Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip
to Canada. The contract was made on April 1 with the trip to begin on June 1. On May
1, Kevin notified Jim that he had changed his mind and would be unable to make the
trip. He also refused to pay Jim any compensation. In this case:
a. because the contract is executory, Jim has suffered no damages, and Kevin has no
obligation to pay any compensation.
b. Kevin has anticipatorily repudiated the contract and is immediately liable to Jim for
damages.
c. Jim must wait until June 1 to see if Kevin will perform his contractual duties and, if
he does not, then Jim may sue Kevin for damages.
d. Jim must try to find “cover” to replace the breached contract, and if he is not able to
do so before June 1, then Kevin is liable to Jim for damages.
Which of the following is correct with respect to a grand jury?
a. The grand jury decides the ultimate guilt or innocence of the defendant.
b. The grand jury hears testimony of the defendant.
c. The grand jury issues an indictment if it finds sufficient evidence to justify a trial on
the charges alleged.
d. All of these are correct.
Pleadings are the post-judgment requests of the losing party for a higher court to take an
appeal of the case.
a. True
b. False
Fitness for a particular purpose and merchantability are implied warranties that apply
only to sales by commercial vendors.
a. True
b. False
An accommodation maker is not liable on a note since he only agreed to sign as a favor
to the maker.
a. True
b. False
Kant’s philosophy rejects the idea that the end justifies the means.
a. True
b. False
A trustee in bankruptcy under Chapter 7 may sell the property of the debtor’s estate.
a. True
b. False
Barry buys a car from a dealer, which is sold to him “as is” and “with all faults.” The
next day, the engine blows up. Barry can sue the dealer for breach of the implied
warranty of fitness.
a. True
b. False
Which of the following is the most convincing evidence of a partnership arrangement?
a. Two or more persons are co-owners of property used in a business.
b. Two or more persons have a written agreement regarding a fundraiser for charity.
c. Two or more persons carry on a business for profit, but they have no formal
agreement.
d. Two person share a joint savings account in which they deposit money and share the
interest.
Most constitutional protections apply only to governmental, or state, action.
a. True
b. False
If the principal debtor defaults, the surety has rights against the principal debtor, third
parties, and cosureties. These rights would include:
a. exoneration.
b. reimbursement.
c. subrogation.
d. contribution.
e. All of these.
Trade symbols would include which of the following?
a. Service mark.
b. Certification mark.
c. Collective mark.
d. All of these.
If a limited partner votes on an amendment to the partnership agreement allowing a new
business venture, he will not lose his limited status.
a. True
b. False
A form of strict liability applies to all except which of the following situations?
a. A lawnmower sold in a defective condition that injures its owner.
b. A fireworks factory that blows up and injures townspeople and their property.
c. Abnormally risky medical procedures.
d. A herd of goats that walk onto a neighbor’s property and trample and eat the
neighbor’s roses.
Pamela, without authorization, eavesdrops on a conversation between Mark and Elise.
Pamela has not committed the tort of intrusion unless she makes the conversation
public.
a. True
b. False
If a contract explicitly provides that it may be assigned, then rights under it are
assignable even if the assignment would change the duty, risk, or burden of
performance on the obligor.
a. True
b. False
Intoxicated persons are liable in quasi-contract for necessaries purchased during their
incapacity.
a. True
b. False
Under the Title VII’s prohibition of sex discrimination in the workplace:
a. a sexual harassment suit can be maintained even if the person who is harassed suffers
no economic loss and the only injury is a hostile work environment.
b. sexual harassment is not covered unless the harassed person is not promoted or is
fired for not complying with the person seeking the sexual favors.
c. same-sex harassment is not actionable under Title VII according to a ruling of the
U.S. Supreme Court.
d. sexual harassment charges cannot be maintained against an employer who tolerates
sexual harassment, but only against the person instigating the harassment.
