There is/are no _____ for violating the provisions of the Clayton Act.
A. injunctive relief
B. treble damages
C. cease-and-desist orders
D. criminal penalties
In a “mixed” contract for the sale of both goods and services, the court will apply the
contract rules of the UCC or of the common law, depending on whether:
A. the contract price of the goods portion of the contract is $500 or more.
B. the contract is in writing.
C. the predominant purpose of the contract is goods or services.
D. the parties are both merchants.
Teresa rented an apartment from Len for one year, beginning January 1st, 2008. When
Teresa tried to take possession of the rental unit, Paul, a prior renter, was still there.
Teresa asked Len to help her get Paul out. Len simply shrugged, telling Teresa that it
was now her problem.
A. Teresa must bring an eviction action against Paul.
B. Teresa must wait for Paul to vacate the premises at his convenience.
C. Len breached the implied warranty of possession.
D. Len and Teresa have created a periodic tenancy.
Normally, an illegal contract is:
A. a quasi-contract.
B. implied-in-fact.
C. unenforceable.
D. voidable.
In the case of _____, after the foreclosure, the proceeds of the sale are applied to the
payment of the mortgage debt, and any surplus is paid over to the mortgagor.
A. strict foreclosure
B. foreclosure by action and sale
C. accommodative foreclosure
D. foreclosure by redemption
The _____ requires a public company to disclose whether it has adopted a code of
ethics for senior financial officers, and to disclose any change in the code or waiver of
the code’s application.
A. Davis-Bacon Act
B. Goldwater-Nichols Act
C. Sarbanes-Oxley Act
D. Certiorari Act
The Commerce Clause has become a federal power with an extensive regulatory reach.
This is largely due to judicial decisions regulating:
A. the channels of interstate commerce.
B. and protecting the instrumentalities of interstate commerce.
C. persons or things in interstate commerce.
D. activities that substantially affect interstate commerce.
John promised the other co-owners of the ship Sea Fairy that he would insure the ship
for an upcoming voyage. However, John fails to insure the ship. The ship is
shipwrecked in a turbulent sea. The co-owners sue John for breach of contract. Will
they succeed?
A. Yes, because there was a valid and binding contract between the co-owners.
B. No, because it was a purely gratuitous promise.
C. No, because an intervening cause absolved John’s liability.
D. Yes, because of promissory estoppel.
Jim and Sarah establish a partnership business. Sarah ends up doing all the work related
to the business even though they had agreed to split the labor. Jim may be in breach of
his duty to what?
A. Duty to Serve
B. Duty to Have No Adverse Interest
C. Duty of Care
D. Duty to Make Profit
When the board of directors of a parent corporation approves its merger with its
subsidiary and sends a copy of the merger plan to the subsidiary’s shareholders, such a
merger is called a(n):
A. semi-merger.
B. half-merger.
C. incomplete merger.
D. short-form merger.
In general, liability for defamation requires:
A. widespread communication of the defamatory statement.
B. communication of the defamatory statement from the plaintiff herself.
C. publication of the defamatory statement.
D. the identification of the source of the defamatory statement.
Under Article 2 of the UCC, why does it matter whether a party to a contract is a
merchant?
A. It is the test for applying Article 2 of the UCC.
B. Merchants are treated differently than other parties.
C. All contracts in which one or both parties are merchants are handled under Article
2A of the UCC.
D. Article 2 does not concern itself with cases regarding the transactions of goods.
Why were equitable remedies developed?
A. Common law rules were too flexible to produce fair results.
B. The remedies available in common law courts were too few.
C. Equitable remedies were rigid rules of law and produced fair results.
D. Common law rules were less technical and rigid.
Why is past consideration not a consideration in a present promise?
A. It falls under exceptions to consideration.
B. It does not pertain to the present exchange.
C. It is not covered under the UCC codes for consideration.
D. It involves an issue of moral obligation.
Which of the following is true of an injurious falsehood case?
A. It is the same as a tort of defamation.
B. The degree of fault required for liability is unclear.
C. Damages for emotional distress are not recoverable.
D. There is liability for false statements made in good faith.
Paul sues Dan for “aesthetic pollution.” The basis for his suit is Dan’s habit of wearing
clothes Paul considers ugly. Paul’s complaint offers details of Dan’s “ugly” clothing in
many separate, numbered paragraphs. However, no law requires one to pay damages for
wearing clothes that another considers ugly and for causing aesthetic dissatisfaction to
some other party. Thus, Dan wants to defeat Paul’s claim as fast as possible. The best
procedural device for doing so is the:
A. motion to dismiss.
B. motion for summary judgment.
C. motion for judgment notwithstanding the verdict.
D. motion for a directed verdict.
Jargons Company is a well-known and seasoned public issuer of securities. It is going
to file a registration statement with the SEC on February 1, 2012 for a new security
offering. Rule 163 of the 1933 Act will allow it to use a _____ in January 2012.
A. final prospectus
B. Communications Not Deemed a Prospectus
C. free-writing prospectus
D. preliminary prospectus
What can the plaintiff usually elect to receive in lieu of the basic remedy in a case of
copyright infringement?
