The RUPA treats a partnership as a legal entity in which one of the following respects?
a. Liability of partners for partnership obligations.
b. For the purpose of suing or being sued.
c. For all purposes.
d. Assignment of a partners interest.
The federal government leaves corporate stock regulation to the states since
corporations are state-created entities.
a. True
b. False
A crime is an act or omission in violation of public law and punishable by the
government.
a. True
b. False
Bill is the accountant for Cheatam and Sons Co. For many years he has kept two sets of
books, one with real figures and another with figures he will use in case the IRS audits.
When Bill, while working on Cheatam’s books, is arrested for fraud, what will happen
to the books?
a. They are privileged communications and therefore inadmissible as evidence against
Bill.
b. They are protected by the Fifth Amendment and therefore are inadmissible.
c. They may be admitted as evidence since they were taken pursuant to a valid arrest.
d. They may be admitted as evidence only if Bill consented to a search of his offices.
Under the Restatement, if the parties to a contract attach materially different meanings
to their manifestations and neither party knows or has reason to know the meaning
attached by the other:
a. and neither party is to blame, there is no contract at all.
b. and both parties are to blame, there is no contract at all.
c. and one party is to blame, that party will be held responsible, but the contract is not
void.
d. All of these.
Revocation and rejection give the buyer the same rights and duties with respect to the
goods.
a. True
b. False
Clara receives a telephone call from her Aunt Mary in which Mary says she has decided
to give Clara her pet python as a gift. Clara may refuse to accept the gift.
a. True
b. False
The reasonable person standard is:
a. external and objective.
b. external and subjective.
c. internal and objective.
d. internal and subjective.
In reorganization cases the creditors usually look to the debtor’s property at the
commencement of the bankruptcy proceeding.
a. True
b. False
The drawee is the individual who signs a check and promises to pay.
a. True
b. False
The business law topics of contracts, agency, property, and trusts are governed
primarily by the common law.
a. True
b. False
A creditor will have to exhaust all the possible legal procedures to try to collect from
the principal debtor before he can collect from a conditional guarantor of collection.
a. True
b. False
With the exception of pledges, a security agreement must:
a. be in an authenticated record.
b. be signed by the debtor with his personal, not business, name.
c. contain at least a generic description of the collateral, such as “all my personal
property.”
d. All of these.
The rights of a holder of a negotiable document of title to whom it has been duly
negotiated include:
a. title to the document.
b. title to the goods.
c. all rights accruing under the law of agency or estoppel.
d. All of these are rights.
Losses due to computer crimes are estimated to be:
a. in the millions of dollars.
b. in the tens of billions of dollars.
c. in the trillions of dollars.
d. decreasing because of stricter security measures now in place.
In order for Mitchell, the owner of an asphalt factory, to obtain a permit from the
Colorado Environmental Protection Agency to modify his factory in a PSD area, he
must demonstrate that his factory will utilize the best available control technology.
a. True
b. False
If no place of tender is indicated by the contract, delivery is presumed to be made at
seller’s place of business.
a. True
b. False
Although not covered by the original statute of frauds, most states have statutes
requiring a writing to make all but which of the following contracts enforceable?
a. A contract to make a will.
b. A contract authorizing an agent to sell real estate.
c. Contracts for the sale of securities.
d. Contracts creating certain types of security interests.
A corporation is a creature of the state and may be formed only by substantial
compliance with a state incorporation statute.
a. True
b. False
Doug takes a $500 check drawn by Gail to Gail’s drawee bank to cash it. Gail has over
$10,000 on deposit in her account. If her bank refuses to pay Doug:
a. Doug can sue the bank and demand payment.
b. if the check is over 30 days old, the bank has a right to refuse payment.
c. the bank has incurred a liability to Gail for its improper refusal to pay the check.
d. All of these.
Darrell owns a parcel of land that is encumbered by a mortgage held by the First
National Bank. Darrell agrees to sell the land to Paul for $50,000. Darrell and Paul
together go to the First National Bank to discuss the sale and purchase with the banker.
Darrell, Paul, and the banker sign an agreement stating that Paul will assume the
mortgage and that Darrell will be discharged from all further liability on the mortgage.
In this case:
a. the bank is a third party donee beneficiary.
b. the bank can collect from Darrell if Paul defaults.
c. Darrell is a third party beneficiary of the agreement between Paul and the bank.
d. the agreement among the three is a novation.
a. Discuss primary liability on a note; on a check.
b. What is secondary liability? What must be done before a person with secondary
liability can be sued? Who has secondary liability on a note? Who has secondary
liability on a check?
c. How does contractual liability on the instrument differ from warranty liability?
The Bankruptcy Code grants to U.S. District Courts:
a. original and exclusive jurisdiction over all bankruptcy cases.
b. original, but not exclusive, jurisdiction over civil proceedings arising under
bankruptcy cases.
c. exclusive jurisdiction over all the debtor’s property.
d. All of these.
In diversity of citizenship cases, federal courts apply:
a. federal substantive and procedural law.
b. state substantive and procedural law.
c. state procedural and federal substantive law.
d. federal procedural and state substantive law.
Subject matter jurisdiction refers to the authority of a particular court to adjudicate a
controversy of a particular kind.
a. True
b. False
“Order paper” is negotiated by delivery only.
a. True
b. False
A star basketball player in the NBA:
a. is a “public figure” with respect to a defamation action against a newspaper.
b. is a “public official” with respect to a defamation action against a newspaper.
c. may win a defamation case against the media if he can prove the media acted
negligently in reporting an untruth about him.
d. is not subject to the “actual malice” test in defamation actions against the press.
The APA’s requirements that the agency provide prior notice of a proposed rule, an
opportunity for interested parties to participate in the rulemaking, and publication of a
final draft containing a concise general statement of the rule’s basis and purpose are the
requirements for issuance of rules in accordance with:
a. formal rulemaking.
b. hybrid rulemaking.
c. informal rulemaking.
d. negotiated rulemaking.
The doctrine of __________ is the basis for an employer’s liability for an unauthorized
tort committed by an employee within the scope of employment.
a. indemnification
b. respondeat superior
c. apparent authority
d. direct liability
In 1974, Congress enacted what law to provide consumers who purchase a home with
greater and more timely information on the nature and costs of the settlement process?
a. RESPA
b. CPSC
c. OSHA
d. FCCPA
Which of the following is NOT true regarding specific performance?
a. It will not be granted if money damages would be adequate to compensate the injured
party.
b. It is granted in contracts involving unique items of personal property.
c. It will be granted frequently in contracts involving the sale of goods.
d. The courts will not order directly the specific enforcement of contracts for personal
services.