1) rebecca, a minor, rented an apartment from jones for a period of one year when she
had no place to stay. she disaffirmed the contract after four months, though she paid
rent only for the first two months. which of the following is true of the case?
a.jones can recover the unpaid rent for two months.
b.jones can recover rent for the whole year because he has suffered a loss.
c.rebecca need not pay any rent because she has disaffirmed the contract.
d.rebecca is not liable to pay any rent if she can prove that she is a minor.
2) the _____ amendment protects against compelled testimonial self-incrimination by
establishing that [n]o person . . . shall be compelled in any criminal case to be a witness
against himself.
a.fifth
b.fourth
c.sixth
d.eighth
3) which of the following is an accurate statement about limitations on assignment and
subleasing in commercial lease agreements?
a.public policy supports limitations on assignment and subleasing; therefore, such
limitations are almost always upheld.
b.ambiguous contract language limiting assignment of leases is narrowly construed and
is usually resolved against the landlord.
c.provisions requiring a landlords consent to assignment are almost never upheld by the
courts.
d.total prohibitions against assignment can be enforced, and are favored under the law.
4) which of the following is an option for the secured creditor when the debtor defaults?
a.transfer the collateral on to another creditor.
b.forget the collateral, and sue the debtor on his note or promise to pay.
c.sell the collateral and keep the surplus if any.
d.repossess the collateral and conduct a public sale without the knowledge of the debtor.
5) why does a rejection by the offeree terminate his power to accept the offer?
a.it indicates his inability to perform the contract.
b.it indicates that the offeree is uninterested.
c.it allows the offeror to approach a different offeree.
d.it indicates a lack of intent making any future contract illegal.
6) an employee cannot sue her employer for a violation of _____.
a.osha
b.flsa
c.erisa
d.fmla
7) the fraud-on-the-market-theory used in some cases to establish liability under rule
10b-5 of the securities act of 1934 is an indirect way of establishing which of the
following elements of proof?
a.the defendant acted with negligence.
b.the defendant acted with scienter.
c.the plaintiffs reliance.
d.the plaintiffs due diligence.
8) a distinguishing feature between the making of an inter vivos gift and the creation of
a trust is that:
a.a gift may be made orally whereas a trust must be in a signed writing.
b.a gift is irrevocable whereas a trust may be revoked in certain cases.
c.in order to create a valid trust, the creator must receive some form of consideration.
d.the beneficiary of a trust must be notified of the trusts creation.
9) winston contracts to sell a plot of land called blackacre to paris for $500,000.
winston breaches the contract and paris sues him. blackacres reasonable market value at
the time of the breach was $525,000. paris can recover:
a.nothing, for he hasnt really suffered any harm.
b.nothing, because specific performance is his only remedy here.
c.only $25,000.
d.the entire $500,000.
10) which of the following is correct concerning the election of directors?
a.straight voting is the cleanest way to allocate equity ownership of the corporation
among shareholders.
b.in cumulative voting, each share has one vote for each new director to be elected.
c.cumulative voting can prevent harmful coalitions in close corporations.
d.under straight voting, the voting power of minority shareholders is increased.
11) the fdcpa requires a collector to give a debtor certain information about the debt:
a.within ten days of the collectors first communication with the debtor.
b.within ten days of the debtor receiving the credit amount.
c.within five days of the collectors first communication with the debtor.
d.within five days of the debtor receiving the credit amount.
12) which of the following is true of the check 21 act?
a.it allows banks to handle limited number of checks electronically.
b.it has made it mandatory for banks to return the canceled checks to the customers.
c.it authorizes banks to transform information they receive in electronic form back into
a paper copy of the check.
d.it requires that banks keep the customers original checks for a specified period of
time.
13) in general, which of the following is least likely to unconstitutionally burden
interstate commerce?
a.a state law requiring that all state vehicles burn gasoline produced and refined within
the state.
b.a state law imposing tougher purity standards on food imported from out of state than
from food produced in-state.
c.a state law requiring in-state liquor distillers to post the prices at which they will sell
in-state, and not to exceed those prices when they sell in other states.
d.a state tax on gasoline that makes it more expensive for trucking companies to route
their trucks through the state.
14) an s corporation:
a.must have at least 100 shareholders.
b.may have only one class of shares.
c.has the ability to attract capital, more than the limited partnership.
d.has the disadvantage of its shareholders being double taxed at the federal tax level.
15) the __________ act aids victims of identity theft by allowing them to file identity
theft reports with consumer reporting agencies.
a.fair credit billing
b.equal credit opportunity
c.fair and accurate credit transactions
d.fair credit reporting
16) archibald and priscilla, an unmarried couple, co-owned a house. priscilla
automatically became the owner of the house upon archibalds death. what kind of a
co-ownership did they have?
a.tenancy in common
b.tenancy by the entirety
c.joint tenancy
d.cooperative ownership