The concept of sovereign immunity provides that a nation’s judicial branch should not
question the validity of the
actions a foreign government takes within its own borders.
a. True
b. False
After a breach by the seller, buyer may replevy the goods that have been identified to
the contract if:
a. he acts within 30 days.
b. he cannot, after a reasonable effort, buy replacement goods.
c. the seller is insolvent.
d. the goods have an unsatisfied security interest.
A person may employ deadly force to protect his property.
a. True
b. False
The newly formed Bright Partnership cannot commence business until it meets its
state’s required minimum amount
of capitalization.
a. True
b. False
A drawee bank “accepts” a check by certification.
a. True
b. False
If a statute establishing a reasonable person standard of conduct is found to be
applicable to a fact situation, then the courts will hold that an unexcused violation of
that statute which causes an injury to another is:
a. strict liability.
b. resipsaloquitur.
c. negligence perse.
d. assumption of the risk.
An heir of a person who dies receives title to the property of the decedent by reason of a
gift.
a. True
b. False
Bart sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11
a.m. on Tuesday, Carla delivers an acceptance to Federal Express, but due to an error,
the letter is not sent out by the company until Wednesday at 8 a.m. At what time does
the law consider the acceptance to be effective?
a. At 10 a.m. on Tuesday
b. At 11 a.m. on Tuesday
c. At 8 a.m. on Wednesday
d. At the time Bart receives the letter
A person who has made a financially unsound contract may be relieved from
performance under the doctrine of commercial impracticability.
a. True
b. False
Jennifer purchased a used refrigerator from her next-door neighbor, a mail carrier.
When she took it home and plugged it in, the refrigerator burst into flames. The seller in
this case is in breach of the implied warranty of merchantability.
a. True
b. False
A company may not initially issue all the shares authorized by the corporate charter. It
can hold back shares.
a. True
b. False
Tony is fraudulently induced to issue a check to Rita. Tony has:
a. a claim to ownership of the check.
b. a defense to Rita’s demand for payment.
c. neither a claim nor a defense.
d. both a claim and a defense.
The debtor who grants a mortgage is the mortgagee.
a. True
b. False
Philip has been in training for several months and now plans to run in the
school-sponsored, ten-mile, fun run mini- marathon. He completes and signs an entry
blank which contains the statement, “I hereby agree to hold the sponsors harmless for
any injury sustained as a result of participation in this event no matter how such injury
may be caused.”
a. What is the legal term for this clause in the agreement?
b. Is the clause valid and legally enforceable? Explain its legal effect.
The Clause protects against impairing the charter of a corporation formed under a state
incorporation statute.
a. Supremacy
b. Commerce
c. Contract
d. Takings
If an agreement is not voluntary and knowing, it will be either void or voidable.
a. True
b. False
Silence can never be an acceptance.
a. True
b. False
A defamatory communication that is spoken or oral is designated libel.
a. True
b. False
Lostowne was economically depressed until Sally’s Firecracker Corp. moved their
factory there. Test explosions and the acrid smell of sulfur were interfering with Bob’s
enjoyment of the old family home. Bob sues Sally for nuisance and motions the court to
issue an injunction to close down the factory. In determining whether the injunction is
appropriate the court will:
a. consider the public interest in the jobs created by Sally and the economic upturn in
Lostowne.
b. consider the gravity of harm to Bob and his family.
c. consider the social value of Sally’s business.
d. All of these.
The right of the buyer to recover from an insolvent seller the goods in which he has a
special property interest existed at common law before being included in the Code.
a. True
b. False
A promise against public policy:
a. can be contractual.
b. is enforceable if the parties have capacity and mutual assent and they exchange
consideration.
c. has no legal remedy available for breach.
d. must be in writing to be enforceable.
The “rule of reason” requires the courts to balance the anticompetitive effects of
behavior in restraint of trade with its positive effects on competition.
a. True
b. False
The warranty of title for the sale of goods found in Article 2 of the Code:
a. may be excluded with the phrase “as is.”
b. is labeled as an implied warranty.
c. may not be excluded or modified by the seller.
d. will apply regardless of whether it is provided for in the contract unless the parties
have specifically excluded it or it is excluded by certain circumstances.
In a civil case, as few as six jurors are permitted, but there must be 12 jurors in a
criminal case.
a. True
b. False
Unless otherwise agreed, an agent making a contract for an unidentified principal is not
a party to the contract.
a. True
b. False
The General Agreement on Tariffs and Trade is now called the WTO.
a. True
b. False
A director’s right of inspection of corporate books and records is:
a. similar to a shareholder’s right to inspect.
b. considerably broader than a shareholder’s right, but is still subject to limitations.
c. narrower than a shareholder’s right.
d. unnecessary for most directors, since the books and records relate to officers’ duties,
not directors’ duties.
An uncommon but possible way to obtain title to property is by adverse possession.
a. True
b. False
Emily would like to become an administrative law judge. How should she go about
exploring this employment option?
a. She should fill out an application for federal employment pursuant to the federal civil
service merit selection rules.
b. She should talk to her congressional representative and ask for a recommendation.
c. She should contribute a substantial sum of money to the President’s political party so
that the President will consider appointing her to such a job.
d. She should file for election to the job during the next election year.
The UCC provides that if a court as a matter of law finds a contract for the sale of
goods or a clause of such a contract to have been unconscionable at the time it was
made, the court may:
a. refuse to enforce the contract.
b. enforce the part of the contract that is not unconscionable.
c. limit the application of any unconscionable clause in order to avoid an
unconscionable result.
d. All of these.