Stan doesn’t like having neighborhood teenagers walk across his yard at night. He rigs
an animal trap on the path the teenagers usually use to cross his land. One night, Tim
and his friends are walking across the yard when Tim gets caught in the trap. He is
taken to the hospital for his injuries. Stan:
a. has the right to strongly discourage anyone from trespassing, and Tim was a
trespasser.
b. has no duty toward Tim.
c. is not free to inflict intentional injury on a trespasser.
d. All of these.
All contractual promises are absolute promises to perform.
a. True
b. False
Under the federalist system, the states retain significant powers; however, the
Supremacy Clause of the Constitution provides that within the areas of regulation that
are federal in nature, federal law is supreme.
a. True
b. False
A proxy is effective until the shareholder revokes it.
a. True
b. False
Under the majority rule, the test under the one-year provision of the statute of frauds is
whether the parties believe that the contract cannot be performed within one year.
a. True
b. False
A proxy is revocable to the same extent as an agency.
a. True
b. False
Apparent authority can arise where there is an undisclosed principal as well as where
the principal is disclosed.
a. True
b. False
The U.S. Constitution provides that all valid treaties, which are agreements among
independent nations, have the force of federal statutes.
a. True
b. False
A professor photocopies fifty copies of a copyrighted chart to distribute to his students
in class. This is a clear violation of the Copyright Act.
a. True
b. False
Michael issues a check to Paula. She negotiates the check to Hal as payment for a used
television set. Hal has no notice of any claims or defenses and takes the check in good
faith. Hal indorses the check and gives it to his son as a birthday present. Is Hals son a
holder in due course? What rights does he have with respect to the check? If Michael
has a defense of fraud in the inducement against Paula, can he use that defense against
Hal or Hals son?
Mom and Carolyn own a farm as joint tenants. When Mom dies, her share will pass to:
a. Carolyn.
b. her heirs.
c. her beneficiaries.
d. Carolyn’s heirs.
A misrepresentation or material omission that is likely to mislead a consumer to the
consumer’s detriment is grounds for a claim of deception under FTC rules.
a. True
b. False
Everett bought a washer and dryer for $1,200 from Neely Appliances, which was to
deliver the set in two days, on its regular delivery date for Everetts area. However, on
the night of the sale, Neelys suffered an accidental fire and the washer and dryer were
destroyed. Who has the risk of loss? Who would have the risk of loss if Everett had
instead bought a used washer and dryer from his neighbor who was having a moving
sale, and the washer and dryer were destroyed after Everett had paid for them and after
the neighbor made them available to Everett but before he picked them up?
If incorrect, which of the following would probably be considered a misrepresentation
of a material fact?
a. “This is the one that I think is the best buy.”
b. “This is the best computer on the market.”
c. “This car has new brakes.”
d. “These tires will wear like iron.”
Some states still recognize common law crimes.
a. True
b. False
The ADA provides for remedies that are generally the same as those available under
Title VII.
a. True
b. False
A __________ is a partnership in which the liability of the general partners has been
limited to the same extent as in a limited liability partnership.
a. limited partnership
b. limited liability company
c. limited liability limited partnership
d. None of these are correct.
The “perfect tender rule” provides that only substantial deviations from the promised
performance in a sales contract under the Code constitute a material breach and
discharge the aggrieved party from the duty of performance.
a. True
b. False
Under the Revised Act, Brafford, a director who is a member of the board that declares
an illegal dividend, may be but is not under all circumstances personally liable to the
company for the amount that is illegal even if she personally voted for the distribution
contrary to the companys charter.
a. True
b. False
Cal sprayed pesticide on his crops in a very careful manner on a windless day.
Nevertheless, some of the pesticide spray fell on his neighbor’s side of the fence and
contaminated the cracked corn for the chickens. The chickens died and the neighbor
sues. What is the likely result?
a. Cal is not liable because he was not negligent in his spraying operation.
b. Cal is not liable because the neighbor assumed the risk of damage to the feed by
placing it so close to the fence.
c. Cal is liable because spraying pesticides is an abnormally dangerous activity.
d. Cal is not liable for the damage because of contributory negligence.
If, after making an environmental assessment, a federal agency decides no EIS is
required, it must make this decision available to the public.
a. True
b. False
The sole nursing home in the county offers a long-term care agreement. The contract is
prepared on a standard form and offers terms on a take-it-or-leave-it basis. Such a
contract is called:
a. exculpatory.
b. a usurious contract.
c. an illegal restraint of trade.
d. an adhesion contract.
Which of the following is NOT an advantage of a partnership?
a. Partners’ income taxes may be less than the income taxes would be on a corporation.
b. Each partner has limited liability.
c. It is possible to bring together more managerial skills than in a sole proprietorship.
d. It is possible to bring together more capital than in a sole proprietorship.
The basic principles of contract law apply to insurance policies.
a. True
b. False
Although mens rea is a required element for most crimes, many regulatory crimes
dispense with it.
a. True
b. False
Able and Baker are both residents of Iowa, but they have a dispute regarding some land
located in Kansas. Able gives Baker reasonable notice that she is filing a lawsuit in
Kansas regarding the land and Baker objects, claiming the Kansas courts have no
jurisdiction. In this case:
a. only the Iowa courts can hear the case.
b. the Iowa federal district court can hear the case based on diversity of citizenship.
c. the Kansas courts have in rem jurisdiction to adjudicate the claim regarding the
property.
d. the Kansas federal district court can hear the case based upon diversity of citizenship.
Vicarious liability is liability imposed upon one person for the acts of another.
a. True
b. False
The most important element in determining whether a sales contract has been made is
the:
a. language of the contract.
b. fact that the terms of the offer and acceptance are exactly alike.
c. number of open terms.
d. intent of the parties to make a contract.
The Foreign Sovereign Immunities Act specifically provides that a foreign state shall be
immune from neither federal nor state court jurisdiction if the suit is based on which of
the following?
a. A commercial activity conducted in the United States by the foreign state.
b. An act that the foreign state performed in the United States in connection with a
commercial activity it carried on elsewhere.
c. A commercial activity performed outside U.S. borders that directly affects the U.S.
d. All of these.
Congress has established thirteen judicial circuits (twelve numbered circuits plus the
District of Columbia circuit), each having a court known as the Court of Appeals.
a. True
b. False
In the People v. Farell case, the court looked first to the words of the statute itself to
determine legislative intent and determined that the theft statute applied to trade secrets
as well as money.
a. True
b. False
Judicial limitations on the employment-at-will doctrine have been based on:
a. contract law.
b. tort law.
c. public policy.
d. All of these.
To be negotiable, the instrument must satisfy all except which one of the following
requirements?
a. It must contain a promise or order to pay.
b. It must be for a certain amount.
c. It must be payable on demand.
d. It must be signed.