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Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of
town on vacation for two weeks. Allison makes no promise but tells Sarah that she will
think about it. While Sarah is out of town, Allison paints the apartment. This is best
described as a(n):
a. unilateral contract.
b. quasi contract.
c. implied in fact contract.
d. bilateral contract.
Shares in a publicly held corporation typically are:
a. owned mostly by management of the corporation.
b. widely dispersed and about two-thirds are held by institutional investors.
c. owned by a few investors holding many shares each.
d. owned mostly by individual investors, and these investors usually exercise their right
to vote by attending shareholder meetings.
An estate from week to week or month to month is called a(n):
a. fee simple absolute.
b. estate for years.
c. periodic tenancy.
d. tenancy at sufferance.
A type of insurance in which the insured and the insurer share the risk of a loss due to
fire is:
a. coinsurance.
b. non-forfeiture insurance.
c. no-fault insurance.
d. reinsurance.
Match the following:
a. Motion that the complaint be dismissed for failure to state a claim upon which the
court may grant relief.
b. Jury's specific written findings on each factual issue.
c. A nonjudicial proceeding in which a neutral third party selected by the disputants
renders a binding decision.
d. The decision of an arbitrator.
e. The initial pleading in a case in which the plaintiff states her claim and supporting
facts and a demand for relief.
f. A nonbinding process in which a third party acts as an intermediary between the
disputing parties without proposing solutions.
g. Written questions used in preparation for a trial to obtain sworn answers from the
opposing party.
h. A judgment against a defendant who fails to respond to a complaint.
i. A final binding determination on the merits made by the judge after a trial has begun
but before the jury renders a verdict.
j. The pretrial exchange of information between the opposing parties in a lawsuit.
k. Pretrial sworn testimony of an opposing party or other witness, taken out of court.
l. Authority of a court over the parties to a lawsuit in contrast to authority over their
property.
m. Authority of a court to hear a case based on claims against property.
n. Examination of potential jurors by the parties' attorneys or the judge.
o. A nonbinding process in which a third party acts as an intermediary between the
disputing parties and proposes solutions for them to consider.
p. A series of formal, written, responsive statements by each side to a lawsuit, stating
claims and defenses.
q. To send back to a lower court for further proceeding.
r. Final, binding determination on the merits made by a judge before trial.
s. The particular geographical place where a court with jurisdiction may hear a case.
t. Petition for discretionary review by a higher court.
1) venue
2) demurrer
3) in personam jurisdiction
4) in rem jurisdiction
5) mediation
6) arbitration
7) award
8) complaint
9) conciliation
10) deposition
11) writ of certiorari
12) directed verdict
13) interrogatories
14) discovery
15) pleadings
16) summary judgment
17) remand
18) voir dire
20) default judgment
The requirement of legally sufficient consideration:
a. is that the parties have agreed to an exchange and it imposed a legal detriment upon
the promisee or conferred a legal benefit upon the promisor.
b. has nothing to do with the legal value of what is exchanged.
c. means the subject matter that the parties agree to exchange has to have the same
value.
d. is the same as the requirement of adequacy of consideration.
Rick's driveway has potholes. He has been thrown from his bike several times because
of them. If Rick invites his biking friends for a barbecue, what must he do to escape
liability for any harm to them?
a. Repair the potholes.
b. Post signs saying 'slow to 15 mph."
c. Telephone his friends to warn them about the potholes.
d. None of the above
A transfer of order paper:
a. gives the transferee the specifically enforceable right to have the unqualified
indorsement of the transferor, whether the transfer was for value or not.
b. to a bank, such as the deposit of a check, without an indorsement requires the bank to
provide the customer's indorsement.
c. not for value creates a presumption by the courts that the parties intended to negotiate
rather than assign the paper.
d. for value creates a presumption by the courts that a negotiation was intended by the
parties unless the parties have agreed that the transfer is to be an assignment, which
requires no indorsement.
The covenant of title made by a grantor in a deed is also known as the covenant of:
a. seisen.
b. quiet enjoyment.
c. no encumbrances.
d. undisturbed possession.
Sylvia draws a check on ABC Bank payable "to the order of Ann Smith." Ann indorses
it and deposits it in First Bank. First Bank is a:
a. drawee bank.
b. collecting bank.
c. payor bank.
d. None of the above.
The Uniform Probate Code has been adopted by:
a. fewer than half of the states.
b. all states without variation.
c. the great majority of states without variation.
d. the federal government.
For how long is an oral stop payment order valid?
a. 14 calendar days
b. 14 business days
c. One month
d. Six months
A transaction involving real estate whereby one party deposits a deed or money with a
third party who holds the deed or funds until the happening of an agreed-upon event is
called a(n):
a. adverse possession.
b. escrow.
c. foreclosure.
d. abstract of title.
