If the seller refuses to deliver the goods called for by the contract, the buyer can
recover as damages from the seller the difference between the contract price of the
goods and the cost of the substitute goods.
Answer:
The “dormant” Commerce Clause requires that any state law regulating interstate
commerce must further a legitimate state interest.
Answer:
Periodic tenancies are leaseholds.
Answer:
A joint will can never be revoked.
Answer:
An offer that says “If you do not object within 10 days, we have a contract” imposes a
legal duty on the offeree to respond.
Answer:
The 10-K annual report is intended to update the information required in the 1934 Act
registration statement.
Answer:
A perfected security interest in fixtures has priority over the conflicting interest of an
owner of the real property if the security interest is a purchase money security interest.
Answer:
A person may amend her valid will by merely striking out objectionable provisions and
inserting new provisions.
Answer:
Where there is a conflict between state laws and federal laws, state laws will prevail
since they better understand the immediate needs of their citizens.
Answer:
A contract that is impliedly accepted by doing something that objectively indicates
agreement can be considered as a bilateral contract.
Answer:
In recent years, the government has looked to supplement or partially replace the
command and control system for environmental problems with the use of economic
incentives and voluntary approaches to try to bring about the desired results.
Answer:
The Organization for Economic Cooperation and Development is an international
institution created for the purpose of promoting harmonized rules where multilateral
cooperation is necessary.
Answer:
The FTC rules prohibit a telemarketer or seller from initiating an outbound call to a
person whose telephone number is listed on a national “do not call” registry.
Answer:
Usually one cannot serve as the principal for both parties to a transaction; however,
agents may consent to such a dual role if the parties are both fully informed.
Answer:
Rogers owned property which he discovered was contaminated with hazardous waste.
He learned that twenty years earlier, Smith’s Manufacturing had owned the property and
used it as a disposal site for manufacturing chemicals. Rogers also learned that Jones’
Trucking had hauled the chemicals to the site under contract with Smith. Under these
circumstances, which, if any, of the parties can be liable for the costs of cleaning up the
site under CERCLA?
A. Smith is potentially liable under CERCLA.
B. Rogers is potentially liable under CERCLA.
C. Smith and Jones are potentially liable under CERCLA.
D. Rogers, Smith, and Jones are all potentially liable under CERCLA.
Answer:
Under the ADEA and its amendments:
A. employers of 10 or more people are prohibited from discriminating against their
employees on the basis of age.
B. it is permissible for employees to take early retirement on the grounds of inability to
do work.
C. it is legal for employees less than 70 years of age to retire under a mandatory
pension plan.
D. a BFOQ exemption is not provided.
Answer:
Under the tort of invasion of privacy:
A. some widespread dissemination of information is necessary for liability.
B. TRUE, but public facts about a person can be an invasion of privacy.
C. truth is a defense to “publication of private facts.”
D. newsworthy items can be the basis of a successful suit.
Answer:
Under the revised MBCA’s liability rules for defective incorporation:
A. the filing of the articles of incorporation, evidenced by a return of the copy stamped
by secretary of state, is conclusive proof of incorporation.
B. liability will never be imposed on promoters who participated in management and
policy decisions.
C. the issuance of the certificate of incorporation is conclusive proof of incorporation to
the corporate status, except a quo warranto action brought by the secretary of state.
D. managers will be released from any liability in excess of their initial investment.
Answer:
Which of the following is an example of interference with economic relations?
A. Trespass
B. False imprisonment
C. Disparagement
D. Defamation
Answer:
Under the MBCA, a director:
A. will not have dissented if he refuses to vote for the proposed course of action.
B. will not have dissented even if he makes his dissent clear to the other board members
by having it appear in the minutes.
C. will have dissented if he gives a written notice of dissent immediately following the
meeting.
D. will have dissented if he walks out on the board meeting.
Answer:
An environmental impact statement:
A. is a statement by a manufacturer of hazardous materials listing the toxicity level of
those materials.
B. is a statement by state or local governments which notifies the EPA of local
environmental concerns.
C. is a statement required by federal law for every major federal action which
significantly affects the quality of the environment.
D. is an action statement providing policies and regulations to manage human activities
with a view to prevent and reduce hazardous effects on the environment.
Answer:
Kids Corner ordered for a supply of stuffed toys looking like Santa Claus from Toyland
Inc. The toys were to be supplied by 1st of December but were sent to Kids Corner on
25th of December. There has been a _____ of contract.
A. compensatory breach
B. anticipatory breach
C. material breach
D. non-occurrence of concurrent condition
Answer:
Larry signed a note to the Bank, and his friend Moe also signed the note as an
accommodation maker. If Larry defaults on the note when it is due, what are Moe’s
rights and obligations?
A. Moe has the right to recover his payment from the bank.
B. Moe has the same contractual liability as Larry and must pay the bank.
C. Moe cannot recover his money from Larry or the bank since he has primary liability.
D. Moe has secondary liability.
Answer:
If a buyer and seller do not agree on where the goods are to be delivered, where would
the goods be delivered to?
A. The seller’s place of business
B. The seller’s house, even if the seller has a place of business
C. The distributor
D. The buyer has to collect it from the seller’s place of business
Answer:
Which of the following statements is conditionally privileged in defamation suits?
