In which of the following ways does a state constitution differ from the U.S.
Constitution?
a. State constitutions are often more restrictive of rights than the U.S. Constitution.
b. A state constitution can guarantee rights beyond those provided in the U.S.
Constitution.
c. A state constitution is generally amended less frequently than the U.S. Constitution.
d. State constitutions tend to be more general than the U.S. Constitution.
Match each statement with the correct term below.
a) A contract that binds an offeror to keep an offer open for a specified period of time.
b) Improper physical or mental coercion exercised upon a person so that he is forced to
do an act against his free will.
c) Taking unfair advantage of a person by reason of a dominant position based on a
relationship of trust and confidence.
d) A contract in which only one party makes a promise.
e) A wrongful failure to properly perform contractual promises.
f) A contract that has not been fully performed.
g) A binding agreement that the courts will enforce.
h) A contract that has been fully performed by all of the parties.
i) A contract in which both parties exchange promises.
j) An event that must or must not occur before performance is due under a contract.
k) Transfer of a contractual obligation to a third party.
l) A merchant’s irrevocable offer to sell or buy goods in a signed writing that gives
assurance that it will not be revoked for the time stated, up to three months.
m) A statement in the form of a promise that imposes no obligation on the maker of the
statement.
n) A defective contract not wholly lacking in legal effect but that is capable of being
avoided.
o) The inducement given to enter into a contract; whatever is given in exchange for
something else.
p) A substituted contract involving a new third-party promisor or promisee.
q) An equitable remedy that compels the actual performance by the defaulting party of
his contractual obligations.
r) Voluntary transfer of contractual rights to a third party.
s) An obligation not based upon contract that is imposed by law to avoid injustice.
t) An understanding or belief that is not in accord with existing fact.
u) Restoration of an injured party to the position she was in before the contract was
made.
v) A formal court order prohibiting a party from doing a specific act.
w) An event that terminates a duty of performance.
x) An agreement to purchase all the materials of a particular kind that the purchaser
needs from one seller.
y) An agreement to sell the entire production of a particular seller to one buyer.
1) contract
2) breach
3) novation
4) assignment
5) voidable contract
6) quasi contract
7) executed contract
8) executory contract
9) bilateral contract
10) unilateral contract
11) delegation
12) option contract
13) firm offer
14) duress
15) undue influence
16) condition precedent
17) mistake
18) consideration
19) output contract
20) requirements contract
21) illusory promise
22) condition subsequent
23) restitution
24) specific performance
25) injunction
Use of ‘Evans & Hall, Ltd.’ as a corporate name would be:
a. permissible as long as it is distinguishable from the name of any domestic
corporation or any foreign corporation authorized to do business within the state.
b. impermissible because it does not clearly designate that the organization is a
corporation.
c. impermissible because it includes surnames.
d. permissible because the selection of a corporate name is purely up to the organizers
of the corporation.
Which of the following products would impose strict liability in tort according to
Section 402A?
a. Popcorn containing large amounts of genuine butter.
b. 150-proof Virgin Island rum.
c. A chainsaw sold with the safety shielding removed.
d. A sports car capable of speeds in excess of 150 mph.
Every consensual secured transaction involves:
a. a debtor, a secured party, and collateral.
b. value and a surety.
c. a security agreement and a security interest.
d. Both (a) and (c).
Tunso Corp. has 1,000 shares of stock outstanding that are permitted to vote for
directors. If Tunso Corp. permits cumulative voting, a minority shareholder would need
to vote how many shares to elect one of three directors?
a. 251.
b. 501.
c. 201.
d. 334.
A crime is:
a. a private wrong that necessitates litigation between the victim and the perpetrator.
b. any act prohibited by the government or an omission of an act required by public law
and made punishable by the government in a judicial proceeding brought by it.
c. litigation where the injured party sues to recover compensation for the damages and
injury sustained as a result of the defendant’s wrongful conduct.
d. wrongful conduct as set forth in statutes that constitute the supreme law of the land.
Alice says to Brian, “If I decide to buy a word processor next year, I will buy it from
you.” This is an example of:
a. an illusory promise.
b. past consideration.
c. the pre-existing duty rule.
d. good consideration.
Elmer promises to pay Fred $100 if Fred will register and vote in the next election as a
Democrat. This is:
a. a valid contract.
b. an illegal agreement.
c. an adhesion contract.
d. a usurious agreement.
Which of the following is a goal of criminal process or procedure?
a. Effective enforcement of the criminal law.
b. Requiring the defendant to bear the burden of proof.
c. Advancing the inquisitorial system of adjudication.
d. All of the above.
a. When may the attorney general of a state seek judicial action to dissolve a
corporation?
b. When may the shareholders of a corporation seek to dissolve it?
c. When may the creditors of a corporation seek to dissolve it?
A sale exists after the buyer takes:
a. the title to the goods.
b. the risk of loss on the goods.
c. an insurable interest in the goods.
d. a special property interest in the goods.
Material terms in a contract include all but which of the following?
a. The parties.
b. Shipping method.
c. Quality.
d. Time of performance.
Assume a foreign nation has seized all of the property of an American corporation. The
nation has assumed ownership of the property for a public purpose and has paid the
American corporation what it believes to be fair compensation. Under these facts, the
seizure of property is best described as:
a. expropriation.
b. confiscation.
c. force majeure.
d. eminent domain.
An easement may be created in which of the following cases?
a. The landowner agrees to it orally.
b. It is necessary for access to the land.
c. It is taken by using the land openly without permission for a period of years.
d. Both (b) and (c).
The Sherman Act:
a. applies to acts committed overseas by U.S. corporations.
b. would not apply to an act committed in the United States by a foreign corporation.
c. would not apply to an act overseas by a 100 percent-owned foreign subsidiary of a
U.S. corporation.
d. never applies to acts committed outside the U.S.
An express trust is a trust:
a. established by law through the courts when the parties’ conduct seems to warrant the
creation of a trust.
b. established by voluntary action.
c. represented by a written document, oral statements, or the conduct of the settlor.
d. Both (b) and (c).
Assuming no special provision in the articles of incorporation, special shareholder
meetings may be called by:
a. the president of the company.
b. any individual director.
c. any individual shareholder.
d. holders of at least 10 percent of shares.
A ‘person’ for purposes of a member of a partnership includes a natural person, a
partnership, a limited partnership, a trust, or an association, but not a corporation or an
estate.
A creditor with a perfected security interest has rights in the collateral superior to those
of a creditor with an unperfected security interest, but only if the unperfected security
interest has not attached.
A mortgage creates a security interest in real property.
Charles says to Wes, “If you will mow my lawn, I will give you $15.” Wes says nothing,
but he mows the lawn. No contract exists under this fact situation, because Wes did not
accept Charles’s offer.
A surety may set off his claims against the creditor if the creditor is solvent.
Shares in a corporation are freely transferable by sale, gift, or pledge unless a contract
restricts the transfer.