The common law held that landlords:
A. did not have the right to evict tenants for nonpayment of rent.
B. needed to make necessary repairs of their leased premises.
C. were responsible for the injuries caused to tenant due to their negligence.
D. made no implied warranties about the quality of leased premises.
If goods have been delivered to a buyer pursuant to a sale or return contract, the:
A. buyer may use the goods but not resell them.
B. seller is liable for the expenses incurred by the buyer in returning the goods to the
seller.
C. title to the goods remains with the seller.
D. risk of loss for the goods passed to the buyer.
Which of the following is true about the Fifth Amendment and the production of
records?
A. It would allow a Bogus Inc., officer who has custody of Bogus records to resist a
subpoena demanding production of those records if the contents of the records could
incriminate that officer personally.
B. It would prevent a sole proprietor from being compelled to produce his/her business
records if the act of producing such records was not testimonial in nature.
C. It may be asserted by a corporation, partnership, or other collective entity on the
same basis that an individual human being could assert it.
D. It does not protect “required records” from being subpoenaed and used against the
record keeper in criminal prosecutions.
A patent can be viewed as a contract between the inventor and who?
A. The federal government
B. The state government
C. The consumer
D. The International Office of Intellectual Property
Which of the following characterizes cases filed under section 402A?
A. The seller must be engaged in selling the product that allegedly caused harm.
B. The product may not be in a defective condition but must have caused injury.
C. The seller must prove that suitable modifications were made to the product in order
to avoid liability.
D. All cases except design-defect ones may be covered under this section.
To qualify as a negotiable instrument, an instrument in the form of a note must be
signed by the:
A. payee.
B. drawee.
C. assignee.
D. maker.
On May 6, Robbie entered into a signed contract with Ed, whereby Robbie was to sell
Ed a painting having a fair market value of $350,000 for $130,000. Robbie believed the
painting was worth only $130,000. Unknown to either party, the painting had been
destroyed by fire on May 4. If Ed sues Robbie for breach of contract, Robbie’s best
defense is:
A. risk of loss had passed to Ed.
B. lack of adequate consideration.
C. mutual mistake.
D. unconscionability.
Advertisements for the sale of goods at specific prices are considered to be:
A. bids.
B. unenforceable contracts.
C. invitations to offer.
D. unilateral contracts.
Landlord wishes to evict Tenant from his apartment because Tenant is three months’
behind on the rent. Tenant has indicated that he is unwilling to move out. Which of the
following is an accurate statement about Landlord’s rights and/or obligations under the
circumstances?
A. Landlord cannot sue Tenant; instead, Landlord must negotiate further with Tenant.
B. Landlord may use the degree of force necessary to physically remove Tenant from
the apartment.
C. Landlord may change the locks on the apartment while Tenant is temporarily away,
so that Tenant cannot get back in.
D. Landlord has to follow the prescribed procedure for eviction in that State.
Ian Sanders offered to sell his car to Beth Jones for $5,000 with Beth’s agreement.
Subsequently, Beth demanded that he provide new seat covers for the car as she was
paying a rather heavy price for the car. Beth’s response represents a(n) _____.
A. inquiry regarding terms
B. rejection of the offer
C. conditional acceptance of the offer
D. additional term
Jurisdiction based on the presence of property within the state is called _____
jurisdiction.
A. in rem
B. personam
C. sui iuris
D. subject-matter
Mel is a securities broker who holds shares in Beanbag Inc. Mel does not disclose this
to his customer Kim, whom he advises to buy Beanbag shares. Mel hopes that by not
disclosing his conflict of interest, he will influence Kim to buy the shares. Kim,
believing the information on Beanbag shares is given from Mel’s disinterested point of
view, declares that buying Beanbag shares “sounds like an excellent idea” and
purchases the shares. Which of the following statements is most accurate?
A. Kim cannot hold Mel liable because Mel did not make a misstatement of material
fact.
B. Kim will have to prove that Mel acted negligently in order to prove a Rule 10b-5
violation.
C. Kim will most likely be able to make a successful claim against Mel under Rule
10b-5.
D. Mel did not have a duty to disclose his conflict of interest to Kim.
Big Corporation (BC) was dominated by its president, Mr. Vincent. He used his
dominance for an improper purpose—defrauding lenders to the corporation. As a result,
a court can:
A. impose criminal penalties on him.
B. make him personally liable on the debts to those lenders.
C. terminate the corporate charter of BC.
D. compel him to resign.
Under the Model Nonprofit Corporation Act (MNCA), a quorum of 10 percent of the
votes entitled to be cast on a matter is required for members to proceed further in a
meeting.
Stone, a merchant seller in Seattle, contracted with Rose, a merchant buyer in
Rochester, for the sale of goods to be shipped by truck. The terms of the contract were
“F.O.B. Seattle.” Stone delivered the goods to the carrier. After leaving Seattle, the truck
containing the goods was never seen again. Stone has demanded payment for the goods,
and Rose has refused. If Stone sues, the outcome will be:
A. Rose will win because Rose did not receive the goods.
B. Rose will win because under the UCC this was a shipment contract.
C. Stone will win because Stone was not at fault in causing the loss.
D. Stone will win because under the UCC this was a shipment contract.
In an LLP that is continuing business after dissociation:
A. a dissociated partner has high risk of continuing liability for contracts.
B. a dissociated partner has less risk of torts occurring before or after the partner leaves
the LLP.
C. the partner’s liability is limited beyond the LLP’s assets.
D. the buyout payment made to a dissociated LLP partner will impair the ability of the
LLP to pay its creditors.
Why is sociological jurisprudence seen to resemble natural law?
A. It advocates the separation of law and morality.
B. It stresses on the superiority of lawmakers.
C. It calls for a separation of the judiciary and legislature.
D. Its definition of law includes social values.
In a case of intentional interference, a defendant generally escapes liability when his
contract interference:
A. was guided by public interest.
B. was defamatory in nature.
C. was regarding prospective competitive advantage.
D. was guided by a void bargain.
Which technique of statutory interpretation was most emphasized (and used) in the
Weber case in the text (Problem 2)?
A. The plain meaning rule.
B. Interpreting a statute consistent with its purpose.
C. Following prior interpretations of a statute.
D. Maxims of statutory construction.
According to the Code classifications of collateral, Investment property includes:
A. patents, copyrights, software, and franchises.
B. checks, notes, drafts, and certificates of deposit.
C. stocks, bonds, and commodity contracts.
D. bills of lading, dock warrants, dock receipts, and warehouse receipts.
Historically, courts seeking to determine the legality of vertical mergers have first
tended to look at:
A. the increase in market entry barriers for new competitors.
B. the elimination of potential competition in the acquired firm’s market.
C. the economic efficiency of such vertical integration.
D. the share of the relevant market foreclosed to competition.
Some legal positivists believe that:
A. an unjust law is not law.
B. the validly of enacted laws should be obeyed, just or not.
C. the law should keep up with changing times.
D. justice is what the judge ate for breakfast.
In the case of a product where the risks are open and obvious, many courts hold that:
A. buyers must register a complaint with the seller.
B. strict liability must be applied.
C. the case will be covered under section 402A.
D. there is no duty to warn.
Sonia through fraudulent representations induced Gracie to execute a negotiable note
payable to Sonia. Sonia is a holder in due course.
Which of the following is most likely to violate Section 5 of the FTC Act?
A. “Puffing” statements
B. Statements of opinion
C. Deceptive omissions
D. Sales talk
Chicago School advocates view _____ as the primary, if not sole, goal of antitrust
enforcement.
A. intraindustry competition
B. anticoncentration of economic power
C. economic efficiency
D. anticoncentration of political power
Which of the following instruments is NOT considered as security?
A. Mortgage notes
B. Treasury stock
C. Certificate of interest
D. Investment contract
Hamish invested in the securities of the ABC Corporation (ABC). He lost a great deal
of money on those securities after ABC’s president admitted that financial statements
about the profitability of ABC had been materially exaggerated. Andy Accountant (AA)
had audited those statements and had issued an unqualified opinion that they complied
with GAAS and GAAP. Hamish has sued AA using Section 10(b) of the Securities
Exchange Act of 1934 as the legal basis of his/her suit. To succeed, Hamish must prove
that:
A. AA acted with scienter.
B. Hamish was in privity of contract with ABC or AA.
C. AA acted negligently.
D. AA’s actions have a connection with intrastate commerce.
What officer of the corporation has custody of the corporation’s funds?
A. Treasurer
B. Chief Information Officer
C. Secretary
D. Vice President
Borg is the vice-president of purchasing for Crater Corp. He has authority to enter into
purchase contracts on behalf of Crater provided that the price under a contract does not
exceed $2 million. Dent, who is the president of Crater, is required to approve any
contract that exceeds $2 million. Borg entered into a $2.5 million purchase contract
with Shady Corp. without Dent’s approval. Shady was unaware that Borg exceeded his
authority. Neither party substantially changed its position in reliance on the contract.
What is the most likely result of this transaction?
A. Crater will be bound because of Borg’s apparent authority.
B. Crater will not be bound because Borg exceeded his authority.
C. Crater will only be bound up to $2 million, the amount of Borg’s authority.
D. Crater will be bound because of Borg’s actual authority.
April and Brian entered into a completely integrated written contract. Before the written
contract was completed, April made an oral statement to Brian regarding the terms of
the contract. This statement was not contained in the written contract. Under the parol
evidence rule, evidence of April’s oral statement would be admissible if it were used to:
A. create a completely new agreement.
B. introduce an ambiguous term in the written contract.
C. prove an additional term consistent with the written agreement.
D. change the terms of the written contract.