According to the CISG, an offer:
A. must be directed to a specific person.
B. must express the quality of the goods to be valid.
C. is not valid, if it impliedly provides means of determining the quantity of the goods.
D. is sufficiently definite, though it lacks the price terms.
Answer:
Bill filed a petition for bankruptcy under Chapter 7 of the Bankruptcy Act. Bill listed,
among others, the following debts: a debt to the National Bank for $10,000 secured by
his 1980 truck, which is valued at $3,500; an unsecured debt to his friend, Frances; a
$500 debt to the IRS for 1989 federal income taxes; and a $500 student loan to the
university which was due one year ago. Under these circumstances:
A. the $500 debt to the IRS is a nondischargeable debt.
B. Frances can claim the debt even without filing a proof of claim.
C. the $500 student loan to the university is a dischargeable debt.
D. the bank can receive preferential payment because the debt owed to it is highest.
Answer:
Which of the following statements is TRUE of the enforcement of warranties?
A. The FTC enforces the disclosure provisions of the warranty act and regulations.
B. Consumers cannot sue the maker of the warranty for failure to fulfill its terms.
C. The FTC enforces the seller’s obligation to make the terms available before or after
the sale.
D. Consumers can sue the manufacturer if the manufacturer offers the warranty, but not
the retailer even if retailer grants warranty.
Answer:
The Code rule that determines when, a person is excused from performing, uses the test
of:
A. impossibility.
B. commercial impracticability.
C. proximate causes.
D. concurrent causes.
Answer:
Under the MBCA, a corporate official who denies a proper demand by a shareholder to
inspect the shareholder list:
A. is liable for a penalty of 10 percent of the value of the shares of the demanding
shareholder.
B. is liable for a penalty of 30 percent of the value of the shares of the demanding
shareholder.
C. is not subject to any liability under the MBCA.
D. is liable for a penalty of 15 percent of the value of the shares of the demanding
shareholder.
Answer:
Legal value, bargained for and given in exchange for an act or promise is called ____.
A. compensation
B. obligation
C. consideration
D. forbearance
A useful definition of consideration is legal value, bargained for and given in exchange
for an act or promise.
Answer:
One of the major advantages of franchising for the franchisor is:
A. the absence of state or federal regulations governing this form of business conduct.
B. the ability to exert considerable control over the distribution of its products without
owning the retail outlets.
C. the enhancement of competition among the retail outlets.
D. is the right to share a trade mark with the franchisee that is well known and/or highly
advertised.
Answer:
Which of the following statements is TRUE for both contributory negligence and
assumption of the risk?
A. They are defenses adopted to ease the harshness of the comparative negligence
system.
B. They are recent defenses to recklessness but not negligence.
C. They are based on the idea that everyone has a duty to exercise reasonable care for
his/her own safety.
D. They are based on the idea that the plaintiff may recover if the defendant had the last
opportunity to avoid harm.
Answer:
Creditor beneficiaries can:
A. sue both the promisor and promisee.
B. sue only the promisor.
C. sue only for payment of money.
D. sue in breach of insurance contracts.
Answer:
A draft is a:
A. two-party instrument.
B. three-party instrument.
C. single party instrument.
D. debit instrument.
Answer:
Dexter Hemingway is the CEO and Todd Bradley is the CFO of Maxwell Inc.
Unknowingly, both signed the financial report for the year 2006-07, which was later
found to be fraudulent and misleading. Can they be held liable for punishment?
A. Under the Sarbanes-Oxley Act, both of them must reimburse the company.
B. Under the Sarbanes-Oxley Act, only the CEO will be liable for punishment.
C. Under RICO, both of them are required to reimburse the company.
D. Under RICO, only the CFO will be liable for punishment.
Answer:
Section 3 of the Clayton Act was designed to attack:
A. licensing arrangements.
B. exclusive dealing contracts.
C. aleatory contracts.
D. interlocking contracts.
Answer:
Tim and Sam entered into a bilateral contract that does not state a time for performance.
