If an insured does not have an insurable interest in the property being insured, the
contract is treated as a wager.
General-jurisdiction trial courts can be found in every state.
In modern real estate law, the doctrine of “caveat lessee” is widely applied to leases.
A justice who agrees with the outcome of a case but not the reason proffered by other
justices can issue a dissenting opinionthat sets forth his or her reasons for deciding the
case.
John watched his brother die in a road accident. The perpetrator was driving under the
influence of alcohol. John can recover damages for negligent infliction of emotional
distress because of the mental trauma he suffered from watching his brother die.
What function of the law is being served when passing laws that prohibit discrimination
at workplaces?
A) keeping the peace
B) providing a basis for compromise
C) maintaining the status quo
D) promoting social justice
The rule of reason is characterized by ________.
A) an automatic violation of Section 1 of the Sherman Act
B) an inherently anticompetitive nature
C) a lack of need for any evidence to deem the restraint unreasonable
D) an evaluation of the company’s market share, power, and other facets
Mr. Jacob, who is terminally ill, writes a will transferring all his assets to his daughter
Silvia, in the event of his death. The doctors say that Mr. Jacob will live for about six
months. A day after the will is written, Silvia wishes to transfer her expected inheritance
to her son, Jacob Jr. This assignment will be ________.
A) valid
B) conditionally valid
C) invalid
D) re-assignable by Jacob Jr.
Which of the following best defines a shareholder resolution?
A) a document submitted by insurgent shareholders formally announcing forfeiture of
shares
B) an issue submitted by the board of directors requiring the reorganization of shares
held by shareholders
C) an issue submitted by a shareholder for a vote of other shareholders
D) a document that authorizes another person to vote the shareholder’s shares
Chen Stevenson died at the age of 85 leaving behind all his property to Phillip Miller,
his butler. The news of the new will that Chen executed three months before his death
naming Phillip as the sole beneficiary surprised everyone. By his prior will, he had
bequeathed his estate to his two daughters and three grandchildren on a per capita basis.
The court took up proceedings to determine the validity of his new will because Chen’s
rejection of his daughters and grandchildren in his will was uncharacteristic of him. The
court most likely suspected this change to be a case of ________.
A) constructive trust
B) undue hardship
C) undue influence
D) spendthrift trust
Roundwell Motors purchases a manufacturing plant for $15 million, pays $5 million in
cash as down payment, and borrows the remaining $10 million from Home Providence
Bank. To secure the loan, Roundwell gives the plant as collateral to Home Providence
Bank. What kind of collateral arrangement is in place between Roundwell Motors and
Home Providence Bank?
A) a mortgage
B) a garnishment
C) a land sales contract
D) an accommodation
Dorothy purchases a chair made by Woode Designs Inc. While making the chair, the
legs were not fixed properly to the base. When Dorothy sat on the chair, it broke and
she was injured. In a strict liability lawsuit, which of the following can Dorothy cite as
a defect in the chair?
A) failure to provide adequate instructions
B) defect in design
C) failure to warn
D) defect in manufacture
A(n) ________ refers to a condition whose occurrence or nonoccurrence of a specific
event automatically excuses the performance of an existing contractual duty to perform.
A) Condition precedent
B) Condition subsequent
C) Concurrent condition
D) Implied condition
A person filing for bankruptcy under Chapter 11 and left in place to operate the
business during the reorganization proceeding is known as the ________.
A) trustee
B) debtor-in-possession
C) consignor
D) regent
Intentional misrepresentation occurs when a seller or lessor ________.
A) fails to warn customers about the dangerous propensities of a product
B) shows negligence in product design
C) fails to assemble a product carefully
D) conceals a defect in a product
Which of the following is a requirement for a common law marriage to be valid?
A) that a marriage license was obtained
B) that there was a legal marriage ceremony
C) that the parties live together
D) that the parties have a valid prenuptial agreement