All price discrimination is illegal under the Robinson-Patman Act.
a. True
b. False
Seth and Maricela enter into a contract for a sale of goods for a contract price of $1,200
and Maricela has made a down payment of $200. Seth delivers nonconforming goods to
Maricela who rightfully rejects them. The best remedy available to Maricela is to:
a. cancel the contract and recover her $200 plus whatever other damages she can prove.
b. reclaim the goods and cover.
c. resell the goods and recover damages.
d. stop delivery of the nonconforming goods and recover payments made.
Which of the following is INCORRECT regarding zoning?
a. Zoning can be used to regulate private property, but not to “take” it.
b. A variance permits an otherwise impermissible use of the property.
c. A zoning ordinance needs no reasonable relationship to public health, safety, or
morals to be upheld.
d. A nonconforming use may be permitted where property was so used prior to adoption
of the zoning ordinance.
A person who takes a check stamped “NSF” may still be a holder in due course.
a. True
b. False
A special warranty deed limits the warranty given out by the grantor to acts or
omissions of the grantor.
a. True
b. False
In the majority of states, in a case of negligence persethe plaintiff would only have to
prove violation of a statute in order to show negligent conduct.
a. True
b. False
A distribution may be in the form of:
a. declaration or payment of a dividend.
b. a purchase, redemption, or other acquisition of shares.
c. a distribution of indebtedness.
d. All of these.
A partner’s liability for partnership debts is limited to his capital contribution.
a. True
b. False
Conscious parallelism is sufficient in itself to suggest a conspiracy in violation of
Section 1 of the Sherman Act.
a. True
b. False
The buyer and seller of goods may not simultaneously hold insurable interests in the
goods.
a. True
b. False
Michael issues a check to Paula. She negotiates the check to Harold as payment for a
used television. Harold has no notice of any claims or defenses and takes the check in
good faith. Harold indorses the check and gives it to his son as a birthday present.
a. Is Harold’s son a holder in due course? Explain.
b. What rights does Harold’s son have with respect to the check? Why? Explain.
c. Assume that Michael has a personal defense of fraud in the inducement against Paula.
Can he use that defense against Harold? Can he use that defense against Harold’s son?
Explain.
a. What are the two types of duress and what is the effect of each on the contract
involved?
b. Give an example of each type of duress.
c. Who does the law intend to protect by reason of the defense of duress? Why does the
law protect this type of person?
Which of the following is/are excluded from UCC Article 4A coverage?
a. Credit transactions
b. A transfer of credit that moves from an originator to a beneficiary through the
banking system
c. A funds transfer that is, even partially, governed by the EFTA
d. All of these.
Rodrigo lends money to Isaac on Linda’s promise to act as a surety. Rodrigo’s extension
of credit is the consideration to support Isaac’s promise to repay the loan and Linda’s
suretyship undertaking.
a. True
b. False
The failure by an applicant to disclose material facts that an insurer does not know but
has a right to know is called:
a. misrepresentation.
b. concealment.
c. waiver.
d. fidelity.
The First Amendment allows free speech in any and all circumstances.
a. True
b. False
An offer can be communicated by words or by conduct.
a. True
b. False
OmegaByte Corp. has 1,000 shares of stock outstanding that are permitted to vote for
directors. If OmegaByte Corp. permits cumulative voting, a minority shareholder would
need to vote how many shares to elect one of three directors?
a. 251
b. 501
c. 751
d. 334
One type of restraint of trade is a covenant not to compete.
a. True
b. False
The most uncommon type of duress involves the use of physical compulsion.
a. True
b. False
Market share greater than what percentage generally indicates monopoly power?
a. 25%.
b. 30%.
c. 50%.
d. 75%.
In the case of Hadleyv.Baxendale, the plaintiff was seeking damages for:
a. restitution.
b. lost profits.
c. failure to convey land.
d. failure to specifically perform a contract.
Sam wants to sell his Golden Retriever to Jordan. Sam tells Jordan that the dog is three
years old and that he will point, back, and retrieve. Although the dog is three years old
and will point at birds, he will not back (honor another dog’s point). Jordan relies on
these statements and purchases the bird dog. The buyer has most probably been a victim
of:
a. duress.
b. undue influence.
c. fraud in the inducement.
d. fraud in the execution.
a. Under the common law, when can an injured party seek the remedy of specific
performance?
b. How does the Code change the common law rule?
c. Compare and contrast the remedies of replevin and specific performance.
Gerard, an adult, contracts with Communiserve to purchase, in installments over a
period of five years, a very large quantity of services that he will probably never need.
Although Gerard understands what he is doing when he enters the contract, he has a
mental condition that impairs his ability to act in a reasonable and rational way. Under
the Restatement:
a. Gerard’s contract is voidable at his option while it is entirely executory.
b. Gerard cannot avoid the contract if Communiserve had no reason to suspect Gerard’s
incompetency.
c. Gerard cannot avoid the contract if the terms are fair.
d. Gerard can only avoid the contract if the terms are grossly unfair.
A negotiable electronic document of title running to the order of a named person or
bearer is negotiated by delivery which, according to Revised Article 7 of the UCC,
means a voluntary transfer of control.
a. True
b. False
“Punitive damages” is a term referring to damages that will merely compensate victims
for the harm they have suffered, but that will cost defendants more money than they
have.
a. True
b. False
Dayton Hardware Store and Leighton Bank enter a loan agreement in which Leighton
agrees to lend $10,000 on the security of Dayton’s existing store equipment. A security
agreement is executed and a financing statement is filed, but no funds are advanced. A
week later, Dayton enters a loan agreement with Ramos Bank in which Ramos
agrees to lend $10,000 on the security of the same store equipment. The funds are
advanced, a security agreement is executed, and a financing statement is filed. A week
later, Leighton Bank advances the agreed $10,000. Dayton defaults on both loans. In
this case:
a. between Leighton Bank and Ramos Bank, Ramos has priority because it advanced
the funds before Leighton
Bank did.
b. between Leighton Bank and Ramos Bank, Leighton Bank has priority because it was
the first to deal with
Dayton in the matter.
c. between Leighton Bank and Ramos Bank, Leighton Bank has priority because
priority among security interests perfected by filing is determined by the order in which
the financing statements were filed.
d. neither bank needed to check filings of financing statements because the filings had
no impact on which bank had priority.
International law is derived from the Code of Federal Regulations and international
legal tribunals.
a. True
b. False
A landlord has an obligation to repair premises:
a. under the common law if the lease has no related provision.
b. and, if the landlord assumes that duty in the lease, the breach of the duty entitles the
tenant to abandon the premises and refuse to pay rent.
c. including lobbies, stairways, elevators, and other common areas.
d. All of these.
Sara holds 1,000 shares of stock in B B & B, Inc., which she purchased, based upon the
financial statements that Adam had prepared. She now realizes that the statements were
false and wants to sue Adam for common law fraud. What is Adam’s best defense?
a. Sara lacks privity of contract.
b. Adam gave a broad disclaimer as part of the financial statement.
c. The false statements were immaterial.
d. B B & B contributed to the misstatement.