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A ninety-year-old patient walked away from a nursing home and wandered onto some
nearby railroad tracks. Once on the tracks, the patient stumbled and sprained his ankle.
A few minutes later a train approached. The engineer saw the man on the track and
could have stopped, but the train's brakes were defective. As a result, the train hit and
killed the man. His family is suing the railroad for negligence.
a. The patient has assumed the risk of wandering onto the railroad tracks.
b. Because the patient was contributorily negligent, the railroad has no liability.
c. The train had the last clear chance to avoid the accident so, in a state following the
contributory negligence rule, the patient's negligence does not bar his estate's recovery.
d. The train's striking of the man was an intervening cause, so the railroad company was
negligent.
Which of the following is true with regard to implied warranties under the Code?
a. They depend on the type of contract or sale entered into.
b. They are a result of specific language in the sales contract.
c. They continue the common law rule of caveat emptor.
d. They are intended to protect the seller rather than the buyer.
Patricia has a valid judgment against David. David lives in California, where he owns
thousands of acres of beach-front property, unrelated to the judgment. Patricia may
execute her judgment in California based on what type of jurisdiction?
a. Subject matter jurisdiction.
b. Concurrent federal jurisdiction.
c. Quasi in rem jurisdiction.
d. Diversity of citizenship jurisdiction.
__________ is available to a third person to whom a representation is made and who
justifiably relies on the representation.
a. Delectus personae
b. Respondeat superior
c. Culpable negligence
d. Partnership by estoppel
Vernon is an accountant for a major accounting firm. One day at work, he is discussing
his collection of rare coins with one of his co-workers. Vernon tells his co-worker that
he keeps his collection at home and that he has recently purchased several Chinese gold
Panda coins at an exceptional price. The co-worker expresses an interest in buying two
of the coins at an agreed price, and a contract is duly formed. If no place for delivery is
expressed, where are the coins to be delivered?
a. At the office of the major accounting firm where the parties to the contract work.
b. At Vernon's home.
c. At the co-worker's home.
d. In the parking lot of the major accounting firm.
Jonathan and his wife, Claudia, are planning to adopt a baby in one month. Jonathan
has worked full-time for eight months in a six-person office of the county planning
commission, and Claudia has worked full-time for the last three years for a 40-person
business operating a nursing home. Under the Family and Medical Leave Act, when
Jonathan and Claudia actually adopt:
a. Jonathan is eligible for up to 12 weeks of unpaid leave.
b. Claudia is eligible for up to 12 weeks of paid, unpaid, or a combination of paid and
unpaid leave.
c. neither Jonathan nor Claudia is eligible for any leave.
d. both Jonathan and Claudia are eligible for up to 12 weeks of paid or unpaid leave.
Which of the following contracts is generally held to be unenforceable?
a. A divisible agreement that is partly lawful and partly unlawful.
b. Allison enters an illegal agreement but, before performance, withdraws from the
transaction.
c. An exculpatory clause on the back of a parking lot claim check, attempting to relieve
the parking lot operator for negligence.
d. Merle enters a contract and is ignorant of minor legislation that makes the contract
illegal.
Jeanne sells an acre of her three-acre parcel to Ana and expressly provides that Ana
shall have a right-of-way across Jeanne's remaining land so that Ana can reach her land.
In this case:
a. Ana's land is the servient parcel.
b. the right created is a license.
c. Ana's land is the dominant parcel.
d. the right-of-way is an easement, which can only be created by an express grant in the
deed granting the land to Ana.
The Code provides:
a. parties to a security agreement have a great deal of freedom in drafting their
agreement.
b. security agreements may not contain a provision for acceleration, at the secured
party's option, of all payments upon default in any payment by the debtor.
c. that if the secured party becomes insecure about the prospects of future payments, the
only recourse is to require the debtor to name a surety for the remaining debt.
d. a security agreement may describe the collateral as 'all my personal property.'
If conflicts exist, which of the following sources of law would be paramount?
a. A state constitution.
b. A federal administrative rule.
c. A municipal resolution.
d. A state statute.
A limited partner's financial obligation to the partnership may be increased if the:
a. limited partner acts as agent for a competing partnership.
b. limited partner takes active part in the management of the partnership.
c. certificate of limited partnership is incorrect or incomplete.
d. Both (b) and (c).
Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate,
Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000
which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money
in the estate, I'll personally see that the bill is paid." Which of the following is correct?
a. The oral statement is enforceable because Paul is the administrator.
b. An oral statement such as this is not enforceable because it is outside the statute of
frauds.
c. An oral statement such as this is not enforceable because it is within the statute of
frauds.
d. The oral statement is enforceable because it is a collateral promise.
An estate from week to week or month to month is called a(n):
a. fee simple absolute.
b. estate for years.
c. periodic tenancy.
d. tenancy at sufferance.
Invasion of privacy consists of:
a. appropriation.
b. intrusion.
c. public disclosure of private facts.
d. All of these are correct.
Warranties in insurance contracts:
a. are of great importance.
b. may be expressly included in the contract, be clearly incorporated by reference, or be
implied.
c. may be used to avoid liability in all states, whether or not the breach of warranty is
material.
d. are becoming increasingly easy to use as a basis for an insurer to avoid liability on a
policy when an insured breaches.
The European Community was the predecessor to the:
a. ICJ.
b. GATT.
c. CISG.
d. EU.
a. What is the difference between equal pay for equal work and equal pay for
comparable worth?
b. How is it possible to establish a claim for equal pay for comparable worth if the jobs
are different jobs?
c. Is equal pay for comparable worth covered by the federal employment discrimination
laws? Explain.
All of the following except which one is a duty of an agent?
a. Account for money received on behalf of his principal.
b. Inform his principal of any information relevant to his agency.
c. Refrain from competing with his principal.
d. After the agency is terminated, refrain from using any information gained while an
agent.
Which of the following is NOT true about social security?
a. The purpose is to provide full retirement to almost all employees.
b. Employers and employees share the cost of contributions.
c. Self-employed individuals pay the full cost of contributions.
d. Social Security consists of four main programs: OASI, DI, Medicare, and SSI.
An amendment to a will is called a(n):
a. stipulated addition.
b. statutory adjustment.
c. codicil.
d. attestation.
Who usually enters into employment contracts and what provision is commonly
included regarding possible restraint of trade? Explain the purpose of such provisions.
Negotiability is wholly a matter of form.
Much of the law of partnership is the law of agency.
A person who receives a share of profits of a business is presumed to be a partner in the
business.
The Code does not label the warranty of title as an implied warranty, despite the fact
that it arises out of the sale and not from the words or conduct of the parties.
A binding contract between an accountant and the client is called an engagement.
In many states, the services of the incorporators are perfunctory and short-lived.
Identify three specific functions of law.
Under constitutional privilege, a public official or public figure must prove that the
defendant published the defamatory and false comment with knowledge of the
comment's falsity or in reckless disregard of the truth.
Discuss ARMs and their regulation.
