1) bettina knows that she is going bankrupt. one month before the filing of her
voluntary petition, bettina sells a painting worth $50,000 to her brother for $100. this is
legal under chapter 7. however, if bettina had simply given her brother $49,900, the
transfer would have been voidable.
2) the fair labor standards act requires double-pay for all working hours in excess of 40
per week.
3) perfection by mere attachment of the security interest does not require giving of
public notice.
4) a deceased persons heirs have no power to order a bank to stop payment on checks
written by the deceased prior to his death.
5) although a nolo contendere plea may lead to a judicial determination of guilt, it is
inadmissible in later civil cases against the defendant based on the same conduct
amounting to the criminal violation.
6) the assertion of specific in personam jurisdiction satisfies federal due process
guarantees so long as the defendant has sufficient minimum contacts with the forum
state.
7) the exercise of the power of judicial review depends on the courts reading of the
constitution.
8) which of the following is an accurate statement about powers delegated to and
possessed by administrative agencies?
a.the most important administrative agencies typically possess rulemaking powers but
lack adjudicatory powers.
b.an agencys rulemaking power would be classified as discretionary power rather than
ministerial.
c.modern courts tend not to uphold the validity of broad delegations of power by
congress to administrative agencies.
d.most administrative agencies are given restricted powers to comply with the
constitutional principle of separation of powers.
9) _____ is generally taken to mean the absence of meaningful choice together with
terms unreasonably advantageous to one of the parties.
a.unconscionability
b.illegality
c.adhesion
d.rescission
10) an online agreement that presents contract terms and conditions but does not require
readers to click to indicate agreement is called a:
a.clickwrap agreement.
b.shrinkwrap agreement.
c.browsewrap agreement.
d.minimum contracts agreement.
11) stone, a merchant seller in seattle, contracted with rose, a merchant buyer in
rochester, for the sale of goods to be shipped by truck. the terms of the contract were
“f.o.b. seattle”. stone delivered the goods to the carrier. after leaving seattle, the truck
containing the goods was never seen again. stone has demanded payment for the goods,
and rose has refused. if stone sues, the outcome will be:
a.rose will win because rose did not receive the goods.
b.rose will win because under the ucc this was a shipment contract.
c.stone will win because stone was not at fault in causing the loss.
d.stone will win because under the ucc this was a shipment contract.
12) the rationale for the impostor rule is that the responsibility for determining the true
identity of the payee:
a.is shared by the bank and the maker of the negotiable instrument.
b.is on the drawer or maker of the negotiable instrument.
c.is on the bank that negotiates the instrument.
d.is on the payee whose name is mentioned in the negotiable instrument.
13) although the lanham act is the federal trademark statute, section 43(a) of the statute
may be invoked in various situations that do not involve trademark rights.
14) why is the contract for the insurance of a building not covered within the real estate
provision of the statute of frauds?
a.it does not involve the transfer of interests in land.
b.it involves a physical asset.
c.it involves two or more parties.
d.it need not be in writing.
15) when the promoters of a business substantially comply with each of the mandatory
conditions precedent to the incorporation of the business, a(n) _____ corporation is
formed.
a.s
b.de jure
c.de facto
d.estoppel
16) under exceptional circumstances in which the creation of a trust is necessary to
effectuate a settlors intent or avoid unjust enrichment, the law imposes a trust even
though no express trust exists. this is known as a(n) _____ trust.
a.implied
b.spendthrift
c.totten
d.blind
17) tony sinister is a candidate for a middle management position at mobco, inc. mobco
retained clandestine investigation & credit reporting agency (cicra) to interview
sinisters friends, neighbors, and associates and then prepare an investigative consumer
report on sinister. which of the following would the fair credit reporting act require in
this situation?
a.that cicra not disclose to mobco any information pertaining to sinisters personal traits
or reputation.
b.that mobco inform sinister of its request for the report and of his right to obtain
further disclosures about the investigation.
c.that cicra conduct interviews of sinisters neighbors and relatives to gather relevant
information.
d.that mobco call off the investigation because a hiring decision does not involve
credit-related information.