A. Punitive damages
B. Liquidated damages
C. Special damages
D. Statutory damages
Tying agreements may be challenged under both:
A. Section 1 of the Robinson-Patman Act and Section 3 of the Sherman Act.
B. Section 1 of the Sherman Act and Section 3 of the Clayton Act.
C. Section 1 of the Robinson-Patman Act and Section 3 of the Clayton Act.
D. Section 1 of the Clayton Act and Section 3 of the Sherman Act.
Ivor, Queen, and Lear own a building as joint tenants with the right of survivorship.
Ivor donated his interest in the building to Day Charity by executing and delivering a
deed to Day. Both Queen and Lear refused to consent to Ivor’s transfer to Day.
Subsequently, both Lear and Queen died. After their deaths, Day’s interest in the
building consisted of:
A. total ownership due to the deaths of Queen and Lear.
B. no interest because Queen and Lear refused to consent to the transfer.
C. a 1/3 interest as a joint tenant.
D. a 1/3 interest as a tenant in common.
A(n) _____ fraud applies when a professional misstates a material fact and recklessly or
grossly negligently fails to ascertain the truth of the statement.
A. constructive
B. scienter
C. Ultramares
D. fabrication
The “fraud-on-the-market-theory” used in some cases to establish liability under Rule
10b-5 of the Securities Act of 1934 is an indirect way of establishing which of the
following elements of proof?
A. The defendant acted with negligence.
B. The defendant acted with scienter.
C. The plaintiff’s reliance.
D. The plaintiff’s due diligence.
Daniel is a senior at State University. Brian, Daniel’s father, is concerned about Daniel’s
study habits, given that Daniel spends most of his evenings at the campus pub instead
of the library. Brian promises Daniel that he will send him on an expense-paid trip to
Europe after his graduation if Daniel spends at least five evenings a week studying in
the campus library for the remainder of his senior year. After returning home from his
graduation, Daniel asks Brian about the European trip. Brian replies, “Your education
was your reward. I don’t owe you a trip to Europe.” Brian is:
A. correct; Daniel has already gained the benefit of the bargain.
B. correct; Daniel did not give anything of legal value.
C. incorrect; Brian owes Daniel a trip to Europe because Daniel’s acts are consideration.
D. incorrect, but only if Daniel’s acts are adequate consideration for such an expensive
trip.
A reaffirmation promise has to be made prior to the date of the bankruptcy discharge
and gives the debtor the right to revoke his promise within 30 days after it becomes
enforceable. This is the requirement of:
A. charitable subscriptions.
B. promises to pay debts barred by statutes of limitations.
C. promises to pay debts barred by bankruptcy discharge.
D. promissory estoppels.
The Internal Revenue Service (IRS) has recently issued a subpoena duces tecum to
Values Corp. The IRS wants access to the last five year’s tax returns and related
documents of Values to ensure that Values has met all its tax liabilities. Values claims
that all its tax papers are in order and IRS’s motive is to harass political opponents of
the incumbent administration (Values was one of the top 100 donors during the last
election year). The strongest argument that Values may make concerning the subpoena
is that the subpoena:
A. is invalid because the IRS investigation is not being conducted for a legitimate
purpose.
B. need not be obeyed because it violates Values’ Fifth Amendment privilege against
compulsory testimonial self-incrimination.
C. need not be obeyed to its fullest extent because it is not sufficiently specific and is
unreasonably burdensome.
D. is invalid unless the IRS satisfies the “probable cause” standard required by the
Fourth Amendment for the issuance of a search warrant.
Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy’s booth
where she was selling paintings of vineyards. Reggie admired a painting of vineyards,
which did not appear to be for sale. Reggie said to Tracy, “I will give you $200 if you
give me that painting right now.” Tracy said nothing in response, but she gave Reggie
the painting, and Reggie gave her $200 in cash. This is an example of a contract that is
now:
A. bilateral and executed.
B. bilateral and executory.
C. unilateral and executed.
D. unilateral and executory.
Which of the following are exempted from antitrust violations under the Clayton Act?
A. Funeral homes and services
B. Roofers and shingle manufactures
C. Agricultural Cooperatives
D. Wireless phone services
What section of the UCC states that an order to a manufacturer requesting shipment of
goods may be accepted by a prompt shipment of the goods?
A. 2-206
B. 9-301
C. 1-105
D. 2-345
A _____ is a claim of the person obligated on the instrument against the original payee
of the instrument.
A. real defense
B. personal defense
C. claim in recoupment
D. claim to an instrument
A check drawn by a credit union on its account at a federally insured bank would be an
example of a:
A. cashier’s check.
B. teller’s check.
C. counter check.
D. traveler’s check.
Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to
take place in 10 days. The contract between Calvin and Sara is now:
A. unilateral, executory, and valid.
B. bilateral, executed, and voidable.
C. bilateral, executory, and express.
D. bilateral, executory, and implied.
Jim created a shoe-manufacturing corporation by contributing $1,000. He stayed as the
sole shareholder and director of the corporation. To inject further capital into the
corporation, he loaned the corporation $100,000 and secured the loan in exchange for
all the corporation’s assets. Five years into operations, the corporation has still failed to
make profits and consequently files for bankruptcy. Who has been defrauded?
A. Ordinary shareholders
B. Preferred shareholders
C. Nonshareholder-creditors
D. Board of directors