Kelley borrows $3,000 from Paul and orally agrees to repay him in three annual
installments. Most courts would hold:
a. the oral contract is unenforceable because it cannot be performed within one year.
b. Article 2 of the UCC controls this loan.
c. the oral contract is enforceable only through the doctrine of promissory estoppel.
d. the oral contract is enforceable because Paul fully performed his obligation under the
contract.
An agency agreement must always be in writing.
a. True
b. False
Identify the following trade symbols according to their type.
a. The Underwriter’s Laboratory Mark.
b. The apple used by Apple Computers.
c. The “GM” symbol that appears on General Motors’ automobiles.
d. The “A” symbol used by American Airlines.
e. The Muppets characters Miss Piggy and Kermit the Frog.
f. The union-made symbol.
Under the CISG, if at the time of entering into the sales contract, the buyer knew or
could not have been unaware of the lack of conformity, the seller is not liable for the
warranty of particular purpose, ordinary purpose, or sale by sample or model.
a. True
b. False
If Margie makes out a check for $27.50 when she has only $10 in her account, her bank
may:
a. refuse to pay the check.
b. pay the check.
c. bill Margie for $17.50 and a service charge.
d. Any of these are options.
The Leegin Creative Leather Products, Inc. v. PSKS, Inc. case held that:
a. vertical agreements establishing minimum resale prices should be judged by the rule
of reason standard.
b. vertical agreements establishing minimum resale prices are illegal per se.
c. horizontal price fixing agreements must be evaluated by studying the reasonableness
of the restraint in light of real market forces at work in the situation.
d. if a seller can show it costs less to sell to a particular buyer, the seller may lawfully
pass along the cost savings.
a. Distinguish between a rejection of goods and a revocation of acceptance of goods.
b. What is the effect of a rejection? What is the effect of a revocation?
c. Does the buyer have any obligations to the seller once she has rejected the goods?
Which of the following is not true about auctions?
a. The UCC provides that if an auction sale is advertised or announced in explicit terms
to be with reserve, the auctioneer may not withdraw the article put up for sale unless no
bid is made within a reasonable time.
b. Unless an auction is advertised as being without reserve, the sale is with reserve.
c. Whether an auction is with or without reserve, a bidder may retract his bid at any
time prior to acceptance by the auctioneer.
d. If the auctioneer knowingly receives a bid on behalf of the seller and notice has not
been given that the seller reserves the right to bid at the sale, the bidder to whom the
goods are sold can avoid the sale.
Solicitation includes any request:
a. for a proxy.
b. not to execute a proxy.
c. to revoke a proxy.
d. All of these.
In recent years, the courts have unanimously reinforced the common law doctrine of
employment at will.
a. True
b. False
The Truth-in-Lending Act has disclosure requirements for both consumer loans and
credit sales over $50,000.
a. True
b. False
A buyer who sells rejected goods on behalf of the seller is entitled to reasonable
expenses and a reasonable selling commission not to exceed ten percent of the gross
proceeds.
a. True
b. False
The main purpose of The Bill of Rights was to:
a. enumerate all of the rights of U.S. citizens.
b. list the powers of the federal government.
c. provide for restrictions on the power of the federal government.
d. provide limitations on the powers of individuals.
The principal objective of antitrust law governing mergers is to maintain competition.
a. True
b. False
An heir of a person who dies receives title to the property of the decedent by reason of a
gift.
a. True
b. False
Replevin is an action at law to recover specific goods in the possession of the defendant
which are being unlawfully withheld from the plaintiff.
a. True
b. False
Under the rule in Hadley v. Baxendale, only damages foreseeable at the time of entering
into the contract can be recovered.
a. True
b. False
In which of the following situations does the seller have the right to cure?
a. Where the time for performance under the contract has not yet expired.
b. After the time for performance has expired if the seller had reasonable grounds for
believing the buyer would accept a nonconforming tender with or without monetary
adjustment.
c. Where the buyer has revoked acceptance.
d. Two of these are correct but not all three.
Mary and Remaldi Co. have dealt with each other for many years. Mary’s Boutique
orders 100 assorted lipsticks at $2.00 each from Remaldi Co. Remaldi sends back a
confirmation letter with an additional, nonmaterial term. There is:
a. no contract, but a counteroffer.
b. a contract with the additional term unless Mary objects.
c. a contract with the additional term only if Mary agrees.
d. a contract without the additional term.
If Able Corporation purchases all of the stock of Beta Corporation rather than all of its
assets, there is now a change in Beta Corporation’s legal status.
a. True
b. False
If Marilyn and George form a corporation under the Revised Act with Marilyn as
president and George as treasurer, Marilyn cannot also be corporate secretary.
a. True
b. False
Phoenix, Arizona might be classified as a PSD area with respect to some pollutants, but
not with respect to others.
a. True
b. False
The court in Public Service Commission of Maryland v. Panda-Brandywine, L.P.:
a. held that there is no legal distinction between the transfer of contractual rights and
duties.
b. found the issue was whether an assignment or delegation could be made in this case.
c. found that the provisions in the Asset Purchase and Sale Agreement did not constitute
an assignment or transfer within the meaning of the parties agreement.
d. held that there was an assignment of rights and delegation of duties in contravention
of the parties agreement and the transfer was therefore invalid and unenforceable.
A material breach by the seller will discharge the buyer from his obligations under a
contract.
a. True
b. False
An approved SIP is treated as both state and federal law, enforceable by either its state
of implementation or the federal government.
a. True
b. False
Although the court in James v. Taylor recognized that the presumption has been
changed by statute in many states, the court stated that at common law, if the wording
in a deed was ambiguous, the law favored a:
a. tenancy by the entireties.
b. tenancy in partnership.
c. tenancy in common.
d. joint tenancy.
Bailey attended an auction and bid $150 on an antique dresser. No one else made a
higher bid. Discuss the effect of (a) the designation that the auction is without reserve,
(b) the advertisement that the auction is with reserve, and (c) the lack of any
announcement or advertisement as to whether the auction is with or without reserve.
Under the Second Restatement, except in cases of death or incapacity, or where the
performance of an authorized act becomes impossible, actual notice of termination of
agency is required to the third party if she is one:
a. with whom the agent has dealt on credit.
b. to whom the agent has been specially accredited.
c. with whom the agent has begun to deal, as the principal should know.
d. All of these.
Both the common law and federal law recognize an accountant-client privilege.
a. True
b. False
Which of the following is true under the Anti-counterfeiting Amendments Act of 2004?
a. A court may increase a damage award by three times the amount that would
otherwise be awarded if a copyright violation occurs within three years of a judgment
for a previous violation.
b. Counterfeit trademarks are redefined.
c. Copyright protection was extended for ten years to safeguard mask works embodied
in a semiconductor chip product.
d. It amended the Lanham Act to extend protection to the owner of a trademark or
service mark from any person who, with a bad faith intent to profit from the mark,
registers, traffics in, or uses a domain name which is identical to or confusingly similar
to a distinctive mark.
In applying the reasonable person standard, the court takes into account a person’s
physical, but not mental, handicaps.
a. True
b. False
Most long-arm statutes allow courts to obtain jurisdiction over nonresident defendants
if:
a. the exercise of jurisdiction does not offend traditional notions of fair play and
substantial justice.
b. the defendant has committed a tort within the state.
c. Both of these.
d. None of these; courts only have jurisdiction of persons domiciled in that state.