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1) pratt, owner of an appliance store, has a garage sale at his home where he sells old
furniture and books. he sells a set of books to his neighbor, stacey. pratt is considered a
merchant under article 2 of the ucc in selling the books to stacey.
2) the doctrine of certiorari jurisdiction makes it mandatory for the u.s. supreme court to
hear appeals from federal and state courts.
3) the amount recoverable by an injured employee under each category of damages
from a workers compensation system is frequently more than or at least equivalent to
what would be obtained in a successful negligence suit.
4) bob has not paid his ex-wife alimony as required under court order. his ex-wife is
trying to collect the alimony bob owes her. bob files a bankruptcy petition. this
automatically stays his ex-wifes collection efforts.
5) ann and susan want to enter into a partnership business, having a term of five years,
of selling used cars. they have to prepare a partnership agreement in writing to be
enforceable under the statute of frauds.
6) respondeat superior makes a principal liable for an employees negligence but not for
her intentional torts.
7) after all the llc assets have been sold, the proceeds will be distributed first to the
partners.
8) an instrument can be made payable to two or more payees.
9) begging the question is also known as the slippery slope fallacy.
10) all terms of contracts, even fine-print terms of standard form contracts, are always
part of the parties deal and binding on them, because parties have an obligation to read
their contracts and are assumed to have done so.
11) statutes that require proof of character and skill and impose penalties for violation
are considered to be revenue raising in nature.
12) a court will enforce a noncompetition clause even if its restraints are unduly
burdensome either on the public or on the party whose ability to compete would be
restrained.
13) ordinarily, contracts entered into by mentally impaired people are void, while
contracts entered into by intoxicated people are voidable.
14) federal restrictions that forbid beer producers from listing the alcohol content of
their beer on product labels are unconstitutional.
15) courts generally will not grant reformation of a written insurance policy in order to
make it conform to the coverage assumptions of a unilaterally mistaken insured.
16) a(n) _____ is a limited partnership whose partners have elected limited liability
status for all the partners.
a.corporation
b.lllp
c.s corporation
d.llp
17) 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 subsidiarys shareholders, such a
merger is called a(n):
a.semi-merger.
b.half-merger.
c.incomplete merger.
d.short-form merger.
18) if a buyer has a basis for rejecting a delivery of goods, the buyer:
a.should not ask the seller to reship conforming goods.
b.will still be liable to the seller for breach of the sales contract.
c.need not give the seller notice of the rejection.
d.must act within a reasonable time after delivery.
19) linda wanted to replace the old carpet in her home. she entered into a contract with
carpet co., for the purchase and installation of a new carpet. the price of the carpet was
$3,000 and the cost of the labor to install the carpet was $150. later, linda became
dissatisfied with this transaction and now wants to sue carpet co. linda wants to apply
the contract rules of the ucc, but carpet co., wants to apply the contract rules of the
common law. which source of law should govern this case?
a.the contract rules of the ucc apply, because the contract included the sale of goods.
b.the contract rules of the ucc apply, because the predominant purpose of the contract
was sale of goods.
c.the contract rules of the common law apply, because the contract included services,
which are governed by the common law.
d.the contract rules of the common law apply, because all contracts are governed by the
common law.
20) which of the following is a criticism of the traditional rule of restitution in the case
of minors?
a.it allows adults to ratify a contract with a minor.
b.it allows a minor to be exploited in a contract.
c.it does not allow a minor to disaffirm a bargain.
d.it is harsh on innocent adults dealing with minors.
21) insolvency occurs when a debtor:
a.is unable to pay his/her debts as they become due.
b.has a larger number of unsecured creditors than secured creditors.
c.is unemployed for two consecutive years.
d.is declared bankrupt by a certified accountant.
22) which of the following is a consequence of wrongful dissociation?
a.the dissociated partner may demand dissolution of the partnership.
b.the partnership must terminate on grounds of wrongful dissociation.
c.the dissociated partner should contribute to performing the winding up.
d.the dissociated partner is not entitled to receive the buyout price until the term of the
partnership has expired.
23) which of the following is a way of perfecting a security interest?
a.mere attachment of security interest
b.filing a private notice
c.creditor making a private sale of the collateral
d.debtor retaining the possession of the collateral
24) humorous or satirical accounts ordinarily are not considered to be defamation
unless:
a.a reasonable reader believes them to be real events.
b.they are political in nature.
c.the plaintiff can prove that they are about him/her.
d.they expressly state so.
25) in a chapter 7 liquidation proceeding, the claims of creditors are paid in which of
the following order?
a.priority claims take precedence over claims made by secured and unsecured creditors.
b.the claims of secured creditors are satisfied first, followed by priority claims, and
lastly claims made by unsecured creditors.
c.older claims are given priority over more recent claims.
d.the claims of secured creditors are satisfied first, followed by unsecured creditors, and
lastly priority claims.
26) abe took his bicycle to a bicycle shop for repair. by mistake, a sales clerk sold abe's
bike to leon. this was a sale in the ordinary course of business; neither the clerk nor leon
was aware that the bike belonged to abe. can abe recover his bike from leon?
a.yes, because title was never transferred to the bike shop.
b.yes, because abe never agreed to sell his bike.
c.no, because abe entrusted his bike to the bike shop.
d.no, because all sales by a merchant transfer clear title to a good-faith buyer
27) most states statutes of frauds do not require land leases to be in writing unless they:
a.involve more than two parties.
b.are ancestral property.
c.are going to be sold permanently.
d.are for a year or more.
28) lisa lives next to a vacant plot that belongs to carol. carol has never visited the plot
in the last 20 years during which period, lisa has taken care of it by fencing the plot and
mowing the grass. if this continues, lisa will be able to claim ownership of land based
on:
a.easement.
b.a quitclaim deed.
c.adverse possession.
d.fee simple absolute.
29) a loan made by a partner to partnership business is:
a.a part of partnership capital.
b.a part of the partnerships assets.
c.a liability of the partnership business.
d.a partners contribution to the partnership business.
30) which of the following relieves an employee of the hassle of separately filing
charges under title vii with the eeoc and with the state agency?
a.featherbedding by the eeoc
b.worksharing agreements of the eeoc
c.a right-to-sue letter by the eeoc
d.yellow-dog contracts of the eeoc
