A liquidation proceeding was traditionally known as straight bankruptcy.
Answer:
Once made, anticipatory repudiation can never be withdrawn.
Answer:
As under the Fair Credit Billing Act, operators under the Electronic Funds Transfer Act
are given a maximum of 90 working days to investigate errors or provisionally recredit
the customer’s account.
Answer:
If an employee commits a tort while acting within the scope of employment, the
corporation is not liable.
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A negligent unilateral mistake is always a ground for rescission.
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The seller may recover the contract price from the buyer when he/she manufactured
goods especially for the buyer and those goods are not usable by anyone else.
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Under the rule against perpetuities, when a private trust is created, the beneficiary must
be known at the time.
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The corporation is viewed as the alter ego of the shareholder-manager when
shareholders mix their personal dealings and corporate transactions as if all were
personal.
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Fire insurance contracts generally cover losses only from hostile fires.
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NEPA requires a federal agency to consider the environmental impact of a project
before the project is undertaken.
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Under utilitarianism, an action is ethical only if the benefits to society outweigh their
costs.
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A security interest is not legally enforceable against a debtor until it is attached to a
particular item or items of the debtor’s property
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Article 2A of the UCC deals exclusively with leases of goods.
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Anyone who entrusts goods to a merchant who regularly deals in such goods gives that
merchant the power to give good title to a buyer in the ordinary course of business.
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If a holder has indorsed a negotiable instrument restrictively indorsed, the person who
pays must comply with the restrictive indorsement to be discharged.
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The UCC is more flexible than the common law.
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Every state has adopted the Uniform Commercial Code.
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If the buyer wrongfully rejects goods, he is liable to the seller for breach of the sales
contract.
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To amount to a nuisance, one’s use of property must unreasonably interfere with
another person’s ability to use or enjoy his/her own property.
Answer:
If Megan hires Pablo to paint her portrait, Megan is the owner of the painting.
Answer:
Children, born or adopted after a will has been executed are called:
A. presumptive heirs.
B. pretermitted children.
C. illegitimate children.
D. nuncupative heirs.
Answer:
Alex had planned to murder his business partner, Bard, and acquire Bard’s shares.
When he performed the deed, he was in a highly intoxicated state. The court:
A. will hold him incapable of forming intent and give a bail.
B. will hold him capable of forming intent and punish him for first-degree murder.
C. will hold him incapable of forming intent and punish him for second-degree murder.
D. will hold him capable of forming intent and give him a death penalty.
Answer:
A real estate broker was hired as a rental agent for a house. The house burnt down due
to accidental causes. In this circumstance:
A. the agency automatically ends as the subject matter of the agency is destroyed.
B. the agency is automatically transferred to other properties of the principal.
C. the agent is liable to be compensated even if the aim to the agency has not been
accomplished.
D. the agency may be terminated only by mutual consent.
Answer:
If a corporation has only one type of stock, it is:
A. common stock.
B. preferred stock.
C. cumulative stock.
D. convertible stock.
Answer:
An interest in fixtures that a creditor obtains to secure performance of an obligation is
called a(n):
A. ownership equity.
B. financial leverage.
C. security interest.
D. income trust.
Answer:
In a deed of trust transaction, when a trustee sells the property and the proceeds
generate a surplus:
A. it is paid to the borrower.
B. it is paid to the lender.
C. it is paid to the trustee.
D. it goes to the state.
Answer:
Under act utilitarianism:
A. an ethical decision is one that minimizes utility for society as a whole.
B. each person has an equal right to basic rights and liberties.
C. the action is viewed as part of a rule or habit.
D. the decision maker considers each action separately.
Answer:
The significant difference between a joint venture and partnership is that:
A. joint venturers sometimes are held to have less implied and apparent authority than
partners.
B. a joint venture relates to a continuing business, and a partnership relates to a single
enterprise.
C. the requirement for joint ventures is more formal in comparison with partnership
agreements.
D. joint ventures unlike partnership agreements come into existence only when there is
an express contract.
Answer:
Remedies under “lemon laws” include:
A. suing for injunctive relief or the seizure of products to enforce various provisions of
the law.
B. return of the purchase price of the product, even if the defect is minor and not
covered by a warranty.
C. replacement of the defective product with a new one.
D. offering extra credit benefits for the purchase of a new product from the same
manufacturer.
Answer:
An executory contract is a contract:
A. which has been fully performed by all parties.
B. where executive privileges are implied.
C. which has not yet been fully performed by all parties.
D. where one party performs on the basis of a promise made by the other.
Answer:
A candy company merging with a greeting cards company is a:
A. vertical merger.
B. conglomerate merger.
C. product-extension merger.
D. market-extension merger.
Answer:
An employee appointed within an organization to settle disputes is called a(n):
A. mediator.
B. arbitrator.
C. ombudsperson.
D. private judge.
Answer:
Dru and James are married and own real property under a tenancy by the entirety. This
means that:
A. upon the death of either, the property passes automatically to the surviving spouse.
B. they are tenants in common with the added requirement of marriage.
C. either spouse can transfer property by will if the other is still living.
D. the tenancy cannot be severed even in case of a divorce.
Answer:
The required insurable interest in life insurance contracts must exist:
A. before the loss occurs.
B. at the time the loss occurs.
C. at the time the policy was issued.
D. throughout the term of the policy.
Answer:
The Federal Trade Commission:
A. requires franchisors to explain the termination, cancellation, and renewal provisions
of the franchise contract.
B. requires franchisors to disclose the number of franchisees terminated in the last five
years.
C. prohibits certain contract provisions and franchisee practices thought to be unfair to
franchisors.
