_____ is any written warranty that does not meet all of the requirements for a full
warranty.
A. An express warranty
B. A limited warranty
C. An implied warranty
D. A warranty of merchantability
The International Court of Justice is made up of _____ judges.
A. seven
B. nine
C. eleven
D. fifteen
Big Co. and Gantt Co. have entered into a contract for a long-term project. The
companies opt to use a partnering process to resolve disputes. The partnering process
between them will begin:
A. after the contract has been finalized but before the project has begun.
B. when the first dispute between the two parties arises.
C. only if both mediation and arbitration procedures have failed.
D. once the project has begun and the parties are aware of possible problems.
Koto, a successful accountant, has been invited to join the board of directors of Big Co.
Koto is concerned that she will face personal liability for her decisions while on the
board of Big. How can Big, by itself, limit her liability at this point in time?
A. Protective measures in the charter
B. Protective measures in the bylaws
C. Protective measures in the articles of organization
D. Protective measures in the members’ agreement
Eve, an experienced automotive engineer, signs an agreement with her employer,
Environmental Auto Co., that she will never work in the auto industry after she leaves
employment with Environmental. A court considering this agreement:
A. will declare it void, as geographical area is not specified.
B. will enforce the agreement in any event.
C. will only enforce the agreement if it resulted from a bargained-for exchange.
D. will enforce the agreement only if such agreements are customary in the auto
industry.
Auto Rebuilders Inc. orders original 1995 model parts from Car Wreckers Inc. Car
Wreckers boxes the parts for shipment but finds another purchaser who is willing to pay
more and refuses to ship the parts to Auto. Auto Rebuilders is unable to find the parts
for sale elsewhere but is uncertain about what legal remedy to pursue. What remedy is
best suited for this situation?
A. Compensatory damages
B. Specific performance
C. Writ of replevin
D. Compensatory and incidental damages
All lawn maintenance businesses must pay the state a $200 annual license fee with no
other legal regulations. ABC Yards, Inc. fails to pay the license fee. Which of the
following is true in case ABC Yards has failed to acquire a license because of the failure
to pay the $200?
A. The lack of a license will not necessarily make a contract void.
B. The lack of licenses makes the contracts void under contract laws.
C. All contracts of ABC are voidable, due to their failure to obey the regulation.
D. Only executory contracts by ABC will be voidable.
A(n) _____ is a check that is presented for payment more than six months after its date.
A. overdraft
B. postdated check
C. antedated check
D. stale check
Which of the following would be considered a criminal act?
A. Martin had a heart attack while driving his semitrailer on a highway, causing a
head-on collision with another trailer, and resulting in a 40-car pileup and 17 deaths.
B. Last summer, Sam made and sold crack cocaine and marijuana to teenagers of his
neighborhood, leading to drug network and addiction amongst teenagers of that locale.
C. Karen, obsessed with thoughts of her husband’s affair with his colleague, wrote in
her diary detailed plots of how to kill the woman.
D. Helen thinks she cannot get through each day without taking LSD, a psychedelic
drug.
Betty purchases a variety of merchandise on credit on behalf of The Great Retail Store.
When Betty quits, what notice must The Great Retail Store provide?
A. The Great Retail Store can send a notice to all businesses in Betty’s area.
B. A classified advertisement notice in a newspaper of general circulation.
C. Actual notice to parties Betty has done credit business with and an advertised notice
in a newspaper of general circulation to the rest of the public.
D. The Great Retail Store is not required to provide a notice to anyone.
The willingness to abide by contractual obligations is:
A. ratification.
B. emancipation.
C. rescission.
D. devolution.
Tina is a limited partner in Aon Enterprises, a limited partnership, while Mark is a
general partner. Tina assumes management duties when Mark is recovering from heart
surgery. Who has liability for partnership actions in this period?
A. Aon Enterprises only
B. Mark only
C. Tina only
D. Mark and Tina only
The judges on the science court must be:
A. drawn from a sample of people affected by the technology in question.
B. scientists with expertise in the areas under investigation.
C. from government bodies involved in legislation about the subject.
D. lawyers with a scientific background in the subject.
Which of the following statements holds true for the true locality rule?
A. It requires the court to look at the standard of care used in the exact locality of the
physician.
B. It permits the court to judge the actions of a local physician against those of a
physician in a community of comparable size and socioeconomic character.
C. It ignores the socioeconomic character of the physician’s home base and
concentrates instead on the geographical limits of a state border.
D. It permits general practioners to be judged by one criterion and specialists by
another.
Two drivers challenge each other to a drag race on a public highway. This is an example
of:
A. acting with a purpose.
B. acting with knowledge.
C. acting with recklessness.
D. acting with negligence.
Turban, an immigrant who speaks little English, enters into a contract to pay $300 per
month for ten years to purchase an auto from Travel Motor Co. The appraised retail
value of the car is $5000. What legal remedy would release Turban from his contract?
A. Unconscionability
B. Specific performance
C. Punitive damages
D. Implied understanding
Brogan, aged 16, enters into a written contract with Willy, to sell his horse to Willy.
Later Brogan seeks to be released from the contract and wants to offer in court oral
testimony concerning his age. The admission of this testimony is governed by:
A. the standard construction rule.
B. the best evidence rule.
C. the equal dignities rule.
D. theparol evidence rule.
Munchburger, a fast-food outlet, sends an employee to hand out leaflets outside Hick’s
Burger, a competing fast-food outlet. The leaflets falsely accuse Hick’s of using
horsemeat in its burgers. Hick’s may successfully sue Munchburger for:
A. disparagement.
B. invasion of privacy.
C. interference with a contractual relationship.
D. proximate cause.
Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 in
order to have a rapid sale. Later Lisa insists that she may rescind this agreement since
the agreed price was 30% below fair market value. Lisa may:
A. rescind since the consideration is inadequate.
B. rescind since the agreement is unconscionable.
C. rescind since the agreement is not bargained for.
D. not rescind since Lisa and Deb freely agreed.
Alan and Delen enter an agreement after the creation of a partnership. Subsequently,
Delen loans Alan $1,000. The loan is:
A. incorporated into the partnership agreement.
B. a loan to the partnership rather than to Alan.
C. a loan to both the partnership and to Alan.
D. separate from the partnership agreement.
The status of a de facto corporation can be directly challenged by:
A. private citizens.
B. thestate government.
C. both private citizens and the state government.
D. neither private citizens nor the state government.
Which of the following states that holders of consumer credit contracts who are holders
in due course are subject to all claims and defenses that the buyer could use against the
seller, including personal defenses?
A. Shelter provision
B. Holder in due course rule
C. Lack of consideration
D. Universal defenses
The four fundamental legal principles that are designed to protect the corporate
structure are ____, corporate status as an entity, corporate constitutional rights, and
corporate citizenship.
A. anticipatory repudiation
B. unconscionable contract
C. mutual recession
D. limited liability
Jenna hangs her fur coat on a rack in the unattended waiting room of Physicians
Associated Office. When she prepares to leave, after seeing Dr. Wong, the fur coat is
missing. What liability, if any, do Physicians Associated and Dr. Wong have for the
missing coat?
A. None, since they had no control over the coat.
B. Physicians Associated is liable since the coat rack was in its waiting room.
C. Dr. Wong is personally liable as Jenna had come to meet him.
D. None, since the coat rack was rickety and is used by no one.
Which of the following is true of international sales law?
A. It governs only the formation of a sales contract and the rights and duties that arise
from it.
B. It is concerned with the validity of a contract that would be governed by other laws.
C. It applies to the liability of the seller for death or personal injury caused by the
goods to any person.
D. It applies to auctions sales, sales of stocks, securities, negotiable instruments or
money.
Probate courts and courts of claims are examples of courts with
A. special jurisdiction.
B. subject matter jurisdiction.
C. personal jurisdiction.
D. general jurisdiction.
Which of the following types of criminal homicide involves killing someone with
premeditation, killing in a cruel way such as with torture, or killing while committing a
major crime?
A. Second-degree murder
B. Involuntary manslaughter
C. First-degree murder
D. Voluntary manslaughter
Twenty-three year old Jon has a part-time job at the public library, which pays him $20
per hour. He applies for a credit extension of $500 to complete his education program.
The bank refuses Jon’s application, stating its refusal to consider Jon’s income from his
employment at the library. Which of the following laws has the bank violated?
A. The Equal Credit Opportunity Act.
B. The Fair Credit Reporting Act.
C. The Fair Debt Collections Act.
D. The Truth-in-Lending Act.
A criminal defendant is found to be suffering from a mental disease which is so serious
that she does not know the nature of her actions or the fact that the acts she commits are
wrong. This fits which of the following tests?
A. M’Naughten Rule
B. Irresistible impulse test
C. American Law Institute test
D. The Durham test
Any method of dealing that is commonly used in a particular field is known as:
A. usage of trade.
B. contract for sale.
C. good faith.
D. firm offer.
