The UCC permits a seller to limit or modify the buyer’s remedies for breach of
warranty:
a. in all cases.
b. except for unconscionable limitations or for exclusions of consequential damages.
c. in no cases, as this would be contrary to public policy.
d. except when the seller seeks to limit the time within which the warranty is effective.
SEC Rule 2-01 of Regulation S-X imposes restrictions on which relationship between
an accountant and an audit client?
a. Employment.
b. Financial.
c. All of these are correct.
d. None of these are correct.
Which of the following would be an invalid restrictive covenant in a deed?
a. A requirement that all buildings are of a certain style.
b. A requirement that all homes contain a double garage.
c. An agreement not to sell to African-Americans.
d. An agreement requiring a minimum size for homes.
Adverse possession:
a. is an involuntary transfer of title.
b. is an illegal transfer of title.
c. allows a person a chance to retrieve their mortgage.
d. None of the above.
To whom does an accountant have potential liability?
a. To his client only.
b. To an intended third party beneficiary.
c. To a foreseen user of the accountant’s work.
d. All of the above.
Which of the following is a major limitation on the federal government’s power to tax?
a. Indirect taxes must be apportioned among the states.
b. All custom duties and excise taxes must be uniform throughout the United States.
c. Progressive tax rates are prohibited.
d. All of the above.
In the case of Pittsley v. Houser, the court:
a. held that the contract should be severed into different parts, applying the UCC to the
part of the contract involving goods and the common law to the nongoods part of the
contract.
b. held that the “predominant factor” test contravened the UCC’s declared purpose.
c. applied the “predominant factor” test.
d. found the CISG governed the contract in question.
Which of the following would most likely be a defect under 402A of the Restatement of
Torts?
a. A chair produced without inserting the appropriate screws.
b. A product with a defective design that is nevertheless the ‘state of the art.”
c. Vodka that is 100 proof and makes people drunk and causes liver damage after years
of heavy use.
d. All of these are correct.
The European Union (EU):
a. has approximately 500 million citizens.
b. currently has 32 members.
c. has officially admitted Japan to full membership.
d. is now closed to further membership.
Deeds generally end with:
a. the grantor’s signature.
b. a seal.
c. an acknowledgment before a notary public to verify the authenticity of the document.
d. All of the above.
Identify and describe the following types of wills.
a. Holographic
b. Nuncupative
c. Soldiers’ and sailors’ will
Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and
novelty ice cream products. He has nine children and doesn’t make enough money, so
he decides to see if another dairy will hire him, too. “After all,” he reasons, “most stores
carry four or five different brands.” His employment contract prohibits him from
competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble
under his contract?
a. No, it is unenforceable as against public policy.
b. Yes, it is likely to be enforceable during employment.
c. No, the prohibition against competing is enforceable only after he quits Dunkirk.
d. A court would have to rule on the enforceability of the covenant not to compete since
courts are reluctant to enforce such covenants during a period of employment.
The international organization which seeks to stabilize currency exchange is the:
a. United Nations Exchange Branch.
b. International Court of Justice.
c. United States Treasury.
d. International Monetary Fund.
The Electronic Funds Transfer Act governs:
a. consumer electronic fund transfers.
b. electronic transfers between financial institutions.
c. electronic transfers between financial institutions and businesses.
d. electronic transfers between businesses.
Louis agreed to provide all the apples that Cindy’s Cider Mill will need at $5 per bushel
unless weather conditions require additional labor to be hired. The rate would then be
$5.50 per bushel. A freeze warning required Louis to hire additional overtime workers,
raising the cost per bushel to $6.75. 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 commercially impracticable.
d. Yes, the freeze is a supervening event.
The sources of law in the American legal system include:
a. state administrative orders.
b. executive orders.
c. ordinances.
d. All of these are correct.
In addition to the four basic requirements of a contract, which of the following must
also occur in order to have a valid contract?
a. The agreement must be in writing.
b. There must be a promise from both parties.
c. There must be an absence of invalidating conduct, such as duress.
d. A legal remedy must be available in case there is a breach.
Steven is a manufacturer’s representative for Incell Corporation. One day he receives a
big-screen television as a gift from one of the clients he contacts on behalf of Incell.
a. Steven must account to Incell for the gift he has received.
b. The big-screen television belongs to Incell rather than to Steven.
c. If he keeps the TV without telling Incell, he will have breached his fiduciary duty.
d. All of these are correct.
In which of the following situations would a minor be unable to disaffirm a contract
which he had made?
a. Upon restoring the consideration received in a situation involving a fully executed
contract.
b. Where real property is involved, upon reaching the age of majority.
c. During the time of his minority or for a reasonable time thereafter.
d. Where the minor wishes to perform part of a contract and disaffirm another part of
the same contract.
Judges who serve on the U.S. Courts of Appeals receive lifetime appointments from the
President, subject to confirmation by the Senate.
An accountant who willfully violates Section 11 of the 1933 Securities Act may be
subject to criminal liability.
A tenancy at sufferance is created if a tenant fails to vacate the premises when the lease
expires.
A second will automatically revokes an earlier will if it is wholly inconsistent.
Article 2A of the UCC affords special treatment for consumer leases.