Which of the following is true of the Law and Economics School of jurisprudence?
A) It believes that law is based on morality and ethics.
B) It proposes that legal disputes should be solved by arbitrary rules that are based on
broad notions of what is fair.
C) It believes that promoting market efficiency should be the central goal of legal
decision making.
D) It maintains that the law changes when the ruling class changes.
The person who makes a will is called a ________.
A) settlor
B) beneficiary
C) testatrix
D) trustee
________ is a doctrine that says a person is liable for harm that is the foreseeable
consequence of his or her actions.
A) Tort of outrage
B) Transferred intent doctrine
C) Disparagement
D) Unintentional tort
________ involves payment for items purchased from the franchisor.
A) Leasing
B) Cost of supplies
C) Royalty fees
D) Initial license fee
Under the UCC’s ________ requirement, a person cannot qualify as an HDC if he or
she has taken an instrument after detecting that it has been dishonored.
A) no evidence of forgery, alteration, or irregularity
B) taking in good faith
C) taking without notice of defect
D) taking for value
A custody arrangement whereby the child of divorcing parents spends a certain amount
of time being raised by each parent is known as ________.
A) visitation rights custody
B) joint physical custody
C) arraignment
D) accommodation
Mark acquires an instrument from a stranger under suspicious circumstances and at a
high discount. This disqualifies him from acquiring HDC status because he did not
________.
A) give value for the instrument
B) check if the instrument was defective
C) take the instrument in good faith
D) check the authenticity of the instrument
Under the UCC’s ________ requirement, a person cannot qualify as an HDC if he or
she has noticed that the instrument is overdue.
A) no evidence of forgery, alteration, or irregularity
B) taking in good faith
C) taking without notice of defect
D) taking for value
A transaction in which an owner transfers his or her personal property to another to be
held, stored, or delivered, or for some other purpose is known as a(n) ________.
A) arraignment
B) easement
C) bailment
D) accession
The ________ period begins to run when the registration statement is filed with the
SEC and continues until the registration statement is declared effective by the SEC.
A) prefiling
B) fixing
C) waiting
D) posteffective
Which of the following is true of a special indorsement?
A) It is only considered valid if it includes words of negotiation.
B) It requires the signature of an indorser to be valid.
C) It can be negotiated by delivery.
D) It is considered a bearer instrument.
A(n) ________ is an exemption from registration which states that securities
transactions not made by an issuer, an underwriter, or a dealer do not have to be
registered with the SEC.
A) intrastate offering exemption
B) private placement exemption
C) Regulation A offering
D) nonissuer exemption
If the EEOC chooses not to bring suit, it issues a(n) ________ to the complainant.
A) affirmative defense
B) right to sue letter
C) filing date
D) document of claim
Which of the following statements is true of a court trial?
A) All civil cases are tried with a jury.
B) The judge is the trier of fact in a jury trial.
C) A jury is not required in a trial unless both parties request one.
D) Prospective jurors are questioned by lawyers of each party.
________ is a preferred stockholder right to be paid a stated dollar amount if a
corporation is dissolved and its assets redistributed.
A) Noncumulative preference
B) Cumulative dividend preference
C) Dividend preference
D) Liquidation preference
Under the UCC, if an offer is received by mail, the acceptance ________.
A) will be made in a manner that the acceptance becomes a counteroffer
B) of the offer must be made by any other medium other than mail
C) should be made by mail unless specified otherwise
D) can be made in any manner by any reasonable medium of acceptance
________ is a tort doctrine that makes manufacturers, distributors, wholesalers,
retailers, and others in the chain of distribution of a defective product liable for the
damages caused by the defect, irrespective of fault.
A) Absolute liability
B) Contingent liability
C) Legal liability
D) Strict liability
If the delegation is a declaration of duties, the delegatee ________.
A) cannot perform the duties of a delegator
B) is legally responsible for the satisfaction of the contract
C) is not liable to the obligee for nonperformance
D) can be sued for negligent performance
Which of the following statements is true of signature on a written contract?
A) The contract should be signed by the party who seeks enforcement.
B) The signature of the person against whom enforcement is sought is necessary.
C) The signature must appear at the end of the writing.
D) A stamp, an engraving, or other symbol is not considered to be a signature.
