The most important federal statutes governing hazardous substances include:
a. SARA.
b. CEQ.
c. FIFRA.
d. Both (a) and (c).
Which of the following is NOT personal property?
a. Trees that have been cut into logs.
b. An air-conditioning system before it is installed in a house.
c. Building materials.
d. A 140-acre farm.
Stan sends for a law school catalog from Ivory Towers University. According to the
catalog, the law school applications are evaluated on the basis of undergraduate grades,
standardized test scores, and references. Stan, who is a straight-A student, has high test
scores and excellent references, applies and pays the $100 application fee. His
application is rejected. Later he finds out that others with low grades and test scores
were accepted based on their family connections and donations made to the University.
If Stan followed all of the guidelines in the college catalog and paid the required
application fee, then according to the court in Steinberg v. Chicago Medical School:
a. there is not a contract.
b. there is a quasi contract.
c. there is a valid contract; the school bound itself to honor the obligations set forth in
the college catalog.
d. there is a voidable contract.
An association of banks and other payors whose members settle accounts with each
other on a daily basis is a:
a. payor banking group.
b. clearinghouse.
c. provisional reserve.
d. None of the above.
Regarding drug and alcohol testing of employees by employers:
a. the NLRB makes it a mandatory subject of collective bargaining in a union setting.
b. the constitutional protection from unwarranted search and seizure protects private
sector employees from the practice.
c. the Constitution prohibits any public sector employer from testing its employees
under any circumstances without a warrant.
d. federal legislation sets forth comprehensive guidelines for the practice.
To be partnership property, title to real estate bought with partnership assets and used
by the partnership may be put in the name of:
a. any partner in that individual’s name.
b. the partnership only.
c. the partnership in its name, or one or more partners in their capacity as partners in the
partnership if the name of the partnership is indicated in the instrument transferring
title.
d. None of the above.
Controls that apply to the use of privately owned property include:
a. zoning.
b. eminent domain.
c. restrictive covenants.
d. All of the above.
A negotiation may be valid to transfer the instrument even under which of the following
condition(s)?
a. The negotiation is made by an infant.
b. The negotiation is made by a person without capacity.
c. The negotiation is part of an illegal transaction.
d. All of the above.
Judicial review extends to:
a. legislation.
b. acts of the executive branch.
c. decisions of inferior courts.
d. All of the above.
Revised Article 3 defines __________ as “honesty in fact and the observance of
reasonable commercial standards of fair dealing.”
a. executory promise
b. good faith
c. value
d. None of the above.
Which of the following is untrue regarding the contracts of incompetent persons?
a. An incompetent person is liable for necessaries.
b. Unlike a minor, an incompetent person can never ratify a contract.
c. To avoid a contract, a person need not be permanently incompetent.
d. Under the cognitive ability test, a person is incompetent if he is unable to understand
the nature and effect of his act.
Bartow signed a contract to coach baseball for Washington High for a period of three
years. After two years he is offered and accepts an assistant coaching position at State
University. Contract law will not allow Washington High to ask for:
a. specific performance of his contract.
b. payment of compensatory damages.
c. an injunction against coaching at the university.
d. liquidated damages.
Janice has wagered $200, which William is holding, on a horse race. If, before the race
starts, Janice wants to take back her money and withdraw from the transaction:
a. William can successfully sue for breach.
b. Janice may withdraw from the transaction.
c. William cannot sue fur breach because he and Janice are in pari delicto.
d. Janice cannot recover any money because the contract to wager is illegal and
unenforceable.
An administrative law judge for the Federal Trade Commission decides a case against a
retail store chain. The company then appeals the decision to the commission itself.
Which of the following is correct regarding the appeal of the case from the
administrative law judge to the commission?
a. The commission may decide the case de novo.
b. There is no appeal from the decision of the ALJ.
c. The commission will decide the case by having a jury trial.
d. The rules of evidence will be strictly applied by the commission in deciding the case.
Which of the following is true of a generic name?
a. It is exemplified by such terms as ‘aspirin,’ ‘escalator,’ and ‘cellophane.’
b. It is one that is understood by prospective purchasers to denominate the general type
of goods or services with which it is used.
c. A user can acquire rights in a generic name as a trade symbol.
d. Both (a) and (b).
Which of the following is a common criticism of ethical relativism?
a. It promotes open-mindedness and tolerance.
b. It assumes that a person’s actions are always correct for that person, but if that is true,
then all behavior is, by definition, moral.
c. It is rigid and excessively formal.
d. It is too judgmental.
A radio communication that meets the test of defamation may also be categorized as:
a. false light.
b. slander.
c. libel.
d. intrusion.
Marcella pays $12,000 down on a houseboat which Hugh had agreed to sell to her for
$64,000. Marcella then repudiates the contract. Hugh sells the houseboat to Lloyd in
good faith for $60,000. Marcella may recover from Hugh:
a. nothing, since she was the one who repudiated the contract.
b. her $12,000 down payment since Hugh’s contract with Lloyd created a novation and
discharged any duty Marcella had to pay anything toward the houseboat.
c. $8,000 in restitution, which represents Marcella’s $12,000 down payment less the
$4,000 in damages Hugh sustained because of Marcella’s breach.
d. nothing based on the principle illustrated in Arrowhead School District No. 75, Park
County, Montana v. James A. Klyap, Jr.
Misdemeanors are less serious crimes punishable by a fine or imprisonment in a local
jail.
Upon winding up, if a partner pays more than his share of partnership losses, he has a
right of contribution against the partners who have not paid their share.
Tom is the promoter of a new corporation that has not yet been incorporated. On behalf
of the as yet unincorporated business, he enters into a three-year lease agreement for
office space and personally signs the lease in his own name. The corporation is liable on
the contract, because Tom is its agent.
In most, if not all, cases where there is a legal detriment to the promisee, there is also a
legal benefit to the promisor.
Otis, a holder in due course, buys a note made out by Joe to Southern Appliance. Even
though Joe’s debt was discharged through bankruptcy, Otis can collect on the note.