Each state has a constitution that is similar to the U.S. Constitution in the design of the
government it provides.
Answer:
The parties had to rely on the testimony of third persons who were often paid witnesses
or friends, and false testimony was common in the original statute of frauds adopted in
England in 1677.
Answer:
A defendant’s actions must be outrageous in order to be found guilty of intentional
infliction of emotional distress.
Answer:
A sales manager for a corporation would probably have authority to hire sales agents
for the corporation and such agents can also act as subagents.
Answer:
A partner is free to engage in activities that are in competition with the partnership.
Answer:
In a majority of cases, the implied warranty of habitability applies to residential
property and to property leased for commercial uses.
Answer:
Under the UCC, only the buyer can demand assurance from the seller that the contract
will be performed. If such assurances are not given within 30 days, then the seller is
considered to have repudiated the contract.
Answer:
If a person receives a check that has been signed but the space where the amount of the
check is to be written is blank, then he/she cannot be a holder in due course of that
check.
Answer:
Oral evidence may be introduced to help resolve ambiguities in a written contract.
Answer:
If the seller fails to deliver the goods, the buyer may cancel the contract.
Answer:
Annie buys a car from Honest Bob’s Motors. She then sells the car to Michael, who
agrees to make the remaining payments Annie owes Honest Bob’s. Honest Bob’s is a
creditor beneficiary of Annie, and can therefore recover the balance due from her only,
not Michael.
Answer:
A contract that has been fully performed is an executory contract.
Answer:
If the seller fails or refuses to deliver the goods called for in the contract, the buyer has
the right to cover.
Answer:
If a seller wishes to be relieved of the responsibility for implied warranties, the sales
contract must clearly provide that the parties did not intend the implied warranties to
become part of the contract.
Answer:
When a sales contract obligates a buyer to purchase a seller’s output of a certain item
and the good faith outputs are grossly disproportionate to prior normal outputs, the
UCC requires that the buyer purchase the disproportionate amount.
Answer:
In the partnership agreement, the partners also may provide for expelling a partner.
Such a provision eliminates the right the expelled partner would otherwise have to insist
on liquidation.
Answer:
Under the UCC, the duties of either the buyer or the seller generally may be delegated
to someone else.
Answer:
Partners have the right to sell, mortgage, or devise to an heir any individual item of the
firm’s property.
Answer:
Ben makes an agreement with Bob for Bob to steal Professor Smith’s laptop computer.
The agreement between Ben and Bob is:
A. voidable.
B. void.
C. valid.
D. unenforceable.
Answer:
The advantages of sole proprietorship and partnership taxation include:
A. The tax burden can be lessened if the shareholders are active in the operation of the
business.
B. The tax burden experienced by shareholders can be reduced by keeping the dividend
rate constant.
C. The owners can reduce their tax liability on their other income by the amount of they
lose individually.
D. Exemption of privilege taxes for doing intrastate business in another state.
Answer:
According to the MBCA, which of the following may be included in the articles of
incorporation?
A. The name of the corporation.
B. The name and address of each incorporator.
C. The number of shares of capital stock that the corporation shall have authority to
issue.
D. The duration of the corporation.
Answer:
Bob retained Wanda, a CPA, to prepare his federal income tax return. In the course of
preparing the return, Wanda had several conferences with Bob, during which
conferences she made notes. In addition, Bob furnished Wanda with a number of
documents concerning transactions in which Bob had been involved. The IRS
ultimately brought suit against Bob, claiming that he had underpaid his actual tax
liability by a substantial amount. The IRS arranged for a subpoena to be served on
Wanda. The subpoena purported to require her to produce, in court, Bob’s documents
and the notes she had made during conversations with Bob. Wanda sought to resist the
order on the basis that the conversations were held in confidence, for the purpose of
preparing Bob’s tax return, and that the notes were made and documents were delivered
in furtherance of the same purpose. Wanda claimed, therefore, that what the IRS sought
was privileged information and that since neither she nor Bob had waived the privilege,
she should not have to produce what the IRS sought. Is Wanda’s argument sound? Why
or why not?
Answer:
A debtor may rescind a contract under the Truth in Lending Act:
A. only if the debtor’s home is used as collateral.
B. only in the instance of a first mortgage on his home.
C. by way of oral notification to the creditor.
D. within 30 days after the purchase on credit.
Answer:
Douglas obtained a $100,000 insurance policy on his warehouse. The policy contained
an 80 percent coinsurance clause. A fire totally damaged the building that had a fair
market value of $250,000 at the time of the loss. How much will Douglas recover from
his insurance company?
A. $80,000
B. $100,000
C. $125,000
D. $250,000
Answer:
The law that seeks to prevent certain practices that might reduce competition and thus
increase prices is:
A. tax law.
B. consumer law.
C. antitrust law.
D. contract law.
Answer:
Laura Riding offered to sell Louis Zukofsky a tract of land. The offer was complete
and certain as to all material terms. The offer stated that a telegraphed acceptance was
required. Within a reasonable time, Louis telephoned Laura to accept. Which is a TRUE
statement about this situation?
A. Louis can use promissory estoppel to enforce a contract here.
B. As this case involved a sale of goods, Louis’s telephone call would be a good
acceptance.
C. Louis has not accepted and there is no contract.
D. Louis has accepted because a telephone call is a reasonable means of acceptance.
Answer:
Which of the following is correct regarding the definition of “Merchant” by UCC?
A. It sometimes imposes a higher standard of behavior on merchants than
non-merchants.
