Enforcement and interpretation of the Truth-in-Lending Act was given to the:
a. Commerce Department.
b. Justice Department.
c. Federal Trade Commission.
d. Federal Reserve Board.
Jerry received a check from McGregory Corporation as a dividend on his preferred
shares. Two days later, one of the corporate directors called him and said he would have
to return the check since it was erroneously declared and the company would not be
able to pay its day-to-day expenses. Jerry would:
a. have to return the check because the company would be insolvent.
b. have to return the check since it was erroneously declared.
c. not have to return the check because Jerry acted innocently.
d. not have to return the check because the board acted in good faith.
If a person dies intestate, his property will be:
a. given to his beneficiaries.
b. passed to his children.
c. kept by the state.
d. distributed as prescribed by the state.
The right of the surety against the principal debtor, enforceable at equity, to require the
principal debtor pay the creditor when the obligation is due is the right of:
a. contribution.
b. subrogation.
c. reimbursement.
d. exoneration.
In determining the meaning of a contract under the UCC, which of the following will
have first priority?
a. Course of performance.
b. Course of dealing.
c. Usage of trade.
d. Express terms.
William agrees to drill a well up to 200-feet deep for John’s rural cabin. The contract
price is $3,000. After drilling 100 feet, William strikes solid granite rock. He talks to
John and explains that this is highly unusual for the area and could not have been
anticipated at the time of entering into the contract. He offers to get a special drill, but
says it will cost him more money, so that he will be unable to complete the project for
the agreed price. Because John is anxious to have the well, he agrees to pay William an
additional $1,000 to complete the job. However, once the well is finished, he changes
his mind and now says he will pay only the originally agreed-upon amount.
a. The parties have agreed to a substitute contract which discharges the original
contract. John is obligated to pay the additional $1,000.
b. Under the UCC, the substitute contract is binding, because there is the payment of
additional money.
c. William is in breach of contract. John need not pay any additional money.
d. William is under a pre-existing moral duty to perform at the originally agreed-upon
price.
Nell gives Al $50 in return for Al’s promise to defame Sara. Nell hopes to ruin Sara’s
chances at a promotion. Nell finds out that Al did not hold up his end of the agreement.
Which of the following statements is true?
a. Nell can get the money back from Al through litigation.
b. Nell can get the money back and force Al to do as he promised.
c. Legally, Nell can neither get the money back nor force Al to do as he promised.
d. Nell can force Al to act through an appeal to the courts, but Al gets to keep the $50.
Federal legislation that requires agencies to maintain in their records only that
information about an individual that is relevant and necessary to accomplish an agency
function and to collect information to the greatest extent practicable directly from the
individual is the:
a. FOIA.
b. Privacy Act.
c. Government in the Sunshine Act.
d. APA.
Barry presents to Wake Bank for deposit in his account a check for $100 made out to
him by Richard. Wake Bank provisionally credits Barry’s account on Monday. When is
payment final?
a. Automatically at the end of the third business day.
b. Midnight Tuesday.
c. When the amount of the check is collected from Richard’s bank.
d. When Richard’s bank receives the check.
Paul is a truck driver who owns his own truck and delivers loads to various companies
for nine months out of the year. For the hard winter months, Paul goes to Key West to
“put his feet in the sand.” One evening while delivering a load for Emblem Helicopter
Parts Co., Paul got into a “little scuffle” with a rowdy trucker who was giving Nell, a
waitress at the DewDrop Inn Cafe, a hard time. Paul knocked out five of “Rowdy’s”
teeth. Rowdy is suing Paul and Emblem for his injuries. Discuss whether Rowdy will
win on the issue of: (a) respondeat superior, and (b) unauthorized acts of agents.
All of the following are true of promoters of a corporation EXCEPT:
a. They solicit investors to begin the corporation.
b. They prepare the formal documents of incorporation.
c. They may make contracts in the name of the corporation.
d. They continue to solicit capital whenever needed after incorporation.
A check drawn on a bank is an order to pay a sum of money and an authorization to
charge the amount to the drawer’s account. The drawer may countermand this order by
which of the following?
a. A canceled check.
b. A stop payment order.
c. A banker’s acceptance.
d. A time draft.
a. When will a court specifically enforce a contract?
b. Under what circumstances will a court specifically enforce a contract involving
personal services?
c. What remedy did the court award in the Madison Square Garden case? Why didn’t
the court award specific performance in this case?
The International Anti-Bribery and Fair Competition Act of 1998 was enacted to
expand the Foreign Corrupt Practices Act to include:
a. payments made to ‘secure any improper advantage” from foreign officials.
b. all foreign persons who commit an act in furtherance of a U.S. bribe while in the U.S.
c. domestic officials of international organizations.
d. All of the above.
A __________ is a special type of lease transaction generally involving three parties
instead of two.
a. consumer lease
b. sale
c. finance lease
d. None of the above.
Which of the following statements about corporate dissolution is NOT correct?
a. A corporation cannot be forced into dissolution by a creditor.
b. A corporation will be dissolved if all shareholders vote to do so.
c. A state attorney general may dissolve a corporation for abuse of authority.
d. A shareholder may petition a court to dissolve a “deadlocked” corporation.
In reading the title of a case, Smith v. Jones:
a. you can determine that Smith is the plaintiff.
b. you can determine that Jones is the plaintiff.
c. the determination of who is the plaintiff depends on the level of the court at which the
case is being heard.
d. it is not always possible to determine from the case title which party is the plaintiff.
Whether a corporation is a de facto corporation may be challenged by:
a. an individual.
b. another corporation.
c. the state in which the business attempted to incorporate.
d. All of the above.
An attorney receives a check from the defendant in settlement of a lawsuit brought by
his client, the plaintiff. Even if the check is made out in the name of the attorney, it will
belong to the client as a:
a. resulting trust.
b. constructive trust.
c. totten trust.
d. spendthrift trust.
Lemon laws are generally understood to be laws that:
a. apply to the safety of food additives for fruits and vegetables.
b. are federal legislation designed specifically to protect state consumers from
fraudulent car manufacturers.
c. are state laws that attempt to provide new car purchasers with rights that are similar
to full warranties under the Magnuson-Moss Act.
d. are Interstate Compacts to uniformly deal with lemon cars.
The Federal Employee Polygraph Protection Act of 1988:
a. prohibits private employers (with some exceptions) from using lie detector tests or
test results as grounds for adverse employment decisions.
b. prohibits only the federal government’s use of polygraphs for making employment
decisions.
c. allows polygraphs of employees only to determine illegal drug use by them.
d. completely prohibits all use of polygraphs by employers.
The basic enforcement mechanism of __________ is a system of on-site inspections by
safety and health inspectors.
a. OSHA
b. Social Security
c. workers’ compensation
d. FLSA
The transfer of possession but not title to a buyer for a trial period is known as:
a. a sale or return.
b. a sale on approval.
c. entrusting to a merchant.
d. a consignment.
For an activity to be treated as a public nuisance there must be some interference with
the health, safety, or comfort of the public.
The UCC requires that all contracts for the sale of goods must be in writing.
Banks like electronic funds transfers, because they eliminate the float time that a drawer
enjoys on a checking account and the paperwork involved in processing checks.
A payor bank is under no obligation to its customer to pay an uncertified check that is
more than six months old.
The National Cooperative Research Act was passed to facilitate the use of joint ventures
for joint research and development.