The UPA provides that partners are __________ liable on all debts and contract
obligations of the partnership.
a. jointly
b. strictly
c. jointly and severally
d. partially
The powers of a trustee are determined solely by the trust instrument.
a. True
b. False
If a person dies intestate, his property will be:
a. given to his beneficiaries.
b. passed to his children.
c. kept by the state.
d. distributed as prescribed by the state.
Which of the following debts would be discharged in bankruptcy?
a. Consumer credit loans for a stove.
b. Property taxes on a beach house.
c. Student loans.
d. Alimony payments past due.
Sean has a right against Tanner and assigns it for value to Megan. Later, Sean gives
Tanner a release. Megan:
a. will be unaffected by Seans action.
b. may recover damages from Sean for breach of an implied warranty.
c. may recover damages from Tanner for breach of an implied warranty.
d. has lost her right and has no remedy.
The buyer’s incidental damages resulting from the seller’s breach include:
a. expenses reasonably incurred in inspection of rightfully rejected goods.
b. any commercially reasonable charges or commissions in connection with obtaining
cover.
c. any reasonable expenses connected to the delay.
d. All of these.
e. None of these.
A bondholder generally takes less of a financial risk than a shareholder of a corporation.
a. True
b. False
An interest that arises in a third party in the future is called a(n):
a. reversion.
b. remainder.
c. assignment.
d. fee simple absolute.
On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same
day John changes his mind and sends a letter of acceptance to Arlene. The letter of
acceptance will be effective only if it is received by Arlene before she receives the
rejection.
a. True
b. False
Under the NLRA, an employer can legally refuse to bargain with the union as a means
of applying economic pressure.
a. True
b. False
An executory promise, which is valid consideration to support a contract, is also the
giving of value to support holder in due course status.
a. True
b. False
The __________ established the MIGA to encourage increased investment in
developing nations.
a. World Bank
b. Regional Trade Communities
c. United Nations
d. NAFTA
Dr. Olson is a board-certified ophthalmologist who constructs some specially designed
examining tables to use in looking at his patient’s eyes. The tables are firmly attached to
the floor of the space he rents for his office. If Dr. Olson decides to move his office,
which of the following is correct?
a. The tables are fixtures that cannot be removed.
b. The tables are trade fixtures.
c. Dr. Olson may remove the tables if they can be removed without materially
damaging the realty.
d. The tables are trade fixture and thatDr. Olson may remove the tables if they can be
removed without materially damaging the realty.
Melody, age 17, makes a contract with Seung, who is an adult. Melody:
a. may exercise the power of avoidance, called disaffirmance, while still a minor, and
thereby be released from any liability on the contract.
b. may ratify the contract while still a minor, thereby surrendering the power of
avoidance.
c. has entered a void contract since she lacked capacity.
d. may disaffirm only after reaching the age of majority.
If First Bank receives a check for collection on Friday at 4:30 p.m., it does not have to
present the check to the payor bank by midnight Saturday.
a. True
b. False
The definition of in rem jurisdiction is jurisdiction based on claims against property.
a. True
b. False
To be constitutionally permissible, an enabling statute must establish reasonable
standards to guide an agency in implementing the statute. Using a broad phrase such as
“fair and equitable in an enabling statute meets this requirement.
a. True
b. False
Tony is a surety for Monica on a debt she owes to Francis. If Monica properly tenders
full payment and Francis refuses it, both Monica and Tony are discharged from the
debt.
a. True
b. False
In the Ferrell v. Mikula case, the Georgia Court of Appeals said that:
a. false imprisonment is the unlawful detention of the person of another for an
unreasonable length of time.
b. the essential elements of an action for false imprisonment include detention,
unlawfulness, and malice.
c. the elements of a cause of action for intentional infliction of emotional distress
include either intentional or reckless conduct that is extreme and outrageous, a causal
connection between the wrongful conduct and the emotional distress, and severe
emotional distress.
d. to constitute the tort of intentional infliction of emotional distress, action must be
intentional, not merely reckless.
The three distinct and independent branches of the United States government are:
a. the executive branch, the House of Representatives, and the U.S. Senate.
b. the federal judiciary, the House of Representatives, and the U.S. Senate.
c. the federal judiciary, the Congress, and the executive branch.
d. the state government, the federal government, and local government.
Temporary insurance coverage prior to the issuance of the actual policy may be
obtained by use of a(n):
a. premium agreement.
b. coinsurance clause.
c. option clause.
d. binder.
The minimum number of board members necessary to be present at a meeting in order
to transact business is known as:
a. a plurality.
b. the entire board of directors.
c. a quorum.
d. a minority.
Implied-in-fact conditions must fully and literally occur, and they are understood by the
parties to be part of the agreement.
a. True
b. False
Under the Second Restatement, the duty of a possessor of land to persons who come on
the land usually depends on whether those persons are:
a. invitees, trespassers, or licensees.
b. reasonable persons.
c. fiduciaries.
d. involved in abnormally dangerous activities.
The doctrine of res ipsa loquitur would permit the court to infer negligence in which of
the following situations?
a. A ladder rung broke under the weight of a worker’s foot.
b. A sign over a storefront fell on your head.
c. A patron of a restaurant slipped on a wet spot on the floor and hit her head on a chair.
d. All of these.
Which of the following can be the basis for an accountant’s liability under state law?
a. Contract law and negligence, but not criminal law.
b. Tort law, contract law, and criminal law.
c. Negligence, criminal law, and strict liability.
d. Intentional torts and negligence, but not contract law.
Article 9 of the UCC makes waiver-of-defense clauses effective against assignees in
consumer transactions.
a. True
b. False
A number of countries have joined together in Europe, Asia, Africa, and Latin America
to coordinate their regional economies. Which of the following has NOT been an
objective of such cooperation?
a. Creation of “regional” legislatures with actual powers.
b. Lowering of tariffs or removing other trade barriers.
c. Providing adequate and effective enforcement of intellectual property rights.
d. Establishing an economic and monetary union.
If Bill tells Sara that he will give her two days to decide if she wants to buy his car, he
cannot sell it to anyone else during that time.
a. True
b. False
The surety does not have the right of contribution from cosureties.
a. True
b. False
If the performance of a contract that was legal when formed becomes illegal because of
a subsequently enacted law, the duty of performance is discharged.
a. True
b. False
Misdemeanors are less serious crimes punishable by a fine or imprisonment in a local
jail.
a. True
b. False