B. It always imposes the same standards on merchants and non-merchants.
C. It regards everyone covered by the UCC as a merchant.
D. It deals only with nonprofessional sellers.
Answer:
When the trademark is a descriptive term:
A. courts routinely treat the term as distinctive to legal merit.
B. protection exists only if a claimant proves that the term conveys to consumers a
secondary meaning of association with the claimant.
C. courts are unwilling to afford the term trademark protection.
D. it qualifies for trademark protection automatically and functions as the common
descriptive name of a product class.
Answer:
Under Article 9 of the UCC, in which order are proceeds from the sale of collateral by
the creditor to be distributed?
A. First, any expenses of repossessing the collateral are paid. Second, the proceeds are
used to satisfy the debt. Third, any other junior liens are paid. Finally, if any proceeds
remain, the debtor is entitled to them.
B. First, the proceeds are used to satisfy the debt. Second, junior liens are paid. Third,
any expenses of repossessing the collateral are paid. Finally, if any proceeds remain, the
debtor is entitled to them.
C. First, the proceeds are used to satisfy the debt. Second, any expenses of repossessing
the collateral. Lastly, the debtor is entitled to remaining proceeds. Finally, if any
proceeds remain, the debtor is entitled to them.
D. First, the junior liens are paid. Second, any expenses of repossessing the collateral
are paid. Third, the proceeds are used to satisfy the debt. Finally, if any proceeds
remain, the debtor is entitled to them.
Answer:
Tim stole from Wes a check payable to the order of Wes. Tim forged Wes’s signature
and presented the check for payment at American Bank, which honored the check. If
Wes sues American Bank for the amount of the check, under what theory, if any, can
Wes recover the funds from the Bank?
A. Conversion
B. Fraud
C. Unfair and deceptive practices
D. Fictitious payee rule
Answer:
If a professor charges extra fees to take a regularly scheduled class, it would not be
taken as a consideration because:
A. such an act is prohibited by promissory estoppels.
B. such an act would violate the preexisting duty rule.
C. you have already paid your tuition fee which also includes the test fee.
D. such an act is a tort.
Answer:
_____ protects people from arbitrary government interference with their life, liberty, or
property rights.
A. Procedural due process
B. Substantive due process
C. Equal Protection Clause of the Fifteenth Amendment
D. Due process clause of the Sixth Amendment
Answer:
Chuck Olson, aged 17, bought a used car from Bobby Duncan on September 15, 2006,
agreeing to pay Duncan $200 a month for 12 months. On October 6, 2006, Olson was
involved in an accident that damaged the car. On October 7, 2006, Olson told Duncan
he wanted to disaffirm the contract for the purchase of the car. Olson attained the age of
majority on October 8, 2006. If Duncan sues Olson, in most states he will:
A. win, because Olson did not disaffirm until after reaching the age of majority.
B. win, because Olson was unable to return the car.
C. lose, even though Olson cannot return the car.
D. lose, because Olson did not ratify the contract on the day he attained majority.
Answer:
Which of the following statements is TRUE for consequential damages?
A. Liability for it not limited by an agreement between the parties.
B. It cannot be enforced if it is unconscionable.
C. It does not allow for recovery of damages caused by consumer goods.
D. It is enforced even if found to be unconscionable.
Answer:
A prospectus:
A. makes forecasts of the annual return on a company’s common stocks.
B. is the basic selling document of the 1933 Act registered offering.
C. includes statements that tout the securities.
D. is a public offer by a bidder to purchase a target company’s equity securities.
Answer:
Before a corporation comes into existence:
A. it can be liable as principal.
B. it cannot ratify a contract made by the promoter.
C. it is illegal to pay promoters for their services.
D. it is liable if the board acts to adopt the contract.
Answer:
When a promisor appoints another person to perform their duties under a contract:
A. it is called an assignment.
B. it is called a delegation.
C. it creates an incidental beneficiary.
D. it creates a donee beneficiary.
Answer:
Under the Truth in Lending Act, “finance charge”:
A. includes all costs related to the extension of credit.
B. includes all costs related to the extension of credit except for fees for credit reports.
C. includes only interest rates but not any other credit charges.
D. does not include loan fees and fees for credit reports.
Answer:
Both federal and state laws spell out the specifics of cybercrime. According to these
laws:
A. accessing the services of a commercial service provider without paying fees is a
crime.
B. altering or destroying data stored in another person’s computer is not considered
illegal.
C. a corporation is not liable for the online activities of its employees.
D. only an individual may face liability based on the use of electronic communication;
corporations are out of their purview.
Answer:
The federal government’s right to regulate business is derived from the _____ of the
U.S. Constitution.
A. Commerce Clause
B. Separation Clause
C. Due Process Clause
D. Renegade Clause
Answer:
If a landlord and a tenant agree that the tenant will pay rent at regular intervals such as
on a month-to-month basis, the agreement is a ___.
A. tenancy at will
B. tenancy at sufferance
C. periodic tenancy
D. tenancy for a term
Answer:
Briefly explain the right of subrogation.
Answer:
Explain the difference between an “assignment” and a ‘sublet.”
Answer:
Explain the difference between a regulatory and revenue-raising statute.
Answer:
Dax, 15, bought a diamond ring from a local jewelry store. The jeweler was aware of
his age. He made a partial payment on the ring of $100. Ten months later, Dax’s
girlfriend broke off the engagement, but refused to return the ring. Dax asked the
jeweler to repossess the ring, but the jeweler took no action. Dax sought to disaffirm the
contract for the ring, and the jeweler argued that he could not do so without returning
the ring. Can Dax disaffirm?
Answer:
How does one become a “holder in due course”?
Answer:
Answer: