Why do governments impose tariffs?
a. To protect domestic industries from foreign competition.
b. To raise revenues.
c. To attempt to improve their balance of trade.
d. Governments impose tariffs for all of the above reasons.
The duty of care exercised by a collecting bank in handling an item transferred to it for
collection does NOT include:
a. taking care in presenting the item.
b. that it must act within a reasonable time after receipt of the bank item.
c. taking care in routing.
d. None of these are correct.
An example of a special court in the federal judicial system is the:
a. U.S. Court of Federal Claims.
b. Federal District Court.
c. U.S. Supreme Court.
d. U.S. Court of Appeals.
Personal defenses include all but which of the following?
a. Breach of contract.
b. Fraud in the execution.
c. Misrepresentation.
d. Failure of consideration.
If Sean, a shareholder, dissents to a corporate merger, his appraisal remedies will be:
a. fair value of his shares as of the day the corporation agrees to purchase the shares.
b. fair value of the shares as of the time immediately before the action to which he
objects is taken.
c. average purchase price for the shares during the preceding 30 days.
d. None of the above.
Mark gives a bearer note for $50 to Joe in exchange for an excellent dinner at Joe’s
restaurant. Joe delivers the note to Sue for $50 and Sue takes it to Mark to be paid. If
Mark says the note was originally written for only $5, what can Sue do?
a. Hold Joe liable for breach of warranty.
b. Get $50 from Mark.
c. Hold Joe liable for breach of contract.
d. All of these are correct.
Jan Arthur writes a $200 check to Bruce Nole who indorses it “Bruce Nole.” Bruce
gives the check to Anne Tate who indorses it “Without Recourse. Anne Tate.” Anne
sends the check to Joe Black, MD to pay her medical bill. If the bank refuses to honor
the check, Black:
a. can collect only from Jan Arthur.
b. can collect only from Jan Arthur or Bruce Nole.
c. can collect from the drawer or any indorser whose name appears on the check.
d. has no other recourse.
Under Section 1 of the Sherman Act, which of the following is illegal per se?
a. Vertical market allocations.
b. Horizontal market allocations.
c. Vertical price fixing.
d. Both (b) and (c).
Which of the following statements about wills is correct?
a. A will must be written on one piece of paper.
b. Another writing may be incorporated by reference in a will.
c. The testator must sign his or her full name.
d. The testator cannot have any “help” in signing a will.
The decision of an equity court is called a(n):
a. judgment.
b. decree.
c. stare decisis.
d. injunction.
Under substantive due process, legislation affecting which of the following would be
strictly scrutinized as affecting fundamental rights?
a. The right to receive federally guaranteed student loans.
b. The right to marry someone from a particular ethnic background if both parties
wanted to marry.
c. The right of free speech.
d. Both (b) and (c).
Which of the following is NOT an element necessary for recovery in quasi contract?
a. A benefit conferred on the defendant by the plaintiff.
b. An implied or express promise.
c. The defendant’s knowledge or appreciation of a benefit.
d. The defendant’s acceptance or retention of a benefit.
What remedies are available for the Federal Trade Commission?
a. Affirmative exemption and fines.
b. Corrective advertising and multiple product orders.
c. Impounding inventory and injunctions.
d. Fines and monetary penalties.
Albert found a stone in his yard and took it to Bob, a jeweler, for evaluation. Bob wasn’t
sure as to the nature of the stone, but told Albert he thought it was a topaz. Bob then
offered to buy the stone for $25 and Albert agreed. Later Albert found out the stone was
an uncut diamond worth about $700. This:
a. is a valid contract that should be enforced by the law, because neither party knew the
exact nature of the stone at the time of the sale.
b. contract can be voided based upon fraud in the execution.
c. contract can be voided based upon fraudulent misrepresentation.
d. contract can be voided based upon mistake as to the identity of the subject matter.
Which of the following is correct regarding a limited partnership?
a. The general partner must make a capital contribution.
b. It can be created in such a way that the general partner has limited liability.
c. It can only be created pursuant to statutory provisions.
d. Limited partners are unable to vote on the incurrence of debt other than in the
ordinary course of business under the safe harbor provisions of the RULPA.
A Chapter 13 plan may be modified after confirmation only at the request of the debtor.
In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and
insist that the buyer take all of the output when that seller had operated only eight hours
a day at the time the contract was made and the buyer had knowledge only of the
eight-hour-a-day operating schedule.
A federal agency is required to consider only all reasonable alternatives in an EIS.
A “commercial unit” is a unit of goods that by commercial usage is a single unit and
that, if divided, would be materially impaired in character or value.
Contractual incapacity excuses a minor from an obligation to pay for necessaries.
Define dissolution under the UPA and discuss its three causes.
An “X” or a thumbprint could constitute a signature within the meaning of the term in
the Code.
An authorization to confess judgment on the instrument destroys its negotiability.
Upon the surety’s payment of the principal debtor’s entire obligation, the surety gets no
rights.