Once a Chapter 13 plan has been confirmed, it may:
a. be modified at the debtor’s request but only if the trustee agrees.
b. be modified only if all unsecured creditors agree.
c. not be modified.
d. be modified at the request of the debtor, the trustee, or a holder of an unsecured
claim.
An accountant’s records, including the data-gathering process followed and the
information and conclusions drawn therefrom, are known as:
a. tax returns.
b. working papers.
c. rough drafts.
d. privileged communication.
The Equal Credit Opportunity Act would not prohibit which of the following?
a. First Bank refuses to extend credit to females.
b. First Bank refuses to extend credit to men over 70 years of age.
c. First Bank refuses to extend credit to people with incomes below $10,000.
d. First Bank refuses to extend credit to people from Italy.
Karen decided to sell her stair step exerciser, because she wasn’t using it as much as she
thought she would. Her friend Lydia bought it from Karen for $100. The first day that
Lydia used the exerciser, it fell apart, injuring Lydia’s ankle. In this situation:
a. Lydia can sue Karen for breach of the warranty of merchantability, because the
exerciser is not fit for the ordinary purpose intended.
b. Karen can sue the manufacturer for breach of the warranty of merchantability,
because she was the original buyer.
c. Lydia cannot sue Karen for the warranty of merchantability because Karen is not a
merchant.
d. Lydia cannot sue Karen, because they are not in privity of contract.
Trina, while 17, purchases a laptop computer. Discuss the implications of her actions as
to whether she can disaffirm the contract of purchase if she: (a) tries to sell the
computer one year later; (b) continues to use the computer for eighteen months; or (c)
has not yet made all of the payments when she turns 18, but continues to make monthly
payments.
Paul, a contractor, has a contract to build a new office building for Bill. The contract
contains a provision requiring Paul to furnish a certificate of occupancy from the
building inspector before Bill is required to pay. This provision is:
a. an express condition.
b. an implied-in-fact condition.
c. an implied-in-law condition.
d. a condition subsequent.
ABC Bank sent Joanne, a depositor, her January statement on January 31. Within what
length of time after this date will Joanne have to notify ABC bank of any instruments
containing alterations or unauthorized signatures included in her January statement?
a. Ten days.
b. A reasonable period of time, not to exceed thirty days.
c. Sixty days.
d. Three years.
Smallville was economically depressed until Sally’s Firecracker Corp. moved its factory
there. Test explosions and the acrid smell of sulfur then interfered with Bob’s enjoyment
of the old family home. Bob sues Sally’s for nuisance and seeks a court-ordered
injunction to close down the factory. In determining whether the injunction is
appropriate, the court will:
a. “balance the equities.”
b. consider the gravity of harm to Bob and his family.
c. consider the public interest in the jobs created by Sally’s and the economic upturn in
Smallville.
d. All of the above.
a. What is a marketable title?
b. What is the implied warranty of habitability?
c. Alice buys a home in which she plans to live with her family. After she moves in,
everyone in the family becomes very ill. Eventually, they trace the source of the illness
to chemicals in the cabinets and walls of the home. What can Alice do? Explain.
Elmer has been a faithful worker at the Mid-America Manufacturing Company for over
thirty years. One day when he comes to work, he gets called into the foreman’s office
and is told that the company has decided to lay off all of its 250 current employees and
move the plant to Mexico just south of the Texas border.
A promise or order is unconditional unless it states that:
a. there is an express condition to payment.
b. the promise or order is subject to or governed by another writing.
c. rights or obligations concerning the order or promise are stated in another writing.
d. All of the above.
The FTC has issued three policy statements addressing the meaning of unfairness and
has provided that an injury is unfair if:
a. when applying a cost-benefit analysis to the situation, the costs are lower than the
benefits to consumers or competition.
b. it is substantial and not outweighed by any benefits to consumers or competition.
c. it is one that consumers themselves could not reasonably have avoided.
d. Both (b) and (c).
Which of these elements determine the existence of a bailment?
a. A separation of ownership and possession of the property.
b. A duty on the party in possession to redeliver the property to the owner or to dispose
of it according to the owner’s directions.
c. Neither of the above.
d. Both (a) and (b).
Individuals may use reasonable force to protect individuals, themselves, and their
property. Under the majority rule, reasonable force would mean:
a. deadly force is reasonable to protect property.
b. deadly force is never reasonable to protect property.
c. deadly force if an attack threatens the victim with serious bodily harm.
d. Both (b) and (c).
The Clayton Act deals with which of the following provisions?
a. Supply discrimination.
b. Tying contracts and mergers.
c. Interlocking ties.
d. Monopoly conspiracies.
Which of the following remedies is NOT available for patent infringement?
a. Attorneys’ fees in some but not all cases.
b. An accounting for profits.
c. Treble damages when appropriate.
d. Injunctive relief.
Bill goes to First Bank to get a loan. He signs a note and agrees to repay the bank. What
is the legal term for Bill’s status regarding the note?
a. Payee.
b. Maker.
c. Payor.
d. Drawer.
The Foreign Corrupt Practices Act of 1977 (FCPA):
a. makes it unlawful for an American company or its agents to offer or give anything of
value to a foreign official for the purpose of influencing the official’s acts or decisions.
b. requires that American companies in foreign countries adhere to the same health and
safety standards in that country as they do in the U.S.
c. outlaws American business from engaging in business in countries, which, as
determined by the Department, have governments “repugnant to American law and
social values.”
d. None of the above.
The separation of powers involves:
a. the federal judiciary.
b. the Congress.
c. the executive branch.
d. All of the above.
Landlords are liable for injuries their tenants and others suffer as a result of any
criminal conduct of third parties on the leased premises.
A blind person will be held to the standard of care of the reasonable blind person rather
than that of the reasonable sighted person for purposes of determining negligence.
A corporation is a domestic corporation in the state in which it is incorporated.
In most of the states, a sixteen-year-old who drives a car will be held to the same
standard of care as an adult for purposes of determining negligence.
Lemon laws provide new car purchasers with rights similar to those under the
Magnuson-Moss Warranty Act.
A contract may condition the performance of a party upon the approval of a third party.