The standard statute of frauds:
a. requires full disclosure in the case of consumer sales on credit.
b. requires a seller of real estate to obtain a broker’s license.
c. specifies the punishment of perjury.
d. requires that a contract for the sale of land be evidenced by a writing.
Which of the following statements describes a check?
a. The drawer is always a bank.
b. The maker is always a bank.
c. A check is generally payable on demand.
d. A check is a particular kind of note.
Which of the following can be consideration for a promise?
a. refraining from beating one’s spouse
b. promising to refrain from beating one’s spouse
c. refraining from smoking cigarettes
d. refraining from using cocaine
An unsolicited distribution of credit cards to persons who have not applied for them is:
a. allowed by most states.
b. voidable.
c. illegal.
d. authorized by nonuse.
The principal forms of business organization are:
a. sole proprietorships, joint ventures, and corporations.
b. unincorporated associations, partnerships, and corporations.
c. unincorporated associations, limited partnerships, and corporations.
d. sole proprietorships, partnerships, and corporations.
Persons who are in a partnership are called __________ partners.
a. general
b. silent
c. secret
d. nominal
A blank indorsement turns a(n) __________instrument into a(n) __________
instrument.
a. negotiable; non-negotiable
b. non-negotiable; negotiable
c. bearer; order
d. order; bearer
In mediation, the mediator acts as a:
a. judge.
b. attorney.
c. messenger.
d. expert witness.
An obligation to pay for the reasonable value of services rendered when there is no
contract would be called:
a. quasi-contractual.
b. quasi-enforceable.
c. semi-lawful.
d. valid.
The law could best be described as:
a. only statutory in nature.
b. only the creation of our courts.
c. a multitude of rights and corresponding duties.
d. none of the above.
When an employer intentionally treats some employees less favorably than others, the
legal theory that applies is:
a. disparate impact.
b. affirmative action.
c. reverse discrimination.
d. disparate treatment.
Which of the following is not consideration for a present promise?
a. a return promise
b. forbearance
c. the promise to pay one’s child support obligation, consistent with a pre-existing court
order.
d. the performance of a requested act
What is a principal purpose of the Superfund?
a. to establish environmentally-friendly zoning plans
b. to establish appropriate eminent domain compensation
c. to pay the cost of eliminating or containing condemned waste sites
d. to pay the cost of funding environmental impact statements for public projects
A durable power of attorney may be terminated by:
a. revocation by a competent principal.
b. the death of the principal.
c. revocation by a competent principal or by the death of the principal.
d. none of the above, since a “durable” power of attorney is designed by law to be
irrevocable under all circumstances.
The maximum amount of time that a minor has to disaffirm a contract is:
a. one year from the date of the agreement.
b. 30 days from learning of his or her right to disaffirm.
c. the age of majority.
d. a reasonable period of time after reaching the age of majority.
An assignee of a partner’s interest does not become a partner without the consent of the
other partners and is only entitled to:
a. participate in the management of the partnership.
b. receive the assignor’s share of the profits during the term of the partnership and the
assignor’s share of capital on dissolution.
c. inspect the books of the partnership.
d. vote on matters concerning the business of the partnership.
Unidentified members of a certain class may sue for negligent malpractice in states that
follow the __________ rule.
a. contact
b. known user.
c. unidentified user
d. foreseeable user
Regarding partnership property:
a. only a managing partner has the right to use firm property for firm business.
b. where a three-person partnership owns three autos, each partner owns one of the
autos individually.
c. on the death of a partner, that partner’s share of partnership property vests in his or
her next of kin.
d. a creditor of a partner cannot proceed against any specific items of partnership
property.
Which of the following powers is not available to the SEC pursuant to the Remedies
Act?
a. The SEC may start administrative proceedings against any person or entity regulated
by the SEC.
b. The SEC may start administrative proceedings against any person or entity not
regulated by the SEC.
c. The SEC may order an accounting and disgorgement of ill-gotten gains.
d. All of the above powers are available to the SEC under the Remedies Act.
An employer may be justified in discharging an employee because of the employee’s:
a. nonperformance of duties.
b. incompetency.
c. serious misconduct.
d. all of the above.
“Commercial speech” is protected by which provision of the constitution?
a. the First Amendment.
b. the Commerce Clause.
c. the Due Process Clause.
d. the Taxation Clause.
Cyber crime conduct is defined in:
a. existing criminal statues only.
b. computer-specific statutes only.
c. both existing criminal and computer-specific statutes.
d. state law only.
