1) a drawer can claim alteration as a reason for not charging a particular check to his
account, even if the drawer has contributed to the alteration in some way.
2) unforeseeable acts are held to be an intervening cause.
3) a justice theorist would choose the alternative that allocates societys benefits and
burden most fairly.
4) as per common law, landlords make no implied warranties regarding the condition or
quality of leased properties.
5) while economic pressure may amount to undue influence, it cannot constitute duress.
6) generally, the ucc uses the test of impossibility to determine if a person can be
excused from performing his contractual obligations.
7) punitive damages are allowed when the insurers breach of contract consisted of a
good faith but erroneous denial of the insureds claim.
8) which of the following is true about dissociation?
a.it is a partners right to dissociate himself from the partnership.
b.a partner has the power to dissociate from the partnership at any time.
c.when a partners dissociation violates the partnership agreement, it is nonwrongful
dissociation.
d.consequences of wrongful and nonwrongful dissociations are always the same.
9) mendel had his car repaired by harrys garage (hg). he paid by check drawn on abz
bank when he collected his car. on the drive home, mendel realized that the repair had
not been made. he immediately called abz on his cell phone and told the bank to stop
payment on the check. three days later, hg negotiated the check to amy, a holder in due
course. when amy went to cash the check, abz bank refused to honor it. what is mendels
liability on this check?
a.mendel is not liable to anyone because he stopped the check in time.
b.mendel is liable to amy because the stop payment order was made through a phone
call.
c.mendel is not liable to amy because she took the check from hg.
d.mendel is liable to amy because he is the drawer of the check.
10) chin wants to buy a small parcel of land. the seller requires a certified check as
payment. chin has a checking account with abc bank; he prepares a check for the seller
and then has the bank certify it. he then presents the check to the seller. who may now
be liable for payment of the amount of the check?
a.chin only.
b.abc bank only.
c.both chin and abc bank.
d.neither chin nor the abc bank.
11) an agent who receives no compensation for his services is known as:
a.an independent contractor.
b.a special agent.
c.a gratuitous agent.
d.a servant.
12) lineal descendantsthe children and grandchildren of a personare known as:
a.devises.
b.issues.
c.residuary.
d.obligees.
13) sue delivers defective widgets to boz. the widgets were not as warranted. in seeking
to recover damages from sue, boz:
a.does not have to give sue notice of the defect.
b.must give up since he accepted the goods.
c.would never be entitled to consequential or incidental damages.
d.may recover the difference between the value of the goods received and the value of
the goods would have had if they had been as warranted.
14) what is the main argument for avoiding a statutes plain meaning or legislative
history, and instead following prior interpretation in a case?
a.plain meaning is subject to debate
b.promoting stability and certainty
c.legislative history can be contentious
d.saving the courts valuable time
15) which of the following can recover damages for proven actual injury, but not
presumed or punitive damages, by proving only fault?
a.a public official plaintiff involved in a subject of public concern
b.a public figure plaintiff involved in a subject of private concern
c.a private figure plaintiff involved in a subject of public concern
d.a private figure plaintiff involved in a subject of private concern
16) which of the following is an example of a transaction exemption from the
registration requirements of the 1933 act?
a.securities issued by municipal governments in the united states and offered solely to
banks.
b.securities issued by nonprofit charitable organizations and offered solely to
institutional investors.
c.securities issued by banks and offered solely to investors sophisticated in investment
matters.
d.securities issued by for-profit corporations and offered solely to intrastate investors.
17) the lexcon corporation takes over the zebra corporation. by applying which
principle will lexcon become the owner of all the shares of zebra corporation?
a.merger
b.acquisition
c.share trading
d.share exchange
18) lloyd is a partner in an ordinary partnership firm in the business of providing tax
services. while serving a client on behalf of the partnership, lloyds partner janet
intentionally understates the clients taxable income on a federal tax return. when the
true income is reported a few years later, the client is required to pay a penalty. the
client sues the partnership and its partners. which of the following is correct?
a.janet is not liable to the client because she was acting on behalf of the partnership.
b.lloyd is not liable to the client, unless he authorized janet to understate the clients
income.
c.the partnership is not liable to the client because the intentional tort is outside the
scope of business.
d.janet is not liable to the client because she was acting in the ordinary course of
business.
19) according to the mbca, who amongst the following is liable for a defective
corporations contracts and torts?
a.a shareholder manager who knows that the corporation does not exist.
b.a passive shareholder who knows that the corporation does not exist.
c.a nonshareholder manager who believes that the corporation exists.
d.a member of the board of directors who believes that the corporation exists.