D. requires important restrictions on franchisees to be included in the agreement.
Answer:
Under the implied warranty of quiet enjoyment, a landlord:
A. can enter the leased property during the term of the lease.
B. may not enter the leased property during the term of the lease.
C. can enter the leased property anytime as long as he/she does so quietly.
D. may not interfere with any matter concerning the property.
Answer:
The Wagners entered into a contract with Crummy Construction under which Crummy
agreed to do $33,000 worth of remodeling of the Wagner home. Crummy agreed that
the contract price could be paid in installments, and that to secure these payments,
Crummy would take out a second mortgage on the Wagner home. The day after signing
the contract, the Wagners had second thoughts and immediately hand-delivered a
written notice to Crummy stating that they wanted to rescind the contract. Can they do
so?
A. Yes, under the rescission right of the Truth in Lending Act.
B. No, because the transaction involved more than $25,000 and was, therefore, not
covered by the rescission right in the Truth in Lending Act.
C. No, because the rescission right in the Truth in Lending Act does not apply to
transactions in which the creditor takes a mortgage to secure the loan.
D. Yes, under the rescission right provided by TILA as their house wasn’t used as
collateral.
Answer:
Which of the following is TRUE of the Takings Clause?
A. It is triggered by the power of eminent domain.
B. It requires the government not to pay private property owners any compensation.
C. It is triggered by the power of just domain.
D. It requires the government to buy private property for private developers.
Answer:
Which of the following is TRUE for air pollution controls on transportation provided
by the Clean Air Act?
A. Under the Clean Air Act, no manufacturer may sell vehicles subject to emission
standards without prior certification from the EPA that the vehicles meet the required
standards.
B. The 1970 Clean Air Act required a reduction by 1976 of 60 percent in the amount of
the carbon monoxide and hydrocarbons emitted by automobiles.
C. To satisfy the requirements of the 1970 Clean Air Act, manufacturers could rely on
already existing technology to meet the pollution control standards.
D. The 1970 Clean Air Act does not provide for the regulation and registration of fuel
additives such as lead.
Answer:
An employee with special skills who has agreed not to work for a competitor may be
enjoined from breaching his or her contract and working for that competitor by:
A. a mandatory injunction.
B. liquidated damage provisions.
C. a prohibitory injunction.
D. nominal damage provisions.
Answer:
When the seller does not give the buyer instructions concerning the disposal of the
goods upon rejection and whether the goods are not perishable, the buyer:
A. can resell the goods for the seller, but cannot keep a commission on the sale.
B. cannot reship them to the seller without the seller’s instructions.
C. can resell them for the buyer’s benefit.
D. can give reasonable time for the seller to reclaim the goods.
Answer:
Adam offered to buy automobile batteries from Ben. Adam’s purchase order was
complete with respect to all material terms except price, which was omitted. If Ben
accepts Adam’s offer, and the price of automobile batteries is well established in the
industry, does a contract exist between Adam and Ben?
A. No contract was formed between Adam and Ben.
B. A contract was formed between Adam and Ben only if it can be proved that the
parties intended to enter a contract and orally discussed the price.
C. A contract was formed between Adam and Ben, but the price will be treated as a
proposed addition to the contract which must be accepted by both parties.
D. A contract was formed between Adam and Ben even though the price term was
omitted.
Answer:
A common carrier is liable for loss of or damage to property if:
A. the damage was caused by the goods themselves.
B. the damage was caused by an act or order of the government.
C. the goods were damaged because of the shipper’s negligence.
D. the goods entrusted to it are stolen by some unknown person.
Answer:
Which of the following statements is TRUE for Consumer Product Safety Act (CPSA)
of 1972?
A. This act can regulate consumer products but does not have the power to ban any
products.
B. The Consumer Product Safety Commission created by it is the main federal agency
concerned with product safety.
C. Its authority covers products such as motor vehicles and equipment, firearms,
aircraft, boats, drugs, cosmetics, and food products.
D. It cannot bring suit in federal district court to eliminate the dangers presented by
imminently hazardous consumer products.
Answer:
Dana rented a studio apartment from Mollie for one year, starting May 5, 1989 to May
5, 1990. Dana did not move out on May 5, 1990. Instead she sent Mollie a check for
$300 stating “June rent”, which Mollie accepted. In this case, Dana is a tenant:
A. at will.
B. at sufferance.
C. with a periodic tenancy.
D. for a term.
Answer:
The employees of a company have been on strike for 30 days which has led to huge
losses for the business. The employees complain about the increased accidents in the
company and lack of safety measures undertaken by the management. The management
in turn blames the employees for negligence. Owing to loss of business and wages, both
parties want to settle the dispute but have been unable to negotiate successfully; the
main problem being feelings of resentment and distrust. Both parties want to settle out
of court but do not want the third party to whom the dispute is submitted to decide the
outcome. Which method of dispute settlement is best suited to them? Why?
Would the method change if the parties were ready to accept awards by third parties but
were not particular about the reasons of awards?
Answer:
Briefly discuss the constitutional safeguards of “pure” or political speech.
Answer:
Answer:
Explain the process followed by the courts in accordance with the Chevron Doctrine to
determine whether to sustain an agency’s interpretation of the statutory scheme it is
charged with administering.
Answer:
An instrument states, “Subject to Approval of Title, Pay to the Order of Holly
Rosenberg, $1,999. 00.” Is the instrument negotiable?
Answer:
Answer:
What are the factors to be considered in the creation of an LLC?
Answer:
Describe the provisions of the Electronic Funds Transfer Act.
Answer:
Explain with an example how the parol evidence rule is a potential source of danger for
parties who reduce their agreements to written form.
Answer:
Explain the difference between deontological and teleological ethical theories. Give an
example of each.
Answer: