The treble damages provision is applicable to individuals injured by violations of the
Sarbanes-Oxley Act of 2002.
Answer:
A guarantor’s promise must be made in writing to be enforceable under the statute of
frauds.
Answer:
Rob’s construction firm did not give Casey a certificate issued by Timothy Engineering
Firm indicating that the work has been done to satisfaction. Casey has no duty to pay
Rob’s firm.
Answer:
An order of relief is granted automatically if the debtor does not contest the filing of an
involuntary petition.
Answer:
Termination of an agency based on race, religion, national origin, and age is generally
prohibited by state and federal legislation.
Answer:
Attempts by franchisors to require franchisees to buy products and equipment from the
franchisor may violate the Clayton Act.
Answer:
An individual can freely use the trade secrets of another if he discovers them through
means such as reverse engineering.
Answer:
When a manufacturer states a ‘suggested retail price” for their products, this violates
Section 1 of the Sherman Act.
Answer:
Voluntary intoxication is a complete defense to a crime.
Answer:
Assault is an intentional, nonconsensual touching that is harmful or offensive.
Answer:
A corporate officer is never held liable for the illegal behavior of a subordinate.
Answer:
The courts allow recovery if one or both of the parties to an illegal bargain are ignorant
of the facts that made the bargain illegal.
Answer:
Blue laws are uniform across all states in the country.
Answer:
A partnership agreement:
A. in written form is highly mandatory.
B. in written form is needed if it creates a partnership in excess of one year.
C. can be modified only after the limited partners have consented to the modification,
unless the agreement states otherwise.
D. normally does not state the salary or drawing accounts.
Answer:
A “perfected” security interest:
A. protects the creditor’s security interest in collateral against other creditors of the
debtor.
B. becomes effective even when the creditor does not give anything of value to the
debtor.
C. gives the creditor protection against other creditors of the collateral but not against
other purchasers of the collateral.
D. does not provide the creditor rights vis-Ã -vis the debtor.
Answer:
When a minor reaches the age of majority, he/she:
A. may disaffirm a contract for a reasonable time after reaching majority.
B. can no longer be ratified.
C. must put his intent to disaffirm in writing shortly before reaching majority.
D. should renew his contract in order to disaffirm the contract legally.
Answer:
In addition to statements made to an attorney, the attorney-client privilege covers:
A. information divulged to an attorney’s subordinates, such as secretaries or paralegals.
B. statements made in the presence of people other than the lawyer.
C. statements made to a law-enforcement officer.
D. information divulged in the presence of people other than the lawyer’s subordinates.
Answer:
Forbearance occurs when:
A. a debtor and two or more creditors agree to accept a stated percentage of their
liquidated claims against the debtor.
B. someone promises not to file a legal suit in exchange for a promise to pay a certain
sum of money or some other consideration.
C. promises are worded in a way that allows the promisor to decide whether or not to
perform the promise.
D. there is no dispute about the existence or the amount of the debt.
Answer:
An employee from Dr. Don’s Automobile Hospital, Inc. made a house call to Horner’s
home to repair his car. It was repaired in Horner’s garage. When Horner defaulted on
the bill, Dr. Don went to his house to take possession of the car, claiming that the
corporation had a lien on the car by virtue of the work performed on it. On the basis of
these facts, it can be said that:
A. the employee is entitled to the possession of the car because he was the one who
performed the repairs on the car.
B. Dr. Don is justified in his actions as the corporation did have a lien on the car by
virtue of the work performed on it by its employee.
C. the corporation has no lien on the car because the employee did not notify Horner at
the time of the repairs that a lien would be claimed.
D. the corporation has no lien on the car, because its employee came to Horner’s house
to make the repairs and so Horner never gave up possession of his car to Dr. Don’s.
Answer:
A traveler’s check that requires, as a condition to payment, the countersignature of a
person whose specimen signature appears on the draft:
A. is negotiable.
B. is not negotiable.
C. is negotiable only if it is payable “to cash.”
D. is not negotiable only if it is payable “at sight.”
Answer:
Lee was charged with public intoxication. Shortly after being charged with the offense,
he wrote a letter to his attorney explaining the circumstances surrounding his arrest. The
letter is considered:
A. privileged communication under the work-product privilege.
B. privileged communication under the attorney-client privilege.
C. privileged communication under legal positivism.
D. privileged communication under legal realism.
Answer:
Sam and his friend Louie agreed that Sam would lease an apartment from Louie for
three months in the summer. On the date the lease was to begin, Sam arrived at the
apartment and discovered that Louie’s friend, Sheila was already living there. Under
these circumstances, the lease between Sam and Louie:
A. is unenforceable because it was a periodic tenancy.
B. is unenforceable because it created a tenancy at will.
C. is enforceable because Louie breached the covenant of quiet enjoyment.
D. is enforceable because Louie violated the implied warranty of possession.
Answer:
One of the basic principles of corporation law is that:
A. shareholders are not free to dispose of their shares by gift.
B. shareholders are given the authority to manage the business.
C. majority rule applies to both shareholder and director action.
D. majority rule applies only to director action.
Answer:
Which of the following statements is TRUE of the transfer of a property by sale?
