An important and fundamental part of administrative law is the limits imposed by
judicial review upon the activities of administrative agencies.
a. True
b. False
Agency relationships are governed primarily by federal statute.
a. True
b. False
Under the Fair Credit Reporting Act:
a. credit reports may be used by potential employers and lenders, but not insurers.
b. consumer reporting agencies must notify consumers, orally or in writing, before
making an investigative report.
c. if a consumer does not agree with information in the file and so notifies the reporting
agency, the agency must reinvestigate the matter, even if the agency thinks the
complaint is frivolous or irrelevant.
d. upon request, each nationwide consumer reporting company must provide a free
copy of an individuals credit report once every 12 months.
A tenancy by the entireties, created only by a conveyance to a husband and wife, is
terminated by divorce.
a. True
b. False
In order to be valid, a will must generally include all but which one of the following?
a. Signature of the testator.
b. A written document.
c. Signatures of witnesses.
d. Signature of the executor.
The Economic Espionage Act of 1996 defines theft of trade secrets to include:
a. stealing, obtaining by fraud, or concealing such information.
b. without authorization copying or mailing such information.
c. purchasing or possessing a trade secret with knowledge that it has been stolen.
d. All of these.
A conditional acceptance:
a. generally accepts the original offer, but provides a way to later avoid contractual
obligations.
b. is a common type of counteroffer.
c. operates as a rejection and not a new offer.
d. cannot exist because an acceptance is, by definition, an act that manifests the offerees
willingness to enter into a contract on the terms of the offer.
Action Play Equipment ordered 200 feet of chain, 400 clasps, and 50 swing seats from
Brace Company for $1,600 to be delivered within three weeks of the order. Brace sent
back an acceptance form which stated payment was due within 30 days of delivery or a
finance charge of 2% per month would be added to the balance. What is the status of
the interaction between Action and Brace?
a. There is a valid contract under the UCC, and the additional payment terms become
part of the contract unless Action objects within a reasonable period of time.
b. There is a valid contract for the goods, but the payment terms will not become part of
the contract.
c. There is no contract, because Brace has made a counteroffer by adding payment
terms.
d. There is no contract, because the method of transportation has not been decided.
Arthur, Betty, and Clara each inherit an undivided one-third interest in an apartment
complex. Instead of selling it, they decide to continue to operate it for the next few
years as a sideline to their other occupations just to see if they can earn some extra
money. What are they?
a. A partnership.
b. Co-owners only.
c. A corporation.
d. Creditors of the apartment complex.
A foreign company, partially owned by that foreign government, manufactures
televisions in the foreign country. The cost to the company for the manufacture of the
product is the equivalent of $60 in the U.S. Because of excess production, the firm
exports 50,000 sets to the United States where they are sold for $75 each. If the nearest
rival U.S.-made set sells for $85, the action of the foreign company:
a. constitutes price-fixing.
b. violates the GAAT anti-dumping provisions.
c. violates the Sherman Act, because of the involvement of the foreign government in
the company.
d. appears to be legal.
The power to convert private property to public use is known as:
a. allocation.
b. eminent domain.
c. after-acquired title.
d. enabling.
A person has notice of a fact if the person has reason to know it exists from all of the
facts known to the person at the time in question.
a. True
b. False
Mary cleaned her dorm room in the spring and left a pile of books in Sara’s room. Mary
told everybody that the books were a gift to Sara. Does Sara have to dispose of them?
a. Yes, because there was a present intent and delivery.
b. Yes, because they are constructively in Sara’s possession.
c. No, because Sara did not accept the books.
d. No, because there was no agreement between the two parties.
The Revised Act does not consider a transfer of its own stock by ZYX Corporation to
its stockholders a distribution.
a. True
b. False
Possible remedies for a breach of contract include:
a. compensatory damages.
b. fines.
c. incarceration.
d. All of these.
e. None of these.
In the case of Lefkowitz v. Great Minneapolis Surplus Store, Inc., the court decided that
the store’s advertisement was not a valid offer to enter into a contract but was merely an
invitation to make an offer.
a. True
b. False
Legal sufficiency of consideration and adequacy of consideration are virtually
synonymous terms.
a. True
b. False
All of the following may, in general, revoke a will by operation of law EXCEPT:
a. subsequent marriage.
b. subsequent divorce.
c. birth of a child.
d. all of these will revoke a will by operation of law.
Substantive law creates, defines, and regulates legal rights and duties.
a. True
b. False
The courts may grant a petition of involuntary dissolution if shareholders:
a. do not approve of fundamental changes of the board.
b. show that the corporation has not kept adequate records or filed annual reports.
c. did not receive their dividends.
d. show that corporate assets are being squandered.
Damages recoverable for the tort of disparagement may include:
a. monetary losses that indirectly result from the impairment of the marketability of the
property disparaged.
b. expenses for the cost of notifying customers.
c. Both (a) and (b).
d. None of these.
Under the Civil Rights Act of 1991,
a. only victims of racial discrimination can recover compensatory and punitive damages
for intentional discrimination.
b. victims of intentional racial discrimination are still entitled to receive unlimited
compensatory and punitive damages.
c. victims of sex discrimination are no longer subject to ceilings on the amount of
recoverable punitive damages.
d. victims of disability discrimination are not subject to ceilings on the amount of
recoverable compensatory damages.
The Sunshine Act allows for closed meetings if they concern agency participation in
pending or anticipated litigation.
a. True
b. False
Carol buys some items at the drugstore and writes a check to the store on her account at
First Bank. Who is the drawee?
a. Carol.
b. The drugstore.
c. First Bank.
d. There is none.
A state constitutional provision conflicts with a federal statute. The:
a. federal statute is supreme.
b. state constitutional provision is supreme.
c. federal statute is supreme if Congress has expressly so provided.
d. state constitutional provision is supreme if it expressly so states.
A short-form merger:
a. is not a merger at all but a form of consolidation.
b. may be undertaken without director approval.
c. allows no appraisal rights for the parent’s minority shareholders.
d. requires shareholder approval.
A contractual remedy is optional unless the parties expressly agree that it is to be
exclusive.
a. True
b. False
Jan owns lots in the Cruz neighborhood, where she was planning to build an 8-story
apartment complex. Cruz has adopted a single-family dwelling ordinance that
encompasses Jan’s lots. Jan goes to the library and finds she can attempt to get judicial
review of ordinances based on the following:
a. the zoning ordinance is invalid.
b. the ordinance has been applied unreasonably.
c. the ordinance amounts to confiscation of property.
d. All of these.
The difference between common and preferred stock is that the latter is a debt
instrument, whereas the former represents an equity interest in the company.
a. True
b. False
Invasion of privacy consists of:
a. appropriation.
b. intrusion.
c. public disclosure of private facts.
d. All of these are invasions of privacy.
Utilitarian notions underlie cost-benefit analysis.
a. True
b. False