In the case of partial destruction of identified goods before risk of loss passes to the
buyer, the buyer has the option to avoid the contract or to accept the goods with due
allowance from the contract price for the deterioration or deficiency.
a. True
b. False
Tate brings an action against Marsheen for damages from trespass to Tates property.
Tate must prove the case by a preponderance of the evidence.
a. True
b. False
Marshall, an agent of the North Carolina Pinery Corporation, in offering a cash
payment to an official of Mexico to convince the official to use his influence to assist
Pinery in obtaining a contract in Mexico, may have violated the laws of Mexico, but not
the laws of the United States.
a. True
b. False
In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department
and the Federal Trade Commission.
a. True
b. False
A fiduciary duty, arising out of a relationship of trust and confidence, is one of utmost
loyalty and good faith.
a. True
b. False
Which of the following describes the imposing of partnership duties and liabilities upon
a person who is not a partner in an existing partnership by reason of his consenting to
representation that he is a partner?
a. Partnership by estoppel.
b. Delectus personae.
c. A fiduciary duty.
d. Torts of partnership.
The legislative branch’s primary check on both the judicial and executive branches is
the power to:
a. veto executive or judicial decisions.
b. confirm appointments to the courts and agencies.
c. appoint judges and cabinet officials.
d. None of these.
A principal is contractually bound to a third party if the agent acts without any authority
but the principal ratifies the contract.
a. True
b. False
The Restatement and the Code have made the traditional test of objective impossibility
more stringent by requiring that the performance must be actually or literally
impossible in order to excuse a party from contractual duties.
a. True
b. False
A copyright would protect a photograph.
a. True
b. False
The main purpose doctrine is a court-developed exception to the suretyship provision.
a. True
b. False
Which of the following is a major limitation on the federal government’s power to tax?
a. Indirect taxes must be apportioned among the states.
b. All custom duties and excise taxes must be uniform throughout the United States.
c. Progressive tax rates are prohibited.
d. All of these.
A carpenter ordered 500 sheets of 1/2-inch plywood from her supplier, but received 498
sheets of 1/4-inch plywood. If she rejects these goods, she has no further obligation to
her supplier regarding these nonconforming goods.
a. True
b. False
Tender is an offer by a party, who is ready, willing, and able, to perform his obligations
under the contract.
a. True
b. False
The National Highway Traffic Safety Administration:
a. recalls autos for safety reasons.
b. tests the fuel efficiency of each year’s car models.
c. enforces trademark laws on cars and car parts to ensure buyers get what they think
they are buying.
d. None of these are correct.
Contributory negligence is a defense to a warranty of merchantability cause of action.
a. True
b. False
If a company has assets of over $10 million but trades its stock over the counter, it is
nevertheless required to comply with the 1934 Act if it has:
a. 500 or more shareholders.
b. one class of stock with 500 or more shareholders.
c. 500 or more shares of stock outstanding.
d. 500 different investors.
An express warranty within the meaning of the Code is created by which of the
following?
a. A sample.
b. A description.
c. A promise.
d. All of these.
Even if it has been lawfully and properly declared, a stock dividend may be revoked
unless it has been actually distributed.
a. True
b. False
A privilege may result in immunity from tort liability.
a. True
b. False
Use of “Evans & Hall, Ltd. as a corporate name would be:
a. permissible as long as it is distinguishable from the name of any domestic
corporation or any foreign corporation authorized to do business within the state.
b. impermissible because it does not clearly designate that the organization is a
corporation.
c. impermissible because it includes surnames.
d. permissible because the selection of a corporate name is purely up to the organizers
of the corporation.
In the United States, there is a right to a jury trial in any federal civil case at common
law, regardless of the amount of money involved.
a. True
b. False
Able, a resident of New York, has a dispute with Baker, a resident of Illinois, involving
a contract signed and performed in New York. His damages amount to $50,000, and he
wants to sue. The case can be brought:
a. in the New York state courts.
b. in the New York federal court.
c. only in the Illinois state courts.
d. in either the New York state courts or the New York federal court.
Cary, a prominent local attorney, was the subject of a newspaper article concerning a
trial in which he was involved as counsel. In that article, Cary was reported to have
been disbarred in another state ten years previously. It is not true of Cary, but of his
cousin, Frank. Cary will win a suit for defamation against the newspaper:
a. simply by proving the falsity of the statement.
b. only if Frank was not disbarred.
c. only if he can prove that the paper acted with actual malice.
d. by only showing that harm to his character resulted from the statement.
Active recruitment of minority applicants to meet hiring goals is termed :
a. reverse discrimination.
b. affirmative action.
c. comparable worth.
d. BFOQ.
The RMBCA states that “all corporate powers shall be exercised by or under the
authority of, and the business and affairs of the corporation managed under the direction
of, its:
a. board of directors.
b. chief executive officer.
c. officers.
d. shareholders.
Tyler is self-employed and alters some receipts so he will show more expenses and
therefore have a greater total of income tax deductions. Tyler has:
a. committed the crime of extortion.
b. engaged in securities fraud.
c. engaged in no criminal activity.
d. committed the crime of forgery.
The Economic Espionage Act of 1996 prohibits the theft of trade secrets and provides
criminal penalties for violations.
a. True
b. False
The suretyship provision has been interpreted to include promises made to a debtor.
a. True
b. False
The Fifth Amendment would protect a defendant from having to give blood samples to
the prosecution since it would be a form of self-incrimination as interpreted by the
courts.
a. True
b. False
When goods have been commingled, it is sometimes possible to get title by confusion.
a. True
b. False
A valid will must be witnessed. Which of the following statements about witnesses is
correct?
a. Most states require only one witness to a will.
b. The witnesses must see the testator write the will.
c. The witnesses must sign the will.
d. Under the law in all states, witnesses lose any bequests to them in a will they witness.