Adam moved into an apartment complex. The rules of the complex prohibit unmarried
men and women from living together in the same apartment. When Adam’s friend,
Diane, moved into the apartment he was served with eviction papers. Adam claims the
apartment complex is violating his constitutional rights since it allows married couples
to live together. Is Adam right?
a. Yes. His equal protection rights have been violated.
b. No. His fundamental right of cohabitation has not been violated.
c. Yes. He and Diane are being treated differently than married couples.
d. No. Constitutional protections do not extend to privately-owned apartment
complexes.
The Fair Debt Collection Practices Act prohibits which of the following practices?
a. A debt collector falsely representing himself as a lawyer
b. A debt collector telephoning the debtor at 8:00 a.m.
c. Visiting a debtor at work if the employer permits personal visits
d. Using neighbors to locate the debtor
Verne has possession of a draft that has been validly negotiated to him. His payment
process necessarily includes
a. presentment of the draft, dishonor, and notice of dishonor.
b. exhibiting the instrument, showing reasonable identification, and surrendering the
draft if it is paid in full.
c. exhibiting the draft, providing a thumbprint signature, and giving a receipt.
d. suspending the underlying debt, applying the shelter rule, and making a demand for
payment.
Under Article 9 of the UCC, electronic chattel paper may be used as collateral in a
secured transaction.
a. True
b. False
The fundamental principle of international law is the notion that each government has
the absolute authority to rule its people and its territory.
a. True
b. False
An illusory promise is valid consideration.
a. True
b. False
A contract that requires a seller to deliver goods to the carrier is a
a. destination contract.
b. shipment contract.
c. C.I.F. contract.
d. C.O.D. contract.
A debt that is disputed because the parties disagree over its existence or amount is an
unliquidated debt.
a. True
b. False
The Occupational Safety and Health Administration (OSHA) has proposed rules aimed
at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. If
ATC, Inc. wants to challenge the proposed rules, it must do so in court before the rules
become final.
a. True
b. False
Wilfred was driving too fast for the icy road conditions and hit Sally’s car. Sally can sue
Wilfred in criminal court.
a. True
b. False
Which of the following parties can defeat a perfected security interest?
a. A “buyer in ordinary course of business.”
b. A buyer of consumer goods if the buyer is not aware of the security interest, gives
value for the goods, will continue to use the goods as consumer goods, and the secured
party has not filed a financing statement.
c. A buyer who purchases chattel paper or an instrument in the ordinary course of
business, and then takes possession.
d. All of the above are correct.
Roger assaulted Jim in a tavern, causing medical expenses and lost wages. Which of the
following is true?
a. Roger can be prosecuted by the state for a criminal offense and Jim may sue him for
money damages.
b. If Roger is convicted of criminal assault, Jim is not allowed to sue him for money
damages since that would violate the double jeopardy clause of the Constitution.
c. If Jim refuses to press charges against Roger, the state cannot initiate a criminal
proceeding against him.
d. Jim can either elect to sue for money damages or proceed with criminal charges.
An insurance contract is NOT considered to be an illegal form of “wagering” because
a. one must have an insurable interest in the person being insured.
b. insurance contracts are underwritten by reputable companies.
c. insurance activities are regulated by the state department of insurance.
d. the money being paid out comes from premiums collected over time.
When Randy, an electrician, accepted a job with Buren Construction, Randy signed the
following agreement, “Upon termination of my employment with Buren Construction, I
agree never to work for another employer as an electrician.” If Randy resigns from
Buren Construction, this agreement would be upheld under the theory of freedom of
contract.
a. True
b. False
Giving possession and control of personal property to another person is referred to as
a. adhesion.
b. usury.
c. unconscionability.
d. bailment.
In 2007, the Securities and Exchange Commission (SEC) began to allow foreign
companies to use which of the following for its reporting standards?
a. SOX
b. GAAP
c. GAAS
d. IFRS
The European Union does not view privacy as a fundamental right of its citizens and
the EU’s policies toward privacy are limited.
a. True
b. False
If a salesperson says, “This is a great car and its really fun to drive,” but the car turns
out to be a lemon, the salesperson has committed fraud.
a. True
b. False
Ron and several fellow workers of Vicy, Inc., a small manufacturing company, wished
to organize a union. When Vicy learned of this activity, it issued a bulletin to all
workers stating that a union will only hurt the company and that “we are a family that
can solve any problems ourselves — we do not need union activists from outside our
company trying to tell us what to do!” Which statement is correct concerning the
bulletin issued by Vicy?
a. Vicy has committed an unfair labor practice. Vicy must remain neutral during the
organizing drive.
b. Vicy has committed an unfair labor practice. The bulletin constitutes outrageous
interference with the union organizing campaign.
c. Vicy has not committed an unfair labor practice. An employer may vigorously
present anti-union views to its employees.
d. Whether Vicy has committed an unfair labor practice depends on whether the bulletin
was approved by the NLRB.
A Chapter 7 debtor’s agreement to pay a creditor on a debt after receiving a discharge in
bankruptcy is called a
a. voidable preference.
b. reaffirmation.
c. fresh start.
d. redemption.
The UCC “perfect tender” provision states that
a. the buyer can reject the entire shipment if any portion of the goods are
nonconforming.
b. the buyer must accept the goods if the defects are minor and correctable.
c. the buyer may not accept the conforming part of a shipment and reject the
nonconforming part.
d. a buyer must reject nonconforming goods.
The proceeds, if any, of a derivative lawsuit go to
a. the shareholders of the corporation.
b. the shareholders who actually filed the lawsuit.
c. the board of directors.
d. the corporation.
A vertical merger involves companies at different stages of the production process.
a. True
b. False
John enters into a contract to paint Chad’s house. When Chad decides on a color, John
will buy the paint and paint the house for the price of $2,500. Which of the following is
true?
a. The common law of contracts governs because this is a mixed contract (one for
services and goods).
b. The common law of contracts governs because the predominant factor of the contract
is for the sale of services and not goods.
c. The Uniform Commercial Code governs because a sale of goods is involved.
d. Both the common law and the Uniform Commercial Code will govern this contract.
Under the ECPA, any intended recipient has the right to disclose the content of an
email.
a. True
b. False
Which of the following is NOT an example of a trial court of limited jurisdiction?
a. A probate court
b. A juvenile court
c. A small claims court
d. A general civil division court
A bailment was created for the parties’ mutual benefit. This means that the bailee must
use ordinary care with the property.
a. True
b. False
If Velma, as a birthday present, assigns to Jim her contractual right to collect $50 from
Wood Co., this would be a gratuitous assignment.
a. True
b. False
Under modern antitrust law analysis, a company with a market share between 70 and 90
percent has a monopoly.
a. True
b. False
The doctrine of preemption is based on the Constitution’s
a. Commerce Clause.
b. Due Process Clause.
c. Equal Protection Clause.
d. Supremacy Clause.
Ted and Janet were married and owned a piece of jungle property in a tenancy by the
entirety. When Janet died, her will left of all her real property to T.J., their adult son.
T.J. claims he is the sole owner of the jungle property. Ted objects and files a lawsuit
for sole ownership of the jungle property.
a. Ted will win because property owned in a tenancy by the entirety includes rights of
survivorship for the surviving spouse. Ted will get the title to the entire property.
b. Ted will win only a one-half interest in the jungle property. T.J. will own the other
one-half interest because Janet had the right to will her half of the property to anyone
she chose.
c. Ted will lose and forfeit his entire interest in the whole property because a tenancy by
the entirety means that one party owns the entire property.
d. T.J. will be required to sell his share in the property to Ted.