A. Engaging a real estate broker is a legal requirement for the sale of real property.
B. Exclusive right to sell contracts entitles the broker for a commission only if he
procures the buyer.
C. Agreement between the seller and the buyer to purchase real property need not
necessarily be in writing to be enforceable under the statute of frauds.
D. Real estate sales contracts must be evidenced by a suitable writing signed by the
party to be charged in order to be enforceable.
Answer:
Deontological theory focuses on:
A. actions.
B. consequences.
C. prime movers.
D. just distribution of society’s resources.
Answer:
Walt draws a check for $1,500 on Town Bank. The check is made payable to the order
of Stephanie. Stephanie endorses and sells the check to Nita. At Nita’s request, Town
Bank certifies the check. Which of the following is a TRUE statement?
A. Stephanie is secondarily liable.
B. Walt is secondarily liable.
C. Town Bank is primarily liable.
D. Walt is primarily liable.
Answer:
On June 1, Fred sends Wilma an e-mail offering to build her a new garage for $20,000.
In his e-mail, Fred wrote, “acceptance by certified mail is advisable.” On June 2 at 8
am, Fred sends Wilma a certified letter attempting to revoke the offer. At 2 pm the same
day, Wilma mails Fred a letter via certified mail attempting to accept his offer. Under
these circumstances:
A. the parties do not have a contract until Fred receives Wilma’s acceptance.
B. Fred’s revocation is effective and the parties do not have a contract.
C. Wilma’s acceptance is effective upon dispatch.
D. the parties do not have a contract as the trade usage is telegrams and not certified
mail.
Answer:
Common carriers:
A. are never allowed to limit their liability.
B. are usually allowed to limit their liability to a stated value.
C. can always limit liability for an infinite value.
D. are held to a lower level of responsibility than private carriers.
Answer:
ISO 14001 includes:
A. Guidelines for environmental auditing’”audit procedures.
B. Life cycle assessment’”principles and guidelines.
C. Guidelines for environmental auditing’”general principles.
D. Environmental management systems’”specification with guidance for use.
Answer:
(p. 191-192) Beck tells his mom that he is thinking of selling his vintage coupe to his
neighbor, Sam, for $100. Beck’s mom calls Sam and tells him about her conversation
with Beck. Sam then calls Beck and tells him that he accepts his offer. Under these
circumstances:
A. the offer has been effectively communicated.
B. the offer has been conditionally tendered.
C. the offer has not been communicated.
D. the offer violates the UCC’s rule against third-party interveners in quasi-contracts.
Answer:
A corporation:
A. is liable for all torts committed by its retired and ex-employees.
B. is liable for all torts committed by its employees while acting within the scope of
their employment.
C. is liable for all torts committed by its employees under the doctrine of ultra vires.
D. is not liable for the torts committed by its employees while acting on the instructions
of a high-level manager.
Answer:
What factors do the courts consider in determining whether a contract is
unconscionable?
Answer:
Major Developer built a subdivision in which it offered a number of houses for sale.
The Smiths bought one of these houses. During the first rain, water entered under the
crawl space of the house. Water then accumulated to a depth of 17 inches in a room
where the furnace and water heater were located. This frequently caused the water
heater to perform inefficiently. With each rainfall, water continued to collect. The house
became damp and developed a serious mildew problem. What remedies do the Smiths
have?
Answer:
Answer:
What are the major requirements a person who generates, treats, stores, or transports
significant quantities of hazardous waste must meet?
Answer:
Ernie Hemingway was fired by his employer, Gerty Stein’s Sweat Shop. After he was
fired, Ernie received a letter from Sweat Shop offering him double severance pay in
exchange for a release of all age discrimination claims against the company. Ernie
signed the release and put it in a mailbox outside the post office. Later, Ernie changed
his mind and called Sweat Shop to say “I refuse your offer and will be filing suit for age
discrimination.” Is Ernie’s withdrawal of his acceptance of Sweat Shop’s offer effective?
Why or why not?
Answer:
Ivan is a representative for Mega Industries. Checks are drawn by “Mega Industries,
Inc., Payroll Account (signed) D. Ivan” but the checks are not paid. Who is liable’”the
individual or the corporation?
Answer:
On May 1, Fred Farmer agreed to sell 1,000 bushels of wheat to a bread maker for $7
per bushel. Delivery was to be on August 1. After the market price of wheat rose to $8
per bushel, Fred breached the contract. If the bread maker can get substitute wheat at
the current market price, can he get specific performance? If not, what two options are
available to him if he seeks damages for breach of contract from Fred? What will he
recover under each option?
Answer:
When is a shareholder permitted to sue as a representative of a corporation?
Answer:
Define strict foreclosure.
Answer: