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A person cannot be guilty of trespass unless he or she intended to violate the other's
rights.
a. True
b. False
Estoppel may create a corporation.
a. True
b. False
The right of a surety who has paid the creditor to be repaid by the principal debtor is:
a. exoneration.
b. subrogation.
c. reimbursement.
d. None of these.
The RULPA specifies the events that will trigger a dissolution, after which the
partnership affairs must be liquidated. These events include which of the following?
a. The expiration of the time period specified in the certificate.
b. The unanimous written consent of all the partners.
c. A limited partner's withdrawal from the partnership.
d. The expiration of the time period specified in the certificateand the unanimous
written consent of all the partners.
Paul is a truck driver who owns his own truck and delivers loads to various companies
for nine months out of the year. For the hard winter months, Paul goes to Key West to
"put his feet in the sand." One evening while delivering a load for Emblem Helicopter
Parts Co., Paul got into a "little scuffle" with a rowdy trucker who was giving Nell, a
waitress at the DewDrop Inn Cafe, a hard time. Paul knocked out five of "Rowdy's"
teeth. Rowdy is suing Paul and Emblem for his injuries. Discuss whether Rowdy will
win against Emblem on the issue of: (a) respondeat superior and (b) unauthorized acts
of agents.
Individuals may use reasonable force to protect individuals, themselves, and their
property. Under the majority rule, reasonable force means:
a. deadly force is reasonable to protect property.
b. deadly force is reasonable to protect an individual's freedom of speech.
c. deadly force is reasonable if an attack threatens the victim with serious bodily harm.
d. deadly force is reasonable only within the bounds of one's domicile.
The first federal statute for the regulation of securities offered for sale and sold through
interstate commerce was passed in:
a. 1916.
b. 1933.
c. 1934.
d. 1954.
Alvero tries to make a $75 withdrawal from an ATM, but the terminal has run out of
cash. The bank is liable to Alvero for damages proximately caused by its failure to
make the EFT.
a. True
b. False
Which of the following would most likely be a defect under 402A of the Restatement of
Torts?
a. A chair produced without inserting the appropriate screws.
b. A product with a defective design that is nevertheless the 'state of the art."
c. Vodka that is 100 proof and makes people drunk and causes liver damage after years
of heavy use.
d. All of these are defects under 402A.
In some respects, Kant's categorical imperative is a variation of the Golden Rule.
a. True
b. False
In considering a covenant not to compete in an employment contract, the court in the
case of Payroll Advance, Inc. v. Yates said in its opinion:
a. in order to obtain an injunction it is necessary for the employer to show that actual
damage has occurred.
b. covenants not to compete are presumptively valid, and they are enforceable to the
extent they are reasonable.
c. the question of reasonableness of a restraint requires consideration of such
circumstances as the subject matter of the contract, the purpose to be served, the
situation of the parties, the extent of the restraint, and the specialization of the business.
d. Two of these answers are correct.
Carl, a contractor, has a contract with Ron, a realtor, to construct a new condominium
complex. The contract provides that Carl must furnish a certificate of occupancy and
conformity with the local fire code before Ron has an obligation to pay. The furnishing
of the certificate is an implied-in-fact condition subsequent to the construction of the
building.
a. True
b. False
Most types of contracts are valid without being written.
a. True
b. False
A corporation has perpetual existence unless otherwise stated in its articles of
incorporation.
a. True
b. False
Substantive unconscionability involves scrutiny by the court for "bargaining
naughtiness."
a. True
b. False
Max buys shares of newly issued Z Corp. stock for $30 per share and pays $1,000 cash,
a car worth $2,000, and a promissory note for $3,000. Under the Revised Act, how
many shares of stock could validly be sold?
a. 100
b. 33
c. 200
d. 133
Federal administrative agencies must, within one year after creating records, make them
available by electronic means.
a. True
b. False
An easement describes a limited possessory interest in the land.
a. True
b. False
Rodriguez and Compton asked a court for reformation of their contract based on a
mutual mistake. They seek an equitable remedy.
a. True
b. False
Which of the following is NOT essential to a valid deed?
a. Grantor.
b. Grantee.
c. Delivery.
d. Recording.
In most sales, the buyer has the right to inspect the goods before he pays.
a. True
b. False
Elmer has been a faithful worker at the Mid-America Manufacturing Company for over
thirty years. One day when he comes to work, he gets called into the foreman's office
and is told that the company has decided to lay off all of its 250 current employees and
move the plant out of the country.
a. Does Elmer have any protections under the common law doctrine of employment at
will? Explain.
b. Does Elmer have any protections under employment discrimination law? Explain.
Title VII of the Civil Rights Act of 1964:
a. is enforced by the FTC.
b. applies to employers engaged in an industry affecting commerce and having 15 or
more employees.
c. has been displaced by the Civil Rights Act of 1991.
d. forbids discrimination in the workplace involving hiring, promotion, and retention,
but does not cover transfer and retirement discrimination.
In which of the following cases would an oral contract be enforceable without a written
memorandum?
a. Ron orders three custom-made suits.
b. Michelle calls an employment agency in Paris to arrange for maid service for her
three-month Parisian vacation.
c. Anna orders a top-of-the-line computer over the phone.
d. Catherine calls Lucky Dude Ranch to purchase the championship race horse they
have advertised in the paper.
A contract of adhesion:
a. is automatically unenforceable.
b. consists largely of boilerplate provisions, such as a standard-form insurance policy.
c. is a contract that exhibits either procedural or substantive unconscionability.
d. is a contract containing multiple exculpatory clauses.
On Monday, Bill agreed to buy vinyl siding for his home from Al, a door-to-door
salesman. On Wednesday, he can rescind the contract with no liability for breach of
contract.
a. True
b. False
All but which of the following hold an insurable interest?
a. Shareholders in a closely held corporation to the extent of their interest in the
corporations property.
b. A lessee of property.
c. A seller with a purchase money security interest.
d. A buyer of a truck, whether or not the buyer had knowledge of the fact that the truck
was stolen by the seller.
A general partner may also be a limited partner and thereby also share in profits and
distributions as a limited partner.
a. True
b. False
The power of an agent is her ability to change the legal status of her principal.
a. True
b. False
Kelly wrote a check to Trish, which Trish immediately changed from $20 to $120. She
negotiated the check to Carl for value, who in turn took it to Kelly's bank for
certification. Kelly's bank checked his account and certified the check since there were
sufficient funds to cover the check. Thereafter, Carl gave the check to General Motors
as part of the down payment for his car. G.M. presents the check to Kelly's bank for
payment and they discover the alteration. The bank:
a. can sue G.M. for breach of presentment warranty of no alteration.
b. can charge Carl's account for $120.
c. can refuse to pay G.M. more than $20.
d. must pay G.M. $120 and cannot sue them for breach of warranty.
The UCC permits an oral agreement for the sale of goods to be enforced against a party
who admits to the contract in court, even though the statute of frauds requires the
agreement in writing.
a. True
b. False
A warranty deed by Jeff to Paula includes Jeff's promise that he will be liable to Paula
for any defects in title.
a. True
b. False