Damages in excess of actual loss are called:
a. punitive damages.
b. compensatory damages.
c. restitution.
d. nominal damages.
Which of the following is a permissive subject of bargaining as opposed to a mandatory
subject of bargaining?
a. wages
b. hours
c. benefits for already retired workers
d. no-strike no-lockout clauses
Payment to an authorized agent is:
a. payment to the principal only if the agent remits the payment.
b. payment to the principal if the third person informs the principal.
c. payment to the principal, provided the agent does not misappropriate the payment.
d. payment to the principal.
Which of the following is not a true statement regarding the commerce clause?
a. If the federal government establishes safety device regulations for interstate carriers,
a state cannot require different devices.
b. States may not use their tax power for the purpose of discriminating against interstate
commerce.
c. The commerce clause empowers Congress to regulate interstate commerce, but not
commerce with foreign nations.
d. A state cannot refuse to allow an interstate waste collector to conduct business within
the state on the grounds that the state already has enough waste collectors.
When a business owner uses an independent contractor to perform nonhazardous work,
the owner ordinarily is:
a. not liable for harm to third persons or their property.
b. not bound to contracts made by the independent contractor.
c. not liable for the negligence of employees of the independent contractor.
d. all of the above.
Mike Reilly suffered the loss of his home as a result of a chimney fire that was caused
by the ignition of soot in the chimney. This fire would be described as:
a. a friendly fire.
b. arson by negligence.
c. a strict liability fire.
d. a hostile fire.
Which of the following situations create(s) an exception to the statute of frauds writing
requirement?
a. non-resellable goods
b. receipt and acceptance
c. payment
d. all of the above
Which form of business entity was created primarily to shield innocent owners,
particularly those in professions, from malpractice liability generated from other owners
in the firm?
a. the limited partnership
b. the limited liability partnership
c. the limited liability company
d. none of the above
If an officer diverts a corporate opportunity, the corporation may recover from the
officer:
a. triple damages for breach of a fiduciary duty.
b. the profits of which the corporation has been deprived.
c. past wages for the time period in question.
d. any and all funds used to divert the corporate opportunity.
__________ goods are goods that, when mixed together, are indistinguishable.
a. Tangible
b. Intangible
c. Heterogeneous
d. Fungible
The making of an assignment __________ the assignor of any obligation of the
contract.
a. relieves
b. conditionally relieves
c. does not relieve
d. discharges
An agent’s duties must be expressly stated in the agency agreement and may not be
implied from the principal’s words or conduct.
An administrative agency whose erroneous decision causes a regulated person or
enterprise substantial loss is liable for such loss regardless of whether the agency acted
in good faith.
A promise to grant a mortgage on real property does not require written proof because it
is not a transfer of land.
When arbitration is mandatory under a statute, the losing party generally can appeal
from such arbitration to a court.
In contrast to contributory negligence principles, comparative negligence principles are
never applied to malpractice situations.
An act or omission of the landlord that substantially deprives the tenant of the use and
enjoyment of the premises is a constructive eviction.
If the theory of privity of contract still applied, it would be difficult for purchasers
injured by defective goods to sue manufacturers.
With regard to a bailment, a valid delivery and acceptance need not require that the
bailee be aware that goods have been placed within the bailee’s exclusive possession or
control.
Manuel sued Patricia on a promissory note. Patricia admitted signing the note, but
raised the defense that Manuel was not a holder in due course. Can Manuel recover
without proving that he is a holder in due course?
Uniform State Law generally is not applicable to business.
Standby letters of credit are used only in international trade situations.
A person who acquires the instrument on which the last endorsement is blank becomes
the holder.
Arnold Properties, Inc. had entered into a lease agreement with Janet for a residential
house. Janet made four (4) subsequent monthly payments. At the end of the four (4)
months, Janet learned that she was to be transferred to a new job in another state. Janet
approached her landlord and explained her situation. The landlord was unsympathetic
and refused to release Janet from her rent. The landlord insisted on enforcement of
rental payment for the duration of the lease, which was for one (1) year. Janet had not
provided for a release in her lease to cover the possibility of a job transfer. Must Janet
pay for the remaining eight (8) months of rent even if she is not in physical possession
of the property?
A party injured by the other party’s anticipatory repudiation of a contract has the right to
bring suit at the time of the repudiation, and before the date on which performance is
due.
When a malpractice claim relates to advice given to a client, there are strong arguments
for retaining the privity rule.
Agreements not to compete are always void.