The partnership will not be liable for contracts created by a partner acting outside the
scope of her authority, even when the other partners ratify the unauthorized action.
Answer:
According to Joseph L. Badaracco Jr., the question “Which alternative best serves
others’ rights?” is teleological in nature in that it focuses on the morality of the
consequences of the decision.
Answer:
Officers who, in good faith, enter into an ultra vires transaction are not held personally
liable.
Answer:
Legal value depends on the adequacy of consideration.
Answer:
An offeree who makes an inquiry about the terms of the offer has made a counteroffer,
and has terminated the offer by rejecting it.
Answer:
Under the Sherman Act, courts are given the power to order the dissolution of violators
of the Act in extreme cases.
Answer:
The attribute of negotiability means that an item can be readily transferred and
accepted as a substitute for money.
Answer:
Which of the following statements hold TRUE during the presentation of testimony?
A. Under direct examination, each witness is sworn and then examined by the
defendant’s attorney.
B. The defendant’s attorney may cross-examine each witness, trying to raise doubts as
to the person’s credibility or trustworthiness.
C. The defendant’s attorney may then conduct a redirect examination to clarify the
plaintiff’s view of the facts.
D. During a witness’s testimony, the opposing attorney may not object to the
presentation of certain evidence.
Answer:
Under the GINA, genetic information includes family medical history.
Answer:
A promisor who is guilty of material breach has no right of action under the contract.
Answer:
How does common stock differ from preferred stock?
Answer:
Goods may be delivered in installments, even if not stated so in the contract.
Answer:
Unearned portions of any premiums paid by the insured need not be returned to the
insured at the cancellation of the policy by the insurer.
Answer:
Any attempts to limit consequential damages for injury caused to a person by
consumer goods is considered prima facie unconscionable.
Answer:
The parties’ agreement on the amount of damages to be paid, if one of them breaches
their contract, will not be enforced if the amount named is unreasonable.
Answer:
Courts have traditionally said they are contract makers, not enforcers.
Answer:
Property insurance contracts are indemnity contracts.
Answer:
Minority shareholders in close corporations cannot be outvoted on salary and
employment decisions.
Answer:
The Industrial Revolution that modernized America changed many of the basic
assumptions underlying contract law.
Answer:
A trustee owes a duty of loyalty to the beneficiaries.
Answer:
Which of the following statements is TRUE of an indorsement?
A. It is a necessary component of the negotiation of an instrument and applies only to
payments made to a depository bank.
B. It does not affect future attempts to negotiate the instrument.
C. It generally does not make a person liable on the instrument even if he/she is
engaged in any illegality affecting the instrument.
D. It makes a person liable on an instrument indorsed by him/her only if the person
primarily liable on it does not pay it.
Answer:
Dave purchased a plot of land that was owned by Ron. After he purchased the property,
Dave discovered that the land contained valuable mineral deposits and quarried them.
Ron, who did not know that the land contained valuable minerals at the time of sale,
sues Dave to recover the value of the mineral deposits. Under these circumstances:
A. Dave is the owner of the deposits because they became his personal property upon
quarry.
B. Dave is the owner of the deposits because the mineral deposits became part of the
land under the doctrine of fixture.
C. Ron can recover the fair market value of the mineral deposits because he did not
intend to make a gift of personal property under these circumstances.
D. Ron can rescind the sale because Dave is liable for conversion under these
circumstances.
Answer:
The Ultramares approach is a:
A. strict privity approach.
B. near privity approach.
C. reasonable person approach.
D. no delegation approach.
Answer:
Whole life insurance contracts:
A. do not bind the insurer to pay the face value of the policy on the death of the insured.
B. have a convertibility feature that allows the insured to convert the policy to a term
life policy.
C. has no cash surrender value if the policy is terminated.
D. require the insured to pay the specified premium for the duration of his/her life.
Answer:
Yardqueen, Inc., a manufacturer of lawn mowers, sells a lawnmower model both to
retail chain Streetmart and to standalone store Lawnworks in the town of Bayside.
Yardqueen sells the model to Streetmart at five dollars less per unit than it sells to
Lawnworks as Streetmart buys more mowers. Streetmart’s retail prices are therefore
lower than those of Lawnworks. Based on the above information, which of the
following is TRUE?
A. Yardqueen violates Section 2(a) of the Robinson-Patman Act.
B. Yardqueen violates the provisions of the Parker Doctrine.
C. Yardqueen is in violation of the Noerr Doctrine.
D. Yardqueen violates Section 3 of the Clayton Act.
Answer:
Mack is Bertha’s agent and is authorized to sign checks for her. Mack signs one of
Bertha’s checks with only his own name. Who is liable on the check?
A. Bertha
B. Mack
C. Both Mack and Bertha
D. Neither Mack nor Bertha
Answer:
Chapter 13 of the Bankruptcy Act:
A. permits compositions of credit.
B. does not help debtors to overcome their financial difficulties.
C. does not allow time extensions to pay debts.
D. permits reductions of debts.
Answer:
Corporate social responsibility argues that ethical guidance for corporate managers
may come from:
A. values that are influenced by culture.
B. corporate or industry codes of conduct.
C. corporations giving preference to their employees over the other constituencies.
D. an array of conflicting ethical views.
Answer:
The implied warranty of habitability in lease situations requires:
A. the landlord to ensure that the property is suitable for living.
B. the tenants to maintain a habitable dwelling during the term of the lease.
C. the tenants to comply with applicable housing codes.
D. the landlord to terminate the lease if the warranty has been breached.
Answer:
Identify the statement that is TRUE of perfection of attachment of consumer goods.
A. If the secured party filed a financing statement for the collateral, the new buyer takes
the collateral free of any security interest.
B. If the goods are to become fixtures, the creditor can get full protection through
perfection by attachment.
C. If the new buyer buys from the debtor without knowledge of the interest, for value
and for personal use, the new buyer takes free of the security interest.
D. If the consumer goods are motor vehicles for which the state issues certificates of
title, perfection by attachment is effective.
Answer:
William Key Collins called his insurance adjuster, Morris Gage, to discuss a claim.
During their phone conversation, Gage told Collins that his chiropractor, Kenneth Ark,
was “a quack.” Dr. Kenneth Ark overhears this conversation and wants to sue Morris
Gage. Which of the following statements is TRUE?
A. Ark can recover from Gage for libel, but only if he proves special damages.
B. Ark can recover from Gage for slander, but only if he proves special damages.
C. Ark can recover from Gage for libel, and actual damages will be presumed.
D. Ark can recover from Gage for slander, and actual damages will be presumed.
Answer:
The FTC has adopted a regulation that:
A. follows the traditional rights of a holder in due course in consumer purchase
transactions.
B. alters the rights of a holder in due course in consumer purchase transactions.
C. allows a consumer who gives a negotiable instrument to use only the defense of
fraudulent inducement.
D. denies all rights of a holder in due course in consumer purchase transactions.
Answer:
The formation of a general partnership requires:
A. filing appropriate paperwork with the secretary of state.
B. a formal certificate of cancellation when the partnership is terminated.
C. no express agreement.
D. that each partner be liable for losses depending on the individual partner’s
contribution to the enterprise.
Answer:
Which of the following holds TRUE for the seller’s entitlement on the recovery of
purchase price of goods?
A. The seller is not entitled to the purchase price of all goods accepted by the buyer.
B. The seller cannot recover the purchase price of goods damaged after the buyer
assumed the risk for their loss.
C. Even if the seller successfully resells the goods, he can claim recovery of purchase
price from the buyer.
D. If the resale of goods happen before the buyer pays for them, the seller must give the
buyer due credit for the proceeds of the resale.
Answer:
Which of the following caused the long-range transport of some pollutants,
contributing to the formation of acid rain, snow, fog, or dry deposition?
A. Electric-generating facilities installing scrubbers.
B. Electric-generating facilities switching to lower-sulfur coal.
C. Electric-generating facilities installing “clean coal” technologies.
D. Electric-generating facilities building tall smokestacks.
Answer:
To create acceptance to an offer for a bilateral contract:
A. the offeree must perform the act requested by the offeror.
B. silence will never constitute acceptance of an offer.
C. acceptance must always be properly communicated to the offeror.
D. an offeror is allowed to word his or her offer so that the offeree will be bound to the
contract.
Answer:
Which of the following is TRUE of the articles of the UCC that deal with the law of
commercial paper?
A. The law of commercial paper is covered in Article 3 and Article 4 of the Uniform
Commercial Code.
B. Revised Article 3 of the UCC developed in 1990 has now been adopted by almost all
the states.
C. The law of commercial paper is covered only in Article 3 of the UCC that deals with
negotiable instruments.
D. Negotiable documents, such as investment securities and documents of title, are also
treated in Article 3 of the UCC.
Answer:
After a series of some advertisements of beer and other alcoholic drinks, the
government decided to regulate commercial speech. If the courts analyze this
regulation, they will:
A. use strict scrutiny analysis.
B. search for truth in the speech.
C. seek compelling government interest.
D. see that the government advances its interests in an extensive manner.
Answer:
If one or both parties to a form contract are nonmerchants, the additional terms
proposed by one of the parties are treated as:
A. void.
B. proposals for addition to the contract.
C. revocation.
D. expressly conditional.
Answer:
If a person wants to make a change to their will, the person can do so by:
A. appearing in court.
B. executing a codicil.
C. by posting legal notice of amendment.
D. by striking out objectionable provisions.
Answer:
Identify the statement which correctly describes preferred stocks.
A. Preferred stock can never be converted into common stock.
B. The right to vote is usually granted only in the event that dividends due are fully
repaid.
C. Redemption of preferred stocks is allowed irrespective of whether the cost would
make the corporation insolvent.
D. A corporation can buy back preferred stocks from holders even if they do not wish to
sell them.
Answer:
Identify the TRUE statement regarding collateral contracts.
A. They do not need to be evidenced by writing to be enforceable.
B. They are covered by the statute of frauds.
C. They are considered to be original contracts.
D. The guarantor is primarily liable to perform his contractual duty.
Answer:
If the seller refuses to deliver the goods called for by the contract, the buyer can:
A. get the difference between the contract price of the goods and their market price at
the time the buyer learns of the seller’s breach.
B. sue for only consequential damages.
C. deprive the seller of credit for any expenses saved.
D. seek for specific performance even if the goods ordered are not unique in nature.
Answer:
In terms of labor law, “garnishment”:
A. processes unfair practice charges brought against unions and employers.
B. occurs when the employer discontinues operations during a labor dispute.
C. is a court order that makes money or property held by a debtor subject to the claim of
a creditor.
D. refers to plans for increasing the proportion of minorities or women in an employer’s
workforce.
Answer:
Malpractice insurance is similar to business liability coverage in that it:
A. requires the insured to insure the property to a specified percentage of its fair market
value in order to fully recover the value of partial losses.
B. provides an alternative to prohibitively expensive individual health care insurance
policies.
C. provides protection for professionals whose negligent professional conduct causes
injuries to third persons.
D. requires the insured to pay up to a certain amount each year before the insurer’s
payment obligation begins.
Answer:
Answer:
Williams bought a house from Smith. He was not told before the sale that a woman and
her four children had been murdered there 10 years ago. He learnt about this from a
neighbor after the sale. Williams sued Smith and his real estate agent, seeking to rescind
the sale. Can he rescind the contract?
Answer:
Explain the difference between defamation and disparagement.
Answer:
Under what conditions can one or more members of a class be sued as representative of
a class? What type of lawsuit can their claims be consolidated into?
Answer:
Explain what types of contracts are assignable and name the types of contracts that are
not assignable.
Answer:
Explain a creditor’s three potential courses of action upon default.
Answer:
Describe the type of behavior Section 3 of the Clayton Act is designed to attack.
Answer:
Explain the special problems associated with the bidding process in construction works
to the general contractor, if the subcontractor is allowed to revoke the offer.
Answer:
Answer:
What must be included in the articles of incorporation according to the MBCA?
Answer: