According to the UCC, the offeror who remains silent impliedly authorizes the offeree
to accept by any reasonable means of communication.
Answer:
Negligence is an important element of Rule 10b-5 violation.
Answer:
The USA PATRIOT Act restricts law enforcement’s ability to use surveillance
techniques and calls for increased judicial and congressional oversight.
Answer:
Insurance policies are exempt from both the registration and antifraud provisions of the
1933 Act.
Answer:
International trade arbitration agreements are enforced through multilateral treaties.
Answer:
A cashier’s check is similar to a certified check.
Answer:
The Clean Air Act does not provide for the regulation of fuel additives such as lead.
Answer:
Implied warranties imposed by law are absolute.
Answer:
In most cases, only a probability of anticompetitive effect is necessary for Clayton Act
violations.
Answer:
How do cases of mistake differ from fraud and misrepresentation?
Answer:
One of the purposes of the TILA is to enable the consumer to understand all the
charges made in connection with credit.
Answer:
An acceptance is not effective upon dispatch by the offeree if the offer is sent by a
stipulated means.
Answer:
Stockholders have the ability to effectively reject a merger agreement.
Answer:
The risk of a licensee producing inferior goods or inferior service is drastically reduced
if the licensor closely monitors his/her activities.
Answer:
States are preempted by the federal government from governing such matters as how
soon wages must be paid to the employee and the garnishment of wages.
Answer:
The concept of negligence is based on the idea that every member of society has a duty
to conduct his or her affairs in a way that avoids injury to others.
Answer:
In 1990, concerned about toxic air pollutants, Congress specified a list of 189
chemicals for which the EPA is required to issue regulations requiring the installation of
the most affordable control technology.
Answer:
Both secured and unsecured creditors are required to file proofs of claims.
Answer:
When a buyer breaches a contract, a seller does not have the right to mitigate damages.
Answer:
Employees of a company that illegally disposes of hazardous waste without a proper
permit:
A. may not be held criminally liable for their acts if their acts were undertaken on
behalf of the corporation.
B. may not be held criminally liable for their acts unless they acted without the
knowledge or approval of the corporation.
C. may be held criminally liable for actions undertaken on behalf of the corporation.
D. may be held liable to a minimum of $25,000 for a first offense up to $150,000 per
day and five years in prison for subsequent violations.
Answer:
A “yellow-dog contract”:
A. required an employee to remain a member of the union at all times in order to
remain employed.
B. was widely used by employers to encourage the formation of unions.
C. required a worker taking a job to promise not to join a union.
D. specified that a worker’s employment will not be affected by his union membership.
Answer:
People who presents drafts for warranties:
A. do not make a warranty that they have knowledge of the insolvency proceedings
commenced regarding the drawer.
B. make a warranty that the instrument has not been materially altered.
C. make warranties that are similar to those transferors make.
D. make a warranty that they are aware of the unauthorized signature of the maker.
Answer:
VOCs are:
A. substances which combine with nitrogen oxides to become ozone.
B. substances which release chlorines and deplete ozone.
C. fumigants used on citrus and grain products.
D. also known as catalytic converters.
Answer:
A teleological theory based on the laissez-faire theory is:
A. act utilitarianism.
B. profit maximization.
C. rule utilitarianism.
D. difference principle.
Answer:
If Acme Chemical Partnership discharges a pollutant prohibited by the EPA:
A. the firm is liable for the resulting fines.
B. only the general partners are liable if the firm has inadequate assets.
C. only the partner who ordered the discharge is liable.
D. all the partners will be imprisoned as discharging pollutants is a crime.
Answer:
In life insurance contracts:
A. the rate of the premiums to be paid decreases if the face value increases.
B. the loan value decreases as the age of the policy increases.
C. the rate of the premiums to be paid depends on the face value of the policy.
D. the loan value enables the insured to borrow money from the insurer, but at high
interest rates.
Answer:
Hans bought a stylish sports car when he was 15. Two weeks after he turned 18, he
sold the car to his neighbor. In this scenario:
A. Hans may disaffirm the contract even after he sold the car.
B. Hans can disaffirm the contract as it was never a valid ownership.
C. Hans may recover the cost of the car from the dealer who sold it to him when he was
15.
D. Hans cannot disaffirm the contract because he sold the car.
Answer:
Accommodation sureties:
A. are people paid for serving as a surety.
B. are protected by the courts at a higher level than other types of sureties.
C. have no protection from the court.
D. are professional companies which take payment for acting as a surety.
Answer:
“Caveat emptor” is the basic principle of:
A. scienter.
B. fraud by silence.
C. fraud in the execution.
D. undue influence.
Answer:
Which of the following statements is TRUE for assignment of contracts?
A. It represents the transfer of duties to assignees.
B. Rights cannot be sold in an assignment.
C. The assignee is not entitled to the entire performance the assignor had a right to
under the original contract.
D. The promisor must render all performance to the assignee.
Answer:
When the parties do not agree on the duration of the agency and the agent has incurred
substantial expenses in completing the agency, a court will likely hold that:
A. the agency relationship must be terminated immediately to avoid unjust enrichment.
B. the principal cannot terminate the agency until after the agent has had a reasonable
time to try to earn the expected commission.
C. only the principal can terminate the agency and the courts cannot hold him liable for
any expenses incurred by the agent during the agency period.
D. the principal will be required to indemnify the agent if some fault of the agent causes
a loss.
Answer:
______ is a basic restriction governing the transferability of shares in a close
corporation.
A. Piercing the veil
B. Quo warranto
C. Right of first refusal
D. Ultra vires
Answer:
If a negotiable instrument is payable on demand, it is overdue:
A. the day after demand for payment has been made in a proper manner and form.
B. 30 days after its date if it is a check.
C. three days after demand for payment has been made in a proper manner and form.
D. 60 days after its date if it is a check.
Answer:
If Gilles tampers with the odometer of a car he is trying to sell, he is guilty of:
A. fraud with intent to deceive.
B. fraud by silence.
C. duress.
D. caveat emptor.
Answer:
In the “private judging” method of dispute resolution:
A. a hired judge renders a binding opinion after hearing the evidence and arguments of
the parties.
B. executives of the disputing companies, who have settlement authority, hear a
shortened presentation of the case by the lawyers for each side.
C. a six-member mock jury empaneled by the court hears a shortened presentation of
the case by the lawyers for each side.
D. executives of the disputing companies meet with lawyers to negotiate a settlement.
Answer:
If a bailee misdelivers the bailed property at the termination of the bailment:
A. the bailee is liable to the bailor.
B. the bailor assumed the risk and is liable.
C. neither the bailee nor the bailor is liable.
D. both the bailee and the bailor are equally liable.
Answer:
Why are contracts prohibiting competition with a buyer of a business or an employer
assignable?
A. To protect the goodwill of the business.
B. To protect the employees from losing their jobs.
C. To protect the interest of the public.
D. To protect the value of the assets to be sold.
Answer:
Explain the meaning of a purchase money security interest in consumer goods with an
example.
Answer:
Seth runs David’s Connecticut farm while David works as a stockbroker in New York
City. Twice a year, David asks Seth for an accounting. Explain Seth’s duty to provide an
accounting.
Answer:
Explain the difference between duress and undue influence.
Answer:
When is a debtor allowed to void liens on his properties? What type of liens can be
voided on this basis?
Answer:
Briefly describe the main defenses to negligence.
Answer:
Explain the similarity and difference between click-on and browse-wrap contracts.
Answer: