In an employment contract, agreements not to compete are:
a. illegal
b. uniformly held to be in the public interest and therefore legal
c. valid only if the restriction protects the employee
d. valid, if the restriction is reasonable and necessary for the protection of the former
employer
Interpretations of aspects of the right to privacy are often found in:
a. statutes.
b. customs.
c. societal guidelines.
d. none of the above.
The Electronic Communications Privacy Act of 1986 (ECPA) is useful in resolving
privacy issue questions.
If a seller elects to resell the goods remaining in the seller’s possession after the buyer
breaks the contract, the seller:
a. must always give notice of the sale to the original buyer.
b. is never required to give notice of the sale to the original buyer.
c. is required to follow strict standards in the resale of the goods.
d. is not required to give notice of the sale to the original buyer when the goods are
perishable.
When a testator provides for a bequest of his gold watch to his nephew, but the gold
watch is not owned by the testator at the time of death:
a. the nephew is entitled to an equivalent amount of cash.
b. the executor must purchase a similar gold watch for the nephew if funds are
available.
c. the bequest to the nephew fails by ademption.
d. all legacies in the estate abate to provide funds to purchase a gold watch for the
nephew.
Which of the following is not a factor that may lead to €piercing the corporate veil€
and imposing liability on corporate owners (shareholders)?
a. grossly inadequate capitalization of the corporation
b. formation of the corporation to avoid personal liability for business obligations
c. formation of the corporation to perpetuate a fraud or conceal illegality
d. shareholder diversion of corporate funds or assets
If a contract is ambiguous regarding whether the agent has signed in a representative or
an individual capacity:
a. there is a presumption that the agent signed in a representative capacity.
b. there is a presumption that the agent signed in an individual capacity.
c. the agent and the principal will both be liable on the contract.
d. parol evidence is admissible to establish the character in which the agent was acting.
What type of deed merely transfers whatever interest, if any, the grantor may have in
the property, without specifying that interest in any way?
a. common law
b. statutory
c. quitclaim
d. warranty
The greatest changes to the written Constitution have been brought about by:
a. departure by treaty.
b. judicial interpretation.
c. constitutional amendment.
d. amendment by practice.
An administrative regulation:
a. is a guideline that may be voluntarily followed.
b. has the force of law.
c. is a suggestion of what will protect the environment.
d. is a standard used to guide an industry at the industry€s discretion.
In most states, __________ provides that a security interest in a non-inventory motor
vehicle must be noted on the vehicle title registration.
a. a non-Code statute
b. UCC Article 2
c. UCC Article 9
d. judicial precedent
Cumulative voting:
a. decreases the voting power of minority shareholders.
b. is the normal method for shareholder voting on corporate matters.
c. generally is required or allowed in the election of corporate directors.
d. is a right given to participating preferred shareholders.
An affirmative action plan:
a. helps ensure a diverse work force.
b. is an effective means to avoid litigation costs.
c. may provide job preferences for minorities and women.
d. all of the above.
If a plaintiff seeking damages in a breach of contract action receives $1 in damages, the
damages would most likely be classified as:
a. punitive damages.
b. exemplary damages.
c. nominal damages.
d. compensatory damages.
Article 3 of the UCC establishes a __________-year statute of limitations for most
actions involving negotiable instruments.
a. one
b. two
c. three
d. four
An examination of goods excludes any implied warranty with respect to a defect that:
a. is apparent after a reasonable examination is made.
b. will not be apparent without chemical analysis.
c. will not be apparent until the goods are processed or used in manufacturing.
d. is unknown to all parties and is not detectable by reasonable examination.
An interest in personal property or fixtures that secures payment or performance of an
obligation is called a:
a. guaranty holding.
b. security interest.
c. guaranty interest.
d. good-faith guaranty.
The passage of federal securities disclosure laws occurred largely as the result of:
a. voluntary self-regulation by ethics experts in the securities industry.
b. the stock market crash of 1929.
c. changes in the international market for securities and negotiable instruments.
d. all of the above.
A landlord has the right to enter a leased property to make repairs without notifying the
tenant.
Plaintiffs are typically awarded punitive damages in negligence cases.
“Race norming,” a process whereby the results of hiring and promotion tests are
adjusted to ensure that a minimum number of minorities are included in application
pools, is a lawful form of affirmative action.
When a buyer has broken a sales contract, the seller may resell the goods or the balance
of them in the seller’s possession.
Civil laws define wrongs against society.
The right of a buyer to cancel or rescind a sales contract is never impacted by a delay in
exercising that right.