A limited liability partnership must include which of the following terms in its name?
a. LLP
b. limited liability partnership
c. either a. or b.
d. neither a. nor b.
In the absence of an express agreement permitting continuation of the business by the
surviving partners, they must wind up the business and account for the share of any
partner who has:
a. withdrawn.
b. died.
c. been expelled.
d. all of the above.
Which of the following statements made by the seller does not likely constitute an
express warranty?
a. “This looks beautiful on you.”
b. “This is 100 percent wool.”
c. “This motor generates 100 horsepower.”
d. “This is a 3.2 liter rotary engine.”
A contractual provision which states that a waiver of rights will not constitute a
modification to the contract is:
a. not enforceable as being in bad faith.
b. not enforceable as a violation of law.
c. enforceable by one party only.
d. enforceable.
The concept of immunity from liability means that:
a. one who harms another can be held liable only for voluntary acts.
b. certain persons are not subject to tort liability.
c. one who harms another without intending to do so is not subject to tort liability.
d. one who harms a child can never be sued by the parents of the injured child.
If a wire manufacturing company owned a mill to produce the metal used in making the
wire, this relationship between the companies would be best described as:
a. a conglomerate.
b. a holding company.
c. an integrated industry.
d. both b. and c.
Under collective bargaining:
a. groups of employers meet to draw up contracts for all of their employees.
b. representatives of the employees bargain with a single employer or a group of
employers for an agreement on wages, hours, and working conditions for the
employees.
c. groups of employees meet to dictate the terms of employment to their employers.
d. none of the above.
Under the CISG, a buyer may reject goods
a. consistent with the right of rejection set forth in the UCC.
b. if the goods are nonconforming to the contract in any way.
c. only if the tender is a fundamental breach of the contract.
d. only if the tender is illegal in subject matter and/or purpose.
Ordinarily, a temporary impossibility __________ the duty to perform.
a. suspends
b. excuses
c. discharges
d. none of the above
Goods held for sale or lease are:
a. inventory.
b. equipment.
c. consumer goods.
d. none of the above.
Unless otherwise agreed, the proper place for the delivery of goods is:
a. the buyer’s place of business.
b. the seller’s home.
c. a delivery service selected by the seller.
d. the seller’s place of business.
During a special meeting of shareholders at which a quorum is present, action may
always be taken by the shareholders on:
a. any matter affecting the welfare of the corporation.
b. the removal of one or more of the directors.
c. the determination of the price at which to sell the products manufactured by the
corporation.
d. the subject specified in the notice of the meeting.
Ownership of shares of stock may be transferred by any of the following methods
except:
a. delivery of the stock endorsed by its owner in blank.
b. delivery of a notice of intent to transfer.
c. delivery of the stock endorsed by its owner to a specified person.
d. delivery of the certificate and a separate power of attorney executed by the owner.
Pasquale and Paul were sureties on the debt of Rose. Each had a $100,000
responsibility. Upon Rose’s default, Pasquale paid $50,000 to the creditor. How much
may Pasquale recover from Paul under the concept of contribution?
a. zero
b. $50,000
c. $10,000
d. $25,000
A holder through a holder in due course:
a. has greater rights than a holder in due course.
b. has fewer rights than a holder in due course.
c. has the same rights as a holder in due course.
d. must meet the requirements for becoming a holder in due course in order to achieve
holder in due course status.
__________-sign is a federal law that recognizes digital signatures as authentic for
purposes of contract formation.
a. Cyber
b. We
c. You
d. E
The plaintiff in a quasi-contractual action can recover:
a. lost profits.
b. damages for mental distress.
c. the reasonable value of the benefit conferred upon the defendant.
d. for all the damages sustained.
The developing law of cyberlaw as is relates to torts incorporates a variety of
extensions of established legal principles to cyberspace. Examples of tort principles
relevant to cyberlaw include:
a. violating privacy rights through the World Wide Web.
b. improper use of information gathered from the Internet.
c. defaming someone through the Internet.
d. All of the above.
At an auction sale, each bid is:
a. a counteroffer to the auctioneer’s offer of the merchandise.
b. an acceptance of the auctioneer’s offer.
c. an invitation to negotiate.
d. an offer.
The parol evidence rule may not apply if:
a. the contract is materially incomplete.
b. the parties disagree on the meaning of the contract.
c. there is no ambiguity regarding the terms of the contract.
d. one party is unable to perform the contractual obligations.
An agreement not to compete is enforceable:
a. in the sale of a business.
b. between competitors.
c. in contracts for the sale of goods.
d. in contracts for the sale of securities.
A seller may cancel a sales contract if the buyer:
a. wrongfully rejects the goods.
b. repudiates the contract.
c. fails to make a payment due on or before delivery.
d. all of the above.
In the case of an illegal contract, both parties usually are prohibited from seeking relief
in the courts:
a. if the illegal contract has not been performed.
b. if the contract has been partially performed.
c. if the contract has been fully performed.
d. all of the above.
The failure to act or perform in the manner called for by a contract is a:
a. waiver.
b. breach.
c. forbearance.
d. reservation of right.
An endorsement is restrictive when:
a. the paper is “for deposit only.”
b. the paper is being negotiated for collection.
c. the paper is being conditionally negotiated.
d. all of the above.
Which of the following can satisfy the statute of frauds writing requirement?
a. bills of sale
b. letters
c. telegrams
d. all of the above
The rights of an employee to be compensated are governed primarily by the same
principles that apply to the compensation of a(n):
a. partner.
b. stockholder.
c. agent.
d. court-appointed trustee.
A thief stole Art’s checkbook and forged Art’s name as drawer of a check. The drawee
paid the check in good faith and sent it to Art with the monthly statement on January 3,
2008. The thief forged other checks during February and March of 2008, which the
drawee in good faith paid. All paid checks were sent to Art with monthly statements. On
May 25, 2009, Art discovered all of the forgeries and notified the drawee. For which
check(s) is Art entitled to be reimbursed?
a. none of them
b. all of them
c. the first check only
d. the last check only
A revocation of acceptance:
a. is accomplished only by a return of the goods.
b. is effective when the buyer notifies the seller.
c. requires no notification.
d. is a breach of contract.
A legally binding agreement that can be rejected at the option of one of the parties is
called a(n):
a. void agreement.
b. revoked contract.
c. voidable contract.
d. optional agreement.
A buyer always has a right to examine the goods to determine if, in fact, the goods
conform to the contract.
For an agency to be terminated by operation of law because of the principal’s death, the
agent must be notified of the death.
A sole proprietor must file a certificate indicating that he or she is commencing
operations and pay a single organizational fee.
The sole issue addressed in the Fair Labor Standards Act is child labor.
A general partner within a limited partnership may be a corporation.
The United States Supreme Court generally has held that an agreement creating the
power to monopolize interstate commerce should not automatically be condemned as an
unlawful restraint of interstate commerce.
If an offer does not state how long it shall remain open, it remains open for ten days.
A void contract is one that is otherwise valid but may be rejected or set aside by one of
the parties.
A principal may ratify an action taken by an agent that the principal would not have
been capable of authorizing at the time that the action was taken.
Bankruptcy of only one of the partners does not cause dissolution of the firm.
Substantive law creates rights and duties.
Reversible errors are commonly made by supreme courts.
The Semiconductor Chip Protection Act of 1984 created a new form of industrial
intellectual property by protecting mask works and the semiconductor chip products in
which they are embodied against chip piracy.
A tenancy in common is a form of ownership by two or more persons.
Future goods are involved when a store is temporarily out of an advertised item but tells
you that the item can be ordered from the factory.
Besides quid pro quo sexual harassment, the law also forbids hostile work environment
sexual harassment.
Unlike ordinary holders or assignees, holders in due course take free of contract
assignment defenses that are good against ordinary holders or assignees.