Pushy Pat, a persuasive salesman, talked Nice Nancy into purchasing something she
didn’t really need or want. Nice Nancy may rescind the contract because of undue
influence.
a. True
b. False
The Australian government has opened a for-profit tourist information center in New
York City. If a dispute arises over the lease of the storefront, may the landlord sue the
Australian government in the United States courts?
a. Yes, because the Australian government was engaged in a commercial activity.
b. No, because of the Foreign Sovereign Immunities Act which forbids U.S. courts from
hearing any cases involving foreign governments.
c. It depends. The Australian government can only be sued if it signed a written waiver
giving up its immunity.
d. It depends. The Australian government can only be sued if it is a signatory on the
CISG.
The Family and Medical Leave Act applies to:
a. companies with 15 or more full-time workers.
b. companies with 50 or more employees.
c. companies with 100 or more employees.
d. any company engaged in interstate commerce.
Which of the following played a role in the creation of the U.S. government by solving
the problem of federalism?
a. The Visigoths.
b. The Iroquois Native Americans.
c. Confucius.
d. Alexis de Tocqueville.
In the case of Sepulveda v. Aviles, the New York Supreme Court, Appellate Division,
found evidence of undue influence in:
a. the relationship based on family connection between Seals and Aviles.
b. Aviless use of Seals funds and credit cards.
c. opinions of Aviles and Seals attorney about Seals mental state at the property closing.
d. All of the answers are correct.
An employer would be expected to make reasonable accommodations for a disabled
worker, such as
a. creating a new job that the worker can do.
b. adapting the work environment for all employees so the disabled worker doesnt feel
segregated or stigmatized.
c. providing transportation to and from the workers home.
d. allowing a part-time schedule.
Which of the following transactions would be considered by the IRS to be a taxable sale
of assets? Changing the form of business from:
a. a corporation to an LLC.
b. a partnership to an LLC.
c. an LLC to a corporation.
d. a sole proprietorship to an LLC
The case citation Pereda v. Parajon, 957 So.2d 1194 (2007) reveals that Pereda is the
plaintiff.
a. True
b. False
Mona co-signs a promissory note with her daughter Beth so Beth can purchase her first
car. Mona will be discharged from her obligation on the note:
a. if Beth pays the obligation in full under the terms of the note.
b. only if Mona pays half of the value of the note.
c. when Beth turns 18.
d. only if Mona dies before Beths obligation is discharged.
The doctrine of precedent is binding on all courts from county courts to the U.S.
Supreme Court.
a. True
b. False
Contracts in which one party agrees to buy all his requirements of certain goods from
the other party are generally unenforceable because there is no definite amount.
a. True
b. False
One purpose of contract law is to make business matters more predictable.
a. True
b. False
First Federal loaned Madeline $20,000 to purchase a new van. The van was for
Madeline’s personal and family use. First Federal’s security interest is a purchase money
security interest which perfects only upon filing a financing statement.
a. True
b. False
The remedy of reformation:
a. applies only when money damages are inadequate.
b. can be used to correct mistakes in the original contract
c. is available if fraud is involved.
d. is a commonly used remedy.
Insiders must turn over to the corporation any profits they make from the
purchase and sale or sale and purchase of company securities made within a six-month
period.
a. True
b. False
The European Union prohibits the transfer of personal customer information to
countries that lack adequate privacy protection.
a. True
b. False
A statute of repose places an absolute limit on when a lawsuit may be filed regardless of
when the defect is discovered.
a. True
b. False
Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to
form an enforceable contract.
a. True
b. False
If the United States sets a limit on the number of cars that can be imported, this action is
a form of tariff.
a. True
b. False
Unlike with patents, the ideas underlying copyrighted material need not be novel.
a. True
b. False
Any contract involving a sale of goods of $100 or more must be in writing.
a. True
b. False
Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee. The coffee was to
be delivered on September 1. Since the contract included a date for performance, time
is of the essence and the delivery date is strictly enforceable.
a. True
b. False
On Monday, Mick puts an offer in the mail to Sheri to sell his guitar for $50. Monday
night when jamming with his buddies, he decides he will really miss his old guitar and
has second thoughts about selling it. Tuesday morning he puts a revocation in the mail
informing Sheri he has changed his mind and the guitar is no longer for sale. The
revocation is effective on Tuesday morning.
a. True
b. False
If you lease a car rather than buy one on credit, you have no statutory consumer
protection.
a. True
b. False
Nelson writes Leah a check for mowing his lawn. Leah deposits the check in her bank,
but it is not paid by Nelsons bank. Leah calls Nelson to notify him that her bank
returned his check to her unpaid. Leahs notice of the dishonor is insufficient; she must
provide written notice.
a. True
b. False
In Jones v. Clinton, the court held:
a. Paula Jones did not demonstrate the essential elements for her claim.
b. Paula Jones was entitled to a summary judgment.
c. public policy required that the case be dismissed because of the Presidents
governmental position.
d. President Clinton failed to comply with a discovery order.
Bankruptcy is regulated by federal law.
a. True
b. False
Debra and Lawrence have an equal partnership. This year, after expenses, the
partnership had a profit of $200,000. Debra and Lawrence will each pay taxes on:
a. whatever they receive from the partnership.
b. $50,000.
c. $100,000.
d. None of the above. The partnership itself will pay the taxes on the businesss profit.
The President has the power to remove the chairperson of the Consumer Product Safety
Commission, an independent federal administrative agency, if the President disagrees
with the chairperson’s actions.
a. True
b. False
Public policy means the law that comes from the:
a. state legislature.
b. executive branch of the government.
c. courts that decide what would have a negative impact on society.
d. Constitution.
Brian is a police officer. He just turned 54 years old and is worried that he will be
forced to retire next year when he turns 55. The Age Discrimination in Employment Act
will protect him if his employer tries to force him to retire early.
a. True
b. False
Generally, a contract may include language that limits or alters the damages recoverable
for a breach of warranty, as long as the restrictions are not unconscionable.
a. True
b. False
Morefield Custom Design sends 30 recliners by rail to Danville Furniture. To show
where the goods will be shipped and who gets them when they arrive, Morefield will
obtain ____, which can be used as collateral in a secured transaction.
a. a warehouse receipt.
b. a bill of lading.
c. chattel paper.
d. a deposit account.
A subpoena duces tecum is different from an ordinary subpoena in that a subpoena
duces tecum:
a. can only be given to an expert to require a personal appearance before a court or
administrative hearing.
b. is binding on a person even if it is mailed to the person rather than handed to her by a
process server.
c. allows for privileged or confidential information to be turned over to the court or
administrative agency.
d. requires the person to bring specified documents to the court or administrative
hearing.