1) edna boyle contracts with the melonville times to advertise her garage sale to be held
this saturday. the ad is to run in the friday and saturday morning edition. if the ad does
not run on time, the melonville times agrees to pay edna $50.00. this liquidated
damages clause is most likely enforceable.
2) the united states is a firsttofile nation.
3) if the insured misrepresented material facts in the application for insurance, the
insurance policy becomes void.
4) in determining whether consideration exists, the law is not concerned with any
disproportion in value between the things exchanged in a contract.
5) defamation liability requires publication of the defamatory statement to an
appreciable number of people.
6) when a court reviews formal agency adjudications or formal agency rulemaking, the
only agency findings that will be overturned are those that were unsupported by
substantial evidence.
7) bob parked his new porsche with the restaurant valet. the valet gave bob a claim
receipt. a bailment has been created.
8) which of the following is included in the bylaws?
a.the purpose of the corporation.
b.the machinery for the transfer of shares.
c.the par value of shares of the corporation.
d.the duration of the corporation.
9) the department of homeland security:
a.is an executive administrative agency.
b.is a non-profit organization.
c.is a cabinet-level department.
d.has no effect on governmental organization.
10) a minor entered into a contract with gam & co. on attaining majority, he wishes to
enforce the contract. the adult party must:
a.perform the contract.
b.rescind the contract.
c.abandon the contract.
d.ratify the contract.
11) which of the following is most true about stop-payment orders?
a.their validity is only for 14 days.
b.their validity is only for six months.
c.they must give the bank 14 days to act on the order.
d.they can be oral or written.
12) a check or draft that one bank draws upon another bank is called a:
a.certified check.
b.cashiers check.
c.tellers check.
d.bearer check.
13) betty, age 16, buys a car and wrecks it one week later. she takes it back to the seller
and demands all her money back. according to the traditional rule, is she entitled to get
all her money back?
a.yes, regardless of the condition of the car, because this was a void contract.
b.yes, regardless of the condition of the car, because this was a voidable contract.
c.no, she is entitled to no remedy in this situation.
d.no, she is entitled to get some money back but less the value of the damage to the car.
14) jurisdiction based on the presence of property within the state is called _____
jurisdiction.
a.in rem
b.in personam
c.sui iuris
d.subject-matter
in rem jurisdiction is based on the presence of property within the state.
15) joe sells his business to shirley. during the negotiations, joe negligently tells shirley
that the business has earned a profit for the last five years. in reality, the business
operated at a loss for each of those years. however, shirley did not hear joes
misstatement. shirley cannot rescind the contract because:
a.joes false statement was negligent rather than intentional.
b.joes misstatement was not material.
c.shirley did not actually rely on joes misstatement.
d.an untrue assertion of fact was made.
16) technoco, inc., a manufacturer of computers and related equipment, has been
requiring wholesalers and retailers who purchase computers from it to also purchase
printers as a condition of buying computers. one of technocos customers has challenged
the legality of this practice. which of the following factors would weigh against the
illegality of this practice?
a.evidence that technocos computers are generally considered to be inferior to those of
its competitors.
b.evidence that many other computer manufacturers will sell computers without
requiring purchases of printers.
c.evidence that technoco is a small company whose total printer sales in the period in
question amounted to $19,000.
d.evidence that technocos computers are generally considered to be superior to those of
its competitors.
17) in a _____ contract, the goods are delivered to the buyer primarily for resale with
the understanding that the buyer has the right to return them.
a.sales
b.buy and sell
c.sale or return
d.supply of goods
18) under the freedom of information act (foia), administrative agencies must normally
respond to public requests for documents within _____ after such a request has been
received.
a.30 days
b.20 days
c.10 days
d.40 days
19) which of the following transfers will generally be valid without the consent of the
other parties?
a.the assignment by the lessee of a lease contract where rent is a percentage of sales.
b.the assignment by a purchaser of goods of the right to buy on credit without giving
security.
c.the assignment by an architect of a contract to design a building.
d.the assignment by a patent holder of the right to receive royalties.