceable as being in bad faith.
b. not enforceable as a violation of law.
c. enforceable by one party only.
d. enforceable.
A thief stole Art’s checkbook and forged Art’s name as drawer of a check. The drawee
paid the check in good faith and sent it to Art with the monthly statement on January 3,
2013. The thief forged other checks during February and March of 2013, which the
drawee in good faith paid. All paid checks were sent to Art with monthly statements. On
May 25, 2014, Art discovered all of the forgeries and notified the drawee. For which
check(s) is Art entitled to be reimbursed?
a. none of them
b. all of them
c. the first check only
d. the last check only
The Age Discrimination in Employment Act forbids discrimination by employers,
unions, and employment agencies against persons:
a. over 40 years of age.
b. over 50 years of age.
c. over 60 years of age.
d. between the ages of 40 and 65.
Which statement is incorrect concerning mortgages?
a. The mortgagee’s interest terminates upon performance of the obligation secured by
the mortgage.
b. The mortgagee has the right to enforce the mortgage by foreclosure upon default by
the mortgagor.
c. The mortgagor must have complete or absolute ownership in the property.
d. Generally, no particular form of language is required to create a mortgage.
Which of the following is not characteristic of the €living€ Constitution?
a. strong government
b. strong President
c. administrative agencies
d. states’ powers equal to federal powers
In a Chapter 11 rehabilitation plan, the debtor:
a. keeps all of the assets (both exempt and nonexempt).
b. remains in business.
c. makes a settlement that is acceptable to the majority of the creditors.
d. all of the above.
The federal regulation of express warranties:
a. applies only to limited warranties.
b. applies to a seller who makes a written express warranty for a consumer product
costing more than $10.
c. requires all express warranties to be full warranties.
d. requires an implied warranty to be designated as either full or limited.
U.S. courts will assume jurisdiction and apply antitrust laws to conduct business outside
the United States if the activities of the business firms outside the United States have a
direct, substantial, and foreseeable impact on U.S. commerce. This is based on what
principal?
a. the “jurisdictional rule of reason”
b. the “act”of’state doctrine
c. the “effects” doctrine
d. comity
An enterprise that conducts business following a merger or consolidation succeeds to:
a. all of the rights of the predecessor.
b. all of the property of the predecessor.
c. all of the debts and liabilities of the predecessor.
d. all of the above.
Bailment given as security for the payment of a debt is a(n):
a. pledge
b. contribution
c. guaranty
d. indemnity
Dealing honestly, reasonably, and in good faith:
a. is implied in every contract for services.
b. is implied in every contract for the sale of goods.
c. is an expressed obligation in every contract.
d. both a and b.
Generally, which power(s) does (do) an administrative agency possess?
a. all powers necessary to effectively perform the duties entrusted to it
b. legislative only
c. judicial only
d. executive only
Anyone promoting the sale of a real estate development that is divided into fifty (50) or
more parcels of less than five (5) acres each must file a development statement with the
secretary of Housing and Urban Development.
A trustee cannot make decisions on matters that could not be foreseen by the settlor.
In applying the €foreign substance/natural substance€ liability test in the sale of food or
drink, courts hold that there is liability if the seller does not deliver to the buyer goods
of the character that the buyer reasonably expected.
Federal laws on the disclosure in the sales of securities and shareholder relations were
developed following the stock market crash of 1929.
If an employment contract provides that an employee can be fired only for “good cause”
or “just cause,” a lesser standard for discharge such as the employment-at-will doctrine
will not be allowed by a court.
In general, one may assign rights if that does not cause the obligor’s duties to increase
or change materially.
Under Title VII, whites are not protected against discrimination because of race and
color.
Each shareholder owns a proportionate share of the property of the corporation.
Vesting refers to the ability of an employer to reclaim all of the funds it may have paid
into a former employee’s retirement fund upon that employee’s decision to resign.