A. Statements by members of Congress on the floor of Congress.
B. Statements made in the furtherance of legitimate business interests.
C. Statements by participants in judicial proceedings.
D. Private statements between spouses.
Answer:
A two-party instrument in which one person makes an unconditional promise in writing
to pay another person, with or without interest, either on demand or at a specified,
future time is a:
A. promissory note.
B. certificate of deposit.
C. draft.
D. check.
Answer:
Sunny makes an oral agreement with WudWerks to create 100 custom-made chairs for
her restaurant for $14,000. After WudWerks had shifted around their production
schedule to produce the chairs, Sunny calls WudWerks and says that she no longer
wants the chairs and that their deal is off. Under this scenario:
A. the parties’ agreement is executory bilateral.
B. the agreement falls within the statute of frauds exception for specially-manufactured
goods.
C. the parties’ agreement is collateral.
D. the parties’ agreement is unenforceable and the buyer is protected under the statute of
frauds.
Answer:
Which of the following statements is TRUE for a principal’s liability for notice and
payments to the agent?
A. The agent is not bound to inform the principal of knowledge the agent gains in the
course of his or her responsibilities.
B. Payment to the agent of a debt owed to the principal discharges the debt if the agent
has authority to receive such payments.
C. An agent who makes over-the-counter sales is viewed as having express authority to
collect for the goods.
D. The principal is bound by the information that is passed on by the agent if it relates
to the scope of the agent’s responsibilities and authority.
Answer:
Unless an assignment agreement clearly indicates a contrary intent, courts today tend
to interpret assignments as including a delegation of the assignor’s duties. A promise on
the part of the assignee to perform these duties:
A. is not implicit.
B. is enforceable by either the promisor or the assignor.
C. depends on the policy followed by the public.
D. is not enforceable by the assignor.
Answer:
In terms of a partnership at will, the partnership can be dissolved:
A. at any time by the major share holder even without the consent of the other partners.
B. at a specific time by any partner.
C. at any time by any partner by the notification to other partners.
D. at a specific time with the consent of both partners.
Answer:
Which of the following is a tenant’s right?
A. The tenant has the right to exclusive possession of the property only if there is an
implied warranty of possession and habitability.
B. The landlord is not entitled to enter the leased property without the tenant’s consent,
unless the lease specifies this.
C. The tenant may use the leased premises for any purpose, whether lawful or unlawful.
D. The tenant has the right to receive leased residential property in a habitable condition
only at the beginning of the lease.
Answer:
Arthur and Alan decide to open a retail store and operate the business as a partnership.
As they require some additional funds to get the business in operation, they ask Jayne
whether she would like to invest some funds in the business and become a limited
partner. Assuming that Jayne becomes and remains a limited partner, which of the
following statements concerning her status is correct?
A. She may be involved in management of the business, but to a rather limited degree.
B. She will not be entitled to any share in the profits of the business.
C. She will have no personal liability for partnership debts, although she may lose the
amount she invested in the business.
D. She may be considered an employee and therefore will be entitled to wages for the
services she rendered to the partnership.
Answer:
Under the Bankruptcy Code, exemptions are only available to ___.
A. corporations
B. loan associations
C. individual debtors
D. non-profit organizations
Answer:
An award for a purely technical breach of contract (usually $1.00) is:
A. nominal.
B. punitive.
C. liquidated.
D. compensatory.
Answer:
Which of the following statements is TRUE for the confidentiality clause?
A. It restricts the licensor’s right to disclose trade secrets after the licensing agreement
has ended.
B. During a licensing agreement, it permits the licensor to limit the number of people
with whom the licensee may share the technology.
C. It restricts the licensee’s right to disclose the information only when the licensed
technology is not a trade secret.
D. Prior to licensing, it does not allow potential licensees to inspect the technology the
licensor is providing.
Answer:
Which of the following is TRUE of the Organization for Economic Cooperation and
Development (OECD)?
A. Coordinates domestic and international policies of developing countries.
B. Asserts that most company codes tend to speak in positive terms such as a
commitment to honesty.
C. Created to promote rules for the corporations based on the culture of the place.
D. Asserts that most enterprises’ codes of conduct expressly publish policies that deal
directly with corruption.
Answer:
Explain the meaning of discharge in legal terms. Mention the different situations in
which a party’s duty to perform could be discharged.
Answer:
What are the duties of directors and officers of a corporation?
Answer:
Answer:
Define “tenancy for a term” and show how it differs from “periodic tenancy”.
Answer:
What are some of the strategies a corporation can employ to minimize taxation
disadvantages?
Answer:
Who are the different unsecured creditors who receive distributions of a debtor’s
estate?
Answer:
In June, Ed entered into a contract to buy a motorcycle from Hot Rod Sports. He paid
the purchase price of $1,200 and was given the papers necessary to register the
motorcycle and get insurance on it. Ed registered the motorcycle but had not attached
the license plates to it. He left on vacation and told the Hot Rod salesperson that he
would pick up the motorcycle on his return. While Ed was on vacation, there was an
electric power blackout in New York City and the motorcycle was stolen by looters. Ed
sued Hot Rod to get back his money. Did Hot Rod bear the risk of loss of the
motorcycle?
Answer: