If a husband and wife involved in bankruptcy cannot decide whether to use the state or
the federal set of exemptions, the state set is elected by default.
Answer:
There is no guarantee that the values of “ethical” shareholders would be representative
of society as a whole.
Answer:
Public policy can prevent the delegation of duties.
Answer:
The drawee bank does not have the right to charge a payable check to the drawer’s
account if this will create an overdraft in the account.
Answer:
Third parties are not entitled to recover for emotional distress resulting from witnessing
harm caused to another person by a defendant’s negligent acts.
Answer:
The insured must pay all past-due premiums and a stated amount of interest along with
proof of insurability to secure reinstatement.
Answer:
The Employment Retirement Income Security Act requires employers to establish
pension plans or to meet specific benefit levels.
Answer:
Under the traditional rule, landlords are granted immunity from tort actions if the
defects arise during the term of the lease.
Answer:
The common law lien and most of the statutory liens are known as possessory liens.
Answer:
The failure of an accountant to discover fraud by the client’s employees or others
would not be considered proof of negligence by the accountant.
Answer:
Private employees cannot challenge drug testing under tort theories such as invasion of
privacy or infliction of emotional distress.
Answer:
A drawee has no liability on a check or other draft unless it certifies or accepts the
check or draft.
Answer:
Shareholders in close corporations are often restricted in the sale of their stock.
Answer:
If a person who is entitled to a share of the decedent’s estate survives the decedent but
dies before receiving her share, her share in the decedent’s estate becomes part of her
own estate.
Answer:
A material change in a negotiable instrument does not discharge any party whose
contract is changed.
Answer:
The transfer of rights and duties under a contract is called an assignment.
Answer:
Under the Uniform Commercial Code, minors who disaffirm their contracts involving
goods:
A. can reclaim the goods even from third parties.
B. can no longer reclaim those goods from innocent third parties.
C. have to return consideration even if the goods have been consumed.
D. have to return consideration even if it has been stolen from them.
Answer:
Which of the following is a franchisor problem?
A. Attempts to require franchisees to buy products exclusively from the franchisor may
violate the Sherman Act.
B. Attempts to require adherence to prices set by the franchisor may violate the
Sherman Act.
C. Cannot use insurance to cover risks due to torts committed by the franchisee.
D. The franchisee has to be made an employee of the franchisor.
Answer:
Which of the following is TRUE about the breach of duty?
A. A person is guilty of breach of duty if he or she exposes another person to a
foreseeable and unreasonable risk.
B. Even if the defendant exercised reasonable care, he/she is liable for the plaintiff’s
injury.
C. Only when the defendant’s actions violate statutes, it is regarded as breach of duty.
D. It requires that a plaintiff must conduct himself/herself like a “reasonable person of
ordinary prudence in similar circumstances.”
If the actions cause injury of the kind the statute was designed to protect against, and if
the person who is injured is within the group of people the statute was designed to
protect, then the defendant is presumed negligent per se.
Answer:
Which of the following statements is TRUE of sale of collateral?
A. In disposing of the collateral, the creditor must use a commercially reasonable
method to produce the greatest benefit for himself.
B. The creditor must sell the collateral unless the consumer orally objects to the sale,
otherwise, the creditor may keep the collateral in satisfaction of the debt.
C. If less than 80% of the purchase price has been paid, the creditor may propose to the
debtor that the creditor keep the collateral in satisfaction of the debt.
D. If the creditor has a security interest in consumer goods and the debtor has paid 60%
or more of the purchase price, the creditor must sell the repossessed collateral.
Answer:
Advertisements are regulated outside of contract law by:
A. the UCC.
B. the Restatement.
C. the Federal Trade Commission.
D. the CISG.
Answer:
Writ of certiorari (cert.) is given when:
A. a person does not want to appeal to the Supreme Court.
B. there have been conflicting decisions in similar cases by different courts of appeal.
C. the court has too many cases to be heard and has no time to take up a new case.
D. the loser of the case does not pay the judgment.
Answer:
Which of the following statements about the EEOC is TRUE?
A. It protects workers from retaliation if they refuse to do work that they reasonably
believe might cause serious injury.
B. It prohibits employers from using lie detector tests on employees unless the
employer is engaged in an investigation of economic losses due to theft.
C. It objects to mandatory binding arbitration as a condition of employment because it
denies employees the right to bring independent discrimination claims.
D. It provides skilled people to help unions and employers in their bargaining so as to
prevent strikes.
Answer:
A new claim stating that plaintiff owes defendant damages because of harm resulting
from the incident alleged in the complaint is a(n):
A. counterclaim.
B. affirmative defense.
C. cross-claim.
D. dissenting opinion.
Answer:
If a bank receives a properly drawn and payable check, there are sufficient funds to
cover the check, and the bank wrongfully dishonors the check:
A. the bank may be liable to the drawer only for the actual damages suffered by the
drawer.
B. the bank may be liable to the drawer only for the consequential damages suffered by
the drawer.
C. the bank is not liable for any damages to the drawer unless the bank dishonored the
check intentionally, knowing it to be properly drawn and payable.
D. the bank may be liable to the drawer for actual and consequential damages suffered
by the drawer.
Answer:
A feature which distinguishes commercial agents from distributors and nonagents is
that:
A. commercial agents generally maintain their own inventory of goods unlike
distributors.
B. commercial agents are usually compensated through a straight salary when a sale is
completed.
C. commercial agents always bear the financial risk of nonpayment by the purchaser.
D. commercial agents often possess the authority to contract on behalf of their
principals.
Answer:
Ronny hires a car from Greens Transport with global positioning system (GPS) for his
holiday in Las Vegas. The rent for the car was $175 a day and was hired for 7 days. The
contract did not state anything regarding speed. At times Ronny drove at a high speed
of which the GPS kept a record and Greens imposed damages worth $4000 for the wear
and tear caused due to high speed. What kind of damage is this?
A. Compensatory damages.
B. Penalty damages.
C. Liquidated damages.
D. Punitive damages.
Answer:
______ is an important securities exemption.
A. Securities of profit issuers
B. Short-term notes and drafts
C. Private offering
D. Small offering
Answer:
Conglomerate mergers that create a potential for reciprocal dealing have been
successfully challenged under:
A. Section 3 of the Clayton Act.
B. Section 2 of the Sherman Act.
C. Section 7 of the Clayton Act.
D. Section 2(a) of the Robinson-Patman Act.
Answer:
Under general incorporation laws:
A. incorporation is a legislative privilege, not a right.
B. the secretary of state has to issue a certificate of incorporation.
C. incorporation is decided by shareholders.
D. incorporation is a legislative privilege and a right.
Answer:
The terms of the contract of the parties to a negotiable instrument are set out:
A. in the text of the instrument.
B. in Article 3 of the UCC.
C. in the U.S. Constitution.
D. in Article 5 of the UCC.
Answer:
A developer seeking a local zoning change so she can build a major commercial or
residential development may find that she is asked to finance a study of the potential
environmental impact of her proposed project, as under the:
A. Federal Water Pollution Control Act.
B. Control of Air Toxics Act.
C. Clean Air Act.
D. National Environmental Policy Act.
Answer:
Greenmail’s customers were receiving unsolicited electronic mails from Definition
Mail. Greenmail blocked these mails and sent them back to Definition Mail. Due to
such bulk mails coming in, Definition’s clients terminated their contracts with it.
Definition sued Greenmail for violating its First Amendment rights. Will the court
uphold this case?
A. No, as the First Amendment does not deal with constitutional rights.
B. Yes, as the First Amendment rights have been violated by Greenmail.
C. No, since Greenmail is a private company and did not owe any constitutional rights
to Definition.
D. Yes, because constitutional rights can be violated by individuals as well as the state.
Answer:
Describe the creditor actions that are automatically stayed when the debtor files a
bankruptcy petition.
Answer:
What are the advantages of franchising?
Answer: