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Which of the following is not a defense to a surety?
a. fraud practiced by the debtor of which the creditor was unaware
b. lack of consideration
c. lack of capacity on the part of the surety
d. mistake
Because corporate stock has the quality of negotiability:
a. it is considered commercial paper.
b. it is governed by Article 3 of the UCC.
c. it is in agreement with common law principles.
d. many defenses cannot be raised against a person acquiring the certificate in good
faith and for value.
Counterfeiting is:
a. a federal crime only.
b. a state crime only.
c. both a federal and state crime.
d. none of the above.
Government may:
a. prohibit false advertising and labeling.
b. enforce standards for health and purity for cosmetics, foods, and drugs.
c. engage in competition with private enterprise or own and operate an industry.
d. all of the above.
Which of the following parties would be the least appropriate defendant in a consumer
protection lawsuit?
a. another consumer
b. a bank with a good reputation
c. a finance company
d. an enterprise that regularly enters into transactions with consumers
Which of the following is not a correct statement concerning wills?
a. Attestation is the act of witnessing the execution of a will.
b. Most states require two (2) witnesses to the execution of the will.
c. A will must be dated.
d. Self-proved wills are wills that carry a presumption that they are valid if executed
according to the requirements set forth by statute.
Owners of mask works are entitled to the exclusive right to reproduce and distribute
their products under U.S. law for a period of:
a. 10 years.
b. 20 years.
c. 28 years.
d. the life of the creator plus 50 years.
An offer is terminated upon rejection by the offeree unless:
a. the period of time for which the offeror agreed to keep the offer open has not yet
expired.
b. the offeror renews the offer.
c. the offeree revokes the rejection.
d. the offeree makes a counteroffer.
Which of the following events excuses a promisor from performing his or her
contractual obligations?
a. a riot
b. a shortage of materials necessary for production of goods and/or provision of
services called for under the contract
c. an unanticipated increase in the cost of performance
d. destruction of the subject matter through no fault of either party
Statutes which are drafted from Uniform State Laws are often used to regulate:
a. business.
b. foreign countries.
c. criminal behavior.
d. none of the above.
An affirmative action plan must not:
a. apply to unqualified workers.
b. favor women.
c. favor minorities.
d. respect the rights of non-minorities and men.
A trust may be terminated:
a. in accordance with its terms.
b. by merger of all interests in the same person.
c. via revocation by the settlor if allowed by the terms of the trust.
d. all of the above.
Which country is NOT a part of The North American Free Trade Agreement (NAFTA)?
a. Mexico.
b. United States
c. Canada.
d. Greenland
Partners are not entitled to compensation for services performed for the partnership
unless:
a. the services are performed by a surviving partner in winding up the partnership
affairs.
b. the services are unusual or more extensive than services rendered by other partners.
c. due to the illness of a partner, the other partners have to perform the services
ordinarily performed by that partner.
d. the services rendered by the partner are such that they ordinarily would be rendered
with the expectation of compensation.
In order to show a per se violation of the Sherman Act, plaintiff must demonstrate:
a. a substantial potential for impact on competition.
b. actual or likely impact on a market.
c. any agreement tending to fix prices.
d. none of the above.
In general, an acceptance occurs when:
a. a particular form of words is stated to the offeror.
b. a particular mode of expression is made to the offeror.
c. the offeree reserves the right to reject the offer.
d. a clear expression of the offeree's agreement to be bound by the terms of the offer
occurs.
A party to a contract may be:
a. an individual.
b. a partnership.
c. a corporation.
d. all of the above.
A copyright prevents the copying of an idea.
If a liquidated damages clause demands an unusually large sum that is not related to
reasonably-anticipated actual damages, the clause will be held to be void as a(n):
a. penalty.
b. unliquidated damages clause.
c. extortion
d. blackmail
A merchant cannot revoke a firm offer to buy or sell goods if the merchant has:
a. promised to keep the offer open.
b. declared in the presence of two or more reputable witnesses that the offer will be kept
open.
c. received consideration to keep the offer open.
d. stated in a signed letter that the offer would not be revoked for a specified period of
time.
The registration process under Section 5 of the 1933 act is divided into three time
periods. In order, they are:
a. waiting, prefiling, and posteffective.
b. waiting, prefiling, and executory.
c. prefiling, waiting, and posteffective.
d. prefiling, executory, and posteffective.
In the absence of a liquidated damages clause and in the absence of proof of greater
damages, the seller's damages are computed as
a. 25% of the purchase price or $500, whichever is less.
b. 25% of the purchase price or $500, whichever is greater.
c. 20% of the purchase price or $500, whichever is greater.
d. 20% of the purchase price or $500, whichever is less.
In interpreting an ambiguous contract, one part of the contract:
a. must be viewed in isolation.
b. must be viewed as a condition.
c. must be viewed in connection with the rest of the contract.
d. must be viewed as indicating joint and several liability.
A promise that the grantor of an interest in land will execute any additional documents
required to perfect the title of the grantee is known as a covenant:
a. of seisin.
b. of further assurances.
c. against encumbrances.
d. of quiet enjoyment.
A security interest that is effective against third persons as well as against the buyer is
called a:
a. universal security interest.
b. prohibitive security interest.
c. perfected security interest.
d. protective security interest.
Under the Revised Uniform Limited Partnership Act, a limited partner may contribute:
a. cash only.
b. property only.
c. services only.
d. cash, property, and services.
Meetings are to be open to the public under the guidelines of the Sunshine Act of 197
Meetings include:
a. those of federal administrative agencies.
b. those of state administrative agencies.
c. those actions that are deemed "meetings" by the agency.
d. both a and b.
When an employee alleges religious discrimination because of an employee-observed
religious practice:
a. the employer must bypass seniority rules to accommodate the employee.
b. the employee must honor all bona fide religious practices.
c. the employer must make reasonable efforts to accommodate religious beliefs.
d. the employer must call in a substitute worker at additional cost.
Which of the following is not an example of an agreement injuring public service?
a. agreements to sell public offices
b. agreements to obtain pardons through offers of money
c. agreements to submit a bid on a construction project
d. agreements by public officers to accept less in pay than stipulated by law
Under Regulation D, Rules 505 and 506, sales may be made to how many accredited
investors?
a. an unlimited number
b. fewer than fifty (50)
c. fewer than thirty-five (35)
d. three (3) whose net assets collectively total at least $100 million
What type of damages is recoverable when the defendant's tortious conduct is
accompanied by fraud, malice, or willful or wanton conduct?
a. compensatory
b. consequential
c. nominal
d. punitive
The rights and duties of the landlord and tenant are based on principles of real estate
law and contract law.
Gregory, a comedy writer, entered into a contract with Wessel, a comedian. The contract
provided that Gregory would provide Wessel with a 15-minute monologue for his
upcoming appearance on Comedy Hour and that Wessel would pay Gregory $250. All
performers on Comedy Hour make $500 per appearance. As Gregory knows, the last
time Wessel appeared on Comedy Hour he was asked to make special guest
appearances at three local comedy clubs using the same monologue. He earned a total
of $750 for the three performances. Shortly before Wessel was scheduled to appear on
Comedy Hour, Gregory informed him that he was unable to provide the monologue. As
a result, Wessel was forced to cancel his appearance. Wessel sued Gregory for breach of
contract and requested damages of $1,250. What will result?
Penalties for violating usury laws are uniform from state to state.
The subterranean lending market makes loans to consumers who have bankruptcies, no
credit history, low-to-moderate incomes, or a poor credit history.
One desiring to leave the balance of an estate to a specified person or group after
specific bequests are satisfied may do so by making a residuary bequest in a will.
To satisfy the statute of frauds, the writing must be signed and must include the price of
the goods.
A trustee cannot make decisions on matters that could not be foreseen by the settlor.
No partner can hire an employee unless all partners agree on the need for the position.
The use of letters of credit arose in international trade.
Under both the CISG and the UCC, a buyer may reject goods only if the tender of the
goods is a fundamental breach of the contract.
Endorsements may be classified in terms of whether the indorser has added any words
to the endorsement and what those words are.
Franchisors may be found liable for the wrongful conduct of their franchisees on an
apparent authority theory when the conduct of the franchisor creates an appearance of
authority.
Miriam issued two checks. The first check was made payable to her neighbor for a used
car that the neighbor sold to Miriam. The second check was a rent payment to Miriam's
landlord for the current month's rent.
The car was purchased on the basis of the neighbor's written assurance that the car had
only 38,000 miles of use. After Miriam took possession of the car, Miriam's mechanic
checked the vehicle and substantiated that the odometer had been turned back. The car
had actually been used for 79,000 miles. Miriam stopped payment on the check and
offered to return the car. Meanwhile, the neighbor had purchased a computer and had
negotiated Miriam's check to the vendor in payment. Discouraged by the problems with
the car, Miriam decided to take a vacation. She issued a written stop payment to her
bank on the rent check because she intended to use this money for the vacation.
Although the drawee bank had ample time to act, it made an error and paid the rent
check instead of stopping payment. Two lawsuits resulted. In the first, the vendor of the
computer sued Miriam on the check. In the second, Miriam sued her bank for paying
over her timely stop payment order. Decide both cases.
Subornation is the right of a party secondarily liable to stand in the place of the creditor
after making payment to the creditor and to enforce the creditor's right against the party
primarily liable in order to obtain indemnity from such primary party.
Sue Thompson received a home "cold-canvas" sales call from a representative of the
Enlightened Encyclopedia Company. The salesperson, after a rather aggressive
presentation, convinced Sue to order a $1,200 Deluxe Encyclopedia set for her two
children. Sue was impressed with the quality of the books, but shortly after signing the
contract, she realized that she could not really afford to make the required monthly
payments. What rights, if any, does Sue have in this situation?
Employers have access and control rights to their employees' e-mail.
A corporation is a separate legal entity capable of owning property, contracting, and
being sued in its own name.
