An employer can be liable for an agent’s negligence, but he will never be liable for his
intentional torts.
a. True
b. False
What is the effect of a payor bank’s dishonor of a check?
a. It returns the check to each intermediary or collecting bank.
b. The provisional credits must be reversed.
c. The customer who deposited the item for collection must cover the item and seek
recovery from the drawer or indorsers.
d. All of these will occur.
Noncompete agreements for Internet-related jobs have the same limitations in
determining what is reasonable as to time and place restrictions as other types of jobs.
a. True
b. False
Which of the following would be a valid ratification? Two weeks after his eighteenth
birthday, Jerry:
a. sells the motorcycle he contracted to buy when he was seventeen.
b. calls the bank to assure them that he will continue making payments on the loan
agreement he signed a month before his eighteenth birthday.
c. makes a payment on the installment contract he signed a month before.
d. All of these.
The most restrictive test for the issuance of dividends by a corporation is the net assets
test.
a. True
b. False
A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract
does not mention the place for delivery of the goods, the place of delivery will be:
a. at the seller’s business or residence in Chicago.
b. as stated in all destination contracts.
c. at the buyer’s business or residence in Atlanta.
d. irrelevant, since the contract is void.
An instrument paying a fixed amount in Japanese yen is not negotiable; the instrument
must be payable in money authorized or adopted by the U.S. as part of its currency.
a. True
b. False
A deed of trust differs from a mortgage in that the former conditionally conveys the
property to a trustee for the creditor’s benefit.
a. True
b. False
Assignment of rights is the voluntary transfer to a third party of the rights arising from a
contract.
a. True
b. False
In which of the following situations is restitution available as a remedy?
a. As an alternative remedy for a party injured by breach
b. For a party in default
c. For a party who may not enforce the contract because of the statute of frauds
d. All of these are situations where restitution is available.
A person who intentionally and knowingly uses a counterfeit mark may receive:
a. a judgment for three times the defendant’s profits or three times the plaintiff’s
damages, whichever is greater.
b. a fine of up to $200,000 on the first offense and $750,000 on a repeat offense.
c. a fine of up to $1,000.
d. imprisonment of up to 20 years for the first offense and for up to 30 years for a repeat
offense.
Which of the following run the day-to-day operations of a corporation?
a. Shareholders
b. Board of directors
c. Officers
d. Subscribers
The Supreme Court has defined the scope of the Commerce Clause narrowly and,
therefore, has restricted the powers of the federal government to regulate business.
a. True
b. False
Under which ethical system would it be ethical to compel a few citizens to undergo
painful or fatal medical tests in order to develop cures for the rest of the world?
a. Utilitarianism
b. Ethical fundamentalism
c. Distributive justice
d. Libertarianism
Comprehensive federal legislation now governs drug and alcohol testing by employers.
a. True
b. False
a. Discuss the common law rights of an injured employee against the employer.
b. How have Workers’ Compensation Acts changed this? Explain your answer.
A bearer instrument is comparable to cash in that it is negotiated by mere possession.
a. True
b. False
Pedro has a contract to build a garage. He delegates the wiring job to a local electrician
who improperly performs it.Pedro is responsible, even though he delegated the duty.
a. True
b. False
Chris was driving a car with defective brakes very slowly down Fifth Avenue looking
for a parking place. Mindy jumped out into the street five feet in front of his car. Chris
could not avoid hitting her. What is Chris’s best defense to the charge of negligence?
a. Mindy had a mental deficiency.
b. Chris was not negligent since he did not have a statutory duty to keep his brakes in
top condition.
c. Mindy illegally crossed in the middle of the street, which was a superseding cause of
the accident.
d. Chris was lawfully seeking a parking place and did not see her jump out.
The buyer’s payment or tender of payment, unless otherwise agreed, is a condition to
the seller’s duty to tender and to complete delivery.
a. True
b. False
An easement may be created in which of the following cases?
a. The landowner agrees to it in writing.
b. It is necessary for access to the land.
c. It is taken by using the land adversely to the rightful owner’s use openly for a period
of years.
d. All of these.
The seller may resell the goods identified to a contract:
a. only at a public sale. b. only at a private sale.
c. at a public or private sale.
d. at a public sale only if notice is given to the buyer.
The President has significant control over administrative agencies housed within the
executive branch by virtue of his power to:
a. influence the budgeting process.
b. appoint and remove the chief administrator of those agencies.
c. impound moneys appropriated to the agency by Congress.
d. All of these are powers of the President.
AB Corporation consolidates with ZX Corporation to form A-Z Corporation. The debts
of AB Corporation are:
a. assumed by the stockholders of AB Corporation.
b. discharged by the process of consolidation.
c. assumed by the new corporation.
d. discharged by the issuance of new stock in A-Z Corporation.
Any debtors may seek relief under Chapter 7 of the Bankruptcy Code.
a. True
b. False
An agreement of a seller to supply a buyer with all of the buyer’s requirements for
certain goods is known as:
a. an output contract.
b. a requirements contract.
c. a firm offer.
d. promissory estoppel.
Alex tells Mona that he thinks her ring is very valuable and that he would like to take it
to be appraised. She gives him the ring, and he quickly sells it to unsuspecting Hanna’s
Antique Jewelry Shop for $2,000. A week later, Mona discovers her ring on sale at
Hanna’s and uncovers the story. Can Mona get the ring back?
a. Yes, a true owner can always recover his or her own property
b. Yes, since Alex had no title to the ring
c. No, since Alex had voidable title to the ring and Hanna was a good faith purchaser
d. No, since Hanna has paid for the ring
Malicious prosecution and wrongful civil proceedings impose liability for damages
caused by improperly brought proceedings, including harm to reputation, credit, or
standing; emotional distress; and expenses of defense.
a. True
b. False
If a monthly lease does not specifically provide for a date the rent is due, the tenant
must pay at:
a. the end of the month.
b. the 15th of the month.
c. the beginning of the month.
d. five days after the beginning of the month.
Eminent domain would permit condemnation of land for all the following purposes
except:
a. constructing a railroad bridge over a river.
b. building senior citizens’ center.
c. building a store.
d. building a post office.