Since the Clayton Act deals with probable harms to competition, there is criminal
liability for Clayton Act violations.
Answer:
If either party entering a contract lacks the capacity to contract, the contract is void or
voidable.
Answer:
Horizontal (among competitors) price fixing is always per se illegal.
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Undue influence renders a contract voidable and is a ground for rescission.
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The Check Clearing for the 21st Century Act is commonly known as Check 21,and is a
federal law that is designed to enable banks to handle more checks manually.
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Anticipatory repudiation may never be implied.
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A buyer can accept only part of a commercial unit, without accepting the whole unit.
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Under the doctrine of double jeopardy, acquitted defendants can be tried twice for the
same crime.
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Normally, both parties to a contract are discharged when they have completely
performed their contractual duties.
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Strict foreclosure is normally limited to situations where the amount of the debt
exceeds the value of the property.
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If one of the parties drafted the contract, ambiguities are resolved against that party in
interpreting it.
Answer:
Transfer of rights is referred to as a(n):
A. assignment.
B. novation.
C. delegation.
D. third-party contract.
Answer:
The term delegation refers to the transfer of:
A. rights.
B. duties.
C. duties that a promisor did not want to perform.
D. duties involving the promisor’s personal skills.
Answer:
A guarantor is a person who:
A. joins with the person who is primarily liable in promising to make the payment or to
perform the duty.
B. does not join in making a promise, but makes a separate promise and agrees to be
liable on the happening of a certain event.
C. is held for higher liability than a surety.
D. has personal defenses if the principal refuses to pay.
Answer:
The Federal Trade Commission (FTC) regulation:
A. cannot fine a seller who fails to include the FTC notice in the note or contract.
B. doesn’t apply to persons who sell to consumers on credit.
C. is designed to protect consumers against operation of the holder in due course rule.
D. is designed to make the consumer subject to all claims and defenses of a potential
holder.
Answer:
Jurisdiction is defined as:
A. the authority of a court to hear a case and render a binding decision on it.
B. the unlimited authority of the court.
C. the process by which cases are decided.
D. the power an individual appointed within an organization possesses to settle
disputes.
Answer:
Many of the administrative agencies have the power to:
A. make laws.
B. issue regulations that have the force of law.
C. conduct trials involving juries.
D. adjudicate disputes involving alleged violations of the Commerce Clause.
Answer:
Under the Model Business Corporation Act, a shareholder may ask a court to dissolve a
corporation when:
A. a corporation uses assets for public welfare.
B. directors are in conflict, their deadlock cannot be broken by shareholders, and the
corporation faces ruin.
C. directors are maintaining registered agents without the approval of the shareholders.
D. creditors are acting unfairly or illegally.
Answer:
Which of the following statements is TRUE about unliquidated debts?
A. The amount being due and certain, a promise to pay less lacks consideration.
B. Some courts allow collection of the remainder if checks marked “payment in full”
are cashed without reservation.
C. Since the amount is genuinely in dispute, an agreement resulting in accord and
satisfaction is enforceable.
D. Composition agreements are an exception to unliquidated debts and can be enforced
without additional consideration.
Answer:
A gratuitous agent is one who:
A. freely substitutes his/her judgment for that of the principal.
B. acts without pay.
C. requires a generous tip.
D. is employed to find a buyer for one party and a seller for another.
Answer:
According to the SEC, per se fraudulent statements include:
A. those that tout securities and make unreasonable forecasts.
B. those that specify the use of the proceeds of the issuance.
C. those that outline the annual return on an investment from the last ten years.
D. those that give full details about the securities to be offered.
Answer:
To act contrary to a partnership agreement:
A. vote of the majority prevails.
B. unanimous agreement is required.
C. implied authority by RUPA is provided.
D. approval of senior partners is required.
Answer:
Which of the following is TRUE of the Check 21 Act?
A. It is a time-consuming and costly process.
B. It is designed to enable banks to handle more checks electronically.
C. It completely discourages check truncation.
D. It requires banks to retain a legible copy of checks for fifteen years.
Answer:
The 1990 amendments to the Clean Air Act:
A. brought in civil penalties for violating the law’”a minimum of $2,500 for a first
offense up to $50,000 per day and two years in prison for subsequent violations.
B. state that any dredging or filling activity in a wetland that is part of the navigable
waters of the United States requires a permit before the activity can be commenced.
C. require the availability of oxygenated fuels in specified areas of the country that are
having difficulty meeting the air quality limits at least part of the year.
D. require electricity-generating facilities to build tall smokestacks so that emissions
were dispersed over a broader area.
Answer:
An American university professor derives a new formula which explains a fundamental
principle of nature. In the United States, this formula:
A. can be patented.
B. cannot be patented.
C. can be patented if it is novel.
D. cannot be patented because it is not useful.
Excluded from patent protection are laws of nature, physical phenomena, and abstract
ideas. Thus, a new mineral discovered in the earth, a plant found in the wild, or a
mathematical formula is not patentable. Such discoveries are manifestations of nature,
free to all people and reserved exclusively to none.
Answer:
A municipal corporation:
A. is formed and operated by private persons.
B. does not seek to make a profit.
C. does not have the power to tax.
D. is incorporated under special statute.
Answer:
If a distributor persuades a manufacturer to refuse to deal with a rival distributor, the
two parties:
A. have committed a per se violation of Section 1 of the Sherman Act.
B. do not violate Section 1 of the Sherman Act since this is a unilateral action.
C. are conspiring to form a monopoly thus directly violating Section 2 of the Sherman
Act.
D. are attempting vertical price-fixing.
Answer:
After an audit, an accountant certifies the financial statement by issuing a(n):
A. certificate of audit.
B. opinion letter.
C. memorandum.
D. amicus brief.
Answer:
What is generally required for any fundamental changes in the corporation?
A. Novation
B. Referendum
C. Board initiative
D. Prudent person standard
Answer:
In a browse-wrap contract:
A. the user assents to contractual terms by clicking on a button that reads “yes” or “I
agree.”
B. a written draft of the agreement is prepared and the user accepts the terms by signing
on it.
C. time, place, or method of communication is spelled out in the contract.
D. the agreements claim that a user assents to the terms by taking a specified action.
Answer:
Notice to the promisor is important to address the issues of:
A. liability of the assignee.
B. priority only.
C. liability and priority.
D. validity of the assignment.
Answer: