The “living” Constitution has which of the following characteristics?
a. strong federal government
b. strong president
c. various administrative agencies with significant power
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.
Which term is not required in a writing in order to satisfy the statute of frauds?
a. language indicating that a sale or contract to sell has been made
b. the price of the goods
c. the quantity of goods involved in the transaction
d. the signature of the defendant
Eligibility for membership on a board of directors is determined by all of the following
except:
a. statute.
b. certificates of filing.
c. articles of incorporation.
d. bylaws.
Substantial impairment:
a. only requires proof that goods do not conform to the contract.
b. requires that the goods are shown to be worthless.
c. requires proof that the use to the buyer is materially different than the contract
promised.
d. none of the above.
The commerce clause of the Constitution:
a. prohibits the U.S. government from engaging in interstate commerce.
b. prohibits the U.S. government from regulating interstate commerce.
c. has been expanded by Supreme Court interpretations to give the U.S. government the
power to regulate the general welfare of the nation.
d. was declared unconstitutional in 1937.
Law consists of:
a. principles that govern conduct.
b. mere guidelines.
c. arbitrary rules.
d. none of the above.
A person who would suffer a direct pecuniary loss if a particular piece of property were
destroyed has a(n):
a. contractual risk.
b. hazard.
c. underwriting.
d. insurable interest.
Proposed administrative regulations must be:
a. printed in the Federal Register.
b. published in the trade journals of those trades that will be affected by the proposed
rules.
c. both a. and b.
d. none of the above.
What damages are recoverable in a case of promissory estoppel?
a. profits that the promisor expected
b. profits that the promisee expected
c. an amount necessary to restore the promisee to the position he or she would have
been in had the promisee not relied on the promise
d. an amount necessary to restore the promisor to the position he or she would have
been in had the promisor not relied on the promise
In addition to the corporation itself, which of the following parties are ordinarily
responsible for corporate debts?
a. directors
b. officers
c. directors and officers
d. none of the above
What type of deed merely transfers whatever interest, if any, the grantor may have in
the property, without specifying that interest in any way?
a. common law
b. statutory
c. quitclaim
d. warranty
A copyright bestows upon the creator of an artistic or literary work a federal statutory
right to exclusively:
a. use the work.
b. reproduce the work.
c. display the work.
d. all of the above.
When it comes to administrative agencies, courts:
a. regard agencies as able to perform their duties effectively.
b. accept rules that have been established by agencies using a rational basis.
c. do not substitute their own judgment in agency decisions.
d. all of the above.
What is the primary function of the National Labor Relations Board?
a. to mediate labor-management disputes
b. to decide unfair labor practice cases brought before it by the general counsel
c. to promulgate binding regulations defining unfair labor practices
d. to uphold the right of employees to bargain collectively
Which of the following is an example of limited or special jurisdiction court?
a. Probate court
b. Juvenile court
c. Domestic Relations court
d. All of the above.
The __________ lending market makes loans to consumers who have bankruptcies, no
credit history, low-to-moderate incomes, or a poor credit history.
a. subprime
b. subterranean
c. suboptimal
d. optimus prime
The partners who manage the limited partnership and are personally liable for the firm
debts are __________ partners.
a. general
b. active
c. licensed
d. unreserved
If an offeree dies before the offer has been accepted, the offer:
a. may be rejected by the surviving spouse of the offeree.
b. may be accepted by the surviving spouse of the offeree.
c. is automatically revoked by the death of the offeree.
d. may be accepted by the guardian appointed for any minor children of the offeree.
The party making an assignment is called the:
a. assignee.
b. assignor.
c. obligor.
d. successor.
The failure to have a license will not render agreements void if the license:
a. is based on formal education
b. is required for engaging in a particular business or trade
c. is a regulatory license
d. is readily obtainable by anyone who offers payment of a required fee
Under the Clayton Act, a divestiture order is:
a. notification from the Department of Justice that a merger is about to occur.
b. notification from the Department of Justice that a merger did not occur.
c. a decision by a court requiring a defendant to sell an enterprise.
d. an order by a court requiring an enterprise to dispose of its inventory.
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.
If no time period for performance is specified in a contract:
a. the contract is unenforceable.
b. time shall be of the essence.
c. a reasonable time for performance will be implied.
d. the time for performance will be ignored by the courts.
Which of the following will not be considered value in connection with determining
holder in due course status?
a. performing the act for which the instrument was given
b. promising to perform an existing legal obligation
c. receiving the instrument as security for a loan
d. taking the instrument in payment of a debt
Laws that prohibit theft, operation of a factory in areas zoned residential, and copyright
infringement exist primarily:
a. for protection of the person.
b. for protection of public health, safety, and morals.
c. for protection of property.
d. for protection of the state.
The type of patent that may be granted to developers of new and non-obvious
ornamental features of manufactured articles is called a(n):
a. design patent.
b. functional or utility patent.
c. improvement patent.
d. plant patent.
Which party to an illegal agreement may get relief from the court?
a. Plaintiff
b. Defendant
c. the less-guilty party, when public interest is advanced by granting relief
d. a doctor who was unlicensed at the time of the making of an agreement for the
provision of medical services, but who later obtained a proper license
A taker of an instrument who is a holder in due course at the time of the transfer but
who thereafter learns of a defense:
a. becomes a holder through a holder in due course.
b. becomes an ordinary holder.
c. remains a holder in due course.
d. becomes an assignee.
Judicial Triage:
a. is a court management tool.
b. results in some cases being expedited.
c. results in some cases being postponed.
d. all of the above.
In mediation, the mediator acts as a:
a. judge.
b. attorney.
c. messenger.
d. expert witness.
Provisions of a contract will be considered separately and not as a whole.
A contract obtained by physical duress is void.
Sue Thompson received a home “cold-canvas” sales call from a representative of the
Enlightened Encyclopedia Company. The salesperson, after a rather aggressive
presentation, convinced Sue to order a $1,200 Deluxe Encyclopedia set for her two
children. Sue was impressed with the quality of the books, but shortly after signing the
contract, she realized that she could not really afford to make the required monthly
payments. What rights, if any, does Sue have in this situation?
Instruments are always negotiable.
Forgery includes signing another person’s name to a check with the intent to defraud.
A tort is a wrong arising from a violation of a public duty.
A deed, like a contract, must be supported by consideration to be effective.
A corporation is an artificial person that is created by governmental action.
A license is different from an easement in that it is a personal, revocable privilege to do
something on the land of another.
According to the EEOC, claims for retaliation may only be filed under Title VII.
Wilma was an employee of the Electric Storage Battery Company. She was fired. She
claimed that she was fired because she was a member of a labor union. The employer
asserted that she was fired because she was a poor worker. Wilma filed an unfair labor
practice complaint with the National Labor Relations Board. Its examiner held a
hearing at which evidence was presented showing that Wilma was a poor worker. Other
evidence presented showed that the employer was opposed to labor unions. The Board
decided to believe Wilma’s witnesses and concluded that she had been fired because she
belonged to the union. Can the employer appeal this decision?
An authorized agent signing an instrument will not be liable on the instrument if the
agent discloses on the paper either the identity of the principal or the fact that the agent
has signed in a representative capacity.
Business corporations exist to make a profit.
A condominium and a cooperative are essentially the same.
A limited liability company may hold property in its own name.