The certificate of a limited partnership must be amended if a new general partner is
admitted.
a. True
b. False
Joanne, a minor, sold her laptop computer to Bruce, an adult. Bruce then sold the laptop
to Anna, also an adult, who had no knowledge of the fact that the original owner was a
minor. Under the Uniform Commercial Code, Joanne may:
a. avoid her contract with Bruce and recover her laptop.
b. not avoid her contract with Bruce and may not recover her laptop.
c. register with the UCC filing department and require that if Anna sells the laptop she
must give Joanne the rights of first refusal.
d. None of these.
In the case of Pittsley v. Houser, the court:
a. held that the contract should be severed into different parts, applying the UCC to the
part of the contract involving goods and the common law to the services part of the
contract.
b. held that the “predominant factor” test contravened the UCC’s declared purpose.
c. found the “predominant factor” test was the better, more prudent rule.
d. found the CISG governed the contract in question.
All intervening events that occur subsequent to the defendant’s negligent conduct will
relieve the defendant of liability.
a. True
b. False
Which of the following is untrue regarding the revocation of a will?
a. There can be a partial revocation.
b. An inadvertent destruction of a will acts as a revocation.
c. The execution of a second will does not of itself constitute a revocation of an earlier
will.
d. Divorce does not ordinarily revoke a will.
Tim mails an offer to Brian on June 15. Brian receives the offer on June Tim mails a
revocation of the offer on June 17. Brian mails a letter of acceptance on June 18. Brian
receives the revocation on June 19. Tim receives the letter of acceptance on June 20.
Was a contract formed?
a. Yes, on June 16.
b. Yes, on June 18.
c. Yes, on June 20.
d. No, the offer was revoked before acceptance.
An agent who makes a contract for a disclosed principal whose contracts are voidable
for lack of contractual capacity:
a. is never liable to the third party.
b. can be liable to the third party under certain circumstances.
c. is liable to the third party only if the agent warrants the principal has capacity.
d. is ordinarily personally liable to the third party if the principal avoids the contract.
The NHTSA has the authority to set motor vehicle safety standards that promote crash
prevention.
a. True
b. False
Elmore purchases goods from Grady, and Elmore executes and delivers a negotiable
note to Grady for $1,200, payable to Gradys order in 30 days. Two weeks later, Grady
negotiates the note to McDaniel. Which of the following is true?
a. McDaniel is required to notify Elmore that he acquired the note.
b. If the goods are defective, Elmores defense will necessarily be available against
McDaniel.
c. Whether Elmores defense is available against McDaniel will depend on whether
McDaniel acquired the note in good faith and for value, had no knowledge of the
defense, and took the note without reason to question its authenticity.
d. McDaniel can acquire no greater rights than Grady had in the note.
The board approves a proposed amendment to deny existing preemptive rights to Class
A preferred, and to issue stock in a new Class D preferred that would be accorded
liquidation preference after all other classes of preferred stock. Preferred Classes B and
C would remain the same. Which of the following would be true?
a. Only Class B and C shareholders vote.
b. A majority of Class A, B, and C shareholders all together would be needed to pass the
amendment.
c. Class B and C shareholders would not be entitled to vote at all.
d. Class A and C shareholders would vote together.
Under the Bankruptcy Act, the debtor must file which of the following?
a. A list of creditors.
b. Copies of tax returns for the previous five years.
c. A list of family members and persons who might be considered “insiders.
d. All of these.
Ben and Kate had been negotiating Ben’s employment contract in conversations over
the phone for a couple of weeks. Finally, they agreed on some contract terms. Kate
offered to create a draft of the contract for Ben to read over. On the same day Ben was
fired from his job. Afraid he would be unemployed, Ben signed Kate’s draft without
reading it. In this example Ben:
a. can avoid the contract because of mistake by failure to read.
b. can avoid the contract because he was the victim of economic duress.
c. cannot avoid the contract because of economic duress or failure to read.
d. may rescind the contract because of unilateral mistake.