The Sherman Act:
A. makes contracts in restraint of trade and monopolization illegal.
B. does not provide criminal penalties for violations of its provisions.
C. does not give the federal courts any injunctive powers.
D. was specifically designed to attack tie-in, exclusive dealing, and requirements
contracts.
Answer:
Compared with common law, the UCC:
A. is more rigid.
B. is more likely to find that parties have a contract.
C. is more concerned with technical rules.
D. applies theoretical rules to deal with what people do in the marketplace today.
Answer:
One distinction between civil law and criminal law is:
A. civil law can be created only by statute.
B. criminal law is completely procedural.
C. criminal law is concerned with breaches of duty to society at large.
D. the U.S. Constitution does not apply to civil lawsuits.
Answer:
When Nancy’s aunt left for her annual Christmas vacation, she left Nancy in charge of
her coffee shop. During this time, there was a devastating snow storm which damaged
the roof of the café. Under such circumstances, Nancy can make necessary repairs if
she cannot reach her aunt for further instructions because:
A. she has apparent authority.
B. she has power of attorney.
C. she has express authority.
D. she has inherent agency power.
Answer:
When one party exercises the power to terminate in violation of the right to terminate,
the other party:
A. is left without a remedy.
B. may recover monetary damages in a breach of contract suit.
C. may recover specific performance.
D. may recover punitive damages in a breach of fiduciary duty.
Answer:
Which of the following statements is TRUE for a negotiable document of title?
A. It serves as the contract between the seller and the shipper.
B. It is given to the buyer even before he/she makes the payment for the goods.
C. It shows that title cannot be surrendered to the buyer until the seller explicitly
instructs.
D. It shows that the buyer cannot reject the goods delivered.
Answer:
When Martha of Martha’s Homemade Pies gives a freshly baked apple-cinnamon
double-crust pie to her sales clerk to put in the window case for display, the clerk:
A. has possession of the pie.
B. has custody of the pie.
C. is a bailee to Martha.
D. has ownership of the pie.
Answer:
One of the duties generally imposed on the principal by the common law is:
A. the duty to share profits and losses.
B. the duty to reimburse and indemnify.
C. the duty to account for funds and property.
D. the duty to consult.
Answer:
An agent can limit the liability for the acts of a subagent to the principal by using:
A. express authority
B. ministerial actions
C. implied authority
D. exculpatory clause
Between the agent and the principal, it is the agent who is ultimately liable for the acts
of the subagent. It is possible for the agent to limit this liability to the principal through
the use of an exculpatory clause.
Answer:
Possessory liens give the lienholder the right to keep possession of the debtor’s
property:
A. for a reasonable period of time after the debt has been paid.
B. until the debtor regains possession by fraud or other illegal act.
C. until the reasonable charges for the service have been paid.
D. even if possession of the goods has not been entrusted to the lienholder.
Answer:
The phenomenon of “risky shift” means:
A. that groups do not accept higher risks than individuals.
B. that a corporation will shift its risk onto its customers.
C. that a group of people who must reach a consensus on an acceptable level of risk
often decide on a level of risk higher than the risk they would accept as individuals.
D. the tendency for members of a group to internalize the group’s values and
perceptions and to suppress critical thought.
Answer:
After a valid deed is delivered from grantor to grantee:
A. title is still not effectively conveyed till witnessed by two people.
B. the grantee should immediately record the deed.
C. the grantee should post a “legal notice” in the newspaper.
D. the grantee should get the deed deposited securely in a public office.
Answer:
Edward owes Frank $100, payable in six months. Frank, who is leaving the country on
work, gives his rights to the payment to Marge for $80. Indicate the TRUE statement
about this case.
A. Frank is the obligor.
B. Edward owes Marge $80.
C. Edward owes Marge $100.
D. Frank will get $100 from Edward.
Answer:
Cybertrespass is commonly considered to be a trespass on:
A. personal property.
B. real property.
C. private property.
D. immovable property.
Answer:
Which of the following groups are covered under ADA?
A. People with AIDS or AIDS-related conditions
B. Transvestites
C. People with a substance-abuse addiction
D. Bisexuals
Answer:
People lacking mental capacity:
A. can disaffirm their contracts.
B. cannot disaffirm their contracts.
C. are liable for the reasonable value of necessaries.
D. don’t need to return any consideration they have received.
Answer:
Identify the statement that holds TRUE of Revised Article 3.
A. Under Article 3, an instrument does not qualify as a check if it contains the
engraving “money order” on its face.
B. Revised Article 3 prevents an instrument from meeting the “unconditional promise”
if it requires a countersignature of a person whose specimen signature appears on the
draft.
C. Under Article 3, a payor bank may pay a postdated check before the stated date
unless the drawer has notified the bank of postdating pursuant to a procedure set out in
the Code.
D. Revised Article 3 states, an instrument that names a fixed time for payment should
not contain a clause permitting the time for payment to be accelerated at the option of
the maker.
Answer:
If a person has been discriminated by the government on the basis of the fact that
he/she is an illegitimate child, the regulation will be evaluated under:
A. strict scrutiny.
B. rational analysis.
C. intermediate scrutiny.
D. due process.
Answer:
The _____ Amendment prohibits arbitrary and unreasonable governmental intrusion of
the right to privacy.
A. Fifth
B. Sixth
C. Fourth
D. Eighth
Answer:
Which of the following must be present for an offer to have a legal effect?
A. Invitation to offer
B. Communicating the intention to make an offer
C. Invitation to negotiate
D. Definiteness
Answer:
A seller who has voidable title:
A. can pass good title to a good faith purchaser for value.
B. cannot pass good title to a good faith purchaser for value.
C. cannot obtain voidable title by impersonating another person.
D. can pass good title if the purchaser gives specific consideration to support the
contract.
Answer:
Kyle, a manufacturer of cribs and various kinds of furniture for children, sold 100 cribs
to Tara, the owner and operator of a store that specialized in the sale of such items. The
sale was accomplished pursuant to a typewritten contract entered into by both parties.
You are to assume that the implied warranties of merchantability and fitness for a
particular purpose would apply to the transaction, unless such warranties were
effectively disclaimed. The parties’ typewritten contract included, in a prominent
position, a term that was in all capital letters, unlike the rest of contract, which was in
standard type. The term read: “Seller hereby disclaims all implied warranties.” On these
facts, Kyle has probably made an effective disclaimer of:
A. the implied warranty of merchantability and the implied warranty of fitness for a
particular purpose.
B. neither the implied warranty of merchantability nor the implied warranty of fitness
for a particular purpose.
C. the implied warranty of fitness for a particular purpose, but not the implied warranty
of merchantability.
D. the implied warranty of merchantability, but not the implied warranty of fitness for a
particular purpose.
Answer:
People who regain their mental capacity:
A. can disaffirm for a reasonable time after regaining mental capacity.
B. can ratify their contracts.
C. are still considered to be insane for a reasonable period of time.
D. cannot ratify their contracts.
Answer:
____ laws were passed to provide some relief to customers having complaints against
auto dealers.
A. Credit
B. Equal opportunity
C. Fair credit
D. Lemon
Answer:
A “claim in recoupment”:
A. is a claim of the original payee against the obligor of the instrument.
B. must arise from the transaction that gave rise to the instrument.
C. is actually a defense to an instrument, but not an offset to liability.
D. can make a person a holder in due course even if he knows about it before the
negotiation.
Answer: