A gratuitous assignment is revocable even after the assignor has made an effective
delivery of the assignment to the assignee.
a. True
b. False
Congress appoints and removes the chief administrators of federal executive
administrative agencies.
a. True
b. False
The Contract Clause prevents a state from:
a. making contracts with private individuals.
b. affecting any agreements between two parties.
c. changing contracts after they have been made.
d. contracting with another state.
The Sherman Act:
a. applies to acts committed overseas by U.S. corporations.
b. would not apply to an act committed in the United States by a foreign corporation.
c. would not apply to an act overseas by a 100 percent-owned foreign subsidiary of a
U.S. corporation.
d. never applies to acts committed outside the U.S.
Which of the following is a common criticism of deontological ethical theories?
a. They are excessively pragmatic.
b. They are rigid and excessively formal.
c. They only consider actions by their motives.
d. They fail to consider universal principles.
For a memorandum to be incorporated into a will, which of the following conditions
must be met? The memorandum must be:
a. in writing.
b. in existence when the will is executed.
c. adequately described in the will.
d. All of these.
Members of member-managed LLCs and manager-managed LLCs are the same in
which of the following aspects?
a. Control.
b. Fiduciary duty.
c. Liability.
d. Whether the member is an agent of the LLC.
The basic purpose of __________ is to facilitate the flow of trade by establishing
agreements concerning potential trade barriers such as import quotas, customs, export
regulations, subsidies, and import fees.
a. WTO
b. Foreign Sovereign Immunities Act.
c. World Bank.
d. None of these is correct.
One important source of law in the United States is the Restatement of law.
a. True
b. False
A contract is invalid if all of the terms are not clearly stated.
a. True
b. False
Acceptance of goods, which disallows any later rejection of them, is accomplished only
through express words.
a. True
b. False
Ordinarily, members of manager-managed LLCs have duties to the LLC and its
members by reason of being members.
a. True
b. False
A living will is a document that:
a. is videotaped.
b. contains the maker’s wishes regarding extraordinary medical treatment.
c. is capable of being changed from time to time, unlike other wills.
d. cannot be revoked.
One method of appealing a case to the U.S. Supreme Court is by:
a. writ of execution.
b. offer of proof.
c. writ of certiorari.
d. request for admissions.
John, Samuel, and Jim are general partners in the development of an electric car. Jim
pours all his money into the project, but it never seems to work out. Eventually the
partnership and Jim cannot meet their daily obligations, and the partnership is
dissolved. Jim files for bankruptcy. If the partnership assets are insufficient to pay all
claims against the partnership:
a. the trustee in bankruptcy must seek recovery of the deficiency first from John and
Samuel.
b. Jim is released from liability because of the bankruptcy proceedings.
c. Jims personal assets are not available for the partnership debts because he has limited
liability.
d. the bankruptcy court must follow the doctrine of marshaling of assets.
a. When is specific performance available to enforce a contract?
b. Under what circumstances will a court grant specific performance to enforce a
contract involving personal services?
c. What remedy did the court award in the Madison Square Garden case? Explain why
the court chose this remedy.
Which of the following will destroy negotiability?
a. Making the instrument subject to the terms of another agreement.
b. Making the instrument payable in Japanese yen.
c. Signing a check in pencil.
d. Signing a check with an “X.”
The word “merchantability” must be mentioned in a disclaimer of an implied warranty
of merchantability.
a. True
b. False
In some instances, people may be held liable for injuries they have caused even though
they have not acted intentionally or negligently.
a. True
b. False
A private employer:
a. may terminate the employment of an individual solely because he has been a debtor
in bankruptcy.
b. may not discriminate with regard to employment solely because an individual was
insolvent before the commencement of a bankruptcy case.
c. has no restrictions regarding employment practices involving individuals who are or
have been debtors under the Bankruptcy Code.
d. may discriminate with respect to employment against an individual who has not paid
a debt that is dischargeable in a case under the Bankruptcy Code.
An express trust is a trust:
a. established by law through the courts when the parties’ conduct seems to warrant the
creation of a trust.
b. established by voluntary action.
c. created only by an oral statement.
d. All of these.
Courts of equity will grant specific performance of contracts for personal services.
a. True
b. False
All employees are agents, but not all agents are employees.
a. True
b. False
If shareholders agree in writing to vote in a specified manner for election or removal of
directors, this is known as:
a. a proxy.
b. cumulative voting.
c. a voting trust.
d. a shareholder voting agreement.
State X passes legislation that requires that unless a mother of children under the age of
7 is found to be unfit, custody in divorce proceedings should be awarded to the mother
and not the father. If this statute is challenged, the court will:
a. defer to the legislature and will not determine whether such a classification of
persons is constitutionally permissible.
b. determine that fundamental rights and suspect classification are involved in this
legislation.
c. only require that the legislation conceivably bears some rational relationship to a
legitimate governmental interest.
d. review the legislation to see if the preference to mothers bears a substantial
relationship to an important governmental objective.
An offer may be made to the general public.
a. True
b. False
Property insurance may be either a valued policy or an open policy.
a. True
b. False
Orwin, owner of a used furniture store, gives Maggie a signed offer to buy her living
room furniture for $800. This offer:
a. is revocable at any time because no consideration was given.
b. would have been irrevocable if Orwin were a merchant, but he would not be
considered a merchant under the UCC.
c. is irrevocable for a reasonable time, not to exceed three months, even if there was no
consideration.
d. is revocable without consideration because it is an offer to buy rather than to sell.
Tina forges Vivians indorsement on a promissory note and negotiates it to Ned. If
Vivian subsequently ratifies Tinas act, both Tina and Vivian are liable to Ned on the
note and Vivians ratification relieves Tina from civil liability to Vivian.
a. True
b. False
Once a trust is validly created, it is revocable.
a. True
b. False
An ethical decision-making approach that relies on a central authority or set of rules,
such as the Koran or the Bible, is:
a. ethical fundamentalism.
b. ethical relativism.
c. rule utilitarianism.
d. act utilitarianism.
In a unilateral contract, a promise is exchanged for an act or forbearance to act.
a. True
b. False
The courts in common law systems have developed a body of law that serves as
precedent for determination of later controversies. This is called:
a. judge-made law.
b. case law.
c. common law.
d. All of these.
For the general trial courts in the federal system, Congress has established nearly 100
judicial districts, each of which is located entirely in a particular state.
a. True
b. False