In this case the law infers that each party’s performance is a:
A. condition subsequent.
B. constructive concurrent condition of the other party’s duty to perform.
C. constructive condition precedent of the other party’s duty to perform.
D. condition concurrent.
Answer:
For ratification to be effective:
A. the principal cannot be disclosed to the third person.
B. the agent or purported agent must have acted on behalf of the principal.
C. the principal must have had capacity to do the act only at the time of ratification.
D. it is necessary that the principal fully understand the legal significance of all material
facts.
Answer:
A feature of decisional law in common law systems which says that, a court, in making
a decision, should follow the rulings of prior cases that have similar facts is:
A. caveat emptor.
B. ex post facto laws.
C. stare decisis.
D. contra proferentem.
Answer:
Which of the following statements is TRUE about a lease?
A. It was traditionally viewed as the lease of property for residential or commercial
purposes.
B. Federal legislatures have enacted statutes that regulate leased property and the
landlord-tenant relationship.
C. It conveys to the tenant the exclusive right to possess property for a period of time.
D. Doctrines such as unconscionability are not applicable to leases.
Answer:
Which of the following statements is TRUE for the principle of respondeat superior?
A. When an agent commits a tort or crime while working for the principal, the agent is
always personally liable for the consequences of his actions.
B. A principal’s liability under respondeat superior often is called direct liability.
C. If the agent was acting within the scope of the agency when the tort occurred, he is
liable for his own actions.
D. This theory of liability makes the principal responsible without regard to whether the
principal was actually at fault.
Principals often are liable for the torts of their agents under the doctrine of respondeat
superior, which means “let the master answer.” This theory of liability makes the
principal responsible without regard to whether the principal was actually at fault. As
long as the agent was acting within the scope of the agency when the tort occurred, the
principal is liable.
Answer:
Amanda and Janice were cosureties for their friend Haley on a loan contract. When
Haley failed to repay the loan within the stipulated time, Janice paid the whole
obligation as her surety. Janice is now entitled to collect half the amount of liability
from Amanda in accordance with her ___.
A. right to contribution
B. right of subrogation
C. right to reimbursement
D. right to compensation
Answer:
When a general business partnership fails, the partners:
A. lose only their investment.
B. may be required to pay partnership debts from personal assets.
C. can waive their limited liability.
D. are liable for losses equivalent to their own individual contributions.
Answer:
Loud Larry is a popular talk show host who likes to take a confrontational approach to
interviewing his guests. Larry is a smoker. He invites Alice, a well-known anti-smoking
advocate, to be on his show. During the course of the interview, Larry attempts to
demonstrate the harmless effects of secondhand smoke by blowing smoke directly in
Alice’s face. Under these circumstances:
A. Larry may be liable for battery.
B. Larry would not be liable for battery because he did not touch her body.
C. Larry may be liable for false imprisonment.
D. Larry may be liable for defamation.
Answer:
Primary responsibility for enforcing air quality standards lies with:
A. the federal government.
B. the states.
C. local governments.
D. international agencies.
Answer:
Article 2 of the UCC applies to all contracts for the:
A. liquidation of assets.
B. sale of goods.
C. sale of securities.
D. transfer of money between banks.
Answer:
Which of the following is a drawback of technology licensing?
A. The licensee can sever the licensing relationship and become a competitor after
gaining access to the licensor’s technology.
B. The licensee runs the constant risk that the licensor will provide inferior service.
C. Licensing maximizes the physical and financial presence of a business overseas
thereby exposing it to risks.
D. Licensing escalates the risks of suffering devastating losses in the event of an
expropriation.
Answer:
A counteroffer:
A. impliedly rejects an offer.
B. does not significantly alter the material terms of the contract.
C. is a mirror-image of the offer.
D. is an inquiry into the terms of the offer.
Answer:
For the requirement that certain types of contracts must be in writing, promissory
estoppel is an exception to:
A. collateral guaranty contracts.
B. transfers of interest in land.
C. an executor’s agreement to personally pay a decedent’s debts.
D. a contract varied by parol evidence.
Answer: