1) an implied warranty of habitability in the leased property makes the landlord the
insurer of the tenants safety.
2) in a contract for adam to sell carrie a steam boiler, carries obligation to pay is
conditioned upon her personal satisfaction with the boiler. even though the boiler meets
every mechanical test imaginable, carrie refuses to pay because she just doesnt like the
boiler for some reason. she is not obligated to pay, because the contract said that he
must be personally satisfied, and a contract is a contract.
3) the “ends” component of a means-ends test specifies how significant a social purpose
must be in order to justify the restriction of a right.
4) by issuing a qualified opinion, an auditor escapes liability for defects in financial
statements audited by the auditor.
5) in order to be liable for conversion, the defendant must know that the property
rightfully belongs to someone else.
6) according to the nepa, every business contemplating a project must file an
environmental impact statement.
7) to accept an offer for a unilateral contract, the offeree must make the promise
requested by the offer.
8) brady, a cpa, is hired by stanlee inc., to audit its financial statements. due to his
negligence, brady fails to discover that tom, chairman the board of directors of stanlee,
has embezzled $300,000 of the company funds. brady finishes the audit and issues an
unqualified opinion. six months later, brady reads in the newspapers that tom has been
caught for embezzling a total of $800,000 of company funds. tom has resigned and the
company funds have been fully recovered from him. stanlee sues brady. how much is
brady liable for?
a.$300,000
b.$1,100,000
c.$800,000
d.$500,000
9) to qualify as a contract, a set of promises must be based on a voluntary agreement,
which is made up of an offer and a(n) _____ of that offer.
a.understanding
b.writing
c.assumption
d.acceptance
10) which of the following statements is true of copyright?
a.copyrights and patents last forever.
b.there are different copyright rules for pre and post 1978 works.
c.congress enacts copyright rules under the wipo.
d.copyrights for a work-for-hire last for 50 years.
11) april and brian entered into a completely integrated written contract. before the
written contract was completed, april made an oral statement to brian regarding the
terms of the contract. this statement was not contained in the written contract. under the
parol evidence rule, evidence of aprils oral statement would be admissible if it were
used to:
a.create a completely new agreement.
b.introduce an ambiguous term in the written contract.
c.prove an additional term consistent with the written agreement.
d.change the terms of the written contract.
12) ordinarily, an agent is not liable for unauthorized acts made on behalf of a principal
if:
a.the third party has no knowledge about the principals identity.
b.the third party knows that the principal lacks legal capacity.
c.the principal eventually ratifies the contract.
d.the principal is undisclosed.
13) which of the following is least likely to be forbidden by title vii?
a.discrimination against a man solely because of his gender.
b.discrimination against a woman solely because she is a lesbian.
c.discrimination against a black woman solely because of her religion.
d.discrimination against a person of french ancestry because he talks like an
englishman.
14) a trademark owner who wins an infringement suit may obtain a(n) _____ against
uses of the mark that are likely to cause confusion.
a.license
b.assignment
c.injunction
d.writ
15) bob deslob, ceo of westlake, inc., had supported the development and distribution of
the super widget, a product that is expensive to make. the super widget failed to meet its
expected sales. bob, now, decides to invest more resources to produce and aggressively
market the super widget, rationalizing that if he did not invest more in the product, what
he has invested would be lost. bob is engaging in:
a.sunk cost fallacy.
b.argumentum ad baculum.
c.argumentum ad hominem.
d.reductio ad absurdum.
16) jack, a resident of texas, sued jill, a resident of kentucky, alleging breach of
contract. jack may attach jills bank account in kentucky to recover the amount of the
judgment from the account, if his suit is successful. this is an example of:
a.in rem jurisdiction.
b.inpersonam jurisdiction.
c.quasi in rem jurisdiction.
d.venue.
17) a _____ is owned by shareholders who elect a board of directors to manage the
business.
a.limited liability company
b.corporation
c.partnership
d.sole proprietorship
18) normally, how long is the ordinary proxy valid for voting under the model business
corporation act (mbca)?
a.9 months
b.1 year
c.6 months
d.11 months
19) which of the following permits a firm to register a trademark in all its signatory
nations simultaneously by filing an application for registration in any signatory nation
and was joined by the united states in 2003?
a.the berne convention
b.the paris convention for the protection of industrial property
c.the madrid protocol
d.the kyoto protocol
20) abel hired carr to restore abels vintage car for $800. the terms of their oral
agreement provided that carr was to complete the work within 18 months. actually, the
work could be completed within one year. can abel insist that the work be completed
within a year instead of the 18 months?
a.no, because the agreement covers services with a value in excess of $500.
b.no, because the agreement covers a time period in excess of one year.
c.yes, because personal service contracts are exempt from the statute of frauds.
d.yes, because the work can be completed within one year.
21) kyle promised to mow heidis lawn for $20 and clean heidis gutters for $50, but only
mowed the lawn. which of the following is true of kyle?
a.he is the nonbreaching party and can, therefore, sue heidi.
b.he cannot be sued by heidi because he has performed one of the promises.
c.he can recover the contract price for the activity he performed.
d.he will be directed by the court to complete the entire contract for free.
22) the buyer usually can inspect goods before payment except:
a.where payment is made by check.
b.when the goods are perishable.
c.where the goods are shipped cod.
d.when the buyer pays in a foreign currency.
23) in which of the following situations is an instrument termed as overdue?
a.where a check was made out 60 days ago.
b.where there is a default in payment of interest on a note, but not in the payment of the
principal.
c.where the principal on a note is due in installments and an installment has not been
paid.
d.where a note dated january 1 is payable 30 days after date and is paid on january 31.
24) which of the following legal provisions treats a corporation as a person?
a.corporation law
b.the law of contract
c.the constitution of the united states
d.the law of torts
25) an obligor:
a.owes a duty to perform under a contract.
b.is owed a duty.
c.is one to whom a right has been transferred.
d.facilitates a contract.
26) a limited liability company:
a.is either member-managed or manager-managed.
b.shares its profits equally with shareholders.
c.is not required to pay federal income tax.
d.is owned only by shareholders.
27) which of the following observations is true under the ucc?
a.consideration is not required to support a modification of a contract for the sale of
goods.
b.if there is a conflict between the express terms of the contract and trade usage, the
trade usage will prevail.
c.the buyer or the seller cannot delegate their duties to someone else under any
circumstance.
d.the ucc does not alter the basic contract law when applied to performance of
contracts.