Glenn decided to borrow from Jones Bank since it promised that his loan interest rate
would be systematically reduced every year when the board met. The loan rate was
never reduced, but actually increased monthly. Glenn refused to pay the interest
demanded and sued for rescission of the contract; thereupon, the bank attempted to
collect from Lewis, a surety under the loan. Does Lewis have to pay?
a. Yes, because fraud is no defense
b. No, because a fraud perpetrated upon Glenn will be a defense
c. Yes, since the surety obligation is separate from the underlying contract
d. No, because the surety stands in the shoes of the debtor for all purposes
Carl loans Dan $1,500 for Dan's honeymoon. Dan gives Carl his ruby ring as security
for the loan and after a year, tells Carl he may as well sell it to recoup the $1,500. When
Dan's wife hears of this, she persuades Dan to call Carl and get back the ring. Can Carl
sell it anyway?
a. No, because Carl's agency has been revoked
b. No, because an unreasonable amount of time has elapsed
c. Yes, because Carl has apparent authority
d. Yes, because Dan cannot terminate this agency
A person who intentionally and knowingly uses a counterfeit mark may receive:
a. a judgment for three times the defendant's profits or three times the plaintiff's
damages, whichever is greater.
b. a fine of up to $200,000 on the first offense and $750,000 on a repeat offense.
c. a fine of up to $1,000.
d. imprisonment of up to ten years for the first offense and for up to 20 years for a
repeat offense.
e. Both (a) and (d) above.
The Code defines ____ as "honesty in fact in the conduct or transaction concerned."
a. good faith
b. unconscionability
c. merchantability
d. entrusting
There is a(n) ____ privilege to comment regarding public officials or public figures so
long as it is done without malice.
a. Fourth Amendment
b. First Amendment
c. conditional
d. absolute
A contract agreeing to indemnify the insured against certain specified defects in title to
real property is called:
a. title insurance.
b. a warranty deed.
c. guarantee insurance.
d. a real estate guarantee.
A bond which guarantees the performance of the terms of a contract is a(n) ____ bond.
a. judicial
b. official
c. performance
d. fidelity
Which of the following would not be a remedy available to the seller on account of
buyer's breach?
a. Stop delivery of the goods by the carrier
b. Require the financially sound buyer to return the goods
c. Recover the price
d. Cancel the contract
If a seller of a product conditions its sale upon the buyer's purchasing a second product
from the seller, this is known as a:
a. tying arrangement.
b. vertical boycott.
c. horizontal restraint.
d. disparagement.
Where there is no course of performance, usage of trade, or course of dealing, and
where a contract is silent as to the place of delivery, the place for delivery is:
a. the seller's place of business.
b. wherever the goods were manufactured.
c. wherever the goods are located.
d. the buyer's place of business.
Market share greater than what percentage generally indicates monopoly power?
a. 25%.
b. 30%.
c. 50%.
d. 75%.
A foreign limited liability company:
a. is governed by the laws of the state in which it is organized.
b. is considered "foreign" in any state other than the one in which it was formed.
c. must register with the Secretary of State before transacting business in that state.
d. All of the above are correct.
What are the remedies available for the Federal Trade Commission?
a. Affirmative exemption
b. Corrective advertising and multiple product orders
c. Impounding inventory
d. Fines and monetary penalties
Which of the following represents joint property ownership?
a. A cooperative
b. A life estate
c. A lease
d. A fee simple absolute
Which of the following expresses the right one has to choose her partners?
a. Partnership by estoppel
b. Delectus personae
c. Entity theory
d. Fiduciary relationship
The Civil Rights Act of 1964 would scrutinize which of the following situations?
a. A woman engineer was denied a job for which she was qualified.
b. A short man was denied employment as a busboy.
c. A two-man partnership with two employees refused to hire a qualified black attorney.
d. Both (a) and (c) above are correct.
Steve issues a negotiable promissory note to Bob in exchange for Bob's promise to
build an addition to Steve's home. The promissory note indicates this reason when Bob
negotiates it to Willard for value. Can Willard be a holder in due course?
a. Yes, unless he knows that Bob has not built the addition
b. Yes, unless he did not give adequate value
c. No, since he has taken the instrument with notice of a defense
d. No, since he has violated the "good faith" requirement
D owes C a past-due undisputed debt of $500. D sees C in a bar and pays him $400. C
then says to D, "Forget about the other $100 you owe me. I'm glad to get the $400." C's
promise to discharge the remainder of the debt is binding.
If a manufacturer of a consumer product tells a buyer that he is selling it with no
warranties, there is a violation of the Magnuson-Moss Warranty Act.
Directors ordinarily serve until someone who wants the position calls for an election.
Under most circumstances, a creditor who files a completed financing statement can be
assured that the security interest is perfected.
One of the principal objectives of tort law is to prevent future harms and losses.
A special warranty deed will give the buyer better rights against the grantor (seller) than
a general warranty deed.
Ace Corporation requires a quorum of five directors. Under the RMBCA if Pam, a
director, shows up at the meeting for a vote on her favorite topic, dividends, and
withdraws thereafter leaving only four directors, they may not act on any further
business.
If Bob's mortgage debt is greater than the amount for which his farm is sold in a
foreclosure action, he is excused from payment of the remainder.
A basic tenet of the law, as codified in the UCC, is that a purchaser of goods obtains
such title as his transferor had or had the power to transfer.
The Revised Act provides that only one person need act as the incorporator, though
more may do so.
If the offer specifies it MUST be accepted by telegram, a letter will not be a valid
means of acceptance.
Every indorsement is either blank or special.
The CERCLA or Superfund was enacted to provide authority for cleanup of abandoned
or inactive hazardous waste sites.
"Doing business" within a particular state will subject a foreign corporation to the
litigation, regulation, and taxation of that state.
In all substituted contracts there must be an agreement among three parties where a new
promise is substituted for an existing promise or a new promisor is substituted for an
existing promisor.
On March 20, Gordon orally agrees to work for Carrham, Inc. for a period of one year
commencing on June 1. No writing is necessary here, because the contract can be
performed within one year.
