When a defendant asserts that even if everything the plaintiff said is true there is no
right to recovery, the defendant is making a:
a. counterclaim.
b. motion to dismiss.
c. motion for summary judgment.
d. deposition.
A person becomes a(n) __________ at the moment of taking possession of abandoned
personal property.
a. Bailor
b. Bailee
c. constructive bailee
d. Owner
Where a testatrix executes a will and later has a child:
a. the child is prohibited by law from receiving anything from the estate.
b. many states hold that the will of the testatrix is partially revoked by operation of law
to provide a share to the after-born child.
c. a new will must be executed because the birth voids the original will.
d. the after-born child takes a share by escheat.
The Petroleum Marketing Practices Act gives gas station __________ the opportunity
to continue in business by purchasing the entire premises used in selling motor fuel
when the franchisor decides to sell the property and not renew a lease.
a. franchisees
b. licensors
c. joint venturers
d. partners
When a drawee bank pays on a check that lacks an essential endorsement:
a. the drawer is liable.
b. the payee is liable.
c. the drawee bank is liable.
d. no one is liable.
A landlord is most likely liable to a tenant who is injured by:
a. a defective condition of the leased premises that is under the control of the tenant.
b. an obvious condition of the leased premises known to the tenant at the time the lease
was made.
c. an unforeseeable criminal act of a third person.
d. the criminal act of a third person, when such conduct was reasonably foreseeable.
The liability for losses on counterfeit checks depends on:
a. whether or not the bank acted reasonably in its processing systems in clearing the
checks.
b. whether or not the bank complied with time requirements for customers regarding the
checks.
c. both a. and b.
d. none of the above.
Which exemption to registration requirements exempts offerings of less than $5 million
to no more than 35 nonaccredited purchasers over a 12-month period?
a. Rule 504 exemption
b. Rule 505 exemption
c. Rule 506 exemption
d. Rule 507 exemption
Which of the following acts was passed to ensure that public shareholders faced with a
cash tender offer would not be required to respond without sufficient information?
a. the Mann Act
b. the Robinson-Patman Act
c. the Williams Act
d. the SEC Act
The obligations of the parties to a sales contract include:
a. the seller’s duty to deliver the goods to the buyer’s place of business.
b. the buyer’s duty to always accept the goods.
c. the seller’s duty to arrange for appropriate transport.
d. the buyer’s duty to pay for the goods.
In determining the rights of partner Dewey in the firm of Dewey, Cheatham and Howe,
the most important reference point is:
a. the Uniform Partnership Act.
b. the partnership agreement.
c. the sworn testimony of Cheatham and Howe.
d. the customs and traditions of similar partnerships.
A trust may be terminated:
a. by its own terms.
b. by merger of all interests in the same person.
c. via revocation by the settlor if allowed by the terms of the trust.
d. all of the above.
Tying:
a. is a violation of the Sherman Act.
b. occurs when sellers require buyers to purchase an unwanted product to get a wanted
one.
c. both of the above.
d. none of the above.
A third person to whom a joint tenant’s interest is transferred becomes a:
a. joint tenant.
b. cotenant.
c. tenant in common.
d. tenant by the entirety.
Embezzlement involves fraud.
When a partner executes an agreement outside the limitations of that partner€s agreed
scope of power, the other partners are always able to set aside the contract.
Garnishment is a procedure accomplished only by attorneys.
Professionals have a duty to perform their functions at the same level as would a
reasonable person.
A motion for a directed verdict occurs immediately after the last pleading is filed.
Arthur was looking for a Father’s Day gift for his dad, Tony. Tony was a cigar smoker
but Arthur was a nonsmoker. Arthur went to a cigar store and was looking around when
the proprietor suggested Arthur try a new imported cigar. The proprietor touted this new
cigar as “just like the great Cuban cigars.” Arthur was reluctant but did light one of the
cigars, which had a pleasant aromatic smell and took about five to six minutes to be
consumed. On this basis, Arthur bought a box of the cigars and presented them to his
father as a gift. When the father smoked one of the cigars, it gave off an acrid smell and
was completely consumed in less than two minutes. When Arthur saw this, he was very
upset and asked his father to try another. The same situation was repeated with the acrid
odor and the cigar burning down very quickly like a cigarette.After Arthur tried
unsuccessfully to return the cigars for a refund, Arthur filed a small claims court action
against the store. The case was based on the failure of the purchased cigars to conform
to the sample, breach of the implied warranty of merchantability, and the misleading
statement “just like the Cuban cigars.” Discuss the probable outcome of the case.
When a municipality contracts with a contractor to pave a street, homeowners on that
block are third-party beneficiaries of the contract.
Generally defenses that could be raised in a breach of contact claim cannot be raised
against a holder in due course.
When there is a direct conflict between a federal and a state law, federal law prevails
under the supremacy clause.