According to the Anticybersquatting Consumer Protection Act, in order to issue a
cease-and-desist order against a cybersquatter ________.
A) the registered domain name must be famous
B) the domain name must have been registered in good faith
C) the registered domain name must be a generic word
D) the domain name must be used to distribute goods or services
James Rodriguez, a composer, allows the makers of a popular television show titled
“Back in the Day” to use multiple songs from his album on the television show for a
price. In this instance, James Rodriguez is the ________.
A) grantee
B) grantor
C) licensee
D) licensor
Which of the following is a necessity to bring a private civil action against a violator of
the Racketeer Influenced and Corrupt Organizations Act (RICO) based on securities
fraud?
A) The accountant must not be a third-party independent contractor.
B) The defendant must have been criminally convicted in connection with the securities
fraud.
C) The plaintiff should file the case before the government brings a lawsuit.
D) The lawsuit must be based on the Tax Reform Act.
Which of the following is a similarity between full warranty and limited warranty?
A) Both fall under the category of express warranties made by warrantors.
B) Both require the warrantor to indicate whether there is a time limit on the full
warranty.
C) Both limit the scope of the warranty involved in some way.
D) Both relate to the industrial transactions covered by the Magnuson-Moss Warranty
Act.
Which of the following is an example of a contract contrary to statutes by its very
existence?
A) a usurious loan contract
B) a contract between two minors
C) a contract where one party is insane but not adjudged insane
D) a contract of adhesion
Peter has two houses that he plans to sell, numbered Lot 1 and Lot 2, each priced at
$800,000. David has shown interest in buying Lot 2 but is not able to make up his mind
on the final offer, so he asks Peter to give him a week to decide and Peter accepts. But
David takes two weeks to get back to Peter with a counteroffer. Before he could give
David a reply to his counteroffer, Peter is killed in a fire that burned down Lot 1. Which
of the following would be true of this case?
A) The offer is terminated due to lapse of time.
B) The offer is terminated due to destruction of the subject matter.
C) The offer is terminated due to death of the offeror.
D) David can still buy the house for Peter’s original offer.
Which of the following torts arises when a third party induces a contracting party to
breach the contract with another party?
A) intentional interference with contractual relations
B) breach of the covenant of good faith and fair dealing
C) tort of bad faith
D) malicious breach of contractual relations
________ is a title to real property that is free from any encumbrances or other defects
that are not disclosed but would affect the value of the property.
A) Remainder title
B) Marketable title
C) Reversion title
D) Nonconforming title
As applied to a contract, the terms “bilateral” and “unilateral” are based on ________.
A) the goods or services involved in the contract
B) the number of attempts made to form a contract
C) the number of parties who make a promise in the formation of a contract
D) the number of attempts it took for a contract to be successfully performed
A ________ refers to a party who is granted limited rights in or access to intellectual
property or informational rights owned by another party.
A) lessor
B) lessee
C) licensee
D) licensor
Which of the following describes ‘scienter”?
A) knowledge that a representation is false
B) undue influence used on a party to enter into a contract
C) another term for duress
D) damages given to a victim of fraud
________ place the nonbreaching party in the same position as if the contract had been
fully performed.
A) Tort damages
B) Compensatory damages
C) Nominal damages
D) Consequential damages
The appellant is often required to post a ________ on appeal.
A) executory decree
B) bond
C) certification letter
D) party-in-interest decree
Sengreen Inc. is a shipbuilding company that supplies ships and boats for the U.S.
Navy. One of its shipments included a defective boat, which collapsed in the middle of
a U.S. Navy drill due to its weak sail. Which of the following frees Sengreen from any
product liability in this case?
A) generally known dangers
B) government contract defense
C) abnormal misuse
D) supervening event
The ________ requires a mortgage or deed of trust to be documented in the county
recorder’s office of the county in which the real property is located.
A) recording statute
B) real property statute
C) mortgage statute
D) compilation statute
Conscious parallelism is seen when ________.
A) parties at different levels enter into an agreement to adhere to a price schedule that
stabilizes prices
B) one party makes an independent choice not to deal with another
C) two or more firms act the same but no concerted action is shown
D) a party’s anticompetitive effects outweigh their procompetitive effects